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Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry by John Yoswick

PartsTrader proposed state limits on use of non-OEM parts, and challenging the automakers’ patent designs on crash parts were all being discussed when non-OEM parts manufacturers and distributors met recently in Austin, Texas. The Automotive Body Parts Association (ABPA) allowed only members in the room during discussion at its convention of the association’s pending lawsuit challenging the validity of six of Ford’s design patents on collision repair parts. But proposed

federal legislation that would reduce how long automakers can use design patents to prevent other companies from producing replacement crash parts was among the topics discussed at the event by Louisiana tax Cassie Felder lawyer Cassie Felder, who is running for Congress. Felder, a Republican who believes in tax reform and repealing the Affordable Care Act, told attenSee Aftermarket Parts Sellers, Page 16

GCIA Invites All Georgia Shops to Participate in Labor Rate Survey to Gauge Market Rate Ranges The Georgia Collision Industry Association (GCIA) has extended an invitation to its members and other Georgia collision repair facilities to participate in the 2014 GCIA Labor Rate Survey starting Monday, June 2, 2014. Unlike previous years, this year’s survey will include a realtime survey of shop labor and material rates plus a survey of training, certifications and equipment. The purpose of the 2014 survey, according to the GCIA, is to provide Georgia collision shops with Prevailing Market Rate Ranges (PMRRs) in their markets, which more accu-

rately reflect labor and shop rates than one single prevailing rate. The GCIA says this survey methodology significantly improves the possibility that shops will be compensated fairly and reasonably for their work. The 2014 survey is being conducted by National AutoBody (NABR) Research. After submitting the survey form, an email will be sent to you with a temporary username and password providing seven-day access to the NABR’s “Survey the Market” and “Quote” tools, the new “NABR Labor Rate & Profit Calculator” and the Shop Locator.

VOL. 5 ISSUE 5 JULY 2014

Body Shops Respond to Hartford’s Request for Dismissal of Florida Antitrust Case Attorneys for Florida collision repair shops that sued dozens of insurers recently responded to Hartford Accident and Indemnity Co.’s request for the U.S. Middle District of Florida Court, Orlando division, to dismiss their antitrust and steering lawsuit, writing, that, “The defendants misrepresents both the contents of the complaint and quite often the holdings of authority to which it cites.” The Florida body shops sued Hartford, State Farm and dozens of other insurers. The automotive glass repair companies allege similar issues with third-party administrators (TPAs), which handle automotive glass claims for insurers. “When the correct legal standards are applied, a straightforward reading of the complaint establishes there is more than sufficient facts asserted to satisfy the pleading requirements,” the attorneys claim. “The

defendants’ numerous misrepresentation of fact and law do not alter this. The Motion to Dismiss is without any merit, legal or factual. The plaintiffs respectfully submit it should denied in its entirety. “What is required from the complaint and its exhibits is to set forth sufficient facts to establish a probability of relief. That is all. The complaint more than satisfies this requirement. The plaintiffs respectfully submit that defendants’ Motion to Dismiss is without any merit whatsoever and should be denied in its entirety. Should this court determine any portion of the complaint is lacking, the plaintiffs move this court for permission to amend, the preferred remedy for such situations,” attorneys write in court documents.

The judge has not issued any decisions at press time.

OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm Alleging Systematic Shortpays by Chasidy Rae Sisk

Three-C Body Shops, a four-facility, multi-shop operation in the Columbus OH, area, has filed multiple lawsuits against State Farm Insurance Company in an effort to recover alleged

Three-C is Suing State Farm, Alleging Repeated Estimate Discrepancies on Total Losses

shortpay losses. Since November 2012, Three-C has filed 104 suits against the insurer, all of which accuse

State Farm of engaging in “repeated underpayments for services generally rendered and charged to their customers when their vehicles have been deemed total losses.” Currently, owner Bob Juniper is seeking $405,000 in recovery, including legal fees and court costs, of which State Farm previously agreed to pay $31,565.03. Juniper notes that he rarely has problems with insurers refusing to pay the full cost of repairs because “we negotiate with them pretty well. We spend a little time with their adjusters and can generally get to where we need to be. We may not always get the full amount of our estimate, but we get close by compromising until we come to terms we can both agree on.” In fact, Juniper hasn’t experienced difficulty from State Farm in See Three-C Body Shops, Page 14

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Contents 28th Consecutive Year . . . . . . . . . . . . . 29

Binghamton, TN, Body Shop Called Out

Chrysler Airbag Recall Being Probed

Caliber Acquires MSOs in Los Angeles

Crashes Cost Almost $1T in Costs,

Charlotte, NC, Shop Gets Big Pot Package

Fix Auto Acquires Alaska Shops . . . . . . . . . 6

for Crime in Area . . . . . . . . . . . . . . . . . . 8 and North Carolina. . . . . . . . . . . . . . . . . 4

by Regulators . . . . . . . . . . . . . . . . . . . 36 Loss of Life, Pain. . . . . . . . . . . . . . . . . 37

from CA. . . . . . . . . . . . . . . . . . . . . . . . . 8

I-CAR Gold Class and ASE-Certified Shops

Body Shop Standoff. . . . . . . . . . . . . . . . 4

I-CAR® Adds New OEM Development

Licenses Bill . . . . . . . . . . . . . . . . . . . . . 4

I-CAR® And National Auto Body Council

FL Gov. Vetoes Undocumented Drivers’

GCIA Invites All Georgia Shops to Participate in Labor Rate Survey to Gauge Market

Rate Ranges . . . . . . . . . . . . . . . . . . . . . 1

Jon Hall Chevrolet Opens Shop in

Daytona Beach, FL. . . . . . . . . . . . . . . . . 8

Pack Brothers in Belmont NC Wins

Short Pay Arbitration . . . . . . . . . . . . . . . 8

COLUMNISTS

Franklin - Ding Day–A Marketing Tactic . . 18

Rewarded at NACE | CARS . . . . . . . . . . 9 Director . . . . . . . . . . . . . . . . . . . . . . . . 39

Partner on Membership Discount,

30% Off Until End of 2014 . . . . . . . . . . 10

I-Car® Conference on Future of Collision

Repair and Automotive Industry, July 30

In Detroit . . . . . . . . . . . . . . . . . . . . . . . 39

IL Shop Owner Posts 20-min Video

of FPB for Panel Fixes . . . . . . . . . . . . . 37

Letter to the Editor - Why Should Insurers Get Free Estimates When They’re

Not Using Adjusters . . . . . . . . . . . . . . . . 3

Luehr - Using an Outside Expert to Improve

MERA Joins the Excitement at

Sisk - LaCIA Hosted Louisiana Attorney

New Study Says More Than 75% of All

your Competitive Position . . . . . . . . . . 34 General at May 22 Meeting . . . . . . . . . 26

Yoswick - Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and

OEConnection . . . . . . . . . . . . . . . . . . . 20

NATIONAL

Aftermarket Parts Sellers Hear from

Congressional Candidate With Ties

To The Industry . . . . . . . . . . . . . . . . . . . 1

NACE | CARS 2014. . . . . . . . . . . . . . . . 9 Pickup Trucks will be Aluminum-Bodied

by 2025. . . . . . . . . . . . . . . . . . . . . . . . 38

NSF International’s Bob Frayer Earns

Prestigious ASQ Quality Leader Award . 36

OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm

Alleging Systematic Shortpays. . . . . . . . 1

Ohio Appeals Court OK’s Line

Measurement for Dealership . . . . . . . . 17

ALLDATA Launches Collision Webinar

PartsTrader Integrates Hollander

AMI to Honor New Managers . . . . . . . . . . . 6

SCRS Open Board Meeting on

Series June 16. . . . . . . . . . . . . . . . . . . 35

ASA-CO to Host Pinnacol Safety Meeting

July 9 in Denver. . . . . . . . . . . . . . . . . . 10

Attanasio - Tech Turned Tool Designer

Headlines EB-CAA May Meeting. . . . . . 30

Attorney and AASP-MN Lobbyist Kevin Walli

is Minnesota’s Shop Champion . . . . . . 24

AudaExplore Pledges $150K to SkillsUSA

in Tool Grants . . . . . . . . . . . . . . . . . . . 28

AutoZone Names Dornan Products

Vendor of the Year . . . . . . . . . . . . . . . . 17

Body Shops Respond to Hartford’s Request

for Dismissal of Florida Antitrust Case . . 1

CARS This Year Is All New, ASA Promises

It Will Be The Best Show Ever . . . . . . . 10

CCAR and ShipMate Launch Improved

HazmatU website. . . . . . . . . . . . . . . . . 19

Chief Will Sponsor SkillsUSA for the

they want us to write the estimate and send up pictures for free! Why do they think my time is worth nothing? My partner and I share the office work and are out in the shop working all day. Our time is valuable. When we are in the office our production time suffers. The insurance companies tell me “Well, you write free estimates don’t you?” My answer is ‘yes, to a prospective customer that I don’t know, or my regular customers,’ but when I have a customer that drops his car off I know I have that job already. The person has picked my shop. Why is it the insurance company feels that I should prepare the estimate for them on my dime? They are saving money by not paying an adjuster, but I feel they should at least pay me some fee for my time and not take advantage of me. Small shops cannot take that kind of abuse and I think it’s taking an extreme advantage of shops and the proprietors. I would like your [readers’] thoughts on how we can combat this abuse. Thanks, Pete Gutierrez, Pete <1redcatz@comcast.net>

Letters to the Editor can be sent to editor@autobodynews.com. They may be edited for length and clarity. See Facebook/autobodynews to respond via comment. 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

Indexof Advertisers

Culpeper, VA, Man Charged after

I would like your opinion on something I’m seeing becoming a trend. I am seeing more and more insurance companies making the body shop do the original estimate and send up pictures. We will have one of our customers bring a car to our shop and they want US to do the work. They call their insurance company up and let them know the car is at our shop. Normally, they would send out a insurance adjuster to do the estimate because for years now if we did one it was not good enough for them. They would not want it. They would do their own and in turn we would go over it and make adjustments or add to it from there. They may argue and haggle if repair times were unacceptable. Now, Nugent online uploading of pictures and estimates is available. I’m finding more and more insurance companies telling us to go ahead and use Nugent, upload and send pictures. All of a sudden now our estimates are good enough for them ! Of course they are saving money by not sending out an adjuster! This is what I’m upset about. Before we weren’t good enough to write a estimates now

Serving Florida, Georgia, Alabama, Mississippi, Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

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July 28th in Detroit. . . . . . . . . . . . . . . . 37

Allan Vigil Ford-Lincoln . . . . . . . . . . 24 Automotive ID . . . . . . . . . . . . . . . . . 12 BMW Wholesale Parts Dealers . . . . 37 Cavalier Ford-Lincoln Greenbrier . . 19 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Chief Automotive. . . . . . . . . . . . 16, 17 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Coggin Deland Honda . . . . . . . . . . 19 Crown Automotive Group . . . . . . . . 11 Dent Magic Tools . . . . . . . . . . . . . . . 6 Don Reid Ford. . . . . . . . . . . . . . . . . 14 Ford Wholesale Parts Dealers FL, VA, GA, AL, MS. . . . . . . . . . . 33 GM Wholesale Parts Dealers . . . . . 29 Gray-Daniels Auto Family . . . . . . . . . 5 Gus Machado Ford . . . . . . . . . . . . . 20 Hendrick BMW/MINI . . . . . . . . . . . . 25 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 21, 22-23 Hyundai Wholesale Parts Dealers. . 32 Innovative Tools & Technology, Inc . . 8 Jon Hall Chevrolet . . . . . . . . . . . . . 10 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . . 2

SEMA Garage Now Features Photo Cove . 28

Service King Collision Repair Centers Finalizes Sterling Collision Centers

Acquisition . . . . . . . . . . . . . . . . . . . . . 13

Sisk - New Auto Body Association of

Texas Launches June 18, PartsTrader

Provides Impetus, Statewide Members

Invited to Join . . . . . . . . . . . . . . . . . . . 32

VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to

Pre-Loss Condition . . . . . . . . . . . . . . . 12

Women’s Industry Network Celebrates Excellence In Leadership And The

Formal Transition Of The MIW Program. . 6

Young Technician’s Program to Debut

at CARS . . . . . . . . . . . . . . . . . . . . . . . 37

Southeast

REGIONAL

Letter to the Editor: Why Should Insurers Get Free Estimates When They’re Not Using Adjusters

