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Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90% On April 28 the Florida House and Senate voted to pass Senate Bill 754 (SB 754) making it a second-degree felony “... for any person to knowingly import, manufacture, purchase, sell, offer for sale, or install, or reinstall on a vehicle a fake airbag or junk-filled airbag compartment.” The bill defines a fake airbag to include both counterfeit and nonfunctioning airbags and specifically includes airbag covers. SB 754 also revises the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of
Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to obtain a certificate of destruction under certain circumstances; providing a criminal penalty, etc. The process for applying for a
The owners of Coastal Collision Works, David and Susan Montanaro, filed suit on March 6 against State Farm in the SC Court of Common Pleas for defamation, unfair trade practices, breach of contract with their insureds and breach of agreement with Coastal Collision. The shop is located at 2543 Savannah Hwy, Charleston, SC, 29414. Becky Snelgrove and Steve Fields are named in the suit as State Farm representatives. Coastal Collision Works accuses State Farm of engaging in a course of action to artificially depress the price for the repair of damaged automo-
biles in the Charleston, SC, area. In addition it accuses State Farm of: ● Attempting to persuade Coastal Collision Works and other Charleston body shops to agree to repair automobiles for an amount less than they ordinarily charge in exchange for prompt adjustment of losses; for referral of business; and for being listed by State Farm as a “preferred” shop. ● Attempting to persuade Coastal Collision Works and other Charleston body shops to repair automobiles on the basis of the State Farm estimate of damage instead of
See Florida Bans, Page 17
South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation
See Suit Against State Farm, Page 22
VOL. 5 ISSUE 4 JUNE 2014
Florida Bill Amendments Outline “Unlawful Acts and Practices” for Auto Body Shops, Now Withdrawn Florida State Senator Jeremy Ring (D) plans to withdraw his proposed changes to HB 7005, which would have outlined “unlawful acts and practices” for body shops and automotive glass companies, according to Joel Ramos, a legislative assistant in the state senator’s Tallahassee office. The bill was being considered by the Florida State Senate—Florida HB 7005—outlining “unlawful acts and practices” for auto body shops and automotive glass companies. Originally the bill potentially impacted auto body shops only, but State Senator Ring amended it on April 29, 2014, to add automotive glass companies to the language. The proposed “unlawful acts and practices” were: Intimidating, coercing, or threatening a consumer into selecting a particular motor vehicle glass repair
facility. Waiving or offering to waive an applicable insurance deductible. Offering a rebate, gift, gift card, cash, coupon, or anything of value in exchange for a consumer making an insurance claim for motor vehicle glass replacement or repair. Performing a motor vehicle glass replacement, repair, or other services for which the facility will seek reimbursement from an insurer without first obtaining insurer approval. Failing to make the subject motor vehicle available for inspection before performing motor vehicle glass repair and replacement services to the applicable insurer if the insurer requests such inspection. The bill was referred to several committees, including Transportation;
The series of storms that wreaked havoc across much of the United States in April rank as the first billion-dollar economic loss event of 2014 that can
hundreds of millions of dollars, Aon Benfield said. Employees of Auto Glass Now in Jackson, MS, escaped serious injury or death just minutes before a tornado leveled the automotive glass company on April 28, according to regional manager John Ketchum. The shop was pretty much a total loss, but the company has already leased a new building and is back in business already, he says. “[Employees at the shop] called me as I was on my way,” Ketchum explains. “They were concerned because the weather was getting bad and tornado alerts were being issued. They were listening to the radio but none of us realized the severity of the storm. When the alarms [warning sirens] went off, I told them to leave. About 20 minutes later the building was gone. All we could salvage was a chair.” The employees are safe and their
See Amendments to 7005, Page 38
Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages
be attributed to thunderstorms, according to Aon Benfield, the world’s leading reinsurance intermediary’s monthly Global Catastrophe Recap report. At least 40 people were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions. Insured losses due to the multiday outbreak will likely end up in the
See Deadly Tornados, Page 4
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Contents
NATIONAL ‘Sound cannons’ May Eventually Blast Missouri Drivers . . . . . . . . . . . . . . . . . 10 ‘Top Secret’ Maaco Sign Creates Buzz Prior to Reopening at New Location on Applegrove in North Canton, OH . . . . . 18 ABRA Acquires 24 Collision Centers of America Locations. . . . . . . . . . . . . . . . 41 Advance Auto Profit Up 21%, Acquisition Boosts Sales . . . . . . . . . . . . . . . . . . . . 41 AMI Taking Applications for $1,000 High-Octane Award . . . . . . . . . . . . . . . 41 AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution . . . . . . . . . . . . . 41 Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website. . 39 Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops. . . . . 32 Automotive Aftermarket is Expected to Grow 3.4% PY . . . . . . . . . . . . . . . . . . . 39
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www.facebook.com/autobodynews Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
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COLUMNISTS Attanasio - Five Common Marketing Mistakes Body Shops Make . . . . . . . . . 20 Basteri - Getting Powered Up at the 2014 WIN Annual Educational Conference. . . 34 Franklin - What’s In A Name? Possibly The Success Of Your Shop! . . . . . . . . . 30 Luehr - The Process of Winning . . . . . . . . 16 Sisk - ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates . . . . . . . . . . . . . . . . . . . . 33 Sisk - Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More! . . . . . . . . . . . . 36 Yoswick - June Retrospective: ASA Position, CAPA, CIC . . . . . . . . . . . 28
BASF Recognizes 5 Shops as Shops of the Year . . . . . . . . . . . . . . . . . . . . . . 39 Bloomberg reports Esurance to Take on Advertising Giants. . . . . . . . . . . . . . 41 BMW Joint Venture to Triple Carbon Fiber Plant Capacity . . . . . . . . . . . . . . . . . . . 43 Body Shop Embezzlement Trial in Baraga County, Michigan, is Extended . . . . . . . 32 Cable-Dahmer Investments Pay Off with GM Customer Service Award Helped by 18,000 sq ft Collision Center . . . . . . . . . 9 CAPA Reaches 15 Year Milestone for Vehicle Test Fits . . . . . . . . . . . . . . . . . . 45 Car-O-Liner Offers Free Value-Added Design Planning. . . . . . . . . . . . . . . . . . 42 ETI to Hold Meeting with NACE CARS in Detroit . . . . . . . . . . . . . . . . . . . . . . . 29 Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150. . 43 Four CARSTAR Shops Were Recognized by Mitchell. . . . . . . . . . . . . . . . . . . . . . 42 I-CAR to Premiere New Interactive Damage Analysis Course, Advanced Steering, and Suspension Systems. . . . . . . . . . . 12 I-CAR Makes Enhancements to Website, Redesign Coming . . . . . . . . . . . . . . . . . 9 Indiana Autobody Association Calls Vendors to Action . . . . . . . . . . . . . . . . 21 Insurance Legislation President Resigns in Plea Deal with Prosecutors, Lawyer Says “Just a Slip” . . . . . . . . . . . . . . . . . . . . . 12 Jordan, MN, Shop Owner Arrested on Meth Charges . . . . . . . . . . . . . . . . . . . 32 LKQ’s 2014 GetGreen Promotion Winners Announced . . . . . . . . . . . . . . . . . . . . . 36 MCR Safety Donates 26,000+ Pairs of Safety Eyeware . . . . . . . . . . . . . . . . . . 17 Mitchell Releases Second Quarter 2014 Industry Trends Report . . . . . . . . . . . . 40 NABC Appoints Dan Young to Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . 6 NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens . 47 NACE Announces CRES/MSO Symposium Agenda . . . . . . . . . . . . . . . . . . . . . . . . 47 New DARE Car’s Paintjob Unveiled in Rothschild, WI . . . . . . . . . . . . . . . . . . . 10 NSF Certifies 500 Sheet Metal Parts Made by Gordon . . . . . . . . . . . . . . . . . 40 Ohio Anti-Steering Legislation Scheduled for First Hearing Before Committee. . . . 13 Ohio Leads the Nation in Metal Thefts . . . 42 OSHA Cracking Down on Isocyanate Exposure . . . . . . . . . . . . . . . . . . . . . . . . . 45 SAFECars Educational Symposium is May 30–31 in Illinois . . . . . . . . . . . . . . 13 SCRS Examines Repairer Ability to Control Data . . . . . . . . . . . . . . . . . . . . 45 SCRS Member’s E-Catalog . . . . . . . . . . . 41 Sisk - AASP-MO Hosts March and April Collision Meetings . . . . . . . . . . . . 37 Sisk - NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry. . . . . . . . . . . . . . . . . 38 Solera Buys Pittsburgh Glass Works’ Insurance Business . . . . . . . . . . . . . . . 41 South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation . . . . . . . . . . . 47 State Farm to Raise Rates . . . . . . . . . . . . 22 Update on IN Shops’ Accusations of Insurers’ Collusion. . . . . . . . . . . . . . . . 44 US Government Says It Lost $11.2 billion on GM bailout . . . . . . . . . . . . . . . . . . . 43 Valspar Joins National Auto Body Council. . 47
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REGIONAL Alabama Law Raises Severity of Penalty for Installing Faulty Airbags to Felony if Injury Results . . . . . . . . . . . . . . . . . . . 6 Albemarle VA Police Identify Suspect in Armed Body Shop Standoff Lasting More than Four Hours . . . . . . . . . . . . . . 8 Captive Insurance Company Formed in North Carolina . . . . . . . . . . . . . . . . . . 8 Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages . . . . . . . . . . . . . . 1 Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90% . . . . . . . . . . . . . . . . . . . . . . . . . 1 Florida Bill Amendments Outline “Unlawful Acts and Practices” for Auto Body Shops, Now Withdrawn . . . . . . . . . . . . . . . . . . . 1 Greensboro Shop Fire Prompts Review of Portable Lights Used in Shops, Dept. of Labor Investigating . . . . . . . . . . . . . . 4 Gunder Suit Against State Farm Not Filed As Reported . . . . . . . . . . . . . . . . . . . . . 8 Sisk - Automotive Aftermarket Association Southeast Finalizes Conference Plans for 2014 . . . . . . . . . . . . . . . . . . . . . . . 14 Sisk - I-CAR Atlanta Committee Golf Tournament Declared a Success! . . . . . 18 Sisk - Southern Automotive Repair Conference Held by Six State Associations . . . . . . . . . . . . . . . . . . . . 24 South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation . . . . . . . . . . . . 1 Tennessee Limits Access to Employees’ Social Media . . . . . . . . . . . . . . . . . . . . . 9
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BMW Wholesale Parts Dealers . . . . 41 Cavalier Ford-Lincoln Greenbrier . . 13 CCC Information Services . . . . . . . . 2 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 19 Chief Automotive. . . . . . . . . . . . 20, 21 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Coggin Deland Honda . . . . . . . . . . 14 Crown Automotive Group . . . . . . . . 23 Don Reid Ford. . . . . . . . . . . . . . . . . 32 Equalizer Industries, Inc . . . . . . . . . . 4 Ford Wholesale Parts Dealers FL, VA, GA, AL, MS. . . . . . . . . . . 37 GM Wholesale Parts Dealers . . . . . 42 Gray-Daniels Auto Family . . . . . . . . . 5 Gus Machado Ford . . . . . . . . . . . . . 30 Hendrick BMW/MINI . . . . . . . . . . . . 28 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 25, 26-27 Hyundai Wholesale Parts Dealers. . 38 Innovative Tools & Technology, Inc . 29 Jon Hall Chevrolet . . . . . . . . . . . . . 24 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 15 Kia Motors Wholesale Parts Dealers. 35
Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mercedes-Benz . . . . . . . . . . . . . . . . 11 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 43 MINI Wholesale Parts Dealers . . . . 40 Mitsubishi Wholesale Parts Dealers . 45 MOPAR Wholesale Parts Dealers . . 31 Nalley BMW. . . . . . . . . . . . . . . . . . . 18 Performance Automall . . . . . . . . . . 33 Porsche Wholesale Parts Dealers . 44 Priority Honda . . . . . . . . . . . . . . . . . 36 Reliable Automotive Equipment, Inc . 8 SATA Spray Equipment . . . . . . . . . 12 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 16, 17 Stateline Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 10 Subaru of Gwinnett . . . . . . . . . . . . . . 9 Subaru Wholesale Parts Dealers . . 39 Tameron Hyundai . . . . . . . . . . . . . . 20 Toyota of Easley . . . . . . . . . . . . . . . . 6 Toyota Wholesale Parts Dealers . . . 47 UniCure Spraybooths . . . . . . . . . . . 48 Valspar Automotive . . . . . . . . . . . . . . 7
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 3
Continued from Cover
Deadly Tornados
homes were not damaged, Ketchum added, but one manager lost both family vehicles. “Basically, I got there and saw all the damage. I gathered everybody together and assured them they still have a job with us and they aren’t going anywhere. I was lucky to find the building. I called the owner [Tony Hakimian] and told him the extent of the damage. He said to tell everybody we were taking care of their pay for the week. We did not want them worrying. I took the employees out to dinner and Tony bought these guys new tools,” he explains. Ketchum and the owner were able to find a new building and sign a new lease quickly. “We are so fortunate that we found these people a new home for the business. In about an hour we had a new lease signed,” he says. “The next day the employees were back to work. We’re waiting for the phones to be hooked up and we are almost ready to do mobile repair and replacements. We have vehicles being
with 5 in Iowa, 4 in Kansas, 3 in Nebraska and one each in Louisiana, Missouri and Oklahoma. People in the path of the system were on edge as the National Weather Service posted tornado watches and warnings around Mississippi, Tennessee, Alabama and Georgia. Forecasters said the system was the latest onslaught of severe weather that triggered deadly tornadoes in Arkansas, Oklahoma and Iowa on Sunday, killing at least 40 people. Arkansas was the hardMichael Harrell, left, of J&J Towing holds up a tow cable est-hit state on the first day before attaching it to a flooded car that was swept off of the tornado outbreak, Fairfield Avenue by torrential rains and deposited in a ditch as fellow employee Charles Thomas assists from and an EF4 tornado roared an inflatable boat in Pensacola, FL, on April 30, 2014. through Mayflower, Vilo(Photo: G.M. Andrews) nia and other nearby towns. At least three tornados smashed The storm was so huge it was vishomes and businesses, flipped trucks ible from space, photographed by over on highways and injured a still unweather satellites that showed tumulknown number of people in Missistuous clouds arcing across much of sippi and Alabama as the massive the South. storm system passed over several states The Florida Panhandle was hit with in the South, also threatening to unup to two feet of rain in a 24 hour period leash severe thunderstorms, damaging causing widespread flooding, washing hail and flash floods. away roads, and requiring helicopter FEMA reported that 15 of the 30 and boat rescues. Florida Gov. Rick tornadoes on April 27 struck Arkansas, Scott said that officials received around delivered today,” Ketchum says. The tornado that leveled the facility was part of a larger storm system that caused widespread destruction in the state.
Greensboro Shop Fire Prompts Review of Portable Lights Used in Shops, Dept of Labor Investigating Three months after a fire that burned through an auto body shop near downtown Greensboro sent four firefighters to the hospital, the NC Department of Labor found no violations in how the Greensboro Fire Department responded to the incident. However, the state agency is recommending that the agency take a close look at the sort of portable light that ignited that blaze Jan. 30 at Import Knight Auto Repair on 811 S. Elm St. The NC Department of Labor said it found “no apparent violations,” but GPD officials said they would do a better job of inspecting auto repair shops and of ensuring that those shops operated appropriately. The Department of Labor is required to investigate any time there is an accident that sends three or more employees to the hospital. The most seriously injured firefighter remained at the medical center for 18 days for burns and other injuries. One senior firefighter who’s leg was broken in two places has not returned to work. The fire started when a portable light was accidentally dropped on the floor of the auto body shop, according to the fire department’s report. The light fell on gasoline that leaked from
a car that was on a lift. The fire spread quickly from the ground to the car on the lift, then up to the roof, making the fire more significant. A closer inspection of the type of lights auto body shops use is being conducted. The Department of Labor said, via letter, “the Fire Department’s Inspection group start examining trouble shooting lights in auto repair shops to determine compliance for use and approval in hazardous locations.” Suitable portable lights have handles, hooks and guards attached to the handle or lamp holder, according to the Department of Labor code. All battery areas and wiring should be protected with insulation. “Experience has shown that the majority of fires and explosions associated with portable lamp use in service garages have been caused by flammable liquid contacting an exposed hot lamp bulb. The thermal shock from the liquid shatters the lamp bulb glass, and the hot filament ignites the vapors,” the code reads. Most commercial businesses are inspected every three years, a fire marshall said. He has sent information about portable lights to the fire inspectors in his department.
4 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
300 calls for rescue from stranded residents. A 10-mile stretch of I-10 was closed due to flooding, leaving people stranded for hours. Gov. Rick Scott declared a state of emergency for the panhandle due to the impacts. Aon Benfield also attributed economic losses of $950 million to a large hailstorm that hit the Denton, Texas metro area in April, an event that generated insured losses of about $650 million. That storm also caused widespread damage in parts of the Plains, Midwest and Mississippi Valley. According to remarks made in February by Insurance Information Institute president Robert Hartwig, 80% of U.S. natural disaster related insurance claims’ payouts in 2013 was attributable to tornadoes and severe thunderstorms, accounting for $10.27 billion. Oklahoma incurred the most damages due to tornadoes last year, Hartwig said, with nearly $2 billion in payouts, many of which were from a series of tornadoes in May 2013.
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Alabama Law Raises Severity of Penalty for Installing Faulty Airbags to Felony if Injury Results A new Alabama law increases the penalty for installing counterfeit airbags in cars—a crime that many consumers don’t know about until it’s too late, the law’s proponents say. “Occasionally you read about air bags not working, and the automobile industry has found this to be a major issue, because when people sit in their new car now, they expect it to be safe in the event of an accident,” state Sen. Jerry Fielding, R-Sylacauga, told Ryan Phillips, reporting for the Aniston Star. Fielding was the Senate sponsor of a bill passed by the Legislature earlier this year that ups the penalty for shops who knowingly install faulty or fake airbags in cars during repairs. Installing a fake airbag is already a misdemeanor, but Fielding’s bill would make it a felony if someone is injured as a result. State Rep. Randy Wood, R-Anniston, who also owns an automotive repair shop in Anniston, sponsored the House version of the bill, which failed when brought to a vote. “At my shop, we have never had a counterfeit airbag brought in, but then again I have always bought brand new factory equipment,” he said. “Just like if the part is a Honda, then you buy it from Honda. If it is a Ford, you buy it from Ford. I honestly did not know about this issue until I researched it and found that people were installing fraudulent airbags.” Airbags saved the lives of approximately 26,000 people between 1987 and 2008, according to National Traffic and Highway Safety Administration. But as shop owners know, not all collisions cause an airbag deployment, notes Gary Austin, owner of Austin’s Body Shop in Oxford. After 35 years of automotive repair, Austin said that he
has never seen a counterfeit or fake airbag in a vehicle brought into his shop. “I’ve had cars come in that wrecked, and the airbag didn’t go off, so naturally people ask why that happened,” he said.
