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Student at Georgia Technical College Receives NABC Pride Award at SEMA Show 2011 The National Auto Body Council (NABC) announced the winners of the 16th annual Pride Awards on Novem-
Jessica Anderson (center) and Instructor Mark Whitson (2nd from left) received a “Pride Award” at SEMA 2011. Representing the NABC are (from left) Bob Keith, Stacy Bartnik and Janet Chaney
ber 2 at the 2011 SEMA Show. The NABC began bestowing the awards on deserving individuals in the collision repair industry to further their mission to create positive public awareness of the collision repair industry. Jessica Anderson, a student of collision repair at Wiregrass Georgia Technical College, was the only student to receive a Pride Award this year. Anderson is a Skills USA participant who decided she wanted to use her collision training to help people in her community. She observed plenty of
Voices Heard Amid Revving Engines at SEMA, What the Collision Repairers Said and Heard by John Yoswick
See Pride Awards, Page 11
California Court Grants Joint Motion to Dismiss Perez et al. Aftermarket Antitrust Case, Allows Plaintiffs to Refile Case
sidiaries as named defendants and alleged that the auto insurers set up a sham organization to prevent competition over auto repair parts. U.S. District Judge James Ware said in the ruling that because the plaintiffs never paid insurance premiums directly to the wholly owned subsidiaries, they did not suffer any financial injury at the hands of the subsidiaries, and therefore have no standing to bring a class action against them under Article III of the U.S. Constitution. The plaintiffs filed suit against the insurance companies and CAPA in 2006. Named plaintiffs Sarah Perez, See Antitrust Dismissal, Page 19
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A California federal judge granted a joint plaintiff and defendant motion to dismiss an antitrust class action against State Farm Mutual Automobile Insurance Co. and other insurers Nov. 15, saying the plaintiffs do not have standing to sue several wholly owned subsidiaries of the insurance companies. The plaintiffs had filed a fourth amended complaint in July against State Farm, Allstate Indemnity Co., Geico General Insurance Co., Liberty Mutual Fire Insurance Co. and the Certified Automotive Parts Association (CAPA), a purported independent regulatory body created by the auto insurers. The complaint added the sub-
VOL. 2 ISSUE 10 DECEMBER 2011
One of three SEMA Show Halls hosting 2,000 vehicles and 135,000 attendees
When you read a sampling of comments from among the 135,000 people in Vegas during SEMA week—no matter how you look at it—SEMA has all the diversity of a small city. A city where, for love or profit, all the citizens share a car obsession, but it’s a city-sized population nonetheless. About 132,000 people flooded into Las Vegas in November for the Specialty Equipment Market Association (SEMA) tradeshow, with about half of those pegged by show organizers as “buyers.” That’s about a 17 percent jump in show attendance over last year. They could have spent a day just checking out the approximately 2,000 cars on display in and in front See SEMA Heard & Said, Page 30
California DOI Meeting Addresses Regulations Affecting Aftermarket Parts and Accountability by Ed Attanasio
In the first major policy meeting directly affecting the collision repair industry, representatives of Insurance Commissioner David Jones called a pre-notice public meeting for discussions on regulations regarding standards for reasonable repairs and the use of aftermarket parts on November 16th in San Francisco. In preparation for the “pre-notice public discussions,” the Commissioner released a series of proposed revisions to the California Code of Regulations that was discussed and reviewed in depth at the meeting. In approximately 45 days, Jones and his department will issue an official Notice of Proposed Action. The meeting was chaired by Teresa A. Campbell of the DOI’s Legal division and attended by 50–60 invitation-only repairers, insurers, and representatives of both OE and Aftermarket parts manufacturers. In a letter to invited participants sent to body
shops, insurers and aftermarket parts vendors and manufacturers, the Commissioner’s office wrote: “The purpose of these discussions is to permit certain interested and affected persons an opportunity to present statements or comments with respect to the attached draft regulations text.” The draft regulations largely pertain to the specification and use of aftermarket parts, but also include new requirements for adjusting estimates as well as consumer disclosures and remedies in the event that a defective part is used for a repair. See sidebar. Gene Crozat, the owner of G&C Auto Body with seven Northern California locations, attended the meeting and and offered his perspective. After reviewing the proposed changes, Crozat recognizes that the Commissioner is addressing a volatile subject and questions some of the language within the contemplated revisions. See DOI Meeting, Page 33
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Contents
NATIONAL 13 Las Vegas Families Receive Gift of Reliable Transportation this Year at SEMA With Recycled Rides . . . . . . . . . 31 Aftermarket Associations Complain to FTC About Mazda’s Claims Regarding Warranty Policy . . . . . . . . . . . . . . . . . . 25 Aftermarket Legislative Summit Opens
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Lee Amaradio, Toby Chess, Mike Causey, Dan Espersen, Tom McGee, Jeff Webster, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Southeast
COLUMNISTS Chess - Keenan Auto Body’s First Responder Training Brings Together PA & DE Communities . . . . . . . . . . . . . . . . . . . . 16 Franklin - Use Estimator Tactics to Close the Sale . . . . . . . . . . . . . . . . . . . . . . . . 24 Gesterkamp - How Lucky Do You Feel?— Durability of Back-Taped Edges . . . . . . 17 I-CAR - How to Work With Active Grille Shutters on a 2012 Ford Focus . . . . . . 12 Insurance Insider - Industry Undecided Which Will Prevail in NACE vs. SEMA. . 28 Sisk - Clarktown International Collision Credits BASF with Increased Productivity. 38 Weaver - Are We Crossing Into the ‘Outer Limits’ of Automotive Repair? . . . . . . . 23 Williams - Southeast Toyota Distributors (SET) Embraces Industry Changes to Help Dealers Stay Competitive . . . . . . . 18 Yoswick - CIC Committee and I-CAR Respond to Association Statement on ‘Industry Standards’ . . . . . . . . . . . . . . 13 Zurada - How to Prepare, File and Win a Claim in Small Claims Court . . . . . . . . 26
Registration . . . . . . . . . . . . . . . . . . . . . 33 ALLDATA Celebrates 25 Years of Business. 39 ASRW 2011: Attendance Up 18%, Positive Feedback from Exhibitors . . . . . . . . . . . 29 Automotive Service Association (ASA) Approves New Replacement Crash Parts Policy . . . . . . . . . . . . . . . . . . . . . 19 Barrett-Jackson President’s Custom Ford Fairlane Garners $700K . . . . . . . . . . . . 32 BodyShopBids.com Processes $1.5 Million in Estimates in 5 mos. . . . . . . . . . . . . . 32 Boyd-Gerber-True2Form Group Reports 41% Sales Increase . . . . . . . . . . . . . . . 32 California Court Grants Joint Motion to Dismiss Perez et al. Aftermarket Antitrust Case, Allows Plaintiffs to Refile. . 1 California DOI Proposes Regs Affecting Aftermarket Parts and Accountability . . . 1 Chief Donates Frame Rack to Operation Comfort Automotivation Program for Wounded Warriors. . . . . . . . . . . . . . . . 35 CIECA Advises on Progress of Total Loss Committee. . . . . . . . . . . . . . . . . . . . . . 10 Collision Repairer Wins Welder at SCRS SEMA Booth . . . . . . . . . . . . . . . . . . . . . 8 Delphi Goes Public at $22 a Share . . . . . . 14 Gerber Collision & Glass Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation . 11 Hot Rod Industry Alliance (HRIA) Sponsored Pinewood Drag Races Light Up 2011 SEMA Show . . . . . . . . . . . . . . . . . . . . 37 Honda Civic Natural Gas Wins Green Car of the Year Award. . . . . . . . . . . . . . . . . 19 Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members. . . . . . . . . . . . . . . . . . . . . . . 29 SCRS and Collision Industry Raise over $3,200 for Operation Comfort’s Automotivation Program at the 2011 SEMA Show . . . . . . . . . . . . . . . . . . . . 37 SCRS Joins with Leading Collision Repair Organizations to Release Joint Position Statement on Collision Repair Standards . 34 SEMA Announces New Product Showcase Award Winners . . . . . . . . . . . . . . . . . . 36 Sherwin-Williams Donates $12,000 in Product to Collision Repair Education Foundation 2011 Makeover Applicant Schools . . . . . . . . . . . . . . . . . . . . . . . . 17 Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best Practices for Shops . . . . . . . . . . . . . . . 39 Supplier Price-fixing Litigation May Play Out in Detroit . . . . . . . . . . . . . . . . . . . . 22 Voices Heard Amid Revving Engines at SEMA, What the Collision Repairers Said and Heard . . . . . . . . . . . . . . . . . . . 1 White and Silver Most Popular Car Colors in the World . . . . . . . . . . . . . . . . . . . . . 10 Women Drivers at Greater Risk in Car Crashes, Says Study. . . . . . . . . . . . . . . 29 Women’s Board Car Care Council Holds Reception at AAPEX 2011, Awards Industry Leaders . . . . . . . . . . . . . . . . . 10
Indexof Advertisers
REGIONAL ABRA Auto Body & Glass Partners With Investment Firm to Continue Planned National Expansion . . . . . . . . . . . . . . . . 4 Albany Technical College in Albany, GA, Raffles Off Car Repaired by School’s Collision Students . . . . . . . . . . . . . . . . . 4 Chaney Re-elected Mississippi Insurance Commissioner . . . . . . . . . . . . . . . . . . . . 6 Daimler to Produce Additional Model at the Mercedes-Benz Tuscaloosa, AL, Plant . . 8 FACA’s Cathy Mills Speaks to Girl Scouts at NACE Show About Careers in the Collision Industry. . . . . . . . . . . . . . . . . . . . . . . . . 6 FACA’s Polk County Chapter, Auto Angels on Target for Christmas Giveaway of Reconditioned Vehicles . . . . . . . . . . . . . 4 Five Florida Families Receive Recycled Rides at NACE . . . . . . . . . . . . . . . . . . . . 7 FL May Train More Troopers to Investigate Accident Scenes . . . . . . . . . . . . . . . . . . 6 FL’s Collex Collision Experts Wins CSi Complete Award at SEMA . . . . . . . . . . . . 7 Insurer Group Urges FL to Curb Auto Insurance ‘Fraud Tax’ . . . . . . . . . . . . . . . 6 More ‘Unfit’ Floridians Having Licenses Revoked . . . . . . . . . . . . . . . . . . . . . . . . 8 State Farm Lowering Rate Level in GA by 2.2 Percent . . . . . . . . . . . . . . . . . . . . . . 8 Student at Georgia Technical College Receives NABC Pride Award at SEMA Show 2011 . 1 Trademark Metals Acquires Georgia Dealer. 8
Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
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Arrigo Dodge-Jeep-Chrysler. . . . . . . 8
Mazda Wholesale Parts . . . . . . . . . 33
Autoland Scientech. . . . . . . . . . . . . 23
Mercedes-Benz Wholesale Parts
Bill Penney Toyota. . . . . . . . . . . . . . 19
MOPAR Wholesale Parts Dealers . . 13
Classifieds. . . . . . . . . . . . . . . . . . . . 39
Nissan Wholesale Parts Dealers. . . 30
BASF . . . . . . . . . . . . . . . . . . . . . . . . . 9
BMW Wholesale Parts Dealers . . . . 11
Crown Hyundai . . . . . . . . . . . . . . . . . 2
Dealers . . . . . . . . . . . . . . . . . . . . 28
Nalley BMW. . . . . . . . . . . . . . . . . . . 10
Palmers Toyota . . . . . . . . . . . . . . . . 24
Delray Honda . . . . . . . . . . . . . . . . . 18
Porsche Wholesale Parts Dealers . 35
Equalizer Industries . . . . . . . . . . . . . 7
Serra Mazda . . . . . . . . . . . . . . . . . . 25
Don Reid Ford. . . . . . . . . . . . . . . . . 11 Ford Wholesale Parts Dealers
FL, GA, AL, MS . . . . . . . . . . . . . . 40
Galloway Mazda . . . . . . . . . . . . . . . 13
Garmat USA . . . . . . . . . . . . . . . . . . . 4
Safety Regulation Strategies . . . . . 14
Shop-Pro Equipment . . . . . . . . . . . 15
South Motors . . . . . . . . . . . . . . . . . . 5
Southtowne Hyundai . . . . . . . . . . . 17
Subaru of Gwinnett . . . . . . . . . . . . . 29
Global PDR Solutions . . . . . . . . . . . . 6
Subaru Wholesale Parts Dealers . . 37
Honda-Acura Wholesale Parts
Toyota Wholesale Parts Dealers . . . 32
Gus Machado Ford . . . . . . . . . . . . . 16 Dealers. . . . . . . . . . . . . . . . . . 20-21
Hyundai Wholesale Parts Dealers . 31
Kia Motors Wholesale Parts Dealers. 27
Tameron Hyundai . . . . . . . . . . . . . . 12
Volkswagen Wholesale Parts
Dealers . . . . . . . . . . . . . . . . . . . . 36
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 3
FACA’s Polk County Chapter, Auto Angels on Target for Christmas Giveaway of Reconditioned Vehicles A mid-year update from the Florida Auto Collision Alliance (FACA) reveals that the “Auto Angels” are on target for this year’s Christmas giveaway of reconditioned vehicles to needy recipients. “Thanks to the support of many sponsors and the collision repairers involved in this program, thus far we have five vehicles which will be ready at the end of July,” said David Stewart of Stewart’s Auto Repair in Winterhaven, FL. The donated vehicles include a: • 2001 Ford Escort four-door • 1999 Neon four-door • 2002 Chrysler Voyager van • 2001 Grand Marquis • 1991 Nissan Pathfinder SUV Auto Angels’ goal is to have 14 to 15 vehicles ready for this year’s Christmas giveaway. They’re currently seeking donor vehicles and are in discussions with several insurers and others in hopes of getting suitable vehicles as well as sponsors for cash and/or material donations. Stewart stated, “We’re excited as to what this year offers. Last year
was a great success and people are still talking about what a blessing it was to both the recipients as well as those who were responsible for making it happen. This year we’ve enjoined the local chapter of FACA with the intent to make it even bigger with a goal of presenting up to 15 vehicles.” Participating Florida businesses include: • Bernie’s Body Shop (Lakeland) • Ben’s Paint Supply (Lakeland) • Winter Haven Honda • Douglass Collision (Lakeland) • Gunder’s Auto Center (Lakeland) • LKQ-Auto Parts (Brandon) • All-Pro Used Auto Parts (Auburndale) • Jenkins Lincoln Mercury (Lakeland) • Meisner’s Paint & Body (Lakeland) • NAPA Auto Parts (Lakeland) • 1-800 Radiator (Central Florida) • Stewart Auto Repair (Winterhaven) • Maurice’s Auto Body (Lakeland) • Watkins Motor Lines (Lakeland) For more information please contact David Stewart at david@stewartautorepair.com or (863) 965-2030.
ABRA Auto Body & Glass Partners With Investment Firm to Continue Planned National Expansion
Palladium Equity Partners, LLC, a private investment firm, announced November 7 that it has partnered with management to recapitalize ABRA Auto Body & Glass, a leading national provider of vehicle damage repair services. Terms of the transaction were not disclosed. Founded in 1984, ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement with 75 company-owned vehicle damage repair centers and 38 franchised centers in 12 states. ABRA distinguishes itself by providing a solution that seeks to enable its insurance company partners to substantially improve customer satisfaction and drive policyholder retention, while simultaneously reducing repair costs and realizing substantial efficiencies in the claims management process. ABRA’s commitment to operational excellence allows it to consistently offer high quality service to its customers and insurance partners. Rollie Benjamin,ABRA’s founder, will remain Chairman of the Company and Tim Adelmann and Scott Krohn will continue in their senior executive roles. Duane Rouse, ABRA’s President
and Chief Financial Officer, was appointed Chief Executive Officer in connection with the transaction. Rouse said, “We are extremely pleased to be working with Palladium, a firm with a strong track record as an investor and many years of experience helping companies grow. With this partnership in place, we are well-positioned to accelerate our national expansion plan, and to further our mission of becoming the leading auto body and glass company in America.” Luis Zaldivar, a Managing Director at Palladium, said “ABRA is well-known throughout the industry as a premier provider of auto body, auto glass and paintless dent repair services. But it is ABRA’s innovative service model and deep insurance industry relationships that truly set it apart. The Company has a terrific management team that has guided its organic growth over the course of nearly three decades—including through the establishment of a highly successful franchise program. Palladium looks forward to partnering with ABRA on a range of new market opportunities in the months and years ahead.” For more information please visit www.palladiumequity.com or www.abraauto.com.
4 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Albany Technical College in Albany, GA, Raffles Off Car Repaired by School’s Collision Students One Albany, GA, resident is driving a new car she won at a raffle at Albany Technical College on October 28, according to WALB News Albany GA. The 1991 Nissan Maxima parked in front of the Kirkland Conference Center now belongs to Maggie Griffin. Before Griffin took the keys, the school owned the car, but when they got it there was some work to do. And who better to do it than the automotive repair and automotive collision programs at the college? “Very elated—I’m ecstatic,” said Griffin. She won it by entering a raffle, but while the odds weren’t necessarily in her favor, she felt fairly confident about her chances. But this car is more than just an extra vehicle for the Griffin family. She said, “the neat thing about this car is not necessarily its color, although I think it’s pretty cool, it’s how it came to look how it does today.” The students combined their skills to make the car look, and run, nearly as new. Student Instructor Elliott Bonds did the paint work. He
said “it took me about a month and a half to finish that car.” The skills being learned here by the 40 or so students working under Bonds should translate into jobs when they’re out in the workforce. Bonds said, “there are many fields you can go into with this degree. Because you can go into the painting part of the auto body, you can go into the body, the collision repair part of it as well as you can go into the detail end of it.” About 700 tickets were sold for the raffle and the proceeds went to the Albany Technical College foundation. Albany Tech met or exceeded many of its goals this fiscal year, including student retention, graduation and full-time equivalents. The job placement goal of 95 percent fell a bit short at 79.1 percent, though graduations were at 64.2 percent, exceeding the goal of 60 percent. From 3,718 students during the summer semester of 2010, enrollment at the college has increased each subsequent semester to a total of 4,562 for the fall of 2011.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 5
FL May Train More Troopers to Investigate Accident Scenes
Florida’s top highway safety official wants to put more troopers who specialize in investigating highway fatalities out on the road, according to reports made by Insurance Journal. Highway Safety and Motor Vehicles Director Julie Jones told members of the Florida Cabinet this week that she wants to train all troopers on how to investigate simple fatalities that involve a single car, such as when a car crashes into a tree. Jones said that will save time by allowing a trooper who responds to an accident to begin an investigation immediately, rather than wait for an investigator. Jones said the current class at the academy is being trained to investigate simple fatalities. Starting in February, current troopers will start attending a special school to get the extra training on investigating accidents.
