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Couple Injured in Honda Fit Case Awarded $31.5 M from Shop, Tracy Firm Resumes State Farm Lawsuit by Ed Attanasio

On Oct. 2, a Texas jury found that John Eagle Collision Center’s improper repair was liable for the severity of the crash of a 2010 Honda Fit, awarding the injured couple $42 million in damages, but assigning 25% blame to the driver of the other vehicle, a 2010 Toyota Tundra, leaving the shop responsible for 75 percent of the couple’s injuries, and owing approximately $31.5 million under the verdict. Attorney Todd Tracy, who represented plaintiffs Matthew and Marcia Seebachan, was pleased with the award and not at all surprised with

the result. “I think it was vindication for the Seebachans in many ways,” Tracy said. “Once the jury weighed all of the evidence and went through the testimony, they could clearly see that most of the liability rested with the body shop. One of the more influential members of the jury said that John Eagle Collision Center made a business decision when they glued the roof instead of welding it on the Honda Fit. She concluded that since it was a bad decision, the shop had to pay for it and the award indicates that thinking.” See $42M Verdict, Page 9

The New Car Paint Lexus Spent 15 Years Creating by Richard Aucock, Motoring Research

Lexus has launched a new color called Structural Blue—after spending a staggering 15 years developing the paint technology behind it. However, painting cars with it is so complex,

only two Structural Blue cars a day can be made. The firm has been working for the past decade and a half with a specialist company in California to invent the new paint. VIAVI Solutions Inc. is an expert in thin-film optical coatings, and has helped Lexus take the Structural Blue color into production. Originally shown as a concept, the first iteration of the color was made up of no fewer than 40 layers. The two companies reduced this down to seven layers, which are ap-

VOL. 8 ISSUE 9 NOVEMBER 2017

Texas Shops Speak Out Against Photo Estimating by Chasidy Rae Sisk

Since insurance companies began utilizing cell phone apps for photo estimating a few years ago, it has become a topic of great concern among many collision repair professionals.

Although the insurer estimated repairs on this 2015 BMW at $1,044.19, shop manager Chad Kiffe predicts the repair will cost over $7,000

Although insurers claim that photo estimating is more convenient for consumers, collision repair indus-

try leaders have predicted that the short-term convenience may be negated by additional time required for supplements, as well as the potential for consumers to receive less money for diminished value than they’re owed. Now that they’ve been involved with this process for some time, shops in Texas are finally speaking out about how photo estimating impacts the repair process and the consumer experience. Chad Kiffe, General Manager for Berli’s Body & Fine Auto Finishes, says, “Photo apps allow the consumer to start their claim faster without the need to go to a shop for an estimate. This is a big plus for consumers when considering the value of their time, but photos very rarely show the extent of damages due to numerous reasons, resulting in poor estimates. This causes unnecessary delays since most photo See Photo Estimating, Page 28

Hurricane Irma Could Have Wiped Out 400,000 Vehicles by Staff, F&I and Showroom

As many as 400,000 vehicles in Florida will need to be replaced as a result of Hurricane Irma, including as many as 11,000 fleet vehicles, according to Cox Automotive.

See Structural Blue, Page 14

cluding the Florida Keys, Fort Myers, and Tampa. Commercial fleets likely suffered the brunt of the storm’s impact, as larger rental operators mostly moved their vehicles into parking garages to protect them from the wind and rain. “We were able to move most of the units to cover and they weren’t damaged or flooded out,” said Lisa Martini, an Enterprise spokesperson. “That made a big difference for us.” Hertz also saw minimal damage to its rental fleet in Florida, said Karen Drake, a spokesperson for Hertz Holdings. Enterprise has reopened most of its Florida offices, except for those in Naples and Key West, where it operates airport rental facilities at Key West International Airport and Florida Keys Marathon Airport. Unlike Hurricane Harvey, which caused heavy flooding, Hurricane Irma See 400K Cars, Page 16

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2 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

Contents Aberdeen, NC Car Restoration Shop Under

Investigation by DMV . . . . . . . . . . . . . . . . 18

NATIONAL

AAAS Appoints Danny Durbin as Chairman

of Employee Benefit Fund Board . . . . . . . . 10

All Gerber Collision and Glass Repair Centers

Auto Care Association Identifies Alibaba as

Aspiring Shop Owner S.O.A.R.s to

“BASF Supports Young Spray Painters as a

Calling All SC Shops! New Association

Both Hurricane Irma and Harvey Damaged

Elizabethton High School Car Show in

California Autobody Association Prepares

FL Bill Would Allow Inspections of

CIC Education & Training Committee—Collision

Geoffrey Adams Crane Obituary . . . . . . . . . . 66

Couple Injured in Honda Fit Case Awarded

New Heights. . . . . . . . . . . . . . . . . . . . . . . 12

Forming . . . . . . . . . . . . . . . . . . . . . . . . . . 10

TN Seeks to Inspire . . . . . . . . . . . . . . . . . . 8

Windshield Damage . . . . . . . . . . . . . . . . . . 6

Georgia Northwestern Celebrates Industrial

Career Day . . . . . . . . . . . . . . . . . . . . . . . . . 6

Notorious Market for Counterfeit Auto Parts . 66

Global WorldSkills Competition Sponsor” . 66

1 Million Cars. What’s Next?. . . . . . . . . . . 71

for AB 1679 ‘Fight of their Careers’. . . . . . 58

Repair Employee Survey. . . . . . . . . . . . . . 50

$31.5 M from Shop, Tracy Firm Resumes

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

Hurricane Irma Could Have Wiped Out

Forum Highlights How Much ‘Diagnostics’

Massive $23 Million Auto Insurance Fraud

Gary Ledoux, Retired from American Honda,

400,000 Vehicles . . . . . . . . . . . . . . . . . . . . 1

was an Intricate Operation in South Florida . 14

WMABA Adds WV to Territory and

Launches Facebook Group . . . . . . . . . . . . 71

COLUMNISTS

Attanasio - Alan Johnson: Author, Artist,

Pinstriping King . . . . . . . . . . . . . . . . . . . . 46

Attanasio - Why Are Shops Scaling Back

Their Marketing Efforts? . . . . . . . . . . . . . . 48

Ledoux - A Monthly Trip Where Time and Space are Reversed to Revisit People,

Have Become Part of Collision Repair World . 42 Launches New Historical Column: ‘In

Reverse’. . . . . . . . . . . . . . . . . . . . . . . . . . . 3

GFS Names Ramis VP of Automotive

Refinish Sales . . . . . . . . . . . . . . . . . . . . . . . 60

How Open Source is Transforming the

Automotive Industry . . . . . . . . . . . . . . . . . 69

International Auto Crafters Nominated for Achievement in Collision Repair

Excellence . . . . . . . . . . . . . . . . . . . . . . . . 54

Mercedes-Benz to Produce EQ Brand Electric

Cars in the U.S. . . . . . . . . . . . . . . . . . . . . . . 68

Places and Events . . . . . . . . . . . . . . . . . . 24

Mitchell Parts Extended with Strategic

Reach an ‘Efficiency Ceiling?’. . . . . . . . . . 38

PA Auto Body Shops’ Owner Files

Phillips - George Avery: Will DRP Shops

Phillips - How to Improve Your Interviewing

Process & Hire for Keeps . . . . . . . . . . . . . . . 32

Integration Agreement with OEC . . . . . . . . 12

Second Lawsuit . . . . . . . . . . . . . . . . . . . . 56

Senators Drop Trucks from Self-Driving Bill . . . 4

Sisk - IGONC’s Revived ASTE Yields

Symach FixLine System Increases Efficiency

Sisk - NCACAR Celebrates One-Year

Team PRP Automotive Recycling Network

Great Responses . . . . . . . . . . . . . . . . . . . 20

Anniversary with Exciting, Informational

and Production at New Facility . . . . . . . . . 55

Expands . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Member Meeting . . . . . . . . . . . . . . . . . . . 26

Texas Shops Speak Out Against Photo

Automakers 15 years ago Seen as Key

The New Car Paint Lexus Spent 15 Years

Yoswick - Recent “Who Pays for What?”

Who’s Liable when Autonomous Cars are

Yoswick - Association Agreement with

to Access of OEM Information . . . . . . . . . 52

Survey Looks at Body Labor Operations,

Estimating System Use, Training. . . . . . . . 34

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Sales Assistant: Randi Scholtes

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2017 Adamantine Media LLC.

Audi Wholesale Parts Dealers . . 40-41 Axalta Coating Services . . . . . . . . . . 5 BASF Corporation. . . . . . . . . . . . . . 11 BMW Wholesale Parts Dealers . . . . 64 CarcoonAmerica Airflow Systems . . . . . . . . . . . . . . . . . . . 47 Car-Part.com . . . . . . . . . . . . . . . . . . 58 Celette, Inc . . . . . . . . . . . . . . . . . . . 19 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 ChemSpec USA, LLC . . . . . . . . . . . 24 Chief Automotove . . . . . . . . . . . . . . 49 Classifieds. . . . . . . . . . . . . . . . . . . . 70 Coggin Deland Honda . . . . . . . . . . 52 Crashmax Equipment . . . . . . . . . . . 39 Darrell Waltrip Automotive Group. . 29 Dent Magic Tools . . . . . . . . . . . . . . 10 Diamond Standard Parts, LLC . . . . 45 Dominion Sure Seal . . . . . . . . . . . . 17 Eckler’s Automotive . . . . . . . . . . . . 57 ECS Automotive Concepts . . . . . . . 34 Equalizer Industries, Inc . . . . . . . . . 23 Eurovac, Inc. . . . . . . . . . . . . . . . . . . 26 Ford Wholesale Parts Dealers . . . . 69 GM Wholesale Parts Dealers . . . . . 67 Gus Machado Ford . . . . . . . . . . . . . 50 GYS Welding USA. . . . . . . . . . . . . . 14 Hendrick Automotive Group . . . . . . 33 Hendrick Automotive Group of Charleston. . . . . . . . . . . . . . . . . . 72 Hendrick BMW/MINI . . . . . . . . . . . . 63 Hendrick Dodge . . . . . . . . . . . . . . . . 8 Hendrick Kia Cary . . . . . . . . . . . . . . 54 Hendrick Kia Concord . . . . . . . . . . 54 Herkules Equipment Corporation. . . 6 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 35, 36-37 Hyundai Wholesale Parts Dealers. . 68 Insta Finish Car Care . . . . . . . . . . . 21

Jim Cogdill Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 12 Jon Hall Chevrolet . . . . . . . . . . . . . 42 Jon Hiester Automotive . . . . . . . . . 30 Kernersville Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 53 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 65 Lancer Insurance Company . . . . . . 46 Lexus Wholesale Parts Dealers . . . 71 Lusid Technologies . . . . . . . . . . . . . 25 Malco. . . . . . . . . . . . . . . . . . . . . . . . 31 Matrix Automotive Finishes. . . . . . . 27 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 66 MINI Wholesale Parts Dealers . . . . 64 Mirka USA, Inc. . . . . . . . . . . . . . . . . . 9 MOPAR Wholesale Parts Dealers . . 43 MWMtools.com . . . . . . . . . . . . . . . . 51 O’Reilly Auto Parts . . . . . . . . . . . . . 59 Porsche Wholesale Parts Dealers . . 64 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Radley Chevrolet. . . . . . . . . . . . . . . 50 Rick Hendrick Chevrolet Naples. . . 60 Rick Hill Imports . . . . . . . . . . . . . . . 55 Riverside Ford-Lincoln . . . . . . . . . . 48 SATA Dan-Am Company . . . . . . . . 13 Serra Chevrolet-Buick-GMC of Nashville . . . . . . . . . . . . . . . . . . . 20 Sorbothane . . . . . . . . . . . . . . . . . . . 18 Southside Kia . . . . . . . . . . . . . . . . . 62 Spanesi Americas . . . . . . . . . . . . . . 38 Subaru Wholesale Parts Dealers . . 61 Tameron Hyundai . . . . . . . . . . . . . . 56 Valspar Refinish . . . . . . . . . . . . . . . . 7 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 68 West Broad Hyundai. . . . . . . . . . . . 32 Wizards Products . . . . . . . . . . . . . . 22

Index of Advertisers

Now Re-Opened in Irma-Affected Areas . . . 6

Since then, Ledoux has helped create and administer many successful programs for Honda and Acura Gary Ledoux began his cathroughout his career, inreer in the collision repair including the ProFirst certifidustry helping a small-town cation program. The jobber mix paint and deliver industry veteran recently repaint and supplies to body tired from the company on shops. October 1. In addition to auOver the next several years, thoring a book about the hishe worked in the parts afterGary Ledoux tory of the collision repair market and for car dealerfile photo ships in various capacities, including industry in America, Ledoux will be sales, service and parts. writing a regular column for Auto“I always wanted to work for a body News titled “In Reverse,” as large company in a capacity where I well as various feature articles. could really make a difference,” said “I consider it a personal triumph Ledoux. “I found an opportunity with to go from where I started, to ending American Honda and jumped at the my full-time career managing one of chance.” the most respected body shop certifiThat was almost 30 years ago. See Launching Column, Page 22 by Stacey Phillips

Estimating . . . . . . . . . . . . . . . . . . . . . . . . . 1

Creating . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Involved in Accidents? . . . . . . . . . . . . . . . . 4

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

Southeast

REGIONAL

Gary Ledoux, Retired from American Honda, Launches New Historical Column: ‘In Reverse’

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 3

Senators Drop Trucks from Self-Driving Bill by Keith Laing, Detroit News Washington Bureau

Lawmakers in the U.S. Senate have dropped self-driving trucks from legislation that would allow automakers to operate thousands of autonomous cars per year on U.S. roads. The action came after a high-profile campaign from labor unions to protect the jobs of professional drivers. The measure, drafted with input from U.S. Sen. Gary Peters, DBloomfield Township, would allow automakers each to operate more than 100,000 self-driving cars per year on U.S. roads. But commercial trucks are excluded under a bipartisan agreement that was reached between Peters and U.S. Sen. John Thune, R-SD, who is chairman of the Senate Commerce, Science and Transportation Committee. Both lawmakers touted the agreement to move forward on the self-driving bill without trucks as a necessary compromise to keep the autonomous vehicle legislation moving in Congress. They said the Commerce Committee will hold a hearing on the revised legislation on Oct. 4. “This legislation proposes common sense changes in law to keep pace with advances in self-driving technology,” Thune, who had argued in favor of including trucks in the self-driving bill, said in a statement. Peters, a member of the Senate

Commerce Committee who was opposed to including trucks in the legislation, added, “Self-driving vehicles will completely revolutionize the way we get around in the future, and it is vital that public policy keep pace with these rapidly developing lifesaving technologies that will be on our roads in a matter of years.” Trucking groups expressed disappointment that they lost out in the fight over whether commercial vehicles should be included in the self-driving legislation. They had pressed lawmakers to offer the same protections for self-driving truck operators that they are considering for autonomous cars. “If more automated cars and trucks are to share the roads, they should also share the same framework,” American Trucking Associations President and CEO Chris Spear said in a statement, arguing that lawmakers will still have to address the advent of self-driving trucks in the near future. “Delaying an inevitable, common sense solution will only make the issues surrounding more automated trucks more difficult to deal with,” Spear said. Labor unions mounted an aggressive campaign against the inclusion of commercial vehicles like trucks in the self-driving legislation, pointing out that they could cost thousands of professional drivers their jobs. They applauded lawmakers in the Senate for agreeing to move forward without

trucks in the self-driving legislation. “This approach will give Congress more time to thoroughly examine how driverless technology will impact the jobs, wages, and safety of bus and truck drivers, and develop a plan to address these concerns,” said AFL-CIO Transportation Trades Department President Larry Willis. Automakers applauded lawmakers in the Senate for reaching an agreement to move the self-driving bill forward. “Legislation like the bill introduced today will allow manufacturers to conduct more testing and to safely deploy self-driving vehicles to realize the safety, mobility, congestion, environmental, land-use and other benefits of this transformative technology,” General Motors Co. said in a statement. The Washington, D.C.-based Alliance of Automobile Manufacturers, which represents major auto manufacturers, added, “Chairman Thune’s and Senator Peters’ bipartisan leadership on the AV START Act will help advance self-driving technologies and help keep the United States at the forefront of these innovations.” The Senate’s self-driving measure would allow the Secretary of Transportation to grant exemptions to federal motor vehicle rules that require cars to have human operators. Initially, 50,000 cars per automaker could be operated if companies can prove they meet existing safety standards for traditional cars. After a 12-month period, the num-

ber of exemptions per manufacturer would increase to 75,000, and would go up to 100,000 in the third year. Automakers would be able to apply for exemptions to operate more than 100,000 self-driving cars after five years, under the proposed legislation. The current limit for such exemptions to federal auto standards is 2,500 cars for two years at a time. A similar measure that would allow automakers each to operate up to 100,000 self-driving cars per year on U.S. roads was approved by the U.S. House of Representatives earlier this month. Both versions of the proposed legislation prohibit states and other local jurisdictions from adopting regulations related to cars’ design, construction, software or communication. States still would be allowed to regulate registration, licensing, liability, education and training, insurance or traffic laws. The new proposed exemptions would apply to vehicles in which there is a system that operates with the expectation that a human driver will take over upon being prompted. The legislation would also cover cars with high automation levels, where the automated driving can perform maneuvers even if a human driver does not take over when promoted—and for full automation, when the automated system is responsible for all driving tasks. We thank The Detroit News for reprint permission.

tonomous vehicles will substantially reduce the number and severity of accidents caused by human error---the primary catalyst for the vast majority of current automobile accidents. However, the benefits will extend well beyond roadway safety to matters such as aiding in traffic congestion and improving the efficiency and effectiveness of transportation systems. The rise of this new technology brings an array of unique and thorny legal issues that will cause wholesale changes to many different areas of the law in the years to come. By far the most predominant legal issue concerning the advent of autonomous vehicles pertains to liability for accidents involving self-driving cars.

cause of automobile collisions today. Contrary to humans, however, autonomous vehicles don’t drink and drive, text and drive, or otherwise get distracted at the wheel. As autonomous vehicle technology becomes standard, there will be fewer negligent people on the road, which will negate the primary rationale underpinning motor vehicle accident litigation today—driver negligence. While the human error element may be removed from our roadways, it does not mean car crashes and related litigation will become a thing of the past. Rather, the type of litigation that arises out of car crashes will change. Instead of focusing on driver negligence, future litigation involving autonomous vehicles will focus on the safety of the self-driving vehicles involved in the collision.

Accordingly, motor vehicle accident litigation will shift from driver negligence—and liability on the part of the operator—to products liability, making the automotive industry the principal responsible party for liability-related matters. Consequently, while vehicles and roadways become safer, vehicle manufacturers, technology manufacturers and other suppliers will almost certainly see their liability exposure increase considerably, with the autonomous automotive industry bearing a bigger slice of a smaller pie of total accident costs.

Who’s Liable when Autonomous Cars are Involved in Accidents? by David J. Oberly, PropertyCasualty360.com

Desktop computers. Mobile phones. Wi-Fi. Seemingly almost overnight, these advances in technology have fundamentally transformed the way society operates and functions on a daily basis. However, these and other modern technological developments may pale in comparison to the impact felt in connection to the introduction of autonomous vehicles on our nation’s roadways. Today, the world’s leading car makers are racing to build fully autonomous vehicles. The goal for many is to have self-driving cars on the road by 2020. The benefits of this advanced technology will be significant, as au-

The shift to products liability law Human error is the predominant

4 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

4 keys to determining product liability Products liability law has already been applied to many types of famous litigation involving automobiles, including the Ford Pinto’s fuel system, See Who’s Liable?, Page 44

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 5

Georgia Northwestern Celebrates Industrial Career Day by Staff, The Chattanoogan

Regional high school students and members of the community had a chance to speak with representatives of Georgia Northwestern Technical College’s (GNTC) industrial programs, employers, and former GNTC students about the benefits of learning a skilled trade during Industrial Career Day. The day, a first for GNTC, was held to expose students to the many possibilities of future employment in the skilled workforce. “Skilled trades are needed the world over,” said Scott Carter, director of Electrical Systems Technology at GNTC. “If you reach out and become a contractor, you can do really well and the possibilities are endless.” Approximately 400 people, including high school students from Calhoun High School, Cedartown High School, Christian Heritage High School, Chattooga High School, Dalton High School, Floyd County College and Career Academy, Rockmart High School, Rome High School, Rome Transitional Academy, and Trion High School attended the event. The activities took place at Industrial Alley on GNTC’s Floyd County Campus.