Sarrell Couch with a deployed air bag at Wood’s Auto Body Shop in Anniston. Photo by Stephen Gross
Austin then said that if an accident occurs where a vehicle is hit from an angle, as opposed to a head-on collision, the airbags will not deploy in order to protect the passengers. Fatalities caused by counterfeit and faulty airbags make up a sizeable portion of auto-related deaths according to Clarence Ditlow, executive director for the Center of Auto Safety in Washington D.C. Ditlow said the issue does require regulation, but the people who commit airbag fraud have been hard to catch. “When you get to the issue of a counterfeit airbag, it will not be detected that it was a counterfeit,” Ditlow said. “The police investigating will not go to the trouble of investigating who made it, so unless you catch this fraud at the point of import, you probably will not catch the fraud before the crash when it is too hard to detect.” Fielding said that the inspiration for the bill came from one Alabama auto manufacturer in his district. “The legal counsel for Honda
NABC Appoints Dan Young to Board of Directors The National Auto Body Council (NABC) appointed Dan Young, CARSTAR senior vice president of insurance reltions, to its Board of Directors. Young will complete a twoyear term vacated by Mark Lovell of LKQ Corporation because of increased business commitments. As part of his responsibilities on the NABC Board of Directors, Young will also serve as chair of the NABC Distracted Driving Initiative, an intracollision industry effort to educate young drivers on the dangers of inattentive and distracted driving.
“We are delighted to welcome Dan to our Board of Directors,” said Chuck Sulkala, NABC executive director. “Dan’s considerable industry experience from both the collision repair as well as insurance Dan Young perspectives will be invaluable in helping NABC enhance community service programs make a positive impact in their local communities.”
6 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
came back to my office early in the session and said the industry was interested in promoting a bill to improve an existing bill relative to airbag fraud,” Fielding said. “There were a significant number of folks around the country that were being hurt by fraudulent airbags that were being repaired instead of being replaced with genuine airbags.” Samantha Corona, a corporate affairs and communications spokesperson for Honda Manufacturing of Alabama, said the company didn’t have data on the prevalence of injuries related to fake airbags. Even so, she said, fake airbags are a silent danger to drivers. “We don’t have any overall numbers of how many people are impacted by this, we just know it is a problem,” she said. “It is a safety issue. Counterfeit airbags pose a great risk and it is about ensuring that drivers are getting the airbags they need. This impacts all manufacturers.” Fielding said that the problem results from mechanics purchasing cheaper airbag imports from China for around $25 each, while American-
made parts may cost repair shops $500 to $750 each. “There was one case in California, where a young individual bought a used pickup truck and was involved in a serious crash where the airbag should have deployed, but the vehicle had been in a prior crash and the shop did not replace it,” he said. “So the lack of an airbag resulted in the death of a young boy.” Ditlow said the problem is due in part to a river of imports coming in from abroad. “One type of fraud occurs when repair shops may charge for it and only put newspaper or something in place of the airbag,” he said. “The other type of fraud occurs when they will put a counterfeit bag in the vehicle that was made abroad that is listed as original equipment.” According to Fielding, blame should rest solely on the individual who installed the system. “It goes back to the repair shop,” he said. “They should be liable and should be the one that gets charged—it goes back to whoever had knowledge that it was a fake.”
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 7
Gunder Suit Against State Farm Not Filed As Reported
An injunction by Florida shop owner Ray Gunder that aimed to block State Farm Insurance’s rollout of the PartsTrader parts procurement system in Florida was never filed in Polk County, FL, Court as was previously reported by Autobody News and other news outlets. Attorney John Eaves Jr. announced in November at an industry meeting in Florida that an injunction was being filed on behalf of Gunder. The Alliance of Automotive Service Providers of Illinois later issued a release stating that the injunction was filed on Nov. 20. However, it’s now reported that the injunction was never filed as intended. Brent Geohagan, Gunder's attorney, said that “certain tactical considerations and the potential inclusion of other parties, the lawsuit against State Farm with regard to PartsTrader was and has been put on hold temporarily and has not yet been filed as was otherwise originally intended to be done in November/December of last year.” “There was an avalanche of other parties that wanted to get involved... but we felt, right now, it was better to put it on hold,” Geohagan told a media source.
Captive Insurance Company Formed in North Carolina
Insurance Commissioner Wayne Goodwin announced that one of the nation's largest convenience store chains has formed a captive insurance company in North Carolina. A captive insurance company is formed for the purpose of providing insurance for the parent company and related entities. A “pure” captive insurance company exclusively insures the risks of its affiliates. More than 30 states have statutes that specifically authorize captive insurance companies to be organized under those laws. These statutes generally subject captive insurance companies to different regulations than traditional insurance carriers. The Pantry, Inc., based in Cary, NC, has formed Cellarium Insurance Company, Inc., a pure captive insurance company licensed by the NC Department of Insurance on Feb. 28. This is the first captive insurer to become licensed in North Carolina in 2014 and the first in North Carolina to be owned by a publicly-traded corporation. Four other captive insurers have formed in North Carolina since the state's Captive Insurance Act went into effect in late October 2013.
Albemarle VA Police Identify Suspect in Armed Body Shop Standoff Lasting More than Four Hours
A half-dozen Albemarle County police with guns drawn rushed a man inside a U.S. 29 auto body shop late the night of May 9, ending a nearly four-hour standoff. The man holed up in the Brown Collision Center at roughly 6:30 p.m. before being apprehended at 10:15 p.m. SWAT teams joined police officers and crisis negotiators for the standoff that lasted for about four and a half hours. Shortly before 10:30 p.m., police led the shirtless suspect out of the building, as a crowd across the street near Fashion Square Mall cheered. After being detained May 9th, Richard Barracks was arrested and charged with one felony count of being a convicted felon in possession of a firearm. Barracks is 32 years old and from Esmont, Virginia. He is currently being held at the AlbemarleCharlottesville Regional Jail. A worker at Brown’s said he heard shots hours earlier and saw a gunman stumble before his manager locked the auto shop with the man inside. As the standoff unfolded, county police lined a curb with weapons drawn and camouflage-clad officers crept around the back of the building. For hours, crisis negotiators tried without success to contact the man at the shop, located across the thoroughfare from Fashion Square mall.
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Tyler Sprouse, a body technician at Brown’s, said he heard shots and saw a gunman chasing another man after the auto shop closed at 5:30 p.m. He and his manager had stayed late cleaning cars, Sprouse said.
Law enforcement, including SWAT, was engaged in a standoff at Brown Collision Center for more than four hours
The gunman stumbled, fell to the ground and a pistol tumbled to the pavement, said a man who identified himself as the manager but declined to be named. Sprouse said the manager asked the gunman if he was OK, then tried to shut a bay door. The gunman squeezed in as the door was closing, Sprouse said. The manager then left, locking the door behind him. “He was thinking quick on his feet,” Sprouse said of his manager. A bullet pierced a window in the auto shop. “I’m just glad nobody was hurt,” Sprouse said.
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Cable-Dahmer Investments Pay Off with GM Customer Service Award Helped by 18,000 sq ft Collision Center
General Motors Co. awarded CableDahmer Buick GMC Cadillac in Independence the Cadillac Master Dealer award.
the former Broome Cadillac building into a 18,000-square-foot collision repair center, freeing up space for additional repair bays at its dealership operations in Independence. It enabled the company to expand its maintenance and repair capabilities, leading to better customer service. “The Cable-Dahmer group has owned this franchise for less than two years, and it has been one of our goals to go above and beyond customers’ expectations,” General Manager Dan Boyer said in a release. “I think this award beCable-Dahmer Auto Group Inc.’s renovations to longs to the entire staff that dedicreate an 18,000-square-foot collision repair cated themselves to making this center help it garner a big national award from happen.” General Motors Co.
The award recognizes dealerships that consistently demonstrate the highest level of customer service. Less than 7 percent of dealerships nationwide win the award, according to James Dornbrook, reporting for the Kansas City Business Journal. Cable-Dahmer acquired Broome Cadillac in August 2012, then merged it into Galen Boyer Buick/GMC, which it bought about the same time. It then invested $2.2 million to convert
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Tennessee Limits Access to Employees’ Social Media
Tennessee has joined the growing number of states that prohibits employers, including government entities, from requesting or requiring access to the private social networking or online accounts of employees and job applicants. The Employee Online Privacy Act of 2014 will take effect January 1, 2015. The Act bars an employer, regardless of size, from: ● requesting or requiring an employee or an applicant to disclose a password that allows access to the employee’s or applicant’s personal Internet account; ● compelling an employee or an applicant to add the employer to the employee’s or applicant’s list of contacts associated with a personal Internet account; ● compelling an employee or an applicant to access a personal Internet account in the presence of the employer in a manner that enables the employer to observe the contents of the employee’s or applicant’s personal Internet account; or ● taking adverse action, failing to hire, or otherwise penalizing an employee or applicant because of a failure to disclose information or take an action specified above.
I-CAR Makes Enhancements to Website, Redesign Coming
I-CAR® reinforces their ongoing commitment to providing improved services to industry professionals by launching the first of many enhancements to the I-CAR website. These first enhancements are centered around the user registration and tracking portal, myI-CAR.com, with improvements that include more user-friendly, streamlined registration and login pages, along with redesigned, personalized landing pages for faster navigation and ease of class scheduling. Users will see an immediate difference during the login process and find navigation easier as soon as they enter the site. The new landing pages have graphically-focused visual navigation for easy identification of quick links to frequently utilized resources and information. Some of the new highlights include immediate visibility to Gold Class and Platinum recognition status, expiration dates and reports that provide specific details on training required by students and businesses in order to achieve or maintain their Platinum or Gold Class status. Visit www.i-car.com or contact Customer Care at 800-ICAR-USA.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 9
New DARE Car’s Paintjob Unveiled in Rothschild, WI
BRB Auto Body owners Bill Yach, front from left, his brother Randy, and nephew Taylor; Rothschild police officer Jeff Zwicky, back left, and Rothschild Police Chief Jeremy Hunt pose with the new DARE car at BRB Auto Body in Rothschild. Perfect Upholstery, Loren’s Auto Body, Carquest, Pomp’s Tire, Broadway Ford and Andy’s Towing contributed to the effort.
A new tool added to the arsenal in the fight against drug abuse is attracting plenty of attention as it travels down the streets of Rothschild, WI, according to the Wausau Daily Herald’s Shereen Siewert. The 1996 Ford Crown Victoria has been transformed from a black and white squad car to a brightly painted, rolling advertisement for the community’s Drug Abuse Resistance Education, or DARE, program. The new DARE car replaces a 1992 Isuzu Rodeo used by DARE officers during the past several years.
“The kids are really paying attention to it,” said Rothschild Police Officer Jeff Zwicky, who teaches the DARE curriculum to about 200 students each year. “It’s great to see the kids get so excited about the DARE program. By drawing attention to the program, kids are more likely to want to get involved.” Rothschild Police Chief Jeremy Hunt said the makeover on the squad car was a two-year project made possible through the generosity of several Rothschild businesses that donated supplies and manpower. BRB Auto Body technicians designed and completed the exterior repair, while the interior was transformed at Perfect Upholstery. “Anybody that knows anything about vehicles can just imagine how much time and materials it takes to have an award-winning paint job as the one we have on this vehicle,” Hunt said. The DARE program, offered to fifth-grade students at three Rothschild schools, aims to prevent drug abuse by teaching students how to resist peer pressure and learn to say “no” to drugs. The program, which is offered at select schools nationwide, focuses on building self esteem and healthy social skills, Zwicky said.
10 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
‘Sound cannons’ May Eventually Blast Missouri Drivers
Missouri lawmakers were somewhat surprised when a strange concept arose at a joint House-Senate conference committee on the fiscal year 2015 budget. They were even more surprised by the evasive answer the Missouri Department of Transportation provided. Senate Appropriations Chairman Kurt Schaefer, R-Columbia, said constituents called him about these “Long Range Acoustic Devices,” or LRADs, and he read an article about them. In essence, they blast loud warnings at oncoming traffic, ordering drivers to slow down. Schaefer and other lawmakers on the committee had never heard of these devices, which are also used by police and military personnel to disperse protests and deter pirates. When department officials were called up for questioning, they danced around the topic. First, they had never heard of “sound cannons.” Then, they didn’t know how many they had. Then, they weren’t sure how much they cost. “The evasive answer was troubling,” Sen. Ryan Silvey, R-Kansas City, said. “We are elected to hold them accountable ... If they screw up, we have to answer for them at the ballot box.”
Even after some poking and prodding, the answers were unclear. Department officials said they have one, maybe two, LRADs and that they cost about $25,000 a piece.
LRAD in use by the Navy
Department officials said they sidelined the pilot project, for now, because public perception “got out of hand.” Turns out the department officials present at the hearing were incorrect. Although MoDOT had plans of leasing a couple LRADs as part of a pilot project this summer, the equipment was unavailable, spokeswoman Holly Dentner said. Dentner said the department didn’t intend to frighten anyone and wasn’t sure if the LRADs would be used in the future. Schaefer thinks the project should remain on the sidelines for good. A driver lacking confidence might get blasted by the sound and drive into the median or another car, he said. “This seems to be a horrible idea,” Schaefer said.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 11
Insurance Legislation President Resigns in Plea Deal with Prosecutors, Lawyer Says “Just a Slip”
Greg Wren, president of the National Conference of Insurance Legislators (NCOIL), was automatically deposed when he resigned as a member of the Alabama House as part of a plea deal with state prosecutors. Wren, R-Montgomery, resigned his legislative seat April 1, the same day he agreed to plead guilty in state court in Montgomery to a misdemeanor charge of using his office for personal gain. He agreed to pay $24,000 restitution, within 90 days, and to cooperate in a continuing investigation of corruption. According to charging documents, Wren’s problems stemmed from a state probe into his attempts to add language to the state General Fund budget late last year that would have effectively made a pharmacy cooperative the sole supplier of drugs for Medicaid patients in Alabama. Wren’s lawyer, James Anderson, said Greg did no business with the Alabama Co-op. Wren's amendment was stripped out in a conference committee after state Medicaid officials raised concerns, according to media reports. Wren’s lawyer said that Wren got into trouble as part of his effort to find work because he planned to retire from the state legislature after this year.
Wren announced in late January he wasn’t running for re-election, before he appeared before a grand jury. Anderson said he did so after his district was revised through a remapping. Anderson, his lawyer, said Wren pleaded guilty to a misdemeanor, and “We see no reason he won’t go back to the insurance business. This was just a slip on his part,” Anderson said. Media sources in Alabama said the probe also involves other leaders of the state legislature, including Mike Hubbard, Speaker of the Alabama House. Hubbard issued a statement after Wren’s guilty plea professing innocence. NCOIL works closely in providing the views of state legislators to NAIC and independently develops guidance and model laws state legislators can use in writing laws dealing with insurance oversight. NCOIL also seeks a leading role in ensuring that the states have a strong voice in international insurance issues and are not coopted on such issues as international trade and solvency standards by the new Federal Insurance Office. Wren was automatically succeeded by New York State Senator, Neil Breslin, 72.
12 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
I-CAR to Premiere New Interactive Damage Analysis Course, Advanced Steering, and Suspension Systems Advanced Steering and Suspension Systems Damage Analysis (DAM15), an all-new, instructor-led interactive course, will replace Electronically Controlled Steering and Suspension Systems (STE05) on June 9, 2014. This interactive course provides detailed information on the considerations for inspecting steering and suspension systems and provides knowledge that can lead to increased efficiency and a positive customer experience. Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Advanced steering and suspension systems are common in today’spvehicles and if not repaired properly, other vehicle systems can be compromised.” He continued, “Repairers can apply knowledge learned in this course throughout the repair process.” The course is complete with a series of interactive classroom activities and problem-solving scenarios designed to engage the student and enrich their learning experience in order to further prepare them to apply their knowledge on the job. Toward the end of the course, the student will engage in a “damage discovery” ac-
tivity where he/she will simulate the estimating process. This instructor-led, Live 3credit hour course meets training requirements for Estimators, Auto Physical Damage Appraisers and Electrical/Mechanical Technicians in I-CAR’s Professional Development Program™ (PDP). Once DAM15 premieres, STE05 will be discontinued. If STE05 has been completed, training credit earned will not be lost. To register for Advanced Steering and Suspension Systems Damage Analysis (DAM15), visit the I-CAR website at www.i-car.com or contact I-CAR Customer Care at 1-800-ICAR-USA (800-422-7872).
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Ohio Anti-Steering Legislation Scheduled for First Hearing Before Committee
The Ohio House of Representatives Insurance Committee held its first hearing April 28 on House Bill 526 (HB 526) that seeks to prohibit insurers from requiring a vehicle be repaired by a specific repair facility, or make a recommendation without first being asked for one by the consumer. The bill, sponsored by Representatives Matt Lynch (primary) and Robert Hagan (cosponsor) has been placed on the agenda of the Insurance Committee for its first hearing before the committee. House Rules require the sponsor of a bill or resolution to appear at least once before the committee considering the bill or resolution unless he or she has been excused from appearing by the committee chairperson or the Speaker of the House. Lynch reportedly was inspired to introduce the legislation after hearing from an auto body repair shop owner in his district. The repair shop was dropped from an insurer’s list of “preferred providers” after telling his customers that they have “the right to request the companies pay for factory parts,” according to a local report. “He got kicked off the [DRP] list because he’s being honest to his customers,” Lynch said, according to the report. “With this bill, there won’t be
any preferred lists and the policy has to clearly state one way or another whether you get these aftermarket parts of factory-approved parts.” HB 526 would enact Section 3937.381 of the Ohio Revised Code as follows: ● No insurer shall require a claimant on an automobile insurance policy to have the claimant’s vehicle repaired at a particular repair shop or by a particular person. ● No insurer shall recommend or suggest that repairs of the claimant’s vehicle be completed at a particular repair shop or by a particular person unless the claimant requests such a recommendation or suggestion. ● A violation of this section is an unfair and deceptive act or practice in the business of insurance under sections 3901.19 to 3901.26 of the Revised Code. The legislation is similar to measures enacted in a few other states that prohibit insurance companies from requiring repairs be made a specific collision repair shop, while providing them with the ability to make a recommendation to a customer that would like one from the insurer. Missing, however, is a common requirement for customer disclosure that they have a right to choose a repair facility.
SAFECars Educational Symposium is May 30–31 in Illinois
The SAFECars Educational Symposium will be held at the Schaumberg Convention Center in Schaumberg, Illinois. The Alliance of Automotive Service Providers of Illinois (AASPI) is hosting this two day event. SAFECars: One Voice—Collision Repairers for Consumer Choice, is a network of collision industry and legal professionals who abide by this mission: “To provide a resource for collision training and business skills so every consumer can receive a proper repair by a shop with the knowledge necessary to be paid for all the parts and procedures required for the repair.” The line up of speakers highlighting the two day event include: ● Jim Hood- Mississippi Attorney General and President Elect of the National Association of Attorneys General ● John Eaves Jr, Attorney at Law, Jackson, Mississippi, John Moseley, Clinton Body Shop, Clinton, Mississippi , Ray Gunder, Gunder’s Auto Center, Lakeland, Florida and Brent Geoghan, Attorney at Law, Lakeland, Florida will give details regarding lawsuits that have been filed throughout the country, starting in Missis-
sippi. Eaves Jr’s message is clear, “in today’s world, the collision repairer’s ability to complete a proper repair, in spite of insurer intrusiveness to control costs, is at startling proportions.” ● Patrick McGuire, Attorney at Law, Chicago, Illinois, a respected advocate of collision repairers ● Gary Wano Jr, G.W. Wano and Sons Collision Repair, Oklahoma City, will introduce ‘Manufacturer’s Certification Expense’ ● Ford Motor Company introduces the new aluminum 2015 F-150 ● Desmond Clark, former tight-end for the Chicago Bears ‘What it means to have a great coach and mentor.’ ● Michael E. Thornton, Congressional Medal of Honor Recipient – Navy Seal Team One “The team is above self—always” The complete agenda and registration is available online. AASP Illinois President Jeff Kallemeyn, 4th generation owner of Kallemeyn Collision in Lemon, IL, and Association Board Member Bill Byrne, America’s Auto Body are organizing this event along with John Mosely and the Mississippi Collision Repair Association.