Kia Motors Wholesale Parts Dealers. 31 Lexus Wholesale Parts Dealers . . . 36 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Martech Services Company . . . . . . 16 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 32 MINI Wholesale Parts Dealers . . . . 37 Minute Man Wheel Lifts. . . . . . . . . . . 4 Mitsubishi Wholesale Parts Dealers . 39 MOPAR Wholesale Parts Dealers . . 27 Nalley BMW. . . . . . . . . . . . . . . . . . . 28 PDR Nation . . . . . . . . . . . . . . . . . . . . 6 Performance Automall . . . . . . . . . . 18 Porsche Wholesale Parts Dealers . 39 Priority Honda . . . . . . . . . . . . . . . . . . 9 Safety Regulation Strategies . . . . . 26 SATA Spray Equipment . . . . . . . . . 13 Subaru of Gwinnett . . . . . . . . . . . . . 28 Subaru Wholesale Parts Dealers . . 35 Tameron Hyundai . . . . . . . . . . . . . . 34 Toyota of Easley . . . . . . . . . . . . . . . 30 Toyota Wholesale Parts Dealers . . . 34 UniCure Spraybooths . . . . . . . . . . . 40 Valspar Automotive . . . . . . . . . . . . . . 7

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 3

Culpeper, VA, Man Charged after Body Shop Standoff

A Culpeper man involved in a standoff at a Madison County auto body shop was taken into custody on May 28 and is now facing charges. According to police, a standoff started shortly after 7:30 a.m. when David Allen Cole, described as an “active shooter,” entered Skyline Restoration, an auto body shop on Route 29 in Madison. Someone working at the shop called police. “According to the caller, one shot had already been fired and a second shot was fired while the caller was on the phone with dispatch,” said Erik Weaver, Madison County Sheriff. Cole, 42, stayed inside the shop from 7:30 a.m. until his arrest shortly after 10 a.m. When law enforcement first arrived the employees had already left the shop safely and Cole was the only one inside. “After several minutes the suspect came to the door displaying the firearm. The deputies challenged the suspect at which time he pointed the firearm to his throat,” said Weaver. Police say Cole had a semiautomatic 9 mm gun to his throat the entire time. Authorities also say a total of five empty casings were found on

the property. After about two hours of negotiations, Cole surrendered. Cole, who was an employee at Skyline Restoration, has been charged with reckless use of a firearm. He is currently being evaluated under an emergency custody order. Police say no one was injured during the standoff, including the suspect. Those involved credit the teamwork of a number of law enforcement agencies for that. “It was amazing to see nearly 20 organizations come together in a matter of minutes,” said Ernie Hoch, Madison County administrator. Madison County Schools, located half a mile from the scene, were put on lockdown while the standoff took place but the lockdown has now been lifted. Police say no students were involved in the standoff. Police were also forced to shut down Route 29 in Madison in both directions while trying to get the suspect in custody. “The establishment was also very close to Route 29. We did not want a stray bullet leaving the vicinity and striking vehicles going up and down Route 29,” said Weaver.

Caliber Acquires MSOs in Los Angeles and North Carolina

Caliber has acquired two multiple collision repair shop operators with a total of nine locations—four in Los Angeles and five in Raleigh, NC. The North Carolina acquisition is the first location for Caliber in the eastern U.S. Caliber Collision Centers announced that it acquired Classic Collision Center, Inc., with four locations in greater Los Angeles: (Los Angeles, Pasadena, Tujunga, and La Crescenta), and Haddock Collision, a dominant repairer with five locations in the Raleigh, North Carolina market (Raleigh, Wakefield, Cary-Crossroads, Cary-Maynard, and Fuquay-Varina.) Classic Collision was founded in 1980 and Haddock in 1972. Caliber Collision CentersSteve Grimshaw, Caliber Collision Chief Executive Officer commented, “Our acquisition of Classic Collision Center, Inc. continues to offer more customer choices in the Southern California market. After spending time with Classic Collision’s management team, it was obvious that Classic Collision aligns perfectly with Caliber by delivering industry-leading customer satisfaction across all four Los Angeles locations.” “We are proud that Classic Collision Center is now a part of the nation’s leading collision repair provider,” said Majic Berenji, Classic Collision President. “This combination will allow the company to continue to grow, while

providing Classic Collision’s customers with even higher standards of quality and personal service that has become our trademark. It will also provide Classic Collision’s staff and their families’ new advancement opportunities and a secure future in the dynamic collision repair industry.” “Our acquisition of Haddock Collision Centers in North Carolina represents our first of many acquisitions to come in the eastern U.S. I am very excited to have Todd McGowan, and the entire Haddock Collision organization, join forces with Caliber,” said Grimshaw. With these acquisitions Caliber now operates 177 collision repair facilities in Arizona, California, Colorado, Nevada, New Mexico, North Carolina, Oklahoma, and Texas.

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4 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

FL Gov. Vetoes Undocumented Drivers’ Licenses Bill Recently, Florida’s Republican-controlled legislature overwhelmingly passed a bill that would have allowed many young undocumented immigrants to apply for temporary driver’s licenses. That bill would have become law if it wasn’t for Gov. Rick Scott (R). Scott on vetoed the legislation, which would have allowed beneficiaries of President Obama’s Deferred Action for Childhood Arrivals (DACA) policy to seek driver’s licenses. Scott said his decision was rooted in his belief that DACA violates federal law. “Although the Legislature may have been well intentioned in seeking to expedite the process to obtain a temporary driver license, it should not have been done by relying on a federal government policy adopted without legal basis,” he said in his veto message. The measure would have added an approved deferred action application to the list of materials that people seeking driver’s licenses can use to

prove their identity, according to The Miami Herald. The state House passed the bill 115-2 and the state Senate voted 36-0 to send it to Scott’s desk. More than 291,000 DACA applications have been approved nationwide, according to the federal government. And an estimated one million undocumented immigrants of all ages reside in Florida. Immigrantrights activists have urged state governments across the country to grant driver’s licenses to DACA recipients, saying they are necessary to get to and from work and school. Already, many DACA recipients in Florida are eligible to receive temporary driver’s licenses under a provision in Florida law that allows non citizens with federal work permits to apply. DACA recipients can also obtain work permits, but approval of work permits sometimes does not coincide with approval for deferred action.

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Women’s Industry Network Celebrates Excellence In Leadership And The Formal Transition Of The MIW Program The prestigious Most Influential Women in Collision Repair (MIW) Awards were presented to three women during a celebratory dinner in San Diego during the Women’s Industry Network (WIN) Conference. The MIW Awards recognize women who have enriched the collision repair industry with their leadership, vision, and commitment to excellence. Doug Holmberg, representing AkzoNobel, formally transitioned the MIW program to Margaret Knell, Chair of WIN, by giving WIN a framed issue of AkzoNobel’s Profit Magazine with a commemorative note officially marking the transition. Profit Magazine has highlighted Most Influential Women honorees since inception of the award. This year’s honorees were Frederica Carter, President of F. Carter Events, LLC; Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association; and Leanne Jefferies, Director of Collision Programs at AIA Canada. Each honoree was introduced by an industry peer and former MIW who nominated them for the award. In a welcome message, Knell thanked those being honored as well as award recipients from prior years, “for

your visibility and ongoing example of most influential women in the collision repair industry by your leadership, vision, and commitment to excellence – both in your professions and in your communities.” She then recognized Ak-

MIW Handoff Knell and Holmberg

zoNobel for their vision and elevation of the societal issue of the advancement of women in the collision repair industry. The recognition program's charter aligns with WIN’s mission to ‘enhance the role of women in the industry’ and has recognized more than 75 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. Honorees have held positions in every facet of the collision repair industry, as shop owners, body and paint

6 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

technicians, managers, wholesalers, lobbyists, suppliers, insurance adjusters, consultants, educators, editors and writers, and industry association directors. Established in 1999 by AkzoNobel, WIN assumed management of the MIW program in 2013. The Most Influential Women program has supported the industry by funding scholarships for prospective female students interested in pursuing a career in collision repair. “The Women’s Industry Network has, in a very short period of time, become a pillar association within the North American collision repair market,” commented Doug Holmberg, Director of Vehicle Refinishes for AkzoNobel Automotive & Aerospace Coatings North America. “It was both a pleasure and honor for AkzoNobel to be part of the 2014 WIN Conference and formally transition the Most Influential Women in the Collision Repair Industry program from our stewardship to WIN for their continued mentoring. WIN will be able to advance MIW and create sustainable resources to the full benefit of the entire collision repair industry.” To learn more about WIN and the MIW Awards, or to see a list of past recipients, visit http://thewomensindustrynetwork.ning.com.

Fix Auto Acquires Alaska Shops

Fix Auto USA continues expansion in the Western United States with the introduction of five locations in Alaska, bringing the total number of Fix Auto franchises to 59. This marks the first time Fix Auto has ventured into the Alaskan market. “We’re ecstatic to join this elite and exclusive brand of high caliber operators as we adapt to shifting market dynamics,” said Tony Stanley, who along with his wife Mel are the owners of the Fix Auto Alaskan franchise group, formerly Driven Auto Body.

AMI to Honor New Managers

The Automotive Management Institute (AMI) will honor its 20th class of Accredited Automotive Managers (AAMs) with a formal cap and gown ceremony on Aug. 1 during the new Industry Week 2014 July 28-Aug. 2 at the COBO Center in Detroit. The AAM designation is awarded after they successfully complete coursework and earn 120 credits of management education. More than 1,700 individuals have earned the AAM designation and approximately 100 new graduates are added each year. For more go to www.AMIonline.org.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 7

Jon Hall Chevrolet Opens Shop in Daytona Beach, FL

Jon Hall Chevrolet has moved its auto body shop from its main location at 551 N. Nova Road to a stand-alone building a half-mile to the north. The Jon Hall Body Shop opened in its new 27,000-square-foot building at 903 Brentwood Drive, just south of the Ritchey Cadillac Buick GMC dealership. Both businesses are part of the Daytona Beach-based Ritchey Automotive Group that includes Jon Hall Chevrolet. The bigger space has allowed the body shop to add nine workers, said Glenn Ritchey, president and CEO of both Ritchey Automotive Group and Jon Hall Chevrolet. Moving the body shop also will allow Jon Hall Chevrolet to expand the quick-service offerings, such as oil changes, at the dealership’s main location, Ritchey said. Ritchey Properties LLC bought the 4.5-acre property on Brentwood Drive in June 2013 for $750,000, according to Volusia County property records. Ritchey said his company additionally spent more than $1 million to renovate the building which previously housed a plumbing supply business called HD Supply Plumbing.

Binghamton, TN, Body Shop Called Out for Crime in Area

A woman was shot in the hand at an auto body shop at the corner of Summer Avenue and Eva Street in Binghampton, TN, on June 10. Neighbors say incidents like this have become all too familiar, despite their efforts to rid the neighborhood of the shop. They say at any given time of day, you can find about a dozen men at the auto body shop either working on cars parked on the street or just hanging around. Businesses have vacated the corner after being caught in crossfire stemming from activity at the shop. Help has been sought from the city and district attorney's office in shutting the place down, but it is still open for business. Sharon Norfleet moved into her home near the auto shop in February, eager to bring new life to a struggling community. Norfleet's granddaughter was in the front room of her house facing the shop when shots rang out. Norfleet didn't believe what the child said she had heard until she opened her front door to several cop cars on the street. Before the business can be declared a nuisance and shut down, officials say the city would have to determine how much money is spent responding to criminal calls at that location.

8 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Pack Brothers in Belmont NC Wins Short Pay Arbitration

Pack Brothers Collision Center in Belmont, N.C., has won a short-pay arbitration case in a North Carolina court against Allstate. On May 27, a Lincoln County judge ruled in favor of awarding a Pack Brothers customer $891.72, which was owed to the body shop for collision repairs that the insurer refused to pay after the insured’s car was fixed. The shortpay litigation was filed by Ronnie Pack, owner of Pack Brothers, on behalf of his customer using a Power of Attorney. According to the insured customer’s policy, Allstate is obligated to pay for necessary and proper repairs of his vehicle. The total amount charged for repair of the vehicle was $3,445.27, but the insurer only paid $2,503.55 for the damages. The customer is entitled to the full amount of $891.72 owed to Pack Brothers plus interest accrued since his accident, attorney fees and any other punitive damages.

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Charlotte, NC, Shop Gets Big Pot Package from CA

Police in Charlotte, N.C., say that 500 pounds of marijuana are off the street thanks to a delivery mix up and a honest businessman. Miguel Garcia, 35, is a car lover and the owner of Boom Boom Car and Audio, was confused when he received a big package from California at his business. “The description said chrome accessories and dash kits and that’s basically what we sell. So my first thought was maybe a vendor had sent it to me to resell it,” he told WCNC. Instead, Garcia found 500 pounds of marijuana, with a listed value of over $250,000. His sister immediately called police. “We never had that thought in our head to keep it. It’s one of those things, you have to have do the right thing,” Garcia said. There was so much that it took officers about an hour to stack up the pot and haul it away. Police think the shipper never intended that the package be delivered because the instructions left a phone number.

