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Attorney John Arthur Eaves and Shop Owner Bill Fowler appear on Memphis Radio to Discuss MDL Suit by Chasidy Rae Sisk
On Tuesday, August 26, attorney John Arthur Eaves and shop owner Bill Fowler, of Bill Fowler’s Bodyworks in Southaven MS, appeared on the Drake and Zeke Show, a popular early morning radio talk show in the Memphis, TN area. The reason for their guest appearance was to explain the MDL lawsuit to consumers and educate them on their rights during the collision repair process in hopes of raising awareness about this important issue impacting collision repair facilities across the country.
To begin, the radio hosts summarized the lawsuit they planned to discuss. In January 2014, Eaves filed a complaint against insurers on behalf of 21 collision repair shops. Though the lawsuit began in MS, it has spread and continues to gain traction so that it is now a national lawsuit, involving six states, which will be tried by a single judge in FL. Multiple insurers have been implicated in the complaint as the habit of insurer steering is an industry-wide problem. Fowler pointed out that steering has become so pervasive in the indusSee Memphis Radio, Page 30
Congress Expresses Support of Repair Industry in Response to Owners’ Trip to Washington D.C. by Stacey Phillips, Assistant Editor
Sixty-five collision repair shop owners recently traveled to Washington D.C. to educate Congress about the struggle body shops face to protect consumers when providing a complete and safe repair. The majority of them were part of a Nationwide AntiTrust Multi-District Litigation filed earlier this year against multiple insurance companies in several states. (See also other cover story this page.) After more than 150 meetings with representatives and senators over a three-day period, the result was an outpouring of support for an industry
VOL. 5 ISSUE 9 NOVEMBER 2014
Recent MSO Consolidations in CA Heat Up Industry by Stacey Phillips, Assistant Editor
Last month we reported on the final closing of the purchase of Holmes Body Shop’s seven locations by Cooks Collision Centers. The Holmes acquisition was initiated in May 2012 and concluded with the seventh Holmes location closing in September of this year, after our last issue went to press. With 35 locations in CA, Cooks is the largest independently owned and operated collision repair organization in the state. But Holmes is not even the latest medium size MSO to be acquired by larger consolidators in California. In September, Service King Collision Repair Centers acquired Marco’s Collision Centers, a medium-sized MSO also having seven locations in South-
ern California. Shortly thereafter Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. Is there some kind of ‘rule of sevens’ at play here? More seriously, we wanted to know what forces were driving the acquisition of small to mid-size MSOs and why they seem more attractive than individual shops for acquisition. Nearly 20 years ago David Roberts, the co-founder and former Chairman of the Board for Caliber Collision Centers, wrote an article predicting the future of consolidations in the collision repair industry. It was entitled Shop Consolidation: Is it Inevitable? Undoubtedly, Roberts anSee MSO Consolidations, Page 10
Pro Spot is Ford’s Rotunda Supplier of the Year Carlsbad’s Pro Spot is very proud to be awarded the supplier of the year award by the Ford Motor Company Rotunda Program. Pro Spot was approved by Ford to supply aluminum repair equipment to the Collision Repair Program for repairs on the new 2015 Ford F-150 all-aluminum body truck. The Ford Rotunda Dealer Equipment Program is a national program endorsed by Ford
Matt Parker with House Speaker John Boehner
faced with the challenge of insurance companies dictating how they run See Congress Support, Page 43
(l to r) Mike Berardi (Ford Director of Service Engineering Operations), Ashley Olsson (Pro Spot Director of Communications), Ron Olsson (Pro Spot Founder & President) and Steve DeAngelis (Ford Manager of Technical Support Operations). Photo Credit: Ashley Olsson
Motor Co. to their dealer base, selling service and body shop repair equipment. The approved equipment included: the SP Pulse MIG welders— the most sold Ford-required MIG
welders in North America, the Aluminum Dent Repair Stations, Fume Extractors, and the SPR Riveter; all of which contributed to the winning of the Supplier of the Year award. “We would like to thank Team Pro Spot for all of their hard work and all of our customers that have supported us in purchasing our aluminum repair products. This means a lot to our team at Pro Spot,” said Ron Olsson, Pro Spot President, “I’m overwhelmed and very honored to win this award from Ford. We have been working very hard and appreciate the trust in our equipment and of course, the overwhelming amount of orders we have received for the aluminum program.” The 2015 F-150 is revolutionizing the repair industry by mainstreaming aluminum repair. With the hard work by Ford Motor Company in designing a repairability-focused, all-aluminum body F-150, shops across the country are getting prepared to repair the top selling vehicle. Pro Spot is proud to be recognized as a supplier of quality aluminum repair equipment to the Collision Repair Program and the 2015 Ford F-150 truck. Pro Spot looks forward to continuing to design innovative equipment for shops and technicians to repair vehicles back to OE standards.
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2 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
Contents $2 Million Grant to Auto Programs
in LA, AL, MS . . . . . . . . . . . . . . . . . . . . 8
$350K Grant to Hillsborough College’s
Training for Transportation & Diesel . . . . 6
ABRA Raises $10,000 for Children’s
Hospital in TN . . . . . . . . . . . . . . . . . . . . 6
Atlanta I-CAR Committee’s 6th Annual
Rockin’ Car Show . . . . . . . . . . . . . . . . 14
Auto Wrecks Dramatically Rise in
Charlotte, NC . . . . . . . . . . . . . . . . . . . . 22
Brevard, FL Dealerships Renovate
and Expand . . . . . . . . . . . . . . . . . . . . . . 4
Norman Morano is Our Newest Regional Sales Manager
Yoswick - Energy transfer in today’s vehicles makes measuring, multi-point pulling
more important . . . . . . . . . . . . . . . . . . 15 NATIONAL
Aftermarket Auto Parts Alliance Joins
CC TRU Parts Network. . . . . . . . . . . . . 38
Attorney John Arthur Eaves and Shop
Owner Bill Fowler appear on Memphis
Radio to Discuss MDL Suit . . . . . . . . . . 1
Berkshire Hathaway to Acquire Van Tuyl Group, Largest Privately-Owned Auto
Dealership Group . . . . . . . . . . . . . . . . . 38
Couple Charged in Own Shop Fire . . . . . . 14
Caliber Acquires AutoPride . . . . . . . . . . . . 4
November Fair in GA . . . . . . . . . . . . . . . 8
With Social Media . . . . . . . . . . . . . . . . 44
Demolition Derby Gears Up for
Car-O-Liner Participation Enhanced
Fire at Miramar, FL, Shop Damaged Cars . 32
Chevrolet Brings Back the Corvette
FL Auto Insurance Prices Online. . . . . . . . 14
Chevrolet Debuts Pickup Concept
GA Dept of Driver Services Encourages
Chrysler Recall of SUVs . . . . . . . . . . . . . . 42
First CarMax Location Opens in Mississippi . 6 FL Event Showed Off the Latest EV Models . 6
Safer Driving . . . . . . . . . . . . . . . . . . . . . 8
GCIA’s 18th Annual Golf Tournament . . . . 19 GreenTech Automotive Completes
Stingray in Time for SEMA . . . . . . . . . . 42 Trucks for SEMA . . . . . . . . . . . . . . . . . 37
Congress Expresses Support of Repair
Industry in Response to Owners’ Trip
to Washington D.C. . . . . . . . . . . . . . . . . 1
Couple Charged in Own Shop Fire . . . . . . 14
FL Hold Events. . . . . . . . . . . . . . . . . . . 22
Spider Models . . . . . . . . . . . . . . . . . . . 42
Leading Collision Industry Experts in
Nationwide Ray Gunder Labor Rate Surveys
Announced . . . . . . . . . . . . . . . . . . . . . . . 22 NC Automotive Instructor Awarded
Ferrari Recall of 458 Italia and
FL Auto Insurance Prices Online. . . . . . . . 14 Ford Recalls 850,000 Cars for Airbag
& Seat Belt Glitch. . . . . . . . . . . . . . . . . 44
Trip to SEMA . . . . . . . . . . . . . . . . . . . . 22
Mercedes Will Train 26,000 in
Environmental Achievements in TN . . . . 4
Pro Spot is Ford’s Rotunda Supplier
Energy Efficient Cars . . . . . . . . . . . . . . . 4
Quest Donates $280,000 in Paint
Awarded Youth Villages Family With
Recent MSO Consolidations in CA
Pull-A-Part Recognized for Multiple SE Tops List of States With Most
Service King and MetLife Auto & Home
Refurbished Vehicle . . . . . . . . . . . . . . . . 9
the Brand’s New Culture . . . . . . . . . . . 42
of the Year . . . . . . . . . . . . . . . . . . . . . . . 1 & Abrasives to CREF . . . . . . . . . . . . . . 36
Heat Up Industry . . . . . . . . . . . . . . . . . . 1
Students Gain Practical Experience
Service King Donation in FL . . . . . . . . . . . 14
Third Time is the Charm at North Carolina
Sisk - LaCIA Holds September
at NC Body Shop . . . . . . . . . . . . . . . . . 12 Custom Paint and Auto Body Shop. . . . 45
COLUMNISTS
Attanasio - Body Shops are Tapping into
the Persuasive Power of Video . . . . . . . 16
Sherwin-Williams EcoLean™ Workshop. . . 9
Member Meeting . . . . . . . . . . . . . . . . . 12
Sisk - No Fear for GCIA! . . . . . . . . . . . . . . 28
Sisk - SafeCars Hosts Meetings Around the Country to Discuss Insurer Interference
and National Lawsuits . . . . . . . . . . . . . 34
Attanasio - Chicago Body Shop’s
Students Gain Pratical Experience
Attanasio - Gas Monkey Garage and Dodge
Takata Airbag Recall May Include
Franklin - Are You Marketing to Merely
Three Types of Parts Account for
Luehr - Lean Implementation Strategies . . 40
Toyota Moves to Aluminum Hood
Anti-Texting Campaign Catches Fire . . . 35
Recruit Mötley Crüe to Rock Dallas . . . 20
Survive or Are You Trying to Grow . . . . 32
Yoswick - DRPs 20 years ago, Early CCRE,
ADP Revises Labor Times, . . . . . . . . . 26
Contact Norm at: nmorano@autobodynews.com to discuss your advertising needs.
Three Types of Parts Account for 50% of Sales Online
In terms of dollars spent on automotive replacement parts through online purchasing, or e-tailing, three categories represent half of the dollar volume in 2013, according to E-Tailing in the Automotive Aftermarket from the Auto Care Association. The top three product categories are braking systems (primarily pads and shoes); ignition and engine (fuel pumps, alternators, ignition coils, etc.);
at NC Body Shop . . . . . . . . . . . . . . . . . 12 GM Vehicles . . . . . . . . . . . . . . . . . . . . 42
50% of Sales Online. . . . . . . . . . . . . . . . 3 for Camry in 2018 . . . . . . . . . . . . . . . . 42
WIN 2015 Membership Drive . . . . . . . . . . 32
and glass, mirrors and lamps. The E-Tailing in the Automotive Aftermarket digital study analyzes the online retail market for sales of aftermarket parts, and serves as the foundation for the Auto Care Association to provide a unified estimate of online sales within the aftermarket. For pricing and more information, visit www.autocare.org/etailing.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
New MS Plant . . . . . . . . . . . . . . . . . . . . 6
Autobody News is pleased to introduce Norman Morano who joined our team in October as an Advertising Sales Manager. Norm has been a Sales Director for 13 years handling Hammer & Dolly, New Jersey Automotive, New England Automotive, AASP-News/MN and Wisconsin Automotive News. He has also sold exhibitor space for the past four years at the Northeast Automotive Trade Show. Norm graduated from the University of California at Berkeley in 1982 with a BS degree in Environmental Studies. After college he travelled extensively before attending Law School at Rutgers University School of Law. He was admitted to the bar in New Jersey and Pennsylvania and has kept his NJ bar license active. Born and raised in Nutley, NJ, Norm has also lived in Orono, ME, Berkeley, CA, and Sydney, Australia. Before concentrating on automotive advertising he had his own sign company building his sales contacts throughout NY, NJ, PA, CT and DE. When he isn't working, Norm enjoys biking, yoga, surfing, motorcycling, movies, pizza and the New York Times. He has been a resident of the Jersey Shore for the past 26 years. Contact Norm to discuss your advertising needs at nmorano@autobodynews.com.
Allan Vigil Ford-Lincoln . . . . . . . . . . 31 Arrigo Dodge-Chrysler-Jeep-Ram . 10 BMW Wholesale Parts Dealers . . . . 38 Car-Part.com . . . . . . . . . . . . . . . . . . . 9 CarcoonAmerica Airflow Systems . . 8 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Coggin Deland Honda . . . . . . . . . . 30 Crashmax Equipment . . . . . . . . . . . 18 Crown Automotive Group . . . . . . . . 33 Dent Tools Direct USA . . . . . . . . . . . 6 DJS Fabrications, Inc.. . . . . . . . . . . 48 Don Reid Ford. . . . . . . . . . . . . . . . . 36 Equalizer Industries, Inc . . . . . . . . . 12 Ford Wholesale Parts Dealers FL, VA, GA, AL, MS. . . . . . . . . . . 39 GlasWeld Systems, Inc . . . . . . . . . . 16 GM Wholesale Parts Dealers . . . . . 37 Gus Machado Ford . . . . . . . . . . . . . 26 Hendrick Automotive Group . . . . . . 13 Hendrick BMW/MINI . . . . . . . . . . . . 19 Hendrick Honda Bradenton . . . . . . 22 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 23, 24-25 Hyundai Wholesale Parts Dealers. . 43 Innovative Tools & Technology, Inc. . 15 Jon Hall Chevrolet . . . . . . . . . . . . . 34
Serving Florida, Georgia, Alabama, Mississippi, Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.
Autobody News
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REGIONAL
New Talent Joins the Autobody News Sales Staff
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 21 Kia Motors Wholesale Parts Dealers. 41 Lexus Wholesale Parts Dealers . . . 44 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mercedes-Benz . . . . . . . . . . . . . . . . . 7 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 40 MINI Wholesale Parts Dealers . . . . 38 Mitsubishi Wholesale Parts Dealers . 42 MOPAR Wholesale Parts Dealers . . 29 Motor Guard Corp. . . . . . . . . . . . . . . 4 Nalley BMW. . . . . . . . . . . . . . . . . . . 30 Performance Automall . . . . . . . . . . 27 Porsche Wholesale Parts Dealers . 45 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Priority Honda . . . . . . . . . . . . . . . . . 34 Rick Hendrick Dodge-ChryslerJeep-Ram. . . . . . . . . . . . . . . . . . . 14 Safety Regulation Strategies . . . . . 32 SATA Spray Equipment . . . . . . . . . . 5 Subaru of Gwinnett . . . . . . . . . . . . . 28 Subaru Wholesale Parts Dealers . . 35 Tameron Hyundai . . . . . . . . . . . . . . 26 TG Products, Inc. - The Rail Saver . 20 UniCure Spraybooths . . . . . . . . . . . 47 Valspar Automotive . . . . . . . . . . . . . 11
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 3
Pull-A-Part Recognized for Multiple Environmental Achievements in TN Pull-A-Part, the award-winning family business serving the do-it-yourself, used auto parts market, earned four 2014 environmental awards from the Tennessee Chamber of Commerce & Industry. Based in Atlanta, Georgia, Pull-A-Part provides affordable used auto parts to do-it-yourself consumers, while also providing high quality scrap metal, fluids and plastics for recycling. Pull-A-Part received the following awards on Oct. 2: the 2014 Award for Water Quality; the 2014 Award for Air Quality; a Certificate of Recognition in Solid and Hazardous Waste Management; and a Certificate of Recognition for Environmental Excellence. These awards recognize businesses that have demonstrated outstanding achievement toward environmental protection and enhancement as well as proactive and innovative energy projects. Pull-A-Part was acknowledged for preventing water and air pollution, reducing waste sent to landfills, conserving resources, and overall environmental excellence at its locations in Knoxville, Memphis and Nashville. The company earned its first Tennessee environmental award from the Tennessee Chamber of Commerce & Industry in 2006. By developing a unique operating system based on customer service and
Caliber Acquires AutoPride
Caliber Collision Centers announced their expansion in Florida with the acquisition of AutoPride Collision Repair Centers on Sept. 19. AutoPride Collision has been an industry leader for more than 15 years in FL and has six locations in Southwestern FL. Steve Grimshaw, Caliber Collision CEO announced, “AutoPride has consistently delivered unparalleled customer satisfaction and industry-leading operational consistency in Florida for many years. We are very excited to add these new members to the Caliber family.” “Our teammates have delivered high quality service while giving back to the people and communities they’ve served. We are pleased that Caliber Collision will offer our associates a bright future, with continued involvement in our local communities,” said Joseph M. Formica, Jr., President of AutoPride Collision. Wth the addition of the six centers, Caliber will now operate 10 locations in FL. “Our acquisition of AutoPride Collision increases Caliber’s network to 197 locations as we continue to grow into the collision repair provider of choice throughout the nine states that we serve,” said Mark Sanders, Caliber Collision Centers’ President and COO.
environmental responsibility, Pull-APart has transformed what was once thought of as the junkyard into a sustainable recycling business. Since its founding in 1997, the company has made an exceptional commitment to resource conservation, waste reduction and pollution prevention, earning acclaim for outstanding corporate and environmental citizenship from a number of federal, state and local organizations. “The management of end-of-life vehicles in Tennessee directly affects air quality, water purity and the volume of waste in state landfills, and Pull-A-Part, at its three Tennessee locations, prevents water pollution, reduces waste sent to landfills and conserves resources,” said Amy G. Martin, Associate Vice President, Environment & Energy Tennessee Chamber of Commerce & Industry Tennessee Manufacturers Association. “PullA-Part sets the standard for handling and recycling end-of-life vehicles because of its intentional commitment to resource conservation, waste reduction and pollution prevention.” Automobiles are the leading recycled product in the United States, and Pull-A-Part developed an innovative reclamation and recycling process that reduces the amount of waste from each end-of-life car by 21 percent when
Brevard, FL Dealerships Renovate and Expand
Brevard County, FL residents will be seeing new and improved car dealerships popping up around every corner within the next few weeks to months. Locals no longer have to travel outside their county to find a Subaru dealership because of the new Subaru of Melbourne in West Melbourne that opened Oct. 18. Kelly Ford, Rosner Automotive Group and the Boniface Hiers Automotive Group in South Brevard are all making upgrades and additions. These grand openings and renovations at the end of the year are just in time for 2015 arrivals and 2014 sales. On October 1, Indian Motorcycle of Melbourne opened in a former showroom on the Rosner Chevrolet property. New and old Indian motorcycle models as well as pre-owned cycles from other manufacturers will be sold. The grand opening is planned for November. In North Brevard, the Pat Fischer Nissan dealership in Titusville just started a long-term renovation project that will involve an overhaul of both its used-car facility and its new-car facility, according to reports by Wayne T. Price and llana Kowarski, floridatoday.com.
