January 2017 Southwestern Edition by Autobody News

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Gauging What Lies Ahead for the Collision Industry in 2017 Based on the Events of 2016 by John Yoswick

As another new year begins, the collision industry can expect more big changes in terms of vehicle technology, repair requirements, judicial and regulatory actions, state and federal legislation, and insurer involvement in the claims process. Here’s a look at some of what’s in store for the coming 12 months. Changes in insurance industry regulation. Look for insurers to see a Trump presidency and Republicancontrolled Congress as an opportunity to scale back federal regulation of the insurance industry.

The National Association of Professional Insurance Agents (PIA), for example, has already urged that the Federal Insurance Office (FIO), established following the Great Reces-

Happy a NEW Year

they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.” But Matthew Josefowicz, president of a Boston-based insurance technology consulting firm, cautioned that such reductions in federal oversight of insurers could embolden some state attorneys general and insurance commissioners, resulting in insurers “dealing with aggressive state regulators.” That could be good news for colSee Ahead to 2017, Page 20

Texas and Louisiana Now States with Worst Drivers the following categories:

● Fatalities Rate per 100 Million Vehicle Miles Traveled

● Failure to Obey (Percentage of Fatal Crashes that involved Traffic Signals, Not Wearing Seat Belts, and Driving with an Invalid Driver’s License)

● Drunk Driving (Percentage of Fatal Crashes that Involved Alcohol)

● Speeding (Percentage of Driving Fatalities that were Speed-Related) ● Careless Driving (Pedestrian & BiSee Worst Drivers, Page 9

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Are Texas and Louisiana drivers among the worst in the country? According to a study by CarInsuranceComparison.com, a site that allows people to compare rates on insurance companies, looked at data from the National Highway Transportation Safety Administration (NHTSA). It analyzed crashes in five categories: fatalities per 100 million miles traveled, failure to obey traffic signals or wear seat belts, drunken driving, speeding and careless driving. The study was cited in USAToday. The rankings for this study are based on statistics made available to the public by the National Highway Traffic Safety Administration. Each state is ranked according to

sion, be scrapped. “With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that

VOL. 35 ISSUE 1 JANUARY 2017

AZ Auto Glass Company Agrees to 6-Year Ban on Telemarketing Calls, Violation Could Cost $50K AZ Attorney General Mark Brnovich announced an auto glass company is banned from making telemarketing calls for 6 years as part of a settlement in an Arizona Consumer Fraud Lawsuit. Under the settlement, Larmore Auto Glass, LLC admitted to placing illegal telemarketing calls to Arizonans listed on the National Do Not Call Registry. Larmore Auto Glass agreed to pay the State $50,000 in civil penalties. “This case is about protecting Arizonans from harassing and illegal telemarketing calls,”said Attorney General Mark Brnovich. “Arizonans on the Do Not Call list are off-limits to telemarketers and anyone caught violating telemarketing laws will be held accountable.” In June 2016, the Arizona Attorney General’s Office filed a Consumer Fraud Lawsuit against Larmore Auto Glass. The lawsuit alleges Arizona consumers received unwanted and unlawful sales calls that marketed wind-

shield replacement services from 2013 through 2015. Larmore Auto Glass, LLC, also operates under the name “Freedom Auto Glass.” According to the settlement, if Larmore Auto Glass violates the agreement, they will become liable for another $50,000 in addition to the penalties provided in the Arizona Consumer Fraud Act. Assistant Attorney General Mit-chell Allee handled this case. If you believe you have been the victim of consumer fraud, you can file a consumer complaint by contacting the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6504, or outside the Phoenix and Tucson metro areas at 1(800) 352-8431. Bilingual consumer protection staff members are available to assist. Consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/ consumer.

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

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COLUMNISTS Attanasio - Former Metal Technician Lands Dream Job with his Animal Art. . . . . . . 32 Attanasio - My Marketing Rap for 2017 . . 40 Attanasio - New California Laws That Can Impact Your Business . . . . . . . . . . . . . . 30 Attanasio - Valspar’s SEMA Highlights Include Celebrities and Amazing Vehicles. . . . . . . . . . . . . . . . . . . . . . . . 26 Attanasio - Vintage Color Studio Features Award-Winning Roadster at 2016 SEMA at PPG’s Booth . . . . . . . . . . . . . 42 Phillips - How to Compete with Consolidation and Outmaneuver Your Competitors in 2017 . . . . . . . . . . . . . . . . . . . . . . . . 38 Phillips - Industry Veteran in Pennsylvania Shares Secret to Running a Successful Body Shop. . . . . . . . . . . . . . . . . . . . . . 22 Phillips - The Power of Peer Groups: Surviving in a Consolidated Market . . . . 14 Yoswick - Retro News: CIC Ends Parts Test-Fit Demonstrations, Feds Launch New Insurance Oversight Agency. . . . . 34 NATIONAL A 2015 Profile of the Evolving North American Collision Repair Marketplace . . . . . . . . 36

