Southwest Edition Texas Oklahoma Louisiana New Mexico
29
YEARS
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Texas Insurance Rates to Rise in New Year to Pay for Increased 30/60 Liability Limits As people begin thinking ahead to 2011, one important change will be implemented for drivers with auto insurance. With the passage of increased liability limits in 2007, Texans will notice an increased insurance rate of two or three percent to cover the additional insurance protection in 2011. While the two to three percent rate increase that is expected to come from the increased coverage limits is minimal, many consumers question the reason for the rising costs. According to CBS, the increase in auto insurance minimum requirements is meant to address rising medical costs associated with car accident claims.
Rising medical costs, meaning the cost for post-accident medical care and treatment, have increased in recent years and, in 2007, the Texas Legislature took action in an effort to ensure that car accident victims have the proper insurance coverage. CBS reported that approximately 7 million Texans will be affected by the coverage and rate increases. Approximately half of insured drivers opt for the least expensive insurance option, which is just liability coverage, not collision coverage. Under the current minimum limits, a driver must have at least $25,000
by John Yoswick
consumer is unknowingly accepting the risk of having repairs completed by under-trained workers. —John Edelen
See Liability Limits, Page 29
2010 Year in Review—Words Spoken Signal Issues Collision Repairers will Revisit in 2011 Looking for a preview of what lies ahead for the collision repair industry? Look no further than some key statements made in 2010 that likely will continue to reverberate in 2011.
With these changes, it will become quickly and increasingly more apparent which business are prepared through training to address the increasing complexity of repair…and (which) businesses have failed and continue to fail to prepare themselves for the future. By not selecting a Gold Class business, the
Now-retired I-CAR CEO John Edelen last summer unveiled I-CAR’s new “Professional Development Program” and revised requirements for its John Edelen “Platinum Individual” and “Gold Class” recognition proSee 2010 Year in Review, Page 26
VOL. 29 ISSUE 1 JANUARY 2011
GREG COCCARO ‘NOT GUILTY’ AGAIN of Fraud Charges Filed by Progressive
A six-person New York jury found Greg Coccaro, owner of North State Custom in Westchester, N.Y., not guilty of civil insurance fraud—for the second time—on Dec. 15. The case was originally brought by Progressive Insurance in 2005 in a dispute over the repair of a badly damaged Mercedes which was fixed at Coccaro’s Mercedes-certified shop. Progressive alleged that the shop inflated the charges to make the car a total loss, and that both the shop and the insured received payment for the vehicle’s repairs.
In 2005, the customer, a handicapped professor from Columbia University, asked Coccaro to repair her 6-month-old 2004 Mercedes E320 that she had rolled down an embankment and crashed into a pile of rocks. Progressive Insurance wrote an on-site initial estimate of $7,142. Once the car was taken to Coccaro’s shop—which was not a Progressive DRP (Coccaro has no DRPs)—he found far more damage in addition to mistakes on the original estimate. According to Coccaro, Progressive eventually wrote another estimate for $26,804, then a third one for $18,000, and then another. All told there were some 10 estimates done. Coccaro’s final, carefully documented, invoice for the full repair came in at $34,091. That’s when it really got interesting... continued on page 17
Also in this issue... Toyota Recommends OEM . . .p. 31
NABC Establishes Inter-Industry Initiative . . . . . . . . . .p. 39 Chief Partners with Collision Hub . . . . . . . . . . . . . . . . .p. 19 Huge Cost of Mismatched Bumpers . . . . . . . . . . . . . . . .p. 10 Airbag Fraud Becoming More Prevalent . . . . . . . . . . . .p. 13 SCRS Affiliate Groups Help Members . . . . . . . . . . . . . .p. 21
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Contents Central Texas Body Shops and Dealers
Collaborate on Refurbishing Vehicles for
Good Parents in Need . . . . . . . . . . . . . 8
Sterling Autobody Names Lou DiLisio VP
of Operations. . . . . . . . . . . . . . . . . . . . . 8
Collision Repair Executive Webcast Hosts
CAPA’s Jack Gillis and a Discussion on
Aftermarket Parts . . . . . . . . . . . . . . . . 23
Consumer Website Launches Inherent Diminished Value Assessment
Calculator . . . . . . . . . . . . . . . . . . . . . . . 4
Texas Insurance Rates to Rise in New Year to
Dan Tessadri to become FIX USA Director
Unemployment Insurance Tax Rates to Rise
Engineering Talent Shortage Worries GM
Pay for Increased 30/60 Liability Limits. 1
in Texas in 2011 . . . . . . . . . . . . . . . . . . 4
COLUMNISTS
Attanasio - Airbag Fraud Becoming More
Prevalent, Experts Say . . . . . . . . . . . . . 13
Attanasio - Greg Coccaro ‘NOT GUILTY’ AGAIN of Fraud Charges Filed by
Progressive . . . . . . . . . . . . . . . . . . . . . . 1
Attanasio - Rich Evans’ Academy Becomes
Reality at Ohio Technical College . . . . . 34
Attanasio, Garmat - Van Tuyl Dealership Group Acquires Garmat Paint Booths
of Claims . . . . . . . . . . . . . . . . . . . . . . . 4 and other OEMs. . . . . . . . . . . . . . . . . . . 6
Facts Regarding Recent Technical Service
Bulletin for Toyota Camry and Avalon . . 19
FinishMaster, Inc. to be Acquired by
Uni-Select USA, a Division of Canadian
Parts Distributor . . . . . . . . . . . . . . . . . . 6
Huge Cost of Mismatched Bumpers: When
Bumpers Don’t Line Up . . . . . . . . . . . . 10
I-CAR Names New CEO for 2011 . . . . . . . 38 International Auto Glass Safety (AGRSS) Conference Meets Success in
Chicago, Ill. . . . . . . . . . . . . . . . . . . . . . 39
Nationwide . . . . . . . . . . . . . . . . . . . . . 27
Law Firms Investigate Legal Claims
Consumer Insurance Claims . . . . . . . . 14
Mickey Harris Paints Custom Dodge
to be Tested and Justified. . . . . . . . . . . . 9
NABC Establishes Inter-Industry In-Language
Austin, TX, Steers Clear of Direct Repair
NHTSA Proposes Mandatory Backup
Sisk, DuPont - Gunpowder, Auto Refinishing,
NICB Releases Questionable Claims
Franklin - A Clear Marketing Focus Needs Schroeder - Jeff's Auto Body Repair in
Programs . . . . . . . . . . . . . . . . . . . . . . 29 and Jeff Gordon—Two Centuries of
Against Finishmaster . . . . . . . . . . . . . . . 6
Challenger for NASCAR’s Richard Petty. 32
Initiative. . . . . . . . . . . . . . . . . . . . . . . . 39 Cameras in New Cars . . . . . . . . . . . . . 39
Analysis Report . . . . . . . . . . . . . . . . . . . 4
DuPont . . . . . . . . . . . . . . . . . . . . . . . . 36
Ray LaHood Fights Loophole Favoring
Get to Second? . . . . . . . . . . . . . . . . . . 18
Recycler’s Association Reacts to Toyota
Spoken Signal Issues Collision Repairers
Rivalry Intensifies Between GM’s Onstar
Weaver - Who’s on First When What Can’t Yoswick - 2010 Year in Review—Words
will Revisit in 2011 . . . . . . . . . . . . . . . . 1
Yoswick - SCRS Affiliate Groups Help
Members with Industry Issues . . . . . . . 21
NATIONAL
Allstate Announces Satisfaction Guaranteed
Drunk Drivers . . . . . . . . . . . . . . . . . . . 35 Position Statement. . . . . . . . . . . . . . . . 32 and Ford’s Sync. . . . . . . . . . . . . . . . . . . 4
Second Insurance-Sponsored Study
Confirms Texting Bans Ineffective,
They Don’t Reduce Crashes. . . . . . . . . 30
Senate Passes Pedestrian Safety Act,
EVs to become Louder. . . . . . . . . . . . . 24
or Premium Refund . . . . . . . . . . . . . . . 23
TG Missouri Will Invest $3M in Indiana
for NACE & CARS . . . . . . . . . . . . . . . . 33
Toyota Bulletin Recommends Against
ASRW Announces Improved Technology
BASF Names Nick Maloof to Central Zone
Manager . . . . . . . . . . . . . . . . . . . . . . . . 4
Plant Upgrades . . . . . . . . . . . . . . . . . . 24
Aftermarket, Rebuilt, and Salvage
Parts . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Chief Automotive Technologies Partners
Toyota Sues Old GM for California Plant
CIF Announces New 2011 Board of
U.S. Wants Tougher Repair Rules on
with Collision Hub . . . . . . . . . . . . . . . . 19
Directors . . . . . . . . . . . . . . . . . . . . . . . 38
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Editorial Assistant: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Indexof Advertisers
Causey - An Insurance Adjuster’s Tips for
Damages. . . . . . . . . . . . . . . . . . . . . . . 33
Rental Cars . . . . . . . . . . . . . . . . . . . . . 39
Southwest
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.
Autobody News
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Audi Wholesale Parts Dealers . . . . . 6 Autoland Scientech. . . . . . . . . . . . . 19 BMW Wholesale Parts Dealers . . . . 23 Chacon Suzuki . . . . . . . . . . . . . . . . 14 Chassis Liner . . . . . . . . . . . . . . . . . 12 Chevyland . . . . . . . . . . . . . . . . . . . . 29 Classifieds. . . . . . . . . . . . . . . . . . . . 39 Dallas Dodge . . . . . . . . . . . . . . . . . 40 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . . 4 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 15 Fredy Kia . . . . . . . . . . . . . . . . . . . . . 21 Garmat USA . . . . . . . . . . . . . . . . . . 10 Gene Messer Hyundai . . . . . . . . . . 16 GM Wholesale Parts Dealers . . . . . 30 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 24 Huffines Hyundai Plano . . . . . . . . . 25 Hyundai Wholesale Parts Dealers . 27 Kia Motors Wholesale Parts Dealers 20
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 11 Mark’s Casa Mitsubishi. . . . . . . . . . 16 Mazda Wholesale Parts Dealers . . . 26 Mercedes-Benz of Oklahoma . . . . . 32 Mike Calvert Toyota. . . . . . . . . . . . . 28 Mitsubishi Wholesale Parts Dealers. 37 MOPAR Wholesale Parts Dealers . . . 7 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 24 Parkway Family Mazda . . . . . . . . . . 22 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 31 Scoggin-Dickey Buick . . . . . . . . . . . 8 Scorpion . . . . . . . . . . . . . . . . . . . . . 13 Sherwin-Williams. . . . . . . . . . . . . . . . 9 Suzuki Wholesale Parts Dealers . . . 33 Toyota Wholesale Parts Dealers . . . 36 VIM Tools. . . . . . . . . . . . . . . . . . . . . 35 Volkswagen Wholesale Parts Dealers 33 Volvo Wholesale Parts Dealers . . . . 38 Young Chevrolet . . . . . . . . . . . . . . . 22
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 3
Rivalry Intensifies Between GM’s Onstar and Ford’s Sync
Consumer Website Launches Inherent Diminished Value Assessment Calculator
Ford and GM both agree that sophisticated telematics systems are gaining importance in purchase decisions for consumers. The question for the two rivals is which system millions of car buyers will choose. The longtime rivals are squared off in a race to bring telematics to mainstream car buyers. They say Sync and OnStar are key purchase considerations—so much so that the technology changes how dealers sell vehicles and interact with customers. Ford and GM are reluctant to admit that heated competition exists, saying the systems are different and distinctive. OnStar has been known for safety features such as emergency assistance and stolen-vehicle recovery. Sync typically has focused on Bluetooth mobile phone connectivity and also provides information and entertainment services such as horoscopes and stock quotes. But each automaker is matching the other’s key offerings. For example, Ford has introduced 911 Assist and Vehicle Health Reports to compete with OnStar. And OnStar is adding features such as voice-based text messaging from the driver’s cell phone.
Consumer advocate website TheyWroteOffMyCar.com has launched a branch of its website called MyCarIsWorthLess.com designed to help all parties involved more accurately assess a vehicle’s diminished value after it has been damaged and an insurance repair claim has been filed. The service uses a specialized calculator to estimate the diminished value based on the vehicle information, enabling both insurance companies and policyholders to reach a reasonable settlement unbiased by either side’s interest in the final value. That value is determined after users enter criteria such as the make and model of the car, including details like the market size and repair costs. The quotes and information used to reach an estimate were collected by the two chief architects of the software, who together have more than 30 years of experience in vehicle buying and insurance auto appraisals. The calculator is based on an algorithm developed specifically for estimating inherent diminished value, and does not include insurance-related or repair-related diminished value.
BASF Names Nick Maloof to Central Zone Manager
Dan Tessadri to become FIX USA Director of Claims
BASF Automotive Refinish has announced that Nick Maloof will be its new Central Zone Manager, effective Jan. 4, 2011. He will report directly to Chuck Soeder, Vice President of BASF Automotive Refinish–North America. Maloof comes from BASF’s Construction Chemicals business, having spent nearly 20 years there in various sales and sales management roles. During the past 10 years, he was Southern Area Manager for the group and was involved with several key initiatives that were instrumental to the success of the business. “Nick has a history of outstanding sales growth and building strong customer relationships,” says Soeder. “I feel very fortunate to add him to the BASF Automotive Refinish team.” Maloof holds a Bachelor of Science degree in physics from the University of West Georgia and an MBA from the University of Alabama at Birmingham. For more information on BASF Automotive Refinish, please visit www.basfrefinish.com.
FIX USA announced the appointment of Dan Tessadri, who will be assuming the role of Director of Claims leading the Fix Full Performance Claims Solutions group. Tessadri’s duties will include leading the Fix Auto claims management department to further provide efficient processing of claims for insurance customers, while delivering service and results through Fix’s independently-owned repair facilities. Tessadri will transition from his current role as California appraisal manager for Esurance, where he was responsible for the management of the Esurance direct repair program, E-star. During this time he oversaw the performance and compliance of 144 repair facilities. Prior to Esurance, Tessadri was with Progressive as a team leader and manager. His duties included management of field estimator performance, accuracy and development at the San Diego concierge facility. “As director of FFPCS I am eager to start working with our franchisees to provide the best possible support and training to ensure the success of both the Fix Auto brand and our insurance customers,” said Tessadri.
4 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
NICB Releases Questionable Claims Analysis Report
The National Insurance Crime Bureau (NICB) recently released its third quarter questionable claims (QC) referral reason analysis for 2010. The NICB received 70,295 QC referrals in all categories through the third quarter of 2010, up 12% from the same time period in 2009. The category with the highest increase was casualty referrals, a 21% increase in the last year, ranging from staged accident to exaggerated injury. Questionable claim referrals in the property category saw an increase of 15% from the previous year, with a notable percent change in hail damage referrals. The analysis reported 487 hail damage referrals in 2009, and 897 referrals in 2010, or an 84% change between years. In the auto category, specifically in the auto glass fraud subset, NICB received 333 auto glass fraud referrals in 2009, a relatively small figure compared to the 2,036 QC referrals submitted this year for a huge 511% increase year over year. While other subsets in this category decreased in 2010, the auto category still saw a total increase of 6% from 2009 figures. The information collected is from NICB members only.
Unemployment Insurance Tax Rates to Rise in Texas in 2011
The Texas Workforce Commission says the standard minimum unemployment insurance (UI) tax rate paid by Texas employers in calendar year (CY) 2011 will be 0.78 percent, up from 0.72 percent in CY 2010. The taxes replenish the Texas Unemployment Compensation Trust Fund which provides unemployment insurance for Texas workers who lose their jobs through no fault of their own. TWC said the increase in the employer tax rate increase was necessary to offset two years of higher UI benefit payments. Taxes would have been significantly higher without the actions taken by the commission, including use of a public bond sale and suspending the deficit tax component of the tax rate. The minimum UI tax rates are paid by 213,000 or 63 percent of all experience-rated employers. An employer paying the standard minimum tax will pay $70.20 in tax per employee in CY 2011 compared with $64.80 in tax per employee in CY 2010. The maximum UI tax rate, paid by 2.2 percent of Texas experiencerated employers, is 8.25 percent, down from a maximum rate of 8.60 percent in 2010.
