2 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
2015 ABAT Prevailing Practices Study . . . 22
ASA-CO Hosts LEAN Shop Efficiency
Training Seminar . . . . . . . . . . . . . . . . . . 4
Catastrophic Losses in Texas Will Be Well
Over $1 Billion For 2015, Says Insurance
Driven Brands Acquires CARSTAR Canada and Announces Senior Leadership
Changes at CARSTAR US. . . . . . . . . . . 14
Eight Honda and Acura Vehicles Earn
a 2016 TOP SAFETY PICK+ Rating
from the IIIHS . . . . . . . . . . . . . . . . . . . 39
Website . . . . . . . . . . . . . . . . . . . . . . . . . 9
Electronic Paintless Dent Reduction
Welders in NM and West TX. . . . . . . . . . 4
Fiat Chrysler to Pay $70 M U.S. Auto
Learned in 'Operation Paint Job' Sting. . . 1
First Autonomous Buses Will Hit the Road
Company to Distribute Nitrogen Plastic
El Paso Body Shop Owner Says Lesson Service King Hosts Hire a Veteran
Development Day. . . . . . . . . . . . . . . . . . 4
Shops in Louisiana and Around Country See ‘Adjusted’ Labor Rates After
State Farm Rezones Markets . . . . . . . . . . 1
Texas Vehicle Crashes and Fatalities Continue
to Rise According to Insurance Council . . 18
COLUMNISTS
Device introduced at SEMA . . . . . . . . . 10 Safety Fine. . . . . . . . . . . . . . . . . . . . . . . 4 In Spring 2016, Swiss Company Says
it Can Control Fleets. . . . . . . . . . . . . . . 46
Freer Auto Body’s Cookies and Cocoa
Event Held in IL to Help Others Have
a Nice Holiday . . . . . . . . . . . . . . . . . . . 34
GM Approves Spanesi Benches & Jig
System for GM Vehicles. . . . . . . . . . . . 34
Google Compare Sells Insurance
Comparisons Only . . . . . . . . . . . . . . . . 35
Attanasio - 5 Smart Marketing Moves
Hyundai-Kia Involved in OIN Patent
Attanasio - It’s a Doggone Good Life for
I-CAR® Announced 2015 Recipients
to Make in 2016 . . . . . . . . . . . . . . . . . 30
a Body Tech and His Best Friend . . . . . 26
Luehr - The Happy, Well Informed
Customer . . . . . . . . . . . . . . . . . . . . . . 28
NATIONAL
2 Fiat Chrysler Dealerships, Closed
After Years of Bankruptcy Litigation,
Are Reopening . . . . . . . . . . . . . . . . . . . 45
Non-Agression. . . . . . . . . . . . . . . . . . . 35 of Jeff Silver and Russ Verona Awards
at SEMA . . . . . . . . . . . . . . . . . . . . . . . 43
Integration Between PartsTrader and Axalta’s ProfitNet Said to Simplify
Tasks for Body Shops . . . . . . . . . . . . . 43
Melissa Miller, CARSTAR’s New VP of Operations, Discusses New Role
and WIN Participation . . . . . . . . . . . . . 16
3M™ Introduces Impact Resistant
New Year Brings the Collision Industry
American Honda is Among Industry Leaders
OpenbayASP App Monitors Car repairs
Structural Adhesive . . . . . . . . . . . . . . . 38
with Eight Honda and Acura Vehicles
Some ‘Unfinished Business’ from 2015 . . 1
from phone. . . . . . . . . . . . . . . . . . . . . 18
Earning a 2016 TOP SAFETY PICK+ Rating
Phillips - Body Shop Vice President in
Technology Requirements Factored into
Phillips - Nebraska MSO Owner Says the
from the IIIHS—New Crash Protection and
the Ratings . . . . . . . . . . . . . . . . . . . . . 39
GA Says Be Prepared for the Unexpected. 10
Only Constant in Industry is Change. . . . 6
Auto Safety Ratings to Include Collision
PPG Announces Sponsorship of Women’s
BASF Hires Tim Dawe as New Sales
Quality Parts Coalition Says Consumers
Prevention . . . . . . . . . . . . . . . . . . . . . . 20
Director . . . . . . . . . . . . . . . . . . . . . . . . 44
Cadillac to Launch Aluminum Repair
Industry Network . . . . . . . . . . . . . . . . . 44
Have Saved $363M By Using Aftermarket
Parts . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Network. . . . . . . . . . . . . . . . . . . . . . . . 46
Toyota, Honda Models Top Insurance
Crowdsourcing . . . . . . . . . . . . . . . . . . 44
UK Insurers: Luxury Car Drivers Have
Rating System . . . . . . . . . . . . . . . . . . 17
Vehicles 14 Years & Up Soar . . . . . . . . . . 31
Chinese Carmaker Cowin Pioneers
DOT Recommends Updated Safety
Institute’s Safest-Car List; VW is 3rd . . 38
More Accidents . . . . . . . . . . . . . . . . . . 27
rampant misinformation that is being distributed, regardless of the intent of the source. Also, we’re well aware that regulatory authorities such as California’s BAR are not only featured in Autobody News, but that they’re active readers. Numerous actions have been taken as a result of articles like this in our publications. The individual featured in the story has been reported to the local authorities—not by us, but by local readers, who are the greatest stakeholders in the matter. This is the reasoning that went into last month’s story, but in doing so we have a dilemna. Not only can our intent be misunderstood by some readers as happened here, but outside publications will be naturally wary of granting permission if they think we’re just criticizing their stories. That would quickly cause our sources to dry up. The solution, we believe, is to mark such stories with a coded box (such as this one) and trust that our readers continue to understand that we do not editorialize except in columns by our regular editors and writers, and that we support all legitimate stakeholders by trying to report accurate and timely information whatever the source. There are plenty of opinions in this industry and we don’t feel the need to contribute our own. In short, if there’s a story you don’t agree with, let us know, but first look outside the lines.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales/Research Associate: Cass Heckel Art Director: Rodolfo Garcia Abaris Training Resources, Inc. . . . 13 Allen Samuels Chevrolet. . . . . . . . . 20 Allstate Insurance Company. . . . . . 12 Axalta Coating Systems . . . . . . . . . 47 BMW Wholesale Parts Dealers . . . . 43 Bob Howard PDC . . . . . . . . . . . . . . 23 Car-Part.com . . . . . . . . . . . . . . . . . . 14 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 33 Chevyland . . . . . . . . . . . . . . . . . . . . 36 Classic Auto Group. . . . . . . . . . . . . 31 Classic BMW . . . . . . . . . . . . . . . . . . 30 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 Don Carlton Auto Group . . . . . . . . . 18 Eco Repair Systems of North America, LLC . . . . . . . . . . . 8 EMM . . . . . . . . . . . . . . . . . . . . . . . . . 7 Equalizer Industries, Inc . . . . . . . . . 26 Eurovac, Inc. . . . . . . . . . . . . . . . . . . . 6 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers . . . . 41 GM Wholesale Parts Dealers . . . . . 39 H & S Autoshot Mfg. Co . . . . . . . . . 13 Herkules Equipment Corporation. . . 4 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . 10 Huffines Hyundai Plano . . . . . . . . . 28
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. ©2016 Adamantine Media LLC.
Southwest
REGIONAL
A Note about Stories Sourced from Mainstream Media
A number of readers called and/or wrote to us last month about a particular story we ran in our December issues featuring a detailer in Mesa, Arizona who—they complained, was spraying solvent in open air, and also talking disparagingly about the industry, body shops, and insurers. The story was written by a local media source who was kind enough to give us permission to reprint the story. Whenever reprints like this occur in any publication, permission is obtained and given contingent on no edits or changes being made by us to the original story. Those are the circumstances under which we agree to reprint the article. In addition we agree that we will not ‘sidebar’ or editorialize on their content. The readers pointed out that by publishing this article we were “promoting” illegal activity and that the story was written by someone with no real knowledge of the industry. That, of course, we knew when we decided to print it. Many years ago we had a regular column called “Mainstream Media,” which was designed to show our readers what was being said in non-trade publications about body shops. Many of these stories were naive about the industry and some were absolutely off base. We ran them under that headline in order to remind shop owners that they need to be vigilant about what consumers are reading about the industry. This makes sense to us given the
Indexof Advertisers
Contents
Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Hyundai Wholesale Parts Dealers . 42 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 37 Larson Electronics, LLC.. . . . . . . . . 22 Mazda Wholesale Parts Dealers . . . 45 Mercedes-Benz . . . . . . . . . . . . . . . . 15 Mike Calvert Toyota. . . . . . . . . . . . . 38 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 42 MOPAR Wholesale Parts Dealers . . 29 North Freeway Hyundai . . . . . . . . . 38 Ray Huffines Chevrolet . . . . . . . . . . 17 SATA Spray Equipment . . . . . . . . . 19 Scoggin-Dickey Buick . . . . . . . . . . 34 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 20, 21 South Pointe Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 16 Southwest Volkswagen. . . . . . . . . . 35 Toyota of Laredo . . . . . . . . . . . . . . . 32 Toyota Wholesale Parts Dealers . . . 45 U-POL . . . . . . . . . . . . . . . . . . . . . . . . 9 Urethane Supply Company . . . . . . 27 Valspar Automotive . . . . . . . . . . . . . 11 Vehicle Value Experts . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44 Volvo Wholesale Parts Dealers . . . . 44 Young Chevrolet . . . . . . . . . . . . . . . 40
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 3
ASA-CO Hosts LEAN Shop Efficiency Training Seminar by Chasidy Rae Sisk
On November 9, ASA-CO held a Learning Circle on the topic of LEAN shop efficiency which was facilitated by Donny Seyfer, Chairman of ASA National. The seminar focused on “the concept of value-added activities and the seven deadly wastes (which I repackage as the nine circles of success) in LEAN,” Seyfer explained. “We talked about how addressing a problem, like waiting for things to happen so other things can happen, can cause significant loss of productivity and what kinds of strategies can be used to do something else productive while we are waiting, or to structure our day so that we assume we will be waiting on some things and have other activities lined up to keep you from actually waiting.” Seyfer explained the difference between value-added and non-value-added activities in attendees’ businesses, identifying value-added activities as items for which the customer is willing to pay. Non-value-added activities include items like moving cars and cleaning tools, which are still vital to the business and must be performed. Seyfer informed attendees, “By applying LEAN concepts to non-value-added items, we can spend less productive time doing those things, allowing us to focus on the things our cus-
Company to Distribute Nitrogen Plastic Welders in NM and West TX
Urethane Supply Company has announced that its nitrogen plastic welders will be distributed and supported by Professional Collision Equipment in New Mexico and western Texas. Professional Collision Equipment is a new Chief Automotive distributor based in Abilene, TX, owned by Guadalupe Hererra. Mr. Hererra has sold Chief equipment and auto body supplies for over a decade and has recently been awarded the distributorship for Chief Automotive in New Mexico and western Texas. Hererra has distributed and supported Urethane Supply Company’s nitrogen plastic welding system for over two years and will continue to augment his equipment line with the company’s plastic repair products with his new company. Hererra is a certified instructor for Urethane Supply’s I-CAR Industry Training Alliance® course and will be able to demonstrate the products and train customers on the nitrogen plastic welder all over his territory. Potential customers are invited to contact Hererra directly at 325-439-8271.
tomers perceive value from.” “In the current business environment, there are only so many places we can find to compete, and cutting our prices is not the way to ensure longevity,” Seyfer elaborated. “It has become really important to take the example our collision members have been working on for
Donny Seyfer presents on Lean Shop Efficiency to ASA-CO members
years and implement ways to increase productivity without working harder or longer by simply cutting the waste out of our existing standard operating procedures or by creating new SOPs that take these wastes into consideration and reduce or eliminate them.” According to Seyfer, attendees responded favorably to the Learning Circle, asking lots of questions and requesting a two-night LEAN and implementation program for the entire shop, not just management. ASA-CO plans to hold this event on January 12 and 14, 2016. In addition to receiving tours of the host’s facility
Service King Hosts Hire a Veteran Development Day
Service King Collision Repair Centers, in continuation of its long-term Mission 2 Hire initiative, is set to host a comprehensive hiring fair and development day exclusively for DFW-area military veterans and family members. The event is scheduled for Dec. 3 inside Service King’s Regional Support Center located at 808 S. Central Expressway in Richardson, Texas. The event is free to U.S Armed Forces veterans and spouses beginning at 8 a.m., and will feature a variety of career development opportunities including expert leadership panel discussions, breakout workshops on a variety of career-readiness topics, a free networking lunch and more. “This is yet another exciting opportunity for Service King and our very own teammates to reach out and provide tangible career opportunities to our nation’s heroes,” said Chris Abraham, Service King CEO. “The brave men and women who served in the U.S. Armed Forces exemplify the very skillsets, leadership and commitment to excellence that we strive to recruit for our team Service King has recruited and hired 57 U.S. veterans.
4 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
and gaining ideas for improving their businesses, Seyfer noted, “The Learning Circles are a great opportunity for our members to get together on a topic that is of interest to them and discuss how their businesses work.” As the Chairman for ASA National, Seyfer does not get to spend much time in CO, so he enjoyed the opportunity to visit with ASA-CO members. Regarding the importance of association-sponsored events, he explained, “Developing best practices is a challenge when you are buried in cars every day. Networking events that bring shop owners who really care about their businesses, communities and the industry together gives us some time to share ideas and learn that we all have similar challenges. Shop owners that get out of their shops and go to industry events are, in my experience, the best-run facilities and are long-lasting, successful businesses.” Because ASA National has undergone significant self-reinvention, “It will now allow our affiliates more time to focus on the things they do best, including networking, training and offering local benefit packages,” Seyfer stated. “ASA-CO has a new lease on life. I am very excited at the opportunity to work with the ASA-CO board actively again as past chairman and, of course, as one of their members.”
Fiat Chrysler to Pay $70 Mln U.S. Auto Safety Fine
Fiat Chrysler Automobiles NV has agreed to pay $70 million in fines to resolve a U.S. investigation that it failed to disclose vehicle crash death and injury reports, people familiar with the matter told Reuters. The settlement is expected to be announced by the NHTSA. Fiat Chrysler in September acknowledged it had failed to disclose an unspecified number of reports that are required to be submitted to regulators under a 2000 law. NHTSA in September called Fiat Chrysler’s reporting omissions a “significant failure.” This is the latest fine imposed by the U.S. auto safety agency after it came under harsh criticism from Congress and in a government audit for not being more aggressive in enforcing safety laws. In a new highway funding law, Congress agreed to give NHTSA more funding if it implements more reforms outlined by the Transportation Department inspector general. Fiat Chrysler told NHTSA earlier this year it had problems with its software for extracting information from a company database to submit to NHTSA, and as a result significantly under-reported death and injury claims. There is no indication that Fiat Chrysler intentionally hid the reports.
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Call Today! 409-790-4378
What is Total Loss?