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I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS

NACE | CARS, held at COBO Center in Detroit July 30-Aug. 2, will offer special recognition to attendees who have a proven commitment to collision repair training demonstrated through

achievement of I-CAR Gold Class recognition or ASE Blue Seal certification. Collision and Service Repair facility personnel that belong to an I-CAR Gold Class business or hold the ASE Blue Seal certification will receive a 50 percent discount on the training and conference sessions at NACE | CARS

2014. In addition, any individual that is currently I-CAR Platinum or an ASE Master Technician will be entitled to the same 50 percent discount. This discount includes individual sessions through the Super Pass that covers sessions during the entire conference. “We want those who have achieved the highest levels of industry-recognized training and certification to be rewarded for their achievements,” stated Dan Risley, ASA president and executive director. “This is a great way to highlight an elite group and to encourage their ongoing technical and business education.” “As technology advancements dictate a necessary evolution in repairability, more collision repair businesses than ever are adopting a learning culture to ensure that they are able to per-

form safe and quality repairs,” stressed John Van Alstyne, I-CAR CEO and president. “I applaud NACE and CARS for recognizing this commitment to education and knowledge by giving back to the businesses and individuals who train.”

“ASE’s relationship with NACE and CARS goes back to the very beginning of the event, and we are pleased to once again be a part of this significant educational opportunity for the industry,” said Tony Molla, ASE vice presi-

MERA Joins the Excitement at NACE | CARS 2014 The Motor Equipment Remanufacturers Association (MERA) has joined a growing coalition of leading organizations supporting NACE | CARS 2014 Industry Week in Detroit this summer. MERA will host a Remanufacturing Technology Expo on Thursday, July 31, from 10:00 am-4:00 pm in the Ambassador Ball-

room in the COBO Convention Center. Dan Risley, ASA president and executive director, stated, “We are excited to have MERA join us in Detroit. This is a very important organization in the automotive market and their participation, content, and attendance is beneficial to Industry Week. The overriding purpose

dent of communications. “We also salute the efforts to encourage professionalism with this generous discount program for our ASE certified professionals and the businesses that employ them.” Registration is now open for NACE | CARS and hotel reservations can be made via the Travel section of the website, www.NACEexpo.com or www.CARSevent.com for the week of July 27 and all events taking place during “Industry Week” in Detroit. Now in its 32nd year, NACE|CARS will feature numerous opportunities for technical training, business education, demonstrations, networking and technology showcases for stakeholders, owners, managers and technicians in the collision and service repair industries.

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of the event is to bring the industry together, and MERA’s involvement further solidifies our goal of deeper market coverage.” “Remanufactured parts offer likenew quality and real value that technicians and end users can trust,” said John Chalifoux, president and COO, MERA. “Dur-

ing the MERA Remanufacturing Technology Expo, members will showcase the advanced methods they use to restore core components to original—or better—condition and performance.” Registration information and the agenda is available at MERA.org/techexpo.

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CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever This year’s CARS will be held July 30Aug. 2 in Detroit and for the first time, the focus will be on younger techs. There will be a two-day, intensive program called the “Young Technician’s Symposium.” Donny Seyfer, chairmanelect of the Automotive Service Association, which sponsors CARS, reports the program will be “powered” by Bosch. “It’s the brainchild of Bob Pattengale,” said Seyfer, “and will feature cuttingedge learning techniques and thorough introductions to the electronic systems that control modern cars. Targeting the two- to three-year tech, Bosch’s trainers will use hands-on techniques mixed with classroom training to move young techs from maintenance service and light repair to adding routine diagnostic skills to their toolbox.” Each program at CARS this year has been handpicked with an eye to-

ward making your shop better, said Seyfer. Management sessions will be limited so that the “meeting after the meeting” networking opportunities will be enhanced. Seyfer said the “crown jewel” of the CARS lineup will be Friday’s Telematics & Technology Forum sponsored by the Alliance of Automobile Manufacturers. “We will bring you face-to-face with the future,” said Seyfer. “Learn about what cars are doing today and tomorrow from the engineers who build them. How does the independent repair shop fit into this world? You will only know if you attend CARS and attend this session.” Business has changed, said Seyfer, “and things that were effective a few years ago are no longer working.” To help bring attendees up-to-date, ASA is enlisting the aid of notables such as Vin

I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014 I-CAR®, in partnership with the National Auto Body Council (NABC), has announced it will pilot a membership discount program for I-CAR Gold Class® businesses. The promotional offer includes a 30 percent discount toward NABC Bronze Membership through December 31, 2014. “I-CAR and NABC have complimentary goals of encouraging professionalism and promoting a positive image of our industry,” explained Jeff Peevy, I-CAR Senior Director of Field Operations and Segment Development. “I believe all of us within the collision repair industry have an obligation to promote a positive image of it. And one of the best ways to achieve this is to support and enable the growth of an organization designed for this purpose.” NABC membership provides businesses with an array of opportunities for members to reinforce their leadership role within the industry and community, and foster goodwill throughout those communities. The NABC also implements community-based programs like Recycled Rides, Distracted Driving Initiative and First Responders Emergency Extrication, while recognizing those in our industry who epitomize the fundamental goodness which exists in the collision repair world. Recycled Rides is a widely-known and unique program in which insurers, collision repairers, paint suppliers, parts

vendors and others collaborate to repair and donate vehicles to deserving individuals and service organizations in local communities throughout the country. NABC Executive Director, Chuck Sulkala explained, “In addition to helping make a difference in someone’s life, participation in NABC initiatives such as Recycled Rides, provides many intangible benefits. Within a business, it creates rewarding experiences, excitement and pride in and for your team, plus has a very positive impact on the community. The enhanced recognition of our member’s businesses in their community as a result of gifting a Recycled Rides vehicle is an added benefit of membership.” Over 800 vehicles worth in excess of $10 million have been donated through the NABC’s Recycled Rides program since its inception in 2007. “Collaborating with an industry powerhouse like I-CAR really helps the NABC to enroll our industry to evangelize about just how good it is for others to rub elbows with all of us,” said Nick Notte, NABC president. “We at the NABC are delighted that I-CAR has embraced our vision and is so willing to help NABC reach out to even more quality individuals and businesses.” Gold Class businesses are encouraged to take advantage of this special promotion. To learn more about the NABC or Recycled Rides, visit nationalautobodycouncil.org.

Waterhouse, Rissy Sutherland, Danny Sanchez and Margie Seyfer, all experts in their respective fields. Always a concern are employee issues, including successfully integrating new employees into the business. Bill Haas, industry consultant and trainer, has a new class that will provide shop owners the tools they need to help new employees fit right in. On the technical side, since CARS 2014 will be in the Motor City, representatives from Chrysler, Ford and General Motors will all be presenting classes. Pete Meier will help you bring those lab scopes back out to aid you in diagnosis for a new generation of cars. “Speaking of diagnosis,” said Seyfer, “we are going to push the boundaries of your diagnostic techniques and understanding with presentations by Mark Warren and Chris Chesney— both

technical wizards. They will bring new programs that will take your diagnosticians to areas many of them will find completely new.” Seyfer said ASA’s board of directors and members of the association’s Mechanical Operations Committee “are excited” to present a different approach to training at CARS this year. “We surveyed members, asking what their biggest challenges were in running their business and repairing cars, and we took the dominant responses and sought out trainers to provide insight and new skills to solve those problems.” Said Seyfer, CARS is built for shop owners. “It’s built for your technicians and it is built for your sales staff,” he said. “ASA puts on a few ‘must attend’ programs each year. This year, CARS will be at the top of that list. See you in detroit!”

ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver

On Wednesday, July 9, ASA-CO will host a Pinnacol Safety meeting entitled “Managing Safety Through Good Hiring Practices” at Pinnacol Assurance, located at 7501 E. Lowry Blvd in Denver, CO. The event will take place from 11:30AM until 1:00PM

and includes lunch. ASA-CO is hosting this event for all ASA Safety Group Members, totaling around 50 policyholders, and they expect around 15 to 20 attendees. For more information, call 303-2025231 or go to www.asacolorado.org

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VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition unique vehicle, but while it’s easy to match these labels to a specific vehicle Whether you’ve struggled with the on the production line, manufacturers need to replace automotive VIN and are not equipped to replace a single safety labels or if you’ve never given custom label after the car leaves their them a second thought, the fact re- plant. That’s where AutomotiveID mains that federal law mandates these comes in! Automotive ID launched in 2007 labels be permanently affixed to every to fill this need within the collision repair industry. One-of-a-kind VIN and safety labels were not being replaced and, at best, were being cut out and stuffed in the glove box. The company’s sole business is the production of these unique VIN and Safety certification Installing a replacement Tire & Load label will ensure your customers know how to maintain their vehicles and conlabels, and AutomotiveID tribute to their overall safety supplies collision repair favehicle, yet they’re the part least cilities in every state in the U.S. as likely to be fixed during a repair! well as throughout Canada. As a provider of aftermarket auManufacturers rely on both the safety certification label and the tire-and- tomotive labels to the collision repair load label to convey important safety industry, AutomotiveID produces information to drivers. These labels high-quality labels for all makes and are customized with the VIN and models of cars and light trucks, almonth/year of manufacture for each lowing their replacement to go from by Chasidy Rae Sisk

12 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

nearly impossible to one of the easiest tom VIN and Safety certification laparts to replace. Beyond the simple bels. Besides the safety factors menneed to restore a vehicle to its pre-loss tioned, AutomotiveID’s labels also condition, replacing these labels is im- help consumers maintain the value of perative because they instruct drivers their vehicles as appraisers typically on how to handle and maintain their vehicles, including tire inflation recommendations and load limits, both of which are extremely important since ignoring these ratings can lead to dangerous wrecks; this is why the National Highway Transportation Safety Administration (NHTSA) insists the information contained on these labels AutomotiveID’s replacement BMW certification label conis critical to public safety. tains the same information as the manufacturer's original For collision repair facilities, the discount trade-ins with missing labels since the absence of these labels limit benefits of restoring a vehicle to its their knowledge of the vehicle. pre-loss condition by using AutomoAutomotiveID’s replacement lativeID’s labels is obvious, but because insurance companies also recognize bels fulfill many needs to the benefit of the benefit of maintaining the safety all vested parties. In addition to providof their customer’s vehicle and the ing federal regulation compliance of repaired vehicles, these labels preserve value of their own insurable interest, the value of the vehicles, provide necshops can finally get paid for doing essary tracking information, and supply the right thing and replacing these cus-

the repair facility with incremental revenue and compensation on work for which they haven’t traditionally received payment. Each party in the collision repair industry has different, yet valid, reasons for recognizing the importance of replacing vehicle labels, but the predominant concern relates to public safety, and AutomotiveID’s services undeniably contribute to this factor. AutomotiveID offers a complete line of automotive labels, including certification, service parts, tire and loading, emission control, paint and trim, anti-theft and all other aftermarket labels that are typically difficult to find. All of their replacement labels meet the standards set forth by the NHTSA, and AutomotiveID enters all information by hand to ensure accuracy as part of their thorough process of quality control and independent verification procedures. So how do you order replacement labels from AutomotiveID? Easily because it’s all done online! Simply visit their secure website, complete the order form, and upload a photograph of the original label. AutomotiveID will enter the necessary information and print a new label which you can receive as early as the

next business day. AutomotiveID’s replacement labels adhere to all NHTSA content standards, contain the exact information as the original label, including fully functional bar codes, and are permanent and weatherproof. With their industry-leading, webbased ordering and rapid return processes, AutomotiveID ensures their replacement labels are the “easiest part to put back on,” so what are you waiting for? Visit their website and restore the vehicles in your shop to their preloss condition today!

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Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition Service King Collision Repair Centers has announced that it has finalized the acquisition of Sterling Collision Centers. Service King now operates 175 locations across 20 states. The company says that the acquisition supports Service King’s robust growth strategy and further strengthens its position as the premier provider of high-quality collision repair backed with exceptional customer service. “Acquiring a company like Sterling Collision Centers is about more than expanding our network with bricks and mortar. The strength of our organization lies within our people and we are extremely excited to welcome the very talented Sterling team to the Service King family,” said Chris Abraham, CEO of Service King. “Service King has offered consumers a superior collision repair experience for more than 38 years and we are well positioned to grow that legacy with what I believe is the most capable and experienced team in the industry.” Sterling’s 62 locations will begin operating as Service King immediately and the rebranding of Sterling stores across

the country commences June 3, 2014. “Service King has built a strong reputation in the communities where we do business. We recognize that collision repair is not just about the car, but it’s about the care and the lives we touch every day. This acquisition allows us to expand our footprint and offer more consumers an unparalleled, personal repair experience,” said Jeff McFadden, President of Service King. Service King now employs more than 3,800 technicians and support team members and offers collision repair services in the following states: Arizona, Arkansas, California, Colorado, Georgia, Florida, Illinois, Maryland, Michigan, Mississippi, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia. For a full list of locations by city and state or any additional information on Service King, visit www.serviceking.com.