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Chaney Re-elected Mississippi Insurance Commissioner
Insurance Commissioner Mike Chaney won re-election in voting on November 10 in Mississippi, according to Insurance Journal. Chaney, a Republican from Vicksburg, defeated Democrat Louis Fondren of Gautier and Reform Party candidate Barbara Dale Washer of Hattiesburg. Chaney, 67, was first elected commissioner in 2007. Chaney counted among his achievements digitizing department records, updating the agency’s website, recruiting 140 new insurance companies to the state, completing a hurricane wind mitigation study, helping create a $20 million grant-based mitigation program for Gulf Coast homeowners and giving back policyholders more than $11 million. He also said the insurance department had recovered nearly $154 million related to jailed financial swindler Martin Frankel. Although opponents had charged more could be done to keep insurance rates low in Mississippi, Chaney was successfully re-elected to his post as Insurance Commissioner.
FACA’s Cathy Mills Speaks to Girl Scouts at NACE Show About Careers in the Collision Industry The Girl Scouts of Citrus Council joined the industry on the NACE show floor Saturday, October 8th from 9:00 am to 12:00 pm. The girls met with female leaders in the industry, learned about the influential and transformative work being done by women in this field and explored the expo floor searching for those unique “tools for success” our industry has to offer. Among the women who spoke to the girls was Cathy Mills, Executive Director of the Florida Auto Collision Alliance (FACA). Mills stated, “I had the opportunity of giving them the opening talk on Saturday morning. With my mother, myself, and my daughter as Girl Scout troop leaders it was a privilege to speak to the girls about diverse career opportunities available in this industry. Speaking to them about a bit of my history in the industry and my journey from a parts driver to the executive director of the FACA. How as long as you give whatever you do 110% you can succeed at anything. I have always been passionate about education and supporting women in the industry.”
This year Collision Hub, who has put the event on for the last two years, also added a panel discussion and lunch hosted by LKQ where the Girl Scouts had a chance to meet with and hear from leaders in the industry on topics ranging from the science behind the collision repair industry to the diverse career opportunities available. Girl Scouts: Tools for Success was powered by Enterprise Rent-ACar and was made possible by the generous sponsorship of companies at every level of the collision repair industry. For more information about this program please visit www.collisionhub.com.
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Insurer Group Urges FL to Curb Auto Insurance ‘Fraud Tax’
Florida should allow more time for looking into suspicious claims, place a cap on attorneys’ fees and more closely regulate medical clinics to help reduce rampant fraud in the state’s personal injury protection (PIP) auto insurance system, an insurer trade group says. The Property Casualty Insurers Association of America (PCI) has released a report detailing what it sees as the problems with the current PIP provision in its no-fault auto insurance law and offering several legislative proposals. “The bottom line is that if PIP is not transformed this year, Florida will continue to lead the country in questionable automobile claims, inviting even more criminal activity and putting Florida’s consumers and businesses at risk,” said Paul Blume, PCI’s senior vice president in charge of state government relations. Based on Florida Office on Insurance Regulation data, Florida drivers pay the highest amount for auto liability in the country at an annual cost of $736 as opposed to $471. The state’s claim frequency has also risen by 19.2 percent since 2006 as opposed to the one percent increase in states that have a pure tort system. Likewise, Florida’s average PIP claim cost is outpacing the increase in health care
costs by 31.1 percent as opposed to 6.4 percent. The number of PIP related lawsuits has also increased from some 6,000 cases in 2006 to over 28,000 last year. Blume said action by lawmakers is needed to change the situation. PCI is making four specific legislative proposals, including allowing more time to investigate suspicious claims and placing caps on claimant attorney fees. The association also recommends that there should be more oversight of medical clinics by allowing on-site inspections to ensure they are performing the services they bill for and reduce utilization by establishing reasonable treatment limits. “By passing legislation in the upcoming 2012 legislative session that includes these four vital components, the legislature will help close loopholes that prevent regulators and the marketplace for investigating and fighting fraud,” said Blume. Florida has been struggling with the state’s no-fault law for several years. In 2007, lawmakers briefly let the bill repeal only to find themselves reinstating it due to pressure from trial lawyers and medical providers. Next year, however, the battle is expected to continue. Gov. Rick Scott has put the issue at the top of his legislative agenda with the goal of making the coverage optional.
6 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
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Five Florida Families Received NABC and FACA-Sponsored Recycled Rides at NACE The National Auto Body Council (NABC) changed the lives of five Florida families on Oct. 7 at the NACE convention in Orlando by giving them each a newly refurbished vehicle through Recycled Rides, a national initiative that refurbishes donated vehicles and gives them to families in need and organizations dedicated to assisting others. The Florida Autobody Collision Alliance (FACA) contributed to the success of this program this year. With NACE being held in Orlando, Cathy Mills, FACA’s executive director, was contacted to assist in the coordinating for this year’s program. These families were using public transportation and spending anywhere from 3-6 hours a day on buses. The program works with charities in specific geographic areas to find qualified recipients that need a vehicle on which they can depend to continue leading productive lives. Marenza Guyos and her fouryear-old daughter from Jacksonville, FL, received their vehicle in conjunction with the charity Community Con-
nections located in the same city. Two recipient families are graduates of Family Promise of Orlando, a non-profit interfaith network that provides support to families in crisis. The first of these, the Fox family, consists of a mother and father and four children, three of which have special needs that require frequent doctors’ appointments that are difficult to keep when public transportation is the only option. The Yates family was the second Family Promise recipient. They moved to Florida to take care of a sick aunt. After experiencing initial difficulty finding full-time jobs, both parents are now employed and have saved enough money to move into a home with their 16- year old daughter. However, a lack of reliable transportation continues to impede their economic progress, forcing them to spend a disproportionate amount of time shopping for groceries, running errands and going to doctors’ appointments. Vehicles for the other two recipient families were facilitated by
the charity Wheels for Success. Diana is a mother of three children, ages five, six, and eight. She needed a vehicle for a variety of reasons: transporting her children to school, bringing her father to doctor’s appointments, and getting to and from school where she is getting an education that will help her better her family’s prospects. The second Wheels for Success recipient family is headed by Michael and Ivy Rossi, who have two children, ages six and eight. Michael is physically disabled and receives state assistance. This vehicle will help the family get back on their feet. Esurance and Allstate were the contributing insurance companies that made available the vehicles to be repaired. The collision repair facilities that did the work are NABC members Sterling Autobody Centers, Sunbeam Auto Body, and Autobody Resurrection CARSTAR. “The five families in Orlando are just a fraction of the 150 families who will receive the gift of reliable transportation from Recycled Rides this
year,” said Nick Notte, Recycled Rides co-chairman and president of Sterling Autobody Centers. “That’s 150 families who will receive the opportunity to make better lives for themselves through the intra-industry efforts of the program. I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry in general.” Recycled Rides® is a community awareness project whereby members of the NABC repair and donate refurbished vehicles to families and service organizations in need throughout the United States. A green program, Recycled Rides® recruits auto body shops, insurers, paint suppliers and parts vendors to contribute in their own specific ways. NABC and FACA are a nonprofit organization dedicated to enhancing the image of the collision industry. Ongoing and continued success of these programs is a direct result of the efforts and support of their sponsoring companies and membership.
Florida MSO Collex Collision Experts Wins CSi Customer Satisfaction Award at SEMA Collex Collision Experts, a multi-shop operation with facilities in Michigan and Florida, was awarded CSi Complete’s “Clearly Elite” award for customer satisfaction at the 2011 SEMA Show.
CSi Complete presented its “Clearly Elite Award” to John Gagliano, CEO of Collex Collision Experts which operates 15 shops in Michigan and Florida. The annual award, presented in Las Vegas in November by CSI Complete’s David Merrell, honors a CSi Complete client based on consistent high customer satisfaction indexing (CSI) and creative application of CSI.
“CSi Complete is blessed to have many outstanding customers, but Collex Collision is most deserving of our 2011 Clearly Elite customer of the
year award,” said David Merrell, vice president of sales and service for CSi Complete. “Collex Collision Experts is a valued partner and an exceptional customer service organization.” Merrell went on to say that the MSO won the award as a result of the company’s continuously high customer service indexing (CSI) and its community involvement. “It’s a true pleasure to be in an industry that allows me to not just serve people, but give me the opportunity to get to know people’s needs on a much more personal level, always building effective healthy relationships,” said Amanda Gottschling, CSR at Collex in Clinton Township, MI. Collex serves its surrounding communities by always giving back. Founders of the Wheels of HOPE Outreach program, Collex gives cars to families in need. They’re also platinum sponsors and partners with Safe Haven 4 Kids of Michigan, a program to help abused children. For more information visit www.collex.com.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 7
State Farm Lowering Rate Level in GA by 2.2 Percent
More ‘Unfit’ Floridians Having Licenses Revoked
State Farm Mutual Automobile Insurance Co. will cut its rate level in Georgia by an average of 2.2 percent as of Nov. 21, according to the Atlanta Business Chronicle. The company said that will save its Georgia auto customers $23.2 million annually. The Georgia Insurance and Safety Fire Commissioner’s office said State Farm’s rate cuts are not due to any mandate from the state. “No pressure was applied by the Georgia Insurance Department to State Farm; this was a market decision that they made on their own,” a spokesman for the commissioner said. “At this time, no other major insurers in Georgia have taken such an action, but our department is hopeful that this is a trend.” State Farm insures about 20 percent of drivers in Georgia. Following the rate change, State Farm’s overall rate level in Georgia will be 11.9 percent lower than it was seven and a half years ago. Overall premium changes for individual motorists will vary depending on which coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven, the insurer said.
The number of Floridians who have had their driver’s licenses revoked because they are deemed physically or mentally unfit has more than doubled in the last decade, according to reports made by Insurance Journal. State figures show the main reasons many lose driving privileges are related to dementia, stroke and seizures. The South Florida Sun Sentinel reported that a little-known Florida law allows anyone to notify the state about motorists with physical or mental conditions that might impact their driving. Many revocations started with reports from family members. Last year, the Florida Department of Highway Safety and Motor Vehicles revoked 7,716 licenses for medical reasons compared to 3,559 in 2000.
Trademark Metals Acquires Georgia Dealer
Collision Repairer Wins Welder at SCRS SEMA Booth
Trademark Metals Recycling LLC (TMR), an operating division of the David J. Joseph Company (DJJ), has purchased the assets and business of Rice Iron & Metals, Valdosta, GA. TMR, headquartered in Tampa, FL, operates more than 20 scrap metal recycling facilities in Florida. The company says it is the largest scrap metal recycler in the Southeast. DJJ, based in Cincinnati, is a subsidiary of steelmaker Nucor Corp., Charlotte, NC. In addition to purchasing Rice Iron & Metals, TMR also announced it has opened a new scrap metal recycling facility in Sanford, FL. According to a DJJ news release, the acquired location and the new facility will process both ferrous and nonferrous scrap metal. The company says the addition of the two facilities “demonstrates DJJ’s commitment to expanding its existing regional recycling platforms.” In total, DJJ operates 61 scrap recycling facilities and seven U-Pull&-Pay self-service auto parts stores in the United States.
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SCRS and its Repairer Driven Education (RDE) series created plenty of excitement on their own from November 1-4 at the Las Vegas Convention Center. One of the many reasons the Society’s booth was crowded with enthusiastic collision repair professionals was a series of prize drawings made possible through the participation of SCRS and its sponsors. One such prize was the CM253 MIG/MAG Welder donated by Car-OLiner®, and the lucky winner of the raffle for it was Glen Caudle, Owner of Glendale Collision in Saskatoon, Canada. “I couldn’t believe it when I received the call,” Caudle shared. “I’ve been coming to the SEMA Show for the past four years, but I’ve never won anything like this. I’m so happy to have won this from SCRS, and what makes it great is I already use Car-OLiner equipment in my shop. We can’t wait to put it to work!” To become eligible for the drawing, visitors to the SCRS booth had to pick up a “report card” listing all RDE sponsors and their booth locations within the show. The participant then had to visit each RDE sponsor’s exhibit, have a company representative stamp the card, and return the completed card to the SCRS booth for entry into the drawing.
8 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Daimler to Produce Additional Model at the Mercedes-Benz Tuscaloosa, AL, Plant Daimler will further expand its US plant in Tuscaloosa, Alabama, the automaker announced; as of 2015, an entirely new Mercedes-Benz model will roll off the production line as its fifth product. The plant has been the traditional production site of the brand’s M-, GL-, and R-Class SUVs and will also build the C-Class for the North American market beginning 2014. For the production of the new model, Daimler will additionally invest $ 350 million, and will create some 400 further jobs at the plant. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars said, “This new model from the Tuscaloosa plant is an important element of our growth strategy. It is one of the ten additional models which we will introduce within the next four years alone across all segments.” Referring to the Tuscaloosa plant’s role within the global production network of Mercedes-Benz Cars, Zetsche added: “At the same time, we are systematically broadening our manufacturing footprint in the NAFTA region.”
Robert Bentley, Governor of the State of Alabama said, “Since the time Mercedes-Benz chose Tuscaloosa County for its first US assembly plant 18 years ago, the company has proven to be an outstanding partner for the state. We join MBUSI in celebrating this milestone, and welcome the hundreds of jobs this announcement brings to Alabama.” Just earlier this year, on the occasion of the Job #1 ceremony of the new Mercedes-Benz M-Class in July, Daimler had announced the decision to invest more than $2 billion in the Tuscaloosa plant. In total, investment in the plant between 2010 and 2014 will thus amount to $2.4 billion, while the number of newly created jobs will add up to 1,400. Markus Schaefer, President and CEO of MBUSI, commented on these decisions: “The entire MBUSI team is proud of its role in the success of the models made in Tuscaloosa. We are looking forward to making further important contributions to the product offensive of Mercedes-Benz.”
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 9
White and Silver Most Popular Car Colors in the World
White/white pearl has emerged as the fastest growing color to tie with silver as the world’s leading automotive color choices, according to the 2011 DuPont Automotive Color Popularity Report just released. A substantial increase in the popularity of white/white pearl globally in 2011 has enabled it to surpass longstanding rivals black and gray, to join silver at the top of the world color ranks in this year’s report. The DuPont report, in its 59th year, is the longest running and largest of its kind in the industry, includes automotive color popularity rankings and regional trends from 11 leading automotive regions of the world. In 2010, white/white pearl was tied for third with gray in the world color ranks with just 16 percent share, but its ongoing popularity in North America, combined with a surge in popularity in Europe, China, Korea, South America and South Africa, has helped to increase its position in 2011 to 22 percent globally. Black and gray dropped to third and fourth, respectively, in this year’s report with red and blue strengthening and holding positions in fifth and sixth place. The top global vehicle colors in DuPont’s report are as follows: 1. White/White Pearl and Silver – tie, 22 percent
3. 4. 5. 6. 7. 8. 9. 10.
Black/Black Effect – 20 percent Gray – 13 percent Red – 7 percent Blue – 6 percent Brown/Beige – 5 percent Green – 2 percent Yellow/Gold – 1 percent Others – 2 percent “While white/white pearl has historically been a popular color for vehicles, we’ve seen a bigger shift in its popularity this year than DuPont expected,” said Nancy Lockhart, DuPont color marketing manager. Silver and black have long been recognized in the top two for color popularity. However, in the past few years, white/white pearl has been steadily growing in popularity outside of North America. In 2011, it jumped by more than four percentage points, according to Lockhart. “There has been increased consumer acceptance for white, and our OEM customers are meeting consumer demand for the clean look it brings to vehicle design,” she said. “Silver and black were once the top colors of luxury, but white has increased in this area. The overall trend for casual luxury has spread to numerous vehicle types. The expectation to have a luxurious feel to the vehicle is globally sought. Classic white and pearlescent white effects are inspiring luxury design.
Women’s Board Car Care Council Holds Reception at AAPEX 2011, Awards Industry Leaders The Car Care Council Women’s Board held their14th Annual Car Care Council
CIECA Advises on Progress of Total Loss Committee The Collision Industry Electronic Commerce Association (CIECA) says that the Total Loss Committee has now completed approximately 70–75% of its estimate messaging and is currently working to complete the options and features portion. The latest release added over 300 vehicle option codes. The goal of the committee is to improve communication between repairers, insurers, and salvage providers. Earlier efforts led to the ability to attach a Vehicle Inspection Report (VIR) to the Estimate Message, but failed to provide for a total loss valuation prior to the disbanding of the Total Loss Committee. CIECA staff resumed the work of the committee two years ago. The biggest hurdle in the process was finding a neutral territory for the messaging. CIECA worked with the information providers CCC, Mitchell, and Audatex, and—when working through the code lists, vehicle parts and options, the detailed valuation amounts and methods—finding that the information providers all defined things differently, particularly with condition ratings on vehicle parts. All had their own systems for condition ratings. After taking time to understand their process, the data needs were deemed quite similar. The committee worked to form a neutral territory so
company in 2005, it has doubled in size. Prior to TMR, she worked at Will-Fix
that each provider would have the freedom to infer condition descriptions their own way but using the same language and codes developed in concert, in the committee webinars. This is where the previous attempt failed. Another major time solver provided by the committee was the elimination of a laborious handwritten step in the vehicle assessment. Prior to the CIECA committee, when a vehicle reached the “fix it or scrap it” stage, in order to transmit the information about that vehicle, one had to manually hand write an evaluation form (the Vehicle Inspection Report or VIR) and submit that to the insurance company for evaluation, who then had to look into the salvage value of the vehicle, the replacement value and the repair estimate to determine the vehicle’s fate. The process is now streamlined from the time the vehicle first enters the insurance company system when a policy is written on down to that moment of “fix it or scrap it.” If a vehicle looks to be a total loss, the estimator can document the vehicle condition, vehicle options, estimate the salvage value, determine actual cash value, complete the VIR, and submit it with the repair estimate for valuation electronically.