Industrial program directors were on-hand to discuss their programs and provide tours of their labs. There were demonstrations, simulators, and handson learning activities for the industrial programs offered by GNTC. Local employers and former students also spoke with participants about the benefits of learning a skilled trade. Some of the industrial activities included a small car show hosted by the Auto Collision program, a Dynamometer (DYNO) demonstration with a hot rod presented by the Automotive Technology program, a hammer and nail competition by the Construction Management program, a welding simulator provided by the Welding and Joining Technology program, demonstrations by the Cosmetology program, and the Machine Tool Technology program provided a Computer Numerical Control (CNC) demonstration. The machine that GNTC’s SkillsUSA Career Pathways team created, which won the gold medal at the SkillsUSA Georgia competition and the bronze medal at the national SkillsUSA competition, was demonstrated at the labs for the Industrial Systems Technology and Instrumentation and Controls programs. Featured GNTC industrial pro-

All Gerber Collision and Glass Repair Centers Now Re-Opened in Irma-Affected Areas

Boyd Group announced that all 63 collision repair centers operated by Gerber Collision and Glass in Florida and Georgia that were temporarily closed have now re-opened. Fortunately, nearly all employees have been able to return to their homes and to their work, and none of the affected locations sustained damage that will result in any long-term business interruption. “We are pleased to report that all of our employees have come through this storm safely,” said Tim O’Day, President and COO of the Boyd Group. “We continue to support them and our local communities as they are coming together to rebuild. Our thoughts are with those that have been negatively affected by this and other recent storms.” “While we are certainly thankful that the outcome from the hurricane and related storms is much less severe than what might have been anticipated in the days leading up to the storms, we do expect that these events will have a noticeable impact on our third quarter results,” said Brock Bulbuck, CEO of the Boyd Group. “In addition to lost produc-

tion and sales during the closures, which ranged from one to eight days, we will also have the impact of some extra costs, as well as disruption to the business both before and after the closures. Our glass business will also be negatively impacted. Our teams are currently assessing the full impact of the storm and we will provide further details when we announce our third quarter earnings results on Nov. 8. “We are relieved that all centers have largely returned to normal operations and we are not expecting an impact into the fourth quarter. We thank all of our employees for getting our locations back up and running so quickly and for their continuing commitment to serving our customers and insurance partners with the highest levels of service and quality.”

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grams included Air Conditioning Technology, Auto Collision Repair, Automotive Technology, Aviation Maintenance Technology, Commercial Truck Driving, Construction Management, Cosmetology, Electrical Systems Technology, Horticulture, Industrial Systems Technology, Instrumentation and Controls, Machine Tool Technology, and Welding & Joining Technology. As part of the day’s activities, one of the qualifying rounds for the 2017 IDEAL National Championship took place in the electrical lab. The competition was a way to showcase the skills of electrical professionals, students, and apprentices. Winners with the fastest times from each of the 63 territories holding qualifying events are awarded tool kits and the opportunity to compete in the 2017 IDEAL National Championship. The national competition will be held Nov. 10–11 at Disney’s Coronado Springs Resort in Florida and over $500,000 in cash and prizes will be awarded. Industrial Career Day was sponsored by Georgia Northwestern, City Electric Supply, Cahaba Sales Group, and the 2017 IDEAL National Championship. We thank The Chattanoogan for reprint permission.

FL Bill Would Allow Inspections of Windshield Damage

With insurers arguing that a practice known as “assignment of benefits” is driving up costs, a Senate Republican recently filed a proposal that could lead to required inspections before damaged windshields are repaired or replaced. The bill (SB 396), filed by Sen. Dorothy Hukill, R-Port Orange, will be considered during the 2018 legislative session, which starts in January. Assignment of benefits has been a controversial issue in recent years, primarily because of residential water damage claims. But it also has become an issue in claims for windshield damage. In assignment of benefits, policyholders sign over claims to contractors, who perform work and then pursue payment from insurers. The insurance industry contends that the practice leads to fraud and increased litigation, while contractors and plaintiffs’ attorneys argue it can help make sure insurance claims are handled properly. Hukill’s bill deals only with the windshield issue. It would allow insurers to require inspections before windshield repairs or replacements are authorized.

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 7

Elizabethton High School Car Show in TN Seeks to Inspire

automotive teacher Paul Linberg. He said this year’s show was the best yet. Elizabethton is known for the weekly There were about 20 cars, ranging cruise-ins held downtown from April from a 1924 Ford Model-T to the latthrough October, but that show does est sophisticated race cars and dragnot have anything on the annual car sters. There was even a race car show at Elizabethton High School. simulator provided by the Tennessee That’s because almost all the cars College of Applied Technology-Elizalining East Elk Avenue on a typical bethton. Saturday night are “street legal. “They According to the school’s website, many of the school’s alumni from the automotive classes come to the car show to talk with and inspire today’s students. Some of the alumni have gone on to have careers in the automotive industry or are hobby racers. The school’s website said three of the visitors, Mike Williams, Chris Carter and Dragsters and drag bikes were just a few of the competiSmoke Avery, attended Eliztion vehicles on display at the annual Elizabethton High abethton High with Linberg. School Car Show. Credit: John Thompson/Johnson City The men found different jobs Press in the automotive industry, can be driven home at the end of the from repairing cars to racing them, to night. Nearly all the cars in the high teaching the next generation of technischool’s events are race cars or show cians. All of the men gave credit to cars. They were built for the race track Roger Hughes for teaching them a and it is against the law to drive them great deal of what they now know about on the highway. cars. The Elizabethton High School Linberg said another reason for the Car Show was started six years ago by car show is to “spark an interest” in what by John Thompson, Johnson City Press

8 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

“It can keep them off the streets and off drugs,” Linburg said. He said the area was fortunate to have much better places than streets to race cars, such as the facilities at Bristol. Linberg said about 20 of his students already have an intense interest in cars and Paul Linberg, automotive teacher at Elizabethton High trucks, and did not need any School, said one of the main reasons for the annual car inspiration. He said one of show is to inspire students to pursue the possibilites of a them is Drew Pearson, a career or hobby in the automotive industry. Credit: John junior. Thompson/Johnson City Press Pearson was wearing a Muscle Motors T-shirt, which the automotive industry can offer graduates and to encourage students to spend he said was a company from Michigan headed by Mike Ware that specializes their time on a constructive hobby. in Mopar engines. Pearson said he also likes Chevrolets. Luther Norris reminded the students that the hobby did not have to be fast-paced. The top speed on his hobby is 25 miles per hour. He showed off his beautifully restored 1924 Ford ModelT truck, which he said took him six years to complete after finding the inoperable vehicle in the Blue Springs community. Luther Norris shows the 1924 Model-T he restored. Credit: John Thompson/Johnson City Press

We thank Johnson City Press for reprint permission.

Continued from Cover

$42M Verdict

Tracy said that he is now going after State Farm, the insurance company that covered the Seebachans at the time of the accident, in a new civil suit. He strongly believes that based on this case, he will be able to prove that the shoddy repair was directed by the insurer. “The message is that you had better do the repairs at OE standards, because if you don’t you might get sued big-time,” Tracy said. “The OE procedures from I-CAR are the industry’s Bible, so this is what happens when you don’t follow the Bible. I want the insurance companies out of the collision repair industry now, and the decision in this case is a definite step in that direction.”

Tracy Law Firm Expands Actions Tracy and the Seebachans have refiled a lawsuit against State Farm for its alleged role in influencing the roof repair, which used an adhesive instead of being welded. According to John Eagle’s body shop director Boyce Willis, State Farm wouldn’t pay the shop unless the repair

was done according to its specifications as opposed to Honda’s. Boyce Willis said in a deposition that the facility in 2012 bonded a replacement roof to a 2010 Honda Fit in clear contradiction to the OEM repair procedures. (Willis insisted he knew using the 3M 8115 panel bonding adhesive was a better repair, as did the defense during the trial.) Ford GT engineer and plaintiff consultant Neil Hannemann wrote that in his expert opinion, the failure of the roof of the Seebachans’ 2010 Honda Fit during a crash compromised the overall structure and collision energy management of the vehicle—contributing to the Seebachans being trapped inside and a subsequent fire. “According to John Eagle’s corporate representative, in sworn testimony taken on July 7, 2017, State Farm dictated to John Eagle how the car was to be repaired, i.e., to use adhesive rather than spot welding,” the lawsuit read. “Furthermore, according to John Eagle’s corporate representative, State Farm can ‘trump’ the OEM (Honda) specifications because the repair facility needs to get paid. However, profits should never trump safety.”

The Seebachans filed suit against State Farm in August but dropped the suit a few days later as not to interfere with the timeline of their case against John Eagle. “No insurance company should ever dictate to a collision repair center or body shop how to repair a vehicle. To do so is extremely negligent, and shows a wanton disregard for human life and the safety of others,” Tracy argued. “John Eagle did not repair the subject 2010 Honda Fit to Honda’s body repair specifications due to State Farm’s instructions, threats, and/or coercion.” The couple is suing the insurer for negligence and breach of warranty. “This case is bigger than money,” Tracy said to Dallas News. “This case is about industry-wide change.”

Tracy Firm to Discuss Suit at SEMA “The Anatomy of a Lawsuit: The Cru-

cial Details of the $42 Million Verdict” on Wednesday, Nov. 1, will feature Tracy Law Firm attorney Todd Tracy at SEMA. According to SCRS, Tracy’s presentation of the case can:

● Help collision repair businesses avoid their own “$42 million dollar verdict.”

● Help clarify the facts that led a jury to conclude that OEM procedures were paramount.

● Define how business decisions made in the course of repair can have dramatic effect on both the repair outcome and ultimate responsibility. “Anatomy of a Lawsuit” will be held from 10:30 a.m. to noon Nov. 1 in Ballrooms D-E of the Westgate Las Vegas, located right next to main SEMA venue Las Vegas Convention Center.

Call orwww.autobodynews.com Email Now for Rates:

800-699-8251

ltedesco@autobodynews.com

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 9

Calling All SC Shops! New Association Forming by Chasidy Rae Sisk

Attention independent collision repair shops in South Carolina! Are you looking to make a difference in the industry and make things better in your business? At 7 p.m. on Oct.r 25, Jeff Franco and Josh Kent of Elite Sales and Marketing will be joined by Brian Davies, President of the North Carolina Association of Collision and Autobody Repair, in Columbia, SC, to discuss founding an association in your state! Franco, Kent and Davies will explain the process of starting an association, discuss the organization of a board for the group, and start planning the new association’s first official meeting. Franco and Kent helped facilitate the founding of NCACAR just last year, and the association has since grown by leaps and bounds, getting involved in local legislative initiatives impacting the industry and educating shops in its area to help members become the best repairers possible. Don’t wait for change—get involved, and BE the change! Contact Josh Kent for more information at josh.kent@elite-sales group.com or 704-998-8553.

Hurricane Irma Could Have Wiped Out 400,000 Vehicles by Staff, F&I and Showroom

As many as 400,000 vehicles in Florida will need to be replaced as a result of Hurricane Irma, including as many as 11,000 fleet vehicles, according to Cox Automotive.

When added to the damage inflicted by Hurricane Harvey in southeastern Texas, Jonathan Smoke, Cox Automotive’s chief economist, estimates that as many as 1 million vehicles will need to be replaced as a result of the two storms. Much of Hurricane Irma’s damage came in southwest Florida, including the Florida Keys, Fort Myers, and Tampa. Commercial fleets likely suffered the brunt of the storm’s impact, as larger rental operators mostly moved their vehicles into parking

garages to protect them from the wind and rain. “We were able to move most of the units to cover and they weren’t damaged or flooded out,” said Lisa Martini, an Enterprise spokesperson. “That made a big difference for us.” Hertz also saw minimal damage to its rental fleet in Florida, said Karen Drake, a spokesperson for Hertz Holdings. Enterprise has reopened most of its Florida offices, except for those in Naples and Key West, where it operates airport rental facilities at Key West International Airport and Florida Keys Marathon Airport. Unlike Hurricane Harvey, which caused heavy flooding, Hurricane Irma damaged vehicles with high-speed winds and heavy rainfall. The storm’s move north along the Gulf Coast side of the state likely resulted in a lesser impact on commercial vehicles, said Smoke.

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AAAS Appoints Danny Durbin as Chairman of Employee Benefit Fund Board

by Chasidy Rae Sisk

In September, the Automotive Aftermarket Association Southeast (AAAS) appointed a new Chairman of the Board of Trustees for the AAAS Employee Benefit Fund. This role has been filled by Danny Durbin of Durbin Auto Parts in Prattville, AL, a company that has been an AAAS association member for more than 40 years, and which Durbin has owned for approximately 20 years. Durbin said he is “pleased and proud to step up and serve as Chairman of this board. I think the health insurance program is one of the most valuable services our association offers. My dad joined the association years ago, and I’ve been around it since I was a kid. We have benefited greatly from our participation in this particular program and membership in the association in general.” Since 2007, Durbin has served on the board for the AAAS Employee Benefit Fund, which enjoys the support and membership of more than 360 companies composed of

more than 3,100 owners and employees who participate. AAAS also sponsors the AAAS Health Fund, a program offering group health, life, dental and vision insurance to member companies. AAAS Chairman Keith West noted, “Danny has served in numerous volunteer leadership roles and is a not only a strong and valuable leader in our association, but also within the aftermarket industry. We are very fortunate to have such a capable and experienced volunteer to serve in this extremely important role.”

For more information about the association, visit www.aaas.us.

Your leading source for SOUTHEASTERN Collision Repair News! southeastern.autobodynews.com

10 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

“Hopefully with the significant preparation time, the losses will be on the low end of the range,” Smoke said. “The westward track helped avoid more damage in Orlando, which is home to more than a third of the total fleet in Florida.” Vehicles in Georgia, Alabama, and South Carolina saw only a “small amount of damage,” Smoke said. In Texas, Hurricane Harvey likely damaged between 320,000 and 580,000 vehicles with fleet making up between 12,000 and 21,500 units. Enterprise Holdings reported it had lost 3,000 rental vehicles, while Hertz reported a loss of 500 units in Texas. Rental operators began shipping thousands of units into Texas following the storm to meet demand for insurance replacement vehicles. Enterprise sent 17,000 vehicles to the state, the company announced. We thank F&I and Showroom for reprint permission.

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 11

Aspiring Shop Owner S.O.A.R.s to New Heights by Tevin Stinson, WS Chronicle

Senior Skip Day could be considered a national holiday. Since the beginning of time, whether you admit to participating or not, high school seniors across the country have picked a day every year and called for a mass boycott of all educational activities. While some remember Senior Skip Day for the fun they had with friends during scheduled school hours, or the reaction from teachers and administrators when they returned to school the next day, Imanne Robinson will remember his Senior Skip Day as the day he changed his life and got the opportunity to follow a childhood dream. On Senior Skip Day in late April, Robinson was showing off his skills on a dirt bike by riding around the city. Robinson, who was then a senior at Winston-Salem Preparatory Academy (WSPA), was stopped by Sgt. Todd Hart with the Winston-Salem Police Department (WSPD). Instead of arresting the teenager, Hart let Robinson go and contacted his parents. Robinson said Hart also contacted the Student Resource Officer (SRO) at WSPA, who told him to report to the school before the end of the day.

“When I got there, they talked to me about what happened and told me what I could’ve been charged with and what I was going to get charged with,” said Robinson. “That’s when Sargent Hart asked me what I like to do, and I said, ‘Fix cars and bikes.’”

After talking with him more and getting to know him better, Hart referred Robinson to the S.O.A.R. (Successful Outcomes After Release), a program designed to provide gainful employment to former offenders who meet program guidelines while supplementing the city’s existing workforce in areas of critical need, and to Dave Moore at Southside Rides. Hart said a lot of young people really don’t know what they want to do, but Robinson was adamant about his love for cars. “He really voiced his interest in cars, and to me going to court or possi-

Mitchell Parts Extended with Strategic Integration Agreement with OEC

Mitchell has announced it has extended Mitchell Parts and signed an integration agreement with OEConnection (OEC). The solution is designed to provide the industry with the largest, most accurate, OEM parts procurement solution and with a more streamlined parts procurement process directly through Mitchell Parts. Mitchell Parts is designed to simplify and streamline parts sourcing and ordering. The agreement with OEC broadens Mitchell’s existing network of part suppliers and now will integrate the most comprehensive OE Dealer network in the collision industry. Over 8,000 dealers across all automakers using OEC’s CollisionLink will process parts orders originating from Mitchell Parts. The integration with OEC delivers value to the industry by simplifying the parts ordering process, while helping to improve accuracy and cycle time. Olivier Baudoux, Vice President, Product Management & Strategy, Mitchell Auto Physical Damage said, “Mitchell Parts is another Mitchell cloud-based solution and reinforces Mitchell’s commitment to its rapid

evolution to a full cloud and browserfriendly offering. We’re excited about integrating into OEC’s CollisionLink solution and robust dealer network. Our users will benefit from a streamlined parts procurement process, leading to shorter cycle times and a more consistent experience.” Bill Lopez, Vice President & General Manager, Collision for OEC added, “Mitchell has had a strong longstanding relationship with OEMs, and this agreement shows Mitchell’s commitment to delivering a best-in-class solution for the industry by more deeply connecting our dealer network with Mitchell repair facilities. Our mission has always been to streamline the dealers’ order fulfillment workflow in addition to driving incremental sales opportunities, and integrating CollisionLink with an estimating platform through Mitchell Parts will do just that.” Mitchell Parts, powered by uParts, is already available today to hundreds of repair facilities using Mitchell Estimating/Ultramate software and offers: • A cloud-based solution for real-time part pricing and availability for all See Mitchell & OEC, Page 31

12 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

ble jail isn’t really going to help anybody, so when he told me about his interest, I knew Pam Peoples-Joyner had this program here with the garage,” Hart said. Robinson didn’t waste any time reaching out to Pam Peoples-Joyner to find out more about the chance to work at the garage. In fact, he left a message that night, he said. “I’ve been into cars since I was in the fifth grade. It’s something I’ve always been interested in,” said Robinson. “My dad is a mechanic, so it’s always been there.” Once meeting Moore, owner and founder of Southside Rides, which operates in conjunction with Forsyth Technical Community College, the Forsyth County jail, and the 21st District Court of North Carolina to educate its participants in auto body repair and servicing and to provide alternative vocational opportunities for incarcerated citizens, Robinson learned the ends and outs quickly and started working on his own projects. In just six months, he painted the family car himself and put a new engine in the car with some help from his father. When discussing Robinson’s progress, Moore said he loves to see a young person like Imanne, who knows what he wants to do with his life.

“He came in like, every day, even on the weekends, and built a relationship with the guys,” said Moore. “It thrills me because I love to see a kid make up his mind and understand what he needs to do to be successful, because a lot of them don’t know what they want to do while they’re in school.” Since that day he was caught joy riding in late April, Robinson’s passion for cars has continued to grow. He is now enrolled at Forsyth Tech Community College, where he is taking classes on collision repair. After hearing the progress Robinson has made in such a short period of time, Hart told him he was a role model to younger kids in the community. He said, “You’re actually being a leader to other people who you don’t even realize.” Robinson said his goal once he finishes at Forsyth Tech is to one day own a shop. Moore, who has been in the business for more than 20 years, said he could see him and his father opening a shop. “I want to find a good job at a shop and work my way up to owning my own shop,” said Robinson. “I think the hardest part would be finding hard workers who are willing to work every day.” We thank WS Chronicle for reprint permission.

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 13

Massive $23 Million Auto Insurance Fraud was an Intricate Operation in South Florida by Paula McMahon, Sun Sentinel

When the feds started scrutinizing two men accused of running a massive $23 million auto insurance fraud at chiropractic clinics in South Florida, their defense attorneys say investigators had a theory the ringleaders were part of the Russian mob. The two men, arrested this month, had much in common—they emigrated from Ukraine and became U.S. citizens more than 20 years ago, settling into South Florida’s Orthodox Jewish community. Felix Filenger was the flashy one who drove a Bentley, bought a $64,000 watch and carried a black suitcase stuffed with cash he doled out as kickbacks, according to the feds. Andrew Rubinstein, aka Andrei Rubinsteyn, was the quiet one, and so far, little information has emerged about him. His attorney said Rubinstein is a widower who is raising his 15-year-old daughter alone since his wife died from a stroke a year ago. Prosecutors did not charge either man with being involved in the Russian mob. They’ve never even hinted publicly that it had been part of their investigation. But Filenger’s attorney, Michael Tein, said in court that authorities had initially investigated the alleged fraud as if it were an organized crime case. Continued from Cover

Structural Blue

plied in a 12-step process that involves a mighty 20 individual quality inspections—hence the limited daily production volume out of Lexus’ Motomachi, Japan factory.

It’s launching on special edition LC Structural Blue editions. A butterfly inspired it, says Lexus. The Morpho butterfly has, at least to the human eye, deep and

On Oct. 13, he told the Sun Sentinel his client will fight the fraud charges. “The government spent years and millions of taxpayer dollars wiring up witnesses and tapping phones thinking these clinics were a front for the Russian organized crime network,” Tein said. “As it turned out, they were dead wrong, but after spending all that time and taxpayer money, it’s perfectly understandable that they felt compelled to save face and bring some charges.” The feds allege the men ran a highly profitable crime ring of corrupt clinic owners, chiropractors and lawyers who operated mostly in Broward, Palm Beach and MiamiDade counties. Prosecutors say it was an elaborate operation that—by conservative estimates—defrauded more than $23 million from 10 auto insurance companies between 2010 and this year. Filenger, 41, of Sunny Isles, and Rubinstein, 48, of Miami, are jailed on charges of racketeering and mail fraud conspiracies, wire fraud, health care fraud, and making false statements. If convicted, they could face 20 years or more in federal prison, prosecutors said. Investigators said the men paid kickbacks of $500 to $2,100—per patient—to tow truck drivers and body

shimmering blue wings, although they’re actually colorless—a lattice on the surface of the wings distorts light to make them appear blue. To replicate this, Lexus applies paint containing ultra-fine nano-structures in 15-micrometre layers. Normal metallic paint pigments reflect barely 50 percent of visible blue light. The ones in the new Structural Blue color reflect almost 100 percent. Each car carries 300 grams of paint pigment— within this, about 300 billion pigment flakes… But if you’re thinking that, actually, it doesn’t look all that impressive in the images, rest assured: Lexus adds that “it is designed to work on the eye rather than on a camera lens.” We’ll thus have to take the firm’s word for it that its 15-year labor was not in vain.

Thanks to Motoring Research for reprint permission.

