November 2012 Southeast Edition

Southeast Edition Florida Georgia Alabama Mississippi

31

YEARS

www.autobodynews.com ww ww.autobodynews.com

Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’

earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property damage claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer Auto Repair Excellence, Inc. (CARE).

Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader

ABN: Why did you quit State Farm?

Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a

VOL. 3 ISSUE 9 NOVEMBER 2012

NACE 2012 in New Orleans

Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 36.

A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit.

CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session.

Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion.

Attendance was down on the show floor but some booths attracted record business.

ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices.”

AEII’s Tony Passwater presented on designing and implementing a complete repair plan.

The Autobody News staff doing its part to cover the industry.

See Steve Plier, Page 12

George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are

session at the end. Many of the attendees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.”

Avery also talked about some of the enhancements State Farm has created since the pilot began. “The estimating systems have created an interface that will update the prices on the estimate. They have also cut the time to respond from two hours down to 30 minutes.

Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs See Avery to GCIA, Page 46

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

The Georgia Collision Industry Association met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birmingham, AL, one of the test markets.

“Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batchelor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL AAIA Expresses Support for WTO Actions on China . . . . . . . . . . . . . . . . . 29 Advance Auto Parts Helps Raise $2M for Charities . . . . . . . . . . . . . . . . . 29 AkzoNobel Secures McLaren Automotive Supply Agreement . . . . . . . . . . . . . . . . 29 ALLDATA Shows Off New Compliance Tool at NACE . . . . . . . . . . . . . . . . . . . . 47 American Honda Launches ProFirst Shop Recognition Program . . . . . . . . . 23 ASA’s Caspersen Comments on PartsTrader Meetings . . . . . . . . . . . . . . 41 ATI Expands Curriculum to Include Collision Repair . . . . . . . . . . . . . . . . . . 29 Automaker, OEM and Recall News . . . . . . 26 AZ Shop Owner Arrested in Disappearance of Partner. . . . . . . . . . . . 3 BASF Showcases Newest Additions to VisionPlus Online Tools at NACE . . . . . 42 Car-O-Liner to Lead Training at SEMA 2012 . 4 Carroll Shelby Foundation Unveils Signature Program. . . . . . . . . . . . . . . . 17 CARSTAR Recognizes Outstanding Performers . . . . . . . . . . . . . . . . . . . . . 31 CCC Releases 2012 Crash Course Report . 31 CCC Says it Has Converted 17,000 Shops to new CCC ONE . . . . . . . . . . . . 35 Copart Says It is Posting Balanced Volume Gains . . . . . . . . . . . . . . . . . . . 47 DEG & the Keys to Successful Estimating Presented in New Orleans . . . . . . . . . . 45 Don Porter Joins United Recyclers Group (URG) . . . . . . . . . . . . . . . . . . . . 31

PartsTrader Coverage Florida Autobody Collision Alliance Made Statewide Tour to Discuss PartsTrader . . 6 Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’ . . . . 1 George Avery Spoke on PartsTrader to GCIA Sept. 20 . . . . . . . . . . . . . . . . . . 1 PartsTrader Reduces Minimum Quote Time to 30 mins . . . . . . . . . . . . 34

Detectives then conducted surveillance on the Norrises based on the evidence that they were involved with Johnson’s disappearance.

Later that day, detectives observed suspicious activity from the couple that led them to believe they were attempting to cover up a crime.

The Norrises were observed leaving their residence with a box trailer attached to the rear of an SUV. The couple then drove to an area in Phoenix where they abandoned the trailer, police said.

Police deployed a canine cadaver dog and obtained a search warrant. The search revealed what detectives believe to be a homicide scene. Blood was located inside the trailer along with spent shell casings from a firearm and a wallet that contained Johnson’s Arizona driver’s license, according to police.

Investigators believe that Johnson was killed and his body hidden in an unknown location and have yet to find his body.

www.autobodynews.com C

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Janet Chaney, Toby Chess, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Southeast

COLUMNISTS Attanasio: The Original Social Media, and Most Important, is the Phone Call . . . . 30 Franklin: The New Co-Op Marketing . . . . . 34 Gesterkamp: E-Coated Parts Procedure . . 18 Insider: Clean Up Your Own House Before You Gripe About Someone Else’s . . . . . 28 Sisk: CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More. 14 Sisk: The NitroTech Spray Generator Controls the Uncontrollable . . . . . . . . . . 7 Yoswick: NACE Keynote Speech Focuses on Thinking about Business . . . . . . . . . 36

DPC Launches New Catalog. . . . . . . . . . . 45 Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013 . . . . . . . . . . . . . . . . . . . . . . . . 40 East Bay CAA Members Get Schooled at University of Toyota . . . . . . . . . . . . . 20 Education Foundation Gets 70 Makeover Applications. . . . . . . . . . . . . 31 Enterprise Supports Bill to Get Unsafe Rental Cars Off the Road . . . . . . . . . . . 41 Esurance recognizes Three CARSTAR shops with awards. . . . . . . . . . . . . . . . 43 Greg Coccaro Wins Significant Appeal from Progressive Insurance . . . . . . . . . 17 Honda Develops New Welding Technology, UHSS Structure for 2013 Accord . . . . . 22 How to be a ‘Courageous Leader’ Presented at NACE. . . . . . . . . . . . . . . . 43 I-CAR courses now online . . . . . . . . . . . . 45 Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends . . . . . . . . . 32 John Shoemaker Coaches Shops to ‘Negotiate for Success’ . . . . . . . . . . 40 Kelley Blue Book: September Vehicle SAAR is 14.3M . . . . . . . . . . . . . . . . . . 39 Martin Senour Kicks Off 4Q Training Program . . . . . . . . . . . . . . . . . . . . . . . 43 Matrix Electronic Measuring, Inc. Awarded Two Patents. . . . . . . . . . . . . . 22 Mitchell Adds New Insurance Client, Affirmative, to Roster . . . . . . . . . . . . . . 35 NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE . . . . . . . 44 NACE 2012 in New Orleans . . . . . . . . . . . . 1 NACE Sees Fewer People, But Quality Events . . . . . . . . . . . . . . . . . . . 37 New York Auto Body Owner Faces Felony Charges over State Police Vehicle Repairs . . . . . . . . . . . . . . . . . . 39 NHTSA Declares Danger in Counterfeit Airbags . . . . . . . . . . . . . . . 41 OSHA and SCRS Offer Shop Sustainability Training . . . . . . . . . . . . . 47 Overhaulin’s New Season Starring Chip Foose . . . . . . . . . . . . . . . . . . . . . 47 P.B.E Jobbers Warehouse Gives to Education Foundation. . . . . . . . . . . . 38 Prevost ALR Aluminum Air Piping is an Easy System. . . . . . . . . . . . . . . . . . 10 Shops Help Victim of Road Rage Repair Car. 10 State Farm Hit With Class Action Alleging Short Claims . . . . . . . . . . . . . 35 Steve Trapp Presents Implementing Best Practices for SOPs . . . . . . . . . . . . 42 White Mountains Ins. Sues Allstate over Esurance Sale . . . . . . . . . . . . . . . 35 WIZARDS Introduces Nano-Technology Spray Wax . . . . . . . . . . . . . . . . . . . . . . 17 WMABA Sees Good Turnout at PartsTrader Meetings . . . . . . . . . . . . . . 47

The co–owner of a Tempe auto body repair shop and his wife are facing murder and hindering charges after being arrested in connection to what officers believe is the homicide of Jason Johnson, the other co–owner of the business who was reported missing since Sept. 14.

Chad Norris, 33, co–owner of Scottsdale Auto Collision Center in Tempe, and Tamara Norris, 31, were arrested on suspicion of second–degree murder and felony hindering, respectively in connection to the case.

A missing persons report was filed with Tempe police after it was reported that Johnson, 45, had not been seen since approximately 6 p.m.

Sept. 14 at his auto body repair shop near Priest Drive and Elliot Road in Tempe.

Detectives contacted several employees at the business during the course of follow–up on the missing persons report and during questioning, detectives acquired information about a confrontation that happened between Johnson and Chad Norris.

After Chad and Tamara Norris were contacted about the disappearance of Johnson, neither one of them were willing to cooperate with authorities, according to Tempe police.

Indexof Advertisers

REGIONAL Alabama Repairers Forming New Collision Association . . . . . . . . . . . . . . . 4 AutoBody America Opens 20th Location in Mid-South . . . . . . . . . . . . . . . . . . . . . 4 Collision Repair Industry Loses a Legend and a Friend. . . . . . . . . . . . . . . 10 Collision Repair Tech Students Receive Scholarship . . . . . . . . . . . . . . . . . . . . . 28 Drive Automotive Invests $50 Million in SC Facility . . . . . . . . . . . . . . . . . . . . . 4 English Color Acquires Stores . . . . . . . . . . 4 GCIA Holds Golf Tournament in Atlanta on October 3 . . . . . . . . . . . . . . . . . . . . . 4 GCIA Succeeds in Getting Allstate to Reverse Decision on Sales Tax Reimbursement . . . . . . . . . . . . . . . . . . . 6 Inventory and Family: The Keys to Success for Jim Ellis Hyundai . . . . . . . . 8 Pink Car Tribute to Breast Cancer Survivors . 6 Prestige Auto Body Custom Builds Unique Bra Bank . . . . . . . . . . . . . . . . . 35

AZ Shop Owner Arrested in Disappearance of Partner

Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.

Autobody News

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

Allan Vigil Ford . . . . . . . . . . . . . . . . 18 Auto Data Labels. . . . . . . . . . . . . . . 11 BASF . . . . . . . . . . . . . . . . . . . . . . . . 15 BMW Wholesale Parts Dealers . . . . 41 Chief Automotive. . . . . . . . . . . . . . . 27 Classifieds. . . . . . . . . . . . . . . . . . . . 47 Delray Honda . . . . . . . . . . . . . . . . . 34 Don Reid Ford. . . . . . . . . . . . . . . . . 29 Equalizer Industries . . . . . . . . . . . . 10 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 48 Garmat USA . . . . . . . . . . . . . . . . . . . 8 Gray-Daniels Auto Family . . . . . . . . . 5 Gus Machado Ford . . . . . . . . . . . . . 22 Haydell . . . . . . . . . . . . . . . . . . . . . . . 7 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 45 Jim Ellis Hyundai . . . . . . . . . . . . . . . 9 Kia Motors Wholesale Parts Dealers. 33 Malco. . . . . . . . . . . . . . . . . . . . . . . . 19 Mazda Wholesale Parts . . . . . . . . . 43 Mercedes-Benz Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . . . . 29 Mitsubishi Wholesale Parts Dealers. 46 MOPAR Wholesale Parts Dealers . . 14 Nalley BMW. . . . . . . . . . . . . . . . . . . 12 Nissan Wholesale Parts Dealers. . . 44 Palmers Toyota . . . . . . . . . . . . . . . . 37 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Porsche Wholesale Parts Dealers . 39 Reliable Automotive Equipment . . . 23 Safety Regulations . . . . . . . . . . . . . . 4 Sam Galloway Mazda . . . . . . . . . . . 36 SATA Spray Equipment . . . . . . . . . 31 SCA Appraisal Company . . . . . . . . . 6 Serra Mazda . . . . . . . . . . . . . . . . . . 32 Serra Automotive Group . . . . . . . . . 21 Solution Finish . . . . . . . . . . . . . . . . 42 Southtowne Hyundai . . . . . . . . . . . 16 Star-A-Liner . . . . . . . . . . . . . . . . . . . 13 Subaru of Gwinnett . . . . . . . . . . . . . 28 Subaru Wholesale Parts Dealers . . 38 Tameron Hyundai . . . . . . . . . . . . . . 30 Toyota Wholesale Parts Dealers . . . 35

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

Alabama Repairers Forming New Collision Association

Founding members of a new Alabama statewide collision repair association will meet in early November to begin the process of organizing the new association.

Members will include repairers and parts suppliers. The new association is called the Alabama Automotive Repair Industry Society of Excellence or ALARISE. According to its website, ALARISE is a non-profit organization that is dedicated to consumer awareness and education along with public awareness to industry training and employment in the automotive repair industry.

Steve Plier, President of Consumer Auto Repair Excellence Inc. (CARE), said 34 members have joined in its beginning stage with membership continuing to grow.

For more information or to join, contact Plier at (205) 623-9307 or email info@alarise.com.

Car-O-Liner to Lead Training at SEMA 2012

Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, has retained Larry Montanez of P&L Consultants, LLC, to develop and present a hands-on workshop entitled “Fast Tracking Vehicle Repairs.”

The seminar debuted at this year’s NACE show in New Orleans, LA, and will also be presented at this year’s SEMA show in Las Vegas, NV. The presentation will cover damage analysis to include quick checks, damage classification, premeasuring, and how Car-O-Liner equipment aids in the Triage and Blueprinting process. Classes will be held in the Car-O-Liner booth at each show.

English Color Acquires Stores

English Color & Supply, a Texas based jobber, has acquired three new stores in Tennessee, bringing the company to a total of 47 locations in eight states. The family-owned business, founded in 1946 by Bob English, acquired the three locations of Auto Color Supply in Murfreesboro, Shelbyville and Columbia from owner Pat Anderton.

English Color & Supply operates stores in Texas, Oklahoma, Arkansas, Louisiana, Tennessee, Mississippi, Alabama, and Florida.

Drive Automotive Invests $50 Milion in SC Facility

Drive Automotive Industries of America, a manufacturer of auto body panels and systems, will invest $50 million to expand its Greenville County, SC, production facility by 150,000 square feet, with plans to generate 60 new jobs.

Drive Automotive Industries of America is a manufacturing division of Cosma International, which is an operating unit of Magna International Inc. Its manufacturing facility is located on Moon Acres Road in Piedmont, SC. Drive Automotive manufactures automotive body panels and assembles body systems using state-of-theart equipment such as multi-ton hydraulic presses and advanced robotic systems. This expansion will support a growing customer base among the major automotive and heavy truck manufacturers, the Governor’s Office said.

“We celebrate Drive Automotive’s decision to invest $50 million and create 60 new jobs. South Carolina continues to show that it is the right place to do business. Announcements like this one show we are doing the right things to help companies prosper and grow,” said Gov. Nikki Haley.

AutoBody America Opens 20th Location in Mid-South

AutoBody America, a Nashvillebased collision repair operator with locations in Tennessee, Mississippi and Arkansas, announced the opening of its 20th store in the mid–south and first in the Knoxville market.

The 18,000-square-foot facility, previously a dealership, has undergone a major renovation and is now a state–of–the–art, full–service collision repair center. The newest AutoBody America repair center is located on one of Knoxville’s high traffic business arteries and provides easy interstate access to the surrounding communities in Knox and Blount counties.

“With our entrance into the Knoxville market, we now have a presence in the seven largest population centers of Tennessee, which helps us toward our goal of being the provider of choice for customers and insurance partners across our home state,” said President Will Johnston.

“More importantly, it helps us bring our brand of best-in-class customer service to more Tennesseans, while giving them the confidence of a warranty good at any of our evergrowing number of locations.”

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Thieves Steal a Car, Shoot 2 Dogs at Auto Body Shop

Wiley’s Body Shop in Spartanburg, SC, suffered a loss on Sept. 21 when someone stole a car from the shop and killed two Rottweilers.

The incident occurred in the early morning hours. Spartanburg Public Safety officers heard gunfire but could not find where the shots were fired. It wasn’t until six hours later that an officer was dispatched to the body shop. The shop owner found a vehicle missing. The gate to the back lot was torn and in the roadway, according to an incident report.

Two dogs had been shot. One was dead on the scene, and the other was taken to a veterinarian’s office, where it was euthanized.

Michelle Wiley, wife of the shop owner, said they had raised both dogs since they were puppies. More than guard dogs, she said the Rottweilers were pets.

Wiley said one of the dogs, Sheriff, was 11 years old. She said he was shot in the chest. Bubba Jack, 1, was euthanized because a bullet had hit his spinal cord and left him paralyzed.

The car is a 1989 Chevrolet Caprice with a pearl white exterior, gray and blue interior, and a grill with 30-inch rims, the report states.

GCIA Holds Golf Tournament in Atlanta on October 3 The Georgia Collision Industry Association held its 16th Annual GCIA Golf Tournament on Oct. 3 at the Trophy Club of Atlanta in Alpharetta, GA, with 72 golfers competing.

(l to r) Ron “The Ringer” Atyeo, ABRA Buckhead; Louie “Left Turn” Wilson Weaver; Bill “Dead eye” Dubis Weaver

The first place team was Misty Goolsby of DuPont, Paul Wheatley of DuPont, Jeff Griffith of Dave Gordon Auto Supply and Shane Steele of Elite Collision. Paul Bridges of Enterprise won closest to the pin and Bill Favini, RBM of Atlanta North, had the longest drive.

Sponsors included Auto Data Labels, Enterprise, 3M, FinishMaster, AkzoNobel and many other companies.

Gray-Daniels Gray-Daniels Nissan Nissan of of Jackson Jackson

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• Trained Wholesale Crew • In State Next Day Shipping w/Quick Local Delivery • Great Discounts

Visit our E-Store:

www.graydanielsnissannorthparts.com Participating in Collision Link Parts Manager: Steven Hill 800-530-7522 601-899-7462 fax shill@graydaniels.com Hours: Monday - Friday 7 am - 5:30 pm 6080 I-55 North Frontage Rd., Saturday 8 am - 4 pm Jackson, MS 39211

Gray-Daniels Gray-Daniels Chevrolet Chevrolet • Prompt, Accurate and Free Local Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7:30 am - 5:30 pm Saturday 8 am - 4 pm

Parts Manager: Eddie Williamson 800-729-6160 601-206-5894 local 601-206-5899 fax ewilliamson@graydaniels.com 6060 I-55 North, Jackson, MS 39211

Gray-Daniels Gray-Daniels Lincoln Lincoln • Trained Wholesale Crew • In State Next Day Shipping w/Quick Local Delivery • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 3904

Gray-Daniels Gray-Daniels Nissan Nissan of of Brandon Brandon

GENUINE SERVICE & PARTS

• Collision Parts Price Matching • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Jack Willoughby

800-530-7989 601-985-3753 fax jwilloughby@graydaniels.com 108 Gray-Daniels Blvd., Brandon, MS 39042

Gray-Daniels Gray-Daniels Ford Ford • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 39042

Gray-Daniels Toyota • Prompt, Accurate and Free Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Mon. - Fri. 7am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

Gray-Daniels Gray-Daniels Scion Scion • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Mon. - Fri. 7:30 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

WWW.GRAYDANIELS.COM For All Your Collisions Part Needs www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

GCIA Succeeds in Getting Allstate to Reverse Decision about Sales Tax Reimbursement The Georgia Collision Industry Association (GCIA) announced that it has been successful in getting Allstate to reverse its decision that it would no longer reimburse shops for the sales tax charged to consumers on paint and materials. Several weeks ago, Allstate had communicated this change in policy to many GCIA members.

GCIA then contacted the Georgia Department of Revenue, which cited Regulation 560-12-2-.08: In general, regulation [560-12-2.08] provides that the sale of auto painting can be structured as either 1) the sale of painting services, where the auto painter must pay tax on all tangible personal property used to perform his service and will bill his customer for painting services only; or 2) the retail sale of paint with painting labor, where the auto body shop will purchase the paint exempt for resale, and then bill his customer for the paint and repair/painting labor, and then collect tax on the sale to the customer.

Of course, the labor charge will be exempt if itemized on the customer’s invoice. Regulation 560-12-2.08 supports both types of transactions.

The Department can only require that the tax be applied correctly to the type

of transaction chosen by the seller and buyer.

After communications with the Georgia Department of Revenue and Allstate regarding this issue, the GCIA received word from Allstate that their stand on this issue had been reversed.

On Sept. 25, Dan Risley, market manager (south) for Allstate, spoke to Howard Batchelor, executive director of GCIA, and told him that Allstate will pay sales tax on paint and materials.

However, GCIA is attempting to obtain an official written statement from Allstate.

In addition, GCIA is working on guidelines for members as to how shops should pay, collect and remit the sales tax on paint and material items.

Anyone wishing to assist in writing these guidelines should contact Howard Batchelor at (770) 367-9816 or howard@gcia.org.

Willie Robinson of North Carolina wanted to find a way to support his mother after her diagnosis of breast cancer, and he hit upon an unusual idea: painting a Crown Victoria pink to honor her and other breast cancer patients and survivors.

“I will do this for my mother, and for all women with breast cancer,” said Robinson, 25. “They will know that someone is thinking about them.”

Co. donated some car parts to fix up the car, which had been wrecked.

The car was spray-painted pink, then detailed with drawings of pink ribbons, hearts and angels.

The car was featured in a fundraising march in honor of women who have had breast cancer. At the end of the march, breast cancer survivors were encouraged to write their names and a message of inspiration on the car.

The money raised by the walkers will go to Susan G. Komen For the Cure, a national organization dedicated to raising funds for breast cancer research and treatment, and some will go directly to Pamela Robinson, Willie’s mother, to help pay her medical bills.

Pamela Robinson, 44, who was diagnosed in June, said she is overwhelmed at what her son has done.

“I think he is doing this so I won’t quit, so I won’t give up,” Pamela Robinson said. “He knows as long as I will see this pink car every day, I’ll get through it.”

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Pink Car Tribute to Breast Cancer Survivors

Robinson approached his friend, Dave Moore, who runs an auto body shop, Southside Rides. Moore also runs a non-profit related to his business, dedicated to teaching at-risk teens about auto body custom painting.

“I told (Willie), put away your money; I will do this,” Moore said.

“We want to make this a survival car.”

Larkins Paint in High Point donated the paint, and Lewisville Motor

caption: This Crown Victoria is about to be decorated by David Moore’s Southside Rides Auto Body shop for cancer survivor Pamela Robinson.

The shop is donating the work.

6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Florida Autobody Collision Alliance Made Statewide Tour to Discuss PartsTrader Issues The Florida Autobody Collision Alliance (FACA) launched a statewide tour in October to conduct town hall meetings to take a stand against and share facts about State Farm’s PartsTrader pilot program.