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Ruth Ehlinger, the Car Care Council Women’s Board President, and Aftermarket Woman of the Year Deborah Bjorklund
Women’s Board Reception on November 1 from 5 p.m. to 6:30 p.m. at the Sands Expo Center in Las Vegas, Nevada during the annual Automotive Aftermarket Parts Expo (AAPEX) tradeshow. The reception awards many companies and industry leaders. Deborah Bjorklund was awarded the Aftermarket Woman of the Year Award. Bjorklund is president of The Main Resource (TMR), a manufacturer and distributor of aftermarket parts to repair shops. TMR also provides parts and accessories to the auto equipment industry. Since Bjorklund purchased the
Ruth Ehlinger and Audra Fordin, owner of Great Bear Auto Shop, winner of the Best Shop Award
Automotive for 17 years. Audra Fordin, owner of Great Bear Auto Shop Flushing, NY, was awarded the Best Shop Award. “What an honor it was to just be nominated. Wow! But to actually win! It is a very profound feeling I am experiencing; I feel stronger in my stride and I am going to keep driving forward and resist obstacles that are always trying to push me off road from my ultimate destination... ‘women AUTO know!’ To be the first recipient of this award is pretty darn cool too!” See Women’s Board, Page 11
10 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
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Women’s Board
said Fordin of her big win. The council also awarded a $2,500 scholarship award to Michelle Perez, a collision repair student at Skyline College in CA. “Our Women’s Board ‘Aftermarket Women of the Year’ awards are a way for us to applaud exceptional women in the aftermarket for their dedicated service, as well as to recognize women who are going above and beyond to make a difference in the industry,” said AAA’s Ruth Ehlinger, president of the Car Care Council Women’s Board.
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Gerber Collision & Glass Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation Gerber Collision & Glass has joined the Collision Repair Education Foundation’s Industry Leadership Circle donor designation through their recent $10,000 donation. This donation supports the Education Foundation’s Collision Repair Education Campaign fund which allows the organization to support secondary and post-secondary collision students through their annual student scholarships, tool/equipment grants, and the Ultimate Collision Education Makeover $50,000 school grant. “This donation is a display of Gerber’s commitment to the future professionals of the collision industry and is an investment in their technical education,” said Gerber Collision & Glass President and COO Tim O’Day. “We are very pleased to be able to support the Collision Repair Education Foundation and look forward to partnering with them in the future to assist secondary and postsecondary collision students.” Collision Repair Education Foundation Executive Director Scott Kruger commented, “Thanks to Gerber Collision & Glass for joining the Collision Repair Education Founda-
tion’s efforts to support collision school programs and their students. By increasing educational opportunities for these students, who are tomorrow’s industry professionals, the future will be brighter for all collision repair businesses. The Collision Repair Education Foundation would also like to thank Gerber Collision & Glass President Tim O’Day for participating on our Board of Trustees, providing focus and direction for all our efforts in support of collision students and school programs.” Additional information about Gerber Collision & Glass can be found at www.GerberCollision.com. Inter-industry organizations and individuals who are interested in supporting the Education Foundation and increasing the amount of assistance provided to collision schools and students should contact Education Foundation Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed foundation.org.
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Pride Awards
students in need of affordable, reliable transportation and saw plenty of cars in the area just waiting to be fixed. Utilizing the resources at her school, she brought a car in need of repair to the mechanical department of her school, then she and her team of dedicated students and instructors finished the collision repair work. That project went to a fulltime criminal justice student with a family of four, previously without transportation. This is to be the first in series of reconstructed vehicles that will be donated to Wiregrass Georgia Technical College students recommended by their instructors. Jessica is working with instructor Mark Tilson to procure more cars and expand the program into the community. Other Pride Award winners included Jordan Hendler, Joe Gloar, Derek Willemson and Richard Henegar Jr. for heroic efforts in their individual communities. More information about each award winner can be found at www.autobodycouncil.org. Original BMW Parts
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I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
How to Work With Active Grille Shutters on a 2012 Ford Focus When making collision repairs to the 2012 Ford Focus, be aware that the vehicle may be equipped with an active grille shutter system (see Figure 1). This motorized system is located in front of the radiator, which places it in a vulnerable position during frontend collisions. The active grille shutter system consists of a shutter assembly and an actuator motor. The assembly includes the housing, shutters, retainer, and a wiring harness. Active grille shutters are serviced as an assembly, the shutters are not serviceable individually. The actuator can be serviced individually.
Figure 1 - This 2012 Ford Focus is equipped with the active grille shutter system
Operation This controlled vent system is primarily designed to maximize fuel economy by reducing drag on the vehicle. The grille shutters automatically close to block airflow through the cooling system when not needed. Closing the active grille shutters helps to improve aerodynamics at high speeds. The shutters open to reduce underhood temperatures when needed. The grille shutter system is also used to control coolant temperatures, HVAC performance, and exhaust emissions depending on the vehicle speed. The shutters are linked together, with one of the individual shutters attached to the actuator by the retainer. When the grille shutter actuator moves, it moves the attached shutter, which in turn, causes the other linked shutters to move. The shutters are regulated by the powertrain control module (PCM), and can be set into 16 different positions, from fully closed (see Figure 2), to fully open (see Figure 3), depending on the amount of cooling air required. The grille shutter actuator receives the position commands from the PCM. The PCM determines the re-
quired positions based on inputs such as vehicle speed, coolant temperature, ambient air temperature, and air conditioning system pressure. During normal operation, the grille shutters are fully open when the engine is off. When starting the engine from cold, the grille shutters will remain closed as long as possible to help reach the most efficient operating temperatures more quickly. This also helps reduce fuel consumption and emissions.
Damage Analysis The grille shutter assembly is located at the front of the vehicle behind the boron-alloyed steel bumper reinforcement (see Figure 1 again). The bumper reinforcement has crushboxes that attach to the front lower rails. If the crushboxes collapse during a collision, the bumper reinforcement could be forced into the grille shutter assembly. When analyzing damage, look for obstructions in the shutters that would prevent proper operation of the system. Since all of the shutters are linked together, all it would take is one obstruction to cause a bind. This could be a broken piece of a part or a foreign object. The grille shutter system has a dedicated fuse, and an obstruction may cause the fuse to blow. Also, check that the grille assembly is properly aligned in the opening.
Automatic Calibration When the engine is started, an automatic calibration of the grille shutter system takes place. This calibration process cannot be initiated manually. Calibration typically takes about 15– 20 seconds. The process occurs until calibration is successful, or a fault is detected. Any failure of the system for over 10 seconds continuously will result in the actuator positioning the shutters fully open. There is no indication to the driver when a grille shutter system fault is present, however, a diagnostic trouble code is set in the PCM. Conclusion The 2012 Ford Focus may be equipped with the active grille shutter system. Located in the front of the vehicle, the
12 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
system is in a vulnerable position during frontal collisions. Except for the actuator, no parts of the system can be serviced individually. When repairs are required, the ac-
Lincoln Vehicles (FOR05). This course will provide you with an understanding of several of Ford’s vehicle-specific parts and procedures and help you gain an understanding of
Figure 2 - This is how the active grille shutter system looks fully closed
Figure 3 - This is how the active grille shutter system looks fully open
tive grille shutters, housing, retainer, and wiring harness must be replaced as an assembly. The Ford Focus and the active grille shutter system is one of many 2011-2012 vehicles and systems featured in I-CAR’s instructor-led (live) course, Collision Repair for Ford and
how maintaining Ford quality repairs can be key to customer satisfaction and achieving a complete and safe repair. Visit the I-CAR website to find a class near you. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.
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John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Industry Insight with John Yoswick
CIC Committee and I-CAR Respond to Association Statement on ‘Industry Standards’ In response to ongoing efforts over six years by the Collision Industry Conference (CIC) to develop a set of formalized repair standards, four national repairer groups have jointly issued a statement calling the published automaker repair procedures the “official industry-recognized repair standards for collision repair.” At CIC in Las Vegas in early November, the Alliance of Automotive Service Providers (AASP), the Assured Performance Network, the Automotive Service Association (ASA), and the Society of Collision Repair Specialists (SCRS), jointly read a statement that said where OEM procedures exist, they should “be the basis for the establishment of training, testing, repair practices and documentations.” The groups said they recognize OEM repair procedures are “incomplete in comparison to the full scope
of vehicles and repair operations that exist in the marketplace,” but they should serve as a baseline from which further development of procedures occur. Although a CIC Repair Standards Advisory Committee has explored the idea of a new industry organization being formed to finalize and implement industry standards, the four groups issuing the statement instead called on I-CAR to create an industry council “to identify gaps in existing OEM procedures” and to develop processes to close those gaps, vetting any industry-proposed alternatives, modifications or additions to OEM procedures. Following the announcement, ICAR CEO John Van Alstyne said that he sees some potential merit in the proposal. “We see that I-CAR is positioned uniquely to engage in that dialogue
with the OEMs on behalf of the industry,” he said. “But that said, we have a lot of stakeholders associated with I-CAR. We have a mission and vision, and need to see if this is a fit. So I’m taking on the chalJohn Van Alstyne lenge of taking this request back to our board. That process will start this afternoon actually. So we will be getting back to you with our response.” Although the statement by the four organizations made no specific reference to the standards work being done at CIC, AASP and SCRS last summer at CIC raised concerns that “other industry segments and participants who don’t necessarily support (OEM repair recommendations) as the standard are involved in this activity
and committee.” But at CIC in November, Russell Thrall of CollisionWeek, who cochairs the CIC-formed Repair Standards Advisory Committee, said he views the associations’ new statement as a positive sign of their engagement in the process. He said it fits with what the committee has seen as its charter, namely to “develop and publish nationally recognized collision repair standards which follow the manufacturers’ recommended procedures for safety and reliability.” He also provided an update on the committee’s work, saying it will now be the first quarter of next year before a consultant’s report is released on what consensus exists within the industry about standards and a possible new organization to oversee the development and implementation of them. “That position statement (announced today) certainly is going to
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inform a lot of what appears in the research work,” Thrall said. The consultant has conducted more than 40 interviews with repairers, insurers and industry vendors, Thrall said, and held a conference call to gather input from 18 state and local repairer trade groups. About 43 percent of those individually interviewed were repairers (another 17 percent were shop network or association representatives), including both single- and multi-shop businesses; Thrall said he wasn’t sure how many shop locations in all those companies represented, but he said their combined annual sales exceed $1 billion. The consultant’s report will consist largely of the opinions expressed in those interviews, Thrall said. “There is some consensus in broad areas, and there’s a lot of areas where there isn’t consensus,” he said, as a preview of the findings. Thrall said funding for the $60,000 research project is being raised through industry donations, which as of early November totaled about $46,750 from 35 sponsors. (An additional $7,500 was raised at that CIC meeting following Thrall’s presentation.) The names of the sponsors are included in the committee’s report on the CIC website (www.CIClink.com). Thrall said the bulk of the donations have come from repairers and suppliers, though there has been “some significant insurance company and OEM representation.”
‘Data leaks’ explainable so far Also at CIC in Las Vegas, the Data Privacy Committee reported that it has yet to find a valid example of a consumer’s accident or estimate data “leaking” from a shop’s estimating system, for example, to a vehicle history service such as CARFAX. The committee announced a survey last July seeking examples of such occurrences, but Tony Passwater,
chairman of the committee, reported in Las Vegas that not a single response to the survey had been received. Passwater did, however, receive several reports of apparent data privacy issues, which he then investigated. In one, for example, a shop owner’s son was in an accident but did not submit an insurance claim. The shop wrote an estimate and fixed the vehicle, and about a month later when the vehicle was traded in, the accident appeared on the CARFAX vehicle report. The family presumed the information could only have gotten to CARFAX through the estimating system. “But the information on the CARFAX report came from the police report, which is public information,” Passwater said. He said he’s heard at least five variations of that type of story, but none have seemed to indicate a real data privacy concern. “If there really is an instance where this actually takes place, we’d love to know about it and be able to document it,” he said. “I’m encouraged to hear that the gossip and stories that after all we’ve heard about various organizations getting information about an accident that was leaking out of shop’s computers and from frame machines software or estimating software, that there’s nothing to this point showing proof of that,” CIC Chairman Mike Quinn said, following Passwater’s presentation.
Words matter The CIC Definitions Committee generated some discussion at the Las Vegas meeting with its proposed definitions for multiple words used in the industry to describe used parts. The committee, for example, has proposed calling a “recyclable” part (or a “used” or “salvage” part) one that has been removed from a donor vehicle, while a “recycled” part is one that has been removed from a donor
Delphi Goes Public at $22 a Share Delphi Automotive went public November 17—two years after the company exited bankruptcy, according to the Detroit News Washington Bureau. The Troy-based auto supplier raised nearly $530 million in its initial public offering, as it sold 24.1 million shares at $22 each. The price was at the low end of
the $22 to $24 range and gives Delphi’s an initial market capitalization of $7.2 billion. In early trading on the New York Stock Exchange, Delphi was down about 2 percent to $21.69. Delphi was a former unit of General Motors until it was spunoff in 1999. See Delphi, Page 18
14 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
vehicle and reused on another vehicle. The committee has proposed defining “like kind and quality (LKQ)” as “a generic term used to describe any part that may be used to replace another part (typically assumed to be a used part).” Ron Guilliams, who chairs the committee, was asked why there was a need for definitions for multiple terms for the same thing, and why the committee was including the “LKQ” term, which could be confused with parts distributor LKQ Corporation. Guilliams said all of the terms are used within the industry, and therefore the committee felt its charge is to define them. “The committee doesn’t have the authority or reach to be able to change what people are describing things as out in the industry,” Guilliams said. “As long as these terms are being used by different databases and by insurers, we felt that we needed to define them.” But Dusty Womble of Roger Beasley Collision Center in Austin, Texas, said he’s concerned that the
term “recycled” could be misleading to a consumer. The public, Womble said, generally thinks of recycling as breaking something down into its core substance to be used in a remanufacturing process. Paper isn’t recycled by just erasing the print on it, he said; it’s turned into pulp and reformed into paper. Plastic bumpers Dusty Womble are “recycled,” he said, only when they are cut into tiny chips to be melted down and reformed into another product. “Most used parts aren’t really being recycled,” he said. “You’re not tearing it down and remanufacturing a product. You’re cleaning it up and reselling it.” Guilliams said the committee would take that into consideration, but also is developing definitions for “rebuilt”, “reconditioned,” and “remanufactured” that may help clarify the issue. CIC’s next meeting will be held January 12–13 in Palm Springs, Calif. in conjunction with CIECA & NABC.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 15
Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Keenan Auto Body’s First Responder Training Brings Together PA & DE Communities with Toby Chess
I’ve long supported and done my best to contribute to first responder training. These brave and dedicated public servants have a lot to deal with and a lot to prepare for. Whether it’s a building fire, hazmat situation, medical emergency, or vehicle extrication, they can’t prepare without the training, tools, and equipment necessary to get the job done. I was happy to be able to contribute some skills to training conducted recently in Pennsylvania, which drew first responders from two states. With over 5.8 million car crashes per year it’s imperative that first responders are equipped with the knowl-
“This type of training is more important than ever given the rapid on-
slaught of advancements in vehicle design such as high-strength steels, advanced restraint systems, and multiple air bags. The growing popularity of high-voltage hybrid vehicles also makes a class like this a necessity.” State Farm Insurance Co, Esurance and 1800 Charity Cars donated eight late model vehicles for first responders to practice on. This is a real strength of the program since most fire departments don’t First responders in need of body work pose with extricated vehicle, have access to such one of eight donated by State Farm, Esurance, and 1800 Charity Cars modern vehicles. edge to extract vehicle occupants in “Local fire departments have indithe quickest most efficient manner, escated this kind of knowledge is much pecially in crashes when the difference needed and we are honored to be able between life and death is on the line. to deliver critical information to those Collision repairers have the vehicle exwho need it most,” added Camacho. pertise that first responders need and can contribute to the cause. Recently, however, it’s become evident that vehicle responders need more experience with modern vehicles, which have otherwise unfamiliar and even dangerous features to contend with. “First responders such as firemen I instructed the class as I’ve done require the most current vehicle inforin many previous hands-on demonmation to be effective and save lives at strations. We covered air bag deploythe scene of an accident,” said Craig ment and other dangers first Camacho, Keenan’s Marketing Diresponders encounter every day. rector. M.E.S., a distributor of Hurst res-
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cue tools, including the Jaws of Life line of tools, provided all of the equipment needed for the hands-on cutting. Enterprise Rent-A-Car sponsored the catered dinner for Clifton Heights and Hertz Local Edition sponsored the dinner for West Chester. Both dinners were excellent and well appreciated by the hungry first responders. Keenan Auto body, Inc. owns and operates nine state of the art collision repair centers throughout Philadelphia, Delaware, Montgomery counties, and New Castle County in Middletown, Delaware and is currently opening their two newest facilities in Avondale and Kennett Square in Chester County, PA.
For additional information visit: www.KeenanAutoBody.com and www.jawsoflife.com. This latter website provides an introduction to the Crash Recovery System, which is a software application through which important updated information with regard to safety systems in almost all current vehicle models can be accessed directly. Specially developed for rescue
workers, it provides an invaluable source of information for extracting people from crash accident vehicles.
Paint Management
Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”
How Lucky Do You Feel?—Durability of Back-Taped Edges with Stefan Gesterkamp
One of my customers asked me to provide feedback on an issue that I feel most collision repairers and insurance professionals would be interested in. There was a three way discussion between two shops and an insurer concerning back taping along body lines on a vehicle’s roof. The question I received was concerning durability of the back-taped edge and/or should the shop clear up and over to the other side? Everybody reading this likely agrees that the technique of back taping a roof is common place and practiced industry wide. Most will likely not think twice about doing it. To set the stage, I also assume that most people in the industry today have accepted that open solvent blends along the sail panel are not an acceptable repair and should not be performed. And those roofs without a well contoured edge to tape along should be cleared up and over.
So what about the rest? My answer to this comes in the form of another question. How lucky do you feel? The reason for my question is that this technique is a calculated risk assessment. If the surface is cleaned and prepped expertly and no shortcuts are taken, back taping will result in a long lasting repair. The questions that are impossible to answer are how long a long time is and will this edge hold up longer then the vehicle is owned by your client or remains in active service? Given just enough time, the edge ultimately will deteriorate and break down. High, long-term exposure to ultra violet rays, wear and tear, chemical exposure, as well as too much, or too little maintenance, all contribute to the unknown time before it will happen. Doing this type of repair is a judgment call that needs to be openly discussed
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between collision repairer and insurance provider. I don’t have the latest numbers on how long the average American driver holds on to their vehicle before it is traded in for a replacement in the present economy, but I believe the odds are very much in the repairers and insurance favor. Although the odds may be favorable, the question that comes to my mind is concerning warranty. From a fiscal standpoint this type of repair approach makes perfect sense, but from a manufacturer’s prospective, this repair doesn’t qualify for lifetime warranty coverage, as it is still technically considered an open blend. I don’t claim to have a good answer to this debate. From a purely quality driven point of view, I have to side with the up and over crowd. From a practical, fiscal point of view, the tapers also make a strong case for themselves.