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FinishMaster, Inc. to be Acquired by Uni-Select USA, a Division of Canadian Parts Distributor FinishMaster, Inc., the largest independent paint, body and equipment (PBE) distributor in the U.S., announced Dec. 10 that its Board of Directors has approved an agreement for the company to be acquired by a subsidiary of Canada’s Uni-Select, Inc. a leader in the distribution of automotive replacement parts, equipment, tools and accessories with North American revenues in excess of a billion dollars. The distributor of automotive paints and accessories will retain its identity within the larger firm, serving the collision-repair market. FinishMaster also will keep its existing management team and headquarters in downtown Indianapolis, Indiana. Uni-Select, which reported North American revenue of $1.3 million last year, distributes automotive replacement parts, equipment, tools and accessories. Its Uni-Select USA Inc. subsidiary is the sixth-largest distributor in the United States. “By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier ‘one-stop shop’ for body shops in North America,” Finish-
Master CEO J.A. Lacy said in a prepared statement. The Indianapolis-based company had suffered during the recession and its aftermath from vehicles being driven fewer miles, resulting in fewer accidents and a diminished need for paint for repairs. This November the company reported third-quarter profit of $3.5 million, up nearly 16 percent from the same period in 2009. For the nine months ended Sept. 30, profit remained flat, at $9.4 million. The company said the purchase price was based on an enterprise value of about $217 million, less $45 million in debt and transaction costs. FinishMaster shareholders will receive $21 cash per share—a 32 percent premium to the 30-day average share price of the thinly traded stock. FinishMaster operates three major distribution centers and 162 branches in 29 of the country’s largest metropolitan areas. It is controlled by LDI Ltd., a closely held Indianapolis firm chaired by Andre Lacy. “We are delighted to be partnered with one of the leading North American automotive replacement parts distributors. By bringing together two
Engineering Talent Shortage Worries GM and other OEMs
Law Firms Investigate Legal Claims Against Finishmaster
Automotive News has reported that as automakers and suppliers gear up to build more hybrids and electric vehicles, they’re struggling with a talent shortage. The key problem: Traditional mechanical engineering skills generally don’t apply to electric-drive powertrains. Specific experience is needed —and it’s hard to find. “We’re being a lot more aggressive to recruit these people because it is very competitive,” says Jerry Klarrcq, director of North American hybrid programs for AVL Powertrain Engineering Inc. in suburban Detroit. “There is definitely a shortage out there of people with the right experience.” To get an early line on incoming talent, Tesla has formed partnerships with universities to help get an early line on incoming talent. Being in Silicon Valley also helps lure in luring talent from nearby technology hightech companies and attracts engineers looking to escape colder climes, he says. That mismatch poses a problem for companies like General Motors, which wants to hire 1,000 engineers and researchers for electric-drive systems, and many suppliers eager to get in on the work.
At least four law firms—Goldfarb Branham LLP, Briscoe Law Firm, Kendall Law Group, and Powers Taylor LLP—say they are investigating potential legal claims against the Board of Directors of FinishMaster, Inc. related to the proposed acquisition of FinishMaster announced this month by Canadian-owned Uni-Select (see related story this page). The law firms question whether FinishMaster stockholders are receiving adequate value for their shares and suggests that the board came to agreement without properly shopping for a deal that would provide better value for shareholders. “Based on FinishMaster’s historic share prices, our concern over this transaction is whether FinishMaster shareholders are receiving maximum value for their shares,” said shareholder rights attorney Willie Briscoe. “The transaction is expected to be completed on January 10, 2011,” said securities lawyer Hamilton Lindley. “Our proposed class action lawsuit seeks to ensure that the shareholders properly shopped the company, maximized value to the shareholders and disclosed full and fair information about the transaction.”
6 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier “one-stop shop” for body shops in North America. Combining the industry expertise of our two management teams will allow us to further penetrate the market and expand our customer base creating opportunities for FinishMaster associates as well as our suppliers,” said J.A. Lacy, President and CEO of FinishMaster. “The acquisition of FinishMaster represents a unique opportunity for Uni-Select to expand its scale in the U.S., enter a complementary market as a leader, and enhance its product offering,” said Richard Roy, President and CEO of Uni-Select. “This transaction fits in perfectly with our business plan by significantly expanding our presence in the U.S. Although Uni-Select already distributes paint products, this acquisition will immediately improve the quality and breadth of our offering.” About FinishMaster Founded in 1968, FinishMaster is the largest U.S. independent distributor of automotive paints, coatings and related
accessories to the automotive collision repair industry. The Company is headquartered in Indianapolis, Indiana, and operates three major distribution centers and 162 branches in 29 of the 50 largest metropolitan areas in the country. For more information on FinishMaster, visit the company’s website at www.finishmaster.com/.
About Uni-Select Founded in 1968, Uni-SelectTM is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories. Uni-Select USA, Inc., a subsidiary of the Company, provides services to customers in the United States, where it is the sixth largest distributor. The Uni-Select NetworkTM includes over 2,500 independent jobbers and services 3,500 points of sale in North America. Uni-Select is headquartered in Montreal. Uni-Select shares (UNS) are traded on the Toronto Stock Exchange (TSX). Uni-Select and Uni-Select Network are trademarks owned by Uni-Select, Inc. For more information on Uni-Select, visit the company’s website at www.uniselect.com/eng/.
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www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 7
Central Texas Body Shops and Dealers Collaborate on Refurbishing Vehicles for Good Parents in Need
Austin’s KXAN News has reported that eleven families received Christmas gifts and keys to a newly refurbished car, all for taking great care of their children. Child Inc. enlisted the help of local car dealers and other donors to reward the parents for their commitment to raising happy, responsible and educated children. Laurie Ann Pineda was one of them. She had been struggling to get to work after losing a child and emerging from an abusive relationship. The new car will serve as her safety net. “I’m shaken up, I’m happy. I’m excited. I’m very blessed,” said Pineda. “It gives us security. It helps us know that I can get my children to school safely every day.” Kenneth Leggs lost his job, his home to foreclosure, and his car to repossession. He’s been renting a car from a friend, and this gift will release him from those payments. “Got my own keys, my own title. It belongs to me, so I appreciate it. I’m very thankful,” said Leggs. The vehicles were refurbished by three Ellis and Salazar body shops in
Central Texas, as well as Leif Johnson Ford, Lexus of Austin, Henna Chevrolet and Custom Car Crafters. The technicians and mechanics donated their time and labor, and also served on the committee that selected the families. To be nominated, the families had to attend parenting classes, ensure their children’s high attendance at school, volunteer in their children’s classrooms, and prove they were working to become less dependent on public assistance. Along with toys for the children and cars for the parents, the families received six months worth of auto insurance.
Sterling Autobody Names Lou DiLisio VP of Operations
Well-known collision industry figure Lou DiLisio has been named VP of operations for its Northern Territory. comes to Sterling with over 30 years experience in the automotive repair industry. “We’re delighted to have Lou on staff,” said Nick Notte, president of Sterling. “Lou brings decades of collision industry experience, technical expertise and strong industry relationships to our company. He had a tremendous impact on our results while in his consultative role and we will benefit from his experience as we continue our implementation of Lean tenets throughout 2011 and beyond.” DiLisio responded, “I am excited about the opportunity to work more closely with the Sterling organization. Sterling has proven itself as a major force in the collision repair business and I look forward to helping our operations team improve its overall efficiency and effectiveness, which will propel us to even greater heights. Growing up in his family owned collision business, DiLisio launched his career in Mt. Kisco, NY when he became owner and general manager of his own full service collision repair facility in 1974. DiLisio began consulting in the mid 1980’s and during that time opened a fraud investigations company
working with insurance companies. In 1992 he began consulting with CCC Information Services in the development of the Collision Center Connection program. In 1997 he joined Carter & Carter International as vice president of the US operations. In 1999, DiLisio opened his own consulting firm: Automotive Industry Consulting, Inc., working with insurance companies, vehicle manufacturers, refinish paint companies, body shops, salvage vendors, aftermarket parts manufacturers, and equipment manufacturers and distributors in a wide variety of services including strategic and tactical planning and implementation. He continues his involvement in the collision repair industry as past Chairman of the Society of Collision Repair Specialists (SCRS) and past Chairman of the Collision Industry Conference (CIC). DiLisio was named one of the Top 25 Movers and Shakers of the Collision Repair Industry for the 20th Century. In 2005 DiLisio was awarded the Auto Body Repair News Industry Leadership Award. In 2010, DiLisio was presented with the prestigious Lifetime Achievement Award from SCRS. DiLisio joins Sterling Autobody as of December, 2010.
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On Creative Marketing
Tom Franklin has been a sales and marketing consultant for forty-five 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
A Clear Marketing Focus Needs to be Tested and Justified with Thomas Franklin
It’s likely you have tried to tune into a radio station in your area, only to find a lot of interference from other stations not staying within the parameters of their frequency. Electronic reception is often subject to “noise” from other broadcasting devices. Even a cell phone being used in your area may make noise on your radio or create interference on your TV set. These are just some of the nuisances we have to endure in our ever-growing electronic world.
But what does this have to do with your marketing? The essence of interference is that it hampers having a clear signal, and so interference in one’s business activities can hamper a clear focus. This is especially true in marketing. A shop owner is bombarded daily with unsolicited sales calls, advertising proposals and requests for contributions of all sorts. Like a repetitive commercial on radio or TV, the constant drumbeat of an ad or jingle may
finally wear down your resistance (and common sense) and convince you to buy the service or product. The problem with this is it detracts from the funding and energy you may have planned for a strategic marketing program, if you already have one. And it can interfere with having a clear focus if you are just trying to develop an effective marketing strategy. Most of the time, these unsolicited sales calls and advertising proposals are attempts to nail down a
long-term contract of some sort. This interferes with one of the most basic of all marketing tenets: “When pursuing an untried marketing initiative, before committing to it long-term, TEST, TEST, TEST.” Professional marketers are nearly religious about doing test markets before committing real money to a program. Statistically, probably nine out of ten test markets don’t produce as expected. Ad people are constantly tweaking words, images, and media to see what gets the best response. While a shop owner is rarely in a position to do numerous test markets, he or she can try a program for 30, 60, or 90 days to see if there is any response at all—and also to see if the response justifies the investment. Random proposals coming from unsolicited sources may at first seem to offer a test period, but the very nature of most of them is to try to sidestep serious testing. They almost always go for a long-term commitment. It’s interesting that most shop owners and managers will set a test period for a newly hired technician, leaving themselves the option to reject the tech if he doesn’t work out, but they may sign up for an expensive marketing program with no similar rejection clause. This would be my first crap-detection suggestion: Demand a carefully defined, time-limited termination clause. In our industry perhaps the worst of these are programs that offer referral business. Without naming program names, perhaps you have subscribed to a program I’ve encountered that requires a substantial upfront investment and perhaps the purchase of an alternative estimating system. I’ve noticed in numerous shops that subscribed to it, there were several referrals in the beginning but after the fees were paid and the contract nailed down, the referrals became few and far between. Shop owners seem to find it hard to resist the offer of referred business and often lack the time to do a thorough check to see if the program is really legitimate and works as promised. See Clear Focus, Page 22
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 9
Huge Cost of Mismatched Bumpers: When Bumpers Don’t Line Up by Insurance Institute for Highway Safety
When bumpers on cars and SUVs don’t line up (and many of them don’t), low-speed collisions produce more damage and higher repair costs Bumpers are the first line of defense against costly damage in everyday low-speed crashes. Bumpers on cars are designed to match up with each other in collisions, but a longstanding gap in federal regulations exempts SUVs from the same rules. New Insurance Institute for Highway Safety crash tests demonstrate the results: SUV bumpers that don’t line up with those on cars can lead to huge repair bills in what should be minor collisions in stop-and-go traffic. “SUVs and cars share the road,” says Joe Nolan, the Institute’s chief administrative officer. “The problem is they don’t share the same bumper rules, and consumers end up paying the price.” A federal standard requires that all cars have bumpers that protect within a zone of 16 to 20 inches from the ground. This means car bumpers line up reasonably well and are more likely to engage during low-speed collisions to absorb energy and prevent damage. No bumper requirements apply to SUVs, pickups, or minivans, so when these vehicles have bumpers they often are flimsier and higher off the ground than bumpers on cars. Plus, SUVs and pickups may not have bumpers at all. In fender-benders with SUVs, cars often end up with excessive damage to hoods, engine cooling systems, fenders, bumper covers, and safety equipment like lights. SUVs don’t always come out unscathed either, often needing extensive work. The Institute conducted 10 mph front-into-rear crash tests involving 7 pairs of 2010-11 models, each composed of a small car and small SUV from the same automaker. “We picked vehicles from the same manufacturer because we think automakers should at the least pay attention to bumper compatibility across their own fleets,” Nolan explains. “The results show that many don’t.” In the tests, an SUV going 10 mph struck the back of its paired car, which was stopped. Then the configuration was reversed, with the car striking the back of its paired SUV. Results of these low-speed impacts varied
widely, from a total of $850 damage to one vehicle to $6,015 damage to another (see table below). In some cases, the crash damage included major leaks from broken radiators and cooling fans. If these collisions had happened in the real world, the motorists wouldn’t have been able to drive away. If they did, their vehicles could overheat, and the engines could be ruined. Mismatched pairs: If bumpers don’t match up, they’ll bypass each other when vehicles collide, and the resulting crash energy will crumple the vehicle body. That’s what happened when the Nissan Rogue struck the back of the Nissan Sentra in the SUV-intocar test. The Rogue’s front bumper didn’t line up at all with the Sentra’s rear bumper, and the resulting $4,560 rear damage tally for the Sentra was the highest among all the cars in this test. The impact crumpled the car’s bumper cover, trunk lid, and rear body. The Rogue ended up with a crushed and Nissan Sentra and Nissan Rogue
Ford Escape and Ford Focus
When the Nissan Rogue struck the back of the Nissan Sentra (top) in the 10 mph front-into-rear crash test, the Rogue’s bumper overrode the Sentra’s, resulting in $7,444 in combined damage for the pair. In the car-into-SUV test, the Ford Focus bumper slid under the high-riding Ford Escape, adding up to $5,203 damage for the car and $2,208 for the SUV
Ford Focus: $5,203 damage
leaking radiator that kept the SUV from being driven after the test. Bumper height mismatch contributed to pricey damage when the Ford Escape struck the rear of the
10 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
Ford Focus. Their bumpers overlapped less than 2 inches, not enough to protect the Focus’s rear body and trunk lid from $3,386 in repairs. “The mismatch problem with the Ford pair was even worse when the Focus struck the back of the Escape. The front bumper on the car underrode the high-riding Escape’s rear bumper, which at 25 inches off the ground is the tallest among all the small SUVs evaluated this time around. Damage to the Focus came to $5,203 and included replacing most of the sheet metal plus many parts in front of the engine. When the Toyota Corolla hit the rear of the Toyota RAV4 in the carinto-SUV test, damage amounted to nearly $10,000 for the pair — the highest combined test damage among all of the vehicle pairs the Institute evaluated. The RAV4 accounted for about $6,000 of the bill. “The RAV4’s so-called bumper is really just a stamped piece of sheet metal supporting the bumper cover,” Nolan explains. “So instead of engaging a strong bumper, the striking
Corolla hit the spare tire mounted on the RAV4’s tailgate. The spare isn’t designed to absorb crash energy, so it damaged the Corolla’s hood, grille, Honda Civic and Honda CR-V
Hyundai Tucson and Kia Forte
The bumper bars on this pair of Hondas (top) lined up. The Civic’s $1,274 in rear damage when hit by the CR-V was the lowest among cars in this test. The Kia Forte’s front bumper lined up with the rear bumper of the Hyundai Tucson (bottom), keeping the front of the car from underriding the SUV and limiting damage to a combined $3,601 for both vehicles
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 11
headlights, air conditioner, and radiator support and crushed the RAV4’s tailgate and rear body panels.” Compatible bumpers: Bumpers on Honda’s CR-V and Civic were the most compatible in the test in which an SUV strikes the rear of a car, and at $2,995 the pair had the lowest combined estimated damage in this crash test. The Civic’s $1,274 damage was the lowest among the cars. The CR-V is one of only 3 SUVs whose front bumpers overlapped half of the rear bumpers on the cars they hit. “The CR-V’s front bumper overlapped the Civic’s rear bumper by more than 2 inches. That may not sound like much, but it’s enough to allow the bumpers to do what they’re supposed to do,” Nolan says. When the Kia Forte struck the back of the Hyundai Tucson, their bumpers matched up well enough to keep the Forte from underriding the SUV, limiting damage to a combined $3,601 for both vehicles. The Forte’s $1,510 repair estimate was the lowest among cars in the car-into-SUV test. The Tucson-Forte pair’s bumpers also did a good job of lining up in the SUV-into-car test. The Tucson’s $850 damage estimate was better than the other SUVs, and it was the only SUV that didn’t have a damaged air-conditioning condenser. Despite bumpers that aligned, results for the Forte weren’t as good. The Forte had more than $3,000 rear damage because its bumper broke during
impact. The car’s rear body panel also was damaged. “Of the 7 car-SUV pairs we tested, we can’t point to a single one as a model of compatibility because combined damage estimates run into thousands of dollars for even the best performers,” Nolan says. “In the real world that money comes straight out of consumers’ wallets through deductibles and insurance premiums. Regulating SUV bumpers would ease the burden.” Regulate SUV bumpers: The Institute in July 2008 petitioned the National Highway Traffic Safety Administration to regulate bumpers on SUVs and pickups the same as cars, and require them to match up in a way that shields both vehicles from costly damage. The agency in June 2009 agreed to seek comments on the petition but hasn’t moved forward with a rulemaking or a low-speed compliance test for bumpers. Regulators have long said that requiring light trucks to have bumpers would compromise off-road maneuverability and make it hard to use these kinds of vehicles at loading ramps. The Institute counters that very few SUVs and pickups are used off road. In addition, bumpers aren’t the limiting factor in most vehicles’ approach and departure angles. Instead air dams, bumper covers, exhaust pipes, and other trim mounted lower than the bumpers get in the way.