Cathy Mills

Prior to the statewide tour, FACA officials spent months visiting pilot cities and speaking with several shops and vendors to gather information about the pilot program.

FACA Executive Director Cathy Mills, FACA President Dave McBroom (who passed away on Oct. 11), and former State Farm estimatics team manager Steve Plier conducted

the town hall meetings in a threeweek tour which covered several cities, including Jacksonville, Tallahassee, Pensacola, Orlando, Tampa Bay, Space Coast, Ft. Lauderdale, Miami and Ft. Myers.

“As everyone is aware, things continue to heat up in Florida and the industry as a whole over the State Farms Parts procurement program,” said Mills.

“FACA continues to feel a strong need to continue to bring industry awareness to everyone,” Mill said.

“State Farm has said its PartsTrader process should improve parts availability, process efficiency, order accuracy and create a better experience for customers. But the program has been met with overwhelming resistance from shop operators and suppliers who argue it cuts into profits, slows operations and relinquishes to insurers one of the last segment of business that repairers actually control,” Mills said. “FACA has visited four of the pilot cities gathering data and information on how this program will affect shops and vendors.

Whether you are a select service shop or not, PartsTrader will affect everyone,” Mills said.

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

The NitroTech Spray Generator Controls the Uncontrollable with Chasidy Rae Sisk

For many collision shops, spray painting with compressed air means dealing with uncontrollable or difficult to control variables, including temperature, humidity and pressure.

“Compressed air is a problem because air changes based on temperature, altitude, and other variables that cannot be readily controlled,” says Michael Haydell, president of Haydell Industries. As a result, the viscosity of painting material also changes with each use due to moisture and temperature, as well as the build-up of static electricity. Static makes the material do what it wants to do, not what the painter wants it to do.

Haydell Industries offers a solution to this dilemma in the form of their NitroTech Spray Generator.

Their vision is to “be the premier provider of Innovative solutions and systems for customers’ productivity,” and they achieve this through their values of integrity, excellence, com-

munication and accountability.

Haydell Industries was founded in 1986 by Michael Haydell as a manufacturing representative company. But their focus changed to the production and distribution of nitrogen-based spray systems in 2005. They also now sell a variety of shop equipment, including industrial paint booths and filters.

The use of inert nitrogen offers painters a gas to spray with, providing a more consistent finish. This leads to a reduction in the use of wet materials, an increase in booth throughput, and a decrease in the cost of booth exhaust filters. As an added bonus, the NitroTech Spray Generator is also environmentally friendly as it significantly reduces the VOCs and HAPs released into the air.

Haydell Industries separates the impurities at a gas level to redirect the air’s properties, and by controlling the temperature through their hose, they are also able to control viscosity, while

using ionization processes to eliminate static electricity. This uses less paint as the nitrogen allows the substrate to be fully covered in fewer coats than can be accomplished using compressed air.

Though an air compressor is still necessary to supply the NitroTech Spray Generator with compressed air, the compressed air is replaced by a perfect fluid carrier of Nitrogen, Argon and/or Carbon Dioxide. The system can easily be integrated into a shop’s existing system without changing spray equipment, processes or the preferred coating. The only maintenance required for Haydell’s Nitrogen system is a change of inlet air filters once a year.

Since Haydell Industries’ NitroTech Spray Generators reduce the use of materials by 30–50%, collision shops can save up to 20–30% in material costs by integrating this technology into their repairs. Nitrogen spray also reduces application time by 30–50%, providing even more savings in man hours.

Haydell Industries received their patent for the third generation of their Nitrogen Technology in May 2012.

Michael Haydell proudly states, “Our newest generation uses 250% less compressed air than the first generation, making it 250% more efficient.”

Haydell Industries’ impressive list of clientele includes Boeing, Mercedes-Benz and Hendricks Motor Sports. Their website claims, “we are gaining momentum, ensuring we remain in the forefront of any competition, as we keep a firm hold on Advanced Application Technologies through our nationwide distribution network...

Haydell Industries can be reached at: 163 Pellerin Road Lafayette, LA 70560 1-800-877-4362 1-337-989-0307 (fax) www.haydell.com info@haydell.com

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 7

Inventory and Family: The Keys to Success for Jim Ellis Hyundai

by Chasidy Rae Sisk

Jim Ellis Hyundai of Atlanta, GA, has received many positive reviews since opening in 2000. Their goal is to provide customers with the best possible savings when purchasing a new or used Hyundai. Their parts and service departments play a significant role in their success as they support the sales department by ensuring customer satisfaction in order to promote repeat business, as well as by generating additional revenue for the dealership.

Jim Ellis Hyundai Parts offers competitive discounts and free delivery to their wholesale accounts. According to Parts Director Ron Gay, who has been employed by Jim Ellis for over 20 years, “Using Hyundai’s Smart Stock system helps us maintain a high level of service to our customers by allowing us to stock more of the parts we need so that we have them at the time they are needed. We average a 90% same-day fill rate to our customers, meaning that most of the time, we already have the materials stocked that are necessary for a specific job.”

The parts department is able to maintain such a high same-day fill rate by using nine delivery trucks to deliver their orders to the greater Atlanta metropolitan area. These trucks run twice daily, and the deliveries are managed using GPS-based tracking software to monitor the deliveries and keep their drivers operating as efficiently as possible. Jim Ellis Hyundai Parts also offers OEconnection to their customers, allowing body shops to electronically transmit their estimate to Jim Ellis Hyundai’s parts department without taking the extra time to send a fax or make a phone call. This is particularly beneficial as Jim Ellis Hyundai Parts sells directly to body shops, and this business comprises approximately 40% of their overall parts sales.

Gay notes that much of Jim Ellis Hyundai Parts’ success is due to their commitment to inventory and their dedicated staff. “We are proud to be the largest dealer in Georgia and ranked 16th nationally.” Additionally, as their motto “Expect the Best” suggests, Jim Ellis Hyundai is committed to excellence, and they do their best to provide their customers with exceptional service and competitive discounts.

In addition to their impressive parts department, Jim Ellis Hyundai is

proud to offer a “top-notch service department with skilled technicians trained to accurately diagnose vehicle problems,” according to their website.

Their collision team has over 70 training certificates, including ASE and ICAR certifications. In addition to performing repairs on all makes and

models, they have been directly certified by several manufacturers, including Porsche, Audi, Volkswagen and General Motors, which includes the Corvette Z06 and ZR1. The Jim Ellis Collision center also accepts all insurance, and they are part of the preferred provider programs for Chubb, USAA and Met Life.

The service department also offers a free iPhone and Android application that allows customers to track their service visits and fuel mileage— two ways that customers can go green.

This application allows customers to keep track of their service history and maintenance, schedule service appointments, call Roadside Assistance, gain access to owner’s manuals, ask questions of Jim Ellis’s service advisors, and receive specials from the dealership. Customers can also track fuel used, expenses and MPG, and they are able to store information for up to four vehicles, such as a photo and important information about their vehicle, including VIN, license plate, insurance policy information and radio and navigation codes. Jim Ellis also shows their dedication to customer service through their blog and monthly newsletter.

Jim Ellis Hyundai is an AskPatty Certified Female Friendly Dealer, demonstrating their dedication to valuing and educating their female customers. Because the Jim Ellis Automotive Group’s reputation is built on being a family-owned and operated business, this certification seemed like the perfect fit as they always try to treat their customers like members of their own families.

8 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Though Jim Ellis Hyundai opened in 2000, Jim Ellis began his automotive empire in 1971 with the Volkswagen brand. During his youth, Ellis held many jobs, such as working on a farm, doing construction, maintaining a concessions business at Grant Park, and running milk, paper and laundry routes.

While earning his BBA in general management from West Georgia College and Georgia State University, Ellis worked as a prison guard and foreman, and he sold insurance, IBM machines and real estate. After serving two years in the U. S. Army, he tried his hand in various fields until he found his place in the automotive industry in 1960 with General Motors. Ten years later, Jim and Billie, his wife, took a huge financial risk in order to establish their own automobile dealership; selling all of their assets, utilizing their savings, and cashing in Billie’s 15year retirement fund from Georgia Tech, they gathered $35,000 in assets.

They then borrowed the remainder necessary to open Jim Ellis Volkswagen in 1971.

Since their inception, Jim Ellis dealerships have been family-owned and operated. Jim Ellis is currently the President and CEO of the company, and he is still extremely active in the corporate and capital decisions that are made. Billie, his wife, serves as Secretary and Treasurer of the corporation. Their son Jimmy is the Vice President and Chief Operating Officer, while their daughters, Karen and Kristi, are Corporate Officers. Karen’s daughter, Brooke, works as the Social Marketing Director for Jim Ellis Hyundai. Wes, Jimmy’s son, is the General Manager of Jim Ellis Hyundai, and Jimmy’s daughter, Stacey, serves as the General Manager of Jim Ellis Saab of Atlanta and Jim Ellis Mazda Atlanta. Jim’s greatnephew, Chris Roper, contributes to the family business as the Insurance Loss Control Administrator for all Corporations.

In regards to the way that the business is run by the Ellis family, See Jim Ellis Hyundai, Page 13

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 9

Collision Repair Industry Loses a Legend and a Friend; McBroom Passed Away Oct. 11 Dave McBroom February 16, 1945 – October 11, 2012

The collision repair industry is mourning the loss of Dave McBroom, president of the Florida Autobody Collision Alliance, and friend, brother and mentor to countless people whose lives he touched.

William David “Dave” McBroom passed away peacefully on October 11, 2012 in Jacksonville, FL, at the age of 67. A native of Cookeville, TN, and a graduate of the University of Tennessee, Dave served in the U.S. Army for 21 years and was a decorated helicopter pilot in Vietnam before retiring as a Colonel.

Dave was also president of Sunbeam Autobody in Jacksonville and was committed to raising the professional image of the collision repair industry. Through Dave’s leadership and passion, the Florida Autobody Collision Alliance was formed and grew from three body shop owners having coffee once a month to more than 400 members in six chapters throughout the state.

“FACA’s members and board of directors grieve Dave’s untimely death and extend our deepest condolences to his wife Terri and his entire family,”

said Cathy Mills, FACA’s executive director. “Dave was an absolute role model—a caring friend, a supportive husband and loving father and grandfather, and a passionate industry advocate. Our lives will be forever changed with his passing.”

“I have lost a very dear friend,” said Chuck Sulkala, executive director of the National Auto Body Council. “Dave’s ever present greeting of ‘what can I do to help you today’ will be my pleasure to ask of others I now meet. I am sad beyond Dave McBroom belief and he will be missed deeply. May Dave’s legacy be with us forever.”

“Dave McBroom was an amazing, inspiring individual,” shared SCRS executive director Aaron Schulenburg. “His membership, his peers, and his friends flocked to him.

He had a lifetime of well earned experiences that gave him the apt ability to tell an inspiring tale on just about any subject matter, and a compelling kindness in his disposition that offered a charisma held by few. His passion for

Shops Help Victim of Road Rage Repair Car

Radio listeners in Seattle, WA, stepped up to help a woman who was a victim of road rage. Emily Lawson works for a non–profit organization and said she was unable to pay for the repairs to her car. When 97.3 KIRO FM radio aired the story, two generous listeners offered to help Lawson pay for the repairs needed to her car.

Shayne Hedahl with Special Interest Auto Body in Everett offered to complete all the repairs needed, and Jason Martin with Auto Glass USA spoke with Lawson about replacing the back window that was smashed.

The damage was done to Lawson’s Ford Escort while Lawson was driving home from a family barbecue.

She was at a red light and when the light turned green, a boxy, black SUV cut her off. The SUV was driving erratically. Lawson said when it moved over to the shoulder, she was able to get around him.

“He proceeded to follow us, swerving around the road, screaming and waving his arms,” said Lawson.

It was so ridiculous, Lawson and her 25-year-old passenger laughed it off at first. That is, until both cars got stuck at a red light. The driver of the SUV stopped behind her, jumped out and ran toward her car.

The man, described as six-feet tall and a very muscular 200 pounds, jumped on the back of Lawson’s car and slammed his arms down on the roof hard enough to leave a dent.

Then, Lawson said, he ripped the spoiler off the back of her car and used it to smash through her back window. The impact was so hard, pieces of glass flew at the back of Lawson’s head and up onto the dashboard of her car.

“As soon as he busted out the window and was still screaming in such a fit of rage, I thought he was going to kill us,” Lawson says.

When the light finally turned green and Lawson drove away, she says the man threw the spoiler back into her car through the missing back window.

A few minutes later she stopped to call 911, and she realized a lot of people must have seen what had happened.

“Nobody stopped to help us.

That was disappointing. We were two women in a car being attacked by this ‘Hulk’ guy who was just bashing our car up,” said Lawson.

Lawson works for a non-profit that does outreach to homeless kids.

She said she could not afford to fix all the damage to her car. She was ecstatic when she learned she would not have to pay for the repairs.

10 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

the industry, for what is right, and for living life to its fullest was unparalleled and it is an immeasurable loss for all of us.”

Dave leaves behind his wife Terese “Terri” Walker McBroom, sister Marilyn Joyce “Joby” Cloutiaux; children Kevin McBroom (Pam) of St. Augustine, FL, Stephanie Nelson (John) of Cookeville, TN and Amy Helms (Alan) of South Carolina; niece Shayne Harris (Kirk), nephew Robin Trousdale (Sonia); grandniece and nephew Ashley Pelfrey and Clayton Hopper. As “Pap,” he will be missed by his adoring grandchildren Andrew, Isaac, Kingston, Winston, Ally, Abby, Lily, Lyla, William, Ashlyn, and Lexy.

Funeral services were held Oct. 18 in the Chapel of Hardage-Giddens Funeral Home of Mandarin.

Interment will be held at a later date in Double Springs Cemetery of Cookeville, TN. In lieu of flowers, the family requests donations be made in memory of Dave McBroom to Hubbard House Women’s Shelter, Attn: Development, P.O. Box 4909, Jacksonville, FL 32201, or Concerns of Police Survivors (C.O.P.S) 5530 Beach Blvd, Jacksonville, FL 32207.

Prevost ALR Aluminum Air Piping is an Easy System

The second largest energy cost in the average automotive shop is generating and maintaining compressed air.

A new Prevost ALR aluminum air piping system can pay for itself in less than two years in lower energy costs while extending the life of components and pneumatic tools. Prevost ALR comes in seven sizes from 20 mm to 80 mm diameter.

The key to the cost saving are the smooth walls of the piping, aluminum’s excellent corrosion resistance and the system’s “bubble tight” compression connectors.

Another major benefit of Prevost ALR piping is installation cost savings.

According to the MCAA Labor Manual, installation time for a 300-foot aluminum looped header system is 20 hours compared to 63 hours for black iron and 74 hours for copper. The system can be easily installed or modified by shop staff without threading, sweating or gluing and produces “bubble tight” connections. And the system can easily be reconfigured or dismantled and moved to another location.

For more information on Prevost ALR Aluminum Air Piping Systems, call 800-845-7220 or visit www.prevostusa.com.

Auto Data Labels is a preferred vendor for MSO’s, Dealership Collision Repair Centers, Franchises, Networks, Independent Collision Repair Facilities, and Insurance Companies throughout North America.

If your business would like to make Auto Data Labels your “Preferred Vendor” please submit your info through our “Contact Us” page and we will be more than happy to assist you. www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 11

Continued from Cover

Steve Plier

perfect world by numbers.’ More often than not, in this industry, reality is much different than the perfect world. Reports/scorecards of repairers are formed through a perfect world computerized format. For example: new parts can and are often damaged in shipping, causing returns and delays; used parts often are not of quality to be used in the repair process; vehicle owners often leave their vehicles (that are safe to drive) at repairers on Fridays because a claims representative has ok’d a rental. These examples are only a few that come to mind that can affect a repairer’s scorecard. Some of the numbers/averages on the scorecard include formulas that have key performance indicators in a weighted format that could never be explained as how the particular number/average score was determined.

Not a comfortable situation when attempting to discuss a repairer’s performance considering we do not live in a perfect world.

ABN: What do you think of the PartsTrader pilot program?

Plier: My opinion of the Partstrader program is not positive. The information provided to me by repairers on the program, from individuals that were in meetings with State Farm employees during the test pilot roll out in Alabama, the information that is being provided by the many different publications and the information provided

by State Farm Consultant George Avery at the recent Georgia Collision Industry Association meeting indicate to me there are a lot of questions that State Farm and/or PartsTrader either refuse to answer or do not have an answer for. I would suggest everyone to consider if something is mandated, why is it being mandated? Items, programs, actions, etc. that have to be mandated usually have a lot more bad for a large multiple sectored group than good. Is this the reason the portion of the Select Service agreement is being actively enforced on this program? Any repairer on the Select Service program agreed if requested/required by State Farm to use a parts locating/procurement program they would. There are several others sections within the Select Service agreement with the same type language that repairers have agreed to.

ABN: Why do you think State Farm introduced this program? Where do you think State Farm is going with it?

Plier: I feel there are multiple reasons. First and for the immediate time, I feel State Farm was aware of manufacturers offering parts pricing match programs and believed the implementation of a program such as PartsTrader could lead to suppliers taking an aggressive approach to expand business by reducing prices in a bid/quote program such as this. However, I believe the bigger purpose here is if successfully implemented, this would open the door to the other sections of the Select Service agreement requiring additional actions from repairers as agreed to such as this.

ABN: How do you think the program will affect the industry? Repairers are saying this pilot program is inefficient and costs them more than its worth.

Plier: I feel if State Farm is successful with this program resulting in mandated use of locating and procurement systems, the balance of the insurance industry will quickly follow with the same or similar programs. My opinion is this will not be good news for the consumer. I know State Farm is saying this is intended to be focused on claims expense and no one should be against anything that might result in reduced cost, and according to State Farm, a possible reduction in premiums for policyholders. I am currently a State Farm policyholder; I definitely want my premiums to be as cheap as possible, but even more importantly, I want my vehicle repaired properly. For repairers to keep up with the ever-changing technology, training is a must. Equipment requirements must be maintained so if programs such as this affect industry members’ ability to meet these needs it is not good. I have read and heard Mr. Avery say State Farm does not want to tell repairers who to buy from, but I have not heard State Farm address the actual inefficiencies that to date I have seen this program cause to repairers and other inefficiencies I have been told of by repairers. There does not seem to be any concern from State Farm and/or Partstrader that this program does indeed have an additional labor and administrative time/expense associated to it for the repairer and supplier. I read in an article, that

12 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

according to the writer, the repairers they had spoken with suggested an average additional 30 minutes per day. The repairers I have spoken with in Birmingham suggest to me they approximate spending an average of an additional 30 minutes per claim.

Birmingham repairers note you may have some claims that only require an additional five to ten minutes of additional time, but you also have those claims they may require an additional hour of administrative time. I have not spoken specifically with any parts suppliers on the PartsTrader list, but feel any supplier on the Partstrader list is also incurring additional administrative time and expenses if they are following the rules of the program.

ABN: Does this program offer any benefits to the repairers?

Plier: Based on the current information provided and from the feedback received from Birmingham area repairers, I have not been able to identify what I would consider a benefit for a repairer on the program. State Farm has stated they have received positive feedback from their evaluations, the only

thing is, to my knowledge, State Farm has not to this date provided a single item with the industry that can be viewed as positive feedback.

If there has been anything positive for the repairer, I have not heard nor have I read about it.

ABN: With repairers highly wary of the program, what do you think the solution is?

Plier: I feel the distrust and confrontational nature of this industry between the two parties are much deeper than this program. I am not sure there is a simple solution for this issue if all sides must benefit. If attempts are made to identify efficient alternatives, both sides must work together to identify the many different possibilities.

There already exist electronic ordering opportunities used by many repairers, so if there is ever to be a solution that all sides agree to, I feel there will be multiple businesses/ venders to choose from. I do not feel mandating a particular program is the answer.

ABN: Was State Farm too aggressive in launching this program?

Plier: Considering the information

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that has been provided to the industry, ‘yes.’ I do not believe the details had been thoroughly reviewed and considered.

ABN: What does it suggest to you when State Farm can’t come up with a single benefit to repairers?

Plier: Maybe because there is not a single benefit associated to the shop in regards to this program. I believe if State Farm had identified benefits for the shops and or the suppliers, we would all have heard about them by now.

ABN: What kind of damage control could State Farm do now?

Plier: I’m not sure there is a definite single thing that could be focused on here. There are many issues in the repair industry that need to be addressed for the “RIGHT REASON”—the consumer. Many of these issues have been around for many years, but have never been addressed. As rules identified in repair agreements continue to expand, the magnification of the many issues grow. For example: the need for an independent third-party survey process to identify a competitive pricing range; the agreement that the re-

pair procedure pages are not pick and choose, but will be honored completely at all times, just to name a couple.

ABN: What should affected shops be doing right now about PartsTrader?

Plier: My recommendation would be for each and every repairer on the Select Service repair program or any repair program to review their program agreements and then reread them again. List questions or concerns identified in the agreements and contact the particular insurance company to discuss any questions or concerns. After any discussions, make a business decision based on consideration of all factors of what you feel is in the best interest of your business.

ABN: What is the background of State Farm’s previous efforts on this issue?

Plier: State Farm had a trial program in California and Indiana in 2009, but discontinued the program after Chrysler filed for bankruptcy and GM accepted a government bailout in 2009. The trial was structured differently then as compared to the PartsTrader program now.

About CARE Plier started his business, CARE, in 2010 after leaving State Farm. His goal, focus and efforts with Consumer Auto Repair Excellence, Inc. has been to assist repair facility owners and manager with a better understanding of simple business principles, such as understanding their business operating cost and the importance of quality control programs, and to understand simple things involved in the repair process, that if itemized, they should and could be compensated for by the majority of the insurance companies.

The services provided by CARE also involve assistance to repairers by investigating issues and questions that repairers encounter and providing documentation to back the recommended positions. Plier assists repairers with identifying possible solutions that would be beneficial to the industry and in particular focused on what is appropriate and in the best interest of the consumer.