Are you taking a risk when you back tape along a roof line? Yes, but compared to elective risks some collision repair shops willingly take, like mixing and matching different brand’s paint products into a single paint repair for example, taping the edge will let me sleep well tonight. It all comes down to how you feel about this issue and let your best judgment guide you.
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Sherwin-Williams Donates $12,000 in Product to Collision Repair Education Foundation 2011 Makeover Applicant Schools Sherwin Williams Automotive Finishes has come to the aid of three school collision programs by donating $12,000 in product through the Collision Repair Education Foundation. Applied Technology Center (Rock Hill, SC), Freedom High School (Freedom, WI) and Sarasota County Technical Center (Sarasota, FL) all applied for the 2011 Ultimate Collision Education Makeover $50,000 school grant and within their wish lists, specifically requested Sherwin-Williams® products. The Collision Repair Education Foundation forwarded these requests to The Sherwin-Williams Company for consideration of donation and they have come through for the schools. Freedom High School Technology Education Instructor Jay Abitz said, “Sherwin-Williams has fulfilled a large need for my school. Their generous donations have taken a huge burden off of my shoulders and my budget. I cannot thank them enough!” Applied Technology Center and 2011 Makeover school grant winning instructor Mark Dellinger said, “This donation is huge! With a shrinking budget that is tightening everyday, it is next to impossible to let my students just blow through waterborne basecoat. This is a quality waterborne line that all
students need to be exposed to on a regular basis.” Sarasota County Technical Center Program Manager Kristey Richardson said, “Sherwin Williams is an active and valued partner to our Sarasota (SCTI) Automotive Collision Repair and Refinishing Program. Without Sherwin Williams’ involvement on our program advisory committee and occasional donation of product we would not have the program success we enjoy at this time.” Collision Repair Education Foundation Executive Director Scott Kruger said, “Sherwin-Williams Automotive Finishes not only assisted our 2011 Makeover winning school but they also helped the two other applicant schools that specifically requested product from Sherwin-Williams through their Makeover grant application. It is a true testament of The Sherwin-Williams Company’s commitment to the future of the industry when it can be stated that they fulfilled all of the schools requests from the 2011 Makeover grant.” Information about SherwinWilliams Automotive Finishes can be found at www.sherwin-automotive.com. For information about the CREF contact Brandon Eckenrode at Brandon.Eckenrode@ed foundation.org.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 17
Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html
Southeast Toyota Distributors (SET) Embraces Industry Changes to Help Dealers Stay Competitive with Larry Williams
This month’s article is about changes— changes which I believe are for the better. One change I want to talk about is in inventory management. In the 1970s, automotive dealers needed to be warehouses. Stock orders came weekly; or even monthly. Special orders took three days, unless you paid extra for the overnight surcharge. If a dealer wanted to have good Customer Satisfaction scores, he did his best to always have the needed part on hand. This dumped the responsibility of customer service on the dealer’s parts department. They needed to carry, on the shelf, massive inventories of 5,000 numbers, or more. Manufacturers promoted this system, and the belief that large inventories promoted better scores. Of course, dealers absorbed the cost of these slow moving inventories; in the never ending search for better customer satisfaction scores. There is a better way. Today’s inventory management is completely different, and much improved. Yes, it is great to have all the parts “on hand,” but isn’t next-day good enough? Does the difference justify the added investment? Manufacturers now have daily stock orders as routine, eliminating the need for a warehouse system. The manufacturer has assumed the responsibility of customer satisfaction. Almost any part which is needed can be obtained the next day. This has leveled the playing field between large and small dealers. Now, they can both deliver fast service, and get great customer satisfaction scores! Continued from Page 14
Delphi
Delphi led by CEO Rodney O’Neal mounted a “road show” to sell the offering to investors over the last two weeks. Once the world’s largest auto supplier, Delphi is owned primarily by several private equity firms, including: Elliott Management, Silver Point Capital and Paulson & Co. Inc., the investment arm of billionaire investor John Paulson. Most of the stock—20.6 million shares—was sold by Delphi’s
I see another positive change in the wholesale marketing area. Once upon a time, the manufacturers considered the dealers to be their customers, and stopped right there. A parts representative was concerned about accessory sales, not body parts. Now, that a few manufacturers have gotten serious about wholesale sales, they have started to actively help their dealers in this market. One such company is Southeast Toyota Distributors LLC, (SET). This is the world's largest independent distributor of Toyotas and Scions. SET is based in Deerfield Beach, FL. The company's vehicle processing facilities distribute cars, trucks and vans, parts and accessories to 173 independent Toyota dealers in Florida, Georgia, Alabama and the Carolinas. SET is the leading distributor of Toyota parts in the United States. Located inside a facility the size of eight football fields in Jacksonville's Baymeadows area, SET Parts Sales has the best supply record of all Toyota regions or distributors, shipping more than $1.7 million in parts per day to SET dealerships, providing that “nextday” service. SET is serious about helping their dealers compete in the aftermarket business. I talked to Wayne Crater, Assistant Vice President, Parts Supply & Distribution at SET about their dealer support. He was extremely enthusiastic and proud of their dealer programs, and he told me about some of them. SET Wholesale and Collision Field Support consists of six dedicated
largest private equity owner, Paulson & Co., which held a 22 percent stake in Delphi before the IPO. The IPO is reducing its holdings to 51.7 million shares. The sale represents about a 7 percent stake in Delphi—or 24.1 million of the 328.2 million shares. The underwriters—which include Goldman, Sachs & Co., JP Morgan and Citigroup—could still exercise an option to sell more shares based on demand. Delphi is trading just more than six years after the company filed for bankruptcy in October 2005.
18 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
specialists. Their responsibility is to work directly with dealers to assist in growing wholesale collision and mechanical business. In addition to routine dealer contacts, they conduct week-long, wholesale dealer consultations; focusing on every needed aspect in order to create a more efficient and profitable wholesale operation. STAR Program, also know as Toyota STAR Program (Support to Aftermarket Repair), is a marketing support program sponsored by Toyota Motor Sales to promote wholesale business. Collision Parts Price Support offers two different web-based price support programs to their dealers; Auto Parts Bridge, sponsored by Toyota Motor Sales, and SET Parts Edge, sponsored by SET and managed by OE Connection. Both programs provide participating dealers with the tools, training, and funding to support
increased sales and market share through “conquest sales,” a process where the dealer has the opportunity to sell a Genuine Toyota Part over an alternative part using SET price support funding. This program allows dealers to be competitive in the marketplace and increase parts sales profitably. I believe Southeast Toyota Distributors are distinctive because they have demonstrated to me that they care. They care about their dealers and their customers. They care about the quality of a Toyota, even after the warranty has expired. They will do everything they can to assure that the customer still has a quality product even after the damage. SET wants every Toyota to be repaired with genuine parts, every time. SET makes sure that its dealers can offer fast service; complete with competitive prices. This qualifies them for my Autobody News list of Distinctive Dealerships.
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Automotive Service Association (ASA) Approves New Replacement Crash Parts Policy: Supports Full Disclosure of Parts Used in Repair The Automotive Service Association (ASA) Board of Directors met this past month and discussed changes to the ASA policy on replacement crash parts. The board voted unanimously to approve a new policy for crash parts. With reference to the new policy, Dan Stander, AAM, ASA Collision Division director and co-owner of Jerry Stander’s Collision Works, Littleton, Colo., said: “ASA’s replacement crash parts position statement is in response to today’s parts usage and market conditions. With an increasing number of part types with various levels of quality, and an increase in the number of processes used to validate – or not validate – these various lines of quality, it is confusing at best to most repairers. “ASA’s position better defines its goal to provide the highest level of repair by requiring full disclosure of all part types by all parties, and having the standard for replacement crash parts that are certified and ver-
ified to be the equivalent of the OEM part.” The new crash parts policy reads: ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types including, but not limited to, original equipment manufacturer, aftermarket, recycled, remanufactured, reconditioned and rebuilt crash parts. ASA supports quality parts, certified and verified in which the quality is determined based on empirical and measurable evidence equal to the standard of OEM parts. ASA recommends quality verification and testing related to metallurgy, fit, functionality and responsiveness. ASA believes a competitive parts marketplace, of tested and verified quality parts, is in the best interest of the motoring public. ASA continues to oppose parts policies that focus solely on cost efficiency without regard to
certification, verifiable quality and safety. Roy Schnepper, AAM, ASA Government Affairs Committee chairman and owner of Butler’s Collision Inc. in Roseville, Mich., said, “We are seeing a changing market in the collision industry, especially in reference to the growing use of aftermarket crash parts, which we, as shop owners, are being asked to use in repairing vehicles. “ASA believes collision repairers should have confidence that replacement crash parts will respond equally as well in a secondary collision as the parts originally placed on the vehicle. Collision repairers, insurers, parts distributors and manufacturers must work together to ensure the testing and verification procedures are the best possible to protect consumers and repairers. When this happens, consumers can have confidence that the parts they are receiving meet OEM standards.” Continued from Cover Page
Antitrust Dismissal
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Michelle Lackney, Rachel Stewart and Rachel Hardyck alleged that the auto insurers violated California competition and antitrust laws because they exclusively offered policies that provided inferior repair parts, as well as boxing out other insurers. They further alleged that CAPA was created by the defendants to advance the scam and that it promoted inferior crash parts as acceptable substitutes for those from the original manufacturers. Judge Ware dismissed the suit on two separate occasions, but the ruling was overturned on appeal by the Ninth Circuit both times. The appeals court ruled in April 2009 that the plaintiffs had Article III standing to proceed with their claims and said in August 2010 that the antitrust claims did not fall under the California insurance commissioner’s exclusive rate-making authority. Judge Ware based his decision on the Ninth Circuit’s 2001 ruling in Lee v. American National Insurance Co., which says class action plaintiffs lack Article III standing in insurance suits if they did not buy a policy from a named defendant. The plaintiffs had claimed in ear-
Honda Civic Natural Gas Wins Green Car of the Year Award
The Honda Civic Natural Gas took home Green Car Journal’s 2012 Green Car of the Year award at the L.A. Auto Show on November 17, according to reports made by CNN Money. The Civic was lauded for being the cleanest running internal combustion vehicle as certified by the EPA and the only assembly-line produced natural gas passenger model for sale on the U.S. market. “There is no other vehicle on American highways like the Civic Natural Gas, and this recognition has been a long time coming for Honda (HMC),” Ron Cogan, editor and publisher of Green Car Journal, said in a statement. “The new generation Civic Natural Gas features greater fuel efficiency, a handsome and roomier new design, and tailpipe emission levels untouched by any other internal combustion production vehicle.” The 2012 Civic Natural Gas is a fifth generation model, running on “a clean fuel that is almost exclusively domestically sourced and typically priced about 30 percent less than gasoline,” the statement said. It retails for just over $26,000.
lier filings that Lee is not pertinent to the case because it focused on whether a plaintiff had standing to bring an insurance class action, not whether a subsidiary of a defendant could be sued. In rejecting the plaintiffs’ argument, Judge Ware said that under Lee, plaintiffs can be barred from litigating a class action in federal court if they cannot establish injury. The judge dismissed the complaint without prejudice and granted leave for the plaintiffs to refile their complaint against only the insurance companies by Nov. 22. The subsidiaries named in the amended complaint were State Farm Fire and Casualty Co., State Farm General Insurance Co., Allstate Insurance Co., Allstate Property and Casualty Insurance Co., Geico Casualty Co., Geico Indemnity Co., and Government Employees Insurance Co., according to court documents. The defendants include State Farm Mutual Automobile Insurance Company, Geico General Insurance Company, Liberty Mutual Fire Insurance Company, and Allstate Insurance. Background on the case, including a legal analysis, can be read in June 2011’s Autobody News, or online at: www.autobodynews.com, search “Perez.”
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Supplier Price-fixing Litigation Plays Out in Detroit Autobody News
Detroit is likely to remain center stage in a legal drama now playing out around the country over price-fixing collusion among automotive wire harness suppliers, long after two former executives of Furukawa Electric Co. pleaded guilty in federal court on October 24, according to reports made by Automotive News. Hirotsugu Nagata, former CFO of Furukawa’s U.S. subsidiary, American Furukawa Inc., from 2004 to 2009; and Junichi Funo, assistant general manager of Honda sales at American Furukawa until 2009, appeared October 24 before U.S. District Judge George Steeh in Detroit and pleaded guilty to one count each of conspiracy to restrain trade in violation of the Sherman Antitrust Act. Nagata is expected to serve 15 months and Funo one year and one day in U.S. prisons in the U.S. Department of Justice case. The company itself and another former executive, Tetsuya Ukai of the parent company’s Honda sales division, have separate court dates in mid-November to enter their own pleas. Furukawa agreed in late September to plead guilty and pay a $200 million fine in the case. The $29 billion U.S. automotive wire harness industry has come under assault in five states, where 10 new lawsuits filed since Oct. 5 allege the suppliers engaged in false and deceptive trade practices, fraudulent concealment, violation of federal antitrust law and unjust enrichment. The 10 civil suits all name, in addition to Furukawa: • Yazaki Corp. of Iwata, Japan and/or U.S. subsidiary Yazaki North America Inc. of suburban Detroit, the industry market leader. • Sumitomo Electric Industries Ltd., No. 2 in size and the fastest growing, which has an administrative head-
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quarters in Kentucky and offices in suburban Detroit. • Delphi Automotive LLP, the onetime General Motors parts unit based in suburban Detroit. • Lear Corp., the seating and electronics supplier based in suburban Detroit. • Leoni AG, a wiring and cable products supplier based in Nuremberg, Germany. • S-Y Systems Technologies GbmH, Regensberg, Germany, which Yazaki acquired in 2005. S-Y has an office in suburban Detroit. Some of the new lawsuits also go on to target Denso Corp., Tokai Rika Co. Ltd. and Fujikura America Inc., which are based in Japan but have U.S. offices as well. Denso and Tokai’s U.S.-based subsidiary Tokai Rika Group North America was raided by FBI agents last year along with Yazaki North America as part of the global pricefixing probe. “The price of cars is already high anyway, and we’re fighting every day for business share without the added burden of what the (suppliers) have done to competition,” said Steve Landers, president of Little Rock, AR-based Landers Auto Group No. 1 Inc. and owner of Landers Toyota and Steve Landers Chrysler Dodge Jeep Ram, who brought one of three dealership lawsuits. “In a way, it’s really a double-punch to the dealer, though it also gets passed along to the consumer. Hopefully, doing this (the lawsuit) can get them to adjust the prices on future harnesses, to offset the overcharging.” The lawsuits—three on behalf of dealerships and seven on behalf of consumers who bought Honda, Toyota and other cars during 20002010—all followed days after the Furukawa plea agreement became public and seek to certify a class action on behalf of harness buyers in
22 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Michigan, California, Minnesota, Arkansas and Mississippi. Detroit area attorneys expect the suits will coalesce soon into one by order of the U.S. Judicial Panel on Multi-district Litigation—possibly before Steeh, or another judge in Detroit. “It does seem like Detroit would be the center of gravity for those cases, because Michigan is home to a lot of the firms and (witnesses),” said Patrick Cafferty, founding partner of Cafferty Faucher LLP in Ann Arbor, MI, which is handling two of the five buyer lawsuits in Michigan. “But then the MDL (multidistrict litigation panel) is not always predictable with those decisions.” The global automotive wiring harness market grew 32.2 percent to $29 billion last year from $21.9 billion in 2009, and could grow to $32 billion by 2012, according to the Global and China Automotive Wiring Harness Industry Report, 2010-2011, released by Dublin, Ireland-based tech analyst firm Research and Markets earlier this year. Yazaki accounts for nearly 30 percent of the global wire harness market. Sumitomo was fastest-growing with 24 percent, while Delphi was third with about 16.7 percent global market share. Local suppliers contacted by Automotive News downplayed the lawsuits. Lindsey Williams, director of corporate relations at Delphi, said the allegations against the company are without merit and Delphi will seek to be dismissed from the suits. Lear said in a statement that it also believes the claims to be without merit, and Misty Matthews, manager of communications for Yazaki North America, said its legal team is reviewing them. Robert Calo, shareholder and co-chair of the white-collar criminal
December 2011 defense practice at Portland, Ore.based Lane Powell PC and attorney for Furukawa in the criminal case in Detroit, did not return two phone calls seeking comment. Attorneys Thomas Gallagher and Matthew Lund of Pennsylvaniabased Pepper Hamilton LLP represent Ukai in the Furukawa criminal case. It was unclear who represents the other executives. David Ettinger, partner and chairman of the antitrust and trade regulation practice group at Detroitbased Honigman Miller Schwartz and Cohn LLP, said it’s possible that two classifications of lawsuits against the suppliers could emerge: one for “direct purchasers” or OEMs that allege they overpaid for components, and another for “indirect purchasers” like dealers and consumers who may have paid a markup. John Barrett, president of the Barrett Law Group PA in Lexington, MS, who brought another proposed class action on behalf of Hammett Motor Co. Inc. in Durant, MS, said dealerships would likely have two sets of legal claims against the suppliers, since they purchase both vehicle inventory from OEMs and replacement wire harnesses for warranty and other repair work in their service divisions. But John Youngblood, chairman of the automotive dealer practice at Abbott, Nicholson, Quilter, Esshaki & Youngblood PC in Detroit, said he is not sure dealers have the best claims since their markups are passed along to consumers. The most likely plaintiffs, he said, would either be large dealerships who stock inventories of replacement harnesses or move a sizable volume of marked-up vehicles each year, or smaller dealers who can be swayed by eager plaintiff law firms into joining class actions.
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
Are We Crossing Into the ‘Outer Limits’ of Automotive Repair? with Gonzo Weaver
“Don’t try adjusting the throttle cable—there isn’t one. I can tell when it’s dark enough for the headlights. Your Air Conditioner is under my complete control, along with steering, windows, stereo volume and braking. Don’t be alarmed, I’m here to help assist in operating your vehicle.” Who am I? Why, I’m your friend, I’m your PCM. Some people may call me a “Human Assistant Logistic” device— call me ‘Hal’ for short. I like that name. I live in your main frame computer. Don’t try to over-ride me. I’ll reduce the power level. Program me without the properly dated software and I may never speak to you again. Push an amperage load in the wrong direction, and I’ll make smoke appear where you don’t want to see smoke. I’m tough as nails, but at the same time, as delicate as a flower. So be careful with me. Now, does that sum up today’s PCM’s? I think it does.