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In the event you should have the unfortunate experience to be involved in an accident where your vehicle is Totaled Out (a state where the Insurance Company has deemed the collision repair will exceed the Fair Market Value of the Vehicle), allow Vehicle Value Experts to analyze the CCC ONE and/or Mitchell Market Valuation Report (all vehicle information and market comparables of your vehicle), Collision Estimate and Settlement Offer prior to Settlement. Vehicle Value Experts has documented and successfully increased the Fair Market Value Settlement by an average of 22% once employed.
Diminished Value (DV) is the loss in market value of a motor vehicle from its pre-wreck fair market value due to the vehicle being in a wreck and requiring cosmetic and/or mechanical repairs. Diminished value may be attributed and applied to various Motor Vehicle Claims. Who’s Entitled To Diminished Value? Should your damages be the result of another’s negligence, you may be eligible to collect your Diminished Loss in Vehicle Value from the at-fault party or their insurance carrier, if applicable. Diminished Value Claims are recognized by most states. “An insurer also may be obligated to pay a third party claimant for any loss of market value of the claimant’s automobile, regardless of the completeness of the repair, in a liability claim that the third party claimant may have against a policyholder. Further, an insurer may be obligated to pay first party claimant under the uninsured/under-insured motorist coverage provisions of the policy, for any loss of market value of the first party claimant’s automobile, regardless of the completeness of the repair.” April 6, 2000: Commissioner’s Bulletin # B-0027-00 by David Durden, Texas Department of Insurance “The difference between the value of the chattel (personal property) before the harm and the value after the harm or, at the plaintiff’s election, the reasonable cost of repair or restoration where feasible, with due allowance for any difference between the original value and the value after repairs, and the loss of use” November 4, 1997: Legal Memorandum by John R. Dunphy, Florida Department of Insurance “The difference in the dollar amount of what your car would have sold for without damage, and the amount it will likely sell for with the repaired damage.” “Fact Sheet” prepared by the Washington State Insurance Commissioner “Inherent Diminished Value” is based on public awareness that even if a damaged vehicle is repaired to the best of one’s human ability, it will still exhibit remaining deficiencies and inconsistencies from the pre-loss condition of the vehicle prior to the wreck. These deficiencies include, but are not limited to: • Weaker structural components that appear cosmetically sound • Impossible to duplicate factory seams, sealers, and finishes • Telltale signs of repair, such as paint missing off the heads of bolts, etc. • The unavailability of some factory decals, and markings (e.g. VIN labels) • Undiscovered kinetic damage throughout the vehicle • The increased likelihood of a mechanical failure due to direct and/or kinetic damage • The effect that the repair will have on the future deployment of the SRS (air-bag) systems • The infeasibility of duplicating immersion and/or robotic applied rust-proofing techniques • The loss of factory warranties & eligibility of Certified Pre-Owned vehicle warranty programs • Wreck Damage and/or Collision Damage noted on CarFax and Auto Check Reports
WE SPECIALIZE IN DIMINISHED VALUE CLAIMS 1310 1st Street // Vidor, Texas 77662 Robert@vehiclevalueexperts.com www.vehiclevalueexperts.com
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 5
Shop Strategies Nebraska MSO Owner Says the Only Constant in Industry is Change with Stacey Phillips - ASSISTANT EDITOR
Doug Keller turned his childhood passion for cars into a thriving MSO in central Nebraska. He opened the Eustis Body Shop in Eustis in 1979 and has expanded to five other locations including: Lexington, Grand Island, Kearney and Cozad. The latest addition to the corporation is a mechanic shop in Eustis as well, which works hand-in-hand with the body shops.
Q:
With your experience running five shops with more than 50 employees, what is your advice to others who are thinking about opening more than one shop?
I think before you can consider taking on another location, you A: must have the people in place who can
run your current location, and the people in training to manage your new location. Your attention needs to be focused on making all of the pieces fit and work together.
Eustis Body Shop is one of five locations in Nebraska owned by Doug Keller, president
Another thing that most people do not consider, beyond the cost of the land, equipment and building, is working capital. That is the money needed to pay for all the inventory and labor to produce a finished product before you get paid for that job. This can amount to a considerable amount of money in the beginning until you are able to earn cash flow. The amount depends on your anticipated sales and your cycle time. The faster you can turn your inventory, the less you will need in working capital. You also need a very good bookkeeping system, and an accountant who can guide you through the process.
What are some of the benefits of an MSO? Q: running of multi-locations A: areThethebenefits economics of scale. With
more volume, you will be able to negotiate better discounts from paint and parts vendors. Also, most DRPs like to deal with MSOs because they have consistency in quality, cycle time and price. They also like dealing with one person that represents all of the locations.
Q:
As vehicles have become more complex, how have you addressed this in your shops in terms of training and equipment?
We have the equipment required A: to repair damage to most late model vehicles including 3D measur-
ing, welders, specialized aluminum tools, and down draft-bake paint booths. The key to making all of this equipment work is our technicians. We are constantly training our employees and always working on our I-CAR gold status.
Can you tell us about your emQ: ployees? We are so blessed to live and A: work in an area that has such a great work ethic. Many of our techni-
cians have some farm background or have had other jobs that allowed them to become very good at figuring out how to repair things. Most of our technicians have gone to tech school but some we have hired and trained right out of high school. We are also fortunate in the fact we have very little turnover. Most of our employees have been with us for many years. You’ve said in the past that you strive to have the most progressive auto body repair center in Nebraska. How are your shops progressive and what does that investment do for a body shop?
Q:
We offer free loaner vehicles and A: each shop has from five to eight loaner vans. Every shop has towing
equipment and are on 24-hour call. We are now “dealer certified” for GM, Chrysler, Nissan, Hyundai and are “aluminum certified” for the new Ford F150. We are involved with DRPs for State Farm, Farm Bureau, Shelter, and Progressive. We also have a strong
6 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
working relations with all the nonDRPs in our area.
What are some of the benefits of being part of a DRP and what Q: would you say to shops that are not part
of one now?
A: The benefit of being involved with a DRP is consistency. It is more of a partnership. Normally, there is an operating agreement that works for both parties. Terms are laid out for rates, mark-ups and, most importantly, payments are reliable. There have been a couple of DRPs that we backed away from because of the great working relationship we had established with the local adjusters, and the DRP requirements for that particular company were too restrictive.
Is there additional information Q: you would like to share with body shops?
I have been in business for 36 A: years and have found that the one thing that is a constant is change. This is what keeps this business exciting as a challenge and sometimes frustrating. My involvement in Axalta’s group 20s has had a very positive impact on our overall strategic plan for growth. Since becoming involved six years ago we have increased our cycle time, our CSI and after a lack luster sale growth of only four percent have achieve seven percent growth over the last five years. Also, I have found that all my employees, who make our company so successful, want to win, and my job is to help them understand the rules and how to play the game to win! Doug Keller can be reached at 308-486-5515. If you know of a shop that would like to share shop strategies, contact Stacey Phillips at sphillips@autobody news.com.
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 7
Electronic Paintless Dent Reduction Device introduced at SEMA
Eco Repair Systems of North America LLC and its importing partner, Robaina Direct LLC, recently introduced the 3650A T-Hotbox. The device made its debut at the SEMA show in Las Vegas, Nevada in November 2015 and Bryan Robaina, President of Robaina Direct, said it sold out in the first 1.5 days.
Electronic T-Hotbox Launched at SEMA
Q: Congratulations on the launch of the 3650A T-Hotbox Bryan. Can you tell us more about the device?
A: First, it’s described as an electronic soft dent reduction device. In the hands of an expert, one can reduce and or possibly eliminate the ‘soft dents’ on flat or
convex-shaped exterior steel body panels that exist on most vehicles. The second option, that’s either equally or more important to body shops and collision repair centers, is the ‘push to paint’ function. This is what shrinks and tightens metal in those ‘small medium sharp’ (stretch dents). These dents are classified as slightly more aggressive small door dings or dents, especially where the paint has been broken. This ‘push to paint’ method is commonly used when damage is included in the repair order. As for the ‘dent reduction’ ability of the tool, it’s most commonly used in select paintless dent type repairs or to quickly reduce the size of the dent in blend areas. Either way, the body shop, repair center, dealership or PDR technician can, with practice, dramatically improve their repair cycle time on this type of ‘small dent repair.’ Most vehicles have a combination of small and medium dent damage when they arrive at the collision repair center.
Q: What are some of the other ways the product can be used?
A: The next way to increase and expand on the opportunity of use with this device is in combination with what’s known as a ‘tapping down’ technique of high spots (ridges), crowns or blending and ‘shal-
8 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
lowing out’ the slight impressions in the center of the dent. This technique requires using the included ‘plastic punch tool.’ In doing so, the technician has a good possi-
T-Hotbox VS pen
bility of achieving results in a matter of minutes that either would have taken much longer before or that you had to subcontract out (to PDR technicians). Like all other true professional panel repair tools, the 3650A T-Hotbox requires a basic working knowledge of panel repair metal working or PDR ‘know-how’ to reduce the learning curve. It doesn’t mean that an apprentice can’t learn though; after all it is a ‘push button’ tool. Q: Can you describe the three main principals that the product utilizes?
A: The 3650A T-Hotbox works on 3 main principals: heat, magnetism and vibration. For clarification purposes, the magnetic component is not the primary characteristic and is only activated when the button is depressed. The elements of heat and vibration are the bigger players in the tool’s function. This is a unique one-of-a-kind, three-part technology that’s based on the original patented device that started as a 230 volt-only version back in 1999. Now the 3650A T-Hotbox, that’s exclusively sold here in the U.S., operates on 110-120 volt 60 hertz power. Its compact size and design make it easy to use in facility repairs as well as for mobile use in PDR services. The “kit” includes a main power unit with pre-attached power and second cable that comes assembled with the hand piece known as the “VS pen.” Q: What are some of the functions on the unit?
A: The main unit has a rocker switch for the on and off functions. Next, it has a main dial that can be rotated to the left to limit the effective pulse time (of heat, vibration and magnetism). Turning the dial to the right allows the user to control the percentage and sets limits on the amount of power, while the VS pen controls the See Electronic Paintless, Page 20
Catastrophic Losses in Texas Will Be Well Over $1 Billion For 2015, Says Insurance Website Texas has experienced a variety of severe weather in all regions of the state this year resulting in high numbers of insurance claims and property and auto losses. April through June marks the stormy season for Texas and this year the weather patterns were right on cue. After the spring storms, Texas experienced what meteorologists called a “flash drought” followed by flooding. The severe weather across the state resulted in high numbers of insurance claims as well as property damage and auto losses, according to Rosalie L. Donlon writing for PropertyCasualty360.com. The damage came from thunderstorms, wind, flooding, and fires. Beginning in late March, multiple severe thunderstorms rolled across the state producing large hail, tornadoes and heavy rainfall. The spring storm season ended in late May and early June with flooding from the Red River to the Texas coast. “Windstorm losses in both April and May were much higher than 2013 and 2014,” said Mark Hanna, a spokesman for the Insurance Council of Texas. “There wasn’t one catastrophic storm that caused all of the damage. It was a non-stop pattern of severe storms that literally blanketed the entire state.”
According to the council, paid residential property losses in April and May were close to $900 million from 114,000 claims. These losses did not include business or auto claims. Last year, both months accounted for only 72,000 claims and $650 million in paid losses. Flood losses more than $400 million Texas homeowners and businesses reported almost 8,000 flood claims to the National Flood Insurance Program from the spring storms, the Council said, compared with 579 claims from all of Louisiana, Arkansas and Oklahoma for the same time period. The Texas flood caused more than $400 million in losses to homes and business, but about 95% of the claims have settled. An additional $300 million in losses is attributable to losses from vehicles submerged in flood waters, say Texas auto insurers. Greg Carbin, meteorologist with the Storm Prediction Center in Norman, OK, described the Texas springtime weather as “incredibly extreme.” Carbin said, “The combination of severe hail, tornadoes, and especially heavy rainfall, was devastating in some areas. Above normal severe weather activity was most prominent
over northwest and central portions of the state. Historic rain and flooding extended across many areas.”
Then the fires came In June the rainfall stopped abruptly, only to be followed before the end of summer by wildfires in north and central Texas with the Bastrop area, about 30 miles southeast of Austin, sustaining the worst damage with the loss of nearly 60 homes. “As soon as fall arrived, the drought-like conditions turned to another round of severe flooding in much of central and southeast Texas. Record rainfall flooded homes and submerged vehicles in the Austin and Houston areas,” Hanna said. “Total auto insurance losses for 2015 could reach $1 billion.” Cold Weather Means More Hazards Elsewhere, with colder temperatures creeping into the state, Texans are finding various ways to keep warm and unfortunately some of those methods can be deadly. Both fire and emergency medical personnel say they see more house fires and carbon monoxide poisoning during the winter months than any other time. Carbon monoxide poisoning is
known as the “silent killer” and it is the leading cause of accidental deaths in the U.S. Carbon monoxide is odorless, tasteless and colorless. Emergency medical responders say the worst things residents can do to stay warm is turn on gas stoves or bring generators and heaters designed for outdoor use into their homes. “We respond to dozens of carbon monoxide related incidents each winter, usually involving more than one person,” said Commander Mike Benavides of the Austin/Travis County Emergency Medical Services. “Patients typically are suffering from headaches, nausea, dizziness or other levels of altered mental status. Once this type of toxic exposure is identified, we immediately remove them from the effected location and provide them fresh air and/or supplemental oxygen. More severe cases may necessitate the transport of patients to a bariatric chamber for treatment.” Benavides said the most common sources of carbon monoxide are kerosene space heaters, charcoal grills, propane heaters and stoves and gasoline or diesel powered generators which clearly should only be used outdoors. Unattended fireplaces can also be deadly for Texas residents.
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 9
Shop Strategies Body Shop Vice President in GA Says Be Prepared for the Unexpected with Stacey Phillips - ASSISTANT EDITOR
Cherokee Collision Center in Georgia celebrated the grand opening of its second shop in December. Gene Sweeney founded Cherokee Collision in Marietta in 1993. Gene’s son R.J. will be running the new Canton location. Autobody News asked R.J. about the new shop and growing up in a family business.
Our advice to anybody opening a new shop would be develop a business plan and make sure you have REALLY thought it through. Today’s ‘collision centers’ aren’t like the ‘body shops’ of the past and the cost to open a new facility (even in a modified ex-
What prompted you to open Q: the new collision center and what did it entail to set up?
Our decision to have a facility A: in Canton, GA was due to the demand of our customers and com-
munity members who wanted our services closer to their home. We started looking for land back in January 2013 and struggled to find a good location for a couple of years. In March of this year we stumbled across an abandoned mechanical shop that was located in the heart of downtown Canton that we felt would be a perfect location. Our first efforts were directed to cleaning the facility shop and make the necessary reconfigurations and modifications for use as a collision repair facility. With permits and constant changes in requirements it became a significant, daunting and costly undertaking but we believe it will be well worth it in the years ahead. We had begun purchasing the needed equipment for the new location long before we found the location so we were ready when the time came.