14 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

shop workers who agreed to illegally steer accident victims to chiropractic clinics, which were secretly owned by Filenger and Rubinstein. Federal agents used wiretaps and cooperating witnesses to record conversations and plowed through medical and financial records in an investigation that went on for several years. When the men realized they were under criminal investigation, federal agents said they began investing in a kosher bagel shop in North Miami Beach to try to conceal and protect their cash and other assets. Prosecutors say this is how the fraud operated: Filenger and Rubinstein recruited tow truck drivers, body shop workers and other people who had access to supposedly confidential traffic crash reports. Their job was to refer drivers or passengers who were involved in a crash to the chiropractor clinics These so-called “runners” were paid illegal kickbacks, ranging from $500 to $2,100 per patient, to solicit accident victims to seek unnecessary treatment at the clinics, according to

the charges. Investigators said Filenger and Rubinstein took over failing and troubled clinics and concealed their ownership by having chiropractors and others register the practices in their names. Filenger had an office in two of the clinics in Sunrise and North Miami, investigators said. The defendants then told the doctors and chiropractors what treatments they wanted performed, based on the financial return and not the medical need, investigators said. Medical professionals who wouldn’t “play ball” were fired, prosecutors said. Some attorneys also paid kickbacks of $2,000 per patient to the fraudsters for the clinics to refer patients to them so they could file bodily injury lawsuits on their behalf, investigators said. Prosecutors say the fraud involved rapidly running up the medical bills by requiring patients to get a lot of treatments—the goal was 30 visits each—and expensive tests in a short period of time. The fraud took advantage of no-fault provisions in Florida’s See $23M Insurance Fraud, Page 16

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Continued from Page 14

$23M Ins. Fraud

Personal Injury Protection insurance (PIP), which require auto insurance providers to pay up to $10,000 for emergency treatment, authorities said. The patients’ records all indicated they had an “emergency medical condition” and a documented pain level of 7, 8 or 9—the high end of the scale— regardless of what they had reported to staff, prosecutors said. Patients were told to show up for a lot of appointments – five sessions a week for the first couple of weeks, then three per week for a while. Many were ordered to undergo unnecessary and painful nerve tests that cost about $1,000 each and others were sent for unnecessary MRIs, according to investigators. Clinic staff were told to give all patients a “goody bag” containing neck braces and other medical equipment “whether they need it or not” to run up costs, investigators said. If patients balked, saying they weren’t benefiting from the treatment or didn’t have time for so many appointments, an attorney or someone else would be assigned to tell them they had to do it if they wanted to try to collect money by filing a lawsuit or insurance claim. Though no patients were criminally charged in the indictment, investigators suggested some of them may have tried to claim compensation for their supposed injuries. Tein said his client helped make the clinics profitable by running the business side and let the doctors and chiropractors handle the medical side. In one of many conversations secretly recorded by the feds, one of the chiropractors fretted about what would happen if an insurance company became suspicious and sent an undercover patient or “plant” into the clinics. Prosecutors referred to the clinics as “PIP mills”—likening them to the pill mill clinics that recently plagued Continued from Cover

400K Cars

damaged vehicles with high-speed winds and heavy rainfall. The storm’s move north along the Gulf Coast side of the state likely resulted in a lesser impact on commercial vehicles, said

South Florida and made massive profits by illegally dispensing pain pills to drug dealers and “patients” who then sold the drugs on the street. In related and similar cases, state prosecutors have filed criminal charges against several attorneys and people who illegally recruited patients for the chiropractic clinics. Federal prosecutors said some of the people facing state and federal charges are cooperating and are expected to testify against Filenger and Rubinstein. One “runner” told investigators he had referred about 750 “patients” to the corrupt clinics and that he was paid as much as $2,000 per referral, they said. He estimated he was paid more than $1 million, much of it in cash over several years. Rubinstein has agreed to remain locked up, for now. Filenger, who last week filled the courtroom with more than 35 supporters, including several rabbis, failed during a hearing to persuade a judge to release him. Prosecutors said they were concerned about his concealed assets and his frequent travel and strong connections to Ukraine and Israel. The judge ruled the risk was too high that Filenger might flee prosecution. “I would be rather surprised, under these circumstances, if this defendant could resist the temptation to flee,” U.S. Magistrate Judge Lurana Snow said in her ruling. Filenger told court officials he had no assets and no liabilities but said he earned $100,000 a year from the bagel store. “He is moving his money around … it looks to me, to try to hide it,” FBI Agent Ira Fair testified during the court hearing. Prosecutors accused Filenger of deliberately hiding his assets, property, cash and luxury items – by placing them in trusts or in his wife’s and mother’s names. He began doing so after federal agents first searched one

of his properties in 2015, authorities said in court. They said he used to own and drive high-end Bentley cars, at least one of which he told witnesses was held under his mother’s name but really belonged to him. Filenger also bought a $64,000 rose gold Montoya watch, more than $80,000 worth of designer bags and other very expensive jewelry for his wife and himself, they said. Filenger received hundreds of thousands of dollars from the clinics, including $591,000 from two clinics in Hollywood and Sunrise between 2010 and 2015, prosecutors said. They said he also transferred $500,000 to what appears to be an asset protection or estate planning law firm. Tein said his client did nothing wrong but took steps to try to protect his family in case his accounts were frozen by the government. Filenger was driving a 2014 Toyota Camry in the months before he was arrested, the lawyer said. Tein and Rubinstein’s attorney, Marc Seitles, both said they think prosecutors are “overreaching” by filing federal racketeering charges against the men. “It’s simply over the top,” said Seitles. Others who have been charged: Federal prosecutors have also charged chiropractor Olga Spivak, 59, of Hollywood, with racketeering and mail fraud conspiracies, wire fraud, health care fraud, and making false statements. Richard Yonover, 54, of Boca Raton; Jason Dalley, 66, of Lake Worth; and Linda Varisco, 55, of Coral Springs, are facing charges of conspiracy to commit mail fraud, wire fraud, and health care fraud. Dalley, an attorney who practices in Delray Beach, is scheduled to surrender in court next week. He is accused of paying more than $1 million to solicit clients and refer them to the clinics. Spivak, Yonover, who operated clinics in Florida, and Varisco, also a

chiropractor, were all released on bond. Prosecutors said these chiropractic clinics were some of the businesses used in the fraud:

Smoke. “Hopefully with the significant preparation time, the losses will be on the low end of the range,” Smoke said. “The westward track helped avoid more damage in Orlando, which is home to more than a third of the total fleet in Florida.” Vehicles in Georgia, Alabama,

and South Carolina saw only a “small amount of damage,” Smoke said. In Texas, Hurricane Harvey likely damaged between 320,000 and 580,000 vehicles with fleet making up between 12,000 and 21,500 units. Enterprise Holdings reported it had lost 3,000 rental vehicles, while Hertz reported a loss of 500 units in Texas.

Rental operators began shipping thousands of units into Texas following the storm to meet demand for insurance replacement vehicles. Enterprise sent 17,000 vehicles to the state, the company announced.

16 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

● Advance Medical Associates and Forme Rehab, 7000 Oakland Park Boulevard, Sunrise

● Hollywood Wellness and Rehabilitation Center, 6030 Hollywood Boulevard, Hollywood ● Wellness and Rehabilitation Center, 290 Northwest 165th Street, MiamiAccumed

● Medwell Wellness and Rehabilitation Center, 2250 Palm Beach Lakes Boulevard, West Palm Beach

● Total Wellness Chiropractic Center, 1009 N. Dixie Highway, Hallandale Beach ● West Palm Beach Wellness & Rehabilitation Center 2695 N. Military Trail, West Palm Beach ● Global Wellness and Rehabilitation 601 East Sample Road, Pompano Beach

● Delray Chiropractic and Wellness Center 1200 Northwest 17th Avenue, Delray Beach

● Palm Beach Chiropractic and Wellness Center, 2695 N. Military Trail, West Palm Beach

● Osceola Chiropractic & Wellness Center 1065 N. John Young Parkway, Kissimmee ● Metro Chiropractic & Wellness 5979 Vineland Road, Orlando

We thank the Sun Sentinel for reprint permission.

www.autobodynews.com

We thank F&I and Showroom for reprint permission.

Continued from Cover

$42M Verdict

repair was done according to its specifications as opposed to Honda’s. Boyce Willis said in a deposition that the facility in 2012 bonded a replacement roof to a 2010 Honda Fit in clear contradiction to the OEM repair procedures. (Willis insisted he knew using the 3M 8115 panel bonding adhesive was a better repair, as did the defense during the trial.) Ford GT engineer and plaintiff consultant Neil Hannemann wrote that in his expert opinion, the failure of the roof of the Seebachans’ 2010 Honda Fit during a crash compromised the overall structure and collision energy management of the vehicle—contributing to the Seebachans being trapped inside and a subsequent fire. “According to John Eagle’s corporate representative, in sworn testimony taken on July 7, 2017, State Farm dictated to John Eagle how the car was to be repaired, i.e., to use adhesive rather than spot welding,” the lawsuit read. “Furthermore, according to John Eagle’s corporate representative, State Farm can ‘trump’ the OEM (Honda) specifications because the repair facility needs to get paid. However, profits should never trump safety.”

Tracy Firm to Discuss Suit at SEMA “The Anatomy of a Lawsuit: The Cru-

cial Details of the $42 Million Verdict” on Wednesday, Nov. 1, will feature Tracy Law Firm attorney Todd Tracy at SEMA. According to SCRS, Tracy’s presentation of the case can: ● Help collision repair businesses avoid their own “$42 million dollar verdict.”

● Help clarify the facts that led a jury to conclude that OEM procedures were paramount.

Call orwww.autobodynews.com Email Now for Rates:

800-699-8251

ltedesco@autobodynews.com

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 17

Aberdeen, NC Car Restoration Shop Under Investigation by DMV by Diane Wilson and Catherine Chestnut, ABC 11 Eyewitness News

More than a dozen classic car owners, including many soldiers, say they are out thousands of dollars thanks to Icon Customs, a car restoration shop in Aberdeen, NC. “I’ve spent the last two weeks scouring for my parts,” said Nick Bortnick, whose 1967 Ford Mustang Fastback was supposed to be restored at Icon Customs.

Nick dropped his car off back in 2015, where he says at first all he wanted was for the car to be sandblasted, painted with primer, and undercoated. He paid $1,500 for that work, and then the owner of Icon, George Fredericks, surprised Nick with some big news—they would restore his car free of charge. Nick was told he would be the first soldier to have his car restored under what’s known as the “Wheels from Valor” program. It was a program Frederick said he started at Icon. Hearing this news, Nick says he was ecstatic. However, that excitement began to fade after he says little progress was made on his Mustang as month after month passed. Nick says he supplied many parts to Icon and would try and help in any way since he knew the Wheels from Valor program was going to help him get his car back to being restored.

After two years of waiting, Nick finally went to Icon to get his car. He says it was heartbreaking. “When I picked up the car, it was actually sitting in that corner behind you, jammed behind a lot of these cars

that are torn apart,” he recalled.

More claim work not done Alan Lancaster, another soldier, says he was also taken advantage of by Icon Customs. Alan now lives in California. But while stationed at Fort Bragg, he took his red 1966 Mustang Coup to Icon in 2014. For Alan, this was more than just a car. It was his first car; it was a priceless car. He paid $17,000 to Icon to bring his Mustang back to being roadworthy. In August 2015, after returning from a deployment, Alan said he was disappointed that his car was not finished after writing so many checks. It was then he said Fredericks told him that Wheels from Valor would be taking Alan’s project to the next level in appreciation for his service. Alan was thrilled, but two years later, this is how Alan’s car looks after being at Icon since 2014. “The car that I once had running and driving, to no longer being close to that,” he said.

Soldiers weren’t the only ones asking questions. BJ Beal paid Icon $5,000 to do some body work and paint his 1977 Ford Mustang Cobra. However, he says two years later, he is left with a big mess. BJ explained the rear end of his car, which was already done, and he says should have never been touched, is completely gone. This is what his car looks like now. “I don’t even know if I will—or when I will—be able to do anything with it. That’s the frustrating part,” said BJ. For owners like BJ, restoring their car was something they say they saved up for years to be able to do. They had taken their cars to Icon to see their dream come to life. Now, many are left wondering if they will ever have a chance to see that dream again. Others are left frustrated over not only having their dream shattered, but the financial loss this tragedy has cost them.

18 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

One vehicle owner, who asked us to not use his name, says he paid Icon more than $30,000 to restore his 1964 Chevrolet C-10. He has a stack of invoices that show the new parts he paid

for, but after waiting for two years, his truck was left looking like this. Another issue the vehicle owner faces is the VIN number—it’s missing from his truck. He told us that Fredericks told him he removed the VIN number to work on restoring his truck, but says when he talked with the DMV, they informed him that that’s illegal.

Action against Icon Customs The Aberdeen Police Department, the NC DMV License and Theft Bureau, and the SBI are now involved after re-

ceiving several complaints. According to the police report from the Aberdeen Police Department, more than a dozen customers of Icon Customs complained about work not being done on their vehicles.

A representative with the DMV shared with us this statement: “On 08/21/2017, NCDMV License and Theft Inspectors received information that Icon Customs was compromising vehicles by switching and/or removing PVINs. A PVIN is known as a Public Vehicle Identification Number. By using the statutory authority granted by the North Carolina General Statues, Inspectors entered the business located at 10570 NC Hwy 211 East in Aberdeen. Once inside, Inspectors located the owner, George Steven Fredericks, working in a back shop area. Inspectors located in the back shop area where Fredericks was working the vehicle that was described to Inspectors as having the PVIN compromised. See Under Investigation, Page 23

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 19

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.

IGONC’s Revived ASTE Yields Great Responses with Chasidy Rae Sisk

nication,” while ACDC CEO Craig Van Batenburg’s presentation on “Electrical Analysis for the Confused” helped technicians understand Ohm’s law, volts, amps and resistance. Chris Peace, instructor for AC Delco, provided an overview of evaporative emissions and the systems that control them in “EVAP Diagnostics,” and “Light Duty Diesel: Exhaust Aftertreatment Systems,” taught by CARQUEST instructor Joseph Smith Jr., covered the operation and design of complex light duty diesel vehicles. During lunch, Chris Chesney of the National Automotive Service Task Force (NASTF) presented “Aftermarket Access to OEM Service Information,” discussing current laws that require all U.S. vehicle manufacturers to provide independent technicians with the same level of access to service information made available to their franchise The ASTE Tradeshow provided an opportunity for attendees dealer techs, and how these to meet with vendors entities can work together to industry has to offer. When you are in provide the vehicle owner with the a particular industry, nothing is more best possible customer service expehelpful than having time to share inrience. formation and tips with others in the Friday afternoon offered four more same boat as you are. We received a sessions from which to choose. During lot of wonderful responses to the “Strategies for Effective Leadership,” event, and vendors are already excited Newton suggested ways to implement to return next year after getting such a effective leadership strategies in order great response from our members and to create a positive, empowering culattendees.” ture for employees. Expanding on his On Thursday night, IGONC hosted a pre-party at World of Beer in Cary, NC, for early arrivals. The educational portion of the ASTE began on Friday morning with a full-day course on “Getting to Yes with Confidence,” taught by 180BIZ founder Rick White. White’s presentation provided service advisors with the necessary Hiester Automotive was voted “Most Outstanding Booth” tools for ensuring success in by attendees. (l to r) Gary Summerfield of IGONC, Wanda each sales situation. Hinnant & Steve Jones of Heister Automotive) From 9 a.m. – noon, attendees chose from four valuable morning session, Van Batenburg’s “Intraining sessions. Maylan Newton, troduction to High Voltage Systems” owner of ESI Seminars, focused on covered the components used in high delivering superior customer service voltage systems. In Peace’s “Diagnosduring “Customer Care and Commu- ing Multiplexed Data Business NetThe Independent Garage Owners of North Carolina (IGONC) hosted its 2017 Automotive Service and Technology Expo (ASTE) on Sept. 29–30 at the Embassy Suites and Convention Center in Cary, NC. According to IGONC Executive Director Bob Pulverenti, “The event went great! The ASTE is an annual weekend of training, presentations, demonstrations and social events for independent garage owners, service advisors and technicians. It helps our members to have this time to learn, share information, and view the newest products and technology our

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According to Pulverenti, “After the classes were through, attendees had a pizza party in the hotel atrium during the manager’s reception, and then they had a great time at our funfilled casino night. There was poker, black jack, roulette and more, where folks played for tickets for chances to win Amazon Echos, new tablets, camping gear and a lot of other great prizes.” Saturday morning’s agenda boasted five beneficial learning opportunities. NAPA’s Duane ThrockmorIGONC members enjoyed networking and fun during ton taught important skills Saturday evening’s Casino Night for working with “Subaru Diagement strategies implemented in agnostics,” White reviewed common selling errors service advisors make in Advanced Tier platforms. “Advisor Mistakes and How to Avoid Following Friday’s training sessions, attendees enjoyed an evening of Them,” and attendees learned about networking with peers at the Hotel “Plug-in Hybrid/EV Tech Tips on Managers Reception, IGONC’s Casino Chevy Volt and Nissan Lead” with Night and a Hospitality Suite. See Great Responses, Page 54 works,” technicians learned to hone their problem-solving skills for serial data failure modes in multiplex networks, while Smith’s “Scan Tool Analysis: Modern Air/Fuel Management” concentrated on air/fuel man-

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www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 21

Continued from Page 3

Launching Column

cation programs in the industry for an international company like Honda,” said Ledoux. “I’ve been blessed to work with so many terrific people at Honda, our great ProFirst certification team and all of the wonderful collision industry people with whom I’ve been able to interact. I’m looking forward to continuing to serve the collision industry in a different capacity.” Autobody News reached out to Ledoux to learn more about his career in the collision repair industry and find out what readers can expect in his new column.

Congratulations on your recent Q: retirement Gary! How did you get your start in this industry? Prior to Honda, I worked for A: several years at two automotive jobbers that also sold paint and

body supplies, where I was first exposed to the collision industry. One of my first jobs was custom-mixing pints of DuPont Lucite lacquer and DuPont Duco lacquer. Then, I sold

new and used trucks at a Ford dealership, became a service advisor at another Ford dealership, and worked at various capacities including parts manager at dealerships for Honda, Acura, Mercedes, Toyota and Subaru.

What are some of the different Q: roles you held while working at Honda?

I started at American Honda on A: July 5, 1988 as a district parts manager for the Acura Division cover-

ing the New England region including NH, VT, MA, CT, RI and upstate NY. My main focus was ensuring parts departments were properly stocked and the parts managers were trained in the many newly opened Acura dealerships. A year later, I transferred to the southeast area doing the same job in FL, GA, SC, NC, VA and WV. I then accepted a job as a trainer for American Honda, moved to California and began working out of the national office. Forty weeks a year for the next six years, I traveled to different cities to train parts managers on proper parts department management, including inventory control, cost con-

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trol and asset protection. I started working with Honda auto and Acura dealer parts managers and eventually included parts managers at Honda motorcycle and power equipment dealerships. At the request of our Export Department, I created materials and taught classes tailored specifically for our auto and motorcycle dealers and distributors in Central and South America and the Caribbean. In 1998, I accepted a promotion and began working in the Parts Marketing Department, concentrating first on the wholesale mechanical side of the business and then on the collision side. The last four years or so have been especially rewarding being on the leading edge of the current industry wave.

Is there a special memory you Q: would like to share during your time at American Honda?

As a young trainer for Honda A: covering basic parts department operations, I encountered an older gen-

tleman who had been a parts manager for 30-plus years. I was intimidated. “What can I possibly tell this guy that he hasn’t heard a million times before?” I thought.

At the end of the three-day seminar, he came up to me, shook my hand and said, “Thank you!” I asked what he was thanking me for. He replied, “Thanks for reminding me about all the basic things I need to do—but have since forgotten.” The moral is: “Basics matter.”

What prompted you to retire Q: and what can readers expect from your new column “In Reverse?”

What prompted me to retire? A: Thanks to some planning, some luck and the proper alignment of the

sun and stars, I just knew it was time. My last official day with Honda was October 1. Not one to waste time, I began writing for Autobody News on October 2. My ongoing column—“In Reverse”—will be launched in the November issue. It will focus, not surprisingly, on the history of the industry. Eventually, I’ll produce other feature articles covering all facets of the collision repair industry, including a closer look at OE certification programs.

We’ve heard about another you have been working Q: project See Launching Column, Page 44

Continued from Page 18

Under Investigation

The vehicle had PVINs from two different vehicles, and with the observations made by Inspectors, it was evident that Mr. Fredericks had used two different PVINs that were removed from other vehicles. The investigation also revealed that Mr. Fredericks had a long line of customers that he has not delivered vehicles as promised. Inspectors were able to determine that Mr. Fredericks also possessed vehicles that belonged to customers that the PVINs were removed. The DMV License & Theft Bureau is also investigating claims surrounding a charity/raffle/lottery program purportedly run by Mr. Fredericks called ‘Wheels for Valor.’” The DMV’s investigation is ongoing, and the SBI confirms they’re also involved. While the investigation remains ongoing, Icon Customs is closed. The big task that lies ahead is getting all the vehicles and their pieces back to their rightful owners.