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Continued from Cover

Three-C Body Shops

paying for repairs either. Three-C’s shortpay lawsuits are associated with costs related to vehicles that are deemed total losses which the insurer objects to paying. Juniper provides the following example: if the shop writes a $10,000 estimate on a car valued at $11,000 and the insurer’s adjuster estimates $4000 in damages, the shop has to perform many additional steps as part of the process of writing a thorough estimate. Moving the disabled vehicle, disassembly, taking inventory of parts, recycling hazardous waste, and performing a comprehensive safety check to test for damages are just a few of the many steps needed in order to document the car as a total loss; however, when the adjuster returns to discuss the estimate and declares the vehicles to be a total loss, State Farm only wants to pay the cost of storage and a few minimal charges, though all of these processes are required. Other processes which Juniper feels shops should be aware that they can charge for include suspension checks, rough access, preparing the pack-totaled vehicle, glass clean-up, and labor. Meanwhile, Three-C has time associated with the estimate for which they expect (and deserve) to be compensated since they’ve lost time being involved with a job they aren’t being paid for, yet State Farm wants to pay only the minimum charges. Juniper explains, “our charges are necessary to offset our lost opportunity. When we’re working on these total losses, that’s time we can’t work on jobs where we could make money, but the insurer does not want to understand that—that’s why we have to sue them. Other shops also have to perform these steps, and they should ask why they’re not getting paid for all of their time and hard work!” Over the past three decades, Juniper has been an active voice in the industry, speaking out against insurers and their attempts to exert control over the repair process. “Insurers have been beating on body shops for many years.

They used to just pay the bill, but over the years, they’ve decided that they don’t want to pay the labor times and rates. Instead, they want to argue about which steps are necessary because they are trying to control the repair itself. This industry has been beat down so far that many shops are going out of business; insurers have found the bottom on pricing and can’t push anymore because there’s nothing left. We have to charge them for our time because we can’t afford to work for free!”

Three-C Body Shops has specific areas to interact with and educate customers

Though Juniper admits that his relationship with State Farm is currently less than perfect due to the pending lawsuits, he hopes that will change after matters are settled. He also believes that he is taking a necessary step towards preventing shortpays in the future. “Nationally, there are over 70 body shops with pending shortpay lawsuits right now, and we need to win these battles to change things. With enough victories, maybe the insurers will change their behavior.” Three-C Body Shops asks their customers to sign documents, such as the Authorization to Repair and Assignment of Proceeds, to enable them to pursue proper compensation when the need arises. Juniper explains that they “involve the vehicle owner instead of dealing with the insurance company directly because the insurer is bound by a contract with the insured, but the problem is that many consumers don’t know the laws. Some are savvy, but others don’t understand or want to be involved; that’s what the insurers take advantage of and the reason that lawsuits are necessary… It’s not convenient, but this still has to

happen. I don’t see any other alternative.” A family-owned business since opening in 1956, Three-C Body Shops works on around 250 vehicles monthly, yielding $700,000 to $800,000 in sales. They have never participated in DRPs because when the insurers introduced these programs in the early 1990s, Juniper foresaw the negative aspects associated with them, predicting that they would start off good and get worse over time. Though he spoke out against DRPs, the industry moved forward, and he believes “most DRP shops now wish they’d never gotten involved, but we weren’t loud enough with our objections. DRPs have caused many body shops to go out of business. Once you’re dependent on them, you can’t afford to lose them—you’re unable to walk away because you’ve become reliant on the insurance companies.” Now, Juniper fears that insurers are using parts procurement systems, such as PartsTrader, to exert even more control over repairs, and he worries that insurers will take over parts distribution also, leaving shops as labor providers only and inhibiting them from supplementing their incomes with the price of parts. Be-

cause of this, many shops will be unable to pay some of their personnel, such as office staff, customer service teams and detailers, whose salaries aren’t paid by the estimates but by parts profits. “If the insurers absorb this discount, we won’t be able to afford these employees, so customer service will decline, and that will be the beginning of the next big problem for our industry,” Juniper predicts. Juniper notes that the industry did not stand up for themselves when DRPs were developed and they have since regretted it; he believes the industry will really regret it if they do not step up to inhibit parts procurement as it will lead to poor customer service in the collision repair industry, forcing repairers into a position where they are not making any money and may be unable to pay their bills. He asks “when and where does the collision industry say no? Because it’s time!” A State Farm spokesman was invited to comment but declined due to unfamiliarity with the specifics of the cases. Autobody News will continue to invite comment on this story for future issues.

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Continued from Cover

Aftermarket Parts Sellers

dees at the ABPA event that having grown up in her parent’s Baton Rouge business, Felder’s Collision Parts, she has a good understanding of the issues facing the non-OEM parts industry. “This industry hasn’t had a real friend in Congress,” Felder said. “For many of you who have been to the legislature, who’ve been up there trying to get some of these bills passed, fighting against some of the things that affect you, there aren’t a lot of real friends to the industry there, not a lot of people there who really understand this industry. And so it’s really important for you to pay attention to this race, and I’m asking for your support in this race.” One of the issues Felder mentioned she would go to Congress understanding is the “PARTS Act,” an ABPA-supported bill that would slash automaker design patent protection from 14 years to just 30 months. Felder also discussed the “devastating” impact that automaker parts price-matching programs have had on her parent’s business and others in the

non-OEM parts industry. She said she drafted the lawsuit that Felder’s Collision Parts filed in 2012 against General Motors, alleging that General Motor’s “Bump the Competition” price-matching program was an illegal predatory pricing scheme designed to drive nonOEM parts distributors out of business. (A U.S. District Court judge dismissed the case in April, but Felder’s Collision Parts has filed an appeal of that decision. See Autobody News June 2014 issue.) Felder asked ABPA members to support her campaign to represent Louisiana’s 6th Congressional District. She is seeking financial contributions (www.cassiefelder.com) both from individuals and through business political action committees. “Obviously there are a lot of issues that are going to be affecting my district,” Felder said. “But this industry has been so important to me and my family, that this was absolutely one of the industries I wanted to target.”

State Legislation Discussed State legislation related to non-OEM parts was also the focus of another presentation at the ABPA convention in Austin. Ray Colas, director of gov-

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ernment affairs for LKQ Corporation, told the non-OEM parts suppliers that the body shop industry seems reinvigorated. “PartsTrader is something that has motivated them, not only through legislation but also litigation,” Colas said. “With that momentum, they’re throwing us under the bus as well.” In the past, Colas said, most of the legislative challenges to aftermarket parts came from automakers. “But the body shops have really taken it over,” he said. “Now the automakers are supporting the body shop association initiatives.” Colas talked about a number of bills his company successfully lobbied against, including one introduced in Maryland last year that would have prohibited the manufacture, sale or installation of a counterfeit or substandard airbag. “Some of you may wonder: Why are we concerned about airbags? There are no aftermarket airbags,” Colas said. “Well, that’s true today. That doesn’t mean that in the future they may not exist. So we want to protect that market today in case in the future there is an opportunity for that. We don’t want to be restricted from

selling any alternative part.” Colas said after a “long, drawnout fight” and “a very, very close call,” aftermarket parts supporters were able to convince Maryland lawmakers this year not to pass a bill that would require insurers to pay for new OEM parts for repairs to vehicles manufactured within the previous three years. “Jordan Hendler (executive director of the Washington Metropolitan Auto Body Association, which backed the Maryland legislation) has done a great job educating these legislators, meeting with them year after year,” Colas said. “It’s something we really want to keep an eye on.” A lawmaker in Iowa also needed to be “re-educated” about the aftermarket parts industry, Colas said, after he introduced at the behest of body shops a bill that included a provision similar to the one in Maryland. Colas said that lawmaker’s district includes an LKQ facility. “We got there and told him, ‘Hey, you’re really going to affect our business,’ ” Colas said. “This is how many jobs we have in your district.” Colas said the Iowa bill also included provisions prohibiting an insurer from recommending a shop without

also telling the customer they aren’t required to use a recommended shop, and from requiring a shop “to use a specific vendor or process for the procurement of parts or other materials.” Colas said those provisions will likely be included in a future piece of legislation. “There will be a bill that’s reintroduced, but it will not include the aftermarket parts restriction,” Colas said.

PartsTrader addresses questions Ken Weiss, director of business development for PartsTrader, also spoke at the ABPA convention, just days after his company completed national roll-out of its system, now reportedly used by more than 7,500 body shops and 8.500 parts suppliers. Weiss said that by the end of this past April, parts lists from more than 700,000 estimates had been put out for quote through PartsTrader, and more than 1.25 million orders totaling more than $450 million had been placed through the system. Weiss said although State Farm “is a little bit restrictive with regard to aftermarket parts,” he expects nonOEM parts orders through the system to increase as shops use PartsTrader for non-State Farm jobs.

He cited a number of benefits that PartsTrader offers suppliers, including “increased sales opportunities and fewer parts returns.” However not everyone at the ABPA convention agreed with Weiss on this last point. “We have not noticed a lower return rate on (parts ordered through) Ken Weiss PartsTrader versus phone calls versus faxes versus anything,” Bob Petty of Collins Collision Products in Loveland, CO, told Weiss. “Our return rate is higher than it’s ever been in the history of the company.” Petty also asked if returned parts are taken into account in the fees PartsTrader charges to suppliers, which are based on average monthly sales. Weiss said they are, provided that parts purchased through the PartsTrader system are also returned though the system.

“We all know the games today where repairers will buy multiple parts, sometimes just to get a receipt that they can show somebody else, and then return the part,” Weiss said. “With the PartsTrader system, you can only buy a part once unless you return it. Then you can buy the part again from another supplier. So we think that will avoid some of the games and will help bring down the returns.” Weiss was asked if there’s a way for a shop to bypass the system to return a part. “Only if you let them,” Weiss told the parts distributors. “If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return.’ If they don’t want to return it through the system, then, I hate to say it, but they are probably up to no good.”

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AutoZone Names Dornan Products Vendor of the Year

AutoZone, Inc., a leading distributor of auto parts and accessories, recognized Dorman Products, Inc. as its Vendor of the Year during the company’s annual AutoZone Vendor Summit held in Memphis, Tennessee. “Dorman exemplifies an industry-leading vendor. The Dorman organization is dedicated to innovation, collaboration and speed to market,” said Bill Rhodes, President and CEO of AutoZone. AutoZone also recognized a group of suppliers with the company’s Extra Miler Award.

Ohio Appeals Court OK’s Line Measurement for Dealership

An Ohio appeals court on June 12 upheld a lower court’s ruling in a dispute between two Nissan Motor Co. Ltd. dealerships contesting the proper method of measuring the distance between an established dealership and a proposed one, saying it can be calculated by measuring a straight line between the two spots. The three-judge panel affirmed the trial court’s judgment in favor of M6 Motors Inc., owner of Nissan of Middleburg Heights.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 17

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

On Creative Marketing Ding Day–A Marketing Tactic with Thomas Franklin

Shop owners with a shop in a metropolitan area see many vehicles with minor dings, dents, scratches and more, all around the city. Many of these drivers have tolerated these imperfections on their vehicle for weeks, months and possibly even years. Why haven’t they done something about these eyesores? Maybe the discomfort of driving around with these flaws simply hasn’t been great enough to motivate them to fix them. Or maybe they imagine the cost, not only in terms of money, but also in considering the inconvenience of being without the vehicle while it’s being fixed, is too great to bother. If a shop mainly relies on insurance or dealerships for work, this may not be an interesting marketing move. But if a shop seeks to bring in new customers and add to a database of marketing targets, this could be a real opportunity to increase the shop’s volume and potential volume of business.

In general advertising a collision repair shop is mainly done to make a shop’s name, location and reputation broadly known. When viewers of the ad may not have an accident for three or more years in the future, getting an immediate response is only a peripheral intent of the ad. But the advertising campaign I’m proposing here, aimed at a great many drivers with minor body damage, could produce an immediate volume of responses if handled right. The proposed ad should offer a “Ding Day Special.” The two vital aspects of the ad must be that it will be low cost, and with very little time commitment. For the bold shop owner, the ad could also offer “No risk—your money back if not completely satisfied.” Some owners might hesitate on this one, but statistically the no risk offer increases responses significantly. An additional attraction to be offered by the tech-savvy shop would be an

on-line inquiry and approximate estimate for potential customers. The prospective customer simply uploads a photo of the damage and the shop gets back to him or her with an approximate repair time and cost. To make the “Ding Day” routine work well, a shop must commit significant resources to getting vehicles completed and out quickly at reasonable cost. The real profit should not be in the limited scope of the minor repair. Instead it should be viewed as a sales opportunity. This is a chance to collect many customer information forms filled in with vital marketing information. It has to collect information on all vehicles owned by the customer’s family and employer and any other vehicles in need of repair. It should have his or her insurance agent and possibly organizations the customer belongs to that could be marketing targets. Filling in of the form can’t be simply handing it to the vehi-

cle owner, leaving him or her to omit many important marketing bits of information. The estimator or a welltrained front desk person should make certain most of the requested information is captured. And this is just step one in capturing this vital sales opportunity. While it may be possible to talk the prospect into bringing in another vehicle that needs repair right then and there, this could be shortsighted. In order to keep the turn-around time short, it could be better to solicit work on other vehicles with followup calls. If the customer was pleased with a quick turn-around, the estimator should get a welcome response when making the follow-up call. This call would also be an appropriate time to ask for permission to call the customer’s business and social organization connections to make the shop known to them. This tactic has worked well with Amway

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and Avon solicitors and builds an ever-expanding network of related individuals for marketing purposes. When there is reluctance to pass along phone numbers, these days asking for an e-mail address or even Facebook connection could get an easier response. Perhaps the greatest difficulty getting this tactic to work is the problem of where to advertise and how to reach the greatest number of prospective customers. Today print ads have limited value as people turn away from printed newspapers and get their news on-line. TV ads are generally too expensive, but radio ads could be a real possibility in some areas. Online ads are essential.The ad has to be direct and simple. It should start with the key question: “Are you tired of living with that ugly dent, ding or scratch on your vehicle? For a limited time we are offering a very low-cost, fast turn-around repair to restore your vehicle to its original beauty. And we’re located close enough for you to drop your vehicle off in the morning and pick it up, possibly as early as noon. Call us or e-mail a quick photo of your damage and we’ll give you an approximate estimate immediately.”

