November 2020 Southeast Edition by Autobody News

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AUTOBODYNEWS.COM Vol. 11 / Issue 9 / November 2020

The 2020 Election and Auto: Cars.com Compares Each Presidential Candidate’s Automotive Policies

SEMA Show and SEMA360: What’s the Same?

A team of experts at Cars.com, a leading digital automotive marketplace and solutions provider, explored the differences in each presidential can-

Day-to-day business production has changed drastically during the past seven months, and specialty-equipment companies have discovered creative ways to keep operations running and adapted to an inconsistent marketplace. In the interest of serving those companies and supporting the association’s mission to help member businesses succeed and prosper, SEMA360 was created. “Each year SEMA Week creates a community exchange of innovation, education and networking that sets the course of business for the

didate’s platforms and looked into major impacts the upcoming election will have on the automotive market

and American consumers. The full report can be found at Cars.com/news/election2020. “The first point people should understand about the auto industry is that vehicles are manufactured for years in essentially the same form based on an enormous upfront investment—vehicle platforms last 6.7 years on average,” said Joe Wiesenfelder, executive editor for Cars.com. “Contrast this with a four-year presidential term, and it’s hard to accept any claim that a president or nominee has changed, or could change, where See The 2020 Election, Page 24

by Jason Catullo, SEMA

following year,” said Tom Gattuso, SEMA vice president of events. “During this year’s SEMA Week, Monday through Friday, Nov. 2-6, the amount of content exchange and interaction between manufacturers, buyers and media will again be unmatched.” There are currently more than 600 manufacturers ready to offer an exclusive look at their newest products, highlight trendsetting vehicles and in-progress project builds, and meet with buyers through SEMA360. Gattuso has also been contacted by retailers and resellers whose See What’s the Same?, Page 15

Registration for the 2020 MSO Symposium Now Open

AI Has Already Changed the Game for Auto Insurers

The Automotive Service Association (ASA) announced earlier this month the ninth installment of the MSO Symposium would take place as a five-day virtual event the week of Nov. 9, and that for the first time ever, the program is open to the entire industry and at no cost. Registration is now open. The 2020 MSO Symposium will run as a series of 90-minute, daily webinar sessions that provide insight and guidance on the most important issues in the automotive collision repair business. Similar to years past, the agenda, timing and content is driven and directed by

by Christoph Plenio, CCC Information Services Inc.

industry leading members who participate on the program’s advisory board. The program features speakers like Susanna Gotsch, industry analyst from CCC Information Services; Rex Green, global co-head automotive aftermarket investment banking with Jefferies LLC; OEM and insurance company representatives; and panel participants from a variety of multi-shop organizations, both large and small from across North America. Additional information on this year’s agenda and speakers can be found at www.msosymposium.com/ See MSO Symposium, Page 26

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AI is changing how insurers do business. Accelerating decisions. Improving outcomes. Constantly adapting to customized rules and permutations. This isn’t a vision, but the reality for more than 50 insurance carriers working with CCC across AI use cases. In conversations and media, AI is often discussed as a concept. That’s yesterday’s news. Today, AI is a proven factor in improving experiences and processes for countless policyholders. For example: AI applied to a single photo can predict repairable versus total loss claims, resulting in real-time decisions that don’t leave policyholders waiting days or weeks to know the fate of their vehicle. AI applied to auto damage estimates flag outliers based on carrier-specific rules and guidelines, identifying line-level items that appear out of the norm, and resulting in greater estimate accuracy. AI-powered estimating automatically predicts which parts are damaged, whether they can be repaired or

need to be replaced, and approximate labor hours, boosting appraiser productivity. AI-powered 3rd-party injury evaluations ensure accurate assessments of impact severity, availability of complete injury causation analytics, and that medical bill review is accomplished in the most efficient and effective manner for the third-party adjuster. These are just a few examples of the near touchless claims experience that exists today with people engaging where necessary to confirm AI-led claims flow from accident detection, to first notice of loss, to predictive method of inspection and beyond. This is a small snapshot of AI today. Tomorrow’s AI will empower even more business decisions earlier in the process and with even greater precision. AI run on edge devices, such as mobile phones, will detect contextual information from the accident scene while augmented reality technologies deployed on these same mobile phones will more fully See Changed the Game, Page 12

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2 NOVEMBER 2020 AUTOBODY NEWS / autobodynews.com

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CONTENTS REGIONAL Arrival to Build Its First U.S. EV Factory in South Carolina ��6 CARSTAR Alan Conner Collision Center Opens New Chester Location in Virginia ��6

Call or Email Now for Rates: AUTOBODY

Program at I-CAR Virtual Meeting ��43

ltedesco@autobodynews.com

Caliber Commits to ‘Restoring You’ by Gifting

800-699-8251

Restored Vehicles to Front Line Heroes ��57 CCG Adds 100th New Affiliate ��59 COVID Boosts Digital Age for Auto Claims ��28

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

3M Automotive Aftermarket Division �� 9

Innovative Tools & Technologies �� 41

American Icon Automotive Finishes �� 22

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

Audi Wholesale Parts Dealers �� 53

John Heister Automotive �� 34

AutoNation Collision Parts �� 13

Kia Motors Wholesale Parts Dealers �� 55

AutoNation Ford-Lincoln �� 43

Killer Tools & Equipment Corp. �� 15

BASF Corporation �� 33

Malco �� 27

BMW Wholesale Parts Dealers �� 54

Mercedes-Benz Wholesale Parts Dealers �� 59

Brandon Ford �� 37

MINI of Charleston �� 18

Collision Repairers to Meet Requirements

Certified Automotive Parts Association �� 24

MINI Wholesale Parts Dealers �� 54

of Insurers, OEMs & Customers ��46

Charlotte’s Premier Wholesale Parts Source �� 47

MOPAR Wholesale Parts Dealers �� 35

COLUMNISTS

OEC Appoints New President and CEO ��28

City Kia of Greater Orlando �� 32

NOROO Paint & Coatings �� 25

Anderson - Pricing Change Reflects the

Registration for the 2020 MSO Symposium

Classifieds �� 58

PPG Refinish �� 11

Carter Myers Automotive Working With Families Impacted By Pediatric Cancer ��18 Classic Collision Expands Growth into a New Florida Market Area with Two Acquisitions ��12 Insurer Impact from Sally Expected to be Moderate; Losses Estimated at $1B to $3B ��10 Jim Ellis Group Works to Help Atlanta Beat COVID ��8

COVID-19’s Effect on New Car Sales ��20 Hertz No. 1 in Customer Satisfaction ��6 Martin Named DCR Dir. of Operations ��54 Middle-Aged Drivers More Likely to Crash Than Those in Their 70s: Study ��59 Mitchell Delivers XR Hands-Free Solution for Collision Repair Facilities ��27 More Shops Invoicing, Being Paid For Labor

Repairing Cars is a Family Business ��12

to Inspect Seat Belts, According to ‘Who

Sheehy Auto Stores Raises $250,500 to

Pays for What?’ Surveys ��58

Benefit American Heart Association ��18 SK Innovation Accelerates Hiring at its

NADA Issues Analysis of Third Quarter 2020 Auto Sales ��22

First U.S.-based Electric Vehicle Battery

Nationwide Introduces Express App ��56

Site in Georgia ��16

New Push for Autonomous Vehicles Bill ��14

Volkswagen Orders Over 2,200 Robots for EV Production ��14

Absolute Need for Separate Charges for Scanning, Diagnostics ��32 Attanasio - BAR Auto Shop Locator Educates and Empowers California Consumers ��50 Attanasio - Killer Tools Attacks Pandemic with Mr. Fogger ��44 Attanasio - Online and Just in Time: SEMA 2020 Becomes SEMA360 ��40 Phillips - The Importance of Having a Broad Understanding of Vehicle Technology ��34 Yoswick - Two Shops Walk Away from Lawsuits Against Insurers ��38

OEC Acquisition of NuGen IT Will Further Assist

AI Has Already Changed the Game for Auto Insurers ��1 Axalta Extends Free Online Curriculum Offering to All Vocational Schools ��26 Beth Rutter Shares Sneak Peek of Pilot

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

Now Open ��1

Coggin Deland Honda �� 36

Prima Welds Inc. �� 23

Registration Open for SCRS’ Education Series ��8

Dale Earnhardt Jr. Buick GMC Cadillac �� 45

Professional Maintenance & Equipment �� 10

SEMA Show and SEMA360: What’s the Same? ��1

Dale Earnhardt Jr. Chevrolet �� 45

Radley Chevrolet �� 46

Eagle Abrasives, Inc. �� 21

RGI Spray Booth Company �� 26

Eckler’s Automotive �� 20

Rick Hendrick Chevrolet Naples �� 38

Equalizer Industries, Inc. �� 14

Riverside Ford-Lincoln �� 48

Florida Filtration & Spray Booth Services �� 6

SATA Dan-Am Company �� 5

Ford Wholesale Parts Dealers �� 56

Sherwin-Williams Automotive Finishes �� 2

GM Wholesale Parts Dealers �� 52

Shop-Pro Equipment �� 60

Gus Machado Ford �� 40

Southern Polyurethanes, Inc �� 17

Hendrick Automotive Group �� 51

Southside Kia �� 49

Hendrick BMW/MINI �� 7

Spanesi Americas �� 19

Hendrick Honda Pompano Beach �� 44

Steck Manufacturing Company �� 16

Employment for Graduates ��28

Hendrick Kia Cary �� 42

Subaru Wholesale Parts Dealers �� 57

Why Dealers Are Now ‘Exercising Caution’ ��54

Hendrick Kia Concord �� 42

Sunmight USA Corporation �� 39

Your Online Presence Needs to be Refreshed

Hendrick Volvo Cars of Charleston �� 32

Symach �� 12

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

Tameron Hyundai �� 50

Hyundai Wholesale Parts Dealers �� 56

Volkswagen Wholesale Parts Dealers �� 59

Tesla Sues U.S. Government Over Trump’s China Tariffs ��56 Tesla’s Cabin Camera Detecting Facial Features to Increase Vehicle Safety ��4 Tesla’s Elon Musk Talks Single Cast Design, Collision Repair Strategy ��20 The 2020 Election and Auto: Cars.com Compares Each Presidential Candidate’s Automotive Policies ��1 Using Texts & Selfies for Insurance Claims ��4

NATIONAL

INDEX OF ADVERTISERS

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

UTI’s Blended Training Model Leads to

in Pandemic Recovery ��36

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Using Texts & Selfies for Insurance Claims by Dhara Patel, PropertyCasualty360

Sometimes a simple, mature technology can reap big rewards. A case in point is property-casualty claims management, where insurers are using two established platforms in new ways: text messaging and selfies. Ubiquitous on social media and familiar to consumers, these digital tools are just now being adopted in

Insurance carriers are finding that texting conveys a sense of urgency and policyholders are more likely to respond to a text message. Credit: Courtney Keating, ALM Archives

the claims arena. And they are paying off in reduced claims times as well as lower claims costs. Since claims are a cost center and can eat into an insurer’s underwriting profit, claims managers are constantly looking for ways to process claims more efficiently. Insurers have harnessed technology to reduce paperwork, eliminate redundant data entry and expedite claims, but they have been slow to apply solutions that are outside their control and may

pose regulatory concerns. But as insurers become more confident of their data security protocols and feel they can meet regulatory requirements, text messaging and selfies are getting a second look. Text messaging can save time. Our company handles claims for Arrowhead and Brown & Brown national programs. In auto lines alone, we process 20,000 claims a year. So we know a thing or two about repeatable processes. Given that many claims, imagine how many times a claims adjuster picks up the phone in a year, and how many times no one answers. Reaching someone by phone these days can be hit-or-miss, and the back and forth of leaving messages is a real-time killer. Emails are not always answered, either. But texting has an immediacy that consumers like. Texting also conveys a sense of urgency. The rule of thumb is that the shorter the format, the higher the priority a message has in a consumer’s mind. So longer-format channels such as letters and emails may not get a high response, although they are often best for communicating formally. Text messages are opened almost immediately and are great for providing quick updates and asking policyholders to check their online accounts, where they can download important information or sign off

on a claim. We’ve found that policyholders like having the option of text messaging and are more likely to open texts than email. However, texting has its challenges when it comes to regulatory compliance. Many state regulations affect claims communications, which must be carefully structured and well documented. A claims manager can’t just text a customer from his or her cell phone. So we’ve integrated a texting solution into our claims process. It looks like a text message to our customers, but it’s generated through our claims system, and everything is documented in the customer’s file. There are several texting solutions for business available, but ensure they are insurance compliant. For example, California requires claims communications to be by “letter” or “voice,” so we’re still working through those restrictions. Selfies reduce cycle times and payment costs For personal and commercial auto claims, we’ve partnered with a vendor to give policyholders the option of taking photos and uploading them after an accident. It’s been surprisingly successful, resulting in payment cost savings, reduced cycle times— an average of 15 days to less than four—and an improved customer

experience. We used to send an adjuster out all the time for an auto claim. Now 60% of our customers are using the selfie service. It turns out they like being part of the process. We knew there would be a reduction in cycle times, but we didn’t expect the average payment per vehicle would drop too. By empowering the customer, we’ve lowered body shop costs. We send the policyholder an estimate and recommend body shops in their area. If a consumer knows from the get-go how much something should cost and gets several estimates, they generally go with the least expensive one. Texts and selfies allow customers to get more involved in the claims process, and they like that. Policyholders are providing a lot of the information needed to investigate claims and control costs. It’s a winwin for insurers and consumers. Dhara Patel is president of American Claims Management, a wholly-owned subsidiary of Arrowhead General Insurance Agency. Arrowhead is one of the largest national insurance program managers for commercial and personal products in the U.S., with $1.3 billion written premium in 2019. We thank PropertyCasualty360 for reprint permission.

Tesla’s Cabin Camera Detecting Facial Features to Increase Vehicle Safety by Joey Klender, Teslarati

When Tesla activated the cabin-facing camera within the Model 3 and Model Y in June with the 2020.24.5 Software Update, the company admitted it would help engineer develop safety features and enhancements for the future. However, new developments have been revealed by a notorious Tesla hacker, who has shown the coding for the cabin camera, and what facial features the function will look for to increase safety. Tesla hacker @greentheonly revealed the specific things the cabin camera is looking for after finding the software for the feature. A series of facial features and head positions are described within the software, and appear to be looking for ways to make drivers more aware and increase the safety of the vehicles.

Among the detected facial expressions are BLINDED, DARK, EYES_CLOSED, EYES_DOWN, EYES_NOMINAL, EYES_UP, HEAD_ DOWN, HEAD_TRUNC, LOOKING_LEFT, LOOKING_RIGHT, PHONE_USE, SUNGLASSES_ EYES_LIKELY_NOMINAL and SUNGLASSES_LIKELY_EYES_ DOWN. The interesting developments from the newly revealed coding show that the cabin camera will now be used by Tesla to increase safety and driver awareness. One of the most obvious indications of this is the PHONE_USE code, which will likely recognize and indicate when the driver’s eyes have left the road and have focused on a smartphone instead. Interestingly, just a few days ago, Tesla received a sixthplace ranking on the Assisted Driving Grading survey from the Euro NCAP

tests. The lower ratings were due to poor scores in the “driver engagement” metric, where the Model 3 scored only a 35 out of 100. The lack of a driver monitoring system on the Euro NCAP tests significantly affected the Model 3’s scoring on the test. It seems that Tesla is already preparing for the cabin camera to capture this data to increase vehicle safety. However, recognizing any movement or facial feature that could be a distraction to driving could be used with Tesla’s in-house insurance suite to determine a driver’s rates. For example, if the cabin camera detects PHONE_USE more often than the average driver, rates could be increased because the driver is not giving their undivided attention to the road. The likely scenario is to increase the driver monitoring system, which Tesla lacked according to the NCAP tests—expanding the driver’s aware-

ness of what is going on while driving is crucial, especially with Tesla’s self-driving and semi-autonomous functionalities. There is plenty of evidence that many people who use the FSD or Autopilot features do not use them correctly because they require the owner to continue to keep their hands on the wheel and remain aware of driving conditions. However, some owners have seen Tesla’s features as an opportunity to be less responsible on the road. The company has repeatedly stated the cars are not yet fully-autonomous. Drivers are required to continue monitoring their vehicle’s performance. The cabin camera’s monitoring system could be a pivotal way to eliminate the possibility of less-than-ideal awareness while driving a Tesla. We thank Teslarati for reprint permission.