What were some of the chalQ: lenges and what is your advice to others considering opening a new shop?
The challenges included findA: ing a location close to a high traffic area to have the exposure to
drivers as well as easy to find. Added challenges were dealing with zoning, the fire marshal and permitting to get the old facility compliant with current mandates and restrictions. These caused additional challenges and costs that we hadn’t fully anticipated and/or prepared for, which caused considerable delays.
Cherokee Collision Center in Georgia opened its second location in Canton
isting building) is costly. Be prepared for the unexpected and the costs that may follow. Be sure you have thought it out and are fully prepared for the task at hand and the frustrations that one may be faced with.
What are some of the things Q: you have incorporated into the new shop?
Our new location is approxiA: mately 8,900 square feet, including office and production space.
As in our existing facility in Marietta, we have designed this shop around “lean methodology.” Once the vehicle enters production, it does not leave production until the vehicle is finished. Our goal when designing this facility was to “do more production in the least amount of space” by maximizing efficiency and productivity. We will have a state-of-the-art side loading GFS paint booth, two GFS prep decks, one in-ground Car-o-liner Bench repair rack, one drive on Caro-liner rack, and one lift. Our employees will consist of one global team that works together to get each vehicle repaired properly and thoroughly. We will be using Summit Management System and utilize their “scoreboard” so that our team of technicians can track the amount of labor hours they generate on a consistent basis. These efforts enable Cherokee Collision Center(s) to meet our mission statement and commitment to our customers. Our mission is to provide the most efficient, high-quality colli-
10 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
sion repairs while providing exceptional customer service.
sider expanding to new markets.
to our customer base within our market areas. Unless an insurer is motivated by high-quality repairs, which restores the consumer’s vehicle properly and thoroughly in fit, finish and function and not merely price alone, our business model may not fit their needs. We see the vehicle owner as our customer and while we work “with” all insurance companies, once our customer’s vehicle is placed in our trust, we work for them. This philosophy has served our company well over the years and provided us the success and profitability to enable us to con-
porter back when I was in the 9th grade working during the summer and have done everything from washing cars to body work to parts management, to estimating. After graduating with my major in business administration, I decided to join my dad and have been managing the shop since May 2007. My dad has taught and encouraged me and several years ago he engaged the services of Barrett Smith of Auto Damage Experts (ADE) for coaching/consulting services, which
What have you learned over Q: the years growing up in a family business and how has that shaped
Q: your philosophies running the shop? Our Marietta location particiA: pates in State Farm’s Select A: business I have been around our family Service program. We focus more on and the industry my branding and marketing our message whole life. I started off as a shop Are you part of a DRP program?
See Be Prepared, Page 16
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 11
Continued from Cover
Unfinished Business
“That does not reflect well on plaintiffs’ council.” Many observers say the outlook doesn’t appear promising for the other shops’ lawsuits. All of them were consolidated into Presnell’s court in Florida, and all have been dismissed at one point, although he has given them opportunity to refile amended complaints. But little in Presnell’s rulings indicate he has much sympathy for the arguments put forth by the shops’ attorneys. In one dismissal, for example, Presnell addressed the shops’ argument that they were misled by insurers as to what the true “prevailing rate” is by pointing out that the lawsuit states the insurers named in the suit collectively make up 70 percent of the auto insurance market. “One would expect to find that the rates paid by (at least) 70 percent of those in the market are, in fact, the prevailing rates,” Presnell wrote. Whether any of the suits will remain in-process into 2017 will likely become clear fairly early in 2016.
“This doesn’t mean that the result that might come up at the end would be something that CIC would completely condone, but I think it behooves us to at least be involved in what might be something that we’re going to have to deal with.” – Pat O’Neill of the Collision Industry Conference (CIC) Insurer-Repairer Relations Committee.
O’Neill’s committee has over the last several years examined the challenges posed by the wide-ranging formulas some insurance companies use (or require direct repair shops to use) to determine length of rental, some of which set unrealistic expectations for consumers as to how quickly their vehicles will be repaired. At the CIC meeting this past November, O’Neill some insurance companies were planning to work on a new formula, so the committee “felt it would be very important that as an industry we had input into that and were able to participate in whatever that outcome may be.” O’Neill said the goal would be to develop an alternative formula by the end of 2016 that could be tried by some insurers.
12 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
“We’re going to bounce up against some regulators.” – Clint Marlow, one of two national auto claims directors at Allstate
As automaker shop certification programs proliferate, and as collision repair processes continue to become evermore vehicle-specific and complex, the days of every shop and technician being able to fix every car seem to fading. Speaking at NACE last summer, Marlow and other insurer representatives were asked what they will do if they know that a customer’s chosen shop is not equipped or certified to properly repair the type of vehicle or damage involved in a claim. Will they, for example, push that customer to choose Clint Marlow a different shop? Marlow said he thinks they should though he admitted that may lead to some friction with regulators over antisteering regulations. Marlow said that type of situation, in which the chosen shop may not even have access to purchase the structural parts needed (because of automaker restrictions), becomes a
“moral dilemma” for insurers trying to honor customer choice and follow antisteering regulations. “At the same time, you’re thinking, ‘I’m really not feeling great about this repair facility’s ability to fix this Cadillac CT6 or this Ford F-150,’” Marlow said. He said Allstate hasn’t “worked the details out yet,” but will “take the high ground” by “educating the consumer” in such cases. “So we’re not going to go as far as saying, ‘You need to take your car to [a particular shop],’ but we are going to have a discussion around the uniqueness of their vehicle, some special repair techniques that may apply, and some questions that we feel strongly they need to ask their repair facility,” he said. How Allstate and other insurers respond to these situations will be something to watch in 2016. “We can’t put our heads in the sand and say, ‘Gee, we wish this was 1965 again when we just had to have a good sound system and a convertible and everyone was happy,.’ We need to completely rethink our business model, really redefine ourselves from a car and truck company to a mobility company.”
– Bill Ford, executive chairman of Ford Motor Company
Okay, so Ford isn’t going to get out the business of selling cars in 2016, but the comment back in November by the great-grandson of Henry Ford is indicative of the shakeup that everyone in the industry – from car-makers to car-repairers – is going to be feeling in the coming months, years and decades. Accident Tim Nixon avoidance technology, car-sharing and autonomous vehicles appear poised to play havoc with a lot of business models. “I think [the OEMs] are still looking at these trends and really trying to figure out how to participate in them,” Tim Nixon, former chief technology officer for OnStar, said at last fall’s
“Telematics West,” a 2-day conference focused on “connected car” technology and trends. “I think it’s going to take them a while to figure it out, but they can’t take too much time. These alternative disruptors are starting to accelerate. It’s not like [the automakers] can wait until 2025, because it will be game-over by then. A lot of this is going to happen before then.” As Nixon suggests, savvy business-owners in any part of the automotive industry won’t let 2016 pass without starting to think about the future.
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@Spirit One.com.
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 13
Driven Brands Acquires CARSTAR Canada and Announces Senior Leadership Changes at CARSTAR US by Stacey Phillips, Assistant Editor
When Autobody News spoke to Jose Costa, group president of Driven Brands, shortly after acquiring CARSTAR in November, he said growth is an important part of the company’s strategy. “The company is committed to Jose Costa achieve its ‘Dream Big’ agenda, which is to double system sales and increase franchisee profitability through better innovation and increased purchasing power,” he said. He added that significant acquisitions were planned. One recent acquisition was of CARSTAR Canada, which has 23 locations in 10 provinces, this December. “CARSTAR has a long and established history in Canada and I’m proud to have this iconic brand join the Driven Brands family,” said Jonathan Fitzpatrick, president and chief executive officer of Driven Brands. “CARSTAR not only strengthens our product offering and expertise, but builds upon our established footprint in Canada.” With this acquisition, the combined CARSTAR business accounts for more than 450 locations and $700 million of annual system sales. He said this makes CARSTAR the largest brand in both system sales and locations in the automotive collision repair industry. CARSTAR Canada marks the third acquisition for Driven Brands since it was acquired by Roark Capital earlier in 2015, expanding the brands’ footprint to more than 2,200 franchise locations in the U.S. and Canada. Driven Brands’ paint and collision division is comprised of CARSTAR in both the United States and Canada, Maaco and Drive N Style.
CARSTAR Leadership Changes in U.S. When CARSTAR employees learned about senior leadership changes being made at the company last November, Costa said it was bittersweet. “A lot of the management team had been there
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for a long time,” Costa told Autobody News. “Everyone was expecting changes as we assess the business. I think they were a little surprised and a little saddened because people were leaving.” He said there was also excitement for those who were promoted. The changes included CARSTAR CEO David Byers leaving the organization and Dan Young, the SVP of Insurance, being promoted to brand president. “David played a critical role in helping CARSTAR become the great company it is today and we are very thankful for all of his hard work and dedication,” said Costa, in an email that was distributed to employees. After a month-long assessment looking at every aspect of the business, Costa said, “We felt that we had to change some positions in the leadership team and have someone like Dan Young with his experience in the insurance industry lead the brand.” Dan Young Young will report directly to Costa. “Dan has been with the company for more than 12 years and has exponentially grown CARSTAR’s insurance business,” said Costa. “We are confident that Dan will continue to drive incremental profitability and growth for our franchisees, and that CARSTAR will continue with this great momentum under his leadership.” Costa said the plan is to double the size of the company over the next few years. “One of the ways to do that is by securing more insurance business,” he explained. Employees learned of the leadership changes through email and conference calls. He encouraged employees to reach out with any questions or concerns. “I understand that change isn’t always easy but progress is impossible without it,” said Costa. “I am confident that these adjustments will ultimately benefit the brand and position us for growth.”
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14 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
Other key changes at CARSTAR included: ● Dean Fisher, vice president of operations, was promoted to Chief Operations Officer and will report directly to Young. Fisher developed the EDGE Performance Platform, which is a five-stage process that trains, develops and coaches franchise owners. Fisher will continue to spearhead Dean Fisher the evolution of the operational platform, to evaluate where shops are from a lean standpoint and a production standpoint. ● Scott Robertson, vice president of development, will report to Young. His main focus will be to continue growing unit count as well as to pursue new markets and acquisitions.
Scott Robertson
● Melissa Miller was promoted to vice president of operations, reporting to Fisher.
See next story.
● Cacey Lavin, recently promoted to controller, will report to Driven Brands’ VP of accounting and finance, Ed Moore. Lavin will lead CARSTAR’s accounting and finance departments. ● Kim Carrington was promoted to training and development manager and will report to Fisher. “Independent body shop owners have few options when it comes to succession planning. It’s either selling to their manager, joining a network like CARSTAR or selling to the large consolidators,” said Costa. “[Joining CARSTAR] gives them a very good opportunity to leverage their Melissa Miller buying power, get access to more DRP business and the Edge platform and training. We see it as a win win both for the independent shop and for CARSTAR.” For more info. visit www.driven brands.com and www.carstar.com.
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 15
Melissa Miller, CARSTAR’s New VP of Operations, Discusses New Role and WIN Participation by Stacey Phillips, Assistant Editor
After Driven Brands acquired CARSTAR in November 2015, the company announced senior leadership changes at CARSTAR. Autobody News spoke to Melissa Miller who was promoted to CARSTAR’s vice president of operations. In her new role, Miller will focus on leading the company’s field team “to ensure that we are meeting the KPIs necessary to lead our franchisees to greatness.” She will report to Dean Fisher, named chief operations officer. Miller said, “I’m really looking forward to continuing this next chapter, gaining more resources for our field team, and figuring out what this looks like together, helping our franchisees become more successful. “We may not always agree. I say if we have 80 percent Melissa Miller agreement and 100 percent commitment, then ultimately we’re going to reach our goal,” said Miller. “At the end of the day, we’re all in it to win and show that when you have an owner at the driver’s seat as our franchises do, we outperform other MSO groups in the country. I feel that we’ve
proven that, especially over the past few years.” Miller got her start in the industry working for her own family business, Randy and Bob’s CARSTAR in Chicora, PA. Originally established by her grandfather, it is run by her father Randy and uncle Bob. This year, the CARSTAR location is celebrating its 40th anniversary and her cousin Nathan will soon be leading the family business. “It’s a complete representation of what CARSTAR is,” said Miller. Miller worked as the company’s bookkeeper in a small office in the back of the shop. Over the years, she was the office manager, marketing manager and helped wherever she was needed while the business grew. In 1999, the shop expanded from 7,000 to 18,000 square feet. She said that she learned a long time ago about working together as a family. “I always really appreciated that you have this family you can count on no matter what, no matter what challenge you are faced with,” she said. “Whatever is the news of the day we figure out a way to talk about it and overcome adversity or challenges in order to really work together. “I believe that is really why I was appointed to [my current] position because I focus on our current and next generation franchisees, continuing to
16 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
build our footprint, and try to figure out how we can continue the legacy that those before have built,” said Miller. Miller joined CARSTAR in 2004 as integration manager, working with new stores and helping them navigate through the changes of becoming a CARSTAR store. Later, she was named regional service manager responsible for 35-40 stores and then transitioned to senior regional service manager. Two years ago, Miller became national director of operations before being recently promoted to VP of operations. “What I appreciate most about CARSTAR in general is that we’re a family,” said Miller. “You know that within a family there are always these multifaceted personalities and how we accomplish our goals but at the end of the day we’re all related in some way as far as representing the brand.” In addition to her role at CARSTAR, Miller sits on the board of the Women’s Industry Network as administrative vicechair. She is also the co-chair of the communications committee with Jessica Rob from AkzoNobel. “The career growth I have experienced as being part of WIN has been absolutely fantastic,” said Miller. “I wouldn’t be in this position today without the mentorship and networking I have experienced through this inspiring, supportive organization.”
Continued from Page 10
Be Prepared
has allowed me, what I believe to be a different perspective than most shop managers/owners. This has enabled me to develop new and more effective ways to manage our customers and assist them. The systems taught by Barrett differ from conventional “body shop” management philosophies and as such have allowed us greater profits and customer satisfaction, retention and their ongoing referrals. We will be using these same philosophies in our new location as well. R.J. Sweeney can be reached at (678) 388-7000. If you know of a shop that would like to share shop strategies, contact Stacey Phillips at sphillips@autobo dynews.com
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Continued from Cover
State Farm Adjusts
justice. I’m afraid a lot of shops will be hurt if the insurer gets away with this.” Hanks has received emails from multiple shop owners seeking advice. One non-DRP shop owner in Lafayette, LA, said, “State Farm has decided to increase the geographical scope of our market area. The result of this change has allowed them to decrease our market area’s material rate. After having paid a higher rate since July, State Farm will now reduce material rates on each estimate and deny any subsequent supplemental increase requests. We told said appraiser this will result in out-of-pocket expenses for their policy holders to which he responded, rather unsympathetically, that this was State Farm’s new policy and nothing could be done about it.” Another non-DRP shop owner, from Deridder, emailed Hanks that “State Farm lowered our [labor rate] last week from $55 to $50—and they have also stated they are not paying for any items that break during an R/I operation. Unbelievable that they can do this...”