CCAR and ShipMate Launch Improved HazmatU website

CCAR, the Coordinating Committee for Automotive Repair, and ShipMate, Inc. announced the launch of their new website, www.hazmatu.org. This intuitive new site is specifically designed to be easier to use and easier to access for all HazMatU training and resources. CCAR provides tailored information and resources for OEM dealers, collision repair centers, schools and mechanical service centers. The new website communicates updated news, events and services to HazmatU customers in an easier, faster and more user-friendly layout. ShipMate, Inc. works with clients to help resolve their most demanding dangerous goods transportation, environmental management and safety issues. ShipMate provides creative ideas and cost effective solutions to resolve and manage their many compliance challenges.

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Historical Snapshot with John Yoswick

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

Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection 20 years ago in the collision repair industry (July 1994) If the collision repair industry does not get clearly focused on what the mission is, it will be doomed to dance to whatever tune the insurance industry wants. Probably something like that old AC/DC hit, “Highway to Hell.” Bill Clinton was elected president of the United States because he kept the country focused on the economy. (His slogan, “It’s the economy, stupid,” became famous. To win in their ongoing economic struggle with the insurance industry, collision repairers have to concentrate on the car owner. “It’s the car owner, stupid.” Collision repairers are too busy tripping over their own swords to realize that pleasing the car owner every time is a key to survival. Instead, many are more worried about pleasing the insurance companies. They claim that since it’s the insurance companies who are writing the checks, it’s the insurance companies they should be satisfying. Ultimately, though, it’s the car owners who write the checks. They, after all, pay the insurance premiums. I predict that in another 10 year, the American public is going to wake up and realize how monstrous a financial institution the insurance industry has become. – excerpted from editorial by Sheila Loftus, editor of Hammer & Dolly published by the Washington (D.C.) Metropolitan Auto Body Association, July 1994

15 years ago in the collision repair industry (July 1999) CIC’s “Research and Development Committee” is continuing its exploration of a ”new body shop operating model” to improve customer service and “cycle time” – the length of time between the accident and the time repairs are completed and the insurance file is closed. At the meeting in July, committee chairman Randy Stabler said the average repair claims process is 10 days – including four or five days before repairs begin. His committee, he said, is looking into ways to reduce the inefficiencies before repairs actually begin, including the current estimating process. “All of the things that are bottle-

necks in the repair process are a derivative of an inaccurate estimating system,” Stabler said. “The back-end repair process is never going to be efficient and accurate if we don’t start out with an accurate blueprint.” Among his committee’s initial recommendations are: - Improve the estimating systems so that they create that “blueprint for repair” in plain language easily understood by technicians and vehicle owners. “If the estimate is more than just an accounting of what we’re going to charge or pay to fix the car, I think we’re going to have faster cycle times, happier consumers and lower overall costs for everyone,” Stabler said. - Reduce inconsistency in parts names and labor terminology used by the estimating systems and vehicle manufacturers. - Eliminate confusion and inefficiencies by having insurers distribute their pricing guidelines. - Stop insurer “micro-management” of each individual repair charge. “Can you imagine someone going in for surgery, and the doctors finding something else that needed to be done but not doing it because they had to stop and call for authorization?” Stabler said. “That’s not an efficient model. ‘Pull it and we’ll come back and see the damage after it’s pulled’ is a flawed notion. That in the long run does not save the insurer or consumer money.” – As reported in The Golden Eagle. It was at least five years before the “blueprinting” aspect of “lean processing” was being widely discussed in the industry, and still 15 years later it is far from universally adopted by shops.

10 years ago in the collision repair industry (July 2004) The Collision Industry Conference (CIC) “Information Technology Committee” reported that rekeying estimates that shops could be receiving electronically from insurers is costing the industry an estimated $17 million or more each year. Based on a survey of 44 shop owners at a previous CIC meeting, the committee believes that about 28 percent of the 9 million auto claims require rekeying of estimates, which takes an average

20 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

of 21 to 33 minutes per estimate. Assuming a wage of $20 per hour for the shop employees rekeying the estimates, “that basically says there are 2.52 million estimates that are rekeyed each year by body shops, costing a minimum of $17.64 million,” Cindy Schnier, cochairman of the committee, said. –As reported in Autobody News, July 2004. In 2013, CCC Information Services and Mitchell International launched services that enable a participating insurer to enable shops not on that insurer’s DRP to download the insurer’s prepared estimate, eliminating the need for the shop to rekey the initial estimate.

5 years ago in the collision repair industry (July 2009) Shop owner response was mixed last week to the announcement by State Farm that it was no longer requiring its Select Service shops in California and Indiana to use OEConnection for electronic parts ordering.

Debbie Moore of Diamond Collision Services in Avon, Ind., said that despite some glitches with the system over the past year, it has eventually worked well for the shop. “We’ve been using it on all our orders, not just State Farm jobs, and will continue to do so at least for now,” she said. But a Southern California shop owner who asked not to be identified said State Farm’s decision came at an ideal time; his shop’s server had just crashed and he now wouldn’t have to reload the OEConnection parts ordering software on the replacement computer. “It’s kind of been a pain, and some of my dealers really didn’t want to mess with it,” he said of the parts ordering system. “You almost always had to do follow-up phone calls (to the dealer) with it, so if I have to do that anyway, I can do without it.” State Farm’s George Avery said See Historical Snapshot, Page 28

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 23

Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion by Ed Attanasio

Kevin Walli has been the lobbyist for the Alliance of Automotive Service Providers (AASP-MN) for the past 20 years. He is a shareholder in the law firm of Fryberger, Buchanan, Smith and Frederick in St. Paul, MN. We got in touch recently to discuss the recent history of legislation that has impacted the collision industry in Minnesota in the past five years.

Q: How did you become the lobbyist for the AASP-MN? KW: I’ve been representing the collision industry in Minnesota for 20 years now, after working in government affairs for many years prior to that. A friend of a friend knew someone at the AASP-MN and told me they were looking for some representation and more support at the Capitol. Over the years, we’ve been working hard to provide more balance between the interests of the collision industry and the insurance industry, because there’s an ongoing tug-of-war there obviously. I believe that there has been a constructive approach by the two industries to try and

communicate with one and other. So, what we’ve done for several years running is that we sit down usually a few times per year to air out our issues and sometimes there’s a response from the insurance companies that indicates Kevin Walli, Esq. that maybe we can has been the lobbyaddress some of ist for the Alliance of Automotive these issues ourService Providers selves. But in other (AASP-MN) for the cases, we end up past 20 years, so he’s seen the ongo- saying let’s agree to disagree and arm ing tug-of-war between shops and wrestle it out at the insurers from the Capitol. Capitol’s front row

Q: You’ve dealt with legislation regarding steering? KW: Yes, and we’ve had some success with legislation concerning steering. We’ve been able to find more clarity on the laws dealing with steering, so that we can understand what steering is and provide some direction in the law. The purpose of the language is obviously to protect con-

sumers from being steered and we’ve had some success with that. Steering has always been an issue and it still is in many ways, so we’ve developed legislation to address that. We sought language a few years ago to prevent an insured or claimant from being required to take their vehicle to a particular drive-in claims center and we were able to get that changed. We also added a section that restricts an insurer from specifying the use of particular vendors for the procurement of parts or other materials necessary to perform a satisfactory repair. Now this very issue is still being contested.

Q: There’s been a battle in Minnesota between the insurance companies and the body shops, because the insurers want the shops to use certain parts, products and management platforms, correct? KW: Yes, we had some legislation this year that we did not succeed with (House File 2690/Senate File 2542the Auto Repair Claims Processing Bill) that would have prevented insurance companies from dictating certain business practices at repair shops. I

think there’s a sense with the body shop owners in Minnesota that there are more and more situations in which insurers are dictating what estimating systems and materials they should use. And we’re concerned that it’s a slippery slope where the insurance companies will take away the autonomy of the collision repair shop owner. We had some proposed legislation that would have restricted insurance companies from specifying or requiring that repair shops have to utilize specific vendors, manufacturers, suppliers, business platforms or internal processes and we got the bill introduced and some great authors for the bill both in the House and in the Senate. But ultimately, we couldn’t get movement for the bill on the Senate side. The Chairperson there (Senator Jim Metzen, who was also a co-author of the bill) was uncomfortable with the onslaught of input he received from the insurance industry. Some of what they had to say was legitimate, and some was not, but that’s not unusual. When we proposed the legislation and it was circulating at the Capitol, the insurance industry came

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forward and said that they hadn’t heard of this bill. They said “Hey—we’ve had this practice for several years of discussing legislative proposals with the collision industry in advance of the Legislative Session.” They argued that they hadn’t had such a discussion on this proposal. In addition, this year’s Legislative Session was shorter with very tight deadlines for getting bills heard, so that also played a role in the death of the bill. But, we’re going to bring it back in a new form, after getting some valuable feedback from the insurance side. They said that we were trying to kill the DRP system, which was never our intention at all. So, we have to address that issue and re-work some of the language the next time around, so that it’s clear we’re not trying to change the fundamental relationship that exists between body shops and insurance companies. Q: I imagine you haven’t been supportive of programs like PartsTrader? KW: Exactly, because our concern has always been that if a body shop is required to use a particular parts vendor, the shop doesn’t have a relationship or

a history with that vendor. As a result, parts that aren’t appropriate for the vehicle can enter the picture, because the communication between the shop and the vendor is not present. Shops spend a lot of time and effort to developed business relationships with particular parts vendors and then all of this goes out the door when they are forced to work with someone else they don’t know anything about. In addition, we have had an ongoing dialog with the Department of Commerce regarding its enforcement and there is an investigation that’s open in this matter and the Department of Commerce is continually gathering information about how PartsTrader system is working or not. We were hoping that the statute would provide enough guidance for enforcement action. But now they’re gathering information and studying the marketplace and as an industry we’re trying to provide information for the Department of Commerce in this matter. Some time ago, we also added language to the same statute that “prohibits an insurer from unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system…” This means, if you’re

using an estimating system that you and the insurance company have both agreed that it’s acceptable to use, then they can’t deny the repair operation and cost without some clear justification. This kind of shifts the burden to them and it’s now their responsibility to prove the repair practice should not be recognized.

Q: What other issues have you’ve tackled on behalf of the members of AASP-MN? KW: We had to deal with some tax provisions in recent years. There was a sales state tax on paint and supplies for shops when they were purchased at wholesale. But, we were able to shift the point of imposition on the tax from the wholesale to the retail level. That way, shops are able to pass that tax onto the consumer. The repair shops were eating that tax cost before. Most of the other states were already doing it this way and Minnesota was kind of an island in that regard, so the legislation was much-needed.

Q: You have an annual Legislative Day where shop owners can meet with their legislators, right? KW: We’ve been doing a Day at the

Capitol on occasion, where we meet with our members and give them an orientation of how things work at the State Capitol. Then, we ask them to talk with their Representatives and Senators and walk the halls to discuss the legislation we’re working on. The insurance industry is extremely wellrepresented and they have a lot very smart people working for them, both in-house people as well as consultants that they’ve retained. The sheer numbers can be rather daunting at times, to be honest. So having the shop owners converging at the Capitol and meeting with their Legislators puts a practical perspective on our issues--so it’s been a very positive thing. Plus, it helps me to do a better job for the AASP-MN, because after these Senators, for example, have met with one of their constituents, we can follow up to emphasize the point made by the shop owners.