Auto Parts Maker Transtar Files for Chapter 11 Bankruptcy . . . . . . . . . . . . 51 Autologic Enters into Licensing Agreement with Volvo for Diagnostic Data . . . . . . . 53 Axalta Coating Systems Introduces Voltatex® 7145A and Alesta® BK08 20 Gloss . . . 46 BASF Completes Acquisition of Chemetall . 50 CAPA Introduces CAPA 701 Mirror Standard . . . . . . . . . . . . . . . . . . . . . . . 55 CARSTAR Launches Redesigned Website at CARSTAR.com. . . . . . . . . . . . . . . . . 53 Celphy Flies His Drone to Michigan . . . . . . 4 Collision Repair Education Foundation and AkzoNobel Announce Winners of Sustainability Challenge Grant . . . . . 47 Collision Repair Education Foundation Requests Year-End Product Donations, Safety Kit Sponsorship. . . . . . . . . . . . . 46 Consumer Watchdog Calls on San Francisco Police to Impound Uber’s Robot Cars. . . 4 CRASH Network Launches “Insurer Report Card” . . . . . . . . . . . . . . . . . . . . 50 Crashmax Takes Home 2nd Consecutive Sales Leader Award . . . . . . . . . . . . . . . 55 Doug Schlueter of I-CAR Named to National Auto Body Council Board of Directors . . 8 FinishMaster Acquires Autobody Supply Co.. . . . . . . . . . . . . . . . . . . . . . 52 Ford Patents Self-Driving Car with a Drone . 4 GAAS, University of the Aftermarket Foundation Unite . . . . . . . . . . . . . . . . . 55 Huron Capital’s XLerate Group Completes Fourth Add-on . . . . . . . . . . . . . . . . . . . . 6 Hyundai Selects OEC for Collision Parts Ordering and Fulfillment . . . . . . . . . . . . 52 Independent Study Shows Opportunity for Heavy Duty Parts Data “Superset”. . . . . 47 Michigan OKs Operation of Autonomous Vehicles on Public Roads, Previously Only Testing Allowed . . . . . . . . . . . . . . 21 National Auto Body Council Awards Recognize Individuals Who Exemplify Professionalism and Integrity of Collision Industry. . . . . . . . . . . . . . . . . 52 New Michigan Law Raises Stakes for Others . 4 PartsTrader® and Fix Auto USA Agree on Parts Sourcing and Ordering . . . . . . 48 Phillips - Hawaii Collision Center Works Hard for Customers While Living in Paradise . 44 U.S. House Subcommittees Hold Hearing on Connected Devices . . . . . . . . . . . . . 48 VA Shop Owner Inspired to Help Mother After Paddle Impales SUV . . . . . . . . . . 12 WIN Announces 2017 Educational Conference Location . . . . . . . . . . . . . . 53 Yoswick - Gauging What Lies Ahead for the Collision Industry In 2017 Based on the Events Of 2016 . . . . . . . . . . . . . . 1 Young Auto Care Network Group (YANG) Membership Surpasses 1,000 . . . . . . . 50

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor and Copywriter: Deana Cacus Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Content/Social Media Specialist: Cass Heckel Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas

AMH Canada, Ltd. . . . . . . . . . . . . . . 9 Audi South Austin . . . . . . . . . . . . . . 25 Audi Wholesale Parts Dealers . . . . 33 AutoNation Chevrolet . . . . . . . . . . . 32 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . 22 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix. . . . . . . . . . 8 Axalta Coating Systems . . . . . . . . . . 5 Bill Luke Chrysler-Dodge-Jeep-Ram. 12 BMW Wholesale Parts Dealers . . . . 47 Bob Howard PDC . . . . . . . . . . . . . . 19 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 27 ChemSpec USA, LLC . . . . . . . . . . . . 6 Chevyland . . . . . . . . . . . . . . . . . . . . 44 Classic Auto Group. . . . . . . . . . . . . 35 Classic BMW . . . . . . . . . . . . . . . . . . 39 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Dallas Dodge . . . . . . . . . . . . . . . . . 56 Diamond Standard Parts . . . . . . . . 23 DJS Fabrications. . . . . . . . . . . . . . . 10 Don Carlton Auto Group . . . . . . . . . 40 Eco Repair Systems of North America, LLC . . . . . . . . . . . 7 ECS Automotive Concepts . . . . . . . 26 Equalizer Industries, Inc . . . . . . . . . 30 Finnegan Chrysler-Jeep-Dodge . . . . 2 Flatirons Subaru . . . . . . . . . . . . . . . 41 Ford Wholesale Parts Dealers . . . . 49 GM Wholesale Parts Dealers . . . . . 43

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah 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. Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com E-mail: news@autobodynews.com