4 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
compared to typical shredded vehicles. In addition, since the beginning of its operations in Tennessee, the company has recovered more than 40,000 mercury switches from old cars in Tennessee and delivered them for recycling. This figure represents 54 percent of all mercury switches recovered in the state. Each switch, if not recycled, has the potential to contaminate 132,000 gallons of water above the U.S. EPA drinking water standard. Pull-A-Part’s mercury switch recovery in Tennessee, alone, has prevented the potential contamination of more than 5.5 billion gallons of the state’s water equivalent to a 170 acre lake, 100 feet deep. As part of its process, Pull-A-Part also saved approximately 200,000 tons of CO2 equivalent in Tennessee. “Pull-A-Part traces its roots to a business begun 106 years ago, when our family member, Morris Cohen, began buying used appliances and scrap, cleaning them up and selling them or their components for a modest profit. Even then, our business was based on the value of reclamation,” said said Ross Kogon, President and CEO of the company. “Pull-A-Part is proving that in the 21st century, environmental stewardship, customer service and financial sustainability are equal components of a successful business.”
SE Tops List of States With Most Energy Efficient Cars
According to a new study from personal finance website WalletHub.com, Florida ranks as the most energy efficient state when it comes to cars. The study, conducted in light of National Energy Awareness Month, compiled data from the U.S. Census Bureau, the National Climatic Data Center, the Energy Information Administration and the Federal Highway Administration to determine the “carrelated energy efficiency for each of 48 states,” according to reports by Matt Mauney, orlandosentinel.com. Alaska, Hawaii, and the District of Columbia were excluded due to a limited amount of data. According to Mauney, the rankings were determined by comparing the annual vehicle miles driven in each state with the amount of gasoline (in gallons) consumed. Southeastern states lead the U.S. in this category, with Florida in the number one spot, followed by North Carolina and Alabama. However, in other energy efficiency departments, Florida doesn’t do so hot. The Sunshine State is ranked 17th for overall energy efficiency, 37th for home energy efficiency, and 27 out of 48 for least energy expensive states.
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 5
$350K Grant to Hillsborough College’s Training for Transportation & Diesel
A U.S. Census report revealed that Tampa Bay, FL ranks last among the country’s 25 largest metro areas when it comes to median household income. This prompted U.S. Rep. Kathy Castor (D-Tampa/St. Petersburg, FL) to reveal on September 24 that investments in transportation and related job training will help provide a pipeline to higher wage employment. “The Tampa Bay community must stay focused on boosting higherwage jobs. The $350,000 economic development grant to Hillsborough Community College from the U.S. Department of Commerce Economic Development Administration will help create a new training initiative for jobs in the transportation sector and diesel technologies,” announced U.S. Rep. Castor at the HCC Training Center in Ybor City. The grant will help fund renovations for 7,800-square-feet of existing space that will house the new Diesel/Marine Diesel/Transit Training Center. HCC already provides workforce programs for auto body collision repair and welding. “We are delighted that the EDA has made a second investment in HCC,” said Dr. Ken Atwater, HCC president.
FL Event Showed Off the Latest EV Models
On September 20, more than 300 people braved the rain and gathered in Melbourne city hall in Florida to examine the latest electric vehicles on the market. The event was part of a weeklong campaign throughout the United States and Europe to promote the benefits of electric vehicles. The benefits of the electric vehicle are not only geared toward the environment, but also the customers' wallet. Florida Power & Light, which carries more than 70 hybrid bucket trucks and over 500 other hybrid vehicles, was a major sponsor of the event and supporter of electric car benefits. The showcase in Melbourne, FL was organized by the Space Coast Electric Vehicle Drivers club, and featured high-end electric vehicles as well as economy models. The yellow Tesla Roadster, BMW i3 and Porsche Panamera S E-Hybrid were the most popular vehicles, according to Scott Gunnerson at Florida Today.
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“The grant will help continue to build a sustainable workforce for our community. Transportation and logistics is an imperative component of our region’s economic vitality. Programs such as the automotive, welding and a future diesel mechanic program will help fill the need for local highly trained workers.” The Florida Agency for Workforce Innovation’s 2014-2015 report projects the need for qualified technicians and mechanics for aircraft, automobiles, buses, trucks and other diesel vehicles at approximately 2,000 annually for the Tampa Bay region. The same report also projects a mean salary of about $19/hour for bus and truck mechanics and diesel engine specialists. “In the Tampa Bay area there are more than 130,000 commercial vehicles with diesel engines, and at some point they all need to be serviced. The industry is running out of the very people we need to fulfill these very important needs,” said Oscar Horton, CEO of Sun State International, a local full-service truck dealership. See more at: http://www.noodls.com /viewNoodl/25206055/kathy-castor /us-rep-castor-announces-350keconomic-development-grant#sthash.wvzeTYVv.dpuf
GreenTech Automotive Completes New MS Plant
GreenTech Automotive (GTA), a U.S. automotive manufacturer of environmentally friendly, energy-efficient vehicles, announced that construction is complete on its new production facility in Tunica, Mississippi. “GTA has made significant progress toward our engineering, production, hiring and industry partnership goals in recent months,” said Charles Wang, chairman and CEO of GTA. “We’re eager to move into our new, permanent manufacturing home in Tunica and begin production there as soon as possible.” With construction on the new facility complete, GTA is making final preparations in the building’s interior and has started moving equipment from its pilot manufacturing facility in Horn Lake, Mississippi. The company expects to celebrate the facility’s grand opening and begin vehicle production there in the fourth quarter of 2014. The Tunica facility will produce MyCar, a two-seat neighborhood electric vehicle that produces zero emissions, provides segment-leading range per charge, and can be recharged via a common 110V wall outlet, a 220V wall outlet, or fast charging stations.
6 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
First CarMax Location Opens in Mississippi
CarMax, the largest retailer of used cars in the US, officially opened its first store in Tupelo, Mississippi located at 3147 Tom Watson Drive. The store is more than 8,000 square feet, occupies more than five acres and stocks more than 100 used vehicles. To celebrate the Tupelo store opening, CarMax is donating $2,500 to The Family Resource Center. This nonprofit was selected by local CarMax associates for the educational support it provides for local children and the positive impact it’s making on families within the community. The CarMax Foundation also awarded a $5,000 grant to the Boys & Girls Club of North Mississippi’s Power Hour homework assistance program. In addition, The Foundation awarded a Natural Disaster Grant of $5,000 to the American Red Cross to support their Northeast Mississippi Chapter cleanup efforts from the recent tornado damage. These local contributions also came at the recommendation of Tupelo CarMax associates. The CarMax Foundation has granted more than $20 million on behalf of associates across the country since 2003.
ABRA Raises $10,000 for Children’s Hospital in TN
ABRA Auto Body & Glass announced on October 14 that it helped raise more than $10,000 during the third annual Gaylord Springs Charity Golf Tournament to benefit Monroe Carell Jr. Children’s Hospital at Vanderbilt in TN. Over 130 golfers and guests gathered at the Gaylord Springs Golf Links in Nashville, Tennessee on August 21, 2014 to support Monroe Carell Jr. Children’s Hospital in Nashville, TN. "We are excited and honored to receive this generous donation from ABRA Auto Body & Glass," said Chris Lee, associate director of Children’s Ambulatory Services. “Monroe Carell Jr. Children’s at Vanderbilt is committed to identifying cures and better treatments for the children in our community, and this donation will help us provide the best possible care to our patients and families.” The third annual golf event is part of Monroe Carell Jr. Children’s Hospital’s initiative to offer worldclass treatment to every child who comes to the hospital. No child that needs services is denied care on the basis of limited ability to pay.
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 7
Demolition Derby Gears Up for November Fair in GA
Industry enthusiasts across the southern states will be traveling to Albany, GA to participate in the 19th annual Demolition Derby this November. The event will be held at the Southwest Regional Fair in conjunction with Albany’s Exchange Club Fairgrounds. On Nov. 8, the Demolition Derby will begin at 7:30 p.m. Admission is included in the general fair fee. Drivers who want to participate in the derby have to fill out a simple application and pay an entry fee of $75, according to reports by Brad McEwen, albanyherald.com. The Demolition Derby features three qualifying heats and one final round. It usually takes around two hours to complete. The cars that are entered are divided into equal number qualifying heats, according to McEwen. Five to six cars are picked after each heat to continue to the final event, which features 15 to 20 cars. First place will be awarded $2,000, second place $750 and third place $500. The derby will also give awards for Best in Show. First place Best in Show will win $250 and second place $150, as well as trophies.
GA Dept of Driver Services Encourages Safer Driving
The Georgia Department of Driver Services is launching a campaign to encourage parents of teen drivers to talk to their children about safe driving. The “5 to Drive” campaign coincides with National Teen Driver Safety Week, which runs Oct. 19–25. The campaign urges parents of teens to talk to them about safe driving and to set rules before their teens hit the road. The department says the campaign addresses the five most dangerous behaviors for teen drivers. It gives parents five rules to share with their kids: 1. No Drinking and Driving. 2. Buckle Up. Every Trip. Every Time. Front Seat and Back. 3. Put It Down. One Text or Call Could Wreck It All. 4. Stop Speeding Before It Stops You. 5. Observe Passenger Restrictions.
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$2 Million Grant to Auto Programs in LA, AL, MS by Jeff Matthews, thetowntalk.com
Central Louisiana Technical Community College will use a $2 million grant to revive its program training vehicle technicians. CLTCC partnered with three other institutions: Lawson State Community College in Birmingham, AL; Atlanta Technical College; and Copiah-Lincoln Community College in Wesson, MS, to secure $10 million in funding. “Today’s transportation vehicles are modern and highly sophisticated,” said CLTCC Chancellor Rodney Ellis. “Our local employers have voiced concerns about a shortage of qualified technicians, and we worked to find a solution. Because of this grant, we will be able to work with numerous employers to train and produce auto body, mobile medium/heavy equipment/diesel, marine and motorcycle repair technicians.” The decision to go after funding to bring back or expand automotive technology and transportation-related programs came from several conversations Ellis had with local employers when he took over at CLTCC. “They talked about all the money they were spending to train their staff,
as well as all the money they were spending to recruit and train new technicians,” he said. Talking with colleagues at other institutions, Ellis found they were having similar issues. With the idea that “we could make this so much more powerful if we do this collectively,” Ellis said, the four schools formed the Southeastern Transportation Network. CLTCC will begin offering programs at its Alexandria and Leesville campuses in the 2015 spring semester. The goal is to expand to some of the other campuses starting in the 2015 fall semester. “We are excited about this training initiative because it means there will be trained individuals in our area to select from when filling these types of positions,” said Clint Murphy, general manager of All-Star Toyota in Alexandria. “Currently, we have to travel outside of Central Louisiana to find skilled labor, which is not our preference. We have good-paying jobs right here, and we want to hire our local workforce.” “The $2 million grant is a great victory for CLTCC and countless others who worked very hard to secure these funds,” said Rand Alford, owner of Alford Motors in Leesville.
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8 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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Sherwin-Williams EcoLean™ Workshop
Sherwin-Williams Automotive Finishes held its EcoLean™ Level 2 workshop Oct. 21-22 at the “World Center of Racing” in Daytona Beach, FL, at the iconic Daytona International Speedway. The EcoLean Level 2 workshop is an extensive, two-day course that further implements the SherwinWilliams message educating shop owners on the connection between environmentally sound business decisions and the reduction of process and environmental waste. It is exclusively designed to educate attendees about maximizing profitability by improving productivity and eliminating waste throughout their facilities. “The EcoLean journey is all about helping collision centers drive profitability and productivity, while reducing their environmental impact,” says Greg Eisenhardt, SherwinWilliams A-Plus™ NetworkMarketing Manager. “After attending the session, participants will leave the two-day event with tangible tools to increase the quality, production output, and profitability of their businesses. EcoLean courses have been built by some of the sharpest minds
in the collision repair industry, and will afford collision repair professionals the opportunity to relax in the company of industry peers, and learn from one another over a two-day period. The EcoLean Level 2 workshop curriculum included: ● Understanding the importance of a comprehensive repair; ● Discovering a tactical, shop level approach to lean implementation; ● Specific steps to drive down errors and redundancies found in a traditional estimate; and ● Methods on how to decrease missing, wrong, damaged parts within traditional production activities.
For more information about the EcoLean Level 2 workshop online, visit www.sherwin-automotive.com/ ecoleanwp.
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Service King and MetLife Auto & Home Awarded Youth Villages Family With Refurbished Vehicle
Service King Collision Repair Centers partnered with MetLife Auto & Home and Youth Villages to present a refurbished Honda Odyssey to a local family in need on Monday, October 6 at the Service King Nashville Golf Tournament. This was Service King’s third presentation this year as a part of the National Auto Body Council’s Recycled Rides program. “Reliable transportation is pivotal in many of our lives and something we easily overlook,” said Chris Abraham, Service King CEO. “We are honored to offer our time, services and resources to assist such a wonderful family. While this vehicle will be a means of reliable transportation, our wish is that it provides long-lasting benefits.” Youth Villages, a private nonprofit organization dedicated to helping emotionally and behaviorally troubled children and their families live successfully, nominated the Ward family to receive the refurbished vehicle. Robert and Brandie Ward and their five children were in attendance to accept the donation. “We are extremely grateful to be
receiving this new van,” said Robert Ward. “Transportation has been a huge burden for our family, and we’re thankful for this gift. Youth Villages has had such an impact on our family, and we’re thankful for all the work they do for our community.” Youth Villages nominated the Wards after working alongside the family for three years. Robert, a Desert Storm veteran who injured his back on duty, supports his family of seven on disability checks while continuing to surpass doctors’ expectations throughout his recovery. The vehicle donation comes through MetLife Auto & Home who has been a Recycled Rides partner for four years. “It is humbling to know that through MetLife Auto & Home’s partnership with the National Auto Body Council we’re able to make a positive difference in a family’s life,” said Richard Ward, Director, MetLife Auto & Home. The National Auto Body Council has donated more than 800 vehicles through the Recycled Rides program since its inception in 2007.
