November 2021 Southeast Edition

40 YEARS

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Former Georgia Insurance Commissioner Sentenced to Federal Prison Former Georgia Insurance Commissioner Jim Beck has been sentenced to federal prison following his conviction for stealing more than $2.5 million from the Georgia Underwriting Association (GUA).

Beck, 60, of Carrolton, GA, was sentenced to seven years, three months in prison to be followed by three years of supervised release, ordered to pay restitution in an amount over $2.6 million and forfeiture of more than $426,000, two pieces of real property and a $2.1 million personal forfeiture money judgment.

Beck was found guilty by a jury

on July 22.

“Former Commissioner Beck has been held accountable for taking advantage of his position of trust at the GUA, stealing millions of dollars from his employer, and then defrauding the IRS,” said Acting U.S. Attorney Kurt R. Erskine. “At the time he was charged with these offenses in 2019, he was the newly elected Georgia insurance commissioner. Thankfully, the FBI and IRS uncovered these crimes before Beck got the chance to do even more damage as a statewide public official.”

See Federal Prison, Page 16

Mitchell, Genex, Coventry Unite to Form Enlyte Mitchell, Genex and Coventry formally announced Oct. 13 the creation of their new parent brand, Enlyte.

The three businesses have been moving toward this unification since the merger of Mitchell and Genex in 2018, followed by the acquisition of Coventry in 2020.

This combination under the new Enlyte brand creates a one-of-a-kind organization in the Property & Casualty industry with technology innovation, clinical services and network solutions, all backed by an unrivaled collection of expertise across the entire claims continuum.

The Mitchell, Genex and Coventry brands will continue to operate as solution providers, making the entire collection of the companies’ trusted products and services available to all Enlyte customers. This new alignment allows the family of businesses to better serve the industry with a holistic point of view and expanded reach, while remaining focused on the individual needs of clients in the Auto Physical Damage, Auto Casualty, Workers’ Compensation and Disability spaces.

“We are so pleased to share the exciting work our people have been See Unite to Form Enlyte, Page 27

Vol. 12 / Issue 9 / November 2021

IGONC, NCTDA Merging to Create New Organization It’s the end of an era and start of a new age for the automotive aftermarket in the Southeast.

The Independent Garage Owners of North Carolina (IGONC) and North Carolina Tire Dealers Association (NCTDA) will close the book on their final chapters, as they have merged to form the Automotive Service & Tire Alliance (ASTA).

With each organization existing for more than half a century, there will always be history to look back on as we move forward. Newly appointed ASTA President Marc Pons and ASTA Immediate Past President Stan Creech have a few words to

help us close this final chapter.

From Marc Pons, president of ASTA: This is the story of two proud organizations. IGO formed in 1959 and NCTDA formed in 1964. Both organizations are financially sound, and our memberships are healthy.

We recently weathered a 100year pandemic as membership associations with our members unsure of their future and our EXPO’s cancelled. Yet, you, our members and vendor partners, saw enough value and importance in what the associations represent that you kept paying See IGONC, NCTDA Merging, Page 24

‘Who Pays for What?’ Survey: Many Auto Body Shops Don’t Bill for Labor to Drain, Refill Fuel Tanks, but Most That Do Get Paid Industry trainer Mike Anderson of Collision Advice often suggests an auto body shop wishing to use the results of the “Who Pays for What?” surveys to train estimators or repair planners start by looking at the “not-included” operations listed in the survey reports for which a large percentage of other shops report being paid regularly.

One such procedure from this past summer’s survey, for example, is the labor to drain and refill a vehicle’s fuel tank.

About 70% of those repairers who charge for this work when it is necessary and performed report being paid “always” or “most” of the time by the eight largest insurers.

But almost three in 10 shops (29%) overall acknowledge they have never sought to be paid for this operation.

“Repairers should understand that the reason this isn’t included in any of the three estimating systems is because it’s so variable,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction

with CRASH Network. “You have a book time to remove and reinstall a fuel tank. But draining, storing and refilling the fuel tank is not included in that time because the estimating system can’t know if a vehicle has five gallons of gas in it or 25 gallons of gas. Obviously, it takes longer to drain and refill 25 gallons of gas than five gallons of gas.”

The final “Who Pays for What?” survey of 2021 is now open through the month of October. It focuses on labor operations related to scanning, system calibrations and aluminum repair. Shops can take the survey at https://www.surveymonkey.com/r/XC67NPT Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented.

Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billSee Who Pays for What? Page 16

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REGIONAL

Costs ������������������������������������������������������������60

Allstate v. Auto Glass America to Settle Lawsuit ��12

AutoNation Appoints CEO and Director ��������������24

Another Day, Another Chevy Bolt Fire, This Time

Average New-Vehicle Transaction Prices Top

in Georgia �����������������������������������������������������20 ASTE 2021, IGONC Award Winners Recognized ���6 Atlanta Family Receives Refurbished Vehicle Through NABC Recycled Rides ����������������������10 AutoNation to Host 2 Events for Drive Pink

$45,000 for First Time ����������������������������������63 Axalta Expects $40M Less in Net Sales for Q3 Due to Supply Chain Shortages, Raw Material and Logistics Constraints ������������������������������61

JEN6 Equipment ��������������������������������������������� 12

ASP Clips �������������������������������������������������������� 20

Jim Cogdill Chrysler-Dodge-Jeep-Ram ����������� 36

asTech ������������������������������������������������������������ 14

John Heister Automotive ��������������������������������� 49

Impact Body Shops ���������������������������������������48

Audi Gwinnett ������������������������������������������������� 48

Kia Motors Wholesale Parts Dealers ���������������� 55

Chevrolet Bolt EV Battery Production Resumes ��30

Audi Wholesale Parts Dealers �������������������������� 54

Kwik Bench ���������������������������������������������������� 27

AutoNation Ford-Lincoln ��������������������������������� 37

Landers Chrysler-Dodge-Jeep ������������������������ 38

CREF Grant Applicants Need Help ���������������������18

Axalta Coating Systems ������������������������������������ 6

Malco ������������������������������������������������������������� 16

Fatality Causes Volvo S60 and S80 Airbag

Beaman CDJR Wholesale Parts ����������������������� 41

Markingpendepot.com ������������������������������������ 22

BMW Wholesale Parts Dealers ������������������������ 61

Mazda Wholesale Parts Dealers ���������������������� 60

Carcoon America Workstation Portable Paint

Mercedes-Benz of Cutler Bay �������������������������� 46

Cars as Investments on the Rise �����������������������38

Former Georgia Insurance Commissioner

CARSTAR 78th on Top Franchise List �����������������22

Responders Emergency Extrication ���������������18 Oh, My Aching Back! Look Who Else Deals with Short Pays ���������������������������������������������22 Performance Racing Industry Joins Forces with Magic 8 Race in Georgia �������������������������8 Several Stolen Dodge Muscle Cars Recovered in Georgia �����������������������������������������������������20 Smithville, TN, Police Arrest Man for Breaking into and Stealing from Local Auto Body Shop ��14 U.S. Auto Tech National Championship Qualifying Event in Atlanta ���������������������������������������������12 Virginia First Responders Learn Rescue Skills Through NABC® F.R.E.E.™ Program ��������������12

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

American Icon Automotive Finishes ����������������� 24

CarLotz Opens in the Peach State ���������������������10

NC Veteran Receives Refurbished Vehicle ����������14

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

Hyundai Wholesale Parts Dealers �������������������� 56

Commercial EV ���������������������������������������������50

NABC F.R.E.E. Program Teaches Virginia First

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

3M Automotive Aftermarket Division ����������������� 5

BrightDrop Completes Build of its First Light

Week to Fight Breast Cancer ���������������������������6

Sentenced to Federal Prison ���������������������������1

INDEX OF ADVERTISERS

CONTENTS

CCC Forecasts Future of EVs and How It Will

Cox Automotive Forecast: New-Vehicle Sales Stall in September ����������������������������������������62

Recall �����������������������������������������������������������24 Ford Begins Pre-Production of All-Electric F-150 Lightning ��������������������������������������������59 J.D. Power: New Car Tech Goes Unused, People

Booths �������������������������������������������������������� 19

Mercedes-Benz Wholesale Parts Dealers �������� 56

Carworx ���������������������������������������������������������� 23

Miami Lakes Automall ������������������������������������� 43

CCC Intelligent Solutions ��������������������������������� 25

MINI of Charleston ������������������������������������������ 50

Certified Automotive Parts Association ������������ 40

MINI Wholesale Parts Dealers �������������������������� 60

City Kia of Greater Orlando ������������������������������ 52

MOPAR Wholesale Parts Dealers ��������������������� 45

Classifieds ������������������������������������������������������ 62

NOROO Paint & Coatings ��������������������������������� 21

Mitchell, Genex, Coventry Unite to Form Enlyte ����1

Colad/EMM Specialties ����������������������������������� 64

Parks Chevrolet ���������������������������������������������� 46

New Hampshire, Montana Settle VW Emissions

Dale Earnhardt Jr. Chevrolet ���������������������������� 30

PPG ������������������������������������������������������������������ 9

DeVilbiss Automotive Refinishing �������������������� 10

Pro Spot International ������������������������������������� 11

Dynabrade, Inc ������������������������������������������������ 35

Rick Hendrick Chevrolet Naples ���������������������� 53

Equalizer Industries, Inc ���������������������������������� 26

Riverside Ford-Lincoln ������������������������������������ 47

Florida Filtration & Spray Booth Services ��������� 18

SATA Dan-Am Company ���������������������������������� 13

Ford Wholesale Parts Dealers �������������������������� 61

Sorbothane Soft-Blow Mallet �������������������������� 22

GM Wholesale Parts Dealers ��������������������������� 59

Spanesi Americas ������������������������������������������� 17

Gus Machado Ford ������������������������������������������ 42

Steck Manufacturing Company ����������������������� 44

Harper Volkswagen ����������������������������������������� 39

Subaru Wholesale Parts Dealers ���������������������� 57

Hendrick Automotive Group ����������������������������� 51

Sunmight USA �������������������������������������������28-29

Hendrick BMW/MINI ������������������������������������������ 7

Tameron Hyundai �������������������������������������������� 53

Hendrick Honda Pompano Beach �������������������� 49

Valspar Refinish ������������������������������������������������ 2

Hendrick Kia Cary ������������������������������������������� 34

Volkswagen Wholesale Parts Dealers �������������� 58

Hendrick Kia Concord ������������������������������������� 34

Wedge Clamp Systems ������������������������������������� 8

Hendrick Volvo Cars of Charleston ������������������� 52

Wrenchers ������������������������������������������������������ 15

Don’t Intend to Use It ��������������������������������������4 Jay Leno Joins SEMA Show New Products Breakfast ������������������������������������������������������42 LG to Pay for Bolt Recall ������������������������������������47 Lordstown Motors Sells Ohio Plant to Hon Hai Technology Group, Announces Partnership

COLUMNISTS Anderson - Auto Body Shops Can Take Control of Credit Card Processing Fees ���������������������34 Chess - Benefits of I-CAR’s Hands-On Spot Welding Class �����������������������������������������������52 Phillips - Marketing Effort at Tony’s Body Shop Pays Off ��������������������������������������������������������37 Yoswick - Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes �40 Yoswick - Lawmakers in 3 States Tackle Topics Impacting Collision Repairers ������������������������46

to Work on EV Programs �������������������������������57

Claims ����������������������������������������������������������18 New Vehicle Sales Expected to Drop in Q3: Edmunds ������������������������������������������������������14 NICB Releases Annual ‘Hot Wheels’ Report: America’s Top 10 Most Stolen Vehicles ����������63 Production of the Lucid Air Begins; Customer Deliveries to Start in October ������������������������26 Retail Spending on Cars and Parts Surpasses All Other Sales ����������������������������������������������60

NATIONAL ‘Who Pays for What?’ Survey: Many Auto Body

Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals �����������������������������56

Shops Don’t Bill for Labor to Drain, Refill Fuel

Tesla Asks New U.S. Buyers to Wait Until April

Tanks, but Most That Do Get Paid ��������������������1

2022 for Model Y Long Range �����������������������������4

2021 Cox Automotive Service Industry Study: Parts Shortages, Staffing Concerns Hold Back Dealership Service Departments ����������58 ASA Announces New Membership Model ����������61 ASE Fall Registration Open ��������������������������������39 AsTech® to Provide OEM Scan Report ���������������63 Auto Insurers Confront Rapidly Rising Claims

Tesla Widens Legal Action Against Rivian Over Alleged Theft of Battery Secrets ��������������������50 Tesla’s FSD Beta 10.2 to Rollout to ~1K New Drivers ����������������������������������������������������������27 To Scan or Not to Scan? CAA Says It’s No Longer an Option ������������������������������������������43

Honda-Acura Wholesale Parts Dealers �31, 32-33

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 3

J.D. Power: New Car Tech Goes Unused, People Don’t Intend to Use It While new-vehicle technology is a leading reason why buyers choose one vehicle over another, many new vehicles are equipped with some features that they want no part of, according to the J.D. Power 2021 U.S. Tech Experience Index (TXI) Study, released Oct. 8.

This ends up being costly to automakers and buyers alike.

“New-vehicle prices are at an all-time high, partly as a result of an increased level of content,” said Kristin Kolodge, executive director of human machine interface at J.D. Power. “This is fine if owners are getting value for their money, but some features seem like a waste to many owners.”

The study finds, for more than one in three advanced technologies, fewer than half of owners have used the technology in the first 90 days of ownership. Non-users most often say they don’t need these technologies.

For example, 61% of owners say they have never used the in-vehicle digital market technology, and 51% of those saying they have no need for it. Owners feel similarly about the driver/passenger communication technology, with 52% saying they have never used the technology and 40% of those saying they have no need for it.

When technology is effectively executed in a vehicle, it positively influences an owner’s decision to purchase another vehicle equipped with that technology. The highest execution scores in the study are for camera rear-view mirror and ground view camera, both of which are ranked among the top three by owners wanting them on their next vehicle.

“J.D. Power has a wealth of transactional data showing that automakers suffer a hit to profits and sales velocity if they build the wrong mix of features on their vehicles,” Kolodge said. “The TXI research quantifies the benefits when there is alignment between what owners truly want and what the automakers produce.”

Following are key findings of the 2021 study: Dealers can influence how owners feel about value of technology: Dealer demonstrations at delivery are

instrumental in keeping owners engaged with emerging technologies.

For example, for safe exit assist technology, owners can get a very strong understanding of the system when they learn it from a dealer. Without dealer education, however, owners often do not fully understand the technology and its value, presenting a challenge for its overall acceptance.

Similarly, when a dealer demonstrates trailer assistance technology, satisfaction improves to 8.69 (on a 10-point scale) compared with 7.83 for learning from an outside source.

However, owners are more than twice as likely to learn about this technology from an outside source (71%) than from a dealer (30%).

Some technologies make driving experience better, while others do not: Many owners indicate poor performance with interior gesture controls technology, which responds to hand motions instead of touch.

Owners of this feature indicate an extremely high 41 problems per 100 vehicles (PP100). This technology also has the lowest overall satisfaction score in the study for a second consecutive year. In contrast, one-pedal driving technology offered in some electric vehicles receives very high satisfaction levels and owners cite relatively few problems (8 PP100).

Tech desires not always transferable across global markets: J.D. Power TXI studies for the U.S. and China include 21 of the same advanced and emerging technologies, but scores for owner satisfaction vary by country. While camera rear-view mirror technology receives high scores in the U.S., owners in China have the most problems (18 PP100) with this technology. For ground view camera technology, 62% of U.S. owners say they “definitely will” want the technology again, while only 24% of owners in China say the same.

Tesla’s unofficial score is highest in study: Tesla receives an Innovation Index score of 668 (on a 1,000-point scale). The automaker is not officially ranked among other brands in the study as it doesn’t meet ranking criteria. Unlike other manufacturers, Tesla doesn’t grant J.D. Power permission to survey its owners in 15 states where it is sells vehicles. Based

4 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

on that limitation, Tesla’s score is calculated based on a sample of surveys from owners in the other 35 states.

Highest-Ranking Brands Genesis ranks highest overall and in the premium segment with an Innovation Index score of 634, offering a high level of advanced technologies across its product lineup. In the premium segment, Cadillac (551) ranks second, followed by Volvo (550), BMW (545) and Mercedes-Benz (523).

Hyundai ranks highest in the mass market segment with a score of 519. Kia (510) ranks second, followed by Nissan (502), Subaru (499) and GMC (498).

Advanced Technology Award Recipients The TXI Study analyzes 36 technologies, which are divided into four categories: convenience, emerging automation, energy and sustainability, and infotainment and connectivity. Only technologies classified as advanced are award eligible.

Cadillac Escalade is the premium model receiving the convenience award, for camera rear-view mirror technology. Ram 1500 is the mass market model receiving the convenience award, also for camera rearview mirror technology.

Lexus IS receives the premium model emerging automation award, for reverse automatic emergency braking technology. Hyundai

Elantra is the mass market model receiving the emerging automation award, for front cross traffic warning technology.

Lexus IS receives the award for infotainment and connectivity in the premium segment, for virtual assistant connectivity to vehicle technology. Kia K5 receives the infotainment and connectivity award in the mass market segment, also for virtual assistant connectivity to vehicle technology.

The 2021 U.S. Tech Experience Index (TXI) Study is based on responses from 110,827 owners of new 2021 model-year vehicles who were surveyed after 90 days of ownership.

The study was fielded from February through July.

The TXI Study complements the J.D. Power Initial Quality Study (IQS) and the J.D. Power Automotive Performance, Execution and Layout (APEAL) Study by measuring how effectively each automotive brand brings new technologies to market. The TXI Study combines the level of adoption of new technologies for each brand with the excellence in execution. The execution measurement examines how much owners like the technologies and how many problems they experience while using them.