4 NOVEMBER 2020 AUTOBODY NEWS / autobodynews.com

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Hertz No. 1 in Customer Satisfaction Hertz announced Oct. 14 that for the second consecutive year, it has earned the No. 1 overall ranking for Customer Satisfaction in the J.D. Power 2020 North America Rental Car Satisfaction Study, which surveys leisure and business customers. Hertz also received top honors in the following categories: reservation process, pick-up process and rental car, which includes satisfaction with the overall vehicle and its cleanliness. As traveler needs shifted amid the pandemic, Hertz quickly adapted to meet customer expectations. The car rental brand raised the bar on its already high standards for safety and cleanliness by introducing the Hertz Gold Standard Clean seal. To further help customers travel safely and confidently, Hertz launched new capabilities within its mobile app this year to facilitate a touchless rental experience by enabling them to select and purchase more products and services digitally. Source: Hertz

CARSTAR Alan Conner Collision Center Opens New Chester Location in Virginia CARSTAR, North America’s largest multi-store network of independently owned collision repair facilities, announced the opening of CARSTAR Alan Conner Collision Center Chester, located at 10360 Chester Road, Chester, VA.

Alan Conner, owner of both CARSTAR Alan Conner Collision Center locations, is a longtime industry expert, as his family has built a reputation of being a trusted resource for collision repairs for more than 50 years. Determined to uphold this commitment, Conner decided to join CARSTAR to enhance his services. “Vehicles are more complex than ever before, so our team needs to be sure we are staying up to date on

Arrival to Build Its First U.S. EV Factory in South Carolina by Vivian Jones, The Center Square

Zero-emissions electric vehicle manufacturer Arrival will build its first U.S. microfactory in Rock Hill, SC, the company announced Oct. 13. The London-based company’s $46 million investment will create a projected 240 new jobs in York County. “Our new Microfactory in South Carolina is the beginning of a paradigm shift in the [electric vehicle] space,” Mike Ableson, CEO of Arrival North America, said in a statement. “We’re thankful for the great work at the state and local levels that lead us to South Carolina, and we are excited to be able to partner with York County to deliver our vision for commercial electric vehicles while investing in the lives of the community members that support Arrival.” Arrival’s new facility will use a cell-based assembly method, instead of the traditional assembly line model, allowing it to produce any vehicle from the Arrival portfolio. This factory setup is designed to

bring down the cost of Arrival electric vehicles, making them more affordable to South Carolina consumers. “We couldn’t be happier that Arrival has decided to build zero-emissions [electric vehicles] right here in South Carolina,” Gov. Henry McMaster said. “It speaks volumes to our business-friendly climate and well-trained workforce, and we look forward to working with them for many years to come.” The facility is expected to begin operations by early 2021. Production initially will focus on building electric busses, sourcing materials through a localized supply chain. “The automotive industry continues to be a major job creator in our state’s economy, and today’s announcement is another sign of that,” Secretary of Commerce Bobby Hitt said. “Arrival’s decision to locate new operations in South Carolina builds on our international reputation for being a place where businesses can succeed.” We thank The Center Square for reprint permission.

the latest repair technologies to keep our quality commitment to our customers,” said Conner. “CARSTAR not only keeps us updated and provides us resources to thrive, but it also has that culture I grew up with where we all support one another. I love that I still get the benefit of serving my community and keep the family atmosphere at my facility, for both my staff and my customers.” CARSTAR Alan Conner Collision Center Chester is a 10,000-square foot facility on three acres of property that includes a tow lot and a parking lot. Already a Honda and Acura certified repair facility, this team also has the industry’s highest role relevant designation as an I-CAR Gold center. “Our industry is built on a foundation of longstanding businesses and CARSTAR is especially unique as we hold great value in the importance of this familial culture,” said Dean Fisher, collision group president, Driven Brands. “Our network is made up of owners like Alan who

prioritize culture, customer experience and excellence in repair quality. And this is what motivates us all each day to do our best in supporting these amazing local business owners.” Actively involved in giving back to his communities, Conner and his team prioritize Shine Month each year, a designated time to raise funds and awareness for the Cystic Fibrosis Foundation. Having raised hundreds of dollars for this cause, the team looks to continue supporting this cause along with others important to Chester. Please join us in celebrating the opening of CARSTAR Alan Conner Collision Center Chester! CARSTAR Alan Conner Collision Center Chester 10360 Chester Road Chester, Virginia 23831 (804) 748-3694 Monday to Friday: 8 a.m. – 5 p.m. For more information on CARSTAR visit CARSTAR.com. Source: CARSTAR

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Registration Open for SCRS’ Education Series The Society of Collision Repair Specialists (SCRS) announced registration is open for the 2020 Repairer Driven Education (RDE) series, and can be accessed at https://rde.scrs.com. The RDE series will be released in conjunction with SEMA360, on the same days of Nov. 2-6. The online RDE Full Series Pass ($375) provides even greater accessibility to educational solutions, unlocking access to all sessions being offered in the 2020 Repairer Driven Education series. Unlike in-person, where attendees had to pick and choose between sessions within a time slot, the RDE Full Series Pass will provide access to all sessions produced for the program, and will remain accessible through August 2021 for continued reference. For a full list of RDE sessions and speakers, visit https:// rde.scrs.com/courses. Source: SCRS

Jim Ellis Group Works to Help Atlanta Beat COVID by Auto Remarketing Staff

Atlanta Beats Covid, or ABC, includes volunteer makers, engineers, fabricators, seamsters and other “Southeast industry experts.” That group works to provide health care providers and other Atlanta community members with the necessary personal protective equip-

Credit: Screenshot via Atlanta Beats Covid

ment, or PPE, they need to stay safe while fighting COVID-19. From Aug. 31 to Sept. 7, Jim Ellis Automotive Group in Atlanta led a group-wide Labor Day Sales Event event with a portion of the new and pre-owned vehicle sales proceeds go-

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ing toward ABC. The event resulted in a collective donation of $35,000 to that organization. The donation supports ABC’s mission of providing PPE to Atlanta community teachers and special needs students. After the Sept. 9 donation presentation, Jim Ellis says ABC has manufactured and distributed 19,268 PPE items to Centennial High School, River Eves Elementary, Esther Jackson Elementary, Woodstock Elementary, Mountain Road Elementary, Chamblee Middle School and Teasley Middle School. That resulted in the following donations: 3,870 face shields, 3,072 bottles of hand sanitizer, 10,634 masks and 1,692 sanitizing wipes. “We are humbled to make this donation to Atlanta Beats Covid and thank them for their fabulous work on helping those in our community have face shields and face masks that will help keep them safe during

this challenging time,” Jim Ellis Automotive Group President Jimmy Ellis said in a news release. Ellis continued, “Our hope with this donation is that together, we can really support Atlanta Beats Covid with their efforts to purchase more materials so they can continue making supplies that our community, particularly our teachers and educators, desperately need.” Jim Ellis Automotive Group said schools or districts do not commonly provide educators or students with face shields, masks and other items “deemed essential for a potentially vulnerable environment.” In addition, the group wrote, because of a nationwide shortage and shipping delays, educators and staff might experience difficulty in obtaining PPE for themselves. ABC says the Jim Ellis Automotive Group donation will continue helping ABC fulfill the PPE requests from principals and administrators. We thank Auto Remarketing for reprint permission.

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Insurer Impact from Sally Expected to be Moderate; Losses Estimated at $1B to $3B by Amy O’Connor, Insurance Journal

Insured losses from Hurricane Sally could reach as much as $3 billion, according to catastrophe modelers, but ratings agency Moody’s expects a moderate impact on property & casualty insurers and reinsurers. “Because Sally appears to be primarily a flood event, we expect that the National Flood Insurance Program (NFIP) …will absorb significant losses because standard property and casualty (P&C) homeowners policies do not include flood damage,” Moody’s said in a Sept. 18 circular to investors. Moody’s analysts predict that P&C (re)insurers will face losses on commercial and some residential properties, though the full impact will take weeks to tally. Karen Clark & Co. pinned insured losses to onshore properties from the Category 2 storm at around $2 billion, while AIR Worldwide estimates that losses to onshore property resulting from Hurricane Sally’s winds, storm surge and inland flood will range from $1 billion to $3 billion, with wind representing the majority of the losses. KCC said its estimates were based on the KCC high-resolution U.S. Hurricane Reference Model and include the privately insured wind and storm surge damage to residential, commercial and industrial properties and automobiles. The estimate does not include NFIP losses, losses to offshore assets or any potential impacts on losses due to COVID-19. AIR Worldwide included losses to onshore residential, commercial and industrial properties and automobiles for their building, contents and time element coverage in its estimates. Hurricane Sally made landfall near Orange Beach, AL, on Sept. 16, with maximum sustained wind speeds of 105 mph. KCC noted Sally was the first hurricane to make landfall in Alabama since 2004’s Ivan, which occurred 16 years earlier to the day. The storm began to intensify as it moved inland toward the Florida Panhandle with winds of 80 mph, then diminished to a tropical storm. AIR Worldwide reported storm surge of around 6 to 7 feet in coast-

al communities of Baldwin County, AL, and Escambia County, FL (including Pensacola), and rainfall of up to 30 inches in Orange Beach and 24.8 inches in downtown Pensacola. Heavy rainfall was largely confined to a relatively smaller area covering the Florida Panhandle west of Tallahassee and southeastern Alabama.

According to AIR, although wind speeds diminished rapidly after landfall, Sally buffeted cities and towns for hours as it moved north-northeast across Alabama at speeds as slow as 2 mph. Coastal areas between Mobile, AL, and Pensacola, FL, lingered in the northern eyewall for hours. Tropical storm-force winds continued throughout the day across southern Alabama and the western Florida Panhandle. KCC noted severe wind damage was limited to areas near the coast that experienced the highest wind speeds. Isolated instances of structural damage occurred, including damage to roofs and walls. Lower levels of damage, such as to roof covering and siding, were more widespread. More than 500,000 residents were left without power as severe winds brought down power lines in parts of Florida and Alabama. Significant storm surge flooding in downtown Pensacola affected both residential and commercial buildings. A portion of the newly constructed Pensacola Bay Bridge was destroyed, and automobiles in the area also sustained damage. Heavy storm surge flooding impacted coastal Alabama where water submerged residential and commercial buildings in Gulf Shores and deposited numerous boats and vehicles around Orange Beach. Multiple bridges in both cities experienced damage. Sally could end up being a costly storm in terms of flood losses, Moody’s noted, but said that unlike 2017’s Hurricane Harvey, a Category 4 storm that caused widespread flood

damage in Houston and Southern Texas, Sally struck in less commercially dense areas and will be much less costly for commercial insurers than Harvey. However, because flood damage is not typically covered by homeowners policies, insurers could see disputes in cases where it is not immediately clear if the damage was caused by wind versus flood. “Disputes increase and prolong the cost of the claims settlement process and may lead to lawsuits and/ or regulatory intervention,” Moody’s stated. Insurers also likely face claims on private passenger and commercial vehicles, watercraft and other insured assets, Moody’s said, adding “flood-related auto claims are almost always total losses.” The primary insurers in Alabama likely to be affected based on their market share include State Farm Mutual Automobile Insurance Co., Alfa Mutual Co. and Allstate on the homeowners side and CNA, Travelers and Liberty Mutual Group

for the commercial property market. “Given their careful monitoring of exposures, geographic diversification, high quality reinsurance protection and strong capital bases, we believe these large national carriers are well capitalized to withstand hurricane events,” Moody’s said. “Regional insurers face greater effects because of their geographic concentrations.” Commercial property insurers could see flood losses, and Moody’s expects the coronavirus and related economic downturn might complicate business interruption claims and heighten the number of disputes. “Some interruption claims might reflect a combination of hurricane and coronavirus effects, with coverages depending on a range of specific policy provisions,” Moody’s said. Sally makes eight named storms that have impacted the U.S. so far this year, which is the most by mid-September in the historical record, KCC said. We thank Insurance Journal for reprint permission.

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Repairing Cars is a Family Business Hall’s Body Shop and Towing in Mineral, VA, has been helping people get back on the road after accidents for more than 55 years. Roger and Patsy Hall opened their business in 1964 in the same location it still sits at today, 703 Mineral Ave.

Roger bought the building after working for a body shop in the town of Louisa, VA. He had recently ended his military service and wanted to start his own business. With the support of Patsy, her brother, Jimmy, and other family members, he made

his vision a reality. Unfortunately, Roger had to step down from his business in 1987, when he was diagnosed with multiple sclerosis. Since then, the family has continued to live out his legacy of serving the community he loved so much. Hall’s is a one-stop shop for vehicle bodywork repairs and towing around the clock. Todd, Patsy’s son, learned the trade from his father and continues to master his skills. The industry has changed tremendously since he started working at his father’s shop years ago. One of the biggest changes he’s seen is the way cars are made today. The materials are much different than in 1964. Cars back then were made of steel and could handle an impact better than cars today, which are made mostly of plastic components like bumpers and grills. This has changed the way Todd repairs vehicles. “They just don’t make them like they used to,” he said. “Cars are dis-

posable today. They’re junk. There’s no pride anymore.” With the auto industry making more and more car parts out of plastic, for Todd that means there’s more swapping out the parts versus doing actual bodywork like his father did when he opened the business. Todd still does mudding and sanding, but for the most part, it’s “bolt it on, paint it and move on.” But he doesn’t think that’s necessarily a bad thing because the trade-off is the speed with which he can repair cars nowadays. Patsy and Todd have seen a boom in customers from the Lake Anna area. With the migration of folks from Northern Virginia to Louisa, the Hall family is glad to welcome the newcomers. Patsy and her family have a deep love for Louisa and take pride in delivering quality service by people who truly care about the community. We thank the Central Virginian for reprint permission.

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Changed the Game engage consumers. And AI-powered accident reconstruction will create the most detailed view of an accident yet, including the vehicle(s) involved, the scene and related damage. All, delighting the consumer in ways hardly imaginable today. The future of AI has multiple extensions across the insurance enterprise to inform more decisions, experiences, and performance. We are already starting to deliver on this future by processing and learning from more than a trillion dollars of historical data from multiple sources—telematics, driving data, vehicle history and more—connecting it in real time to provide a view of what happened and what is to come. The future is exciting, but it is important when looking ahead to not overlook the impact AI is already delivering today. And, for CCC and its customers, there’s nothing artificial about that. Source: CCC

Classic Collision Expands Growth into a New Florida Market Area with Two Acquisitions Classic Collision, LLC, an Atlanta based multi-site repair operator, announced two separate acquisitions Sept. 25 of Collision Professionals, Inc. in Port St. Lucie, FL, and Treasure Coast Auto Collision in Stuart, FL. These are Classic Collision’s 14th Florida locations. It now operates 41 centers in Georgia, Florida, Alabama and South Carolina. With these acquisitions, Collision Professionals will be known as Classic Collision Port Saint Lucie, and Treasure Coast Auto Collision will be known as Classic Collision Treasure Coast. Collision Professionals is well known for its reliable and quality auto repairs in Port St. Lucie, a serene town on the Atlantic coast of southern Florida. “We are excited to be part of Classic’s expansion into new Florida markets and look forward to the opportunity to serve the community under the Classic name,” said Joe Renella, former owner of Collision Professionals. Treasure Coast Auto Collision

has been serving the Martin and St Lucie counties and surrounding areas for more than 10 years, earning the trust and recommendation of their customers for exceptional auto repairs. “We are eager to join forces with a company that has such a strong reputation and business model and look forward to growing our presence in the market,” said Frank Verzi, former owner of Treasure Coast Auto Collision. “We are pleased to welcome the Collision Professionals and Treasure Coast Auto Collision teams to the Classic Collision family. We believe their expertise in the collision repair industry will greatly contribute toward expanding our service offerings,” said Toan Nguyen, CEO of Classic Collision. During these difficult market situations, Classic Collision is not slowing down plans to expand, and will continue to acquire high-end businesses. Its team’s effective integration model and operations playbook keep it safely performing at a high level. Source: Classic Collision

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New Push for Autonomous Vehicles Bill by Ashley Gold, Axios In a renewed push to get an autonomous vehicles bill through Congress, Rep. Bob Latta (R-Ohio) was to reintroduce the SELF Drive Act on Sept. 23, Latta told Axios. New policy legislation is a long shot in the short Congressional calendar leading up to Election Day. But Latta’s effort shows the importance many lawmakers put on promoting a U.S. lead in the development of self-driving vehicles. “The technology is changing, and we don’t want the Chinese to lead,” Latta, ranking Republican on the House Energy and Commerce technology and communications subcommittee, told Axios. “We’ve got to keep moving on it for safety’s sake.” The SELF Drive Act is a federal framework for autonomous vehicle regulation in the U.S., requiring cybersecurity provisions for AV manufacturers, exempting certain national safety standards to get cars to market quicker and pre-empting states from passing safety laws regarding AVs. The revised bill contains some changes from a version that passed the

House previously, including language that committee aides say makes it more inclusive for people with disabilities. Latta said the coronavirus crisis has made the need for self-driving cars in the U.S. even more apparent, as people seek contactless ways to get around and have goods delivered. After the SELF Drive Act first passed the House in 2017, objections in the Senate over certain provisions doomed the effort to create a federal regulatory framework for autonomous vehicles. Our thought bubble, from Axios transportation reporter Joann Muller: Congress has been talking about passing AV legislation for more than two years but hasn’t been able to get it done. Meanwhile, the U.S. Department of Transportation offers only guidance to companies developing self-driving cars. Without federal standards, the industry is relying on a patchwork of state laws, and consumer advocates complain about safety risks of AV testing on public roads. We thank Axios for reprint permission.