Southwest

REGIONAL Antonelli - UTI Houston Student & Former Marine Discusses Awards, Perfect GPA and Overcoming Adversity . . . . . . . . . . 16 Auto Body Shop Owner Holds True to His Roots . . . . . . . . . . . . . . . . . . . . . . 25 Auto Body Students Repair Salvation Army Kettle Stands . . . . . . . . . . . . . . . . 8 Axalta Coating Systems Announces Houston Plant Advancement Project . . . . . . . . . . 12 AZ Auto Glass Company Agrees to 6-Year Ban on Telemarketing Calls, Violation Could Cost $50K . . . . . . . . . . . . . . . . . 1 CARSTAR Working with Three Children’s Charities Around Denver and Surrounding Areas. . . . . . . . . . . . . . . . . 6 Driven Brands Acquires Texas-Based Express Lube . . . . . . . . . . . . . . . . . . . 12 PPG MVP Spring Conference to Be Held in Scottsdale, AZ . . . . . . . . . . . . . . . . . . 6 Sherwin-Williams Automotive Finishes 2017 First Quarter Training Schedule Announced . . . . . . . . . . . . . . . . . . . . . 51 Sherwin-Williams Automotive Finishes Celebrates 150 Years With New Ford F-150 Giveaway . . . . . . . . . . . . . . . 6 Smith Ford of Conway, AR, Celebrates 100 Years . . . . . . . . . . . . . . . . . . . . . . 18 Texas and Louisiana Now States with Worst Drivers. . . . . . . . . . . . . . . . . . . . . 1 Texas State Technical College Student Finds Road to Success . . . . . . . . . . . . 10

Indexof Advertisers

Contents

Herkules Equipment Corporation. . 18 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. . 50 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 45 Killer Tools & Equipment. . . . . . . . . 13 Lusid Technologies . . . . . . . . . . . . . 11 Mazda Wholesale Parts Dealers . . . 52 Mike Calvert Toyota. . . . . . . . . . . . . 10 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46 MOPAR Wholesale Parts Dealers . . 37 Nissan Wholesale Parts Dealers. . . 55 North Freeway Hyundai . . . . . . . . . 42 Polyvance . . . . . . . . . . . . . . . . . . . . 24 ProLine Tool & Supply . . . . . . . . . . 15 Ray Huffines Chevrolet . . . . . . . . . . 31 SATA Dan-Am Company . . . . . . . . 17 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 20, 21 South Pointe Chrysler-Jeep-Dodge. 14 Subaru of Little Rock . . . . . . . . . . . 16 Subaru Wholesale Parts Dealers . . 51 Toyota of Laredo . . . . . . . . . . . . . . . 36 Toyota Wholesale Parts Dealers . . . 48 U-POL US . . . . . . . . . . . . . . . . . . . . 34 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 53 Young Chevrolet . . . . . . . . . . . . . . . 38

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 3

Ford Patents Self-Driving Car with a Drone

by Greg Gardner and Chris Woodyard, Detroit Free Press and USA TODAY

Ford has registered 1,442 patents this year, most among the largest automakers, including one for a self-driving car that has its own drone. Based on data compiled by the U.S. Patent and Trademark Office, Toyota was granted 1,368 so far this year, followed by General Motors at 1,131 and Honda at 1,011. Ford had 25% more patents than in the previous year. Raj Nair, executive vice president for product development and chief technology officer, attributed the increase to the push to develop more semi- and fully autonomous technologies as Ford and its competitors position themselves for shared-vehicle mobility. “We are living the innovation mindset in all parts of our business across the globe,” Nair said in a news release. “Our employees are delivering exciting new technologies for our customers at record levels. The Dearborn automaker was granted 1,700 more patents in other countries, bringing the total to more than 3,100 patents granted worldwide this year. Among some of the brighter ideas: ● Self-driving cars with drones. Tony Lockwood and Joe Stanek for an invention that equips autonomous vehicles with drones.

The system deploys a drone from an autonomous vehicle to map the surrounding area beyond what vehicle sensors can see. Passengers can control the drone using the car’s infotainment or navigation system. Mercedes-Benz showed off a similar idea in September, using the drone for parcel delivery from a van. ● Electric wheelchair for a car. Ford’s eChair could make life easier for wheelchair users. Developed by engineers at Ford’s Lommel proving grounds in Belgium, Gunther Cuypers, Robin Celis, and David Longin, the lightweight electric-powered eChair can load itself into a car. ● Water fountain in car. There’s also the idea called On-the-Go H2O, which puts a water fountain next to the cupholders in the car. It was developed by Ford engineers Doug Martin and John Rollinger, using water from condensation that is then filtered and pumped into a faucet located inside the car to provide drinking water. Earlier this year, Ford also introduced the Carr-E, a multipurpose, electric personal transportation device developed by Germany-based engineer Killian Vas. The Carr-E can carry humans, packages and heavy objects. Through this week about 5,500 Ford employees submitted invention disclosures, of which more than 2,200 were from first-time inventors.