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Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Automotive Aftermarket Association Southeast Finalizes Conference Plans for 2014 The Automotive Aftermarket Association Southeast Inc. (AAAS) Annual Conference and Trade Show 2014 will be held June 5–8, 2014, at the Sandestin Village of Baytowne Wharf in Destin, FL. In addition to providing useful educational information, the event will offer an excellent forum for networking opportunities and plenty of adventure through a fishing expedition, golf tournament, and dinner cruise. The cost of the conference is $135 per person with additional fees for the golf tournament and deep sea fishing expedition as detailed below. To register, return the registration form (available at www.aaas.us/events.aspx) and payment to AAAS Annual Conference and Trade Show, 11245 Chantilly Parkway Court, Montgomery, AL 36117. For questions or additional information, contact Jennifer Johnson at 800-239-7779 or jennifer@aaas.us.
Thursday, June 5 The conference will begin on Thursday, June 5, 2014, with a Welcome Reception from 6:00–7:30 PM.
Friday, June 6 Networking opportunities will resume at 5:15 AM Friday, June 6, 2014, with deep sea fishing aboard the Miss Hazel Charter Boat located behind the Fisherman’s Wharf Restaurant on Highway 98. With a huge 20-by-20-foot fishing deck, the boat can accommodate up to 20 people, who will be provided with all necessary equipment and lunch, to enjoy this angling trip at a cost of only $100 per angler. At 2:00 PM, the AAAS Board of Directors meeting will be held at the Baytowne Conference Center, and the evening will conclude with the AAAS Chairman’s Reception at the Baytowne Marina.
Saturday, June 7 After a continental breakfast and tabletop show at 7:30 AM, the educational portion of the conference will begin on Saturday, June 7, 2014, at 8:30 AM with AAAS chairman Mike Morgan welcoming attendees and sharing the “State of the Association Reports.”
Following Morgan, the first presentation of the morning will be “Aftermarket Changes and Trends Impacting You and Your Business,” given by keynote speaker John Washbish, president and CEO of Aftermarket Auto Parts Alliance. Over the course of his four-decade-long career in the aftermarket industry, Washbish has served on several councils and association boards in addition to receiving multiple awards that recognize his leadership skills. Morgan feels “very fortunate to have John joining us for our annual conference. We look forward to his visit, and him sharing his views and insights on the industry and the economy.” AAAS has also scheduled three additional gentlemen to follow Washbish, and they “are honored to welcome an impressive list of guest speakers who will deliver very timely educational and informative presentations on some of the most important topics facing the aftermarket industry today,” Morgan states. Washbish’s presentation will be followed by Scott Luckett, CEO of the Automotive Aftermarket Industry Association (AAIA), who will discuss “The Connected Car: The Impact of Vehicle Telematics in the Auto Care Industry.” Luckett’s efforts in the aftermarket industry have yielded recognition in the form of the 2001 Northwood University Automotive Aftermarket Education Award and the 2002 University of the Aftermarket Founders Service Award. Following a short break, “Aftermarket Access to OEM Vehicle Repair Information” will be presented by Skip Potter, executive director of the National Automotive Service Task Force (NASTF). With over 45 years of experience in the automotive industry, Potter has worked for multiple trade associations and been recognized with several awards, including being named an “Aftermarket Influence” by Babcox Publications in 1999. The concluding seminar, “Obamacare: Its Impact on You, Your Employees, and Your Business,” will be led by Wayne Bowling, senior vice president of employee benefits for the
14 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
green fees, lunch, refreshments, and a golf kit. The AAAS Annual Conference and Trade Show 2014 will conclude on Saturday night with a dinner party and bay cruise aboard SunQuest Cruises’ Solaris, included in the conference cost. With three decks of indoor and outdoor attractions, attendees will enjoy a threehour dinner cruise with three full courses, a premium bar, and house entertainment.
Willis Group. Bowling has been involved in the sphere of employee benefits since 1981 and will have plenty of useful insights on the highly-anticipated topic of Obamacare. The 2014 Bell/Hines Memorial Scholarship Golf Tournament will start at 12:30 PM at the Baytowne Raven Golf Course. Proceeds from the tournament benefit the AAAS Educational Foundation Scholarship Prop gram (AAASEF). The four-person scramble is an 18-hole tournament with competitions for longest drive, straightest drive, closest to the pin, and hole-in-one prizes on par-3 holds with a possible prize of up to $10,000, sponsored by Federated Insurance. The golf tournament was established in 2008 to honor Dick Bell and Al Hines for their tireless contributions to the aftermarket industry. Participants will be charged $125 per golfer with $25 being a tax-deductible donation to AAASEF. The entry fee also covers
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Lean Operations
The Process of Winning with David Luehr
In my first article for Autobody News, I’m going to write about winning. That sounds simple, you might think, but there’s a problem: Everything you know about winning is wrong. The moment of triumph, the congratulations, and the final score—those are the basic components of winning? Right? Wrong! If this surprises you, you are not alone. Until I learned the true secret to winning, I thought I knew all about the subject. I was totally wrong. I had a lot to learn. Now I’ve discovered the real sources of success, in both business and sports. Have you ever repaired a picky relative’s vehicle? Let’s say Aunt Patty’s new SUV. If you have, you know that no matter how hard you try to make everything perfect, she’s going to find fault with something. Either the color won’t precisely match, or a taillight will fail to work, and with your very particular Aunt Patty, no job is ever done on time. I’ve never liked working for people I’m close to—relatives, neighbors, or friends. No matter how good the work is, they always seem to want something more, often something that’s indefinable. It’s one of those situations where no one wins. So why is it that the jobs we fuss over the most give us the biggest headaches? Why can’t we win when it counts? Maybe we care too much.
Outcome thoughts vs. Process thoughts I know a little about tennis and a lot about body shops. Sometimes what works in one works in the other. One day my tennis coach told me the chief obstacle to improving my game was the fact that I care too much. “Care too much?” I asked. “Are you serious?” “Yes,” he said, “I am. You care too much about winning. When you start to play, you get so emotional that you can’t look at what you’re doing objectively.” It turned out I was having “outcome thoughts.” As I competed against my opponent on the other side of the net, my mind was on my hoped-for victory. I saw my last shot hitting just out of my opponent’s reach, and imagined him congratulating me at the net with a handshake. My thoughts weren’t fo-
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
cused on what it would take to get there.
Scoreboards Scoreboards aren’t just for fans. They help players too, especially after complicated actions. Once the confusion is over, the scoreboard tells them where things stand. However, if we allow our minds to get too wrapped up in the scoreboard data, we lose sight of the game right in front of us. If we always focus on the results posted on scoreboard, we’re ignoring what we need to do to win. At Nick Saban’s University of Alabama football program, throughout the season the coaching staff and players don’t talk about the National Championship, but they’ve won it three times in the last five years. How? Each Crimson Tide player and coach asks: What do I need to accomplish right now to dominate the competition? They know that you don’t earn the championship on the day of the championship game. You win it through a process of preparation that takes years. When we fail to prepare and execute at the body shop we invite all those hectic Fridays, when everything goes wrong. Why? Because we didn’t properly prepare on Monday and Tuesday. If we had, those Fridays would be easy. In the collision repair business, we hold ourselves accountable, using a system of Key Performance Indicators. These include Profitability, CSI, Cycle Time, Alternative Parts Usage, and many others. A good shop manager understands these metrics. A great manager always executes the tasks required to consistently reach the metrics. This isn’t something you do once in a while. In the collision repair business winning comes from the same basic principles as those found in tennis or football: constant attention to disciplined preparation and following the right process.
Scoreboard-based compensation Companies that rely on results-based compensation systems need to examine these carefully. Results-based compensation is popular because it seems fair: workers get paid on the basis of the results they produce. However some companies don’t, won’t, or can’t
16 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
measure results accurately, and sometimes they measure the wrong things, or fail to measure the right ones. This can lead results-based systems that create motivational “silos” that can damage your business globally. For instance, if your company’s “scoreboard” holds people accountable for Alternative Parts Usage, pressure to perform well on that could have a negative impact on Quality, Cycle Time, or CSI. It’s something you must watch out for. What might work better would be a program that rewards consistent quality in employees’ performance as they follow processes designed to ensure that work is done to a high standard. If their work follows a good process, and measures up to the best standards, results will usually take care of themselves. Three Elements of Winning Big MSO consolidators, like ABRA, Caliber, and Gerber, know that fast,
profitable growth comes from consistent, predictable positive results, one job after another. This is the only way to create secure relationships with insurers and customers. These companies also understand the staffing and training requirements for rapid and sustained growth. What winning principles do these industry giants follow? PROCESS, TRAINING and INSPECT WHAT YOU EXPECT. Their winning ways are based on a written process that produces consistent, predictable results. They train their people to follow the process, then they constantly check to make sure this discipline is followed day after day. Process, alone, isn’t enough. It must be accompanied by periodic testing. Shops that don’t implement PROCESS, TRAINING and INSPECT will struggle; most will fail.
Process If you’ve ever watched the best golfers, See Process of Winning, Page 22
Announces: A
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Continued from Cover
Florida Bans
salvage certificate of title (salvage title) or a certificate of destruction (COD) on a total loss motor vehicle. The bill also requires the Florida Department of Highway Safety and Motor Vehicles (DHSMV) to visually inspect rebuilt vehicles and issue an affidavit-of-compliance if repairs are needed before issuing a certificate of title. The DHSMV would charge $40 for each rebuilt vehicle inspection. In Florida, a rebuildable vehicle carries a Salvage Title, and an unrebuildable vehicle is issued a certificate of destruction. Under existing law, if the cost of repairing a vehicle ex-
ceeded 80 percent of the vehicle’s value, the owner was required to obtain a COD. The bill raises the 80 percent repair-to-value COD threshold to 90 percent, and limits its application to late model vehicles, seven years old or new, with a value of at least $7,500 just prior to sustaining the damage resulting in total loss. Vehicles worth less than 1,500 retail are specifically excluded. The new language added to section 319.30 of the Florida Statute reads: If a motor vehicle or mobile home is damaged, wrecked, or burned to the extent that the only residual value of the motor vehicle or mobile home is as a source of parts or scrap metal, or if the motor vehicle or mobile home comes into this state under
a title or other ownership document that indicates that the motor vehicle or mobile home is not repairable, is junked, or is for parts or dismantling only, the owner or insurance company that pays money as compensation for total loss of a motor vehicle or mobile home shall obtain a certificate of destruction... SB the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an
owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to obtain a certificate of destruction under certain circumstances; providing a criminal penalty, etc. Given the increase in the threshold more salvage motor vehicle titles are expected to be issued than under current law, allowing for more of those vehicles to be rebuilt and permitted back on the roads. Auto insurers would benefit from possible higher prices for salvage vehicles versus those receiving CODS. Conversely, the bill will result in fewer CODs being issued, reducing the number of vehicles available to dismantlers and recyclers. The bill also directs the department, on or before December 31, 2015, to assess and provide a summary report to the Governor, Senate President, and Speaker of the House of their findings regarding certificates of title and affidavits-of-compliance process. The legislation now goes to Governor to sign or veto the bill. As the legislature adjourns today, the Governor must sign or veto legislation within 15 days of transmittal, or it becomes law without signature. The bill would take effect July 1, 2014.
MCR Safety Donates 26,000+ Pairs of Safety Eyeware MCR Safety donated over 26,000 pairs of safety glasses and goggles worth nearly $50K to the Collision Repair Education Foundation (CREF). They will be distributed to collision school programs across the country for fall 2014. “We protect people and are proud to contribute our safety eyewear to help support CREF efforts...We hope our contributions will foster safety awareness throughout their careers,” stated Glen Herald, MCR Safety COO. CREF director of development Brandon Eckenrode noted, “On behalf of the thousands of collision students that this donation will assist and help keep them safe within their collision school programs, I would like to thank MCR Safety for their continued support. This in-kind donation will be one to remember, and it was awe-inspiring to have a semi-truck deliver 15 pallets of the donated glasses and goggles. This type of donation helps free up additional funds that can now be used elsewhere within their collision program.”
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 17
Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
I-CAR Atlanta Committee Golf Tournament Declared a Success! The I-CAR Atlanta Committee’s 5th Annual Golf Tournament was held at the Golf Club at Bradshaw Farm in Woodstock, GA, on April 24, 2014. The committee hosted the event to raise funds for the Collision Repair Education Foundation (CREF). Gerry Poirier, chairman of the ICAR Atlanta Committee, felt “the golf tournament went very well. The temperature was in the mid-70s so we couldn’t ask for better weather, and everything went out without a hitch. There were no issues or problems, and we saw one of the best turnouts so far!” The 2014 golf tournament attracted around 195 participants plus around 20 sponsors, including new first-year sponsors as well as sponsors who’ve been supporting the event since its inception five years ago. Poirier notes “we are very appreciative of all the sponsors who supported this year’s golf tournament—it would-
n’t have been nearly as successful without them!” Golfers had the opportunity to win a wide variety of prizes, some donated and some purchased by the ICAR Atlanta Committee. Prizes included golf equipment, two iPad Airs, a tablet, tickets to local events, and tons more. Registration for the golf tournament cost $100 per participant and included golf, range balls, cart fees, three drink tickets, contest holes, lunch, a reception dinner, and a goody bag. Participants included industry leaders and representatives from all segments of the collision repair industry, such as paint suppliers, parts suppliers, insurance companies, and body shops, as well as the principal and vice principal from Maxwell High School of Technology, a local school supported by the I-CAR Atlanta Committee. John VanAlstyne, I-CAR president and CEO, was also present
‘Top Secret’ Maaco Sign Creates Buzz Prior to Reopening at New Location on Applegrove in North Canton, OH
Craig Mullett has moved his Maaco collision repair and auto painting franchise from Jackson Township to 409 Applegrove St. NW, North Canton, OH. The news reveals what was advertised by a Top Secret sign tantalizingly placed outside the North Canton location. “We had a ‘Top Secret’ sign here in the building when we got it, and tried to do something with it. It might not be the prettiest answer, but that’s all it was ... just trying to create a buzz,” said Jared Mullett, Craig’s son and sales manager. The plan worked. The Mulletts said about 10 people a day during the week have stopped to ask what was going in the building. Craig Mullett bought the Maaco franchise after it was dormant for a year, and kept it in the Jackson Township building it had been located. “The guy who had it, had it for 30 years and it was shut down because he retired,” Craig Mullett said. “We did a reopen and kept it in the building he had because he owned it and the equipment. This was maybe the smartest thing we did. We spent the last four to five years running it, and building up capital to buy a new building and move it here.” Mullett bought the building on
Applegrove for $730,000, according to auditor records. Starting a Maaco franchise from scratch would have been much more costly than reopening one. Moving to North Canton on Applegrove, the Mulletts believe, will increase visibility and traffic. “We wanted to be in North Canton,” Craig said. “We’ve been looking to get into more of a retail space. Half of our business comes from retail. It’s great because we wanted to be a part of the North Canton community.” Craig Mullett worked in automotive software development before he got the bug to become his own boss. “I’ve always said, the rat race will survive without another rat,” Craig said.
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School of Technology. Poirier and the committee were “really pleased” with the 2014 golf tournament. Poirier explains, “when we first started the tournament, we wanted to sell out all the holes, and we managed to do that in our third and fourth years. So this year, we moved the tournament to a bigger, 27-hole course. Going to more holes was like starting over, but we sold 21 holes this year and came close to selling out the event. We had more room for the golfers so the speed of play went well, and several participants told me it’s the best tournament around the Atlanta area. This year’s event really exceeded my expectations!”
at the golfing event to enjoy the wonderful networking opportunity. Poirier has received nothing but positive feedback from participants, many of whom lauded the event as “one of the best golf tournaments in the Atlanta area, especially for networking.” The I-CAR Atlanta Committee 5th Annual Golf Tournament generated over $27,000 in proceeds to benefit CREF, an increase from their highest past yield of $23,000. The committee believes that supporting CREF is vital to the industry’s future. “We want to ensure that schools’ collision repair programs have the funds and equipment necessary to prepare these students to enter a career in the collision repair industry…it’s important to attract new people into this field.” In 2013, the committee proved their dedication to this endeavor by providing their own $50,000 makeover grant to support the collision repair program at Maxwell High
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Five Common Marketing Mistakes Body Shops Make with Ed Attanasio
1) Too Many Hats. Too Little Bandwidth You’re the owner, estimator, painter, front office person, receptionist, marketing director, technician and detailer. Oh, and I also forgot janitor, psychiatrist and a shoulder to cry on. As a marketing person, I wouldn’t know how to write an estimate or paint a fender, so why do you insist on trying to do it all when it comes to your marketing, public relations and advertising? Wearing too many hats means you’re doing too much and marketing should be the first hat to remove from your busy life as soon as you possibly can.
Solution: Empower and Delegate In some cases, you may already have someone in your crew that can help you in your marketing efforts. Maybe one of your estimators or front office people can play a role in your marketing scheme. One body shop took a newbie office assistant and turned her
into a confident and extremely efficient marketing professional and now she does all of their e-mail marketing, blogging, social media and online advertising. All it took was one day of training and she was up and running and ready to take on the world.
2) Too Late to the Party Without a strategized plan and an annual marketing budget, you’re shooting in the dark and the first casualty could be your business. Too many body shops get fat and happy when the cash flows in, but all of a sudden--wow, the competition comes to town or they lose a DRP and jump into panic mode. One body shop owner freaked out when three MSOs moved into his city, so he borrowed $50,000 and asked me where should he spend it? Use it for your retirement, I said, because marketing is something you do all the time—not just in emergency mode.
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Solution: Make It a Priority Marketing moves quickly and if your competitor is working faster and harder than you are, they will obviously capture more market share. There are only so many car accidents in your area every year, so why is the shop down the street fixing 150 vehicles monthly while you’re doing half that? Maybe because they’ve made their marketing a priority while many of your marketing projects are sitting in a constant state of limbo. “We’ll get to that next week…next month…next year,” and then it never happens. Marketing is not a part-time thing reserved for evenings and weekends, it’s fastpaced and ever-changing and that’s why it needs to be full-time and on the front burner.
3) Too Many Unrealistic Expectations If a marketing company says that they’ll get you ranked #1 on Google within one month’s time, listen to
what your father used to tell you—“If it looks too good to be true, well…” Some so-called marketing agencies can get you involved in what they call “black hat tactics” while promising you the world, which can lead to Google sanctioning you and shutting down your web site. If any company promises you anything—get it in writing and don’t pay them until they deliver.
Solution: Devise a Plan and Stick to It Too many business owners (not just body shops) develop a “checked box” mentality when it comes to their marketing efforts. “We updated our web site, created a blog and did some SEO, so we’re good.” Well, maybe you’re good right now, but how about three months from now? Just by checking things off on your marketing to-do list doesn’t mean you can stop or slow down. New content should be added to your site all the time to enhance
SEO. Your blog needs new articles, photos, etc. on an ongoing basis. I hate to see a collision blog that hasn’t been updated since 2012, for example. Marketing, advertising and public relations is not a start-and-stop thing and that’s why you should never even look at the finish line.