Volkswagen Orders Over 2,200 Robots for EV Production by Mark Kane, Inside EVs

Volkswagen announced it has ordered more than 2,200 new robots for the planned production of MEB-based electric cars in its plants in Emden, Hanover in Germany and Chattanooga, TN, mainly used for body production and battery assembly. This shows huge investments are needed to conduct a major switch from conventional to mostly all-electric cars. The Emden and Chattanooga plants will get more than 1,400 robots from Japanese manufacturer FANUC for ID.4 manufacturing lines, while Volkswagen Commercial Vehicles ordered 800 robots from ABB of Switzerland to make the production version of the ID.BUZZ. ID.4 is currently produced in Zwickau, and will be produced at

two sites in China too. That’s a total of five sites. According to the German manufacturer, those three plants in Emden, Hanover and Chattanooga will become the most advanced production plants in the industry. It will cost “several billion euros,” while the overall investment by the Group is €33 billion by 2024. “At Emden and Chattanooga, we are developing two of the most advanced production facilities in the automotive industry for the transformation to e-mobility,” said Christian Vollmer, member of the Board of Management of the Volkswagen brand responsible for production and logistics. “We are investing in the latest technologies such as digitalization and automation for this purpose even in the present situation.” We thank Inside EVs for reprint permission.

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Continued from Cover

What’s the Same? businesses have not stopped moving forward. Neither has the association. While there’s no SEMA Show in 2020, SEMA360 was built to provide buyers with a viable marketplace that offers benefits like an in-person trade event. “Industry buyers and manufacturers have made it clear that a marketplace is needed during this challenging year,” said Gattuso. “Attendees will discover that SEMA360 has many of the same benefits and business opportunities as the SEMA Show, with a focus on new product intros, vehicle debuts, networking and educational sessions.” For buyers and media, planning for SEMA360 is similar to the SEMA Show. For instance, at the SEMA Show, attendees can view a new product display, gather specs and a description, collect pictures and press material, and connect with the manufacturer on the Show floor. The same can be done through SEMA360 in a very efficient manner; including the

direct connection to the manufacturer. Here’s a look at some more similarities between the SEMA Show and SEMA360: The dates for SEMA360 and the week of the SEMA Show are the same, beginning Monday, Nov. 2, and concluding Friday, Nov. 6. The SEMA Show is open to the trade only. SEMA360 is the same: open to trade only. The SEMA Show features qualified buyers and media. SEMA360 will feature qualified buyers and media. The SEMA Show and SEMAS 360’s main buyer benefits and takeaways are the same: finding new products and new ideas. The online platform is anchored with a robust New Products Showcase of more than 1000 products. Industry-leading education sessions will be a main focus of SEMA360 and feature the relevant content participants in the in-person SEMA Show have grown to count on to build their businesses. Vehicles, always a mainstay at the SEMA Show, are featured in a SEMA360 online Builder Showcase and in many of the 600+ Man-

ufacturer Showcases so buyers and media can still spot trends and see products in application. OEMs use the SEMA Show to announce new products, partnerships and initiatives. There are four OEMs ready to do the same this year. Celebrities and notable industry icons are part of the fabric of the in-person Show. SEMA360 will also feature the insights and talents of many of these popular personalities. Show-special deals will be integrated into many of the online manufacturer presentations, just as they are at the in-person SEMA Show. Networking and connecting with industry colleagues can be facilitated as they are at the SEMA Show with virtual public and private meeting rooms with video and chat capability. While SEMA360 is all online, it has been purpose-built to include the features SEMA Show visitors have grown to expect—all designed to connect the industry and help propel businesses into a successful 2021. Nowhere else will you find the level of industry participation: 600-plus Manufacturer Showcases, a New

Products Showcase featuring 1,000 products, a Builder Showcase with hundreds of vehicles, industry-leading education with 50 seminars, and unmatched networking with thousands of industry buyers and media. If you want to be part of the momentum and energy that is moving the industry forward into 2021, you need to be part of this year’s SEMA Week and you need to be part of SEMA360. Register to attend: www.sema360. com/buyer.html Register for a Manufacturer Showcase www.sema360.com/manufacturer.html Register here to submit a vehicle build www.secureprod.sema show.com/SEMAESM/ESM/Builder Showcase.aspx We thank SEMA for reprint permission.

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SK Innovation Accelerates Hiring at its First U.S.-based Electric Vehicle Battery Site in Georgia With the support of the State of Georgia, Jackson County and the City of Commerce, SK Innovation announced it plans to hire more than 1,000 skilled American workers by the end of 2021 as it prepares for initial production at the first of two electric vehicle battery plants being built in Commerce, about 70 miles northeast of Atlanta. In one of the largest economic projects in Georgia’s history, SK Innovation affirmed its long-range investment plans for the facility that would make Georgia one of the largest hubs of EV battery manufacturing in the world.

SK Innovation recently reached a hiring milestone with the on-boarding of its first 60 employees at the Commerce site. These employees include production supervisors, production/process/electrical engineers and quality/logistics specialists who will set up, work and serve as the trainers for the EV battery production workforce at the two SK Battery America plants under construction at the site. SK Innovation also recently achieved key construction milestones at the Georgia site with the completion of the exterior of its first manufacturing plant and ground breaking on the second plant. Together, the two SK Battery America plants will have capacity to make enough battery cells each year to power the equivalent of more than 300,000 electric vehicles. “If you drive along I-85 northeast of Atlanta, you can’t miss the progress taking shape at the new SK Innovation facilities in Jackson County. With today’s announcements, SK Innovation is well on their way to fulfilling the $2.6 billion investment commitment and 2,600 promised jobs they will create in our state,” said Commissioner Pat Wilson of the Georgia Department of Economic Development. “We

thank our partners at Georgia Quick Start and Lanier Technical College for providing the specialized training for so many local employees and our area economic development partners for their commitment to success. The electric vehicle battery plant underway in Commerce will put Georgia in the driver’s seat for the next era of the auto industry and ensure our economy keeps growing at a time when we need jobs most.” SK Innovation, South Korea’s largest energy company, is building two EV battery plants at the Georgia site as part of a $2.6 billion investment in its U.S. battery business that will directly create more than 2,600 permanent jobs in the Jackson County area by 2024. The first SK Battery America plant is scheduled to begin initial operations in 2021 with mass production in 2022. A second plant at the same site is expected to begin mass production in 2023. As the market for electric vehicles continues to grow, SK Innovation is committed to making Georgia a world leader in EV battery manufacturing. “We are only at the very beginning of what will be a long-term positive impact on Jackson County and the City of Commerce from the SK Battery America site,” said Commerce Mayor Clark Hill. “This is a transformational economic development project that will fuel new job opportunities for our region, spur more spending across Jackson County and establish Commerce as a center for innovation in a fast-growing part of the economy. The impact is even more significant as the region and entire U.S. look for hope and job growth coming out of the pandemic.”

velopment program that provides customized workforce training at no cost to qualified businesses in Georgia. It has trained more than 1.25 million workers through nearly 7,000 projects since 1967. Lanier Technical College provides technical and adult education to support the economic development and well-being of the people, communities and companies of various counties including Jackson County. “At a time when the global economy is facing unprecedented challenges, we are committed to doing our part to drive economic development and recovery in the region and, at an individual level, provide area residents an exciting path forward for career development,” said SK Innovation CEO Jun Kim. “We are working with a variety of partners and local academic institutions to train and recruit new workers that will help us achieve a competitive advantage in the EV industry. We look forward to continuing to work together with Georgia and Jackson County to establish a world-class center of excellence

in EV battery production.” SK Battery America, SK Innovation’s U.S. subsidiary, began initial hiring and training this year of employees at the Georgia site with plans to have more than 150 employees by the end of this year. It anticipates hiring another 900 employees next year. SK Innovation is an affiliate company of Seoul-based SK Group, South Korea’s third-largest conglomerate. SK Group companies have made significant investments in the U.S. in the areas of sustainable energy, biopharmaceuticals, advanced materials and semiconductors, reaching $5 billion in investments in the U.S. over the past three years. Source: SK Innovation

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Clean Energy Job Surge in Georgia The new jobs that will be created in Jackson County include a range of technical roles from production operators to senior engineers focused on manufacturing highly sophisticated lithium-ion battery cells at scale. To help begin the process of hiring and training workers, SK Battery America has signed a partnership agreement with Quick Start and Lanier Technical College in Georgia. Quick Start is Georgia’s internationally acclaimed economic de-

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Carter Myers Automotive Working With Families Impacted By Pediatric Cancer by Rachel Hirschheimer, WVIR

Pediatric cancer impacts many families across the country every year. Carter Myers Automotive (CMA) in Albemarle County is helping to lessen the financial burden of those affected. For each vehicle sold during the month of September, CMA donated money to nonprofits supporting pediatric cancer research throughout Virginia. Friday, a check for $12,676 was awarded to UVA Children Hospital to help fund research and treatments. Since 2004, CMA has been hosting drives and fundraisers to raise money for pediatric cancer. This year was the largest September event as dealerships from Charlottesville, Staunton, Woodstock, and Winchester all helped. “Our goal was to raise money to offset all of those logistical expenses, including gas and fuel costs, car repairs, and any all of these other costs that come with transporting your child back and

forth to the hospital,” Carter Myers Automotive President and CEO Liza Borches said. “This money is going to go a long way for children fighting cancer at UVA Children’s, but it means so much more given the circumstances that we’re in,” UVA Children’s Hospital Associate Director of Development Ryan Lightner said. “There’s this whole pandemic going on, but cancer doesn’t wait for that.” All together, Carter Myers Automotive donated more than $28,000 to help fight childhood cancer.

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GAA Classic Cars Helps Make Christmas Special During a Pandemic Year by Elizabeth Puckett, Motorious

A recent Instagram post auction company GAA Classic Cars shows some businesses are looking out to make sure Christmas comes for all, despite this year being tainted by the pandemic. The Greensboro, NC-based auction company recently donated Christmas showboxes to the organization. This is the help Samaritan’s Purse in their efforts to collect and distribute more shoeboxes than ever before. Operation Christmas Child is a project of Samaritan’s Purse, an international relief organization. Its mission is to provide local partners around the world with shoeboxes filled with small toys, hygiene items and school supplies as a means of reaching out to children in their own communities with the Good News of Jesus Christ. It ships these simple gifts outside the U.S. to children affected by war, poverty, natural disaster,

famine and disease; and to children living on Native American reservations in the U.S. The program was started in the United Kingdom in 1990 by Dave and Jill Cooke. Three years after this beginning, the Wales-based shoebox gift project merged in a partnership with Samaritan’s Purse, allowing them to share 20 years of expertise in relief and aid work with the project, and expand the reach of the shoebox gifts to more than 28,000 children that year. Since 1993, Operation Christmas Child has delivered gift-filled shoeboxes to more than 168 million children in more than 100 countries. Learn everything you need to get involved too right here. https://www.samaritanspurse. org/operation-christmas-child/ pack-a-shoe-box/ We thank Motorious for reprint permission.

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Sheehy Auto Stores Raises $250,500 to Benefit American Heart Association Sheehy Auto Stores raised $250,500 to benefit the American Heart Association as part of the company’s annual Sheehy 8000 Sales Race, a community-wide effort that ran July 17 to Sept. 8, raising funds and awareness for the charity. “The Sheehy 8000 continues to be our biggest annual sales event and fundraising partnership,” said Vince Sheehy, president of Sheehy Auto Stores. “During the COVID-19 pandemic, it is important now more than ever to stay well through heart healthy diets and exercise. Our partnership with the American Heart Association enables them to continue their great work and community support.” In lieu of a series of in-person “Lunch and Learns” for Sheehy Auto Stores’ back office staff, the American Heart Association worked with Sheehy to facilitate a virtual event with more than 100 attendees from dealerships in Annapolis and Waldorf, MD; and Ashland and Springfield, VA. Speakers included Dr. Roquell Wyche, a cardiologist with Chesapeake and Washington Heart Care, and heart patient survivor, 16-year old Kaelyn Graham and her mother,

Jolanda, who shared their story. Sheehy’s 29 dealerships participated in a Pedometer Challenge, collectively recording 763,548 steps and surpassing last year’s count of 656,006 steps. Sheehy INFINITI of Chantilly, VA, won the challenge with 115,854 steps.

Vince Sheehy, president of Sheehy Auto Stores, presents a check to Soula Antoniou, executive director of the American Heart Association.

Employees were encouraged to select various heart-healthy activities and habits from the American Heart Association Game Board ranging from workouts to dietary and sleep adjustments. To date, Sheehy’s fundraising efforts have raised more than $40 million for community and non-profit organizations, and more than $1.7

million raised for the American Heart Association. “All of us at the American Heart Association are grateful for Sheehy’s unwavering loyalty during these unprecedented times. COVID-19 disproportionately affects heart and stroke patients, making their support more important and life-saving than ever,” said Soula Antoniou, executive director at the American Heart Association. “The Sheehy 8000 is a phenomenal sales race and truly a team effort! The commitment of Sheehy’s employees, vendors and customers can be seen in funds raised and the lives impacted---in Sheehy dealerships and in our communities,” added Antoniou. “With more than $1.7 million raised to date, this campaign has made much of our work around blood pressure management, healthy food access and CPR training possible. From the bottom of our hearts, thank you!” The mission of the American Heart Association is to build healthier lives, free of cardiovascular diseases and stroke. Source: Sheehy Auto Stores

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COVID-19’s Effect on New Car Sales Many Americans continue struggling to get by following the highest unemployment rates since the Depression. Any kind of largescale purchase might seem completely out of the question to most, especially a brand new car. According to Pretected, new car ownership has plummeted 26% from this time last year and continues to drop. Extended restrictions across the nation underscore that there is no guarantee of the market’s recovery anytime soon. However, new car sales may already be primed to rebound in areas that have relied heavily on public transportation in the past. Cities that normally show some of the highest use of public transport in the country have seen ridership almost vanish through the pandemic. Many of those who are able to commute prefer not to be stuck in an enclosed bus, train or even ride-share with strangers for any length of time. Source: Pretected.com

Tesla’s Elon Musk Talks Single Cast Design, Collision Repair Strategy by Simon Alvarez, Teslarati

Elon Musk recently shared some details about Tesla’s collision repair strategy when the company rolls out its vehicles that are built using single-piece castings.

The update provides a glimpse at Tesla’s emerging approach to vehicle maintenance and repair, an aspect of the electric car maker’s business that will likely be more notable as the company grows. Considering that Tesla’s vehicles will be built with large, single-piece casts, members of the electric vehicle community have been inquiring about the company’s strategy for repairing damages from incidents like minor collisions. It would be quite challenging to replace vehicle parts, after all, if the electric cars are only comprised of a few massive, casted pieces.

Inasmuch as this may be the case, Tesla appears to have come up with a rather novel solution for the potential challenges that will be brought about by single-piece casts. According to Musk, the crash absorption rails of vehicles like the made-in-Germany Model Y could simply be “cut oﬀ and replaced with a bolted part for collision repair.” Considering that Teslas are already challenging and costly to repair today, it would be quite interesting to see if the company’s use of bolt-on parts would make repairs cheaper or more expensive. Apart from his updates about Tesla’s collision repair strategy, the Tesla CEO also provided some details about the electric car maker’s structural battery packs, which are expected to be used for upcoming vehicles like the Model S Plaid, Cybertruck and the made-in-Germany Model Y. According to Musk, structural battery packs would make Tesla’s vehicles safer, as they provide better torsional rigidity and an improved polar moment of inertia. “Battery pack will be a bond-

ed structure with cells providing shear transfer between steel upper and lower face sheets, eliminating most of the center body parts while providing better torsional rigidity and improved polar moment of inertia. This is a major breakthrough,” Musk noted. Interestingly enough, this detail was actually explained previously by automotive teardown expert Sandy Munro, who noted a structural battery would make Teslas safer and less prone to untoward incidents like ﬁres. Musk appears to have validated Munro’s insights recently, stating on Twitter the veteran “knows engineering.” We thank Teslarati for reprint permission.