Steve Plier, President Consumer Auto Repair Excellence Inc. www.consumerautocare.com 205-623-9307

Continued from Page 8

Jim Ellis Hyundai

Ron Gay notes “the responsibilities of these family members are clearly divided, and many of the family members play an active role in the businesses. We now have three generations working every day in our family business. The fourth generation is coming up with eight members, ages one to eleven. They are young, but we are planning for them to have an opportunity to work with us too, when they complete their chosen education.

All family members have worked their way up in the organizations by working in all departments and learning the policies and procedures of the company.” Ellis plans to continue providing customer service for transportation needs as long as there are willing and able family members who can successfully run the business.

Jim Ellis Hyundai 5785 Peachtree Inc. Blvd Atlanta, GA 30341 P- 800-533-1180 Parts Manager - Ron Gay

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 13

Northeast News with Chasidy Rae Sisk

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

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More As a follow-up to the CCRE legal seminar held in March 2012—which I attended and wrote about in Autobody News (search “CCRE” at autobodynews.com)—the Pennsylvania Collision Trade Guild (PCTG) hosted the Coalition for Collision Repair Excellence for the second event in this series of seminars.

CCRE’s 2012 Fall Seminar was held Friday and Saturday, September 21–22 at the Airport Embassy Suites in Philadelphia, PA. PCTG decided to host CCRE again due to the overwhelmingly positive responses they received on the 2012 Spring Seminar. An audience of nearly 50 came to Philadelphia from as far away as Alaska.

Steve Behrendt addresses the contract of adhesion

Attorneys Erica Eversman and John Parese joined the CCRE’s legal seminar as featured speakers to share their legal expertise on the collision repair industry.

In his welcome and introduction speech, Steve Behrendt, president of PCTG and CCRE Board Member, addressed the importance of understanding adhesion, or more specifically, an adhesion contract. [Editor’s note: An adhesion contract is one which is imbalanced in favor of one party over the other so that there is a strong likelihood it was not freely negotiated.

Example: a rich landlord dealing with a poor tenant who has no other options and must accept all terms of a lease, no matter how restrictive or burdensome, because the tenant cannot afford to move. An adhesion contract can give a “little guy” the opportunity

to claim in court that the contract with the “big shot” is invalid. This doctrine should be used and applied more often, but the same big guy-little guy inequity may apply in the ability to afford a trial or find and pay a resourceful lawyer.]

Behrendt explained how a relationship with a third party (i.e., the insurance company) triggers a legal and binding contract which exploits a shop’s ability to do business individually. Behrendt said that avoiding adhesion will help collision repair shops operate independently by providing them with the freedom to be paid based on the services performed as adhesion can influence a court’s decision against a shop as it regards their relationship with a third party. In contrast, an authorization to repair form protects a shop’s independence, their relationship with the customer, and their need to make a profit by distancing them from the insurance company.

Through adhesion, third parties try to make the reserve estimate part of a shop’s repair process by utilizing their estimate as a method of payment, but the estimate is only the third party’s guess at the cost of the repair, not a blueprint for the repair.

The insurance company’s estimate is created to verify that there is a legitimate claim and to set a claims reserve which is money earmarked for eventual claim payment. Shops need to find a way to eliminate this estimate in order to prevent insurance companies from controlling their business. One way to do this is by stamping all third party documents as “for informational purposes only.” This preserves the shop’s independence by avoiding adhesion and any type of agreed-price scenario. It also allows shops to distance their business from a third party’s control and behavior. Shops should prepare and work off of their own repair blueprint and analysis, and this is what should be used for the repair and the final invoice.

Shops should properly prepare and close their final invoice based on the shop’s job costing and gross profit, handing the invoice to the insurance company for final payment.

Moving from a collision repairer’s point of view to a legal point

14 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

of view, attorney Erica Eversman took the floor to discuss repair contracts and authorization to repair which was very similar to the presentation she gave in

Attorneys Erica Eversman and John Parese

March of this year. Discussing the differences between the two contracts in a non-DRP relationship compared to the three contracts that make up a DRP relationship, she noted that “insurers like to think they’re in charge of everything. They want all of the control and none of the responsibility.” In a DRP relationship, two informed parties

have an agreement about how to satisfy the obligations of their individual contracts to the customer, usually before a collision actually occurs. In the current aberration for individual shops, the insurer acts as if the repairer has duties to this third party which is why it is so important for shops to utilize a written repair contract. A classic example of a contract of adhesion is found in insurance policies as one party has more power than the other since consumers are legally required to have auto insurance. This is the only industry where consumers do not really have the ability to negotiate their contracts or even see the terms before they purchase it, which is why this binding contract can be cancelled.

In the relationship between a repairer and a consumer, the repairer’s responsibility is to inform the customer, acquire authorization and repair the vehicle, while the consumer should receive information, approve the re-

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 15

pairs and pay. Repairers have no right to expect payment from the insurance company as they should expect payment from the consumer, but though it’s important to provide customers with an estimate of the repair cost, consumers are more concerned with how their car gets fixed since the insurance company actually pays the bill. This is why Erica recommends getting the customer’s informed consent after the repair process has been fully explained to them so they understand what is going on with their vehicle.

A repair contract should define the customer, the shop’s duties, what type of parts will be used, the damages to the vehicle and the repairer’s professional judgment. A wise inclusion is the right to expectancy damages which will entitle the collision shop to get paid for costs accrued if the customer opts to take their car to a different shop. This also includes reimbursement for loss of work if the insurance company persuades the consumer to have their vehicle repaired at a DRP shop. Additionally, this encompasses the preparations that the shop has made, such as ordering parts and allocating time and personnel. This can also include opportunity cost, defined as potential business that may have been turned away because the shop’s resources had already been dedicated.

This will help to establish recovery from tortuous interference. The signed contract ensures that the shop has the right to sue for expectancy damages.

The repair contact is designed to emphasize that the repairer is the professional and that repairs are based on the repairer’s professional judgment.

When there is a conflict in the opinions of the repairer and the insurance company regarding what is right to do, the repairer’s opinion should take precedence because they are the professional. Erica believes this is important for developing a better public relations standing regarding how complicated collision work is since there are many variables that come into play; unfortunately, the collision industry is losing the public relations war because insurance companies spend a lot of money advertising about how they repair vehicles, leaving consumers with the misconception that their insurance company will fix their car, through the insurer only pays for the repair.

Emphasizing that shops “must remember that the insurance company is not their customer,” Erica reiterated her lesson from March about the three

options that insurers have when handling a claim and how a DRP relationship allows them to control the repair without accepting liability. She discussed the usefulness of addressing replevin in the repair contract. Replevin, sometimes known as “claim and de-

Truman, Steve, Rick, Mike and Tony of CCRE

livery,” is a legal remedy which allows the recovery of goods unlawfully withheld from possession via a legal process in which a court may require a defendant to return specific goods to the plaintiff at the outset of the action (i.e. before judgment). Replevin grants the shop the right to a possessory lien, allowing them to retain the vehicle until payment is received. Erica explained the benefits of an Assignment of Proceeds and other documents.

Another useful document is the Acknowledgement Terminating Repair Contract and Releasing of Motor Vehicle which is designed to protect collision shops by giving them the chance to retain business by informing the customer of what is going on and by improving a shop’s chances should they decide to take the case to court. A Customer Notice of Insurance Deficiency informs the customer of their insurance company’s refusal to fully pay to properly and safely repair the vehicle. This helps in the public relations battle as it shows the shop’s refusal to breach their repair contract by adhering to the insurer’s pressure to provide an unsafe repair.

A Customer Notice of Insurer Delay keeps the customer informed regarding their repair by alerting them to delays caused by their insurance company. Shops can also provide their customers with the Vehicle Damage Insurance Election form which they can send to their insurer demanding to know how they plan to pay for the repair. Though it is highly unlikely that any insurance company will sign this document, the insured has the right to demand a response from their insurance provider. A Notice of Additional Cost can also be sent to the insurance company to inform them of additional costs incurred during the repair. This

16 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

document helps independent collision shops avoid third party interference by refusing to permit the insurer to cause inefficiency and by giving the impression that the insurer must respond to the shop, reiterating the point that the repairer is in control of the repair.

Erica Eversman also recommended providing consumers with a Parts Notice and Authorization document, which she plans to publish on autoepi.org for distribution, in order to help consumers understand the various types of parts that may be used to repair their vehicle. She ended this presentation by repeating her opinion of the dangers of aftermarket and salvage parts and discussing what shops should and should not warrant, emphasizing that shops should not offer a

warranty on anything other than their workmanship.

Next, John Parese, Esq., discussed the definition and uses of an assignment. An assignment is a transfer of property or another right from one person to another which confers a complete and present right in the subject matter. As a contract between these two parties, an assignment is subject to contract law and interpretation. Causes of action issuing from a wrong which causes injury to the property or from tort by which the property is diminished or damaged are generally assignable, and a party may assign their right to recover damages to the property without conveying title to the property.

A valid assignment requires clear evidence of the intent to transfer rights and a description of the subject matter of the assignment; it must be clear and unequivocal, and it must be noticed to the obligor. While there are no formal requirements for an assignment, the language used must indicate the owner’s intention to transfer the claim.

Valuable consideration is essential to support an assignment, and though the word “consideration” does not necessarily have to appear on the assignSee CCRE Seminar, Page 19

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Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law North State Autobahn Inc., a Westchester-NY-based body shop owned by Greg Coccaro, has won an important victory in the New York Supreme Court Appellate Division against Progressive Northeast Insurance Company, Progressive Casualty Insurance Company, Progressive Direct Insurance Company, Progressive Specialty Insurance Company, and Nicholas Stanton. The result likely creates a case law basis for deceptive acts and practices claims against auto insurance companies that divert policyholders away from repair shops outside their DRP networks.

In a fifteen page decision, the court went into great lengths explaining the history of “Business Law Section 349, Deceptive Business Practices” and the intent of it, writing: “This case presents us with the question of whether a business entity [North State] has stated a valid cause of action for violation of General Business Law §349(h) where it alleges that another business entity [Progressive] deceived and misled prospective customers, causing it to sustain direct economic loss in the form of more than $5 million in lost business sales. We conclude that it does.”

North State sued Progressive under New York’s deceptive acts and practices statute, General Business Law section 349, for misleading consumers into taking their damaged vehicles away from North State to competing body shops within Progressive’s “network.”

North State’s suit alleges that the insurance company coaxed customers away by maligning the shop’s work and pricing.

In North State Autobahn v. Progressive Insurance, the Second Department’s ruling, denying Progressive’s motion for summary judgment and allowing North State’s suit to go forward, confirmed a business’ standing to recover for direct harm caused to it by another business’ deceptive acts and practices—even if that business is a competitor.

Justice Robert Miller, writing for a unanimous panel, held that North State’s allegations concerning Progressive’s acts depriving consumers of their choice of body shop satisfied the statute’s requirement that the deceptive acts at issue have an impact on consumers at large. The court further held that the law does not require that North State identify specific consumers who were harmed.

The court also rejected Progressive’s argument that North State’s injury was merely derivative of that of the injured consumers, finding that North State adequately alleged direct harm the instant customers were misled into taking their vehicles to a network shop, regardless of whether such customers ultimately suffered pecuniary injury. The fact that North State was a business competitor and not the consumer in the transaction was held to be irrelevant for purposes of standing under the statute, under which punitive damages and attorneys’ fees are recoverable.

Background In 2007, North State Autobahn, Inc. commenced this action against the Progressive defendants and a number of Progressive employees, including the defendant Nicholas Stanton. Asserted in the complaint, was that the Progressive defendants had violated General Business Law §349. Specifically, the complaint alleged that the Progressive defendants deceived claimants who sought to have their ve-

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hicles repaired at the plaintiffs’ and other repair shops that did not participate in their DRP by making misrepresentations as to [Coccaro’s shop’s] workmanship, price, timeliness of service, and character. North State also alleged that the Progressive defendants issued damage repair appraisals well below fair-market value at about one-half the estimate of the plaintiffs’ estimate, and that the Progressive defendants represented to claimants that the plaintiffs would make only partial payments for repairs which would necessarily require claimants who had their vehicles repaired by the plaintiffs or other independent shops to incur out-of-pocket expenses.

The plaintiffs further alleged that the Progressive defendants engaged in such deceptive practices in order to mislead customers of the plaintiffs and other independent shops to believe that they must have their vehicles repaired at repair shops that were members of the DRP. The Progressive defendants allegedly failed to inform these claimants that the repair shops that participated in the DRP used inferior aftermarket parts, or were not registered or qualified to work on specific vehicle models. As a result of the Progressive defendants’ actions, the plaintiffs alleged that they sustained direct economic loss in the form of more than $5 million in lost business sales, and that the public at large sustained other damages. For more on the case, search on “Coccaro” at www.autobodynews.com.

“This is a significant decision that enables businesses to pursue ‘deceptive acts and practices’ claims in business-to-business disputes—even between competitors—that have an impact on consumers at large,” said Dennis Artese, a shareholder at Anderson Kill & Olick who represented North State. “That’s critically important because it allows well-funded businesses to police deceptive practices where the state attorney general does not, and where individual consumers cannot, because they just do not have the financial means to fight an insurance goliath like Progressive in the legal system.”

Along with Artese, North State was represented by Finley Harckham of Anderson, Kill & Olick and solo practitioners Anthony J. Mamo, Jr. and Richard P. Stone.

The Progressive Group was represented by Nelson Levine de Luca & Horst, LLC, New York, N.Y. (Michael R. Nelson, Kymberly Kochis, and Francis X. Nolan IV of counsel), for appellants.

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Carroll Shelby Foundation Unveils Signature Program

Established by automotive legend Carroll Shelby, the Carroll Shelby Foundation will honor the man who devoted his time to helping children in need with the highly-anticipated unveil of the exclusive Carroll Shelby “Commemorative Signature” Program. Dedicated to providing financial

support for children and medical professionals to help overcome lifethreatening health issues and continuing education among today’s youth, the Carroll Shelby Foundation will offer this exclusive commemorative signature program to raise money for its mission.

“The commemorative signature program is a way to remember and continue Carroll’s good work,” said Jenni Shreeves, executive director of the Carroll Shelby Foundation. “We hope people join us in the fight to help children at home and around the world receive the medical treatment and

transplants they so desperately deserve, as well as the education they need.”

Enthusiasts will have the option to receive the commemorative signature on an assortment of exclusive items including signed art, sculptures, die-cast models, books and more.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 17

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

Paint Management

E-Coated Parts Procedure with Stefan Gesterkamp

For some months now, people keep asking me why I haven’t recently contributed to Autobody News. The answer is simple, I didn’t feel I had anything interesting or of value to write about. This changed a few weeks ago.

As a paint manufacturer’s rep, there is not a month that goes by without being put in the middle of collision repairers and insurers, expected to chime in on a dispute about what is necessary for a proper repair. One of my customers called and informed me that an insurance agent declined to pay for priming or sealing new ecoated parts. The agent told my customer that sealing or priming new parts wasn’t a necessary step in a proper repair process. Anybody that knows me well will not be surprised to learn that I got very excited about this statement. How can someone in our industry make such an irresponsible statement? And then I leaned back and thought about this for a moment.

During the course of a year, I visit hundreds of shops and have witnessed this exact procedure performed more often than I cared to admit. By simply looking around our industry, an insurance agent that likely never had to repair a vehicle for a living could easily get the impression that sealing or priming new parts is an optional, but not necessary, step in a repair process. I feel comfortable about the fact that most, if not all major paint manufacturers will agree with me, painting directly over e-coat is not a recommended repair process. Furthermore, paint failure as a result of this practice would not be covered by most manufacturer’s warranties.

There are several problems with painting directly over e-coated parts.

Although OEM e-coat is an excellent corrosion protection coating (not sure about some of the aftermarket parts), e-coat contains no UV protection package. E-coat is generally epoxy based and unless completely shielded

from UV rays, its surface can become unstable. Resulting in paint layer separation and peeling. Some of the newbies in our industry may not remember the early 90’, but many of us do. How many GM and Chrysler factory paint peelers did you repair in your professional career? These cars and trucks peeled for the same reason, UV exposure to the e-coated surface.

If you repaired one of these vehicles, you likely remember that the surface of the vehicle was powdery after you peeled of the paint layer. This powdery subtends that easily rubbed off onto your fingers was the top layer of deteriorated e-coat.

Just put enough paint on it and you should be fine, right? I wish it were that easy. The first problem with this thought process is: how much is enough? Are you thinking 4, 5, or 6 coats of paint? 8 to 10 coats on some reds? The truth is that no one knows when full coverage is achieved during the paint process. Take a piece of glass

and paint it with basecoat and clear.

After it cured completely, hold it up to the sun and see if any light penetrates through. Attempting this exercise will quickly demonstrate that this approach doesn’t work. It takes much more paint than anticipated before 100% coverage is achieved through basecoat application. Protecting the integrity of your work through sealing or priming instantly emerges as a more cost effective solution. And if cost wouldn’t be a factor, the resulting high film build of basecoat color would present a paint problem of its own.

The next issue with painting directly over e-coat is stone ship resistance. E-coat is a very hard coating.

The difference in hardness between ecoat and basecoat is too great for a long lasting paint finish. The application of a primer or sealer to the e-coat will bridge this cap. Although there is no way of fully preventing rock chips See Parts Procedure, Page 39

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CCRE Seminar

ment, Parese recommends it. An assignment requires an exchange, such as allowing a customer to take their vehicle without the shop receiving payment if they sign the assignment. An Assignment for Money Due should identify the customer, facility, vehicle and loss.

The document does not need to be notarized and should be enforceable without defects. Parese also advises shops to have all customers sign a repair contract. Parese ended his presentation by using clips from “Hot Coffee” and several insurance commercials to reiterate his message about public relations from the March seminar.

Tony Lombardozzi, President of CCRE, followed with a brief talk on the need to change the mindset of collision repairers and to send a message of whose business the insurer is visiting. In the collision industry, “we operate every day on fear”, Lombardozzi claimed, continuing to elaborate that shops fear losing business and being subjected to steering.

On Saturday, John Parese began the seminar with a presentation entitled

Ten Steps to Consider When Filing a Lawsuit. The first step is to provide proper documentation, including a signed repair contract and the final invoice. Noting that “the insurance company doesn’t like being sued,” Parese reminded attendees that the insurer’s estimate is just a guess on the likely damages and is not reliable. The second step is to verify that all work was completed and billed correctly. Because lawsuits result in hyper scrutiny on both ends, it is imperative that the repairer did everything they claim they did during the vehicle’s repair.

Step 3 requires the use of a proper Assignment of Claim which will allow the shop to stand in the customer’s shoes to acquire payment. The fourth step involves choosing a reasonable customer, and it is important to lay the proper foundation of information as surprises in the courtroom are a bad idea. The case a shop chooses to fight in court should involve a cooperative and informed consumer.

Step 5 is to establish liability with the information to prove the basis of the claim. Parese notes that “you have to establish negligence in order to prove liability”, but on short pay cases, it can be argued that the insurance company

accepted liability by paying on the damages, even if they did not pay in full.

Step 6 requires securing all necessary documents, including the police report, proof of liability and all information about the parties involved. Providing all of this will make the process as easy as possible on the lawyer.

While shops may not win every single case, each small victory affects business since it will dissuade insurance adjusters from harassing the shop. The seventh step involves finding an attorney to take the case, and Parese notes that small cases are often combined into one larger case. Step 8 is to create a labor rate survey by surveying 12–20 local shops to disprove the insurance company’s common claim that a shop has the highest labor rates in the area.

This survey can help justify the claim that your rates are reasonable, and the goal is for your posted rates to fall somewhere in the middle of the shops included in the survey; however, it is important not to share this information to avoid accusations of conspiring with others to increase labor rates.

Step 9 is to provide several examples of being paid your labor rate, proving your posted rate is reasonable and fair. This is critical as the insurer should be paying the same rate as a customer off the street. The tenth step is to stamp all documents with “accepted under protest as partial payment only for property damage.” Repairers should appear at court dressed professionally and with a business-like approach in order to show the judge that they are taking the case seriously, and this will help overturn preconceived misconceptions and stereotypes about the industry as well as to show that the repairer is not trying to take advantage of anyone but is trying to stop getting taken advantage of.

Parese ended his presentation by discussing tortuous interference with the repair contract and how to prove the insurance company intentionally sought to interfere with the contract between the repairer and the customer. In order to show that the defendant’s conduct is tortuous, the plaintiff must prove improper motive and willful malice. This sends the message that the insurer is not above the law and that they can and will be sued for refusal to comply with the Code of Ethics and other laws.

Once Parese concluded, Kurt Lundgren, an attorney in the medical insurance industry, presented about the similarities between the automotive and medical insurance industries and their issues. He noted that it is naive for

collision repairers to believe they are immune to the insurance companies, but repairers are in the business of fixing vehicles and providing customer service to make money, so they should get to the bill when dealing with insurers. He pointed out that “this is all a game for the insurance company, but this isn’t a game for you guys.”

Lundgren noted that in both the auto and medical insurance industries, proof is required to prosecute, but he urged repairers to recognize and emphasize that they are doing this to help the consumer. He also praised attendees for being on the right track about how they deal with insurers, agreeing that shops should not negotiate with insurance companies.

Tony Lombardozzi led a discussion about the audience’s experiences.

He urged attendees not to put anything on paper or online that they are not prepared to defend in court. Though he admits that the industry can be depressing at times, he insists that repairers can have fun with fighting the insurers, as well as making money, because it is exciting to make the insurance companies justify their actions. He believes that shops “need to see that the process works and they can have fun with it.”

Discussing how insurers have their own versions of estimating software that provides a lower estimate than the shop’s version, Tony noted that everything insurers do is based on this estimate, so repairers need to take that tool out of their hands by removing the insurance company’s estimate from the equation. Tony added that the insurers “constantly have their hand in our pocket… and come at us in so many ways that it’s hard to keep up with them.”