Owner of Icon Customs Responds

The owner of Icon Customs is George Fredericks. He sat down with me along with his wife and attorney for more than two hours to explain what he says happened. Fredericks was adamant he did not do anything criminally wrong, and that the DMV won’t find anything illegal. He does admit to taking off the PVIN numbers on some of the vehicles he was working on, but says it was only during the restoration process. He says there was never any criminal intent. He does admit some of the vehicles did take longer than expected. He says he did all of the work that the four customers I talked with paid for, and for their vehicles to be fully restored, more money was still owed. He says the reason why the restoration was not completed on time was because he could not hire competent workers to do the work. Fredericks admits to taking on too many jobs when he still had several jobs to finish. He says he started the Wheels from Valor program to only help soldiers. He says the reason why no soldiers’ vehicles were ever completely restored through the program was because there was not enough money raised. He says that while he did sell

raffle tickets, have a car cruise-in, and also had a GoFundMe page for the Wheels from Valor program, it did not bring in much money at all. Even though tickets were sold for the car raffle, he says no car was ever raffled off because only $1,520 worth of tickets were sold. He says the car cruise-in made no money since it cost so much for insurance. Fredericks said the GoFundMe page only raised $575. He does admit that a paint company paid him $20,000 for paint that would go toward the soldiers’ vehicles. Fredericks said that money was for him, and he donated it all to the Wheels from Valor. When I asked him which vehicles that money was used for, he said Icon Customs spent well over $100,000 on parts and labor for soldiers’ vehicles that were part of the program. Fredericks says he wanted nothing more than to help these soldiers, and he feels bad the program never took off to restore their vehicles. He says he has apologized to many of the customers whose vehicles are not done and are still in pieces, but he said many of them were ready to be painted, so that’s why they were com-

pletely gutted out. He says he still wants to do the jobs, but has had a tough time getting back into the shop. He says once the DMV shut down Icon Customs, he had not been allowed back in until Sept. 22. He says that during those weeks he was not allowed in the shop, customers came in and took many parts that did not belong to them. The bottom line, Fredericks says, is that he believes someone is setting him up, and he hasn’t done anything wrong except take longer than expected on restorations. At this point, vehicles are still in the warehouse that Icon Customs rented. We thank ABC 11 Eyewitness News for reprint permission.

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@autobodynews

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 23

In Reverse

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

A Monthly Trip Where Time and Space are Reversed to Revisit People, Places and Events with Gary Ledoux

The Seasons of the Industry Welcome to In Reverse, a new column for Autobody News. Each month, we’ll put time and space in reverse to revisit the people, places and events that brought the collision industry to where it is today. For many people, working in the collision industry must seem like an everyday grind that is always the same—a never-changing, endless stream of todays with the same challenges. Well… some things in the collision industry are the same today as

they were 100 years ago, but much has changed. Historians and writers like to compartmentalize changes into periods or eras. In some instances, it is a specific point in time, perhaps a day or a month, that marks those changes. In other cases, it is a period of time defined by events or trends. Some are very distinctive, starting and stopping while others tend to run into one another. Whatever the case, it is interesting to look at how these slices of time helped define the evolution of the collision repair industry. Consider the following:

Pre-1900: Although motor vehicle crashes were still a few years off, several companies that would later serve the collision repair industry had their start way before the automobile even existed.

1900–1910: Automobiles, or horseless carriages, were new—and everything about them was new. The infrastructure to sell, service and repair automobiles had to be invented. Subsequently, blacksmiths, machinists, bicycle mechanics and even plumbers and chauffeurs maintained and repaired cars. There was little, if any, distinction between mechanical and body repairs.

1910–1915: This period marked a transition from the blacksmith or bi-

cycle mechanic repairing a car under the shade of a tree to the earliest auto repair businesses. In large cities, automobiles had no place to park, especially if its well-to-do owner would be working in the downtown district for the day. The concept of the parking garage was born, imitating the liverystable model for horses. It did not take long for some enterprising people to figure out that an automobile parked for the entire day could very easily be serviced or repaired during that period— hence the birth of a term we still use today: repair garage.

1916–1925: Early automobiles were of the open-top variety. In snow-belt regions of the country, they were used only in the summer months and kept in the garage during the winter. Eventually, automakers realized the automobile needed to be drivable in all sorts of weather. Thus, during this period, more cars began showing up at dealer showrooms with enclosed bodies. Driving year around meant more miles driven, in more inclement weather—and more auto accidents.

C. 1939 > Steel, rather than wood, became the body material of choice and body-on-frame became the car-building design of choice. Some car makers would experiment with aluminum and fiberglass, but steel was king.

1941–1946: Life pretty much stood still while the Allies were making the world safe for democracy. But the stage was being set for an explosion of another sort—the post-war American economy, and the birth of the collision repair industry.

1946 >: In the post-war economic boom, the car industry took a giant leap forward. Those were heady days at General Motors, with chief body designer Harley Earl placing fins and chrome on everything. Cars went from black and muted greens and blues to vivid two-tone eye-catchers. Most in the auto industry in general, and collision repair industry in particular, agree that the post-war boom gave birth to

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what we know today as the modern body shop business model. In the postwar boom, the term “Paint and Body” shop was born.

1962, September: For the first 10 orso years after WWII, the collision repair industry was simply a growing number of independent and disparate businesses spread across the U.S., with little or nothing to hold them together as an industry. Gradually, small, local auto body associations and guilds began to emerge. Then, the industry began to coalesce. In September 1962, a major breakthrough occurred when the first industry trade journal, Auto Body News and Good Car Care magazine were published. Finally, the industry had a voice! Some local auto body associations published their own newsletters or magazines, but there had never been anything like this. With the magazine, industry leaders began to emerge. 1960–1974: Horsepower was explod-

ing through the chromed grills of American cars that grew ever-larger with each passing year. Ten miles per gallon wasn’t a problem when gasoline was $0.25 per gallon. However, that all came to an end in 1974 with the first gas crisis. All of a sudden, small, imported cars were “in” and body shops had to learn how deal with this new breed of transportation. Accessing paint and body parts for imports became an instant issue.

1979–1990: Two gas crises within a short time of each other convinced America that their love affair with gas guzzlers was over. Small, lighter cars were the future. It was the advent of unibody construction and some new technology in auto building. Some shops thought it was a passing fad, and that body-on-frame construction would return. They were mostly wrong, and thus began the gradual but incessant reduction in the See In Reverse, Page 50

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 25

Southeast Associations

NCACAR Celebrates One-Year Anniversary with Exciting, Informational Member Meeting with Chasidy Rae Sisk

On Thursday, Sept. 21, the North Carolina Association of Collision and Autobody Repair (NCACAR) held a membership meeting at the Burlington Shrine Club. The group celebrated its first anniversary with a highly informative meeting that included presentations from Keith Manich of ATI, LIABRA’s Ed Kizenberger, and NC Insurance Commissioner Mike Causey. According to NCACAR President Brian Davies, “The event was well-attended with approximately 85 people, and everyone was very interested and attentive to learning. They participated, engaging in questions and discussions.

NCACAR President Brian Davies with NC Insurance Commissioner Mike Causey

“The main goals of the event were to provide negotiating tips, and to congratulate Mike Causey on his new office and welcome him back to our meeting. We had more attendees than anticipated with lots of RSVPs at the last minute, and we had three new shops join as members: Midtown Auto Body, Asheboro Body Shop, and Bill Black’s Chevrolet.” Keith Manich, Director of Collision Services for the Automotive Training Institute (ATI), presented “Planning for and Executing Successful Collision Repair Negotiations,” and Davies praised the seminar as “an extremely educational piece on negotiating.” LIABRA’s Executive Director Ed Kizenberger was also in attendance to discuss legislative issues, particularly timeframes related to first-party appraisal inspections and any re-inspections for supplemental damages. The presentation also focused on future legislative and regulatory initiatives, as well as discussed knowing your legislators and understanding the legislative process. A question and an-

swer session followed. Attendees were especially excited to hear from newly elected NC Insurance Commissioner Mike Causey, who spoke to the group with four of his new employees. Davies shared, “Mike was supportive of our association and outlined the responsibilities under his control, which is a huge list of duties. He was able to hire 46 additional new personnel, one of which will be dedicated to handling specific issues with auto body complaints and hopefully reducing the time required to deal with an urgent issue. In addition, he outlined how best we as a group can create change in our industry, which is through a personal relationship with our local elected officials. So to help our members find their elected officials, we will create a link through the NCACAR website to the North Carolina site (https://www .ncnonprofits.org/voice/find-electedofficials) to encourage involvement with the people who can influence change.” Causey is also in the process of opening an office in Charlotte, and when asked about the issue of photo claims, Causey promised that he is investigating the complaints lodged about unqualified people writing these estimates, leaving his constituents driving unsafe vehicles. According to NCACAR Board Member Elijah Winans, “Commissioner Causey gave our attendees an inside perspective into the complexity of the NC Department of Insurance and explained how we, as an association, can make impactful changes. He displayed acute knowledge of our industry’s challenges and voiced that participation in associations like NCACAR foster the greatest opportunity for positive change.” “Mike understands the issues we face as an industry, and he stated he is committed to helping us improve the sustainability of the collision industry in North Carolina. In addition, he is well aware of the positive impact we are making as an association to keep his constituents safe in correctly repaired cars,” Davies added. During the meeting, Davies also took the opportunity to share some of

26 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

his experiences from ABAT’s Texas Auto Body Trade Show, including a recap of Todd Tracy’s discussion on how to “keep sharks like him from swimming in your shop.” Davies discussed the 13 safety rules on following

“It was a good vibe as we celebrated our one-year anniversary,” Davies said. “Our goal was to share information and create an environment of learning, friendship and support. The facility was nice, and we enjoyed a great steak and potato dinner. PPG helped sponsor association t-shirts that we sold, and quite a few industry vendors came to support the association. We raised around $2,500 to help our endeavors to sustain the industry in our state, and at the end of the night, everyone seemed really happy Around 85 collision repair professionals gathered at as they interacted with their NCACAR’s one-year anniversary meeting peers.” “The September meeting of the OEM specifications, educating the consumer, scanning, documentation and NCACAR was another step forward in general ethics, such as the fact that the the association’s progress toward our customer’s safety is more important mission to continually improve the professionalism and business practices of than a shop or insurer’s profit margin. Overall, Davies believes the event those engaged in the collision repair inwent very well. See NCACAR Celebrates, Page 66

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Continued from Cover

Photo Estimating

estimates are so far off that repairs cannot begin until the insurance company comes out on a supplement.” “The major benefit to photo claims is that the consumer is in control of starting their claim, which makes them feel empowered, but that is where the convenience ends,” agrees Eric McKenzie, Director of Body Shop Operations for Park Place Dealerships. “The major drawback is that these estimates are being written significantly lower than they should be, and we are seeing estimates that are nowhere close to what they should be. For the consumer who elects not to repair their vehicle, they are being grossly underpaid for the money that is rightfully theirs from a claim, but when the vehicles do make it to a repair shop, it is adding significantly more time to the repair planning and supplemental processes.” Weighing in, Burl Richards, owner of Burl’s Collision Center, adds, “The estimates are grossly unrealistic—sometimes, only one-tenth of the actual cost to make the repair! In theory, it would be a great way to save time if the shop could call in a supplement, get approval that day and continue with the repair, but it seems to put much more administrative burden and time on the shop, straining our relationship with the insurers, plus the insurer’s initial estimate is basically worthless, so we have to start from point A.” Richards believes that photo estimating only benefits the insurers, as they save money on hiring estimators and other associated costs. Kiffe agrees that photo estimating makes financial sense for insurance companies, but he points out that it also causes unnecessary friction between the shop and the insurance carrier. “The estimate is so far off that it’s really slowing down the process,” Kiffe said. Kiffe cites examples of these inaccurate estimates: The shop wrote a $5,500 estimate on a keyed vehicle, but when they submitted photos as requested, the insurer returned a $265 estimate. When a customer brought in their Honda Fit that was hit by a Hummer H3, the insurance company provided a $1,000 estimate for which four hours of repair time was accounted. Berli’s Body and Fine Auto Finishes’

supplement countered with a $6,800 cost for repairs needed to replace the lift gate and rear body panel. Although supplements are a normal part of the process, insurance companies are often taking days or weeks to respond, preventing the shop from moving forward or taking additional work. The Honda Fit was brought to

photo estimating to be convenient at first, the lack of financial fairness often causes them to question their insurers’ motives and grow frustrated with the delays associated with supplement approval. “Additionally, many customers may choose not to repair their vehicle. When this happens, the insurance

“The major benefit to photo claims is that the consumer is in control of starting their claim, which makes them feel empowered, but that is where the convenience ends,” — Eric McKenzie

the shop on Sept. 20, and a supplement was submitted two days later, but it took until Sept. 29 for the insurance company to approve the supplement, finally allowing the shop to move forward with repairs. Kiffe also worries about how photo estimating, designed to be convenient, actually negatively impacts the customer. “Our customers have been irritated about the poorly written estimates and concerned that the insurance company will pay for the repairs,” Kiffe said. “Customers lose trust in the in-

company that was supposed to protect them and cover them has now cheated them,” Kiffe notes. McKenzie adds, “Once a customer elects not to repair the damage, they get short-paid (most, probably unknowingly). Or they bring it to the repair facility where the claim takes longer to process, which does not benefit the consumer. We’ve even had several clients mention how poor they thought the initial photo estimates were written when they dropped their vehicles with us.” A greater consumer concern is the issue of safety that arises when a customer accepts a check based on the photo estimate. These individuals may opt to forgo the repair without realizing they’ve been short-changed, or worse, additional damage that could not be seen in the estimate may be present and cause safety concerns when the vehicle is driven. Consumers using their insurance carriers’ photo app for convenience are unlikely to be aware of how inWhen a Hummer H3 hit this Honda Fit, the insurer’s accurate photo estimates could estimate included four hours of repair time and a impair the future safety of their $1,000 cost, but the shop’s supplement indicated a families or lead to diminished total repair cost of $6,800 to replace the lift gate value on their vehicle. and repair the rear body panel After driving a damaged surance company when they see the vehicle for a week, a college student final repair cost, which is sometimes 10 asked Berli’s Body & Fine Auto Fintimes the original estimate. Customers ishes to repair a 2015 BMW that had a who unknowingly take their vehicles to tire and wheel impacted by a cement an average repair shop don’t always rewall. ceive a quality repair. Many shops may Kiffe shares, “This vehicle needs not supplement everything needed for a quarter panel replacement and a right fear that they will upset the insurance rear door shell. The estimate totals company. Some shops may not ask for $1,044.19 with a customer deductible more or will settle for the cheap estiof $1,000, so the customer comes mate and cut corners thinking they are away with a $44.19 check, but the final helping the customer, but in fact, they repair amount will easily be above are exposing the customer to poor qual$7,000 once completed, and the car ity repairs.” could possibly have side wall damage While Kiffe’s customers found to the tire.”

28 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

The possibility of hidden damage was so prevalent that the insurer’s estimate actually noted, “TIRE, Potential hidden damage, please ask your repairer to inspect when your vehicle is brought in for repairs.” This raises the important question of how insurers can write estimates when they acknowledge that they cannot determine the damage. “It is never advisable to write an estimate from photos because so much can be missed, and that is why we will not do so,” McKenzie stresses. “We have not seen a photo estimate yet that was anywhere close to accurate. It just takes more administrative time and downtime than a properly written initial estimate.” While advocates of photo estimating claim that there’s no increase in the frequency of supplements, shops are reporting an increase in the severity of supplements, as well as delays in approval of the supplement. This prevents repairers from ordering parts and starting the repair. Richards mentions an industry peer whose $900 original estimate resulted in a final approval of more than $9,000. “These photo estimates are ridiculously out of the ballpark,” Richards says. “They aren’t even close! Our supplement rate is pretty much 100 percent on every claim. They’re virtually never correct, and although they may seem more convenient for the customer initially, they take longer in the end due to the ridiculous amount initially written.” Kiffe concurred, stating, “We have not received a single photo estimate that was even close to what it would take to repair the vehicle, and we’re seeing that some vehicles are even making it to us when they should have been totaled upfront if a solid estimate had been written. We’re also experiencing delays because the majority of photo estimates are not accurate or even enough to start repairs.” “Being a non-DRP shop, we always experience insurer delays, and the only real change has been further supplement delays because there are now fewer field adjusters,” McKenzie explains. “The biggest issue is severity since the initial estimates are so far off. It just makes the insurance company look incompetent because the photo estimates are laughable at best.”

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Continued from Page 4

Who’s Liable?

the Ford Pinto’s fuel system, Takata air bags and Firestone tires. As such, existing liability frameworks exist to assist in resolving the legal issues that will arise in connection with autonomous vehicles. Fortunately, modern products liability law is adequately developed to allocate fault for injuries and damages stemming from autonomous vehicle accidents, which will allow litigants to utilize the current law to answer the question of whether an autonomous vehicle is at fault for a collision. Moving forward, the legal framework for autonomous vehicle accident liability will be segmented into strict product liability, breach of warranty liability, misrepresentation liability and negligence liability.

defective when it left the manufacturer’s control; (2) the product was unreasonably dangerous; and (3) the defect was the proximate cause of the injuries. As automobiles become more autonomous, manufacturing defects will likely represent a large portion of defect claims, as errors on the production line will never vanish completely. Here, manufacturers can be found strictly liable for manufacturing defects even if they have exercised “all possible care” in manufacturing the vehicle. Similarly, the automobile industry will almost certainly see an uptick in the amount of design defect claims asserted against designers and manufacturers of autonomous vehicles.

Breach of warranty liability Warranty theories of liability are also likely to increase. There are several different types of warranties that apply in the context of autonomous vehicles. First, express warranties will be created through promises made by the seller to a prospective buyer pertaining to the sale of the vehicle, including those created through written vehicle warranties, descriptions of the vehicle made during the sale process, or prom-

ises made in connection with the marketing and advertising of the vehicle. In addition, implied warranties of merchantability and fitness for a particular purpose (that the vehicles or their technology will be fit for the purpose for which they are sold) will also apply in the arena of autonomous vehicle litigation.

Misrepresenting quality Misrepresentation liability regarding the quality of autonomous vehicles may also come into play in from accidents involving self-driving cars. Misrepresentation involves the communication of false or misleading information, and liability in this respect can occur when a person reasonably relies on the misrepresentation and sustains injury. For example, if an autonomous vehicle actually requires more human input and oversight than claimed by the manufacturer and this leads to a collision, responsibility for the accident may rest with the manufacturer under a misrepresentation theory of liability.

Negligence liability Finally, designers and manufacturers of vehicles can also be held liable under negligence theories in relation to au-

tonomous vehicle accidents. Manufacturers owe a duty to use reasonable care in the design of their automobiles to avoid unreasonable risk of injury, and to minimize the severity of injury in the event of an accident. In addition, manufacturers also owe a duty to construct their vehicles without latent or hidden defects, which would encompass defective autonomous vehicle technology. Here, in addition to products liability-oriented theories, manufacturers would also face common law negligence liability where an accident occurred as a proximate result of a vehicle operating in autonomous mode, creating a new hybrid type of legal action involving a mixture of negligence and products liability theories.

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John Hiester Chevrolet

3100 N. Main Street Fuquay-Varina, NC 27526 PH 866.978.3504 www.subaruofsanbernardino.com www.hiesterautomotive.com 30 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

vehicles are not operating in autonomous mode, but are being driven by a human, the driver will ordinarily still be subject to liability even in the context of an autonomous vehicle accident. However, determining whether the driver or the vehicle was operating the automobile at the time of an accident may turn out to be a very thorny task, as it is not always entirely clear where the line between the driver and the vehicle falls. Accordingly, many lawsuits will involve suing both the driver and the manufacturer due to questions surrounding which party is at fault for the accident. In such instances, establishing liability on one or the other might be difficult, causing some more complex lawsuits where car manufacturers and drivers identify each other as the responsible party for a collision resulting in injury or damage. The National Highway Traffic Safety Administration, along with the Society of Automotive Engineers, has developed a six-tiered rating system that classifies vehicles according to their level of automated function. Zero represents complete human control, and five denotes a vehicle operating in fully

autonomous mode. Under this system, any accident occurring while a vehicle is driving at a level of automation of two or below will be deemed to be the result of human error, as opposed to the vehicle’s autonomous technology. However, the NHTSA’s liability paradigm is merely advisory, and does not represent binding regulation. Ultimately, responsibility for classifying autonomous vehicles—and determining how to best allocate liability between driver and vehicle—will rest with the individual states. At what juncture this liability shifts from driver to vehicle will be a point of significant debate across the country in the coming years. States will be required to establish a liability scheme that does not dissuade the automobile industry from introducing fully autonomous vehicles to the consumer marketplace, while at the same time holding designers, manufacturers, and suppliers responsible for collisions caused by the vehicles themselves.

The final word The appropriate approach to liability for autonomous vehicles is merely one of a number of difficult legal issues that

will have to be addressed as autonomous vehicles become more prevalent on our nation’s roadways, and the law catches up with this rapidly advancing technology. Ultimately, as vehicles become more autonomous, liability will shift from the operator to the manufacturer or the supplier of the vehicle’s autonomous technology systems. At what point this liability shifts and by how much will be heavily debated as states develop legislative and regulatory schemes to allocate liability for autonomous vehicle crashes. Reprinted with permission from the October 10, 2017 edition of PropertyCasualty360.com ©2017 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited.

Don’t Miss the Weekly Industry NEWS Your Shop Needs.

www.autobodynews.com

Continued from Page 12

Mitchell & OEC

part types.

• One-click ordering from a national footprint of suppliers streamlines the claim process and helps facilitate safe and proper repairs on the vehicle.

• Seamless integration with Mitchell solutions to source and procure the right part at the right price. • Real-time order tracking and messaging with suppliers.

• Supports free and open data exchange via BMS and EMS CIECA standards.