For more information about the U.S. Tech Experience Index (TXI) Study, visit https://www.jdpower. com/business/automotive/us-techexperience-index-txi-study

Tesla Asks New U.S. Buyers to Wait Until April 2022 for Model Y Long Range

by Mark Kane, Inside EVs

The disproportion between the demand and supply of the Tesla Model Y Long Range AWD appears to have expanded in the U.S.

According to the online configurator, as of Sept. 27, the expected delivery time for new orders of the entry-level Model Y is now April 2022. It was March a week earlier, and February a week before that.

Now we understand why Tesla will start production in Texas with the Model Y, as it’s the most wanted car in the lineup. Those who would like to get the Model Y must spend $7,000 more for the Performance version, which can be delivered in November. The good news is at least the prices stopped increasing over the last weeks. There are also no changes in the case of other models.

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 5

ASTE 2021, IGONC Award Winners Recognized The Automotive Service and Technology Expo (ASTE) honored winners and sponsors during the closing awards banquet Sept. 25 in Cary, NC. The honorees included Shopmonkey, which won Most Outstanding Booth By Attendee Vote, and Jarhead Diagnostics, which won Most Outstanding Booth by Board Vote.

Sponsors were also recognized: Diamond Sponsors—Tekmetric, Advance Auto Parts/Carquest and NAPA Auto Parts Platinum Sponsors—Motorage and ILM Auto Supply Gold Sponsors—Autoshop Solutions, Garage Gurus, Shop-Ware and AutoLeap Silver Sponsors—Autel US, Automotive Training Institute, AutoZone, Dorman Products, Jasper Engines & Transmissions, Overall Parts Solutions, Autotext.me, Sirius XM, Shopmonkey, Topdon Bronze Sponsors—Elite, Mitchell 1, Total Energies, Turnkey Marketing, Schaeffler

Apprentice Sponsor—Total Energies

The Independent Garage Owners of North Carolina (IGONC) also named award winners during the event.

The honorees included: Member of the Year—Chad Whitley of Whitley Automotive in Locust, NC Associate Member of the Year— Justin Allen of Hunter Engineering IGONC President’s Award— Todd Compton of Compton’s Automotive in Charlotte, NC IGONC inducted one member as a Lifetime Member: Paul Morro with Morrobuilt.

IGONC also honored two past presidents: John Hill of AutoTrends in Greensboro, NC, was IGONC president from 2019-2020, and Stan Creech of Creech Import Repair in Raleigh, NC, was IGONC president from 2020-2021.

Source: ASTE, IGONC

AUTOBODY

AutoNation to Host 2 Events for Drive Pink Week to Fight Breast Cancer

by Auto Remarketing Staff

AutoNation, whose charitable donations have all gone towards fighting cancer since 2013, will host October “Drive Pink” events at DRV PNK Stadium in Fort Lauderdale, FL, with InterMiami CF and 2021 Indy 500 winner Hélio Castroneves.

Since launching its Drive Pink initiative in 2015, the dealer group has raised and donated more than $28 million to create awareness and support critical research and treatment through partnerships with cancer charities from coast to coast.

“We take tremendous pride in the many partnerships we’ve forged through our fundraising efforts not only during Breast Cancer Awareness Month but all year long,” said Marc Cannon, executive VP and chief customer experience officer, in a news release. “It’s thanks to the generosity and commitment of our partners and Associates that we’re able to provide this substantial support.”

On Oct. 12 and Oct. 20, AutoNation will host events at DRV

PNK Stadium, in an effort to continue raising awareness and funds to drive out cancer. First up, on Oct 12, in celebration of the 6th Annual DRVPNK Across America Day, Inter Miami CF players will join AutoNation associates to fill comfort bags for cancer patients at AutoNation-sponsored, DRV PNK Stadium. Every October, Associates from more than 300 AutoNation locations unite to honor those touched by cancer. This year, AutoNation reps from more than 300 locations will write thousands of messages of hope to those who are battling the disease.

Then on Oct. 20, fans are encouraged to support the DRVPNK cause at the Inter Miami CF versus Toronto FC match with opportunities to honor loved ones touched by cancer by wearing pink that evening. The first 10,000 fans who enter the stadium will receive free pink rally towels.

Inter Miami will also join AutoNation to recognize four-time Indy 500 champion Castroneves at the pre-game ceremony.

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6 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 7

Performance Racing Industry Joins Forces with Magic 8 Race in Georgia Performance Racing Industry (PRI) has signed on as title sponsor of the Magic 8 race on Oct. 15 at South Georgia Motorsports Park in Valdosta, GA, part of the four-day No Mercy 12 drag racing event produced by Duck X Productions.

As presenter of the program, PRI will be on-site to help promote the sport of racing and raise awareness of the threats currently facing the motorsports industry.

Recently, racetracks have come under fire for holding in-person events during the COVID-19 pandemic. Local and state governments have sought to curtail tracks’ lawful operations and officials with the U.S. Environmental Protection Agency (EPA) have issued fines and penalties to performance suppliers and retail businesses over alleged violations of the Clean Air Act.

PRI’s Save Our Racecars initiative urges industry members, enthusiasts and fans to become involved with efforts to stop government overreach and help get the Recognizing the Protection of Motorsport (RPM) Act bill passed into law.

“Along with the worldwide motorsport industry, Duck X Production

currently being considered by both the U.S. House of Representatives and the U.S. Senate. The bill looks to clarify in federal law that transforming motor vehicles into race cars used exclusively for competition does not violate the Clean Air Act. This American tradition was unquestioned for nearly 50 years until 2015, when the EPA took the position that converted street vehicles that compete on the track must remain emissions-compliant, even though they are not driven on public streets or highways. The EPA also maintains the equipment used to transform a street vehicle into a race car is prohibited.

PRI has signed on as title sponsor of the Magic 8 “Passing the RPM Act into race on Oct. 15 at South Georgia Motorsports Park in law is the only way to guarantee Valdosta, GA. The Magic 8 race is part of the four-day the future safety of the racing No Mercy 12 drag racing event produced by Donald “Duck” Long and his wife Stephanie Long. industry,” said Dr. Jamie Meyer, PRI president. “We need evsurvived through hurricanes and ex- eryone at the Magic 8 Race to join in treme temperatures, never have we the effort and ensure that drag racing had to contend with the government events like No Mercy can continue. threats that we are experiencing today. It’s critical that we unite to protect our We are proud to join PRI in supporting racing rights.”

The RPM Act enjoys unprecethe RPM Act.”

The RPM Act is a bipartisan bill dented energy in 2021, as racers and events are experiencing challenging times,” said Donald “Duck” Long, No Mercy promoter. “At the forefront of the issues is that of government overreach. While we’ve endured and

motorsports parts businesses have sent more than 1.5 million letters to federal lawmakers urging passage of the bill this year. PRI will be at the Magic 8 Race on Oct. 15 at South Georgia Motorsports Park to urge racers and fans to continue contacting their lawmakers in support of the RPM Act. “We must continue to push in order to get the bill passed into law,” said Meyer. “Only then will the industry have the confidence and the clarity needed to ensure that it is legal to modify a street vehicle into a dedicated race car that is used solely on a track.”

Racers and race fans will be able to join the industry’s advocacy efforts by contacting their lawmakers about the RPM Act. Supporters can easily send letters to their representatives by visiting SaveOurRaceCars.com. Supporters will also be able to join PRI Membership during the No Mercy race.

To learn more about the RPM Act and the Save Our Racecars initiative, visit SaveOurRaceCars.com. To attend the Magic 8 Race on Oct. 15, click here.

Source: PRI

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Atlanta Family Receives Refurbished Vehicle Through NABC Recycled Rides Recently, a deserving Atlanta family experienced a life-changing event—the presentation of a vehicle to provide them independence and the ability to work and take care of daily activities— thanks to ABRA Woodstock in Woodstock, GA, located at Krause Family Ford, and car donor GEICO, along with the National Auto Body Council (NABC) Recycled Rides® program.

The presentation was held at ABRA Woodstock. The deserving family was selected by the Never Alone charity, which works to fight hunger among Atlanta-area residents.

“We always want to give back to our community and help those who are working to establish themselves and their independence,” said John Rowland, parts, service and collision center director for Krause Family Ford and ABRA Woodstock. “This family is working hard to get to their jobs, attend school and create a path to a more positive life.

It’s an honor to be able to help

them on their journey.”

The Bingham family received a 2019 Nissan Altima. They are a family of four with only one vehicle to share. Their oldest son will now have quality transportation to travel to and from work, assist with the younger brother’s after-school activities and help attend to general family needs. As busy as most families are these days, having an additional set of wheels is nearly invaluable.

NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38.5 million.

Additional partners in the NABC Recycled Rides presentation included 1-800 Charity Cars.

Source: NABC

CarLotz Opens in the Peach State CarLotz, the nation’s largest consignment-to-retail used vehicle marketplace, announced it will open its first hub in Georgia on Sept. 20.

Whether online or in-hub, CarLotz’s omnichannel offering welcomes guests in the greater Atlanta area to experience easy access to its unique buying and selling experience. The hub is located at 4400 Stone Mountain Highway in Lilburn.

“We are so happy to open our first hub in Georgia and become a part of the Atlanta community,” said Michael Bor, co-founder and CEO of CarLotz. “Our continued national expansion will allow even more guests to be a part of CarLotz’s peer-to-peer marketplace, our full omnichannel approach

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and the real service and value that comes with buying and selling through our unique consignment model.”

CarLotz is on a mission to create the world’s greatest vehicle buying and selling experience for consumers and commercial consigners. CarLotz continues its rapid expansion, providing its full omnichannel offerings to guests in California, Colorado, Florida, Georgia, Illinois, Missouri, North Carolina, Tennessee, Texas, Virginia and Washington State. CarLotz is coming soon to Alabama and Nevada.

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Allstate v. Auto Glass America to Settle Lawsuit

by Rebecca Barnabi, glassBYTEs.com

It’s all going away. More than two years of litigation ended Sept. 29 with the signature of a Florida judge in the case of Allstate v. Auto Glass America and its owner Charles Isaly. The case was dismissed with prejudice, and either party has the right within 60 days to ask the court to re-open the case. However, all pending motions are now denied as moot in the case in contemplation of a settlement agreement. Judge Carlos E. Mendoza closed the case after joint settlement by the defendants and plaintiffs Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company, Allstate Insurance Company and Allstate Property and Casualty Insurance Company. GlassBYTEs. com previously reported Allstate filed suit against Auto Glass America, owned by Charles Isaly, in December 2018. Allstate alleged the glass company engaged in a plan to unlawfully obtain payment for excessive and/or unreasonable charges of submitting inflated invoices. Allstate paid the invoices at a reduced rate, and also alleged that AGA sued them 1,400

times when the insurance company paid less than the invoice amount.

According to Allstate, AGA billed the insurance company on average $900 per invoice between Jan. 1, 2015, and Sept. 30, 2018, but Allstate reported the average invoice amount from other Florida glass companies during that time was $350. In late July 2021, a Florida judge denied Allstate sanctions to keep certain documents sealed and inaccessible to AGA. Five of six sets of documents Allstate sought to keep sealed were to be released as evidence. Court documents from late July revealed court proceedings in the case were interrupted because both parties “in this case do not like each other, and counsel clearly do not play well together, particularly when it comes to engaging in discovery and related motions practice.” The case had generated a particularly high volume of motions, pleadings, filings and requests for sanctions and new deadlines and a very large number of attorneys were involved.

(C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

U.S. Auto Tech National Championship Qualifying Event in Atlanta Ideal Industries, Inc., a family business that designs and manufactures products for the professional trades, and Intersport, a marketing agency headquartered in Chicago, have announced the inaugural U.S. Auto Technician National Championship (USATNC) competition.

The competition was created this year to celebrate and showcase the incredible skills of auto technician professionals and students across the country. The program centers around a one-of-a-kind competition series, including four months of online and live qualifying challenges to find the best 64 auto technicians—32 each professional and student—and brings them together for a national championship event scheduled to take place Dec. 13-14 in Nashville, TN. A regional qualifying event took place on Oct. 14-16 in Marietta, GA. The regional tour qualifying event is one of seven that will determine the 64 finalists who will be invited to Nashville for the championship event.

From the finalists, three professionals and three students will be crowned first, second and third prize winners, and will divvy up $200,000 in cash and prizes.

Sponsors for the USATNC include 7-Eleven, Discount Tire, Duluth Trading, Garage Gurus, Little Giant Ladder Systems, Lucas Oil, ServiceTitan and the University of Northwestern Ohio.

Registration for the competition is open at www.usatnc.com.

For a list of rules, see https:// www.tradesnation.com/us/en/etcs/ autotech/official-rules.html For additional information, visit: www.usatnc.com Source: Intersport Inc.

12 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

Virginia First Responders Learn Rescue Skills Through NABC® F.R.E.E.™ Program More than 35 first responders from Burkeville, VA, and surrounding areas gathered on Sept.

11, the 20-year anniversary of the 9/11 attack on the U.S., for a hands-on demonstration of the latest techniques in emergency vehicle extrication, preparing them to provide the best response for car accident victims in Burkeville and surrounding areas.

The demonstration was thanks to the National Auto Body Council (NABC)® First Responder Emergency Extrication program (F.R.E.E.)™ program, Burkeville BodyShop, USAA Insurance and Interstate HURST Jaws of Life.

When drivers in the Burkeville area have an accident, they rely on the community’s first responders to be there to help them to safety. And when they are driving a late-model vehicle with numerous airbags, advanced technology or electric/ hybrid engines, the rescue can be more challenging.

The NABC F.R.E.E. helps first responders stay abreast of the rapid changes in vehicle design, including high-strength steel, airbags, advanced restraint systems and onboard technology. Alternative fuel systems found in electric and hybrid vehicles present new challenges for first responders on the accident scene.

Burkeville BodyShop at 302 2nd St., Burkeville, VA, hosted more than two dozen first responders from Burkeville, Farmville, Amelia and Mattoax fire departments at a special NABC F.R.E.E. instruction program Sept. 11 to help ensure Burkeville drivers have the best prepared response in case of an accident.

USAA provided the vehicles, and Interstate HURST Jaws of Life supplied the classroom education and extrication demonstration.

Source: NABC

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NC Veteran Receives Refurbished Vehicle

Smithville, TN, Police Arrest Man for Breaking into and Stealing from Local Auto Body Shop

A deserving North Carolina veteran experienced a life-changing event—the presentation of a vehicle to provide her and her family independence and the ability to work and continue her education—thanks to the National Auto Body Council (NABC) Recycled Rides® program along with car donor Allstate and repair partner Caliber Collision of Matthews.

The presentation was held Sept. 15, at the Hilton Charlotte University Place during the Collision Industry Electronic Commerce (CIECA) CONNEX Conference.

The participants in the NABC Recycled Rides program included vehicle donor Allstate; collision repair partner Caliber Collision, represented by Ashley Dennison, CIO; Steve Cole of Veterans Bridge Home, which selected the recipient; CIECA members and Executive Director Paul Barry; along with Bill Garoutte, president and CEO of NABC, and several NABC board members.

by Dwayne Page, WJLE News

A Cannon County, TN, man who broke into a local auto body shop and stole a car and thousands of dollars worth of tools has been caught thanks to the Smithville Police Department.

Joseph Morgan, 22, of Sycamore Creek Road, Woodbury, is charged with burglary, felony theft and felony evading. His bond is $56,000 and he will be in General Sessions Court on Oct. 21. According to Smithville Police Chief Mark Collins and Lieutenant Detective James Cornelius, Morgan pried open a side door and entered Custom Collision Auto Body & Repair on South Congress Boulevard around 11 p.m. Oct. 2. Once inside, Morgan found a Kia Soul which belonged to a customer that was in the shop for repairs and began loading into the car thousands of dollars worth of tools along with the shop’s DVR surveillance system.

While Morgan was still inside the business, a Smithville police officer was on patrol in the area and spotted three people behind Smithville Elementary School who were there

dumpster diving. The officer got the identities of the three and ordered them to leave. Not knowing Morgan was inside the body shop a few feet away, the officer left the area and continued patrolling around Food Lion, where he found people behind that store. When he chased them away, the officer returned to patrol the parking lot of the county complex and noticed Morgan near the shop.

Morgan had opened the bay door from inside the shop and driven the Kia Soul out of the building. After Morgan saw the officer, he sped away. The officer pursued the vehicle and was joined by other officers.

Although police couldn’t catch up to it at the time, the car was later found abandoned off Holmes Creek Road near Redneck Beach but the stolen tools were not in it.

During his investigation, Cornelius learned several businesses and other establishments near the scene of the crime captured video with their surveillance systems. He then spent hours reviewing the footage which helped identify Morgan as a suspect.

Cornelius also discovered one

of the people dumpster diving behind the elementary school was an acquaintance of Morgan, although he has not been connected with Morgan’s illegal activities that night.

Police located Morgan on Oct. 3 and brought him in for questioning, but he initially denied committing the crimes. Morgan was later released as more evidence was being gathered.

By the evening of Oct. 4, Cornelius was ready to make an arrest and again picked up Morgan. Once confronted with the proof, Morgan confessed and led officers to the place where he had ditched the stolen tools near the scene of the crime before making his getaway.

The stolen Kia Soul and almost all the stolen tools were recovered.

There was some minor damage to the body shop where Morgan had pried open a door to gain entry. The value of the stolen car is $23,490; $20,000 in shop tools and $2,300 for the DVR equipment, which has not been recovered.

Collins said he is proud of his team of officers and detectives for the work done in solving this case.

New Vehicle Sales Expected to Drop in Q3: Edmunds The car shopping experts at Edmunds forecast 3,416,266 new cars and trucks will be sold in the U.S. in the third quarter of 2021, which reflects a 13% decrease from the third quarter of 2020 and a 22.7% decrease compared to the second quarter of 2021.

“New vehicle sales in the third quarter have been a direct reflection of the worsening chipset and inventory situation. Although consumer demand continues to run high, sales have continued to slide downward each month because there simply aren’t enough of the vehicles that shoppers want,” said Jessica Caldwell, Edmunds’ executive director of insights. “The entire U.S. auto industry—including the Asian manufacturers, which were doing a bit better than their domestic counterparts until recently—is in an incredibly volatile position right now and we are seeing inflated retail prices across the board. “It’s growing extraordinarily hard to predict who will come out on top heading into the rest of the year, as every automaker is at the mercy of its suppliers and chal-

lenged logistics around the globe.”