DAMAGE REPAIR COSTS IN 10 MPH FRONT-INTO-REAR CRASH TESTS SUV INTO CAR
SUV Damage
Car Damage
Total Damage
CAR INTO SUV
Car Damage
SUV Damage
Total Damage
1Honda CR-V into Honda Civic Toyota RAV4 into Toyota Corolla Hyundai Tucson into Kia Forte Volkswagen Tiguan into Volkswagen Golf Jeep Patriot into Dodge Caliber Ford Escape into Ford Focus Nissan Rogue into Nissan Sentra
Kia Forte into Hyundai Tucson Dodge Caliber into Jeep Patriot Honda Civic into Honda CR-V Volkswagen Golf into Volkswagen Tiguan Nissan Sentra into Nissan Rogue Ford Focus into Ford Escape Toyota Corolla into Toyota RAV4
$1,721 $1,434 $850 $2,329 $1,415 $1,470 $2,884
$1,510 $2,559 $4,921 $4,555 $5,114 $5,203 $3,852
$1,274 $2,327 $3,223 $2,058 $3,095 $3,386 $4,560
$2,091 $1,338 $1,053 $1,872 $1,428 $2,208 $6,015
$2,995 $3,761 $4,073 $4,387 $4,510 $4,856 $7,444
$3,601 $3,897 $5,974 $6,427 $6,542 $7,411 $9,867
Note: The Ford Escape and Focus, Hyundai Tucson, and Volkswagen Golf and Tiguan are 2011 models. All other cars and SUVs are 2010s. Repair costs reflect November 2010 parts and labor prices. 12 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
Consumer Callout
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Airbag Fraud Becoming More Prevalent, Experts Say with Ed Attanasio
I got a phone call a couple of months ago from a caller who I didn’t know. He sounded concerned and very cautious. “I got your home number from your office. I want to talk to someone at Autobody News, but I don’t want to tell you my name.” I’m not much on whistleblowing but I’ve been asked this kind of thing before, just not so carefully and cautiously. “Okay, it will be off the record” I said. He got to the point quickly, which was good, because I was at
deadline on an assignment. “I’m an airbag technician. I’ve learned how to service, install and troubleshoot any type of airbag that exists and I’ve been doing it for more than 10 years. At some point, I started to notice that people were doing sketchy things with the airbags. First it was a rarity but over time I’ve seen more and more of it. It’s like a virus— word gets around. Now I see a lot of people who are trying to avoid installing the airbags properly, because
they don’t want to pay the price of doing it the right way.” Still without naming names or telling me where he worked, my anonymous contact continued. “Most of the airbag companies out there are honest, but the dishonest ones are getting away with doing dishonest things,” he said. “They disconnect the airbag system and then install a resistor so that the deployment light won’t come on. Then, when used car resellers, brokers or individuals buy
these vehicles in which the airbags are not operating and yet appear to be fine. That’s when it becomes dangerous and life-threatening. Someone could easily get seriously hurt, or killed.” My anonymous caller said that this type of fraudulent activity has become more rampant in this down economy. He’s experiencing it mostly within the used car industry, where shady dealers are willing to jerry rig these airbags, instead of replacing them. And he even sees a handful of body shops cutting corners when it comes to airbags as well, he said. “I had to tell somebody, because one of these days I’m going to read about a death caused by an illegally installed airbag and my conscience will bother me for a long time when that happens. And at this rate, it’s definitely going to happen.” He hung up, sounding somewhat relieved, and I decided to look into the situation. I called around. Although several organizations wouldn’t return phone calls (The California DMV and the National Highway Traffic Institute, for example), I found some people in the know who were more than willing to share their perspectives. According to my contact at the Coalition Against Insurance Fraud (CAIF) this is the way it works: An unscrupulous technician will remove an airbag after it has deployed in an accident and make it appear as though it’s been replaced. Or, a shady shop or individual will replace the airbag with a dummy or a sub-par cheaper airbag that isn’t designed for the vehicle in question. This part is disclosed in a press release distributed by the CAIF. In my search for someone to go on the record, I contacted Doug Hansen, the president of AirbagService.com, a company he founded in 1992 with 18 locations nationwide. “I’ve experienced a lot of fraudulent and questionable activity in this industry for the last 30 years,” Hansen said. That checked out with me because airbags have been in use since the ‘70s. “It’s caused by people who aren’t paying attention to the right things and/or motivated by money. We’ve seen See Airbag Fraud, page 25
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 13
The Right Cause
Mike Causey is a consumer advocate and lobbyist for the Independent Auto Body Association (IABA), in addition to Non-profits such as alternative healthcare groups (Citizens for Healthcare Freedom, NC Reflexology Association), Organic farming and Healthy Eating. Mike is a writer and speaker on numerous consumer issues and legislation. Mailing address: Causey & Associates, P.O. Box 16725, Greensboro, NC 27416 Email: gocausey@aol.com Phone: (336) 210-1947
An Insurance Adjuster’s Tips for Consumer Insurance Claims with Mike Causey
With the average motorist filing an insurance claim every seven years, anyone, including shop owners, might benefit from some tips on how to approach insurance claims, especially if distracted in the heat of the moment. According to the US Department of Transportation, about 255 million passenger vehicles are registered in the United States. Traffic congestion is a fact of life on most of our streets and highways. With all this congestion, combined with impatient, distracted, or reckless drivers, accidents are bound to occur. That keeps us in business, but it may be much more problematic for us as individuals in our own collisions. With more passenger vehicles than any other country in the world, the volume of traffic congestion on our streets and highways make it likely that you or someone in your family will be involved in an accident. In my family, my wife, my mother and my niece were involved in separate traffic accidents recently. A vehicle sped through an intersection, ran a red light and hit my wife’s car. Both air bags deployed and the car was declared a total loss. Luckily, my wife wasn’t hurt physically, other than a bruise from the seat belt and airbag restraints that protected her from serious bodily injury. A few days later my mother’s car was sideswiped by another driver while driving on a busy street. Then, a few days after that, my niece was involved in an eight-car pileup that sent her to the hospital and totaled her car. Again, no serious injuries in either case. That’s the “good news” with most auto accident claims; Personal injury isn’t the problem. “Sixty-three cents of every claim dollar [pays for] physical damage on your car,” says John Eager, senior director of claims services for the National Association of Independent Insurers (NAII). Filing auto insurance claims requires basic steps whether personal injury is involved or not. However, a personal injury claim may require a different level of proof and persistence than a vehicle damage claim.
Also, insurance regulations vary from state to state, but the basic steps to take information needed to file a claim are fairly similar. The claims process for vehicle damage is simple in principle: (1) You make a claim; (2) The adjuster estimates the cost to repair the damage; and (3) The insurance company sends a check for that amount to you or the body shop to pay for the repairs. Negotiating the maze of requirements from insurers makes the claims process anything but simple to those not familiar with the simple steps necessary to complete a successful claim. “Proof of damage or injury” is required by every insurance claim before an insurer will pay. For auto claims, Eager says there are five elements of proof that will come into play: (1) What you tell the insurance companies; (2) What the other party tells them; (3) A police report; (4) Witnesses; and (5) Physical damage at the scene. Here are eight tips to keep with you and pass along to your family, customers and friends: # 1) At the accident scene, Call 911. Get police and medical help if necessary. Most important: Remember that you’ll need a police report. Some police officers may try to avoid taking an accident report in parking lots or where the damage appears small. INSIST on an accident report. # 2) Exchange information with the other parties involved: license plate numbers, contact information and auto insurance information. Most states require drivers to have an insurance identification card in the vehicle that will provide most of the necessary information. Make sure to get phone numbers, names, addresses, where they work, etc. Make notes on any pertinent information regarding accident. # 3) Find witnesses willing to tell what they saw and get their statement and contact information. If you are unable to gather information at the scene, the police report can be a backup source of information on the other parties involved and witnesses. # 4) Notify your insurance company as soon as possible. Call your in-
14 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
surer from a cell phone right from the scene. Many insurers have 24-hour claim-filing service by phone. Regardless of who’s at fault you should file the claim with your own insurance carrier. # 5) If the other party is at fault, advise the other party’s insurance company that you’re pursuing a claim through your carrier and will seek reimbursement for costs your carrier will not pay, including your collision insurance deductible, time off work, auto rental differential and the amount of your diminished resale value. # 6)You’ll get a phone call from the other company asking for your version of events that led to the accident. Be prepared for this. # 7) The adjuster comes up with an estimate of what it will take to restore your damaged vehicle (or replace it, if it’s totaled). Then, the insurance company will cut a check in
the amount of the repair, minus any collision deductible amount. # 8) (For disputed cases) If you feel your insurer’s damage settlement offer is too low, ask for “arbitration” to settle the dispute. This process may take two to six weeks, but in most cases you won’t have to wait for payment. The insurance company should pay you the amount it offered immediately, and you’ll get the rest when and if the dispute is resolved in your favor. On the other hand, if you disagree with an offer from the other party’s insurer, you may or may not be offered such dispute resolution. If not and the amount in dispute is significant, it may be worthwhile to take legal action. My friend, J. D. Howard, a retired insurance adjuster who cofounded the Insurance Consumer Advocate Network (I-CAN), based in
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Branson West, Missouri, says, “Insist on a report. If [officers] won’t file a traffic accident report, insist on an incident report. You want an independent, disinterested record of what happened. You’d be amazed at how often the other driver’s story will change.” The police officer may plead “no jurisdiction” if the accident happens in a parking lot. Insist on an incident report, Howard says. If the accident is in a mall or other facility that has a security force, ask security to file a report. In a lot without any security, ask a shop owner to make a statement. “You want to get something in writing,” Howard says, because “insurance companies are obliged to believe the story given to them by their own policyholder” unless there’s proof to the contrary. Finding of fault is very important when it comes to auto insurance claims. There are rental car and diminished value issues, time off from work, and whether or not your insurance rates go up. According to Eager and the National Association of Independent Insurers (NAII), the majority of states
have adopted “comparative negligence,” a concept based on the idea that no one party is necessarily completely at fault, but that fault is just a matter of degree. The “degree of fault” may determine how much your settlement is “reduced.” “You have rights with your own [insurer] that you don’t have with the other party’s insurance,” Howard says. This includes the right to a
“you can collect from two sources and put the checks in a kitty and decide how much was paid for what.” This means itemizing every expense involved, and which insurance check paid for which expense. At the end of the process, you submit the itemized list to your insurer. Then, if there’s anything left in the “kitty”, you write a check for the overage to your own insurer.
process for resolving disputes over what expenses should be covered by the insurance. Have the patience to take an unconventional route that will be challenged by the insurer, Howard believes that if the other party is at fault, you should file claims with both carriers. “You cannot collect twice for the same thing,” he says. However, under “multiple source recovery,” he adds,
“Especially with an injury claim, you’d want to check with your insurance carrier to see what statements you need to make to the other insurance carrier.” Make written notes about your accident. Don’t trust your memory. Write down exactly what you will tell the other insurer so that in case of a lawsuit your statement will remain consistent. The other insurer will be taping your statement and will have
the majority of states have adopted “comparative negligence”... based on the idea that no one party is necessarily completely at fault, but... it may be a matter of degree... affecting settlement amounts.
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your exact words at their disposal. Consumers don’t know that if an insurance company has a direct repair program (DRP), the adjuster might not even have to come out, Eager says. Under the DRP, their insurance company will refer them to a shop with which they have an agreement. So, depending on the DRP agreement, the damage claim estimate may be done by the shop itself, the shop won’t have to wait to start repairs and the check can be transmitted right to the shop, Eager says. The body shop may also make their own arrangements for a rental vehicle if the customer needs one. If the adjuster “Totals the car,” the adjuster will estimate compensation on the actual cash value (ACV or depreciated value) of the vehicle before the accident, essentially enabling purchase of a similar used car. However, if the auto insurance policy has “replacement cost value,” the estimate will cover the cost of buying a similar new vehicle. Getting the claim settled more efficiently and with less frustration will be the likely result of following the above claims tips.
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Greg Coccaro ‘Not Guilty’ Again
Progressive tried to recall the car from Coccaro after repairs had commenced and steer it to one of their select shops but was unsuccessful in convincing the customer. When the
pealed by Progressive who argued that the judge lacked this lattitude in the case. The second defense of the case, and his acquittal in the first case, have now cost Coccaro and his shop in excess
North State Custom’s shop in Bedford Hills, New York
second estimate came in at $26,804, the customer confirmed she wanted North State to do the job, She agreed to pay any expenses beyond the $26,804. Progressive finally agreed to pay Coccaro’s invoice after the customer’s son became involved, who had a relationship of sorts with the insurer. At that point a curious request came from Progressive to take possession of the car so they could deliver it to the customer. Coccaro declined, preferring to deliver to his own customer, but finally agreed, with the customer’s approval. He was surprised at the cavalier manner in which the vehicle was towed by the insurer’s provider, risking throwing off the two wheel alignments that had recently been done. This would be telling when the case finally came to trial. Progressive did not deliver the vehicle to the professor. They took it for forensic evaluation to another shop. In fact, as the court documents would reveal, Progressive had already decided to prosecute for fraud before examining the vehicle. Progressive alleged that North State had defrauded the company; had provided phony invoices; that Coccaro himself had directed a conspiracy to defraud Progressive; and had charged the insurer for non-existent damage. The first fraud trial pressed by Progressive Insurance against Coccaro in Bedford Hills, NY, was dismissed by State Supreme Court Judge Mary Smith on August 5, 2008. Significantly, the case was dismissed “with predjudice”—meaning the court barred Progressive from filing another case on the claim, effectively ending Progressive’s options—and the judge acted before the defense could call a single witness, however this ruling was successfully ap-
of $600,000 in legal fees, and all for a case which Progressive offered to settle for a dollar and an admission of guilt in 2005. Coccaro refused the offer, despite the fact that under New York law, even if he won, he could not be awarded any money from Progressive, nor could he recover his legal expenses. It was always a matter of principle to him. Progressive continued to allege that Coccaro committed fraud in the repair of the now one-year old Mercedes, causing Progressive to incur damages in the amount of $2,808.65. Coccaro’s legal team of Michael G. Santangelo, Erica L. Eversman, and Anthony J. Mamo, Jr. estimates that Progressive ultimately spent over one million dollars to prosecute the claim of $2,800 and change. Coccaro has said in the past, “I believe they’re out to punish me for speaking out. They want to make an example out of me for anyone else who would do the same thing.” Coccaro still has no hard evidence to support his conclusion, but he points to the time, expense and zeal Progressive has invested in a battle that began over repairs to a single vehicle. He also points to what he says are other ongoing practices by insurers to intimidate shops. “Certain shops get steered against, and the shops who speak out get business steered away from them,” he says. “I also know of certain shops who don’t get paid for certain operations because they’ve spoken up. Insurers make trouble between a shop and its customers. No customer wants to get in the middle of that. “It’s like whack-a-mole in this industry,” he says. “You stick your head up, and they’re going to knock it
down. That’s definitely what they do. They intimidate people.” “They put me in a huge financial hole, so I’m leaving a [tortious interference lawsuit option] on the table,” said Coccaro. “I am 61 years old and had to remortgage everything I owned. I’m in debt again. They don’t like people to stand up to them. They couldn’t get this car out of my shop and they were mad and wanted to teach me a lesson.” Coccaro confirmed to Autobody News that he would be pursuing the lawsuit, and that he has already been deposed by Progressive’s attorneys. “I am so grateful that the jury was able to see through Progressive’s tactics and didn’t fall for the fairytale Progressive tried to tell them,” Coccaro said. “I feel exonerated,” he said. “My business and reputation mean everything to me. That’s why I insisted on fighting these false accusations.” Coccaro has credited support from collision repairers, and especially Mike Anderson, a former shop owner now running a consulting company (CollisionAdvice.com), who testified that the repairs to the vehicle were properly executed and that North State Custom was entitled to charge for the work that was performed. Anderson had reinspected the car after the original repairs. “Mike AnderMike Anderson son took time out of his schedule to fly here and testify and fly back and he did it for free,” Coccaro said. “He did not charge a dime. It was poignant when he pointed that out in court. I am very grateful that he did that for my family, my business and me. Not many people would do that. He put his reputation on the line testifying on my behalf, and I owe him many thanks.” They don’t like people to stand up to them. They couldn’t get this car out of my shop and they were mad and wanted to teach me a lesson. Huge companies can put you out of business. I won the case, but all I did was exonerate myself. I think they spent over $1 million for an alleged fraud of $2,800, according to their expert witness. They were suing me for $34,000, the entire amount of the bill, because they said I intentionally totaled the car.”