Mitchell Parts will be available in Mitchell Connect, Mitchell RepairCenter and Mitchell Cloud Estimating in early 2018. Mitchell Cloud Estimating and Mitchell Estimating/Ultramate are already fully integrated with OEC’s patented MyPriceLink technology and are available now.

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 31

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

Tips for Busy Body Shops

How to Improve Your Interviewing Process & Hire for Keeps with Stacey Phillips

When Mike Davidson started his first day on the job at a car dealership in Arkansas, the business owner asked him to stand aside and watch him fully detail a GMC S15 pickup truck. It was a cold day in November, and 19-year-old Davidson recalls the owner demonstrating exactly how he wanted the job completed. That experience, which he refers to as “Wash the Truck,” has stayed with Davidson his entire career. Not only does the industry veteran ensure he gives his employees a clear understanding of his

expectations while on the job, but he also takes the time to hire employees who fit the culture of his business. Davidson, president of the American Skilled Labor Association and owner of Parkway Automotive in Little Rock, AR, recently spoke to shop owners and managers at an AkzoNobel Acoat Selected performance group meeting held in September in San Diego, CA, about how to improve their interviewing process. The presentation was part of the company’s early bird training sessions offered

As a result of his learnings over the years, Davidson developed a step-bystep process that he now shares with other small businesses across America. He said his seminar can be applied across any industry:

1) Prescreen Document: First, the prospective employee is asked by the office manager or service advisor to fill out a 10-question document with the absolute requirements of the company (e.g. driver’s license, do you smoke, how many driving violations in the last three years). 2) Application: A job-specific application is filled out. 3) Interview: The prospective employee is interviewed using questions developed by management and staff that will help determine if the candidate will be a good fit for the business culture. 4) Interview with staff: If the first interview is successful, the candidate is given an opportunity to talk to the staff and ask questions about the facility and how the business is run. Once that is complete, the staff meets to determine if the job applicant is a good fit for the team. Davidson said that at his business, it has to be a unanimous decision in order for the candidate to be hired. 5) Job offer: A thorough job description is prepared at this stage and compensation is discussed. 6) Tech report card: All staff members fill out a report card about the new hire after 30, 60 and 90 days to gain feedback about his/her performance. The new employee is also asked if there is anything the business is doing that is keeping him/her from doing a really great job. 32 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

during the week-long event, which was attended by more than 200 body shop representatives, distributors, AkzoNobel employees and guests. Held twice a year, the performance group gives shops the opportunity to take time away from working in their business to work on their business. During his presentation, titled “Hiring for Keeps,” he shared examples of what he learned over his 35year career in the automotive industry, as well as the specific hiring process he developed after setting out to discover how he could improve the way he hired staff. Part of this was based on his learnings from Leadership IQ, an organization that focuses on leadership training. After reading books and completing video training over a oneyear period, he found that one of the common themes with successful companies, such as Southwest Airlines and Chick-fil-A, was the similarity in the

employees’ attitudes, no matter where they were located across the country. As a result, he incorporated what he had learned and put it into practice at his business. “No matter who we are as business owners, hiring the right people makes a big difference with the internal customers—our employees. We hire people for what they know; we fire them for who they are!” he said. “Some people, no matter how hard you try, just don’t fit the job.” The key, according to Davidson, is to hire employees who fit your culture rather than hiring someone primarily based on their skills. “I believe the people you hire are the people who are going to create consistency within your organization,” said Davidson. “Consistency creates your brand.” Although having excellent skills is very important, he also recomSee Hire for Keeps, Page 62

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www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 33

Industry Insight with John Yoswick

—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.

Recent “Who Pays for What?” Survey Looks at Body Labor Operations, Estimating System Use, Training

Mike Anderson of Collision Advice than 1,000 shops across the country resaid his “Who Pays for What?” surveys sponded to the April “Who Pays” surcontinue to show that even when a sigvey on body labor operations. nificant percentage—or even a majorThe surveys break the results ity—of shops report routinely being down by 11 different geographic repaid for a particular “not included” opgions, and they have found some moderation, there can be many other shops est regional differences in shop billing not even putting it on their estimates. practices. Shops in the New England re“Clean-up of old urethane” folgion, for example, are more likely to lowing removal of glass is a good excharge for the “not-included” body reample of this. Although 37 pair operations than are shops percent of all shops taking the in other U.S. regions. The con“Who Pays” survey in April trast is particularly clear when said they are paid for this opNew England is compared to eration “most” or “all” of the the South Central region, time when it is needed and where the percentage of shops billed for, more than 60 persaying they “never asked” to cent of the shops responding be paid for not-included body Mike Anderson to the question are not even repair operations is the highest. billing for it. Combining all 21 repair body labor proSimilarly, 58 percent of shops cedures asked about in the survey shows said they are paid “most” or “all” of that shops in the South Central states did the time to “replace vapor barriers” not seek payment on these procedures in when it is necessary, particularly on 35.6 percent of cases. That compares to vehicles with airbag pressure sensors just 20.8 percent of the cases in New within the doors, but about 40 percent England facilities. of shops say they haven’t billed for Even though these two regions that procedure. represent both the “most” and “least” “If you don’t bill for it, you will likely to itemize “not-included” operanever be paid for it, yet the biggest tions on invoices, shops in both regions percentage of shops not billing for appear to have the same likelihood of these procedures say they never being paid for these procedures when thought of billing for them when they they do include them on their estimates. In New England, shops reported being paid “always” or “most of the time” for these procedures in 64.5 percent of the cases, when they include them on their estimates. In the South Central region, that figure is just 3.6 points lower (60.9 percent), a differare required as part a repair,” Anderence that is not statistically significant. son said. “These surveys were deIn addition to the body labor opsigned to help raise that awareness.” erations, the April survey also asked The latest of the 2017 “Who Pays” shops about their choice of estimating surveys, focused on aluminum repair and electronic parts systems; body and shop supplies, is being conducted labor and storage rates; and how much throughout the month of October. Click training shop employees receive. here (https://www.crashnetwork.com/ Nationally, for example, the mecollisionadvice) for more information dian number of hours of training proor to take the survey. vided to technicians is 10 per year. A Each of the quarterly surveys, discouraging 13 percent of shops adconducted by Collision Advice and mitted to providing zero hours of trainCRASH Network, focuses on a differing per year. Others are offering 40 or ent aspect of collision repair, asking more hours to each of their technishops about which “not-included” procians, though that amount of training cedures they bill for, and about how is higher than that offered by 95 perfrequently each of the largest auto incent of all other shops. surers pays for those procedures. More CRASH Network compared those

34 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

findings to numbers reported earlier this year by the Collision Industry Conference (CIC) “Education and Training Committee.” The committee asked

called for even more, 23 to 76 hours. Paint manufacturers on average thought painters should receive about 24 hours of training each year.

About 54 percent of shops report being paid “always” or “most of the time” for “applying weld-thru primer,” up from 46 percent in 2016, yet more than 1-in-4 shops say they’ve never billed for that procedure

paint manufacturers and automakers how much annual training they believe technicians should be receiving. Asian vehicle manufacturers said technicians should get between 16 and 20 hours of annual training, while domestic vehicle manufacturers suggested 19 to 27 hours annually, and European automakers

“If the ‘Who Pays for What?’ results are indicative of the entire industry, then 75 percent of all shop technicians are not getting enough ongoing training,” Anderson said. The survey also found a sizable drop in the number of repair facilities See Who Pays for What?, Page 39

www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 35

Please contact these dealers for your Honda or Acura Genuine parts needs. HO N D A AL AB A MA

FL O RIDA

FLOR IDA

GEO RG I A

Holman Honda of Ft. Lauderdale

Gwinnett Place Honda

F T. L A UDE RDAL E

800-277-8836 678-957-5151

Freeway Honda

Classic Honda

B ir m in g h a m

O r l an do

800-987-0819 205-949-5460

888-893-4984 407-521-1115

Dept. Hours: M-F 7:30-5 greg_thomas@freewayhondaal.com

Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com

Jerry Damson Honda

Coggin Deland Honda

Hu n t svil le

D e la nd

800-264-1739 256-382-3759

800-758-0007 386-626-1811

Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gbennett@cogginauto.com

Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

Ed Morse Honda

South Motors Honda

FL O RI D A

AutoNation Honda Clearwater Cle a rwa t er

R i v i e ra B ea ch

800-232-1098 561-844-8089

888-792-7189 954-763-7157 Dept. Hours: M-F 8-5:30 rguido@holmanauto.com

Rick Case Honda Davie

877-544-2249

M ia mi

888-418-3513 305-256-2240 Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

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 C l e r mo nt

Carey Paul Honda

AutoNation Honda Hollywood

800-497-2294 407-395-7374

770-985-1444

Ho ll ywo od

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

S ne ll vi ll e Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com

Hendrick Honda Bradenton

Ed Voyles Honda

877-706-2021 941-752-2123

M ar i e tta

800-334-3719 770-933-5870 Direct

Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com

Dept. Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles.com

888-479-0695 561-966-5185

Hendrick Honda Daytona

Gerald Jones Honda

Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com

800-953-4402 386-252-2301

G re en a c re s

D a y to n a Bea ch

Dept. Hours: M-F 7:30-6; Sat 8-4 Hondadaytonaparts@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gphwholesaleparts@hendrickauto.com

Honda Mall of Georgia Bu f ord /G win net t

678-318-3155 Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

Milton Martin Honda Gain esv ille

770-534-0086 678-989-5473 Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Nalley Honda

GEOR GIA

Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com

B rad e nto n

Du lu t h

A ugus ta

800-733-2210 706-228-7040 Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com

Un ion City

866-362-8034 770-306-4646 Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

Southern Motors Honda Savann ah

888-785-8387 912-925-1444 Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com MI SS IS SI P P I

Patty Peck Honda Rid g elan d

800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com

AC U R A AL AB A MA

FL OR IDA

GEOR GIA

GEO RG I A

Jerry Damson Acura

Duval Acura

Jackson Acura

Hu n ts vi lle

J ack so nv il le

Ro swe l l

Savann ah

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 8-5 travis.morrison@southernmotors.com

Rick Case Acura

Nalley Acura

FL O RI D A

Acura of Orange Park J a cks on v ille

888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com

F o rt La u de rda l e

M ar i e tta

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

36 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

Southern Motors Acura

N O. C AR O LI NA

Flow Acura Win st on -Salem

800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

NO . CA R O LI N A

NO . CAR OL INA

TEN NE SS EE

VIR GIN I A

Apple Tree Honda

Vann York Automall

Bill Gatton Honda

Ash ev ill e

High Point

Br is to l

Stau n ton

800-476-9411 828-684-4400

336-841-6200

800-868-4118 423-652-9545

800-277-0598 540-213-9016

Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com

Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

Wolfchase Honda

West Broad Honda

Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com

Crown Honda Southpoint Du r h am

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 lo t t e

800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com

Leith Honda R al ei gh

800-868-6970 919-790-8228 Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com

McKenney-Salinas Honda G as to n i a

888-703-7109 704-824-8844 x 624 Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

Metro Honda I nd ia n Trai l

866-882-9542 704-220-1522 Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com

NO. C AR O L IN A

Dept. Hours: M-F 7:30-6; Sat 8-3 SO . CAR OL INA

Breakaway Honda G ree n vi ll e

800-849-5056 864-234-6481 Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Midlands Honda C o l u m bi a

877-273-4442 803-691-8585

Ba r tle t t

Rich m ond

800-982-7290 901-255-3780

800-446-0160 804-672-8811

Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com

Dept. Hours: M-Thu 7:30-6:30; Fri 7:30-6; Sat 8-3; Sun 11-3 wbhonda@aol.com

VIRGINIA

Checkered Flag Honda No r fo l k

Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com

800-277-2122 757-687-3453

Piedmont Honda

Dept. Hours: M-Sat 7:30-6 honda.checkeredflag.com

A n de r so n

800-849-5057 864-375-2082 Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com TE NNES SEE

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

Colonial Honda C he ste r

800-564-9836 804-414-1960 Dept. Hours: M-F 8-7; Sat 8-4 rreese@i95honda.com

Hall Honda Vi rgi ni a Be ach

800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

K n ox v i l l e

Hendrick Honda Woodbridge

800-824-1301 865-218-5461

703-690-7777

Dept. Hours: M-F 7:30-6 rossd1@autonation.com

TE NNE SS EE

Wo o db ri dg e Dept. Hours: M-Fri 7-6 Sat 8-5; Sun 10-4

VIRGINIA

Hendrick Acura

Gary Force Acura

Ch ar lo tt e

B ren two od

F a ll s C hurch

800-768-6824 704-566-2288

800-653-6723 615-377-0500

800-550-5035 703-824-5785

Dept. Hours: M-F 7:30-6; Sat 8-5 justin.taylor@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-2 jtrail@garyforceacura.com

Dept. Hours: M-F 7:30-6; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com

Leith Acura Ca r y

800-868-0082 919-657-0460 Dept. Hours: M-F 8-6; Sat 8-4:30 parts@leithacura.com

Valley Honda

Radley Acura

VI RG INIA

Karen Radley Acura Woo d br i d ge

800-355-2818 703-550-0205 Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 37

Shop Services

George Avery: Will DRP Shops Reach an ‘Efficiency Ceiling?’ with Stacey Phillips

Former State Farm executive George “The survey is intended to identify Avery predicts there will come a time common and inconsistent administrawhen collision repairers who participate tive practices between Direct Repair in Direct Repair Programs (DRPs) are Programs that may cause inefficiencies going to reach an “efficiency ceiling.” in the repair facility’s overall repair “They are going to say, ‘I can’t process and performance,” Avery exget any more efficient because if I plained. “Repairers use the letters A–E participate in more than one DRP, I while filling out the survey to identify have to do things differently the DRP relationships of their in all of the programs,’” said choice, which are not inAvery during a Guild 21 tended to represent or identify podcast held in October, any particular insurer.” sponsored by Verifacts AutoAs of Oct. 13, 133 repairmotive. ers responded to the survey. After talking to others in When the final results are talthe industry with a similar lied, Avery said they will be George Avery viewpoint, Avery set out to shared with insurers and resurvey repairers and reach a consen- pairers to find ways to improve repair sus about the current administrative efficiency and the customer experience. processes being used with insurers. Before filling out the survey, reHe formulated the survey with the spondents are asked how many repairs assistance of a nine-person committee they complete each month and the consisting of repairers and insurance number of DRP relationships they have. companies. It was released in early OcThe survey addresses assignments, estober. timate preparation, supplements, pho-

38 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

tographs, total losses, final repair bill, training and information, and performance management. During the Guild 21 podcast, Avery asked attendees eight questions representative of the survey to gain additional input and give shops an idea of what types of questions are asked (percentages are an approximation): 1) How do you prefer to have an appointment scheduled? 50% – a phone call 8% – scheduled online by the insurer 30% – scheduled online by the customer 4% – other

2) When do you prefer to upload the original repair estimate? 18-20% – immediately 15% – within 24 Hours 12% – within 48 Hours 60% – after the repair plan 2% – not required

3) How do you prefer to notify when

the vehicle is a possible total loss? 4% – not required 20% – phone call or fax 10% – website 30% – e-mail 40% – Mitchell / ADP / CCC

4) Preferred number of photos for COLLISION loss? (not including T/L or Supplements) 18% – it should be at repairer’s discretion 2% – 0-1 2% – 2-4 63% – 5-10 18% – 20 or more 5) Preferred number of photos for COMPREHENSIVE loss? (not including T/L or Supplements) 28% – it should be at repairer’s distcretion 2 % – 0-1 4% – 2-4 50% – 5-10

20% – 20 or more

6) Preferred number of photos for a TOTAL LOSS? 16% – it should be at repairer’s discretion 0% – 0-1 0% – 2-4 47% – 5-10 38% – 20 or more

7) Preferred number of photos for a SUPPLEMENT? 41% – it should be at repairer’s discretion 0% – 0-1 43% – 2-4 15% – 5-10 0% – 20 or more 8) What is the most efficient way to

request a supplement? 38% – not required 2% – by telephone / fax 22% – by website 36% – e-mail 5% – other

Continued from Page 34

Who Pays for What?

Next steps include analyzing the survey results to determine if a follow-up survey is relevant and possibly conducting a secondary survey or meeting with insurers. Avery said the intent is to further discuss these issues during the Verifacts Automotive Forum scheduled for February 2018. Verifacts is a third-party onsite repair verification provider available to auto body repair shops. For more information, email: info@verifactsauto .com.

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NEW CHIEF MI200T

with multiple estimating systems compared to the prior year. About 26.5 percent of more than 750 shops answering

the most customers among those with two or more systems during this period, with a drop of 8.5 percentage points in the number of facilities that said they use that system. Mitchell International saw a drop of 4.8 percentage points. This trend may be due to shifting in-

CCC appears to be gaining market share among estimating systems users as the percentage of shops having multiple systems appears to be declining

the estimating system question said they had two or more systems installed, down from 34.1 percent who

surer requirements, given that 40 percent of AudaExplore users say the primary reason they chose the system is because an insurer requires it. The same is true for 38.5 percent of Mitchell users. Although CCC had the highest percentage of users who said “quality of product” was the chief reason the shop Almost two-thirds of shops say they are paid at their body labor rate to install a radiator, but installing an air condichose that system, still nearly tioning condenser is split more evenly between those 1-in-3 (32.4 percent) CCC being paid at a mechanical versus body labor rate users said the primary reason reported having more than one estithey chose CCC was to satisfy insurer mating system in 2016. requirements. AudaExplore appears to have lost See Who Pays for What?, Page 47

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Industry Insight

Forum Highlights How Much ‘Diagnostics’ Have Become Part of Collision Repair World with John Yoswick

The Advanced Technology and Diagnostic Repair Forum held last summer during NACE Automechanika in Chicago offered more evidence that the lines between “collision repair” and processes more traditionally considered “mechanical repair” continue to blur. Speakers included representatives of Bosch and Delphi, companies not regularly on the agenda at auto body events in the past. However, the focus was certainly on collision repairers, who made up most of the audience.

Matt DeWalt of Legacy Autobody Group said differences in how automakers organize and present collision repair information can create difficulties

Panelists, for example, discussed the increasing need for review of automaker collision repair procedures as part of the estimating or “diagnostic” process, as well as the difficulties that doing so can sometimes pose. For example, Matt DeWalt, coowner of Legacy Autobody Group, which operates four shops in Pennsylvania, said the significant differences in how automakers organize and present collision repair information is challenging. “It’s almost like we need training just on how to access the information,” DeWalt said. Other panelists agreed. Darrell Amberson, president of operations for LaMettry’s, a Minnesota-based multishop collision repair business, agreed that the technical repair information is out there, but “it takes way too much digging to find it” because it’s not as accessible as it should be. Vince Claudio of the Gerber Collision & Glass chain said shops sometimes have to check multiple sites to find all the information needed and confirm that it

is correct and current. “If we could bring that information together, and if it resided within the estimating system that we’re going to be using anyway, it would make it a lot easier to get the information that relates to that specific repair,” he said. State Farm’s Chris Evans seconded Claudio’s view, saying the industry’s “information providers” need to step up and provide more information “at the right time in the right place,” relative to repair processes. “It is an enormous mountain that they are going to be climbing,” Evans said of the task of incorporating more information in the estimating systems. “But if they are going to remain relevant and responsive to the marketplace, it’s going to be important that they become more sophisticated.” Labor times are only part of the equation, Evans said. The systems need to help shops and insurers understand, for example, when diagnostic scanning or systems calibration must be done. “If that is necessary, it needs to be part of the repair time that the information providers print out on an estimate,” Evans said. Part of that process, he said, is the automakers providing more guidance within specific repair procedures, rather than just position statements, when steps such as vehicle scanning are necessary. He said that would help alleviate shops’ liability concerns about when scanning is needed. “We don’t just need more posi-

systems are affected, you must do this, that or the other thing… If the vehicle needs to be pre- or post-scanned because some system…has been re-

Jake Rodenroth of Collision Diagnostic Services said the increasing complexity of vehicle technology is posing new challenges to the use of non-OEM parts

paired or was damaged, that should be in a technical repair procedure and it should be part of the overall repair process, not just a position statement. I know car companies are working toward that. But we’re clearly not there

yet. That gap between those two often causes the friction and tension that exists in the industry today.” All of this has triggered an evolution in the type of employee categories shops need in-house, Amberson said. “We’re accustomed to having body techs, painters, estimators, etc., but now we all need this really highcaliber technician who embraces the electronics, has a passion for it and wants to gain more understanding,” Amberson said. “It’s not your typical type of mechanic who can remove and reinstall engines and handle suspension work. This is a different breed of cat, so to speak. We now get into all sorts of calibrations, and understanding the systems and how they behave, and understanding where to look for the information, is the the kind of person we need to handle this type of technology.” Collision repairers are experiencSee Forum Highlights, Page 60

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Largest Inventory in Central Florida Vince Claudio of Gerber Collision & Glass said collision repair shops often have to check multiple sources to find all the current technical repair information needed

tion statements,” Evans said. “We need specificity and detail: In the event of this type of accident, with this type of damage, when these advanced

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Continued from Page 4

Who’s Liable?

Takata air bags and Firestone tires. As such, existing liability frameworks exist to assist in resolving the legal issues that will arise in connection with autonomous vehicles. Fortunately, modern products liability law is adequately developed to allocate fault for injuries and damages stemming from autonomous vehicle accidents, which will allow litigants to utilize the current law to answer the question of whether an autonomous vehicle is at fault for a collision. Moving forward, the legal framework for autonomous vehicle accident liability will be segmented into strict product liability, breach of warranty liability, misrepresentation liability and negligence liability.