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Continued from Cover
MSO Consolidations
swered, “the answer is ‘yes.’ ” Fast forward to the present time Roberts told Autobody News, “In the last 24 months nearly $3 billion of sales volume in the collision repair industry has changed ownership, which is 10 percent of the entire industry.” Roberts is currently the Managing Director and Automotive Services Group team leader for FOCUS Investment Banking. He said there are several reasons for this sudden acceleration, including the availability of acquisition capital and the number of MSOs looking to sell. “There are more than 44 MSOs with $20 million or more in revenues with another 110 between $10 and $20 million.” “Consolidators are looking to get bigger and achieve more scale, which has rewards for the acquirers as well as for insurers and consumers,” said Roberts, whose company has offices in Atlanta, Los Angeles, and Washington D.C. “Large insurers have increasingly rewarded the best performing consolidators and large MSOs with more volume. Cars are repaired faster, with less hassle, and more predictable costs and quality.” We asked Lillian Maimone, former CEO and co-founder of Marco’s Collision Centers, for her perspective on the industry. She was excited about her upcoming retirement, saying, “Marco and I have nothing to do and all day to do it, and we like it that way. It’s a wonderful sense of freedom and piece of mind.” “Seeing the trends in the new cars and the new equipment that was Lillian Maimone necessary to repair these cars, I saw ourselves having a very difficult time competing against the consolidators. We knew it would cost my company hundreds of thousands of dollars in new equipment and training,” While running Marco’s, which was established in 1972, Maimone said her primary function was ensuring the company was ready and geared for the future. “My focus was on dealing with possible threats and opportunities,” she said. In order to stay informed about
Vincent Romans of MSO Specialists The Romans Group on Consolidation Autobody News asked Vincent Romans, the founding partner of The Romans Group LLC, to comment on the recent MSO consolidations. Romans has over 30 years of consulting and operating experience with domestic and global enterprises. The Romans Group LLC, established in 1996, provides business, market, financial, and strategic development advisory services to the property and casualty auto physical damage insurance, automotive services, property restoration, and related supply chain segments. Why are we seeing an increase in the number of consolidators acquiring MSOs and do you think this trend will continue? We are at the early stage of consolidation, contraction, convergence and constructive transformation in the collision repair industry. Within this industry construct, private equity has stepped up its interest in acquiring MSO consolidators. This interest is backed by unprecedented private equity and strategic buyer cash seeking investment opportunities in the MSO model which today provides strong cash flow, growth through both organic and acquisition growth and shorter term investment cycles that ultimately drive higher valuations. How will it affect the collision repair industry? We will continue to see large multiple location operators (MLOs) be acquired by the four MSO consolidators. The still
trends in the industry, Maimone regularly attended conferences, talked to industry leaders and listened closely to what others were saying in forums such as the Mitchell webinars, for example. “I went to Pepperdine’s business school [and used those skills in analyzing the industry.] I spent a lot of my time looking at what is happening in the industry and how it was affecting my company,” she said. Eventually she and husband Marco decided they “didn’t want to be in the game anymore.” When employees asked why they sold, she explained, “We were the powerhouse in our area. We were the big fish in the little pond.” With the changes in the industry and larger MSOs coming in, she said they realized how increasingly difficult it would be to compete. For example, the benefits they gained as a midsize DRP over the years were no comparison to the gains made by the national DRP programs. She invited her employees to consider the buying opportunities with the national DRP accounts, rather than local ones. “I figured whatever percentage See MSO Consolidations, Page 31
10 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
fragmented industry will continue to contract to a more normalized number of required collision repairers throughout the United States over the next decade. Today, three collision repair segments, ≥$20M, ≥$10-20M and the franchise multiple location, MLO, operators represent 24% of the US collision repair market. I expect this market share for these three segments to grow over the next three years. Additionally, we should shortly see the first MSO with annual revenue of $1.0B. Through September YTD 2014 we have seen $650.0M in annual revenue transferred through multiple location transaction acquisitions among the four MSO consolidators. What are the relevant issues facing the collision industry today? There are numerous trends and prevailing conditions that offer both risk and opportunity for repairers today. No one trend or prevailing condition has the impact that the confluence of these prevailing trends and conditions have. It is when one understands that these individual prevailing conditions are part of a confluence of many individual dynamic prevailing trends and conditions, that you start to realize the order of magnitude and the exponential impact they have and will continue to have on the new world order of collision repair within the broader auto physical damage ecosystem. We will continue to see how one company's transformation is an-
other's disruption, while one company's innovation is another's disintermediation. Some of the short and long term conditions include, but are not limited to changing macro-economic influences, globalization, consolidation causing industry structural changes, telematics and the movement to an integrated electronic claims process model, accident avoidance technology associated with semi-autonomous and eventually autonomous vehicles (VEHBOTS), private equity and strategic buyers, predictive analytics, down turn in accident frequency, MSO performance contracts, hybrid claims management models, insurers embracing the MSO model, trained technician shortage, parts procurement, repair segmentation, urbanization and others too numerous to mention here. How does an independent shop fit in the picture? Independent high performance, brand recognized shops will continue to provide solid alternatives to the large MSO consolidator model especially with insurance companies that embrace their own customized repair models and prefer to have non-MSO providers in the market or a mix of MSO consolidators and local market independents. Additionally, specialty repairers who perform any number of niche market or high value repair alternatives will have a place in the future collision repair industry. See Vincent Romans, Page 31
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 11
Southeast Associations
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.
LaCIA Holds September Member Meeting, Hosts AG Caldwell with Chasidy Rae Sisk
On the evening of Tuesday, September 16, the Louisiana Collision Industry Association (LaCIA) gathered in
ited and inspected by OSHA within the next three years. LaCIA will post this list to their website for future use.
scheduled for Thursday, October 16 at the Marriott in Metairie, and Alysia Hanks, Executive Director of LaCIA,
Lafayette/Alexandria area, and she emphasizes, “it is so important that all of our members attend this meeting so
Baton Rouge for their first meeting since July. Speakers at the meeting included Billy Easterling of ERS, Inc. who presented on OSHA compliance requirements and Attorney General Buddy Caldwell who updated attendees on the status of the lawsuit he recently filed against State Farm regarding the insurer’s steering practices. The evening began with Easterling’s presentation on OSHA compliance. He handed out an informative packet which contained a helpful checklist for shops to use as a guideline. He also offered a free walkthrough to the shops present, and several shops signed up to have ERS, Inc. visit their facilities to ensure that they are not engaging in any OSHA violations that could result in fines or employee injuries. Easterling also distributed a safety and compliance alert containing a list of shops scheduled to be vis-
Next, Attorney General Caldwell and several members of his staff provided an update on the status of their lawsuit against State Farm. Caldwell informed the group that State Farm is attempting to get their lawsuit consolidated with the others currently in Federal Court, but Stacie deBlieux, Assistant Attorney General, believes that they will be successful in their efforts to return the suit to the state of Louisiana where it belongs. The Attorney General’s office is still in the discovery phase of gathering information and has promised to provide the association with a list of the information needed to help them prepare for the case. They have also established an online complaint form for shops to complete and submit; this form can be found at: www.ag.state.la. us/InsuranceComplaints.aspx. LaCIA’s next meeting has been
is excited to announce that renowned industry speaker Mike Anderson will be in attendance to present to attendees. Hanks has also tentatively scheduled the last meeting of the year for Saturday, November 15 in the
we can discuss the board and agenda for next year.”
Students Gain Practical Experience at NC Body Shop
Thanks to a new agreement between Randolph Community College (RCC) and Petty’s Garage in Asheboro, NC, Richard Petty’s high performance speed shop in Level Cross, five Randolph Community College students were able to participate in a unique job-shadowing experience. Petty’s Garage technicians spent a week training three Automotive Systems Technology students and two Collision Repair & Refinishing Technology students. RCC has been affiliated with the Richard Petty brand since its state-
of-the-art automotive training center, named the Richard Petty Education Center, opened in 2009. According to the RCC instructors, Jacob Garner of Robbins, Jacob Brown of Ramseur, Jake Flinchum of Seagrove, Justin Lackey of Trinity, and Israel Velazquez of Asheboro were selected based on interest, availability, and grade point average. Greg Steadman, shop foreman at Petty’s Garage, said the students work on whatever current jobs are in the shop at the time of the internship.
12 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 13
Atlanta I-CAR Committee’s 6th Annual Rockin’ Car Show by Chasidy Rae Sisk
On Saturday, August 16, the Atlanta ICAR Committee held their 6th Annual Rockin’ Car Show at the Hooters restaurant in Kennesaw, GA. Beautiful weather and an excellent turnout of over 55 custom vehicles contributed to a successful event. The awarded trophies and prizes were donated by local collision repair industry businesses as a show of support for the event. The Atlanta I-CAR Committee also held a 50/50 raffle and a silent auction, raising over $3400. The proceeds from the event will benefit the Collision Repair Education Foundation (CREF), and funds will be used to support GA students. Over the past six years, the Atlanta I-CAR Committee has donated approximately $100,000 to CREF in funds raised at their annual golf tournaments and car shows. Terry Fortner, Chairman of CREF’s Board of Directors, attended the car show to discuss CREF’s mission with attendees. For the second year in a row, Travis Peck, lead deejay of Radigital Studios, donated his time and skills
to provide music and entertainment at the Committee’s event. He also plans to support the Rockin’ Car Show again next year. During the Rockin’ Car Show, a presentation was held to award a check to the student who was the winner of the Atlanta I-CAR Scholarship for postsecondary collision education, and both collision instructors from Maxwell High School of Technology were in attendance as well. They also recognized the Skills USA student who received travel expense assistance from the Atlanta I-CAR Committee which allowed him to attend the national contest. Gerry Poirier, Chairman of the Atlanta I-CAR Committee, states “the committee’s goal is to help replenish our dwindling technician base and our fundraising has been accomplished by the support of the many great collision industry businesses in the area, including shops, insurers, parts suppliers, paint manufacturers and rental partners.”
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14 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
Service King Donation in FL
Service King Collision Repair Centers and Esurance donated a newly refurbished 2011 Ford Focus to the family of Monika Stevens & Jody Barker through Family Promise of Sarasota. The vehicle donation is part of Recycled Rides, a unique program developed by the National Auto Body Council in which insurers, collision repairers, paint suppliers, parts vendors and others collaborate to repair and donate vehicles to deserving individuals and service organizations in local communities throughout the country. The Ford Focus was presented to the family in Oct. wrapped in a giant bow. “Reliable transportation is something many of us take for granted,” said Scott Ward, Service King’s Regional Vice President Southeast Operations. “We are proud to offer our time and resources to transform lives and touch families and organizations across the country. While the gift of a vehicle provides a practical means of transportation, what it really provides is hope.” Monica, Jody and their nine-yearold daughter relocated to FL as Jody lost her job. Using their savings for a motel until he and Monica found work again, the family soon ran out of money and came to Family Promise of Sarasota. Both found jobs shortly after entering the program.
Couple Charged in Own Shop Fire
Sandra Blake, 59, was charged with making a false claim for insurance purposes after a fire destroyed her and her husband’s body shop Aug. 6. Her husband, Thomas Blake, hired Ernest Smith to set fire to their business, Blake’s Auto Sales in Norway, SC. According to Richard Walker of thettandd.com, “Thomas Blake and Ernest Smith have both been charged with four counts of third-degree arson. Thomas Blake also faces a count of criminal conspiracy. A church and store were also damaged.” Thomas and Smith have outstanding convictions and fines
FL Auto Insurance Prices Online
New rates from FL auto insurance companies have been added to the quotation system that car owners can access at http://quotespros.com/auto-insurance .html. Car owners who utilize the automated system for locating new rates will be expected to provide a Florida zip code. The portal now matches agencies to motorists using the zip code data. The coverage database at QuotesPros.com provides the option to seek rates for more than collision type policies. Owners of vehicles can still find SR22, full coverage or collector plans from agencies.
Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision 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.
Energy transfer in today’s vehicles makes measuring, multi-point pulling more important Some industry observers estimate that only about 20 percent of vehicles in collision repair shops are actually being measured as part of the repair Richard Perry process. Richard Perry, who oversees training for Chief Automotive, believes that changes in vehicle materials and structure mean
that at least four times that percentage should be measured. “If that vehicle is impacted, it should be measured,” Perry said. “We usually know what’s going to happen with the damage; we just don’t know the extent of it, where all it’s gone, how far did it travel through the vehicle. You’ve got to be able to find it to fix it. So before the repair we need to analyze what’s wrong to develop a repair plan. During repair, we need to
Richard Perry of Chief Automotive discusses the value of multiple-point pulling during a recent demonstration in the shop at Chief’s headquarters in Madison, Ind.
provide, almost half of our business is there,” Cranfill said. Vehicle Services Group (VSG) is itself a segment of Dover Corporation, a global producer of equipment, systems and services in a variety of businesses. In addition to Chief, VSG brands include Rotary Lift and Elektron welders. It has about 1,200 employees in the U.S., Germany and China. Its measuring, pulling and welding equipment sales each account for about
21 percent of its overall revenue, but its single biggest revenue source is the vehicle measuring data it sells directly to collision repairers and also to the estimating system providers. Does Chief collect data on the vehicles that shops are measuring with its equipment? “We do not collect it,” Bob Holland, VSG collision director for North America, said. “With our licensing agreement, we
Company sees itself as source of information as much as equipment
If you still think of Chief Automotive as primarily a pulling equipment company, think again. Mike Cranfill, vice president of global collision and new business development for the Vehicle Services Group (which includes Chief Automotive) said changes in the company’s revenue sources reflect changes in the industry itself. “I like to think we’re an information company, because if you take the training, the measuring equipment and the data we
measure multiple points, and monitor those during repair because as you start to make repairs, more than one point is going to move at a time. We need to monitor all those points.” Perry said in the past, technicians might gauge the extent of the damage by checking to see if the vehicle’s doors open and close; if they did, they felt it was safe to presume the damage had not extended beyond the passenSee Energy transfer, Page 18
have the right to collect it, but we do not.” Cranfill some companies, such as those that offer vehicle history information, may seek that information, but Chief doesn’t share it because the information tells only part of the story. “The risk is: What does it mean?” Cranfill said. “Even if the data shows the car measurers to factory specs, can you guarantee the repair was proper? Maybe you used heat when you’re not supposed to.”
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 15
Social Media for Shops Body Shops are Tapping into the Persuasive Power of Video with Ed Attanasio
In a world where we are constantly bombarded by texts, tweets, status updates, and emails, it’s no surprise that many people read fewer books and seem to have some form of ADD. A young person recently told me with pride that he hasn’t read a book since high school. “I like pictures,” he said. So, on a planet where almost everyone has a short attention span, how do we communicate effectively with the masses? The answer for some is through video—short, sweet and to the point. Several body shops have experienced great success by working with the same video production/marketing company and the videos they’re producing are creating a buzz throughout the collision industry nationwide. Absolute Perfection Media (AP Media) in Sykesville, MD, is the company producing these attention-getting videos for body shops. They’re the hottest new video production company serving the collision industry and shops are clamoring to work with them. President Lee Emmons is now working with more and more shops owners who have seen his past productions for Mark’s Body Shop in Baltimore City, MD, and K & M Collision in Hickory, NC. The appeal stems from their direct, no-nonsense approach. Emmons has learned the collision industry along the way, he said, and now he’s known as the “body shop video guy.” “The power of video and YouTube has become apparent and now collision shops want to tell their stories using this format,” Emmons said. “These shops are willing to take on the insurance companies and this is the way they’re doing it. We’re also producing videos to educate their customers about things like certifications and the use of OE parts. These shops have learned that these videos are highly effective and very affordable and we can turn them out rather quickly. Once a shop does a few of these videos and sees the response, they want to do more. I’m traveling to K & M next week to produce a series of videos about their manufacturers’ OE certifications. Some of the videos I’ve produced for body shops have gone viral and gained a lot of national attention, so we’re getting new collision clients all the time.”
The Vice President of Operations at K & M Collision, Michael Bradshaw, has produced a series of videos with AP Media and posts them all on his YouTube Channel. “We have approximately 10 on there right now and maybe five more in production. We take an educational
great feedback about them from our customers,” Bradshaw said. “Insurance adjustors also tend to see them too!” Mark Schaech, Jr., is the second-generation owner of Mark’s Body Shop in Baltimore City, MD. He started working with Emmons at AP Media several years ago.