4) Too Dependent on DRPs You have some nice cozy DRPs that bring you tons of business, but if they make up more than 80% of your total revenue, you’ve got too many eggs in one basket. What happens if you fumble a couple repairs and suddenly you’re no longer the insurance company’s flavor of the week? A healthy balance between DRPs and non-DRP business should be close to 50-50, but too many shops don’t get it, until they get the axe. By continually hammering away at the big three—marketing, public relations and advertising—one DRP won’t be able to make or break you.
Solution: Seek Your Independence If you’re DRP dependent, you might want to do more consumer marketing and advertising, such as radio and TV broadcast, outdoor advertising, direct
mail, online advertising and social media. You can continue relying on your DRPs, but when times change and the DRPs are harder to attain, you’ll be in a better place and more prepared for a life with fewer DRPs. Plus, it all works together to brand your business, so that when consumers do have a choice, you’re on their radar.
5) Too Much Micromanagement Perform your due diligence and talk to a lot of marketing experts before choosing which way to go. But once you find the right company or individual, let them do their job and step aside. Too many body shops owners listen to everyone about marketing— their wives, girlfriends, the postman and the guy at the deli down the street. Hire the right people and let them perform. Sit down with them every 3-6 months to check the results of their work and re-assess things at that point, but don’t jump the gun when you don’t see instant results. Marketing takes time, like fine wine—but in the end you’ll start seeing positive results, because solid marketing is an investment and not an expense.
Solution: Become a Sponge Learn as much as you can about marketing, advertising and public relations and then pass it on to the people who will actually be doing the heavy lifting. If you’re knowledgeable, you won’t have to take advice from people who read something somewhere and aren’t afraid to share it with you. You need to be the final arbiter when it comes to your marketing. You may not have the time to do it yourself, but at least you’ll know what’s going on. The paint companies, professional organizations and marketing firms offer classes, training sessions and seminars all the time and many of them are free, so be a sponge and suck up as much of this information as you can, because knowledge is power.
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Indiana Autobody Association Calls Vendors to Action
IABA has released the following statement: Parts Vendors are aware of the litigation shops are getting involved with across the Nation, but you may not be aware of another litigation that is a National Class Action against the damages Parts Trader, APU Solutions, any other mandated parts procurement program, and State Farm and others requiring their usage has caused vendors on and off the program ? Last year when mandated parts procurement programs came into the industry, we knew there would be those damaged in many ways, but since it had not happened yet, there were only anticipated damages. That is now changed, and many have been damaged. A National Class Action litigation is in process, and any vendor regardless if they are currently on one of the mandated parts procurement programs or not, may be part of it. Even suppliers that the intentions of State farm has not reached you, Glass, Paint & Materials, Towing, PDR, etc. should look at this litigation as a prevention tool as well. Contact Marvin Windham, Benchmark Chrysler, at: (205) 3685206 to learn more. See cover story.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 21
Continued from Cover
Suit Against State Farm
performing an independent evaluation of damage. ● Attempting to persuade Coastal Collision Works and other Charleston body shops to not use new parts but to substitute parts of an inferior quality; to repair instead of replace parts requiring replacement; and to ignore damages that might not be recognizable by the customer. ● Arbitrarily refusing to pay reaContinued from Page 16
Process of Winning
you’ve seen them go through their “routines” just before hitting the ball. This routine is settling, and helps the golfer build confidence. Doing it every time also encourages a player’s consistency. Most start behind the ball, lining up the shot. Many golfers take a few practice swings. This is followed by visualization, and finally execution without tension or hesitation. One thing this does is to keep the golfer from allowing emotions to rule. The golfer has a strategy, and a proven process. The golfer who does this every time will avoid choking, and will live up to his or her potential. Almost everything in life is a process. Most of us have a morning routine: getting up, eating breakfast, going out the door. It gets us to work on time. Fixing cars is no different. Every shop has a process, whether they know it or not—but some have very poor processes. Many processes are outmoded, while others were flawed from the start. Many shops have good processes, but don’t consistently follow them. I’ve worked with organizations that had stale old policies created for situations that no longer existed—yet the policies went on and on. Such “sacred cows” must be slaughtered! In lean thinking circles, many of us have been involved in Value Stream Mapping. This is a detailed analysis, and “mapping out,” of a shop’s current processes. It looks at what goes into a process, how it works, and the value of the result. It forces the shop leadership to examine each task and method to see if these provide customers with the value they are willing to pay for. Value Stream Mapping should help the
sonable costs associated with needed repairs. ● Refusing to pay the fair market price of parts, insisting that any body shop doing State Farm repairs order from a specific parts supplier and then refusing to reimburse the body shops for the extra time involved in ordering parts from the specified parts supplier. ● Refusing to pay for certain repairs and operations necessary in the repair of damaged vehicles. In addition, the shop says State Farm falsely accused the owners of
charging noncompetive prices and of performing work not reasonably necessary for a proper repair, which has damaged the shop’s reputation and caused it monetary damages. According to the plaintiffs, State Farm violated the South Carolina Unfair Trade Practices Act by steering customers to competitors, citing the State Farm Select Service Program. The plaintiffs have requested triple damages from the court. A State Farm spokesman had not responded to a request for comment at press time.
shop’s staff identify those tasks and methods necessary for a good process. Most shops I’ve worked with had fragmented processes, each for a different area. These betray a lack of unity and direction. They often conflict with one another. This creates a disconnect between the administrative processes of the business, and the work processes used on the shop floor. This leads to poor communication, unnecessary delays, poor quality and upset customers. Any good administrative workflow process begins with the proper flow of dependent events in the system. Quality control must be built into the process, so, at each stage, the recipients get a product that meets all quality standards. A good process should: 1. Produce consistent, predictable results every time. 2. Have simple, clear instructions, written out and accessible to everyone. 3. Flow well from resource to resource, without unnecessary delays. 4. Identify who does what. 5. Be visual—both in the operating manual and on the shop floor. 6. Be comprehensive, well-planned, and free of waste and inefficiency— and no sacred cows! 7. Be based on proven methods or best practices. 8. Be created with the customer’s, and the employee’s happiness in mind. 9. Be created with the input and buy-in of the entire organization.
itself, then what good is it? This is also true when dealing with collision repair customers. Though you may know how to prepare an estimate, can you sell the job to the customer? Do the people on the floor know how to apply the process to the work? Have they been trained to do this? Remember, just because you give someone has an SOP manual, doesn’t mean he or she will be able to do every job in it. They might need a few lessons! These lessons come in various forms: I-CAR and other outside training services, in-house or on-the-job training, videos, workshops etc. Make sure your people have a deep understanding of how the processes work, and give them all the tools they need to execute successfully.
Training In business and in sports, you may know the process, without knowing how to use it. Great athletes spend endless hours practicing, and perfecting their craft. These athletes know without the right preparation, they won’t be able to win. But they also know they must execute. If they can’t apply all that preparation to the game
22 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Inspect What You Expect Testing and auditing are the “secret sauce” that brings it all together. I’ve seen many improvement initiatives fail, even in some organizations that had great people. Despite the dedication and effort that went into them, in most cases these initiatives failed, partially or fully, within a few months. Most often they fail because they neglect proper testing and inspection procedures. Testing and auditing isn’t a complicated task. It requires leadership, discipline, and a written test. It only takes an hour or two to type out a test. I prefer about twenty questions, some true-or-false, and some multiplechoice. Of the various auditing methods, I prefer this: 1. Identify the process’s most important elements. 2. Write an auditing form asking: “Is this critical task or process being followed consistently? Yes or No?” Your form may have as few as ten items, or it might have over a hundred, but all should be
State Farm to Raise Rates
State Farm, Illinois’ biggest car insurer, plans to raise its auto rates in the state by an average of 2.3 percent starting May 26, according to a filing. “Auto insurance rates in Illinois were adjusted to better reflect changing claims costs,” namely a rise in car repair costs, said Missy Dundov, spokeswoman for the Bloomingtonbased home and auto insurer. The exact price change will depend on the coverages that policyholders have, where they live, what kind of car they drive, how the car is used, and who drives it, she said.
noted and answered in the course of an audit. I recommend frequent auditing, especially whenever new processes are being implemented. In a more stable system this should still be done at least every quarter. Those who are engaged in the auditing process should see it as an ongoing coaching opportunity.
Summary Finally, the Process of Winning is this: 1. Create good processes that are aligned with the entire organization. 2. Slaughter the “sacred cows.” 3. Focus on process, not outcomes. 4. Be careful how you measure people, and how you define success. 5. While it’s okay to look at the scoreboard once in awhile, don’t focus on it! 6. Don’t get emotional. When the pressure is on, stick to the process. 7. Training, training, training. 8. Testing, testing, testing. 9. Inspect What You Expect. 10. Most importantly, be disciplined… and don’t ever give up! Body shop people are some of the smartest, hardest-working folks on the planet. They shouldn’t suffer from the diminishing returns so typical in today’s ultra-competitive and everchallenging marketplace. It’s not so much that they “care too much,” but they often work in hurried environments, where they aren’t given time to direct their passions sensibly. Care about the task at hand, and don’t worry about Aunt Patty’s smile. You might improve your repair process as much as I improved my tennis game. Once I learned to love the rewards of each step in the journey, I found my first trophy at the end. You can too!
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Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Southern Automotive Repair Conference Held by Six State Associations The Southern Automotive Repair Conference (SARC) took place at the Beau Rivage Resort and Casino in Biloxi, MS, April 11 and 12, 2014. With six state associations collaborating to host the event, expectations had set the bar high, and no one was disappointed! Steve Plier, executive director of the Alabama Automotive Repair Society of Excellence (ALARISE) who hosted the first SARC in 2012, was “pleased with the conference. This was the first year that we had six state associations working together, and we also had visitors from eastern Texas who are considering forming an association in their area. I think that we all realize that the only way to effect the change needed in this industry is by providing collision repair industry professionals with the opportuSteve Plier nity and means to educate themselves on business principles and to remain abreast of the training and equipment necessary to repair vehicles in light of ever-changing technology.” The first SARC was held in 2012 with most attendees coming from AL, but when ALARISE worked with the Mississippi Collision Repair Association (MSCRA) in 2013, attendance spiked to around 250 industry professionals, including some attendees from FL and GA. By including four additional associations in 2014, SARC more than doubled attendance with nearly 600 individuals present to partake of the networking and educational opportunities provided by the conference. The new associations who participated in the 2014 SARC were the Florida Auto Body Association (FACA), the Georgia Collision Industry Association (GCIA), the Louisiana Collision Industry Association (LaCIA), and the Tennessee Collision Repairers Association (TCRA). The group decided to hire an Administrative Coordinator, Georgia Thorson, to handle the day-to-day questions and details, and Plier praises Thorson for doing such an ex-
cellent job in coordinating the event. Of course, the six associations who hosted the conference also deserve credit for its success. Aaron Schulenburg, Executive Director of SCRS, praises the collaborators. “I’ve had the fortune to be involved in each iteration of this event since it was established, and it is amazing to watch the growth of involvement and drive in the marketplace. There is a lot to be said for the organizational efforts extended by the state associations who are all involved in orchestrating the event, and it certainly makes us proud that all of those organizations are SCRS Affiliate Associations… I always expect a lot out of this event, and it never fails to deliver.” The 2014 SARC focused on education, business principles, consumer protection, and shops’ right to receive fair compensation for work performed. These efforts received approbation from SCRS; as Schulenburg explains, “marketplaces benefit from the ability to have a strong and focused group create opportunities for them to learn from some of the industry’s leading subject matter experts in the convenience of their own back yard. Just as important, the association events promote camaraderie and networking. It’s through these types of events that competitors can view each other as colleagues and that there can be healthy discussion about ways that the industry can better serve the consumer.” The conference began on Friday afternoon and continued on Saturday with a full agenda of featured speakers, breakout sessions, and sponsor demonstrations, in addition to exhibitions on the tradeshow floor which was open for the duration of the conference. Topics ranged from marketing to the new aluminum F-150 and beyond; Plier boasts “you name it and we covered it!” Registration began at 4PM on Friday with the Welcoming Reception and exhibition floor opening at 6PM. The presentations on both Friday and Saturday were moderated by the Master of Ceremonies, Patrick Porter, radio personality and owner of Porter’s Body Shop in
24 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Brookhaven, MS. At 5:30 PM , the first breakout session of the conference was “Businesses Marketing Strategies,” presented by Ron Perretta and sponsored by PPG. On Saturday, the tradeshow floor was open from 8AM until 5PM, allowing attendees to visit exhibitors’ booths in between educational seminars. Ron Perretta began Saturday’s conference at 8AM with a two-hour “Social Media Workshop,” sponsored by PPG which ran at the same time as four additional breakout sessions. Bill Byrnes of America’s Auto Body and Mitchell International both presented at 8AM, and Byrnes repeated his seminar at noon. Next, at 9AM, Tony Nethery, Executive Director of TCRA, discussed “Future Equipment, Training and Cost,” while in another room, the Coalition for Collision Repair Excellence (CCRE) explained who they are and what they strive to do.
The Featured Speakers segment of the conference began at 10AM with an Industry Update as presented by Schulenburg on behalf of SCRS. Schulenburg was followed by Richard Valenzuela of NABR who discussed “Variable Rate Systems.” In addition to Byrne’s second breakout session at noon, two more sessions were held at the same time: a two-hour session on the new aluminum F-150 model, led by Chief’s Ford F-150 Project Manager, Richard Perry, and a one-hour segment by Dave Bortz of Car-OLiner. While Valenzuela repeated his seminar at 1PM, Ron Perretta of Professionals Auto Body held a breakout session entitled “Business Basics,” thus concluding the event’s breakout sessions. From 2-6PM, the final four Featured Speakers gave one-hour presentations, beginning with Congressional Medal of Honor Recipient, Mike See Conference Delivers, Page 46
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The Honda and Acura Dealers Listed Here are HO ND A AL AB A M A
FL O RIDA
FLOR ID A
GEO RG I A
Jerry Damson Honda
Classic Honda
Rick Case Honda
Hu n ts vi lle
O r l an do
Davie
Bu f ord /G win net t
800-264-1739 256-382-3759
888-893-4984 407-521-1115
877-544-2249
678-318-3155
Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com
Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com
Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com
Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com
South Motors Honda
Milton Martin Honda
Serra Honda
Coggin Deland Honda
M ia mi
Gain esv ille
B ir m in g h a m
D e l an d
800-987-0819 205-949-5460
800-758-0007 386-626-1811
888-418-3513 305-256-2240
770-534-0086 678-989-5473
Dept. Hours: M-F 7:30-5; Sat 8-3 mpowell@serrahonda.com
Dept. Hours: M-F 7:30-6; Sat 8-5 gbennett@cogginauto.com
Dept. Hours: M-F 8-7 mfranceschi@southhonda.com
Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com
Nalley Honda
GEOR GIA FL O RI D A
AutoNation Honda Clearwater Cle a rwa t er
Ed Morse Honda
Carey Paul Honda
R i v i e ra Be a ch
S ne ll vi ll e
800-232-1098 561-844-8089
888-205-2564 727-530-1173
Dept. Hours: M-F 7:30-6; Sat 7:30-5 tonyrocha@edmorse.com
Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com
Headquarter Honda
AutoNation Honda Hollywood
800-497-2294 407-395-7374
Ho lly wo o d
800-542-8121 954-964-8300 Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com
Braman Honda of Palm Beach G re en a c re s
C l e r mo nt
Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com
Hendrick Honda Bradenton B ra de n to n
877-706-2021 941-752-2123 Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com
888-479-0695 561-966-5185
Hendrick Honda Daytona
Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com
800-953-4402 386-252-2301
D a y to n a Be ach
Dept. Hours: M-F 7:30-6; Sat 8-4 Hondadaytonaparts@hendrickauto.com
Honda Mall of Georgia
Un ion City
770-985-1444
866-362-8034 770-306-4646
Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com
Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com
Ed Voyles Honda
Southern Motors Honda
M ar i e tta
Savann ah
800-334-3719 770-933-5870 Direct
888-785-8387 912-925-1444
Dept. Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles.com
Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com
Gerald Jones Honda A ugus ta
800-733-2210 706-228-7040 Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com
MI SS IS SI P P I
Patty Peck Honda Rid g elan d
800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com
Gwinnett Place Honda Dul uth
N O. CAR O LI NA
800-277-8836 678-957-5151
Apple Tree Honda
Dept. Hours: M-F 7:30-6; Sat 8-5 gphwholesaleparts@hendrickauto.com
800-476-9411 828-684-4400
Ash ev ille
Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com
AC U R A AL AB A M A
FL O RIDA
GEOR GIA
GE OR G I A
Jerry Damson Acura
Duval Acura
Jackson Acura
Hu n t svil le
Ja ck s o nvi ll e
Ro swe l l
Savann ah
800-264-1739 256-533-1345
800-352-2872 904-725-1149
877-622-2871 678-259-9500
800-347-0596 912-232-3222
Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com
Dept. Hours: M-F 7-7; Sat 8-5 cecil.adams@duvalacura.com
Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com
Dept. Hours: M-F 7:30-6; Sat 8-2 Tim.johnson@acuraofsavannah.com
Rick Case Acura
Nalley Acura
FL O RI D A
Acura of Orange Park J ack so n vi ll e
888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com
F o rt La u de rda l e
M ar i e tta
800-876-1150 954-377-7688
800-899-7278 770-422-3138
Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com
Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com
26 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Southern Motors Acura
N O . CA RO L IN A
Flow Acura Win st on -Salem
800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com
NO . C AR O LI N A
NO . CAR OL INA
TEN NE SS EE
V IR GIN I A
Burlington Honda
Vann York Automall
Bill Gatton Honda
B u r lin gt on
High Point
Br is to l
Hamp t on
800-822-5108 336-584-3431
336-841-6200
800-868-4118 423-652-9545
757-838-1672
Dept. Hours: M-F 7:30-6:00; Sat 8-1 parts@burlingtonhonda.com
Crown Honda Southpoint Du r ha m
855-893-8866 919-425-4711 Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com
Hendrick Honda Ch a r lo t t e
800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com
Leith Honda Ra le ig h
800-868-6970 919-790-8228 Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com
McKenney-Salinas Honda G as t on ia
888-703-7109 704-824-8844 x 624 Dept. Hours: M-F 7:30-5:30 parts@mshonda.com
Metro Honda I nd ian Trail
866-882-9542 704-220-1522 Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com
N O . CAR OL IN A
Dept. Hours: M-F 7:30-6; Sat 8-3 SO . CAR OL INA
Breakaway Honda G re e n vi l l e
800-849-5056 864-234-6481 Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com
Midlands Honda C o l u m bi a
Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com
Priority Honda Dept. Hours: M-F 7:30-6; Sat 8-5 jarmentrout@priorityauto.com
Valley Honda Wolfchase Honda
Stau n ton
Ba r tle t t
800-277-0598 540-213-9016
800-982-7290 901-255-3780 Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com
Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com
West Broad Honda VIRGINIA
Rich m on d
C hr is tia n burg
800-446-0160 804-672-8811
Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com
800-979-9110 540-381-3200
Piedmont Honda
Dept. Hours: Mon-Fri 7:30-5:30 Sat 8:00-5:00 rthompson@duncanauto.net
Dept. Hours: M-Thu 7:30-6:30; Fri 7:30-6; Sat 8-3; Sun 11-3 wbhonda@aol.com
877-273-4442 803-691-8585
A n de r so n
800-849-5057 864-375-2082 Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com TE NNES SEE
Airport Honda Alcoa
Duncan’s Hokie Honda
Hall Honda Vi rgi ni a Bea ch
800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com
800-264-4721 865-970-7792
Hendrick Honda Woodbridge
Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com
703-690-7777
AutoNation Honda West Knoxville K n ox v i l l e
800-824-1301 865-218-5461 Dept. Hours: M-F 7:30-6 rossd1@autonation.com
NO . CARO LI NA
Wo o db ri dge Dept. Hours: M-Fri 7-6 Sat 8-5; Sun 10-4
Priority Honda C he sa pe a ke
757-213-0539 Dept. Hours: M-F 7:30-6; Sat 8-5 jwilliams@priorityauto.com
VIR GIN IA
For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com
V IR GIN I A
Hendrick Acura
Performance Acura
Crown Acura of Richmond
Ch a r lo t t e
C h ap e l H i l l
Ri chmo nd
Falls Ch u rch
800-768-6824 704-566-2288
888-788-7301 919-942-3191
800-523-4411 804-527-6865
800-550-5035 703-824-5785
Dept. Hours: M-F 7:30-6; Sat 8-5 justin.taylor@hendrickauto.com
Dept. Hours: M-Th 7-7; Fri 7-6; Sat 8-5 performanceparts@hendrickauto.com
Dept. Hours: M-F 7:30-6; Sat 8-5 thoover@crownauto.com
Dept. Hours: M-F 7:30-6:00; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com
Leith Acura
Radley Acura
Karen Radley Acura
Ca r y
Wo o db ri dg e
800-868-0082 919-657-0460
800-355-2818 703-550-0205
Dept. Hours: M-F 8-6; Sat 8-4:30 parts@leithacura.com
Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 27
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
June Retrospective: ASA Position, CAPA, CIC with John Yoswick
20 years ago in the collision repair industry (June 1994) The association representatives at the (Society of Collision Repair Specialists’ Leadership Conference) meeting were in unanimous agreement on one issue: insurer involvement in parts purchasing. A resolution, passed unanimously, recognized the right of insurers to pursue programs they view as cost-saving, but called for the insurance industry to consider repair industry concerts when developing any such program. The resolution listed some of the industry’s concerns regarding insurer involvement in the ordering or purchasing of parts, specifically: • that insurers will use such program to force or intimidate a shop to use parts suppliers with which the shop does not want to do business; • that the programs would substantially reduce shop profits; • that inefficiencies could result
from delays caused by such problems as inaccurate parts numbers used in the electronic process; • that return of parts might be more complicated (because of the distance of the participating supplier, for example); and, • that the quality of service provided by parts suppliers may suffer if the choice of suppliers is limited by such a program. —as reported in Collision Expert
15 years ago in the collision repair industry (June 1999) How much more money can the insurance industry squeeze from collision repairers? Try $2 billion to $4 billion. That’s the figure presented in an article called “Achieving World-Class Claims Performance Using Innovative Supply Chain Management” in McKinsey’s Property-Casualty Insurance Annual. How could the insurance industry realize this savings? By creating
super direct repair programs. “In general,” the report said, “channeling more repair volume to fewer network participants leads to better prices and other concessions.”