A DRP shop owner from Jennings, LA, also reached out to Hanks after receiving word from a State Farm representative that their rates had been lowered by $2 per hour. “I was shocked to learn that rates could be lowered. Our rates had just risen at the beginning of the year by $1... This decrease in rates greatly affects my overall budget, especially my payroll budget. I fear the short-term effects of this will cause me to lose employees.” In contrast, Hanks has also heard from some shops that have not been impacted by State Farm’s market rezoning, and one shop even reported receiving a slight increase. Unfortunately, this issue is not isolated to LA. Tony Ferraiolo, owner of A & R Body in CT and President of the Auto Body Association of CT (ABAC), has also seen decreases in his area. He noted, “There is no one to hold the insurance industry accountable, so why not get even more greedy and lower rates until someone stands up and forces them to establish shops’ true costs of labor rates?” In her email to LaCIA members, Hanks stated, “I wish there was a magic word I could give you all to make this problem go away; all I can tell you is we
are working very hard to fight this, but we need your help. We need you to be proactive in your stance against these charges. We need you to share with us what is going on.” Hanks encouraged LA shops to file complaints about this issue with the Department of Insurance at www .ldi.la.gov/contact-us or by emailing Assistant Attorney General Stacie deBlieux at deblieuxs@ ag.state.la.us. Hanks urged, “We need you to reach out to the other shops in your area and make a stand not only for your shop but the whole industry. But more importantly, call the other shops in your neighborhood. I’m very certain there is another owner/manager sitting there with the same problems as you have, wondering if they really are ‘the only ones.’ You are not the only one, and you are not alone in this!”
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DOT Recommends Updated Safety Rating System
The U.S. DOT has proposed a series of changes to the NHTSA 5-star Safety Ratings, also known as the New Car Assessment Program. Under the current program, NHTSA crash tests new vehicles and rates their ability to protect occupants in frontal, side and rollover crashes. The measurement can range from one to five stars. The new DOT proposal takes into consideration new and emerging vehicle technologies. The new standards include: ● A new 5-Star Safety Ratings system, to encompass assessment of crashavoidance and advanced technologies as well as pedestrian protection. ● New tests to assess how well vehicles protect pedestrians from head, leg and pelvic injuries that occur when a pedestrian is struck by a vehicle. ● A new frontal oblique crash test that measures how well vehicles protect occupants in an angled frontal crash. ● An improved full frontal barrier crash test to drive safety improvements for rear seat occupants. ● New crash test dummies to provide improved data on the effects a crash will likely have on the human body. ● An assessment of additional crashavoidance and advanced technologies that offer drivers the most potential for avoiding or mitigating crashes.
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Texas Vehicle Crashes and Fatalities Continue to Rise According to Insurance Council For the fourth year in a row, the numbers of vehicle crashes in Texas involving both injuries and fatalities have risen. Both numbers began rising dramatically in 2012, when Texas highway speed limits were raised.
slowly began to increase in 2011. In 2012, when higher speed limits were posted across the state, injury traffic collisions increased 8.3%, while statewide traffic fatalities increased 9.1%. Both numbers continued to increase in 2013 and 2014. (See charts) The Insurance Institute for Highway Safety (IIHS) says the improving economy is likely a significant factor in the increase, but higher speed limits may also be contributing. “Our research has shown that the higher the posted speed limits, the faster drivers Statewide Reportable Motor Vehicle Traffic Fatal Crashes go and more crash deaths occur as a result,” said Anne McCartt, senior vice president of the IIHS. “The economic recovery is probably the main reason that fatalities are increasing in many states, but the trend toward higher speed limits is troubling. A large body of research suggests these higher limits will inevitably result in more crashes and fatalities.” (See IIHS charts) Hanna said traveling at Statewide Reportable Motor Vehicle Traffic Injury Crashes higher speeds during danger“With new safety features on veous driving conditions such as around hicles and the 55 mile per hour speed construction zones, hazardous weather limit, traffic fatalities had gone down every year,” said Mark Hanna, a spokesman for the Insurance Council of Texas. “As soon as the speed limits began rising on Texas highways, so did the number of traffic injuries and fatalities.” Traffic fatalities bottomed out in 2010 and then
OpenbayASP App Monitors Repairs from Phone
Openbay is an online marketplace that allows customers to locate, schedule, and purchase auto repair services in their area. The company’s new OpenbayASP app builds off an already established community of service professionals by allowing them to communicate with car owners via text, pictures, video and more. With OpenbayASP, the wall between mechanic and driver has been broken down. “This mobile platform positions shops to efficiently acquire and communicate with in-market consumers,” said Rob Infantino, CEO of Openbay. “Openbay customers benefit too— OpenbayASP brings
transparency to auto repair, enabling shops to share video and photo of vehicle issues, so customers are better informed about the need for repair and maintenance.” The app is available exclusively for Apple devices for the time being, and also helps shop owners review incoming service requests, respond with quotes, schedule appointments, and process payment. Openbay announced another smartphone app called OpenbayConnect. The program expands on the company’s online services by adding an OBDII plugin, which opens a line of communication between your car and your phone.
18 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
and at night with poor lighting, will greatly increase your chances of having a serious accident. “There are times when despite the posted speed limit, drivers should slow down and use caution. Just because the speed limit says
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75, doesn’t mean that’s how fast you must drive,” Hanna said. “Distracted driving has also played a contributing factor in the state’s auto injury and fatality count.” Auto insurance rates in Texas have also risen during this time reflecting the costs of auto repairs and increased medical costs. The National Association of Insurance Commissioner’s (NAIC) most recent report lists Texas as 14th among states in auto insurance premiums. The Insurance Council of Texas is the largest state insurance trade association in the country consisting of approximately 500 property and casualty insurers writing business in Texas. For more information click on www.insurancecouncil.org or follow us on Facebook at ICT On Facebook and Twitter@Ins CouncilTx and @VoiceForTexas for other up to date news and information.
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 19
Continued from Page 8
Electronic Paintless
pulse time. This side of the dial is for ‘experts.’ In terms of where to first set the device, it is strongly recommended one begins by using the 0.5 setting. This limits the burst of power to half a second at the full 100% power. This is paint safe for paintless dent reduction repair processes. The 1.0 second setting is the upper limit of this “safe zone” but requires monitoring of the surface temperature. For ‘push to paint” type body shop repairs of small dents, the technician would select the 100 percent setting. With this function, one is able to dramatically tighten metal and lift small dents that will be later refinished. The key with both methods of use is to get familiar with the “footprint” of the affective zone on the “VS Pen” (the part that touches the vehicle). The VS Pen has a “V” type design groove at the bottom of it. That V is where the center of elliptical shape lift occurs and where you’ll want to have the center of the small soft dent aligned during the final dent reduction stages. On the “How To” page of www.hotboxPDR.com, you’ll find a diagram showing examples of patterns of use. Q: What advice do you have for shops
learning how to use the 3650A T-Hotbox?
A: The old adage ‘practice makes perfect’ holds true. There are those who wield tools quickly, as if they have 75 years of experience, and there are those who have to go back to reading the manual again. But the tool never fails… it delivers a set amount of heat, magnetism and vibration. When used properly for the type of soft shallow dent it’s designed to reduce and or repair, the technician can cut repair times down by as much as 60 percent. As mentioned previously, we also include a plastic punch (knockdown tool) in the kit that is required to be used on medium sharp dents or dents that have a pronounced ring, crown or slight crease. Once the operator is proficient, dents can be reduced and or eliminated in just a few minutes for paintless repair operations. In push to paint repairs, the cycle time is potentially faster in comparison. Vehicle manufacturer part stamping divisions, body in white assembly areas, dealerships, body shops and select PDR technicians are avid users and owners of the 3650A T-Hotbox. We’re changing the face of PDR with the touch of one button! For more information and to see our how to videos, visit: www.hotbox PDR.com.
Auto Safety Ratings to Include Collision Prevention
On Dec. 8 the government announced plans to update its safety rating system for new cars and trucks to include whether the vehicle has technology to avoid crashes, in addition to how well it protects occupants in accidents, according to reports in the LA Times. The 5-star rating system now uses crash tests to assess how well people inside are shielded from injury or death in front, side and rollover crashes. While that will remain a big factor in the ratings, they also will take into account whether the vehicle has nine technologies that can help prevent or lessen the severity of crashes. Those technologies include sensors that can detect an imminent frontal collision and apply the brakes, or warn drivers about vehicles in their blind spots or that they’re drifting into another lane. Some technologies automatically switch headlight high beams to low beams when another vehicle is approaching, help prevent rollovers, and employ amber rear turn signal lights that drivers are quicker to identify as indicating a turn rather than braking. In addition, the ratings will include a new type crash test designed to simulate cars that collide at an angle. Crash tests will also use improved crash-test dummies that better
represent how accidents impact the human body. And the rating system will reward cars designed to protect pedestrians who are struck by them. One of the government’s aims in updating the rating system is to put pressure on automakers to include crash prevention technologies in all vehicles, not just more expensive luxury models, said Transportation Secretary Anthony Foxx. In the past, automakers have voluntarily included more safety technology in vehicles in an effort to earn more stars, but many of the nine technologies proposed for the rating system are primarily available in a limited number of higher end vehicles. “We’re going to raise the bar when it comes to protecting vehicle occupants,” Foxx said. The department’s goal, Foxx said, is to ultimately prevent crashes altogether. He said he’s hopeful that will happen in his lifetime. The rating system posts a rating of one to five stars on the window stickers of new cars to help shoppers identify the safest vehicles. The new system will also include half stars as well as full stars to get at nuances in safety features, said Mark Rosekind, head of the National Highway Traffic Safety Administration, which administers the ratings system.
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Number of Days
Continued from Cover
El Paso Sting
four businesses that were being investigated for allegedly intentionally damaging vehicles to make false insurance claims. Rivera claims he did not have knowledge insurance fraud being committed at his auto body shop. He said Enriquez was a hard worker who would show up on time, and his arrest came as a shock. “This individual, he’s been gone. He’s no longer be with Big V’s for about two months now,” said Rivera. “So I haven’t had no contact with this individual and so it was a surprise. He was a really good worker. He was
always here on time. He always worked to the limit.” Ten employees have been arrested on suspicion of insurance fraud from the following businesses: Gordo’s Body Shop at 3625 Gateway Boulevard West, Rigo’s Body Shop at 167 N. Copia Street, Big V’s Body Shop at 4400 Dyer Street and C&M Body Shop at 4034 Harrison Avenue. The 22-month investigation revealed employees at some body shops were intentionally damaging vehicles to file insurance claims. In some instances accidents were staged, the news release stated. Big V’s wasn’t the only one to get a not-so-subtle knock at the door. Matthew Olivas, the owner of Gordo’s body shop, also received a visit from
the authorities. Olivas said, “I really have nothing to hide, like, I really don’t. Yesterday, I was just as confused as I am today. They didn’t tell us anything. [The police] just said, ‘Insurance fraud! You’re under arrest.’” Rivera said authorities pulled up to his body shop, dressed head to toe in tactical gear. They rushed through the front door and into the shop. He said he’s learned a lot from their investigation. “One of the [investigators] left me a list for all of the paper work for all of the cars. It’s kind of list a hand receipt type of thing. So I’ll be prepared for next time,” said Rivera. Rivera says police came through the doors of his shop to make sure
every piece of paper work and VIN number was legit. And even though police cleared all of Rivera’s cars, he just hopes this doesn’t change peoples’ perception of his shop. “I have a good relationship with the community. I just want the customers know I got their cars here,” he said. “ Everything is back to standard, everything is okay and being worked on and we’re good to go.” Warrants were executed that resulted in several arrests. The task force is working with the district attorney’s office for prosecution.
Gordo’s Body Shop: Matthew Nathaniel Olivas, 28, insurance fraud of $1,500 to $20,000, with bail set at $2,500.
Rigo’s Body Shop: Juan Francisco Apodaca, 33, two counts engaging in organized criminal activity/insurance fraud, with bail totaling $40,000; Rigoberto Martinez Leanos, 45, two counts of engaging in organized criminal activity/insurance fraud with bail totaling $45,000; Cid Romero, 43, insurance fraud of $1,500 to $20,000, with bail set at $7,500; Christian Rodriguez, 23, insurance fraud of $1,500 to $20,000, with $7,500 bail; Daniel Martinez Salas, 23, insurance fraud of $1,500 to $20,000, with $7,500 bail; Julio Mota, 24, insurance fraud of $1,500 to $20,000, with $7,500 bail. Big V’s Body Shop: Christopher Adam Enriquez, 28, insurance fraud of $1,500 to $20,000, with $1,500 bail.
C&M Body Shop: Miguel Angel Garcia, 50, insurance fraud of $1,500 to $20,000, with $2,500 bail; Michael Christopher Crowe, 27, insurance fraud, with $10,000 bail. We thank kfoxtv.com for reprint permission. As always, suspects are innocent until admission of guilt or proven guilty in a court of law.
www.autobodynews.com C
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 21
2015 ABAT Prevailing Practices Study 1) Test drive vehicle after repair if damage necessitates.
A) Do you perform this item/operation? Never Some of the time Most of the time 0.00% 16.67% 31.48%
All of the time 51.85%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 59.26% 33.33% 3.70% 3.70% C) Do you get paid by at least one Insurance Company? Yes No 13.21% 86.79%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 90.57% 5.66% 3.77% 2) Clean vehicles after repairs?
A) Do you perform this item/operation? Never Some of the time Most of the time 0.00% 0.00% 5.56%
All of the time 94.44%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 38.89% 42.59% 12.96% 5.56% C) Do you get paid by at least one Insurance Company? Yes No 40.38% 59.62%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 92.45% 3.77% 3.77% 3) Ask for additional materials by invoice/calculator when exceeds cap/threshold?
A) Do you perform this item/operation? Never Some of the time Most of the time 0.00% 25.93% 12.96%
All of the time 61.11%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 3.70% 18.52% 18.52% 59.26% C) Do you get paid by at least one Insurance Company? Yes No 94.34% 5.66%
D) Do you get paid in body or paint? Body Paint Both 1.89% 71.70% 26.42%
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
4) Perform the labor for feather prime and block of repaired outer panels from the 150 grit level to slick ready for refinish operation.
A) Do you perform this item/operation? Never Some of the time Most of the time 0.00% 3.70% 7.41%
All of the time 88.89%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 11.11% 40.74% 24.07% 24.07% C) Do you get paid by at least one Insurance Company? Yes No 73.58% 26.42%
22 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
D) Do you get paid in body or paint? Body Paint Both 29.41% 27.45% 43.14%
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
5) Perform the labor to de-nib and polish trash particles from refinish work?