Lee Emmons of AP Media shooting a video for K & M Collision in Hickory, NC, featuring their receptionist, Caitlin Adams
approach to many of the consumer-related issues in this industry, including titles such as, Has Your Car Been Repaired Safely (Watch this case and stay safe after an accident)?; Do You Qualify for Diminished Value? (The Insurance Company May Owe you Money); An Epidemic of Unsafe Collision Repairs; Post Repair Inspections; What is Steering?; Who Guarantees Repairs?; and An Open Letter to the North Carolina Attorney General. Short videos with a succinct message have proven to be highly effective, Bradshaw explained, although in some situations longer, in-depth videos also work well. “We were doing longer videos at first, mostly 4–6 minutes in length, but now we’re trimming them down to two minutes and our most recent ones are coming in at 90 seconds. When we’re dealing with certain subjects, the longer videos work just fine, but we also produce shorter ones to convey the message quickly and present the topic in a way that the viewer can absorb easily.” If you’re getting your car fixed by K & M Collision, you’ve probably seen one or more of the shop’s videos. “We loop all of them together and show them on a monitor in our reception area at the shop and we’ve gotten some
16 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
“We have now produced at least five videos with AP Media and they’re being seen by shops all over the country,” Schaech explained. “We let shops use them, as long as they give us an outbound link. These other owners are realizing that these short videos are effective, because they can easily convey the information that we want to communicate, because this is a very complex industry and the average person doesn’t really know what’s going on.” Schaech, 41, took over the business from his father in 2000 and back then they had six DRPS. But, today they have none and some of their videos document why. “The first one we did with AP Media was about a post repair inspection video and it had immediate impact,” Schaech said. “A Mazda had been repaired by another shop under an insurance company’s DRP and it See Power of Video, Page 46
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Continued from Page 15
Energy transfer
ger compartment. But vehicle manufacturers have strengthened both the lower and upper structures of vehicles, further reducing the impact of visible damage to the passenger compartment. “I’ve seen some vehicles that had straight-on impacts at 50 mph, yet you can open and close the doors like factory,” Perry said. “The passenger compartment does not react they way
Lee Daugherty, global data product manager for Chief Automotive, points out the type of measuring data available through the company’s LaserLock system
it used to. But that energy is still going somewhere; something further back in the vehicle has to give to absorb that
energy. So that old way of thinking, of not measuring everything, results in overlooking something. That’s why we need to measure the entire vehicle each time.”
Jerry Ralston explains the final assembly processes that Chief frame equipment undergoes at the company’s Madison, Ind., headquarters
Perry believes eight measuring points is the minimum that should be used to ensure all the damage is located, though the total number will depend on the severity of the impact. Start with four on the center structure of the vehicle, he suggests, then one on each of the front and rear corners of the vehicle. When it comes to pulling, multiple towers allow more precise movement, he said, given that damage can be in three directions: lateral, vertical and length-wise. “The more hook-ups you can put
on at your initial pull, the more that damage is going to come out the way it went in,” Perry said. “But you need to be monitoring it as you pull so you know you’re going in the right direction.” Multiple pulling also reduces the amount of force used at any single point. “If you put more combined force on a vehicle but less at each location by doing multiple simultaneous pulling with equalized pressure, you can repair a lot of things that you couldn’t before because you’re not going to rip and tear it,” he said. “You’re not going to damage and distort it because you’re not putting as much pressure at each location.” Perry shared his measuring and pulling concepts while working on an actual damaged vehicle during a recent demonstration in the shop at Chief’s headquarters in Madison, IN. Among the features of the company’s “LaserLock” measuring system he pointed out was the dual monitors that allow a technician to have both measuring information and OEM repair information readily accessible. “The OEMs used to sit on the sidelines because who knew better
about repairs than anybody else? The technician,” Perry said. “After all, he’d been doing it for 20 years, and things hadn’t changed that much. But with the many changes to vehicles
Bryan Brown demonstrated the newest Elektron welder during a recent media tour of Chief Automotive’s headquarters. Elektron and Chief are among the brands owned by Vehicle Services Group, based in Madison, Ind.
today, who knows most about a vehicle now? The OEMs. They designed it. They engineered it.” That said, Perry believes another advantage of using Chief measuring See Energy transfer, Page 19
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GCIA’s 18th Annual Golf Tournament
Continued from Page 18
Energy transfer
by Chasidy Rae Sisk
On Wednesday, October 1, the Georgia Collision Industry Association (GCIA) held their 18th Annual Golf Tournament at the Trophy Club of Atlanta, located in Alpharetta GA. Executive Director Howard Batchelor says, “we had 105 people show up for a beautiful day of golf, and I believe all of the attendees really enjoyed themselves.” For a registration fee of $100 per golfer, attendees received breakfast, lunch, and unlimited drinks and snacks, in addition to 18 holes of golf and a chance to receive a plethora of door prizes donated by the event’s sponsors. Sponsors for the event in-
cluded Stone X, Computer Logic, Georgia Dent Resolution, Guide One, Hertz, Infiniti of Gwinnett, Mitchell, Osborne BodyWorks, StopDRP.com, Three Eaves Realty, Sports & Imports, All Star Auto Lights South, Enterprise, LKQ, ACS, 3M, Hennessy Lexus, Akzo Nobel, Axalta, BASF, FinishMaster, PPG, Service King and Single Source.
GCIA will be donating $2000 of the proceeds raised at the golf tournament to a local auto body school to help them purchase tools and equipment. The remainder of the proceeds will be utilized to fund the association’s various meetings and events.
data is that the company doesn’t just use OEM build data but actually measures vehicles off the tires and in clamps just as is done in shops. That ensures the system offers more accurate, real-world measuring data, he said, because such a set-up takes into account the slight sagging the front and rear of a vehicle does when it is up in clamps. Perry said another key message to technicians in his training is that measuring is almost always the solution to challenging repairs. “If you can’t figure out what the problem is, take more measurements,” Perry suggests. “You’ll find it eventually. You’re just not measuring far enough. You’re not taking enough points to identify all the damage.”
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Gas Monkey Garage and Dodge Recruit Mötley Crüe to Rock Dallas with Ed Attanasio
Richard Rawlings loves fast cars, pretty women and having a good time all the time, so it was a no-brainer when the Fast N’ Loud star opened his own bar about a year ago, followed by the purchase of a concert venue in October. The Gas Monkey Garage brand is spreading throughout the country and now, Rawlings has headquarters where he can combine food, music, libations and cars. In conjunction with Rawlings and Dodge, Charger, Challenger and Viper owners are about to get the show of a lifetime in Dallas on Nov. 1. The dealers will convene at Gas Monkey Live to attend a concert featuring Mötley Crüe, while dining on Gas Monkey Burgers, Bock Battered Chick Fried Steak, 3-Cheese Truffled Mac and Red Chile Grits. It’s a oneof-a-kind highly exclusive event open to Dodge owners looking to have an amazing time while showing off their vehicles to fellow gear-heads. Head of Dodge Marketing & Communications, Mark Malmstead, is excited about the upcoming concert and the chance to partner with Rawlings and Mötley Crüe for this unprecedented event.
what’s out there and he has an edge. As we sat down with him and got to know him better, we decided to do more with Richard. So, he appeared for us at the Woodward Dream Cruise in metro Detroit recently and everyone went crazy.”
Mötley Crüe will be performing at a Dodge owner-only event which is part concert and part car show on Gas Monkey Live on Nov. 1 in Dallas
Rawlings and his show couldn’t be any hotter. Discovery Channel currently airs Fast N’ Loud in 80 countries worldwide. The reality TV star has also opened another Gas Monkey Bar N’ Grill in the international terminal of Dallas/ Fort Worth Airport. If the Gas Monkey restaurants continue to do well, Rawlings says he wants to open “15 or 20 more.” He and his team are currently scouting for location No. 3, which will likely be out of
tent, so Tim Kuniskis (Dodge and SRT brand CEO) made it happen, basically to get Rawlings to stop asking.” Dodge was pleasantly surprised when it all came together, Malmstead said. “If we can get Mötley Crüe to play at a bar, which they normally don’t do and celebrate our 100th anniversary with a big owner party at Gas Monkey Live, we thought wow. It started out as a crazy idea and now it’s happening. The band was a little reluctant at first and they had to move a few dates around, but then they finally said yes.” Cars, cars, cars will be an integral part of the evening and many of them will get as much attention as Mötley Crüe, according to Malmstead. “We’re hoping for 2,000 people and 1,000 cars, both vintage and late model Dodge Challengers, Chargers and Vipers. People can get thrill rides in a Dodge Viper drift car and a Dodge Challenger SRT Hellcat that night as well. We’re going
“We’re big fans of Fast N’ Loud and we met with Richard Rawlings and The Discovery Channel at the SEMA show last year and started discussing the idea of working together. We talked about an in-show placement, which has yet to air and Richard has done some dealer commercials for us. The relationship has just continued to evolve from there. We love the way Richard Rawlings operates, because his show is a little different than
the area, but still in Texas. How did the band, the man and the brand all come together for this one-of-a-kind event? “Dodge is currently sponsoring Mötley Crüe’s Farewell Tour,” Malmstead said. “Last month, Richard purchased Gas Monkey Live, a music venue that was formerly owned by country star Toby Keith. So, Richard asked us, ‘Can you get Mötley Crüe to play at my new place?’ He was pretty insis-
20 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
For Dodge Challenger, Charger and Viper owners who want more information about the event, visit: www.dodgerocksgasmonkey.com.
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to provide show parking that night, because the event is foremost a car show. You must own one of these vehicles to attend and you have to send in a photo of it, but the event is free for owners.” Mötley Crüe has been rocking the world for 33 years, and is still going strong. Rock stars Vince Neal, Tommy Lee, Micki Sixx and Mick Mars are all car crazy. Earlier this year the video for Mötley Crüe’s classic “Kickstart My Heart” was re-released with new Dodge scenes added. The video for country music star’s Justin Moore’s version of the ballad “Home Sweet Home” (from the Nashville Outlaws: A Tribute to Mötley Crüe album) also showcases a 2015 Dodge Challenger Scat Pack parked outside the club.
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Auto Wrecks Dramatically Rise in Charlotte, NC Charlotte, NC’s latest report shows a jump in car wrecks. The heavy rain last year coul have been a contributing factor. Year 2013 2012 2011 2010 2009 2008
Miles driven 19.8 million 19.6 million 19.1 million 19.7 million 20.3 million 22.1 million
Collisions 20,957 14,514 15,147 15,799 17,648 22,401
The number of vehicle crashes in Charlotte increased significantly in 2013 compared with 2012, despite people driving only slightly more miles, according to a recent city report. Vehicle collisions were up 44 percent, with 20,957 in 2013 compared with 14,514 in 2012. The total number of vehicle miles driven in 2013 was 19.8 million miles, which is only 1 percent more miles than in 2012. On the upside, the number of fatal collisions was 43 in 2013 compared with 44 a year earlier. Information from Steve Harrison, charlotteobserver.com.
Leading Collision Industry Experts in FL Hold Events
Proactive and innovative body shop owners will have an opportunity to learn about critical business issues and trends impacting their businesses. Upcoming collision industry events are being held around the country by a group of industry experts. The most recent event was on October 21 at the Hilton Garden Inn in Tampa, FL. The speakers included Mobile Estimating Technology by Mitchell, Car Rental Technology by Hertz, Repair Planning by BASF, Aluminum Repair: Some Facts and Myths by 3M, Collision Industry Overview by FinishMaster, and Insurance Industry Trends by CARSTAR. “When you’re an independent body shop owner, it’s hard to take the time to step away from your business to look at longer-range changes and developments in the industry,” said Mark Algie, Business Development Manager for 3M Automotive Aftermarket. “This Collision Industry program provides a great way to understand how the changing marketplace will impact your business, and plan now for those changes!”
NC Automotive Instructor Awarded Trip to SEMA Society of Collision Repair Specialists (SCRS) provided a Mega-Prize all expenses paid trip for two to SEMA at the 100% Advisor Reception in June 2014. The package included: two VISA gift cards for airline expenses, two hotel rooms, two passes to the 2014 SEMA Show, and two full-series passes to the SCRS Repairer Driven Education (RDE) series. Automotive Instructor Sandy Martin of Starmount High School in Boonville, NC was the winning advisor who had joked only minutes before the winning announcement that his friends could give up because he would be the lucky recipient. “I’ve never won anything before,” shared Martin. “I was just kidding around and then it became real! I’ve read all about the work SCRS is doing at SEMA, and I’ve seen the show on TV and in all sorts of magazines. I’ve always wanted to go, but never thought that I would have the opportunity to attend it. This is such a great opportunity to take in and be able to bring back to my kids this year. I’m speechless with gratitude. SkillsUSA is such a rewarding program to even be able to participate in, and then to walk away with more opportunities like this; it’s just indescribable.”
In addition to the Mega-Prize, all student competitors and sponsoring schools will be receiving a complimentary one year membership to SCRS so that they can remain connected to the ongoing activities within the industry. “SkillsUSA is so very appreciative of the support of the Society of Collision Repair Specialists in awarding this outstanding opportunity to one of our collision repair technology instructors,” said Executive Director of SkillsUSA Tim Lawrence. “Because of SCRS, this teacher will gain knowledge and updates directly from the industry that would be challenging to attain at the local school level. Updating our instructors is of paramount importance to SkillsUSA as we depend heavily on our industry partners to guide instruction, use of technology and the latest techniques used in the field for our school training programs. Industry partnerships are truly the lifeblood of SkillsUSA and how we keep our programs, competitions, classrooms and labs in line with real world needs and SCRS stands tall in making this process a reality.” “It’s an honor to know through our prize package with SCRS that we can help expose these advisors – and sub-
sequently their students – to the latest and greatest the automotive and collision repair industries have to offer,” added VP, Events and Communications for SEMA Peter MacGillivray. “There is an amazing world of opportunities in this industry, and the more we can do to help advisors see them first-hand, the better equipped they are to develop students’ interest in the automotive field.” For other collision repair instructors who have an interest in attending and participating in SCRS’s Repairer Driven Education series at the SEMA Show, the association has partnered with the show to offer educators a significantly discounted full-series pass to the education programs. Qualified educators who make arrangements directly through Juliet Marshall, Education Administrator for SEMA, at Julietm@sema.org will receive full access to all SCRS RDE regular sessions for only $50. Admission into SCRS’s OEM Collision Repair Technology Summit will also be discounted to $50 as well.
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Nationwide Ray Gunder Labor Rate Surveys Announced
“Any kingdom divided against itself is laid waste; and any city or house divided against itself will not stand.” In this Biblical truth lies the power behind Ray Gunder's passionate drive—to unite the collision repair shops of America, according to National AutoBody Research. In the past, the collision industry has been fragmented and divided, making it vulnerable to the suppression of labor rates. The Nationwide Gunder Surveys will serve to unite shops as one national body to reveal the toll that the stagnation and suppression of labor and material rates has taken on auto body shops across America. The surveys coupled with National AutoBody Research's (NABR) Variable Rate System provide collision repairers an opportunity to reverse the past trends of seriously deficient levels of labor and material rates. As a result, NABR has contracted with FL body shop owner Gunder to conduct a series of nationwide real-time labor and material rate surveys beginning Oct. 2014. The surveys will originate in the states of Florida and Georgia and shortly thereafter extend to every state in America.