Products liability litigation Strict liability is the dominant legal theory in products liability litigation, and is thus poised to be the theory most consistently applied to autonomous vehicle accident litigation. Strict products liability requires that: (1) the product was defective when it left the manufacturer’s control; (2) the product was unreasonably dangerous; and (3) the defect was the proximate cause of the injuries. As automobiles become more autonomous, manufacturing defects will likely represent a large portion of defect claims, as errors on the production line will never vanish completely. Here, manufacturers can be found strictly liable for manufacturing defects even if they have exercised “all possible care” in manufacturing the vehicle. Similarly, the automobile industry will almost certainly see an uptick in the amount of design defect claims asserted against designers and manufacturers of autonomous vehicles. Breach of warranty liability Warranty theories of liability are also Continued from Page 22

Launching Column

on for quite some time. Can you fill us in on the details?

In the fall of 2010, I started a special project—writing a book

likely to increase. There are several different types of warranties that apply in the context of autonomous vehicles. First, express warranties will be created through promises made by the seller to a prospective buyer pertaining to the sale of the vehicle, including those created through written vehicle warranties, descriptions of the vehicle made during the sale process, or promises made in connection with the marketing and advertising of the vehicle. In addition, implied warranties of merchantability and fitness for a particular purpose (that the vehicles or their technology will be fit for the purpose for which they are sold) will also apply in the arena of autonomous vehicle litigation.

which would encompass defective autonomous vehicle technology. Here, in addition to products liabilityoriented theories, manufacturers would also face common law negligence liability where an accident occurred as a proximate result of a vehicle operating in autonomous mode, creating a new hybrid type of legal action involving a mixture of negligence and products liability theories.

Negligence liability Finally, designers and manufacturers of vehicles can also be held liable under negligence theories in relation to autonomous vehicle accidents. Manufacturers owe a duty to use reasonable care in the design of their automobiles to avoid unreasonable risk of injury, and to minimize the severity of injury in the event of an accident. In addition, manufacturers also owe a duty to construct their vehicles without latent or hidden defects,

Allocating fault between driver & vehicle Although autonomous vehicles are designed to operate on their own and without the use of a driver, many vehicles are being designed to place the operator in a position to assume control of a vehicle in a variety of circumstances, allowing drivers to effectively share operation of the vehicle with the automobile’s autonomous technology. Where vehicles are not operating in autonomous mode, but are being driven by a human, the driver will ordinarily still be subject to liability even in the context of an autonomous vehicle accident. However, determining whether the driver or the vehicle was operating the automobile at the time of an accident may turn out to be a very thorny task, as it is not always entirely clear where the line between the driver and the vehicle falls. Accordingly, many lawsuits will involve suing both the driver and the manufacturer due to questions surrounding which party is at fault for the accident. In such instances, establishing liability on one party or the other might be difficult, causing some more complex lawsuits where car manufacturers and drivers identify each other as the responsible party for a collision resulting in injury or damage. The National Highway Traffic Safety Administration, along with the Society of Automotive Engineers, has developed a six-tiered rating system that classifies vehicles according to their level of automated function. Zero represents complete human control,

about the history of the collision repair industry in America. Nobody has done that before, and I thought it was about time. My objective is to provide an overview of the industry, the factors affecting it, and how it evolved from the early 1900s to today. I had to set the project aside for some time, but now, in retirement, I’ll go “full-steam”

to finish it. I am still looking for any and all input from anyone in the industry, including company histories, product histories, old body shop photos, and first-hand stories about working in the industry, especially at the shop level. Gary Ledoux can be reached at: mayorclum@yahoo.com.

44 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

and five denotes a vehicle operating in fully autonomous mode. Under this system, any accident occurring while a vehicle is driving at a level of automation of two or below will be deemed to be the result of human error, as opposed to the vehicle’s autonomous technology. However, the NHTSA’s liability paradigm is merely advisory, and does not represent binding regulation. Ultimately, responsibility for classifying autonomous vehicles—and determining how to best allocate liability between driver and vehicle—will rest with the individual states. At what juncture this liability shifts from driver to vehicle will be a point of significant debate across the country in the coming years. States will be required to establish a liability scheme that does not dissuade the automobile industry from introducing fully autonomous vehicles to the consumer marketplace, while at the same time holding designers, manufacturers, and suppliers responsible for collisions caused by the vehicles themselves.

The final word The appropriate approach to liability for autonomous vehicles is merely one of a number of difficult legal issues that will have to be addressed as autonomous vehicles become more prevalent on our nation’s roadways, and the law catches up with this rapidly advancing technology. Ultimately, as vehicles become more autonomous, liability will shift from the operator to the manufacturer or the supplier of the vehicle’s autonomous technology systems. At what point this liability shifts and by how much will be heavily debated as states develop legislative and regulatory schemes to allocate liability for autonomous vehicle crashes. Reprinted with permission from the October 10, 2017 edition of PropertyCasualty360.com© 2017 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited.

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www.autobodynews.com | NOVEMBER 2017 AUTOBODY NEWS 45

Day Job/Night Job Alan Johnson: Author, Artist, Pinstriping King with Ed Attanasio

By taking his experience in custom paint and expanding on it, Alan Johnson has made himself well-known for many things—such as his blossoming fine art career. He’s also an author, a teacher and known as one of the world’s leading experts in pinstriping, a unique art form that is 100 percent American. He is 71 years old and has his work placed in art galleries all over the world, while still going strong with no plans to retire. Johnson’s motto, which he tells anyone who’s interested in learning the craft of pinstriping, is to “just get the brush.” That is what he enjoys doing every day. Originally from River Plaza, NJ, Johnson worked his way through the Newark School of Fine Industrial Art in the 1960s by painting, airbrushing and lettering everything from fresh produce signs to cars at the local Raceway Park. His first shop was in a greenhouse at Julie’s Farm Stand on

Route 35 in Middletown, NJ, where he refined his skills on cars, motorcycles, guitars, helmets, boats, skis and even airplanes.

Alan Johnson, the owner of Alan Johnson Grafix in Blairstown, NJ, wrote How To Pinstripe, published by Motor Books

In 1968, he began his career as an Art Director at a New York advertising agency, working on big national

46 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

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

campaigns. Six years later, he decided that the commercial art world was not where he wanted to be, so he moved his family to the country and started his own business. His studio, Alan Johnson Grafix, is located in a restored barn and grist mill that was built in 1825. With all of his children grown up and out of the house, Johnson spends half the year in his other studio in Loveland, CO, so he can be near his sons and grandchildren. Today, Johnson is continually sought after for his 40 years of experience as an independent pinstriper and custom auto artist. He is a consultant for automotive paint and brush manufacturers and writes a series of “How To” articles for trade periodicals. He has his own line of signature brushes with the Mack Brush Company and is the author of How To Pinstripe, published by Motor Books in 2007. Johnson has been invited to Fin-

land, England and Scotland to demonstrate and pass on his knowledge of pinstriping, and enjoys sharing his skills with budding painters all over the planet. His book has been the definitive step-by-step guide on how to

Johnson’s lettering and pinstriping skills can be seen on this boat

perform a wide range of pinstriping projects, including information on how to prepare surfaces and how to experiment with asymmetrical design. Assisted by his wife, Judy, Johnson is able to dedicate all of his time

to creating award-winning masterpieces that adorn vintage auto and boat restoration projects that have appeared in museums and private collections all over the country. Every year, he organizes and participates in five charity events, raising money primarily for children through the Make-A-Wish Foundation and the Special Olympics. He is also one of the original organizers of the “Pinheads”, an elite group of master pinstripers. In 2009, he received the Pinstripe Legend lifetime achievement award for his unique artwork in the Kustom Kulture world. After painting on cars and boats for many years, Johnson decided to stretch his wings artistically when he began painting other images in his studio in Loveland, CO. Today, he sketches and paints southwestern landscapes and other subjects with bold colors. His experimental painting techniques and unique color sense are utilized in his fine art painting, all of which are well-known for their spiritual nature. “I decided to try other things, and it has really taken off from there,” he said. “I sell a lot of posters now through Fine Art America, and that is very satisfying. I still love custom painting cars, but this

In addition, Johnson said he instructs young artists on pinstriping and encourages them to pursue their creative sides. “I really enjoy teaching and showing people how I do the pinstriping,” he said. “Pinstripers and lettering people often tell me that my book is the best written on the subject, and of course that is very satisfying. Initially, I had to actually look at my hand to see how I do the pinstriping, so that I could relate it to other people. I had been doing it for so many years, I had to sit down and think about how I could write about the process so that readers could understand.” If you’ve been to a classic car show, you’ve likely seen With 42 years under his Johnson’s work more than a few times belt (or easel), Johnson looks Brush Masters in Chicago. Exciting back, but only for a moment. projects that he completed recently in“I’m just a kid from the New Jerclude a gold leaf lettering job on a sey shore who got this ability from 1929 Packard Speedster; gold leaf let- God, so I love sharing it and experitering , airbrush and pinstriping two menting with new projects and new restored 1960s Gassers for Ida Auto- techniques all the time,” he said. “I motive; gold leaf lettering on restored give these young people a brush and a classic wood boats, a 1934 Packard panel and show them how to convey for Pebble Beach Concourse at Stone their personality through the art. What Barn Restorations. can be better than that?” stage in my art career has really been amazing.” 2017 has been a great year for Johnson, full of activity and great reviews. Earlier this year, he painted and donated his artwork to two car shows— Pinstripe Legends in Milwaukee and

Continued from Page 39

Who Pays for What?

Anderson said more than 2,500 shops have taken one or more of the “Who Pays for What?” surveys since they began in 2015, and he says they often tell him that “just participating in the surveys is a great reminder of procedures they are performing every day, but may not be listing on estimates or invoices.” Shops can take the current survey (or sign up to be notified about future surveys) at https://www.crashnetwork .com/collisionadvice. The surveys each take about 15–20 minutes, and should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released. At the website, shops also can download the results of previous surveys, reports that break down the findings by region, by insurer and by DRP vs. non-DRP. The reports also include analysis and resources to help shops better understand and use the information presented.

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Media and Publicity for Shops Why Are Shops Scaling Back Their Marketing Efforts? with Ed Attanasio

A few years ago, I spoke at a collision trade association meeting about marketing and advertising in the body shop world. One shop owner approached me after my talk. “Why do I have to spend money on marketing, because we get 150 cars every month from the insurance companies?” he asked. “We probably get five or six vehicles every year when people wander in here, but 99 percent of the time we get them through our insurance partnerships.” I’ve heard lately that more and more shops have decided to cut back on their marketing expenditures, because the economy is booming with no end in sight. Saving money by cutting costs is always a good idea, but what happens when things go sideways or when you lose a DRP or two for a wide range of reasons? Are you established enough in your region that marketing and advertising are no longer smart investments? I think it’s a good question, so I reached out to a group of shop owners from all over the country who are known for their marketing and advertising efforts. Why are they still in the promotional game while many shops have decided to shed at least part of their marketing budgets recently? Brad Zara, the owner of Zara’s Collision Center in Springfield, IL, has been aggressively marketing his highly successful business since day one. He is well-known for his series of humorous and engaging outdoor billboards and his strong presence online. “We continue to invest heavily in marketing and community support initiatives even though we are heavily DRP,” Zara said. “Our belief is that DRP customers still have a choice to make, in most cases, from a list of preferred shops in their area, so we want to be the most recognizable name on that list. Our approach to marketing is not intended to tell people what we do, as that’s already a given. We want them to know more about whom we are–established with a good sense of humor, and deeply rooted in our community.” Lefler Collision and Glass is a

third-generation, family-owned-andoperated, full-service collision and glass repair center with four locations in Indiana and Kentucky. Owner Jimmy Lefler said marketing is indispensable and that he approaches it through a combination of strategies. “We ask ourselves—what if the DRP model changed tomorrow? How long would it take for you to catch up to me on name recognition? Marketing builds trust from the community and creates personal relationships as long as you actually get involved in the events sponsored. I agree that you are wasting money if you do nothing more than just air TV and radio commercials. Part of our strategy is the use of social media. I personally look at customer reviews and online feedback prior to purchasing products and services.” Marketing Director Megan Williams at Lefler Collision and Glass Repair Centers agrees that without marketing, shops can lose control of their image and profits. “A huge part of our marketing strategy is just as much public relations as it is anything else,” Williams said. “Relying on DRPs to send us business is taking the control out of our hands, while maintaining positive marketing and public relations efforts helps us control and sustain our own revenue. Marketing plays a big role in promoting and cultivating a positive brand image and company culture, which is helpful when it comes to hiring and retaining employees. Also, many studies show that younger generations prefer to spend their money with companies that give back.” Jim Keller, President of 1Collision, headquartered in Milwaukee, WI, advises his network shops on marketing every day. Although he agrees that the industry’s method of gaining new customers is heading more in an electronic direction, some things will never change. “Yes, things are evolving quickly, but good old referrals from people to people will always be a big reason why some shops fail and others don’t,” Keller said. “Customers can still be heavily influenced by many things, and that’s not going to change

48 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

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

just because the process is changing. As long as the consumer is able to make the decision or at least play a role in it, marketing is essential. The final arbiter is the customer and in many ways, the technology has made them smarter and more discerning. The technology has made us more independent and it enables us to make our own choices. Years ago, people would take their cars to the shops their insurance company recommended, but now they know more about their cars and many of them want to play a role in that decision.” Dino DiGiulio, owner of Body Best Collision in Sonoma, CA, does more marketing than some MSOs. “New shops come to town, the competition picks up and the MSOs are always looking to take more of the market,” he said. “So, if I’m not out there promoting my business, the insurance companies are going to look around for the best deal they can find.

Marketing is not something you can turn off and then turn back on when things change for whatever reason, because you never know when the next accident will occur.” DiGiulio saw the writing on the wall four years ago, so he started pursuing certifications and shedding DRPs, but his marketing budget has actually increased during that entire time. “I promote to my database, which is the best source of referrals we’ve ever used,” he said. “If you don’t promote your business, your shop will shrink. It may not happen tomorrow or the next day, but eventually you will look up and realize that you’re losing work to other shops that are marketing themselves better than you are.” Big Sky Collision Center, with two locations in Montana, is a secondgeneration business run by Matthew See Marketing Efforts, Page 55

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Continued from Page 24

In Reverse

number of shops. Those who saw the future and embraced it knew two things: First, new body technology required new tools and equipment. For a few years, there was a tool and equipment purchasing frenzy, driving the popularity of collision trade shows such as NACE. Second, forwardlooking shops discovered the need to train and educate themselves to stay up with the new technologies. This led to the formation of I-CAR in 1979.

1986: Body shops first encounter something some are afraid to repair or even touch—airbags.

1990 >: The 1980s might have seen the advent of the personal computer, but computerization didn’t start hitting the collision industry until the early 1990s. In 1990, everyone had a “solution” to your problems and it was wrapped around some computer software system.

1997–2007: At the dawn of the new millennium, shops began to mature. Using computer-generated data, they became more business-savvy and so-

phisticated in their approach to business. This time period also marked the emergence of new accident avoidance technology to supplement existing accident mitigation technology.

1998 >: In the 1940s, 1950s, 1960s and even into the 1970s, most shop owners had one shop. A few brave souls had two, but it rarely went beyond that. In the 1980s, things began to change and the number of shops per owner began to grow. Around 1998, the term “consolidator” started getting a lot of use. This turned into the term MSO, or multi-shop operator. Medium-size shop chains were buying up individual shops. Larger chains were buying up smaller chains. There was no stopping the trend. Today, single entities own hundreds of shops.

2007–2015: This period saw incredible growth in two areas: MSOs and litigation between shops and insurance companies. MSO growth was fueled by venture capital. Litigation was fueled by 40+ years of friction between shops and insurance companies in the wake of the landmark 1963 Consent Decree, and the fact that it was rarely, if ever, enforced. This was also a time that saw the growth of OE

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body shop certification programs.

CIC Education & Training Committee—Collision Repair Employee Survey

2009 >: CAFÉ standards that had remained unchanged since 1990 began to creep up, causing automakers to look for ways to increase fuel economy. One way was by using more aluminum parts and high-strength steel parts. Collision technicians needed to increase training to keep up with the technology.

The CIC Education and Training Committee wants to hear from those who work directly in collision repair facilities. With your help, we can better inform the industry and ultimately work to improve the education process and opportunities for you. If you are a:

2015 >: Fifteen years into the new millennium, what once was old was new again. Aluminum vehicles, an idea first explored in the 1930s, would be resurrected in the form of a pick-up truck— the Ford F150. Used to save weight to increase fuel economy and meet CAFÉ standards on the most popular vehicle in America, all of a sudden, aluminum was no longer just for exotic cars anymore. Aluminum was now mainstream, and it meant shops needed new tools and equipment to properly repair the aluminum bodies. For some, it felt like 1979 and the advent of the unibody car all over again. Over time, In Reverse will revisit each of these periods to see what brought us to today’s state of the collision repair industry. Be sure to visit this column each month!

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CIC wants to hear from you! To take the survey, go to: www.autobodysurvey.com Results of the survey will be available in the future at www .ciclink.com.

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Historical Snapshot with John Yoswick

Association Agreement with Automakers 15 years ago Seen as Key to Access of OEM Information 20 years ago in the collision repair industry (November 1997) Instead of looking at the negative sides of our leadership, perhaps we should focus on what is positive about what they’re doing. Some of our leaders are at the forefront of our industry’s consolidation, for instance. They’re buying up existing shops, usually at good prices, in an effort to make their own businesses larger and more profitable. Consolidation has several frightening aspects; what will happen to owners of smaller shops, for example? But it could potentially be a boon to our industry. For a long time, we’ve bemoaned the lack of unity in our business. With fewer independent shops, we will presumably have more unity and more power. Thirty-facility operations will be in a far stronger position vis-à-vis the insurance industry than a three-person shop. With consolidation, we might see more dynamic leadership from our leaders. Instead of scrambling to make a living, they’ll be in a good economic position and will have the financial security to concentrate on helping our fellow repairers. Also, by buying up existing facilities, they’re offering the owners of these facilities, many of whom will probably be near retirement age, the chance to reap a good profit from their life’s work. This is leadership by example. I did not set out to write an apologia for our industry leadership. There’s still something disturbing about the close relationship many of our leaders have with the insurance industry. There’s no question that would be better off if we have a leader who was truly selfless, who was more concerned for the people in our industry than for himself, and who would stand up and tell the truth. People like this are rare in any field. And until we find a Martin Luther King or Joan of Arc, we might want to look at the positive things our leaders are doing. We might also look at ourselves. If we feel our leadership isn’t doing what they should be doing, we should be ready to step to the podium. – from an editorial by trade association executive Sheila Loftus, pub-

lished in Hammer & Dolly.

15 years ago in the collision repair industry (November 2002) When the Automotive Service Association this fall announced a surprise agreement with the automakers regarding access by independent repairers to the same service and repair information available to dealerships, it used words like “historic” and “a success and a victory” to describe the accord.

In 2007, State Farm’s George Avery explained his company’s launch of a pilot program involving automaker discounts on OEM parts

“This agreement is an investment in the future of independent automotive service,” said Dan Frohlich, chairman of ASA’s national board and the owner of a collision repair and mechanical business in Pennsylvania. “By building bridges between manufacturers and the aftermarket, ASA is ensuring the long-term viability of independent repair. One cannot overstate the historical significance of this covenant.” But within days, a number of other groups that along with ASA had been pushing for federal legislation that would require the OEMs to make service repair information and tools available to non-dealerships were questioning the value of the ASA agreement and saying they would not halt their legislative efforts. Under the ASA agreement, two OEM trade groups representing a total of 35 automakers have committed to provide independent repair shops by August 2003 the same service and training information available to franchise dealerships. ASA and the automakers said the agreement nullifies the need for legislation mandating the release of the information. Backers of the legislative mandate, however, say it is needed to en-

52 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

sure the automakers comply. – As reported in Autobody News. Though federal legislation mandating the release of the information by the automakers was never passed, a law later enacted in Massachusetts did. That, coupled with the ASA agreement, has led to general agreement that the automakers have done a reasonable job making information available to the aftermarket.

attending the Collision Industry Conference (CIC) in Las Vegas in November. “We’re looking at rental. We’re looking at towing. We’re looking at ways to make you efficient because…of the customer that we share. I want to make it a positive experience. That positive experience, we believe, can be achieved by getting into what is really making it inefficient.” Improving such inefficiencies in the parts procurement process is the reason the insurer has launched its latest test program, Avery said, emphasizing that it is a test only. Select Service shops in the two markets are required to order parts using two electronic systems—because not all auto manufacturers are using the same system—from dealers also using the systems. State Farm has negotiated various discounts of about 3 percent off parts list prices from at least six of the

10 years ago in the collision repair industry (November 2007) In the week prior to State Farm launching a test of an electronic parts procurement program with its Select Service shops in San Diego and Indianapolis, a spokesman for the insurer said the company is considering what role it can play in streamlining other aspects of collision repair claims. “I don’t think this is it. This is not the end,” George Avery, a claims consultant with State Farm, told those

See Association Agreement, Page 56

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Great Responses

Van Batenburg. Additionally, Autoshop Solutions CEO Danny Sanchez advised on how to successfully use Facebook as a marketing tool with enhanced targeting during “Reaching the Peak of Your Shop’s Social Potential,” while CARQUEST instructor David Patrick taught techs how to more effectively diagnose a variety of drivability issues using fuel trim data through his presentation, “Scan Tool Analysis: Understanding and Using Fuel Trim Data.” The tradeshow floor opened during lunch on Saturday. Pulverenti shared, “We had a soldout tradeshow in between classes on Saturday with lunch served on the showroom floor, with many vendors joining us for the first time. The showroom was packed, and we even had exhibits that spilled out into the parking lot, with MAC Tools bringing their trucks filled with tools and tool boxes and a gorgeous vintage ‘67 Camaro brought by one of our members. Attendees selected their favorite booths and turned in completed cards for a raffle

where many won gift cards, cash, tools, Yeti Coolers and other great prizes.” After lunch, the final five educational seminars of the 2017 ASTE were offered from 2:30–5:30 p.m. Tools and techniques concerning vehicles plagued with lean codes, rich codes, misfires and more were explored during Throckmorter’s “Fuel Systems Analysis,” and Newton discussed how the right employees aid shops’ competitive advantage in “Employees, Your Future Depends on Them (Finding and Keeping the Right People).” Patrick’s course on “Effective Electrical Troubleshooting: Digital Storage Oscilloscope Applications and Testing” covered appropriate testing methods of major automotive systems. Steve Smith, Sales and Management for Pro-Cut, discussed how brakes have been serviced and how the industry is moving to rotor matching as the proper brake service on today’s vehicles during “Why Should We Resurface Brake Rotors.” Finally, Behzad Rassuli, Senior Vice President of Strategic Development for the Auto Care Association, presented “Telematics and Autonomous Vehicles,” providing an overview of vital efforts by

national trade groups to ensure access to embedded telematics systems and software for the independent repair industry. Saturday evening’s festivities included a Hotel Manager’s Reception, Banquet and Hospitality Suite. Pulverenti recalled, “The event ended with the IGONC’s annual awards banquet, where we inducted new members to our board, Hall of Fame, and Lifetime Members Group. At the end of it all, folks wound down from the weekend by spending some time on the dance floor. “Last year, we made specific efforts to revive and revamp this event, and this year, we were able to see that they have really paid off. We are excited for next year, as well as the new energy in our association as a whole after such a great show.” For more information about IGONC, visit www.igonc.com.