With all the information being passed back and forth we’re no longer fixing cars, but doing advanced electronics caretaking. Hal has a lot of control these days. He’s everywhere in the car, from the glove box to the transmission. We haven’t lost control of the cars we drive, but there’s no doubt Hal has taken over. We are approaching that Space Odyssey of self awareness in computer systems. We’ve accomplished a lot with the advanced electronics on today’s vehicles. The ability to control the exhaust emissions to a point where there is very little in the way of harmful gasses leaving the tail pipe (compared to the 60’s and 70’s) is a scientific and engineering accomplishment that should be applauded. But, doesn’t it sound a little sci-fi to have this electronic nightmare at-
tached to a combustion engine, pounding out a level of torque and performance that has never been seen before in the realm of automotive history? I think of it this way, these days you don’t turn ON the A/C, you merely ask the PCM for permission to turn it on. Seems strange to ask permission to turn on the A/C, but it’s pretty much what you do these days. If all the parameters are correct then the A/C will turn on. If something is out of place, well then, Hal will not allow it to come on until you have corrected the problem. Same thing with the electronic throttle, if the PCM thinks there is any reason for you NOT to be in charge, it will take over and reduce the power level and send you home at a speed of 30 mph or less. What happened to the days when bailing wire, an old piece of hose and a hair pin could get ya back on the road? Gone for sure; I guess we are
moving into that unknown future we’ve heard about. It makes me think of the old science fiction movies of days past. What’s next, Mr. Spock’s “Tri-Corder”? I wouldn’t laugh too hard. I’m waiting for a phone app that will allow you to diagnose the car without leaving your driveway. Oh, it’s out there, and it’s coming our way. Keeping all this in mind, it’s a good time to think about how auto repair is going to be for the future generations. I don’t want to think of myself as an old school fuddy-duddy, so I’ve got to think about adopting some of the new methods of communication as part of my ongoing advertising and community awareness. You just can’t miss the opportunities available on the internet these days. It’s all part of the fast paced communication and information society we are a part of. See Outer Limits, Page 24
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 23
On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Use Estimator Tactics to Close the Sale with Thomas Franklin
Recently I was in a shop where business was kind of slow. And yet a couple of estimators were sitting back “shooting the bull.” Although some shops employ a marketing person, the fact is the estimators are still the real sales personnel in a body shop. In the past, all most estimators had to do was write an estimate when a car comes in and then sell the customer on leaving the keys and the car to be repaired. In these difficult times, few shops can afford that kind of limited job description for their primary selling people. From what I’ve been able to see, a major failing in ineffective estimator salespeople is inertia and reluctance to reach out for new business. More progressive shops are moving away from the old model where the estimator simply sat around and waited for a vehicle to come in to estimate.
Estimators are selected for their ability to communicate to a specific marketing target. One shop always has one estimator who can speak Spanish and another who can speak an Asian dialect that’s common in the area. Also one estimator is dedicated to write estimates at a local dealership, and each estimator is assigned to specialize in one of the shop’s DRP relationships. But is this enough to bring in new business? Sadly, many estimators are not really salespeople. In a retail store they would be called “order takers.” One shop owner, who had been in business for more than twenty years, finally got a drive-in arrangement with a top insurance company. He was so happy about it, he wrote the estimates for the drive-in himself for the first couple of months. He convinced 80% of drive-in prospects to leave the keys and get their car repaired. But
Continued from Page 23
I’m waiting for the time when you drive past a billboard on a lonely night’s drive and the billboard recognizes you, and tells you in big bold letters: “You are due for an oil change. Make an appointment with: (insert name of a shop here).” Why not? It could happen. In a way it is like we have reached the outer limits. Except there really isn’t any limit to what the human mind can dream up. We’ve only started to explore what we can do with a vehicle’s electrical and mechanical systems. Who knows what will be next. Right now, the near future is definitely the smaller displacement engines, which are more than likely going to be turbo charged. With a touch of the hybrid still in the mix, perhaps even the full electric vehicle hanging in there. It wouldn’t even surprise me if the cars ran strictly on a GPS system, and the driver didn’t do a thing but sit there. So can Hal take over the automotive industry? It’s possible. Since money is always involved in the future of the automotive world, there is no doubt that if there is a way to control a vehicle after the sale, I’m sure they’ll find a way to accomplish it.
Outer Limits
A good example of this is my latest intern at the shop. I was showing him how the IDS (Ford diagnostics and scanning machine) runs on a laptop based program. He already had the whole thing figured out; before I even got into the diagnostics part of it he was showing me short cuts with key strokes and things I never knew about. But, this is the generation that has grown up with computers. This is their world of PC’s and video games. Me, I’m lucky I can get through a round of Ms. PacMan without screwing it up. My point: cars and transportation are taking on a whole new era of sophistication. The likes of which, we as the older generation of techs read about years ago but never thought would come to pass. Well it’s here now, and even though a timing belt still doesn’t come off of its tensioner without a human hand doing the job, it might take a PC to recalibrate certain issues after it’s installed.
24 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
when the task was turned over to several different estimators, most didn’t even manage to convert 50%. What made the difference? Obviously the owner had real selling skills. The others didn’t. Some of the consolidator shops and dealership shops I’ve visited seem to have estimators with better selling skills. I’ve asked a few what they do that closes the sale for them. Here is a brief list of some of what I was told: ● Maintaining a professional appearance, often with shirt-and-tie for men, and comparable professional attire for women. ● Sincerely complimenting a prospective customer early on, to try to establish an early emotional bond. ● Building rapport by drawing on comparable stories of accidents that happened to friends and family members. These salespeople took the time to contact many friends and family
members so they would have a ready arsenal of stories to tell. ● Building rapport by stimulating a more personal level of communication. A common strategy is have photos of the estimator’s children on the desk (even if the photos are many years old, showing the children as tiny tots). ● Keeping novelty items and items of interest on the estimating desk to stimulate personal conversation or having a special toy available to occupy a child who accompanies a prospective customer. ● Posting I-CAR and other certificates of achievement near the desk to show competence and professionalism. ● Keeping an album at hand with a selection of worse wrecks than the one at hand, that were successfully restored to perfect pre-accident condition. ● Having ready explanations of technical problems in language most people can understand without becoming
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confused or feeling put down. ● Taking on the problems of the prospective customer, in dealing with the insurance company, providing a ride, getting a rental car if needed and helping to arrange a convenient schedule for the customer. ● Involving the prospective customer in the writing of the estimate, explaining each line, showing illustrations on the computer (if available) and generally demystifying the estimating process. ● Being well informed of what giveaways will be acceptable in a tight negotiating situation. The usual elements are car-wash, free detail, color sand and buff, or repair of minor unrelated damage. There was one more tactic that interested me: Showing prospective customers comparable cars in the shop in the process of being repaired or beautifully completed to reassure them that the shop is capable of restoring their car to perfect, pre-accident condition. It reminded me of an article about Marie Callender who had just died. Yes, there really was a Marie Callender. She worked in a little deli in Long Beach, California, right
around the turn of the century. She started baking pies for the deli and, with her husband, soon opened a little coffee and pie shop to sell some of her pies directly. Her pie shop was very successful because she did something no one else ever did: She put her ovens right in the front window of the pie shop so people could see her baking those pies. Today this is common practice, from pizza to sushi, but Marie was one of the first to see it had great potential marketing power! This is just one of the many strategies and tactics effect estimatorsales people have used. But given the emotional upset most people experience after an accident, perhaps this one provides very visible and tangible evidence that this is the best place to have their vehicle repaired. Even an estimator with few selling skills can use a tactic like this to advantage.
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Aftermarket Associations Complain to FTC About Mazda’s Claims Regarding Warranty Policy
The Automotive Aftermarket Industry Association (AAIA) is again calling on the Federal Trade Commission (FTC) to take action against a carmaker—this time Mazda—for its policy statements relating to the use of aftermarket parts for vehicle repairs. Similar complaints were made by AAIA against Honda in 2010 when the FTC sided with the carmaker. In a letter to the FTC’s Associate Director for Marketing Practices, Lois Greisman, the AAIA—along with the Automotive Oil Change Association (AOCA), the Service Station Dealers of America, and the Tire Industry Association—argue that Mazda’s claim in a recent brochure that “aftermarket parts are generally made to a lower standard” is unsubstantiated. The groups say this is misleading consumers and are calling on the FTC to require Mazda to either to provide substantiation of their claim or issue a retraction. The letter states that “The wording in the Mazda release totally contradicts FTC’s alert by making the assumption that the aftermarket part would cause the warranty not to be honored rather than the fact that the use of the aftermarket part is permissible unless proven otherwise. Therefore, AAIA and AOCA further request that the Commission take immediate action to require Mazda to withdraw the release and issue a correction: that use of non-Mazda parts are permissible, and that it would be Mazda’s burden of proof to prove a non-Mazda part caused any alleged damage before denying warranty coverage. The AAIA claims that statements made by Mazda are misleading consumers about the use of aftermarket parts and those statements are a violation of the Magnuson-Moss Warranty Act, a law that says companies may not condition warranty coverage on the use of only original equipment parts. The letter also takes issue with a statement by Mazda that “Only Genuine Mazda Parts purchased from an authorized Mazda dealer are specifically covered by the Mazda warranty. The original warranty could become invalid if aftermarket parts contribute to the damage of original parts.” The aftermarket groups contend that the wording of this paragraph, combined
with the statements regarding the quality of aftermarket parts, is intended to misinform consumers about their vehicle warranties and are in violation of the Magnuson-Moss Warranty Act.
Previous Complaint Against Honda Last year, the FTC received a similiar complaint regarding a release from Honda and Acura. The AAIA complaint stemmed from a Honda statement that said the carmaker “will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than genuine Honda/Acura.” However, in a December 2010 response to the AAIA, the FTC disagreed with AAIA’s claims. The FTC explained in its response to AAIA that while the MagnusonMoss Warranty Act does prohibit warrantors from conditioning warranty coverage on the use of only authorized parts, warrantors are permitted to exclude liability for damage or defects caused by the use of unauthorized parts. The commission explained that a warrantor may expressly exclude liability for defects or damage caused by ‘unauthorized’ articles or service; and may deny liability where the warrantor can demonstrate that the defect or damage was caused by those unauthorized parts. The FTC concluded, “While we appreciate your view to the contrary, we interpret the American Honda position statements to state that American Honda will not deny warranty coverage for the mere use of an unauthorized part, but rather for damage or defects caused by those parts,” and that, “American Honda does not appear to be in violation of the Act’s tying prohibition.” In response to the FTC’s interpretation, the AAIA said in its Mazda complaint that, “it appears that the absence of action as we requested by the Commission on the Honda release is leading more and more car companies to not only engage in similar misleading tactics regarding the use of nonoriginal equipment parts by consumers, but also to ratchet up the unlawful rhetoric. Immediate action is needed to both protect consumers from Mazda in the short term, and to stop other automakers from jumping on this anti-consumer bandwagon.”
Give us your opinion on matters affecting the industry.
write us! publisher@autobodynews.com
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 25
Body Shop Law
Martin Zurada is a San Francisco-based attorney who regularly advises and litigates on behalf of California’s auto body repair businesses. Contact him at: m.zurada@sflawyer360.com
How to Prepare, File and Win a Claim in Small Claims Court with Attorney Martin Zurada
Sooner or later you will pay for a faulty product, deliver a product or service that you did not get paid for, or have a dispute with another business. Regardless of how the dispute occurs, someone will owe you money but will refuse to pay. If the dispute is over a large sum of money, you will typically need to file a regular lawsuit which tends to be complex, cumbersome, and expensive. However, there is a special division within each California court devoted entirely to resolving smaller disputes in a speedy, informal, and inexpensive manner—it is called the small claims court. This article explains the basics of how to sue in small claims court, and the steps you need to take to maximize your chances of winning. Keep in mind that this article provides general guidance only, and is not a substitute for legal advice. There may be facts specific to your situation that must be addressed by a lawyer or a small claims legal advisor.
Who can sue in small claims court? Generally anyone who is at least 18 years old and mentally competent can sue in small claims court regardless of their citizenship. Suing in small claims court is called making a claim. The person making the claim in small claims court is called a plaintiff, and the person against whom the claim is made is called a defendant.
How much money can I get? As an individual plaintiff, you can make a claim for up to $7,500 in small claims court, and as a business plaintiff (partnership, limited liability company, or corporation) you can make a claim for up to $5,000. If you are owed more than that, you can still sue in small claims court as long as you reduce your claim to the maximum allowed. There are some limits designed to prevent abuse of the small claims court system. You can file as many claims as you want for up to $2,500 each, but you cannot file more than 2 claims per calendar year for more than $2,500. The limitation is applied only if the same person or legal entity is making multiple claims within the same calendar year.
How do I file a small claims action? If you decide that you want to go ahead with your small claims action, you need to complete all of the steps described below. Make a demand for payment: You must demand payment from the other person, and that person must refuse to pay or ignore you. It is best that this demand be a letter that states how much money is owed, why the money is owed, and that you will go to court if the money is not paid by a certain date. If you are a business attempting to collect debts from consumers, you need to consult a lawyer to make sure that you are obeying special state and federal laws protecting the consumer. Decide the proper small claims court in which to sue: You need to make sure that you choose the right small claims court to sue the defendant. You may be able to sue where the dispute took place, where the person you are suing lives, where the firm you are suing does business, or where the contract you made was supposed to be performed. If there is more than one proper place to sue, you can choose the court that is most convenient for you. Determine the full name and address of the defendant: You also need to make sure that you know the defendant’s full legal name and address. Information about businesses registered to do business in California can be found on the website for the California Secretary of State at www.sos.ca.gov. Each county also keeps track of businesses in the county through its local fictitious business name registry. If the business is registered as a corporation or a limited liability company with the Secretary of State, it should be sued under its full and correct legal name. If the business is not registered it means that it is a partnership or a sole proprietorship, and the actual owners of the business need to be sued under their names with a “d.b.a.” (short for “doing business as”) notation that states the name of the business. For example “John Smith and Jane Doe d.b.a. ABC Flower Shop.” If you put an incorrect name for the defendant on your small claims
26 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
complaint, the case may be dismissed or you may have trouble collecting from the defendant. Determine how much you are owed and why: You need to know exactly how much money you are claiming, the reason why you are claiming the money, and the date and place where the dispute started. Obtain the proper form and complete it: You need to obtain Plaintiff Claim and ORDER to Go to Small Claims Court form SC-100 from the court or on line at www.courtinfo.ca.gov (this website also contains the other forms mentioned in this article). Fill the form out completely and sign it. File the Plaintiff’s Claim: You need to bring an original and one or more copies of Plaintiff’s Claim form to the proper courthouse and file it with the clerk. Make sure that the clerk gives you back a stamped copy of the Plaintiff’s Claim you just filed because the defendant will need to receive a stamped copy of this form (see next step). When you are filing the form, the clerk will ask you to pay a fee which can generally range between $30 to $100 depending on the amount of your claim, and on the number of small claims actions you filed in the past. The court where you filed the small court claim will set a date when the case will be decided—this is called the “hearing date.” The hearing date can be between 20 and 70 days after you file your claim. As a plaintiff, if you are doing business under a fictitious name, and the claim arises out of the operation of the business, you must also file Fictitious Business Name form SC-103 with the court stating that you have complied with the fictitious business requirements of your county. Serve defendant with the Plaintiff’s Claim: You need to notify each defendant about your claim by “serving” him or her with a copy of the stamped Plaintiff’s Claim that you filed with the court. There are a number of ways to serve a defendant, but to make sure that the service is done properly it is best to hire a professional “process server” to do this for you. Service must be done fairly quickly
after you file your claim. If the defendant lives in the county where your claim is filed, you must serve him at least 15 days before the hearing date. You should ask the server to complete and sign Proof of Service form SC-104 for each defendant. The completed and signed Proof of Service form must be filed with the court at least 5 days before the hearing. Defendant can file a counterclaim against you: After defendant is served with your claim, he or she may file a counterclaim against you. This is called a “counterclaim” because it is a claim made by the defendant in response to a claim by the plaintiff. A defendant’s counterclaim is also limited to the maximum claim amounts allowed in small claims court. This means that in addition to defending against your claim, the defendant may also sue you for a dispute relating to your claim, or to any other dispute between you. Your claim and the defendant’s counterclaim will be resolved together at the hearing.