Since Edmunds analysts expect this volatility to continue through the rest of 2021, they advise car shoppers to do extra research, be flexible and brace themselves for higher prices and increased competition if they know they need to make a new vehicle purchase soon.

“If you’re one of the millions of Americans with a lease ending this year and are happy with the car you have, consider buying out your vehicle or extending your lease to avoid the hassle of making a new purchase,” said Ivan Drury, Edmunds’ senior manager of insights. “If you do need to get into a new vehicle and see anything you like at this point, it’s best to bite the bullet and make the purchase immediately. “Don’t wait as the situation could get worse, and don’t try to pit dealers against one another for the best price: You’ll more than likely end up empty-handed because there will likely be plenty of other shoppers vying for the same vehicle.”

Source: Edmunds

14 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

Federal Prison According to Erskine, the charges and other information presented in court: From January 2012 until Beck was sworn in as insurance commissioner Jan. 14, 2019, Beck worked as the general manager

of operations for the GUA after being elected to that post by the GUA board of directors.

GUA, located in Suwanee, GA, is an insurance association created as part of the Georgia Fair Access to Insurance Requirements (FAIR) law to provide high-risk property

insurance to homeowners located throughout Georgia. In addition to premiums collected from its customers, GUA is also funded by issuing assessments to the association members, which include every insurer authorized to write any form of property insurance in Georgia.

While Beck served as general manager of GUA, he also maintained controlling financial interests in two businesses known as Creative Consultants and the GA Christian Coalition. Beginning in 2013, Beck talked four associates—all of whom were either friends or family members—into forming four separate businesses that supposedly supplied necessary services, including residential property inspections and water damage mitigation, to GUA.

Then, through an elaborate system of fraudulent invoicing which included producing false documentation and concealing the truth from his four associates, Beck regularly approved substantial GUA payments to the four companies. Beck then

prepared fraudulent invoices from Creative Consultants and GA Christian Coalition for services that were never performed, and, at Beck’s direction, his four associates paid the fraudulent invoices from the money they had been paid from GUA. Between February 2013 and August 2018, Beck stole more than $2.5 million from GUA. Beck was also sentenced for his convictions on four counts of tax fraud for filing false federal income tax returns for the years 2014 through 2018. Beck’s tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits for Beck’s Creative Consultants and GA Christian Coalition. The tax loss to the IRS was more than $350,000.

This case was investigated by the FBI and IRS Criminal Investigation.

Assistant U.S. Attorneys Brent Alan Gray and Sekret T. Sneed prosecuted the case.

Source: U.S. Attorney’s Office Northern District of Georgia

Continued from Cover

Who Pays for What? ing 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 (https:// www.crashnetwork.com/collisionadvice).

Source: CRASH Network

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NABC F.R.E.E. Program Teaches Virginia First Responders Emergency Extrication When drivers in Orange, VA, have an accident, they rely on the community’s first responders to be there to help them to safety. And when they are driving a late-model vehicle with numerous airbags, advanced technology or electric/ hybrid engines, the rescue can be more challenging.

The National Auto Body Council® (NABC) First Responder Emergency Education (F.R.E.E.™) program helps prepare local first responder teams to rescue accident victims from these late-model vehicles. The program provides education and live demonstrations

on working with high-strength steel, airbags, advanced restraint systems, onboard technology and safety around alternative fuel vehicles.

Pro Collison Center at 12403 James Madison Highway, Orange, VA, recently hosted first responders from the Orange Fire Department and departments in surrounding areas at a special NABC F.R.E.E. education and guidance program to help ensure Orange-area drivers have the best prepared response in case of an accident.

The NABC F.R.E.E. event was held Oct. 2 as part of the Pro Collison Center Fundraiser Cruise-In, a family friendly event supporting the local community and military members. The Insurance Institute for Highway Safety (IIHS) donated the vehicles and HURST Jaws of Life provided the tools and education.

The NABC F.R.E.E. program provides advanced education and guidance to help first responders

New Hampshire, Montana Settle VW Emissions Claims

by David A. Wood, CarComplaints.com

The states of New Hampshire and Montana will see more money from Volkswagen related to its emissions cheating that added more pollution to the atmosphere.

However, neither state got anywhere near as much as they wanted.

New Hampshire says it reached an agreement with VW for installing emissions defeat devices in diesel vehicles that caused excess nitrogen oxide emissions in the state. The state alleges Volkswagen violated the Air Pollution Control Act by causing certain diesel vehicles to emit nitrogen oxides 30 times more than the legal limit.

According to the settlement, VW will pay the state $1.15 million, and the automaker is required to install one additional direct-current fast charging station in New Hampshire. This is in addition to the five charging stations VW had already installed or planned to install.

Volkswagen had already paid about $204 million to the state, but New Hampshire officials say this is

the first time “a state that has not adopted California’s air emissions standards has received settlement money under state air pollution laws related to a ‘defeat device’ installed by a manufacturer.”

In Montana, the Department of Environmental Quality reached a settlement with Volkswagen for penalties related to emissions defeat devices allegedly installed on 2009-2016 VW Jetta, Audi A3 and Porsche Cayenne diesel vehicles.

Volkswagen has agreed to pay the state a total of $357,280, or $280 per car for the 1,276 cars sold in Montana that received emissions software updates.

Montana says VW sent software upgrades that dealerships downloaded to the vehicles during maintenance.

Those updates allegedly made the defeat devices worse by detecting when the steering wheel of a car moved, indicating it was being used on the road rather than being tested. Once on the road the emissions controls were allegedly turned off, emitting illegal levels of nitrogen oxides.

practice cutting techniques on advanced vehicles, addressing highstrength steel and composite materials, multiple airbags, onboard technology and changing vehicle design. The vehicles for the program were donated by Insurance Institute for Highway Safety (IIHS) and HURST Jaws of Life is providing the classroom education and extrication demonstration.

The growing popularity of high-voltage hybrid and electric vehicles and the many safety concerns surrounding these vehicles makes this program a necessity.

Alternative fuel systems present different challenges when first responders arrive at the scene of an accident. Electric cars, hybrid cars and natural gas vehicles have fuel systems that pose dangers for first responders if need arises to “cut” the vehicle for rescue.

Source: NABC

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For the 12th year, the Collision Repair Education Foundation (CREF) invited collision repair instructors to apply for Benchmark Grant funds to support their programs and their students with the tools, equipment and supplies needed to properly educate the next generation of collision repair professionals.

Instructors from all over the country completed the application process, representing 124 schools in 37 states.

Collision repair shops and other industry supporters interested in directing a monetary or in-kind donation to a specific school in their market area can get more information at www. collisioneducationfoundation. org/directed-purpose-gifts/ CREF will announce the 2021 Benchmark Grant winners later this year. To direct a donation to a specific school on the list of 2021 Benchmark Grant Applicant Schools, email info@ ed-foundation.org.

Source: CREF

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 19

Another Day, Another Chevy Bolt Fire, This Time in Georgia

by Andrei Nedelea, Inside EVs

While General Motors is working with battery supplier LG to find a fix for the Chevy Bolt EV and Bolt EUV spontaneous combustion issue, cars are still going up in flames.

The most recent we know of is a 2019 Bolt that caught fire in a garage in Cherokee County, GA, and if firefighters didn’t show up on the scene as quickly as they did, it would have spread to another vehicle and the garage itself.

Luckily, nobody was injured and additional damage was minimal, even if the vehicle was not supposed to be parked indoors.

This Bolt owner was either unaware of or just ignored GM’s recommendation to keep the vehicle outside overnight, in order to minimize additional damage caused by a possible fire.

This particular Bolt was parked alongside a 2017 Ram pickup, which according to the Cherokee

County Fire & Emergency Services, had some smoke-related damage.

“Firefighters worked hard to keep the fire from spreading to the house that was next to the garage,” said Battalion Chief Ricky Collett.

In the meantime, GM is working around the clock to fix the problem and have defect-free battery packs to replace the defective ones in the affected Bolt EVs and EUVs. Currently, the automaker has found the source of the defects were battery plants in Korea and Michigan run by LG Energy Solution.

But even though GM has issued an official recall for all the vehicles it believes to be affected, as well as instructions to help minimize risk until the problem is sorted—keep batteries at a certain level and do not park the vehicle inside overnight—it has not announced an official fix yet.

The estimated total number of affected vehicles is in excess of 140,000 units.

Several Stolen Dodge Muscle Cars Recovered in Georgia

by Steven Symes, Motorious

It’s no secret Dodge muscle cars are huge theft targets. Too often, the Mopars are either never recovered or found on the side of the road, stripped of just about every part.

That’s why hearing about the recovery of two Chargers and a Challenger in Houston County, GA, is exciting, especially the way the vehicles were found.

As told by the Warner Robins (GA) Police Department, at 9:30 a.m. Sept. 20, the Memphis (TN) Police Department contacted them about a stolen Dodge Charger. Apparently, the GPS locator on the car was pinging in the area of Oakridge Drive in Warner Robins.

It’s not clear why the locator wasn’t providing a location before, but we do know some thieves use GPS signal blockers to prevent that from happening, so maybe they were using one but then stopped or it failed. Also, it’s not clear if the GPS locator was the factory unit or an aftermarket device.

Officers went to the location of the GPS signal and saw what looked like a Dodge Charger underneath a tarp. That’s when they knocked on the door and talked to the occupant in the house, who gave them permission to look under the tarp. Sure enough, it was the Mopar stolen in Memphis.

With probable cause, officers then searched the backyard, finding another Dodge Charger which was also stolen in Memphis. They also found a Challenger boosted out of Nesbit, MS. We’ll let you use your imagination about how three stolen Mopar muscle cars all ended up on the same property and why one was sitting under a tarp.

Police towed the cars away in preparation to return them to the rightful owners. They also arrested Jaquana Burnam, the occupant of the house, for theft by receiving stolen property. An investigation is ongoing, but this story does go to show the possible benefits of using a GPS unit on your car and maybe investing in a backup system just in case.

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Oh, My Aching Back! Look Who Else Deals with Short Pays

by Rebecca Barnabi, glassBYTEs.com

The glass industry isn’t the only one to deal with insurance short pays. Chiropractors do too.

On Sept. 22, a Florida federal judge certified a class of health care providers to pursue claims that GEICO has engaged in a practice of underpaying personal injury claims, which violates the insurance company’s policy language.

Randy Rosenberg, a chiropractor in Florida, filed suit in May 2019 against GEICO for requiring a 100% reimbursement of submitted charges less than the amount permitted in the insurer’s fee schedule. Rosenberg alleges it has been GEICO’s general business practice to pay 80% of claims. Rosenberg’s complaint includes a count for breach of contract. It recently became a class action suit.

The case highlights traffic accidents in which GEICO vehicle policyholders are injured, and their personal injury benefits are assigned to health care providers

paid by GEICO. In Florida, all vehicle operators must possess personal injury protection of at least $10,000 for medical expenses and lost wages under the state’s Motor Vehicle No-Fault Law. U.S. District Judge Aileen M. Cannon ascertained in a 16page order that Rosenberg could provide other class members, via a database of claims paid, which GEICO provided in discovery.

GEICO argued Rosenberg’s method was unreliable because The Fontana Group Inc. collected the data by searching for claims featuring the notation “BA.” GEICO uses the “BA” or billed amount code in 15 scenarios. Each claim would require an individual review.

Cannon, however, determined the 6,000 providers with which it was found GEICO used the billed amount code were sufficient to give the case a class definition. An expert witnessing on GEICO’s behalf agreed that Rosenberg’s discovery relying on the “BA” code was flawed but did not dispute the finding when it was revised with

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additional information from GEICO. Rosenberg identified more than 40 class members, which satisfies the requirement for class certification.

At issue in the case is not only GEICO’s alleged underpayment of claims but, according to Cannon, whether the insurance company’s use of the “BA” code was lawful, which prevails over any individual’s case.

According to GEICO’s personal injury protection policy (PIP), the insurance company will pay 80% of medical benefits in accordance with Florida law. Florida’s PIP statute allows insurers to limit reimbursement to 80% of charges for services, supplies and care for up to 200% of the allowed amount. This language is why Rosenberg claims GEICO should be responsible for the full amount of charges billed by providers up to 200%.

(C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

CARSTAR 78th on Top Franchise List CARSTAR, North America’s premier network of independently owned collision repair facilities, has risen in its rank among the top 100 in Franchise Times magazine’s Top 400, the most comprehensive ranking of the 400 largest U.S. franchise systems. Recognized by entrepreneurs and franchisors as a top competitive tool of measurement, the Franchise Times Top 400 placed CARSTAR 78th on the list, up from the 92nd position in 2020. CARSTAR was the top collision repair company for the overall automotive category. For more than 30 years, CARSTAR has been known for its premier reputation fueling the growth of its strong North American footprint to more than 700 locations in 35 states and 10 provinces.

The Franchise Times Top 400+ is an annual ranking of the 400 largest franchise systems in the U.S. by global systemwide sales, based on the previous year’s performance.

Source: CARSTAR

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AutoNation Appoints CEO and Director AutoNation, Inc., America’s largest automotive retailer, on Sept. 21 announced it has appointed Mike Manley as CEO and as a member of its Board of Directors, effective Nov. 1.

Mike Jackson will retire from AutoNation on Nov. 1 as CEO and as a member of the Board of Directors.

Manley currently serves as head of Americas for Stellantis and sits on the group’s Executive Council. Stellantis is among the largest automotive OEMs in the world, formed in January by the merger of Fiat Chrysler Automobiles and the PSA Group.

Most recently, Manley served as CEO of Fiat Chrysler Automobiles N.V. from July 2018 to January of this year.

Manley holds an MBA from Ashridge Management College and a bachelor’s degree in engineering from Southbank University.

Source: AutoNation

Continued from Cover

IGONC, NCTDA Merging your dues and kept your sponsorships intact. We are grateful for you.

NCTDA and IGO have spent over a year and a half in due diligence, weighing the decision to merge, always with our members at the heart of the decision making.

What we have found is that we have far more in common than we have differences.

A quote from Charles Darwin reads, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the most adaptable.” Adaption is at the heart of the of the decision to merge IGO and NCTDA into the Automotive Service and Tire Alliance.

The world is changing and both associations feel this is the proper direction to create a powerful and sustainable association to foster a thriving tire and auto repair industry for our combined roughly 800 members.

We are excited to build a membership organization that is uniquely

qualified to understand the challenges of independent tire and automotive service businesses. We are all about impacting lives. We will positively impact the lives of our members, our members employees, the families of those employees and the safety and well-being of the driving public. Stay tuned. There is much more to come.

From Stan Creech, ATSA immediate past president:

It’s a great day to be an IGONC now ASTA member.

Since 1959, the IGONC has grown to be the largest automotive association, representing independent garages with ever increasing support and resources and helping shops rise to the next level.

Oct. 1, as we merge with the NCTDA, it’s a little hard to imagine

what the new entity will look like a year or two from now. I can tell you there has been and continues to be a tremendous amount of work behind the scenes getting this merger off to the right start. I’m very excited about the future of the ASTA and what it has to offer independent shops, be it service or tire shops.

Sometimes changes take a bit getting used to, but I’m confident this merger will bring a shot of adrenaline and a much stronger Alliance that will carry us strongly for many years to come, on a solid foundation.

In our changing world, a time when other similar organizations are struggling, the ASTA has a bright and solid future.

Source: ASTA

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Fatality Causes Volvo S60 and S80 Airbag Recall

by David A. Wood, CarComplaints.com

A Volvo airbag recall has been announced for more than 460,000 S60 and S80 cars after a driver was allegedly killed by an airbag that exploded.

Nearly 260,000 of those cars are recalled in the U.S., and the recall is unrelated to Takata, the company that caused the recalls of millions of vehicles.

The 2001-2006 Volvo S80 and 2001-2009 Volvo S60 cars are equipped with driver’s airbag assemblies supplied by AutoLiv, but the defective airbag inflators that may explode are manufactured by ZF Friedrichshafen.

Volvo’s legal department received an attorney letter in June 2019 which said a Volvo driver had been killed by an airbag that exploded.

According to Volvo, the driver-side airbags contain FG2 twin inflators with 5AT 148 N propellant, which is used to deploy the airbags. However, Volvo confirmed the propellant

can decay “over time in certain conditions potentially resulting in critical inflator combustion pressures.”

The propellant tablets can decay and start turning to dust particles which increases the burn surface area and burn rate.

Volvo says the higher burn rate can result in higher combustion chamber pressures and increased odds of the inflators exploding.

The inflators are metal and a rupture can send shards of metal into occupants like a grenade.

Documents submitted to the National Highway Traffic Safety Administration don’t provide details if the same inflators are used in vehicles built by other automakers.

The inflators most at risk are those in Volvo cars exposed to hot and humid environments.

Volvo dealers will replace the S60 and S80 airbags once recall notices are mailed Nov. 29.

Volvo owners with concerns may call 800-458-1552 and ask about recall number R10125.

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Production of the Lucid Air Begins; Customer Deliveries to Start in October Lucid Group, which is setting new standards with its advanced luxury EVs, kicked off its Production Preview Week, a series of events during which Lucid opened the doors of its Advanced Manufacturing Plant (AMP-1) and Lucid Powertrain Manufacturing (LPM-1) factories in Casa Grande, AZ, to members of the media and investor communities, policymakers and Lucid Air Dream Edition customers.

The first customer-quality Lucid Air luxury electric sedans rolled off the assembly line Sept. 28 during the event at AMP-1, which included a factory commissioning ceremony with Arizona Gov. Doug Ducey, who joined other policymakers and invited guests in highlighting Lucid’s local job creation and economic development, increase in high-tech manufacturing footprint and plans for future expansion in the state.