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NADA Issues Analysis of Third Quarter 2020 Auto Sales by Patrick Manzi, NADA

NADA on Oct. 7 issued its analysis of U.S. auto sales and the economy following the third quarter of 2020. Through the ďŹ rst three quarters of the year, new-light vehicle sales were down 19% relative to the same time period in 2019. In September, raw sales volume totaled 1.34 million units, an increase of 6.1% compared to September of 2019; the increase in Septemberâ&#x20AC;&#x2122;s volume was due, at least in part, to the inclusion of the Labor Day sales weekend and two additional selling days compared to the same month in 2019. â&#x20AC;&#x153;While we have continued to experience a steady recovery for new-vehicle demand year since the lows of April, vehicle sales have remained depressed compared to 2019 given a variety of factors including inventory,â&#x20AC;? said NADA Chief Economist Patrick Manzi. â&#x20AC;&#x153;Septemberâ&#x20AC;&#x2122;s SAAR registered 16.3 million units, the ďŹ rst time sales have topped 16 million units since February 2020. However, this is a decline of 4.3% compared to September 2019.â&#x20AC;? Despite a decline for all car segments, sales of pickups, SUVs and crossovers all posted gains relative to this time last year. In the ďŹ rst three quarters or 2020, three out of every four vehicles sold were light trucks. NADA sees strong retail sales despite an environment with falling manufacturer incentives, after peaking in April at $4,981 per unit. J.D. Power estimates that average incentive spend per unit will drop to $3,964, the ďŹ rst time since June 2019 when incentives have fallen below $4,000 and down approximately $300 compared to September of last year. Interest rates have also decreased, while average monthly pay-

ments have increased. According to J.D. Power, the average interest rate on new vehicle ďŹ nancing was 4.4% in August 2020, down a little over 100 basis points compared to August of 2019, but up by 80 basis points

from April 2020â&#x20AC;&#x2122;s low of 3.6%. The average monthly payment on a new-vehicle ďŹ nance contract was $582 in August 2020â&#x20AC;&#x201D;up $18 compared to August 2019. Inventory continues to be a concern for dealers; nationwide, franchised dealer inventory was 2.66 million units at the end of Septemberâ&#x20AC;&#x201D;up 3.6% compared to August 2020, but down 26.7% compared to September of 2019. At present, dealers has an average 50 day supply of inventoryâ&#x20AC;&#x201D;down one day from August 2020 and 16 days compared to September 2019. On the production side, North American light-vehicle production is expected to be 1.36 million units, roughly ďŹ&#x201A;at compared to September of 2019, according to Wards Intelligence. North America production for the entire year is on track to total 13.4 million unitsâ&#x20AC;&#x201D;20.2% below 2019â&#x20AC;&#x2122;s 16.8 million. Consumers who took lease extensions in March, April and May are expected to be returning to the new vehicle market in the next few months which should be a positive

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boost for sales in the ďŹ nal quarter of the year. While retail demand is expected to continue to recover the remainder of the year, ďŹ&#x201A;eet sales will continue to be depressed relative to 2019 volumes. However, NADA sees possible improvement in ďŹ&#x201A;eet demand in the fourth quarter of 2020. At the onset of the pandemic, NADA reduced its initial 2020 light-vehicle sales forecast of 16.8 million units to 13 million to 13.5 million units. â&#x20AC;&#x153;Given the better than expected recovery in the new light-vehicle market, we estimate 2020 new light-vehicle sales to be higher, reaching 14.1 million units,â&#x20AC;? added Manzi. At the macro level, real GDP in the third quarter of 2020 is expected to increase by roughly 35% on an annualized basis following a sharp decline of 31.7% in the second quarter. In the labor market, job gains are expected to continue in the fourth quarter, albeit at a slower rate than in the months prior. According

to the September jobs report from the Bureau of Labor and Statistics, employment increased by 661,000 jobs, and the unemployment rate fell to 7.9%. However, weekly jobless claims continue to be elevated compared to pre-pandemic levels with employment potentially falling in impacted sectors such as leisure and hospitality as American consumers return indoors during the winter months. Additionally, pandemic-related job losses continue to impact lower-earning workers more signiďŹ cantly than higher income workers. At franchised new-car dealerships, employment has improved each month since bottoming out in April at 888,000; as of August, franchised dealerships currently employ 1,048,800 workers. For more detailed information on ďŹ nancial trends for the ďŹ rst half of 2020, ďŹ nd the midyear version of NADA Data 2020 report here. Source: NADA

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Continued from Cover

The 2020 Election automakers conduct final assembly in short order, even though this is where the current candidates are making most of their campaign claims and pledges.” Cars.com discussed potential outcomes covering three main focus areas for the candidates in the upcoming 2020 presidential election. Three Words Our Country Loves: Made in America The candidates do not differ much on the U.S.-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement under President Donald Trump. However, it will take years to see the final impact on where automakers build their vehicles. To date, there are few signs that the USMCA is bringing manufacturing back to the U.S. from abroad. Ford went from importing the Ranger mid-size pickup truck to assembling it in the U.S. However, it also opted to cancel the redesigned Focus sedan/hatchback due to tariffs. “Regardless of campaign pledges, once production begins in a plant, country or hemisphere, relocating that platform is more expensive than most tariffs, penalties or trade restrictions the manufacturer might encounter,” said Wiesenfelder. “American parts manufacturing timeframes aren’t as long as vehicle platforms, however; if either candidate focuses on lower-tier manufacturing, it is possible we’ll see more auto parts plants move to the U.S., as Vice President [Joe] Biden has suggested, referring to domestic auto supply chains.” The Future of Electric Vehicles “The clear difference and potential for swift change between President Donald Trump and Vice President Joe Biden is their environmental stances and EVs,” added Wiesenfelder. Biden’s focus on EVs and environmental policies could also be fueled further as Democratic governors apply more energy behind these efforts on a local level; one example is California Gov. Gavin Newsom and his recent announcement to ban the sale of new gasoline-powered

vehicles by 2035. Consistently low gas prices and tepid government support are two reasons Cars.com predicted last year that EVs would struggle to become mainstream in the U.S. even by 2030. Government support is a necessity for zero-emissions vehicles

for, more environmentally friendly vehicles and programs. The Trump Administration’s rollback of environmental programs and regulations is among the most substantial since President Richard Nixon founded the Environmental Protection Agency in 1970. Trump

“EVs need to be less expensive to compete. As they exist today, they will never make a meaningful dent in the marketplace without subsidies,” — Joe Wiesenfelder to achieve mainstream sales. When federal electric car tax credits were set to expire for GM and were gone for Tesla in March, the Trump Administration reportedly blocked attempts to extend them. It currently offers no other information for EV support in the future. Biden’s campaign plans involve restoring the full EV tax credit, with a target toward middle-class Americans, and increasing the EV infrastructure by building 500,000 new public charging outlets by 2030. Additionally, Biden will offer dedicated grants and funding to help manufacturers retool and build new factories “to help ensure U.S. global leadership in EV manufacturing, including EV components and batteries.” For consumers to adopt EVs, incentives will help, as will the availability of public charging stations. However, it’s worth noting that most EV buyers do the overwhelming majority of their charging at home, and well-intentioned interventions can go wrong, such as when federal tax credits of $7,500 went to buyers of $100,000 EVs, offending allies as much as opponents. “EVs need to be less expensive to compete. As they exist today, they will never make a meaningful dent in the marketplace without subsidies,” said Wiesenfelder. “Government support is necessary, and we predict a clear difference in the marketplace if Vice President Biden takes office. If President Trump is reelected, EVs could once again falter or even retreat as they did under other Republican administrations.” Gas Is Cheap, Which Means More SUVs, Fewer Environmental Programs Fuel prices remain consistently low, decreasing the interest in, and demand

exited international climate treaties and reversed President Barack Obama-era policies and regulations. Biden’s plan demands a worldwide ban on fossil fuel subsidies and targets a 100% clean energy economy and net-zero emissions no later than 2050. In addition, his campaign looks to update the Cash for Clunkers program to provide consumers rebates to swap old, less eﬃcient vehicles for new vehicles built from materials and parts sourced in the U.S. Biden’s camp also states it will commit to purchasing clean vehicles for federal, state, tribal, postal and

local ﬂeets. Under the Trump Administration, Corporate Average Fuel Economy, a standard that regulates how far automakers’ vehicles must travel on a gallon of fuel, was decreased. Biden’s campaign points to a new fuel economy standard even higher than that under Obama. Any changes are likely to get held up in the courts for years as automakers and states push back; even without the barriers, CAFE changes take years to show results for consumers. Regardless of who enters the White House in January, impact from COVID-19 on the automotive industry is likely to continue and may require additional attention from policymakers in the future. For more information and to read the full report, visit Cars.com/news/ election2020. Source: Cars.com

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MSO Symposium agenda Registration to the virtual 2020 event is complimentary thanks to the event’s industry supporters and sponsors. To read more information about these companies and the equipment and services they provide, visit www.msosymposium. com/sponsors To attend the 2020 MSO Symposium, registration is required. To begin the registration process, visit http://events.r20.constantcontact. com/register/event?oeidk=a07ehcob3dzaf8081d4&llr=rzo6p8n6&showPage=true Companies and organizations interested in taking part in our limited sponsorship opportunities, visit the MSO Symposium website or contact us. Any additional questions can be directed to Jennie Lenk at JennieL@msosymposium.com. Source: ASA

Axalta Extends Free Online Curriculum Offering to All Vocational Schools Axalta, a leading global supplier of liquid and powder coatings, on Oct. 8 announced its online Reﬁnish curriculum is available to all vocational schools at no charge. This oﬀering, which originally began as a pilot program with just a few vocational schools, is being

extended to support all vocational schools in North America and their students, speciﬁcally at a time when distance learning is so critical to education. Axalta’s online curriculum, available to both vocational high schools and secondary schools, will help educate students who may otherwise be learning through in-person instruction. The multi-week curriculum cov-

ers all facets of a collision repair shop, including customer service, detailing, body repair, measuring techniques and painting. The way it works is simple: Axalta provides interested schools with the online content and a syllabus guide, and then the schools deliver the program to their students. All content is available in English and several courses are also offered in French. The courses are available via Axalta’s online training hub, the Axalta Learning Campus. Each school has a designated area in the Axalta Learning Campus where students can view the courses and track their progress. Additionally, participating school administrators have access to detailed reports that feature each student’s scores and development in the Axalta Learning Campus. “Over the last few months, we’ve received countless requests for online course offerings,” said Patricia Morschel, marketing and commercial operations director for North America Refinish at Axalta. “The pilot program was hugely successful, and we couldn’t be happier to extend

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Mitchell Delivers XR Hands-Free Solution for Collision Repair Facilities Mitchell, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) claims and Collision Repair industries, announced the release of Mitchell Intelligent Vision, the industry’s first Extended Reality (XR) hands-free solution integrated into the collision repair workflow. Introduced last year as a proof of concept, the solution was featured at the company’s mPower Conference, a virtual event held Oct. 13-15, and shipping is expected before the end of the year. The Mitchell Intelligent Vision solution is designed to improve the speed, efficiency and accuracy of the collision repair workflow—from vehicle check in to check out. Mitchell collaborated with Qualcomm Technologies, Inc. and RealWear, Inc. on its delivery, leveraging the Qualcomm® Snapdragon™ Mobile XR Platform and the RealWear HMT-1 100% voice-controlled headset. “XR is transforming industries across the globe,” said Brian Vogelsang, senior director of product management, Qualcomm Technol-

ly ruggedized headset was designed for environments like collision repair facilities where technicians need to streamline operations and enable hands-free access to much-needed repair procedures,” said Sanjay Jhawar, co-founder and president, RealWear. The Mitchell Intelligent Vision solution allows technicians to automate the collection of data—including consumer and vehicle information—for faster vehicle check in. They can also use the solution to take time-stamped photos of the damage and automatically upload them to Mitchell’s Mitchell Intelligent Vision is the industry’s first Extended cloud-based ecosystem. Reality (XR) hands-free solution integrated into the Voice activation and an collision repair workflow. XR ﬁeld of vision provide quick access to critical collision repairers work—by help- OEM procedures during teardown ing them improve productivity, meet and repair, reducing research time. customer expectations and address Prior to check out, technicians can the challenges of today’s complex visually document the repair work automobiles with the new Mitchell with the Mitchell Intelligent Vision solution. Those images are then reIntelligent Vision solution.” “RealWear’s purpose-built, ful- tained in Mitchell’s software. ogies, Inc. “With our Snapdragon technology paired with Mitchell’s expertise in automotive repair, we are excited to help transform the way

The Mitchell Intelligent Vision solution will be available first to U.S. repair facilities. The company also expects to announce availability in Canada soon, having successfully completed pilot testing. “Mitchell is committed to delivering innovative, cloud-based solutions that streamline workflows and support proper, safe vehicle repair. With Mitchell Intelligent Vision, we’re again breaking new ground and taking a small but very significant step forward in bringing wearable technologies to the collision industry,” said Olivier Baudoux, senior vice president of global product strategy and artificial intelligence at Mitchell. “Through our open ecosystem and work with industry leaders like Qualcomm Technologies and RealWear, we’ll continue to advance the use of XR and XR-powered solutions to meet the needs of our customers and the market.” More information about the Mitchell Intelligent Vision solution can be found at https://www.mitchell.com/mitchell-intelligent-vision/ Source: Mitchell

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UTI’s Blended Training Model Leads to Employment for Graduates As the pandemic continues to deliver a colossal shock to the economy, with weekly unemployment claims increasing to 870,000 for the week ending Sept. 19 and topping an unprecedented 700,000 each week for more than six months, Universal Technical Institute’s pandemic response plan and blended training model are delivering results, with graduates finding employment across the nation. “In a time of extraordinary challenges, our students are completing their education and going to work,” said Jerome A. Grant, CEO. “The fact that there are good jobs waiting for our graduates speaks to industry’s urgent demand for skilled technicians and the quality of our industry-aligned education model.” The U.S. Department of Labor Bureau of Labor Statistics (BLS) estimated pre-pandemic there will be more than 110,000 job openings for automotive, diesel and collision repair technicians on average annually across the U.S. through 2028. In an economic downturn, people and businesses keep their vehicles longer and trained technicians remain in demand to maintain and service them.

To meet employer demand and support students in continuing their educations during the pandemic, UTI transitioned its on-campus, in-person training to a blended format, and has built and continues to enhance a model that blends online, instructor-delivered teaching and demonstrations with hands-on training in campus labs that meet health authority guidelines. The blended model prepares UTI students for high-tech careers, requiring hands-on and digital skills, and for upskilling on the job, as employers train on new technology online and virtually. Corey Vanderploeg was four weeks from graduation when the pandemic hit, and completed his training in UTI’s blended model, using a HEERF CARES Act emergency grant to help support himself and stay in school. He graduated from UTI-Avondale’s diesel program in June and immediately went to work as a technician with Pape Machinery in Portland, OR. “I’d spent the last five years working in dead-end jobs and, without UTI and the support I received, I’d probably be out of work altogether due to the pandemic,” Vander-

ploeg said. “There will always be a need for people who work on diesel trucks and equipment.” UTI’s manufacturer-specific advanced courses have also continued during the pandemic, with strong student outcomes. These programs train students who have completed their core program to work with a specific manufacturer’s vehicles and technology. Employers extend offers of employment to many of these students even before they graduate and, for some of these programs, manufacturer partners cover students’ tuition. After initially putting his love of German vehicles aside and working in construction, Davidson Ansick enrolled at UTI, completed core automotive training and was selected for the Porsche Technology Apprenticeship Program (PTAP.) He graduated from the program in the midst of the pandemic, crediting the instructors who supported him, and immediately went to work for Porsche of the Main Line in the Philadelphia area. “When I found out about the Porsche program and learned it was manufacturer paid and would almost guarantee a job after school, it was

COVID Boosts Digital Age for Auto Claims by Emmariah Holcomb, glassBYTEs.com Some auto glass members say having digital options for customers is needed and COVID-19 increased demand. The insurance claims side of the industry has offered customers options to file and check claim status

ic, many companies preferred that their employees work in the office.” According to Morgan, auto insurance companies were faced with changing its plans when local governments started issuing stay-athome orders. She noted there is an estimated 25% to 30% of work forc-

“The COVID-19 pandemic has accelerated the need for claims organizations to digitize and make other changes to appeal to the younger generation of workers,” — Rebecca Morgan reports online, and experts agree on its appeal. “The COVID-19 pandemic has accelerated the need for claims organizations to digitize and make other changes to appeal to the younger generation of workers,” said Rebecca Morgan, Mitchell International worker’s compensation solutions product management vice president. Mitchell International is the parent company of National Auto Glass Specifications (NAGS). “For example, prior to the COVID-19 pandem-

es that aim to continue having some of its staff work from home after the pandemic is over. “Companies had to accelerate multi-year plans that they had in place and boost technology and networks in order to successfully transition their employees to working from home,” she said. The industry will need to shift again when it comes to how auto related businesses recruit, train and retain employees, according to Morgan. She highlighted five changes

that companies should consider making, which included: • Having updated workplace technology • Recruiting future employees effectively • Emphasizing training or retraining employees • Developing employees • Retaining employees “In order to effectively attract, train, develop and retain employees from the younger generations, the insurance industry must update its workplace technology,” explains Morgan. “Our industry needs innovation and new technology in order to be more effective at meeting our business goals. Doubling the number of employees using the latest technology leads to an 11% increase in profitability for U.S. companies.” According to Morgan, the pandemic caused the industry to rely on technology to an even greater degree and has accelerated the industry’s need for innovation. We thank glassBYTEs.com for reprint permission.