Cover Story
“This is a triumph for the entire collision repair industry,” he said. “Now insurers will know that they can’t accuse shops of fraud for making repairs according to the blueprint for repair set out in the shops’ estimates. After all, we are the repair professionals, and it is time that insurers stop interfering with how we operate our businesses.” The ruling leaves Coccaro free to pursue his $15 M suit against Progressive, although he has not commented on that specifically. His complaint was reduced from $40M to $15M after Progressive attorneys successfully argued that NY law does not allow an insurance company to be sued for steering. Nontheless, Coccaro alleges that Progressive has engaged in a scheme to injure North State and deceive the public by engaging in deceptive business practices, including telling customers that North State inflates estimates, does shoddy work, and is a problem shop. When Coccaro’s tortious interference suit against Progressive was originally filed, the New York State Auto Collision Technicians Association (NYSACTA) was quick to support him. At the time, Mike Orso, President of NYSACTA said, “We all know the tricks and games that are being played by a majority of the insurance companies, their appraisers and adjusters. The inside information obtained in this lawsuit only confirms our suspicions...” “It’s not about the money,” Coccaro said at the time. “It was never about the money. I just couldn’t stand by and watch them destroy my reputation and the business I worked hard to create. If they could do this to me, they could do this to anyone.” North State was established more than 30 years ago and promotes itself “a state-of-the-art European luxury car collision repair facility.” Its motto is “New World Technology, Old World Craftsmanship.” The shop is certified by Mercedes Benz, Volvo and Jaguar for structural aluminum repairs along with being BMW-trained for body, paint and aluminum structural repairs. To contribute to defraying Greg Coccaro’s staggering legal fees, please mail a check to: North State Legal 114 Green Lane Bedford Hills, NY 10507
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 17
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
Who’s on First When What Can’t Get to Second? with Gonzo Weaver
My shop’s office manager is my eldest daughter Katie, a bright, pretty gal with a quick wit and long beautiful red hair. Katie gets all the phone calls and handles the front office issues. She does a great job, and makes everything feel like a day at the ball park. She cracks me up with some of her responses to those baffling phone calls we all tend to receive at the repair shop. Sometimes I wonder if she shouldn’t be a comedian, or even have her own vaudeville act. On one occasion I happened to be working in the office, and overheard a conversation she was having with a prospective customer. The way she handled it was “pure Katie.” With the phone on speaker, I couldn’t help hearing the entire conversation. By the end of the phone call I was laughing so hard that I nearly forgot I was only supposed to be listening and to keep quiet. I did manage to keep quiet, but had a big smile on my face for the rest of the day. The phone call went something like this: “Good morning, this is Katie, may I help you?” “Yes, I had my car over at the transmission shop, and they recommended you guys,” the caller said. “OK, is it a shifting problem?” she asked. “No, it’s an electrical problem.” “We certainly do that kind of work. When would you like to bring it in and have it diagnosed?” “No, I already had it diagnosed at the other shop.” “They did, did they? Did they tell you what the problem was?” “No, they didn’t know what was wrong with it. That’s why I’m calling you.” About now Katie is getting her raised-eyebrow look going, and her pen is scribbling something on the note pad. Something is up. I can tell. I’ve answered phone calls like this myself. Let’s see how Katie handles this … I’ll listen in a little more. “So, did they give you any clue as to what the problem was?” she asked patiently.
“They said they didn’t know.” “Well, that doesn’t help either one of us. Let’s start this all over again. It sounds to me like the other shop checked it out, and determined that it was something they couldn’t handle and recommended us. Their best guess was that it was something electrical. Then they Katie gave you our phone number and told you we could take care of it. Am I pretty close to what’s going on, sir?” Katie asked. “Quite right.” “OK, let’s see if we can go round the bases on this. First off, the transmission shop sent you to … who?” “To you…” “Great, who is first base. Now, on to second base. That’s where we figure out the what’s wrong with it part.” He quickly interrupted her… “already did that.” “Well, what’s wrong with it then?” Katie asked. “I don’t know, and they couldn’t tell me either,” the caller said, clearly trying to avoid a trip to second. “Sir, somehow we have got to third base, and haven’t touched second at all,” she reasoned. “I don’t understand what you’re getting at,” the stymied caller said. “Let’s try this again,” Katie continued. “We have established that the who part of this is us at first base. You’re at home plate and you’re going to bring the car here. That will give us a good foothold on first base. The second base is the what part, and that’s where we are having a problem. The I don’t know part can be answered once we have it diagnosed. “I told you. I already had it diagnosed.” “OK then, what’s wrong with it?” “I don’t know.” (Right past second at full speed and sliding into third.) “Naturally,” Katie answers him
18 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
with that I’m-not-going-through-thisagain look on her face. “They didn’t know. That’s why you’re talking to me.” “I don’t think you understand,” he answered her. “Oh, I understand perfectly well, sir. I don’t think you understand that we can’t repair it unless we know what is wrong with it,” she answered in a measured tone. “This is why I wanted to start off with who’s on first, which is me. I’m who.” “But, I just told you. They diagnosed it already.” “Who did?” “Not you, they did.” “What did they tell you was wrong with it?” “I don’t know,” our caller answered yet again, making another beeline for third base. “Sir, we will need to diagnose it all over again in order to find out what is wrong with it, and hopefully get to that third base.” “What third base?” “What is second base, I don’t know is third,” Katie answered him matter of factly. “So, we need to stay on what?” asks the caller. “Yes, second base.” “Who’s on first?” “I’m on first base. I thought we already agreed on that. We need to move on to second base.” “When we get to second base, will that fix my car?” “I don’t know,” said Katie. “So are we on second or third now?” the caller asked, genuinely baffled. “Sir, I’m still on first base where we started. Now let’s try to get to second again. We still need to get it diagnosed. That’s second base,” Katie continued. “I already had it diagnosed,” repeated the caller yet again, with amazing persistance. “And what did they find out?” “I don’t know. Third base!” They both answered in unison without missing a beat. This back and forth call went on for quite some time. I’m about to fall
off my stool, I’m laughing so hard.
We all know what’s going on here. It’s not the who, what, or I don’t know. The customer is saying he has already paid someone to check his car out, and they failed to find the problem. So “naturally,” the customer assumes that there is no need to pay for the same thing a second time, since nothing came out of it the first time around. (Try that logic when you go to a second doctor for another opinion.) I understand the customer’s plight. He wants to know we can fix it before he brings it in. I just wish when he got up to bat at the first shop they would have done a better job of explaining the necessary diagnostic procedures—to make any repairs at all —to the customer. Then again, the fees the customer was charged might have been for other work, and not just for diagnostics, but that part never makes it into the conversation. The call ended with us none the wiser about the customer’s actual problem. He simply said, “I can’t bring it today, but I can bring it in tomorrow,” and hung up. What a relief. Because (he’s in the outfield) today is the day to field wacky phone calls, and I’ve caught all the foul balls I can stand for one day. I just hope Tomorrow doesn’t end up throwing me any wild pitches. Katie was great at umpire. But no matter how you handle things in the office or in the shop, sometimes all you really want to do is make it around the bases without getting tagged or thrown out. And there’s one more thing I’m sure of: I don’t want to end up with the customer only making a “short stop” in my shop, because we haven’t seen eye to eye on how the game has to be played. That is, how the problem needs to be approached and resolved. We all know that short stop’s name. It’s the kind of thing you don't want to hear from a customer or from the repair shop. Now, let’s PLAY BALL.
Facts Regarding Recent Technical Service Bulletin for Toyota Camry and Avalon Toyota has released the following statement:
Some recent media reports have inaccurately characterized a Toyota Technical Service Bulletin (TSB) involving certain Camry, Camry Hybrid and Avalon as a recall, or have implied that customer vehicles may not have been repaired correctly. Toyota is providing the following facts to clarify and prevent potential misinformation. On November 30, 2010, Toyota issued a Technical Service Bulletin that instructs technicians how to repair two weld nuts that may be damaged when removing the bolts used to attach the accelerator pedal to the bulkhead. The TSB was issued following inquiries to the Toyota Technical Assistance System by a few technicians who were instructed how to repair the weld nuts prior to returning the vehicle to its owner. Since repair of the weld nuts is an extremely rare repair, the information is not included in the repair manual and the purpose of a TSB
is to provide such information as needed. As with any threaded fastener, the weld nuts may accidentally be stripped when removed. In the unlikely case when a threaded weld nut is stripped, technicians repair the weld nuts before returning the vehicle to operation. No customer vehicles on the road are affected. Suggestions that this TSB was issued to resolve customer complaints about accelerator pedal feel after the recall or that this TSB is a recall are wrong. No TSB is planned for other models since this component is unique to the Camry and Avalon platform. Toyota has completed over 5 million accelerator pedal entrapment and sticking pedal remedies which require removal of the accelerator pedal, including over 1.3 million Camrys and 265K Avalons. In the course of servicing so many vehicles, occasional questions about the procedure and guidance to technicians is not uncommon.
Chief Automotive Technologies Partners with Collision Hub
Chief™ Automotive Technologies has partnered with Collision Hub, the premier professional networking site for the collision repair industry. Chief is a leading provider of collision repair equipment, data and training. Collision Hub provides an online community that enables technicians, shop owners, insurance companies and others active in the collision repair industry to interact with each other. Members can post photos and videos, answer questions, refer business, recommend products, participate in discussion forums and build relationships. The website, www.collisionhub.com, includes industry news, a comprehensive industry calendar, event coverage, videos, photographs, and more than 20 specialty groups. Collision Hub currently has around 3,000 members. “Collision Hub is an excellent industry resource,” says Mike Cranfill, Chief vice president of collision. “Partnering with Collision Hub will help us strengthen our existing customer relationships, build new connections, and participate in industry discussions.”
Through its sponsorship, Chief is helping to ensure that the Collision Hub forum and Collision Hub TV remain available to the industry for free. Collision Hub is working with Chief to build a strong social media presence. “I really believe in the quality of everything Chief does, from the equipment they manufacture to the training they offer,” says Kristen Felder, Collision Hub founder. “I grew up using this equipment, and more shops I’ve been in use Chief than any other brand. We’re delighted to have such a strong partner and to be able to utilize Chief’s resources and experience to help educate and inform the industry.” For more information about the array of collision repair products and services available from Chief Automotive Technologies, contact your local Chief distributor, call 877-644-1044 or visit www.chiefautomotive.com. For more information about Collision Hub, visit www.collisionhub.com or call (501) 352-5114. Collision Hub is also on Facebook, Twitter and Linkedin.
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 19
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Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
SCRS Affiliate Groups Help Members with Industry Issues with John Yoswick
More than a dozen associations were represented at a gathering in Dallas, Texas, as SCRS held its fifth annual “Affiliate Leadership Conference.” SCRS Chairman Barry Dorn said the event is designed to help the national association gather input from its state affiliates on its direction and efforts, as well as to help those groups work with one another and with the national organization. A number of the associations reporting on efforts they are making to work with state regulators to address issues and concerns. James Brown James Brown of the Houston Auto Body Association, for example, said the association successfully pushed the Texas Department of Insurance to conduct a 4-page
survey of five top insurers in that state, asking questions about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers (see cover this issue.) Brown said the survey was prompted by a petition circulated by a handful of Texas shops asking the Insurance Department Larry Cernosek to request claims processing procedures and information from the insurers. Larry Cernosek, owner of Deer Park Paint & Body in Pasadena, Texas, a member of the Houston association, presented the petition to the Insurance Department, and helped review drafts of the survey questions.
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He also filed an Open Records Act request with the Department to receive copies of the responses. Also at the Dallas meeting, Montana shop owner Bruce Halcro, president of the Montana Collision Repair Specialists, said among that group’s activities is an effort to educate regulators about the issue of paint capping, and to change how shop estimators are categorized in terms Bruce Halcro of workers’ compensation insurance premiums. Halcro said premiums for insurance company estimators are 26 percent of those charged for shop estimators, and the association believes the risk of on-thejob injuries —and thus the rates—for both types of estimators should be comparable. “How can my estimator be a higher risk doing the exact same thing as someone who is driving around town all day when my estimator spends all day in an office,” Halcro said.
Associations address legislation Legislation also continues to be a key focus for many of the associations meeting in Dallas. Janet Chaney of the Iowa Collision Repair Association said that group plans to take another run in 2011 at legislation addressing the issue of shops not being reimbursed for state sales tax paid on paint and materials purchases. Judell Anderson of the Alliance of Automotive Service Providers (AASP) of Minnesota said her group would likely push similar sales tax legislation again in her state this coming year. She said the association was successful this year in getting language on the issue included in both the state House and Senate tax bills, but it was opposed by the Governor who viewed it as a new tax, something he’d pledged not to allow. The association argued it was not a new tax; shops currently pay tax on the wholesale cost of materials but cannot collect it at the retail level because they charge for materials on a per-labor-
hour rather than itemized basis. But Anderson said she feels confident last year’s effort has set the groundwork for success on the issue in 2011. Jordan Hendler, executive director of the Washington Metropolitan Auto Body Association (WMABA), said the association is pleased with changes it helped craft to total loss regulations in Maryland. Repair costs related to paint, plastic parts and other “cosmetic” aspects of repair no longer must be included in the salvage calculation under a new law that went into effect this past October. Two years ago, the state mandated branding of a vehicle’s title when repair costs exceeded 75 percent of the vehicle’s value. The new law passed earlier this year excludes the cost of towing, storage or vehicle rental from the calculation, as well as a list of “cosmetic” items worked out by Maryland’s department of motor vehicles, state police, insurers and the WMABA. “It’s going to save a lot of cars from being totaled,” Hendler said. Hendler said she expects the association will also have to fight (as it did successfully this year) an effort in Virginia next year to raise the threshold of damage requiring a flood-damaged vehicle to receive a branded title from $1,000 to $5,000. Hawaii shop owner Madison Spotts, representing the Automotive Body Painting Association of Hawaii, said the group in 2010 successfully defeated legislation introduced in that state related to the use of salvaged airbags. The bill, which Madison Spotts was crafted based on model legislation approved by the National Conference of Insurance Legislators (NCOIL) in 2009, would have established criminal penalties for fraudulent installation of an airbag, and would have required shops to maintain detailed records of airbags they purchase, sell or install. Spotts said the association was concerned that the legislation also set forth guidelines regulating – and some would say endorsing – the use of sal-
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 21
vage airbags. Auto recyclers were also opposing an important clause in the bill that would have required anyone installing a salvage airbag to place a permanent label on the vehicle’s dashboard indicating that a salvage airbag had been installed. Spotts said she thinks proponents of the use of salvage airbags saw Hawaii as a potential “easy state” to get such legislation enacted in, so its defeat was particularly important, she said.
some of the association’s recent and future efforts on a national level. Privacy of a shop’s estimating and management data is becoming more of a concern, he said, as the information providers move toward “cloud computing,” in which that data is stored remotely on the provider’s computers rather than the shop’s. Schulenburg said the association is hearing from more and more shops concerned that the privacy agreements with vendors do not seem adequate to address this issue. “In addition to protecting the shop’s customer data, we also have to be concerned about our own shop data being compiled and potentially used
against us,” Schulenburg said. Fred Iantorno, executive director of the Collision Industry Electronic Commerce Association (CIECA) and a guest speaker at the SCRS event, said implementation of CIECA’s “BMS” standard would give shops more control over which of its data it shares with other parties. Currently, he said, the major estimating system providers use a different standardized format (“EMS”) to transfer data from the estimating system to the shop management system, insurer or other vendors. Under EMS, Iantorno said, virtually all of the information from an estimate is transferred. But the BMS
standard would enable a shop, for example, to transfer only the parts data from an estimate to the parts vendor. It could also potentially save shops money by making possible true freedom-of-choice of estimating system, and potentially eliminating the need for rekeying data into other systems for CSI, paint and parts ordering, etc. Iantorno said the information providers say they have not moved to the BMS standard because they have not seen repairers asking for such a change. That’s an issue that SCRS and its state affiliate groups meeting in Dallas discussed trying to address in the coming months.
Continued from Page 9
But this interference does prevent — not only a clear marketing focus, but also possibly a clear production focus. We accomplish the most when our attention is laser-like concentrated on a task. Just normal interruptions break our concentration and slow down our productive efforts. But when you add in the constant din of promotional chatter, you may have significant interference in your marketing and management focus.
Telemarketers will rarely stay on the line if a phone isn’t answered after three rings. Perhaps one policy that could reduce the promotional interference would be to postpone or reschedule random marketing solicitations, even if you’re remotely interested. That would test the seriousness of the solicitor, and it would also give you time to rethink your interest and consider the possibility that this may just be some more interference static.
Every bit of random interference you can eliminate from your work day will pay off in vastly more effective marketing and management strategies.
Discussion of data privacy In addition to association reports like these, Aaron Schulenburg, executive director of SCRS, discussed in Dallas
Clear Focus
Like static on a radio that we tune out when we’re absorbed in handling the multitude of tasks required to run a shop, we may not really notice the interference of the perpetual ads and promotions bombarding us through mail, publications, e-mail, websites and live sales calls.
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Allstate Announces Satisfaction Guaranteed or Premium Refund
Allstate has announced a program in several states which guarantees a refunded premium if a consumer has a poor claims experience. The ad reads: “When you buy car insurance, you want to know you’re not just getting a good deal—you’re getting the promise of a good product. And nothing tests the quality of car insurance like a claim. At Allstate, our Claim Satisfaction Guarantee is one more way we deliver on our Good Hands® promise. If you’re not satisfied with your claim experience, from the first phone call to the final fix, you can get up to a 6month credit on your premium.* Save money and be better protected with Allstate. Here’s how the Claim Satisfaction Guarantee works: You are an Allstate customer in a certain state, have a car accident and file a claim with Allstate. You’re dissatisfied with your auto claim experience on a claim we paid and meet the terms and conditions. You send Allstate a letter explaining why you’re unhappy. You get a credit on your premium [for up to 6 months].”