Solera’s Tony Aquila, speaking at an international collision repair conference in 2009, said businesses should focus on ‘value’ rather than price, “because cheap sucks.”
David Friedman, one of the authors of the report, amplified the point. “Let’s say State Farm says to their DRP providers, ‘We think you’re the best of the best and we’ve got a new higher-grade program where we’ll
channel even more work to you and we’ll have less inspection.” —As reported in The Golden Eagle. By mid-2000, State Farm was piloting a “Select Service” program with Sterling Collision shops (prior to that chain being owned by Allstate) in several markets; the program eventually replaced the insurer’s “Service First” program, significantly reducing the number of participating shops. 10 years ago in the collision repair industry (June 2004) Tom McGee would like everyone in the collision industry to ask themselves two questions: What led you to get into this industry, and did you ever expect when you started out to be doing what you’re doing now? McGee, the CEO of I-CAR, posed those questions to about 60 people attending an I-CAR “industry forum” in Chicago as a way to introduce his con-
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10720 Northlake Auto Plaza Blvd. Charlotte, NC 28269 Mon-Fri: 7:30am-6:00pm Sat: 9:00am-5:00pm
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cept for some websites to help attract more young people into the industry. “Nobody ever explains the career opportunities,” said McGee, who said he’s now the head of an international training organization but started out in the autobody “hobby class” in his high school. “I use the example of touring the DuPoint lab and looking at people who used to be technicians now working in the chemistry area in product analysis. Guys who worked in the stall next to me at my first job out of college now work for GM and Daimler-Chrysler. Did I expect them to go there or me to go here? No. But we don’t show parents what these opportunities are to allow them to understand that kids can make a good career and living in this industry.” McGee, drawing on his own experience as the father of three kids, ages 7 to 12, suggested that I-CAR develop age-based websites that would include such interactive activities as racing and other games, drag-anddrop customizing of vehicles, trivia and printable coloring books that would give kids reasons to visit the sites…The sites would let kids tinker with cars “virtually,” and also help them see that collision repair skills
can lead to rewarding careers not only within shops, but also with paint companies, information providers and insurers. —As reported in Autobody News. I-CAR launched two such websites in 2005. CollisionCareers.org is still live, though it is fairly static and offers little in the way of career path “stories” as it did in the early days. CollisionKids.org is no longer an active site. McGee left I-CAR in 2008 and is now with the Automotive Training Institute.
5 years ago in the collision repair industry (June 2009) Tony Aquila, CEO of Solera, Inc. (the parent company of AudaExplore) told the 250 IBIS attendees (shops, insurers and vendors from about two dozen countries) that businesses moving forward can take one of two roads. “I think you can just focus on ‘faster, better, cheaper,’ but to me, that’s a dead-end,” he said. “It really doesn’t take you anywhere, because eventually, you can’t make it that much cheaper, and you start to erode your profitability, then you start to lose your enthusiasm and vision, and everything kind of unravels. Or you can focus on
what we believe, which is ‘faster, better, more valuable.’ Focus on highvalue things that allow you the opportunity to innovate. Because then price is not the issue. It’s about the value you are delivering. We make no bones about it: When we do something, we want to get paid for it because we’re doing something high-value.” Aquila was asked how his company’s shop customers can use that concept when they feel continually squeezed by insurers. “If the customer is saying they want cheaper, then I would argue to my people that we’re not doing a good enough job providing more value,” Aquila said. “When you focus on just price, the value curve is out of the equation. That means innovation is not happening. You’re not giving them more services. When customers say to me, ‘We need it cheaper,’ then I immediately think: What do I have to do to add more value so they stop talking about cheap. Because cheap sucks. It’s not good for any of us. What we need to concentrate on is how do we get the waste out of the process.” —as reported in CRASH Network (www.CrashNetwork.com), June 29, 2009.
ETI to Hold Meeting with NACE CARS in Detroit
Another automotive industry organization will be joining Industry Week and the NACE/CARS 2014 Conference & Expo in Detroit MI. The Equipment & Tool Institute (ETI) will hold their board meeting Tuesday, July 29, 2014, at the Westin Book Cadillac in Detroit,. Dan Risley, Automotive Service Association (ASA) president and executive director, stated “We are thrilled to have ETI join us in Detroit this year. This is a very important and respected organization, and their support is significant to Industry Week. The overriding purpose of the event is to bring the industry together, and ETI’s involvement is another example of collaboration.” “ETI is pleased to be holding our summer Board of Directors Meeting in Detroit in conjunction with Industry Week,” said Jessie Korosec, ETI meeting and event manager. “The Westin is an excellent venue and we are looking forward to a successful meeting.” Visit www.etools.org and www.naceexpo.com to learn more.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 29
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
What’s In A Name? Possibly The Success Of Your Shop! with Thomas Franklin
Recently the president of the local Autobody Association Chapter renamed his shop. It had been J & L Body Shop for many years, but he chose to rename it Fix Auto, Sun Valley. Obviously he chose this name to reflect a relatively new relationship with the Fix Auto organization. But there may have been a deeper reason for the renaming. When all a prospective customer has to judge a shop is the name, a name like J & L really says nothing about the nature or quality of the shop. And this shop name is typical of many shop names that just reflect the owner’s name or names. But even those shops that intend to convey some degree of quality in their name -- like Elite Auto Body, Precision Auto Body, Superior Auto Body, Supreme Auto Body, Ace Auto Body, etc. -- are so commonplace they are no longer noticed. The effect can be the exact opposite of what was intended. Ideally you need to create a name with a trademark image that no one can ever mistake as someone else’s! And that image has to convey quality and uniqueness at a single glance -- not an easy task. First of all, recognize your own uniqueness. Every human is different. We have unique fingerprints and voiceprints. Your shop also has at least one unique characteristic. There is at least one thing that your shop does a little different (and hopefully a little better) than most shops around you. Find a way to emphasize that. You don’t necessarily need to change the name of your business, but you do need a sub-title, a slogan that strongly announces some specialty that is uniquely yours. Some shops specialize in a particular make of vehicle.
Identifying their specialty is easy. They can announce: “We are masters of Jaguar repair” or “Porshe repair” or “Volvo repair.” Others may focus on being “Paint Matching Specialists” or “Excelling in Perfect Restoration.” Shops that are already successful may not need much more, but those with no recognizable image need to be doubly creative. While actually changing the name of your body shop may be a more radical move than is necessary, it could also be a very powerful marketing action if a name with exceptional drawing power is selected. A few body shops in the Los Angeles area have names that suggest certain characteristics. One shop, for example, is named “Car-tique,” an obvious adaptation of “boutique” which suggests a small but elite type of shop. Another body shop was named “Picasso,” obviously a reference to the famous painter and an implication that this shop specializes in fine paint work. One shop in the Marina area was called the “Insurance Collision Center,” a direct reference to their primary source of work. “Country Club Auto Body” in Mission Hills would seem to be catering to affluent customers (or “wanna be” affluent customers). A shop that emphasizes service might want to choose a name like “Red Carpet Auto Body,” that says to a prospect, “Come to our shop and we’ll roll out the red carpet for you.” A name of this kind also provides some immediate ideas for decor. In his “The Guerrilla Marketing Handbook,” Jay Levinson has a number of good suggestions on name selection that might apply to body shops. For openers he discourages seeking advice from friends, family and other casual
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bystanders. He notes that names selected by committees are “usually losers.” He suggests instead making a list of the qualities your business emphasizes, with an eye to incorporating a key quality in the name of your shop. Some examples might include “Speedy,” “Reliable,” “Fearless,” “Flawless,” “Professional,” or “Jiffy.” Jay also cautions against the word “International,” a name is so frequently used, it gets lost in the shuffle. It takes up six full columns in one Business White Pages alone! Some marketing research done many years ago turned up the fact that people were unusually attracted to the word “Apple” in a business name. After that survey, there was a rash of new businesses with the word “Apple” in the name. These ranged from “Apple One Employment Agency” to “The Apple Farm” restaurant, “Apple School” and, most famous of all, “Apple Computers.” In New York I wouldn’t be sur-
prised to see a shop called “Big Apple Auto Body,” but elsewhere it may be wiser to come up with a different approach. After all is said and done, if a shop’s name is “Superior Auto Body” and the work isn’t “superior,” or even competent, no amount of namechanging is going to compensate for that liability. And if a shop’s name is “Mediocrity Plus” but the work is excellent, the name will be only a small liability. A good name or slogan is an essential part of a good “First impressions marketing strategy,” but once a prospective customer is in your shop and has experienced your fine quality of work, it will no longer matter what you call your shop. When you’ve chosen well and communicated it well, your “trademark image” will be indelibly branded on the minds of both customers and prospective customers and will quietly contribute to your continuing prosperity.
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Body Shop Embezzlement Trial in Baraga County, Michigan, is Extended
Cynthia Wadaga is on trial accused of embezzling more than $20,000 from the L’Anse body shop where she worked over a two year period. Wadaga worked at First Choice Auto Body in L’Anse from June 2009 until June 2011, when owner William Ross fired her and accused her of having stolen from the business. An estimated $24,000 was taken during that time, according to reports in the Daily Mining Gazette. Testifying for the prosecution was Andrew Wallner, a certified public accountant Ross brought in to look at the company’s financial reports after he fired Wadaga. While the bottom line was the same on both the company’s Quickbooks records and the bank deposit slips, they got to the total by different ways. Less cash went to the bank, but the difference was made up by checks not reflected in the Quickbooks account. He showed examples of accounts where the cash total had been adjusted downward. “We determined that there was an issue, and Willie’s accusation that there was an issue on his books was justified, and we needed to turn it over to the officers and let them pursue it,” he said. During cross-examination, he al-
lowed for the possibility that the revisions could have come from changes in estimates for the work, records for which had not been provided to him. Wadaga’s attorney, George Hyde, also questioned Wallner about omissions and inconsistencies with the audit report from First Choice’s software. The audit report for July 2011 came in at 729 pages; the combined report for July through December was 727. Wallner said there could potentially be a difference in the printing settings, but he couldn’t say for certain without more information. Dan Larson, an employee at First Choice Auto Body since 2010, said owner William Ross had come to him with concerns Wadaga was stealing from the company. “I said, ‘Well, let’s start counting,’” he said. They tabulated the amount of petty cash in the cash box at $103. Two days later, it was at $3. Under cross-examination, Larson said the cashbox was kept in the same cabinet; both cabinet and box were locked at night. However, he did recall some instances where he was able to see the open box unsecured during the work day. Hyde asked Larson about alleged conversations with Wadaga in which
he expressed concerns that Ross was taking too much money from his business. Larson said he could not recall having such a talk, and had never had thoughts along those lines. Fraud examiner John Bengel, discussed financial inconsistencies in the First Choice records. Bengel presented transactions from towing and repair records that had been zeroed out on Quickbooks from Wadaga’s login. A June 9, 2011 repair was entered as $250.00 and voided out shortly after that. Bengel said staff had confirmed the repair work had been done. “There would be no reason to have this transaction voided from Quickbooks,” Bengel said. On numerous occasions, $100 cash deductibles were marked as paid on invoices, but no record could be found in the Quickbooks audit report. After the last of the 89 exhibits was introduced, Bengel then moved to deposits made to Wadaga’s checking account between June 2009 and June 2011. He read off the total cash and check deposits for each day, then the combined totals for each week. Wadaga is charged with embezzling less than $50,000, a 10-year felony. The trial is expected to conclude May 21, after this issue has gone to press.
Jordan, MN, Shop Owner Arrested on Meth Charges
David Michael Kepner, owner of Smash Auto Body in Jordan, MN, has been charged in Scott County District Court with first-degree drug possession and sales, a felony. According to court documents: Southwest Metro Drug Task Force commander Phil Nawrocki executed a search warrant at the business, which also includes Absolute Towing, on May 13. A pipe, loaded syringe and large wad of money was found and the pipe fieldtested positive for methamphetamine. Kepner, 48, was arrested, waived his Miranda rights, and agreed to give a statement to law enforcement. He stated that he had relapsed and started using meth again, about every five hours. He both smokes and injects the drug, he told police. He admitted he had a meth pipe, the syringe—which contained a quarter-gram of meth—and $5,140 in cash on his person when he was detained. Kepner stated that law enforcement officers could find less than 2 ounces of meth in a paint can located next to a scale. He admitted that he sells a little meth but then added that he doesn’t make much money off of his sales.
Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops
Assured Performance and Auto Damage Experts (ADE) announced at the latest Collision Industry Conference (CIC) that ADE has been chosen to perform the inspection and verification of Assured Performance Certified repair facilities across the country. The Assured Performance certification program provides a thirdparty assessment of a shop’s ability to properly repair today’s complex vehicles back to the manufacturer’s specifications by having the proper tools, equipment, training, and facility. Assured Performance and ADE will work together to deliver an accurate and efficient process to assess the participating shops’ capabilities, providing the consumer with an accurate and credible national network of competent and reliable shops to choose from in the event of a collision. ADE has been long known for its superior vehicle appraisal and valuation services, but ADE also provides a suite of services including, but not limited to: ● Detailed Collision Forensics ● On-Site and Remote Pre-Repair Inspections, ensuring the accuracy of an estimate ● In-Process Repair Monitoring en-
suring the proper processes and materials ● Post-Repair Inspections and Verifications, providing confirmation of an accurate repair ● Training and Assistance in Damage Analysis, equipping shops and adjustors with the most up-to-date information on repair specifications and techniques. ● Assessment of Required Repairs and the manufacturer’s recommended processes and materials ● Coaching/Consulting for day-to-day business operations “Assured Performance has developed a first-class program, which offers significant value and opportunities to its qualified members,” said Barrett Smith, ADE’s Founder and President. “We’re excited and proud to work with Assured Performance in helping quality repairers take advantage of the many benefits of the Certification program, including recognitions from numerous OEMs.” For more information on Assured Performance visit www.assuredperformance.net. For more information on Auto Damage Experts, visit www.AutoDamageExperts.com or e-mail: info@AutoDamageExperts.com.
32 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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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.
Northeast Associations with Chasidy Rae Sisk
ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates An alarmingly more prevalent concern in the collision repair industry is insurers’ use of camera phone photos for writing estimates. Rather than having licensed physical property damage appraisers physically inspect a vehicle after a collision, many insurance companies, including AllState, State Farm and MetLife, are asking their customers to submit camera phone pictures of the damage, and they are using these photos to write their estimates. Attorney John Parese, who acts as legal counsel for the Auto Body Association of Connecticut (ABAC), believes “the growing trend of using camera phone pictures prior to getting a repair professional involved is illegal, unethical, and most importantly, harmful to consumers.” Furthermore, Parese notes that this practice violates the CT Unfair Insurance Practices Act (CUIPA) and potentially other consumer protection laws. As such, Parese has written to the CT Insurance Department outlining his
concerns on behalf of the ABAC, in addition to writing an article for ABAC’s member newsletter which emphasizes the possible dangers of this new habit and why he believes it should be declared unlawful. In his letter to the Insurance Department, Parese highlights portions of CUIPA that define unfair insurer practices as misrepresentations of facts and compelling insureds to settle a claim for less than the value of the repair. Though the benefits for insurers to write estimates based on camera phone photos are obvious, it creates the hazard of such estimates only capturing a fraction of the actual damage and thus encompassing only a portion of the cost to restore the vehicle to its preloss condition, and this is especially dangerous when claimants pocket the check instead of paying for the repairs, a common practice that is certain to increase when consumers believe the damage is purely cosmetic. Parese’s
concern is that “many of these vehicles are not safe to be put back on the road, and the safety of a vehicle often cannot be assessed from a camera phone picture.” Because claims are being paid based on claimant-taken photos which cannot possibly depict the full extent of damages, Parese sees this practice as “a fundamental misrepresentation of policy or third-party rights and benefits... Insurers have a legal and often fiduciary responsibility to make fair and complete payments for covered losses. This system is plainly designed to save insurers money on its own labor costs (ie. less paid appraisers) and on the amount it ultimately pays on claims (ie. calculated underpayment of claims). These savings come at the expense of consumer safety and complete reimbursement.” In his article for ABAC’s newsletter, Parese argues that using camera phone pictures to write an estimate be-
fore involving a repair professional in the process appears unethical and illegal based on CT’s unfair insurance practices law. In addition to safety and legal concerns, Parese also acknowledges that collision repair facilities suffer from this practice because they are losing work on these needed repairs that insurers are arbitrarily dismissing through the practice of writing estimates based on photos which can only capture cosmetic damages. Parese hopes that the issues he has raised will convince the CT Insurance Department to prohibit insurers from engaging in this unethical practice in his state. Unfortunately, his battle only encompasses the state of CT, and though he is unfamiliar with the laws in other states, he encourages trade associations across the country to investigate how this trend violates their state laws and to join the battle to protect consumers and the integrity of the collision repair industry.