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Southwest Associations

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

LaCIA Hosted Louisiana Attorney General at May 22 Meeting with Chasidy Rae Sisk

On Thursday, May 22, the Louisiana Attorney General’s influence in itself the repair professionals are responsiCollision Industry Association (LaCIA) is beneficial to legislative initiatives ble for properly fixing their customers’ held a meeting at the Hilton Garden Inn since politicians are less apt to ignore vehicles, plus if a shop has a signed to update members on the direction the their pleas for help. They also plan to work authorization from the customer association is taking and their upcomproduce some ad campaigns to advise and the insurer sends their vehicle to ing plans. Featured speakers included Attorney General Buddy Caldwell and his assistant AG, Randy Ishee, who updated attendees on their efforts. Executive Director Alysia Hanks notes, “overall, the meeting and turnout was excellent, and I think the Attorney General is on top of things! He was present with some of his other attorneys who are working on our issues, and they had some great updates to share with us. I LaCIA’s Board of Directors meet with their guests (l to r): Chris Medine, Randy McLachlin, Alysia don’t think I’m alone when I say this, Hanks, Derek Stubbs, AG Buddy Caldwell, Lynn Lejuene, Asst. AG Randy Ishee & Pat Graham but Mr. Caldwell very much exceeded my expectations with what he and his consumers to read their insurance another facility, that is a breach of constaff of lawyers have accomplished so policies and encourage them to un- tract for which they can be sued. far. I heard the comment ‘blown away’ derstand their rights during the repair The Louisiana Attorney General’s when I asked others to describe the process. Attorney Stacy noted that the office is working with several other Atmeeting. Mr. Caldwell and four other Attorney General’s office may also torneys General throughout the South, attorneys are now working non-stop on look into possible tax evasion on the and they have also reached out to their our issues.” part of the insurance companies. De- state’s Insurance Commissioner’s ofThe meeting began with Chairman spite this progress, Hanks cautions “it Lynn Lejeune welcoming attendees and will take a while to get this situation leading the group in prayer, followed by we find ourselves in today resolved, Vice Chairman Derek Stubbs who inor even to see any movement on it. troduced LaCIA’s Board of Directors We did not get into this situation and discussed some of the association’s overnight, and it won’t go away that goals and accomplishments. fast either. We need to have patience.” When Caldwell was introduced, he Next, Ishee updated attendees on assured the group that he and his team several matters, beginning with the are working diligently on resolving the fact that he cannot comprehend why collision repair industry’s issues, and he provided an update on their progress thus far. Because State Farm is the largest insurance company in LA and all other insurers follow their lead, he first set his sights on this insurance giant, learning that they did put up the money for PartsTrader. His office has also begun a Civil Investigation Demand where Executive Director Alysia Hanks (l) with Attny General the Attorney General orders Buddy Caldwell (m) and Randy Ishee (r) from the LA Dept of Justice the insurance companies to produce documents which they would any repair facility would willingly join not ordinarily produce in a regular depa DRP since he can find nothing in osition, such as surveys and internal those agreements that benefits the policies; he also pointed out his finding shops whatsoever; his feelings about that insurers aren’t even attempting to PartsTrader are the same. He noted hide the fact that they are steering their that by signing those agreements, it customers to DRP facilities! was like relinquishing ownership of Although his office is still in the the shop to the insurance company. discovery stages of the process, the Furthermore, Ishee emphasized that

26 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

fice to inform them that they will be pursuing State Farm, with or without the Commissioner’s support. Hanks recalls, “they wanted to make it clear what their main objectives were, and that was to attempt to get rid of DRPs, to get things changed through legislation, and to make sure everyone knows the law on both sides. They want insurers to stick to what they do, which is writing policies, and let the body shops do what they do, which is fixing cars. They believe the insurers shouldn’t have their hands in our businesses.” After the Attorney General’s presentation concluded, several additional speakers provided updates on some industry trends. Abel Cantrell of Advantage Collision Center in Houma, LA, spoke about who really owns your shop, you or the insurance company, and he also distributed instructions on “How to Use Twitter” so no one has an excuse not to get connected to other See LaCIA Meeting, Page 29

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 27

parts ordering. “We encourage the repairers to use it if they would like,” he said. “It works. It has advantages. Now that the test is done, we know moving forward that we have already tested that functionality.” State Farm began the test of electronic parts ordering in two markets in 2007, with a half dozen automakers offering the insurer parts discounts through the program. The program was rolled-out in 2008 to all Select Service shops in the two states, but the number of automakers offering discounts continued to decline until State Farm halted the discount portion of the test earlier this year. – As reported in CRASH Network (www.CrashNetwork.com), July 20, 2009. State Farm subsequently said it seemed inappropriate to seek OEM parts discounts at a time when automakers were struggling economically and in some cases filing bankruptcy. But it saw enough potential benefits to electronic parts ordering that it sough proposals from companies to develop an electronic parts ordering system – which led to the launch of State Farm’s mandated use of PartsTrader in 2012.

Continued from Page 20

Historical Snapshot

although the insurer was “suspending” the requirement to use electronic parts ordering and had no plans to roll

Cindy Schnier, co-chairman of the CIC Information Technology Committee in 1999, said her committee’s research indicated that rekeying of insurer estimates by shops was costing the industry more than $17 million a year in wasted labor

such a program out nationally, State Farm saw the test as valuable because it demonstrated electronic parts ordering “has value.” He noted the Select Service agreement still gives the insurer the right to require electronic

AudaExplore has pledged a threeyear commitment of $75,000 in tool grants that will be awarded to all high school and post-secondary collision repair and refinishing students competing at the national SkillsUSA contest. By working together with industry companies and their student product discounts, the retail value of these tools will exceed $150,000. The tool grants are meant to recognize the students’ outstanding efforts in qualifying to compete at the national SkillsUSA event and help prepare them for careers within the collision industry. “This donation aligns well with our LIFT charitable giving program, which focuses on helping those in need to build sustainable roots for lasting change,” said Rick Tuuri, vice president of industry relations, AudaExplore. “The U.S. Department of Labor projected the employment growth of the automotive body segment to be 13 percent from 2012 to 2022. SkillsUSA and the Collision Repair Education Foundation have done a fantastic job enhancing career opportunities for students to take advantage of this growth, and we are proud to be a part of it.”

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The photo cove in the SEMA Garage—Industry Innovations Center opened for business last month, as celebrity builders Pete Chapouris and Jimmy Shine of So-Cal Speed Shop utilized the studio to photograph a celebrated project car they are building for rock guitarist Billy Gibbons. Large enough to fit a full-size vehicle and complete with a 30”x10” adjustable light box, the photo cove will help SEMA members develop low-cost, professional marketing pieces for their new products. SEMA Garage services include a training facility, an emissions-certification lab and chassis dyno. “The SEMA Garage is able to help SEMA members throughout the entire product development cycle,” said Mike Spagnola, SEMA VP of OEM and Product Development Programs. Spagnola says that members can measure new vehicles for products using a portable coordinate measuring machine (CMM). A prototype can then be developed from SEMA’s 3D printer, before being tested in the dyno and emissions lab. “The SEMA Garage can literally cut the entire product development process down to six weeks,” said Spagnola.

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Continued from Page 26

LaCIA Meeting

shops. Ray Gunder of Gunder’s Auto Repair in Lakeland FL discussed how insurers pushed him to the edge and why he started suing them to get things done, nothing he has not lost a case because “right is right!” Next, Mike Parker of Parker Auto Body in West Monroe, LA, shared the measures he has taken to maintain control of his business which includes installing

video and audio surveillance in and around his shop as well as a module to record every call made to or from his business. LaCIA’s Board of Directors is very grateful to all of their guests who spoke at the meeting. Vice Chairman Derek Stubbs said “we have to be excited about the turnout and have to keep the momentum we are establishing going in a positive direction and not let it slip away.” Board member Pat Graham believes the Attorney General and his staff “had a very positive vibe that I

think was felt by everyone.” All in all, Hanks believes the meeting “was an incredible success! We are taking back the industry ladies and gentlemen!” LaCIA will hold their next meeting on July 8 in Lafayette. www.la-cia.com

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Chief Will Sponsor SkillsUSA for the 28th Consecutive Year

For the 28th consecutive year, Chief Automotive Technologies will sponsor and supply equipment for the Collision Repair Technology (CRT) Championship at the SkillsUSA National Leadership and Skills Conference. The conference, which features student competitions in more than 90 disciplines, will be held June 23-27 in Kansas City, MO.

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Western Associations

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

Tech Turned Tool Designer Headlines EB-CAA May Meeting with Ed Attanasio

Francesco’s Italian Restaurant in Oakland, CA was the place to be on May 20, especially if you were a member of the East Bay Chapter of the California Autobody Association (EB-CAA). It was the association’s spring dinner meeting and featured a program with three speakers discussing three distinct segments of the collision industry. Tim Brusher from Honda’s ProFirst Program discussed the importance of OE certifications in today’s collision industry while reviewing Assured Performance Network’s Certification Program; Karl Kirschenman from Alldata made a presentation entitled “Creating Customers for Life” and Tim Gerhards, a former body tech turned tool designer presented his line of collision repair

Tim Gerhards, a former body tech turned tool designer presented his line of collision repair tools during a presentation at the East Bay Chapter of the California Autobody Association’s May dinner meeting

tools during a presentation he called “Tool Time with Tim.” More than 30 collision professionals attended the meeting as they dined on Italian cuisine and networked with fellow body shop owners, local vendors and prospective EB-CAA members. Gerhards’ story will resonate with anyone looking to make a better mousetrap, or in this case, an improved way of skinning a car door. Many great inventors started out the same way as Gerhards did. In fact, Thomas Edison was a salesman before inventing the phonograph and the light bulb and Henry Ford was a machinist before he founded Ford Motor Co. Both saw a

burning need and found solutions by inventing tools that can make our lives easier. And that’s why Tim Gerhards embarked on a journey that eventually led this collision repair veteran to his first invention and six other tools that he subsequently designed—all of which are currently being used for a wide range of applications worldwide. It all began one day when Gerhards was skinning a door while working at B & J Body Shop in Rancho Cordova, CA back in 2001, he explained. “This procedure normally requires lots of hammering and dollying and walking around the entire door frame and beating this metal over and over until you get what you need. It puts a ton of wear and tear on your hands and it’s time consuming. I kept asking myself ‘how does the factory do this?’ and I just began experimenting with a better way of doing it.” So one day Gerhards picked up a piece of wood and shaped it into a crude tool that would enable him to bend the door’s flange over and flatten it out at the same time. After testing it and tweaking it a little, Gerhards realized that it worked and named it the Skin Zipper. “I realized wow—I need to patent this thing,” he said. “This tool takes a two-hour repair and cuts it down to about 10 minutes with a hammer, so I thought shops are going to love this thing.” After more than 40 months, Gerhards received his patent and jumped into the inventor’s world with both feet. “I immediately joined a local inventors’ group and was advised to market the tool at a trade show. So I went to NACE in 2009 and showed the Skin Zipper to everyone I could find. Steck Manufacturing called me back after NACE was over and showed some interest in manufacturing and distributing the tool. It was a great moment, because all of the work I had done on designing it and developing it were finally paying off.” Since inventing the Skin Zipper, Gerhards and Steck Manufacturing in Dayton, OH started working together on more tools, he explained. “The people at Steck must have been pleased with the Skin Zipper, because they were interested in pursuing patents for anything else I could think of, Ger-

30 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

hards said. “Those products include a MIG Light, Panel Shaper, Workstand Clamp, E-Z II Strip Molding Tool and a Handipull Kit that consists of a series of eyebolts that screw into weldedon nuts to allow for light pulls all around a vehicle. Once I get into that inventor’s mindset, the ideas just kept coming. As a tech, I was encountering difficulties all the time during repairs, so I started asking myself, how can I make a tool to solve these problems?” Gerhards’ success with Steck has inspired him to create his own company, TG Products, to manufacture and market other inventions on his own. TG’s first product is The Rail Saver, a system that repairs damaged side members and frame rails. Last year, Gerhards was able to finally step away from his job as a body tech to pursue his dreams as a tool designer and inventor full-time. He strongly believes that the collision repair industry is primed for new exciting tools, to be made by people who actu-

ally make the repairs, just like him. “Many collision repairers have the skill sets to build their own prototypes, because they already know how to weld, shape metal and build prototypes,” he said. “In this business, we’re all constantly encountering situations where there is no tool. So, I know I’m not the first person to ever rig something to get the job done and I surely won’t be the last. One of the biggest problems is that people are reluctant to show their inventions to anyone, because they’re afraid of them getting stolen. Or they think it’s worth more than it really is and think they’re going to be millionaires overnight, which is totally unrealistic.” Gerhards advises aspiring inventors not to go to invention submission companies. Instead, he says they should join a local inventor’s organization at the United Inventors Association or www.uiausa.org. For more information about any of his tools, visit his web site at: www.therailsaver.com.