Collision Repair Executive Webcast Hosts CAPA’s Jack Gillis and a Discussion on Aftermarket Parts
Jack Gillis, executive director of the Certified Automotive Parts Association (CAPA), led a Collision Repair Executive Webcast on December 14 centered on CAPA’s certification program and standards and the difference between certified and non-certified aftermarket parts. Gillis started off the webcast by detailing CAPA’s purpose and motives. He said that CAPA’s sole purpose is to ensure that consumers and people in the industry can identify quality parts. CAPA is also there to protect consumers from over priced and poor quality parts. CAPA certification process fits aftermarket parts from CAPA’s 39 approved manufacturers against the car company brand parts or the “standard” parts. Only approved aftermarket manufacturers can submit parts to CAPA for certification and these manufacturers go through rigorous monitoring and requirements before being allowed to submit parts. CAPA not only tests the aftermar-
ket parts’ material, composition, mechanics, strength and dimension against the standard parts, they also do a Vehicle Test Fit as a final test before certifying the part. The Vehicle Test Fit is the final step in certification and is unique to CAPA. It aims to do two things; to make sure the standard part fits the way it should, and to make sure the aftermarket part fits the way it should. About 38% of parts submitted to CAPA for certification fail the Vehicle Test Fit process. Gillis also stressed that CAPA only reviews about 20% of aftermarket parts available. “What about the [sic] parts that are never presented to us for certification?” said Gillis. CAPA also has a vast number of tools available that help them to continue to monitor parts after they have been certified. They have a complaints program, a marketplace monitoring program and a decertification program. When a part is retested and seen fit to be decertified from CAPA it is
immediately changed from CAPA certified in the electronics estimating systems so body shops are aware of the change in certification status. CAPA does their tests through a worldwide company called Intertek, but also has some of their parts tested by the Insurance Institute for Highway Safety (IIHS). Gillis showed some IIHS test results that put CAPA certified aftermarket parts not only of like fit, finish and material as brand name parts but also as having nearly the same crash test results. “Yes, CAPA standards are rigorous - they have to be,” said Gillis, “We think the standards are just right.” Although 4 out of 5 aftermarket parts used in the marketplace are not CAPA certified, Gillis stoody by CAPA’s success. “You have to determine how you measure success,” said Gillis, “the bottom line is that parts bearing the CAPA seal must be matching to the car company brand parts.”
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www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 23
TG Missouri Will Invest $3M in Indiana Plant Upgrades
TG Missouri Corp. is a Perryville, MObased automotive parts supplier known for high-quality plastic and urethane products, including consoles, steering wheels, airbags, side molding, interior and exterior plastic trim components for automobiles. The company has announced plans to invest more than $3 million to upgrade equipment at its plant in NewAlbany, IN, creating up to 30 new jobs by 2013. The company said the expansion follows a new contract to supply components for the new Toyota Camry model. Founded in 1986, TG Missouri is a unit of Nagoya, Japan-based Toyoda Gosei Co. Ltd. Toyoda opened the New Albany site in 2005. TG Missouri also has an injection molding site at its headquarters plant in Perryville, MO, where it employs about 1200 people. TG Missouri currently employs 90 in New Albany. The Indiana Economic Development Corp. offered TG Missouri up to $200,000 in performance-based tax credits based on the company’s job creation plans. The city of New Albany, just across the Kentucky state line, will consider an additional property tax abatement, according to a news release from the IEDC, which did not specify the amount of the abatement.
Senate Passes Pedestrian Safety Act, EVs to become Louder The U.S. Senate unanimously passed an act to direct the Secretary of Transportation, Ray LaHood, to study and establish a motor vehicle safety standard that provides for a means of alerting the blind and other pedestrians of motor vehicle operation, known as the “Pedestrian Safety Enhancement Act of 2010.” The act involves allowing pedestrians to detect a nearby electric or hybrid vehicle in “critical operating scenarios including, but not limited to, constant speed, accelerating or decelerating.” The legislation’s author, Sen. John Kerry, D-Mass., stated the following in regard to the legislation: “I’m a major advocate of hybrids—I own one, I drive one, and I’ve seen firsthand their environmental and economic benefits … This legislation will allow us to continue to promote our energy independence and technological innovation while safeguarding those who use senses other than sight to navigate the roads.” The act includes the following: ● Establishes performance requirements for an alert sound that allows blind and other pedestrians to reasonably detect a nearby electric or hybrid
vehicle operating below the crossover speed, ● Allows manufacturers to provide each vehicle with one or more sounds that comply with the motor vehicle safety standard at the time of manufacture. ● Requires manufacturers to provide, within reasonable manufacturing tolerances, the same sound or set of sounds for all vehicles of the same make and model, and shall prohibit manufacturers from providing any mechanism for anyone other than the manufacturer or the dealer to disable, alter, replace or modify the sound or set of sounds, except that the manufacturer or dealer may alter, replace or modify the sound or set of sounds to remedy a defect or non-compliance with the motor vehicle safety standard, ● Promulgation of the required motor vehicle safety standard pursuant to this subsection not later than 36 months after the date of enactment of the act. ● When conducting the required rulemaking, the U.S. Department of Transportation will carry out the following: ● Determine the minimum level of sound emitted from a motor vehicle that is necessary to provide blind and other pedestrians with the information
needed to reasonably detect a nearby electric or hybrid vehicle operating at or below the cross-over speed, if any, ● Determine the performance requirements for an alert sound that is recognizable to a pedestrian as a motor vehicle in operation; and consider the overall community noise impact.
The act also includes that when conducting the required study and rulemaking the secretary should also: ● Consult with the U.S. Environmental Protection Agency to ensure that the motor vehicle safety standard is consistent with existing noise requirements overseen by the agency, ● Consult consumer groups representing individuals who are blind, ● Consult with automobile manufacturers and professional organizations representing them, ● Consult technical standardization organizations responsible for measurement methods such as the Society of Automotive Engineers, the International Organization for Standardization, and the United Nations Economic Commission for Europe, World Forum for Harmonization of Vehicle Regulations. The act will now move to the House for consideration. Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!
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Continued from Page 13
Airbag Fraud
more fake bags, fake covers, and garbage work than anyone else out there. “Most of the top collision shops are doing a responsible job following the OEM standards,” Hansen continued. “But some people are also gravitating more toward doing improper cosmetic work on airbags to save money or rushing through repairs to save time. I see a trend where inferior airbag repairs are more and more evident within the last two years, and I do believe that the recession must have something to do with it. Re-painting them, for example, is not acceptable for several reasons, because it also affects the braking mechanics of the vinyl. The vinyl is very specifically tuned to the airbag, so it can cause the airbag to deploy improperly. More people are doing unscrupulous things, trying to get their codes cleared for $49 instead of replacing a mandatory controller or, replacing a controller on an airbag system that isn’t required by the manufacturer because they don’t have the proper scan tools or just not re-
placing all the parts needed for a proper repair—these types of things are happening. In addition, the pressures on the body shops for cycle-time, cost saving and no supplements can force poor decisions even when someone is trying to do the right thing.” Hansen said he’s seen a wide range of questionable things done to airbags within the salvage industry, but his stance about salvaged airbags over the years has changed. “Our first position is to use new OEM parts per the manufacturer’s recommenDoug Hansen is the president of dations, and we’ve AirbagService.com always been advoand a 30-year vetcates against the eran of the automotive airbag industry. use of salvaged airbags. Most of He is also encountering more and our work comes more jerry-rigged from responsible airbags during this body shops and inrecession surance companies who require new airbag system components. But we also service the used car industry, rebuilders and retail cus-
tomers where we’re seeing more salvaged airbags across the board. “I’ve softened on the salvaged airbag question more recently, however, because we now know that salvaged airbag are going to be used by some customers and it’s not illegal,” Hansen said. “Although it’s not recommended by the OEM’s, what we’re saying is this—a professional airbag technician who at least knows how to use a torque wrench and can program the proper computer codes can probably work within that realm on certain cars. We’ve taken the position that if a professional is installing a set of used airbags at the customer’s request; it’s the right match (make, model, year and color of the car) and they are following the rest of the manufacturers recommendations and aren’t doing anything sketchy with the system, it’s okay. The customer also needs to understand the risks and accepts the liability of the salvaged parts they’re having installed. “
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Matt Patterson, the owner of several AirbagService.com branches in Northern California has more than 20 years experience in the industry. He is holding a false airbag showing where the vinyl on the steering wheel has been doctored
The Automotive Recycling Association (ARA) is trying to teach its members about how to properly handle airbags while setting standards that can assure safety and responsibility, and Hansen thinks it’s a smart move for the entire industry, he said. “The ARA has a program called ARA Pro, where they’ve developed their own standards for handling airbags, which is a positive step in the right direction,” Hansen said. “At least there is a group out there that is trying to do this responsibly. What we’re saying and what the industry is realizing is hey—if a car is totaled and the person can’t afford brand new airbags, recycled airbags that are properly matched with the particular vehicle, can be an
acceptable option. They have to sign a release and use new electronics, parts and controllers, but if they can do it properly, using recycled airbags can provide a reasonable solution.” Hansen isn’t enamored with the idea of using recycled airbags, but he also realizes that it can be a viable alternative if done the right way. “This is the reality in this industry right now and it’s going to happen regardless. So, then you have to ask yourself—what is the responsible way of doing things? We can’t bury our heads in the sand because a sector of this business is going in this direction. Let’s make sure that if they’re making this decision and installing recycled airbags, at least it can happen professionally and properly within guidelines.” Matt Patterson has owned and operated AirBagService.com’s San Francisco Bay Area businesses in Northern California since 1995 and has more than 20 years experience in the industry, he said. What are the most basic indicators that an airbag has been tampered with, we asked Patterson. “Peeling paint and vinyl repairs on the airbag cover; if the logo or lettering on the outside of the airbag in unclear or illegible; if the outside color of the airbag doesn’t match the rest of the car’s interior colors; if the airbag warning light doesn’t come on at all, remains on or if it doesn’t illuminate when the vehicle’s ignition is turned on, those are the standard things you’ll discover when an airbag has been tampered with. People need to look for these tell-tale signs and call us if they have any concerns about their system so it can be inspected.” How can this industry-wide problem get solved before a slew of injuries—possible fatal ones—take place? “It’s widespread and it seems to be growing,” Hansen said. “Whenever we catch one of these jerry-rigged airbags, we’re always thinking about all of the other ones that are still out there on the road right now. We can’t stop everything that’s happening, but if responsible people can teach others the right way of doing things while monitoring and certifying their own work, things will improve. We can’t afford to let the standards of our industry slip and we need to educate our customers about the importance of proper airbag repairs and the risks of inferior work. When our customers understand which shops take their safety seriously, it can only help the collision industry as a whole.”
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 25
Continued from Page 1
2010 Year in Review
grams, promising to make the training more relevant and the recognition programs more meaningful. Edelen oversaw a turbulent three-year period within I-CAR, winning mostly praise for his efforts to turn the organization around after several money-losing years and declining student numbers. Now this month it becomes up to new CEO John Van Alstyne to pick up where Edelen has left off. His 2011 todo list will include helping the industry understand the transition to the new recognition requirements, continuing the overhaul of the curriculum, looking at new ways to make I-CAR training affordable and accessible, and perhaps getting more insurers, who have largely dropped anything but vague training requirements in their DRP contracts, to once again mandate attainment of Gold Class or similar training levels. When I think of things I know a single store can’t do that an association can do, one thing that comes to mind is to help us stop insurance companies from mandating use of certain estimating systems, CSI providers, or rental car companies. It’s unbelievable that we have to use, for example, Enterprise for some repairs and Hertz for other repairs. I think the repairer should be the person that makes that decision. —Dan Bailey
Dan Bailey, president and chief operating officer for the CARSTAR collision repair franchise chain, put into words this year what many shops have been saying for years: that Dan Bailey micro-managing by insurers can add as much inefficiency and cost as it saves. In an effort to highlight this issue, the Society of Collision Repair Specialists (SCRS) is expected in 2011 to complete a matrix it is building that show which insurer direct repair programs (DRPs) require use of a specific vendor for such services. The goal, SCRS Executive Director Aaron Schulenburg said, is to show that some programs are more restrictive than others in terms of vendor choice, and to show the burden and added expense such requirements can have on
shops participating in multiple DRPs.
The bottom line is if these bumpers do not protect occupants or (allow) more damage to vehicles, it’s insurers that are going to pick up the cost of either the personal injury associated with the problems, or the additional damage associated with poor-performing bumpers in low-speed collisions. —Jack Gillis
This quote from Jack Gillis, executive director of the Certified Automotive Parts Association (CAPA) was just one of many related to nonJack Gillis OEM structural parts this past year. Though clearly no one expects full resolution of the longsimmering battle over non-OEM parts in 2011, a number of interesting developments could take place. First, 2011 will see CAPA facing competition for its non-OEM parts certification with NSF International, which says its program similarly identifies parts that are comparable to OEM. NSF launched its program early last year in part because CAPA wasn’t certifying non-OEM bumper parts (it now is), though there are clear differences between the two programs. NSF also last year launched a certification program for distributors of such parts. Whether either or both CAPA and NSF programs survive will clearly depend on how well they are accepted by insurers, shops and parts manufacturers and distributors. I think the people in this room will make that decision over time,” NSF’s Bob Frayer told representatives of all those segments of the industry at a meeting last fall. “I think a year from now we’ll be talking again and see how we’re doing. It will also be interesting in 2011 to see if both sides continue the crashtesting of non-OEM parts conducted this past year. Ford last fall shared crash-test results it says clearly show that use of non-OEM parts lead to increased damage—and possibly unnecessary firing of the airbag—while CAPA said its testing showed nonOEM bumper parts that meet its standard perform comparably to OEM. Both sides may seek to bolster their argument through more such testing. OEM parts proponents hope in 2011 to gain more public push for the
26 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
use of OEM parts through the press, following up last year’s Consumer Reports’ piece that recommended to car owners to check the paperwork on previous collision repairs and “if knockoffs were used, demand that they be replaced with original equipment.” And the aftermarket parts industry, determined as one LKQ Corporation executive said last year to “really get in front of these guys who are coming after the industry,” will continue its push for federal legislation to prevent automakers from getting design patents on sheet metal parts. You can’t have the have a definition of sub-standard before you have a definition of standard. We could (with standards) eliminate half the argument and half the confusion and a lot of the inefficiency. The question to the industry is: Do we have the appetite? Is it now time for standards? If the answer is yes, what is the next step to actually creating something? —Scott Biggs
Scott Biggs of Assured Performance Network has been among those calling for the development of formalized
standards in the industry for some time. While associations and committees of volunteers at the Collision Industry Conference (CIC) have been Scott Biggs making some progress on such standards in recent years, 2011 is seen by some as the year to really jump-start the process. A meeting in Palm Springs in January will serve as a follow-up to one held in Las Vegas in November. At that earlier meeting, a small group resolved to hire a temporary project manager to take the work to date by a CIC committee and develop a plan, timeline and budget for completion of formalized standards, and for the creation or designation of an entity to oversee and implement adoption of the standards within the industry. While there are still many unanswered questions and plenty of work to be done, the effort may languish if serious momentum isn’t gained this year. “Take time to get consensus, but don’t take too long,” recommended Leslie Upham of Thatcham last fall.
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with Ed Attanasio
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Van Tuyl Dealership Group Acquires Garmat Paint Booths Nationwide What does a body shop owner expect from a paint booth? If you ask one, they’ll probably tell you things like: “I don’t want to have to worry about it; I want to buy one and maintain it, so that it can last for 20 years; I want it to work for me and not the other way around.” Buying a paint booth is like buying a new car, except to a body shop it’s more important than that. It’s a major investment and, like a vehicle, owners want their booths to perform at a high level while requiring nothing more than standard maintenance. That’s the mindset body shop owners and managers are in when they’re looking a paint booth or, in this case, several. To say that Darren Huggins bought “several” paint booths is a gross understatement. Huggins is the National Collision Director for the Van Tuyl Auto Group, an enormous
dealership group that manages more privately held automotive dealerships that any other company in the United States. With offices in Arizona, Kansas and Texas, the management group works with approximately 80 independently operated dealerships nationwide. Huggins oversees the operations of 34 collision repair facilities doing approximately $160 million in total annual sales, so when he buys paint booths, for instance, it’s usually a very large acquisition. The Van Tuyl Auto Group bought more than 30 paint booths from Garmat in 2010, Huggins said. “We had a hodge-podge of different equipment in a lot of our facilities and we decided to do a company-wide upgrade. It was a large investment with Garmat, close to $1.8 million, but we feel confident in the decision, because the booths are proven and well-built. We looked at a lot of different paint
From left, Collision Director Steve Rivette, National Collision Director Darren Huggins and Body Shop Manager of the Van Tuyl Auto Group were recently on hand to oversee the installation of several Garmat paint booths at David Maus Toyota in Sanford, Florida
booths, but in the end we selected Garmat.” The Van Tuyl family has had a long history with the automotive industry, starting with Cecil Van Tuyl who began managing a Kansas City Chevrolet dealership in 1955. Joined by his son Larry in 1971, they have built a highly successful management company based on the principles they describe as “hiring the right people and giving our dealership clients the right tools, training and support that they need for success.” What attracted Huggins and the Van Tuyl Auto Group to Garmat paint booths? “It’s fairly simple—they have a great product. I have a track record using their booths in other positions I’ve held within this industry, and so I am very familiar with their capabilities and features. Follow-through is also very important. Whenever Garmat’s people tell me something, it
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www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 27
happens. I have developed a solid relationship with the General Manager, Johan Huwaert and they have given us some amazing support, so it’s been a sound business decision in every way.” Longevity is the key with a paint booth, and if you don’t take care of it, it can end up being a moneydraining expense rather than a sage investment, Huggins explained. “Treat it like a new car and it will perform for you. The biggest thing is how it will do 10-15 years from now. When I look at a paint booth,
okay, but guess what—that doesn’t work now. Consistency is another major concern with a paint booth’s performance, Huggins said. “I need those paint booths to do what they’re supposed to every time. I need my ambient temperature to really climb quickly, and Garmat’s heating process and the way the whole flow of the booth works very well. The other part of the system features their Accele-Cure® air accelerator system, a drying component to aid in the waterborne procedures. We’ve converted 26 of our locations to waterborne and in the shops with older booths, I’ve installed AcceleCure in all of them, and they do an outstanding job.” The success they’ve achieved with their waterborne paint process relies heavily on New Garmat paint booths were recently installed at David Maus Garmat’s AcceleToyota in Sanford, Florida, a dealer member of the Van Tuyl Auto Cure, Huggins exGroup plained. “With the the first thing I want to know is how waterborne, you can actually see the it’s built. Will it hold up for more water dissipate on the panel and that’s than a decade? Next, I want to ana- how you know it’s time for the next lyze the moving parts of the booth— coat. After you apply that initial coat, how the heating elements and the fans up above and/or the handheld heaters engage and how quickly dryers will do the job effectively by they get up to temperature. It’s all providing the proper amount of air about cycle times in this industry movement. The painter uses the handright now, as we all know. When I held dryers just like a blow dryer and, take the car from the customer up between the two types of fans, it until when I return it, the clock is works great. Garmat’s accelerated running. The reality is this— the drying system flashes waterborne time we spend on a car has to be paint better than anything we’ve used. minimized in any way we can. In the The bottom line is that it directs past, 10–14 days was considered higher volume of airflow directly at
Van Tuyl Auto Group
Headquarters: 8333 Royal Ridge Parkway Suite 130 Irving, Texas 75063 (972) 536-2900
Type: Dealerships, Collision Repair Facilities
In Business Since: 1955 Annual Revenues: $155 million
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28 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
the vehicle, and that’s what we expect.” Huggins has changed his facilities to waterborne for all the right reasons, he said. “That’s where the technology is going. It’s so much better for the environment, so it was a no-brainer for us. We use PPG Envirobase waterborne paint, and in conjunction with our partners at Garmat, it’s really elevated us to a higher level. Going waterborne was a huge move for us, and it’s already paid off. To do whatever we can do to help the planet is a big deal and as a large company, it’s even more important.” The Van Tuyl Auto Group must be doing something right, because the company’s numbers are slightly up, during a rocky period for the collision repair industry overall, Huggins said. “We’re very pleased, because our industry as a whole is off drastically, but our sales are up considerably compared to the market. That’s not a huge increase, but in a very down time, we’re very proud of that. And working with top vendors such as Garmat is definitely major part of that equation.”