22 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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The Honda and Acura Dealers Listed Here are HONDA ALABAMA
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Davie
Buford/Gwinnett
800-264-1739 256-382-3759
888-893-4984 407-521-1115
877-544-2249
678-318-3155
Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com
Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com
Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com
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South Motors Honda
Milton Martin Honda
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Miami
Gainesville
Birmingham
D e land
800-987-0819 205-949-5460
800-758-0007 386-626-1811
888-418-3513 305-256-2240
770-534-0086 678-989-5473
Dept. Hours: M-F 7:30-5; Sat 8-3 mpowell@serrahonda.com
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Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com
Nalley Honda
GEORGIA FLORIDA
AutoNation Honda Clearwater C l e a r wa t e r
Ed Morse Honda
Carey Paul Honda
R i v i e ra Beach
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800-232-1098 561-844-8089
888-205-2564 727-530-1173
Dept. Hours: M-F 7:30-6; Sat 7:30-5 tonyrocha@edmorse.com
Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com
Headquarter Honda
AutoNation Honda Hollywood
800-497-2294 407-395-7374
H o l l y wo o d
800-542-8121 954-964-8300 Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com
Braman Honda of Palm Beach G re e n a c re s
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Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com
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877-706-2021 941-752-2123 Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com
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Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com
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Dept. Hours: M-F 7:30-6; Sat 8-4 Hondadaytonaparts@hendrickauto.com
Honda Mall of Georgia
Union City
770-985-1444
866-362-8034 770-306-4646
Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com
Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com
Ed Voyles Honda
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Marietta
Savannah
800-334-3719 770-933-5870 Direct
888-785-8387 912-925-1444
Dept. Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles.com
Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com
Gerald Jones Honda Augusta
800-733-2210 706-228-7040 Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com
MI S S I S S I P P I
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800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com
Gwinnett Place Honda Duluth
NO . C A R O L I N A
800-277-8836 678-957-5151
Apple Tree Honda
Dept. Hours: M-F 7:30-6; Sat 8-5 gphwholesaleparts@hendrickauto.com
800-476-9411 828-684-4400
Asheville
Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com
ACURA ALABAMA
FLORIDA
GEORGIA
GE O R G I A
Jerry Damson Acura
Duval Acura
Jackson Acura
Huntsville
J a ck sonville
Roswell
Savannah
800-264-1739 256-533-1345
800-352-2872 904-725-1149
877-622-2871 678-259-9500
800-347-0596 912-232-3222
Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com
Dept. Hours: M-F 7-7; Sat 8-5 cecil.adams@duvalacura.com
Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com
Dept. Hours: M-F 7:30-6; Sat 8-2 Tim.johnson@acuraofsavannah.com
Rick Case Acura
Nalley Acura
FLORIDA
Acura of Orange Park J a ck s o n v i l l e
888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com
F o r t L a uderdale
Marietta
800-876-1150 954-377-7688
800-899-7278 770-422-3138
Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com
Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com
24 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
Southern Motors Acura
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Flow Acura Winston-Salem
800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com
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VIRGIN I A
Burlington Honda
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Bill Gatton Honda
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800-822-5108 336-584-3431
336-841-6200 Dept. Hours: M-F 7:30-6; Sat 8-3
800-868-4118 423-652-9545
Dept. Hours: M-F 7:30-6:00; Sat 8-1 parts@burlingtonhonda.com
Crown Honda Southpoint Durham
855-893-8866 919-425-4711 Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com
Hendrick Honda Ch a r l o t t e
800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com
Leith Honda Raleigh
800-868-6970 919-790-8228 Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com
McKenney-Salinas Honda Gastonia
888-703-7109 704-824-8844 x 624 Dept. Hours: M-F 7:30-5:30 parts@mshonda.com
Metro Honda Ind i a n Tra i l
866-882-9542 704-220-1522 Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com
NO. C A R O L I N A
SO. CAROLINA
Breakaway Honda G re e n v i l l e
800-849-5056 864-234-6481 Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com
Midlands Honda Columbia
877-273-4442 803-691-8585
Dept. Hours: M-Fri 7-6 Sat 8-5; Sun 10-4
Wolfchase Honda
Priority Honda
Bartlett
Chesapeake
800-982-7290 901-255-3780
757-213-0539
Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com
Hampton
Colonial Honda
757-838-1672
Chester
Dept. Hours: M-F 7:30-6; Sat 8-5 jarmentrout@priorityauto.com
Piedmont Honda
Dept. Hours: M-F 8-7; Sat 8-4 rreese@i95honda.com
Anderson
TENNESSEE
Airport Honda Alcoa
800-264-4721 865-970-7792 Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com
AutoNation Honda West Knoxville
Duncan’s Hokie Honda Christianburg
800-979-9110 540-381-3200 Dept. Hours: Mon-Fri 7:30-5:30 Sat 8:00-5:00 rthompson@duncanauto.net
Hall Honda Virginia Beach
800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com
Knoxville
Valley Honda Staunton
800-277-0598 540-213-9016 Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com
West Broad Honda Richmond
800-446-0160 804-672-8811 Dept. Hours: M-Thu 7:30-6:30; Fri 7:30-6; Sat 8-3; Sun 11-3 wbhonda@aol.com
For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com
800-824-1301 865-218-5461 Dept. Hours: M-F 7:30-6 rossd1@autonation.com
NO. CAROLINA
Dept. Hours: M-F 7:30-6; Sat 8-5 jwilliams@priorityauto.com
Priority Honda
VIRGINIA
800-564-9836 804-414-1960
Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com
Woodbridge
703-690-7777
Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com
Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com
800-849-5057 864-375-2082
Hendrick Honda Woodbridge
VIRGINIA
VIRGIN I A
Hendrick Acura
Performance Acura
Crown Acura of Richmond
Ch a r l o t t e
Chapel Hill
Richmond
Falls Church
800-768-6824 704-566-2288
888-788-7301 919-942-3191
800-523-4411 804-527-6865
800-550-5035 703-824-5785
Dept. Hours: M-F 7:30-6; Sat 8-5 justin.taylor@hendrickauto.com
Dept. Hours: M-Th 7-7; Fri 7-6; Sat 8-5 performanceparts@hendrickauto.com
Dept. Hours: M-F 7:30-6; Sat 8-5 thoover@crownauto.com
Dept. Hours: M-F 7:30-6:00; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com
Leith Acura
Radley Acura
Karen Radley Acura
Cary
Woodbridge
800-868-0082 919-657-0460
800-355-2818 703-550-0205
Dept. Hours: M-F 8-6; Sat 8-4:30 parts@leithacura.com
Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 25
Historical Snapshot
—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.
DRPs 20 years ago, Early CCRE, ADP Revises Labor Times with John Yoswick
Recently I read an article that was critical of industry leaders who had not taken a stand against DRPs. It brought to mind a discussion I once had with (a member) who said there are things associations can do that make some members happy, but that don’t mean anything. He called it “feel good stuff.” For association leaders to denounce all DRPs when half or more of their membership participate in direct repair programs would be nothing more than “feel good stuff.” It feels good to those who are not DRP shops, but what about those member shops who chose to go DRP? It’s very easy to criticize associations that have a neutral position on DRPs, but what would happen if they came out against them? The best any association can do is to rally against the abuses where they exist; to support legislation that protects a consumer’s right to choose the repair facility; and to do what it can to advise its mem-
bers on how to determine if DRPs are a wise business decision for them. There are a number of individuals, some of them leaders, who continue to yell about DRPs without offering any real solutions. But regardless of what they have said, it’s the collision repair professionals who have voted by making the business decision whether to participate in these programs. All the yelling in the world won’t eliminate DRPs. Those of you who can’t accept that reality can keep yelling, or your can roll up your sleeves and go to work on the 65 percent of business that will never be DRP. Learn how to better market your business and sell collision repairs. Bury the DRP bogeyman and get to work. It’s in your best interest. – From an editorial by John LofJohn Loftus
tus, then the executive director of the Society of Collision Repair Specialists (SCRS), published in Collision Expert. Loftus retired from SCRS in 2000.
15 years ago in the collision repair industry (November 1999) Mike Melfi said the Coalition for Collision Repair Equality (CCRE) was founded about three years ago as an organization to help like-minded shops owners around the country “take back control” of their businesses and reduce insurer influence over the industry. It was incorporated as a for-profit company so that it would never have to divulge a list of its members (which the organization refers to as “sponsors” or “clients”). About 80 people – including about a dozen attorneys – attended the group’s recent meeting in Phoenix. “These attorneys are just now realizing that there’s money to be made in property damage litigation,” said Ann Spink, a Louisiana shop owner
and vice president of CCRE. “We believe that legislation and education is part of the answer but litigation is the bottom line. The reason CCRE exists is to try to put together the documentation and the expert witnesses to help these attorneys understand how to litigate for us. And because they’re class action attorneys, we don’t have to pay them, just help educate them.” Shop owner Melfi told CCRE participants he had predicted the first nonOEM parts lawsuit “victory” would take two years. “It took three years,” he admitted. “But now I have another prediction. If steering continues, one day on the 6 o’clock news, you’re going to see an executive of an insurance company in handcuffs being put in a federal marshal’s car being charged with federal racketeering.” – As reported in Parts & People. The non-OEM parts lawsuit victory Melfi referred to was the $1.1 billion
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judgment against State Farm in 1999, which the Illinois Supreme Court overturned in 2005. A class action lawsuit filed in Illinois earlier this year alleges that seven of the Top 10 insurers violate federal racketeering laws by illegally conspiring to use their direct repair programs and other means to enforce “an artificial market value for collision repairs.”
10 years ago in the collision repair industry (November 2004) A widespread and significant drop in ADP refinish labor times discovered in recent weeks will be corrected in ADP’s November CD update release, which the company says has been sent to ADP customers. “The operational issues with the refinish times in the October CD are revised in the November CD,” Scott Jenkins, senior director of “Estimating Solutions” for ADP said. “The November CD is consistent with the September CD. If the user did not load the October CD, they were not impacted. We are instructing our customers to load the November CD immediately upon receipt.” The October CD included many decreased refinish labor times of 10 percent or more. Refinish times for 2000-
2004 Ford Taurus hood, for example, dropped from 3.9 on the September ADP CD to 3.4 on the October CD. Times for a 1999-2004 Pontiac Grand Am fender dropped from 2.4 to 1.9, and the front door time for a 1999-2004 Chevy Cavalier dropped from 3.1 to 2.8. Although some have looked for some sort of intent behind the widespread reductions, ADP, while avoiding using the term “mistake,” maintains that the problem was an “operational issue,” not an attempt to shave labor times. “Some of our clients have experienced an operational issue regarding refinish labor on hoods, doors, fenders, roofs, decklid/tailgates and back doors,” Peggy Adams, operations manager for client services for ADP, wrote in an email response to questions about the October CD. “All new estimates created with the November CD reflect the updated refinish labor. We apologize to our clients for any inconvenience we may have caused.” The issue has resulted in a flurry of email activity between shops and industry organizations since it came to light in early November. Part of the concern was fueled by the fact that various ADP personnel were giving conflicting - or, at a minimum, ambiguous
- responses to questions about the labor time changes. An ADP tech support employee, for example, told one ADP shop customer in the Pacific Northwest that the revised times were based on “new time studies” ADP had done. – As reported in Autobody News. Prior to shops accessing the estimating database information over the Internet, the system providers sent monthly updates to the data to shops on compact discs. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006.
5 years ago in the collision repair industry (November 2009) In the transcript of a small claims appeal trial involving two of customers of G & C Auto Body of Santa Rosa, Calif., California Superior Court Judge James Bertoli took State Farm to task for its rate survey process and arguments regarding reasonable repair costs. Shop owner Gene Crozat’s customers had won after filing small claims court cases against State Farm insureds when the insurer refused to pay all of G & C’s charges. The insurer appealed both cases, and the court heard the two appeals together over two days.
Bertoli said State Farm could use whatever method it specified in the insurance contract to determine a reasonable price in first-party claims, even if they determined that price, “by reading chicken entrails, and consulting with the three witches from MacBeth (which is) just about as accurate as the survey itself is. I think that survey from a statistical standpoint would get a first-year college student a flunking grade.” But in a third-party case, the judge said, a reasonable charge “implies a range of charges” and “no particular charge can be said to be the only reasonable charge.” He said State Farm did not try to establish that G & C’s rate was unreasonable, and it appears to fall within a reasonable range of prices. “Quite frankly with regard to the third-party claims, this Court does not believe they should have been litigated,” Bertoli said in finding for Crozat’s customers. “I think the answer is clear, and I quite frankly see it as an effort on behalf of the insurer to try and suppress the price charged by someone outside of their range.” – As reported in CRASH Network (www.CrashNetwork.com), November 16, 2009.
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Southeast Associations
No Fear for GCIA!
with Chasidy Rae Sisk
On Thursday, September 25, members of the Georgia Collision Industry Association (GCIA) gathered at the DoubleTree Hotel in Marietta, GA for a special presentation by Barrett Smith, President of Auto Damage Experts, Inc. Smith discussed the presence of fear in the collision repair industry and how it impacts business decisions in an attempt to educate industry professionals on this rarely mentioned but all-pervasive issue. Smith’s presentation, entitled “FEAR,” explained how the emotion of fear can be elicited by conditioning. Smith explains, “for decades, many in the collision industry have been paralyzed by fear. Not because the collision industry is full of cowards and scaredy-cats; quite the contrary, the industry is comprised of fearsome competitors with huge egos and a sincere desire to serve their communities. No, reasonable people don’t invest hundreds of thousands and, for some, millions of dollars into a business because they’re scared…no, the fear many shop owners experience is generally due to their lack of knowledge and understanding in matters that are pertinent to their business and the threat by outside interests harming their business by their efforts to undermine and harm repairers who don't fall in line with their desired manner of conducting business.” Though the collision repair industry first became involved WITH insurance companies in order to work with them for the consumer’s benefit, this has become an effort to survive despite them, and for some, the fear of being seen as working against insurers has led to working FOR them to ensure the continued survival of their businesses. Smith believes that the majority of repairers are honest, hard-working individuals, but fear of this third-party entity has compelled many to abide by insurers’ demands to avoid conflict. Unfortunately, over time, “the mandates, concessions, discounts and omissions of reasonable and necessary processes becomes greater and great until, one day, the shop wakes up and realizes they have virtually given their business away to the point that they have little profits,
huge liabilities, and fear of the future,” Smith states. Smith went on to explain that fear develops from anxiety and uncertainty about the future, but fears can be reduced with knowledge, tools, conviction, confidence and experience. This process begins with gaining the knowledge to see fear for what it is, determining the best way to confront it, and then defeating it. In order to defeat fear, you must utilize the tools at your disposal, such as viable consulting, your state laws, industry associations, business knowledge and other readily available resources, and by gaining the conviction that you are doing the right things for the right reasons. From there, it’s simply a matter of sticking to these methods in order to gain experience and confidence. Another tool that Smith strongly encourages shops to use is the Variable Rate Survey (VRS) as a way “for repairers to learn what their true cost of doing business is and to show where they are placed among their peers and competitors. Suggesting that all repairers should be compensated the same, regardless of their level of training, certifications, equipment and capabilities, is at best ludicrous. The only effective way to combat this intent by outside third-parties to lump all repairers together is to have independently ascertained data to dispel, combat and show where your shop lies among others in your market area. I can assure that the cost will be literally pennies on the dollar as far as investment vs. return…but like any “tool”, you must use it, and use it effectively, in order to gain the benefits and ROI.” Of course, the predicament the collision repair industry finds itself in did not occur overnight. Initially, insurance companies sought out quality repair facilities, but after a while, “insurers began ‘conditioning’ the shops by implementing new policies and procedures,” Smith notes, comparing this to the way the behavior of young elephants is modified by binding their legs with rope until even a simple string can keep them captive. “The elephant could easily break the string but has convinced himself that the re-
28 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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.
straining force is greater than his own strength. So he gives up in defeat… Just like the baby elephant, repairers have been conditioned over the years to believe they must ‘keep in line’ and can’t depart from it out of fear of reprisal and the fear of being steered from and against… and ultimately, the failure of their business.” So how can the collision repair industry undo what has been done over so many decades? It begins by understanding what has happened and recognizing that it cannot be cured overnight. For the solution, Smith turns to the Parable of the Boiling Frog – if you place a frog into a pot of boiling water, it will jump out immediately; however, if the frog is placed in water that is slowly heated, it will not recognize the danger until it is too late. Smith believes, “this parable illustrates how people should make themselves aware of gradual change before they suffer the catastrophic
consequences. So it goes with the insurance industry in gaining control over the collision repair industry.” Now, the collision repair industry needs to un-boil the frog, beginning by understanding what is happening and getting out of the pot before it’s too late. Smith lists the following ten steps to un-boiling the frog:
1. Know there is a better and more profitable way 2. Know that others have been successful 3. Know they didn’t accomplish it overnight 4. Know it takes commitment to be successful 5. Know that you can take the necessary steps 6. Know that you must be honest and ethical 7. Know that you must provide quality repairs See No Fear for GCIA!, Page 36
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market and OEM parts, Fowler said that his opinion has changed. Previously, he believed it should be the customer’s choice whether or not to use aftermarket parts, but because most consumers don’t understand the differences and implications of using these parts, he now feels that it is the collision repair professional’s responsibility to educate the consumer. He reiterated that “testing proves that aftermarket parts do not always perform the same as genuine OEM parts.” In response to the radio hosts’ question about whether “imitation parts” have been implicated as the cause of any accidents, Eaves unambiguously stated that the use of poor quality aftermarket parts has caused a multitude of accidents across the country. Unfortunately, few people are aware of this concern because these settled cases included confidentiality agreements to prevent them from becoming public knowledge. Furthermore, as many parts, including windshields, tires and airbags, directly affect the safety of the vehicle, investment in parts is more crucial than ever. According to Eaves, YouTube features many videos on how aftermarket parts affect vehicle safety, and documentaries are currently being filmed on this issue as well.