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Getting Powered Up at the 2014 WIN Annual Educational Conference by Alicia Basteri, Online Editor
past year, the 2014 WIN Conference sponsors, as well as committee chairs,
Day 1: Monday, May 5th The meeting kicked off on an uncharacteristically blustery day (for San Diego, anyway). I received another warm welcome at the registration desk, and was super stoked to unwrap a stylish black pashmina from my welcome packet—it certainly came in handy! As I walked into the conference room and looked around for a seat, I paused and smiled as I realized that it was a room full of women (well, there were a few men). I settled in next to friendly faces as the emcee, Michelle Sullivan, welcomed a record number of 178 conference attendees.
The scavenger hunt was designed to meet attendees from different generations
As a newbie to the collision repair industry, I was one of the 65 new Women’s Industry Network (WIN) members attending their first WIN Annual Education Conference, which was held May 5–8, 2014, at the Paradise Point Resort & Spa in San Diego, CA. I wasn’t sure exactly what to expect—and was more than pleasantly surprised! Even before arriving, after joining WIN and registering for the conference, I received a personal email from a WIN member warmly welcoming me to WIN and offering assistance with any conference questions. This was to set the tone for my experience.
Recipients of the 2014 WIN Cornerstone Award, Denise Caspersen and Ruth Weniger
“When I think about why I get so excited about WIN, for me it is all about camaraderie—camaraderie is the spirit of WIN.” Sullivan then introduced the theme of the conference by inviting attendees to “Power Up!” Next, 2013-2014 WIN Board of Directors chairwoman Margaret Knell recognized WIN achievements over the
ple: Four Kinds of People Who Can Change Your Life,” tapped into the
co-chairs, and other members. In addition, she presented Denise Caspersen and Ruth Weniger with the 2014 WIN Cornerstone Award, which is awarded to individuals on the WIN Board of Directors who exemplify the values and vision of WIN. Laurie Cusic, senior facilitator for Brody Professional Development, then presented “Bridging the Generational Gap,” which addressed the need to understand generational differences in a workplace with four distinct generations—traditionalists, baby boomers, generation Xers, and millennials (or generation Yers)—and attendees participated in a related networking event. My overall first impression was that there was great energy in the room, and, unlike a lot of other conferences, everyone seemed genuinely excited— and “powered up”—to be there, friendly, supportive, and proud. This feeling was solidified during the welcome dinner at Paradise Cove, where attendees mingled with old friends and new over a luau-themed menu, followed by roasting marshmallows in a bonfire to make s’mores.
Day 2: Tuesday, May 6th Attendees started day two with the annual WIN Scholarship Walk to raise funds for the WIN Scholarships. Following a continental breakfast, charismatic keynote speaker Dr. Verna Cornelia Price, CEO of The Power of People Consulting Group and author of “The Power of Peo-
34 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
ceed” by Colette Carlson), or sustainability (“The Green Revolution” by Mike LeVasseur). The day ended with the WIN Annual Membership meeting, which provided the “2014 Report to the Industry” including reports from the Communications, Membership, Finance, Scholarship, Nominating, and Governance committees. In addition, the WIN Board of Directors, new WIN Executive Committee, and WIN Scholarship winners in attendance were recognized. The evening festivities started with a cocktail reception, followed by the annual WIN Gala and Most Influential Women Ceremony. After dinner, WIN colleagues and friends recognized and introduced the honorees: Frederica Carter, president of F. Carter Events, LLC (former communications manager at AkzoNobel); Jordan Hendler, executive director of the Washington Metropolitan Auto-
WIN “Power Up!” theme with her message of “The Power of You!” Dr. Price explained that you are born with power; no one has more power than you; no one can take your power (but you can give it away); and your power multiplies when you use it. She also talked about the four types of powerful people: adders, subtractors, multipliers, and dividers. Next up, the engaging Colette Carlson, founder of “Speak Your Truth”, talked about “The Hard, Cold Truth— Working Hard Isn’t Working,” including how to communicate successes, cultivate connec- New WIN board members: (left to right) Marie Peevy, Trish Gould, Jaclyn Byers, Jessica Rob, and Nina tions, and develop strategic re- Pedrazza-Zinna lationships. After lunch, attendees went to body Association; and Leanne Jefone of three workshops about tech- feries, director of Collision Programs nology (“Mastering the Muck of for AIA Canada. And last but not least, Your Technology” by Kathi Burns), dessert was served! negotiation skills (“Truth About Negotiation: A$k and You Shall Suc- Day 3: Wednesday, May 7th After a continental breakfast, John Kett, president and CEO of Insurance Auto Auctions (IAA), presented “The Increasingly Interconnected APD System,” covering the operational and technological forecast for IAA and key information about the direction of the industry. Following the break, Jane Hylen, senior vice president of North Central Operations Enterprise Holdings, presented “Keys to Success” within the automotive industry. Tracy Holberry from SherwinKeynote speaker Dr. Verna Cornelia Price talking about
“The Power of You!”
See Getting Powered Up, Page 42
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Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More! On Thursday, May 1, the Washington Metropolitan Auto Body Association (WMABA) hosted industry speaker Mike Anderson for a full-day educational seminar on “The Encyclopedia of Estimating Practices” at the LKQ Training Center in Linthicum Heights, MD. In addition to providing a State of the Industry update, Anderson’s seminar also touched on parts procurement, the future of DRPs, cycle time and many other topics. Jordan Hendler, Executive Director of WMABA, describes the seminar: “With his usual boisterous and ‘take-me-as-I-come-orleave-me’ personality, Mike gave attendees more than they bargained for. Safety is his number one priority, and he wants every pair of ears to hear how vehicle technology is changing everything we know about collision repair processes.” Through his passionate approach, Anderson’s goal was to stress that, despite the importance of focusing on cycle time, safety is an even more pressing concern for collision repairers because the consumer is trusting their repair facility to look out for their best interests and ensure that their car is restored to its pre-loss condition properly. “A lot of people aren’t aware of what it
takes to fix a car properly. I don’t mean that disrespectfully; it’s just that the industry is changing so fast that it takes a lot to keep up on things today. You really have to spend time on training,” Anderson emphasizes. In discussing the impact that a proper repair estimate has on cycle time, Anderson explained, “when you pass on an estimate that’s really incomplete and another technician finds more damage, you’re just creating inefficiency in your process… Speed is the name of the game. It’s not just about writing an accurate blueprint to fix the car right...Even if you’re not a DRP, you have to get [better] at turning cars quicker just because there is less profit on a job and you have to turn more cars just to get to the breakeven point quicker. We really tried to focus [in the class] on just how the estimate is really the basis for getting the right part the first time and the basis for communicating properly with a customer.” Anderson discussed everything from receiving proper reimbursement from insurers to lean processes, reducing stress in the shop environment and the demands that new technology places on repairers. “We really have to
understand that with all this new technology with accident avoidance systems, lane departure systems and autonomous braking that you can’t just go through [the vehicle] like in the old days and say, ‘I’m just going to check out all the lights and door locks.’” You have to have a scan tool to actually take and check a lot of these things during an output test and [make] sure they’re working properly.” Rather than suggesting quick fixes, Anderson provides tools and methods for learning, focusing on the long-term solution of studentinitiated learning and adaptation. As part of this initiative, Anderson provided attendees with a list of websites where they can acquire this type of necessary knowledge: www.DEGweb.org, www.CollisionAdvice.com, www.EstimateScrubber.com, www.PartsVoice.com, and www.Estify.com.
Anderson was pleased with participants’ responses to his seminar: “Everybody was interactive and had lots of great questions. One of things I found really refreshing was there were a lot of young people in the class, particularly young females. It’s really nice to see more and more women represented in the industry. It’s always nice to see young people. With what we do with regards to computers and technology, young people are more open to [this industry].” As a recurring speaker at WMABA meetings, Anderson praises the association and explains why he is always willing to visit the East Coast to teach the association’s members. “I get the privilege of working with a lot of different trade associations across the country, and I don’t think a lot of people realize what they have in Jordan Hendler as executive director. She is truly one of the most passionate people you can ever meet in the industry.”
LKQ’s 2014 GetGreen Promotion Winners Announced The 2014 LKQ Get Green promotion started in February 2014, and ended April 17, 2014. The nationwide promotion offered thousands of instantwin prizes along with a sweepstakes promotion for a chance to win a 2014 Honda Accord. Overall, there was one grand prize winner, five first place winners, two second place winners, five third place winners, and thousands of instant-prize winners. The grand prize winner is John Avila, owner of John's Auto Center in Corpus Christi, TX. Avila will receive the 2014 Green Car of the Year, a Honda Accord. “I have been a customer with LKQ for many years, beginning in the Greenleaf days,” says Avila. “I feel unbelievable and overwhelmed that I won a car. Something you think will never happen, then it happens to you, I feel thankful and blessed,” stated Avila. John's Auto Center participated in the LKQ Get Green promotion
through LKQ Central Texas located in New Braunfels, TX. The 17-acre location services the Austin, San Antonio, McAllen, and Corpus Christi markets with quality recycled auto parts. “John's Auto Center has been a valuable customer of ours for over eight years. They have been using the same sales representative for those eight years, and John the owner is a great long-term shop owner and very deserving of this grand prize,” stated Tchad Taormina, LKQ Central Texas plant manager. The first place winners each will receive Raleigh bicycles, the second place winners each will receive a $200 LKQ gift card, and the third place winners each will receive a solar backpack. The instant-win prizes included 10,000 trees being planted through the Arbor Day Foundation, digital music downloads, limited edition LKQ Get Green t-shirts, LKQ gift cards, and iPads.
36 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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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.
AASP-MO Hosts March and April Collision Meetings with Chasidy Rae Sisk
As usual, AASP-MO has been busy hosting meetings for their various chapters in recent months. They held four meetings in March, plus another meeting occurred in April. Executive Director Ron Reiling believes the meetings went well. “We had a nice turnout, and everyone left the meetings with great information to help them make sound business decisions... Both Enterprise and PMC Logic brought great information to our members. They provided them with the information and tools to help them improve their businesses and to aid them in becoming more efficient.” On March 12, Gateway Collision hosted a meeting at Syberg’s, located at 270 and Dorset. This chapter usually meets bi-monthly on the second Wednesday of the month. Their meeting was sponsored by Enterprise RentA-Car who also presented, and it included a roundtable discussion on various industry-related issues. They
followed this up with an additional meeting on Thursday, March 13 at 6:30PM where PMC Logic presented on their Paint and Materials Calculator. Hosted by Dave and Adam Tritz, this meeting was held at Don’s Auto Body, located at 1420 North Second Street, St. Charles MO 63301. Also on March 12, the Illinois Metro Chapter held a meeting at 6:30PM where PMC Logic presented. The meeting was hosted by Russ Hoernis and held at Hoernis Auto Body at 207 S. 20th Street, Bellville IL 62226. This group meets on the second Tuesday of every other month. The Southeast Missouri Mechanical Chapter meets on the fourth Thursday of each month at the Cape Girardeau Career and Technology Center, and their most recent meeting was held on March 27. On April 16, the St. Louis and St. Charles Mechanical Chapters met at Syberg’s at 6:30PM to present “What Do You Do For...”, a discussion to share
information on how members deal with various employee-related questions, such as healthcare and uniforms. These chapters are planning a visit to Hunter Engineering on July 16 to obtain an update on the latest advancements in alignment and to tour the antique car museum. This group meets quarterly, on the third Wednesday of the month. Reiling explains the benefits of holding meetings for AASP-MO members: “our meetings provide our members with the opportunity to network with like-minded professionals and provide them information they need and use in their businesses. The networking opportunities are great. The ability to know that you are not out there all alone, that you have peers who face the same problems as you do on a daily basis. It is important to provide our members with as much information as possible pertaining to the collision industry and small businesses. Better informed shops make
better business decisions that make our industry better, stronger and more unified. No one shop knows as much as all of them working together!” AASP-Missouri www.aasp-mo.org PO Bx 609 St. Charles, MO 63302
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry On Wednesday, April 30 and Thursday, May 1, the National Auto Body Council (NABC) held several meetings at I-CAR’s Corporate Offices in Hoffman Estates, IL. Their Strategy Session was held at 8AM on Wednesday, and on Thursday, their 8AM Committee Meeting preceded their 10AM Board Meeting. This series of meetings was scheduled as part of the NABC’s ongoing efforts to build on their three-year strategic plan to continually enhance initiatives that present a positive image of the collision repair industry in local communities. Nick Notte, NABC Board President, explains “as an organization, we continually review and consider ways we can reach more collision repairers who could benefit from the commu-
nity initiatives we have developed. One of our goals is to partner and develop a synergy with other industry groups which collectively benefits all of us in the collision industry.” As such, key topics at these meetings included finding ways to increase collaboration with other industry organizations and to reach a broader audience of collision repair professionals through the use of targeted industry segmentation data. NABC’s efforts to collaborate with other industry organizations can be seen in the upcoming Collision Industry Breakfast which will be held at the Skills USA competition in Kansas City in June; the breakfast is being jointly sponsored by the NABC, the Collision Repair Education Foundation (CREF) and I-
CAR. In regards to their second effort discussed at the meetings, the NABC hopes to utilize industry segmentation data to ensure the organization is reaching the broadest possible audience of collision repairers with a focus on all classes of facilities, including everything from small independent shops to larger multi-shop operations. The NABC has also engaged in a concerted effort to develop ways by which to further define and enhance the value propositions provided to their members. Notte notes, “since January, we have had a record number of new members join the NABC as well as many who have renewed their commitment.” Recycled Rides also continues to
be one of the NABC’s main initiatives, and they plan to hold presentations about this and other core efforts at upcoming industry events, including June’s Skills USA as well as in July when they attend NACE in Detroit. Notte says, “NABC’s signature initiative, Recycled Rides, has gained significant traction in communities nationwide, and we are enthusiastic about our goal to donate 300 vehicles this year. We are energized and want to capitalize on this positive, collaborative momentum in our mission to promote a positive image of our collision industry.”
Continued from Cover
seven years. Requires the DHSMV (or its contractor) to prepare for development of an optional digital proof of driver license in a format that allows law enforcement to verify the authenticity of the digital proof. Reduces the mandatory period of revocation or suspension of a driver license from two years to one for persons convicted of certain drug offenses, and requires a court to make a determination as to whether a restricted license would be appropriate for such persons. Requires the driver licenses and identification cards of individuals designated as sexual predators to include to the marking “SEXUAL PREDATOR.” Provides for a clerk to remove a habitual traffic offender designation if the offender meets certain conditions. Authorizes the DHSMV to issue a driver license to an applicant whose driving privilege is suspended or revoked in another state for an offense that would not have been grounds for suspension or revocation in this state. Authorizes a court that withholds issuance of, or suspends or revokes, the driver license of a person convicted of certain offenses relating to providing alcohol to minors, or suspends the driver license for an offense relating to theft, to direct the DHSMV to issue the person a license for business purposes only, if the
person is otherwise qualified. Makes the suspension or revocation of a driver license of a person
being prosecuted for passing a worthless check discretionary under certain conditions.
Amendments to 7005
Appropriations Subcommittee on Transportation, Tourism, and Economic Development; and Appropriations. “While the language would have helped stop glass harvesting, it would have crushed small businesses so we will withdraw it whenever it comes up on the calendar again,” Ramos explains. “We heard from a few independent glass company owners about the changes, as well as a few trial lawyers.”
The Rest of the Bill HB 7005 revises a number of transportation-related provisions. Most, but not all of the revisions, affect functions or programs under the jurisdiction of the Department of Highway Safety and Motor Vehicles (DHSMV). Some affect functions or programs under the jurisdiction of the Department of Transportation (FDOT). The bill: Provides additional circumstances under which a person may avoid driver license suspension for failure to pay child support. Prohibits the DHSMV from accepting the resubmission of a driver license suspension that has remained on the DHSMV’s records for the required
38 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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BASF Recognizes 5 Shops as Shops of the Year
BASF Automotive Refinish recently recognized five collision repair shops as 2013 Performance Group Shops of the Year at its VisionPLUS Business Solutions Performance Group Conference in Clearwater, FL. Collision repair shops that utilize BASF’s VisionPLUS Business Solutions, and participate in the program’s Performance Group meetings, were eligible for the award. The 2013 winning shops are: ● Auto Body Specialties, Springfield, OR, Byron Davis, Owner. ● Crystal Lake Automotive, Lakeville, MN, Jim Siegfried and Karl Drotning, Owners. ● Frank’s Autobody Collision Solutions Network, Vernon, British Columbia, Canada, Matt Brunelle, Jesse Brunelle, Dave Brunelle and Rene Brunelle, Owners. ● LaMettry’s Collision, Richfield, MN, Joanne LaMettry, Owner. ● Center Square Motors, Blue Bell, PA, Chuck Dietch, Owner. The five winners were selected based on criteria including sales improvement; overall gross profit improvement; Vision PLUS Performance Group meeting attendance; and meeting participation and contributions.
Automotive Aftermarket is Expected to Grow 3.4% PY
The U.S. automotive aftermarket is expected to grow on a compound annual growth rate (CAGR) of 3.4 percent until 2017, according to the “2014 Joint Channel Forecast Model” produced by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. The model predicts that the total aftermarket sales will grow from $238.4 billion in 2013 to $273.4 billion in 2017, an increase of $35 billion over four years. “The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, Auto Care Association president and CEO. “Why? The average age of vehicles is 11.4 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.” Said Bill Long, AASA president and COO, “The forecast model anticipates that growth in population, employment and income will lead to an increase in miles driven and the number of vehicles on the road resulting in long-term aftermarket growth.”
Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website Auto body parts are now under new terms of sale at the Auto Pros USA website. All import and domestic parts shippable are receiving new sticker prices for purchasers. Discounts for select types of auto parts can be hard for consumers to locate due to the increase of freight costs for automobile parts shipments. The Auto Pros USA company is now providing a discount for all used auto body parts available for sale at http://autoprosusa.com. The entire inventory of American and imported models of parts that are available for public sale this year has been lowered in retail price. New contracts with agencies offering better prices has helped to configure the current discounts that are found when shopping on the company homepage in 2014. “The vehicle body parts that are offered are in preowned and in aftermarket condition to provide easy selection options for parts purchasers,” an Auto Pros source said. The automobile replacement parts for sale that are marketed on the Auto Pros website to consumers now feature a new phase of warranty coverage. The extension of warranty periods now included for most parts
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The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!
sales is already calculated in the quoted prices. “American and foreign automaker brands can be found using our search location tool on our homepage to discover all components discounts in place,” confirmed the source. The Auto Pros USA company website now provides consumers with the updated toll-free phone line used to support customers not shopping through the homepage this year. The number at 1-888-230-1731 is now in place for consumers to use for locating company supplied parts. The AutoProsUSA.com company provides discounts for vehicle parts and accessories that can be purchased through its Internet portal. This company has launched a database available to consumers with hundreds of suppliers currently quoting prices before purchase. The AutoProsUSA.com company has a staff of experts contributing to the customer support now available daily. The automotive partners that are found through the company website change periodically as different distributors are included in the North American network.
Performance Subaru
Chapel Hill (888) 377-1664 (919) 942-3191 (919) 932-2574 Fax Mon.-Thu. 7-7; Fri. 7-6; Sat. 8-5 performanceparts@hendrickauto.com www.hendrickauto.com
TENNESSEE
Kelly Subaru
Chattanooga (423) 490-0181 (423) 385-7269 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 parts@kellycars.com www.kellycars.com
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 39
Mitchell Releases Second Quarter 2014 Industry Trends Report
Mitchell has announced the availability of its Industry Trends Report (ITR) for the second quarter of 2014. Mitchell combines its own data with guest contributions from Enterprise Rent-A-Car and J.D. Power & Associates, to offer industry data points and analyses, along with expert market insight, to P&C insurers, bill reviewers, payers and auto body repair shops. The Industry Trends Report (ITR) is delivered in two editions to address timely concerns for the auto physical damage and casualty industries.