A) Do you perform this item/operation? Never Some of the time Most of the time 0.00% 3.70% 16.67%
All of the time 79.63%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 14.81% 29.63% 22.22% 33.33% C) Do you get paid by at least one Insurance Company? Yes No 83.33% 16.67%
D) Do you get paid in body or paint? Body Paint Both 24.49% 28.57% 46.94%
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00% See Prevailing Practices Study, Page 32
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 23
24 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. H O NDA T E X AS
TE XAS
LOU IS I AN A
TEXA S
Bankston Honda
Honda of San Marcos
Wholesale Parts Direct
Le w i svi lle
Sa n M a rco s
A us t i n
A l ex a n d r i a
800-344-8611 972-219-0021
866-392-1313 512-392-1313
800-234-4441 512-458-2910
318-448-8255 318-445-6677
Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com
Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com
Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com
Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com
Benson Honda
Howdy Honda
Sa n An to n i o
Au s t i n
800-727-8705 210-340-0831
877-941-6513 512-443-4300
Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com
Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com
Cleo Bay Honda
Kelly Grimsley Honda
K il le e n
O de s s a
877-253-6229 254-699-2478
844-453-5594 432-334-6632
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com
Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com
Honda Cars of McKinney
Russell & Smith Honda
McK i nn e y
972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com
Honda of Frisco F ri s co
866-442-2711 972-731-3176 Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com
H o us t o n
800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com
Rusty Wallis Honda D a ll a s
OKLAHOM A
Walker Honda
N EW MEX I CO
Don Carlton Honda
Garcia Honda
Tu l s a
A l b u q u e rq u e
800-722-2379 918-622-9670
800-677-6632 505-260-5002
Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com
Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
Fowler Honda N o r ma n
888-715-3197 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com LOU IS IANA
Superior Honda H a r v ey
800-943-4227 504-368-5687 Dept. Hours: M-F 7-5:30 parts@superiorhonda.net
877-466-3272 214-328-3891 Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com
ACU R A T E X AS
TE XAS
OKLAHOM A
LOU IS I AN A
Don Carlton Acura of Tulsa
Walker Acura
Tu l s a
800-359-8555 504-465-8555
Autonation Acura
Mac Churchill Acura
L e a gu e Ci ty
F o rt Wo r th
800-749-6227 713-371-4700
888-824-9634 817-806-0571
Dept. Hours: M-F 7-6; Sat 7-5 hoehns@autonation.com
Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com
David McDavid Acura
Sterling McCall Acura
A u stin
H o us t o n
800-575-3553 512-401-5976
713-596-2337 713-596-2338
Acura of Baton Rouge
Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com
Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com
866-733-2861 225-756-6166
David McDavid Acura Pl an o
888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
M e t a ir ie
Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com
LOU IS IANA
B at on Ro ug e
Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
972-964-6044 Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 25
Day Job/Night Job It’s a Doggone Good Life for a Body Tech and His Best Friend with Ed Attanasio
Chris Mashburn is a body technician at Dean’s Collision Center in Rome, GA. He does all of the vehicle restora-
The team has competed in 35 events since Mindy went professional in 2013 and were recently featured on ESPN. Credit: Beth Padgett Mitchell
tions for the shop, working primarily on muscle cars and trucks built in the ‘60s and ‘70s. He said that he loves restoring peoples’ dreams one car at a time, but he also has another passion that keeps him busy when he’s not on the clock. Her name is Mindy and she is not Mashburn’s significant other, but rather his three-and-a-half-year-old border collie who is a professionallytrained competitive Frisbee dog and currently ranked 14th in the world. It all started when Mashburn bought a little 10-week-old bundle of fur and named it Mindy. “She is the first dog I’ve ever owned, because I was a cat person for many years, to be honest. I knew I wanted to get a dog that could become a professional Frisbee dog, so that was my goal when I got her.” Mindy comes to work at the shop with Mashburn every day, letting her chill in an area that is away from the shop floor. During lunch, they practice their routines and then it’s back to
26 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
work until closing time. The competition season can take Mashburn out of the shop for extended periods, but fortunately, Mashburn has a very understanding boss, he explained. “Billy Dean is the owner and he likes dogs too and he knows that this is something I really enjoy, so he lets me go to all of the competitions. We plan it all in advance, to make sure that it does not impact the production schedule here at Dean’s.” The duo has developed a strong bond and that’s why Mashburn and Mindy are improving all the time and finishing high in all of their most recent competitions, he said. “Mindy picks up on my emotions and feeds off me when I’m excited or anxious; it’s pretty amazing. I get amped when the routine is going well and she can feel it too. When it comes off perfectly and we’re happy with the performance, it’s a rush for both of us.” The Frisbee training process re-
quires that both dog and master be dedicated to becoming world-class performers together. At 14 weeks, Mindy went through a series of obedience classes and then slowly the
When he isn’t training Mindy or taking her to competitions. Mashburn restores classic muscle cars at Dean’s Collision Center in Rome, GA.
disc was introduced to the mix. At the age of 18 months, Mindy was ready to compete at the highest level, although not every Frisbee dog is ready at the same time, according to Mashburn.
“You have to make sure that they’re mature enough physically to do the routines,” he said. “At 18 months, the plates in their backs and the muscles in the shoulders are probably developed enough to start entering competitions, so we made certain that Mindy was 100% ready before we did anything strenuous with her. She was ready to go when the time came and her enthusiasm for this sport has grown tremendously. It’s like she was born to do this!” When they entered their very first regional competition in 2013, both Mashburn and Mindy were nervous and at first a little overwhelmed. But once they got out there and started the routine, everything fell into place. “There were 18 dogs entered and some of them were really good and since we had zero experience, we thought if we finished in the top 10 we’d be delighted,” Mashburn said. “We over-trained actually and I guess it paid off, because we finished 5th overall. It was a pleasant surprise and at that moment I realized that Mindy could possibly become a world-class Frisbee dog.” After competing in eight different events last year, Mindy and Mash-
burn were ready for the big time when they traveled to Tennessee for the Skyhoundz Classic World Canine Disc Championship in Chattanooga, TN.
Body Tech Chris Mashburn and Mindy, his Frisbee dog, are currently ranked #14 in the world after their performance at last year’s Skyhoundz Classic World Canine Disc Championship in Chattanooga, TN. Credit: Jackie Rodeffer Scheetz
“It’s definitely one of the largest competitions in the world, so both of us were pretty excited,” Mashburn said.
“There were teams there from China, Japan, Russia, Colombia and the Czech Republic and they were all good. It’s an international sport now.” After fixing cars for many years, Mashburn now enjoys old classic vehicles. “I did insurance work for awhile and the money is better, but I love doing restorations. There are no cycle times or super-tight deadlines to worry about when it comes to doing restorations and I’m in this for the long-run, because I get a lot of satisfaction out of it.” After competing in 35 events in seven states, Mashburn and Mindy are ready to hopefully break into the top 10, possibly even next year, but time is on their side, because Mindy hasn’t even entered her prime yet. “She is getting better and so am I,” he said. “I’ll be working with Mindy until I’m 60 years old, so who knows what the future holds? But right now I am focusing on working with her every day and watching her as she becomes a better Frisbee dog.” Does that mean Mashburn is now a dog guy? “Yes, I do still like cats, but Mindy has changed my mind, of course, and now dogs (especially one particular dog) have found a special place in my life.”
UK Insurers: Luxury Car Drivers Have More Accidents
A UK study says that Smart car drivers are the nation’s safest, with luxury brands like Lexus faring poorly in accident rankings. New data reveals that Smart drivers have the lowest “at fault” insurance claim rate out of any car make. Between July 2014 and June 2015, Mercedes Benz-manufactured Smart cars only registered 78.6 at fault claims per 1,000 drivers. By comparison, Lexus owners proved to be the worst offenders, with 111 at fault claims per 1,000 drivers. The statistics reveal outdated driver stereotypes. Despite a reputation as a ‘boy racer’ favorite, Subaru slotted into third with just 79.7 at fault claims per 1,000 drivers. By comparison, luxury brands Land Rover and Audi joined Lexus in the bottom five, clocking 110.1 and 105.2 at fault claims respectively. Comparison site MoneySuperMarket analysed over 11.3 million car insurance quotes run on the site over 12 months. Mercedes and BMW do not make the list because their claims data falls somewhere in the middle. Premiums are then based upon the statistical likelihood that a car will be involved in an accident based on those parameters. The driver’s past record of accidents and claims will be taken into consideration too.
www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 27
Lean Operations
The Happy, Well-Informed Customer with David Luehr
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Even though most collision repair (if applicable) shops understand the importance of * That we will need the key fob for creating a positive customer experi- their vehicle with Jennifer Driscoll-Chippendale ence, many continue to unknowingly * Provide us keys for wheel locks, ski place themselves and their customers or bike racks, toppers, or tool boxes in the uncomfortable situations that * Removing sunglasses, garage door poor communication commonly cre- openers, parking permits etc. ates. I don’t know how many times I have witnessed this scenario; a cus- The Vehicle Check-in Erica Eversman tomer shows up with on Friday afternoon Shops are often paying the price for to pick up their repaired vehicle and not going over the vehicle during upon being presented with the bill, ex- drop-off. I recommend using a stanclaims, “I didn’t know I had a $500 dedardized form with reminder check ductible!” Invariably, these awkward boxes. The vehicle check in process situations always seem to occur with an promotes both quality and great cusoffice full of other customers! tomer service. with Attanasio Here are a few suggested topics It’s far too easy andEd irresponsible in my eyes to blame the customers for to cover as you walk around the vehithese situations. I feel that since we deal cle with the customer: with this stuff every day we have the * What is to be repaired? right and responsibility to help our cus* What is prior damage? (do they tomers through the process. Many of want it fixed too?) the best in class collision repair shops * Malfunction indicator lights on dash with Ed Attanasio have standardized processes in place to (Was this check engine light on prior eliminate these unnecessary problems to the accident?) and make the experience for the shop, * Are there any freebies or special rethe customer, and the waiting room full quests? (Touch-ups, wants an estimate of customers a pleasant and positively for missing light etc.) memorable one. Here are a few of my * Do we have the keys, wheel locks, suggestions. with Ed Attanasioetc.? * Does the customer have their garage door opener, parking permits, baby The Appointment Reminder Call The appointment reminder call serves seats etc.? several purposes besides just to re- * Do we have a signed authorization? mind the customer of their upcoming * Is the customer fully informed and repair appointment. This is a wonderhow much money they will be exVictoria Antonelli ful opportunity towith get great communipected to payyour and what forms ofwith payPromote business cation underway early and begin to ment are acceptable when they come an exclusive article featuring cut-off some of the potential problems to pick the vehicle? yourupproducts or services. that commonly occur. * What is the best way to reach the The source timely Discuss the for following with the customer during the repair process? information that every customer: (Cell phone, text, etc.) body shopdate needs! * Verify drop-off and time * What they can expect in terms of with Chasidy Rae Sisk * Early bird drop-off procedures (if communication frequency from the Call for details! applicable) shop. CALL 800-699-8251 * Rental car or transportation needs (if 800-699-8251 applicable) In Process Subscription *Mail Remove all personal belongings I recommend that customers be comfrom their vehicle (Trunk, interior, and municated with at least every two box/cargo area) with Ed Attanasiodays, unless they have requested oth* Insurance check has been received erwise. There are also various points
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that customers should be informed: * Blueprint - After the vehicle has been blueprinted to establish the updated price, and delivery promise date expectations. * Supplements - Any other supplements along the way. (This shouldn’t happen if it was blueprinted correctly) * Paint - When the car goes to paint. (Let them know if completion date is still on target) * Morning of expected delivery day. (This will highly increase your chances they will pick it up that day!)
Completion Call the customer once repairs have been completed and a final quality control inspection has occurred. During this call you will want to go over: * When they can arrive to pick the vehicle up * Rental cars and transportation * What they will owe you and what forms of payment are acceptable (I
know we already discussed this earlier but it’s pretty important, right?) If you are thinking that this looks like an excess of communication, you may be right to a certain extent. I have never seen a shop get a bad CSI Score for communicating too well, but I have seen far too many of the reverse. I would challenge you to consider the amount of time shops spend dealing with incoming calls from people checking on their repair status, dealing with missed damage and embarrassing unfulfilled promises with touch-ups, and much, much more. If you take back control of your time and invest it wisely in being a proactive communicator, everyone wins.
For more advice on how you can improve customer communication at your collision repair business, feel free to contact me directly at david.luehr @elitebodyshopsolutions.com or visit www.elitebodyshopsolitions.com
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 29
Media and Publicity for Shops 5 Smart Marketing Moves to Make in 2016 with Ed Attanasio
Last year around this same time, I sure they would not hesitate for a milwrote an article about 5 marketing-re- lisecond to do so. lated things to do in 2015 and I stand So, here are my new five things by everything I listed In order, to do- AtoSSISTANT take you to the next level. For withthere. Stacey Phillips EDITOR they were: shops that are already “all in” when it 1. Get Closer to Your DRPS comes to marketing, this is old news. 2. Get Closer to Your Community But, for those others who want to 3. Get More Social change the way they’re doing business 4. Update Your Web Site and and haven’t really made marketing a 5. Get a Blog! priority until now, this might be a great time to pursue a few of these. So, this year I’m offering you five new suggestions that you’ll hopefully 1. Enter the Video Age be able to integrate into your existing Actually, the video age began in earnest marketing strategy. more than a decade ago, but now it’s by When it comes to marketing, you far the most explosive media in the don’t get to rest and take a deep breath, world and one of the most affordable because marketing does not start and and effective forms body shops can use. stop. Whether you’re in a small town Just look at the statistics—YouTube has or a huge city, it’s likely that your over a billion users–almost a third of all competitors are constantly looking for the people on the Internet. The number another way for getting your cars into of hours that people spend watching their shops. If they could land a few of videos on YouTube has increased by your better DRPs and possibly get a 60% within the last two years. People don’t read as much as they better foot hold in your market, I’m
Shop Strategies
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
used to, because acquiring books (even e-books) can be clumsy when compared to just sitting down and watching a short video. The word “short” is important, because studies show that videos longer than two minutes lose considerable viewership, so the suggested length of any video is no longer than 90 seconds. To enter the video age, devise a video schedule so that you have a new one to show to your customers, employees, vendors or business partners every quarter. And remember, you don’t have to spend a lot of money to produce a series of attention-getting videos, because the technology is more affordable than ever and you don’t have to be Alfred Hitchcock to make brief, informative and even humorous videos.
2. SEO is More Important than Ever Last Year, shops all over the country learned that Search Engine Optimization (SEO) isn’t an “in house” or “do-it-
yourself” project. To move up Google’s rankings, you need an expert who can manipulate your keywords and stay on it 24/7, 365 days a year. Many shops say, “Hey-I’m #1 in my area on Google, so why am I still paying for SEO?” The answer is because your competitors are probably also now in the SEO game in a big way and likely taking shots at your top position on search engines right now. So, if you don’t have a good SEO person, ask around and no matter what, stay on the course when it comes to online rankings, because stats show us that more and more people find body shops by performing simple searches online.