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Southwest Associations with Chasidy Rae Sisk

New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members Invited to Join Southeast Associations the perfect opportunity to present their The newly formed Auto Body Associfor a new association. Richards beation of Texas (ABAT) be holding withwill Chasidy Raeidea Sisk their Inaugural Meeting on June 18th lieves that a contributing factor to the positive reception at the Henderson Civic Center with they received this guest speaker Barrett Smith, President time around was and Founder of Auto Damage Experts “the fact that PartInc. Burl Richards, Acting President sTrader had begun of ABAT, took some to explain withtime Chasidy Rae Sisk to be implemented, how the association is getting started and these local and what they hope to achieve through shops were truly its development. Barrett Smith of beginning to see Several months ago, a local jobADE will be the that we had better ber, Chad Neal of Paint Works in featured guest join together or the Tyler TX, held an educational seminar speaker at ABAT’s with Chasidy Rae Sisk Inaugural Meeting insurance compaon estimating which included a numon June 18 nies were going to ber of Eastern TX shop owners. Neal and Richards had previously dis- continue to control more and more of cussed the need for a trade association our businesses… [Neal and I] basically in their area, but when Richards tried capitalized on the opportunity that preto organize an association meeting a sented itself with shops from all over with Chasidy RaeEast Sisk Texas being present.” year earlier, he garnered little interest For the past three months, and participation. Thus, when Neal held the estimating Richards has been working with his local attorney to set up the Corporate seminar earlier this year, they saw it as

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Filings for the new association, yet a handful of shop owners have contributed to organizing ABAT. “This would not be happening if not for the enthusiasm and excitement shared throughout our region. Everyone has been more than willing to assist and contribute when asked. It’s really been more about spreading the word, and once others hear about what is happening, they know that they are not alone and begin to realize that together we can truly take back our business for the best interest of our customers and the industry as a whole,” Richards states. Richards and those involved with organizing ABAT are also grateful to John Mosley of Clinton Body Shop and Doug White of Capitol Auto Body for donating their personal time and funds to travel from MS to TX to address shops about the benefits of an organized auto body association in a second meeting held to gauge interest

in ABAT. According to Richards, “their presence, being from an outside area, really motivated others to get involved.” Though ABAT was originally going to be called the East Texas Auto Body Association, they were unable to obtain the name, opting instead for ABAT which Richards feels “was just meant to be… [it has been] fitting as we have received interest from shops and vendors throughout the state. We welcome members from all over Texas.” While ABAT is still in development, Richards notes that their main goal thus far is to “take back our shops. We repair vehicles, and insurance companies sell insurance; it’s that simple! Who knows better and is more qualified to make these repairs than us? We work for the customer, so it is our responsibility to properly repair and restore their vehicle to pre-accident condition.”

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ABAT will also strive to provide more education, both from a technical standpoint and as it pertains to shops’ rights without solely relying on what insurers mandate. Along with that, ABAT plans to investigate legislation that will promote beneficial change for the consumer, rather than the insurance companies whose focus is on saving money. Richards add, “we will address more concerns legislatively as we progress as an association and begin identifying specific issues. For example, profit margins have decreased over the years, and we must become more profitable in order to provide the training and equipment necessary to perform repairs to the ever-changing technological advancements on today’s vehicles – and that can honestly be accomplished by being compensated for all repairs and processes that must be performed (not just the hand-picked operations that insurers want to pay for).” Since their initial meeting early this year, Richards has been very pleased with the number of repair professionals who have expressed interest in ABAT. “The response that we have received has been more than I could have imagined. Going back to

just six months ago, I felt like I was on an island by myself, and now I have more faith and excitement about the future of our industry than ever. We will put the customer first, and everything else will take care of itself; good things are about to happen!” Smith also took time to speak about the upcoming meeting, and he is excited to speak at ABAT’s meeting with the “intent to generate excitement and to enlighten and edify Texas repairers in several areas.” Smith plans to discuss three main topics, including Federal Antitrust Laws, Procedures and Labor Rate Surveys. To begin with, he explains that o Federal Antitrust Laws “are fairly simple, yet often misunderstood, and have been used in the past to stifle conversation between repairers out of fear of punishment. I will be giving a layman’s overview of the true nature of the laws, why they exist and how to avoid breaching them regarding what can and cannot be discussed. Federal antitrust laws exist to promote and protect competition. They are to govern the activities of businesses in our country and are designed to be safeguards against activities that may be harmful to the consumer, business

competition and the economy.” “Procedures are also an important topic because many required repair processes and necessary materials go unpaid, and these overlooked and often omitted processes and create significant liability issues for the repairer that need not occur.” Smith plans to highlight these important aspects of the business operation and how to avoid these unnecessary liabilities. He will also be introducing the Variable Rate Survey (VRS) program offered by the National AutoBody Research, Inc. which “provides a viable and labor rate survey to show repairers, consumers and insurers the range of labor rates based upon the individual rates and allowances of participating repairers in a given area. Ranges of labor rates from an area comprised of repairers within mere miles to participating repairers across the country. The VRS not only provides participants the labor rates of repairers within various markets, the program shows them in real-time and can change based upon a repairer’s change in rates, training, certifications, equipment and such. This defeats those socalled surveys which lump all repairers together and provides the

same labor rates for the best of the worst to the worst of the best!” As the President and Founder of Auto Damage Experts, Inc., Smith believes that one of the most valuable services his company offers is Repairer Consulting and Coaching for those who offer high quality workmanship and services. He states, “regardless of their size, all ADE consulting/coaching clients have the same fundamental characteristics in common: integrity and the courage and conviction to do the right thing for the right reasons. What we do is to help them to step outside the box that is often built around them by ‘interested third-parties’ and to see things in a more common sensical and pragmatic manner. This enables them to modify their business acumen and methods of conducting business which is found to be much more profitable and enjoyable.” Smith hopes to share his experience in this area at ABAT’s meeting in order to aid this developing association and its members.

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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

Lean Operations

Using an Outside Expert to Improve your Competitive Position with David Luehr

I received a call last month from a dear friend of mine on the West Coast. I’ll call him Paul here, but that’s not his real name. His voice was shaky and he was clearly upset. Paul told me that one of the big MSOs had recently acquired a shop just down the street from him and at first he wasn’t too concerned, but now he was extremely concerned. My friend has always ran a very good shop, so I asked him what he was so worried about to which he replied, “I hate to admit it, but these guys are better than I thought and I am losing business to them!” You see Paul’s biggest DRP provider put his new big MSO neighbor on the same program even though they are only a block apart! What’s more, Paul was told by his DRP coordinator that unless his shop improved its KPIs, his new neighbor was going to be receiving the lion’s share of the business. Paul’s story is not an isolated one. Knowing Paul, he will figure out

a way to compete and win, but he is going to need some help. Everyone in the collision repair industry knows how challenging it has become. DRPs are demanding more, Consolidators are growing faster than ever, and profits are shrinking. The shops that are serious about competing in this game need to quickly improve their position in the marketplace by performing at unprecedented levels. This document is intended to show the reader that many of the advantages provided to large MSOs can be afforded to any shop serious about transforming their business through using an outside firm to provide many of the services. Organizations like Service King, ABRA, Boyd Group, etc. have systems in place that give them a very strong presence in many major markets in this country. These systems allow for consistent and predictable results in quality and customer serv-

ice. These systems when combined with the footprint of the consolidators, gives them a very lucrative “seat at the table” with all major insurance carriers. While each MSO is slightly different in their approach to centralized resources, this is a generalized list of advantages that large MSOs have over the rest of us… ■ Assurance of DRP affiliation when opening new locations ■ Centralized Human Resource Departments ■ Centralized Accounting ■ Centralized Customer Call Center ■ Centralized Load Leveling ■ Centralized Management of I-CAR Gold Class ■ On-line training, Learning Management Systems, and testing ■ Self-managed DRP with centralized audit teams ■ Marketing Teams ■ Safety and Environmental Compli-

ance Teams ■ Proven workflow systems and accountability to make them work ■ Mass advertising and name recognition ■ Ability for employees to help other locations when needed ■ Stability and benefits are attractive to potential new-hires ■ Buying power Most small collision repair businesses must attempt to perform many of these functions, but are rarely able to perform all of them well, if at all. To remain profitable typical shop owner/managers must perform many of the functions that shop managers at large MSOs don’t have to deal with. The time that a typical shop manager would spend performing many of these functions is spared to the large MSO shop manager thereby providing them time to ensure that processes are being followed, quality and cycle time standards are being met and in

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many ways acts as an “auditor.” With these disciplines in place, it becomes very difficult to compete with these guys. In order to perform all these functions that are required, you would need to hire people that are experts in Insurance DRP Relations, HR, Accounting, Customer Relations, I-CAR Gold Class, Marketing and Advertising, Safety and Environmental Compliance, Admin Workflow Systems, Change Management, Lean, etc., etc., etc. I would bet in most collision repair businesses, at least one or more highly paid people would need to be hired to perform all of these functions which are currently not being performed well or at all. That could equate to $5,000 - $15,000 a month, plus benefits to hire who is needed to get all this stuff done! This of course would be considerably more if you have multiple locations needing these services. Solutions can be provided by an outside firm at a substantially lower price and be performed by experts that will ensure these functions are performed precisely. So in other words, you could get many of these functions at your shop performed both better

and cheaper than trying to do it yourself in-house.

A look at ROI Is it actually costing you money by not using an outside firm? In many cases, yes! Training & Coaching has been proven to increase a shop’s Key Performance Indicators substantially. Coaching and Training provided by qualified outside sources can have an immediate positive impact on both KPIs and return on financial investment. Even a modest 5% increase in productivity at a shop producing $100,000 in revenue can yield an additional $2,000 in gross revenue which in many cases is enough to pay for the outside services. There are many cases of shops experiencing significant gains in productivity and profitability that never would have been possible with the assistance of outside experts. Don’t expect quality outside services to be cheap, but look at it as an investment with a favorable ROI. Do your homework when hiring a business coach or any kind of outside service, these folks in many ways become a reflection of your business and will have an impact either positive or negative. You must be able to trust

them much as you would a new employee, so don’t feel you need to hire the first one that comes along. The old saying that the “Definition of Insanity is doing the same thing over and over and expecting a different result” is exactly what many shop leaders continually do. It doesn’t have to be this way. Quality of life for stakeholders at body shops doesn’t have to be so bad. We all need help, and there are resources available to provide support.

Resources Available: Business Coaching & Consultants ● General Business Consulting ● Admin Workflow Processes & Implementation ● Learning Management System ● Leadership Coaching ● Training Clinics

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ALLDATA Launches Collision Webinar Series June 16

ALLDATA will launch its Collision Webinar series, which will educate attendees about the company’s Estimate Integration product and strategies necessary to perform safe vehicle repairs on today’s complex vehicles. The first webinar will take place June 16 at 10 a.m. Pacific (1 p.m. Eastern). The webinar will host industry experts Karl Kirschenmen, ALLDATA collision product manager, and Mike Anderson, collision repair industry veteran and former shop owner.

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Chrysler Airbag Recall Being Probed by Regulators The automaker says 6 fixed SUVs from 2012 recall had inadvertent airbag deployments. Chrysler Group may be facing a recall do-over after the fix it initiated to stop inadvertent airbag deployments in older Jeep Libertys and Grand Cherokees failed in at least six instances to fix the problem, says a report in Automotive News. The National Highway Traffic Safety Administration said in documents filed on Monday that it had opened a query into the 2012 recall 744,822 Jeep Liberty SUVs from model years 2002 and 2003, and Jeep Grand Cherokee SUVs from model years 2002 through 2004. NHTSA said it plans to study the effectiveness of the nearly 2-year-old recall, which Chrysler launched on Nov. 7, 2012. Chrysler acknowledged in a statement that it had notified NHTSA of a half-dozen instances in which the SUV’s airbags deployed inadvertently while the vehicles were in operation after they had allegedly been fixed. “Chrysler Group LLC advised the National Highway Traffic Ad-

ministration of the six reports and, in accordance with the company’s longstanding practice, is cooperating fully with the resulting investigation. Customer safety is paramount at Chrysler Group,” the company said in a written statement. In 2012, Chrysler addressed the problem by installing an in-line jumper harness with an integrated electrical filter to eliminate electrical spikes that the company believed were causing the problem, according to the NHTSA documents. The safety agency had previously opened an investigation of the issue in October 2011 and three months later upgraded the probe. In the latest six cases in the NHTSA documents, no crashes were reported, but injuries consisting of cuts and burns were alleged. At the time of the recall in 2012, another 174,723 SUVs were affected in Canada, Mexico and outside of North America. The probe found 215 cases of inadvertent airbag deployments that resulted in 81 minor injuries in the United States but no crashes.

PartsTrader Integrates Hollander Interchange Codes

PartsTrader announced that it has in- cler whenever that code is available tegrated Hollander Interchange codes for the parts or assemblies required. within the PartsTrader application to The new functionality has been assist suppliers when they are quot- previewed in Illinois and New Jering recycled parts. sey, and is now available to PartThe Hollander Interchange is a sTrader users nationwide. 75-year old numbering system that “The repairers and recyclers indexes which parts are interchange- who have been using this feature in ableSouthwest among vehicles. For example, our preview areas have been pleased to this Edition? the timing cover for a 1976 GMC with the efficiencies it has delivered Truck also fits a 1969 Corvette. Hol- to them,” said Dale Sailer, Partlander Interchange Manuals cover sTrader’s vice president of business most foreign and domestic cars and development. “Our development autobodynews.com light trucks from the 1920s to the team has worked diligently on askpresent. The manuals cover more ing the right questions of repairers, than 150 mechanical and body parts and to display the Hollander codes and assemblies. in an easy-to-use manner for any ness with For information Promoteonyour business with quoting recycled parts. how to use supplier the Interchange, go to http://hollanPartsTrader’s goal is to continually featuring an exclusive article featuring derinterchange.net/How_To_In- improve our solution so that it reservices. structions.pdf.your products or services. duces the risk of getting the wrong In the PartsTrader system a col- parts and creates efficiencies for lision repair estimator will be asked, both the repairer and the supplier.” when appropriate, clarifying vehicle Said Rob Cooper, CEO of Partoption questions prior to sending out sTrader, “In meeting with recyclers a quote request for Call their specific part across the country, we’ve heard the or details! for details! needs. The estimator’s answers to need for integration with Hollander trigger Part- Interchange loud and clear, and it’s ex251 these questions will 800-699-8251 sTrader to display the appropriate citing to be able to respond to the marHollander code to the quoting recy- ket’s needs in such a positive way.”