Tony noted that the insurance companies have spent 30 years brainwashing repairers to believe they are the insurer’s servants, but in reality, collision shops only need to allow adjusters to look at the vehicle, complete their paperwork and go home. Erica chimed in, encouraging attendees to “make it painful for [the insurance companies] by doing it your way, the right way... make it clear to them that you’re not going to be the one who changes.” She went on to state that insurance companies have no right to expect collision repairers to stop their process just because the insurer has adopted another bizarre practice. Insurance companies are great at propaganda and brainwashing, but when they try to dictate what a shop can and See CCRE Seminar, Page 23

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 19

East Bay CAA Members Get Schooled at University of Toyota

by Ed Attanasio

They don’t have a sports team, a fight song or a mascot, but it’s a major institution that can help body techs and painters throughout the country to work smarter while repairing a leading car brand. It’s called the University of Toyota and it offers the collision industry a unique opportunity to learn how to work on 27 different models of University of one of the world’s Toyota’s Chris most popular vehiRisdon was the keynote speaker at cles ever made. the East Bay CAA’s When the East September meeting Bay chapter of the California Autobody Association (CAA-EBC) convened for their September meeting in Walnut Creek, CA, the evening’s speaker was Chris Risdon, a senior product education and development administrator for the University of Toyota’s product education department. That means that he’s a mega-expert on how to repair any vehicle manufactured by Toyota within the last two decades.

Risdon shared his wisdom with the shops in attendance and his presentation was followed by a spirited question and answer session. The hottest topic in the room revolved around how to properly work on the Prius. With

Estimator Bernadette Lira (at left) and Owner Giovanna Tanzillo from Uptown Body & Fender in Oakland brought Michael Bott (center) owner of Torchio’s Auto Repair as their guest to the EB-CAA’s September meeting

Los Angeles, Jacksonville, FL and New Jersey. The cost for the training is nominal and most classes last no more than two days. The University’s mantra is “Fix-It-Rite/Fix-It Smart” and Risdon explained that its one of the few institutions of its type in the world.

“We’re one of the few car manufacturers out there that teach collision repair,” Risdon said. “By offering collision professionals the latest tools to fix these vehicles, it helps the industry as a whole. It impacts the body shops, because their techs and painters can save time and thereby money. It’s essential information for any tech or painter and even more crucial for those who work on a flat rate/commission/bonus plan.

As these cars become more and more sophisticated, the proper information and associated procedures will be more essential than ever before.”

involved, such as the 2012 Camry SE with the new Entune in-car technology, for example, you’re going to need the best, most updated repair procedures available. We want your techs fixing these cars with confidence and correctness and without training and data,

in the development of new vehicles using emerging technologies, the University of Toyota will be offering new training, Risdon said. “We’ve got a lot of new, exciting things on the boards right now, including hydrogen vehicles and natural gas cars. We’ve also been exploring the viability of an autonomous car, which drives itself.

That’s obviously down the road, but we should all accept the reality that within the next six to eight years, conventional gas-powered cars will be the minority in this country.”

The University of Toyota was created to help the collision industry to fix its cars right, even though it’s not the manufacturer’s main objective, Risdon stated. “We’re actually in the car sales business, not the repair business. But, we know that by fixing our vehicles properly the first time they come into

The model trucks for this year’s Toys for Tots Model Truck Customizing Competition on November 20th were passed out to the participants after the meeting. From left, Bill Andrews, head automotive instructor at College of Alameda, Event Coordinator/Founder Mike Govette and Peter Lock, head automotive instructor at Contra Costa College get ready to compete

Arth & Sons in Oakland, California was well-represented at the meeting with (from left) Owner Ron Arth, Body Tech Scott Ledbetter and Assistant Manager Tom Lehman enjoying the evening.

more than one million now in the country’s fleet and especially popular in California, body shops want to know more than before about this model and the manufacturer’s other hybrids.

The University of Toyota trains approximately 8,500 collision professionals every year at their three locations—in

Risdon stressed the importance of accessing Toyota’s ongoing collision repair bulletins, because new, important information becomes available to shops all the time, he said. “By staying on top of the changes, you can eliminate the guesswork. With our latest models and all of the new technologies

20 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

they’re just guessing. If you don’t have the latest technical information, you’re probably fixing it incorrectly.”

Hybrid classes are one of the most coveted forms of training offered by the University of Toyota for obvious reasons, Risdon explained. When he asked how many shop owners in attendance had at least one Prius in their shop right now, more than a few hands were raised.

“Our 100% dedicated hybrid training is world-class and our advanced hybrid training is very popular with body techs nationwide right now. By coming to the university and tapping into this training, you learn how we want it done, and that’s vital to developing a solid, safe and effective repair plan.”

As Toyota strengthens its position

your shop, it provides a better customer experience, makes everyone’s lives easier and makes your techs more productive. And that’s we provide all this invaluable training.”

In other CAA East Bay news, Mike Govette from FinishMaster distributed model trucks for the chapter’s 15th annual Model Truck Customization event, to be held on Nov. 20 at the prestigious Blackhawk Auto Museum in Danville, CA.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 21

Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

Honda has developed some new technology for vehicle construction, and they have applied it for the first time in the world to a mass-production vehicle; and not just any mass-production vehicle, the Honda Accord, one of the top-five selling vehicles in the United States.

The newly redesigned 2013 Honda Accord went on sale in the United States on September 19, and its construction is the result of Honda’s next-generation Advanced Compatibility Engineering (ACE) body structure which utilizes the new welding technique as well as hot-stamped and other ultra-high strength steels to build its cabin structure.

The Accord’s subframe is made with a combination of steel and aluminum joined together with a process called Friction Stir Welding (FSW).

The continuous weld technology generates a stable metallic bond between steel and aluminum by moving a ro-

tating tool on the top of the aluminum which is lapped over the steel with high pressure. Honda says the resulting weld strength is equal to or greater than conventional MIG welding.

Honda also developed a non-destructive inspection system for quality control that uses a highly-sensitive infrared camera and laser beam to inspect every unit. The carmaker says the Friction Stir Welding system it developed for this process can be also be used for aluminum-to-aluminum welding and could be used for production of a full-aluminum subframe.

The subframe however, should not cause many repairability issues according to I-CAR Technical Director Jason Bartanen, as Honda provides no repair procedures at all for the part, and specifies complete replacement only.

“What will cause some issues is the high strength steel used in this car’s body structure,” said Bartanen speaking from the I-CAR Tech Centre in Appleton, Wisconsin.

The newly redesigned 2013 Accord body uses 55.8% high-tensile steel, more than in any previous Accord. And 17.2-percent of the steel is grade 780, 980 and 1,500 MPa, extremely high grades that have never before been used in any Accord, and in fact, very few other cars, according to Bartanen.

“This is one of the first cars to use such high strength steel (1500 MPa) in its body structure,” says Bartanen. “Most applications only use it only for bumper beams. But the new

Accord uses ultra-high strength steel in its A pillar and B pillar reinforcements as well as its rocker reinforcements. Honda is requiring MIG brazing only in these areas.

While Honda is not the very first to build such a body structure, none of the previous vehicles even come close to the sales volume of the Accord.

“The Volvo XC60 is also using similar ultra-high strength steel (1,500 MPa) in the structure,” Bartanen noted.

The Accord has historically sold between 250,000 and 400,000 units a year compared to XC60 sales of approximately 25,000.

Bartanen said I-CAR is currently updating its Honda and Acura training available online. The new Accord will be covered in I-CAR’s Collision Repair Overview for Honda and Acura Vehicles (HON01) and should be available within the next few months.

“We have an Accord body in white on its way here right now,” Bartanen noted. “We are going to paint it to show the various steels used in this car and prepare it for display at the SEMA show.”

The ninth generation Accord, which also contains Forward Collision Warning and Lane Departure Warning technologies, officially debuted at dealerships across the U.S. on September 19 at a base price of $21,680 plus destination charge.

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Matrix Electronic Measuring, Inc. Awarded Two Patents

Matrix Electronic Measuring Inc., a developer of advanced measuring devices for the automotive collision repair industry, has obtained two patents for its new vehicle measurement system called the Matrix Wand.

Rob Bailey, director of sales engineering and business development for Matrix Electronic Measuring Inc., details how the Matrix Wand adds efficiency and quality to shop estimating procedures. Watch now » The Matrix Wand is a handheld vehicle measurement device used for estimating structural collision damage.

The tool, which was publicly launched in April, uses two cameras that capture three-dimensional images of vehicle damage. Estimators can use the images to measure all damage on a vehicle’s body and engine components, reveal hidden damage, verify repair quality and enable predictive wheel alignment.

Matrix has been awarded two patents for the measurement system and method, which was developed by Guidelight Business Solutions, a global business and enterprise application development company based in Austin, Texas. Matrix has two more patents pending on the tool, which the company expects to be awarded soon.

With ownership of the patents, Guidelight said Matrix will be able to reduce the number of competitors in the market and obtain revenue from licensing.

“The patented innovations Guidelight has developed for Matrix pushes the Matrix Wand to the forefront of the burgeoning marketing of vision systems and augmented reality,” said George Stevens, CEO of Guidelight.

For more information about the Matrix Wand, visit thematrixwand.com.

22 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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American Honda Launches ProFirst Shop Recognition Program

American Honda Motor Co, Inc. announced the launch of the ProFirst body shop recognition program on Oct. 15. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete, and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction.

To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated ICAR Gold Class Professionals® business, and have at least one person presently employed by the shop who has completed the I-CAR course, Collision Repair for Honda and Acura Vehicles (HON01).

“CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers, said Bill Lopez, Director of OEM Program Development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs.”

Lopez added, “CollisionLink also helps to increase efficiencies and parts

ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers” John Van Alstyne, I-CAR CEO & President stated, “The ProFirst body shop recognition program, in conjunction with the I-CAR Gold Class Professionals designation, will align participating shops with a training program that is meant to elevate the customer experience and enable shop employees to work up to their full po-

tential.” Van Alstyne added, “Training and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.”

Qualifying shops will receive a handsome plaque, a place on the shoplocator tool on the recently-launched American Honda consumer web site, free access to the Honda and Acura parts catalog, parts bulletins, service and repair information, and more.

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Shops will benefit through increased recognition of the shop’s professionalism, increased opportunity to reach more customers and the promotion of customer confidence and loyalty.

To see full program details, go to profirst.honda.com or profirst.acura .com.

Each shop must enroll as a separate entity at its place of business as the ProFirst web site will manage the shop’s access to the parts catalogs and service information.

Jim Roach, Senior Vice President for American Honda’s Parts & Service Division noted, “We are pleased to be working with OEConnection and I-CAR for the ProFirst program. As the industry changes and automotive technology changes, we must make changes in our programs to keep pace. ProFirst, and our association with both OEConnection and ICAR, is a step in the right direction.

ProFirst is a win / win for all involved, especially for Honda and Acura owners.”

For more information on the I-CAR Gold Class Professionals® program, visit the I-CAR website (www.i-car.com) and click on “Collision Repair Gold Class Professionals® “ under the “Training and Recognition” tab.

Continued from Page 19

CCRE Seminar

cannot do, it is necessary to ask why or who says so. Erica stressed, “they can’t make you do anything because you don’t work for them.”

For the final segment, Tony introduced the Stump the Layers panel which consisted of Erica Eversman, John Parese and Kurt Lundgren. Responding to questions from the audience, the three attorneys and the seminar attendees discussed topics such as liens, total loss, consumer fraud, repair contracts, unfair claims, how to handle estimates, supplementals, court cases, invoices, short pay, explaining things to customers, codes of ethics and bringing claims. As he wrapped the event up, Tony explained that he wants everyone to understand that collision shops do not need to keep operating the way the insurance companies want them to. His goal is to show independent collision shops how to successfully operate their shops without outside influence by focusing on the legal aspects of running their business without insurer interference.

For more information contact: CCRE at theCCRE.com.

RAE is North America’s premier supplier of Wielander+Schill equipment, the most globally recognized name in collision repair with the most OEM approvals.

OEM approved systems and products are the “preferred choice” for use in collision repair because the system or products have already been pre-screened by the car manufacturer.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 25

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Honda Recalls 820,000 Civics, Pilots Over Headlight Problem

Honda recently expanded its March recall of vehicles with a low-beam headlight wiring issue to include 820,000 Civics and Pilots in North America, its second big expansion of a recall in recent days. “[A] potential failure with the wiring of the headlight switch ... may cause the low-beam headlights to become inoperative” in the model-year 2002-2003 Civic sedans and 2004-2005 Pilot sports utility vehicles that have been added to the recall, the carmaker said in a statement. Meanwhile, some 550,000 model-year 20022004 CR-Vs and 2003 Pilots were the vehicles named in the initial recall in March.

Honda said the low-beam problem could “increase the risk of a crash,” but stated that “no crashes or injuries have been reported related to this issue.” The company advised owners of the models in question to take their cars to authorized Honda dealers for inspection and replacement of components in the headlight wiring system if necessary.

Honda also recently expanded a May recall related to a leaky power steering hose to include 572,000 model-year 2003-2007 Accord V6 cars in the U.S., in addition to the 2007-2008 Acura TL models in the original recall.

High temperatures under the hood on those models can cause the power steering hose to crack and leak fluid that could cause smoke or even a fire. Honda said one engine fire had been reported but no reported accidents or injuries had occurred as a result of the problem.

The carmaker said owners of vehicles being recalled for the power steering hose issue wouldn't be able to have their cars fixed until early 2013 due to a shortage of parts.

The company said it began mailing customers about the lowbeam recall in late September.

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GM Recalls 41,000 Chevy, Pontiac and Saturns Over Fuel Leak

General Motors Co. is recalling about 41,000 Chevrolet, Pontiac and Saturn cars in the United States because of concerns that a defective plastic part might cause a fuel leak, according to the National Highway Traffic Safety Administration. GM’s latest move follows the company’s recall of 473,841 Chevrolet, Pontiac and Saturns in September to fix a condition that could lead the cars to move when the drivers think they are in park. Potentially, 40,859 vehicles sold in Arkansas, Arizona, California, Florida, Nevada, Oklahoma, or Texas could be affected in the latest recall.

Chrysler Halts Tests Plug-ins After Batteries Overheat

Chrysler Group LLC temporarily suspended testing of its fleet of advanced plug-in hybrid electric vehicles after three of the pickups were damaged when their prototype lithium-ion batteries overheated.

The trucks were unoccupied when the incidents occurred, and no one was injured. But the automaker will replace the batteries in the test vehicles with units that use a different chemistry.

“Hiccups happen. We’re disappointed, but it by no means spells the end of the program,” said Chrysler spokesman Eric Mayne.

The pickups are part of a fleet of 109 trucks being evaluated by the Auburn Hills automaker and a group of utility companies and municipalities across 20 states. It is part of a program jointly funded by Chrysler and the U.S. Department of Energy.

They include the first-ever factoryproduced vehicles capable of reverse power flow. The experimental system would allow fleet operators to use their plug-in hybrids to supply electricity for a building during a power outage, reduce power usage when electric rates are high or even sell electricity back to their utility company.

“You can link them all together and establish your own mini grid,” Mayne said.

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chevy Dealer Sells Car for Wrong Price, Buyer Arrested

A Virginia man spent four hours in jail after purchasing a Chevrolet Traverse from Priority Chevrolet in Chesapeake, VA. The dealer’s sales staff accidentally sold the SUV to Danny Sawyer for $5,600 less than they should have, and when Sawyer refused to sign a new, more expensive contract for the correct amount, the dealership called the local police alleging the buyer had stolen the vehicle. Law enforcement then picked Sawyer up and held him for four hours before getting the situation straight.

Dennis Ellmer, president of Priority Chevrolet, says he owes Sawyer an apology on behalf of the dealership, and had intended to do right by the buyer by letting him have the vehicle at the agreed-upon price. But Sawyer’s lawyer says it’s a little too late for saying sorry. The briefly-incarcerated owner has filed two lawsuits against the dealer, accusing the business of malicious prosecution, slander, defamation and abuse of process. All told, the suits seek a total of $2.2 million in damages, plus attorney fees. That $5,600 seems awfully cheap now.

GM Recalls Saturns

General Motors is recalling certain model year 2007-2010 Saturn Aura and model year 2008-2010 Chevrolet Malibu and Pontiac G6 vehicles, equipped with a 4-speed automatic transmission. On these vehicles, the tabs on the transmission shift cable end may fracture and separate.

If the tabs were to fracture and separate, the shift lever and the actual position of the transmission gear may not match. The driver would be able to move the shifter to PARK and remove the ignition key, but the transmission gear may not be in PARK. The vehicle may not be able to be restarted and the vehicle could roll away after the driver has exited the vehicle, resulting in a possible crash without prior warning. GM will notify owners, and dealers will install a retainer over the cable end or replace the shift cable as necessary. This service will be performed free of charge.

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November 2012 GM Recalling Some Sonics

General Motors is recalling certain model year 2013 Chevrolet Sonic vehicles manufactured from May 29, 2012, through August 29, 2012.

When a turn signal lamp fails to operate, the Body Control Module in these vehicles does not detect this condition and will not indicate the condition to the driver. These vehicles fail to conform to Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices, and Associated Equipment.”

If the driver is not aware that the turn signal is not functioning and does not have the light repaired, other drivers may not be alerted that the vehicle is turning, increasing the risk of a crash. GM will notify owners, and dealers will reprogram the BCM and the vehicle’s key fobs, free of charge.

The safety recall began on October 3, 2012.

Dodge Charger As All-Wheel Drive Enters Police Market

Chrysler Group is upping the ante in the battle for the police cruiser market, offering a new all-wheel-drive version of its Dodge Charger Pursuit sedan equipped with a powerful 5.7-liter HEMI V-8.

“Adding available all-wheel-drive capability to the already popular Dodge Charger Pursuit will broaden the Charger’s appeal to police departments that are accustomed to dealing with rough winters and adverse weather conditions,” said Peter Grady, vice president in charge of fleet operations for the Auburn Hills automaker.

“With the Charger Pursuit now offering dual capability of both rear- and all-wheel-drive, we’ll be able to meet the needs of our police fleet customers across the country.”

The all-wheel-drive version will be equipped with the same engine as the HEMI-powered rear-wheel-drive model that achieved the fastest-ever lap time at the 2012 Michigan State Police’s Vehicle Evaluation Test at Grattan Raceway in Michigan. The engine delivers 370 horsepower and 390 lb.-ft. of torque.

Chrysler Sales Up for Small and Mid-Sized Cars

Strong sales of small and mid-sized cars propelled Chrysler Group to its best September since 2007 and its 30th consecutive month of yearover-year sales gains.

The automaker sold 142,041 units last month, up 12% from September 2011.

Car sales rose 27% to 42,050, while sales of light trucks climbed 6% to 99,991.

Through September, Chrysler Group’s sales totaled 1,250,670, up 24%.

All of the automaker’s brands posted gains in September, with Ram recording the smallest gain at 4% and Fiat the largest at 51%. Chrysler said six of its vehicles had record September sales.

“With our current product lineup, record low interest rates and a stable U.S. economy, we remain optimistic about the health of the U.S. new vehicle sales industry and our position in it,” Reid Bigland, Chrysler’s head of U.S. sales, said in a statement.

The Dodge Avenger recorded the largest gain last month, up 89% to 8,716 units. Sales of the Fiat 500 also rose sharply, climbing 51%.

GM Will Hire 3,000 HP Workers to Bring Info Tech Work in-house General Motors said it will hire 3,000 Hewlett-Packard Co. employees as part of its ongoing effort to bring most information-technology work back in-house.

The hiring will be part of a new multi-year software and services agreement between the two companies. GM described the deal as “costneutral,” but it did not provide any additional details on the size or length of the contract or where the workers will be located.

The employees being hired already work on GM’s business at HP and are expected to be on GM’s payroll within six months. An undisclosed number of HP employees currently assigned to GM are not affected, the companies said.

“These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations,” Randy Mott, GM’s chief information officer, said in the statement.

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VW Beetle Convertible to Get Platform Shared with Jetta, Golf The convertible version of the Volkswagen Beetle will get its debut at the Los Angeles auto show in late November, shortly before the car goes on sale in the United States. The launch of the 2013 VW Beetle convertible trails the arrival of the redesigned Beetle coupe by about a year in the U.S., where Volkswagen expects to gain a majority of sales. Both Beetles use VW’s PQ35 front-drive platform that is shared with the current Jetta and Golf. VW says the Beetle convertible’s folding cloth top can be raised or lowered in about 10 seconds. Safety equipment includes rollover bars concealed behind the back bench seat. If the car’s safety system senses a crash, the rollover bars are deployed.

U.S. Sales Up, GM & Ford Down

U.S. auto sales, led by Toyota, Kia, American Honda and Volkswagen, rose 13% last month as the annualized pace of sales accelerated to 14.9 million—the highest rate since March 2008. The overall results topped analysts’ expectations and signaled the auto industry is poised to continue overcoming mixed economic reports to finish the year on a strong note.

Maserati Recall: Brake Lights

Maserati is recalling almost 1,800 of its 2008-10 GranTurismo coupes and convertibles for what it calls a “deviation” in the manufacture of taillight assemblies. The assemblies’ bulbs, including those in the brake lights, may fail, the automaker informed the National Highway Traffic Safety Administration.

Maserati said it investigated after noticing a large number of warranty claims. The high-centered brake light, it noted, was not affected.

Toyota to Add 21 New Hybrids in Next Three Years

Toyota Motor Corp. is boosting its green vehicle lineup, with 21 new hybrids in the next three years, a new electric car later this year and a fuel cell vehicle by 2015. Japan’s top automaker outlined its green vehicle plans amid growing concerns about global warming and surging gas prices. Toyota will offer an electric compact called eQ, based on its iQ model, in Japan and the U.S. in December though the number of the vehicles made will be extremely limited —about 100. The fuel cell vehicle, which runs on hydrogen, will be offered from 2015.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 27

Inside Insurance

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

Clean Up Your Own House Before You Gripe About Someone Else’s with The Insurance Insider

“I wish I had a nickel for every time that happened.”