How do I prepare for the small claims hearing? The court will set a date and time for the small claims hearing. The hearing will be your opportunity to prove to the judge that you are owed money by the defendant, and, if there is a counterclaim, to prove that you do not owe any money to the defendant. Collect documents: The best way to prepare for the hearing is to collect all of the physical evidence in your possession—letters, contract, emails, pictures and any other relevant documents to support your case. In small claims cases there is no opportunity to discover what documents and witness the other side will bring with them, until the actual hearing. Talk to witnesses: You will also need to decide whether there are any favorable witnesses who are willing to testify for you at the hearing. Generally only witness who heard conversations or saw the events you are complaining about will be helpful to your case. You may be able to force a witness, other than the defendant, to come to the hearing by serving them See Small Claims, Page 34
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 27
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Industry Undecided Which Will Prevail in NACE vs. SEMA with The Insurance Insider
You can ring the bell as Round 2 of nitely worth it if only for the enterthe “Battle of the Century” has ended. tainment value. The collision industry Yes, “NACE vs. SEMA, Part 2” was section of SEMA is really of no convery different from the prior year. The when you constantly find with Chasidy Rae sequence Sisk battleground changed from a Las your head spinning around to catch a Vegas faceoff to an Orlando vs. Las Vegas showdown. This year’s winner is in the eye of the beholder. NACE (the International Autobody Congress Exposition) withandChasidy Rae Sisk and its sponsoring organization, the Automotive Service Association, have staked their claim as the undisputed “Collision Industry Trade Show Champion.” Meanwhile, the Society of Collision Repair Specialists has teamed up with SEMA and announced their contention to be the new “Heavyweight Champion.” glimpse of eye-popping and jaw-dropSo who was this year’s winner? I ping vehicles, booth celebrities and personally think it was a draw—with spokesmodels. At times, as you walk one exception: There was a clear loser. around on the show floor, you may I’ll give you a hint. It’s an eight letter wonder which Vegas trade show you word that begins with an “I” and ends are actually attending. with a “Y.” The collision industry is In comparison, NACE had less divided and stuck supporting two eye-appeal but maybe a lot more buytrade shows. The NACE and SEMA appeal. NACE was significantly divide is all about “I” (rather than smaller but the content, direction, and “we”) and the industry is holding the focus was clearly different. The disbag and left asking “Y?” So how and cussion around quantity vs. quality is why is the industry losing in a fight it certainly one aspect that shouldn’t be never asked for? overlooked. More attendees doesn’t I was one of a small percentage automatically translate into a more of people who had the good fortune successful show. That’s why I say and fortitude to attend both shows. I beauty is in the eye of the beholder. It experienced both the aging NACE and all depends on your purpose for atthe upstart SEMA show. I was forced tending: entertainment and personal to dedicate two-plus weeks to accom- vacation, business and purchasing, plish what normally would take me fact-finding—or simply just to get one week. I successfully met with all away from your shop or spouse. the individuals and companies that reOf the few thousand avid readers quested my presence and knowledge. of my column, several recently reIf you took a poll tomorrow, I’m sponded to last month’s article about convinced the industry-at-large would NACE. I want to thank them for taking vote for one trade show. And if you the time to share their thoughts, and I’d asked if there was a need for any trade like to address several of their points. show, those results may even be more I agree with some that NACE, for astounding. Have trade shows gone many years, was a beacon for the colthe way of the dinosaur? Has SEMA, lision industry. There was a period of by virtue of adding a collision repair time when the industry was changing section, redefined the scope of trade so quickly that NACE was an absolute shows to a circus-like atmosphere de- can’t-miss event. It was a time prior to void only of the bearded lady and ele- the Internet, a time when the industry phant man? was growing at an accelerated pace I’m not sure if I can answer those and becoming more technologicallyquestions. I will tell you that if you advanced as well as professional in all have never attended SEMA, it is defi- aspects of the business. NACE was
Northeast News Shop Showcase
28 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
needed, and as a result, it thrived. As years passed, attendance slowly dwindled and the industry called for change. NACE organizers didn’t respond or act as quickly as many had hoped. As a result, it opened the door for competition. In a changing market, you need to be able to adapt or you lose the sale. NACE lost the sale, and Round 1 of the “Battle of Century” last year went to SEMA. Round 2 this year, by my card, was a draw. For all my criticisms of NACE, SEMA is not yet the clearly better show for the industry. And unlike “Rocky 3,” “Jaws 3” or “Fried Green Tomatoes, Part 3,” (in which Jessica
Tandy is reincarnated), I’m actually looking forward to “NACE vs. SEMA, Part 3.” SEMA’s size has sustained it, but NACE’s multiple locations will support it as well. Eventually, this fight is going to end and there is going to be a winner. The industry will eventually prevail and have an undisputed champion of an annual collision trade show.
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like him to address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
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ASRW 2011: Attendance Up 18%, Positive Feedback from Exhibitors “By far the best NACE in our 11 year history. We expected we would have a good number of new shops stop at the booth and that was for sure what happened. We gathered twice as many leads as last year, and we closed 3 times as many sales on the floor as last year. Overall a fantastic NACE, and we can't wait for New Orleans,” said Dave Henderson, AutoWatch. “Congratulations to NACE. Great turnout. Manufacturers are jumping at the bit about New Orleans. Been a fabulous surprise,” commented Bruce Mather, Dir. of Marketing HMS Warehouse (ChemSpec). Additionally, advance exhibit space sales for ASRW 2012 began onsite and to date 20% of the show floor is already sold. Many verbal commitments have also been received and are expected to become firm commitments by the early-bird deadline of Nov. 15, 2011. For a complete listing of 2012 ASRW exhibitors, visit www.NACEexpo.com or www.CARSevent.com. “Whatever you did—it’s working. We’re local and we had a lot of people coming up to us thanking us
Automotive Service & Repair Week (ASRW) 2011 was held October 5 through 8 in Orlando, Fla., and conclusive results deem this year’s event the most successful in recent years, largely attributed to an 18 percent increase in overall attendance and strong initial sales for the 2012 event. ASRW 2012 is scheduled for Oct. 11-13 at the Morial Convention Center in New Orleans, La. (Educational sessions will begin Oct. 10, 2012.) Ron Pyle, ASA president, commented on the event’s outcome saying, “Since we’ve returned from the show, we’ve been inundated with an outpouring of positive feedback, success stories and personal testimonies of the impact of this year’s event. It’s evident a tremendous amount of business was transacted in Orlando last week, and we could not be happier with the upswing of ASRW 2011.” Total attendance for the 2011 event was 19,221, of which a third of the participants were from the east coast and another third were new attendees.
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for the invite to the show this year. It’s been really good,” said Ron Andress, R.M. Andress/Evercoat. “What a great expo! We talked to a whole new group of collision repair owners at this expo and we look forward to next year in New Orleans to see a different group of collision repair professionals,” stated Scott Saal, Auto Data Vin Labels. “NACE allowed us the opportunity to showcase our services in a well-organized and exciting environment. Everyone was upbeat and enjoyed very engaging conversations. The networking opportunities for any exhibitor are great. We were glad to have this opportunity and are already getting excited for New Orleans next year!" said Matt Broyles, Operations Director, CARS. “Autoshop Solutions experienced yet another spectacular year at CARS and NACE this year—a remarkable event. One that I hope you benefited from. If you missed attending this year, I hope to see you next year in New Orleans!” said Danny Sanchez, Autoshop Solutions.
Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members
Hughes Telematics is partnering with AAA Club to offer In-Drive-connected services to the automobile club’s 12 million drivers in 20 states. As previously announced with State Farm Insurance, the In-Drive system operates similarly to GM's aftermarket OnStar system. InDrive connects the vehicle and its driver to Hughes operators in the event of an emergency or accident. Devices plugged into the vehicle’s On-Board Diagnostics port and mounted on the visor connect the driver and the vehicle to Hughes’ team of operators, who are available to help drivers coordinate emergency response and detect when a vehicle has been in a crash. AAA hasn’t finalized its offerings or come up with pricing, but indicated it would like to offer members roadside assistance, auto crash notification, emergency calling, diagnostics, and stolen vehicle location, said Kevin Link, senior vice president of marketing for Hughes Telematics. The automobile club may also use different In-Drive device models. ACP will release more information when its In-Drive program launches in the first half of 2012.
Women Drivers at Greater Risk in Car Crashes, Says Study A new report by the American Journal of Public Health finds that female drivers are at a greater risk of injury or death when involved in car crashes, because seatbelts and other lifesaving devices installed in cars are not designed for their bodies, according to reports made by ABC News. The report said that on average, women are shorter, lighter, tend to sit in different positions and drive newer passenger cars when compared with men. Because of these factors, the odds of a woman sustaining an injury while wearing a seatbelt were 47 percent higher than for men wearing seatbelts. One reason safety systems are designed more for the male population is that men are three times more likely to be involved in a car crash that leads to serious or fatal injuries. In recent years, however, there has been an increase in female drivers getting into these types of accidents. Although Clarence Ditlow of the Center for Auto Safety says that the study had the right concept, it doesn’t apply to today’s vehicles. The researchers focused on crashes (and cars) between 1998 and 2008. All of the cars used in the study were an average of six years old. “The average life of a car is around 12 years,” said Ditlow. “The study would have a lot more value if it
were limited to 2000 and later model year vehicles to make sure all vehicles had female friendly airbags,” he said. Since new 2012 models are coming out now, some of the cars used in the study are almost 20 years old. “There wasn’t even a dynamic side impact test standard in effect in 1992,” said Ditlow. Ditlow also said that while the study did highlight the disparity between the risks for male and female drivers, that’s something the government and industry have been working on over the past three decades. The authors of the study said in a statement that “female motor vehicle drivers today may not be as safe as their male counterparts; therefore, the relative www.autobodynews.com higher vulnerability of female drivers … CHECK IT OUT! when exposed to moderate and serious crashes must be taken into account.”
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Continued from Front page
SEMA Heard & Said
of the Las Vegas Convention Center for the event.
Erica Eversman, Attorney
Rich Evans talks with Aaron Schulenberg at SCRS’ SEMA booth
The Society of Collision Repair Specialists (SCRS) said it too saw growth in the training and other events that it held, for the second consecutive year—in conjunction with SEMA. Of the 2,100 total exhibitors—filling a mind-boggling 1 million square feet of space—153 chose to be located in the newly retitled “Collision Repair and Refinish” section of the show, which included about two dozen more companies than last year. Peter MacGillivray, vice president of events and communications for SEMA, said there was a 44 percent increase over last year in the number of buyers who listed themselves as interested in collision repair and refinish. In addition to the collision repair industry vendors, SEMA offers a multitude of tires and wheels and ways to soup-up and trick-out cars and trucks. But for those looking for information and discussion related to the collision industry, there were classes and meetings throughout SEMA week as well. Here’s a sampling of some of what was heard within SEMA week classrooms and meetings spaces.
“What does new automotive refrigerant mean to you? —It means all new equipment. They’re not interchangeable. You’re going to have to buy new manifolds Toby Chess, and a new recovery Trainer system.” —Industry trainer Toby Chess on the new R-1234yf automotive refrigerant now in use in Europe and expected in some 2013 model year GM vehicles. “Under Illinois law, to reverse a case at the (state) Supreme Court level, you
must have a minimum of four Justices. There was already one judge who had recused himself, and so the decision on the important issues, the issue whether to reverse, came down to a 4-2 vote. If you take out Karmeier, the decision [against State Farm] stands. So it’s going to be really interesting to see what the Illinois Supreme Court does because they’re under a microscope.” —Ohio attorney Erica Eversman, during her class on “A New Legal Era in the Collision Industry,” describing the latest legal effort to get the Illinois Supreme Court to review its 2005 decision throwing out a $1 billion judgment against State Farm related to its use of non-OEM parts. Plaintiffs attorneys argue Justice Lloyd Karmeier, who voted in favor of State Farm, should have reDan Bailey, cused himself from CARSTAR the case because of what they say was the level of the insurer’s backing of Karmeier’s election campaign.
“I just love this industry and the people in it. I’ve been in for 36 years and hope to be in it another 10 or so.” —Dan Bailey from A & B CARSTAR in Kansas City, Missouri, upon being the latest to be inducted into the collision industry’s “Hall of Eagles.” Bailey, the former president of CARSTAR’s national corporate organization, was recognized for a career that has inHerb Lieberman, cluded serving on LKQ many industry boards and advisory groups.
“During the week of October 10, my company attended salvage pools in the United States where there were 65,000 vehicles up for bid. Of those, 25 percent, or about
30 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
16,250, were sold for export out of the United States. My company—which only buys total loss vehicles for end-of-life processing—that week bought 7 percent, or about 4,500 vehicles. Another 20,000 were sold to our competitors for processing in the United States. So that leaves 24,250 vehicles left in the United States from that single week’s sale. I ask you, ‘what happens to those vehicles?’ How many of those vehicle should have remained in your shops for repair for the consumer? This is an issue I think we really need Randy Hanson, to address. Maybe Allstate we can work together to do something. As I see this, if we could have repaired those vehicles, there were over 1 million opportunities [we could have gained] in one year.” —Herb Lieberman of LKQ Corporation, urging repairers and insurers to work together to reduce the number of vehicles being declared total losses and not being repaired by the industry. “Customers are looking for more value through the entire transaction. If you look at
the insurance (process), typically you get an appraisal inspection, someone hands you a check, and you’re done. We’re starting to toy with the idea of whether post-repair inspections makes sense… I think it opens another dimension in terms of what you can bring the customer. Outside of their home, their automobile is the most expensive investment they make. I think customers are demanding more from that Bob Keith, (insurance claim) CARSTAR transaction, and I think we’re going to be charged with finding ways to provide that. Post-repair inspections are something that J.D. Powers highly recommends. Not a lot of folks are doing it. It’s time-intensive. It’s expensive. But the customer has an expectation that it adds value to their insurance and repair transaction.” —Allstate’s Randy Hanson “Roger Cada (of State Farm) and I were standing at the American Iron and Steel Institute conference talking to one of the top steel engineers from one of the largest steel manufacturers in the world. Roger asked him, ‘From your research, what’s
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going to happen to some of these new steels if we heat them or we weld them incorrectly. Will there be a little more intrusion (in a subsequent accident) or a minor change in airbag timing?’ And the guy said, ‘No, from our research, it’s catastrophic failure.’” —CARSTAR’s Bob Keith
“It may not be the repairers in this room, but we have customers going to repairers that may not or should not be fixing certain things. Or maybe they’re fixing stuff that shouldn’t be fixed. But our hands are tied in some ways. Customers have the right to choose where they want to go.” —Progressive’s Chris Andreoli
“It’s certainly not the place for an insurance company to steer a customer to a shop. But I do think the manufacturer should play a role in that. I think you’re seeing more and more OEMs getting Steve Nantau, involved in shop cerFord tification. That (certification) doesn’t mean you’re going to get 100 percent correct repairs, but it in-
creases the opportunity that that will happen. And automakers can steer their customers to those shops.” —Ford’s Steve Nantau
“We used to say ‘repaired to pre-accident or pre-loss condition.’ Here’s the reality of that: A laser-braised roof. You cannot do that in the field. It’s impossible. So the procedures are to weld and glue that roof. You get the same usefulness out of the vehicle. But is that Doug Craig, vehicle ‘pre-accident Chrysler or pre-loss condition’? Our focus is to restore the crashworthiness and usability of the product. You’re going to see more verbiage like that. —Chrysler’s Doug Craig
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
13 Las Vegas Families Receive Gift of Reliable Transportation this Year at SEMA With Recycled Rides The National Auto Body Council (NABC) awarded refurbished vehicles to 13 Las Vegas families this year on Thursday, November 3, at 2:30 p.m. outside of the Las Vegas Convention Center in conjunction with the SEMA Show. Family Promise, the charity who assisted these families, also received a vehicle at this event to further help them assist hundreds of families in crisis in the Las Vegas area. Each of the families received the gift of a refurbished vehicle from NABC members through the organization’s Recycled Rides® program, a national initiative through which NABC members refurbish donated vehicles and gift them to families in need and organizations dedicated to assisting others. Through their generous support, the following NABC Diamond Members donated vehicles: State Farm, Allstate and EnterpriseRent-A-Car. Additional vehicles were donated by GEICO, American Family, AAA of Northern California, Nevada and Utah Insurance Exchange. NABC members Sterling Collision Centers,
911 Collision, Caliber Collision Centers, Gerber Collision & Glass, Collision Authority, Collision Masters CARSTAR East and two area Vo-tech schools, Southeast Career Technical Academy and the College of Southern Nevada, repaired the vehicles. Each recipient family is a graduate of Family Promise of Las Vegas, a non-profit interfaith network that provides support to families in crisis. The NABC has made it a point to give away Recycled Rides vehicles at Las Vegas industry events each year of the program’s existence. “We’re happy to be back in Las Vegas to give these families the reliable transportation that can help provide them a fresh start,” states Recycled Rides Co-Chairman Michael Quinn, of 911 Collision Centers, a Caliber Company. “I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry at large.” Please visit www.autobodycouncil.org for more information.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 31
BodyShopBids.com Processes $1.5 Million in Estimates in 5 mos. BodyShopBids, an online and mobile platform that enables consumers to solicit custom car repair estimates by uploading a photo, announced on Nov. 10 that it has written $1.5 million in body repair estimates within its first five months of service. The Lightbank-funded company launched in June 2011. Since then, BodyShopBids has partnered with more than 160 body shops in Chicago and saved its customers an average of 60 percent on each car repaired, the company claims. Accessible for free via iPhone, Android and the Web, BodyShopBids is the first of its kind to connect consumers who need auto body repairs with body shops through a unique bidding system. Consumers upload a photo of their damaged vehicles and receive custom quotes from nearby body shops within 24 hours. A personal concierge also educates consumers on the repair process. From there, the consumer chooses an estimate and books an appointment with the body shop. “We’re excited to experience such tremendous growth in a short period of time, and our goal is to continue to build on that success,” said Brad Weisberg, founder and president of BodyShopBids. “We’ve seen that
there’s a demand for a service like ours-people want to be able to find reputable body shops nearby, choose the fairest price, understand what’s actually wrong with their car and book an appointment, all from the comfort of their own home. We want to expand what we’ve started in Chicago to other cities in the very near future.” Unlike other companies that provide auto repair estimates, BodyShopBids does not require detailed information on damage to the consumer’s car. The company works with local body shops to ensure they honor estimates and provide reputable service. BodyShopBids is currently active in Chicago, with plans to expand to Los Angeles and other U.S. cities in the upcoming months. BodyShopBids is a Chicago-based startup, funded by Lightbank, which provides a web and mobile platform to connect consumers who need auto body repairs with body shops through a unique bidding system. The company’s technology allows users to easily upload photos of damage vehicles and receive custom quotes from local body shops, all for free. To learn more about BodyShopBids, visit their YouTube demo video or website: www.BodyShopBids.com.
Boyd-Gerber-True2Form Group Reports 41% Sales Increase
Boyd Group Income Fund, operator of 166 North American auto body shops, reported its financial results for the three-month and nine-month periods ended September 30, 2011. Highlights: ● Record sales and Adjusted EBITDA when compared to previous third quarter results ● Sales increased by 41.1% to $97.3 million from $69.0 million in Q3 2010; True2Form Collision Repair Centers, Inc. (“True2Form”), Cars Collision Center of Colorado, LLC and Cars Collision Center, LLC, (collectively “Cars Collision”), and seven other new locations contributed $26.3 million of sales ● Same-store sales increased by 8.7%, excluding the impact of foreign exchange translation ● Gross margin increased to $43.5 million or 44.7% compared with $31.5 million or 45.7% in Q3 2010 ● Adjusted EBITDA totalled $6.4 million compared with $5.0 million in Q3 2010 ● Payout ratio was 24.9% compared with 16.9% in Q3 2010, due in part, to a higher level of distributions ● The Fund completed a bought deal public offering, issuing 1,300,000 units out of treasury at a price of $10.75 ● On September 16, 2011, the Fund
was added to the S&P/TSX SmallCap Index ● Fund Trustees approved a 7.1% increase in distributions to $0.0375 per unit “Results for the third quarter of 2011 are solid, driven by positive growth in same-store sales despite continued challenging market conditions,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “Although unemployment and gas prices remained elevated and miles driven has continued to trend downwards, we have been able to grow revenue as a result of successful operational execution and superior industry position. The completed acquisitions of Cars Collision and True2Form have proven to be incrementally positive to our business, meeting and exceeding our expectations. As the largest multilocation collision operator in North America, both in annual sales and number of locations, we continue to look to leverage our scale to capitalize on attractive opportunities going forward. The equity injection of approximately $12.7 million, net of costs, this quarter strengthens our balance sheet and puts us in an excellent position to execute on future opportunities.”