New Michigan Law Raises Stakes for Others

Michigan’s new autonomous vehicle law (see story this issue) has received endorsement from automakers who are gives Michigan the broadest set of regulations in the country. GM, which voiced strong support for the legislation, would not confirm if it now plans to test autonomous vehicles in Michigan. But Pam Fletcher, GM’s executive chief engineer of global electric and autonomous vehicles, said the law “positions Michigan very, very well.” Ford has said it plans to deploy a fully autonomous vehicle without a steering wheel or pedals in 2021 for ride-sharing or ride-hailing purposes. Ford intends to sell 100,000 or more a year of the vehicles. “Without this, we wouldn’t be able to enable it here in Michigan,” said Wayne Bahr, global director of Ford Motor Co.’s automotive safety office. “Our headquarters is here, research is here, autonomous vehicle team is here and having the ability to do our testing in a four season environment and to do it right next to where our engineers are is absolutely phenomenal.” GM also is working with partner Lyft Inc. to develop a fleet of self-driving Chevrolet Bolt EVs that it would use for ride-hailing. While it is testing

autonomous Bolts in California and Arizona now, it hopes to test with Lyft’s service within a couple of years on public roadways. Uber is already operating driverless vehicles (see cover story this issue.) “We believe an orderly and safe introduction of autonomous vehicles is a key to success for public acceptance and really maximizing the benefit of these vehicles,” Fletcher said, adding part of the legislation for deploying selfdriving ride-hailing services without a driver is “the way we think this kind of technology needs to roll out.” Michigan is one of eight states along with Washington, D.C., that have laws allowing testing of autonomous cars, according to the National Conference of State Legislatures. California, Florida and Nevada have laws that allow for the “operation” beyond testing. Arizona and Massachusetts’ governors have signed executive orders related to selfdriving vehicles. The bills were amended to allow tech companies such as Google Inc. to test and ultimately operate self-driving vehicles without drivers on state roadways.

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4 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Celphy Flies His Drone to Michigan

Consumer Watchdog Calls on San Francisco Police to Impound Uber’s Robot Cars

Consumer Watchdog has called on San Francisco police to impound Uber’s robot cars operating without a permit on city streets and asked City Attorney Dennis Herrera to file criminal charges against Uber CEO Travis Kalanick. California Motor Vehicle Code requires a permit for testing autonomous vehicles in the state. Violating the Motor Vehicle Code can be a misdemeanor criminal offense, punishable by up to six months in jail. “Uber is essentially driving without a license and its CEO Kalanick should be treated like anyone else who does that,” said John M. Simpson, Consumer Watchdog’s Privacy Project Director. “Kalanick’s willful violation of the law requires prompt response to protect the public’s safety There have already been reports of Uber’s robot cars running red lights in San Francisco. Prosecutors must hold Uber’s executives responsible for their company’s outrageous actions.” Testing autonomous vehicles in California requires a permit from the Department of Motor Vehicles. Currently 20 companies have permits to test autonomous vehicles in the state, demonstrating that following the rules is no

barrier to innovation, Consumer Watchdog said. Among the DMV requirements are that the test driver behind a steering wheel be licensed and trained to operate the vehicle and a company must show insurance coverage of $5 million. Reports of any crashes must be filed, as well as an annual “disengagement” report spelling out circumstances when the selfdriving technology failed and the human driver took control. For instance, Google’s driverless car unit, now renamed Waymo, said its self-driving technology failed 341 times in 425,000 miles—272 times because the software couldn’t cope, turning over control to the test driver and 69 times when the driver decided to intervene for safety reasons. The next disengagement reports are due to be filed with the DMV Jan. 1, 2017. “Uber is threating public safety and trying to avoid providing important information about its activities,” said Simpson. “Using public roads as your laboratory carries responsibilities. Uber is ignoring them and shamefully flouting important safety requirements. It must be stopped immediately.

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Sherwin-Williams Automotive Finishes Celebrates 150 Years With New Ford F-150 Giveaway As part of its celebration of 150 years of service, Sherwin-Williams Automotive Finishes, in conjunction with 3M Repair Solutions, announced and presented the winner of its new Ford F-150 pickup truck giveaway, for its grand prize in the company’s “150th Celebration” sweepstakes.

Harold and Shelly Swan, owners of Affordable Auto Body and Paint in Loveland, CO, were announced the winners of the Ford F-150 sweepstakes. The truck was presented at a special ceremony at Sherwin-Williams’ Fort Collins Automotive Finishes Store. It’s not an ordinary pickup truck, however. The supercharged Roush Performance F-150 XLT includes a 5.0 liter V8-powered engine in Ford’s new aluminum-bodied F-150, enhanced with a host of body components and

Roush graphics. The truck also features a custom paint job marking Sherwin-Williams’ 150th anniversary. “We are pleased to award the Swans their new Ford F-150,” said Steve Spirko, Director of Marketing, Associated Products for SherwinWilliams Automotive Finishes. “We could think of no better way to continue the celebration of SherwinWilliams’ 150th anniversary of service than to give away such an amazing truck.” The high performance engine and customization was signed by racing legend Jack Roush, also head of ROUSH Industries, Inc., a Tier One supplier of fully integrated engineering and development support services to the worldwide automotive industry. While there was no purchase necessary to enter the year-long contest, there were several ways for collision repair professionals to enter by purchasing select 3M repair products from Sherwin-Williams Automotive Finishes’ network of almost 200 stores. Swan was selected as the winner by random drawing. For more information, visit www .sherwin-automotive.com.