3. Don’t Stop Believing in Blogging After Google’s re-working of their search algorithm, naming it Hummingbird and unveiling it two years ago, bloggers and web developers have been buzzing about it ever since, because it made blogs instantly relevant.
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Hummingbird is all about “fresh content”, because it is now able to judge context - thereby determining the intent of a person carrying out a search, to establish what they are trying to find out. What that means to you is that posting new things on your web site is a great way to help you on search engines and the best way to do that is by establishing a blog and vigilantly maintaining it. That’s the key, because too many shops started doing blogs, but then quickly abandoned them for whatever reason and now they’ve noticed that they are no longer #1 on Google. If you have a blog but you aren’t posting articles, photos and/or videos on it regularly—my advice is pull it off-line, because there is nothing worse than a ghost blog and it makes you look well, behind the times.
4. Cable TV vs. Radio-Who Wins? I used to say that radio was a viable way for shops to participate in the broadcast game, but now I am pulling that piece of knowledge off the table, because it no longer applies. Radio is not going away and it might be okay for a large MSO, but for smaller shops, radio does not have the targeting feature cable TV does.
Cable TV is trumping radio right now, because companies like Sirius and Pandora and taking some of terrestrial radio’s customer base. Also, if you purchase time on Comcast, for example, you can handpick what zip codes you want to reach. That way, you’re not wasting a lot of money advertising to people who are not in your region. For independent shops or small MSOs, cable TV is more precise and more affordable overall.
5. Yelp and Angie’s List are Losing Credibility More and more shops and their customers are beginning to see that Yelp and Angie’s List are not what they claim to be, because people can’t gauge the authenticity of the reviews. One shop wrote me an email last year
saying that several members of a competing shop gave him 1-star reviews and of course, they never brought their cars there. He contacted Yelp at least a dozen times to get them removed without success. His business is negatively impacted, even though he does good, honest work and is known for being excessively fair. Also, Angie’s List seems to work fine with home improvement companies and landscapers, but shops don’t seem to want to pay for a site that doesn’t bring cars into their shops. There are a lot of review sites out there that will only post customer reviews that are verified, so gravitate toward those and don’t spend money with any site that can’t guarantee full transparency and complete accountability.
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Vehicles 14 Years & Up Soar
According to Lang Marketing cars and light trucks 14 years and older will be the fastest growing vehicle age group in the U.S. between now and 2020. Lang Marketing projects more than a 16% surge in light vehicles at least 14 years old during a time when the total light vehicle population will increase less than one-third this amount. Lang Marketing projects approximately 15 million additional vehicles 14 years and up on U.S. roads by 2020, changing the mix of aftermarket products installed on cars and light trucks in the U.S. and infusing the light vehicle aftermarket with much of its growth. Ten years ago (2005) cars and light trucks 14 years and older comprised less than 21% of light vehicles on U.S. roads. With the unprecedented downturn in new car and light truck sales across the U.S. beginning in 2008, the age profile of vehicles in operation (VIO) began to rapidly shift. As new vehicle sales in the U.S. plunged between 2008 and 2011, Americans held on to their vehicles, rather than replacing them. As a result, the population of vehicles 5 years and younger imploded as the older vehicle population surged. Between 2007 and 2013, the number of cars and light trucks 5 years and younger fell more than 17 million.
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7802 Broadway • Galveston, TX 77554 www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 31
Continued from Page 22
C) Do you get paid by at least one Insurance Company? Yes No 47.17% 52.83%
Prevailing Practices Study
6) Covering of vehicles to reduce additional damage?
A) Do you perform this item/operation? Never Some of the time Most of the time 100.00% 5.56% 11.11%
All of the time 83.83%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 12.96% 14.81% 24.07% 48.15% C) Do you get paid by at least one Insurance Company? Yes No 85.19% 14.81% D) Do you get paid in body or paint? Body Paint Both ? ? ?
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
7) Tint paint for better match and following of manufacturer’s recommendations?
A) Do you perform this item/operation? Never Some of the time Most of the time 1.85% 27.78% 22.22%
All of the time 48.15%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 20.75% 47.17% 15.09% 16.98% C) Do you get paid by at least one Insurance Company? Yes No 79.63% 20.37%
D) Do you get paid in body or paint? Body Paint Both 6.00% 64.00% 30.00%
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
8) Provide additional efforts required in pre-fitting of non OEM parts and used parts?
A) Do you perform this item/operation? Never Some of the time Most of the time 3.70% 22.22% 29.63%
All of the time 44.44%
D) Do you get paid in body or paint? Body Paint Both 84.85% 0.00% 15.15%
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 92.16% 3.92% 3.92%
10) Perform labor of removal and replacement of structural foam when required in damaged areas?
A) Do you perform this item/operation? Never Some of the time Most of the time 1.85% 7.41% 16.67%
All of the time 74.07%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 20.75% 35.85% 26.42% 16.98% C) Do you get paid by at least one Insurance Company? Yes No 62.96% 37.04%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
11) Create fabrication of templates, inserts and sleeves (labor and material)?
A) Do you perform this item/operation? Never Some of the time Most of the time 3.70% 270.37% 18.52%
All of the time 57.41%
See Prevailing Practices Study, Page 36
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B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 40.74% 42.59% 7.41% 9.26% C) Do you get paid by at least one Insurance Company? Yes No 37.74% 62.26%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
9) Have administrative and time allowance for estimate and total loss paperwork preparation?
A) Do you perform this item/operation? Never Some of the time Most of the time 14.81% 18.52% 12.96%
All of the time 53.70%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 37.04% 35.19% 14.81% 12.96%
32 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 33
Freer Auto Body’s Cookies and Cocoa Event Held in IL to Help Others Have a Nice Holiday Freer Auto Body’s 8th annual Cookies and Cocoa for Community Christmas event was held in December at their Godfrey location in Illinois. “It was a wonderfully successful event,” said Margaret Freer. “We collected $2,800 in cash, a lot of gift cards, 38 bikes and tons and tons of toys, coats, boots, etc.”
Taylor and Lily Freer received awards for their volunteer efforts during Freer Auto Body’s Cookies and Cocoa event in December
Cookies and Cocoa was started in December 2008 in memory of Margaret’s son, David, who died in an automobile accident September 11, 2008. Her granddaughters, Taylor and Lily, came up with the idea with their grandmother and were presented with the 2015 Outstanding Community Christmas Volunteer and Fundraiser Award at the event. The two girls raised $24,500
at their “Sloppy Joe Christmas in July Sale” held earlier in the year. “Many many families will have a nice Christmas due to our efforts,” said Margaret. “We have supported Community Christmas since we opened in 1991 and it was our son David’s favorite community project.” She said he would go after Christmas to local stores finding bargains and save until the next Community Christmas. The Freers and their friends bake homemade cookies and make cocoa for those who come by with donations. Freer Auto Body, run by Margaret’s son Tim, is the largest supporter of the event, which is sponsored by the United Way and the Telegraph. The agencies benefitting from the event include: Boys and Girls Club of Alton, Catholic Charities of Madison County, Catholic Childrens Home, WellSpring Resources, Charity Works, Childrens Home and Aid, Crisis Food Center, Illinois Center for Autism, Lutheran Child and Family Services, Oasis Women’s Center, Operation Blessings, Riverbend Community Food Pantry, Riverbend Family Ministries, Riverbend HeadStart & Family Services, Salvation Army, Villlage of Royal Lakes Concerned Citizens and Chriastian Social Services. Margaret said the United Way will
use the money her granddaughters raised in July to buy additional items and grocery gift cards. “We have seen tragedy in our lives but we realized
The Freers collected toys, coats, boots and other gifts during the Cookies and Cocoa event at Freer Auto Body
God has blessed us also,” she said. “We have the very best family, customers and friends….very best ever. Our community has made us what we are today and we try to give back and make it a better place. If everyone would keep the Christmas spirit of giving, love and kindness in their hearts all year it would be a wonderful world. When you are blessed you need to pay it forward.”
Spanesi Benches & Jig System Approved for GM Vehicles
General Motors has approved Spanesi’s Benches and the Superstar Universal Jig system for structural repairs for the new Cadillac CT6. In addition to GM’s approval for the CT6, GM has approved Spanesi Benches to repair all GM vehicle models throughout the U.S. and Canada. GM requires that all facilities to use an approved holding system, with an approved bench, to repair collision damage on the CT6. Structural repair parts for the CT6 are only being distributed to GM certified shops that have approved tools and equipment. In addition, technicians must attend approved training to qualify for the CT6 certification. “We are proud to be approved by GM for not only the Cadillac CT6, but for use on all GM vehicles,” stated Tim Morgan, managing director of Spanesi-Americas. “Built with aluminum and high-strength steels, the Cadillac CT6 requires the vehicle to be anchored securely using structural or suspension locations instead of the traditional pinch weld locations. Spanesi’s Superstar Universal Jig system easily meets these requirements, without having to purchase new equipment or rent fixtures.” To learn more, contact Spanesi at 224-SPANESI (772-6374), or visit www.spanesi.com.
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34 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
Hyundai-Kia Involved in OIN Patent Non-Agression
Open Invention Network (OIN), the largest patent non-aggression community in history, announced today that Hyundai Motor Company and Kia Motors Corporation are joining OIN as community members. Recognized as leaders in quality and innovation, Hyundai and Kia are the first global automobile brands to join OIN. Their industry leadership and participation in OIN will pioneer open source innovation and patent non-aggression in the rapidly evolving automotive and Internet-of-Things platforms. “The pace of adoption of Linux and open source technologies in the intelligent vehicle and Internet-of-Things industries is unprecedented. While automotive and consumer device manufacturers have historically designed and built proprietary platforms from the ground-up, these communities are benefiting from the innovation and collaboration inherent in open technologies that speed new features, drive quality, power interoperability and lower costs,” said Keith Bergelt, CEO of Open Invention Network. “We greatly appreciate Hyundai-Kia Motors’ automotive industry leadership in joining OIN and supporting patent non-aggression. Hyundai and Kia are demonstrating their commitment to
open source software and the associated development efforts that benefit the automotive market, consumer device industries and ultimately consumers.” “We believe Linux and open source technologies are increasingly important in today’s intelligent vehicles,” said Eon Youl Shin, Director of Intellectual Property Development Group at Hyundai Motor Company. “Hyundai-Kia Motors are both committed to offering the highestquality, intelligent vehicle platforms that leverage Linux and open source technologies. By joining the Open Invention Network, we will use the opportunity to further develop its infotainment platform. Moreover, we will help to ensure the ongoing development of open solutions that stimulate growth in the automotive industry.” OIN’s community practices patent non-aggression in core Linux and adjacent open source technologies by cross-licensing Linux System patents to one another on a royalty-free basis. Patents owned by Open Invention Network are similarly licensed royalty-free to any organization that agrees not to assert its patents against the Linux System. The OIN license can be signed online at http://www.j-oin.com/.
Google Compare Sells Insurance Comparisons Only
Nicolas Weng Kan, CEO of Google Compare, told an audience of insurance professionals that “Google Compare is not becoming an Auto insurance carrier,” as reported by Rosalie Donlon writing at PropertyCasualty 360.com. Speaking at the Annual Insurance Executive Conference held in New York City, Weng Kan said that Google wants to partner with carriers to make the buying experience better for the consumer while delivering more qualified leads to carriers, agents and brokers. Google’s strength is in its ability to quantify search and analyze data, and the company wants to put that strength to use in a broad array of financial services, from insurance to banking, including credit cards and mortgages. Weng Kan explained that in building Google Compare, his team met with carriers and agents to build question sets to gather basic information from consumers as they began their hunt for Auto insurance. The company also used focus groups to determine what customers want and need. What they heard over and over was that consumers were looking for an easy way to compare prices. “Why isn’t there a Kayak for auto insurance?” one focus group
member said. Google used that same concept to build Compare. “With Compare, we want to give customers accurate prices—not just estimates,” Weng Kan said. The Internet is now the most common channel to get insurance information, and the search is moving rapidly to mobile. “Customers do their research on mobile but actually buy on their computer,” Weng Kan noted. According to Google’s research, in the first quarter of 2014, 41% of people who queried vehicle insurance-related terms did so from their mobile devices (phones and tablet). In the third quarter of 2015 that number jumped 12 percentage points to 53%. Google Compare sees itself as a lead generation program that takes all the marketing risk and transfers qualified leads to the carriers, Weng Kan explained. Consumers are assured that their personal contact info isn’t passed along to the carriers until the consumer initiates the contact. If the customer does contact the insurer, the carrier only pays when the customer converts. “You only pay a flat rate per customer,” he assured the audience. “It’s a negotiated rate, not a pay-perclick structure.”
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Continued from Page 32
Prevailing Practices Study B) Do you put this item/operation on your estimate? Never Some of the time Most of www.autobodynews.com the time All of the time 45.28% 28.30% 9.43% 16.98%
CHECK IT OUT!
C) Do you get paid by at least one Insurance Company? Yes No 45.28% 54.72%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 100.00% 0.00% 0.00%
To advertise calland Advertising Sales 12) Provide protection of interior components compartments duringat: welding, grinding working of repaired area (labor to800-699-8251 place and remove welding mats and covers)?
e-mail:
advertising@autobodynews.com A) Do you perform this item/operation? Never Some of the time Most of the time All of the time 3.70% 0.00% 11.11% www.autobodynews.com 85.19%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 57.41% 24.07% 9.26% 9.26% C) Do you get paid by at least one Insurance Company? Yes No 27.78% 72.22%
Be Seen by Our Readers!
D) If your business wasn’t adversely affected Insurance Industry, CALLtheAdvertising Saleswould at: you request payment for this operation? Yes No Don’t Know 98.08% 1.92% 0.00%
800-699-8251
advertising@autobodynews.com
13) Provide sublet handling fee/mark up on www.autobodynews.com all sublet repairs that you do NOT have an agreed DRP arrangement with?
A) Do you perform this item/operation? Never Some of the time Most of the time 5.56% 3.70% 11.11%
All of the time 79.63%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 9.26% 7.41% 11.11% 72.22% C) Do you get paid by at least one Insurance Company? Yes No 83.33% 16.67%
D) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 98.08% 1.92% 0.00% 7) Perform clean-up of LKQ parts?
A) Do you perform this item/operation? Never Some of the time Most of the time 1.85% 5.56% 18.52%
All of the time 74.07%
B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 22.64% 24.53% 22.64% 30.19% C) Do you get paid by at least one Insurance Company? Yes No 66.04% 33.96%
D) Do you get paid in body or paint? Body Paint Both 80.00% 0.00% 20.00%
36 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Promote your business with Yes No Don’t Know 100.00% 0.00% 0.00% an exclusive article featuring
your products or services.