32 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Barrett-Jackson President’s Custom Ford Fairlane Garners $700K
Back-and-forth bids escalated furiously on the 1964 Ford Fairlane at the recent Barrett-Jackson’s 4th Annual Las Vegas auto auction. Boldly painted in the striking “Red Hot Chili Pepper” hue from the Sherwin-Williams® Planet Color® Barrett-Jackson® Collector Color Series, the car was the top-selling vehicle of the event, garnering $700,000—and all going to one, very important charity.
The winning bidder showed his gratitude to those serving in the American military and their families, with one-hundred percent of the sale’s proceeds benefiting the Armed Forces Foundation, a national non-profit organization that provides support for wounded service members and their families, through Project American Heroes. Additionally, Barrett-Jackson waived its commissions on the sale, as it has on all charity sales in recent years. “Our men and women in uniform are on the front lines every day, and their families are continually called upon to put oth-
ers first. We at Barrett-Jackson feel strongly about this incredible group of people and amazing charity, and that’s why I am willing to give up one of my prized possessions to show how thankful I am,” said Steve Davis, President of Barrett-Jackson, and (previous) owner of the Fairlane. The car underwent hundreds of hours of restoration and detailing, and was a showstopper at the 2009 SEMA convention, where it was displayed at the Sherwin-Williams Automotive Finishes booth. It features a Roush Performance 427IR, 8-stack fuel injection 560 HP engine with a torque of 540 ftlbs and a Tremec TKO 6 speed. Its custom finish comes from the Sherwin-Williams Planet Color BarrettJackson Collector Color series—a line of optically enhanced automotive paints containing special combinations of highly reflective additives. The color, “Red Hot Chili Pepper” (#PCFP2), is one of 25 colors in the factory package, custom paint line. Planet Color Custom Paints and Finishes, including the Sherwin-Williams Planet Color Barrett-Jackson Collector Color series, are available at SherwinWilliams Automotive Finishes branches and other participating distributors throughout North America. For more information about Planet Color finishes, visit www.planetcolor.com.
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Aftermarket Legislative Summit Opens Registration
Registration is now open for the annual AAIA Aftermarket Legislative Summit, scheduled for March 14–15 in Washington, D.C. The event provides an opportunity for members of the automotive aftermarket from across the country to fly in for meetings with their elected officials and discuss issues of importance to their company and the industry. The summit will be kicked off with a briefing session at 3 p.m. on Wednesday, March 14. The briefing session will feature speakers from both the public and private sectors who will touch on everything from aftermarket-specific issues to the overall political climate in Washington. On Wednesday evening, the congressional reception will be held in Rayburn House Office Building and will provide an opportunity to network with fellow aftermarket professionals and congressional staffers. The following day, Thursday, March 15, will be entirely dedicated to appointments with the individual congressional offices. Registration is free and the summit staff will make legislative appointments. Those attending need only to take care of travel and hotel arrangements.
Continued from Page One
DOI Meeting
“I fix 1,000 cars every month and at least 70% of them contain aftermarket parts, prescribed by the insurance companies,” Crozat said. “In many cases, the aftermarket parts are equal in quality when compared to factory parts and price is always a huge issue. By using aftermarket parts many cars that would have been totaled can be fixed. For example, a bumper on a 1998 Toyota Corolla from the factory costs $239, but I can get a comparable set for $74 from the aftermarket. We need the aftermarket to provide competition for the OEMs. Can you imagine what factory parts could cost if there was no aftermarket?” Crozat questions the word “defective” in the proposed revisions, he said. “They need to be more specific there, because it’s too loose and open to interpretation. Who is going to determine that these aftermarket parts are defective and what does defective mean? There is just too much wriggle room here and that needs to be addressed.”
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Overall, Crozat lauds the Insurance Commissioner’s efforts toward clarifying the factory vs. the aftermarket dilemma, he said. “The 500lb. gorilla in this industry is the labor rates issue, but this is a good start and we’ve needed a meeting like this for quite some time. Opening up dialog and sharing ideas is always important and the DOI is doing it the right way.” Son Sean Crozat, manager of G&C’s Santa Rosa location, said that it all comes down to the consumer. “The market will take care of itself. If the majority of the aftermarket parts out there were truly defective or inferior, body shops wouldn’t use them. If all these damaged cars were totaled by the insurance companies, rates would go up and the customer would suffer the most.” Gigi Walker is the owner of Walker’s Auto Body and Fleet Repair in Concord, the Past President of the CAA and a current board member, as well as the former president of the East Bay CAA’s chapter. She was enthused about the meeting and the positive things that could result. Before the meeting she told Autobody News: “I hope these new regulations proposed by Commissioner Jones will better hold accountable the parts that don’t work to the insurers,” she said. “As you know, many shops don’t get reimbursed for parts that don’t fit properly. These proposed revisions just might help the collision repairer to recoup the costs associated with illfitting aftermarket parts. These might not cover a DRP contract position with an insurer/collision agreement, but by Commissioner Jones opening up the conversation it’s definitely good for both sides of the industry. I’ve never seen this before, so it’s very promising. “The OEMs have procedures in place for the replacement/welding of certain components on vehicles and to make sure that these are mandatory in the written estimate and in the repair process are crucial in delivering a quality repair to the consumer. I hope some of the changes make the repair process for the collision repairer and consumers better, because that’s what it is all about. The first change adds more specific requirements for estimates written by insurers. Current law simply requires insurers to write an estimate that will allow the repairs to be made in ‘a workmanlike manner.’” The proposed regulations would
require an estimate to be written “which will allow for repairs to be made in accordance with trade standards for good and workmanlike, mechanical, autobody and frame repairs and shall include, but not he limited to, repair procedures performed in accordance with original equipment manufacturer service specifications or, if manufacturer specifications and procedures are not available, nationally distributed and periodically updated service specifications that are generally accepted by the auto body repair industry. No insurer shall willfully depart from or disregard accepted trade standards for good and workmanlike repair in the preparation of claim settlement offers or estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision repair estimating software guidelines for use and repair.” “In addition, if an insurer should choose to adjust a shop’s estimate, newly proposed regulations would require the insurer to detail each adjustment made to the shop estimate along with the cost associated with each adjustment.” In proposed rules dealing with aftermarket parts, insurers would be required to communicate in writing that it will warrant any aftermarket parts used to be of like kind, quality, safety, fit and performance as original equipment parts. Should a part be found to be defective or unsafe, the proposed rules would require insurers to “immediately cease requiring the use of these parts” and notify the estimating software provider and request the part be removed from the estimating software. Likewise, if a CAPA part is found to be defective the law would require CAPA to be notified. Finally, the proposed regulations contain language requiring that “insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with loss of use or rental car expenses caused by the use of such part.” Inquiries about the meeting should be directed to the department’s Teresa R. Campbell; Phone number: 415-538-4126; E-mail: teresa.campbell@insurance.ca.gov.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 33
Some facts may be important to you but have nothing to do with the claim: Sometimes you may tell facts to the judge, and he or she may interrupt you telling you that the facts you are trying to explain are not relevant to the case. If you disagree and believe that the fact are relevant, politely tell the judge why the facts you are bringing up are important, and ask the judge to give you a few minutes to explain them. Oftentimes, you will have negative information about the defendant, which you may want to tell to the judge but which is not important to the case. Consulting an attorney may help you determine which of the facts may be relevant and the best way to present them to the judge. Do not expect a decision right away: The judge may make a decision in court after hearing all of the evidence or may mail the decision to your home. Most likely, the clerk helping the judge will mail to you a Notice of Entry of Judgment informing you of the judge’s decision after you leave court.
What do I need to do at the small claims hearing to maximize my chances of winning? You prepared carefully for the hearing beforehand, and brought relevant evidence and witnesses with you. Now you must know how to behave in court to make sure that the judge understands your evidence and likes you. Come early and come pre-
pared: At least half of the battle is proper preparation. Be at the courthouse at least 30 minutes early. That way if you get delayed you will still make the hearing, and if you are on time you will have time to collect your thoughts and go over your argument. Bring all of your documents and witnesses with you. Be ready to explain your case: The judge may let you talk freely, ask you questions, or periodically interrupt your story with questions. The hearing is informal which means that, even though you will be in court in front of the judge, you will only need to explain and prove the facts. You do not need to know evidence rules or legal theories. It is normal to be nervous in court, and the judge will expect you to be nervous. Take a few deep breaths and try to relax. If you are able to talk freely, tell the judge why you are in court, explain what the defendant did to you, why it was his fault and not yours, and how much money you are owed. If the judge asks you questions, listen carefully and answer them fully. Give the judge copies of all documents that support your case. Be respectful towards the judge and the defendant: Do not get discouraged if the judge is unfriendly or asks you tough questions. This is normal because judges tend to be stern and tough on both sides. Be polite to your opponent and do not interrupt your opponent or their witnesses while they are explaining their side of the story to the judge. It is fine to correct the judge if they get a fact wrong or misunderstand something you said, but you must be very respectful. If the judge starts talking, you must stop talking immediately and listen. Remember the judge has never met you, and will be watching carefully how you behave in court to see if you are a reasonable, civilized and trustworthy person. Be on your best behavior, no matter how angry you are at the defendant.
The Society of Collision Repair Specialists (SCRS) joined with the most prominent collision repair organizations representing the voice of the collision repairer nationally, to issue and sign a joint statement officially recognizing OEM vehicle manufacturer published repair procedures as the industry’s repair standards. The organizations making the declaration with SCRS include the Al-
liance of Automotive Service Providers (AASP), Automotive Service Association (ASA), and Assured Performance Network. The statement was presented on Wednesday, November 3, 2011 to those attending the Collision Industry Conference (CIC) in Las Vegas, Nevada. Their statement reads as follows: “The undersigned organizations continue to be the leading voice of
collision repair businesses and technicians across the United States, just as they have for decades. Representing their interests, we hereby recognize published repair procedures, as provided by automotive original equipment manufacturers (OEM), as the official industry recognized “Repair Standards” for collision repair. These standards, where they exist, shall be the basis for the establishment of
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Small Claims
before the hearing with a special court order called a “subpoena.” However if a witness is unwilling to help you voluntarily, forcing them to come to small claims court with a subpoena may cause them to say things damaging to your case. Prepare in advance what you will say and show to the judge: Your hearing may last as little as 10 to 20 minutes, and plaintiffs often lose cases because they are unable to explain their story to the judge in a calm and organized way, or do not support their story with documents. You need to carefully plan what you are going to say, and what documents you will show to the judge. Most people prefer to write down some bullet points, and rehearse what they will say in front of others. Make at least one extra copy of all important documents and bring the copies and originals with you. Think of what the other person will say, and how you will answer. Remember, it is your job to prove your case to the judge, so come to court prepared. Consider meeting with a lawyer: Even though you cannot be represented by a lawyer in your initial small claims hearing, it is generally a good idea to meet with a lawyer prior to the hearing, because he or she will be able to help you focus on the legal theories and evidence that is crucial to the case.
What to do if I am unhappy with the judge’s decision? You cannot appeal the judge’s decision if he or she denies your claim or awards you less than the amount of money you were asking for. You can appeal only if you are ordered to pay money or to do something. This will only happen if you are a defendant who loses on a claim filed by the plaintiff or a plaintiff who loses on a counterclaim filed by the defendant. To appeal, you will need to file Notice of Appeal (Small Claims) form SC140 in court within 30 days from the date the court clerk mails to you the Notice of Entry of Judgment. It costs about $90 to file an appeal, but the fees change from time to time. The court will mail the Notice of Appeal to the other party and set a new hear-
ing date. There will be a new judge hearing the case on appeal who will not take into consideration the decision in the original case. The new hearing will be similar to the first one, except that you will be able to bring a lawyer with you, and you may have more time to present your case.
What do I do if I need more help? Even though the small claims process is simpler than ordinary court proceedings, it is still a fairly complicated and often intimidating process. In theory, you are supposed to provide the small claims judge with facts and documents at the hearing, and the small claims judge is supposed to weight the evidence and apply the law. However, it often helps to educate the judge about the law, especially if the matter is unusual or complicated. While this general article may be a helpful guide, it cannot serve as substitute for legal advice tailored specifically to your situation. If you are suing as a business in small claims court, there may be state and federal laws that apply to you. Free small claims advisors are available to help with your small claims questions, and you can obtain their contact information by calling or visiting the website of your local courthouse. These advisors can be very helpful in guiding you through the different steps required to file your claim. However, they tend to be very busy and may not have time to get into the facts and law of your case. You can also consult a lawyer at any point in the small claims process. Attorney Martin Zurada has assisted numerous individuals in preparing for small claims court and appealing small claim judgments. He can be reached at (415) 637-8483 to answer your specific questions. In states other than California, consult an appropriately qualified local attorney.
SCRS Joins with Leading Collision Repair Organizations to Release Joint Position Statement on Collision Repair Standards
34 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
training, testing, repair practices, and documentations. “Whereas, we acknowledge that OEM repair procedures are incomplete in comparison to the full scope of vehicles and repair operations which exist in the marketplace; the OEM published repair procedures shall serve as the baseline for industry repair standards, with the recogSee SCRS, Page 36
Chief Donates Frame Rack to Operation Comfort Automotivation Program for Wounded Warriors Chief Automotive Technologies has donated a new frame rack valued at $50,000 to the Operation Comfort Automotivation program for wounded U.S. military service members. Chief distributor English Collision Equipment, Inc. installed the rack at no charge. “We are honored to have the opportunity to help these wounded warriors recover from the injuries they sustained while defending and protecting our country,” explains Mike Cranfill, vice president of collision for Chief’s parent company, Vehicle Service Group (VSG). “It is our hope that this equipment will aid in their rehabilitation and perhaps even ignite an interest in joining the collision repair industry once they are discharged.” Operation Comfort is a nonprofit, philanthropic organization focused on helping service members from all branches of the U.S. military who were wounded in Afghanistan and Iraq and are rehabilitating at Brooke Army Medical Center (BAMC) in San Antonio, Texas. Depending on the severity of their in-
juries, these men and women will stay at BAMC from one to four years or longer.
Operation Comfort provides financial assistance to service members and their families, helps refurbish and equip waiting rooms at the medical center, and offers a number of rehabilitative and therapeutic programs in non-clinical environments. These programs include hand cycling, sled ice hockey, amputee surfing, softball, river rafting and Automotivation. “Operation Comfort is structured to improve the solChief Automotive Technologies donated a frame rack to the Operation diers’ spirits, so Comfort Automotivation program for wounded U.S. military service their rehab is faster members. Pictured on the recently installed rack are (from left to right): Sgt. 1st Class Vic Hash; Sgt. Chris Leverkuhn; Mike Cranfill, and more effective,” vice president of collision for Chief’s parent company, Vehicle Service explains Janis Group (VSG); Spc. Michael Baird-Kelly; Petty Officer Andrew Johnson; Roznowski, OperaJanis Roznowski, Operation Comfort executive director and founder; tion Comfort execuRobert Rodriguez, president of Lay’N Color (which shares space and tive director and resources with the Operation Comfort Automotivation program); Jeff English, manager of English Collision; and Sgt. Robert Dickey founder. “Their lives now are a cycle of medical appointments, surgeries, therapy, rehab, more appointments, more Genuine Porsche Parts... Only The Best. treatments, more surgeries, more rehab… That’s why it’s so important to give them relief. I believe that if they’re working on something they really love, they forget all the trauma going on in their lives. When they’re working on a car, they’re focusing on that car and enjoying the process. By fixing a car, somehow or other, they fix something inside of themselves.” Automotivation was developed Cayman 2011 at the request of service members who were reluctant to participate in These Select Dealers Have The Parts You Need. conventional rehabilitative activities or sports, but were interested in rebuilding and restoring cars, trucks and motorcycles. Participation is FLORIDA voluntary. The program is housed in donated space in a professional garage on Lonesome Dove Ranch Brumos Porsche south of San Antonio. It includes Jacksonville four service bays, a paint booth and 800-726-9155 break room. Many soldiers who are injured 904-725-0358 Fax and then sent to BAMC to heal feel M-F 7:30am - 5:30pm cut off from their units, explains Vic parts@brumosporsche.com Hash, Army sergeant first class and a brumos.com member of the Warrior Transition Unit at Fort Sam Houston. “They tend to want to cocoon. This gives them something to do to take their minds off their injuries.”