Lucid’s Arizona manufacturing facilities are expected to bring a projected economic output of $9 billion to the state in 2024, as well as a projected 15,000 jobs annually by 2024.

During the event, customers, analysts, investors and members of the media were also given the opportunity to be some of the first to test drive the Lucid Air.

Lucid Air Customer Deliveries to Begin in Late October Lucid expects reservation holders of Lucid Air Dream Edition models will begin receiving their vehicles in late October, with customer deliveries ramping up thereafter. Grand Touring, Touring and Air Pure model deliveries are expected to follow.

Lucid has thus far received more than 13,000 reservations for Lucid Air and increased the

planned total production quantity of the Dream Edition to 520 vehicles.

The EPA recently released its official range estimate for the Lucid Air Dream Edition Range, the longest range for any electric car rated by the EPA: 520 miles on a single charge, more than 100 miles over its closest competitor. The Lucid Air Dream Edition Performance and Lucid Air Grand Touring also achieved EPA estimated ranges far beyond any other EV. With customer-quality cars now coming off the line, Lucid has confirmed the Air meets all the applicable regulatory requirements from the EPA and U.S. Department of Transportation.

“The proprietary EV technology that Lucid has developed will make it possible to travel more miles using less battery energy,” said Peter Rawlinson, CEO and CTO, Lucid Group. “For example, our Lucid Air Grand Touring has an official EPA rating of 516 miles of range with a 112-kWh battery pack, giving it an industry-leading effi-

ciency of 4.6 miles per kWh. Our technology will allow for increasingly lighter, more efficient and less expensive EVs, and today represents a major step in our journey to expand the accessibility of more sustainable transportation. I’m delighted that production cars endowed with this level of efficiency are currently driving off our factory line.”

AMP-1 Factory Expansion Lucid completed the construction of the AMP-1 factory, positioned on a 590-acre site in Casa Grande, in less than a year.

As the first greenfield, dedicated electric vehicle factory to be built in North America, Lucid’s innovative AMP-1 was designed with a future-ready focus that has allowed the company to already embark on a massive expansion of the facility. This will add 2.85 million square feet to support an increase in Air production and establish production of the brand’s first SUV, Gravity, expected to start in 2023.

Source: Lucid Group

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Continued from Cover

Unite to Form Enlyte doing to bring our family of businesses even closer together,” said CEO Alex Sun. “Uniting our teams under Enlyte will make it easier for us to help customers manage costs while delivering quality service with an expansive collection of Mitchell, Genex and Coventry solutions from first-notice-of-loss to recovery.”

The launch of Enlyte includes the creation of a Customer and Market Operations team, which will bring together the casualty sales, client services and marketing teams from all three organizations.

The new team will be led by Nina Smith, who currently serves as executive vice president and general manager of Mitchell’s Casualty Solutions Group (CSG).

“I am excited about the opportunity to work with my colleagues to create unprecedented value for our clients and the P&C market,” Smith said.

As the casualty Customer and Market Operations team from all three businesses is organizing under a

single group, the Mitchell Auto Physical Damage group will continue to develop and offer the Mitchell-branded suite of solutions as they do today, dedicated to superior service and expertise in collision repair and claims.

“We are proud of our legacy brands and the teams behind them,” said Sun. “Each of the three companies will continue to develop and grow the branded solutions that our customers know, with the same collaboration and quality they trust.”

The changes were shared Oct. 12 with an invite-only audience of Mitchell, Genex and Coventry customers at the 2021 Virtual mPower Conference. Attendees were given a first-look at the new brand, and heard directly from Sun and other leaders about the new organization and the promise of a future united.

“Aligning under a single, unified brand, while keeping the greatness of our legacy companies, reminds us that we must continue to deliver on our strategic vision of bringing an ever-expanding set of capabilities that positively impact claims outcomes,” Sun said.

Source: Enlyte

Tesla’s FSD Beta 10.2 to Rollout to ~1K New Drivers

by Simon Alvarez, Teslarati

Tesla CEO Elon Musk posted a key update to Tesla’s FSD Beta 10.2 rollout, saying the new iteration of the company’s advanced driver-assist system is poised for release Oct. 8.

Musk also said the program would be expanding to about 1,000 new Tesla owners who have registered a perfect 100 rating on their Safety Score. Musk said the rollout of FSD Beta 10.2 would be put on hold for several days to evaluate the expanded program. If the results of the FSD Beta 10.2 expansion prove successful, then Tesla would start to gradually roll out the advanced driver-assist system to owners who have posted a 99 rating on their Safety Score. Rollouts to owners with Safety Scores of 98 and below should follow. Tesla’s strategy for the rollout of FSD Beta 10.2 is arguably cautious, but necessary. The company’s Full Self-Driving system, even in its Beta form, is designed to be a key safety feature, after all.

For Tesla to be able to release FSD to its greater fleet, the advanced driver-assist system needs to be

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validated and refined. Tapping into electric vehicle owners who wish to take part in the FSD Beta program could then be a key strategy that could eventually help Tesla achieve true autonomous driving in the future. In later posts, Musk confirmed the FSD Beta 10.2 expansion Oct. 8 would be a nationwide rollout. Musk explained, however, the quality of experience among Tesla owners operating FSD Beta 10.2 would likely “vary dramatically” as the company’s neural networks simply have far more training data in some parts of the country more than others. This disparity should be addressed as the FSD Beta program expands further.

The Tesla FSD Beta program has so far been extremely successful. Since starting almost a year ago, the roughly 2,000 or so Tesla owners who are part of the company’s initial FSD Beta program have not met a single accident to date.

While these statistics will likely be impossible to maintain in the long run, Musk has noted in the past Tesla would do everything it can to keep the FSD Beta program and its expansion as safe as possible.

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Chevrolet Bolt EV Battery Production Resumes General Motors on Sept. 20 outlined a comprehensive action plan to ensure customers can safely and confidently drive, charge and park the Chevy Bolt EV and EUV. The action plan includes both hardware and software remedies, some of which are in place with immediate effect.

“We’re grateful for the patience of owners and dealers as we work to advance solutions to this recall,” said Doug Parks, GM executive vice president, global product development, purchasing and supply chain. “Resuming battery module production is a first step and we’ll continue to work aggressively with LG to obtain additional battery supply. In addition, we’re optimistic a new advanced diagnostic software will provide more convenience for our customers.”

New battery production LG battery plants in Holland and Hazel Park, MI, have resumed production. In addition, LG is adding capacity to provide more cells to GM. As a result, replacement battery modules will begin shipping to dealers as soon as mid-October.

The root cause of the rare circumstances that could cause a battery fire is two manufacturing defects known as a torn anode and a folded separator, both of which need to be present in the same battery cell.

LG has implemented new manufacturing processes and has worked with GM to review and enhance its quality assurance programs to provide confidence in its batteries moving forward. LG will institute these new processes in other facilities that will provide cells to GM in the future.

Prioritized battery replacement GM will continue to prioritize Chevy Bolt EV and EUV customers whose batteries were manufactured

during specific build timeframes where GM believes battery defects appear to be clustered. The company has established a notification process that will inform affected customers when their replacement modules will be available.

“Resuming battery module production is a first step and we’ll continue to work aggressively with LG to obtain additional battery supply. In addition, we’re optimistic a new advanced diagnostic software will provide more convenience for our customers.”

— Doug Parks The new batteries will include an extended battery 8-year/100,000mile limited warranty* (or 8-year/ 160,000 km limited warranty in Canada).

New advanced diagnostic software Within approximately 60 days, GM will begin launching a new advanced diagnostic software package that will increase the available battery charging parameters over existing guidance.

The diagnostic software will be designed to detect specific abnormalities that might indicate a damaged battery in Bolt EVs and EUVs by monitoring the battery performance, alerting customers of any anomalies and prioritizing damaged battery modules for replacement. It is GM’s intent that further diagnostic software will allow customers to return to a 100% state of charge once all diagnostic processes are complete.

This new software, which will be provided to all Bolt EV and EUV owners, requires dealer installation. Owners will be able to start to schedule installation at their Chevy EV dealer in approximately 60 days.

Updated guidance on parking

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If customers are following GM’s instructions issued below, they can park in a location of their choice. In an abundance of caution, GM recommends customers leave ample space around their vehicle wherever they choose to park. GM is not

www.autobodynews.com

30 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

aware of any fires that have occurred where customers followed this safety guidance, in parking decks or otherwise.

GM’s instructions remain: Set the vehicle to a 90% state of charge limitation using Target Charge Level mode. Instructions on how to do this are available on chevy.com/

boltevrecall. If customers are unable to successfully make these changes or do not feel comfortable making these changes, GM is asking them to visit their dealer to have these adjustments completed.

Charge the vehicle more frequently and avoid depleting battery below approximately 70 miles of remaining range, where possible.

Continue to park vehicles outside immediately after charging and do not leave vehicles charging indoors overnight.

Customers who have additional questions can visit www.chevy.com/ boltevrecall or contact the Chevrolet EV Concierge 1-833-EVCHEVY (available Monday through Friday, 8 a.m.–midnight ET; Saturday and Sunday, noon–9 p.m. ET) or contact their preferred Chevrolet EV dealer. *Whichever comes first. Customers can obtain a copy of complete warranty terms and details at the time of the repair.

Source: GM

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32 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.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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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

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

Bill Gatton Honda Bristol

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

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

West Broad Honda Richmond

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

Wolfchase Honda Bartlett

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

Checkered Flag Honda Norfolk

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

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 33

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.

Auto Body Shops Can Take Control of Credit Card Processing Fees It came as no surprise to me our “Who Pays for What?” surveys have found the vast majority (95%) of collision repair businesses accept payment from customers by credit card.

All of us as consumers have become accustomed to the convenience of using credit cards, and enjoying the rewards—cash back, travel points, etc.—we can receive by paying our bills with them.

But have you stopped to look recently at what it’s costing your business to offer that convenience to your customers? Have you looked into what your options are for reducing or eliminating those costs?

Now you might think I’m talking about shopping around among the hundreds of merchant processing options out there, most of which are all too eager to assure you they will meet or beat your current processing fees.

That is one option.

But let’s look at some ways you might be able to trim your card processing costs without switching vendors.

It’s a project one of my Collision Advice teammates, Mark Head, spearheaded this year. He’s a true financial specialist, working with our Collision Advice clients to dig into their profit-and-loss statements and really make sure they understand how to maximize their profitability and where they need to focus their attention.

Mark first contacted our clients who are members of our “20 groups” to find out what the true cost was of their card processing, meaning the fees they were incurring monthly.

As you’re probably aware, card processing fees can vary significantly. Some are based on a flat percentage. Some include a percent-

age plus a per-transaction fee. Some vary based on the type of card (Visa, MasterCard, Amex, etc.). Some differ based on whether the card was present at the time of the transaction versus a remote transaction. Did you know that? I sure didn’t!

So Mark had our clients tell us which processing service they use—there were almost two dozen different vendors—and had them all use the same basis to determine their processing costs: divide the total fees paid in a given month, by the total sales dollars paid via credit card for that month.

The bottom line on processing fees?

“It ranged from a low of just above 1.5%—1.64%, to be exact--to more than 4%—4.2%, in fact,” Mark told me. “This is often an ‘unknown cost’ for a lot of shops. They know they pay something, but have

never really taken a close look at what it’s costing them to offer their customers that convenience. That’s what I wanted to point out to them: is it worth giving up 3 or 4% of the bill to allow customers to pay with a credit card versus cash or a check.”

Remember this percentage erodes your bottom line!

So what can auto body shops do about this cost?

First, they may want to place a limit on the dollar amount a customer can pay using a credit card. Say a customer’s vehicle is in for a $3,500 repair, including their $1,000 deductible. Do you allow the customer to put the insurance payment into their own account and pay the whole $3,500 on their credit card? If so, you just paid $105 (if you pay a 3% processing fee) for that transaction.

But what if you placed a cap of $1,000 on the amount the customer

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can pay by credit card? They still get the convenience of paying their deductible by credit card, but you paid only $30 in credit card processing fees because the insurance portion of the bill wasn’t included in the credit card transaction. In this example, the shop saved $75; multiply that by the number of credit card transactions you have per month, and it adds up to real money.

There’s some indication a growing number of collision repair shops are placing such limits. One of our “Who Pays for What?” surveys in 2020 found 76% of shops had no such limit. This year, the survey found that had fallen to 61%. Limits of either $1,000 or $2,500 were the most common.

But you might also consider under what circumstances you accept payment by credit card. Some insurance companies have pressed their direct repair shops to accept payment from the insurer by credit card.

Shops that recognized what that 2% or 4% off the bottom line could mean for their business often found they were successful in requesting other forms of payment from the in-

surer.

Some of those shops also said the insurance company allowed them to add the credit card fees to the amount they were being paid. I’ll discuss this later in this column, but I want to note here that is not something we confirmed ourselves, and neither Mark nor I are offering any legal advice here.

But here’s another scenario Mark and I have been hearing about: tow companies who want to pay the bill at the shop by credit card when picking up a total loss vehicle. I just have to scratch my head thinking about any shop agreeing to that, particularly when our “Who Pays for What?” surveys consistently show more than half of shops are not marking up tow bills—that’s a topic for another column.

When that tow truck driver pays that bill with a credit card and you’re not marking up the sublet tow charge, you’re not only not making any money on that tow, you’re actually losing money—the 2% or 3% or 4% you’re paying in credit card processing for that transaction. That just makes no sense.

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So those are some ways—aside from shopping for lower processing fees—to limit or reduce how much accepting some payments by credit card is costing your business.

But Mark also did some more digging into some other cost-saving possibilities for shops.

“We found some processors allow a shop to offer what’s called a cash-discount program,” Mark said.

“It implements a service fee on all customers, while giving a discount to the customer who pays in cash or check.”

There’s an important caveat, Mark said: such a surcharge is not legal in 10 states, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas and New York, though we heard recently that may change in New York. But here’s how it can work in the other 40 states.

“First, you have to post signage in your office or lobby or customer area explaining that all final bills include a 4% surcharge, for example, on top of the total bill,” Mark said.

“The surcharge should be whatever percentage you actually pay in fees.

And you need to tell the customer up front. That’s very important.”

It’s easy for a customer to avoid paying that surcharge: they just need to pay their bill with cash or a check.

Basically, the credit card fee shows up on the customer’s end, not the shop’s; therefore the shop isn’t paying a fee.

Mark’s presentation on this was a real eye-opener for a lot of our auto body shop clients who really hadn’t realized, first, how much credit card fees were eroding their bottom line, and second, that they had options.

I’m so grateful to him for doing this research and being able to point our clients to some of the processors offering the cash-discount program if they are eligible to use it in their state.

“As shop owners, you always want to grow sales, but you need to keep an eye on costs as well,” Mark told them.

He’s the kind of “numbers guy” I’m thankful to have on my team.

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Shop Strategies with Stacey Phillips

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 stacey@radiantwriting.com.

Marketing Effort at Tony’s Body Shop Pays Off

Body Shops Giving Back

Tony and Isabel Flores opened To- es face and how Tony’s Body Shop derstand their true costs to operate ny’s Body Shop in Oxnard, CA, in has been successful through its mar- so they may be giving the farm away and not even know it. keting efforts.

1965. Considered to be hard-workwith Stacey Phillips

About 20 years ago, I joined the ing business people by their friends What challenges are small AkzoNobel Acoat Selected program and family, the couple taught their businesses facing right now? to learn about financials. I was edchildren good work ethics from an ucated about profit and loss stateearly age.

One of the biggest issues ments, balance sheets and writing

Their son, Jay, found they were struggling financially and began with Stacey Phillips I see in the industry is that a business plan and marketing plan. working at the small mom-and-pop business owners truly don’t under- The program really helped me and shop after graduating from college. stand financials and know if the boat I’m still part of it today. It allows me He now operates the family business is sinking or floating. They don’t un- to meet with other shop owners and talk about what’s happening with his wife, Evelyn, their children, with the industry so I know Jayson, Jaycob and Jasmine, Jay’s what I need to do to stay older sister, Maria, and his cousin, current.

Adrian. with Stacey Phillips I also participated in the The family business is located 3M ARMS course, which about two miles from where it origiis an older class that talked nally opened more than 50 years ago, about capturing jobs when and the Floreses pride themselves on they come to your door and providing a quality repair to custombasic business practices. It ers by following OEM procedures. was awesome and I learned

Autobody News talked to Jay Tony’s Body Shop is located in Oxnard, CA, about two miles withsmall Victoria Antonelli from where it originally opened more than 50 years ago a lot. about the challenges business-

Q: Tips for Busy Body Shops A: My SEMA

Shop Strategies

FORD Product Innovation with Ed Attanasio

I encourage people to leave their cubby or shop and go somewhere to sit in a classroom and learn. By talking to industry participants and touring shops, it helps you build a better business. Business is business; it doesn’t matter if you sell pizza, work in a janitorial company or in collision repair, you need to understand basic accounting.

Q: A:

Why is it important to create a business or marketing plan?

Many businesses struggle because they have no business plan or marketing plan. They haven’t sat down and thought things through and don’t have accurate knowledge about what it takes to operate a successful business.

In order to survive in business, you need a marketing plan. How else are you going to bring people

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to your front door? There is no such thing as luck. It’s hard work and planning. You’ve either written a marketing plan and are successful, or you failed the plan and are struggling.

I recommend writing a twopage marketing plan outlining how you are going to get customers to the front door. Marketing is like a diamond that has many facets.

Q:

What types of marketing have you implemented at Tony’s Body Shop?

A:

I started using television as part of my marketing plan a long time ago. When I moved to this building 15 years ago, it was twice the size of my prior location and I wanted to ensure all of my past customers knew we moved. I didn’t want to lose my customer base. I’m no different than an insurance company that wants customers to renew and re-sign their policy. I’m looking for customers to come back and tell their family and friends about us.

I’ve been successful with it so I’ve kept it going. My father was

once told by a man in Argentina that if you do the best job you can for the car you are working on today, don’t worry about where the next car is going to come from. In essence, he meant that if you do a good quali-

catches the most flies.” In marketing terms, it simply means that the shop that “weaves the largest web” will capture the most business.