15) Additional laborfor andtimely materials for non OEM parts that don’t fit? The source
information that A) Do you perform thisevery item/operation? Never Some ofneeds! the time Most of the time body shop 1.98%
20.75%
16.98%
All of the time 60.38%
29.41%
41.18%
13.73%
15.69%
Call for details! CALL 800-699-8251 B) Do you put this item/operation on your estimate? Never Some of the time Most of the time All of the time 800-699-8251 FREE
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C) Do you get paid by at least one Insurance Company? Yes No 39.22% 60.78%
D) Do you get paid in body or paint? Body Paint Both 68.57% 0.00% 31.43% Register Your
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E) If your business wasn’t adversely affected the Insurance Industry, would you request payment for this operation? Yes No Don’t Know 98.04% 0.00% 1.96%
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 37
Toyota, Honda Models Top Insurance Institute's Safest-Car List; VW is 3rd Toyota Motor Corp., Honda Motor Co. and Volkswagen AG had the most models rated among the safest U.S. vehicles in a year-end review by the Insurance Institute for Highway Safety. Toyota led the industry with nine models on the institute’s list, followed by Honda with eight and VW with seven. Fiat Chrysler Automobiles had the only U.S.-made car on the list, the Chrysler 200 midsize sedan. A total of 48 car and SUVs got the institute’s safest car designation of “top safety pick plus.” Toyota’s vehicles on the list ranged from the $16,000 Scion iA to the Lexus RC, a large luxury car which retails for more than $40,000. Honda models included the Accord sedan and Acura RDX luxury SUV. Among Volkswagen vehicles were the Jetta, Passat and Audi A3. Recommendations from the safety group, which is funded by the insurance industry, are followed by car shoppers and automakers alike. They also provide a glimpse of the future as the criteria include elements that U.S. safety regulators announced this week they want to add to their ratings. To get the institute’s highest designation, vehicles have to perform well in a tough offset frontal crash test and also offer automatic braking technol-
ogy. Three years ago, the group shifted to the test, in which a small part of a vehicle’s front end strikes a fixed barrier at 40 miles per hour, in an effort to reduce fatalities and injuries in crashes like those involving a off-road tree or utility pole. Insurance industry data showed this was a particularly deadly type of crash. “As vehicles continue to improve, we think it’s important to recognize that progress and encourage further advances by making our ratings more stringent,” said Adrian Lund, CEO of the insurance institute. The National Highway Traffic Safety Administration announced Tuesday it will introduce a similar frontal offset crash test in its New Car Assessment Program. The auto-safety regulator is also introducing a new crash-test dummy with more sensitive injury sensors and would adjust its star ratings to include credit for crash-avoidance technologies. In the insurance-industry ratings, some models that got the IIHS top safety designation last year fell off the list with 2016 models, because the institute shifted its minimum criteria from “acceptable,” its second-highest rating, to “good,” its highest. The models also had to offer automatic braking,
a crash-avoidance technology that will slow or stop a vehicle if it senses an www.autobodynews.com impending collision, even without the CHECK driver taking actions.IT OUT! VW touted the appearance of the 2016 Passat sedan on the IIHS list, after the company redesigned the car with a fully reinforced structure. Driver-assistance features like automatic braking, forward-collision alerts and a lane-departure warning are standard, the company said in a statement today. The top-pick designation “demonTo advertise strates callVolkswagen’s Advertising longstanding Sales at: commitment to vehicle safety and the 800-699-8251 development of innovative technologies,” Mark McNabb, COO of Volke-mail: swagen of America Inc., said in the advertising@autobodynews.com statement. The car’s technology is www.autobodynews.com “unique to the segment and not typically seen outside the luxury market,” McNabb said.
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American Honda is Among Industry Leaders with Eight Honda and Acura Vehicles Earning a 2016 TOP SAFETY PICK+ Rating from the IIIHS—New Crash Protection and Technology Requirements Factored into the Ratings
A total of eight Honda and Acura models have received the highest possible safety rating of TOP SAFETY PICK+ from the Insurance Institute for Highway Safety (IIHS) under its more challenging crash protection and technology requirements implemented for the 2016 model year. For model year 2016, four Honda models have earned a TOP SAFETY PICK+ rating: the Accord Sedan, Accord Coupe, the CR-V sport-utility vehicle and the recently redesigned Honda Pilot SUV. The Odyssey minivan was named a TOP SAFETY PICK. Additionally, four 2016 Acura models, the ILX and RLX sedans and the MDX and RDX luxury SUVs, each have earned a TOP SAFETY PICK+ rating. Further, Honda anticipates that the just released 2016 Honda Civic Sedan will also receive a top rating from the IIHS. “The fundamental notion of vehicle safety is evolving and with technologies like some of those in Honda Sensing and AcuraWatch, we are pursuing our vision to reduce and, ultimately, to eliminate vehicle collisions,” said John Mendel, executive vice president, American Honda Motor Co., Inc. “This is one of our biggest challenges and an essential element of our commitment to making products that im-
prove the lives of people.” The baseline requirements for both IIHS awards are GOOD ratings in the small overlap front, moderate overlap front, side, roof strength and head restraint tests, as well as a standard or optional front crash prevention system. The recipients of the “plus” award have a superior- or advanced-rated front crash prevention system with automatic braking capabilities. These vehicles must stop or slow down without driver intervention before hitting a target in tests at 12 mph, 25 mph or both. Models with a basic-rated front crash prevention system, which typically only issues a warning and doesn’t brake, qualify for TOP SAFETY PICK. Honda and Acura vehicles offer a broad range of active and passive safety features along with leading edge safetyand driver-assistive technologies that can take action to help avoid a collision or mitigate its severity. The AcuraWatch™ suite of technologies is now available across the full Acura lineup, while Honda Sensing™ is available on a growing list of Honda brand vehicles, now including the 2015 and 2016 CR-V, 2016 Pilot, 2016 Accord Sedan and Coupe, and all-new 2016 Civic Sedan. Core AcuraWatch™ and Honda Sensing™
technologies include Forward Collision Warning (FCW), Collision Mitigation Braking System™ (CMBS™), Lane Departure Warning (LDW) and Lane Keeping Assist System (LKAS). Additionally, all new Honda and Acura models come with a multi-angle rearview camera as standard equipment. Standard safety equipment on all Honda and Acura models includes the Advance Compatibility Engineering™ (ACE™) body structure, Vehicle Stability Assist™ (VSA®) with traction control; an Anti-lock Braking System (ABS); side curtain airbags (most vehicles equipped with a rollover sensor as well); dualstage, multiple-threshold front airbags; and front side airbags. American Honda has a long history of leadership in the development and application of advanced technologies designed to enhance the safety of all road users, including automobile occupants, motorcycle riders and pedestrians. The company operates two of the world’s most sophisticated crash test facilities, in Ohio and Japan, and is responsible for numerous pioneering efforts in the areas of crashworthiness, airbag technology, collision compatibility and pedestrian safety. Based in part on advancements to
Honda’s Advanced Compatibility Engineering™ (ACE™) body structure, Honda is a leader in third-party crash test ratings within the industry. The company also is broadly applying advanced safety and driver-assistive technologies such as LaneWatch, Forward Collision Warning and Lane Departure Warning to its product lineup. Also, all Honda and Acura vehicles have applied a rearview camera as standard equipment since the 2015 model year. 2016 American Honda TOP SAFETY PICK+ Vehicles: Honda: Honda Accord Coupe; Honda Accord Sedan; Honda CR-V; Honda Pilot Acura: Acura ILX; Acura MDX; Acura RDX; Acura RLX 2016 American Honda TOP SAFETY PICK Vehicles: Honda: Honda Odyssey
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PA Body Shop Owner Addresses Markup Fees with Insurance Companies by Stacey Phillips, Assistant Editor
After resolving a lawsuit with Travelers Insurance in March, a Pennsylvania body shop owner said he could have never predicted he would be involved in a similar lawsuit with GEICO a few months later. Both cases involved the reimbursement of markup fees charged for the administration of ordering, receiving, warehousing and dispatching of parts used on vehicles. “Far more people need to be proactive and stand up for themselves and not be afraid to ask for what they are owed,” said Tim Kilkeary, owner of Kilkeary’s Auto Body in Eighty Four, PA. “Nobody is getting rich in this business anyway and to do it and not make a profit, it’s just insane.” In the first case, Kilkeary’s Auto Body repaired a 2006 Dodge Ram truck in February 2013. The body shop originally wrote the estimate using OEM parts; however, the Travelers’ estimate reflected using an aftermarket front bumper. Kilkeary said the usual protocol at his shop is to contact the customer to let him or her know the cost difference between the parts. “We will install those parts if the customer gives us permission to, but at the same time we make it perfectly clear to the customer that it’s not our policy, it’s not our decision and it’s not what we would recommend,” he said. After 35 years running his shop, Kilkeary has found that in most cases the customer will opt to pay the difference to install OEM parts on their vehicle, which can equate to approximately a 20 percent increase in cost. Kilkeary called the owner of the vehicle and told him that he would use the aftermarket parts on the truck but if anything went awry, the customer would need to address it with the insurance company. “I’m not going to be held responsible for a decision that someone else made,” said Kilkeary. His customer decided to go ahead and have the car repaired with the aftermarket part. After it was installed, the techs found it did not fit like the factory Dodge bumper. When Kilkeary told Travelers that his customer wouldn’t accept the aftermarket bumper, the insurance company sent an appraiser back to the body shop. Kilkeary was told to put a factory bumper on the truck and he would be paid for the labor to replace the part as
well as the cost difference between the OEM part and the aftermarket part. However, he said he was not reimbursed for the markup on the part, which was $156.88 including tax. He filed a civil case in March 2013 for the markup fee and received a favorable settlement in March 2015.
Tim Kilkeary, owner of Kilkeary Auto Body in Eighty Four, PA
“The bottom line is if you’re doing something that they insist you do, you have to be diligent about getting paid for whatever it is,” said Kilkeary. “I don’t think any collision repair shop owner should allow any insurance company to come in and dictate to them how to run their business.” A few months later after receiving the settlement, Kilkeary’s shop was involved in a similar situation. GEICO wrote an estimate on a 2007 Mazda 6 that included aftermarket headlights. The shop notified the customer and he decided not to use the OEM parts. Kilkeary said there were some internal issues with the headlight and it wouldn’t aim properly. After contacting the appraiser, Kilkeary was told to replace it with a used headlight. When the part arrived, the shop found it was damaged. “By this time the car was held up for four days so we put a factory headlight on the car,” he said. GEICO paid the difference between the list price of the parts as well as the labor to repair the vehicle. “The issue on the Mazda repair became who is going to pay us the markup money on the aftermarket light and the used light—both of which they insisted we use,” said Kilkeary. “We submitted a supplement to them with the markup money on it and they refused to pay it.” Kilkeary sued GEICO for $266.06 plus court costs and was awarded the full amount. “Moving forward, we’ll have the ability to pursue an insurance carrier who chooses not to pay the same money for bad faith. We’ve now set
40 JANUARY 2016 AUTOBODY NEWS | www.autobodynews.com
precedence and it has been established that they in fact owe the money,” said Kilkeary. “That markup money is the body shop’s, regardless of whether the parts get put on the car or not.” “Each of the cases is similar in the sense that they involve aftermarket parts,” said Tom Vreeland, Kilkeary’s lawyer. “I think Tim wants other shops to know that the expenses they incur for these kinds of requests by the insurance company should be compensated,” he said. “When they say, ‘install an aftermarket part,’ and it doesn’t fit, why is the burden on the mechanic to absorb that overhead expense?” Vreeland advises shops to document their personnel costs for doing inventory and office paperwork. “They need to be able to document what their expenses are,” said Vreeland. “Some people might think $100 doesn’t seem like much, but it adds up. Multiply that times the number of situations that you have on an annual basis and that could be substantial money for some shops.” “With all of the money I spent to win these lawsuits the only saving grace will be that I can get some infor-
mation to the rest of the industry that says, ‘Listen, the insurance companies knew they owned me that money,” said Kilkeary. “If they paid me, they will pay anyone else. You have to ask for it.” Travelers Insurance and GEICO both declined to be interviewed for this article. Autobody News talked to Michael Barry from the Insurance Information Institute about who bears the cost of markup fees. “U.S. auto insurers cumulatively pay the nation’s auto body repair shops billions of dollars a year to repair their policyholders’ vehicles,” said Michael Barry, vice president, media relations, Insurance Information Institute. “Those monies are used to pay auto body repair shops for the parts they purchase as well as their legitimate labor costs. Auto body repair shop markup fees are not an expense auto insurers should be absorbing.”
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Zara’s Collision Center in Illinois Gives Away Olds Alero as Part of Benevolence Program Mahogony Wilson, a single mother trying to coordinate a work schedule and daycare without a vehicle, will now have one of her primary goals met thanks to Zara’s Collision Center’s Benevolence Program. Wilson, a front desk clerk at Courtyard by Marriott, and her three-year-old daughter Aniya were presented a refur-
care without relying on cabs … and giving us more money because we won’t be paying for cab rides. It means I won’t need to depend on public transportation when I get off work at 11 at night. Next year, I plan to start my own business and return to school. Having a vehicle means that can really happen now. We’re so excited!” Zara’s was originally alerted to Wilson’s need for a vehicle by the staff of Contact Ministries who were impressed by her self-direction, work ethic, and devotion to being a role model and building a stable environment for her daughter. “The determination to make a better life for herself and her daughter was already part of who Mahogony is,” said Julie Zara, co-owner of Brad Zara, Mahogony Wilson, daughter Aniya, and Zara’s Collision Center. Julie Zara “What’s truly exciting for us bished 1999 Olds Alero. The vehicle was at Zara’s is that something so taken for unwrapped on December 9 during a granted as a vehicle by most of us is such luncheon ceremony of 150 attendees at a tremendous springboard for the future Zara’s Collision Center in Springfield, dreams of Mahogony.” IL. It is the 17th year that Zara’s has “I returned to Springfield this past purchased at least one vehicle, restored year from Ohio to give my daughter a it to pristine condition, and then donated better life,” said Wilson. “A vehicle the vehicle to an individual in need. means I can pick up Aniya from day- Over the course of those years, Zara’s
has given away nearly 30 vehicles. A comprehensive maintenance check is done to verify the vehicle’s safety and reliability. Typically, a lot of time is spent searching for the vehicles, then purchasing them from the owners or salvage yards. Many times vehicles are provided by people in the commu-
Nearly 70 donors contributed to the program this year for items such as vehicle repair, paint material, mechanical work, gift cards, and monetary gifts exceeding $7,600. “Many of our team here at Zara’s have contributed everything from time and talents to purchasing toys and gifts for the family,” said Zara. Zara’s Collision Center is one of the original Akzo Nobel Acoat® Selected shops refurbishing and then giving away vehicles to deserving individuals. That founding program has inspired other national organizations to start similar programs collectively donating nearly 200 vehicles in 2015. “The focus of the program is individuals who are workMahogony Wilson and daughter Aniya in the totally ing to help themselves,” said refurbished 1999 Olds Alero Zara. “To be eligible, a pernity who have heard about Zara’s son must have a valid driver’s license, Benevolence Program. In the case of a good driving record, and a verified the Olds Alero refurbished for Wilson, need for a vehicle.” The certifications that follow assure it was damaged in an accident and Zara’s purchased the vehicle from the that Zara’s possesses the proper tools, owner with the intent to refurbish it for equipment, facilities, and trained staff required to repair the vehicle brands to the the Benevolence Program. Zara’s vendors, employees, precise specifications to ensure the fit, friends, family and insurance agents finish, durability, value, and safety of the also actively support the program. vehicles.