Yes, that’s an overly-used expression, but it applies to so many things. How rich would you be, for example, if you could charge a nickel toll for every worthless adjuster that walked through your door? I’m guessing that you are now imagining yourself as Bill Gates or Warren Buffett.

Well, if you’ve read any of my previous columns, you know that I am now going to give you the other side of that tollway coin. Yes, the one you just collected from one of my knowledgeable adjusters.

I personally believe adjusters are an underappreciated segment in this industry, especially as it relates to the perception of the body shop. More often than not, the lowly adjuster is viewed solely as a gate-keeper, standing between you and the pot of gold that insurance companies report making each year.

Truthfully speaking, we realize our house isn’t always in order in terms of adjusters, which is the reason we spend so much time, money and effort to train, develop and retain staff.

Although you may view our efforts as pathetic or perhaps only “window dressing,” we view your industry’s corresponding efforts as non-existent.

Think about it: While we may not always do an exceptional job, the person most impacted by our lack of experienced adjusters is our own company. The cost of an inaccurate insurance estimate theoretically doesn’t cost your business money, provided you don’t assume the insurance esti-

mate is 100 percent accurate. Most shops will use the insurance estimate as a baseline and make adjustments.

Other more independent thinking shops will refuse to use it at all and write their own instead. So the biggest cost to a shop from an inexperienced insurance adjuster is probably the price of perception: If the adjuster doesn’t prepare a thorough estimate and there is a large supplement, the consumer may question the shop’s integrity.

I don’t want to undermine the price you have to pay for our inexperienced adjusters, but the price we pay for YOUR inexperienced “adjusters” can’t be measured. There’s a financial cost as well as the tremendous negative impact it has to CSI results.

We realize our house isn’t in order, but have you seen the mess in yours? Adjusters may seem like easy targets as shops lash out against insurers. I guess to some extent it’s understandable. I would be frustrated too if I was continually arguing why I needed time to do a specific labor operation. But before you throw a stone at the window of our house, take a look inside yours. I can see inside and you are in dire need of Martha Stewart, Better Homes and Gardens and a Bob Villa make-over.

The topic of inexperience or poorly-trained shop “adjusters” is one I’ve never seen discussed in any trade magazine or at any industry even. I’m not sure why. Maybe because writing a proper estimate, speaking professionally to a customer, and handling a claim from start-to-finish is consid-

Tennessee Collision Repair Tech Students Get Car Club Scholarship

The Wheels N Motion Car Club of Tullahoma, TN, recently awarded the Collision Repair Technology program at Tennessee Technology Center Shelbyville a $1000 scholarship, which will be given to two students.

Pictured are members of the club with the students who will receive the scholarship and their Instructor, Richard Talley.

(left to right): Richard Talley - Instructor, Nathan Hill - student, Scott Clark - student, Chris Hill - club member, Ken Preston - club member, Allen Perry - club member

28 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

ered Body Shop Estimating 101. To put it in school terms, it’s a prerequisite to do the job. If you classify yourself as a shop estimator, you can do all of those things. right?

Wrong. Similar to our adjusters, shop “adjusters” come in all shapes and sizes. Finding someone that has that trifecta of shop estimating skills is as rare as a Buffalo Nickel. If you have one, consider yourself lucky. I know how difficult it is. That’s why we insurers invest so heavily in training. (Please hold your laughter. Yes, we do invest a lot.)

I apologize for being cynical, but I wonder why shops spend so little time training their adjusters. Is it advantageous to have an inexperienced person writing estimates? Assuming that there is no financial gain, the lack of attention to the details of customer service is reprehensible in a day and age where customer service is a huge priority in any business. Your inexpe-

rienced adjusters hurt our business and the performance of your shop.

I can assure you that a shop with outstanding KPIs (key performance indicators) is usually the direct result of a high-quality shop “adjuster.” Poor performing shops are usually rife with inexperienced adjusters, high turnover and a lack of employee ownership of the customer experience and operational results.

Insurers are inherently process oriented. We can’t understand why shops have no problem seeing our dirty laundry but can’t see the clothes on the floor of their house that they just tripped over.

Please train your people and audit your staff like we do. If you do, all three of us win.

Got a comment or question you’d like to see the Insider address in a future column? Email him at Auto.Insurance.Insider@gmail.com.

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AAIA Expresses Support for WTO Actions on China

The Automotive Aftermarket Industry Association (AAIA) says it welcomes a thorough and objective World Trade Organization (WTO) review of the export subsidies China allegedly provides to its auto parts manufacturers.

Responding to the announcement by U.S. Trade Representative Ron Kirk that the United States has requested dispute settlement consultations with the Government of China at the WTO concerning China’s auto and auto parts “export base” subsidy program, AAIA reiterated its support for the U.S. government’s efforts to confront foreign trade distorting measures, while encouraging the USTR to recognize the increasingly globally integrated nature of the automotive aftermarket and the potential for unintended consequences to a significant sector of the U.S. economy.

“AAIA is committed to fairness in the international trading system and supports efforts to ensure that WTO members abide by their commitments,” said Kathleen Schmatz, AAIA president and CEO. “[We hope] to avoid a prolonged arbitration and appeal process and potential Chinese retaliation aimed at the U.S. automotive aftermarket,” she added.

Advance Auto Parts Helps Raise $2M for Charities

Advance Auto Parts, a leading retailer of automotive aftermarket parts, accessories, batteries, and maintenance items, announced that the company and its vendor partners raised $2 million for four charities at its recent inaugural charity Pro-Am tournament.

Proceeds from the Pro-Am benefited JDRF, the American Cancer Society, Boys & Girls Clubs of America and Building Homes for Heroes. Celebrity teams from the PGA Tour and entertainment industry golfed with vendor sponsors, with each team competing for a share of the $2 million purse.

“I am extremely proud of the impact our vendors have made and the commitment they have shown to supporting Advance’s charitable efforts.

It’s been a humbling and inspirational experience to witness our vendors, team members and communities come together in support of these wonderful organizations,” said Darren Jackson, President and CEO. “I am extremely proud of the impact our vendors have made and the commitment they have shown to supporting Advance’s charitable efforts,” said Charles Tyson, Senior Vice President, Merchandising and Marketing.

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AkzoNobel has signed an agreement to supply advanced paint technology to McLaren Automotive, building on the success of the existing corporate partnership with the Vodafone McLaren Mercedes (VMM) Formula 1 team.

Through its Sikkens automotive brand, AkzoNobel has been the official supplier of paint solutions to VMM since 2008. The new agreement now extends this relationship to include road cars and will see the company offer technology-led paint solutions for the MP412C and MP4-12C Spider, as well as the P1 when it enters production.

“We’re proud to have been selected to supply paint for McLaren’s road cars,” said Keith Nichols, AkzoNobel’s CFO. “The extension of our technology partnership to include road cars confirms that our color excellence and advanced coatings meet the most stringent customer requirements. Whether we are perfecting a particular finish or meeting the need for fewer layers of paint, offering a competitive advantage and building strong relationships such as this are vital for our business. We therefore look forward to an ongoing and mutually beneficial cooperation with McLaren.”

ATI Expands Curriculum to Include Collision Repair

Automotive Training Institute (ATI) has announced plans to expand its training curriculum and coaching system into the collision repair industry.

“For nearly 30 years, ATI has been helping thousands of automotive repair shop owners increase their profits, reduce stress and grow their businesses into the companies of their dreams,” said Chris “Chubby” Frederick. “We recognize that collision repair business owners can benefit from our experience and expertise in business training, coaching and consulting services to improve their businesses Tom McGee in this highly competitive market. We are extremely pleased to have Tom McGee, director of ATI Collision, join the ATI team to lead the development and introduction of the ATI Collision program.”

McGee brings more than 30 years of experience in the collision industry to the ATI team.

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Social Media for Shops

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

The Original Social Media, and Most Important, is the Phone Call with Ed Attanasio

While thinking through some social media topics recently I realized that the original and still current champion of real social media is the simple phone call.

In the past several years, I’ve called literally hundreds of body shops, vendors and collision-related businesses over the phone to interview them for articles I write for Autobody News. And every time I encounter a strange phone experience when calling a body shop I’m surprised. In any business, the phone is usually the first contact you’re going to be making with the public, and that’s why it’s so important. And in the collision industry it’s even more crucial.

Think about it. Your potential customer gets in an accident. They get three or four names of body shops in their area from their insurer and they start calling them. If they’re left on hold or the person answering the phone is rude or inattentive, many people will simply hang up and call the next shop on their list. So the big question is—do you give good phone or are you currently losing business by falling short in this important area of customer service?

Although e-mail and text messaging have become more popular ways of communication, we still use our telephones almost constantly for both personal and business reasons. It seems that good telephone manners are common sense, but my recent experiences have led me to believe that there are many lessons to be learned by body shops in the arena of telephone etiquette.

The topic of phone protocol and how some body shops don’t seem to value the importance of it became more apparent recently when I was calling a body shop to interview the owner for an upcoming ABN article.

First, the phone rang at least 12 times before someone picked up. Okay, I’m thinking, they’re a busy shop, no problem. It happens.

Then, I heard a voice, but for just a millisecond. “Hold.” It made me feel like I was ordering a pizza for delivery. Without a simple “hello” or “I’m really busy, can I get back to you in just a minute?” I sat on hold for at

least five minutes, and then the call went directly to voicemail (or in this case, I call it “voice jail’) without any explanation. No greeting, just a beep.

So, I hung up and called back so that the painful process could resume all over again. This second time, the woman answering the phone shouted out “Bill’s.” Not “Bill’s Collision,” which is the actual name of the business.

But at least this time around we had a brief conversation. I could hear her chewing gum and her indifference to my inquiry was immediately evident. “Is Bill there?” I asked. “No,” she replied. “Do you know when he’ll be returning?” After a long sigh, she said, “No idea. Do you want his voicemail?” Been there, done that, I thought. “We’re really busy right now,” she added. And without any further warning—boom, I was back on hold.

At that point, I hung up once more and decided to try again later.

But each time I called, I got the same person and each time she seemed even more bored than the time before. I could almost hear her eyes rolling!

The other call I hate is the one where the receptionist grills you and after a series of questions you might be allowed talk to the boss. I can understand, because most body shops receive 10-15 sales calls every day, so screening out the wannabes is crucial and a good phone person is adept at it.

But, when you feel like they’re interrogating you in the process, that’s bad phone protocol. Hey, I’m not trying to reach Obama, it’s a body shop owner—so why are you making me feel like I’m the paparazzi chasing your boss down? It’s all about the way things are said and when a receptionist gets too protective of his/her boss, it’s a real turn-off.

So, how should body shop employees act on the phone? I asked an expert on the subject. Her name is Cynthia Grosso, a business consultant, etiquette coach and author of the owner of the Charleston School of Protocol and Etiquette in Charleston, SC. She gave me a very simple list of do’s and don’ts about phone manners: ● Never call someone “Honey,

30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sweetie, or darling” on the phone, especially if you don’t know them. It’s too personal and unprofessional. ● Be conscious of the tone of your voice, especially when you answer the phone. (If you’re having a bad day, please keep it to yourself.) ● Be sure to identify yourself immediately when the person you are calling answers. Dead air will kill a call every time. ● If you happen to be screening calls, do it gracefully without acting like a bodyguard and offending the person who is calling. ● Do not eat while talking on the phone. That’s why lunch breaks were invented. ● Always return phone calls. Make a point to find the time. It only takes a few seconds to call someone back or to send an email explaining that you will call them back when you are available. Not returning a phone call is the worst offense and inexcusable.

The rule on returning phone calls is within 24 hours and the standard for emails is 48 hours for a return response.

“Phone communication is all about finding a common language,” Rosso explained. “Everyone wants to feel important, and keeping that in mind is key to any successful phone interaction from a customer perspective. Don’t leave people on hold for more than 30 seconds without checking in. And remember this—the telephone is your front other door and an extremely valuable component of how to run your business.”

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CCC Releases 2012 Crash Course Report

CCC Information Services Inc. has announced the availability of the Autumn update to its 2012 Crash Course Report. The report, which looks at the key drivers and trends impacting the automotive claims and collision repair industries, has updated analysis and projections on the topics with greatest impact on the repair and auto insurance market, including the total cost of repair, loss costs, and total loss frequency.

“As we look at the first half of 2012, many of the trends and business drivers impacting the industry have remained steady,” said Susanna Gotsch, Lead Analyst for CCC Information Services. “One area we continue to watch closely is the affect the aging vehicle population will have on insurers and repairers. Vehicles aged seven years or older have the greatest likelihood of being totaled. At midyear 2012, 47% of vehicles on the road meet that criteria, driving total loss frequency up overall, which we expect to continue into 2013.” To see information on the macro and micro trends, including vehicle sales statistics and accident and claim frequency, go to cccis.com, Property and Perspectives link.

CARSTAR Recognizes Outstanding Performers

CARSTAR has announced the recipients of the Financial Focus Groups Outstanding Performance honors among its U.S. CARSTAR stores and franchisees. CARSTAR CEO David Byers recognized the winners on stage during the annual CARSTAR conference in San Antonio.

In the category for top Financial Focus Groups, four CARSTAR stores were honored for showing the most improvement in sales, margins and EBIDTA categories. ● Group 1’s top performer was C & H CARSTAR Collision in Fairborn, OH, owned by Ed Collins. ● In Group 2, for the 2nd consecutive year the top performer was Marshall’s Autobody CARSTAR in Billerica, MA, owned by Jim Marshall. ● Taking the honors in Group 3 was Gapsch’s CARSTAR Collision Center in St. Louis, Mo., owned by Lisa Rush. ● Group 4’s top performer was George’s CARSTAR Body Shop in Chicago, IL, owned by Brian Benakos.

“These owners have become role models for the entire CARSTAR family,” said Byers.

Education Foundation Gets 70 Makeover Applications

The Collision Repair Education Foundation recently announced that 70 schools from 31 U.S. states applied to receive its 2012 Ultimate Collision Education Makeover $50,000 school grant.

One secondary and one postsecondary collision repair school will be selected for this year’s grant. The two winning schools will be announced at the Education Foundation’s industry reception during the 2012 SEMA Show in Las Vegas. The reception is scheduled for Oct. 30 at 9:30 p.m. at the Las Vegas Hotel.

“I would like to congratulate these Makeover applicant schools for taking the time to complete the application. The Education Foundation will work to see that all of the applicant schools will benefit from this grant,” said Clark Plucinski, executive director of the Education Foundation.

“As the Education Foundation now has the itemized $50,000 wish lists for all of these collision programs, we can reach out to our industry partners and work to have those items donated.”

Industry organizations interested in helping should contact Brandon Eckenrode, at brandon.eckenrode@ed-foundation.org.

Don Porter Joins United Recyclers Group (URG)

Insurance industry veteran Don Porter has been named the new Director of Operations/Business Development for the United Recyclers Group (URG), after a long career at State Farm Insurance. Don most recently served as a Property and Casualty Claim Consultant at the company’s corporate office in Bloomington, IL. “The wealth of auto recycling industry experience that Don Porter brings to URG is very impressive,” says Michelle Alexander, executive director at URG. “With 34 years in the insurance industry and a broad range of professional involvement in various industry organizations, including URG, Don is perfectly suited to helping us take URG to the next level. Initially, he is going to focus on the growth of our salvage auction program. Don is also going to work in other industry segments to identify growth opportunities and build existing relationships that will benefit URG members.”

“We want URG to become the brand name nationwide for anyone who wants to buy recycled auto parts,” said Porter.

He can be reached by cell phone (309-310-6448) or by e-mail (dporter@u-r-g.com).

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 31

Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends A NACE panel of three representatives from top auto insurers discussed industry consolidation, technology and future trends during the Collision Industry Forum insurance panel discussion Oct. 12. Speaking on a panel moderated by Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, the insurers responded to the noticable consolidation trend affecting both repairers and insurers, specifically the growth of several MSOs such as The Boyd Group, ABRA, CARSTAR, Service King and Caliber Collision—but also that of smaller regional MSOs. “MSOs that can replicate quality procedures are attractive as a group,” George Avery of State Farm said.

“Using a score card to rate MSOs across the board represents an interesting opportunity. But just like independent shops, they must perform to stay on our system.”

Avery said that any MSOs on their DRPs are measured as individual shops and must compete to perform on that basis. He recalled State Farms’s experience with M2, the 27-shop consolidator in California that closed abruptly back in 2005, reinforced his company’s interest in finding top-performing individual shops, whether stand-alone or part of an MSO. “State Farm maintains that whether you are an independent or an MSO, you should be able to compete, and so State Farm evaluates even MSOs as individual repairers,” Avery said. “I’m not discounting [the MSOs’] ability, but I am saying that those with individual repair facilities have skin in the game, and that can have a lot of value on the customer service side, which we’re all after.”

Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) on (the direct repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.”

Randy Hansen of Allstate also said each facility on his company’s DRP, even if part of an MSO, has to stand on its own performance.

But the three acknowledged that MSOs can offer some appealing services such as call centers, extended

Insurance Representatives on panel (l to r): Moderator Dan Stander, State Farm’s George Avery, Nationwide’s Rob Knott, and Allstate’s Randy Hansen.

hours and a single point-of-contact.

Hanson said the collision repair industry suffers from a “tremendous amount of inefficiency” that consolidation alone cannot cure. Instead, shops should consider expanding their hours of operation or finding other ways to better utilize their facilities and equipment.

Consolidation in the insurance industry is likely to continue as companies seek to grow. “The only other way to grow is by taking another company’s customers,” Knott said, and those are costly acquisitions because acquiring a new customer is seven times more costly than retaining their own customer, he said.

Avery added that MSOs present an “interesting platform” in which to experiment with a change on a large but not national scale.

“You hear people talk about how the model is broken,” Avery said.

“There are components [of change] that could be perhaps introduced into an MSO that you couldn’t quite introduce companywide. So I feel compelled to tell you, not to make anyone nervous about MSOs taking over, but I do have to say that that is a place where you could possibly go and say, ‘Look, we’d like to try something different.’”

Avery suggested later in the discussion that attendees think like a young driver using her mobile device to find out what to do after a minor accident.

“What can we do together? Can we work together to offer her a 48-hour repair?” Avery asked. “You might say, ‘Yeah, if you quit making me take all these pictures and jump through these hoops.’ And I might say, ‘Okay, I’ll stop that.’ So as we look at the future, I’m leaning toward partnering and saying, look, that customer is going to leave us and go somewhere else. She is not going to tolerate inefficiency.”

Cloud Computing and Data Ownership Knott said technology changes so quickly that it’s hard for insurers and

32 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

repair shops to keep up. “Our customers are pushing insurance companies to evolve with technology and a challenge is how fast can we adopt new technology. But if we don’t change we will be left behind.”

Allstate has consolidated 100 legacy systems into one delivery platform, Hanson said. “It was tremendously complex and we spent hundreds of millions of dollars to implement it. We recently adopted cloud computing. It is very flexible and offers more applications and options."

With cloud computing convenience comes the more complex issue of data ownership.

“Cloud computing is great because it allows you to access your data

anywhere,” Knott said. “However, there is great concern over data ownership and who has access to the data.

Hanson said the issue of data ownership is clear to Allstate. “We view it as the customer’s data, not the shop’s or the insurance company’s. It is our obligation to keep it secure and protect it. State Farm is developing its own cloud and securing the data is one of the most important initiatives, according to Avery.

Advancing OEM technology is a trend that concerns repairers and insurers. Stander asked: ”If cars won’t be crashing into each other due to accident avoidance technology, what does that mean for repairers and insurers?”

Avery said that accident avoidance technology won’t be fully implemented for 15 to 20 years. “With or without that technology, we need to figure out a way to help our customers in the future. Customers will not tolerate inefficiency. They will find what they want with or without us.”

Hanson said the new OEM technology has the potential to change the way insurers do business, but it’s not clear what those changes will be.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 33

On Creative Marketing

The New Co-Op Marketing with Thomas Franklin

In the early ‘90s, the term “Piggy- rental company, transmission repair back marketing” meant that the trial of shop, personal liability attorney or car a new product on the market was wash. linked to another product that already As valuable as these relationships had wide acceptance in the marketmay be, often a few major shops have place. The intent was that this weaker most of the best relationships in an new product would be “piggy- area locked up so that many other backed” on the strength of the “carshops are out looking for business the rier” product. Soon the practice was hard way. For them, it may be time to Strom expanded so thatwith many Dick products were engage in some creative thinking “piggy-backed” on products already about other possible “piggy-back” or being used. You see this all the time co-operative arrangements. Even when you receive a credit card bill or though the SEMA Show in Las Vegas gasoline credit card bill and find of- is becoming a major gathering place fers inside to buy a wide range of for collision repair professionals, few products. You know this must be a shops have yet to take advantage of successful strategy because it has con- the vast accessory marketplace. Dealtinued on so long. erships, of course, have entire accesThe question is how can a fixed sory showrooms and enjoy a service like collision repair, use substantial profit flow from accessory “piggy-backing” to increase sales and sales. But few shops can afford to inwith Lee guru Amaradio Jr.in a similar showroom, and only business volume?

Marketing Jay vest Abraham, in his great book Getting a few push for add-on accessory sales.

Everything You Can Out of All You’ve An obvious “piggy-back” relationship Got, calls this a “host-beneficiary” re- would be with one or more accessory lationship. Greatly simplified, it’s sort stores in the area. But less obvious are of a co-operative marketing plan other retail establishments that offer whereby two (or more) companies audio-video products or cosmetic elethat are non-competitive but possibly ments that car owners should find atcomplement one another’s products or tractive. Some printers now offer services, can either bring customers wraps for cars. Since vision is imporand sales to one another’s businesses, tant for safe driving, an optometrist or bring some other value. might be interested in a co-op referral Collision repair facilities engage arrangement. with Sheila Loftus in this kind of relationship all the time, A common arrangement is cash but probably don’t think of it in those for referrals—especially with a towterms. DRP relationships are the best ing company or new and used car example. Insurance companies send dealership. But this is mainly a onecustomers to the shop. The value they way street and can be very expensive. receive in return mainly consists of The ideal co-op arrangement is one lower labor and parts and materials where the shop also refers business to costs. Dealership relationships and its co-operative partner. The easiest fleet management company relation- way to do this is through promotional ships operate similarly. Some shops programs. Obviously website links also have a more direct exchange re- and other web-based connections are lationship with a towing firm, pin- easy to arrange, but if a shop also striping and graphics service,Chaney car sends out a newsletter or sends sumwith Janet

Opinions Count

Action Counts

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

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

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

maries of completed work with enclosures there is an opportunity to refer many other kinds of businesses, much as your credit card companies do. If a referring business also has on-line and/or mail promotions, the arrangement would have your shop information (or even literature) included with theirs.