CARSTAR Working with Three Children’s Charities Around Denver and Surrounding Areas

CARSTAR’s Colorado stores are teaming up with three charities to help children in need within their communities in time for the holidays. CARSTAR, its employees and their families are making a difference in the lives of underprivileged children by partnering with KidsGiving 365, Urban Peak Children’s Shelter and Arapahoe County Human Services. The participating stores will be making a cash donation to KidsGiving 365 that will go toward purchasing holiday gifts for Denver’s inner city underprivileged kids. The program also gives kids a chance to play Santa’s Elves and distribute the gifts. According to the company, KidsGiving 365 works closely with the Denver Housing Authority so that the hundreds of families and children giving through the events are helping thousands of those in need in the community. CARSTAR stores in Colorado will also be working with Urban Peak and the Urban Peak Children’s Shelter, collecting winter coats for boys and girls ages 14 to 24 who are either homeless or at-risk. The stores

will be accepting gently used or new coats with the help of all of their employees and families. They will also be making a cash donation to Urban Peak. Additionally, CARSTAR’s Colorado stores are “Partnering for the Holidays” with Arapahoe County Human Services to provide new unwrapped toys and gifts for its holiday store. Families who would otherwise have nothing to give to their loved ones will have an opportunity to come choose what they want and need with pride and dignity. Partnering for the Holidays is an innovative program to help empower families to create their own special memories with their families. For more information, visit www .carstar.com.

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6 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Huron Capital’s XLerate Group Completes Fourth Add-on

Huron Capital Partners LLC (“Huron Capital”) announced on December 2 that its portfolio company, XLerate Group (“XLerate”) has acquired Lubbock, Texas-based Lone Star Auto Auction (“LSAA”). The deal marks the fourth add-on acquisition for XLerate in partnership with Huron Capital, and the third in 2016. LSAA currently operates a seven-lane auction building in Lubbock, serving automotive dealers within a 350-mile radius (primarily in Texas, New Mexico and Oklahoma, as well as Arizona). The LSAA location will complement XLerate’s existing sites in Dallas, Austin (2), and El Paso. Including LSAA, XLerate has 17 auto auction sites in California, Florida, Michigan, South Carolina, Texas and Wisconsin. “We think LSAA is an excellent addition to the XLerate lineup,” said Cam Hitchcock, CEO of XLerate. “With five sites in Texas, XLerate is well-positioned to continue serving dealers in the Southwest, and we remain active in our search for additional geographically strategic, owner-operated auctions that fit our existing platform.” For more information, visit www.huron capital.com.

PPG MVP Spring Conference to Be Held in Scottsdale, AZ PPG’s annual spring MVP Business Solutions Conference will be held April 9-11, 2017 at the JW Marriott Camelback in Scottsdale, Arizona. According to the company, PPG’s MVP Conferences are open to owners and managers of collision centers using PPG Refinish products and are the ideal venue for PPG shop owners and managers to refocus, gain valuable insight from industry experts, and network with other collision professionals. The MVP Conference commences on April 9 with leisure actives that include the Randy Dewing Memorial Golf Tournament and relaxing at the JW Marriott spa or pool followed by a welcome reception that continues through April 11. Conference highlights include prominent keynote speakers and industry relevant breakout sessions. Conference registration will be available in February. For more information, visit www.ppg.com.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 7

Auto Body Students Repair Salvation Army Kettle Stands Weeks before any cash is dropped into the familiar red Salvation Army kettles this holiday season, a gift of another kind has been presented to the local branch of the international charity.

matching red kettles. Each stand is expected to be placed strategically throughout the area this winter at designated collection sites. Kettle donations are distributed through a network of 7,500 Salvation Army centers nationwide in support of the charity’s mission that includes combating poverty, hunger and homelessness and providing services for veterans. Many of the stands have been in circulation for several years and have not aged well, said CV Tech’s Auto Body instructor Loyd Conner. “The paint was chipping Pictured (back row, from left) is Seth Weyhrich, of badly and peeling all over,” Chickasha, and Auto Body instructor Loyd Conner. Conner said. “Many of them Kneeling (from left) is Kaylyn Dole, of Rush Springs, had been painted before Tramell Harper, of Chickasha, Zac Freeman, of with spray cans, so we reNinnekah, Ty Pool, of Ninnekah, James Roberts, moved all of that. I have of Tuttle, Aron Hopkins, of Chickasha, and Nathan seen these kettle stands for Adair, of Ninnekah years. They’re just getting Students enrolled in the Auto worn out and are in bad shape.” Body Technology program at CanaAuto Body students provided dian Valley Technology Center in free repairs of the kettle stands using Chickasha, OK repaired 14 Salvation knowledge they acquired in class. Army kettle stands as a community They straightened dents on the metal service project. sign panels, which rest on the stands, The portable stands hold the and then primed and painted both the

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panels and the stands. Students also re-welded metal brackets that hold the panel signs. Conner said Brock Marshall, owner and manager of Napa Auto Parts of Chickasha, supplied the paint. Students said they appreciated the fact the project was a departure from the norm in class. “The Salvation Army is a great organization,” said Seth Weyhrich, a Chickasha adult student. “They help out tons of people every year, not just in our community, but everywhere. Having a small part in helping a greater good is gratifying to me.” Classmate and Rush Springs High School junior Kaylyn Dole said she enjoyed getting a break from working on cars as well. “It’s nice to make the stands look nicer,” Dole said. “These catch your attention. It’s nice to fix something up to help so that people can put money into them and in turn help others.”