Continued from Cover
Memphis Radio
try that insurance companies often attempt to take control at the accident scene, moving the damaged vehicle against the consumer’s wishes and trying to coerce the vehicle owner to agree to having the repair completed at one of their DRP shops. Although the consumer has the right to choose where their vehicle is repaired and it could easily be argued that the insurers are taking advantage of their customers, it is easier and cheaper for insurance companies when they get their way, as they often do in these situations. When questioned about why insurers are so adamant about steering despite the possibility of being sued, Eaves noted that insurers profit greatly by this practice as the benefits to them outweigh the risk; this is the reason his pending lawsuit and other lawsuits are necessary. Fowler reminded listeners that this is a battle the collision repair industry has been fighting for 25 years, but it has come to a point where quality repair shops will go out of business if nothing is done to “rectify this travesty.” Moving on to the topic of after-
cautioned that it is a red flag if the insurer insists on dictating where the vehicle is repaired, and this could indicate that the insurer is engaging in other unsavory practices, such as mandating which parts are used in the repair. Though vehicle manufacturers provide specific repair information to maintain a vehicle’s safety, Fowler said he has experienced firsthand that some insurers will demand used parts be installed, even though both he and the manufacturer warned that such a practice could compromise the vehicle’s safety. Despite insurers’ tendency to use intimidating in their interactions with both consumers and repair facilities, Fowler states, “there are shops that try to do what’s right, but they are vilified, disparaged and essentially squeezed out of business.” Eaves agrees that it is imperative for consumers to trust the facility repairing their vehicle as their lives are being placed in the hands of these professionals, and a poor quality repair jeopardizes the safety of the consumer, their family and anyone else on the highway. The importance of finding a trustworthy repairer is so great that Fowler founded www.safecars.us, a website that promises to place the con-
Eaves is not optimistic that the lawsuit will go to trial quickly, but he is prepared to fight this battle for quite some time if necessary, noting “this is bigger than just a lawsuit; it’s a campaign!” Part of this campaign includes asking Congress to support legislation to restore the proper balance of power between the insurance industry and the collision repair industry. As precedent for his request, Eaves cited the Consent Decree, a similar situation in the 1960s when insurance companies tried to dictate which parts could be used and how much they would pay for repairs. The U.S. Department of Justice sued the insurance industry, and the resulting ruling was that insurers cannot force collision repair facilities to compromise the quality of their repairs. Thus, the balance of power between these two industries was restored if not enforced. Eaves said he hopes that his current efforts will yield the same results for the modern collision repair industry. Directing his attention to what consumers can do to aid in this battle, Fowler reminded consumers that they have the right to choose the facility that repairs their vehicle, and he encouraged them to act on this right by taking their car to whichever shop they prefer. He
See Memphis Radio, Page 44
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MSO Consolidations
of claims would drop as a result of that is enough to make me know that we will be in trouble,” she said. “My employees are better off this way,” said Maimone. “Several have been given a promotion and better opportunities. I couldn’t give them that.” Shortly after acquiring Marco’s, Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. With these additions as well as the 62 Sterling Collision Centers the company acquired earlier this year in April, Service King now has 191 shops in 20 states, including 18 in CA. Service King, based in Dallas and founded nearly 40 years ago, told Autobody News that, due to company policy, they weren’t able to comment further until their acquisition of Carwest was finalized. However, Service King released the following statement: “Our recent Sterling Autobody acquisition and Marco’s Collision Centers acquisition serve as a platform for our growth in
the California market,” Chris Abraham, the CEO of Service King, said in the press release. “The addition of Car West and their 360 teammates will give us an even greater footprint in the heart of Silicon Valley. We are excited to have the team on board and look forward to delivering the ServFarzam Afshar ice King standard file photo of exceptional customer service and high quality repairs in these communities.” “People are selling because of many different reasons,” said Farzam Afshar, CEO of VeriFacts Automotive, a well-respected training company that describes itself as the industry’s only “independent onsite quality verification service and in-shop technician assessment provider.” One reason, Afshar said, “is that they able to get a very high rate of return on their investment. In addition, business owners increasingly need to compete with consolidators in their backyard while vehicles are becoming more complex. See MSO Consolidations, Page 37
Continued from Page 10
Vincent Romans
Some of these models might include various types of repair segmentation; e.g. aluminum or other new material/technology, fleet, small hit expedited repair, paintless dent repair, cosmollision, ethnic market, and car auction repair. As MSO consolidators gain in the breadth and depth of their reach and coverage in markets around the country, insurers will look to balance their local market networks with strong performing and recognized branded independent operators. The balance of power will be normalized as long as the independent’s metrics and service offering are comparable to the MSO consolidator. Insurers also want to have local market independents and MSOs competing with the MSO consolidator so that the best peer performance is always being established in a market among all current and prospective repairers. What is the benefit/challenge of being an MSO vs. a single-location shop when forming a relationship with insurance companies? MSO consolidators and many non-consolidator MSOs have the personnel, sales/marketing structure and budget to frequently call on insurance company corporate decision makers as well as multi-level contacts regionally. They participate on insurance company advisory or re-
view boards which brings them to the table for input, old business and new concept discussions, and collaboration on current and future business process and performance models. They develop multi-level personal relationships that help when issues need to be resolved quickly. However, if service deteriorates somewhere in the country for a larger MSO it could have negative ramifications across their national footprint or some other regional market of theirs. The MSO consolidator offer insurers broader multiple market coverage than smaller MSOs and independents. However, local market MSOs and independents can and do market that they provide that laser focus local market performance that insurers want. Many independents and local market MSOs position and market themselves as high performers relative to the MSO consolidator in their geographic niche. A strong recognized brand with top performance metrics relative to a MSO consolidator can give the independent and local market MSO a competitive edge when vying for insurer DRP business. MSO consolidators are also offering self-managed and co-managed capabilities for customized and new DRP models, quality assurance and self-audit process and procedures, call centers, and single point of contact, all of which helps reduce costs for the insurer while positioning the MSO consolidator for business that the independent operator may find more difficult to secure.
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On Creative Marketing
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
Are You Marketing to Merely Survive or Are You Trying to Grow? with Thomas Franklin
By now most shop owners and managers have realized that when it comes to marketing, one size does not fit all. Franchises and multiple shop operations that account for about 15 percent of the shops in the U.S. are in a position to approach marketing from an entirely different perspective from the independent shop owner. But 72 percent of the shops are still independent, single-location shops and many of these shops market just to keep surviving. The question then becomes, what do you mean by “grow?” Growth by cloning or opening other locations is more of an operational strategy than a marketing proposition. Real growth for an independent shop is simply about getting more vehicles in the door and enjoying more profit on every job. Franchises and MSOs can afford to advertise just to build name recognition to try to drive business to any shop in the group. But few independents can afford to spend marketing dollars solely on building name recognition. A marketing plan has to differentiate a shop from the competition and provide a strong reason to select that shop over all the others. A recent article in Inc. Magazine might suggest one way to do that. A software company originally called “37 Signals” changed it’s operating philosophy and changed its name to “Basecamp,” the name of a project management product that represented 87 percent of their sales and 90% of their recent growth. This reminded me of a strategic move made by Colonel Harlan Sanders
when he was operating a small chain of fast food operations with about 100 items on the menu. He was having serious trouble trying to grow so he hired a consultant named David Thomas. The first thing Thomas did was cut the menu down to a handful of items and renamed the franchise operation, “Kentucky Fried Chicken.” From there on, the growth was phenomenal. Now obviously most shops can’t eliminate any of the steps needed to restore a vehicle back to pre-accident condition, but they can always choose what they want to emphasize in their marketing. And this may be the key to convincing the buying public that this shop is the right one for them. If you decide to try this approach to marketing, the next question is “what to emphasize?” Paint specialty shops like Maaco have already begun to capture some of the body work that independent shops rely on, but they keep paint as their central focal point. While any shop is free to make refinishing quality their main marketing emphasis, there may be reasons to choose a different emphasis. One big advantage an independent shop has over franchises and MSOs is the very fact of their uniqueness. While these other shops may have a cookie-cutter sameness look, the independent shop owner can individuate any way he or she chooses. I’ve seen a number of shops that emphasize the family aspect of their business. Photos of several generations of owners adorn the walls, the website and any ads. The
Cars were burned and an auto repair shop damaged when it caught fire on Oct. 15. The fire occurred at A1 Auto Care Center in Miramar, FL, during the early morning hours. Two Honda Civics parked in the bay area where the fire started, each estimated at $50,000, were a total loss, according to reports by Erika Pesantes, sun-sentinel.com. The owner, Azhar Mohammad, said they were used for racing. Other damages include the emblem on the hood of a green Mercedes Benz, which was melted off and reduced to a small silver puddle. No one was injured.
The Women’s Industry Network (WIN) is kicking-off their 2015 Membership Drive. WIN membership is annual and based on a calendar year. Their goal is to reach 400 members by 2015. WIN is focused on engaging women in the collision repair industry through education, networking and sharing of resources. This year’s drive will include several outreach opportunities. A membership drive drawing for new members, renewing members and referrals, and an added grand prize of one free 2015 WIN Education Conference Registration Fee will all be part of the festivities.
Fire at FL Shop Damaged Cars
WIN 2015 Membership Drive
32 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
emphasis, of course, is “we care more because for us it’s personal.” Another key factor in marketing emphasis choice is shop location. A shop in Silicon Valley or other hightech region may thrive best with an emphasis on the technical aspects of collision repair. A contemporary focus on hybrids and exotic metal repair specialties could communicate well in an area like this. In an entirely different direction, I ran across a shop in horse country that emphasized a specialty in working on horse trailers and larger transport vehicles. In an age like ours where big box stores have become the norm, a lot of people choose to look for vendors who understand their particular niche in life. Choosing which of these to focus on brings us back to the question, do you want to market to just survive, or do you want to really grow? Whatever you decide to emphasize in your marketing, to make it a
growth proposition calls for an all out effort. For example, a shop located in an area where campers and large SUVs are commonplace might choose to emphasize oversize frame machines and larger spray booths able to accommodate them. To make this a growth move, the shop would have to display these capabilities more prominently with colorful photos and stories of exceptional jobs on the website and literature. But they would have to go beyond this to go out and be involved in trade shows, vehicle shows, club presentations and more. Choosing an emphasis that encompasses a lot of people opens up an entire horizon of opportunities to get out and connect with prospective customers. Not every shop owner is comfortable with this kind of glad-handing, but if the real growth is out there to be gotten, it’s worth while hiring someone with the skill to go out and get it.
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Northeast Associations 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.
SafeCars Hosts Meetings Around the Country to Discuss Insurer Interference and National Lawsuits Though Halloween is just around the corner, witches, ghosts and vampires aren’t the scariest things on the minds of collision repair professionals across the nation this October; what these experts find terrifying is the amount of undue influence the insurance industry, a third-party entity, exerts on their repair practices and their businesses as a whole. Given the number of lawsuits that have been filed against insurers in 2014 alone, this isn’t anything new, but the collaboration of a group of industry professionals in order to combat this issue has led to the creation of SafeCars, an organization dedicated to the premise that “every vehicle owner deserves a safe and complete repair.” As such, SafeCars has organized a series of meetings across the country to engage other collision repair professionals in the discussion to determine the best way to combat insurer interference in their industry. Ron Perretta, owner of Professionals Auto
Body in Altoona, PA and one of SafeCars’ organizers, took time to explain their goals and what they have next on the agenda. “The purpose of these meetings is to discuss the issue of insurer interference in general, but it is also about bringing shops together to answer any questions they have on the current litigation.” SafeCars hopes to explain the differences between several national lawsuits that are currently pending. The first is a class action lawsuit. The second, the complaint Attorney John Eaves Jr filed against multiple insurers on behalf of 21 shops in January 2014, is the pending MDL litigation which Perretta hopes shops will be inspired to participate in. Perretta and other members of SafeCars believe that the collision repair industry has been badly suppressed over the years. Some of the issues they hope to address are static labor rates, the improper use of procedure pages in
estimating systems, the prevalence of insurer steering, and the overall influence of the insurance industry in collision repair businesses across the country. On September 20, SafeCars hosted a meeting at the Holiday Inn in Fort Washington, PA, and Perretta says, “the meeting went extremely well. At this point, PA has more people involved with this litigation than any other state.” SafeCArs also held a meeting in San Diego, CA on October 11, and they have scheduled a meeting for October 18 at the DoubleTree Hotel in Linthicum Heights, MD to run from noon until 4PM. Speakers for the MD meeting include Perretta, Attorney John Eaves Jr and Tony Passwater of the Indiana Auto Body Association. These are only a few of the meetings that SafeCars intends to hold around the U.S. as they travel “up the East Coast and down the West Coast to in-
form industry professionals of these issues and collaborate to find a solution,” Perretta states, adding “these efforts are way past due.” These free meetings are open to collision repairers and OEM industry vendors. Pre-registration is required, and attendees must provide a business card and photo ID to verify their identify as SafeCars has prohibited insurers from attending these meetings in order to encourage honest dialogue amongst collision repairers and to prevent retaliation against attendees. Explaining why this level of security is necessary, Perretta shares, “I received a phone call from a woman who runs a shop and wants to attend our MD meeting, but she asked if any insurance people will be there because she’s worried they’ll find out she was there getting information. It’s sad when collision repair professionals are so scared that you can’t go where you See SafeCars Hosts, Page 36
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Social Media for Shops Chicago Body Shop’s Anti-Texting Campaign Catches Fire with Ed Attanasio
Admittedly, the owner of a wellknown 80-year-old body shop in Chicago was guilty of texting in his own vehicle himself for several years until he saw more than a few damaged cars in his shop caused by his customers’ lapses in attention while texting. Rather than ignore what is now an national epidemic that causes 1.6 million accidents annually, Bob Gottfred, the owner of Erie-LaSalle Body Shop, decided to start his own antitexting campaign. Erie-LaSalle Body Shop was founded in 1934 and over the years it has become a neighborhood institution in downtown Chicago. “We’re the longest continuously owned auto body of its kind in Chicago and Illinois,” Gottfred explained. “We now have a handful of third-generation customers coming in here and it’s great to hear their stories about when their grandfather or even great grandfather brought his car here decades before. Addition-
ally, we have expanded our service area by acquiring a 30-year body shop on the southwest side of Chicago.”
Erie-LaSalle started getting involved in an antitexting campaign after creating this fire hydrant to raise money for 51 Club, an organization that raises money for families of firemen killed in the line of duty
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Gottfred, 64, had what he described as a “marginal interest” in cars as a kid, so his path to owning a body shop wasn’t part of his life plan, he said. “I grew up working here in the shop as a teenager and to be honest, I wasn’t crazy about it. I had no intention of taking over the shop, but when I came home around Christmas time in 1975, my stepfather told me he couldn’t do it anymore. His health wasn’t very good so he said, ‘If you’re interested -- hop in” or he was going to sell it. So, in January 1976 I started running the business full-time and then eventually bought out my stepfather in 1995.” Today, both of Gottfred’s sons work with him at the shop and eventually the business will belong to them – but not tomorrow, Gottfred said. “Jim (36) and Jay (34) could take over right now and do a great job, because they’ve learned the business and they’re ready. They’re right at the hand-off point now and I know it would be a seamless tranNO. CAROLINA
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sition, but I’m not quite ready to retire. I currently work on customer acquisition and foster the great relationships we have with the insurance companies and agents, so it works well right now. Opening the new shop in a very different market has also been a challenge. I like to be the rainmaker around here and take a lot of the administrative stuff off my sons’ radar, so that they can concentrate on the most important things, such as quality and customer service.” New proposed anti-texting laws have gained more momentum in this country, most recently led by a documentary called “From One Second to the Next,” a cautionary tale about the dangers of texting while driving. The film was funded by mobile providers AT&T, T-Mobile, Sprint and Verizon and has received major awards and accolades. The genesis of Gottfred’s anti-texting campaign began when he decided See Anti-Texting Campaign, Page 39
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Continued from Page 34
SafeCars Hosts
want to go, be with the people you want to be with, and talk about the things you want to talk about… The last time people acted like this was before Lincoln freed the slaves. This is America, not the Mafia, yet it’s almost like the insurance industry is the Mafia offering their protection to shops but only if we do what they say. We all rely on insurers for business, but if we continue to be scared, our businesses will just get worse. It’s ridiculous for our industry to be at this point, but it’s exactly where the insurers want us.” Ironically enough, Perretta suggests it was “actually a good thing when State Farm tried to jam PartsTrader down people’s throats. It was the straw that nearly broke the camel’s back, and it got a lot of shops up in arms, so State Farm kind of did us a favor by introducing PartsTrader.” SafeCars has also released a video on YouTube, featuring Perretta, to address the “pressing industry issues dramatically affecting you, your technicians, your business, and the safety of your customers.” He explains how both the class action and MDL lawsuits will have a positive effect on the industry and how business is done in the near future. Claiming that collision repair professionals across the country are faced with the same issues, Perretta lists these concerns as follows: suppression of labor Continued from Page 28
No Fear for GCIA!