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International Auto Crafters Nominated for Achievement in Collision Repair Excellence

International Auto Crafters has been nominated by Verifacts Automotive for the Shop of the Year: Achievement in Collision Repair Excellence (ACE). The ACE Award for exceptional collision repair centers recognizes remarkable collision repair facilities that consistently produce and deliver verified repair quality. Director of Sales for VeriFacts Automotive, Mr. Chris Dismukes, explains, “These shops have truly embraced a commitment to outstanding collision repair and a culture of quality that ultimately benefits the consumer during the time of great stress as a result of an automobile accident.” VeriFacts Automotive was founded to address the difference between a repairer’s potential to produce repair quality through the documentation of production inputs, such as repair equipment and current levels of technician training, versus verification of the output repair quality actually being produced. The VeriFacts Verified Quality (VQ) Program conducts independent third party verification, onsite repair procedure observations, technician skills coaching and provides comprehensive reporting on all findings.

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Symach FixLine System Increases Efficiency and Production at New Facility Earlier this year, European Autobody relocated its 30,200 sq. ft. business in Ontario, Canada, and incorporated an entirely new repair process into the facility—Symach’s FixLine system. The collision repair shop specializes in repairing Ferrari, Maserati, BMW, Ford and other luxury brands, and moved to a larger facility in Vaughan the first quarter of 2017. Manuel De Luca, the manager of European Autobody, said the Symach process and equipment have greatly helped improve operations at their facility. “Every collision center, big or small, should consider these products, do their research and see that Symach is a feasible way to be successful,” he said. European Autobody is part of the Remo Ferri Automotive group, which includes 13 locations in Ontario. After learning about Symach from a colleague, De Luca spent time researching the FixLine system and watched several YouTube videos about the Italian-based company. “I was intrigued almost immediately and knew right way this is the future, and we had to be part of this,” he said. “We strive to be ahead of the curve, which changes just as fast as it

comes, in order to provide our customers and partners the best repair procedures and services available.” In addition to purchasing Symach’s body shop equipment, De Luca was interested in the Italian company’s FixLine process to run day-today operations in his shop. “We felt it would allow our facility to be successful and to take the next steps in building our business,” he said. By encompassing all aspects of the repair, De Luca said the FixLine process has allowed operations to be more efficient, ensured a quicker repair time for customers, and has decreased rental costs to insurance partners. He also said the system is helping to minimize delays of vehicles in the prep and paint department. “We have been able to reduce a typical two-day minimum down to one day,” said De Luca. Before installing the new equipment, the shop repaired approximately 45 vehicles a week. With the use of Symach’s FixLine system, which includes “SAP” Symach Application Process, Drytronic technology, and seven robots, the production capacity has already increased to 90 repairs per week with the same number of technicians and no overtime. It has the po-

Continued from Page 48

tential of completing more than 120 repairs per week. “The robots drastically reduce drying times of all substances,” said Osvaldo Bergaglio, CEO of Symach. “Our international team trained the staff at European Autobody to help achieve the maximum output of vehicles and ensure they are successful in their new location.” “Osvaldo has been amazing throughout the entire process; we had many revisions, and every time he professionally handled us with patience and gratitude,” said De Luca. “I am amazed how efficient he and his team have been.” He said the Symach process and equipment have helped his shop continue to grow and be successful. “It’s the latest technology on the North American market,” he said. “You only have one chance to do an excellent job. Make sure you capitalize on those chances!”

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McDonnell, an owner who is surprised when he hears about shops that are cutting their marketing budgets. “We have these crutches in this industry, like DRPs, and after a while we rely on them too much,” he said. “We expect them to keep giving, but we are all one mistake away from losing a DRP, regardless of wherever you are. One bad comment by a customer and you can be dropped without hesitation, which does not seem like a true partnership, but that’s the reality of the situation. We try to educate our customers through videos and commercials, and they really do work. We have one DRP now—our business gets better every year and our promotional efforts are a huge part of that. If you look at the most successful shops in any area, they are the ones doing most of the marketing and advertising. So what does that tell you?”

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PA Auto Body Shops’ Owner Files Second Lawsuit by Phil Ray, Atloona Mirror

The owner of two Altoona-area auto body shops has filed another lawsuit against many of the nation’s largest insurance companies, claiming they refuse to pay the full costs of making necessary repairs to damaged vehicles. Ron Perretta, who owns Professionals Auto Body, with repair shops on East Pleasant Valley Boulevard, Altoona, and Plank Road, Duncansville, in his second lawsuit is asking for more than $8 million in damages that include insurance company underpayments, interest on those alleged outstanding debts and his “administrative costs.” The Altoona businessman is also seeking punitive damages against the 32 insurance companies named as defendants in the lawsuit filed August 28 in the Blair County Court of Common Pleas. Attorneys for three of the insurance companies sought to move the lawsuit to the U.S. District Court in Johnstown and notified U.S. District Judge Kim R. Gibson that if he approves the transfer, they will “promptly” ask that the case be transferred to the Middle District of Florida as an addition to lawsuits against the same insurance companies, including Perretta’s original lawsuit, filed by auto body shops across the nation. Continued from Page 52

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largest auto manufacturers. Avery reiterated that the program has been designed to not cut into a shop’s parts profit. He asked shop owners at CIC to visualize the dollar amount of profit they currently make on a particular hood. “When the discount that we have negotiated with the OEs results in a lower price for that hood, the amount that’s your profit dollars will remain the same,” Avery said. He later emphasized again that it’s not that a shop will receive the same percentage of a lower retail price, but instead will still receive the same actual profit dollars as before the discount program. The test is designed, Avery said, to see if the electronic parts ordering and pricing systems work, if dealers

All those lawsuits have been consolidated into one legal action being heard by U.S. District Judge Gregory A. Presnell in Orlando. The auto body shops contend that the insurance companies have violated federal antitrust laws by agreeing to set prices for labor, materials and other expenses of repairing damaged vehicles. The shops claim they are forced to use “inferior parts” and reduced labor when making repairs. The insurance companies, the auto body companies say, subtly enforce their price structures by having Direct Repair Program agreements with local garages, guaranteeing them business in return for adopting the insurance companies’ cost structures. Perretta said he refuses to sign DRP agreements, but states in his lawsuit that his company has been “put in the untenable position of having to provide all necessary repair services in order to bring each damaged vehicle back to its pre-loss condition without ever receiving full reimbursement for the labor and costs involved in making those necessary repairs, which has resulted in (Professionals) regularly making repairs without compensation and to its own financial detriment.” He cited one example in which a customer brought in a 2012 Nissan Armada last February. The customer decided to make re-

are willing to participate, and if it helps shops operate more efficiently by, among other things, reducing parts errors and returns. In terms of State Farm’s additional involvement in other aspects of the collision repair business, Avery used an analogy of the threshold of the front door of his home; he said he interacts with some people who never cross that threshold, others who are invited in to the entry-way, and others invited in even farther, but that no one but family goes upstairs. “That’s none of your business up there,” Avery said. “And I see it that way for the repair industry. That’s what we need to work through with the advisory council, drawing that line on what State Farm’s goal is on that threshold and what that business relationship is that you allow. I don’t want to go upstairs. I’m not interested in being in the house all the time, but if See Association Agreement, Page 60

56 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

pairs to the vehicle rather than have it declared a total loss. A licensed appraiser prepared an estimate to repair the vehicle, but the insurance company refused to pay $2,105. Professionals is pursuing the amount not paid by the insurance company after obtaining the customer’s authorization. In 2015, Presnell dismissed the multiple lawsuits, contending the auto body shops did not provide enough facts to support a violation of antitrust laws, but a three-judge panel of the 11th Circuit Court of Appeals in Atlanta reinstated the lawsuit, saying, “We determine that the shops have pleaded enough facts to plausibly support their federal antitrust and state court claims.” Attorneys for Allstate Insurance Co., Encompass Home and Auto Insurance Co. and Esurance Insurance Co. have asked that the latest lawsuit filed by Professionals be moved to the federal court. The other defendants have joined that request. In the removal request submitted by attorney Jack Hall of Carnegie, it

was pointed out that Professionals is seeking $403,822 from the three companies. The insurance companies “deny that (Professionals) is entitled to any relief, based on the allegations of the complaint” but state that since the amount of money being asked exceeds $75,000, the lawsuit qualifies for removal to the federal court system. The removal request also contends Professionals “has pleaded no facts that would establish a conspiracy or other connection among defendants that might support a finding of joint and several liability.” It addressed the example used in the Professionals lawsuit of the customer who brought in the Nissan for repairs, stating that claim should be against the customer’s insurance company only and no other insurer because, it stated, “there are no allegations establishing a basis for joint and several liability.” The Professionals lawsuit was filed by attorney Traci L. Naugle of Altoona. We thank the Atloonta Mirror for reprint permission.

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California Autobody Association Prepares for AB 1679 ‘Fight of their Careers’ by Ed Attanasio

With AB 1679 now a “two-year” bill (see prior coverage at autobodynews.com), the California Autobody Association (CAA) is getting ready for what many body shop owners in the Golden State believe is going to be the fight of their careers. To prepare, the organization is asking current members to call upon other shops to help them take on this potentially disastrous bill as they enter 2018. In an announcement, CAA Executive Director David McClune briefed its membership on the current state of AB 1679. “The Assembly Appropriations Committee has delayed consideration on AB 1679 until next year,” he stated. “Yes, it’s good news, but the battle has only begun. We are still David against the Goliath insurance industry and whatever reincarnation of AB 1679 will appear next, we need your help. The insurance companies can re-introduce it in January and they likely will, but it’s good news that they didn’t come up with another bill this year. We can win this thing, but only if every shop, each staff member, each employee, and every family member does their part, and we are going to do everything we

can to make it easy for each and every one of you to be heard.” McClune is calling for new members to join CAA and use the power of the organization to defeat AB 1679 in 2018.

“Every few years, we get a bill like this one that has the potential to change the collision repair industry in California in a big way,” he said. “If you’re a shop owner and you’re concerned about AB 1679—which you should be—this is the ideal time to join us.” McClune and CAA are poised and prepared to take on the insurance companies, backed by Insurance Commissioner David Jones. “AB 1679 is a serious threat to every body shop in California, be-

58 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

cause (it) will tighten the insurance industry’s grip over the auto repair process, weaken the only advocate (independent body shops) consumers have when dealing with their auto insurer, and cause cuts in employee pay and benefits, layoffs and more,” McClune said. “It is unfair and unreasonable. Simply put, AB 1679 threatens us and our livelihood and hurts consumers. A few big insurance companies want to lower our pay so they can ‘save consumers from higher premiums’ and make even bigger profits. In the long run, the auto repair industry will become less competitive because the insurance companies will completely control it. And we all know what happens to costs, wages and consumer protection when things become less competitive. “AB 1679 also takes away rights of consumers to freely choose their repair shop by weakening the existing anti-steering law. There is a reason that law was passed 14 years ago, and that reason has not gone away. On October 21 in Huntington Beach, CA, we will be holding a board meeting in order to devise a battle plan against AB 1679. We have David Jones in office for one more year, so the time to defeat this is now.”

Another proposed bill currently on CAA’s radar is a new regulation on electronic documentation and authorization that was discussed during a hearing held on Sept. 26. “It basically expands the current authorization definition, which allows the customer to provide authorization (that is) either written, verbal or electronic—digitally, magnetic, wireless, optical or electromagnetic, to name a few—so they want to make sure to cover all their bases,” McClune said. “Before, it was only allowed through writing, but now this new regulation will enable customers to use all three methods of authorization.” CAA recently added two new sponsors to its list of business partners— KPA and the Automotive Training Institute (ATI). KPA works with the collision repair industry to ensure that standards and regulations are followed by implementing a series of environmental and safety programs. ATI has been conducting management classes for body shops all over the country since 1980.

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Continued from Page 42

Forum Highlights

ing an increase in the need to access information stored in the vehicle, just as their counterparts in the mechanical repair industry have done for years. Given that this information is legally considered to belong to the owner of the vehicle, collision repairers’ customer authorization forms need to evolve as well. “We obtain an authorization not only to access the data, but also to use the data,” DeWalt said, noting that even customers paying for repairs themselves haven’t declined having their vehicle scanned. “We incorporated some verbiage

into our customer authorization form that, first, gives us the authority to [access] information from the vehicle systems, and second, gives us the authority to share that with the insurer,” Amberson agreed. He said customers are increasingly safety-conscious and seem to embrace the need for shops to access vehicle information as part of repairs. He recalled one job his company retained—when the customer was being persuaded to go to a direct repair shop for the insurer involved—because the scanning processes had been explained to them at LaMettry’s. “They chose our shop because they liked the idea that we were scanning the car to make sure everything was done correctly,” Amberson said.

GFS Names Ramis VP of Automotive Refinish Sales

Effective September 1, 2017, technologies, with roles in engiGlobal Finishing Solutions® (GFS) neering, project management, sales is pleased to announce the promo- and business development. His edution of Mick Ramis to the role of cational background includes a vice president of automotive refin- bachelor’s degree in manufacturing ish sales. engineering from the University of “I am excited to take Wisconsin–Stout and an on the responsibilities and MBA with an emphasis in challenges of the automosales and marketing tive refinish business unit through the University of and use my experience to Wisconsin–Eau Claire. capitalize on opportunities James Faragher, presiand bring success to GFS, dent of Global Finishing our distributors and our Solutions, says “Mick’s customers,” says Ramis. leadership and business Mick Ramis Since joining GFS in acumen has created sig2016, Ramis has made contribu- nificant value in the short time he tions to our company as the man- has been with our company. We are ager of both our parts and filters and confident that his leadership of our service and preventative mainte- refinish business will result in nance departments. Prior to GFS, strengthening our position in the Ramis worked for a Fortune 250 market by creating value that will global leader in motion and control benefit our partners and customers.”

Team PRP Automotive Recycling Network Expands

Team PRP’s automotive recycling network continues to expand its nationwide footprint with the addition of three exceptional recycling facility partners. The newest locations to join with its thriving organization are Carolina Salvage (Rock Hill, SC); Wayne Auto Salvage (Goldsboro, NC); and ABC Auto Parts (Riverdale, IL). Each of these locations is ideally situated near major metropolitan areas—Charlotte, Raleigh and Chicago. “I could not be more excited to announce the addition of three more fantastic facilities,” noted Mark Gamble, Executive Director of Team PRP. “Over the course of the last two years, Team PRP has added

more than 20 new facilities. From the moment we began our earnest expansion, we have focused diligently on a quality over quantity mantra. There is no doubt we have strongly adhered to this objective, as we continue to add to the Premium designated in the Team PRP name!” Further augmenting Team PRP’s high-quality network of parts trading and transporting, the addition of these newest top-tier facility locations will result in an increase in parts availability as well as providing greater efficiency and faster delivery times—providing great benefit to repairers and repair customers alike.

60 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 56

Association Agreement

there are some advantages that we both see to be more efficient, I’d be glad to talk about that.” – As reported in Collision Repair Industry INSIGHT. State Farm’s parts discount program was later scrapped, reportedly because of automakers’ decisions not to offer (or continue to offer) the discounts. But the program did pave the way for State Farm’s mandated use by shops of PartsTrader, which began in 2012.

5 years ago in the collision repair industry (November 2012) During a panel discussion at SEMA, Michael Giarrizzo Jr. of DCR Systems, which operates collision repair shops for dealerships, said shops have ended up with office staffs of equal number to their production staffs in part because they segment out roles in the office, such as estimator and parts manager. But shops rarely need a consistent number of people in any of those positions throughout the week, he said. So by

cross-training, shops can move staff based on the demands of the work at any given time. “You may be a star wide receiver, but darn it, sometimes you have to go out and throw a couple blocks to make a difference,” said Giarrizzo, who spent four years with the Sterling Autobody Centers chain after it acquired his family’s 4-shop business in Ohio. He also said that flat rate or commission pay structures are often based more on “management laziness” than innovative thinking. Giarrizzo said paying employees hourly does shift some of the risk to the shop if the supply of work slows. But that risk can be offset by the reward of fixed labor costs. “You pay the same paychecks whether you fix two cars or 200 cars,” Giarrizzo said. “So getting to the breakeven point is a bit more challenging. But after that break-even point, cash rains. You’re now dropping dollars to the bottom line at a rate of 55 or 60 percent of every dollar.” – As reported in CRASH Network (www.CrashNetwork.com), November 19, 2012. Giarrizzo remains CEO of DCR Systems.

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Continued from Page 32

Hire for Keeps

mends owners/managers determine if prospective employees have the ability to get along with staff, understand the company’s strategy and structure, and share the same values. “If you have someone working on a customer’s car who doesn’t share your values, he or she is going to take shortcuts you don’t want, and is going to put out a product that you don’t want to be put out. Every time,” he said. Davidson discussed the interviewing techniques he uses on a regular basis. “You have to have a process in place and you have to have a system that will help you determine if the person is the right person for your organization,” he said. By altering the traditional interviewing method and listening to an interviewee’s answers, Davidson said it’s easier to discover if a person is the best fit for the business. He advised shops to eliminate what he referred to as “hypothetical” questions. Some of the examples he shared included: “What song best describes

asking about a time the person was in a difficult situation. “Then, pause and give them an opportunity to think and let them answer the question,” he said. Davidson said the ultimate goal is to ask questions that reveal what every business should be looking for—a high performer. “There are two types of people who walk into an interview—the problem-bringers and the problemsolvers,” explained Davidson. “Your job is to decide which one of those people is sitting in front of you.” He classified them as low performers and high performers. He described a low performer as someone who will When Mike Davidson (left) presents “Hiring for Keeps,” hear a problem and do nothhe performs a live interview at the end of the seminar that ing more, whereas a high perdemonstrates what you lvearn. During the presentation for former will offer a solution to AkzoNobel, he demonstrated a mock interview with Drew Holdren (right), Services Consultant Acoat Selected the problem at hand. To tell Services for AkzoNobel the difference between the Other questions to be avoided in- two, Davidson said that shop owners clude those that lead the interviewee and managers need to change the way on how to answer them. For example, they listen during a job interview. rather than asking someone to talk A good first step is to interview about a time he or she had to adapt to your current staff to learn more about a difficult situation, he recommended your culture. Not only does it allow your work ethic,” “What kitchen utensil would you be,” and “How would you rate me as an interviewer from a scale of 1 to 10?” “None of these questions help determine who the person really is,” said Davidson. “Questions should have different responses from different candidates. If the answers are the same for everyone, you have the wrong question.”

you to identify the actions you want to see in your business, but it also helps you figure out the ones that you do NOT want in your business culture and that already may be there. Once you have figured out the characteristics for your culture, you can begin the interviewing process. Davidson said there are many benefits: You’ll deepen your hiring pool, discover untapped talent, reduce the risk of hiring the wrong people, and cut turnover. “It’s not easy work, but it’s important work,” he said. He advised owners to put on their “attitude eyes.” “We need people who can handle problems with the right attitude,” he said. “You have to find attitudes in your organization that identify the low performers and high performers.” Every question, according to Davidson, should be a cliffhanger. “It must be open-ended and conversational,” he said. “You must allow them to think.” When deciding where to hold an interview, Davidson recommended creating an environment that fosters dialogue rather than a monologue. It might mean meeting at a comfortable place

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like a Starbucks couch or sitting sideby-side in the conference room. “Avoid sitting across a desk, which is a physical barrier,” he advised. Davidson shared examples of interview questions he has found to be helpful when determining low performers versus high performers, and offered insight about each one. “Could you tell me about a time you lacked the skills or knowledge to complete an assignment?” It fosters openness and encourages conversation. “Can you tell me about a decision you made that felt risky or you might fail?” Low performers always seem to play it safe, and high performers take a risk even if it means failing. “Tell me about a time when an organizational rule created a barrier to achieve an outcome you wanted?” Low performers, for the most part, do not like playing by the rules whereas high performers respect the rules. “Can you tell me about a time you didn’t have the information you needed to complete a project?” Low performers need constant handson attention, and high performers excel at getting the information they need to

work independently. “Can you tell me about a time when you had to think outside the box?” Low performers recycle the same thoughts over and over, whereas high performers generate unique ideas. “Can you tell me about a time you received negative feedback from a boss?” Low performers find ways to blame someone else for their problems, and high performers choose their words carefully and help solve problems. “Could you tell me about a time you were given an assignment outside your role?” This question helps determine if the prospective employee is a team player. Davidson said that no matter what questions you develop with the assistance of your team, there is a five-part question he always recommends including during the interview process. He calls it the “coachability question,” and stressed the importance of listening to each response carefully to help you get to know a prospective employee: 1) What is your boss’s name and can you spell it for me? 2) Tell me about xx as a boss.