Garmat USA was established in 1988 to provide quality refinish equipment to the North American Market. The company’s corporate offices, manufacturing facility, R&D and training facilities are located in Englewood, Colorado. The company’s mission statement on their Web site tells it all. “Garmat USA’s mission is to provide innovative and cutting edge technologically advanced products that enhance your facility’s productivity and profitability, while providing an environmentally safe atmosphere for the refinish technician.” “All Garmat USA cabins and mechanical units are designed and manufactured at our Englewood, Colorado facility. Each unit is built for your specific application. By manufacturing our own complete air handling systems, we can ensure consistent performance with leading edge technology, for a constantly changing industry. We strive to provide the best distributor network with the finest installation and service personnel throughout the industry and we pledge to stand behind our representatives and products.”
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Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
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Jeff's Auto Body Repair in Austin, TX, Steers Clear of Direct Repair Programs
year, but has seen years as high as $3 million, especially during a year with a hail storm, according to Joe Sessler. The shop has about 50 cars going in and out of bays per month. Jeff’s not only does not have any direct repair program (DRP) relationships with any insurance companies, they take an aggressive stance against these relationships in their business completely. “We work for the customer, not the insurance company paying for the claim,” said Joe. Jeff’s believes that by not having preset relationships with any insurers they can dictate how their repairs are performed based (l-r) Owner Jeff Sessler, Joe Sessler and Donny Barker on the customer’s wants and at the front desk needs. “By doing this, there is not a conThe shop has 25,000 square feet of work space and employs 20 people. flict of interest in how the repairs are Jeff’s grosses about $2.5 million per performed,” said Joe.
kind of parts and repairs that can be expected within the guidelines established by the insurance companies,” said Joe. Jeff’s also makes their stance on this issue and an abundance of information about DRPs available on their website at www.jeffsautobodyrepair.com. Jeff’s centers their business on doing high-quality repairs and warrants all work done for life.
Jeff’s Auto Body Repair, in Austin, TX, was founded in 1971 and has been family-run ever since. The shop’s owner, Jeff Sessler, opened the shop 39 years ago and has his son, Joe Sessler, working in the shop with him.
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Inside the shop area
At Jeff’s they feel this policy allows them to openly discuss claims with customers without fear of losing a contract with an insurance company. Customer satisfaction is of the utmost importance at Jeff’s because they have always depended on customer referrals and repeat customers as their main source of business. “Our main goal is to provide An outdoor storage area for finished vehicles waiting to be picked up the customer with high quality repairs and factory replacement parts,” said Joe. “The heavy use of salvage and afJeff’s not only upholds a no DRP termarket parts limits the ability of standpoint in their operations, they DRP’s to do high quality repairs,” said also make a point to educate cusJoe. “We would rather spend more time concentrating on the integrity of our workmanship, than making sure that we use inferior parts and repairs tactics to save the insurance companies money.” Although Jeff’s does not have any direct repair relationships with insurers, they do process insurance claims as normal for customers. For more information please visit Street view and sign www.jeffsautobodyrepair.com. tomers on how the programs work. “We do take an aggressive ap6614 N. Lamar proach on educating the consumer Austin, TX 78752 about the DRP programs, and what 512-452-3373 Continued from Page 1
Liability Limits
in injury coverage, $50,000 in accident coverage and $25,000 in property damage coverage per accident. Now, the new minimum liability limits will increase to $30,000 for each injured person, $60,000 for each accident, while the property damage minimum
limits will remain the same. The new rate and coverage increase will not occur automatically on January 1; instead, the increase will be activated when the auto insurance policy is renewed in 2011 In Texas, insurers raise rates upon notifying regulators, but the Insurance Department can order a reduction and repayment of overcharges if it finds the rates are unjustified or excessive.
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 29
Second Insurance-Sponsored Study Confirms Texting Bans Ineffective, They Don’t Reduce Crashes It’s illegal to text while driving in most U.S. states, yet a new study finds such bans do not reduce car accidents and may actually increase insurance claims. Researchers at the Highway Loss Data Institute (HLDI) found no reductions in crashes after laws that ban texting by all drivers take effect. In fact, such bans are associated with a slight increase in the frequency of insurance claims filed under collision coverage for damage to vehicles in crashes. The findings are based on comparisons of claims in four states before and after texting bans, compared with patterns of claims in nearby states. The new texting ban findings are consistent with those of a previous HLDI study, which found that banning hand-held phone use while driving does not cut crashes. HLDI is an affiliate of the Insurance Institute for Highway Safety (IIHS). HLDI researchers calculated rates of collision claims for vehicles up to nine years old during the months immediately before and after driver texting was banned in California (January 2009), Louisiana (July 2008), Minnesota (August 2008), and Washington (January 2008). Comparable data were collected in nearby states where texting laws weren’t substantially changed during the time span of the study. This controlled for possible changes in collision claim rates unrelated to the bans—changes in the number of miles driven due to the economy, seasonal changes in driving patterns, etc. Young motorists are more likely than older people to text while driving. In all four of HDLI’s study states, crashes increased among drivers younger than 25 after the all-driver bans took effect. In California, Louisiana, and Washington, the increases for young drivers were greater than for drivers 25 and older. The largest crash increase of all (12 percent) following enactment of a texting ban was among young drivers in California. An IIIHS study that relied on driver phone records found a four-fold increase in the risk of injury crashes associated with phoning. A study in Canada found a four-fold increase in the risk of crashes involving property damage. The crash risk associated with texting hasn’t been quantified as precisely, but it may be comparable, if not greater, than the risk associated with phoning.
“Texting bans haven’t reduced crashes at all. In a perverse twist, crashes increased in three of the four states we studied after bans were enacted. It’s an indication that texting bans might even increase the risk of texting for drivers who continue to do so despite the laws,” said Adrian Lund, president of both HLDI and the IIHS. However, the National Safety Council said the report does not provide definitive evidence that all cell phone or texting bans do not and will not ever work. “Texting laws that are not effectively enforced could not be expected to have much safety benefit,” the NSC said. IIHS and the NSC have both reported that the combination of risk and exposure of cell phone use contributes to about 25 percent of crashes. No other form of distraction contributes to that many crashes. The National Highway Transportation Safety Administration reports driver distractions lead to nearly 4,500 deaths in 2009, while acknowledging the incomplete nature of police reporting could make the actual number of fatalities even greater than reported. HLDI’s new findings about texting, together with the organization’s previous finding that hand-held phone bans didn’t reduce crashes, “call into question the way policymakers are trying to address the problem of distracted driving crashes,” Lund said. “They’re focusing on a single manifestation of distracted driving and banning it. This ignores the endless sources of distraction and relies on banning one source or another to solve the whole problem.” Month-to-month fluctuations in the rates of collision claims in HLDI’s four study states with texting bans for all drivers didn’t change much from before to after the bans were enacted. Nor did the patterns differ much from those in nearby states that didn’t ban texting for all drivers during the study period. To the extent that the crash patterns did change in the study states, they went up, not down, after the bans took effect. Increases varied from 1 percent more crashes in Washington to about 9 percent more in Minnesota (the result in Washington isn’t statistically significant). “The point of texting bans is to reduce crashes, and by this essential measure the laws are ineffective,” HLDI’s Lund said. He cautioned that
30 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
“finding no reduction in crashes, or even a small increase, doesn’t mean it’s safe to text and drive, though. There’s a crash risk associated with doing this. It’s just that bans aren’t reducing this crash risk.” NSC emphasized the HLDI study has limitations, and was performed in states at a time when consistent, uniform and effective enforcement was not in place. “The validity of comparisons made between states relies on the assumption that texting bans are the only difference between the states,” NSC said. “Although texting bans included in the study did not decrease crash frequency, we do not know the reasons for this. IIHS and HLDI seem to suggest that texting laws might even be responsible for an increase in crashes in some states. That suggestion is speculative because there is no evidence that texting laws caused the increases.” Furthermore, NSC said recent enforcement projects in Syracuse, N.Y., and Hartford, Conn., had measurable impact in reducing texting behind the
wheel. “We are hopeful the increased attention to the issue will move more state and local law enforcement agencies to develop best practices to enforce these laws,” the Council said. Lund admitted that noncompliance is a likely reason texting bans aren’t reducing crashes. Survey results indicate that many drivers, especially younger ones, shrug off these bans. Among 18- to 24-year-olds, the group most likely to text, 45 percent reported doing so anyway in states that bar all drivers from texting. This is just shy of the 48 percent of drivers who reported texting in states without bans. Many respondents who knew it was illegal to text said they didn’t think police were strongly enforcing the bans. “But this doesn’t explain why crashes increased after texting bans,” Lund pointed out. “If drivers were disregarding the bans, then the crash patterns should have remained steady. So clearly drivers did respond to the bans somehow, and what they might have been doing was moving their phones down and out of sight when they See Texting Bans Ineffective, Page 31
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Toyota Bulletin Recommends Against Aftermarket, Rebuilt, and Salvage Parts Toyota USA has announced in a Collision Repair Information Bulletin (CRIB), that it not only has concerns about non-OEM structural components, but also doubts about exterior sheet metal parts that are usually considered “cosmetic” parts. Toyota is taking an aggressive position against the use of alternative replacement parts for Toyota, Lexus and Scion vehicles. Calling automotive safety and performance systems “sensitive,” and citing a lack of testing to determine alternative parts’ effect on vehicle safety, Toyota is recommending against the use of alternative parts, including aftermarket, rebuilt and salvage. “In light of several parts tests that have recently been conducted on untested structural aftermarket parts by collision repair professionals, Toyota has become increasingly concerned with how the use of untested imitation parts could potentially effect vehicle structure, airbag deployment and ultimately occupant safety,” said Roger Foss, National Field Support Manager, Toyota Customer Services.
“To help ensure shops and consumers are aware of the potential risks that may be associated with repairing a vehicle using parts that may be untested, Toyota is releasing [this statement] highlighting our concerns,” Foss said.
Toyota Statement: Toyota Lexus and Scion vehicles are engineered and manufactured as an integrated assembly of carefully designed and manufactured parts working as a system to provide predictable performance, safety and durability. To help preserve the performance of Toyota/Lexus/Scion vehicles, Toyota Scion and Lexus publishes detailed repair procedures and produces and sells Genuine Toyota/Lexus Parts, which are manufactured to the same specifications and tolerances as the parts installed on new Toyota, Lexus and Scion vehicles. Repairing a vehicle using Genuine Toyota/Lexus/ Scion parts and procedures can help return Toyota vehicles to pre-loss condition following a collision.
The use of Alternative Parts Due to the sensitive nature of the safety and performance systems and lack of testing to determine their effect on vehicle crashworthiness, Toyota, Lexus and Scion do not recommend the use of alternative parts for the repair of Toyota vehicles. This includes: ● Aftermarket Parts: Parts manufactured and branded by a company other than Toyota, Scion or Lexus ● Rebuilt Parts: Exterior sheet metal parts (including bumpers and wheels) removed from a damaged Toyota, Lexus or Scion vehicle and refurbished for resale ● Salvage/Recycled Parts: Parts removed from a previously damaged vehicle, cleaned up and then installed on a different vehicle. Overall Body Structure Genuine Toyota, Lexus and Scion Parts are constructed using metals with specific properties, thicknesses and stamping structures built to perform in a consistent and predictable way during a collision event. The use of non-OEM structural components may compromise the overall crashworthiness and occupant safety of Toyota, Lexus or Scion vehicles in a subsequent collision.
Supplementary Restraint System (SRS) Components Toyota, Lexus and Scion vehicles are equipped with several SRS components including airbags and seatbelt pretensioners, which are designed to help protect vehicle occupants from injury. These parts rely upon precisely manufactured sensors to detect a collision event and trigger the SRS components to deploy within milliseconds Continued from Page 30
Texting Bans Ineffective
texted, in recognition that what they were doing was illegal. This could exacerbate the risk of texting by taking drivers’ eyes further from the road and for a longer time.” Using a driving simulator, researchers at the University of Glasgow found a sharp decrease in crash likelihood when participants switched from head-down to head-up displays. This suggests that it might be more hazardous for a driver to text from a device that’s hidden from view on the
of an impact. The installation of parts branded by companies other than Toyota, Scion or Lexus that may not be tested to match Toyota, Lexus or Scion performance specifications may alter the structure of a vehicle and could result in improper operation of the SRS sensors and components. Exterior Sheet Metal Parts The exterior sheet metal components are often described as “Cosmetic Parts.” However, these parts are designed and tested as part of the overall vehicle and may help send impact energy to the SRS sensors. In addition, some of these parts may help Toyota, Lexus or Scion vehicles comply with several Federal Motor Vehicle Safety Standards (FMVSS) including hood intrusion in the passenger cabin, preservation of proper door operation following a collision and proper airbag function. Alternative parts may not be crash tested to verify compliance with these standards.
Recycled Parts Toyota, Lexus and Scion do not recommend the re-use of structural components that have been removed from a previously damaged vehicle. Although parts may appear equivalent, it may be difficult to identify previous damage, if a part has received collateral damage as a result of a prior collision or if the part has been subject to extreme weathering, corrosion or other detrimental environmental exposure. Furthermore, removing welded parts from a donor vehicle, may compromise the structural integrity of the parts being used.
See ARA Response next page
lap or vehicle seat. Texting in general is on the increase. Wireless phone subscriptions numbered 286 million as of December 2009, up 47 percent from 194 million in June 2005. Text messaging is increasing, too. It went up by about 60 percent in 1 year alone, from 1 trillion messages in 2008 to 1.6 trillion in 2009. The District of Columbia was the first U.S. jurisdiction to ban all motorists from texting. This was in 2004, and since then 30 states have followed suit. Nearly half of these bans have been enacted in 2010.
www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 31
Mickey Harris Paints Custom Dodge Challenger for NASCAR’s Richard Petty
Airbrush artist Mickey Harris painted a custom Dodge Challenger for racing legend Richard Petty this month. The car, a 2010 Dodge Challenger, was converted into a convertible-top vehicle by Petty’s Garage and Drop-Top Customs. The car is 11 months into development and should be done by early 2011. Harris’ art showcases key points in Petty’s career and the car as a whole
tells the story of Petty’s professional career. Harris airbrushed Petty’s crash on lap 106 of the 1988 Daytona 500 and, as depicted by eagles, Petty’s Medal of Freedom, America’s highest civilian award. Harris painted the car at Petty’s Garage in Level Cross, North Carolina. Once the car is complete Petty’s Garage will host an open house
Mickey Harris works on airbrushing the side of the Dodge Challenger
where fans can meet the people who worked on the car as well as Harris and Petty. For more information please visit www.mickeyharrisart.com. Richard Petty, Bob O’Gorman, and Mickey Harris
Mickey Harris’ art illustrates racecar driver Richard Petty’s life along the side of the vehicle
Recycler’s Association Reacts to Toyota Position Statement
Use of automotive recycled parts has been widely accepted for decades and there is a very long track record of their successful and safe use. Instead, Toyota launched into what seems to be a rather transparent attempt to boost sales of expensive new parts and malign perfectly good parts. In light of the 14 million Toyota recalls this past year alone (25.67 million units since 2005), it would seem that Toyota would be better served focusing more internally on Toyota’s own “genuine” safety concerns and quality control. Recycled parts are original equipment manufacturer (OEM) parts. They are fully functional and are in many cases identical to original parts. Recycled parts were new OEM parts at some point, yet Toyota is calling for the use of their own new parts in repairs. “Following the logic held by Toyota, the warranties of every one of their vehicles that has been involved in an accident could be in question given their assertion that parts that remain on a vehicle post collision ‘may’ only ‘appear equivalent,’” says ARA’s Chief Executive Officer Michael E. Wilson. Wilson goes on to state, “Toyota’s press releases have failed to cite any statistics indicating that recy-
cled parts are more dangerous than new parts. What probabilities of safety issues with recycled parts is Toyota working with?” Is Toyota really asserting that their vehicles are manufactured in such a way that if someone gets into an accident with a Toyota or Lexus that every single part of the vehicle is compromised, even if the accident only affected one part of the vehicle? ARA hopes that is not what Toyota is asserting, but it seems to be the logical conclusion from its stated position on recycled parts, regarding its own vehicles. Continued efforts to limit collision repair choices will only lead to higher repair costs and insurance premiums for consumers. Recycled parts are quality alternative that provide consumers significant additional benefits compared to new OEM parts: -Recycled parts allow consumers to save on costs while using parts identical to new OEM parts. -Recycled parts are much better for the environment, since no additional resources or energy were used to create an unnecessary new replacement part. -Auto recyclers provide warranties on recycled parts used in a repair, indicating that recycled parts are not used in an attempt to cut corners with customers.