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Doug Schlueter of I-CAR Named to National Auto Body Council Board of Directors Doug Schlueter, National MSO Manager at I-CAR®, is the newest elected member of the National Auto Body Council (NABC) Board of Directors. Schlueter has been at I-CAR for seven years. He started as the

South Central Regional Manager then moved into the National MSO Manager role six years ago. Schlueter has more than 25 years of experience in the industry and has held sales and management leadership positions with Enterprise, Hertz, Insurance Auto Auctions and Copart. Nick Notte, I-CAR Director of Business Development, is a PastChairman of NABC and serves on the executive committee. Brandon Eckenrode, Director of Development of the Collision Repair Education Foundation, also serves on the NABC Board of Directors.

Continued from Cover

Worst Drivers

cyclist Fatalities per 100,000 Population) Rounding out the top 10 for worst-driving honors: South Carolina, North Dakota, Delaware, New Mexico, Nevada, Alabama, Arizona and Montana. Texas jumped from fourth place to a tie with its neighbor, Louisiana, for first place this year. It’s the only state where drivers place among the top 15 in each of the five categories. Texas drivers rank third in drunken driving and ninth for fatalities per miles driven and speeding, the study found. Texas transportation officials noted Nov. 4 that at least one person had died on a state road every day for 16 years. To end the streak of 55,578 deaths, officials urged motorists to buckle seat belts, pay attention to the road, and never drink and drive. “These deadly crashes are a sobering reminder that we must do everything in our power to stay focused and safe while driving,” James Bass, executive director of the state Transportation

Department, said in a statement. “Let’s end the streak.” Louisiana drivers rank the worst at obeying signals and fifth worst for fatalities per miles driven and careless driving, according to the study. “Texas and Louisiana have been notorious for bad driving for four or five years of this study,” said Josh Barnes, a spokesman for CarInsuranceComparison.com. “It shows you the human-error factor is really there.” The study comes as traffic-related fatalities are rising after decades of declines—35,092 people died in 2015 in traffic accidents, a 7.2% increase from a year earlier. Traffic deaths haven’t climbed that steeply since 1966, when fatalities rose 8.1% over the year before. “We want to first and foremost tell people that you need to be careful when you’re on the road,” said Josh Barnes, a CarInsuranceComparison .com spokesman. “Things can happen in the blink of an eye.” NHTSA is sharing its Fatality Analysis Reporting System with state and local officials, technologists, data scientists and policy experts to search for ways to reduce crashes.

Electric Car Startup Lucid Plans $700M Plant in AZ Electric car startup Lucid Motors plans to invest $700 million to build a new production facility in Casa Grande, Arizona, the company said. The Silicon Valley automaker —which recently changed its name from Atieva—will begin construction in 2017. The company plans to begin work on its unnamed production car by late 2018. “We chose Arizona because you showed genuine interest in our company from the outset,” Brian Barron, Lucid’s director of global manufacturing said at a press conference that included Arizona Governor Doug Ducey. “Readiness was a key focus during the site selection process and this site is truly ready to go, with the required infrastructure and site attributes.” Over the past year, Lucid looked at 60 potential sites across 13 states in the U.S., but ultimately chose the 500-

Free

acre site in Casa Grande because of its proximity to rail lines, interstates, ports, training facilities and utilities, Barron said. It’s also a short flight from Lucid’s Menlo Park headquarters in California. The Casa Grande facility will source many of its parts from nearby Sonora state in Mexico, the same state where Ford currently builds its Fusion and Lincoln MKZ vehicles. By 2022, Lucid will have invested a total of $700 million in the facility, where it expects to build its unnamed luxury electric sedan — to be unveiled in the coming weeks — as well as additional future models. The site will ultimately employ as many as 2,000 people. Lucid plans to work with nearby Central Arizona College to train and staff employees, Barron said. There was no word on whether Lucid received state or local tax incentives as part of the agreement.

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Texas State Technical College Student Finds Road to Success by Amanda Sotelo, TSTC

Luis Coronado’s father gifted his son a brand new car to celebrate his high school graduation, but with a new baby on the way and the need for a stable career, Coronado had no choice but to sell it for tuition money. For Coronado, selling the car went a long way because he graduated from Texas State Technical College with his certificate in Auto Collision Technology and a job offer in hand. He was among the 253 students who received certificates or associate degrees during TSTC’s Fall 2016 commencement ceremonies held at Marine Military Academy. “This car was special to me,” said Coronado. “But sometimes, you gotta do what you gotta do. And I needed money if I wanted to build a meaningful career to provide for my family.” Prior to attending TSTC, the Mercedes native worked at the Dish Call Center in Harlingen, along with his fiancé. “I didn’t love what I was doing. I wasn’t happy there,” said Coronado. “But it was paying the bills, especially with a baby on the way. So when I ended up leaving for TSTC, it was a huge risk.”