Mailing a summary of completed work after a vehicle has been delivered is a very inexpensive way to establish a longer-term relationship with customers. If a vehicle owner resells or trades-in the vehicle, having a summary of work done on the vehicle may help keep the purchase price higher. Along with sending the summary, a promotional offer for a discounted detail or cosmetic improvement should be included, plus perhaps a specified discount for a friend, family member or business associate in need of vehicle body repair. For a shop with deeper pockets,

sending a before and after photo along with the summary would be appreciated.

A more in-depth approach to the co-op referral partnership can extend to events, educational seminars or workshops and more. Driving schools would be a good candidate for this.

New drivers are brought to the shop for a walk-through to see the damage that may have been done to vehicles because of careless or reckless driving.

And if the driving school has a weekly or monthly group presentation, the shop should always have someone there to answer questions. Many shops now do exchange events with insurance agents and auto dealerships, but this should only be a beginning. The possibilities of piggybacking on the success of other businesses and entering into cooperative promotional schemes will only be limited by the imagination and ingenuity of a shop owner or manager.

Your Turn

Shop Showcase

PartsTrader Reduces Minimum Quote Time to 30 mins

PartsTrader announced that in two of the four markets where the system is being used, the minimum time a shop can give vendors to quote prices on parts has been reduced to 30 minutes, rather than the previous one-hour minimum. The change is designed to improve the efficiency of using the system for shops, the company said.

Suppliers can still quote prices in “overtime” but only until the shop begins review of submitted quotes. The system also allows the shop to extend the deadline in 30-minute increments if they wish to receive more quotes, or to use “placeholder quotes” for OEM dealers with which they have established relationships.

Industry Overview with Janet Chaney

34 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Prestige Auto Body Custom Builds Unique Bra Bank to Benefit NH Women with Breast Cancer At The Mall of New Hampshire, a sculpture of a large bust will be the centerpiece of a month-long fundraiser for the New Hampshire Breast Cancer Coalition. The one–of-a-kind Bra

Prestige Auto Body created this one-of-a-kind 10-ft-tall pink ribbon sculpture to promote donations to help New Hampshire women battling breast cancer. All proceeds will go to the New Hampshire Breast Cancer Coalition

Bank was custom built by Prestige Auto Body.

The larger-than-life Bust Bra Bank will collect donations to help New Hampshire women and families who are battling breast cancer. All proceeds will go to the New Hampshire Breast Cancer Coalition.

In addition to the oversize “Bust Bra Bank,” in which visitors can put donations, there will be a red carpet area where anyone can purchase a bra for $1.

A message to honor breast cancer survivors or those who have lost their battle with the disease can be written on the bra and then placed onto a fabricated wall that will be on display throughout October.

Prestige Auto Body and owner David Ludwig created the 10-foot-tall pink ribbon sculpture for the 2010 and 2011 “Bras Across The River” event held on the Bridge Street Bridge.

The display will be up through Oct. 27.

www.autobodynews.com CHECK IT OUT!

White Mountains Ins. Sues Allstate over Esurance Sale

White Mountains Insurance Group has filed a federal lawsuit against Allstate over the 2011 sale of Esurance alleging that Allstate inappropriately lowered the final purchase price. The suit alleges that Allstate delayed by five months an audit required in the terms of the sale until after Esurance spent $5.2 million to settle unrelated litigation, thus reducing the final value of Esurance for which Allstate paid White Mountain. Following an investigation by the attorney general’s office in Massachusetts, about 2,500 drivers with clean records who had their policies unfairly terminated

by Metropolitan Property and Casualty Insurance Company will receive restitution averaging $124 for having to switch insurers; 56 policyholders will receive about $625 for having their policies improperly terminated and then being placed in the state’s insurance plan for those unable to get car insurance elsewhere. A November 19 hearing date has been set in one of Florida shop owner Ray Gunder’s lawsuits against State Farm; Gunder said he petitioned for the hearing because although State Farm last OctoGive us your opinion on ber paid him the underlying amount he sought in the suit, the insurer has not paid Gunder’s legal fees totaling $93,800.

At NACE 2008, CCC Information Services introduced the CCC ONE Total Repair Platform, its then brand new collision repair management system that is entirely Web based.

On Oct. 11, at NACE 2012, the company announced that it has now converted nearly 17,000 shops to the new platform. CCC said that, since its introduction, CCC ONE has been installed on more than 72,000 desktops, laptops, tablets, and smart phones.

AudaNet, the company’s nextgeneration claims management platform will enable a range of updated and new products.

“AudaNet represents the new frontier in innovation and intelligence for automotive claims and collision repair, and we’re very proud to bring the platform to North America starting with its preview at NACE,” said Wolfgang Ahrens, Managing Director, Audatex U.S. “From a highimpact mobile focus to our exclusive 3-D graphics and advanced vehicle identification, AudaNet Xpert Estimating and our complete family of matters affecting theraising industry.

AudaNet solutions are the bar for collision repair shops and insurers alike,” added Ahrens.

write us!

State Farm Hit With Class Action Alleging Short Claims

Autobody News Website

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Mitchell Adds New Insurance Client, Affirmative, to Roster

publisher@autobodynews.com

State Farm was hit with a class action lawsuit alleging the insurer routinely short-changes claimants on To advertise The source for timely the diminished value of their vehicall Advertising Sales at: information every cles by using a deceptivethat and unfair 800-699-8251 methodology. body shop needs!

A trio of Georgia consumers e-mail: claim that State Farm’s methodology advertising@autobodynews.com CALL 800-699-8251 for calculating a vehicle’s diminTHESEwww.autobodynews.com DEALERS ARE GENUINE ished value dramatically Start YourunderestiFREE WHOLESALE PARTS SPECIALISTS. mates the actual loss of value and Mail Subscription. results in underpayments estimated to exceed $1,000 per claim. The socalled “17c” methodology State AL ABAMA Farm relies on, the suit contends, is See the NEW based on 10 percent of the vehicle’s NADA value, to which multiple disPalmers Toyota counts are applied.

The suit further contends that at MOBILE www.autobodynews.com a minimum, 15 to 25 percent of the NADA value should be the starting point. “This methodology is inher800-475-9091 Fax ently unfair, grossly undervalues the Mon. - Fri. 7:30am - 6pm; amount of any diminished value sustained by a motor vehicle that has Sat. 8am - 4pm been damaged in a collision, and is wnettles@palmersairporttoyota.com deliberately utilized by (State Farm) www.palmersairporttoyota.com to minimize the amount of any diTo advertise minished value payment they are recall Sean Hartman at: quired by Georgia law to make,” the 800-699-8251 lawsuit states.

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CCC Says it Has Converted 17,000 Shops to new CCC ONE

During NACE 2012 Mitchell International, who has been offering cloud-based claims management for several years, announced that they have won a new insurance client, AfTo advertise firmative Insurance Services, Inc. at: call Joe Momber Under the terms of the multi800-699-8251 year agreement, Affirmative will implement Mitchell’s e-mail: WorkCenter Assignment, Appraisal, Total Loss, jmomber@autobodynews.co Review and Reporting solutions. www.autobodynews.com “Affirmative’s decision to join the Mitchell family of customers is further validation of the strength of our WorkCenter physical damage platform and our reputation for personalized service,” said Scott Register Your Em Kozak, Senior Vice President, Sales and Service at Mitchell International.

Mitchell WorkCenter is an open, modular, claims settlement solution at www.autobod able to power the physical damage claims process from dispatch to appraisal, total loss, review and reporting.

Affirmative Insurance Services, Inc. (AISI), a subsidiary of Affirmative Insurance Holdings, Inc. (AIHI), handles the marketing, policy administration, claim and actuarial functions for certain insurance carriers through its two processing centers in Dallas and Chicago.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 35

Industry Insight

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

Contact him by email at jyoswick@SpiritOne.com.

NACE Keynote Speech Focuses on Thinking about Business with John Yoswick

During his keynote address at the 2012 thing else to occupy our time besides International Autobody Congress & thinking, we’ll generally be doing it.

Exposition (NACE) in New Orelans, My observation is that about 90 perLA, last month,with former EdCARSTAR Attanasiocent of the time, most of the CEOs in CEO Dick Cross offered his corollary the United States are doing things that to a Mahatma Gandhi quote by telling have nothing to do with this job at the a crowd of 800 attendees, “A business top. But thinking helps you understand is but the product of the CEO’s what the possibilities of your business thoughts. What she thinks, it becomes.” could be, and helps you to understand It’s a concept NACE organizers generally how to make it happen.” themselves may with need toEd keep in mind He offered several “big picture” Attanasio as they acknowledged that while this ways that CEOs should think about year’s show offered “some big wins,” the business. For example, he said that it also was down slightly in terms of businesses are like products in that both exhibitors and attendees. they have a lifecycle; they begin with an idea, an embryo, and then some go on to grow and mature. Whether they Twenty minutes, three times a week Cross kicked off the event by saying go on to continued success or wither that although the business successes and die, Cross said, is often up to the that he’s had that were cited in his in- person at the top, who can either get troduction are true, his career has not complacent and coast—usually leading to the company’s demise—or who been a “charmed path.”

“I have probably over two-and-a- can restart the cycle by finding a new set of customers for the business or by half decades made every business mistake that everyone in this audiences finding other ways to serve the needs has made, and maybe even some of of existing customers.

Cross said good CEOs also recthem that you would never make,” Cross said. “Unintentionally, I have ognize the difference between leadermade decisions that have hurt business ship and management. Leadership, he performance. I have failed to create said, sets in front of others very enticing goals and helps make them want circumstances that would allow everyone to make their contribution to the to help achieve those things. Managecause. I have terminated people that I ment is only about assembling the rehave wondered in the aftermath sources needed to execute on that whether it was the right thing to do. vision.

At CARSTAR, he cited as an exThere were times in my career when I hesitated to lay my job as CEO on the ample, he worked to help everyone in line, to stand my ground for what I the organization realize their purpose knew was right. But as painful as all wasn’t to just fix cars.

“The purpose of CARSTAR bethose things are to remember and think about, they are the things that drove came: We help people though a crisis in their lives,” Cross said. my obsession to understand and to beThe kind of thinking that makes come very good, at the job at the top.”

In addition to leading CARSTAR companies succeed, Cross said, can be from 2005–10, Cross has been brought accomplished by those at the top who in by private equity firms to run a half- set aside 20 minutes a day, three days a week, to tune out other day-to-day dozen other under-performing companies, and through his consulting firm, distractions and just think about the he said he’s helped more than 150 business.

“Running a business is not a fullother CEOs improve their company’s performance. He said one of the time job,” Cross said. “You probably biggest failings he sees among many spend most of your time doing other stuff, stuff that others ought to be business owners and CEOs is not regularly setting aside time to just think doing themselves rather than having you do it. But you can do a great job about the business.

“For most of us in this room, running your business 20 minutes, a thinking is the hardest work that we day three days a week, thinking about those things.” have to do,” he said. “If there’s any-

Shop Showcase

Show leaders offer their view Two years after shifting away from holding NACE in Las Vegas each fall, event organizers cited a number of

Social Media for Shops

36 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Dick Cross, former CEO of CARSTAR, presented concepts from his book, “Just Run It!” Copies on display sold out quickly

reasons attendance may have been down this year, from the still-slowlyrecovering economy to the New Or-

leans location, which has fewer shops than Orlando within an easy-to-drive distance.

“Attendance at all the key (show) events was up,” Lindsay Roberts of Hanley Wood, who manages the show for its sponsor, the Automotive Service Association, said just hours before the show closed. “We had some major players who hadn’t exhibited at the show for a while. We got some of the paint companies back. We got some of the OEMs back. But we are a little disappointed. Total attendance is going to be down. It’s pretty hard to compare to the Orlando last year where we up over 20 percent from the 2010 event.

We had really hoped we would see that growth through to this year. We’ll release final numbers probably within the next five to seven days. But we do think we’re going to be slightly down over last year.”

But Roberts chiefly cited a continued decline in the number of com-

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panies exhibiting at the show, which is down about 17 percent from as recently as 2010.

“What we need is more product, more exhibitors on the show floor,” Roberts said. “We need to give attendees three days worth of product and people to network with. We need the executives from these major companies who were here walking the aisles to have booth space on the show floor and to support the show.”

She did say that more than 40 companies have already signed on for next year’s event, up one-third from the number who had signed contracts for this year’s show during the 2011 event.

But NACE organizers have also given themselves the added challenge of holding the 2013 event in Las Vegas next October 16–19—in the same city just two weeks before SEMA, which has been working to attract collision repair industry exhibitors and attendees.

That may have been one of the reasons NACE organizers took the unprecedented step of also announcing that two years from now NACE will again be on the east coast, returning to the city that hosted the very first NACE back in 1983: Nashville, TN.

NACE Sees Fewer People, But Quality Events Collision repair professionals from across North America came together recently at NACE in New Orleans, LA, to network, see the latest and greatest in equipment and products, and to contemplate a smaller but still high-quality event. Some 225 companies occupied 50,000 sq. ft. of exhibit space but attendees were fewer in number from last year’s Orlando venue.

“It was a great pleasure to have Dick Cross open the 30th Anniversary general session,” said Ron Pyle, ASA president. “He delivered a practical and easy-to-implement plan for success. I am sure everyone in attendance agrees that he was extremely motivational and an excellent choice to kick off this very special ASRW.”

Leadership and Management Tactics NACE began October 10 with a series of seminars and lectures regarding sales tactics and innovation of paint and materials, including The Art of the Deal—Acquiring and Developing New Locations; Marketing to Generations X and Y; and Paint and Materials: The Paradigm Shift.

The afternoon sessions saw a focus on leadership, delegation and customer management tactics, aimed at retaining and appeasing your staff and customers. Seminars included Leadership Best Practices—How to Inspire, Delegate and Coach Your Team to Success, by Mike Anderson;

Ron Pyle, ASA President and ASRW Chair

Calming and Retaining Angry Customers, by Margie Seyfer and Guilt

by Association—Defining Your Image,

by Tony Nethery. Kurt Lammon of Urethane Supply Company instructed viewers on how to properly weld plastic with nitrogen, while Dan Espersen of ALLDATA taught the best practical applications of OEM Information.

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Margie Seyfer presenting Calming and Retaining Angry Customers

I-CAR spokesmen Bob Zelano and Jeff Poole ran afternoon seminars on Corrosion Protection and Hazardous Materials, Personal Safety and Refinish Safety, respectively.

The first day of NACE was capped off with the Assembly, a confidential, closed-door forum for collision repairers.

Profit Building NACE continued with tutorials, demonstrations and information pertaining to every aspect of the collision repair industry. The exposition portion of the event also opened at 10:00 am, offering the latest products, services and technologies from industry leaders.

The Profit Building Pavilion portion of the exposition showcased

vendors with customer-driven products, such as Autoshop Solutions, Demandforce, Mudlick Mail Co. and Net Driven Media.

The morning of Oct. 10 saw several seminars headed by I-CAR. Bob Zelano ran a seminar on automotive foams and Tony Nethery instructed participants on proper measuring methods.

Educational highlights included I-CAR representative Shawn Collins’s workshop on Blueprinting Process and Damage Discovery, (BLU01); I-CAR’s Bob Zelano presenting the Steel Unitized Structures Technologies and Repair class and Bryan Dodge of Dodge Development’s presentation on balancing your work and life.

Blueprinting Process and Damage Discovery This new course provided an interactive training experience and was filled to capacity during both sessions. ICAR offered special premiere pricing for this course launch with a cost savings of $56 for standard pricing.

The new Live Demo course demonstrates I-CAR’s commitment to increased student interaction in the classroom and uses an actual vehicle to demonstrate technique while engaging students in the learning process.

Rich Southerland of Alldata attended the Thursday premiere of Blueprinting Process and Damage Discovery and stated, “This is the best I-CAR class I’ve attended. I couldn’t imagine how this would not benefit any tech or shop employee.”

The course led students beyond the disassembly of damaged parts to help them uncover hidden damage that can impact the repair process and provided a number of demonstrations, including quick checks and implementation tips. Students who attended the course gained an understanding of the definition of the blueprinting process and how the process can help improve repair quality through a standardized approach to collision repair planning.

The day wound down with the ASRW Welcome Party, sponsored

by CCC, was held at the iconic Mardi Gras World venue, basically a warehouse of larger than life characters

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 37

used on floats and in Mardi Gras themed events. Attendees were toured through the warehouse where Mardi Gras floats are manufactured, and ended up at the Grand Oaks Mansion next door where some excellent local dishes were offered.

NACE events on Oct. 11 ended with the ASRW Industry Awards ceremony completing the second day of NACE. The ceremony was held at the National World War Two museum.

The NACE conference continued on Oct. 11 with several I-CAR seminars, human resource tutorials and team development clinics. The ASRW Collision Forum also took place in the morning.

MSO Symposium The ten-and-a-half-hour MSO (Multi-store operators) Symposium hosted by Matthew Ohrnstein of Symphony Advisors took place Friday. The symposium spanned the duration of the NACE Friday schedule and was comprised of five panels that aimed to help multi-store business owners, many of whom take over failing operations in order to rejuvenate them, improve aspects of their businesses including culture,

branding, customer relations, leadership and finance.

The MSO Symposium also included networking opportunities for

Mike Anderson, CollisionAdvice.com spoke on Financial Best Practices

owners, and ended with a networking reception in the evening.

Shawn Collins held his second seminar on Blueprinting Process and Damage Discovery, while Bob Zelano taught the second Structural Straightening Steel seminar, both hosted by I-CAR. The seminars were add-on educational seminars available on both Thursday and Friday.

OEMs including General Motors, Toyota and Nissan all sponsored booths during the show, offering promotional giveaways and showcasing new products.

P.B.E Jobbers Warehouse Gives to Education Foundation

P.B.E. Jobbers Warehouse, a paint body and equipment wholesaler committed to customer service excellence through experience, teamwork and dedication, has donated $65,000 in products to three schools through the Collision Repair Education Foundation. The donation of these products greatly assist the collision instructors who continue to have their collision budgets reduced, and allows collision students to practice vehicle repairs with current materials. The three schools provided with the product donations, who were also 2011 Ultimate Collision Education Makeover grant applicant schools, include: Freedom High School (Freedom, Wis.), Kishwaukee College (Malta, Ill.), and Thornton Fractional Center for Science and Technology (Calumet City, Ill.).

“We’re very happy to be able to contribute to the future of our industry with this donation,” noted P.B.E. Jobbers Warehouse President Paul Monroe. “Hearing back from the schools about how much it was appreciated and how much it will help their pro-

grams made our donation even more worthwhile. We will continue to support the Collision Repair Education Foundation and help to educate more students to become a part of our industry.”

“We would like to thank P.B.E. Jobbers Warehouse for their great donation of paint products,” said Greg Brink, Kishwaukee College collision instructor. “There are many times that I would like to have my students spend more time practicing a task before we have them do it on a live vehicle. However, the budget doesn’t always allow the student to do that. With this donation, I will be able to have my students spray their practice front ends many times, so they can better develop their painting skills.”

“This first-time donation from P.B.E. Jobbers Warehouse to the Education Foundation will make an incredible difference with the recipient schools and their collision programs,” said Brandon Eckenrode, director of development for the Collision Repair Education Foundation.

38 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Expo Floor Some highlights from the on-floor demo area included exhibits from Innova Electronics Corp. on how their CarScan tools benefit shops and CAS of New England revealing The Truth About Programming in Today’s Vehicles.

Kaeser Compressors created an informative technical (not sales-oriented) presentation titled “Compressed Air Requirements for Waterborne Paints.” It was held October 10 to help repairers make practical choices for their shops.

Topics included: sources of moisture and contaminants, air system components that affect paints and finishes, the impact of air amplifiers and more.

Some workshops on Friday afternoon focused on the financial aspect of collision repair. Mike Anderson of CollisonAdvice.com spoke on measuring performance in Financial Best Practices. Dan Stander of FIX Auto Highland Ranch moderated The Keys to Successful Estimating! panel, in which data providers addressed audience questions.

Denise Caspersen of ASA and Melissa Miller of CARSTAR encouraged women to be courageous leaders in their seminar, one of several in the

Women’s Professional Development track of NACE. (See story this issue.)

Twenty 2.0 peer benchmarking A new-to-NACE-this-year, Twenty 2.0 peer benchmarking event was attended by about 20 repairers and ran on Friday afternoon hosted by keynote speaker Dick Cross.

Twenty 2.0 is/was a peer benchmarking/virtual 20 group concept, applicable to both mechanical service/repair and collision repair shop owners focused on doing “the job at the top.” The 90-minute session began with a half hour introductory session, followed by an hour-long breakout session. All participants had the opportunity to enroll in the formal (ongoing) Twenty 2.0 virtual 20 group at the conclusion of the session.

“Shop owners interested in obtaining the value of participating in a 20 group process with a non-traditional time or financial investment won’t want to miss this unique session,” said ASA president Ron Pyle in advance of the event. “We’ve taken the 20 group concept and upgraded it to the digital age. Participants who formally enroll will receive all the benefits of belonging to a 20 group, with a virtual twist.”

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Continued from Page 18

Parts Procedure

from happening, a sealed or primed surface will outperform an e-coated surface after impact by a large margin.

The last point I like to make is the surface prep. E-coat is a hard surface and sanding it can be a workout.