32 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
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Toyota Sues Old GM for California Plant Damages Toyota is suing the company handling bankrupt General Motors’ assets, demanding $73 million in damages from the shuttering of a joint-venture California plant according to reports made by the Associated Press. Toyota Motor Corp. spokesman Paul Nolasco said the lawsuit was filed Nov. 24 for research and development costs that weren’t recouped because of the shuttering of New United Motor Manufacturing Inc., or Nummi, plant in Fremont, Calif. The lawsuit, filed in U.S. Bankruptcy Court Southern District of New York, targets so-called “old GM,” or Motors Liquidation Co., which is separate from General Motors Co., the Detroit-based automaker that is recovering after a U.S. government bailout. Separately, Nummi is demanding $360 million from Motors Liquidation Co. for costs related to investments in the plant that weren’t recovered. Nolasco said talks had been going on among Nummi, Toyota and the old GM for about a year, but were never resolved. Toyota feels the departure of GM from the joint venture unfairly left Toyota to sort out what was left, he said. Nummi was a 50-50 joint venture between Toyota and General Motors,
which began in 1984, and was heralded in its heyday as a new partnership that crossed borders, allowing both sides to learn from each other. After General Motors pulled out, Toyota stopped production at Nummi in April. Since then, Toyota has forged a new relationship with U.S. luxury electric-car maker Tesla Motors Inc., which has joint-use opf the plant. Tesla has set up a factory at the Nummi site for the next-generation electric sedan in partnership with Toyota. Model S sedan production is expected to start 2012, and the plant has already begun hiring. In November, General Motors pulled off an IPO worth $15.8 billion, signaling the revival of an American icon that collapsed into bankruptcy protection and was rescued with a $50 billion bailout from U.S. taxpayers. Toyota, which makes the Prius hybrid and Lexus luxury models, dethroned General Motors as the world’s biggest automaker in 2008. Since last year, it has suffered a serious image problem because of massive recalls around the world, and faces hundreds of lawsuits of its own in the U.S. related to accidents.
ASRW Announces Improved Technology for NACE & CARS Automotive Service & Repair Week (ASRW) recently unveiled a new website and portal design for its two flagship events, the International Autobody Congress and Exposition (NACE) and the Congress of Automotive Repair and Service (CARS). Features of the web design on NACE and CARS include a modern, streamlined look, access to all the events’ social networks (including a new Flickr photo gallery and YouTube video library), videos from key sessions of the 2010 event, and a new community section featuring real-time news and updates from various industry organizations. In addition, the online applications for 2011 exhibit space at NACE and CARS are also now available on their respective websites. A completely new feature is the custom landing page for ASRW. Located at www.ASRWevents.com, this site was created to serve as a convenient starting point for all ASRW events, and will strengthen the branding of ASRW. “Our overall goal was to create clean, sleek sites with improved easeof-use for our attendees and exhibitors,” said Lindsay Roberts, ASRW/NACE/ CARS show director.
Additionally, significant modifications were made to the “CONNECT” attendee and exhibitor portals. Further aligning them with the online social networking system of the same name, the portals personalize the attendee and exhibitor experience. The sites enable interaction between attendees and exhibitors throughout the year. The new portals feature a new layout, color scheme and easy-to-use navigation. The portal is accessible by e-code through the NACE, CARS and ASRW sites to attendees and exhibitors who have previously participated in the event. “We’ve taken some excellent steps forward this week with the resources we’re able to provide our audience. The value of these tools continue to differentiate this event, and we are confident they will have a positive impact on our attendees and exhibitors,” said Roberts. The new sites are located at www.NACEexpo.com, www.CARSevent.com, and www.ASRWevents.com. For more information on exhibiting at ASRW 2011, contact Jeff Rogers at jrogers@hanleywood.com or 972536-6367.
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www.autobodynews.com | JANUARY 2011 AUTOBODY NEWS 33
Custom Corner
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Rich Evans’ Academy Becomes Reality at Ohio Technical College with Ed Attanasio
and we imagine that many of them will be attracted to the Rich’s curricuEd is filling in for Rich this month be- lum.” cause Rich is upwith to his axles with his Chasidy Rae SiskOTC is thrilled to be associated projects. It gives Ed a chance to re- with Rich Evans for obvious reasons, King said. “We’re pleased to be partport on some exciting developments. nering with Rich and we’re looking Rich has a lot of things going on, as forward to tapping into his huge do many custom builders, but who reservoir of skills and knowledge. He else has his own academy of custom will bring his excitement for this indesign and fabrication? Read on. dustry to the school and we know that They don’t have a football team or our students will benefit on many levcheerleaders, but now the Ohio Techels.” nical College (OTC) has something no Evans was amazed by the proother institution of higher education grams at OTC when he first visited can offer its students. It’s called the the college a few years ago, he said. Rich Evans Academy (REA), and it’s “My first impression of OTC was that the newest division within the autothis school is where I’d like to be if I motive curriculum at OTC, the largest were back in school. They care about technical college of its kind in the their students and their futures. You country. Last year, the school was secan tell when you attend functions at lected as the best top technical college the school and see the layout of their facilities. They’re always trying to make their curriculum better by offering a wide range of great programs. They want their students to learn and grow, and they place so many of their students in great jobs that it proves the value of what they teach.” A lot has changed in the world of automotive technology since Ohio Technical College opened its doors 40 years ago. With V8 muscle cars making way for high-tech hybrids and the days of do-it-yourself repairs being replaced by professional technician service, the college is proud to be on the cutting edge of every aspect of automotive technology. King knows that REA will hopefully produce a great car new generation of automotive restoration The Rich Evans Academy will launch this fall professionals that will be attractive to to provide advanced automotive bodywork body shops throughout the country, he classes at the Ohio Technical College said. in the nation. “The school is always looking to The REA will open its doors and offer its students the latest and greatkick off its first 12-week module in est in the world of car restoration, fall 2011, after getting all the ap- paint techniques and customization, provals from the accreditation board, and by aligning itself with top inaccording to OTC’s Vice President of structors and sponsoring companies, Enrollment Management/Technical we’re stepping up in a big way,” King Training Tom King. The program’s said. “By creating the Rich Evans capacity will be 25 students four times Academy, a special division of the per year for a total of 100. We expect college’s curriculum that hopes to it to really take off. We train 200 auto offer those students who want to debody students annually in our college velop new skills under the tutelage of by Ed Attanasio
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34 JANUARY 2011 AUTOBODY NEWS | www.autobodynews.com
Rich Evans.” What was the genesis of the REA? “It’s a program that Rich and I came up with together to really teach customizing cars in-depth and impart his advanced autobody techniques with this program,” King said. We’ll be videotaping everything Rich does for us, so that students can refer to them at any time. It’s a great tool for studying all of his techniques in detail.”
our program. For hammer and dolly work, we’ve got a workstation that they can build for themselves, to store their tools for the program. Helping our students to be organized in their work is very important, because we’re teaching them how to be effective in a shop environment.” Other classes as part of the REA’s curriculum will include specialized instruction in paint, fabrication and tool-
Tom King received the 2009 National College of the Year Award on behalf of the OTC in 2009
The classes offered by the REA will be geared toward the advanced OTC students, King explained. “We’re going to incorporate many of the unique skills that Rich has developed over the years, including his way of doing things and creating an organized and methodical way of working and bring them to the college. The REA will be an advanced automotive repair program for those students who really want to excel. “Another component Rich will offer to the college includes his additional frame straightening techniques to complement what we’re already teaching,” King said. “He’s going to share his theories on pulling frames that he uses to help students to be more efficient in the field.” The REA will also teach its students how to organize the production process, Evans-style, King said. “One of the things Rich does is designs and builds his own workstations, and we’re going to incorporate them into
ing, just to mention a few, King said. “We’ll be teaching advanced removal techniques; waterborne painting techniques; different spray out methods; and proper PSI to use for different types of paint. All of our airbrushing is done using waterborne paint. Rich is going to get into fiberglass and plexi glass fabricating to create your own plugs and molds; advanced TIG welding; and fabrication tooling; smoothing and curving metal using the English wheel punishing hammer. Those are some of the things we’re looking to do at the REA.” Skilled students will be able to spread their wings in a big way at the REA, King said. “These are more advanced autobody techniques that can help students to hone their skills a little more and develop their techniques even further. If our students want to get more into customization work, these classes will lay the foundation for those skills. They will be able to learn things that you wouldn’t nor-
mally see in your average auto body shop.” King has also added some duties to Evans’s role at OTC, he explained. “We’re bringing Rich in as a “Master Advisor” to help us evaluate and improve the existing Collision Repair and Classic Car Restoration programs. In this capacity, Rich will be working closely with staff and student and making recommendations to the college on how to improve curriculum, training methods and utilize the most current advanced techniques used in the industry.” Ohio Technical College (OTC) began in 1969 as the Ohio Diesel Mechanics School, conducting six week diesel training courses in Cleveland’s Warehouse district. Founded by Julius Brenner, the school began hitting its many growth spurts in 1971 as the demand for diesel tech training grew at a rapid pace and students moved into a larger facility to accommodate proper equipment. From that day in the early 1970s, the school hasn’t stopped expanding, changing its name several times—first to the Ohio Diesel Technical Institute, then
Program. In 1993, the college was one of 133 technical schools nationwide to participate in the Federal Governments New Direct Loan Program. Today, Julius’ son Marc Brenner serves as president of OTC while his grandson Jordan Brenner is the admissions/marketing manager of this family-owned school. More than 1,000 students are enrolled and 190 full-time employees work at the college. Newly purchased buildings and houses are being converted into classrooms and parking lots to expand the campus footprint. Most recently, the school’s branch campus PowerSports Institute (PSI) Rich Evans (left) is ready to impart his skills and knowledge to has moved into a OTC’s students alongside Director of Enrollment Tom King (right) 210,000-square-foot In 1989, a building purchase facility in nearby North Randall, Ohio, added 500,000 square feet to the comto provide technical training on motorplex and the school created the Mocycles, snowmobiles, personal watertorcycle and Small Engine Training craft, ATVs and more.
to Ohio Auto/Diesel Technical Institute and the Ohio Auto Diesel Technical College—before deciding on Ohio Technical College in September 1997 to reflect its mission to provide premier technical training in the world of modern mechanics.
Drawing students from all over the country, OTC is an Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT) college. Students can choose from a wide variety of technician training programs in Automotive, Diesel, Auto-Diesel, Collision Repair, Classic Car Restoration and PowerSport Technology as well as specialization in High Performance and Racing, BMW, Alternative Fuel Vehicles, CDL Truck Driver Training, Custom Paint and Graphics, Power Generator Systems and a 12-month Welding Program partnered with Lincoln Electric. “It’s important for the college to give back to the industry and community by partnering with quality manufacturers and local businesses to create real-world training situations for our future technicians,” adds King. “The Ohio Technical College team is extremely proud of our students as well as our academic programs in the automotive and powersports industries. We look forward to another exciting, rewarding and successful year for the students, staff and school.”
Ray LaHood Fights Loophole Favoring Drunk Drivers
Too many motorists stopped for suspected alcohol impairment have found that just saying no to a request for a roadside breath test improves their odds of beating a conviction, federal authorities say. “We know that refusing a breathalyzer is a persistent, ongoing problem,” said U.S. Transportation Secretary Ray LaHood. “There’s a loophole here.” Announcing a “no refusal” strategy December 13 as part of a holiday crackdown on drunken driving, LaHood said the federal government is advising law officers to use a search warrant to quickly obtain a blood test from drivers who have refused to take a breath test. “We know people are going to try and find ways to get out of very bad, dangerous behavior,” he said, “and we’re not going to let that happen.” The strategy—already being used in nine states—involves having local judges on call for requests from police for a search warrant in a suspected case of alcohol impairment, just as is done to authorize a search for illicit drugs during a traffic stop. Only in this case, the blood test is the means of obtaining evidence. Additional personnel trained in
blood collection also are part of the effort. LaHood, at a news conference held in the lobby of the Arlington County Detention Center, was flanked by a variety of state and local police officers from around the country, some of whom told reporters their testing of the program is already showing it to be a success. Sheriff Craig Webre of Lafourche Parish, Louisiana, told reporters that if drivers “refuse to submit to a blood-alcohol test, the deputy will apply to the court for a search warrant, ordering the subject to submit to a blood test.” “This process enhances the ability of the prosecutor to close loopholes and criminally prosecute drunk drivers,” he said. The law supports the strategy in some 30 states, but most of them are not currently using the warrant initiative, officials said. Meanwhile, based on 2005 figures, nearly one in four suspected drunken drivers refuses a breath test, according to an average of reports from 38 states. LaHood blames defense attorneys who counsel repeat offenders to avoid providing scientific evidence— the results of a breath test—that could help convict them when a drunken driving case comes to trial.
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Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who works in a variety of fields and subjects. She can be contacted at crsisk@chasidyraesisk.com.
Company Connections
Gunpowder, Auto Refinishing, and Jeff Gordon—Two Centuries of DuPont with Chasidy Rae Sisk
What’s the connection between black gunpowder, auto refinishing, and Jeff Gordon? In a word: DuPont. On December 10, 2010, DuPont held a grand opening to dedicate their new Coatings Technology Center at the Experimental Station in Wilmington, Delaware, only a short distance from where DuPont’s legacy began with the manufacturing of gunpowder at Eleutherian Mills—now known as Hagley—in 1802. The opening celebration consisted of a tour of the new facility, and Hagley Museum and a memorable lunch with NASCARchamp Jeff Gordon. DuPont’s Experimental Station in Wilmington is the site of extensive research that has lead to many gamechanging inventions, such as nylon, Kevlar and Teflon. DuPont invited a small group of media representatives to tour the new facility and learn about the many steps involved in their coatings technology process. As a Wilmington resident with a long-term interest in DuPont’s presence in our community, I was more than happy to be invited.
Jeff Gordon (file photo)
After beginning the day with a complimentary breakfast at the DuPont Country Club, the tour group boarded a chartered bus which carried us the short distance to the Experimental Station where the dedication ceremony was to take place. While guests and DuPont employees huddled in a heated tent, DuPont executives talked about the importance of the new center and their goals as a company.