It was Coronado’s fiancé that was supporting both of them while he studied, but when life threw them a curveball and she was laid off from her position, they had no choice but to move back in with his parents. “The situation wasn’t ideal,” said Coronado. “But I’m so glad she never

“Yes, I learned the foundation of auto collision and the hands-on experience was invaluable, but the help and support the instructors provide means so much more,” said Coronado. “Sometimes students like me need that push, and it makes a world of difference.” Coronado took the support and ran with it, applying for every body shop position he could find in the Rio Grande Valley. “Whether it was luck or my perseverance, I got a job at Tipton Ford,” said Coronado. “All I know is I’m blessed to be able to help support my family again, but this time doing what I love.” The new Body Man Helper said his investment in TSTC was an investment in his future. “This was a painful process Texas State Technical College Grad, Luis Coronado and I can’t believe graduation stopped supporting my dream, and is here. I’m trying to soak it all in,” [that] my parents had our backs. I said Coronado. “I’ve met all the right couldn’t have done any of this without people at the right times, and now my these people in my life.” family has a better future ahead.” The 23-year-old said having supCoronado dreams of living the port from his instructors was also a American dream: buying a home, big deal. He said they advised and en- maybe someday owning his own body couraged him every step of the way, shop business, and making his family especially when he felt like quitting. proud.

His instructor, Jose Vasquez, has no doubt in his mind that Coronado will find success. “He’s the student that would come in early and leave late,” said Vasquez. “We’re proud of everything he’s had to overcome to find the success he has already. I’m certain with his hard work, dedication and commitment, he will go far.” Coronado said everything he did was definitely a risk, but a risk worth taking. He is beginning to see the benefits of the sacrifices that he and his fiancé had to make during his time in school. “Everything is coming together, and I couldn’t ask for anything more,” he said. For more information on Auto Collision Technology, call (956) 3644659. Registration for Spring 2017 is in progress. To register or apply, visit www .tstc.edu.

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VA Shop Owner Inspired to Help Mother After Paddle Impales SUV The paddle’s impact broke all the brackets across the bumper on Judy’s Judy Hinchey says she will never car and on the bottom of the lights. forget the day a kayak padThe single mom knew she dle flew off of a truck on incouldn’t afford the more than terstate 64, piercing the front $1,000 repair bill on her of her SUV. own. The quotes that she got “I screamed. It scared me to replace the fixture ran bebecause it looked like it was tween $1,200 and $1,800. coming at my face,” Hinchey CBS 6 shared Hickey’s said. story a couple of weeks ago; David Lindsay The driver of the truck little did she know it would never stopped, so Hinchey didn’t file a tug on the heartstrings of just the right police report. people. That’s also why her insurance “It was a blessing,” Hinchey said would not cover the repairs. of Lindsay’s Auto Body Shop, which reached out to Problem Solvers to help. “We have some single moms in our family and they kind of have it tough sometimes. We saw this on the news and unfortunately, it was an accident... Not like she did anything wrong,” said David Lindsay. The single Chesterfield mom says the company went above and beyond what she expected. She said they fixed all of it and not just one piece. Judy Hinchey’s SUV is now repaired thanks to “The Lord blesses us, and we Lindsay’s Auto Body Shop by Shelby Brown, WTVR

Axalta Coating Systems Announces Houston Plant Advancement Project

Axalta Coating Systems has announced a modernization project to advance sustainability at its powder manufacturing center in Houston, Texas. According to the company, anticipated to finish by the end of 2018, the project aligns with Axalta’s commitment to sustainability and environmentally responsible manufacturing practices. Axalta’s plan aims to streamline the powder coating manufacturing process and will include the installation of latest generation processing equipment including dosing systems designed to improve quality and reduce waste, water consumption and cleaning time. Additional implementation of packaging systems will lead

to productivity improvements. Production throughout the facility will continue at full capacity during the installation of the new equipment. “We are excited to initiate these sustainable growth initiatives for our powder coating business,” said Keith Ort, Axalta Director of Operational Excellence. “These changes will increase opportunities to further enhance the production of our powders to the benefit of our customers, our business and our impact on the environment.” To learn more about Axalta Coating Systems powder coatings, visit www.axalta.us/powder. For more on Axalta’s sustainability initiatives and to read the company’s 2014-2015 sustainability report, visit www.axaltacs.com/axalta sustainability.

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turn around and bless someone else. We do this once or twice a year. We look out for people in the community,” Lindsay explained.

Judy Hinchey’s SUV was impaled by a Kayak paddle on Interstate 64

It’s a random act of kindness that made the Chesterfield mom’s heart smile. “It was nice. It kind of restores your faith in humanity,” she said.

We thank WTVR for reprint permission.