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NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award The Automotive Division of ASQ (American Society for Quality) recently awarded Bob Frayer of NSF International its prestigious Quality Leader of the Year Award for his leadership and NSF International’s commitment to testing and certifying aftermarket automotive parts. The ASQAutomotive Division Quality Leader of the Year Award recBob Frayer ognizes leaders in the automotive industry who exemplify outstanding dedication to quality. Over the past four years, Frayer (NSF International Global Managing Director Automotive) has significantly increased the number of certified automotive collision replacement parts available in the market, now covering more than 20,000 vehicle applications including models from all major auto companies. As background, NSF International is a global organization with 70 years of certification and testing experience. Frayer oversees NSF Interna-

tional’s Automotive Collision Certification Program, which includes parts certification through which he and other NSF engineers independently evaluate and compare the form, fit and function of aftermarket parts to original equipment (OE) parts. The program helps ensure that collision parts meet quality, safety and performance standards through rigorous facility audits and parts testing. He also oversees the Automotive Collision Parts Distributor Certification Program which certifies distributors who sell automotive collision parts. “We are honored to recognize the achievements of Bob Frayer and NSF International for their dedication to continually advance the quality and safety of the aftermarket automotive parts industry,” said Jd Marhevko, ASQ Fellow and ASQ Automotive Division council member. “It is an honor to receive this award on behalf of NSF International from the ASQ. NSF International and ASQ are committed to quality improvement and standards, and to helping ensure that the safety and performance of auto parts contributes to that mission,” said Frayer.

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Crashes Cost Almost $1T in Costs, Loss of Life, Pain

That includes $277 billion in actual cost, and an estimated $594 billion in “harm from the loss of life and the pain and decreased quality of life due to injuries,” a new U.S. Department of Transportation’s National Highway Traffic Safety Administration report said. Studying crashes in the U.S. in 2010, NHTSA counted up 32,999 fatalities, 3.9 million non-fatal injuries and 24 million damaged vehicles in “The Economic and Societal Impact of Motor Vehicle Crashes 2010.” The sweeping report takes in a lot of ground, particularly in calculating the “quality of life” losses. Among the factors considered in the direct losses of $277 billion, the report said, were $93 billion in lost productivity, $76 billion in property damage, $35 billion in medical expenses, and $28 billion in the costs of traffic-related congestion—like traffic jams and increased air pollution. The report concluded that drunk driving, speeding and “distraction” were key contributors. Drunk driving alone, the report said, accounted for 18% of the total economic loss from motor vehicle crashes, costing the economy as much as $199 billion in direct and quality-of-life losses.

SCRS Open Board Meeting on July 28th in Detroit

On Monday, July 28th, the Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 3:00–5:00pm in Detroit. The meeting, held at the Marriott Renaissance Center located at 400 Renaissance Dr. West, Detroit, will be open to anyone wishing to learn more about the current state of the association's activities and pressing industry topics. The two hour meeting will include updates from SCRS staff and committees outlining current and future work initiatives each group has undertaken on behalf of the membership. It will include a presentation from the SCRS Education Committee who will be providing a detailed presentation surrounding aluminum repair approaches, techniques and considerations. Attendees are not required to be a member of SCRS to participate in this meeting. Anyone interested in learning more about the association, the work it does on behalf of the collision repair industry or interacting with the SCRS Board of Directors is encouraged to attend. Pre-registration is not required. For more information about SCRS, or to join as a member, visit our website at www.scrs.com.

IL Shop Owner Posts 20-min Video of FPB for Panel Fixes

Young Technician’s Program to Debut at CARS

Russ Hoernis of Hoernis Auto Body in Belleville, IL, has created a 20-minute video and posted it on YouTube to demonstrate all of the steps in the feather, prime and block procedure that must be performed to bring a repair panel back to a new, undamaged one. “Feather, prime and block is a refinish operation that for years has been snubbed by the insurance industry as either an included operation in repair times, or they have just been unwilling to compensate shops for the work and materials utilized. I have researched the CCC, Audatex and Mitchell manuals, and each estimating system has independently stated that feather, prime and block is a necessary operation that must be performed to bring a repaired part back to a new, undamaged panel. Each manual also clearly states that published refinish times are for new, undamaged panels.” After documenting the entire operation, Hoernis goes over the labor and materials used and ultimately calculates that not getting paid for this results in roughly $50,000 per year in lost revenue to his shop. Hoernis concludes the video by saying, “I hope for whoever is watching that this clarifies some of the issues we are up against.”

Automotive service and repair shop owners will want their young technicians to attend this unique symposium at this year’s Congress of Automotive Service and Repair (CARS), which will be held in Detroit July 30-Aug. 2. It was designed specifically for young technicians who shop owners believe have the skills to be all-star technicians. The Young Technician’s Symposium is a first time event at CARS and will be powered by Bosch. Targeting the twoto three-year technician, Bosch trainers will use interactive teaching methods to move young technicians to electrical and driveability diagnosis with confidence and speed. ASA is working with Bob Pattengale, training manager for Robert Bosch, to address the challenges young technicians face. Donny Seyfer, chairman-elect of the ASA, which sponsors CARS, said Bosch recently conducted a trial training program with members of ASA-CO. Out of that came a two-day, four-session program that would teach techs with two or more years’ experience real-world diagnostic skills in basic electronics, gas and diesel engine management, sensors and actuators, and electronic brake management, including ABS and vehicle stability systems.

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 37

New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025 Marketing research firm Ducker Worldwide is predicting that once the 2015 Ford F-150 debuts and works out the bugs with dealerships and the auto repair industry, other truckmakers will likely to follow suit. A study conducted by Ducker Worldwide for the Aluminum Association’s Aluminum Transportation Group (ATG), projects that, by 2025, more than 75 percent of all new pickup trucks produced in North America will be aluminum-bodied. The study surveyed all major automakers and reports Ford, General Motors and Fiat Chrysler will become the biggest users of aluminum sheet in the next decade. It also forecasts that the number of vehicles with complete aluminum body structures will reach 18 percent of North American production, from less than one percent today. Vehicle segments revealed as emerging aluminum content leaders are pickup trucks, sport-utility vehicles (SUVs) and both mid-sized and full-size sedans. The study finds that every leading automaker will have numerous aluminum body and closure programs by 2025. As the material mix for body and closure parts continues to change dramatically in the years to come, use

of aluminum sheet for vehicle bodies will increase to 4 billion pounds by 2025, from 200 million pounds in 2012. “The numbers tell a powerful story of aluminum’s explosive growth across the automotive sector,” said Tom Boney, chairman of the Aluminum Association’s Aluminum Transportation Group and vice president and general manager of automotive for Novelis in North America. “Within the next ten years, seven out of 10 new pickups produced in North America will be aluminum-bodied, and so too will be more than 20 percent of SUVs and full–sized sedans.” The ATG commissioned global consulting and research firm Ducker Worldwide to conduct the 2015 North American Light Vehicle Aluminum Content Study. Through detailed inperson interviews with automotive original equipment manufacturers (OEMs), component suppliers and regulators, Ducker Worldwide maintains a comprehensive material use database to track material and mass of individual components for every vehicle model manufactured in North America. The findings were compiled using data updated and verified between October 2013 and April 2014.

“Aluminum-bodied cars and trucks are coming in a big way, and soon. Consumers won’t visibly notice a different metal under the paint, but they’ll see greater savings at the gas pump and experience better performance and handling at the wheel,” added Boney. Additional findings from the study include: For 2015, pickup trucks will contain the most aluminum at 548.9 lbs. per vehicle, followed closely by E segment sedans at 546.9 lbs., SUVs at 410.3 lbs. and minivans at 396.5 lbs. The average aluminum content in 2015 will be up 44 pounds per vehicle or 13% over 2012. Total North American light vehicle aluminum consumption will increase 28% in 2015 over 2012. Tesla, Mercedes, BMW and Ford will all exceed the average aluminum content and the average aluminum share of curb weight for 2015. By 2025, 26.6% of all the body and closure parts for light vehicles in North America will be made of aluminum. Total North American aluminum content in 2025 will be 10 billion pounds.

Aluminum hood penetration will reach 85% and doors will reach 46%; complete bodies will reach 18%, from less than one percent today. Globally, light vehicle aluminum content will approach 35 billion pounds by 2025 making light vehicles the most important global market for aluminum. In a separate analysis, Bank nalyst John Murphy said that Ford’s aluminum F-150 will determine whether consumers are willing to pay a premium for a larger-but-lighter vehicle. The 2015 F-150 could be efficient enough to meet future U.S. fuel economy standards without requiring Ford to offset its performance by selling more small cars, he said. If Detroit auto makers can succeed at slashing weight from their large SUVs and pickups, Murphy said, “you could see an environment where [their sales] perform really well.” Heavy-duty pickups and SUVs are big moneymakers for Detroit auto makers and efforts to make them more fuel efficient would keep the profits flowing.

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I-CAR® Adds New OEM Development Director

I-CAR® announced that John Bosin has joined I-CAR in the role of Director, Segment Development– OEM. John will oversee all business development and strategic activity for ICAR in the OEM segment including refinement of strategies to better serve the OEM segment, as well as I-CAR activity with OEMs related to Collision Repair Network (CRN) programs that rely on I-CAR’s training and Gold Class program, I-CAR® Welding Training & Certification™ initiatives, and contract training. He will also work closely with I-CAR’s Industry Technical Relations team to advance I-CAR’s Reparability Technical Support (RTS) program as ICAR works to develop and mature the portfolio of RTS services for the benefit of OEMs and the Inter-Industry. John Van Alstyne, I-CAR CEO & President stated, “Segment focused sales and marketing, and strategic alignment, have been key to I-CAR’s progress over the past three years. John Bosin is a great addition to our team, and with his joining, I-CAR is more firmly positioned to create more positive impact in the OEM segment and across the board.”

Bosin joins I-CAR with significant experience in the OEM segment through his extensive and diverse roles in the Collision Repair industry. Most recently, John was with AkzoNobel as OEM Aftermarket Manager, and earlier with Fix Auto USA, ICI Autocolor and DuPont. John is also a Lean Six Sigma Sensei. “John brings a record of demonstrated success moving companies to higher levels as result of strategic visioning and development of sales teams and market/product strategies. For more than 23 years, he has been an active member of, or affiliated with, Boards of Directors for the Collision Industry Foundation, National Auto Body Council, Collision Industry Conference and other various industry Advisory Boards. We are thrilled to have John on the I-CAR team.” said Van Alstyne.

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I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit

I-CAR® announced that registration is now open for the 2014 I-CAR Conference, which will be held on July 30, 2014 at Cobo Center in Detroit. This year’s Conference picks up I-CAR’s technology advancement discussion started at the company’s 2013 Conference and will provide executives and leaders across the industry further insight into the challenges and opportunities surrounding the Technical Tsunami. John McElroy, host of Autoline Daily and Autoline This Week, will return to moderate this year’s I-CAR Conference. The Conference will feature an expanded lineup of speakers from Ford Motor Company, Oak Ridge National Laboratory, Steel Market Development Institute, Alcoa, University of Michigan, Robert Bosch LLC and more. Key topics will include: • Ford: A high impact session covering OEM strategies related to CAFE, details on the new aluminum F-150, and Ford’s enhanced Collision Repair Service Strategy • Lightweighting: Advancements and trends in Carbon Fiber, Advanced Steels, Aluminum • The Changing DNA of the Ve-

hicle: Reinventing the Automobile • Advanced Electronics, Communications and Safety: Vehicle Wide Driver Safety Systems: V2X Deployment, and how Vehicle Data will reshape our industry I-CAR has also announced new, reduced pricing for this year’s Conference to encourage more of the industry to attend and hear about the important challenges being faced. The admission price is now just $250 for Early Bird registration—a promotion that is running from now through June 14. As an added bonus, all I-CAR Conference attendees will receive a FREE pass to the NACE/CARS expo, also being held at the Cobo Center on July 31 and August 1. In addition to insightful and thought-provoking presentations and panel discussions, the I-CAR Conference also offers numerous networking opportunities, including an evening reception celebrating I-CAR’s 35th Anniversary, complete with live entertainment. For more information and details on how to register, please visit: http:// i-car.cvent.com/2014Conference.

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