One area where the majority of shops get an “F” is having a really good website. It seems everyone you know can build a website but people who truly understand SEO are hard to find. A professional website should include a blog or content about your business, make it easy to find the address and phone number and look good on a phone, tablet and computer.

The family business is run by Jay Flores, his wife, Evelyn, I found it really helpful to their children, Jayson, Jaycob and Jasmine, Jay’s older have access to my website sister, Maria, and his cousin, Adrian so I can fix an error and add ty job, you’ll always be busy. It’s a content without being held hostage very basic concept but so true. by a company.

Marketing your business can In addition to television, what even include simple things like other types of marketing have writing thank-you notes to customyou found helpful? ers, spending time doing follow-up phone calls to ensure they had a There’s no silver bullet. good experience and giving them a There are many facets. As treat when you deliver the car. We the writer Tom Franklin said, “The give customers a bag of peanuts with spider that weaves the largest web a tag that says, “Courtesy of Tony’s

Q:

A:

Cars as Investments on the Rise

by Steven Symes, Motorious

Wealthy people don’t just stick all their piles of cash in bank accounts and in a house. They often invest in tangible objects, be it real estate, a business or collectable cars.

A new Knight Frank Luxury Investment Index (KFLII) sheds light on why we’re seeing the value of certain collectable vehicles shoot through the roof.

In the KFLII, wine and watches do come before cars, thanks to the two top items boasting a 13% and 5% 12-month increase in value, respectively, versus 4% for cars.

However, when looking at the 10-year figures, cars boast an enviable 180% increase versus 119% for wine and 87% for watches.

This doesn’t mean the good times will roll on indefinitely. After all, some items which used to be hot have fallen out of

www.autobodynews.com

fashion. According to Andrew Shirley, editor of the KFLII, there are two items which were at the top but have fallen from those spots: rare bottles of scotch and Hermes handbags.

Still, it’s important to note handbags enjoy a 91% 10-year growth rate and rare whiskey sits better than anything else in the top 10 with 483% increase in the past decade. Those two items have seen a negative 3% and negative 4% growth in the past 12 months, showing the market can be volatile.

We understand that for enthusiasts who don’t have piles of cash, seeing the value of a dream car skyrocket well beyond anything they can ever afford is maddening. Many hold ill feelings for those who, through prospecting, have caused what used to be within reach to become unattainable. In other words, while some are celebrating this trend there is a downside.

UPDATED DAILY

Body Shop.” We take a proactive approach because we want our customers happy and coming back.

Having good reviews is very important. People looking for a body shop are going to Google you and my business philosophy is that customers are always right even if they are wrong. You want customers coming back to your business and telling others about it. Of course, there are exceptions when a customer is too hard to deal with but that doesn’t mean you have to fix that car the next time.

Overall, it’s important to make customers happy so they tell others about the great service they received and write a good review about it.

The majority of time customers are good people and if you do a good job and make sure the car is repaired correctly, that customer will tells his or her family, friends and coworkers about their experience.

I have built a tremendous following in Ventura County where I am located. In one of my commercials, we say, “Ask around. Ask your friends and neighbors where the best place is to repair your car.” I

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38 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com 43380_COL20_Q_AB.indd 1

3/12/21 10:02 A

can pretty much guarantee if not all three, two out of the three will point you in my direction. That doesn’t

ture rate and ensure they are spending time with customers up-front to make sure all their questions and needs are handled.

A lot of people fail to write a marketing plan because they are on DRPs that refer work to the shop. The challenge is that DRPs have evolved. In my experience, DRPs used to allow shops to provide a safe and proper repair. However, with cars like Tesla and all of the ADAS features in new The team understands the importance of assisting vehicles, the cost of repairs customers with the claims process has skyrocketed. happen overnight. It takes years of I’ve found that the goal of most effort and includes everything from insurance programs is to minimize how you answer calls, to how you repair cost. That can be challenging repair and deliver the car. with you have a car with ADAS features. Inherently, it can be viewed What advice do you have as two competing goals: lowest cost for shops as future vehicles possible versus highest safety posevolve? sible when OEM guidelines are followed. For this reason, Tony’s Body As time passes and a totaled Shop has removed itself from most car is replaced with an ADAS insurance programs that do not comvehicle, I believe the claim count is mit to OEM guidelines. going to be less. As a result, shops The John Eagle Collision Cenowners need to focus on their cap- ter lawsuit in 2017 changed how

Q:

auto body shops do business. We are held liable for all the repairs we perform, even after the car is sold and ownership transfers.

In today’s world of complex cars geared to crash avoidance and occupant safety, a safe and proper repair following OEM repair procedures is the only way to continue to stay in business. Returning a car to its pre-accident crash worthiness for the safety of the customer and their family is our only option. This is why Tony’s Body Shop has chosen to be certified by many different vehicle manufacturers.

I often ask people if they would repair an airplane or rebuild its engine without following the manufacturer’s repair procedures. Of course not; people’s lives are at risk. Then why is a car any different?

A:

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ASE Fall Registration Open The National Institute for Automotive Service Excellence (ASE) reminds service professionals fall registration for certification testing is open now through Dec. 31.

More than 50 ASE certification tests are offered for automotive, collision, medium/ heavy duty, school bus, transit bus and truck equipment repair, and more. ASE tests are conducted days, nights and weekends at nearly 450 secured, proctored test centers.

It is recommended service professionals coordinate testing with their employers and check test center availability before registering.

To register, sign into myASE at https://my.ase.com/ or call Prometric at 877-3469327.

Those with active automobile certifications (A1-A9) can also use the ASE Renewal App for recertification.

Source: ASE

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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.

Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes

Shop Showcase

The impact for collision repairers single-car accident claims. “That’s of artificial intelligence (AI) and probably one of the things to think changes in automotive finishes were about: just because you have AI, it with Ed Attanasio among the topics discussed by pre- doesn’t mean that you’ve managed senters at the Collision Industry to make a supplement go away.

Electronic Commerce Association (CIECA) conference held in September in Nashville.

Jimmy Spears, head of automotive for Tractable, said the with Edcompany’s Attanasio AI (machine-learning) system has become adept at quickly determining from photos if a vehicle is a total loss.

“One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of callPaint company representatives say auto body shops will increasingly need to take potential ing balls and strikes: Is this car rewith Ed Attanasio refinish issues into account early in the repair pairable or is this car not repairable.” planning process

For insurers, he said, the system can produce 40% of initial estimates If there’s something behind that “without any further line items” [bumper] cover that’s damaged, it’s needing to be added. An equal per- going to be damaged. But it’s better centage require review of one or two not to write [for that] and assume it. with Ed Attanasio line items---with the estimate anno- But no, supplement percentages artated as to what an appraiser needs en’t any lower.” to review—while the balance will During another panel discusrequire being handled “old school: sion at the CIECA conference, paint have it towed, take the car apart and company representatives laughed go classic blueprinting.” when asked if the industry is close About a year Tractable to AI helping with refinish color withago, Stacey Phillips announced it was working with an matching. insurer in Spain to offer “straight- “It’s a fair question,” said Dan through processing” of some claims, Benton, global product director of such as single-car accidents with no color marketing at Axalta Coating injuries; the customer uploads im- Systems. “We’re chuckling because no, we’re not. There’s just so many ages, the Tractable system prepares with Stacey Phillips an appraisal and “between eight and variables.”

Jeff Wildman, the North Amer15 minutes later,” the claim is paid and “as far as the consumer knows, ican manager of OEM and industry relations for BASF Automotive Reis closed.”

Spears compared it to ordering finish Coatings, agreed, noting even and paying for a drink at Starbucks just spray technique, let alone paint with Stacey Phillips via an app and just picking it up, formula, can influence color match. versus going in to order and pay and “I can give three people the then waiting for the coffee drink to same exact paint, and the same exbe made. act gun, and they’ll spray and we’ll “I’d really like to see the U.S. get three different colors, because of start to do more of that” type of auto that human variable,” Wildman said. claims processing, Spears said. Phillips

Colors are not going to get easwith Stacey

He acknowledged while AI may ier for shops to match, Wildman be reducing upfront time for insurers predicted. Some new vehicle manto produce initial estimates, it isn’t ufacturers, for example, seem less resulting in more accurate estimates. concerned about addressing refinish “Supplement rates are still the issues upfront. same. That doesn’t change,” Spears “I can tell you they are looking said when asked about even those at colors…that are not easy to spray

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at the OEM level or at the refinish level,” Wildman said. “But their designers want these colors. As they’re now starting to paint some of these at the factory, they’re learning: ‘You aren’t kidding, these are difficult to paint.’ So they’re struggling at the factory, and we’re going to struggle in refinish with them. But they want these colors because color sells cars.”

Even some “legacy” auto manufacturers, “trying to differentiate themselves using color,” sometimes haven’t shared enough information ahead of a vehicle’s launch to allow all the refinish systems to be prepared.

“Mazda beat us all up pretty badly a couple years ago with some really tough colors, a red and a gray,” based on innovations in pigments and application, Benton said.

“With U.S. and Western European

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auto manufacturers, there’s typically dialogue going on as colors are being developed so that everyone can formulate refinish match. In this case, it was Nippon working with Mazda, and the rest of us weren’t aware of it right away. That caught us by surprise. That doesn’t happen very often.

“But Mazda was able to move the needle. They actually had great success with those colors, and it really drove some market share growth.

So good for them. That’s how it should be. That’s what we should be doing as manufacturers: innovating in areas of color and that type of thing.”

It’s another indication, however, Benton said, color match issues for shops won’t be ending any time soon. He said auto body shops also should be aware of the increasingly functional role automotive finishes

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are playing, such as coatings that dissipate heat, or those that include anti-fouling properties to make them easier to clean and more mar resistant.

“We’re all still trying to get more volatile organic compounds out of our systems, and we’re trying to do more to create low-energy cure technologies,” Benton said.

Wildman said ADAS is impacting refinishing as well.

“Today we talk a lot about repainting bumpers with sensors behind them, and how much paint can go on those, but it’s not just about the amount of paint,” Wildman said.

“It’s what’s in that paint. What are the pigments? What are the metallics?”

He joked Henry Ford today would tell customers they can have any color they want as long as it’s white, because lidar can’t see black.

“You’re already starting to see more transparent colors, and you’re going to see reflective pigments and primers, with transparent pigment so we can see that primer with lidar,” Wildman said. “So it’s going to become a more and more important

part of how you repair that vehicle.”

His advice to the industry will sound familiar: “The biggest thing is you’ve got to follow the OEM repair procedures,” Wildman said. “Typically when do you think about painting the car? When it’s in the booth.

You can’t do that anymore. You’ve got to think about it upfront.”

The repair planner needs to know if the bumper can be refinished, he cited as one example. None of the estimating systems have a line item for a quad coat, so you need to know upfront how to document and explain that. If the right color primer isn’t used, that could impact color matching. If a specialized toner is needed, one that might only be needed once a year, it’s not something you’re likely to have on hand—and your distributor may not either, which means it could be days away.

“You’ve got to think of paint not just as an afterthought once the car is in the booth,” Wildman said.

“That’s where a lot of shops run into issues.” www.autobodynews.com

Jay Leno Joins SEMA Show New Products Breakfast Jay Leno will kick off the 2021 SEMA Show as the featured guest of the New Products Breakfast on Nov. 2. Taking place before the SEMA Show floor officially opens that same day, the New Products Awards Breakfast is akin to an opening ceremony for the four-day event, where automotive innovation, technology and advancement take center stage.

As the featured guest of the New Products Breakfast, Leno will inspire and motivate show attendees as the best new product award winners are announced. “Leno is an automotive expert whose high energy and passion represents that of the industry’s,” said Tom Gattuso, SEMA vice president of events. “Like the exhibitors at the SEMA Show, Leno pushes the boundaries and continually raises the bar. We’re thrilled to have him join us for the opening breakfast of what is likely to be one of the most iconic SEMA Shows ever.”

Tickets to the New Products Breakfast are available to all SEMA Showgoers at no cost by visiting www.semashow.com/banquet. Tickets are free to all credentialed attendees, but must be reserved in advance

as seating is limited.

In addition to a sit-down breakfast served beginning at 7:30 a.m. at the Westgate Las Vegas Resort & Casino, the event includes announcements and introductions of the best new product winners. Awards are presented in 16 categories and will be showcased in the New Products Showcase throughout the week of the SEMA Show.

The New Products Showcase, voted on by buyers and media as the No. 1 SEMA Show destination, includes exhibitors’ new and featured products displayed in a single location. All exhibitors may enter an unlimited number of products into the Showcase, with the first entry offered at no cost.

The SEMA Show takes place Nov. 2-5 in Las Vegas, NV, with the Show floor opening at 9 a.m. More than 1,300 exhibiting companies are set to participate throughout the Las Vegas Convention Center. To date, more than 40,000 buyers have signed up to attend.

To learn more, visit www.semashow.com/banquet.

Source: SEMA

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To Scan or Not to Scan? CAA Says It’s No Longer an Option them out? And finally—what are the OEs saying about these scans?

A recent video produced as part of I-CAR’s Repairers Real series focused on these questions and searched for answers. In short, some insurance companies have agreed to pay for pre- and post-scans and programming while a small handful are still refusing to join the party.

People often describe today’s cars as “computers on wheels” and every year the cost of these sys-

by Ed Attanasio

A car equipped with Advanced Driver Assistance Systems (ADAS) comes into your auto body shop. You keep hearing about the importance of pre- and post-repair scanning and re-calibrations, but you avoid them like COVID. You have had to take a few vehicles to the dealership to clear codes and in most cases, it simply delays the process and impacts your cycle time. You didn’t perform a prescan and then get stuck at the end of the repair because you can’t clear a code, and you don’t even know if it was from the accident.

Auto diagnostics wasn’t something to worry about a decade ago, but now it’s the hottest topic on every shop floor in the country.

So many questions. Do we have to scan every car and why? Will the insurance company pay us for them?

If we opt out, can we get in trouble with the California Bureau of Automotive Repair (BAR)? Should we do the diagnostics in-house or job

“During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically.” — Monte Etherton tems—the software, cameras and sensors—comprise more of the vehicles’ total cost. Electronics are responsible for 40% of a new car’s total cost, according to a Deloitte analysis, up from 18% in 2000.

Computing technology has impacted every aspect of automotive

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design, engineering and manufacturing. Car designers have a wide range of digital tools and processes that enable the OEs turn out cars much faster and with more precision than ever.

CAA Executive Director Rick Johnson recently browsed through position statements by 15 major carmakers and although the language differed the message was universal.

“They all state that if you want to repair a car properly, shops have

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to perform all of the diagnostics required—pre and post scans and re-calibrations at the conclusion of the repair,” he said. “The fact that we’re having this conversation now is a little ridiculous because this stuff should be part of the process with every car without question.”

Johnson describes a wrestling match over diagnostics that will likely end up in the customer’s lap.

“Our position at CAA is if an insurer denies payment for any diagnostic procedure, the shop needs to explain the situation to the customer and then it’s up to them to pursue it,” he said. “You need to pass the cost onto the customer rather than eating it yourself or not doing it altogether.

If the insurance company isn’t willing to pay, the shop still has to do the work because in the end they’re liable.”

Without a pre-scan, shops are operating in the dark, Johnson said.

“If the shop doesn’t do a prescan, how will they know what was wrong with the car’s electronics before the accident, or from it? Even if there aren’t any codes in the car, the shop is going create a bunch when they fix it, unplugging headlights and airbags, etc. So, if they don’t do a post-scan at the other end, they can’t clear the codes before it leaves the building.”

Some insurers say if the car

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does not contain—or was not impacted near—ADAS, scans are not required, but Johnson said that’s not the case.

“Cars have had computers on board since the late 1990s, so they need to be scanned whether they have ADAS or not. Some insurance companies are trying to say that cars made prior to 2010 don’t need to be scanned, which is obviously false.”

Monte Etherton, owner of Fender Mender Collision Repair Specialists in North San Diego County, and chairman of CAA’s Legislative Committee, said, “An auto insurer denying payment for a pre- or post-scan that doesn’t contain Diagnostic Trouble Codes (DTCs) is like your health insurer denying payment for an X-ray because it didn’t show any fractures.”

Etherton was denied payment from an insurance company in June, so he filled out a Request for Assistance (RFA) with the California Department of Insurance (CDI).

He believes his explanation letter and included documentation allowed the CDI to fully investigate the problem. In this case the CDI was able to resolve it—during the investigation, Fender Mender received full payment from the insurer for the denied scanning operations.

In his explanation letter, Etherton first described the entire issue succinctly. “‘Scanning’ (testing for Diagnostic Trouble Codes, or DTCs) is the process of using an electronic scanner (scan tool) to access and interpret computer module information within a vehicle,” Etherton wrote.

“The diagnostic software in the scan tool checks the vehicle systems for fault codes or DTCs, and can even monitor systems while the vehicle is running to check performance.

“(Unnamed insurer) has recently taken the position that they do not owe for ‘scanning’ unless damage has affected ADAS components.

Examples of ADAS components are blind spot monitors, or collision avoidance sensors. This position contradicts industry standards.

“Scanning with any repair is both an accepted trade standard for good and workmanlike repairs, and a recognized OEM service specification. All major vehicle manufacturers state that any vehicle being repaired

by a body shop must be pre-scanned and post-scanned at minimum.

“Why? Pre-scans are required so the shop knows what DTCs exist before they work on the car. DTCs that show in a pre-scan may or may not be related to the repairs at hand.

In some cases, there may not be any DTCs on a pre-scan, but it still must be completed to create a baseline.

“During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically.

“After reassembly, a post-scan is required. This will show if any DTCs are still stored in the vehicle’s computers. Codes that were set from the damage (or the repair) are then cleared with the scan tool.

A final-scan is needed to prove the DTCs are cleared, thus restoring the vehicle to pre-loss condition.