Robert Roop, the manager of the Coatings Technology Center, spoke of his excitement in having DuPont’s other industries in close proximity. The Chief Science and Technology Officer, Douglas Muzyka, said a goal of the new center was to bring customers and science together to improve modern automobile coatings. According to Lewis Manring, Vice President of DuPont Performance Coatings (DPC), DuPont’s core value has been based on innovation for over two hundred years, and the invention of Duco paint in 1920 brought color to the automobile industry. (According to the company’s website, DuPont began producing nitrocellulose-based pyroxylin lacquers after acquiring the International Smokeless Powder & Solvents Company in 1905. The purchase of the Arlington Company ten years later deepened the company’s involvement. Although they were quick drying and widely used on brass fixtures, conventional lacquers were too brittle for more demanding uses. By the 1920s, however, the automotive industry had become a huge potential market. Although mass production had vastly increased output, because conventional paints took up to two weeks to dry, finishing remained a bottleneck. In 1920 DuPont’s chemists produced a thick pyroxylin lacquer which was quick drying but durable and that could be colored. DuPont marketed it under the name Viscolac® in 1921. Assisted by General Motors engineers, DuPont refined the product further and renamed it Duco®. The success of Duco led to further experimentation with finishes and, late in the 1920s, DuPont developed Dulux®, an even more effective alkyd finish.) John McCool, President of DPC, assured customers that the Coatings Technology Center shares DuPont’s goals of innovation, differentiation and productivity, and by emphasizing efficiency and effectiveness, they will focus on “developing things our customers can use so they can be better in the future as well.” After McCool cut the blue ribbon to dedicate the new Coatings Technology Center, we were lead into build-
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ing 402, one of two buildings at the Experimental Station, for their tour of the facility. Upstairs our tour was divided into six groups, with DuPont employees joining the tours while employees at the Coatings Technology Center acted as tour guides. Dom Barsotti and Violeta Petkovski began by discussing the analytical aspect of DuPont’s Coating Technology Center in a short presentation titled Measurement Science and Technology. Their goals are quality, regulatory support, stability and performance. DuPont paints are comprised of twenty to thirty ingredients, and the analytical department ensures that the components are combined in the correct proportions. There are three layers: the first protecting from corrosion; the second providing color; the third acts as a protecting gloss. When a defect is found, such as
roughness in the finished surface, analysts search for impurities. The methods range from spectroscopy to chromatography and microscopy, with other, more exotic techniques, available as well. In discussing Undercoat Technology, Junping Li, Pat Horan and Scott Ryan listed their goals as environmental friendliness, productivity, and corrosion resistance. Undercoats consist of multiple layers of primers and sealers, and DuPont works to provide a highly protective coating system, utilizing anti-corrosive pigments. Waterborne paints such as CromaxPro® utilize wet-on-wet technology which minimizes flash time between coats as there is no longer a need to wait for the paint to dry before applying a subsequent coat. Additionally, this is a paint that will deliver performance in a single coat. Balancing VOC, productivity and
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appearance are the goals of Clearcoat Technology, according to Joan Hansen and Irving Bell. The clearcoats from DuPont Performance Coatings consist of solvents, monomers and initiators. They also provide UV protection in their clear gloss to help maintain appearance of the paint. This department particular performs small scale adaptation of what would occur in a production facility, slowly increasing to a plant-size scale to reduce volatile content and enhance productivity. They focus on improving the cure rate which is the key to early buffing, as well as consistency which ensures that the customers will receive the same product time after time. Tony Moy, a dispersion engineer, and Rick Wilson lead the discussion on Pigmented Dispersion. Their focus is on colored pigments, the dispersion process, and quality analysis. They begin by breaking the pigment down in a milling process, along with dispersant, grind resin and media. The media comes in various densities, sizes and appearances, all of which influence the correct color. Their main goal is stability which will ensure that
the paint will settle rather than separate into layers on the shelves. Good dispersion must diffuse uniformly and will appear homogenous, but poor dispersion results in voids from pigment separation. Dispersion is required for solid colors, and the pigments, the color portion of the paint, determine whether the paint will be opaque or transparent.
and customer driven attributes. Naturally, the colorcoat is the visible layer. It is made from a mixture of pigment dispersion, polymers (large, filmforming resins) and liquid additives, which give viscosity to the paint. Another focus of the Colorcoat department is meeting regulatory needs and helping their customer to do so, by removing some of the organic solvents from their mixture and lowered the intrinsic viscosity of polymers. They have also replaced 90–95 percent of the formerly organic solvents with water, often referred to as the “universal solvent.” DuPont tries to assist customers by providing them with quality product that meets industry standards. To improve productivity, they’re working on reducing dryManagement cuts ribbon to officially open the ing time, improving the cure rate new DuPont Coatings Technology Center. Left to and increasing hiding strength of Right: Robert Roop, North America Technology Ditheir paints. Employing the princirector Lewis Manring, Vice President Technology John McCool, President, DuPont Performance ples of rheology, the science of Coatings Doug Muzyka, Sr. Vice President and flow, helps them understand the inChief Science & Technology Officer teractions between pigment disperThe Colorcoat presentation, sions, polymers and additives. guided by Burt Palmer and Brian Mechanically, they work to improve Priore, emphasized the importance of chip resistance, hardness, color duraaesthetics, environmental stewardship bility and adhesion through the use of rigorous and controlled processes which develop and control the architecture of the polymers. In their discussion on Color Science, Dan Benton and Judy Obetz list their department’s goals as providing state-of-the-art color technology, outstanding color matches, and color tools. The use of color proofing has improved customer productivity, Genuine Genu Ge nuin nu inee Mitsubishi in Mits Mi tsub ts ubis ub ishi is hi replacerrep epla ep lace la ce-ce and DuPont Performance Coatings ment ment Crash CCra rash ra sh Parts PPar arts ar ts are are close cclo lose lo se at at now employs its Xpert Mixing System hand hand through tthr hrou hr ough ou gh the the following ffol ollo ol lowi lo wing wi ng which allows them to select the color, quality qual qu alit al ityy dealerships. it deal de aler al ersh er ship sh ips. ip s. They TThe heyy offer he offer adjust the color, and blend it to judge exceptional acceptability. They use lights and miexce ex cept ce ptio pt iona io nall customer na cust cu stom st omer om er service, sser ervi er vice vi ce,, ce croscopes to verify accuracy and conwide wide selection ssel elec el ecti ec tion ti on of of in-stock in-s in -sto -s tock to ck sistency of color, which improves parts part pa rtss and rt and the the experience expe ex peri pe rien ri ence en ce productivity for customers by faster necessary nece ne cess ce ssar ss aryy to ensure ar eens nsur ns uree your ur your cycle times and increased profitabilrepairs repa re pair pa irss proceed ir proc pr ocee oc eedd smoothly. ee smoo sm ooth oo thly th ly.. ly ity. DuPont will release a new color deck during the second week of JanuT E XAS ary, 2011, and new color technology is scheduled to debut in April 2011. West Loop Mitsubishi Crossing the parking lot, we were SAN ANTONIO greeted by John Moore in the pro800-224-1968 cessing lab. He explained the goals of the application process are customer (210) 681-4583 Fax process simulation, product robustM-F 7:30 am - 6:00 pm ness testing and spray characteriza#1 Volume Dealer in tion. These scientists thoroughly test All of Texas. under what conditions the product wlparts@lonestar-auto.com works or does not work in order to guarantee product performance. By
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using vertical and horizontal spray robots, they are able to perform statistically designed experiments to predict performance and ensure product robustness while emitting near zero emissions. The labs are designed to allow testing in different environments since the products must work everywhere. Additionally, DuPont has a group who tests their products in the field in various geographies before a product is released, and they are always eager to receive feedback from customers. In the Product Testing Area, Ross Morgan and Kurt Hankerson, along with their team, test products to ensure that they deliver what they are designed to do. In order to test durability, they use accelerated simulations, predictive performance and produce difference experiments. Though products are tested by a panel at DuPont’s facility in Florida, due to the high sunlight and humidity, this group improves timelines by administering accelerated tests through the use of machine-generated sunlight, humidity and UVB light which tests the products’ reaction to exposure to these elements. To test the products, they cycle high-to-low temperatures on a sample to test its reaction to various environmental factors, and they test chip resistance by firing stones at painted panels. For any product that DuPont wants to introduce, the Product Testing Area experiments to ensure that the product meets manufacturer requirements; however, their tests can also be based upon customer requests. Once the tour of the Coatings Technology Center was completed, we guests continued to Terrace on the Hill, DuPont’s restaurant at the Experimental Station, where we were treated to a buffet-style catered lunch. After sampling a special cake made to celebrate the dedication of the new facility, we were introduced to the promised special guest, NASCAR’s four-time Winston Cup Series champion, Jeff Gordon. Gordon entered the restaurant to thunderous applause and cheerfully answered questions that were relayed to him by a DuPont employee, Harry Hall. He discussed his sponsorship and happiness with the results from the 2010 season and his goals for next season. He also mentioned his appreciation at spending the holiday season with his wife, Ingrid, and their two children, Ella and Leo. After all quesSee Two Centuries of DuPont, Page 38
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I-CAR Names New CEO for 2011 The International Board of Directors of I-CAR announced that it has appointed John S. Van Alstyne to the position of Chief Executive Officer and President of the organization. Van Alstyne will assume the responsibili-
ties of CEO and President on January 1, 2011 replacing current CEO John Edelen who last year announced his plans to retire from the organization. Tom Moreland, Chairman of ICAR’s International Board of Direc-
CIF Announces New 2011 Board of Directors
At the annual Collision Industry Foundation (CIF) meeting at the Mandalay Bay Resort & Casino in Las Vegas, the CIF elected its 2011 Board of Trustees to carry on the Association’s initiatives throughout the coming year. The Board of Trustees welcomes trustees William Shaw as Chair, John Bosin as Vice Chair, Jim Muse as Treasurer, and new board trustee Rod Enlow as Secretary. Remaining in their positions as trustees are George Avery, O. Guy Bargnes, Jody DeVere, Harry Hall, Chuck Mayne, Brian Newberry, Russell Thrall III, Marcy Tieger, Tracy Tramm and Doug Webb. CIF also welcomes new board trustee Stacy Bartnik in addition to past chair Jeanne Silver who will continue to serve as a trustee. William Shaw stated “As the incoming CIF Chair, I am both honored and proud to be involved in such a worthy foundation and the industry it represents. The Collision Industry Foundation will celebrate its tenth year anniversary next April, and I hope I can carry on the legacy of so many past Chairs, most recently Jeanne Silver and Doug Webb. The current officers and trustees of the CIF are committed to carry on the foundation’s mission of raising funds and volunteering, supporting charitable Continued from Page 37
Two Centuries of DuPont
tions were answered, DuPont’s guests followed Gordon back to building 402 where we were given the opportunity to take photographs with the NASCAR legend and receive a personalized autograph. Jeff Gordon left a lasting impression and was a memorable highlight of Friday’s event. Guests boarded the chartered bus once again and we were taken down the road to Hagley Museum where they received a tour of the gunpowder mill where DuPont’s legacy began. We saw exhibits on workers who operated the gunpowder mills during the late nineteenth century, the stone mills and waterwheels, and simple machine technology such as wheels, axles,
needs of the industry and communities in which we serve. From immediate past chair Jeanne Silver, “I was among the founding members in 2004 and have been involved as a trustee since we officially formed a Board of Trustees. During my term as chair for the past two years, we worked on the Clean Downtown Detroit Project and Gleaner’s Food Bank. Out of this we took the effort further this year to develop the Shops Against Hunger program. Gerry Brisson of Gleaners helped us realize that hunger in America has touched families it never has before and the need for food, money and volunteers is tremendous. CIF fully supports a continued effort to help food banks across the country, and there is not a community in the country where a shop or other industry related organization cannot get involved somehow. Silver added, “We are also funding title fees for Recycled Rides™ this year. Our recent fundraiser held at NACE was a huge success and we hope to repeat this event next year. I want to commend the board of trustees for their work and commitment to the Foundation and I will always be involved somehow with this wonderful organization.”
levers, gears and pulleys. One display focused on Eleutherian Mills as it was the first DuPont home in America, and this exhibit included domestic, farm and powderyard vehicles from up to two hundred years ago. Another exhibit focused on the Explosives Era when Hagley manufactured black gunpowder. DuPont Science and Discovery demonstrates the company’s transition from a manufacturer of explosives in the nineteenth century to an ultra-modern research firm which does much more than coatings, one which has improved many aspects of everyday life. The museum efficiently concluded the grand opening and dedication of DuPont’s Performance Coatings’ new Coatings Technology Center by reminding customers of DuPont’s twocentury legacy and continued success.
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tors, made the announcement. “The ICAR Board of Directors, through the work of the Board’s CEO Search Committee, has gone through an extensive search and candidate selection process. We had access to a solid pool of highly qualified candidates from which to make our selection,” said Moreland. “From among this rich candidate pool, John Van Alstyne emerged as the leading candidate. John’s extensive experience and his history of success in the automotive industry will be considerable assets as I-CAR continues its work to address the training needs of the auto collision inter-industry,” Moreland said. Van Alstyne brings twenty-five years of automotive industry experience and breadth, having previously worked for: an electric vehicle OEM; global Tier One suppliers; a leading provider of engineering and strategic consulting services to the industry; and, in the automotive aftermarket. He also worked in the area of special metals, dealing with issues of metal joining and welding. He earned a Master of Business Administration from
Michigan State University, participating in its Advanced Management Program, and he has a Bachelor of Business Administration in Marketing from Western Michigan University. He is Lean Systems certified and has been Six Sigma Black Belt Champion trained. “Joining I-CAR is very exciting,” said Van Alstyne. “I firmly believe that education is the critical foundation for individual success and fulfillment, and this is I-CAR’s core mission. Further, I see I-CAR as uniquely positioned and equipped to serve the interests of our stakeholders, as well as the endconsumer, working to improve automotive repair processes, technologies and business practices. I look forward to working with the inter-industry and the I-CAR team to continue to advance our industry’s capabilities and the value I-CAR provides to all our stakeholders.” I-CAR’s current President and CEO John Edelen, offered his congratulations to his successor. For more information please visit www.i-car.com.
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U.S. Wants Tougher Repair Rules on Rental Cars The top U.S. auto-safety regulator said he is “working through the bully pulpit” to make sure rental-car companies such as Avis Budget Group Inc. and Hertz Global Holdings Inc. complete repairs on recalled vehicles. National Highway Traffic Safety Administrator David Strickland said he’s working to publicize the investigation he opened November 25 into the repair history of 29 U.S. models in rental-car fleets according to reports made by Bloomberg News. Thirty percent of recalled vehicles in the United States aren’t repaired, according to agency data. The recall process treats rental-car companies the same way as retail customers, who must be notified about defects and aren’t required to fix them. Clarence Ditlow, executive director of the Washington-based Center for Auto Safety, said rental-car companies should be held to the same standard as auto dealers, who can’t sell a car if the repairs aren’t complete. “If there’s a safety recall, there’s a safety recall,” Ditlow said. “When rental
cars are subject to a recall, the car should be repaired before the consumer uses it.” Laura Bryant, a spokeswoman for Enterprise Holdings Inc., the largest U.S. rental-car company, didn’t have an immediate comment. Paula Rivera, a spokeswoman for Hertz, and John Barrows, a spokesman for Avis, didn’t respond to inquiries. The Center for Auto Safety petitioned the Federal Trade Commission in August to look into whether Enterprise rents to its customers before recall repairs have been completed. NHTSA works with domestic and foreign automakers to issue recalls for safety-related defects. Automakers, in turn, notify customers about repairs, which are done at no charge to vehicle owners. There can be months of delay between the time a manufacturer notifies NHTSA about a defect and when vehicle owners are informed of a recall, Ditlow said. NHTSA could require carmakers to notify rental companies sooner, he said.
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International Auto Glass Safety (AGRSS) Conference Meets Success in Chicago, Ill.
The sixth annual International Auto Glass Safety (AGRSS) Conference garnered rave reviews from attendees. The event was held October 27-28 in Chicago, Ill. Attendees heard from several safety group representatives, including Jill Braselton with Safe Kids USA, a group dedicated to child safety, and automotive safety design expert Ben Kelley of the Center for Auto Safety. In addition, participants received tips for preparing for a third-party validation, marketing AGRSS in their businesses and an inside look at the third-party validations that have been conducted so far. On the second day of the conference, several insurance agents were on-hand to participate in an AGRSS insurance/consumer awareness program. Insurance agents earned CE credits for the sessions, and auto glass company representatives were able to network with agents from across the Midwest region. This year’s conference was held at the Drury Lane Conference Center in Oakbrook Terrace, a suburb of the Windy City.
NHTSA Proposes Mandatory Backup Cameras in New Cars
U.S. auto-safety regulators proposed requiring backup cameras on all new vehicles by 2014, under a rule released December 6 intended to prevent drivers from backing over pedestrians. The National Highway Traffic Safety Administration, which published the proposed rule, said an average of 292 people die each year from back-over accidents, which primarily kill children and the elderly. “There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle,” Transportation Secretary Ray LaHood said in a statement. The rule will benefit suppliers such as Gentex Corp., said David Leiker, an analyst with Baird Equity Research. He said in a research note that Gentex’s rear-camera display system, with an LCD screen that is visible when the vehicle is in reverse, would satisfy NHTSA’s proposed requirements. A rule to enhance rear-view visibility for drivers was required by a 2007 law named after Cameron Gulbransen, a 2-year- old from New York who died after his father accidentally backed over him.
NABC Establishes Inter-Industry In-Language Initiative At its November 2, 2010 board meeting, the National Auto Body Council (NABC) voted to establish an inter-industry initiative to explore and address the needs of the growing number of non-English-speaking employees within the collision industry. The goal of the initiative is to facilitate equal access to industry training, services and products for non-English speakers, supporting NABC’s core mission of enhancing the image of the industry. Under the auspices of NABC, the inter-industry will develop strategies to enhance the working experience and quality of work product of non-English speakers. Practicality dictates that one nonEnglish speaking population be the initial focus of the inter-industry effort. Because the Spanish-speaking community was identified as the largest and fastest growing segment of the U.S. population, NABC will start there. The concept of language outreach within NABC started at the organization’s July 2009 annual planning meeting. George Avery, then NABC president, suggested that a “Knowledge Community” be established to answer three basic questions; is there a need for in-language outreach in the collision industry?, if so, what are those needs? and is there anything NABC can do, in
accordance with its mission, to meet these needs? Avery recruited fellow board member Karen Fierst to spearhead the initiative. Fierst then set out to find interested, informed people willing to serve on the Knowledge Community. The Knowledge Community has worked together for over a year now. It consists of Active Co-Chair Javier Avalos (Ina Road Auto Collision), Advisor/Co-chair Al Estorga (Estorga’s Collision Repair), German Mejia (ICAR Southeast Regional Manager), Gene Lopez (I-CAR Southwest Regional Manager), Denise Pina (Brea Auto Body) and Ben Mendoza (Kelly’s Body Shop). Fierst serves as NABC’s board member and the initiative’s facilitator. The group has already begun discussions regarding several pertinent issues. These include the fact that Spanish speakers from different geographic areas use different terminology and the challenges that surface when translators/interpreters have no background in the automotive or collision industry. NABC’s in-language initiative will conduct its first formal meeting of said stakeholders during CIC Week in Palm Springs, California this coming January. Please visit www.autobodycouncil.org for more information.
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