an easy choice,” Ansick said. “Now I work for the best of the best.” Seth Werner, a graduate of the automotive program at UTI’s NASCAR Tech and this summer’s Volvo Service Automotive Factory Education (SAFE) program, now works as a technician for Parkway Volvo in Wilmington, NC. “I was under the assumption that as a new tech, I’d mostly be doing brake jobs and oil changes, but by day two, I was already working on more complex issues, including computer problems,” Werner said. “Studying online and in person was different, but it was definitely worth it.” Zachary Gaulin, who graduated from UTI’s Motorcycle Mechanics Institute (MMI) in Orlando and the Harley-Davidson program and is employed as a service technician at Big Moose Harley-Davidson in Maine said, “With the increases of people riding their bikes, we’re understaffed, but I am constantly energized by doing something I love, and I’m making good money as a young person right out of school.” For more information about UTI, visit www.uti.edu. Source: UTI

OEC Appoints New President and CEO OEConnection LLC (OEC), the leading technology provider to automotive original equipment manufacturers, has announced the appointment of Patrick C. Brown as its new president and CEO. Brown succeeds Chuck Rotuno, who was named executive chairman. These changes were effective immediately. Brown brings extensive experience running high-growth companies in the FinTech, InsurTech and automotive industries. Most recently, Brown served as president and CEO at Innovative Aftermarket Systems (IAS), a leading provider of technology and finance & insurance (F&I) solutions to the automotive industry. IAS is one of the largest F&I providers in the U.S., serving more than 6,000 dealerships across the country. Brown holds an MBA from the University of North Carolina at Charlotte and bachelor’s degrees in economics and finance from Wingate University. He also serves on the board of All Web Leads, Inc. Source: OEC

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Classic Honda Orlando

888-893-4984 407-521-1115

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

Coggin Deland Honda Deland

Clermont

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

Pompano Beach

954-425-8244

Marietta

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

800-733-2210 706-228-7040

Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com

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

Rick Case Honda

Honda Mall of Georgia

877-544-2249

678-318-3155

Davie

Buford/Gwinnett

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

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

South Motors Honda

Milton Martin Honda

888-418-3513 305-256-2240

770-534-0086 678-989-5473

Miami

Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

Gainesville

Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Honda of Newnan

GEORGIA

Newnan

Carey Paul Honda Snellville

770-985-1444

678-423-8183

Dept. Hours: M-F 7-6; Sat 7-4 samuel.trapani@henrickauto.com

Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com

Union City

Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

MISSISSIPPI

Patty Peck Honda Ridgeland

800-748-8676 601-957-3400

NO. CAROLINA

Apple Tree Honda 800-476-9411 828-684-4400

Crown Honda Southpoint Durham

855-893-8866 919-425-4711

Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Gastonia

Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

FLORIDA

GEORGIA

NO. CAROLINA

Acura of Orange Park

Rick Case Acura

Nalley Acura

Leith Acura

888-941-7278 904-777-1008

800-876-1150 954-377-7688

800-899-7278 770-422-3138

800-868-0082 919-657-0460

Jacksonville

Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com

Duval Acura Jacksonville

800-352-2872 904-725-1149

Dept. Hours: M-F 7-7; Sat 8-5 Cecil.adams@duvalacura.com

Fort Lauderdale

Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com GEORGIA

Marietta

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com NO. CAROLINA

Cary

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

Jackson Acura

Flow Acura

Karen Radley Acura

877-622-2871 678-259-9500

800-489-3534 336-761-3682

800-355-2818 703-550-0205

Roswell

Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com

Winston-Salem

Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

Woodbridge

Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com

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TENN

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

ACURA FLORIDA

Asheville

888-703-7109 704-824-8844 x 624

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

D fm

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

McKenney-Salinas Honda

800-758-0007 386-626-1811

SO. C

10/19/2020 4:19:39 PM

Dept.

NO. CAROLINA

-5 m

oint

-6

onda

VIRGINIA

Vann York Automall

Bill Gatton Honda

West Broad Honda

336-841-6200

800-868-4118 423-652-9545

800-446-0160 804-672-8811

High Point

Dept. Hours: M-F 7:30-6; Sat 8-3

-5

TENNESSEE

SO. CAROLINA

Bristol

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

Breakaway Honda

Wolfchase Honda

800-849-5056 864-234-6481

800-982-7290 901-255-3780

Greenville

Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Piedmont Honda Anderson

800-849-5057 864-375-2082

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

Richmond

Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

Bartlett

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

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

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

TENNESSEE

Airport Honda

Hall Honda

800-264-4721 865-970-7792

800-482-9606 757-431-4329

Alcoa

Virginia Beach

Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

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

Staunton

800-277-0598 540-213-9016

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

8-3 p.com

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Pricing Change Reﬂects the Absolute Need for Separate Charges for Scanning, Diagnostics I wanted to use my column this month to share with you a conversation I had recently with Jake Rodenroth of asTech. As many of you are aware, asTech recently announced some price changes for the remote scanning and diagnostic services they offer, and that’s something a lot of people have been asking me about. So I wanted to use this column to, first, provide some clarity on that, and separate the facts from the myths. Because I’ve been hearing some misinformation out there. But this isn’t really about asTech. I’m just using what they’re doing to make my second and more important point, something I’ve been preaching for years—includ—and that’s the absolute need for shops to separate out their scanning time and their diagnostic time. So let’s start with asTech’s change. I asked Jake to explain the new pricing model they rolled out. “I’m happy to explain it, but I also want to commend our company’s leadership for the research and consensus-building they did prior to making the change, and for the effort they’ve made to communicate and explain it,” Jake told me. “If you go to our website, astech.com, in the ‘resources’ section you can find a frequently asked questions document about the change, and they even established an email team, at pricing@ astech.com that can respond to any questions someone may have about the change.” The pricing change, Jake told me, was designed to make asTech’s services “competitive with other providers out there.” “When we started scanning vehicles for the collision industry, the bulk of the industry wasn’t scanning cars at all,” Jake said. “In the early days when I started with asTech, we were doing seven or eight cars a day. Now we’re well over 5,000. We hadn’t made a pricing change in four years, but decided it was the right thing to do. “Now, for vehicles where there

are no diagnostic issues—nothing the scan shows is out of whack, no steering angle sensor value that isn’t good or a seat weight sensor that is irregular—we made those scans $50. We broke up the service we do into pieces,” he continued. “The scan itself is $50. If it needs a technician or a service manual or a wiring diagram in order to figure out a possible fix, then we charge a $69.95 fee on top of that scanning charge. That brings it back to what our original pricing was, which was $119.95.” OK, I want to go on record as saying I, Mike Anderson, am absolutely, 100% in support of this. My agreement with this, however, is not because it makes asTech services competitive. The dollar figures are not my point or my concern. I support this change because it’s high time our industry separates scanning time from diagnostic time. This pricing model does that. Think about it: Diagnostic time varies. Just as judgement times varies based on the size of the damage, the accessibility to it and the substrate involved, diagnostic time varies. Isn’t the time it takes to research one diagnostic trouble code (DTC) different from researching five? And it’s not just looking up the DTC. You then have to navigate the OEM repair procedures, the flow chart, to determine what the most probable cause is. If there are four possible causes, it might be the first one you try, or the fourth one. All this takes time. I think asTech did the right thing here. But I don’t care if you use asTech, or another provider, or do it yourself in-house. What I care about, and the whole point of this article, is the need to separate out your diagnostic time from your scan time. I also think there’s another lesson for shops from the change asTech made to its pricing model. The scanning and diagnostic charges are somewhat higher for certain makes of vehicles, such as Porsche. I asked Jake why. “It comes down to the fact that

our cost of goods sold is just higher for those vehicles,” Jake told me. “It’s not only the higher expense of the scan tools, but the higher cost to attract a tech who specializes in running the tools for those European models. “The complexity of those vehicles also plays a role. From an R&D perspective, once we developed the software, we have to verify it, test the remote hook-up to the Porsche tool against a direct hook-up to the Porsche tool,” he siad. “That means obtaining both new and wrecked Porches to simulate what our customers will send us. We need to cover that cost. We’re not just throwing a higher number out because it’s an expensive car. There’s real merit to it.” That makes sense to me because it synchs up with what I’ve also preached to shops for years. You need to understand all the training

and equipment and other costs involved in earning an OEM certification, and price accordingly. I’m not focused here on whether the specifics of asTech’s pricing are good or bad, competitive or not competitive. I’m just in support of the change to separating out the scanning charge from the diagnostic charge. In my opinion, that’s a change that every shop, no matter who does that work on the vehicles they repair, needs to make.

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with Stacey Phillips

Techs of the Future

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

with Stacey Phillips

The Importance of Having a Broad Understanding of Vehicle Technology Up until recently, it was common working cooperatively.” practice for technicians to plug in a It’s not uncommon to have up dongle to the OBDII—onboard diag- to 43 networks in a car. These innostics—port to diagnose a vehicle. clude high priority systems, such as As modern cars have become in- steering, braking and airbag deploycreasingly computerized with sophis- ment, as well as lower priority ones ticated electronics, that is no longer such as adjusting the seat and radio the case, according to Scott McCor- control. mick, president of the Connective “I think we’re seeing an evoluVehicle Trade Association (CVTA.) tion in the relative importance of the “Take a Chevy Volt, for exam- technicians who are working on a car ple, that can change or update its that we really haven’t had before,” electronics over time,” said McCor- he said. “They are ones who are the mick. “That might sound great if agents of change, the ones who unyou want to upgrade the electronics derstand what is going on in a vehicle in two years, but you have to realize so they can lead their teams.” that the car is a system and changing McCormick is an accomplished one piece of software in it can create executive in the automotive and aeroissues.” space fields, focused in advanced If technicians aren’t familiar manufacturing, operations, strategy with the potential problems and restructuring. For the that could affect the vehicle, past 20 years, he has been a McCormick said, they will globally recognized expert most likely not be able to on vehicle communications. repair it properly. As a reHe has degrees in mathesult, it is becoming essential matics, mechanical and aerothey have a fundamental and space engineering; a master’s broad understanding of the Scott McCormick degree in business adminisissues at hand and the nectration; and doctoral research essary skills to address them when a in Artificial Intelligence. customer comes in experiencing difAfter spending the first 25 years ficulties. of his career working as a program “In the past, technicians, for the manager at General Electric, modmost part, had a familiarity with how ernizing aircraft and transportation, cars are built,” he said. “That will be- McCormick was the executive dicome increasingly important as more rector of the Automotive Multimedia electronics are being added to vehi- Interface Collaboration, a nonprofit cles.” research organization of the world’s Auto manufacturers are produc- largest automakers. ing cars with more than 100 million He established the Connected lines of code. In comparison, Mc- Vehicle Trade Association in 2005. Cormick said a Boeing Dreamliner The nonprofit organization facilitates has 4 million lines of code. the interaction and advances the in“Every level of automation we terests of the entities involved in the go up is going to add between one vehicle communication environment. and 200 million lines of code,” he Currently, there are 24 industry segexplained. “It’s not like Microsoft Of- ments involved, representing seven fice; it’s not one package.” countries. Instead, there are disparate packIn addition to being named the ages running simultaneously. commissioner for the East Lansing, “We’re now dealing with sys- MI, Transportation Commission, tems that were once standalone ob- for the last eight years McCormick jects—a device or computer board— has been appointed by Congress to something that went into the car,” advise the Secretary of Transportasaid McCormick. “It’s coming to the tion on matters relating to the study, point where all of these devices are development and implementation of

Intelligent Transportation Systems (ITS.) Throughout his career, McCormick has created a variety of instructional courses that help advance knowledge and understanding in the future of transportation.

Blockchain

In 2015, he was asked to develop a two-hour class for technicians coming out of trade schools and twoyear community colleges. The goal was to teach them about the changes taking place in automobiles today. In his current role as president of CVTA, McCormick launched

the Connected Vehicle Professional (CVP) credentialing program, in collaboration with The NEXT Education, in 2015. The comprehensive education and certification curriculum helps professionals build a specific skill set in the ITS community. The goal is to ensure individuals have the foundational understanding necessary to perform tasks involving connected vehicles and intelligent transportation. This includes in-vehicle safety, infrastructure, communication protocols and security. A series of three courses—focusing on Vehicle-to-Vehicle, Vehicle-to-Infrastructure and Vehicle-to-X connectivity—were designed for vehicle technicians, insurance professionals and others looking to enhance their knowledge in this growing sector. See Vehicle Technology, Page 53

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Your Online Presence Needs to be Refreshed in Pandemic Recovery by Gary Ledoux

holiday in 2018.

In last month’s article I discussed how, due to the COVID pandemic and having limited mobility, more people were conducting more business online. As this article is being written, more businesses are being opened and travel restrictions are easing, but many experts think the switch to greater e-commerce predicated by the pandemic will remain long afterwards. The “new” normal is a greater reliance on the internet to find and buy products and services. Based on my last article, I looked at about 50 random body shop websites and Facebook pages. I looked for some shop websites based on a Yelp listing and never found the shop’s own site! Here is what I learned.

Spelling counts: Remember when you were in third grade taking a test and you asked the teacher if spelling counted, and she said yes? Guess what. It still does.

Make sure all information is current: A couple sites showed information that was obviously old. Two noted—in August 2020—their shop was closed for the Christmas/New Year’s

Grammar counts: Correct grammar and proper syntax makes your message easier to read and understand, not to mention more professional-looking. Make it easy to navigate: What is important to your customer? Your shop name, location, phone number, email address, hours of operation, how to find the shop on Google Maps and services available should be prominently displayed and easy to find. Granted, other information is important, but if they can’t find the most basic information, nothing else matters. Make it easy to contact you: Make your phone number, email address or social media contact information

prominent on your site. When you receive an inquiry, be sure to answer promptly. Nothing says “we don’t care about you” quicker than an unreturned contact. If you have OE certifications, or other industry-recognized qualifications, list them: If you are certified by an OE, are I-CAR Gold Class or ASE Blue Seal, chances are you worked hard and spent time and money getting there. Why not promote it? Customers will be looking for it. Use contrasting colors for text: Make your site easy to read. White text on an almost all-white background is difficult to read. Black on white, or other contrasting colors, is preferred. Don’t promote what the average lay person doesn’t understand: You might have just spent a pile of money for the latest whiz-bang welder or other piece of equipment and you and others in the industry might think it’s really impressive. But to the

Start something special. Our dealership specializes in Honda Genuine parts. When you purchase parts from our dealership, you can rest assured that you are getting the highest quality parts from Honda parts professionals that know your vehicle.

average customer, meh. It’s enough to say you have the latest equipment to handle any repair needs. Use high-quality photos: Most people are very visual and photos are great. But make sure they are in-focus and not distorted. Promote your own people: While we are on the subject of photos, seeing a before and after photo of a vehicle you fixed is OK. But how about photos of your most valuable assets, and the thing that makes your shop unique—your people? Don’t confuse your customer: As far as potential customers are concerned, your shop exists to provide collision repair services and that’s what they are looking for. If you are involved in racing or some other extracurricular activity, and you want to mention it, great. But don’t let that coverage overwhelm your main message. Keep “social” in social media: So-

Coggin Deland Honda 2677 N. Volusia Avenue Orange City, FL 32763 Parts: Fax:

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36 NOVEMBER 2020 AUTOBODY NEWS / autobodynews.com

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cial media, especially Facebook, is meant to foster two-way communication. For the 2.4 billion people worldwide who use Facebook, nothing irks them more than to not be able to leave a comment, or to have their comments or posting threads removed. This is sure to repel any potential customers. Keep your social media fresh: Be sure to post new items regularly to keep people interested. Facebook pages that look “abandoned” are a major turn-off. Mark Claypool, AAM, founder and CEO of Optima Automotive, a leader in the automotive repair industry for web design, social media management and search engine optimization also offers the following: Many collision shop websites need to be refreshed: Many look old and dated and way behind the times Make sure you have a “mobile-friendly” site: According to BroadBandSearch, an internet consultancy, in 2009, less than 1% of those people

who had internet access used a mobile device, such as a phone or tablet. Today, 51.5% of internet users use a mobile device. Can your site be viewed on a phone? Make sure your message is clear: Let people know that you are an essential business and ready to serve your clients. Make it easy to do business with you: There are a lot of people online but not everyone is internet savvy. Make it easy for your potential customer to contact you, upload a photo or request an estimate. Drop-off and pick-up procedures: If you are still using social-distancing procedures, be sure to spell those out on your site. Make sure you rank high in an internet search: Go to Google and search for a collision shop in your town. If your shop is not coming up at the top—or worse yet, not coming up at all—you may need to do some search engine optimization so people can find you.

Dealership body shops need extra care: If your shop is part of a dealership, you should have your own web presence, not simply a sub-domain of the main dealership site. Being part of a dealership site makes it two to three times as hard for people to find you and makes it near impossible to compete with independent collision shops. If you are still wondering about the impact of the internet and how it is affecting your business, consider the following stats from BroadBandSearch: 61.4% of the world’s population uses the internet 89.4% of Americans have internet access and use it on a daily basis. There are 351.8 million registered domain names in the world. You need your customers to find just one—yours. The average time it takes a web page to load in the U.S. is 5.6 seconds. According to Google, the best performing sites take 3 seconds. Every second a user spends waiting for a site to open is an opportunity for them to click off the site. If your site

takes between six to 10 seconds to open, the customer is probably already gone. Facebook is the fourth most visited website in the world. Does your shop have a Facebook presence? Thinking of making a YouTube video? There are 1.8 billion unique monthly visitors to YouTube. 50% of internet users watch YouTube videos and product demos before buying anything. If you don’t have, at minimum, a website and Facebook page for your shop, you need one of each. And if you have one of each, make it a good one. Your future business depends on it.