90% of shops will use a DA sander to prep the e-coated surface. If you don’t seal or prime the part, how do you know if you left enough e-coat behind for proper corrosion protection? Most e-coat layers are only 0.5 to 1 mil to start with. My observations suggest that 70% of all sanded e-coat surfaces display some level of transparency or bare metal surfaces. Unfortunately, I have seen people paint right over that too.

When asked why, the most frequent explanation I receive from shops that paint directly over e-coat is cycle time. Shops don’t feel that they can afford to give up the time to seal parts in the booth. While I appreciate the value of cycle time and booth hours, it is no excuse for painting directly over e-coat. Nobody says you have to do it as a part of your final

paint work, in a matter of fact, I strongly advice against it. I propose sealing parts ahead of time, ideally as part of the cut-in process. Put one good coat of sealer on the outside of the part, let it flash off to a point that you can safely turn them over and cutin the rest. All the shop has to do after hanging the part is giving the sealer a light scuff by hand for adhesion, clean and paint. This process allows the shop to maintain booth KPIs and put out a quality repair at the same time.

As an added bonus, you will also improve coverage and color match as well.

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New York Auto Body Owner Faces Felony Charges over State Police Vehicle Repairs An auto body and repair service owner in Bedford, NY, faces several criminal charges connected to the alleged fraudulent repair of state police vehicles. Police say Brian Prato, 55, of Bedford, was part of an insurance fraud in Brian Prato of which state police Bedford charged cars were repaired with grand larceny with used parts but and insurance fraud charged for new by NY State Police ones.

Prato was arrested on Oct. 4. The owner of B&B Auto Body was charged with five felonies and two misdemeanors. He faces grand larceny and insurance fraud charges brought by state and county investigators who allege they uncovered a scheme to defraud the state and the insurance company that covered state police vehicles. Police said an investigation showed Prato charged for new parts but installed used parts, including some from old cruisers no longer used.

According to state police,

“The investigation found that insurance companies were paying for new parts to be used in the repairs of the vehicles as written in estimates submitted by the auto body shops. Inspection of the vehicles showed that new parts were not installed as written in paperwork submitted to insurance companies; instead used parts were used for some of the repairs on three New York State Police vehicles. In some instances, parts were taken off retired New York State Police vehicles and were used for repairs.”

In addition to the fraud, police said the installation of old parts on the vehicles could have put the lives of troopers in jeopardy. Prosecutors charged Prato with third- and fourthdegree insurance fraud, fourth-degree grand larceny, attempted third-degree grand larceny, first-degree scheme to defraud, all felonies; and fifth-degree insurance fraud and attempted petty larceny, misdemeanors.

Prato was arraigned before Bedford Town Justice Erik P. Jacobsen, who set bail at $10,000. Prato posted bail and was ordered to return to court Oct. 25.

Kelley Blue Book: September Vehicle SAAR is 14.3M

September new-car sales will hit a 14.3 million seasonally adjusted annual rate (SAAR) in September, slightly down from the 14.5 million SAAR achieved in August, according to Kelley Blue Book, the leading provider of new car and used car information. This equates to an 8% year-over-year improvement, which is well below last month’s 20% yearover-year increase. Although September sales do not appear as strong as August, to grasp the full picture, the sales environment at this time last year must be considered.

This time last year Toyota and Honda were able to boost production and sales after several months of downtime following the earthquake and tsunami in Japan,” said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.

“Now that year-over-year figures are more comparable, annual gains will level out and remain between 7 to 10 % through year-end.”

Healthy consumer demand will continue to drive industry sales growth and is expected to account for nearly 85% of total sales volume in September. Rising sales throughout the year are due largely to pent-up demand from those that have delayed purchases because of economic uncertainty.

“The average vehicle on the road today is approximately 11 years old.

Those consumers that have delayed their purchase of a new vehicle during the past several years due to economic reasons are finally making the decision to trade-up to something new,” said Gutierrez. “As a vehicle ages beyond 10 years old, or has more than 100,000 miles on the odometer, rising maintenance costs and deteriorating reliability can become a serious headache. Drivers of older vehicles are keenly aware of this fact and many are opting to take advantage of the near zero percent finance offers on today’s more reliable and fuel-efficient vehicles to achieve peace of mind.”

Kelley Blue Book expects pickup trucks to be strong this month as domestic manufacturers introduce sales events. The 2012 Chevrolet Silverado is available for zero percent for 60 months or with as much as $3,500 in consumer cash. The 2012 Ford F-150 can be purchased with up to $5,500 in cash back, while the Ram 1500 is available with up to $4,000 in rebates.

Kelley Blue Book believes these deals, coupled with high inventory levels, will help increase truck share by as much as a full percentage point during the month.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 39

John Shoemaker Coaches Shops to ‘Negotiate for Success’

by Melanie Anderson

John Shoemaker of Virginia is an Air Force veteran with 23 years service in the automotive field as a technician, trainer and formal instructor, and with several additional years as a collision center director for a major dealership group, overseeing three collision centers in Virginia. Shoemaker is now a consultant with JSE, a company he created to share 35 years’ worth of automotive management experience to assist collision centers in improving operations.

During the 30th anniversary of NACE in New Orleans, LA, Shoemaker presented Negotiating for Success — a Look at the Negotiations Necessary to Keep Your Collision Center on Top. Negotiations, Shoemaker says, not only affect profits, but is important in preparing a contract or business deal. To negotiate successfully, several elements must be in place during the preliminary stage of a business deal. Those elements include establishing a set of core values, being honest and ethical, maintaining a standard that meets industry and customer expectations, delivering as agreed and responding to the customer’s needs. What is non-negotiable is making a profit.

Are you a negotiator? You can be if you are confident, focused, able to stay on track and be unemotional. A successful negotiator will know the objective before he or she begins, be able to define the main issues and can focus on them one at a time. Negotiations will go much smoother if a win-win is determined. Always have supporting documentation as back-up, which can include manufacturers specifications, a complete damage appraisal and structure measurements. The person with the most information usually wins, says Shoemaker.

One of the first steps to take when entering negotiations is identifying the appropriate person with whom to negotiate with. Develop a rapport with that person and determine their focus.

Finding a common ground will help you to capitalize on similarities and keep the conversation from getting confrontational. Verbal tone and body language is important. Keep your emotions in check.

It is important that you establish your repair standards up front. Have a complete damage appraisal prepared

and itemize each repair step required.

Document only the repairs required and isolate prior damage. List customer concerns.

Negotiating with Insurers When dealing with insurers, review the entire appraisal and make a note of the ‘no’s’ but keep moving. Go back to the ‘no’s’ after reviewing the complete appraisal. Negotiate the repair first, then

the labor, but do not negotiate your repair standard. Realize that you will not see eye-to-eye with an insurer. Their job is to negotiate the cost down because they have specific numbers to meet and they are protective of their bonuses.

Negotiating with Insurer DRPs One of the best things you can do when negotiating with a DRP insurer is to develop a friendship and a rapport with the insurance adjuster and get to know the insurer’s agents. You want to create a good reference by ensuring the adjuster’s experience is always good.

Promote your efficiencies and your customer service. But also make sure the adjuster knows what you want on their program. Agents are required to maintain training and this can be an opportunity for your shop to sponsor events. Having a manufacturer certification makes your facility more attractive to an insurer and helps establish credibility. Have space available for them to work. Use existing work to establish opportunity with the insurer.

Look at the number of non-DRP repairs performed for the insurer and provide insurer performance reports for those repairs. This cements your abilities and proves a need.

Negotiating with Vendors When negotiating with vendors, determine a retail rate for services, such as towing, alignments, and glass work.

With parts suppliers, explain your needs and cycle time mandates. Find out what they need to get the correct

40 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

part and incorporate electronic parts ordering. Give vendor complete order information to reduces parts errors.

Negotiate inventory levels by defining guidelines for out-of-stock parts and require them to search other dealers. Establish a process for parts returns and coordinate order cut-off times. Set a different time for each vendor. In addition, define the delivery process and specify that only complete orders are delivered. Identify inspection requirements and negotiate parts price differences. Parts price differences are the #1 cause of supplements, Shoemaker says, while insurance companies strive for zero supplements. Set a reasonable dollar amount for a price matching estimating system and establish guidelines for higher amounts. Set a performance measurement tool in place to manage system reporting; to track parts returns and delivery delays, to identify damaged or wrong parts and the frequency.

Negotiating with Paint Suppliers Explain your needs to the paint supplier. Define the paint level required

and the flexibility you need in your paint line. Understand their distribution capabilities and specify your delivery expectations.

Negotiating with the Vehicle Owner Determine your customer’s need, identify their concerns and communicate to the customer so they know you understand them. Work to resolve the situation, not to sell. Provide a solution, but make sure you understand the complete situation before answering too quickly. Be flexible. Educate the customer on repairs required and write a complete damage appraisal. Is a complete repair needed and will aftermarket parts fit their need? It is easier to remove items than to add items later.

Discuss a specific time for the repair and determine their transportation needs. In regards to payment, who is paying for the repair? Is it being processed through a third party? Is the customer aware of the deductible? Assist with claims processing and remember that vehicle owners don’t deal with this everyday. Help them to understand the process and be their advocate if necessary.

Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013: Esp. Financing and Suppliers

According to the 2012 Dykema Automotive Institute Survey, which was released on October 17th, automakers will have to contend with limited financial bank lending and raw material costs in the following year.

“Every major company has gone through tremendous upheaval and dealt with changes to every step of its supply chain,” said Aleks Miziolek, director of Dykema’s Automotive Industry Group. “There are many challenges still on the horizon for automotive executives that may impact the long term success of the industry’s future.”

From the total of 100 auto industry advisers and senior executives that took part in the survey, 40% of them said that raw materials increasing costs is the main concern of the auto industry, while 21% of them said that it is the financial bank lending that will affect the automakers in 2013. Besides these two challenges, the survey also includes labor issues, financially troubled suppliers and even the potential liabilities of self-driving vehicles and other new technologies.

A respectable 43.4% said that they were working on vehicle-to-vehicle technology, but even more— 55.3%—said that their companies

were working on vehicle-to-infrastructure or systems, which would allow cars to “talk” to traffic lights and other elements on the grid.

Over 92% said that they’d seen an increase in demand for their company’s products/services over the past year.

Most, 76.8%, have had to make internal changes to meet that growing demand.

Given that vehicles are becoming increasingly connected to the web, Dykema asked respondents about their biggest concerns on that front. Just over 35% said that they were worried about the distractions that accompany connected cars. However, more than 28% said they had no real concerns.

When asked about investments in technology, 60.5% said that the were developing “sensor-based safety systems that either warn or assist drivers in potential collision situations.”

On the legislative front, the biggest issue of concern was “energy and environmental legislation.” Part of the survey also discussed potential liabilities of self-driving vehicles and other emerging automotive technologies; about 1 in 3 respondents said driver distraction was their chief concern. Approximately 1 in 4 had concerns about data ownership of technologies.

NHTSA Declares Danger in Counterfeit Airbags

The National Highway Traffic Safety Administration (NHTSA) issued a warning on Oct. 10 about airbags that were replaced in the past three years, stating they may have counterfeit systems that won’t function properly.

NHTSA said the airbags look identical to certified, original equipment parts, but testing has shown malfunctioning ranging from nondeployment of the airbag to the expulsion of metal shrapnel during deployment. NHTSA has identified vehicle makes and models it believes may contain these airbags, and believes they affect less than 0.1% of the U.S. vehicle fleet. NHTSA noted that vehicles that have had an airbag replaced within the past three years by a repair shop that is not part of a new car dealership may be at risk.

NHTSA suggests that consumers whose vehicles have been in a crash and had the airbags replaced within the past three years by a repair shop that is not part of a new car dealership, or who have purchased a replacement airbag online, should contact a call center connected to their auto manufacturer to have their vehicle inspected and the airbag replaced if necessary.

“Although NHTSA does a good job highlighting the need for con-

sumers to be vigilant about counterfeit airbags and to contact their automobile manufacturer with questions, they are not as clear as to inspection and repair options for consumers. Independent shops are more prevalent in the collision marketplace and should be included in any NHTSA consumer recommendations for inspection and repair. In addition, it is not at all easy to discern whether automotive manufacturers or insurers will pay for these inspections and repairs. These are important consumer questions that will have to be answered,” said Bob Redding, ASA’s Washington, D.C., representative.

NHTSA has been working with numerous government agencies to better understand the issue of counterfeit airbags and how to prevent them from being purchased and installed in vehicles.

NHTSA is currently gathering information from automakers about their systems for verifying the authenticity of replacement parts and is working with the industry to make the driving public aware of the potential safety risk posed by counterfeit airbags. It has also posted to its website (www.nhtsa.gov) a list of vehicles for which counterfeit airbags may be available.

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ASA’s Caspersen Comments on PartsTrader Meetings

Reductions in parts profits was the biggest concern voiced by more than 125 collision repairers who attended two Automotive Service Associationsponsored meetings recently in Ohio centered around State Farm’s electronic parts ordering pilot.

The meetings were open to everyone in the collision repair industry at no charge. The first meeting was held in the Cleveland area Sept. 18; the second in the Cincinnati area Sept. 19.

Denise Caspersen, manager of ASA’s collision division, presented the elements of the pilot to date, reviewed industry concerns, and collected any additional questions, concerns and suggestions from attendees.

Repairers are concerned over the pilot’s inclusion of a discounted manufacturer’s suggested retail selling price (MSRP) column. Suppliers have the option to provide a discounted MSRP along with the margins of the part and the quote price. If a supplier elects to provide a discounted MSRP along with a quote for a part, it could result in lower profit margins on parts for the collision repair shop if that part is selected. State Farm stated in July that it does not ask for discounts on parts but if a supplier provides a discounted MSRP, this data is available to State Farm.

Repairers are responsible for recommending suppliers and determining their default OEM and preferred OEM suppliers. Once a Select Service shop requests a quote on an estimate, the quoting request is sent to all suppliers whose application “preferences” match the content of the estimate. Suppliers, just like repairers, are able to set preferences.

Suppliers are also responsible for setting their market area, parts type, and rates of delivery. Meeting attendees questioned why State Farm is doing this, what happens to repairers’ parts profits if this goes into effect, where is the efficiency, what State Farm sees as the future for collision claims and the size of their Select Service network—and the reigning question overall—where is the benefit to the collision repairers participating in the pilot?

“We continue to present to State Farm the concerns of ASA members.

If State Farm cannot provide data showing how this application benefits collision repairers (operationally/financially), ASA will respond appropriately on behalf of repairers,” said Caspersen. “ASA has provided State Farm with a timeline for data and will be meeting with State Farm to assess future actions.”

Enterprise Supports Bill to Get Unsafe Rental Cars Off the Road

Consumer advocate Cally Houck joined Senators Barbara Boxer and (800) 564-8222 Charles Schumer with safety advocates, to announce an exciting development in her battle to get dangerous North County BMW rental cars off the road. Earlier this year, Cally Houck started a popular petition on Change.org calling on Enwww.ncountybmw.com (800) 564-8222 terprise Rent-A-Car to drop opposition to proposed legislation that would prohibit rental car companies from renting cars that have been recalled due to safety risks. She has worked tirelessly North County BMW with safety advocates and members of Congress to secure industry support for the legislation. www.ncountybmw.com (800) 564-8222 Enterprise now supports the legislation, named after Cally’s daughters North County BMWRaechel and Jacqueline Houck, who died in 2004 while driving a recalled rental Enterprise car. The legwww.ncountybmw.com islation would ensure the safety of (800) 564-8222 America’s rental car fleet by preventing rental car companies from renting or selling recalled cars or trucks. The legislation is supported by Senators Chuck Schumer, Barbara Boxer, Claire McCaskill and Representatives Roy Blunt and Lois Capps.

“It’s so inspiring to see Enterprise Rent-a-Car, Avis and Dollar Thrifty join Hertz and members of Congress in supporting legislation that will prevent future tragedies on North County BMW

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the roads and highways,” said Cally Houck. “It took thousands of signatures on my Change.org petition and months of work by consumer advocates to get this far. I’m proud, and looking forward to Enterprise and the rest of the rental car industry joining us to advocate for the passage of this bill.”

“I know my campaign has educated and alerted people on the issue of rental car safety and that alone gives me hope that real change is on the way,” added Cally.

Cally was supported throughout her fight by car safety advocacy group Consumers for Auto Reliability and Safety (CARS).

Raechel, 24, and Jacqueline, 20, died in 2004 when the power-steering fluid leaked in their recalled PT Cruiser and caught fire, causing them to lose control of the car, which crashed into a semi tractor-trailer. A month before the fatal crash, Enterprise received the safety recall notice from Chrysler but did not fix the car, instead continuing to rent the defective PT Cruiser to three other customers before renting it to Ms. Houck’s daughters. Eventually, after a five-year legal battle, Enterprise accepted full responsibility for the accident.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 41

Steve Trapp Presents Implementing Best Practices for SOPs

by Melanie Anderson

Steve Trapp, Program Manager at DuPont Performance Services and DuPont Performance Alliance, presented Strategies for Implementing Best Practices for SOPs in Collision Repair at NACE on Oct. 13. Trapp, who runs a value-added program for DuPont, helped build standard operating procedures for his company.

Trapp opened the session with the question, Where should you focus SOPs? And quickly answered it, “On the area where you are having problems in the business. It could be sales or reducing costs or in another area.” He cautioned against Steve Trapp writing standard operating procedures for the entire business if other areas are working just fine.

In a nutshell, standard operating procedures (SOPs) is a way of saying “this is how we want to do this, every time.”

Trapp says the best way to write SOPs is to use a flipchart and let the whole team get involved, so you have their buy in when it comes time to follow the SOPs. The benefits of SOPs means minimizing waste: such as work not being done right the first time, being over

never had to learn at before. Things are changing all the time. If we don’t change, we will perish.”

The benefits of standard operating procedures include consistency of quality, improved and leveled daily throughput, improved productivity and efficiency, and cost and expense

productive, waiting on people or having vehicles sit idle, not consulting others, not having enough or proper inventory.

Because changes occur daily, your SOPs also may change.

“Can you think of an example of a recent change our largest customers have asked us to embrace with limited preparation?” Trapp asked. “The biggest change affecting the industry is the insurer scorecard.”

The challenge of SOPs, Trapp continued, is that they will change every couple of months. “We are literally learning things at a pace we’ve

control. It also means being able to properly train new hires and crosstrain the entire staff with less re-work needed and better morale. New employees come in expecting to be trained in the shop’s process. If they aren’t trained, they will revert to doing things the way they did at their last place of employment.

“We like order, we prefer it,” Trapp said. “People like a standard.

The key is that staff need to be a part of the process. if they are a victim of it, they feel trapped.”

Trapp suggests that SOPs be used as labels, stickers on the floor or in

“Failure is not fatal, but failure to change might be ...” –John Wooden

BASF Showcases Newest Additions to VisionPlus Online Tools at NACE During the 2012 International Autobody Congress and Exposition at the Morial Convention Center in New Orleans, LA, Oct. 10-13, BASF Automotive Refinish Solutions showcased their latest software tools to improve collision center productivity.

The Business Analyzer Tool, part of the VisionPLUS online suite of electronic tools and systems, gives

body shops the ability to measure themselves against industry standards by tracking their costs, sales, and performance. Used as a sales marketing tool, the Business Analyzer Tool breaks down the numbers of a shop’s costs, sales and profit based on several key indicators, such as paint and material costs, said Vitor Margaro-

nis, Marketing Director of BASF Coatings Solutions.

“We use the tool to help customers grow their businesses in the areas of improvement they want to focus on,” said Margaronis. “From a business standpoint, we go above and beyond a paint company. It’s not just about paint. It's about profits, growth, cost control, and overall better management of their business.”

The Business Analyzer Tool is available as a mobile app.

According to BASF, VisionPLUS Online allows collision repair centers to track, analyze and improve their business in real time so repair facilities can discover and act on improvement immediately, without having to wait for the usual end-of-month reports.

BASF produces coatings for the automotive, commercial fleet and collision repair markets.

Some of the refinish solutions from BASF are Limco, R-M and Glasurit paint products. The offering is supported by advanced color information systems, technical training programs and business management seminars.

42 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

posters because many people are visual learners.

Brainstorming meetings should be one to two hours with a flip chart or white board available. And always, keep the meeting positive.

“Attack the process, not the person!”

Trapp said. Ask staff to honestly assess the process for waste and define quality standards in the eyes of a customer.

Trapp suggests the following formula for improving the brainstorming session. Called ‘3-5-1’ the process asks for participants to write down www.autobodynews.com three ideas in five minutes, and then CHECK IT on OUT! as a group, focusing the one idea that comes out on top.

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How to be a ‘Courageous Leader’ Presented at NACE

by Melanie Anderson

Two strong women presented “Courageous Leadership” at NACE in New Orleans on Oct. 12. Sponsored by WIN, Women’s Industry Network, Denise Caspersen, ASA Collision Division Manager, and Melissa Miller, CARSTAR Sr. Operational Manager, talked with a group of women about what it takes to be brave in the workplace and in their lives.

Having courage is not the same as being fearless. Courage is the ability to do the right thing, despite feelings of fear or discomfort when facing situations of pain, risk, opportunity, uncertainty, hardship or intimidation.

Caspersen and Miller described three different types of courage and discussed the impact fear has on personal and organizational performance, and how by tapping into your own ‘courage history’ you can use your past to strengthen your future.

“We’re not all born with courage, but we’re born with the capacity to be courageous,” Caspersen said.

However, acting with courage is often avoided because of fear, because

it’s easier, people are afraid of embarrassing themselves or they don’t want a confrontation. But the benefits could result in growth, better communication, advancement, innovation and happier employees.

The cost of fear is high. According to Human Resource Executive Magazine (2008), a third of U.S. employees waste at least 20 hours of work time each month complaining about their bosses. Stress-related illnesses account for 1/3 of worker absenteeism, and 37% of American workers report being bullied on the job. Fearful workers are twice as likely to be depressed and 33% are more likely to report exhaustion and sleep disorders.

Ways that employees display fear in the workplace could include hostility, hiding mistakes, being distracted, and playing it safe versus taking a creative approach.