8. Know that you need the tools for success 9. Know that it won’t always be easy, but right 10. Know that if you’re not having fun…you’re likely doing something wrong! In conclusion, Smith notes, “just as when Toto pulled back the curtain on the Wizard of Oz and saw that he was just a weak old man pulling on a bunch of cables and ropes while speaking into a loud speaker, the fear and unknowing is no longer “All Powerful”. Once one understands that insurance companies are not the "All Powerful” they would like you to believe they are and you learn that In-
rates, steering, manipulation of databases, not using procedure pages as designed, refusals to pay for required procedures, refusals to follow manufacturer guidelines, pressure from insurers to cut corners and use inferior parts that could jeopardize consumers’ safety, intervention into collision repair businesses, interference with agreements shops have with their customers and their vendors, and insurers’ efforts to use intimidation to force shops to comply with their demands lest they be blackballed and targeted. In the imminent future, SafeCars plans to host webinars and teleconferences to explain the benefits to a wider audience of collision repairers, but in the meantime, Perretta encourages anyone who is interested to contact him so he can explain how you can help in more detail. In closing, Perretta pleads, “Please don’t sit on the sidelines and do nothing! Help us take back our industry so we’re able to fix vehicles properly and safely for our customers.” Perretta can be reached on his cell phone at 814-931-7669 or via email at ronperretta@aol.com. For more information on SafeCars, visit: www.safecars.us.
Quest Donates $280,000 in Paint & Abrasives to CREF Quest Automotive Products (QAP) donated $280,000 in paint and abrasives to high school and post-secondary collision school programs across the country through the Collision Repair Education Foundation. The products donated by QAP will allow students the opportunity to practice their collision repair and refinishing skills. QAP is committed to bringing awareness of the shortage of technicians within the collision industry and acknowledge that many collision school programs have budgets that are shrinking each year. “QAP strongly believes in supporting the future professionals within our industry and ensuring they obtain the education that they deserve in order to be successful in the automotive profession,” said David Brunori, President of Quest Automotive Products. “QAP has recently been involved with supporting the Collision Repair Education Foundation through donating product and raising money with its first Artists 4 Education auction, held in the Matrix Automotive Finishes booth during SEMA last year, which raised $25,000 for the Education Foundation. We are proud to be working to-
gether with them again in 2014 with the second annual auction at SEMA this year (booth 10669).” Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “This product donation from QAP will have a significant impact on the collision school programs by providing instructors with the needed material in order to provide a quality technical education for students. We look forward to working together with QAP to raise additional funds through the second annual Artists 4 Education auction at SEMA this year. I would also invite collision industry businesses to follow QAP’s lead in providing both product and monetary donations to the Education Foundation so that we can work towards ensuring that the graduating collision students are ready for entry-level employment within the industry.” Industry members interested in helping high school and/or college collision school programs through the Collision Repair Education Foundation should contact Brandon Eckenrode at: Brandon.Eckenrode@ed-foundation.org or 847-463-5244.
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surers have legal obligations and liabilities, just like you and any other business, and once you know what yours are and what theirs are, it takes a lot of the mystery and unknowing away, and along with it - the fear. If you believe you can’t do it… you’d be right!” Batchelor was pleased with Smith’s message and believes “everyone understood the need to step out of the box, but some may be unable due to insurer influence. Still, if we can educate one shop on how to address this issue, then we have achieved our goal.” GCIA PO Box 1252 Cumming, GA 30028 770-367-9816 www.gcia.org
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MSO Consolidations
“Fixing cars is become more and more challenging than ever before,” said Afshar. “The vehicles are so different now and they may look the same outside but what’s inside is not the same.” With the standards set by the Insurance Institute for Highway Safety (IIHS) and the Corporate Average Fuel Economy, cars need to be lighter but still pass safety re-
quirements. Afshar said another challenge for those in collision repair is employing proper technicians with the right mind set. Afshar, who sold his MSO Sterling Automotive Group in 1998, said technology is moving so rapidly that detailed knowledge, training and equipment is becoming even more necessary for shops to be successful and he encourages technicians to be open-minded and learn new techniques that they’ve never used before.
Chevrolet Debuts Pickup Concept Trucks for SEMA For the last few years, Chevrolet has used the annual State Fair of Texas in Dallas to preview its plans for SEMA, according to an article written by Mark Williams on pickuptrucks.com. This year, the focus of the state fair and SEMA is pickup concept truck parts. The Silverado “Toughnology” reminds customers that aluminum, the latest material-fad of the auto work, cannot compete with the high-strength of steel, which is located throughout
this pickup truck’s frame, cab, body and interior, which, GM has always noted, is “much less cost intensive than more exotic materials.” This concept also showcases GM accessories like unique grille inserts, sidesteps, a hard tonneau cover, a carpeted bedliner, fender-flare accents and tinted headlights. A graphic package, including 20-inch wheels and tires, OnStar 4G LTE with Wi-Fi hotspot capability, a wireless charging mat and Siri Eyes Free, is also included.
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Berkshire Hathaway to Acquire Van Tuyl Group, Largest Privately-Owned Auto Dealership Group
Berkshire Hathaway Inc. and Van Tuyl Group announced on October 2 that they have entered into a definitive agreement in which Berkshire Hathaway will acquire the Van Tuyl Group, the nation’s largest privatelyowned auto dealership group, ranking fifth among all U.S. auto dealership groups. After becoming a part of the Berkshire Hathaway family of businesses, the company will be known as Berkshire Hathaway Automotive. The company will continue to be led by Larry Van Tuyl, who will become Chairman, and Jeff Rachor, who will assume the role of CEO, as well as its experienced senior management team. Berkshire
Hathaway Automotive will be headquartered in Dallas, Texas and continue to pursue its strategy of operational excellence and disciplined acquisition growth, which is the business model the company has pursued for the last 62 years. “The Van Tuyl Group fits perfectly into Berkshire Hathaway from both a financial and cultural viewpoint. Larry Van Tuyl along with his father, Cecil, spent decades building outstanding dealerships operated by local partners. In recent years, he has shared management with Jeff Rachor, a seasoned auto retailer who will retain a financial interest in all dealerships. The Van Tuyl Group enjoys
excellent relations with the major auto manufacturers and delivers unusually high volumes at its 78 locations. This is just the beginning for Berkshire Hathaway Automotive,” said Berkshire Hathaway’s Chairman and CEO, Warren Buffett. “We are proud of all that has been accomplished with the support of our dealer partners, our employees and the manufacturers that we represent. We are very pleased to have one of the world’s most respected companies, Berkshire Hathaway, assume ownership of our company with the commitment to preserving our unique culture, business model and philosophy,” said Van Tuyl. “I cannot think of a better
steward to continue the legacy of what my father and I have built over the last 62 years, and I am confident this transaction will position the company on a course of continued success.” The transaction is expected to be completed in the first quarter of 2015 and is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions, including various regulatory approvals. Stephens Inc. is serving as financial advisor to Van Tuyl Group. DLA Piper is providing legal advice to Van Tuyl Group, and Munger, Tolles & Olson LLP is providing legal advice to Berkshire Hathaway.
CCC Information Services Inc. announced the addition of the Aftermarket Auto Parts Alliance (Alliance) as a supplier to the CCC TRUE™ Parts Network on October 16. The Alliance, which goes to market under a variety of store brands including Auto Value and Bumper to Bumper, becomes a significant contributor of mechanical parts and repair supplies to CCC TRUE Parts Network. “Providing our customers with ac-
cess to the Alliance’s extensive offering of repair parts and related supplies via their robust MyPlaceForParts™ network extends our footprint and provides our repair and insurance customers with even greater choice and flexibility in their parts options,” said David Boden, VP, CCC’s Parts Services Group. “We look forward to working with the Alliance and integrating its parts inventory with CCC TRUE Parts Network.”
“Collision repair shops have a tremendous need for easy access to mechanical repair parts and supplies,” said Jon Owens, Vice President of sales and market development for the Alliance. “Streamlining that access was the purpose of our participating in the CCC TRUE Parts Network and we could not be more delighted with the opportunity to bring our extensive inventory to CCC’s customers.” CCC ONE® Workflow users will
now have access to the Alliance’s network of over 2,200 locations that stock nearly 2,000,000 repair parts and supplies for both import and domestic vehicles.
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in the Windy City. As part of his company’s ongoing Anti-Texting Campaign philanthropy, Gottfred decided to participate in the project. “We purchased to participate in the Great Chicago Fire a five-foot fire hydrant made out of Hydrants Project, a public art exhibition fiberglass for the project to decorate,” that celebrates the heroism of Chicago’s Gottfred explained. “We painted the firefighters. This citywide public art inwords ‘Texting & Driving, It Can Wait’ stallation features oversized replicas of on the fire hydrant and then decided to Chicago’s iconic standard fire hydrants, take the whole thing one step further. designed, painted, decorated and/or We had purchased a little Smart Car a dressed by local artists, architects, and while back and we have our logo on the even fashion and interior designers. side of it. We use it to shuttle customers These colorful sculptures are placed around or pick up parts and we love it. throughout the city in tribute to the We thought maybe we can use the work and heroism of Chicago’s beloved Smart Car and the hydrant together to firefighters. At the conclusion of each get our anti-texting message out there. year’s exhibition, the hydrants are gathWe disassembled the front end of the ered for a final exhibition before being Smart Car and parked it out front of our shop and made it appear as though the Smart Car had just bashed into the fire hydrant. We get 40,000 people driving by our shop every day and so pretty quickly everyone was talking about it.” Then last October, Gottfred Erie-LaSalle Body Shop was founded in 1934 and over the decided to use Halloween as years its iconic neon sign has become a Chicago landmark an opportunity to take his antiauctioned, with net proceeds benefiting texting message to another level, he charities that support the families of fire said. “We put a dummy in the front victims and other fire safety programs seat of the Smart Car and deployed an Continued from Page 35
old airbag we had sitting around and strapped it to the steering wheel. Later, I went out there and the local police and fire department were out in front of the shop. Someone had reported a
Bob Gottfred (center) has been running ErieLaSalle Body Shop since 1975 and soon his sons Jim (left) and Jay (right) will be taking over the reins
car accident with serious injuries, and after we explained what was going on, we all laughed about it and they took a few photos. We left it there until the end of November and then the hydrant got auctioned off, raising $500 for the 51 Club. We bought it originally for
$1,500 and that money went to Club 51 too, so we donated $2,000 total, which was nice.” Once Gottfred got involved in his anti-texting campaign, he stopped texting altogether. “When people use their cell phones while driving, the bottom line is that they’re distracted,” he said. “I was doing it too, because you get a text message and your first reaction is to respond to it. But in the end it can really wait. We get damaged cars in here all the time and the customers will never admit that they were texting when it occurred, but I know many of these accidents are the result of texting.” Gottfred teaches CE (Continuing Education) classes to insurance agents and now he has created a class dealing with the topic of texting. “We discuss how to insure teenage drivers and what can happen when they text,” he said. “I show some gruesome videos to get their attention and to raise their consciousness about texting.”
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Lean Operations
Lean Implementation Strategies with David Luehr
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
give someone a task that is critical to One of the biggest complaints I hear success and the task is too difficult, it from shops is that it is so hard to get is human nature that it likely won’t get people to change their habits and conwith Jennifer Driscoll-Chippendale form to a new way of doing things. done consistently if at all. Let me give you an example. Let’s say that at your Unfortunately, failing to implement a body shop, you have discovered that permanent change initiative has bechecking the replacement parts for come the norm at most collision repair correctness (mirror matching) is shops these days. Some of this resist-
The Legal View The Legal View
“One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform” with Erica Eversman
Midwest Associations
CRITICAL to your success. So if you ance we bring on ourselves by what I withofEd like to call the “Flavor theAttanasio Month.” remove the old parts from the car and I am sure most of you can relate to this throw them into a big messy pile in scenario when the boss returns from the corner, do you really think the NACE or some great seminar and all parts guy is going to dig through that of a sudden he wants to fix everything heap to find the parts he needs to mirovernight! These changes rarely take ror match vs. the new replacements? permanent holdwith in the Ed organization AttanasioProbably not going to happen, right? and the more changes management You must make critical to success tries to implement, the bigger the joke tasks as easy as you possibly can if it becomes to the staff. Sad, but so you want them to get done. Conventrue! ience also means keeping tools, inforThere are many reasons that peomation, and anything else that would ple are resistant to change, but I am be needed to perform a critical task surprised at howwith often itEd is the owner close and easily accessible. Things not Attanasio or manager himself that is the real getting done are often not a work ethic problem! The art of communicating problem as much as it is a spatial or and understanding what make your procedural problem. people tick are of utmost importance these days. The old “iron-fisted” man- Space agement style of yester-year rarely If you were trying to shed a few with Victoria Antonelli works these days. pounds and decided that you need How are you going to get your to quit eating donuts, do you think staff to buy-into change initiatives and it would be better to have the box consistently perform the vital steps re- of donuts that your rental car quired with new processes such as provider just gifted sitting on your Blueprinting, and other lean concepts? desk, or would it be better to place Many great books have been written delicious box of devilish delight with Chasidy Rae the Sisk on the subject of change, and I recom- as far away as possible? My point mend you read them and learn as is to set up your shop space to help much as you can to better understand drive the vital behaviors to succeed. the behaviors and intrinsic values of A classic example of this is when it you and your team. In addition to you comes to Blueprinting. One of the doing some studies of your own, I vital behaviors of Blueprinting, in hope you will find these 3 tips helpful my opinion, is to have your estito your change efforts. mating computer out with you at the damaged car. Can this happen at your shop, or are your estimators Convenience One of the biggest reasons people still writing everything down on a don’t follow the steps is because the piece of paper and then walking steps are too hard to perform. Call this back to their office to enter a them lazy, call them whatever you questionably accurate supplement want, but the reality of it is that if you into the estimating system? If this
National Associations
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isn’t bad enough, I still see many shops that let the technician write the supplement on a piece of paper and then put it on the estimator’s desk to key in. What kind of behavior does this spatial arrangement encourage? Think about it!
and something that has to get done before it can go to the next step. Consider the use of visual quality control in between departments to eliminate defects, and make it hard to screw up!
Outcomes • Recommended reading o Leading Change – Kotter
Make it Unavoidable Make it difficult for people to do the wrong thing. Can you think of any tasks critical or otherwise that are being successfully performed at your shop consistently? What is different about those tasks that you can learn from and apply to your new initiatives and critical tasks? The act of moving a vehicle into the technician’s stall makes it pretty unavoidable that it will get seen and worked on by the Would you expect your parts person to dig through this technician. Making a task un- mess to perform a mirror match? avoidable is quite often a visual thing, See Lean Implementation, Page 44
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Toyota Moves to Aluminum Hood for Camry in 2018
Toyota Motor Corp. is set to become the next global automaker to begin making the expensive shift from steel to aluminum for a high-volume vehicle, according to reports in Automotive News. The U.S.-built Camry, the country’s best-selling car, is slated to get an aluminum hood in 2018, according to a source familiar with the plans. Toyota’s first foray into aluminum closures in North America will come next year when the 2016 Lexus RX 350 crossover, which is made in Cambridge, Ontario, gets an aluminum hood and liftgate, the source said. The aluminum sheet for the Camry hood likely will come from a joint venture between Toyota Tsusho Corp., a trading company affiliated with Toyota Motor Corp., and Kobe Steel to produce more aluminum sheet metal in the U.S. Toyota will be among the venture’s first customers, several sources confirmed. Production is expected to begin in 2017 and ramp up to full output at the beginning of 2018.
Mercedes Will Train 26,000 in the Brand’s New Culture
Mercedes-Benz USA and its dealers are spending about $30 million over the next four years to train 26,000 employees and immerse them in the brand’s culture. Later this year, the first wave of employees will go through a two-day program called the Brand Immersion Experience at the Mercedes-Benz factory in Vance, Alabama, near Tuscaloosa. The investment includes a $6 million revamp of the visitor center at the factory for classroom training, including digital interactive displays. “We have been driving hard for the last few years on the customer experience,” said Gareth Joyce, vice president of customer services at Mercedes-Benz USA. “It is not just about the product; it is all about the package and how you look after the customers as well. “This is just one of the building blocks in our portfolio to drive that program forward through our dealer network.”