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with Erica Schroeder

Industry Insight with John Yoswick

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

Two Shops Walk Away from Lawsuits Against Insurers

Shop Showcase

Two shops have ended lawsuits voluntarily dismissed its own lawfiled against insurers that had been suit against GEICO that alleged the transferred to a U.S. District Court insurer conspires with its direct rewith Ed Attanasio in Florida that has been overseeing pair shops to fix prices and boycott dozens of similar lawsuits. Leif’s. Professionals Autobody in Dun- Like Professionals’ lawsuits, cansville, PA, filed two lawsuits in Leif’s lawsuit had been filed in 2017, one naming Kemper Insurance 2017 and had been consolidated to and one naming multiple insurers, Presnell’s court in Florida. GEICO including State with Farm, Ed Allstate and filed a motion to dismiss the case in Attanasio USAA, alleging bad faith, breach of August, arguing the lawsuit failed to contract, unjust enrichment and tor- offer specific facts to support the altious interference for refusing to ful- legations. ly reimburse claimants for vehicle In voluntarily ending the lawrepairs. The lawsuits sought about suit in mid-September, Leif’s told $8 million combined. the court “current circumstances in The insurers made various ar- Portland (COVID-19, riots, unconwith Ed Attanasio guments calling for dismissal of the trolled forest fires) have negatively lawsuits. Kemper, for example, said impacted Leif’s business [and] as a Professionals already litigated its result, at present Leif’s Auto canclaims as a party in a similar law- not responsibly pursue its claims suit, brought by the Alliance of Au- against GEICO on the other side of tomotive Servicewith Providers of Penn- the country.” Ed Attanasio sylvania and other shops, that was Leif’s and GEICO are still indismissed by the same U.S. District volved in two other lawsuits. One is Court in Florida. a class action in which shop owner Professionals’ individual law- Leif Hansen is suing over GEICO’s suit, Kemper argued, was too vague, alleged refusal to pay for vehicle lacking the required “plain statement scanning for Hansen’s personal veof the claim showing the pleadhicle, which GEICO insured. withthat Stacey Phillips er is entitled to relief,” and failed to In the other lawsuit, GEICO conpoint to any action by Kemper that tends it should not have to do busi“unjustifiably interfered with iden- ness with Leif’s, despite Oregon’s tifiable contracts with identifiable law guaranteeing consumers the right vehicle owners [that] caused [Pro- to use their choice of shop, because doing so, GEICO says, subjects the fessionals] damage.” with Stacey Phillips GEICO also argued Profession- insurer’s employees to menacing and als’ lawsuit in which GEICO was other harassment by the shop. named should be dismissed because The lawsuit says Hansen and legal precedents show providing Leif’s “intentionally create an atmoservices unilaterally and then seek- sphere of fear and intimidation that ing compensation doesn’t qualify leads to adjusters’ inability to adewith Stacey Phillips one to claim unjust enrichment. quately perform their work.” It said The Hartford and Farmers ar- Hansen and other Leif’s employees gued the amounts alleged to involve routinely yell at adjusters, threaten them in the lawsuit failed to reach to have them arrested or to sue them the $75,000 threshold for federal ju- personally and carry around knives risdiction. and talk about guns. In both lawsuits, Professionals “In particular, at least one Leif’s with Stacey Phillips failed to meet the court deadline in employee has talked about ‘killing August to respond to the insurers’ mo- people,’ with the intention of frighttions for dismissal, so Judge Grego- ening the GEICO adjuster,” the lawry Presnell dismissed the lawsuits in suit states. mid-September. The company routinely obstructs That same week, Leif’s Auto adjusters’ access to inspect vehicles, Collision Centers in Portland, OR, GEICO claimed, through such means

Social Media for Shops

SEMA Show Goes On

as making adjusters wait for up to multiple hours to do so, or by refusing to tell the adjusters where a vehicle is located, forcing them to “wander around Leif’s premises, which are approximately 5 acres in size,” to find the car located among “hundreds” on the premises. GEICO adjusters “have experienced significant stress and emotional harm,” the lawsuit claims, and “at least one GEICO adjuster has refused to return to Leif’s premises for fear of physical injury or harm.” GEICO is seeking unspecified damages exceeding $75,000 for lost profits, damage to reputation and excessive labor costs “due to assignment of additional claims personnel.” Although Oregon law prohibits an insurer from refusing to do business with a particular shop chosen by an insured, GEICO is asking the

Media and Publicity for Shops

court to declare the insurer need not continue to do business with Leif’s, given that Oregon law also requires an employer do what is “reasonably necessary to protect the life, safety and health” of its employees. Leif’s argues nothing in Oregon’s anti-steering law “provides for any express exemption at all, let alone a specific exemption” like the one GEICO is seeking. GEICO doesn’t argue the law requiring it provide workplace safety for its employees is “inherently incompatible” with the anti-steering law, Leif’s argues, because GEICO appears to have no concern about sending its staff into shops other than Leif’s. If that’s the case, Leif’s argues, GEICO should instead seek an order halting “the violating behavior” it alleges is happening at Leif’s, rather than seeking “a judicial revision of the anti-steering law.”

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with Ed Attanasio

SEMA Show Goes On

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

with Ed Attanasio

Online and Just in Time: SEMA 2020 Becomes SEMA360

and innovations to a world-wide auMedia and Publicity for Shops dience, according to a SEMA press

You can put your gambling mo- merce marketplace, new products, ney back in your pocket and take a vehicle builds and education for withyou Edwon’t Attanasio deep breath because have the automotive specialty equipment to rush around trying to find hotel industry,” SEMA360 is breaking ground and changing the trade show rooms and flights again this year. SEMA 2020 changed to industry through innovation. SEMA360 on Aug. 5, when SEMA360 will feature a simplified platform for mait was announced COnufacturers to showcase their VID-19 and concerns over with Stacey Phillips new products and innovatithe availability of facilities ons, as well as efficient interand services would make an action between manufactuin-person show impossible. rers and resellers for quality Instead of logging countless miles walking SEMA’s Vice President business exchange. of Events Tom In addition, SEMA vethroughout the Las Vegas Gattuso and his with Phillips hicle reveals from worldConvention Center andStacey putteam tried to make ting in 15- to 20-hour days, SEMA 2020 happen, class builders will take place SEMA360—Nov. 2-6—will but when it looked virtually; industry-leading impossible, they education focused on proallow you to participate in the annual show, but from started developing fessional development and a 100% new strategies will be more the comfort of your office or SEMA360, virtual trade show robust than ever. living room. with Stacey Phillips And as always, SEMA’s media Touted as a “100% online tradeonly event that focuses on an ecom- contacts will report news, products

Shop Strategies

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release. SEMA has survived through the Great Recession of 2008, the shooting at the Mandalay in 2013 and 9/11, but this was all-new territory for SEMA’s Vice President of Events Tom Gattuso and his team. Even while the COVID-19 pandemic stretched into late July, the people at SEMA were still hopeful they could pull off the show for its 53rd consecutive year. But when major companies opted out and the reality began to set in, Gattuso started looking at Plan B, and the result is SEMA360, an unprecedented completely virtual trade show. Gattuso has been with SEMA for nearly two decades, but these are uncharted waters for even an industry veteran. He knew if the show

My SEMA with Stacey Phillips

Shop Strategies with Victoria Antonelli

Product Innovation with Ed Attanasio

OE Shop Certification

couldn’t happen the same way it has since 1967, there was a viable alternative, but they would have to move quickly. “We knew that with 90 days left, we had to make hard decisions,” he said. “We looked at several approaches and even considered holding it completely outdoors. With health and safety as a top priority, we studied several preventive measures to minimize risks for all those at the event, including required use of face coverings, addition of hand sanitizing stations, increased cleaning, one-way aisles and more. But in the end, it wasn’t going to happen, so we began pursuing Plan B.” Gattuso knew that without SEMA, it would leave a void in the automotive industry that couldn’t be filled easily. “Our role has always been to represent our membership the best

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way we can and help them to succeed in their businesses,” he said. “The SEMA show benefits the industry at large, and holding it every year in the fourth quarter is a major deal for body shops. They can stay ahead of trends and acquire new technology that can help them for the next three to five years and even longer. “So, that’s why we came up with SEMA360 where attendees and exhibitors can do almost all of the same things they could at the actual show. SEMA360 addresses that need by leveraging SEMA’s exclusive buyer database to connect manufacturers with resellers. “We are comfortable where we are with this new digital component,” Gattuso said. “Much of the work we’re doing now will be in place for many years to come and will continually bring value to the whole SEMA experience. We’re investing in our future and seeing some positive signs as a result. We will have many of the majors participating at SEMA360 and although our goals are modest, we are very pleased with the industry’s reaction to date.” The SEMA360 Education Pro-

gram will still feature more than 30 professional development seminars and candid conversations with industry-leading celebrities and personalities. Attendees will be able to sign up for an unlimited number of seminars at no additional cost, when registering to participate in SEMA360.

SEMA Senior Manager of Professional Development Gary Vigil said while circumstances will prevent in-person educational sessions, SEMA remains committed to helping our industry members succeed and prosper. “Each educational session in SEMA360 was carefully crafted to help attendees make smarter business decisions, and offers the exciting opportunity to hear stories and advice from a diverse collection of highly successful, entrepreneurial leaders.” Unlike the SEMA Show, where vehicle space is limited and vehic-

le applications must be submitted by a participating manufacturer, the SEMA360 Builder Showcase will enable vehicle builders the opportunity to enter vehicles directly into the program. “We’re excited to open up the SEMA360 Builder Showcase to all the talented builders across our industry,” Gattuso said. “We wanted to put a spotlight on the trends and innovation that go into these vehicle builds every year while highlighting the people who bring the creations to life. This is truly a worldwide platform to show off the passion and creativity SEMA Week has become known for. The support we have had for SEMA360 has been tremendous, and we can’t wait to see what this new Showcase feature will bring.” SEMA360 recently published a list of things to do during SEMA360 to get the most out of this completely virtual online event. “Get your workspace ready for five days focused on new products and feature vehicles. Make sure you have a reliable computer. Prepare a spot on your hard drive to download brochures and sell sheets from

manufacturers. Check your internet connection. Have a camera, microphone and speakers on your computer so you can participate in optional video chats. Consider getting blue light glasses to ease the strain on your eyes. A comfortable chair will make the experience much more enjoyable. Have a plan. Remember to schedule breaks when you get up and walk around and stretch your hands and fingers. Also, block times on your calendar to participate in the seminars you don’t want to miss, and for browsing the New Products Showcase, Builder Showcase and Manufacturer Showcase pages.” No name badges, no Cirque de Soleil shows, no monster buffets and no industry cocktail parties until next year—hopefully. Say goodbye to SEMA 2020 and hello to SEMA360.

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Beth Rutter Shares Sneak Peek of Pilot Program at I-CAR Virtual Meeting by Chasidy Rae Sisk

Four guest speakers attended the St. Louis I-CAR Committee’s September virtual meeting, including collision repair industry professional Beth Rutter, who spoke about the Pilot Program. Rutter agreed to share some additional information with Autobody News. The Pilot Program originated three years ago at Ranken Tech, where Collision Director John Helterbrand designed an apprenticeship program to ensure collision students are prepared to successfully enter their career after graduation. Students work with mentors at local shops, obtaining hands-on repair experience in conjunction with classroom education, as tasks begin with the most mundane and progressively advance along with the student’s knowledge and skills. “Students rotate between eight weeks in the classroom, followed by eight weeks at a shop where they implement the techniques they just learned,” Rutter explained.

After safety, process is the sec- “Some graduates can be hired ond most important thing that schools right out of school because they’ve teach collision repair students. obtained the knowledge they need “An educator without a text- to start in a shop; others aren’t even book can’t do much, but if you close—collision repair curriculum can take it home, you can do a lot isn’t consistent across all colleges, of work on that,” Helterbrand said. and we are working to address that.” “We [must] maintain a high level of The mission of the National educator for students. Our Pilot Program is “to be the catalyst in the development program is a little harder of national ‘school-to-work’ in the sense that we make collision educational prothe students focus on themgrams at the post-secondary selves, but we make them level by bringing the collilifelong learners. So, it’s all sion industry and colleges about taking care of the student.” Beth Rutter recently together in a collaborative A currently-silent in- spoke about the Pilot partnership that not only industry partner recognized Program at the St. creases the number of qualthe value of Ranken’s Pilot Louis I-CAR Com- ified technicians available mittee’s September to the industry but allows Program and proposed exvirtual meeting. students to be mentored in panding it nationally. “We need more than just a cur- a supportive environment that imriculum to address the issue of our proves the image of technicians and fractured industry,” Rutter empha- the collision industry as a whole.” sized. “Recognizing that entry-level With decades’ worth of collitechs need a basic level of knowl- sion repair industry experience, Rutedge in order to be trainable and ter got involved with the program to hirable, we decided to start with the communicate with the shops and the colleges. schools.

FORD

“We have to get the shops’ buyin for mentoring the students, and then the colleges have to agree to implement the curriculum we’ve developed, which is ASE-accredited,” she said. “There’s a lot of benefits for the schools, though. They receive a lot of support and an I-CAR curriculum, plus by the time the student finishes the program, they are Pro-Level 3 and able to obtain their welding certification as soon as they test.” Four colleges are currently participating, though three will not have seated classes until January 2021 due to COVID-related concerns. Students at Ranken Tech and at the College of Lake County in Illinois are currently learning in the classroom and interviewing with local shops that meet the program’s criteria. Mentoring shops must be I-CAR Gold Certified, use updated tools and equipment and have a mentor who can “take students under their wings,” Rutter said. The current mentor shops include several large MSOs as well See Beth Rutter, Page 52

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with Victoria Antonelli

Product Innovation

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

with Ed Attanasio

Killer Tools Attacks Pandemic with Mr. Fogger During the pandemic, some com- use against SARS-CoV2, the virus panies have succeeded while others that causes COVID-19. have paused or closed their doors When the pandemic hit in March, completely. Those can Ledoux pivot Trueit gave his crew two weeks off, withwho Gary have been able to not only survive, but but then came up with his idea for Mr. thrive during these uncertain times. Fogger, and all of his nine employees Such is the case with Killer came back to work in order to make Tools in Orangevale, CA, and its ow- and distribute it. ner and inventor, Gerry Trueit, 72. “We wanted to create tools that Trueit’s company has concei- would enable technicians to sanived and designed moreStacey than 50 protize cars thoroughly so that shops with Phillips ducts, and estimates at least one or wouldn’t have to worry about the two are being used in every body health of their employees and custoshop in North America right now. mers,” Trueit said. “Insurance companies are allotting 60 to 90 minutes to sanitize these cars, so this has become the new normal way and will with Mike Anderson likely continue long after this thing passes.” More than two decades ago, Trueit discovered a pneumatic door skin tool, and that’s when the story began. He bought a motor home, and with his wife and Killer Tools was founded by Gerry Trueit, far left, almost his dog, they hit the road to 20 years ago to create tools and equipment that make visit as many body shops as collision repairs easier and more efficient they could. When Trueit saw a definite need “We sold so many that we were for a tool that would help the colli- forced to get off the road so that we sion repair industry as the pandemic could focus on manufacturing them,” continued, he and his team develo- Trueit said. ped a system to accommodate both “We chose the name Killer Tools body shops and their insurance part- because I would show up in a colliners. sion shop and people would tell me With a pivot move that even LeBron James would be proud of, Killer Tools developed a machine that generates ozone to completely disinfect interiors of vehicles before and after repairs. Offered in 110V and 12V, they have become top sellers. Most recently, Killer Tools also unveiled a cordless sanitizing tool named Mr. Fogger, so technicians Shortly after the pandemic hit, Killer Tools unveiled a cordless sanitizing tool, Mr. Fogger, or car detailers can sanitize touchposo that technicians or car detailers can sanitize ints and vehicle interiors more quitouchpoints and vehicle interiors more quickly ckly and efficiently using the least and efficiently amount of disinfectant. Killer Tools sells Bioesque Bo- that I always had the ‘killer’ tools,” tanical Disinfectant Solution, which Trueit said. “So, we adopted the uses thymol, an all-natural antimi- name and incorporated. Since we becrobial agent derived from the thy- gan back in 2002, we have sold more me plant, registered by the EPA for than 50,000 of these tools, and they

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keep rolling off the shelves because they work and make technicians› lives easier.” Killer Tools is now a household name in the world of collision repair, with products like The Dent Killer, a

Product Innovation

From the Desk of Mike Anderson self-leveling door lift, the family of Shark welders, Cordless Tool Garage, the Painter’s Helper and the largest variety of tram gauges in the industry. Killer Tools sells its tools through

more than 10,000 distributors worldwide. The main question Trueit asks before developing any tool is if will it be used by the industry enough to make it worthwhile. That’s why he and his team are always soliciting feedback on any tool or piece of equipment they release to the world of collision. He works closely with a skilled management team, consisting of his General Manager Mario Harders—formerly with DentFix—and a fellow tool inventor and former body man, Tim Gerhards. “We sit down and determine if there are a definite need and a viable market for any tool we decide to pursue,” Trueit said. “You can make something that works well, but if it’s not accepted by the industry, it will just sit on shelves.” See Killer Tools, Page 49

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OEC Acquisition of NuGen IT Will Further Assist Collision Repairers to Meet Requirements of Insurers, OEMs & Customers by Autobody News contributor Autobody News recently talked with Pete Tagliapietra, founder and president of NuGen IT, about the company’s acquisition by OEConnection (OEC) in July and what it means for the collision repair industry. OEC, established in 2000, is a leading parts fulfillment software solution provider for OEM distribution networks.