“The laws are clear. The shop and insurer must follow OEM service specifications, and the OEM service specifications require scanning:

“1. § 2695.8(f) Insurance Fair Claims Regulations: The estimate prepared by or for the insurer shall be of an amount that will allow for repairs to be made in accordance with accepted trade standards for good and workmanlike automotive repairs by an ‘auto body repair shop’ as defined in section 9889.51 of the Business and Professions Code, and in accordance with the standards of automotive repair required of auto body repair shops as described in the Business and Professions Code and associated regulations, including, but not limited to, Section 3365 of Title 16 of the California Code of Regulations.

“2. § 3365. BAR Regulations regarding Auto Body and Frame Repairs: The accepted trade standards for good and workmanlike auto body and frame repairs shall include, but not be limited to, the following: Repair procedures including but not limited to the sectioning of component parts, shall be performed in accordance with OEM service specifications or nationally distributed and periodically updated service specifications that are generally accepted by the autobody repair industry.

44 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

“3. Excerpt from GM Position Statement on Scanning: General Motors takes the position that all vehicles being assessed for collision damage repairs must be tested for Diagnostic Trouble Codes (DTCs) during the repair estimation in order to identify the required repairs.

Additionally, the vehicle must be retested after all repairs are complete in order to verify that the faults have been repaired and new faults have not been introduced during the course of repairs.

“In their denial (unnamed insurer) attempts to put the burden on the shop by stating, ‘Shop Did Not Provide Documentation of Loss Related DTCs.’ (Unnamed insurer) is not only in violation of the law, it is doing a disservice to its customers by not paying for this legitimate and necessary process which allows the repair shop to make sure the customer’s vehicle is restored to its pre-loss condition to the highest degree possible.”

Etherton is hopeful but cautious about getting compensated for scans in the future, he said.

“Everyone is on the same page with this—including I-CAR, the BAR, the CDI and all of the OEs,” he said. “Now if we can convince all of the insurance companies to come onboard, this can hopefully become a non-issue.”

CAA Lobbyist Jack Molodanof has been working with the BAR and monitoring the issue carefully.

“The BAR is definitely moving into the direction of citing and fining auto body shops that don’t perform work according to OEM service specifications including pre- and post-repair scans and calibrations,” he said. “They’re considering up to a $5,000 fine per citation, if they believe it’s something that is safety-related.”

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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.

Lawmakers in 3 States Tackle Topics Impacting Collision Repairers

Shop Showcase

Lawmakers in multiple states have violations, similar to traffic school,” taken action in recent weeks on leg- as a means to avoid having such ciislation impacting auto body shops, tations made public. with Ed Attanasio including new regulations related to The new law also calls for addilabor rates, non-OEM parts and pub- tional safety inspections in order for lic disclosure of regulatory citations a salvage vehicle to be registered. against shops.

California Gov. Gavin Newsom, for example, has signed into law a bill callingwith on that BuEdstate’s Attanasio reau of Automotive Repair (BAR) to create a system to give businesses receiving minor BAR citations not involving fraud a way to avoid having those made public.

The California Autobody AssoLegislatures in three states in recent weeks ciation and the Automotive Service with Ed Attanasio have taken action on proposed laws related Association were among 11 trade to auto body shop labor rates, dealerships’ groups supporting the bill, which sale of non-OEM parts and public disclosure of regulatory citations against shops creates an independent panel to review BAR citations, and would allow “shops to attend compliance and The industry associations say that remedial training for minor record will help “protect consumers from with Ed Attanasio keeping and documentation citation unsafe, revived total loss salvage

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vehicles” that currently only require “a brake and lamp inspection, smog check and CHP inspection to make sure there are no stolen parts—nothing else.”

At the other end of the country, Massachusetts legislator comments during a committee hearing in Septmeber could indicate repairers there are finally getting their message across about the need to address collision repair labor rates in the state.

The state legislature’s Joint Committee on Financial Services held the hearing to collect testimony on a number of auto repair-related bills that propose setting a minimum reimbursement rate for labor by insurers to claimants.

“Massachusetts has the lowest labor rate reimbursement in the nation,” Evangelos “Lucky” Papageorg, executive director of the Alliance of Automotive Service

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Professionals (AASP) of Massachusetts, told the committee members.

“The number of shops has dwindled by 1,000. But there’s also been an increasingly fewer number of individuals getting into the collision repair industry as [technicians] because they can make more money working as an unskilled laborer than they can [as a] skilled repairer in a collision repair facility. Working at labor rates that are 30 years old is absolutely ludicrous.”

Also testifying in favor of the bill was Brian Mountain, body shop director at Collision 24 in Brockton, MA. “The hourly rate of reimbursement in 1988 was an average of $30,” Mountain said. “Today it is an average of $40. The rate has gone up approximately 33% in 33 years while my other business costs have skyrocketed. I’ve seen insurance

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premiums go up 261%, the minimum wage increased 270% and the consumer price index increased 124% during the same period of time.”

“You cannot repair today’s vehicles based on the rates that were being paid 30 years ago,” Papageorg told the committee.

Frank O’Brien, vice president of state government relations for the American Property Casualty Insurers Association of America (APCIA) represented the insurance industry at the hearing.

He followed up Papageorg’s testimony by telling the committee, “There is no free lunch…If you add cost to a system, it puts price pressure on the product…It’s common sense. If you add cost to the system it’s going to have an impact on price, and that impact is not going to be to lower prices.”

Before moving forward with passing new legislation, the joint committee is in the process of establishing a commission to study the issue, “whether that means more hearings or visits around the commonwealth,” said Rep. James M.

Murphy, the House chairman on the committee. “Evidently there is an issue because the body shops are all saying the same thing.”

At the conclusion of the testimony, Murphy sounded skeptical about insurance industry arguments against the legislation.

“I’ve heard today, and I’ve heard in the past, that any increase to the cost of the labor rate is going to automatically increase premium costs,” Murphy said. “I don’t necessarily accept that. You’re going to have to show me why increasing a labor rate is going to increase premiums, because there are other ways that money can come out of the system to not increase premiums.

“The goal is not to raise premiums for consumers in the commonwealth,” Murphy concluded. “The goal is to make sure these body shops are still there to support all of the insurance companies that need these cars fixed…I think now is the time to really roll up our sleeves and get to the bottom of this issue before the industry itself, in regard to the repair facilities, actually collapses.

Then you’ll have no one to fix the

cars.”

In Illinois, Gov. J.B. Pritzker has signed House Bill 2435 into law, prohibiting an auto manufacturer from either requiring or prohibiting a dealer to sell any “secondary product,” defined to include non-OEM parts.

The bill initially also prohibited an automaker from requiring dealers “to provide a customer with a disclosure not otherwise required by law,” but a later amendment removed that clause.

“It is important that consumers are properly informed about the parts to be used on their vehicle,” said Wade Newton of the Alliance for Automotive Innovation, which represents automakers. “This legislation with our amendment will continue to allow an automaker the ability to require such disclosure to help ensure transparency.”

Pritzker just three weeks earlier signed into law another measure, House Bill 3940, requiring automakers to pay a dealer for warranty repairs an amount no less than the amount a retail customer pays the dealer for the same services.

LG to Pay for Bolt Recall General Motors Co. announced Oct. 12 it has reached an agreement under which LG Electronics Inc. will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery modules supplied by LG. As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in charges associated with the recalls.

“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain.

“Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.”

Source: GM

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CCC Forecasts Future of EVs and How It Will Impact Body Shops

by Ed Attanasio

When it comes to repairing EVs, there are auto body shop owners out there who look at them differently.

Some view EVs as something to invest in with little chance of making a profit. Others believe they represent a golden opportunity for shops to differentiate themselves from the pack.

With any new technology, there will be those shops that will embrace it, but many will drag their feet or reject it altogether.

The time to decide whether or not to jump into the EV game is now. Despite a recent ramp up in sales in the U.S., there are still only a small number of EV auto claims and repairs out there, with the majority being in California and other Western states.

The latest CCC Intelligent Solutions Trends Report, “Electric Vehicles Go Mainstream, Implications for the P&C Insurance Economy,” analyzes emerging trends in electric vehicles.

Senior Director/Industry Analyst Susanna Gotsch from CCC is the keeper of invaluable data and this report is surely no exception.

This year, the U.S. has joined numerous countries using the pandemic as an impetus to shift their vehicles in operation from internal combustion engine vehicles to electric vehicles (EVs). Driven by new federal requirements from the Biden Administration, as well as competition with China’s aggressive goals to move to an electric vehicle fleet, automakers and many of their suppliers have announced they will be making significant investments in electric vehicles and battery technologies.

Consumer acceptance of EVs is expected to grow, and sales in the U.S. have already begun to ramp up, according to CCC’s Trends Report.

EVs are only a small part of our national fleet, but those numbers are climbing. Over the four quarters ending Q2 2021, EVs accounted for only 0.54% of CCC’s national industry repairable appraisal volume.

However, as sales ramp further, claim and repair volumes will grow, so understanding how EVs will

change things like frequency, costs, cycle time and repair requirements is important.

The simple fact is EVs are here to stay, despite all of the misinformation out there.

The No. 1 complaint is EVs do not have sufficient range. Americans drive an average of 40 miles a day,

Senior Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions Inc. recently published a report, “Electric Vehicles Go Mainstream, Implications for the P&C Insurance Economy

according to the U.S. Department of Transportation, so range is not going to be an issue, according to experts.

Even the shortest-range electric vehicles can travel more than twice that distance before needing to be tethered to the power grid.

The Nissan Leaf can run for an average 150 miles on a charge, while the Chevrolet Bolt EV can cover 238 miles, Hyundai Kona 258 miles, Tesla Model 3 310 miles and the Tesla Roadster 620 miles.

With battery prices reportedly falling 73% since 2010, electric cars are expected to cost the same or even less than fuel-powered cars in the foreseeable future. The International Energy Agency reported by 2020, there were up to 20 million electric vehicles on the road, a number expected to go up to 70 million by 2025.

People believe EVs are slower than gas-powered vehicles, but in fact, they’re generally quicker than their gasoline-powered counterparts.

Others claim EVs are too expensive, but if you live in a state that’s offering an income state credit or other incentives, they’re definitely price competitive.

Some folks say EVs are unsafe, but those that have been tested by the National Highway Traffic Safety Administration (NHTSA) generally

48 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

get good marks.

Many assume EVs are greener than gas-powered autos, but some people say no. In fact, EV motors convert 75% of the chemical energy from the batteries to power the wheels, while internal combustion engines (ICEs) only convert 20% of the energy stored in gasoline.

Other doubters claim EVs are expensive to fix and maintain, but that’s another misnomer. It costs less because EVs don’t require regular oil changes or tune-ups, and there are far fewer moving parts to eventually fail and need replacing. They also use a simple one-speed transmission and eschew items like spark plugs, valves, a fuel tank, muffler/tailpipe, distributor, starter, clutch, drive belts, hoses and catalytic converter.

Will EV batteries end up in the landfill, people ask? The answer is a definitive no. Once depleted, EV batteries, like 99% of the batteries found in conventional cars, can be recycled. For example, used EV power cells can be used to store solar and wind energy, or they can be

broken down with their more-valuable elements reused.

And finally, will EVs suck up all of the available electricity once they start dominating the market?

That’s another urban tale because the U.S. can add millions of electric cars to the current power system without having to build any new power plants. Much of this has to do with the fact most electric vehicles tend to be charged at night during off-peak hours when power demand tends to be the lowest.

Up until now, most of the data about EVs has been derived from one OE—Tesla—but that is changing at a rapid rate, Gotsch said.

“Many OEs are going to introduce EVs to the public within the next few months and others are going to step up their production, such as the Chevrolet Volt and Bolt EV, as well as Nissan’s Leaf. There are 40-plus different companies currently in production of EVs, including Ford, Volkswagen and Kia. “In states [like California], where there is a large number of

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EVs being sold, driven and crashed, body shops working on EVs will experience a return on their investment obviously quicker than in those states where EV sales will be slower,” she said. “It’s going to be very much like the advent of aluminum vehicles that happened back in 2015 when Ford released the F-150.

Body shops at that time had to decide whether or not to pursue aluminum repairs. The challenge is how will this pay off over time and will it justify the investment?”

As repairers consider when they should make the investments in tooling and training to be able to repair EVs, it will be important to consider both the ramp in sales in their markets and how long it will take to ramp up capabilities to repair EVs. These are tough decisions for any auto body shop, especially when you consider all of the other rapid evolution happening in our cars today, Gotsch said.

“We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repair-

ers,” Gotsch said. “You’ve got to think about automotive diagnostics and re-calibrations now more than ever. Do you do it all in-house or contract with a company to outsource them? Keeping up with the technology is going to accelerate, and involves new tools, equipment and training. Also, with new technology comes the potential for increased liability.”

California Gov. Gavin Newsom issued an executive order requiring sales of all new passenger vehicles to be zero-emission by 2035 and additional measures to eliminate harmful emissions from the transportation sector. The transportation sector is responsible for more than half of all of California’s carbon pollution, 80% of smog-forming pollution and 95% of toxic diesel emis-

“We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repairers,” — Susanna Gotsch

Nearly 40% of the total number of EV auto claims nationally for the four quarters ending Q2 2021 were in California, where EVs accounted for only 1.5% of its overall repairable volume. Only one other state saw a larger share of its repairable volume from EVs: Hawaii at 1.6%.

California will be the country’s poster child or its guinea pig—depending on how you look at it— when it comes to the future of EVs.

sions—all while communities in the Los Angeles Basin and Central Valley see some of the dirtiest and most toxic air in the country.

“California has more EVs than any other state and a large concentration of non-domestic vehicles,” Gotsch said. “When we look at things like registrations and insurance claims, we can clearly see that more and more consumers in California are buying EVs.

“For body shops in California, gearing up to work on EVs is more immediate than with other states.

But the payoff is better with a faster return on investment. The shops that are looking to expand their businesses have likely already made the investment in aluminum repairs and EVs, so they will obviously have a distinct advantage.”

For auto body shops that don’t have the tools, equipment and training to repair EVs, potential challenges will await them.

“We found out that there is definitely going to be a learning curve with EVs,” Gotsch said. “Some shops report that it’s taking longer to fix these cars, when you include diagnostics, for example. Getting paid for the added procedures will also be more universally accepted over time. Once shops become more comfortable repairing EVs, their cycle time will go down and make these repairs more profitable.”

So, if you’re an auto body shop owner and sitting on the fence when it comes to repairing EVs, maybe this report from CCC will inspire you to plug in.

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BrightDrop Completes Build of its First Light Commercial EV BrightDrop, the technology startup decarbonizing last-mile deliveries, on Sept. 28 announced the completion of the first production builds of the EV600, a key milestone to deliver its first electric light commercial vehicle (eLCV) to FedEx Express in time for the holiday season.

The build completion is the fastest vehicle program to market in General Motors’ history and comes amid global supply chain delays and shortages.

The company also unveiled a new addition to its vehicle lineup, the EV410, a mid-size eLCV designed for smaller, more frequent trips. Verizon, one of the largest fleet operators in the U.S., is the first customer slated to integrate the EV410 into its field maintenance and service fleet.

“Getting our first electric vehicles on the streets in record time before another peak holiday shipping season is the best gift we could receive this year, especially when we consider the supply chain headwinds the world is facing right now,” said Travis Katz, BrightDrop president and CEO. “This is

a strong statement to the market of how our unique operations setup, which marries the cutting-edge innovation, agility and focus of a technology startup with the scale and manufacturing might of a major automaker, can deliver real value to both customers and the planet.”

BrightDrop’s EV600 record-setting development timeline of just 20 months was made possible by leveraging GM’s highly flexible Ultium battery platform, innovative virtual development processes established by the GMC HUMMER EV program, and an agile approach to manufacturing development.

In addition to the segment-leading range and safety features, fleet managers can also expect an estimated yearly savings of $7,000 by going electric with the EV600 when compared to a similar diesel-powered vehicle—a good thing for both the bottom line and the environment.

“As e-commerce demand continues to increase and the effects of climate change are felt like never before across the globe, it’s imperative that we move quickly to reduce emissions,” added Katz. “Bright-

Drop’s holistic delivery solutions are designed to help tackle these challenges head on. We’re excited to get these world-class electric vehicles on the streets in record time.”

To hit this production milestone, BrightDrop is partnering with a U.S. supplier partner for initial low-volume production while the conversion of GM’s CAMI Assembly Plant in Ingersoll, Canada, is completed. CAMI will serve as the large-scale production home of BrightDrop’s EV600 van starting in November 2022.

BrightDrop’s newest vehicle, the EV410, combines many of the same features of the EV600, boasting more than 400 cubic feet of cargo area, a shorter wheelbase of just over 150 inches and length of under 20 feet. This new, mid-size delivery van offers exceptional curb management and maneuverability and can fit into a standard-size parking space—a key feature to reduce street congestion in urban areas.

Well-suited for faster, smaller payload deliveries or as a service vehicle—from online grocery delivery to telecom maintenance—the

EV410 offers versatility for a myriad of use cases and expands zero-emissions driving to companies like Verizon, helping them meet their sustainability goals while opening new and exciting markets for BrightDrop.

“Mainstream EV adoption by businesses will require the largest fleet operators to work together with innovators like BrightDrop in the development of vehicles that meet the particular needs of our business,” said Ken Jack, vice president of fleet operations for Verizon.

“Adding the EV410 to our fleet is the latest step in our commitment to Verizon achieving net zero operational emissions by 2035.”

The EV410 is the latest vehicle in BrightDrop’s ecosystem of lastmile solutions, joining the EV600, the company’s first eLCV slated to hit roads later this year; the EP1, an all-electric smart container designed to replace the age-old dolly; and a software platform for fleet and asset management.

BrightDrop plans to begin EV410 production in 2023 at CAMI Assembly.

Source: GM

Tesla Widens Legal Action Against Rivian Over Alleged Theft of Battery Secrets

by Simon Alvarez, Teslarati

Tesla Inc. is widening its legal action against fellow electric vehicle maker Rivian Automotive Inc., with the former accusing the latter of continuing to poach its employees and stealing “highly proprietary” technology related to batteries.