The Auto Physical Damage edition Using Mitchell’s repairable collision severity data in conjunction with information from the Property Casualty Insurers Association of America (PCI), Greg Horn, Vice President of Industry Relations at Mitchell, analyzes the impact a brutal winter can have on collision frequency and severity. “By looking at the national frequency numbers over the last three winters, we concluded that in general, winter storms are leading to higher repairable costs and more total losses than they had in the recent past,” said Horn. “As an insurer or collision repairer, it’s imperative to prepare for these trends next winter, especially in the fourth
quarter when your ability to handle workloads is already stressed by the holidays and staff vacations.” Enterprise Rent-A-Car contributes to the ITR with its own article including factors impacting the ‘length of rental’ from the first quarter of 2013 to the first quarter of 2014 in both the U.S. and Canada. Factors analyzed include weather, economy, repair shop conditions and processes and parts availability. In the U.S., the Northeast led the country with the highest length of rental at 13 days with winter storms severely impacting mild winter states, while Canada’s rental length remained high but consistent as the majority of the country dealt with severe ice and snow during the winter season. Readers will also find data concerning the most common and costly car repairs over the past five years, ranging from catalytic converters to front and rear bumpers. J.D. Power & Associates supplements these facts with actual cash value trends of used cars. Mitchell also offers a webinar, Industry Trends Live, on the Auto Physical Damage edition of the report. Greg Horn will provide a deeper look into the trends, information and studies highlighted in this quarter’s ITR on
NSF Certifies 500 Sheet Metal Parts Made by Gordon
NSF International has certified 500 different sheet metal hoods and fenders from Gordon Auto Body Parts Co., Ltd. via the NSF Automotive Collision Replacement Parts Certification Program. The NSF certification of 500 unique sheet metal parts includes more than 700 different models from all major auto companies. NSF certified parts now cover more than 20,000 vehicle applications and represent a significant increase in the number of sheet metal certified parts available in the market. This 500 parts certification complements Gordon’s already certified steel bumpers and bumper brackets. To earn certification, Gordon automotive parts were independently reviewed and tested against OE service parts and all hoods and fenders were fitted to vehicles to ensure proper fit. NSF International also regularly audits Gordon’s OE-ready manufacturing facilities and quality systems to ensure that they meet or exceed each of NSF’s stringent requirements. “Achieving this important certification from NSF International is essential as it underscores the quality and integrity of our automotive parts in terms of fit, form and function. We look forward to certifying more auto parts in the near future,” said Richard Wang, Gordon Auto Body Parts Co.
Executive Assistant to President. “This NSF certification occurs in conjunction with the increase in Gordon’s sheet metal parts inventory so we are prepared to offer these NSF certified parts to ensure inventory levels can meet the anticipated growth in demand.” “Earning NSF certification underscores Gordon’s commitment to ensuring that high-quality collision replacement parts are available so body repairers, insurers and distributors can make more quality repairs using NSF certified hoods, fenders, steel bumpers and bumper brackets,” said Bob Frayer, Director of NSF International’s Automotive Collision Certification Programs. In addition to sheet metal components, the NSF Automotive Collision Replacement Parts Certification Program tests and certifies lamps, bumper fascias, reinforcing beams (rebars), step bumpers, plastic components and absorbers. NSF also offers automotive collision parts distributor certification, which requires distributors to have quality management systems in place that address traceability, service and quality issues. This includes having an effective records system, inventory systems to track orders and parts through the supply chain, and an ISO 9001-certified quality management system.
40 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Wednesday, May 7. To sign up for webinar, visit http://go.mitchell.com/register.
The Casualty edition The latest casualty edition focuses heavily on the use of technology and analytics. “Analytics: Present and Future Applications,” written by Ed Olsen, senior business process consultant at Mitchell, focuses on the use of analytics to streamline claims processes for P&C professionals by developing benchmarks, establishing plans of action, detecting fraud and optimizing workflows. “If done right, analytics greatly improves customer satisfaction by allowing prompt resolution of legitimate claims while improving claim outcomes by assigning the best resource to handle a claim,” said Olsen. “That’s revolutionary for our industry.” Addressing a cutting edge topic in the world of analytics, the ITR and the accompanying Technology Impact article highlights the ways predictive analytics technology can be used to enhance the decision-making process within an organization. In line with previous Mitchell trend reports, this Q2 Edition includes an updated Medical Price Index, along
with recent state regulatory changes. According to the data, both evaluation and management and major radiology services showed double-digit price growth over the past year. First published in April 2001, Mitchell’s ITR now reaches more than 33,000 collision and casualty industry professionals and provides meaningful visibility into data-driven trends in the P&C market. The complete report is available at www.mitchell.com/industry-trends-report. For further collision repair and property casualty industry updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.
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AMI Taking Applications for $1,000 High-Octane Award
ABRA Acquires 24 Collision Centers of America Locations
ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced the purchase of all 24 Collision Centers of America repair centers in Chicago, Illinois, the surrounding communities, and Northwest Indiana. Terms of the deal were not disclosed. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and top-quality workmanship they have enjoyed with us over the years.” ABRA is one of the largest and fastest growing multi shop repair operators in the country. Today’s transaction boosts its nationwide portfolio to 218 collision repair centers in 17 states. “ABRA is one of the most iconic brands in the collision repair industry,” said David Mulder Sr., founder and president of Collision Centers of America. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and topquality workmanship they have enjoyed with us over the years.”
The Automotive Management Institute (AMI) is accepting applications for the $1,000 Arrowhead Specialty Markets "High Octane" Scholarship. The scholarship, which is awarded to an Automotive Service Association (ASA) Mechanical Division member who strives to be, or is presently working in a management capacity. The scholarship will be applied toward the recipient's expenses to attend the 2014 Congress of Automotive Repair and Service (CARS) in Detroit, July 31–Aug. 2. CARS is sponsored by ASA and offers an educational lineup of AMI seminars, technical training courses and industry sessions, an exposition and the opportunity to network with other automotive service professionals. To be eligible, applicants must work in the mechanical repair industry; must demonstrate an interest in self-improvement through education and training; must own or work for a business that is an ASA member in good standing; and, if the applicant is not the business owner, must be recommended by the owner. To request a scholarship application, call AMI at (800) 272-7467, ext. 101.
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Bloomberg reports Esurance to Take on Advertising Giants
Solera Buys Pittsburgh Glass Works’ Insurance Business
Advance Auto Profit Up 21%, Acquisition Boosts Sales
SCRS Member’s E-Catalog
Allstate Corp., the largest publicly traded home and auto insurer, hired Alan Gellman from Wells Fargo & Co. to oversee marketing at its Esurance unit. Gellman will be chief marketing officer, reporting to Esurance Chief Executive Officer Gary Tolman in San Francisco. He held marketing roles for the past 10 years at Wells Fargo, the auto insurer said. Allstate has ramped up advertising spending to win customers from big spending rivals such as GEICO and Progressive Corp.
Auto parts retailer Advance Auto Parts Inc reported a 21 percent rise in quarterly profit, helped by the acquisition of the biggest operator of the Carquest chain of auto repair shops and car parts stores. Advance Auto completed the acquisition of General Parts International Inc in January, making the company the largest auto parts retailer by sales in the United States. Advance Auto's net income as reported rose to $147.7 million in the first quarter ended April 19 from $121.8 million a year earlier.
Solera Holdings Inc. says it is buying the insurance and services division of private equity-owned Pittsburgh Glass Works LLC for $280 million, expanding the Texas-based insurance software company's business to include automobile repair and claims management services. Solera's acquisition of the insurance division, which is expected to close by the end of June, will be paid for entirely with cash, the company said. Pittsburgh Glass Works is owned by NY-based private equity firm Kohlberg & Co. LLC. The Society of Collision Repair Specialists (SCRS) Member Services E-Catalog was created to help SCRS members do business with other members. If you are a repair facility, share it with your friends and colleagues; if you are with an association, pass it along to your membership. If you are a corporate or company member, share it with your customer base or post to your social media account. View the catalog at: http://scrs.com/index.php?id=ecatalog.
AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution AudaExplore(TM), a leading datadriven solution provider to insurance carriers, repairers, dealerships and fleet owners, today announced the launch of MSO Pro(TM), a cloudbased enterprise body shop management (BMS) solution that delivers unmatched capability to manage multiple repair locations and business functions through one experience. Featuring enterprise-level functionality with a dashboard-driven design, MSO Pro is based upon proven technology, which has already processed tens of thousands of repair orders, and millions of dollars in collision repair revenue. The solution is an open architecture design that integrates with estimating platforms from AudaExplore or other technology providers to deliver unique customer moments and increase repairer productivity through the following: ● Predictability: Repairers can make better, more informed decisions that impact customer satisfaction and profitability outcomes through customer satisfaction reporting, predictive production load scheduling and standardizing process across multiple repair locations.
● Scalability: No matter the size or number of locations, from a single shop looking to grow into an MSO to organizations opening their 100th location, the platform combines robust performance analytics and reporting with applications for all business functions including: HR, Sales, Customer Relationship Management and Operations. ● Efficiency: Reducing complex IT integration across business functions and locations with its stable cloud-based accessibility via single sign-on, self-service management of administrator permissions and thorough user adoption training and support. “We’re excited to bring to market a proven and comprehensive enterprise solution--the first of its kind designed for MSOs,” said Gordon Henderson, VP of Collision Repair Solutions, AudaExplore. “MSO Pro breaks new ground in collision repair operations, filling a void in which many MSOs have chosen to either build their own homegrown systems, or deal with the limitations of singleshop or low-volume solutions that require ongoing add-ons to support their multi-shop businesses.”
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 41
Continued from Page 34
Ohio Leads the Nation in Metal Thefts
Getting Powered Up
Williams presented the 2014 Scholarship recipients in attendance, Stephanie Baker and Suzanna Hernandez, with a certificate for tuition and travel-related expenses paid in full for any automotive training course at a Sherwin Williams Training Center of their choice.
2014 WIN Most Influential Women honorees Leanne Jefferies, Jordan Hendler, and Frederica Carter
Margaret Knell closed the conference with a summary of the events and officially passed the torch to Denise Caspersen, newly-elected chairwoman of the WIN Board of Directors. If you’re a woman in the collision repair industry, I highly recommend
WIN Scholarship winners with WIN Committee co-chairs: (left to right) Suzanna Hernandez, Teresa Bolton, Stephanie Baker, and Bev Rook-Twibell
that you join WIN (visit http://thewomensindustrynetwork.ning.com/pa ge/join-win-1 or email Mary Kunz at MarySKunz@gmail.com) and attend the 2015 WIN Annual Education Conference. If you’re already a WIN member, WIN asks that you please consider joining a committee as WIN is entirely volunteer-based. Sign in to http://thewomensindustrynetwork.ni ng.com/page/join-a-committee and click on the Committee description to find full descriptions and contact information. If you missed the 2014 conference but will be attending the 2014 NACE/CARS Expo and Conference, stop by the WIN booth.
Car-O-Liner Offers Free Value-Added Design Planning
Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, offers WorkShop facility design planning for Car-O-Liner equipment placement as a free value-added service through local authorized Car-O-Liner Distributors. Through this service, shops address challenges posed by limited space or awkward building layouts by designing a concept for how Car-O-Liner equipment will best fit to optimize work flow, thereby providing confidence that their equipment investment will maximize both technician productivity and shop profitability.
After consulting on the objectives of the facility, the Car-O-Liner Distributor will work with shop operators and their architects to plan and visualize the most effective layout
from a top view in 2D. The unique footprint of the building is accurately represented to include structural attributes such as garage bay openings as well as doors, windows, lighting,
and more. Equipment can be rotated and moved, in real time, to determine optimal placement with consideration for vehicle flow restrictions, safety, and other requirements of the space. At any time, the design can be viewed in 3D from any angle with the ability to save and print high-resolution drawings and specifications. In addition to 3D renderings, a detailed report of the Car-O-Liner equipment specifications selected for the layout can be printed to quickly and easily make the design a reality. To learn more about how a WorkShop facility design plan can improve your efficiency, contact your local Car-O-Liner Distributor, visit www.car-o-liner.com, or call toll free (844) 833-9419.
42 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Ohio continues to lead the nation in metal thefts, with 1,446 insurance claims made last year, according to a new report. A National Insurance Crime Bureau report released Wednesday said the state reported more than 4,000 claims from 2011 through 2013 from homes and businesses, nearly all copper thefts. That’s about a third more claims than second-place Texas and about 40 percent more than third-place California, according to The Columbus Dispatch. The 1,446 claims last year in Ohio is about flat with the number in 2012 and up from 1,232 in 2011. Thieves have stripped sheets of metal from rooftops, stolen decorations from cemeteries, ripped apart air conditioners for the copper coils and stripped homes of wiring and piping, then sold the pieces for scrap. Mary Bonelli, spokeswoman for the Ohio Insurance Institute, says it’s hard to say why the state leads in this category, but she speculates that law enforcement agencies here may do a better job of tracking such thefts. “I don’t think there is a oneor two-sentence answer,” said Frank Scafidi, a crime bureau spokesman.
Four CARSTAR Shops Were Recognized by Mitchell
This spring, four CARSTAR Auto Body Repair Experts stores were recognized by Mitchell, as recipients of the 2013 AutocheX™ Solution Premier Achiever Awards. “Repair shops are making a commitment to their customers on a daily basis,” said Jim O’Leary, Vice President of Mitchell Repair Solutions. “It’s important for Mitchell to recognize these efforts and honor those teams that have gone above and beyond to deliver some of the industry’s best service.” The 12th annual Premier Achiever Awards honor collision repair shops that consistently achieve the highest customer satisfaction scores as measured by the AutocheX solution, either independently or as part of an insurance-sponsored repair program. The CARSTAR shops honored this year were: ● Walt’s Autobody CARSTAR – Topeka, KS ● ABC CARSTAR Body & Frame – Prescott, AZ ● Superior Auto Body CARSTAR – Pinellas Park, FL ● Autobody Resurrection CARSTAR – Lakeland, FL
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Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150
According to Ford, 850 Ford dealerFord sold 763,402 F-series trucks When aluminum is bent or bro- more than 3,000 dealerships have ships have enrolled technicians in in 2013. It doesn’t report sales of the ken, it behaves differently than steel. body shops; the rest outsource the training courses to learn how to do F-150 separately from the rest of the F Aluminum does not have the “metal work to other dealerships or to indecollision repairsthe on industry. the 2015 alu- series, but Ford production statistics memory” to resume its original shape, pendent collision repair shops. Ford matters affecting Want to Contribute to this Southwest Edition? said it has enrolled about 420 indeminum F-150 pickup. Ford said the show that 69 percent of all F-series as steel does. number exceeds its goal of having 750 production was F-150 in 2013. Ford strongly recommends col- pendent shops and hopes to enroll 750 dealerships enrolled in the courses by 2-part course lision shops set up separate areas by year end. the end of 2014. The I-CAR training course will for working on aluminum because Technicians aren’t the only ones utobodynews.com The training courses will be be divided into twopublisher@autobodynews.com segments. The of steel-aluminum contamination is- who need a better understanding of taught by instructors from I-CAR. first teaches general aluminum repair sues. Galvanic corrosion, similar to the aluminum repair process: InsurJason Bartanen, I-CAR director of techniques, including aluminum weld- rust, can occur when the metals ance adjusters do, too. industry technical relations, calls it ing and the operation of rivet guns. touch each other. Combustion can Said Bartanen: “This training one of the biggest technical training The second concentrates particular occur when the two metals will with be open to the insurance industry Promote on your businessalso with Promote your business programs of its kind ever. So far, I- design elements of the 2015 F-150 it- mix. so insurance adjusters will know what an exclusive article featuring exclusive article featuring CAR has scheduled about 700 classes self. Among thean training requirements to do and can write more accurate in locations around the country. DealFord has offered to pay the or costservices. will be a weld test in which technidamage assessments.” your products your products or services. advertise ership training To begins this month. of one technician per dealership for cians will be asked to perform six I-CAR and Ford experts also will y callindependent Joe Momber at: the training course, which takes about welds from two positions. I-CAR offer lectures and demonstrations on Training for collision ry shops and insurance estimators begins two days and costs about $1,000. welding experts will travel to dealer- repairing the new F-150 at the Inter800-699-8251 in June. Dealerships that want to have more ships and repair shops to be sure that national Autobody Congress & Expoe-mail: “Because of the magnitude and than one trained technician will pay they have acquired the proper alu- sition (NACE) July 30-Aug. 2 in CALL: JoetoMomber Call for jmomber@autobodynews.com of this vehicle, I think we’re the additional expense send extrafor details! minum-handling equipment and details! that Detroit. 51 volume going to see a fantastic response to technicians. it is installed properly, Bartanen said. The 2015 F-150 is scheduled to www.autobodynews.com this course,” he said. To work on 800-699-8251 aluminum, Ford Independent shops 800-699-8251 arrive in dealerships in the fourth Ford’s shift from steel to alu- recommends that dealerships with Roughly 20 percent of Ford’s quarter. n. minum on its biggest-selling vehicle body shops and independent repair is an enormous industrial undertaking shops buy new tools, including speand affects everyone from the factory cialized rivet guns, MIG (metal inert floor to the collision repair shop. FordEmail gas) welders and specialized vacuum Register Your for Our Register Your Email for Our wants to be sure collision repair spe- systems. Ford has estimated dealercialists know what they’re doing the ships can buy the equipment they first time a damaged aluminum need to get started for $30,000 to pickup rolls into a shop. $50,000.
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BMW Joint Venture to Triple Carbon Fiber Plant Capacity
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BMW Group’s joint venture with SGL Group will spend $200 million to triple the capacity of its carbon fiber products plant in Moses Lake, WA. The factory will become the world’s largest producer of carbon fiber, with an annual output of 9,000 tons by 2015 when the expansion is completed. The plant provides carbon fiber reinforced plastics for BMW’s family of i electric and plugin hybrid cars—the i3 electric compact car and the i8 plug-in hybrid sports car. The i3 has just been released in the US and the i8 is to launch in August. The carbon fiber has been used to produce 5,000 i3 cars at BMW’s factory in Leipzig, Germany, which has a daily output of 100 vehicles. With the expansion, BMW said it will be able to use the carbon fiber for other models “at competitive costs and in large quantities.” The redesigned 7-series flagship sedan due in two years is expected to make extensive use of carbon fiber. The joint venture, SGL Automotive Carbon Fibers, is 49 percent owned by BMW. The partners have spent $100 million on the plant, which has 80 employees. The expansion will create 120 additional jobs.