As a result of the OEC acquisition of NuGen IT, Tagliapietra said the companies are working together to deliver a combined technology platform that will not only facilitate a substantive step forward in refining the collision repair industry, but will also drive higher levels of efficiency over what is available in the market today. “As much as DRPs impacted the way collision repairers process damaged vehicles since the early 1990s, it is inevitable that technology and OEM-certified repair networks will impact this long-standing model,” said Tagliapietra. “The industry is moving toward a model in which OEMs will have significantly more influence on where and how to repair vehicles.” The discussion led to further questions.

How did your experience working in three different market segments lead you to establish NuGen IT?

I began working in the collision repair industry at a young age doing all the tasks technicians didn’t want to do at a collision repair facility. After completing my higher education, I spent 10 years in automotive retail, specifically in collision repair management, and then had a decade of auto claims experience working for two different insurance companies. Following that, I worked for a collision repair

database and estimating system information provider for 15 years. Looking back, I realize how fortunate I am to have worked in these three market segments of our industry. My experience has given me a good perspective on how to create balance and minimize friction among those segments. In the late 1980s, I met Dayle Phillips, who became my business partner at NuGen IT. Dayle, who was employed at a leading-edge software development company, often collaborated with me to discuss possible technology solutions to an auto claims or collision repair problem. We found our skills complemented one another. I’ve never met anybody like Dayle who understands a business issue and can come up with a solution that applies technology and enhances the process significantly, eliminating the amount of human task associated with it. After 35 years of experience in the industry, I felt it would be an ideal time to start my own business in 2004. As a result, I established NuGen IT and Dayle joined the company in January of 2006. It has been an incredible run since then.

What was the primary focus of NuGen IT and how has the company grown?

From the onset, the goal was to leverage the CIECA (Collision Industry Electronic Commerce Association) Standards the collision industry embraced. The strategy was, and has been, to offer open solution platforms to the insurance and collision repair communities. Limiting the proprietary software environment with the exchange of information between insurers and collision repairers was having a positive impact on the industry. We set out to create an open environment that would alleviate estimating system mandates for insurance companies, allowing collision repairers to select and license the estimating system that provides the best outcome for both parties. Over the years, NuGen IT con-

tinuously reinvested into research other formatted document. Hence, and development. We typically look an insurance appraiser or body shop at where gaps exist in the process service manager knows when the esfor collision repairers and insurers. timate is not in compliance with the Then, we identify accuracy, efficien- database, external or internal policies, cy and productivity issues, as well and procedures or regulatory requireas technology to further refine the ments. process in various end-user The technology is compatworkflows. ible with any estimating sys We rely heavily on our tem and almost any formatted business-rules-driven comtemplate. As a result, collision pliance technology to acrepairers use one compliance tool rather than purchasing complish this through the multiple tools to meet their products we develop. I believe this, along with other Pete Tagliapietra needs and requirements of their insurance company parttechnologies—such as our ability to accurately transform a PDF ners. of an estimate back into the CIECA NuGen IT’s product offerings inLegacy EMS (Estimate Management corporate robotics automation whenSystem) or BMS (Business Message ever possible. Software robots can Suite) data formats—helped set our perform the analysis function on behalf of the user, so the correct outcome is company apart from competitors. Our product offering also heav- delivered the same way every time, ily focuses on Business Process creating accuracy, uniformity and conCompliance. Business Process Com- sistency. pliance utilizes computer software to The nice thing about robotics analyze an estimate or just about any automation and software intelligence,

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commonly referred to today as machine learning, is computers can “perform an outcome” the same way every time based on the input of many different variables. Initially, we developed our products primarily for insurance companies and giving them open network capabilities to deliver an assignment directly to a network or non-network repair facility. As long as a collision facility had an internet connection and a computer, they could receive an assignment and then import the administrative data into their system(s). As our company evolved, we believed collision repairers were at a disadvantage. Auto claim process applications for insurance companies were plentiful, and we saw an opportunity to provide software applications to collision repairers that could significantly alleviate the administrative burden they are faced with. Today, our application services are offered equally to both of these market segments.

How have NuGen IT’s product offerings evolved for col-

lision repairers?

On the collision repair side, we understood the great need for products to help repairers meet their internal needs, insurance and regulatory requirements. As a result, we started offering “hybrid solutions” to collision repair organizations. For example, we developed a strategic partnership with ALLDATA about eight years ago and devel-

presented the concept of Self-Management to a leading insurance company, which resulted in a pilot project with two major MSOs. The concept led to a new way of capturing and analyzing shop performance and measurement. Our compliance technology allows our collision repair customers to optimize an estimate before submitting it to the insurance company. Estimate optimization ensures it is

“The industry is moving toward a model in which OEMs will have significantly more influence on where and how to repair vehicles.” — Pete Tagliapietra oped Estimate Integration. The goal was to proactively deliver OEM repair procedures to collision repairers regardless of the estimating system or manufacturer. Shops could analyze and audit estimates to ensure they were incorporating the required repair procedures before submitting them to insurance companies. We also pioneered the concept of DRP (Direct Repair Program) Self-Management. Around 2010, we

accurate as possible and meets the insurance company’s policies as well as identifies overlooked labor operations that could end up in a supplement request. It can be a daunting task for a service advisor at a collision repair facility to keep track of various DRP policy procedures for multiple DRP programs, and our goal is to help them streamline the task by fully automating the process, thus eliminat-

ing the time trying to be compliant.

How have NuGen IT’s prodCan you share information about the recent acquisition by OEC?

After our two companies learned more about each other, we realized the possibilities of how combining our technologies could bring a lot more value to the market segments we serve, particularly with collision repairers. That really excited us. We felt this was an excellent opportunity to take repair blueprinting to a new dimension. Today’s collision repairers must refer to multiple information providers to get all the information needed to process an insurance claim. For example, once collision repairers receive the assignment from an insurance company through an information provider, they have to write the estimate, conduct the part search, work with a rental car company, report vehicle status and comply with Customer Service Index (CSI). This all falls into the issue of scorecarding, which the industry highly utilizes.

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By combining our companies and allowing each to do what it does best, it’s ultimately going to address the issues facing collision repairers, now and in the future.

How have NuGen IT’s prodHow is the industry changing and what should shops be aware of?

As one of the people in the industry who has worked in all three segments—collision repair, insurance and information provider—I believe my experience has taught me there can’t be just one dominant force driving the industry. In the past, this has been insurance companies. The insurance industry has been a driver to how the collision repair industry operates, particularly its involvement in processing an auto claim. I see a paradigm shift occurring where we need to recognize how the three market segments need to work together. It will be not easy to accomplish and will take time, but it has to happen. We’re already seeing manufacturers develop strategic relationships with major insurers.

Insurance companies will need to collaborate with OEMs and collision repairers to ensure there is more than a satisfied customer, going beyond what it is today. What we’ve done for the last 20 years is not good enough anymore. It’s my opinion that manufacturers are becoming increasingly concerned about protecting their brand, knowing when a car gets damaged, there is just as much technology and software to deal with along with the body and any mechanical repair. Collision repairers are now required to be collision repair experts, mechanical repair experts and system technology experts. Otherwise, they need to outsource some services to complete the repair. OEC and NuGen IT will further assist collision repairers to meet the requirements of their insurance partners, ensure to OEMs the vehicle is being repaired correctly, meet internal business objectives and better serve mutual customers. Looking ahead, our goal is to also help OEMs better manage their certified repair networks and provide collision repairers, insurance

companies and manufacturers the data. This will be critical in the future. In the last 10 years, I have continued to emphasize to our employees that it’s all about the data. I believe software will continue to diminish in value/price and the value of the data will continue to increase. I am convinced data is the “newfound gold” in the collision repair industry and am dumbfounded by collision repairers freely giving it away and allow others to profit from it. I am extremely proud of what the NuGen IT team has accomplished and couldn’t be more excited about this next step in our evolution. OEC has a tremendous and successful track record of delivering solutions for automobile dealers, collision repairers and OEMs, and I look forward to what this will mean for our collective customer base and parent company.

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Continued from Page 44

Killer Tools In many cases, Trueit has been able to find great ideas from body technicians that eventually lead to inventions being used today. “We have built a reputation for being a company where if you have a concept and we think it will work, we’re not afraid to pursue it,” Trueit said. “They conceive it, and we test it and then manufacture it and sell it. One technician who came up with a great idea for a tool has made more than $300,000 within the last decade. “Technicians are not afraid to think outside of the box, and most of the tools we sell were designed in order to complete a task,” he said.. “That is why I like being a part of this industry. Knowing that many of our tools are in shops is very satisfying.” Trueit prides himself on making tools that will last and withstand heavy use, he said. “We use attention to detail and stress things like quality and safety. I have had to reject several ideas beSee Killer Tools, Page 53

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with Victoria Antonelli

Product Innovation

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

with Ed Attanasio

BAR Auto Shop Locator Educates and Empowers California Consumers About 10 years ago, I wrote an artic- Google, the BAR’s Shop Locator is a le about the Bureau of Automotive “more convenient way to find shops”, Repair (BAR), an organization eve- according to Clay Leek, who overry body shop inwith California more sees BAR’s smog check, engineering GaryisLedoux than familiar with, but the general and information services division. “We have enhanced this feature public doesn’t even know what the acronym means. with a new interactive map, a series Most people encounter the BAR of filters and a mobile app, so that when their cars are smog checked, or consumers can access this informathey see a plaque on a wall in a wai- tion anywhere, all the time,” Leek ting room at a body shop. said. “People can search for locations with Stacey Phillips I used some of my near their address, their city or their ZIP code, and then friends and other people the Shop Locator tells the back then to find out what user their proximity to the they knew about the BAR. shop. Only six out of the 30 peop“At the same time, people le I talked to knew what the can make sure that the shop BAR was and what it does. with Mike Anderson I also got some pecu- Clay Leek, head of is licensed by BAR. This liar responses to my query, BAR’s smog check, allays peoples’ fears and giengineering and including “It’s law-related, ves them an additional layinformation services right?” and “Is it a bartender division, worked with er of comfort knowing that union?” they’re taking their vehicle a team to develop BAR’s new Auto to a licensed business that Now in 2020, consuShop Locator to is in good standing with the mers are savvier about their cars, and that includes kno- educate and protect BAR.” consumers For example, I chose the wing about the BAR and its role in the automotive repair indus- Automotive Repair filter, followed try in California. By working hard to by the Auto Body filter. I then teseducate the public about what they ted the locator and quickly found a do and how they can protect con- sample of the 50 body shops closest sumers, the BAR has significantly to me, one of which was on probaenhanced its communications and tion with the BAR. To eliminate any marketing, including its website at ambiguity, the listing of the shop is www.bar.ca.gov. surrounded by a big red border with BAR’s website offers an Auto the word “Probation” listed clearly Shop Locator, a convenient and fast within the listing. way for consumers to find a licensed To get feedback from the collisiautomotive repair facility nearest to on repair industry, Leek and his team them. received input from a wide range of Originally it was designed to lo- automotive industry representatives cate Smog Check stations, but now it and body shops during their develophas been expanded to include all li- ment stage. censed auto repair businesses, inclu- The BAR registers and regulates ding body shops, mechanical repair 36,000-plus California automotive shops, air conditioning, parts retai- repair dealers and mediates automolers, auto dismantlers, glass winds- tive repair complaints, saving Calihield and mobile mechanics. fornia consumers millions of dollars The Auto Shop Locator also each year in the form of direct reallows users to obtain two other pie- funds, rework and bill adjustments, ces of invaluable information—the for example. shop’s BAR license number and The BAR is one of 37 organizawhether or not it’s on probation or tions under the umbrella of the Dethe subject of a pending enforce- partment of Consumer Affairs. BAR ment action by BAR. was established within DCA in 1972 Rather than using MapQuest or following enactment of the Automo-

OE Shop Certification

Product Innovation

tive Repair Act. In response to consumer and industry concerns about fraud and incompetence in the auto repair industry, the act established BAR as the licensing and regulating authority over automotive repair dealers. The act also gave BAR authority to license and regulate stations and individuals that perform services in the areas of lamp and brake inspection and repair. In 1982, California became the 20th state in the nation to adopt a vehicle inspection and maintenance (smog check) program. Pursuant to authority granted by SB 33, BAR became the administrator of the California Smog Check Program in 1984. For more than 40 years, BAR has helped to protect California consumers from its headquarters in Rancho Cordova and 12 field offices stationed throughout the state. The

organization serves many functions and administers various programs aimed at protecting Californians. Leek is happy with the finished product and invites shop owners and managers to make sure their shop is properly listed on the Auto Shop Locator. “I think they will like it for its simplicity and functionality,” he said. “We are really excited because by using it, consumers can stay informed and make educated decisions within a competitive automotive repair marketplace.”

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Continued from Page 43

Beth Rutter as a handful of independent collision repair facilities. “Once they qualify, the shop presents to the students and interviews them, so the student is hired before the first eight-week rotation ends,” Rutter said. “In the next rotation, students will work in shops on the things they are now learning and report back to their instructors, who also make visits to the shop to check on their students’ progress. “Working in the shop allows young students ease into the workplace, building work ethic which can be tough to learn. Collision repair requires learning so much that, even if it’s your passion, it’s still very stressful. This program allows the students to leave that stressful situation after eight weeks and return to school to discuss their experiences with their peers and instructors.” Working as an independent consultant with the program, Rutter’s role includes easing the students’ transition from the class to shop ro-

tation, and last year, she developed and led a one-day workshop for mentors and mentees to learn effective communication. She is currently building online training for this year’s virtual world. As with any aspect of the collision repair industry, obstacles must be overcome as the Pilot Program gains speed. “It’s a lot of work,” Rutter said. “We have to implement a brand-new curriculum, and the rules for doing that vary by state. In order to be ASE-accredited, the college is required to hold advisory committee meetings, and that means getting the industry involved. “We’re kind of building a bridge as we’re walking across it, but once the colleges build relationships with their local collision repair industry, I believe it will take on a momentum of its own.” Depending on how the school lays out its curriculum, the program can take up to two years, but by graduation, the student has a degree and real-world experience. For participating collision repair facilities, “it’s like a two-year

interview where the student, subject to normal employment parameters, becomes inculcated into the shop’s culture over that time,” Rutter said. “Students get the benefit of going to a college that provides a robust education, which helps them get hired.” Retention is another goal of the program. Nearly half of the students who graduate collision repair programs leave the industry within two years, according to Rutter. “With an industry that needs qualified techs so badly, we can’t afford to lose the ones we have because it’s too difficult to find a job,” she said. “We need to take care of our people, treat them well, and that starts by training these students, so they have the knowledge and ability to get hired in entry-level positions. “Then, the facilities must treat them well enough that they want to stay. If everyone does their part, it works for the entire industry.” Those interested in obtaining more information about the Pilot Program can email Beth Rutter at bethinca@cox.net. “Beth talked about her role in helping to build a mentorship pro-

gram that supports entry-level technicians in the workforce, while they earn their degrees at college,” said St. Louis I-CAR Committee Chair Shelly Jones. “Beth talked of the importance of information sharing between a school, student and collision repair shop, and how she created a workshop to develop strong communications between the mentor and mentee.” Three additional guest speakers attended the St. Louis I-CAR Committee meeting. Rob Ferguson, ASE Education Foundation, briefly discussed the benefits of schools being accredited by the ASE Foundation. Robbie Saladino, I-CAR principal, business development southcentral region, spoke about virtual live classes and shared a progress update on the committee’s goals. “We have just three goals left to complete out of nine,” Jones said. “It has been a team effort.” Brandon Eckenrode of the Collision Repair Education Foundation shared information about the upcoming virtual golf fundraiser, which will be open Nov. 20 through

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Dec. 20. Golfers can begin practicing at WGT.com or by downloading the free “WGT Golf” app. “During registration, people will have the option to play in support of the St. Louis Committee. When they pick our committee, a portion of the $25 registration fee will go to support our local school collision programs,” Jones said. “Overall, the meeting was well-attended, and there were a lot of great discussions.” The St. Louis I-CAR Committee’s last meeting of 2020 will be held virtually at 8 a.m. Nov. 12. Additional information about the St. Louis I-CAR Committee and its upcoming activities can be found at facebook.com/ICARSt LouisCommittee.