Battery tech is among Tesla’s most closely-held innovations.

According to Tesla, the lawsuit it filed against Rivian 14 months ago has not stopped the pickup truck maker from poaching its employees and acquiring intellectual property. To highlight this point, Tesla said this summer, there was an instance where defectors to Rivian were “caught red-handed” stealing the core technology for its next-generation batteries. Tesla said batteries are the “most essential element for any electric vehicle.”

“Now apparently under pressure from investors after nearly a dozen years without producing a single commercial vehicle, Rivian has intensified its unlawful ef-

forts,” Tesla said.

Tesla is particularly secretive about its batteries. Even with the company’s open patent program— which arguably helped companies like Xpeng Motors from China launch their own EV efforts— Tesla has been very careful not to

share the intricate details of its batteries, from the 18650 cells used in the Model S and Model X to the 2170 cells used in the Model 3 and Model Y and to the 4680 cells currently being ramped in the Kato Road facility in Fremont, CA. In comparison, Rivian uses 2170 cells from Samsung SDI for the R1T pickup truck and R1S SUV. The truck maker has been silent about its battery strategy, however, so it remains to be seen if Rivian’s 2170 cells are off-theshelf or if they feature proprietary

50 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

chemistries similar to the 2170 cells produced by Tesla and Panasonic in Gigafactory Nevada.

The company has also not revealed any plans to shift to another battery form factor in the future either.

Rivian has so far declined to comment on Tesla’s widened lawsuit. The company is currently planning an initial public offering.

Previous Bloomberg reports said Rivian is looking to raise about $80 billion for its IPO.

Tesla’s initial lawsuit against Rivian, filed last year, alleged the truck maker was engaging in trade secret theft through employees reportedly being poached from Tesla. The California-based EV maker accused Rivian of acquiring proprietary information related to its recruiting process, bonus and compensation plan for sales personnel, and manufacturing project management systems.

Rivian formally requested to have Tesla’s claims dismissed in court, but a California state judge in San Jose allowed the case to continue.

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Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator.

Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Benefits of I-CAR’s Hands-On Spot Welding Class 1. What is the temperature at the spot welding site?

Toby Chess Has 2. Why are the arms and electrodes made from aluminum and Successful Kidney copper respectively?

Transplant 3. What is the voltage at the tips when welding? with David McClune 4. Which electrode is positive, the stationary or fixed?

5. Why are vise grip pliers jaws isolated?

6. What are edge distance and pitch?

7. What are some of the reasons for sparks when spot welding?

8. What are shunt pliers?

Our well-known collision consultant 9. Why is pressure needed at the Toby Chess underwent a successtips when welding? ful kidney transplant on Oct 12 at with John Yoswick 10 . What is the basic spot welding UCLA Ronald Regan medical center, principle? courtesy of his brave daughter Stacy Nicole Torres, 40, who donated an The reasons to use squeeze type reorgan to her father based on their compatible genetic profile. The opsistance spot welding (STRSW) are eration required 2.5 hours of surgery as follows: for her, and 4 hours for Toby. Both • Smaller heat affect zone comare doing well and Toby no longer pared to MIG spot welds has to endure weekly dialysis.

• Easy to learn • Duplicates OE applied spot welds with Richard Steffen • Less corrosion protection materials destroyed • No added filler materials used

site and pressure is relieved in the form of heat, more than 2000 degrees Fahrenheit. The pressure at the tips forces the molten metals together and the electrodes are held in place by the computer until the weld nugget solidifies. This whole process takes less than two seconds.

Preparation of the panels is very

important. First, the inside mating surfaces need to be cleaned entirely, but there are a few exceptions that will be discussed later in the article.

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Fig. 3

Fig. 2 Edgar Andrade

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Pictured: Hayley Torres, granddaughter (l); Hunter Torres, grandson, (c) ; and Stacy Torres daughter and donator (r)

The resistance welding working principle is the application of current and force through the welded parts develops resistance and thus creates a nugget in the melt joint.

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Answer this question: why should I send my techs to an I-CAR hands-on spot welding class?

Fig. 1

Most of you will say this class is needed for Gold Class renewal. There are no negative or posiTrue, but this should not be your an- tive electrodes. Electricity flows as a loop. With the arms made from swer. with Karyn Hendricks Answer the following ques- aluminum and the electrodes from tions. If you get 100%, fantastic, but copper alloy, electrons flow through if you don’t, you need to look at the those parts fairly easily. When the I-CAR resistance spot welding class steel panels are placed between the electrodes, resistance forms at the in a different light.

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52 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

A best practice is to use a ScotchBrite on a die grinder, followed by a cleaning with a good wax and grease remover. See Fig 2 & 3.

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I am going to use pictures from the I-CAR STRSW course I conducted at Tony’s Body Shop in Oxnard, CA. Before moving on, I want to talk about the I-CAR STRSW

Fig. 4

Fig. 5 Martin Perez Jr

hands-on class. The class starts out with a number of different scenarios designed to teach the students the proper procedures for STRSW. The techs learn how to weld different thicknesses of metal, how to weld using adhesives, pitch (distance between welds) and edge distance (distance from the leading edge inward), how different arm sets work, machine operation and most important, how to conduct destructive weld testing.

The first thing is to gather all the necessary equipment and materials, such as a Scotch-Brite, weldthrough primer, wax and grease remover, two-part adhesive, acid brushes, extra mixing tips, gloves and paper towels. (Fig 4) Next, read the repair manual before starting. (Fig 5) After all the parts are marked for proper alignment, the prop is dry assembled and the location on each spot weld is carefully marked (pitch and edge distance). Figs 6 & 7 Next, the front spot weld locations are transferred to the backside of the prop. (Fig 8)

The next item in the process is

the removal of the E-coat from the flanges. It should be noted Chrysler does not want the E-coat removed

Fig. 6 Jaysen Estrada

from the mating surfaces on its vehicles. I explained to the students they should only remove E-coat from the spots where the electrodes will touch the metal and not all the coat-

Fig. 8 Fausto Reynoso (note locking pliers are isolated with electrical type to prevent them to act like a shunt)

ings on the flanges. The more E-coat left on the flanges, the better the repairs (Fig 9).

The next step in the repairs is to remove all the coatings on the mating surfaces, where adhesive will be applied, followed by a cleaning with a wax and grease remover (Fig 2).

The next item in the repair pro-

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cess is the adhesive. I have tested 51 students for the spot welding class, April to July, and not one read the label to determine the work time of the adhesive. On five of the tests,

The adhesive is applied to both mating surfaces and an acid brush is used to coat the entire flanges with adhesives. See Fig 13

amps (Go to Dentfix.com for more details).

This body shop has two spot welders, an I-4 (tech needs to set the parameters) and an I-5 (fully automatic).

To set the non-automatic machine, the first thing is to measure the total thickness of the pieces of metal that will be spot welded. A caliper is used to accomplish this task (see Fig 16). You will divide that number

this case, the machine was set for weld bonding. Next the tips (cleaned

Fig. 17

with a Scotch-Brite) were checked for alignment and adjusted accordingly.

The tip pressure was adjusted to

Fig. 13 Gio Astudillo Fig. 9 Fausto Reynoso

the work time for the glue was only 15 minutes. Now if you are doing a large panel, you had better find a slow-setting glue. Virtually all the techs would equalize a new twin tube of adhesive, but not after it had been opened. Again, I stressed to the techs the proper method: every time you change the tips, the adhesive needs to be equalized and after the tip is installed, run out about 3 inches bead of adhesive, to ensure the adhesive applied to the panel is totally mixed. See Figs 10 & 11.

The prop is assembled and a shunt pliers is needed for the first spot weld. (See Fig 14)

Fig. 16 Edgar Andrade

by two and set the machine for that thickness (see Fig 17).

Determine the type of weld. In

Fig. 18

Fig. 14 Edgar Andrade

Adhesive and E-coat are not electrically conductive and an electrical path needs to be established. A shunt pliers creates that path for the first weld (See Fig 15).

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A regular locking plier is not recommended as a shunt because they do not have the ability to pass a large amount of amps the welder puts out, which will reduce the strength of the spot weld.

You will notice the shunt pliers use copper feet and No. 2 gauge wire to handle the extremely high

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the recommended pressure (80 psi for a standard gun and 60 psi for a high pressure gun). Too much pressure will cause deep indentations in the weld, and not enough pressure will cause metal throw out.

Perform test welds and do destructive testing.

When everything is ready, begin the welding process (Fig 19).

Note in the picture the number of

gether. This is wrong because it creates larger air gaps in the weld site and the resistance in the weld site increases, causing more heat, which explodes out. Sparks will fly and if the gap is too large, a hole may occur. Fig 18

Some of the other major defects I have encountered are welds too close to the edge (sparks will fly) and welds on top of other welds.

The wheelhouse arm was then installed and

Fig. 19 Jaysen Estrada

clamps used. By clamping on both side of the weld site, the weld process will greatly improve.

I find a lot of techs use the pressure at the tips to draw the metal to-

Fig. 20 Edgar Andrade

The tip alignment checked (Fig 20). A test weld was performed and the final welds were done.

Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals Sedgwick, a global provider of technology-enabled risk, benefits and integrated business solutions, and CCC Intelligent Solutions Inc. (CCC), a SaaS platform for the property and casualty insurance economy, announced a multiyear agreement whereby CCC’s mobile and artificial intelligence (AI) claims capabilities will power Sedgwick’s auto appraisal offering and related workflows.

The agreement will help redefine Sedgwick’s auto appraisal capabilities, enabling the auto claims services provider to offer clients the next steps towards a digital end-toend automobile physical damage evaluation experience, streamlining and improving their policyholder experiences. “Working with CCC to bring proven AI and mobile innovation into our process marks the next milestone in the strategic growth and advancement of our auto physical damage management solutions,” said Chris Bakes, Sedgwick managing director for auto appraisals.

“On the heels of several key acquisitions, the CCC cloud will help

scale our auto business by extending our reach and our technology capabilities, allowing us to elevate the appraisal process in this industry to a new standard of excellence.”

Sedgwick will leverage CCC’s suite of cloud-based AI solutions, helping its clients deliver an enhanced digital experience from first notice of loss to resolution.

“Digital and AI-first experiences are being activated across the industry and CCC is proud to be powering this transformation, improving the lives of millions of drivers,” said Shivani Govil, chief product officer, CCC. “The CCC advantage combines leading AI and vast network connections to help our customers scale their business, deliver differentiated value, and achieve better business outcomes.

We’re excited to provide Sedgwick with the technology and tools to support its next phase of growth in the auto appraisal space.”

More about Sedgwick’s auto solutions can be found at sedgwick. com/autoappraisals.

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Lordstown Motors Sells Ohio Plant to Hon Hai Technology Group, Announces Partnership to Work on EV Programs Lordstown Motors Corp., a provider of electric light duty trucks focused on the commercial fleet market, and global technology company Hon Hai Technology Group (Foxconn) on Sept. 30 announced they reached an agreement in principle to work jointly on Lordstown Motors’ electric vehicle programs in its 6.2 million-square foot production and assembly plant in Lordstown, OH. The parties on the same date entered into a subscription agreement, under which Foxconn will purchase approximately $50 million of Lordstown Motors’ common stock directly from Lordstown Motors at a price of $6.8983 per share, and retain these shares for a specified period.

The agreement between both companies would allow Lordstown Motors to leverage the technology and manufacturing expertise of Foxconn, as Lordstown Motors pursues the production of electric vehicles at its Ohio facility. The goal of the partnership is to present both Lordstown Motors and Foxconn with increased market opportunities in scalable electric vehicle production in North America.

The agreement provides as follows:

Lordstown Motors and Foxconn will use commercially reasonable best efforts to negotiate a definitive agreement pursuant to which Foxconn would purchase the Lordstown facility, excluding Lordstown Motors’ hub motor assembly line, battery module and packing line assets, certain intellectual property rights and other excluded assets, for $230 million.

Both entities would also negotiate a contract manufacturing agreement, which would be a condition to closing of the facility purchase, whereby Foxconn would manufacture Lordstown Motors’ Endurance full-size pickup truck at its Lordstown facility. Lordstown Motors would also agree to provide Foxconn with certain rights with respect to future vehicle programs. Concurrently with the closing under the definitive agreements, Lordstown Motors would issue warrants to Foxconn that are exercisable for three years for 1.7 million shares of common stock at an exercise price of $10.50 per share.

The parties have agreed to explore licensing arrangements for additional pickup truck programs.

Following the closing under the

definitive agreements, Lordstown Motors would enter into a long-term lease for a portion of the existing facility for its Ohio-based employees, and Foxconn would offer employment to agreed upon Lordstown operational and manufacturing employees.

“We have high expectations through this partnership that we will be able to successfully integrate our resources with Lordstown Motors,” said Young Liu, chairman of Hon Hai Technology Group. “In addition to achieving the goal of moving ahead our timeline to establish electric vehicle production capacity in North America, it also reflects Foxconn’s flexibility in providing design and production services for different EV customers. This mutually beneficial relationship is an important milestone for Foxconn’s EV business and our transformation strategy.”

In addition, this facility would serve as a speed to market asset that would also support Foxconn’s partner and customer, Fisker Inc.

“We are excited about the prospect of joining forces with a worldclass smart manufacturer like Foxconn and believe the relationship would

provide operational, technology and supply chain benefits to our company and accelerate overall scaled vehicle production and increase employment in the Lordstown facility,” said Daniel Ninivaggi, CEO of Lordstown Motors Corp. “The partnership would allow Lordstown Motors to take advantage of Foxconn’s extensive manufacturing expertise and cost-efficient supply chain, while freeing up Lordstown Motors to focus on bringing the Endurance to market, developing service offerings for our fleet customers and designing and developing innovative new vehicle models.”

In connection with the Foxconn announcement, Lordstown Motors also provided an updated production outlook. The Lordstown Motors team continues to move forward with its plan to build a limited number of Endurance vehicles for testing, validation, verification and regulatory approvals during the balance of 2021 and the first part of 2022.

The company will provide an update on its production plan during its upcoming Q3 2021 earnings call currently slated for mid-November.

Source: Lordstown Motors

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 57

2021 Cox Automotive Service Industry Study: Parts Shortages, Staffing Concerns Hold Back Dealership Service Departments Despite current headwinds and market conditions, dealership service centers remain resilient and continue to be among the most preferred service providers.

According to the 2021 Cox Automotive Service Industry Study released Oct. 11, 34% of consumers prefer dealership service centers, a 1 percentage point increase from 2018, and ahead of general repair shops.

And while this is great news for franchise dealers, there is still a majority of the market dealerships aren’t capturing—translating to $214 billion in potential revenue.

Dealership service centers are the most preferred because of their existing relationships. In fact, 55% of consumers say it is because the dealership knows their vehicle.

On the other hand, dealerships continue to combat the perception they are overpriced and expensive.

The top barriers to returning to the dealership are not only cost, but also location according to consumer rankings, all of which makes way for what owners consider easier and more convenient options, like general repair shops.

On top of that, nearly one in four consumers also say their dealership service visits take longer than expected, adding to their frustration.

Exacerbated by the pandemic, service departments cite part delays from manufacturers (58%) and finding or hiring the right technicians (45%) as their top operational frustrations, and both can directly impact the consumer experience, including the notion that service

departments take longer than expected.

On average, dealerships cite a decline in the consumer satisfaction they deliver, with only 55% of dealers believing satisfaction has improved in the past 12 months (down from 71% when surveyed in 2018).

Specific to staffing, 57% of dealership respondents say their service department is not fully staffed, and 80% expect these labor shortages to continue or worsen in the future. The majority (60%) also say the service technician is the top role they plan to grow this year, so there is a focus on investing in this area of the business.

“The industry is ripe for transforming the consumer experience,” said Tracy Fred, vice president of operations for Xtime. “Despite a challenging marketplace, opportunities exist to better leverage digital tools to deliver on and even exceed consumer expectations, while also offsetting some operational challenges. Elevating the entire service experience with a consumer-first mindset and the use of technology can help raise overall profits, capture additional market share and help mitigate the frustrations service departments are currently facing.”

Dealership service centers offering digital features have a more positive outlook. Of the dealers saying the experience has improved in the past year, they more often offer services like service pick-up and delivery, ridesharing, progress tracking, online cost estimates, mobile check-in and other digital services. Not only are they offering

these conveniences, but they have the added benefit of meeting consumer demand for a more digital service experience.

Car owners particularly want the ability to schedule their appointment online, and it seems the dealer is striving to meet consumer needs there with 74% of dealers offering this option today. Of those owners scheduling online, 91% are highly satisfied with the experience; however, a third of consumers are unsure if their service provider offers this feature, which is consistent with the 2018 Cox Automotive Service Industry Study.

Consumers also want to review and approve repair estimates online (67%) and access their vehicle service history (66%), which according to those surveyed are among the most critical digital features a service center should offer and provide an added level of transparency and convenience to the service experience.

Top performing service departments have a consumer-first mindset and use technology to enhance the experience by offering digital tools and convenience-focused services, like rideshare and reviewing and approving repair orders online.

Nearly all top-performing dealers surveyed (99%) agree that improving consumer experience is an important focus moving forward.

“Consumers continue to stress the importance of a digital experience, and dealerships must evolve and offer flexibility by enhancing online capabilities,” said Fred.

“Meeting consumer demand for convenience by considering new service lines like ridesharing also can help combat location as a barrier. These same services can also be leveraged as new staffing strategies, like enabling Lyft for service pick-up and delivery to allow your existing staff to focus elsewhere.”

Source: Cox Automotive

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Ford Begins Pre-Production of All-Electric F-150 Lightning As the first pre-production F-150 Lightning trucks roll out of Ford’s new Rouge Electric Vehicle Center and demand soars for the all-electric truck, Ford on Sept. 16 said it will increase investment and add jobs to boost production.