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Chevrolet Brings Back the Corvette Stingray in Time for SEMA The SEMA Auto Show isn’t just an event for established aftermarket companies to showcase their latest
The 2015 Stingray
creations. It’s also a chance for new players in the business to introduce themselves to the industry. This year, Revorix falls under the latter category, and it’s prepared a special program for the Chevrolet Corvette Stingray. The new aftermarket company has just set up its business in Anaheim, California with the sole purpose of creating aftermarket
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Takata Airbag Recall May Include GM Vehicles
The regional recall of millions of U.S. vehicles with potentially defective airbags made by Japan’s Takata Corp. may expand to include General Motors models, according to documents filed in Sept. with U.S. regulators. More than 4.3 million cars produced by automakers, including Honda Motor Co., Fiat’s Chrysler Group and Toyota Motor Corp., are affected by the regional recalls. They began in June in certain high-humidity areas of the United States after the National Highway Traffic Safety Administration started investigating reports of airbag explosions in Florida and Puerto Rico. The regional recalls initially affected nine automakers, but documents filed by Takata for a Sept. meeting with NHTSA and the affected companies listed GM for the first time as being potentially affected. The Takata documents, posted online by NHTSA, said the Give us your opinion on number of vehicles produced by the largest U.S. automaker was undetermined. GM declined to comment.
Ferrari Recall of 458 Italia and Spider Models
Ferrari is recalling 3,000 458 Italia and Spider models for trunk safety issues. The new models’ trunks will be able to be opened from the inside to decrease the possibility of injury. The previous cars lacked this feature, and were found in violation of federal safety mandates. Ferrari owners will be notified by the company and will need to return their car to the local dealer for modifications.
Chrysler Recall of SUVs
Chrysler Group is recalling an estimated 184,215 SUVs because a possible short circuit in a part could disable airbags and seat belt pretensioners. The same part was responsible for a Sept. recall of more than 850,000 Ford vehicles. Chrysler said an electrical short circuit may occur in the occupant restraint control module in certain 2014 Dodge Durango and Jeep Grand Cherokee SUVs. The matters affecting industry. automaker said it isthe unaware of injuries or accidents related to the issue. The recall covers 126,772 vehicles in the U.S., 8,106 in Canada, 3,722 in Mexico and 45,615 elsewhere. publisher@autobodynews.com
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The Mississippi lawyer said the policy of the United States governlawsuit is largely based on antitrust isment. He said the body shops plan to sues that surface when insurance comvisit Washington D.C. again in Nopanies get involved with body shops vember when congress comes back their body shops. by telling them what labor rate they into session and the hope is that a bill “We wanted to make the legislacan charge, what percentages they’re will be introduced at that time. “The tors aware of what the insurance comlaw will really be a codification of the not going to pay for, and what parts panies are doing to the consumer,” policy of the United States that was they have to put on a car. In the said Matt Parker, owner of Parker set in 1963.” 1970’s, the labor rate was $16 and the Auto Body in Louisiana who is part of It was that year that the U.S. Demechanical rate was $15. Currently, the lawsuit. “The insurance industry partment of Justice, under Eaves said the body shop rate across should not tell us how to repair cars. the direction of Attorney the nation is usually half of the meWe’re the professionals here, not General Robert Kennedy, chanical rate with no justification. He them. We have all the liability, they investigated the concerns of said this is due to insurance compadon’t,” he said. the collision repair industry nies that have artificially suppressed Tony Passwater, Executive Diand found 265 insurance the rate and is a clear violation of the rector of the Indiana Autobody Assocompanies, and the three Consent Decree. ciation and President of AEII major trade associations Another main component of the Consulting Services, said that what that represented insurers, lawsuit is against steering. “Most started as multi-district litigation in were in violation of the states in the country say it is illegal for April with just five states, including Sherman Antitrust Act. An insurance companies to purposely inMississippi, Florida, Tennessee, IndiAntitrust Consent Order terfere in the business relationship of (l to r) Joe and Karen Enneking of Enneking Body Shop in Indiana, Congressman Luke Messer and Tony Passwater, ana and Utah, and later by Louisiana, was signed by these com- the customer and the body shop,” said Executive Director of the Indiana Autobody Association in is now part of a much bigger action to panies on October 23, Eaves. However, insurance companies Washington D.C. regain control that he termed “The 1963, requiring that insur- do it regularly, telling customers they Movement.” Eaves, Jr. of Eaves Law Firm in ers must refrain from “fixing, estab- have to go to their DRP body shops or He said, as part of “The MoveJackson, MS. lishing, maintaining or otherwise select service shops. “That’s a big part ment,” shop owners representing a Eaves said many were still not controlling the prices to be paid for the of our lawsuit and one of the things dozen states went to Capital Hill “…to aware of the Robert Kennedy-era appraisal of damage, or to be charged we think is pure violation of the discuss the growing concerns for con1963 Consent Decree and now is an by independent or dealer franchised proper balance between the two insumer safety, the mandating by insurexcellent opportunity to ask them to automotive repair shops for the repair dustries,” said Eaves. “By having the ers to require repair shops to use help enforce what is the official public of damage to automotive vehicles or same practices exposed by all body for replacement parts or labor in conshops in one litigation, the judge can nection therewith, whether by coermore clearly see that this is a pattern cion, boycott or intimidation or by the of practice,” said Eaves. use of flat rate or parts manuals or othEaves said that in addition to erwise.” these challenges faced by shop own“If you look at the Consent Decree and read it, it would look like somebody from today wrote it because all the things they’ve been doing since the 40s they are continuing to do,” said Parker. “To be honest with See these Hyundai dealers below for all your collision parts needs! you, everything they’re doing is against the law.” (l to r) Tony Passwater, Executive Director of the Indiana AuParker, who has been in tobody Association; John Arthur Eaves, the lead attorney for MISSISSIPPI TENNESSEE the business for 30 years, said the case; and Karen and Joe Enneking from Enneking Body Wilson Hyundai Downtown Nashville the Consent Decree mandates Shop in Indiana, during their trip to Washington D.C. JACKSON Hyundai that insurance companies are supers, the industry also has to adapt to 800-486-6871 N A S H V I L LE posed to be in the business of insurnew technology. “Only the shops that 601-914-4200 888-707-0658 ance, “not telling us how to repair actually get paid for what they do will 601-914-4292 Fax 615-341-3176 Fax cars, not writing estimates, not telling have the resources necessary to invest Mon-Fri 7am - 6pm Mon-Fri 7:30am - 5:30pm people where to get glass put in their in all of this technology,” said Eaves. parts@wilsonautos.com partsmanager@downtownnashvillemotors.com car. We’re the only business in the “That’s basically what the lawsuit www.downtownnashvillemotors.com world that has to try to figure out how component is all about… making sure to make a profit when we can’t even that people who do the work and do it set our own rates.” right get paid for it so they can conEaves originally filed the lawsuit tinue to provide that service to the in April on behalf of more than two American customer.” dozen body shops that claimed 16 inThe next court date is set for Nosurance companies manipulated labor vember in Orlando, FL. “The allegarates and other charges and weren’t tions that are part of the multi-district See Congress Support, Page 45 compensated for their work. Continued from Cover
Congress Support
untested and unsafe parts on vehicles, and the intimidation tactics the insurers use when a repairer refuses to do so.” “Most [members of Congress] have had their car repaired and were very empathetic and were already concerned about the issue, so we were very encouraged by the response,” said the lead attorney John Arthur
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 43
Car-O-Liner Participation Enhanced With Social Media
Car-O-Liner has entered the social media realm, and is now offering a variety of news ways for consumers to connect with the company. These channels include Facebook, LinkedIn, Google+, Twitter, Instagram, YouTube and Pinterest. Car-O-Liner President Jeff Kern, said he is excited about the new social media communications and anticipates these activities will benefit business relations through technical knowledge sharing. “Our social media connection allows us to not only share our activities, but also join the conversation through communication with both our customers and the industry,” he said. “It is important to listen and be heard as we extend our reach through these interactive tools.” Follow Car-O-Liner at: Facebook: facebook.com/caroline rcompany LinkedIn: https://www.linkedin.com/ company/car-o-liner?trk=top_ nav_home Google+: https://plus.google.com/ 102972787963006534481/posts Twitter: @car_o_liner Instagram: @car_o_liner Youtube: https://www.youtube .com/channel/UCFZEhZcZS4Xo4C wannUGcEQ Pintrest: http://www.pintrest.com/ carolinerauto/
Ford Recalls 850,000 Cars for Airbag & Seat Belt Glitch
Ford Motor Co. is recalling 850,050 2013 and 2014 vehicles for an electrical flaw that could cause airbags and seat belt pretensioners to malfunction in the event of a crash, according to reports in Automotive News. The affected vehicles include the 2013-14 Ford C-Max, Fusion, Escape and Lincoln MKZ. Ford said in a statement on Sept. 26 the restraints-control module in the vehicles could short circuit, causing the airbag warning indicator to illuminate. This is the 12th recall of the 2013 Escape, although a spokeswoman said in August that no single Escape has been involved in all the recalls. Flaws that other recalls on the Escape have addressed include fluid leaks that could cause an engine fire, doors that can open while the vehicle is moving and rollover airbags that may not deploy quickly enough.
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Continued from Page 40
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a total loss because it is no longer safe to be driven on the road! Luckily, diminished value is an issue that consumers are becoming increasingly sumer’s safety above all else and plans aware of, and Fowler encourages anyto feature member shops who have one with doubts about the safety or incommitted to this goal. tegrity of a repair to get a post-repair Although Fowler believes that inspection. His shop will gladly insome insurance agents would like to spect repairs and provide objective asdo the right thing for their customers, sessments, as will many shops across the rules are passed down from the inthe nation. As the show ended, Fowler surance companies’ corporate offices, encouraged consumers to stand up for leaving the agents powerless to make their rights. Though he would like to changes. Unfortunately, the insurers believe that the insurers look out for are the only ones to benefit, and these their customers’ best interests, his obpractices are actually performed to the servations indicate that they are only detriment of the collision repair facilconcerned with profits. “This war has ities, the consumers and even lending been going on for a long time, mostly institutions as an improperly repaired behind the consumers’ backs, but it afvehicle is apt to create a situation of fects everyone because if a car is undiminished value. safely repaired and out of control, it is When radio hosts questioned dangerous to everyone on the highwhy some insurance companies have way. The U.S. public needs to be condepartments that deal in diminished cerned with this issue… You never values, Fowler notes, “they pay when know what battles you can win until they’re forced to pay, but they are you fight them. Doing nothing only never going to voluntarily do the right ensures you will lose.” thing because it’s not profitable, and To access to the radio broadcast, go everything they do is profit-driven.” to http://www.iaba.info/Documents/ In fact, diminished Newsletters/Issues/2014/10%20 Giveheuswarns yourthat opinion on matters affecting the industry. value can occur to such an extent that October/Full%20Stories/Article%207. the vehicle should have been declared html (link is at the bottom of the page). Continued from Page 30
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Third Time is the Charm at North Carolina Custom Paint and Auto Body Shop could share the space. They split the bills down the middle and focused on their own businesses. Miles said it was challenging to go from making $90,000 a year plus the income from his wife’s job to liv-
with his friend so he decided to find a place of his own. A customer offered to help out so Miles could afford to With only a toolbox, some tools and a move into the 5,000 square foot space. Corvette he was hired to restore, Mike The rent was triple what he had been Miles and his wife Valerie have built paying and Miles said he was “going their Raleigh, North Carolina custom at it again, blindfolded, not paint and body studio into a business knowing how in the world they can be proud of. He said it has we’re going to make this taken a lot of hard work and perseverhappen.” ance but he has learned a lot along the It wasn’t long before Miles way and isn’t going to give up. “You have to be a go-getter, you realized Auto Arts wasn’t can’t be lazy by any means,” said Miles, making nearly the amount of money needed and they were who had to re-locate his business, Auto just scraping by. “When I didArts Inc., to three different locations n’t have anything to work on, over the last eight years due to unforewhich was often, my wife and seen circumstances. “To have a sucI put together these CDs with cessful business, in my opinion, in the pictures of my work.” He end you have to put it in front of everydrove around to any place asthing at all times,” he said. sociated with the auto body Miles started in the auto body industry – body shops, afterand collision repair business when he The Auto Arts team from left to right: Zack Matthews, market accessories stores, was 16 and hired by Paragon Colli- Alfred Anzelon, Shea Jenness, Travis Brown, and stereo shops, dealerships and sion Repair in Raleigh. Starting from owners Mike and Valerie Miles. even car washes – to spread the ground up he took out the trash, washed cars, buffed and polished cars, ing off approximately $17,000 from the word about Auto Arts and drum up and helped out wherever they needed his retirement savings. “To go from business. him. He trained as an I-CAR techni- that to buying a home, cars and all kind “I wasn’t going to try to take cian and then began doing collision of toys and stuff to nothing, it’s a big anybody’s work or take anybody’s repair. After 11 years of working at life change,” he said. job,” said Miles. Instead, he walked in After working day and night, he with confidence and offered to help Paragon, he cashed out his 401K and decided to open Auto Arts Inc. in started to build up his customer base. out with any work they didn’t have 2006. A friend had started his own In the meantime, he found it wasn’t time for, while building relationships small shop and Miles asked if he working out sharing the workspace with the other businesses in the community. Then in 2011 the lease for his building was going to run out and anGenuine Porsche Parts... Only The Best. other tenant wanted to expand. It meant another move. “It was like starting over again for the third time,” said by Stacey Phillips, Assisant Editor
Continued from Page 43
Congress Support
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litigation being heard in Florida are not in line with State Farm’s mission to serve the needs of its customers, and our long, proud history of achievements in advancing vehicle safety,” said Dick Luedke, spokesperson for State Farm Insurance. “A vibrant, profitable auto collision repair industry is in the interest of State Farm,” said Luedke. “At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe repairer profitability and quality auto repairs that are reasonably priced can both be achieved. “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service program while at the same time making it clear they can select which shop will do the work,”
Miles. The current shop is almost 10,000 square feet and specializes in collision repair and custom paint and body work. His wife Valerie said the “custom” side of the business often brings in the “collision” side. “Many of our customers start off wanting something special or custom for their cars and then much like finding a good barber or hairdresser, they come back for small repairs or larger insurance work/jobs,” she said. Their plan is to stay at this location and eventually purchase the building. Miles said he has grown his business significantly through word of mouth and his hands-on approach. “I don’t think it’s the well-oiled machine that I want it to be yet but at the same time I work in the business as much or more so than on the business,” he said. Valerie handles all of the marketing and built the company’s website. Much of their current business comes from a consistent presence at car shows, Facebook and Instagram where they post photos of their projects daily. Over the last four years Miles was asked to take part in three different television shows but declined. “If I’m going to do it, it’s going to be the real deal, how I got here,” said the business owner who has gone through two moves and a recession. “I’m not in it for money. I’m in it for the look on people’s faces when they get their vehicle back,” said Miles. “I love what I do and will die doing it.”
he said. Parker Auto Body was part of State Farm’s Select Service DRP until earlier this year. Since the business owner left the program in April, he said they have steered a substantial amount of business away from him. “Just in short pays alone I have over $150,000 worth of claims they won’t pay,” he said. “Operations that we actually do the vehicles to make the vehicles safe that they won’t pay us to do. “These shops need to stand up for what’s right and quit letting the insurance industry run their business for them,” said Parker. “They are just terrified that the insurance companies are going to steer the work away.” Parker acknowledges their concerns but said, “We’re just as busy now as we were because we’re educating consumers.” He has found it beneficial to explain to consumers what the insurance companies are See Congress Support, Page 46
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 45
a series of four automotive certification videos for Mark’s Body Shop. “K & M has done a few OE certification videos and they’re powerful, to say the least, so we’re doing the same,” Schaech said. “They did a Porsche certification video and now they’re on top of all the search rankings as a result. We use video to inform and educate our customers, but enhanced SEO is also a big part of it. Years ago, we spent a lot of money on cable advertising and the response was weak, but these videos cost us less and they get us more response. We’ll be making more all the time, because we can new see they pay for themselves in the end.”
Continued from Page 16
Power of Video
was completely hacked and butchered. It was a death trap and it eventually got totaled and the driver got paid off. Our video told the story and showed the evidence clearly, and that was why it worked so well. Since coming out, the Maryland Attorney General and the Insurance Commissioner has seen the video and body shops show it to their customers all the time. We get great feedback about it and it’s also helping us to get higher rankings on Google.” Currently, AP Media is producing
Continued from Page 45
Congress Support
doing. “They need to take their businesses back and they need to run their own businesses.” When Autobody News went to press this month, an additional 25 states were in the process of filing lawsuits to meet an Oct. 31 deadline before returning to court in November. “What we want to achieve is number one, that the safety and the quality of repairs for the American public is restored,” said Eaves. “The industry will never be the same after this.”
When contacted by Autobody News, Allstate Insurance Company and Progressive both said that due to company policy, they do not comment on pending litigation. Stay tuned to Autobody News for more developments.
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Booth #11249
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 47
Come and see us at our SEMA booth # 11477 Check out our videos at www.djsfabrications.com Youâ&#x20AC;&#x2122;ll be impressed!
48 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com