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I-CAR® Announced 2015 Recipients of Jeff Silver and Russ Verona Awards at SEMA
I-CAR® has announced the 2015 recipients of two of its industry awards at the 2015 SEMA Show. Among those honored wereJames Losel, recipient of the Jeff Silver Award; and Mike Loy’s Collision, recipient of the Russ Verona Award. The recognized individual and business both respectively exemplify the I-CAR spirit of professionalism, integrity and excellence. “I-CAR awards are a wonderful way to celebrate those industry leaders who have made a big difference in helping us better serve the industry with the critical information and knowledge that contributes to complete, safe and quality repairs for the ultimate benefit of the consumer,” said John Van Alstyne, I-CAR CEO and president. “The response to these awards has been overwhelmingly positive as the industry recognizes exemplary models of what I-CAR stands for—being fiercely committed to reaching every collision repair professional.” I-CAR recognized the significant contributions of the following individuals and businesses during the Collision Industry Conference: ● The Jeff Silver Award was pre-
sented to James Losel who, just like the award’s namesake, embodies a true passion for training and professional growth. Individuals must hold an I-CAR Platinum™ certification for at least five years, promote the Platinum certification and training and bolster the collision industry’s positive image through their work. Losel is an estimator for State Farm® Insurance, holds an I-CAR Platinum designation and is an ASE Master Technician. He is training the next generation of collision repair professionals through his work instructing and serving on the Erie Community College Advisory board. ● Mike Loy’s Collision, recipient of the Russ Verona Award, has been an I-CAR Gold Class® designated shop for 20 years. Owner Mike Loy is an active participant in several charities and I-CAR committees across Ohio and promotes Gold Class through local marketing channels. The award, named in honor of the first business leader whose business earned the Gold Class designation, recognizes businesses that demonstrate dedication and professionalism in the collision repair industry.
Integration Between PartsTrader and Axalta’s ProfitNet Said to Simplify Tasks for Body Shops
PartsTrader has announced an integration between the PartsTrader platform and the ProfitNet™ Management System. ProfitNet is a product from Axalta Coating Systems, the leading global manufacturer of liquid and powder coatings. The new ProfitNet™ Collision Shop Management System (CSMS) interface is a two-way electronic interface between the ProfitNet Management System and PartsTrader that helps eliminate redundant tasks between the two systems. Key information needed for parts procurement and order status can now seamlessly be transferred between parts vendors and collision shops using the ProfitNet Management System. The ProfitNet CSMS is a software program is designed to measure and manage all aspects of the collision repair business. The program provides collision shop owners with detailed operational and financial information needed to make decisions regarding the productivity and profitability of their businesses. “By partnering with Axalta, PartsTrader continues in its commitment to streamlining the parts procurement process with this integration between two industry leading platforms,” said Dale Sailer, PartsTrader’s Vice President
of Business Development. “Collision repairers who use both PartsTrader and the ProfitNet CSMS are positioned to achieve additional savings. The improved margins that PartsTrader can help collision repair shops achieve, combined with the reduced administration costs by using the ProfitNet CSMS, are designed to result in bottom line profits for our mutual customers.” “Currently, PartsTrader software is widely used by Axalta customers via their estimating platforms,” stated Tom McGarry, Axalta’s North American Information Technology Services Manager. “Now they can easily use much of the PartsTrader functionality from within the ProfitNet CSMS, thereby saving time and eliminating potential errors from double entries. Axalta is dedicated to enhancing the ProfitNet CSMS with the latest technology to help lower shops’ administrative costs by providing a management solution that is affordable, easy to use and communicates with all industry software partners including parts procurement software, Customer Satisfaction Index services, dealership management software, paint software, auto rental services and accounting software.”
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BASF Hires Tim Dawe as New Sales Director
Timothy P. Dawe joined BASF Automotive Refinish as the new sales director for North America. Previously, Dawe was the managing director for Axalta in China. “Tim’s extensive experience and knowledge of the automotive refinish industry will enable him to immediately start to drive growth for BASF and our distribution partners,” said Paul Whittleston, BASF VP for Automotive Refinish & Industrial Coating Solutions in North America. “This is a new position that will provide additional focus for our commercial team.” Dawe has more than 30 years of experience in Automotive Refinish. He began his career at DuPont Performance Coatings in 1980. In 2011, he was named business director for Axalta in Greater China and managing director in 2013. “Spending time in China emphasized the importance of listening to customers and developing relationships with them. My primary focus at BASF is to work with our sales team and key distribution partners to grow the business,” said Dawe. For information, visit www .basfrefinish.com
Chinese Carmaker Cowin Pioneers Crowdsourcing
China has become the world's largest market for automobiles, with over 100 million vehicles currently registered. Major auto manufacturers worldwide regard the country as a key market and have been aggressively competing for market share through a combination of directly imported vehicles and those made by joint ventures locally in the country. Models manufactured by joint ventures have led to further reductions in car prices, putting huge pressure on China's homegrown auto brands. As a result, the homegrown brands have been looking at transforming their businesses, in the hope of finding a new path for development. An illustration of that effort can be found at Cowin Auto, a Wuhu-based carmaker established in January 2014. This relatively new entrant into the field has tried out a new idea that is gaining traction: applying the crowdsourcing model to the design of an automobile by outsourcing the work of the design of the vehicle to the public via the Internet. The carmaker asks members of the general public to vote for the most popular model and then follows on the results of the poll to put the winning design into mass production.
PPG Announces Sponsorship of Women’s Industry Network
PPG has become a gold-level sponsor of the Women’s Industry Network (WIN®). WIN is dedicated to encouraging, developing and cultivating opportunities to attract women to the collision repair industry. The organization offers mentorship programs and educational conferences designed to provide members with the skills required for professional success. WIN also works to promote leadership, recognize excellence and foster a strong network among women who are actively shaping the industry. “PPG is proud to support WIN,” said DeCamp. “WIN’s slogan is ‘She Knows Collision Repair,’ and we at PPG agree. The programs WIN provides help make its members valuable contributors to our industry. WIN, in its advocate role, is making a positive impact on our industry—making it more productive, more professional, more progressive. It is an honor to be a WIN sponsor.” Established in 2006, WIN currently has a membership of more than 400 professionals. The next national WIN meeting will be May 2, 2016–May 4, 2016, at Hilton Tampa Downtown, Tampa, FL. See http:// thewomensindustrynetwork.ning.com
EMM’s Colad Optimus & Colad Advanced Cut Introduced
EMM recently introduced Colad Optimus and Colad Advanced Cut. The company said Colad Optimus offers a quick and safe abrasive solution to eliminate paint defects and achieve a prepared surface before polishing, resulting in a high-gloss finish and lower polishing times. Using silicon carbide grain, Colad Optimus is an abrasive solution that can be used during wet as well as dry sanding. The pad can be rinsed and reused several times before losing its sanding properties. The velcro back indicates the abrasive grit and makes the pad suitable to use over and over again on velcro as well as hand support pads. The open structure and knitted back of the pad prevent the risk of clogging and make it flexible and suitable for polishing angles and curved surfaces. This eliminates the risk of pressure marks in the paint, caused by uneven pressure during sanding. The company said Colad Advanced Cut removes difficult scratches and paint defects. The solvent- and silicone-free cutting compound does not require masking before being applied. For information, contact sales@ emm.com or your local Colad dealer or visit www.emm.com.
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Quality Parts Coalition Says Consumers Have Saved $363M By Using Aftermarket Parts On Dec. 2 the Quality Parts Coalition (QPC) has released a new report which it says confirms the significant price gap between OEM and aftermarket collision repair parts. The report revealed that American consumers saved more than $363 million by using aftermarket parts rather than OE parts during the past five years. The report, titled Competition Drives Real Consumer Savings in Collision Repair, examined 100 of the top most commonly sold certified collision repair parts from 2009-2014 using data from the Certified Automotive Parts Association (CAPA). Research showed that the independently-produced certified parts were, on average, 27 percent
less expensive than their car company brand counterparts with a cost difference as large as 68 percent or $502.04. “It’s clear that independent auto parts are driving competition in the auto repair parts market and that consumers are reaping the benefits,” said Ed Salamy, executive director of the QPC. “That’s why it’s important to ensure the industry stays competitive and continues to pass along savings to consumers.” In recent years, the QPC says automakers have increasingly secured design patents on individual collision repair parts to limit the availability of independently-produced counterparts, forcing consumers to pay car compa-
nies more to fix their vehicles. Bipartisan companion legislation which the QPC claims would fix design patent law to safeguard consumers against price gouging has been introduced in the U.S. House of Representative and the Senate. The QPC states that the Promoting Automotive Repair, Trade, and Sales (PARTS) Act of 2015 (H.R. 1057 and S. 560) would preserve consumer choice for auto collision repair parts and protect more than 60 years of competition that has existed in the collision repair parts market. The QPC claims that if the competition for parts were eliminated, insured loss costs could increase by as much as $1.5 billion.
“Consumers save big when there’s a competitive marketplace,” said Jack Gillis, director of public affairs for the Consumer Federation of America. “Major car companies are trying to disrupt the status quo by limiting competition in order to grow their profits at the expense of the average American.” QPC hosted an informational briefing on Dec. 1st for House and Senate staff members on the importance of passing the PARTS Act. To learn more about the QPC and the PARTS Act, download the report at http://www.keepautopartsaffordable.org /sites/all/themes/framework/pdf_resouce/ price_analysis_research_report_11.19.155.pdf.
Two suburban Detroit dealerships have been quietly re-entering the Fiat Chrysler Automobiles US network after more than six years away, now that the U.S. Supreme Court has ended a long legal battle over their reinstatement. Colleen McDonald, president of Livonia Chrysler Jeep, said the dealership reopened about 2½ weeks ago and will host a formal grand opening in January. The location had operated for several years as Livonia Mitsubishi while the battle over her Chrysler dealer fran-
chise license lingered in court. McDonald said the company has finished a remodeling and returned to flying the Chrysler flag earlier this month. Also soon to reopen is Fox Hills Chrysler Jeep in Plymouth Township, which had fought alongside Livonia in litigation over the Chrysler dealer license terminations since 2010. The Fox Hills dealership owned James Schebil has been undergoing its own remodeling and is expected to reopen in January, Township Supervisor Shan-
non Price said. “Every day it gets better. Our neighbors in the area and the city of Livonia have been incredibly welcoming, and have been telling us, ‘We’re so glad you’re back,’” McDonald said of reopening the Livonia dealership. “It’s good to be working with (FCA) again as well. Before now we were only dealing with each other through attorneys. Now the attorneys are gone and we’re interacting again with the business office
again and the company’s been wonderful and very supportive. They just want to sell cars—and so do we.” Some 32 dealers, including five in Michigan, won reinstatement via a federal arbitration process in 2010, but various lawsuits dragged on for years over what those victories actually meant. Chrysler originally terminated 789 dealers as part of its 2009 bankruptcy reorganization, reducing its dealer count at the time to about 2,400.
2 Fiat Chrysler Dealerships, Closed After Years of Bankruptcy Litigation, Are Reopening
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www.autobodynews.com | JANUARY 2016 AUTOBODY NEWS 45
Cadillac to Launch Aluminum Repair Network
Cadillac announced on December 2 the creation of the Cadillac Aluminum Repair Network in conjunction with the upcoming production of the Cadillac CT6 at the end of 2015. According to Cadillac, the Cadillac CT6 uses an advanced mixed material approach for its lightweight body structure. The aluminum intensive structure also includes 11 different materials to achieve strength, performance and efficiency thresholds virtually unmatched among the world’s elite luxury performance sedans. The new architecture, materials and joining methods used to create the CT6 will require the collision repair industry to prepare accordingly. The Cadillac Aluminum Repair Network will ensure that authorized collision repair facilities have the required tools, equipment, processing procedures, and training to properly repair the Cadillac CT6 using the new mixed material, aluminum intensive construction. To ensure the authorized collision repair facilities in the network are qualified to repair the Cadillac CT6, all requirements (training, tools, facilities, etc.) will be audited through an extensive verification process. To participate in the Cadillac Alu-
minum Repair Network, authorized dealers and independent body shops will undergo annual audits as part of their continuation in the program. These audits will provide Cadillac with a process to verify the shop’s compliance with the network requirements. It also establishes a level of consistency between all participating shops that allows Cadillac to promote the Cadillac Aluminum Repair Network to Cadillac CT6 owners. Training will be primarily web based and orchestrated through a combined effort between GM and I-CAR. In addition, GM will support the collision repair industry by offering the CT6 collision repair information at no charge. Information on the Cadillac Aluminum Repair Network will be available on www.genuinegmparts.com in the first quarter of 2016 technical documents, service bulletins, paint information, warranty information, VIN, and other information will be available. Axalta Coating Systems, LLC has been selected to provide implementation and ongoing support for the program. Axalta provides extensive industry expertise in the creation and support of collision repair networks.
First Autonomous Buses Will Hit the Road In Spring 2016, Swiss Company Says it Can Control Fleets
As driverless cars continue to undergo testing on the streets, one company is applying the technology to public transportation. Swiss startup BestMile has developed a system to control fleets of autonomous vehicles, which the company compares to the functionality of an airport control tower. The company acquired its first commercial contract by teaming up with PostBus (known as CarPostal to the Swiss French), a major bus operator in Switzerland and France. BestMile was founded in January 2014, and since then the new company and the research university have been working together to develop algorithms for autonomous public transportation. These buses will face traffic, pedestrians, and other obstacles and must deal with them in a safe and efficient manner. The autonomous system must be reliable, flexible, and able to function alongside existing transport systems. BestMile’s software will allow the operators of these vehicles to be able to monitor, control, and optimize their fleet remotely in real time as needed. BestMile cofounder Anne Koymans cites a leading developer of autonomous vehicles as an influence that
led to the company’s first commercial project. “There is a lot of interest for driverless mobility solutions, partly thanks to Google,” Koymans said in an interview with The Local. “Cities are interested but also public transport operators and the interest is increasing.” Koymans points out that while Google aims to put more driverless cars on the road, BestMile is focusing purely on public transportation. There will also be development in what she calls “the last mile,” meaning the leg of a user’s journey between their stop and destination. BestMile has been seeking funding to improve its developing technology. Previous successful projects include CityMobil2, a pilot platform for automated road transport systems. Autonomous buses carrying up to nine passengers will be introduced to the city of Sion, Valais in spring 2016, and will undergo two years of testing. The electricity-powered buses themselves will be manufactured by French manufacturer Nayva.
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