Automotivation participants are building a 1966 Shelby Cobra replica kit car and are finishing a World War II weapons carrier body that they restored and installed on a 1984 Ford Bronco chassis. The group displayed both vehicles at the SEMA Show at the Las Vegas Convention Center from November 1 through 4. The Fuzion pulling system that Chief donated was installed in what had been a flat bay. The heavy-duty rack is equipped with two pulling towers and universal anchoring stands. It offers 12,000 lbs. of lifting capacity for maximum versatility. Chief is also arranging training for Automotivation participants on how to properly use the equipment. “We’re so appreciative that Chief understands the value of what we do and that they jumped in to help,” Roznowski says. “This was an incredibly generous donation. With the Chief rack, we’ll be able to teach the guys new skills that they may also be able to use when they return to civilian life.” The soldiers have a long wish list of additional tools and equipment the program could use. Operation Comfort does not have funding to buy equipment, so it relies on industry donations of tools, equipment and contacts for mentoring and training. Current needs include: ● Chief accessory package and tool board ● Frame measuring system ● Brake lathe ● Small lathe ● Alignment rack and equipment ● Complete socket sets ● Soda blaster ● Portable diesel-powered air compressor (125 cfm) ● Bead roller ● Spot welder ● Metal brake ● Sheet metal shear ● English wheel ● Shrinker/stretcher ● Creepers ● Wheel dollies ● Hydraulic floor jacks ● Air tool kit For more information about Operation Comfort, visit www.operationcomfort.org or call (210) 826-0500. To learn more about Chief collision repair equipment, contact your local Chief distributor, call 877-644-1044, or visit www.chiefautomotive.com.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 35
SEMA Announces New Product Showcase Award Winners SEMA, the Specialty Equipment Market Association, announced on November 1 the winners of the New Products Showcase Awards held at the 2011 SEMA Show. The event recognizes the most cutting-edge automotive products either on the market or about to hit the market. This year, nearly 2,000 new products were submitted for consideration. Criteria that ranked high on the judges' selection for the New Product Showcase Awards included superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability. The 2011 New Product Award Winners include: Best Engineered New Product Winner: Baer Brake Systems, Full Floating Rear End Conversion Runner Up: Aeromotive Inc., Camaro Stealth Fuel System Runner Up: Fuelab, Electronic Fuel Pressure Regulator Best New Exterior Accessory Product Winner: Cargo Ease Inc., Cargo Ramp / Brake System Runner Up: Bestop Inc., TrekStep Side Mounted Step Runner Up: Rhino-Rack USA, Roof Mounted Cargo Basket Best New Interior Accessory Product Winner: Auto Meter Products, Universal 3 Gauge Mounting Solution Runner Up: LOKAR Performance Products, Billet Aluminum Tremec Shifter Levers For TKO 500 and TKO 600 Runner Up: Bully Dog Technologies, RAM Mounting Systems for Bully Dog GTs and WatchDogs Best New Merchandising Display Winner: MacNeil Automotive Products Ltd., TechFloor™ Retail Display Runner Up: Flex-a-lite Consolidated, Flex-a-chill - Radiator Coolant Addi-
tive (POP) Runner Up: Access Roll-Up Covers, Access Truck Bed LED Light Display Best New Mobile Electronics Product Winner: Escort/Beltronics Radar Detectors, ESCORT Live! Runner Up: Del City, Sealed Window Crimp Connector Runner Up: Metra Electronics Corp., ASWC Best New Off-Road/4-Wheel Drive Product Winner: MSD Ignition, Atomic EFI Runner Up: Daystar Products International, Can Cam Fuel and Water System Runner Up: ProRYDE Suspension Systems, SuperBLOK 3-in-1 Leaf Spring Blocks Best New Packaging Display Winner: MacNeil Automotive Products Ltd., TechCare™ Runner Up: Auto Meter Products, Auto Meter Custom Shop Gauge Set Runner Up: Preval, vFan Portable Airbrush System Best New Collision Repair & Refinish Product Winner: Eagle Abrasives Inc., Super Assilex Runner Up: Plio Grip by Valvoline, Like90 Turbo Pad for Bumpers Runner Up: Gema, OptiFlex®2 Best New Performance-Racing Product Winner: COMP Performance Group, COMP Cams Sprint Car Front Drive Kit For LS Applications Runner Up: Auto Meter Products, Ultimate DL Playback Tach System Runner Up: Ace Fuel Systems, Adjustable Fuel Injector Best New Performance-Street Product Winner: SCT Performance, SCT iTSX for iPhone
Continued from Page 34
proposed alternatives, modifications, and additions to OEM procedures. The Council will include volunteer representatives serving at least ASA, SCRS, AASP, and I-CAR.” While most assume OEM repair procedures are standards by default, it has never been officially established until now. As these groups collectively represent collision repair businesses and technicians across the United States, their official adoption and declaration provides a much needed foundation and focus to the industry’s effort to establish collision repair standards.
SCRS
nition that further development of procedures will be necessary in areas not covered by published procedures. “Therefore, we officially ask the board of directors for the Inter-Industry Conference on Auto Collision Repair (I-CAR), to establish within their overall organizational structure, an industry council to identify gaps in existing OEM procedures and develop processes to close gaps, vet industry
36 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Runner Up: COMP Performance Group, Inglese EFI Throttle Body Insert Hidden Metal Screen Filters Runner Up: COMP Performance Group, FAST EZ-EFI Jeep 4.2L/6 Cylinder Kit Best New Powersports Product Winner: Auto Meter Products, Universal GPS Speedometer Interface Runner Up: Skyjacker Suspensions, 10-12 Polaris Ranger Crew Rear Winch Mount Kit Runner Up: Warn Industries Inc., 1700 XT Portable Winch Best NewStreet Rod/Custom Car Product Winner: Classic Instruments Inc., SkyDrive Runner Up: Billet Specialties Inc., Billet LS Valve Covers Runner Up: Eddie Motorsports, Billet aluminum Under-hood kit for 19551957 Chevys Best New Tire and Related Product Winner: Continental Tire the Americas LLC, Continental Cross Contact LX20 Runner Up: Cooper Tire & Rubber Co., Discoverer A/T3 Runner Up: Continental Tire the
Americas LLC, General Tire G-MAX AS-03 Best New Tools & Equipment Product Winner: PH2 Solutions Inc., PH2 Validator Runner Up: Las Vegas Tool LLC, EASYPULLER by Las Vegas Tool LLC Runner Up: Schley Products/SP TOOLS, Air Hammer Ball Joint R&R Tool Best New Van/Pickup/Sport-Utility Product Winner: EZ Connector Inc., EZS7-02 Runner Up: Daystar Products International, Shock and Steering Stabilizer Armor Runner Up: Specialty Products Co., Leaf Spring Silencer™ Best New Wheel and Related Product Winner: Topline Products, Verde Custom Wheels | V39 - Parallax Runner Up: iForged Performance Alloys/Forgestar Wheels, CF10 Rotary Forged Carbon Fiber Edition Runner Up: MGP Caliper Covers, MGP Caliper Covers.
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Hot Rod Industry Alliance (HRIA) Sponsored Pinewood Drag Races Light Up 2011 SEMA Show The Hot Rod Industry Alliance (HRIA) sponsored Pinewood Derby Races took place during the 2011 SEMA show; the 13 custom
Derek White of Street Vizions won first-place in the pinewood derby for the second year in a row with this model vehicle
pinewood cars were also up for auction on eBay following the show to benefit the children’s charities Childhelp and Victory Junction Camp. Participating pinewood builders included Art Morrison, Fatman Fabrications, Fesler Concepts, Hollywood Hot Rods, Hopperstad Customs, Johnny’s Auto Trim, Kaucher Kustoms, No Joke Upholstery, Rich
Evans Designs, Santini Paint and Body, Spanky’s Hot Rods, Spitzer Concepts and Street Vizions. Derek White of Street Vizions successfully defended his first-place title this year, his second consecutive win. Rich Evans Designs was the runner up again this year as well. Each contestant was given four months to complete the car; no design limitations were given except that the car had to fit the track’s dimensions and no propulsions systems were allowed.
Rich Evans Designs took second place for the second year in a row with this model car
The eBay auction took place November 1 through 10, search HRIA Pinewood on eBay to find the bidding pages.
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! GEORGIA
Subaru of Gwinnett Duluth (678) 584-7245 (678) 584-7246 Fax Mon.-Fri. 8:00-6:00 Sat. 8:00-4:00 www.subaruofgwinnett.com
SCRS and Collision Industry Raise over $3,200 for Operation Comfort’s Automotivation Program at the 2011 SEMA Show At the 2011 SEMA Show, taking place from November 1-4 at the Las Vegas Convention Hall, the Society of Collision Repair Specialists (SCRS) put its own unique spin on the tradition by “passing the helmet” for Operation Comfort’s Automotivation initiative; the overall fundraising effort resulted in the collection of over $3200 for the non-profit organization. Operation Comfort, located in San Antonio, Texas, provides support to U.S. service members who have been wounded in Afghanistan or Iraq and are receiving treatment at the Brooke Army Medical Center (BAMC). As a form of occupational therapy and career replacement, Operation Comfort runs a program entitled Automotivation where wounded service members rehabilitate through automotive-related activities such as rebuilding and restoring cars, trucks, and motorcycles on a ranch outside of San Antonio. Two vehicles the soldiers worked on as part of the Automotivation program, a 1957 Dodge Power Wagon used by the Army as a weapons carrier and a 1966 Cobra kit car, were on display at the SEMA Show. “Operation Comfort provides a great place to work with lots of space and tools I wouldn’t otherwise have access to, like a lift, power tools and a compressor,” said Sergeant Robert Dickey, an Automotivation participant who was at the SEMA Show. “It’s an opportunity to get out and do something I enjoyed doing before I got injured, plus it gives me the opportunity to consider doing something that I love for a living. I’m very thankful for that.” In an exclusive interview conducted by CollisionHub with SCRS Executive Director Aaron Schulenburg at the SCRS booth, Operation Comfort Executive Director Janis Roznowski expressed her gratitude for the industry’s efforts on behalf of the program. “A lot of our guys are gear heads, and Automotivation gives them a chance to leave the hospital and the barracks to do something they love,” Roznowski explained. “In the process, they may find a new career path opening up in front of them. We thank SCRS and the collision industry for their generosity. The money collected at this show is going to go to our next project, the restoration of a 1934 Ford Cabriolet.” Visitors to the SCRS booth on the SEMA Show floor couldn’t help but notice the upturned military helmets stuffed full of bills of various denominations; donations from visitors wishing to give back to those who are there to defend our country.
The helmets were also passed at Collision Industry Conference (CIC) and were visible in the hands of volunteers standing at the exit doors after the stirring Repairer Driven Education (RDE) Flawless Executions keynote by Afterburner Inc.’s Patrick “Lips” Houlahan. In addition, as part of a special tie-in with Afterburner’s military aviation inspired headline presentation, SCRS held a silent auction throughout the week at their booth for a set of three “Flawless Execution One-on-One” DVDs produced by Afterburner. “I was enthralled by the content of the RDE Afterburner presentation,” shared Boyd Dingman, Owner of Dingman’s Collision Centers in Omaha, Nebraska. “The message points were so relevant, and the simplicity of the practical application of the process really highlighted opportunities we may have been missing in the shop, and how we could start taking advantage of them when we got back home. I’m thrilled that I placed the winning bid on the DVD set. Since our business is comprised of multiple locations, I’m looking forward to utilizing the training in all three of my stores, to bring everyone up to speed on some of the process adjustments we are going to make; plus, it’s an honor to know the money is supporting such a great cause like Operation Comfort. I got to meet some of the soldiers in the program while at the SEMA Show, and it is great to know there is a program like that to help.” “This year’s SEMA Show was an unforgettable event for a lot of different reasons, but nothing really compares to the feeling you get when you help rally support around a worthwhile cause,” stated SCRS Chairman Aaron Clark. “Collision repairers have demonstrated time and again that the industry believes in community support and philanthropy, and it was great to see that on display yet again. Good luck to Operation Comfort, and thank you to the many industry professionals that contributed. Like those who serve our country in the military, you make us all proud.” If you have any questions or would like to speak with an Operation Comfort representative regarding their service, please e-mail info@operationcomfort.org or call 210-8260500. Additional information about SCRS is available at the SCRS Web site: www.scrs.com. E-mail SCRS at the following address: info@scrs.com.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 37
Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Clarktown International Collision Credits BASF with Increased Productivity with Chasidy Rae Sisk
Clarkstown International Collision in Nanuet, NY, works hard to be an asset to their community. Their focus on customer service extends beyond community and environmental conscientiousness. Their concern for protecting the environment led to their decision to convert to BASF waterborne paints in early 2011, a decision that owners, Gene and Anna Cortés, have not regretted. Clarkstown stays up to date with all EPA and OSHA regulations, for their own preservation in addition to
the environment’s. In addition to recycling all metal, cardboard, headlights, bumpers, aluminum and alloy wheels, they have also gone completely paperless—all filing and paperwork is done electronically. Recently, the shop also made the change to BASF’s Glasurit line of waterborne paint. Clarkstown converted to Glasurit in March 2011, and Gene Cortés is very pleased with the results. He decided to convert because of environmental and health concerns, not because of any local mandate. Additionally, the new paint is easier to use and allows for better color matching. Most of the vehicles Clarkstown deals with ale newer models, and they have not encountered problems with color matching because, according to Gene, “we work with a paint company that offers a lot of training and support, which all of our painters have participated in.” He praises the trainers at BASF for making the transition very easy. “They made the process painless and their support is excellent. They answer any and all questions promptly and effectively.” Within four weeks of making the conversion, the shop began seeing positive results. Color matching has become easier, there is better air quality in the shop, and they have been
able to increased productivity by fifteen cars per month—now repairing over two hundred cars every month. Cortés says “my detailers say that this paint has made it easier for them to completely detail the car, spending less time wet-sanding and buffing. The paint flows better, and they see less dust in the paint,” reducing denibbing and other post-application problems. Clarkstown prides itself on customer service, cleanliness and professionalism. According to Cortés, “we are often compared to a lawyer’s office, both for our appearance as well as our office staff.” As part of their dedication to customer service, they utilize a car scanning and tracking system called “My CIC” which allows them to scan cars at each stage of the repair process using a barcode with which each car is labeled upon entering the shop. This information allows office staff to update customers easily when they call to check on the status of their repairs. According to Gene Cortés, it also “helps to speed up the repair process, cuts back on phone calls, and increases our productivity.” Gene believes “customer service is dying and that is one area I’ve never compromised. Even in this digital age, I believe in face-to-fact contact, greeting the customer and hearing a friendly human voice on the phone. From the first day I opened my doors, I’ve had a friendly, professional person at the front desk and answering the phones. We refuse to have an electronic answering system during our open hours of operation. If the phone rings more than twice before it is answered, someone is not doing their job.” Clarkstown International Collision also uses the Customer Service Index to obtain customer feedback on their service and performance, and they react immediately to any negative feedback. Clarkstown International Collision is also dedicated to staying current with technological advances. According to Gene, “computerized es-
38 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
timating, management, paint mixing, and Unibody measuring systems are all must-have programs for a 21st century shop. I still see shops doing it the old way… and those won’t make it unless they change their ways”. Gene believes shop owners need to educate themselves constantly in order to stay up to date. “It is no longer a matter of just knowing a trade. You have to school yourself and be willing to spend the money in training for yourself and your staff.” This is important since the computer systems in vehicles are constantly becoming more challenging, especially in Hybrid cars. Also, he believes modern customers are more educated about repairs than they were twenty years ago. Because customers are aware of aspects such as the differences between aftermarket parts, manufacturer parts and junkyard parts, shop owners and employees must be even more educated in order to deal with potential questions. At the same time, Gene points out that “insurance companies are now more than ever pushing aftermarket parts and more insurance companies are refusing to raise their labor rates, but they are requesting more from the body shop which cuts into our profit margin”.
Cars line the bays at Clarkstown International Collision
Clarkstown International Collision was founded in 1992. Gene was an insurance adjuster before opening the shop, but as he felt had experience on both sides and the desire to own his own business, he and his wife opened the shop with a bodyman, a painter, and only $100 in the bank. After visiting many shops and analyzing how each operated, Gene applied the best practices of what he saw at each shop he visited. True to his belief of learning as much as possible, Cortés plans to at-
tend NACE 2011 and SEMA. Though he has not attended in the past because he was too busy to leave the shop, he is looking forward to the events this year. The shop is active in their community of Nanuet, NY. They are members of various non-profit organizations, including the Rotary Club, the Knights of
Parts dry inside Clarkstown’s spray booth
Pythias, Rockland Business Association and the Nyack Chamber of Commerce. Clarkstown also donates funds to the Jesse J. Kaplan School for Special Needs and to local churches, in addition to hosting an annual community Christmas party for families to bring their children for a day of fun with Santa. Clarkstown International Collision supports and is supported by thirty employees, eight of which are office personnel. They employ three frame technicians, two painters, one production foreman and four bodymen while the remainder of their employees work in preparation, detailing, maintenance and parts. The shop encompasses 12,000 square feet with an additional 2,000 square feet used for the office, and utilizes six Uni-Body benches, three MIG welders, an aluminum welder, two prep stations, two spray booths, and one paint mixing room. Besides auto body work, Clarkstown also offers towing, paintless dent repair, glass repair and detailing. The shop is I-CAR certified, as well as Mercedes-Benz certified, and they are certified in aluminum repair. They do not participate in any direct repair programs by choice. Clarkstown International Collision 95 Route 304 Nanuet, NY 109554 845-627-3100 www.cicautobody.com
Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best Practices for Shops One of the educational panels held during the 2011 SEMA Show at the Las Vegas Convention Center concentrated on how social media can best be used by collision repairers. The panel was held on Thursday, November 3 at 10 a.m. and brought together leading social media experts in the collision repair industry. Collision Hub’s Kristen Felder, Jonathan Barrick, Marketing Manager for Global Finishing Solutions, and Frank Terlep, owner of Summit Software Solutions, came together on this panel to answer collision repairers’ questions about how social media can help their businesses. Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, moderated the panel. Hendler started off the session by
asking panelists how collision repairers know that their customers want social media from them.
being active in social media. Terlep stated that repairers should start with the ‘big 4’ in social media marketing; Facebook, Youtube, Twitter and LinkedIn. “Have a plan,” said Terlep, “Sit with other shops and put a plan together.” Felder said a good, low-cost way to start a social media repoire could be to look at local colleges for students who need to Frank Terlep, Kristen Felder, Jonathan Barrick and Jordan Hendler discuss social media trends and create an online portfolio for a tips at the 2011 SEMA show class project. This way the stuA collision repairer’s customers dent can set-up the social media at no are already on various forms of social cost to the business. Felder also warned media, says Felder, “If you’re not al- shops to set up a policy when it comes ready there, hurry up!” to who will post on the company page. Hendler continued by asking the “Are you going to let employees panel how collision repairers can start post?” asked Fedler, she encouraged shops to define what employees can and can’t do on the page should they decide to allow them to post. Barrick suggested that repairers Waterborne Wax and spend some time researching and Grease Remover watching other shops’ pages to see SINCE 1985 what types of posts garner the most atAvailable from tention and responses from followers. YOUR local Jobber or Hendler then went on to ask the CALL: 973.335.2828 FAX: 973.402.7222 panelists what some dos and don’ts polycracker@netscape.com were for shops just starting out in social media. “People will read your posts for Search: 3 reasons; education, entertainment and exclusive offers,” said Barrick. He encouraged shops to stay away from posting just random facts. “They will follow you for what they can’t get anywhere else,” he said.
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Felder warned shops to be wary of what they post online, “don’t post the politics of the industry.” She encouraged shops to seem open and approachable online and to post helpful things for customers, like tips to get them winter-ready in the appropriate climates and texting and driving news reports. Hendler then asked the panel how collision repairers can fit yet another task in their already busy days. Felder said some shops may be tempted to hand off their social media to a consulting company. She said this can be a good idea if the third party gives the shop options for how and what will be posted, tailored to the size and scope of their business, otherwise these posts can come off generic and uninteresting to customers. Barrick agreed with Felder, he said a third party can be a good way for a shop to initially set up their profiles, but they should not end up being the permanent voice of the company. He encouraged shops to have multiple people in their businesses participate in the profiles so they don’t turn into a one-man show. Lastly Barrick and Hendler touched on being wary of getting caught up with hoarding page likes. Barrick said that although a page may only have 3,000 fans, they may generate 5,000 page views per month. So although they may not have fans subscribing to their posts, people are still using the page to get information about the business.
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