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Vehicle Technology The blended learning approach combines online education through the NEXT Education’s platform as well as two half-day instructor-led online classroom sessions. Those who complete courses earn the Connected Vehicle Trade Association Certificate of Competency. McCormick has also worked closely with Elaina Farnsworth, CEO of The NEXT Education, to create courses for technicians and installers to teach them about the equipment that will be included in the cars of the future. Both McCormick and Farnsworth participated in the recent TU-Automotive Detroit 2020 conference, which focused on future automotive trends, including autonomous vehicles, electrification and digital services. McCormick said one of the most critical future advancements is related to blockchain. “Blockchain is basically a mathematical structure for storing data,” explained McCormick. “Everything

in blockchain is connected.” For example, a collision repair shop could log all of the repair work and use blockchain to locate a part for the specific model of vehicle in one place, and the information would be accessible to other segments of the industry. He used the example of a shop trying to locate a part for a 5-yearold vehicle. Using blockchain, “You could locate that part almost instantaneously,” he explained. “Anytime you can reduce the amount of time you are doing something, you become more efficient and effective; therefore, more profitable.” Blockchain could also be used to ensure valid parts are being used on a vehicle. McCormick highly recommends educating technicians on the use of this technology to ensure they are trained properly. “It’s a tremendously new skillset and people who have this understanding are going to be in the highest demand,” he said. For more information, email Scott McCormick at sjm@connectedvehicle .org.

Continued from Page 49

Killer Tools cause I thought that the tools would be too dangerous. As a result, all of our tools last. “We are here to repair anything we make. Our phone does not ring and I’m usually the one to answer it, which is a good thing. I tell my people that if the phone isn’t ringing, that means we are doing a good job.” The King of Killer Tools—or Head Shark—still loves what he’s doing and isn’t thinking about retiring any time soon. “We have created a niche for us by taking people’s ideas and making them happen,” Trueit said. “If we can come up with a new tool and sell it for the right price—we already have a customer base waiting to buy it.” Sounds like a killer situation.

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Audi dealers strive to make you an Audi Genuine Parts fan. autobodynews.com / NOVEMBER 2020 AUTOBODY NEWS 53

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Why Dealers Are Now ‘Exercising Caution’ by Auto Remarketing Staff

Dealerships sold millions of used vehicles during the summertime, including a four-month stretch of yearover-year sales gains. However, Black Book isn’t necessarily seeing buyers and managers rushing to replenish store inventory. According to their newest “COVID-19 Market Insights” released Oct. 13, analysts highlighted a typical autumn wholesale price cooldown, explaining those softer prices aren’t always bringing the hammer down to send vehicles onto transport trucks bound for stores. “Retail demand has softened, but dealers are still in need of inventory after the strong summer sales. However, they are exercising caution in purchasing high-priced inventory,” Black Book said in the latest report. “Instead, they are being very selective with their purchasing decisions. “Lower-mileage used vehicles continue to be good substitutes for the models that still lack in new supply, like full-size trucks that have days’ supply well under 30 days,”

analysts added. Speaking of those full-size trucks, analysts noticed prices for those units finally dipped after 19 weeks of increases. Full-size truck values dipped by 0.18%. Triggered in part by that movement, Black Book’s volume-weighted data showed overall truck segment values—including pickups, SUVs and vans—declined by 0.34% last week, nearly doubling the previous week’s drop of 0.19%. Analysts mentioned that both mainstream and luxury subcompact crossovers continue to experience heavy value declines as they plummeted by 1.13% and 0.98%, respectively. Black Book also pointed out that new-model inventory levels of full-size crossovers and SUVs continue to be low too, “so depreciations are remaining fairly stable.” Those units edged down by just 0.05% this past week. On the car side, value depreciation accelerated compared to the previous week. According to Black Book’s volume-weighted data, analysts said

overall car segment values decreased 0.92% the last week, up from the previous week’s drop of 0.66%. Black Book noticed that mainstream car segments—subcompact, compact, midsize and full-size—all suffered declines of more than 1% with those sub-compacts leading the way at 1.40%. The report mentioned that premium sporty cars continue to generate interest as values for those units

rates on a few luxury manufacturer lanes with remarketers holding firm to floors,” they added. One other trend Black Book mentioned in the latest report directly correlated with how dealers are behaving in the lanes. “A couple of weeks ago, we noticed the success the independents were finally having in being able to successfully bid against the larger buyers. However, this past week we

“Retail demand has softened, but dealers are still in need of inventory after the strong summer sales. However, they are exercising caution in purchasing high-priced inventory,” — Black Book ticked just 0.02% lower, counter to the overall car segments trends. “Sales results at the auctions improved last week for many remarketers as many floors have now been adjusted to reflect the softening in wholesale values,” analysts said. “This was not the case for all sellers, with many of the dealer lanes seeing a lot of ‘ifs’ and high no sale

did see that change a bit as the larger buyers got a little more aggressive in their bidding,” analysts said. “This was especially true on the lanes where the remarketer was letting go of most any of the inventory that received a bid,” analysts went on to say. We thank Auto Remarketing for reprint permission.

Martin Named DCR Dir. of Operations DCR Systems is excited to announce Dave Martin has been named director of operations. In his new role, Martin will lead operational standards across all the company’s markets, including Ohio, New York, North Carolina and Massachusetts. Martin began working in the collision repair industry in 2001, after serving four years in the U.S. Marine Corps. As director of operations, he plans to continue building a culture that focuses on the complete repair experience using the DCR Systems Process while providing a great customer experience. For more information about DCR Systems, visit https:// www.dcrsystems.com/.

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Tesla Sues U.S. Government Over Trump’s China Tariffs by Martin Bigg, CarBuzz

The ongoing trade war between the U.S. and China led to President Donald Trump imposing tariffs on imported Chinese goods, including auto parts. Unsurprisingly, these increased costs have riled major automakers that rely on importing parts from

China to manufacture cars. Now, several automakers are taking action by suing the U.S. government. CNBC reported Tesla is suing the U.S. government and U.S. Trade Representative Robert Lighthizer over the Trump administration’s tariffs on parts Tesla imports from

China to manufacture its electric cars like the Model 3 and Model Y. According to the lawsuit filed in the U.S. Court of International Trade, Tesla wants the court to declare two batches of Trump administration tariffs to be void, and refund Tesla the tariffs it paid with interest. The specific tariffs Tesla has issues with are known as List 3 and List 4. Since it was introduced in 2018, List 3 places 25% duties on $200 billion of imported goods from China. List 4, on the other hand, imposes a 7.5% tariff on $120 billion of Chinese imports and went into effect in 2019. Tesla’s lawsuit doesn’t specify which parts Tesla paid tariffs on or how much it paid, but the company’s lawyers argue that the “imposition of List 3 and List 4 duties was arbitrary and capricious because USTR did not provide meaningful opportunity to comment, failed to consider relevant

factors when making its decision, and failed to draw a rational connection between the facts found and the choices made.” Tesla also applied for waivers in 2019 on artificial graphite, silicon oxide and door ring tailor welded blanks. The waivers for these expired in August 2020. Tesla isn’t the only automaker taking action against the U.S. government, either. Mercedes-Benz has also filed a lawsuit accusing the U.S. government of “prosecution of an unprecedented, unbounded and unlimited trade war impacting over $500bn in imports from the People’s Republic of China.” Volvo, which is now owned by China’s Geely, has also filed a lawsuit as the automaker “believes the way to reach economic growth is to reduce tariffs and harmonize international trade.” We thank CarBuzz for reprint permission.

www.autobodynews.com

UPDATED DAILY

Nationwide Introduces Express App To address independent agents’ need for speed and ease of doing business, in 2019 Nationwide introduced Nationwide Express®, a technology platform that enables agents to quote multi-line policies in as little as two minutes. On Sept. 23, Nationwide introduced a new Nationwide Express mobile app, which allows agents to scan a driver’s license to complete an auto quote in as little as 60 seconds. Agents can also add a renters policy with just one click. The launch of the new mobile app now puts the power to generate quotes on the go into the palm of an agent’s hand. Agents can access Nationwide Express today in all states Nationwide offers personal lines insurance, with additional features to be added this year. The Nationwide Express mobile app is available in 31 states on iOS devices. More states and an Android version coming soon. Source: Nationwide

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954-390-6400 954-390-6449 Fax

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56 NOVEMBER 2020 AUTOBODY NEWS / autobodynews.com

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Caliber Commits to ‘Restoring You’ by Gifting Restored Vehicles to Front Line Heroes Living its purpose of Restoring the Rhythm of Your Life®, Caliber, with its portfolio of automotive services brands—including Caliber Collision, the nation’s largest auto collision repair company—is pleased to extend its “Restoring You” community and teammate program. In collaboration with its insurance partners as part of the National Auto Body Council’s Recycled Rides® program, Caliber will be gifting restored vehicles to front line medical workers, medical support staff and first responders who are helping fight the pandemic. Caliber, which encompasses Caliber Auto Care and Caliber Auto Glass, in addition to Caliber Collision—with its 1,173 centers across 33 states and the broadest network of OEM-certified collision centers in the country—is committed to repairing and maintaining the vehicles of all drivers and fleet operators. During this extraordinary time, the company recognizes a particular need among medical workers, their support staff and first responders, many of whom may worry about

for reliable, safe transportation among those who have been working so hard to fight this pandemic— those in front line roles as medical workers, medical support staff and first responders. “We know that the current environment is putting a severe strain on these workers and their families, and we want to provide them with the gift of transportation through our long-standing partnership with insurance carriers and the National Auto Body Council’s Recycled Rides® program.” As part of its Restoring You initiative, Caliber Collision in Riverside, CA, teamed up with The giftings will occur in Auto Club of Southern California to gift a vehicle to a areas with concentrated local single mother earlier this summer needs, including Dallas/ “The COVID-19 pandemic Fort Worth, Los Angeles and New has made us think differently about York Metro. how we serve our communities as Caliber invites the public to an organization,” said Steve Grim- nominate a worthy health care shaw, CEO of Caliber. “We have worker, medical support staff or seen communities banding together first responder in these markets to during this challenging time, yet we receive a refurbished vehicle from recognize that there are still needs a local Caliber center and teamhow they’ll get to work and elsewhere for daily necessities without reliable transportation. Caliber aims to help ease this hardship by gifting newly refurbished vehicles to deserving recipients.

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Flow Subaru

Winston-Salem (800) 489-3534 (336) 725-3554 Fax Mon.-Fri. 8-5; Sat. 8-1 subarupartsws@flowauto.com www.flowsubaru.com

We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.

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Think Genuine Subaru Parts.

mates. Nominations can be made at calibercollision.com/restoring-you and will be received through mid-October. Since 2012, Caliber has teamed up with its insurance partners to obtain and restore hundreds of vehicles to pre-accident condition. The company has gifted more than 500 vehicles to veterans, active duty service members and others in need of reliable transportation. Today, Caliber is directing its efforts to aid crucial front line health care workers and first responders, while inviting the public at large to participate by nominating those who have given so much to communities during this time of need. For more information about Caliber’s program for medical workers, medical support staff and first responders, go to www.calibercollision.com/restoring-you. To learn about Caliber’s history of community involvement, including NABC Recycled Rides®, visit www. caliber collision.com/about-us/community -involvement.

Jim Armstrong Subaru Hickory (888) 905-6135

Wilmington (800) 424-9434 (910) 793-8710 Fax Mon.-Fri. 7-6; Sat. 8-2

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SO. CAROLINA

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Kelly Subaru

Chattanooga (423) 490-0181 (423) 385-7269 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 parts@kellycars.com www.kellycars.com

autobodynews.com / NOVEMBER 2020 AUTOBODY NEWS 57

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More Shops Invoicing, Being Paid For Labor to Inspect Seat Belts, According to ‘Who Pays for What?’ Surveys Given that automaker procedures often call for inspections of seat belts in vehicles that have been involved in a collision, industry trainer Mike Anderson is glad to see continual growth the past four years in the percentage of shops being paid for this procedure.

of the time” by the eight largest insurers when they perform and bill for the procedure on behalf of their customers. That’s up from just one in four back in 2016, and up even from just last year when about onethird of shops reported being paid regularly.

“I think the ‘Who Pays’ surveys are helping raise awareness of the need for this procedure,” — Mike Anderson But he also says he’d feel better if the pace of growth was even faster. “This is one of the procedures I’m most concerned about,” said Anderson, of Collision Advice. “The data from our ‘Who Pays For What?’ survey in July, while heading in the right direction, still indicates to me that too few shops are researching OEM repair procedures and so are unaware of the need to inspect seat belts.” About two in five shops now say they are paid “always” or “most

Part of that change is based on a decline in the number of shops that acknowledge they’d never sought to be paid for the procedure. Back in 2016, more than 62% of shops said they had never billed for inspecting seatbelts. That’s fallen to 41% this year. “I think the ‘Who Pays’ surveys are helping raise awareness of the need for this procedure,” Anderson said. “One of the things I’ve learned in researching OEM procedures is that many automakers include two procedures related

to seat belt inspections. One may be a seat belt precaution, generally a list of what you need to look for if a vehicle has been in an accident. The other is a seat belt inspection, procedures required when you reinstall a seat belt removed as part of repairs.” The latest quarterly “Who Pays for What?” survey, which Anderson conducts in conjunction with CRASH Network, is now open through the month of October. It focuses on scanning and ADAS calibration procedures, but also surveys shop labor rates and their billing practices relative to shop supplies, like plastic repair materials and seam-sealer. Shops can take the survey at https://www.surveymonkey.com/ r/9LXYVTN Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. nonDRP. The report also includes analysis and resources to help shops better understand and use the information presented. Anderson said the survey,

which will take about 15 to 25 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https:// www.crashnetwork.com/collision advice. Collision Advice (www. CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www.CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources. Source: Collision Advice

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58 NOVEMBER 2020 AUTOBODY NEWS / autobodynews.com

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CCG Adds 100th New Affiliate Certified Collision Group™ has added its 100th new independent affiliate location for the year 2020, continuing its five-year run of consistent and exponential growth. “This year has challenged all of us, yet we remain confident in our founding principles of leveling the playing field on behalf of the top independent collision repairers,” said Marty Evans, COO. “We are devoted to doing all we can to support our independent owner-operators who are performing best-inclass repairs and providing the industry’s finest customer service. “We continue to grow our internal team and provide exceptional products, and we do so only through the remarkable support of our current affiliates, terrific vendor and insurance partners and our founders.” Source: CCG

Middle-Aged Drivers More Likely to Crash Than Those in Their 70s: Study by Christopher Smith, Motor1.com

Young drivers think old drivers go too slow and get confused too easily. Old drivers think the young whipper-snappers go too fast and take too many chances. In between are the middle-aged drivers, which generally have the best track record of them all. However, that could be changing according to a new study from the Insurance Institute for Highway Safety (IIHS). Data for 21 years was compiled, starting in 1997 and running through 2018. The study looks at the number of fatal crashes per 100,000 licensed drivers, with the data further broken down into four age groups: 35-54, 70-74, 75-79 and over 80. To be fair, the overall trend for the period shows a decline for all age groups, but the over-70 crowd saw a substantial drop. Fatal crash rates dropped 43% for folks in their 70s, while the middle bracket dropped 21%. Interestingly, the bulk of that decline for older drivers occurred

not in recent years, but through the first half of the data set. Crash rates for middle-age and 70-74 segments were nearly identical, with the 75-79 bracket matching the other two groups in 2012. From there,

middle-agers crept upwards overall while both 70-year-old groups held fairly steady or even declined slightly. As for the over-80 crowd, fatal crashes per licensed drivers have decreased by a full 50%, but in 2018, it remains the group most likely to be involved in a deadly accident. This is all rather inter-

esting considering the number of older drivers on the road has increased significantly over the last 21 years. What’s the reason for this trend? IIHS points to safer cars with more advanced safety systems as well as better overall health for older drivers. Changes in infrastructure with regards to road signs and intersections are also thought to be a factor. As for why the middle-age fatality rate crept higher, IIHS notes a correlation between periods of economic growth and increases in impaired driving, notably due to alcohol. It’s theorized that middle-agers indulge in such activities more than others. It will be interesting to see how 2020 and coronavirus affect these trends; however, that data likely won’t be available for at least a couple of years. We thank Motor1.com for reprint permission.

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Mercedes-Benz of Winston-Salem Winston-Salem

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Fax: 407-644-9408 M-F 7:30am-6pm; Sat 7:30am-5pm spearce@vtaig.com

autobodynews.com / NOVEMBER 2020 AUTOBODY NEWS 59

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