US Government Says It Lost $11.2 billion on GM bailout
The U.S. government lost $11.2 billion on its bailout of General Motors, more than the $10.3 billion Treasury estimated when it sold its remaining GM shares in December. The $11.2 billion loss includes a write-off in March of the government's remaining $826 million investment in "old" GM. The U.S. government spent about $50 billion to bail out GM. During the company's 2009 bankruptcy, the government's investment was converted to a 61% equity stake in the automaker, plus preferred shares and a loan. The US bailout of GM and Chrysler saved 1.5 million jobs in the United States, according to the Center for Automotive Research in Ann Arbor, MI. GM just posted its 17th consecutive profitable quarter. Earnings, however, were hurt by a $1.3 billion charge for the costs of various recalls, including for faulty ignition switches on 2.6 million cars. GM is under investigation by the Justice Department, U.S. auto safety regulators and Congress over its failure to detect the faulty ignition switch for over a decade. The U.S. Securities and Exchange Commission is also investigating GM.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 43
Update on IN Shops’ Accusations of Insurers’ Collusion Collision repairers from six states are pursuing legal action against insurers for alleged antitrust violations, collusion by making deals with preferred body shops to reduce labor costs, and interfering with body shops’ business by dictating how they do repairs. There are also allegations that shops are being forced to use substandard repair parts. The body shops are seeking damages from the suits that could amount to damages in the billions. See Autobody News May edition for more details. In the federal lawsuit, 14 Indiana shops and others have accused State Farm Insurance and competitors of extracting “unreasonable and onerous” concessions on vehicle repair costs. When a shop doesn’t comply with price ceilings, the insurers dissuade policyholders from choosing that shop for repairs by telling them it has quality issues or gets lots of complaints, the shops allege in the suit filed April 2. The 34-page suit alleges insurers have violated the federal Sherman Act, both in price-fixing and through boycotting tactics. Insurance company dictates are “placing the driving public at harm,” says the lawsuit. (Other defendants include Allstate, American Family, Auto-Owners, Erie Insurance, Indiana Farmers Mutual, Liberty Mutual, Nationwide, Shelter General and Zurich American.) Pat Johnson, a Martinsville, IN, shop owner of Brothers Body & Paint next to IN 39, was cut from State Farm’s Select Service Program last November, unable to live with the its requirement that he buy vehicle parts through the online PartsTrader site instead of using his own longtime suppliers. Now Johnson says he is feeling the pain of losing business from State Farm. Revenue at Brothers Body & Paint has fallen by $100,000 so far this year from his former $2 million annual gross on repairing about 60 vehicles a month. Johnson has said he may need to cut his 12-person staff, but he’s adamant about not letting State Farm dictate his parts-buying. “They’re a force to be reckoned with. You don’t want to argue with them. But sometimes you have to stand your ground,” he said. “They trusted me for 20 years, and now I’m nothing,” Johnson said of State Farm. Johnson has repaired cars in Martinsville since 1982, said
insurers are continually expanding their lists of work they won’t fully pay for. That included no longer paying full cost for installing corrosion protection inside a bumper and doing fine sanding on body panel paint jobs, he said. “They don’t tell you not to (perform certain routine repair tasks),” Johnson said. “They just don’t pay for it. If they went to Wal-Mart, they’d pick up 10 things and they’d pay for six. That’s the way they operate,” said Johnson, who has joined the Indiana lawsuit against the insurance companies. When insurers don’t cover the full cost of repairs, “it’s such a difficult thing to pass on to a customer,” said Kevin Wells, who operates Quality Collision Inc. in Bloomington and is a plaintiff in the suit. Wells said he often just eats the cost the insurance company won’t pay. “I’m taking it in the shorts by about $6 an hour for every job I do,” Wells said. Johnson said he’d be happy if insurance companies dropped their approved-shop lists and repair mandates and paid for claims without dictating through reimbursements how body shops like his should do their job. “I don’t tell them how to sell insurance,” he said. “All I want to do is fix cars.”
Surveys Also Point of Contention Body shops say State Farm conducts surveys of the going labor rate shops charge in a given area. The data and methodology are not disclosed, shops complain. “Shops are simply required to blindly accept State Farm’s pronouncements regarding these matters.” The insurer attempts to prohibit shops from discussing the labor rates they provide as part of the surveys, “asserting any discussion may constitute illegal price fixing.” Shops that complain the labor rate is inadequate are often told they are the only body shop in the area to say so and that they don’t conform to the “market rate.” In fact, “State Farm knew multiple shops had attempted to raise their labor rates and advised State Farm of such,” the suit alleges. The shops allege insurers have failed to abide by industry standards for auto repairs and repair-estimating databases. At the same time, many in-
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surers pressure shops to reduce costs by using recycled parts. But used parts like doors can require hours of additional labor to be made to fit properly and to be reconditioned. Ultimately, shops are required to either make “less than quality” repairs or suffer a financial loss. Taking shortcuts raises the specter of safety issues, but once a vehicle is repaired, it’s not easy to spot problems such as improper welds that might be hidden by seam sealer. “The guys can’t make it. It’s not that they are bad businesspeople,” said Scott Blake, of Blake’s Carstar Collision Center in LaPorte and president of the IABA.
Insurers Respond The insurance companies have responded in kind in the media, defending their DRP programs as a key way to keep premiums on auto policies under control. “These lawsuits are another attempt to undermine programs insurers have put together” to hold down vehicle repair costs, said Bob Passmore, a spokesman for the Property Casualty
Insurers Association of America, which represents insurance companies. “The programs have been around 20-plus years, and they are timetested. People like them. They achieve desired results” to get vehicles repaired quickly by repair shops vetted by the insurer and at reasonable cost, he said. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” said Missy Dundov, a spokeswoman for State Farm. Dundov said State Farm built its Select Service network by listing body shops that provide warranties on their work and meet performance standards set by State Farm. But a State Farm customer is “free to choose the repair shop of his or her choice,” even if it’s not on the Select Service list, she said. When it comes to parts, Dundov said, State Farm’s “current business practice” is to pay for non-factory-made parts only in uses that don’t play a role in crash protection—unless a customer requests otherwise. If a body shop is told to install a used part, “we
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rely on the repairer to inspect the part and ensure that it is of sufficient quality to repair the vehicle properly,” she said. Dundov said PartsTrader “creates a consistent approach to parts ordering,” she said, and does so “at a competitive price, as quickly as possible.” Body shops overall have had a “quite positive” reaction to the online ordering system, Dundov said. As for allegations in the lawsuit that State Farm steers customers to body shops in its Select Service network, Dundov said it’s up to customers to decide what body shop to use. A spokesman for Progressive, Jeff Sibel, said, “We are aware of the new litigation against us and believe that we can demonstrate the fairness in our claims practices at the appropriate time.” A GEICO spokeswoman, Christine Tasher, said the company won’t comment on pending litigation. “There’s going to be a battle,” says Tony Passwater, executive director of the Indiana Auto Body Association, the lead plaintiff. Passwater says that on average, insurers won’t reimburse for $550 to $750 worth of
work on a typical repair job of $3,500, leaving it up to the body shop to pick up the unpaid costs. That $550 to $750 estimate of unreimbursed costs will likely be used by the body shops’ attorneys in figuring their damage claims against the insurers. Passwater said the state once had about 2,000 shops; there are now 800 to 1,000. Passwater has been promoting the lawsuit among auto body shops around the state and expects that the 24 current plaintiffs will swell by 15 to 20 in the next several months. But some shop owners, he said, are reluctant to join because “they’re concerned about any retribution the insurance companies might do.”
Plaintiff’s Attorney Eaves said he thinks the numerous lawsuits he and co-counsel are filing could eventually be consolidated in one court. He said he expects to present testimony from “whistle-blowers” who worked for insurance companies and will give evidence of collusion among companies in their business tactics. But the litigation could be fierce, Eaves said.”We’re anticipating exten-
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sive pushback. They’re making billions of dollars by these practices and they’re not willing to give it up easily.” Even so, Eaves said, several insurance companies have approached him to ask about settling the claims to avoid lengthy litigation and a possible high-stakes jury trial. “We are already in discussion with three insurance companies that are willing to discuss resolving it. I was kind of shocked. I never had a case where somebody came so quickly and wanted out.”
CAPA Reaches 15 Year Milestone for Vehicle Test Fits
The Certified Automotive Parts Association (CAPA) incorporated its Vehicle Test Fit (VTF) program in 1999 and since then, CAPA has performed more than 10,000 VTFs to ensure that the gap, flush and fit of CAPA parts rival those of OE parts. Since then, there has been a dramatic increase in the quality of the aftermarket parts submitted for testing under CAPA’s rigorous certification standards.
OSHA Cracking Down on Isocyanate Exposure
A representative of GMG Envirosafe warned attendees of the Collision Industry Conference held April 9–10 that OSHA is cracking down on body shops to ensure workers are protected from isocyanate exposure. Brandon Thomas, chief operations officer of GMG, a company that offers OSHA, EPA and DOT compliance solutions, said a study done by OSHA’s counterpart in Britain found that painters in a body shop environment have 80 times the risk of occupational asthma from isocyanates than industrial workers. It’s precisely for that reason, Thomas said, that OSHA is targeting the collision industry more aggressively than others. According to Thomas, OSHA has fined body shops $1.6 million over the last three years. OSHA’s enforcement division has increased inspections 25 percent over the last four years because they have a bigger budget, and there is an average of 4.33 citations per inspection. The goal is to control exposure through engineering and administrative controls (PPE training and processes).
SCRS Examines Repairer Ability to Control Data
Many repairers are unaware of the breadth of data being extracted from their servers, where it is being extracted from, what settings they could employ to better control the flow of information, or even how that information may be used beyond its intended purpose. For years, the Society of Collision Repair Specialists (SCRS) has alerted its members about the potential risk and liability associated with inadequate control over estimate data and business information. For example, SCRS was notified of growing concerns relative to the collection of data through participation in the PartsTrader parts procurement program. As the program rolled out across the nation, more questions began to arise when end-users noticed key identifying information from nonState Farm estimate files populating their PartsTrader dashboard. The repairer concern surrounds the amount of non-voluntary information being provided through the data collection process, which could offer valuable information surrounding market volume and shop volume, raising further concerns over the potential of violating agreements with non-involved carriers by sharing information with an unrelated third-party. SCRS researched the issue with PartsTrader, and each of the estimating system providers to identify the means and extent in which the data is
being accessed and collected, and inquiring if repair facility end-users have options to restrict non-required data from being collected, accessed, or shared. As a result of that research, SCRS issued an article outlining the resulting responses from each of the technology organizations. The article concludes that: Technology has increased the ability to communicate information amongst businesses; however, the increase of applications that indiscriminately extract data in the background for unknown or unintended purposes is a concern for repairers who have obligations to protect data generated by their business. There are advancements being made, or already in place, from some estimating system providers that allow collision repair facilities to maintain better control over the data files being exported from the estimating systems to other data collection sources. The solutions and options for each estimating system vary, so it is important to compare capabilities of the software programs relative to features that allow greater control over unwanted data transfer, and to make any necessary profile changes in line with individual business practices. Read the full article at: http://scrs.com/data/uploads//2014april-scrs-examines-repairer-abilityto-control-data-flow.pdf.
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to be around so many individuals in our industry who also think it’s well past time for a change.” Hanks was also honored to have Thornton. The motivational speaker Randy Ishee, from the LA Attorney shared war stories with an emphasis General’s office, attend SARC 2014 on teamwork, and Plier notes that as a guest of the LaCIA. He was inThornton’s speech was “very mov- vited to speak at one of the meetings, ing… If that didn’t send chills up your and Hanks said, “when I spoke to him spine, I don’t know what would!” before the event ended, he told me it Next, Dave Poston, Collision was his mission to right the wrongs in Marketing Manager for American this industry for all these good people Honda, discussed “Honda Repair in it and, most importantly, for the Technologies,” followed by Assured consumer. He has friends in other Aaron whoaffecting ve Performance’s us your opinion onClark matters theareindustry. states who in this industry, and he covered “OEM Certification”, provid- couldn’t believe the things he was uning an idea of what’s to come regard- covering. We’re lucky to have him on ing this topic. The event concluded our side.” publisher@autobodynews.com with a discussion and question-andRegarding the many educational answer session on the details and sta- seminars and breakout sessions, Schutus of lawsuits filed against insurers, lenburg noted, “attendees were enled by John Mosley, President of gaged in the conversation throughout MSCRA and owner of Clinton Body the day and were clearly hungry for Shop, and Ray Gunder of Gunder’s the motivation and tangible solutions Auto Center, along with Attorney they received from all the speakers. To advertise The Johnsource Eaves Jr.for timely With more than 500 repairers in attencall Joe Momber at: Alysia Hanks, Executive Direc- dance, it was a success by every measinformation that every 800-699-8251 tor of LaCIA, was “most excited ure.” Concurring with Schulenburg’s body shop needs! about getting to meet Mr. Gunder. He analysis ofe-mail: attendees’ interest in the jmomber@autobodynews.com was just as nice as could be, and I discussions at the conference, Plier CALL 800-699-8251 could tell he really cares about this in- says that “their enthusiasm tells me www.autobodynews.com Start Your FREE dustry when he spoke. It was also nice that repairers thirst for this kind of inContinued from Page 24
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formation and that they want to im- weather that weekend led him to state prove for the consumer.” “it was like a little vacation but also Hanks believes the event went an educational opportunity.” He also very well, and she feels “so lucky to believes that Biloxi was the perfect lobe part of an industry where we have cation for people to come out and so many people who just genuinely enjoy the conference as it is about as want to do the right thing and make an centralized as possible. The six colhonest living without having the daily laborating associations met on Friday fights we have to battle… I think [the night, and deciding to keep the SARC conference] was a great opportunity in Biloxi for the next two years, they for us to network with other states and set dates. Next year’s conference will hear what they are doing. I’m already be held on April 17 and 18, 2015, looking forward to next year!” while SARC 2016 will take place on The only negative feedback Plier April 8 and 9. The core group has alhas received referenced the ready begun planning for next year’s Want to Contribute to plethora this Southwest Edition? of information presented—“we re- event with the goal of addressing as ceived a few complains about the many hot topics in the industry as posclasses running together and attendees sible. If this year’s SARC was any innot havingpublisher@autobodynews.com enough time to visit the exdication, next year’s event should be hibitors. We stubbed our toes on a few even more exciting! things, like the over packed agenda, and we could’ve done a better job orPromote your business with Promote your business with ganizing registration. We are looking an exclusive article featuring an exclusive article featuring at ways to avoid cramming so much your products or services. your or services. in for nextproducts year to make it easier to pick and choose which segments each person wants to attend and to allow more time for networking and visiting exhibitors.” CALL: Joe these Momber forstumbling details! Call for details! Despite minor blocks, Plier believes the SARC 2014 800-699-8251 800-699-8251 went well overall, and the nice
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NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens
As of May 6, 2014, both online attendee registration and housing reservations are open for the 32nd annual NACE | CARS 2014 Expo & Conference at: http://www.naceexpo.com/Content/Register/3/. Part of Industry Week, the collision and service repair industry’s premier networking event, the NACE | CARS 2014 Conference will be held July 30– August 2, 2014, and the Expo will be held July 31 and August 1, 2014, at the COBO Convention Center in Detroit, MI. Other Industry Week events include many board and association meetings on July 28, 2014; the Collision Industry Conference (CIC) summer meeting on July 29, 2014; and the I-CAR Conference and Gala 35th Anniversary Networking
Event on July 30, 2014. View the Conference Program and Schedule-At-A-Glance at: http://www.naceexpo.com/page.cfm/Action=Seminar/libID=1/listID=1/t=m/goSection=5. Expo passes to access the show floor only can be purchased for $35. Individual, 90-minute conference sessions are available for $75 per session or individual three- or four-hour conference sessions are available for $150 per session. A Day Pass is $250, and Saturday Mechanical Sessions are $150. A full-access Super Pass is $315 for members and $365 for non-members. All prices noted reflect early bird pricing, which is in effect through June 14, 2014. I-CAR Add-
On Education, the Collision Repair Executive Symposium (CRES)/MSO Symposium, and Technology and Telematics Forum (TTF) events are available at an additional charge. New for 2014, all registration options include the NACE | CARS Show Floor Receptions in the evening on July 31 and August 1; the Opening General Session the morning of July 31, 2014; and The Assembly - Industry Forum in the afternoon on July 30, 2014. Additional details on these events will be released in the near future. Special discount pricing is available for Automotive Service Association (ASA) members, and discounts are also provided for other industry organization
NACE Announces CRES/MSO Symposium Agenda
NACE has announced the schedule is now available for the Collision Repair Executive Symposium (CRES), formerly the MSO Symposium. The MSO Symposium has been an extremely popular, sold-out event during NACE since it premiered in 2011, drawing attendance from the largest multi-shop operators in the collision repair industry. This all-new CRES business event now caters to a broader group of collision repair executives
allowing it to be more inclusive of some of the best, as well as the largest, operators in the marketplace. This year’s event includes key changes in content including a focus on management, operations and participation from insurance company executives presenting leading information on industry trends. Designed for collision repair multi-shop operators, as well as operators looking for high-growth strate-
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gies, mergers and acquisitions, divesting, and operational excellence, CRES is scheduled for Friday, August 1. The NACE | CARS Expo will take place Thursday and Friday, July 31Aug. 1, with education beginning Wednesday, July 29, at the Cobo Convention Center in Detroit. Registration for CRES is $150 before June 14 and $250 following, and is available online at http://www.NACEexpo.com/Content/Register/3/ for qualified shop owners. This “next generation” CRES event provides information for highgrowth shop owners and multiplestore operators that is unparalleled. This year’s CRES includes an Expo Pass, as well as a ticket to the Opening General Session and Welcome Party Thursday, July 31, allowing for multiple networking opportunities for shop owners and MSOs throughout the event. “A significant amount of time, effort and planning has been invested in developing the fresh content for this year’s all-new format for CRES as we strive to deliver relevant, highlevel content for this important and
members. All NACE | CARS exhibitors will be offering substantially discounted Expo Passes and 10 percent off any conference purchase (excluding I-CAR AddOn Education). Attendees are encouraged to contact an exhibitor to redeem this discount. For a list of current exhibitors, visit http://fp37.a2zinc.net/clients/StonefortGroup/NC14/public/eventmap.aspx. In addition, special discounts are available to students and educators focused in the automobile repair industry. Additionally, NACE | CARS participants are encouraged to book hotel reservations early, as the rooms are filling fast. Attendees and exhibitors can review the hotels within the official housing block and reserve their rooms online.
rapidly growing segment of the collision repair industry,” said Russell Thrall, Collision Week publisher, symposium moderator and co-producer. Dan Risley, ASA president and executive director, and CRES co-producer stated, “Some businesses are preparing for expansion through growth or acquisition while others are preparing for merger or divestiture. This symposium will provide information essential in understanding market conditions and preparing for the future, regardless the size of the business.” Sponsorship opportunities for the CRES are selling quickly, with 12 sponsors confirmed to date: ASA, AudaExplore, AutoZone, Axalta Coating Systems, BASF, Car-O-Liner, Chief Automotive Technologies, CollisionWeek, Enterprise Rent-a-Car, PPG, UniCure and Universal Technical Institute. It is co-produced by ASA, NACE and Russell Thrall. CRES will be moderated by a team of experts including Marcy Tieger, Roger Wright, Erick Bickett and Russell Thrall.
Valspar Joins National Auto Body Council
Valspar Automotive is the 32nd National Auto Body Council (NABC) Diamond Member. “From the time we first visited with NABC representatives at the SEMA Show in 2013, we knew this was an important mission that we need and want to support,” said Peter Willman, Valspar Automotive North America general manager. “Community involvement matters to us, which is why it was an easy decision to join and help further the NABC mission and its programs.”
“We applaud and welcome Valspar’s leadership commitment to the NABC,” said Chuck Sulkala, NABC executive director. “Valspar’s membership at our highest Diamond level represents a strong endorsement of the value and important work by our entire membership as we continue to strengthen and build a positive image of our collision industry.” View all NABC Diamond Members at: nationalautobodycouncil.org/membership/diamond-members.
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