Ford is investing an additional $250 million and adding 450 more direct jobs across the Rouge Electric Vehicle Center, Van Dyke Electric Powertrain Center and Rawsonville Components Plant. The investment and added jobs will help increase production capacity to 80,000 trucks a year.

“We knew the F-150 Lightning was special, but the interest from the public has surpassed our highest expectations and changed the conversation around electric vehicles.

So we are doubling down, adding jobs and investment to increase production,” said Bill Ford, executive chair, Ford Motor Company. “This truck and the Ford-UAW workers who are assembling it in Michigan have a chance to make history and lead the electric vehicle movement in America.”

F-150 Lightning, with a start-

ing MSRP of $40,000 and targeted EPA-estimated driving range of 300 miles with the extended range battery, is aimed at the heart of the U.S. auto market. Ford has taken more than 150,000 reservations for the trucks to date.

“Electrifying the F-Series— America’s best-selling truck for 44 years—and assembling it at this high-tech facility in Michigan represents a significant step toward mass adoption of electric vehicles in America,” said Kumar Galhotra, Ford’s president of The Americas and International Markets Group.

“F-150 Lightning is intended to be more than a no-compromise zero tailpipe-emissions truck. It’s packed with ingenious features and technology that will improve over time, it’s exhilarating to drive and it can power your home and worksite.”

Ford confirmed construction of the Rouge Electric Vehicle Center a year ago as part of an initial $700 million investment in the historic Ford Rouge Center, creating a manufacturing home for the F-150 Lightning. Now Ford’s pre-production F-150 Lightning trucks are

leaving the factory for real-world testing, with the truck available to customers next spring.

Ford’s $250 million additional investment will create 450 additional hourly direct jobs, with most of those workers assembling the F-150 Lightning at the Rouge Electric Vehicle Center. Workers at Rawsonville Components Plant will assemble the batteries and Van Dyke Electric Powertrain Center will increase its capacity to supply electric motors and electric transaxles for the F-150 Lightning.

Ford hosted government officials including Michigan Gov. Gretchen Whitmer and U.S. Rep. Debbie Dingell to celebrate Ford’s commitment to Michigan and assembling electric vehicles in Michigan as the first pre-production F-150 Lightning trucks start to leave the factory.

“We’re standing on the edge of an era of electrification that will be built in factories like this one by hardworking UAW members and the innovative minds at Ford,” said Whitmer. “I am proud of Ford for committing to invest $30 billion

in electrification through 2025, including this additional $250 million today to create 450 jobs in Dearborn, Ypsilanti and Sterling Heights supporting the production of the new F-150 Lightning. I will stay laser-focused at the state level on making investments in the future of mobility and electrification too, and together, we can create good-paying, high-skill union jobs and lead the world in electric vehicle development and manufacturing.”

The Rouge Electric Vehicle Center is in the Ford Rouge Center, which sets the benchmark for sustainable automotive assembly. This new center supports Ford’s vision of sustainable production as a zero waste-to-landfill site.

The center uses natural lighting, as well as LED lighting and the primary forklift fleet will use hydrogen fuel cells with a zero-emission profile. The Rouge Electric Vehicle Center is built on the site of the old Dearborn Assembly Plant, using its recycled foundation and construction materials.

Source: Ford Motor Company

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 59

Continued from Page 56

Spot Welding Class

Jay Flores, second generation owner of Tony’s Body Shop, was so impressed with the knowledge his techs had gained, he signed up his remaining four technicians for the same class.

(l to r) Jay Flores, Edgar Andrade, Fausto Reynoso, Gio Astidillo, Jaysen Estrada, Martin Perez Jr.

I hope when you need to take the I-CAR STRSW course, you will consider sending all your techs. It is well worth the cost to know a vehicle is being repaired properly.

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Auto Insurers Confront Rapidly Rising Claims Costs Sharply higher costs to repair and replace vehicles will cause insurance companies’ underwriting profit margins to narrow significantly, projects S&P Global Market Intelligence’s annual US Auto Insurance Market Report.

Published by S&P Global Market Intelligence’s Financial Institutions Group (FIG) Research team, the report spotlights the unprecedented effects of COVID-19 on the personal and commercial auto insurance business.

The analysis finds the benefits fromlower levels of motor vehicle travel may be as fleeting as they were significant. The number of automobile crashes is rebounding toward pre-pandemic levels, and the average cost to settle claims is rising as costs for motor vehicle body work and used vehicles increase rapidly.

“Auto insurers provided estimated premium relief of as much as $16.4 billion to their customers in 2020 as COVID-19 curtailed commuting and leisure travel,” said Tim Zawacki, principal analyst for FIG at S&P Global Mar-

ket Intelligence. “In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.”

industry underwriting profitability, will normalize in the personal and commercial auto insurance businesses in 2021 due to inflationary pressures and the year-over-year increase in the number of vehicles

Key highlights from the report include:

Greater use of technology favors more stable and predictable auto insurance results over the long term. The various ways technology will benefit the industry include increased consumer and trucker acceptance of telematics and the continued deployment of advanced safety equipment across the domestic vehicle fleet. But the industry must first navigate near-term volatility related to the pandemic.

Combined ratios, the key measure of property and casualty

on the road. Over time, the outlook assumes resolution of the underlying supply chain disruptions that are driving the rapid inflation.

Some auto insurers will continue to pursue sizeable rate increases in response to the adverse claims trends. The report projects growth in personal auto direct premiums written of 3.1% in 2021 and 5.4% in 2022. Commercial auto premiums are projected to rise 14.2% in 2021 before slowing to 8.4% in 2022.

Source: S&P Global Market Intelligence

“In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.” — Tim Zawacki

Retail Spending on Cars and Parts Surpasses All Other Sales Automotive is the single biggest retail segment in the U.S., accounting for 20%—more than $1.2 trillion— of retail spending in 2020, according to the new Retail Trends Report from SEMA Market Research. The report highlights U.S. retail spending and includes new findings on the retail side of the specialty-equipment market, including specialty-automotive shopping behavior and trends. Retail is a huge part of the U.S. economy, representing more than $6.2 trillion in 2020. While online sales are growing, it is a small slice of the total, growing to roughly 14% of total retail sales, up from 11% in 2019.

To help businesses understand automotive aftermarket retail trends by product and retail channel, as well as consumer and shopping behavior, the SEMA report contains additional findings, including: The specialty-automotive aftermarket is ahead of the curve on online sales, with just over half of the $47.89 billion spent on specialty parts in 2020 going through online retail channels. SEMA expects the share of online retail sales will level off, then return to its historical trend

of gradual growth over the next couple years. In the longer term, retailers should keep an eye on how the vehicle population evolves. Light trucks like pickups, SUVs and CUVs are expected to represent 80% of new vehicles sold through 2028. Alternative-fuel vehicles (e.g., hybrid and electric) are a small but growing share of new vehicles sold, expected to account for 25% of new vehicle sales by 2028 and 45% by 2035.

In recent years, specialty-automotive consumers have most-commonly bought parts in a “mixedmode” fashion—i.e., buying both in-person and online, with smaller portions favoring exclusively in-person or exclusively online. For many consumers, high-performance chemicals along with specialty wheels and tires represent the “gateway drugs” that can lead to more ambitious modifications to the vehicle’s appearance, performance and handling. For more data on the state of U.S retail and retail in the automotive specialty-equipment market, download the 2021 SEMA Retail Trends Report for free today at www.sema.org/research.

Source: SEMA

60 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

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Axalta Expects $40M Less in Net Sales for Q3 Due to Supply Chain Shortages, Raw Material and Logistics Constraints Axalta Coating Systems Ltd., a leading global coatings company, provided an update to third quarter and full-year 2021 financial guidance given the ongoing supply chain issues its Mobility customers are experiencing, as well as continued raw material inflation and supply chain and logistics constraints.

Axalta expects net sales for the third quarter to decrease by approximately $40 million relative to volume levels assumed in previously communicated guidance, and for adjusted EBIT to be reported between $130 million and $140 million, benefiting from positive business mix, ongoing price increases and continued cost actions.

The prior guidance for Q3 adjusted EBIT (noted as ~20% of the full year target) was $138 million at the midpoint of the range. For full-year 2021, Axalta is withdrawing its previously communicated guidance due to the uncertainty related to these factors and expected financial impacts during the fourth quarter.

Since Axalta provided its third

quarter and full-year 2021 guidance on July 26, net sales volumes have continued to be impacted by customer supply chain disruptions, most notably in the light vehicle end-market, where semiconductor chip and other supply shortages have continued largely unabated.

Industry forecasts for light vehicle production now call for these disruptions to continue into 2022, and Axalta now anticipates global production impacts to total approximately 11 million units for the full year 2021, compared with the previous assumption of 7 million units.

In addition, recent weather events in the Southeast U.S. and ongoing global raw material supply and logistics constraints have resulted in continued cost inflation and supply constraints in excess of that anticipated in previously provided guidance.

Despite the impact of Mobility customer component shortages and supply chain challenges, underlying demand in Performance Coatings end-markets remains strong. Inventory on hand in customer channels remains below normal levels, which Axalta expects will support a net sales recovery as COVID-19-related impacts and supply chain dynamics ease over time.

Axalta expects net sales volumes in both Refinish and Industrial end-markets to remain consistent with previously communicated guidance. On a consolidated basis, Axalta believes strong global demand, supported by active growth initiatives, and a focus on addressing inflationary pressures with price increases, will support a continued recovery in both net sales and profit during 2022 and beyond.

Source: Axalta

ASA Announces New Membership Model The Automotive Service Association (ASA), the oldest and largest association representing the independent automotive repair industry, announced Sept. 27 it is transitioning to a new and innovative association model leveraging its expansive history to create a single, unified industry voice.

Insights from industry innovation, technology transformations and public policy continue to impact the businesses of ASA members, making it imperative for the association to refine its membership offering to better meet members’ needs.

Implementing a new model not only simplifies and expands member benefits around advocacy, education and communication, but will also help drive the association’s impact and influence.

Under the new model, existing state affiliate agreements will be dissolved, and a 50-state regional structure will take their place.

Source: Automotive Service Association

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©2021 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 61

Cox Automotive Forecast: New-Vehicle Sales Stall in September September U.S. auto sales are forecast to be significantly hampered by an ongoing lack of new-vehicle inventory.

According to a forecast released Sept. 27 by Cox Automotive, the pace of auto sales, or seasonally adjusted annual rate (SAAR), is expected to finish near 12.1 million, the slowest pace since May 2020, when much of the country was closed during the first wave of the COVID-19 pandemic.

The September sales pace will be down from August’s 13.1 million pace and down from the September 2020 pace of 16.3 million.

Sales volume is forecast by Cox Automotive to come in near a notably low 1 million units. The low volume expectations for September put the month on course to be among the worst in the past decade. Sales volume is expected to be down nearly 26% from last September and down 8.5% from last month.

The sales pace in the U.S. market has fallen every month since reaching a peak of 18.3 million in April.

“After a strong spring selling season, the supply situation has wors-

ened precipitously and is dragging sales down with it,” said Cox Automotive Senior Economist Charlie Chesbrough. “The monthly declines have been large—the sales pace has declined by more than a million units in each of the past five months.

Available supply on dealer lots is now 58% lower than last September, down nearly 1.4 million units.”

The new-vehicle supply shortage is impacting the market in many ways. Manufacturers have cut back significantly on incentives, and transaction prices have risen as a result. In addition, the lack of new-vehicle inventory is steering many dealers and consumers into the used-vehicle market, resulting in higher prices for both wholesale and retail used vehicles.

Q3 2021: The Auto Industry Finds the Bottom With lower sales forecast for September, the third quarter of 2021 is forecast to finish with auto sales down 14% versus Q3 2020 and down 22% compared to the same period in 2019. Cox Automotive will officially revise its full-year forecast, with new projections scheduled to be released

Sept. 30.

The underlying economic conditions in the U.S. are currently healthy enough to support higher new-vehicle sales levels. The demand is there.

Inventory levels, however, are the unique problem facing the automotive market right now, with disruptions to the global supply chain challenging all automakers, severely impacting available inventory, and pushing many would-be buyers out of the market.

In recent research by Cox Automotive’s Kelley Blue Book team, nearly half of would-be buyers indicated in August they will likely step back from the market, many for three months or more.

Inventory conditions, however, are anticipated to improve in the coming months.

“The expectation is that OEM supply issues will improve such that Q4 should have better selling SAARs than the September rate, but that doesn’t mean good selling rates,” said Chesbrough. “Vehicles are getting produced, and some OEMs have improved their supply situation. In recent months, OEMs seem to be

managing the situation better now that they’ve had time to adjust. For example, automakers are improving their ability to redirect existing chips to the most important vehicles in their portfolios. This strategy should support better sales in the fourth quarter compared to the third quarter.”

September 2021 Sales Forecast Highlights New light-vehicle sales are forecast to fall to 1 million units, or down 357,000 units, nearly 26% from last year. Compared to last month, sales are expected to fall 92,000 or nearly 8%.

The SAAR in September is estimated to be 12.1 million, down from last September’s early COVID recovery pace of 16.3 million and down from August’s 13.1 million supply-constrained level.

No segment saw a sales increase in September with the Mid-Size Cars and Compact SUV/Crossover segments seeing the largest year-overyear decreases at -41.0% and -33.7%, respectively.

Source: Cox Automotive

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NICB Releases Annual ‘Hot Wheels’ Report: America’s Top 10 Most Stolen Vehicles The National Insurance Crime Bureau (NICB) on Oct. 12 released its annual Hot Wheels report identifying the top 10 most stolen vehicles in the U.S. in 2020.

For the second year in a row, the Ford full size pick-up was the model most targeted by thieves, followed by the Chevrolet full size pick-up, which supplanted the formerly second-place Honda Civic.

“Auto thefts saw a dramatic increase in 2020 versus 2019 in part due to the pandemic, an economic downturn, law enforcement realignment, depleted social and schooling programs and, in still too many cases, owner complacency,” said David Glawe, president and CEO of the NICB. “For many people, a car is the second largest investment they will ever make behind a home. No matter what kind of vehicle you have, take steps to protect your investment—lock your car and take your keys.”

Thefts for all models in the top 10 were up in 2020 compared to 2019, but only Ford, Chevrolet and GMC full size pick-ups and the Honda CR-V saw double digit theft

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increase percentages. In this year’s list, six of the top 10 most stolen vehicles were Japanese models.

Top 10 Stolen Vehicles in 2020 (number of thefts, most common model year stolen) 1. Ford full size pick-up: 44,014; 2006 2. Chevrolet full size pick-up: 40,968; 2004 3. Honda Civic: 34,144; 2000 4. Honda Accord: 30,814; 1997 5. Toyota Camry: 16,915; 2019 6. Nissan Altima: 14,668; 2020 7. GMC full size pick-up: 13,016; 2005 8. Toyota Corolla: 12,515; 2020 9. Honda CR-V: 12,309; 2000 10.

Dodge full size pickup:11,991; 2001 The annual Hot Wheels report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2020.

To guard against thefts of vehicles, NICB recommends drivers

follow these four layers of protection to guard against vehicle theft: Common sense—the common-sense approach to protection is the easiest and most cost-effective way to thwart would-be thieves. You should always remove your keys from the ignition, lock your doors/close your windows and park in a well-lit area.

Warning device—the second layer of protection is a visible or audible device which alerts thieves that your vehicle is protected.

Popular devices include audible alarms, steering column collars, steering wheel/brake pedal lock, brake locks, wheel locks, theft deterrent decals, identification markers in or on vehicle, VIN etching and micro dot marking.

Immobilizing device—the third layer of protection is a device which prevents thieves from bypassing your ignition and hot-wiring the vehicle. Some electronic devices have computer chips in ignition keys. Other devices inhibit the flow of electricity or fuel to the engine until a hidden switch or button is activated. Some examples

are smart keys; fuse cut-offs; kill switches; starter, ignition and fuel pump disablers; and wireless ignition authentication.

Tracking device—the final layer of protection is a tracking device which emits a signal to police or a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles.

Some systems employ “telematics” which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner and the vehicle can be tracked via computer.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422) or submitting a form at www.nicb.org/how-wehelp/report-fraud Source: NICB

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Average New-Vehicle Transaction Prices Top $45,000 for First Time New-vehicle prices hit another alltime high in September 2021, marking the sixth straight record-setting month and surpassing $45,000 for the first time, according to a new report from Kelley Blue Book.

At $45,031, the average transaction price (ATP) for a new vehicle was up 12.1%—or $4,872—from one year ago in September 2020 and up 3.7%—or $1,613—from August.

The all-time-high prices accompanied the fifth straight month of a slowing sales pace. Total sales last month numbered just 1,012,797, a 7.3% month-overmonth decrease and one of the lowest volumes in the past decade.

On top of supply dynamics, the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market.

“The record-high prices in September are mostly a result of the mix of vehicles sold,” said Kayla Reynolds, analyst for Cox Automotive. “Midsize SUV sales jumped in September compared to

August and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated.”

Incentive spending fell in September to another record low, dropping to 5.2% of ATP last month, a decrease from 5.6% in August and well below the 10.0% of ATP recorded in September 2020.

Porsche, Land Rover, Genesis, Subaru and Toyota had among the lowest incentive spend last month,

all 3% of ATP or lower. On the other hand, Alfa Romeo, Buick, Fiat and Infiniti each had incentive levels above 10% of ATP.

ATPs in September continued to be driven higher by strong luxury vehicle sales. Luxury sales accounted for 16.6% of total market sales, up from 15.1% in September 2020. Luxury share in September was among the highest in the past decade, and luxury buyers paid an average of $60,845 for a new vehicle last month.

Further, many luxury brands, notably Acura, Cadillac, Genesis and Mercedes-Benz, achieved year-over-year ATP gains in excess of 20%. Cadillac, for example, saw ATPs jump up more than 32% in September, reaching $81,939. Consumers continue to pay nearly $100,000 for a new Cadillac Escalade. More than 3,500 were sold in September, a jump of more than 50% from August.

Source: Kelley Blue Book

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