3) What is something that you could have done differently to enhance your relationship with xx? 4) When I talk to xx, what is he going to say about your strengths? 5) When I talk to xx, what is he going to tell me about your weaknesses?

Davidson also offered interview tips to consider:

• Count to three before you speak to give the interviewee time to respond. • If you need clarification, ask questions such as: “Were others involved?” “Can you give me specifics?” “What was the timeframe?” “Where did this take place? Tell me more about what made you choose that action.” • Look for the warning signs of low performers: They want individual recognition, make excuses for why it won’t work, are quick to blame and eager to escape accountability, throw up their hands, have a negative disposition and are highly sensitive. • Look for character traits of high performers: They are highly collaborative, help one another without being asked, are self-directed learners, ask

questions to gain greater clarity, and go out of their way to support their peers. • Pronouns can often tell you a lot about a person. High performers will always talk about themselves and what they learned. Low performers talk about other people. The ultimate goal, according to Davidson, is to find and hire employees with the right attitude and who fit the culture of your business. “You can’t do it quickly,” said Davidson. “You must do it methodically, have a process, assimilate the information, and then you’ll wind up making a really good decision. Hire the wrong person, and you just hired your weakest link.” This article was based on the presentation “Hiring for Keeps,” held during the AkzoNobel Acoat Selected performance group meeting in September in San Diego, CA. For more information and to schedule a presentation, contact Mike Davidson at 501-993-6121 or email at miked@parkwayautomotive.net. For more information about the AkzoNobel Acoat Selected program, visit www.acoatna.com.

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Continued from Page 20

Great Responses

a marketing tool with enhanced targeting during “Reaching the Peak of Your Shop’s Social Potential,” while CARQUEST instructor David Patrick taught techs how to more effectively diagnose a variety of drivability issues using fuel trim data through his presentation, “Scan Tool Analysis: Understanding and Using Fuel Trim Data.” The tradeshow floor opened during lunch on Saturday. Pulverenti shared, “We had a soldout tradeshow in between classes on Saturday with lunch served on the showroom floor, with many vendors joining us for the first time. The showroom was packed, and we even had exhibits that spilled out into the parking lot, with MAC Tools bringing their trucks filled with tools and tool boxes and a gorgeous vintage ‘67 Camaro brought by one of our members. Attendees selected their favorite booths and turned in completed cards for a raffle where many won gift cards, cash, tools, Yeti Coolers and other great prizes.” After lunch, the final five educational seminars of the 2017 ASTE

were offered from 2:30–5:30 p.m. Tools and techniques concerning vehicles plagued with lean codes, rich codes, misfires and more were explored during Throckmorter’s “Fuel Systems Analysis,” and Newton discussed how the right employees aid shops’ competitive advantage in “Employees, Your Future Depends on Them (Finding and Keeping the Right People).” Patrick’s course on “Effective Electrical Troubleshooting: Digital Storage Oscilloscope Applications and Testing” covered appropriate testing methods of major automotive systems. Steve Smith, Sales and Management for Pro-Cut, discussed how brakes have been serviced and how the industry is moving to rotor matching as the proper brake service on today’s vehicles during “Why Should We Resurface Brake Rotors.” Finally, Behzad Rassuli, Senior Vice President of Strategic Development for the Auto Care Association, presented “Telematics and Autonomous Vehicles,” providing an overview of vital efforts by national trade groups to ensure access to embedded telematics systems and software for the independent repair industry.

Saturday evening’s festivities included a Hotel Manager’s Reception, Banquet and Hospitality Suite. Pulverenti recalled, “The event ended with the IGONC’s annual awards banquet, where we inducted new members to our board, Hall of Fame, and Lifetime Members Group. At the end of it all, folks wound down from the weekend by spending some time on the dance floor. “Last year, we made specific efforts to revive and revamp this event, and this year, we were able to see that they have really paid off. We are excited for next year, as well as the new energy in our association as a whole after such a great show.”

For more information about IGONC, visit www.igonc.com.

Your leading source for SOUTHEASTERN Collision Repair News!

Continued from Page 22

Launching Column

In the fall of 2010, I started a special project—writing a A: book about the history of the collision

repair industry in America. Nobody has done that before, and I thought it was about time. My objective is to provide an overview of the industry, the factors affecting it, and how it evolved from the early 1900s to today. I had to set the project aside for some time, but now, in retirement, I’ll go “full-steam” to finish it. I am still looking for any and all input from anyone in the industry, including company histories, product histories, old body shop photos, and first-hand stories about working in the industry, especially at the shop level. Gary Ledoux can be reached at: mayorclum@yahoo.com.

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Continued from Page 26

NCACAR Celebrates

dustry through education, initiatives and strong leadership,” Winans added. “We continued our momentum of education and leadership by hosting several speakers. The meeting also gave us an opportunity to set in motion the process of introducing legislation and reform in NC that will have a lasting impact on our industry. The proposals that the NCACAR supports are only possible with strong and motivated leadership relying on member support. The meeting was well-attended, and the participation was robust. NCACAR still needs more members and support to continue our progress.” NCACAR’s Board of Directors held a meeting before the member meeting in which they discussed recent improvements to the association’s website and plans for 2018. The association will hold its next meeting in mid-January, but hopes to attract some industry favorites to speak at the next meeting.

For more information about NCACAR, visit www.ncacar.com.

Geoffrey Adams Crane

Mr. Geoffrey “Geoff” Adams Crane, 70, died Tuesday, Sept. 5, 2017, in Olive Branch, MS. Born in Elizabeth, NJ, Mr. Crane lived in Olive Branch, MS, and the surrounding area most of his adult life. Mr. Crane was a Geoffrey Crane proud member of Getwell Road Church, and was well-known for his entries in many barbecue contests, his passion for cars, especially sports cars, and fishing on Lake Winnipesaukee, where he spent his summers both at Camp Wyanoke and with his parents. Mr. Crane was the former Director of Industry Relations in the Diamond Standard Brand Parts Group based in TN. Coleman Funeral Home of Olive Branch is in charge of the arrangements. Online condolences may be left on the Tribute Wall at www.colemanfuneralhome.com.

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Auto Care Association Identifies Alibaba as Notorious Market for Counterfeit Auto Parts The Auto Care Association submitted comments Oct. 2 urging the Office of the U.S. Trade Representative (USTR) to relist Alibaba and its family of e-commerce platforms, including Taobao and AliExpress, as notorious markets that facilitate the sale of counterfeit auto parts.

The letter was submitted as part of the USTR’s request for comments in identifying internet and physical markets based outside the United States that engage in copyright piracy and trademark counterfeiting for its annual Special 301 Out-of-Cycle Review of Notorious Markets Report. “Despite Alibaba’s efforts to address the proliferation of counterfeit products, our members report that their brand protection tools and enforcement program have been unsatisfactory,” said Bill Hanvey, president and CEO, Auto Care As-

sociation. “Not only do counterfeit products threaten the U.S. economy, and impact our members’ sales and brand value, but counterfeit auto parts do not comply with any safety regulations and are a danger to the safety of consumers.” The Auto Care Association submitted comments in response to member complaints regarding the proliferation of online supply chains based in China that allow the online distribution of counterfeit parts. These online B2B and e-commerce sites advertise branded counterfeit products for sale at rates that significantly undercut the margins of members’ original products. In its letter, the Auto Care Association outlined general principles that Alibaba should adopt to address the proliferation of counterfeit products on its various platforms. The Auto Care Association commends the USTR’s efforts to combat piracy and counterfeiting. The association looks forward to continuing this dialogue with the USTR and representatives from the identified websites to protect and enforce intellectual property rights.

66 NOVEMBER 2017 AUTOBODY NEWS | www.autobodynews.com

BASF Supports Young Spray Painters as a Global WorldSkills Competition Sponsor

To support up-and-coming automotive refinish spray painters and young talent, BASF’s Coatings division is a global sponsor of the WorldSkills International association until at least 2019.

“As a sponsor of the WorldSkills competition, BASF Automotive Refinish wants to encourage young talent to consider refinish painting as a profession,” said Marvin Gilfillan, BASF Vice President, Business Management, Automotive Refinish. “We’re focusing on promoting the next generation of automotive refinishers.” The WorldSkills competition will take place in the Middle East for the first time from October 14-19, 2017. Approximately 1,200 young people will demonstrate their skills in 51 individual competitions in Abu Dhabi. During the competition, par-

ticipants will exclusively use products from the comprehensive portfolio of BASF’s refinish brands Glasurit and R-M, depending on the country, as well as the RODIM brand range of paint-related products. “Our commitment emphasizes the significance and viability of a career as an automotive refinisher,” said Gillfillan. The competition, which also includes the international R-M Best Painter Contest, illustrates the diverse nature of the occupation, which calls for both craftsmanship as well as sustainable thinking and efficiency. To qualify for the final at the Abu Dhabi National Exhibition Centre, in which 76 national WorldSkills associations will be represented, the candidates must win the national competition of their respective country. About 100,000 visitors are expected to attend the competition, including 10,000 international visitors, making the WorldSkills competition the biggest event ever to be held at the Abu Dhabi National Exhibition Centre. At the 2017 WorldSkills final, the automotive refinish contenders will compete using Glasurit premium brand products, exclusively. For more information visit: basf.com

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Mercedes-Benz to Produce EQ Brand Electric Cars in the U.S. Tuscaloosa, AL, plant will manufacture SUV models for the company’s EQ brand and a new battery plant. Mercedes-Benz will set up electric vehicle production in the United States. The company plans to produce EQ-branded SUV models at MBUSI (Mercedes-Benz U.S. International), its Tuscaloosa, AL, facility.

At the time of launch, the EQ models will feature the latest status of automated driving always under the premise of safety and in compliance with the statutory regulations. In addition, a battery plant will also be built near the existing passenger-car plant ensuring availability of cuttingedge technology for future generations of Mercedes-Benz vehicles built in the U.S. In total, Mercedes-Benz plans to invest $1 billion in the expansion of

its industrial footprint in the region, most of which is slated for the electric initiative. It is expected that once completed, these investments will create more than 600 additional jobs. Final details of the plans are still being worked on in partnership with the state of Alabama.

Electric vehicles from EQ branded product Mercedes-Benz will start producing SUV models of the EQ brand in Tuscaloosa at the beginning of the next decade. EQ models will be integrated into the series production at the plant. This is possible because of the early investments in flexibility and technical equipment at the plant that offer trailblazing Industry 4.0 technologies. With the Tuscaloosa plant, Mercedes-Benz will have electric mobility hubs on three continents, serving customers’ demand around the globe. By 2022, the company will electrify the entire portfolio of Mercedes, offering customers at least one electrified alternative in all segments, from smart to large SUVs. The company is planning to offer more than 50 electrified vehicle variants. At the same time, Mercedes-Benz will be

continuously supporting the development of plug-in hybrids and the introduction of 48-volt-systems. The first EQ series model, EQC, will go into production in 2019 in Bremen, Germany. Technology and product brand EQ is an integral part of CASE, which stands for the intelligent combination of the strategic pillars of connectivity (Connected), autonomous driving (Autonomous), flexible use (Shared & Services) and electric drive systems (Electric). Fifth Mercedes-Benz factory to produce batteries The battery factory near plant Tuscaloosa will be part of the global battery production network of Mercedes-Benz Cars for local demand and export. In total, Daimler will invest $1.18 billion (more than 1 billion Euros) in the battery production network, which will also include production facilities in Germany and China. As in vehicle production, the battery production network will react flexibly and efficiently to market demand. This strategy ensures the ongoing availability of modern battery technology through local production hubs in Europe, China and the U.S. and puts Mercedes-Benz in a highly

competitive position for its electric initiative. Construction work for the new 1 million-square-foot facility in Tuscaloosa is expected to begin in 2018, with operations planned to start at the beginning of the next decade.

Mercedes-Benz Tuscaloosa plant MBUSI located in Tuscaloosa County, AL is the production location for the GLE, GLS and GLE Coupe SUVs around the world, as well as the C-Class sedan for North America. In 2016, the plant produced more than 310,000 vehicles. MBUSI currently employs more than 3,700 team members and supports 7,000+ jobs on the approximately 1,000-acre site. In September 2015, MBUSI announced a $1.3-billion plant expansion and new jobs to pave the way for production of future SUVs. The expansion makes plant Tuscaloosa one of the “smartest” automotive facilities in the world.

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How Open Source is Transforming the Automotive Industry by Dan Cauchy, The Linux Foundation

One key benefit of open source is its ability to enable rapid innovation. Collaborating on non-competitive pieces of technology frees up resources, enabling companies to focus more on developing new products and services. We are seeing this play out now in the automotive industry as automakers are adopting open source software for core technologies like the infotainment operating system. This allows them to focus more resources towards the industry-wide race to develop new technologies, mobility services, and autonomous vehicles. According to the 2017 Autotrader Car Tech Impact Study, 53 percent of consumers expect vehicle technology to be as robust as their smartphone. Unfortunately, the automotive industry has fallen behind the smartphone in terms of features and functionality. Automotive innovation is too slow, time-to-market is too long, and there’s very little software reuse. Part of the problem is that today’s connected car uses approximately 100 million lines of code. Compare that to the Android operating system, which runs on 12–15 million lines of code,

and the average iPhone app, which uses fewer than 50,000 lines. It’s no wonder that the product development cycle for automotive companies is so much longer than for tech companies. According to some industry data, the development of an infotainment system traditionally takes 36–39 months. In that time period, three or four versions of iPhone and Android phones will be released. One of the main obstacles preventing automakers from innovating as quickly as tech companies is that the infotainment landscape is very fragmented. Imagine for a second if each PC or laptop manufacturer had its own version of an operating system; this would mean that application developers would have to make sure their software works with each manufacturer. What a mess! Yet this is exactly the situation we have in the automotive market. Each automaker has its own proprietary system that was built using a custom version of Linux, QNX, or Windows Embedded, and there’s very little code reuse. Innovating with Open Source To reduce this fragmentation, the Automotive Grade Linux (AGL) community at The Linux Foundation is building an open source platform that

can serve as the de facto industry standard. Sharing a common platform enables developers to build an application once and have it work everywhere. Automakers can focus on developing new products and innovative new features that can be brought to market faster. The AGL infotainment platform, the Unified Code Base (UCB), is quickly gaining momentum across the industry. Toyota has adopted the AGL platform for its next-generation infotainment system, which debuts on the 2018 Toyota Camry and will roll out to most Toyota and Lexus vehicles in North America. And we expect to see more products and vehicles with AGL roll-out over the next couple of years. AGL’s first focus was on infotainment, but we are planning to address all software in the vehicle including instrument cluster, heads-up-display, telematics, advanced driver assistance systems (ADAS), and autonomous driving. As the race towards self-driving cars continues to heat up, it’s become clear that the amount of code needed to support autonomous driving is too large for any one company to develop on its own. An open source platform for autonomous driving will help accelerate the development of self-driving technology while creating a sustainable

ecosystem that can maintain it as it evolves over time. The Linux Foundation believes the first step is to create an open, crowdsourced mapping database where automakers can contribute and access real-time 3D map data. AGL will soon be in millions of cars on the road. With the support of its rapidly growing community, The Linux Foundation hopes to drive the cross-industry collaboration needed to accelerate development for autonomous vehicles. Software has become one of the backbones of the automotive industry. It powers applications from infotainment to advanced driver assistance systems and autonomous driving. By bringing the industry together around a shared platform, AGL is enabling automakers to innovate faster, and quickly bring new products to market that will enhance the customer experience and impact the bottom line. We thank The Linux Foundation for reprint permission.

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WMABA Adds WV to Territory and Launches Facebook Group by Chasidy Rae Sisk

The Washington Metropolitan Auto Body Association (WMABA) took a break from active meetings over the summer, but is excited to announce that it will be expanding its membership territory to include West Virginia, and will also be launching a Facebook group. WMABA Executive Director Jordan Hendler promises, “We also have lots in the works!” The association launched its Facebook group in July to encourage dialogue between association members about what’s going on in their businesses and how they can improve the collision repair industry in their area. WMABA’s group can be found at facebook.com/groups/WMABACollision Group. On Sept. 21, WMABA announced the addition of WV as part of the association’s membership territory. The addition of WV was largely encouraged by a specific Mountaineer: Steve Krieps, Shop Manager for Greg Cline Automotive in Winfield, WV, who is also WMABA’s new board member. Explaining the importance of WV joining the association, Krieps stated, “The collision repair industry is chang-

ing at a rapid pace. As vehicle technology advances, the repair process must evolve as well. As repairers, it is absolutely critical that we stay informed on local issues, and act when necessary. We must educate our consumers so

they can make informed decisions and stay consistent with our training, to the benefit of consumer safety and quality of repair. “WMABA has been navigating the socio-economics and technical aspects of the collision repair industry for nearly 50 years. With their presence at trade conferences across the country, they are on the forefront of progress. This partnership with WMABA will be instrumental to the Mountain State, and we are ecstatic and honored to be members of the WMABA family. We are more than prepared for a brighter future.” Hendler is also very excited about the addition of WV to WMABA’s coverage area. She noted, “When the legislation to change the aftermarket parts

requirements came up, Steve was right on the case! Throughout that process of combatting the change, we got to know each other some, and I think he saw the value in the association and having representation. It kindled something in him, I think, to start the hunt to gather shops around this cause. While adding West Virginia is a really big deal, that could just be the beginning of us doing more things. Or even adding another state that doesn’t have representation, like Delaware. The others are covered, but partnerships could be the way to go and grow along with our other state affiliates of SCRS!” WMABA is also gearing up for its mid-century anniversary, as 2018 will mark the group’s 50th year in operation. According to Mark Schaech, President of WMABA, “WMABA has two major milestones cresting into 2018, with the 50th Anniversary and now the West Virginia addition. I am

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so pleased to see this new growth, probably to go along with additional re-branding opportunities, and the excitement of this is very refreshing. As collision repairers, we can get bogged down in the minutia of shop life. It’s easy to lose sight of all we are really capable of when we lock together. It could be the best thing to happen in my time with WMABA, both on the board and as a longtime member.” WMABA’s Board of Directors is very pleased with the potential opportunities offered by all of these milestones. Hendler added, “Coming in the near future, WMABA will also release additional information about the anniversary and initiatives in the works for continuing to be at the forefront of education, mentoring, and membership advocacy.” For more information about WMABA, visit www.wmaba.com or call 804-789-9649

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Both Hurricane Irma and Harvey Damaged 1 Million Cars. What’s Next? by Shazir Mucklai, Equities.com

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With Hurricane Maria damage still being assessed in Puerto Rico, the cost of the damage from Irma and Harvey has only recently become apparent. Many companies with a large presence in Texas have also taken a major hit. Estimates on the high side show Hurricane Harvey damages totaling at $180 billion and Hurricane Irma damages hitting $100 billion. If these numbers prove to be true, it could no doubt be one of the most expensive disasters in the history of the United States. As one can assume, most of the recovery-related expenses will go towards property damage. However, due to the massive flooding, vehicle losses will also be extremely costly. How Many Cars Did Each Hurricane Destroy? Both hurricane Harvey and Irma were Category 4 storms that made landfall within the same two-week span. Harvey destroyed an estimated staggering 400,000 vehicles, according to Cox Automotive estimates. Harvey and Irma submerged cars and property across the southern U.S. as the two Category 4 storms

made landfall within the same twoweek span. Hurricane Harvey destroyed 300,000 to 500,000 vehicles in Houston alone, according to Cox Automotive estimates. The cost of licensed cars lost in the storm—excluding ve-

hicles flooded while waiting in dealership parking lots—falls between $2.7 and $4.9 billion. Due to the sheer amount of property damage caused to vehicles, the aftermath of the hurricanes could help drive October as one of the best U.S. sales months this year. Additionally, through the end of the year, analysts have predicted that cars that were damaged and need replacement during Hurricanes Maria and Irma won’t be showing up for at least another month. “When you have hundreds of

thousands of people affected by an event of this magnitude,” said Edmunds analyst Jessica Caldwell, “not everyone will hit the market at once.” Insurance companies are also expected to take a massive hit on their P&L’s for the quarter. State Farm reported that it has sent a record 1,000 people to affected areas. Some insurance firms have also reported, on average, the cost of an interstate household move is about $4,300 (distance of 1,225 miles) and the average cost of an intrastate move is about $2,300 (4 movers at $200 per hour). State Farm stated that it has received almost 37,000 auto claims in Texas alone and has paid out more than $345 million to car owners impacted by Harvey. Furthermore, it has paid out only about $35 million to auto customers impacted by Irma, which made landfall in Florida about two weeks later. This will reduce its working capital significantly for the next couple of quarters, as it will have to downplay its cash outlay. We thank Equities.com for reprint permission.

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