Ways to combat fear include looking for ways to build your confidence, not obsessing about things that frighten you, gathering facts, seeking mentoring and developing new skills.

“If we can address fear, little by

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little, every day, it becomes a habit,” said Caspersen.

Caspersen and Miller asked the group of women what they thought courage was and the answers were varied: willing to take a risk, standing up for yourself, standing up for your beliefs, finishing what you started, not giving up, speaking your truth, and being true to yourself.

Caspersen pointed out that we often make mistakes to learn by.

Something her parents told her still rings loud today: “You always have a choice, but you have to live with the outcome.”

When considering taking a risk, consider these factors: passion, purpose, principle, prerogative, and profit. These are the right reasons to take a risk. Can you suffer through the anguishing moments that accompany ‘right risks’ while caring intensely?

Can you harness that passion and stay focused and headed in the right direction? Do you have the right set of values? Do you have the power to choose? And, profit, is only to be considered lastly.

Three different types of courage

Esurance recognizes Three CARSTAR shops with awards

Esurance recently honored three CARSTAR facilities with Auto Body Repair Expert of the Year awards during CARSTAR’s annual conference in San Antonio. CARSTAR said Esurance presents the CARSTAR Auto Body Repair Expert of the Year award to the top performing stores in three U.S. regions. The award is based on several key performance indicators, such as estimate cycle time, compliance with Esurance’s direct repair program, re-inspection variance, I-CAR Gold status and customer service. The award was created to recognize the top shops and technicians in the industry for customer service excellence and continuation of technological education, CARSTAR said. The award-winning facilities include the following: ● Ace Sullins CARSTAR in Miramar, FL, owned by Kyle Wharff. ● Hunter’s CARSTAR in Norwood, PA, owned by Gary Hunter. ● Jungerman CARSTAR in St. Peters, MO, owned by Kerry and Bobbie Woodson.

“I congratulate them for earning the titles, and I thank Esurance for its continued campaign to educate technicians in this industry,” said David Byers, CEO of CARSTAR.

were described as: ‘try,’ ‘trust’ and ‘tell.’ Those who ‘try’ step up and make the first attempts to take action.

Those who ‘trust’ follow the lead of others and let go of control. Those who ‘tell’ are those who speak out, assert one’s voice, and tell the truth. And there are always risks. Your actions may harm others. Other people’s actions may harm you. Or, you could be cast out of the group for truth telling.

“The ‘tell’ type of courage can be the most difficult as you may say things the other person doesn’t want to hear,” said Miller. “There is always a difference between being respectful and being offensive. Always make it about the process, not the person.”

Caspersen and Miller also described two leadership styles. The first is called ‘spillers’ — those who rely on fear as a motivator, are negative during times of challenge, or who discourage others who try to grow.

The other leadership style is ‘fillers’ — those who build other people’s confidence, provide support during challenges, and encourage others to grow.

Which kind of leader are you?

Martin Senour Kicks Off 4Q Training Program

The Martin Senour Company kicked off its fourth quarter training session in October, offering courses to collision center professionals on technical skills, estimating solutions, new technologies, and updated application techniques required for collision center profitability. The Fall 2012 course lineup, which is held at various Martin Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint.

“We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, Martin Senour Director of Sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification, and lean practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX® waterborne, Tec/Base® and Pro//Base™ refinish systems, painter certification, and color adjustment and blending. Visit martinsenour-autopaint.com or call 1800-526-6704 for schedule.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 43

NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE

by Melanie Anderson

The National Auto Body Council gifted six vehicles to needy families through its Recycled Rides program at NACE on Oct. 11.

Four local shops in the New Orleans area donated their time to refurbish the vehicles: • Car Craft Collision Centers (2 cars) • Champ’s Collision Centers (2 cars) • Collision Xperts • Fradella’s Collision Center Seven years ago, in the wake of Hurricane Katrina, these shops received assistance from NABC with basic necessities, such as household goods, clothing and technician tools.

Now, these shops paid it forward to others in need.

Recycled Rides is a national initiative through which National Auto Body Council members refurbish donated vehicles and gift them to families in need. In addition to body shops donating their labor, insurers, paint suppliers, parts vendors and rental car companies contribute as well.

At the NACE event, five insurance companies donated vehicles for refurbishing: Allstate, Esurance, GEICO, Progressive and State Farm.

Enterprise Rent-A-Car donated a vehicle as well.

The Maltese family received a Ford Escape refurbished by Car Craft Collision Center and donated by Enterprise.

The Jiles family lost their vehicles in Hurricane Isaac and received a Honda CRV, refurbished by Champ’s Collision Center and donated by GEICO. The Easley family received a Dodge pickup truck, refurbished by Collision Xperts and donated by Progressive.

Brenda Kenna was overjoyed to receive a Toyota Camry that was refurbished by Car Craft Collision Center and donated by Esurance.

Carolyn Gagliano, a retired teacher, is thankful for her new Chevrolet Impala refurbished by Fradella’s Collision Center and donated by State Farm.

David Marlowe is retired and has major health issues. He will benefit from the Ford Explorer that was refurbished by Champ’s Collision Center and donated by Allstate.

“This car is giving me my life back,” said Marlowe. “You lose your

last vestige of independence when you lose your transportation.”

For Calvin Schenck, owner of Car Craft Collision Centers, participating in the Recycled Rides Program means paying it forward.

tires on this vehicle and an alignment, as well as completing an oil change and a complete analysis of the proper function of the vehicle and servicing the A/C system,” said Schenck.

Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and the collision centers, insurers and other businesses that donated their time, labor, services and products

“This journey started seven years ago as a result of the largest national disaster that the United States had ever experienced. That disaster was named Hurricane Katrina,” Schenck said.

“No one could have expected the amount of physical, financial and emotional damage that one event could cause. Thousands of people were left jobless, homeless and directionless. We were part of that group.

“As we struggled to get our lives and businesses back together, we were contacted by people in our industry, who told us that they were ready to roll up their sleeves and help, and that they did. We were given hope that there were people out there who cared.

Help arrived in the form of tool replacements and emotional support,” Schenck said.

“Before we knew it, we were beginning to heal. Had it not been for the help of these people, we don’t know if we could have made it. Because of this, we have decided to pay it forward. The cars given away are part of a project that has required us to complete all necessary repairs to these vehicles, some of which we have equipped with new tires and paint jobs. We would also like to thank Mike n’ Jerry’s Paint and Supply, Lamarque Ford and Gulf States Glass for the supplies they donated.”

Car Craft Collision Centers donated body and paint work to a 2007 Toyota Camry. “We put four new

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Champ’s Collision Centers, owned

by Tim and Danny Kingston, worked on two cars, a 2002 Ford Explorer and a 2004 Honda CRV. The cars were donated by Allstate and GEICO.

“Both cars have under 100,000 miles and should provide safe and reliable transportation for years,” said Tim Kingston. “Champ’s is proud to have had the opportunity to contribute to such a great cause benefitting our community.”

Fradella’s Collision Centers refurbished a 2007 Impala donated by State Farm. According to Fradella’s Vice President Al Waller, the shop repaired small dents and scratches, replaced the front bearing, brought its maintenance up to date and detailed the vehicle inside and out.

“The goal is to help people help themselves,” said Chuck Sulkala, the executive director of the NABC. “And all of the industry segments commit to playing a part in seeing that happens.

Most that participate find it a lifechanging experience.”

The Recycled Rides program was born in 2007. Since then, 150 cars are given away every year throughout the country, said Liz Stein, VP of Industry Relations, Assured Performance Network and VP of NABC. “Imagine the impact this would be in your community if more people did this.”

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DEG & the Keys to Successful Estimating Presented in New Orleans Collision damage experts Larry Montanez and Arthur Harris presented “The Keys to Successful Estimating!” during NACE in New Orleans, LA, on Oct. 12.

The focus of their presentation centered on DEG, Database Enhancement Gateway, a free service funded by the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers. The DEG is an advocate for accurate collision data and acts as a gobetween for shops and information providers—CCC, Mitchell and Audatex.

The DEG was developed to improve the quality and accuracy of collision repair estimates by those who use collision repair estimating databases to provide feedback to information providers.

“The DEG was created because there was a disconnect with information providers and DEG was created to bridge that gap,” said Harris,

DEG Administrator.

The DEG public database has been around for five years, said Harris, who has been with the company for

Larry Montanez (l) and Arthur Harris (r) talked about the DEG at NACE on Oct. 12

two years. He describes his job as “facilitating the gap between information providers and the estimate user.”

Collision repairers and insurers may submit questions and inquiries or

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Estimating Platform

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an inquiry and the response from the information provider in question. Users can also read all other inquiries made by other repairers and see how the issue was resolved.

Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification.

In addition, Harris advised those in attendance at the NACE presentation not to print out the P-Pages, or estimating guides as he called them, because they could be outdated. Montanez says he downloads the P-Pages once a month to replace the older version from the previous month.

“The P-Pages aren’t guides. The estimates aren’t suggested. It is the manual,” said Montanez. “The P-Pages are not open to interpretation.”

For more information on the DEG, go to www.degweb.org.

Submission Date

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Resolution Date

9/11/2012 9/14/2012 9/14/2012 6:15:07 PM 9:02:00 AM 12:38:00 PM Resolution Description

Total Time to Resolve 00 Days

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ask for assistance with a particular problem and DEG will work with the information provider to reach a resolution. Often, this can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing a task in regards to a question or problem that arises, said Montanez, a collision damage analyst with P&L Consultants.

To submit an inquiry, log on to www.degweb.org and fill out an online worksheet.

“The DEG is free and people should send in their inquiries. It helps everyone get questions answered,” said Montanez.

The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, Harris said. He adds that the DEG provides timely responses on both the status on

DPC launches new catalog

DuPont Performance Coatings (DPC) recently launched an online catalog for its popular line of DuPont Refinish products to help collision repair professionals make informed decisions when purchasing paint products. The DuPont Refinish Product eCatalog is located at www.products.dupontrefinish.com.

Using the eCatalog, collision repair professionals can browse over 100 core DuPont Refinish products by type, technology and VOC limit, and compare up to 10 products sideby-side. Each product features comprehensive application information and includes a link to the MSDS and the technical data sheet. A “Where to Buy” feature helps users locate their closest authorized distributor of DuPont Refinish products.

The eCatalog is mobile and desktop friendly to ensure a positive user experience regardless of the device used to access the application.

“Our goal is to provide a userfriendly tool that makes searching for the right product a straightforward experience,” said Mike Bennett.

Dupont Performance Coatings was recently sold to a group backed by private equity partners, the Carlyle Group. To learn more visit http://www.dupont.com.

I-CAR courses now online

New I-CAR professional development courses will be delivered online to better meet the needs of collision repairers. There will be 14 courses offered. Several industry professionals are working to meet 2012 ProLevel 1 training requirements before the end of the year, and the online classes will help individuals and businesses meet those requirements. “By converting the courses that are not often taught in a live setting, instructors can focus more time on the more technically advanced classes that are needed in their areas,” said Jeff Peevy, senior director of field operations. The following classes have been converted for the online course format: Air Conditioning, Part 1 (AIR02e); and Part 2 (AIR03e); Bolted-On Exterior Panels, Part 1 (EXT03e) and Part 2 (EXT04e); Moveable Glass (GLA01e); Cooling System Operation and Parts (HEA02e); Working with Coolant and HVAC Controls (HEA03e); Batteries (LCS02e); Starting and Charging Systems (LCS03e); Automotive Lighting (LCS04e); Detailing (REF04e); Cosmetic Straightening Steel (STS01e); Removing and Installing Hardware and Interior Trim (TRM02e); Removing and Installing Exterior Trim, Pinstripes, and Decals (TRM03e).

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 45

Continued from Cover

Avery to GCIA

before they implement the program in other areas. Some of the attendees also mentioned they are willing to try the program but asked ‘If this program does not work for me, am I able to quit using it?’ and George replied that ‘This is a business decision that each shop should review and evaluate on its own merits,’” Batchelor reported.

Steve Plier, President of Consumer Auto Repair Excellence, Inc. (CARE), a consulting company based in Birmingham, AL, was also in attendance taking notes. (See interview with Plier this issue.) CARE is a company focused on the auto repair industry with its primary focus assisting repair facilities with basic fundamentals and basic business principals that are often overlooked resulting in diminished compensation and profits for the repair facility.

Plier said the first number listed in Avery’s PowerPoint presentation was “$3 billion” which Avery stated was the amount State Farm ‘gives’ to the repair industry for parts in a year. Later, during the Q&A, a member of the audience spoke up and said he took offense to Avery’s statement of “giving” as the $3 billion actually refers to the amount of parts purchased, not given.

Avery’s slide presentation indicated that State Farm holds 41 million automobile policies and the insurer handles an average of 32,000 claims each day. State Farm had 20,000 Service First repairers at the peak of the old Service First program compared with approximately 10,300 Select Service providers in the Select Service program today.

Avery noted that 63% of all claims are handled through Select Service, with the lowest percentage of 17% of claims being handled through Select Service in Long Island, NY. “Mr. Avery spoke of meeting with different large providers discussing where the majority of delays occurred and noted the response centered on parts delays and that by assisting the industry and improving cycle time to reduce the time of repairs by one day would reduce State Farm’s rental expense by $43 million for each day of cycle time reduced,” Plier reported.

State Farm originally piloted a parts procurement program back in 2008/2009 but it was discontinued when Chrysler filed for bankruptcy and GM accepted government bailout

funds. However, during that pilot they discovered by their numbers a parts return percentage between 14–17%, and based on this fact, the decision was made to search for additional options after shutting down the pilot. Shortly after the program was discontinued, State Farm filed a request for proposal and PartsTrader was selected from this process.

“Per Mr. Avery, State Farm wants to assist the industry (use of PartsTrader and a parts locating/procurement program) by reducing totals because of parts competitiveness reducing repair

training process and that is being addressed by PartsTrader. “Mr. Avery noted State Farm and PartsTrader are hand-in-hand in this process and PartsTrader must prove and provide a value to the industry.”

As Avery was saying the evaluations had returned positive information, Dave McBroom, director of the Florida Automotive Collision Association, spoke up to disagree. [Editor’s Note: Dave McBroom, passed away on Oct. 11. Read his obituary on page 10.]

“Mr. McBroom told the participants he had flown in from Tuscon that

cost. He says this would be an assistance to all (the consumer, the OE manufacturer, the insurance company, and the repair facilities),” reported Plier.

During his presentation, Avery stated only suppliers nominated by Select Service repairers are and will be on the PartsTrader list. Avery also said that PartsTrader is continuing to make improvements in the electronic process and two of the test market areas now are operating on a 30-minute bid window.

Avery also noted that the number of repairers in the Chicago metro area, the fifth and final test market who are expected to test the PartsTrader program in December, will outnumber the total number of repairers currently on the pilot in the other four test markets combined.

Plier reported that during the Q&A, the first question asked came from a frustrated individual about a slide from Avery’s presentation showing a PartsTrader screen shot that indicated parts, days of delivery and the shop cost, but not the price that would be listed on the estimate. After several other attempts by members of the audience to get clear answers on list price, “Mr. Avery eventually admitted that the shops’ margins were not guaranteed to remain what they currently are,” Plier reported.

Another sticking point in the meeting centered around whether or not repairers in test markets were giving positive feedback.

“Mr. Avery stated State Farm had received positive feedback from the evaluation from the four current test areas, but he gave no specific examples of positives,” Plier said. The evaluations indicated there must be a better

afternoon so he could be a part of the meeting. Mr. McBroom noted to the group he had been in Tuscon for a week and had spent time in repair facilities on the program and had completed the steps to sending out the bids, and then went to the parts suppliers to see how the program worked on both sides,” Plier said.

“Mr. McBroom then began naming different repairers and suppliers

“Mr. Avery eventually admitted that shops’ margins were ‘not guaranteed’ to remain what they currently are”

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

who had removed themselves from the PartsTrader program. At this point, Mr. Avery spoke up and stated he did not feel this was fair. The audience became vocal enough that Mr. Avery allowed Mr. McBroom to continue for a few additional statements.”

In general, members of the audience felt that much of the information provided by Avery was very much the same information that has been published since the pilot program was started, and that the only new information he provided was related to why State Farm was attempting another parts procurement program.

“At no time did or could Mr. Avery provide how this program would benefit a repairer and/or a supplier,” Plier said. He also reported that several of the audience questions were repetitive in nature because Avery avoided giving specific answers. The meeting ended late at 9:45 p.m. Before closing, Batchelor invited shop owners from Alabama to return for another meeting later this year to allow GCIA members to hear their side of the story now that they had heard from State Farm.

Special thanks from Autobody News to Steve Plier for providing notes on the meeting.

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Copart Says It is Posting Balanced Volume Gains Copart says that not only is it posting salvage volume gains— thanks in part to an exclusive contract with a major car insurance carrier—but the company is also maintaining a targeted ratio in relation to its non-salvage business, too. When discussing its 2012 fiscal year, CFO Will Franklin confirmed Copart began to see the incremental volume associated with its exclusive contract with Nationwide Insurance, which the auction company entered into in its previous fiscal quarter.

“We expect incremental volume for this contract to reach full run-rate by the end of the first quarter of fiscal 2013 and to be fully reflected in our second-quarter results,” Franklin said.

Meanwhile, Copart noted that volume from non-insurance units grew by almost 5% and represented 21% of all units the company moved in the quarter that closed on July 31.

“We go after all facets of the non-insurance market, whether it’s charity or dealer business,” Copart chief executive officer Jay Adair told investment analysts during a conference call. “We’re going to continue to go after that. We’ve been successful, and I really think the limit is quite high. It’s an enormous market com-

pared to the size of total-loss vehicles in the U.S., the U.K. or any other market.

“What excites me about it is it’s one of those books of business where we’ve some really great growth in the last year on the insurance side and yet we’re maintaining a 79-21 split. They’ve been able to keep the growth going on even though the insurance side has been growing rapidly. That’s good stuff,” Adair went on to say.

An analyst wondered if more volume could be coming from another major insurance provider since Copart has landed contract work from Nationwide and Allstate during the past two years.

“Buddy, if I had a crystal ball I’d share it with you,” Adair quipped.

“Those are things you just don’t know. We’re working really hard on this end. We fully believe in our team and our technology and our people’s ability. We’re passionate about what we do. I think when people meet us, they figure that out pretty quickly.

We’re a company that is going to be around for a long time. We’re not interested in doing something differently. This is what we do and what we love. Hopefully, over time that will generate additional business.”

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ALLDATA Shows Off New Compliance Tool at NACE

WMABA Sees Good Turnout at PartsTrader Meetings

OSHA and SCRS Offer Shop Sustainability Training

Overhaulin’s New Season Starring Chip Foose

At NACE on Oct. 10, ALLDATA LLC introduced a product that automatically verifies estimates against regulations applicable to repairs, direct repair provider (DRP) guidelines and shop business rules.

“The number of complex rules an estimate must comply with keeps growing,” said ALLDATA president, Jeff Lagges in a company release.

“That complexity requires skilled, experienced estimators who must still spend time looking up specifics for various DRPs, new regulations and so on. ALLDATA Compliance operates behind the scenes to verify each line item, helping to eliminate guesswork, reduce lookup times, and lessen the need to hire and retain only the most experienced estimators. The combination means ALLDATA Compliance can help save shop owners a great deal of time and money.”

Equally important is the accuracy ALLDATA Compliance adds to each estimate that, over time, the increased accuracy can help strengthen insurer relationships and potentially raise DRP scores, which may result in increased referrals and revenue.

For more information go to alldata.com/estimate-compliance.

The Society of Collision Repair Specialists is providing collision shop operators across the nation with sustainability training.

A group taking steps to offer sustainable, free safety training is the Society of Collision Repair Specialists, which is offering a Green Sustainability School to collision shop operators across the country, including a series of online training sessions from OSHA. These OSHA training sessions educate employees on work safety regulations and how to save energy and dollars while protecting the environment.

SCRS is focusing this initiative on collision shop operators. In addition to the training gained by the employees, operators will receive Track Green Garage, a program that allows energy to be monitored instantly through online, real-time measurements.

The program is part of a larger sustainability initiative, GreenSweep, provided by GRC-Pirk Management Co., a professional engineering firm.

GRC-Pirk chose SCRS to be the primary provider of the Green Sustainability School in the collision repair industry.

The Washington Metropolitan Auto Body Association (WMABA) held meetings in Springfield, VA, and Baltimore, MD, on September 19 to discuss issues related to parts procurement and the PartsTrader pilot.

The WMABA said that both meetings were well attended by regional repairers and parts vendors.

Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg gave an indepth presentation about the pilot, historical data relating to PartsTrader in other markets, and the potential ramifications for the U.S. collision repair industry. He also informed the group about the upcoming Repairer Driven Education (RDE) sessions being held at SEMA Oct. 30–Nov. 2 in Las Vegas.

“The potential problems it could create in the market for both repairers and parts vendors could change the landscape of our industry drastically. I think it was heard loud and clear,” said WMABA Executive Director Jordan Hendler. “The association will use information from this presentation and other sources to create a fact-based informative piece that can be shared in the industry,” she said.

Velocity is rebuilding the popular car franchise OVERHAULIN’ and bringing it back to viewers this October. Featuring Chip Foose, the allnew OVERHAULIN’ is set to unveil one-of-a-kind automotive transformations to several lucky and well-deserving car owners. The new and improved OVERHAULIN’ premieres October 2 at 9PM ET/PT on Velocity. Foose is known for combining creativity, technology and ingenuity, when restoring classic cars resulting in some of the most unique and breathtaking vehicles anywhere.

However, OVERHAULIN’ goes beyond the garage, exploring engaging human stories and the strong emotional connection between man and machine. In each episode of OVERHAULIN’ viewers will watch Chip and his build team as they makeover worn-out automobiles into works of art. The restoration projects feature deserving individuals ranging from returning veterans to those negatively impacted by the tough economy. Each altered auto becomes a life-changing surprise for its unknowing owner. Co-host Chris Jacobs returns, as well as fabrication and restoration expert Jessi Combs.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 47

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