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Driven Brands Acquires TexasBased Express Lube

Driven Brands announced the acquisition of award-winning, Texas-based Express Lube. Founded in 1990, Express Lube operates more than 30 quick oil change centers throughout San Antonio and surrounding areas in Texas. The purchase reinforces Driven Brands’ growing Quick Lube division, which most recently acquired Ohiobased Lube Stop in September. “Including the acquisition of Express Lube, we’ve now expanded the Quick Lube Division at Driven Brands by more than 80 percent this year,” said Quick Lube Group President Marc Graham. “This expansion is a direct result of Driven Brands’ world-class technology, synergistic approach to building business, purchasing power and operational support. The addition of this market-leading quick oil change business in San Antonio further solidifies our presence in Texas.” After 25 years, Express Lube has become one of the 50 largest quick lube businesses in the country. The brand has won multiple consumer and readers’ choice awards, and supports Toys for Tots and Million Meals for Kids. With the purchase Driven Brands nearly doubled its number of quick oil change locations in Texas.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 13

Shop Strategies The Power of Peer Groups: Surviving in a Consolidated Market with Stacey Phillips

When it comes to the power of peer groups, Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, is certainly a great resource on the subject. The president of ASA Colorado’s collision division said that joining an association and/or advisory council offers many benefits for shop owners. Dan literally grew up in the auto body business. As a young boy, he recalls sweeping floors in his grandfather’s body shop in Englewood, Colorado. His two uncles also owned body shops and his father was repairing cars out of his home garage. Sometimes, 20 BMWs would be lined up in front of the house waiting to be repaired. After working with another shop owner for a brief time, his father Jerry opened his own shop in February 1983—Jerry Stander’s Auto Body— with the help of his mother Bernie. Except for a few side jobs, Dan has always worked at his parent’s body shop. In 2006, the independent

facility became part of the Fix Auto network and now draws on the support of 437 collision repair franchises. Dan is currently the operations manager at the family-run business, which

Dan Stander, operations manager of Fix Auto Highlands Ranch and president of ASA Colorado’s collision division

includes 15 employees, including Bernie who focuses on the accounting, bookkeeping, training and administrative duties. His father comes in every day working on car restoration, soap box derby, maintenance

14 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

on the building and even some gunsmithing.

Can you tell us about the enQ: couragement and support your parents have provided?

My parents were really involved A: in the industry, ASA, education and training. They encouraged us to

surround ourselves with people who would assist us, give us ideas, train us and help us do a better job faster, versus reinventing the wheel. Many times, people have a hard time asking for help. The philosophy that my parents shared with me is that it’s ok to ask for help. My father and I get along really well and we have a very similar vision about running the company. However, we often look at things from different angles because of our generational differences. It’s old school versus new school—training from the past versus

today’s training. He has instilled in me the right way. My father has completed a lot of industry training, including being I-CAR Platinum. At times, with my industry involvement I have learned about new OEM repair requirements that are ahead of other training we have all taken in the past. As we know, times change, cars are changing and repair procedures are changing dramatically. We cannot always repair cars the same way we did even five years ago.

Can you tell us how you beQ: came involved in ASA and the importance of joining an association?

I joined ASA Colorado in 2004. A: I had created a flyer to explain an industry refinish problem. Zone refinish, base coat reduction and partial panel refinish have been hot industry topics for many years. It is a double win for insurance companies and a

double loss for auto body shops. Paint labor and paint material reductions done with a simple one line adjustment are more prevalent in some markets than others. I wanted an easy way for shops to explain to insurance ad-

Fix Auto Highlands Ranch in Littleton, CO

justers and even their internal shop staff all of the additional labor and materials involved in a repaired panel versus a new panel versus a blend panel. Everyone told me that the flyers wouldn’t make a difference, but I handed them out anyway. Soon, they spread across the country. I was hoping that it would help the industry. The flyer was well received and I decided to join ASA’s collision operations committee in 2005 to help get the word out even more.

When I became more involved in ASA on the national level, I began learning from the great ASA staff, industry partners, vendors and veterans such as Darrel Amberson, Mike Anderson, Dan Bailey, Scott Benavidez, Jerry Burns, April Hernandez, Ron Nagy and Roy Schnepper. They are great people and have now become friends. I have learned how to deal with many different situations after hearing about their experiences. I have also been part of the operations committee and government affairs committee with ASA national. Again, the power of learning from others.

What is your involvement at the local level with ASA ColQ: orado? Currently, I am the president of A: ASA Colorado’s collision division. ASA Colorado is very strong on

the mechanical side. I’m usually one of the only collision guys who shows up at the meetings. There are a lot of collision-related mechanical issues we have to deal with at the shop. Granted,

we don’t do maintenance, but there are a lot of different repair matters to learn from the mechanical folks at ASA Colorado that I apply to our business. The issues ASA Colorado is currently focusing on include promoting hands-on training and finding ways to help the industry to hopefully do a better job on the vehicles and for the consumers.

Some shops think that they can’t stay in business with those darn consolidators coming in. That is totally wrong. There are a ton of opportunities created by consolidation. Part of the opportunity is really knowing what is going on in the market with consolidation.

place?

for us and we struggled with it. I talked to people who said it wasn’t the right decision and others who said it was. I think it depends on a shop’s own situation, what their issues are, the market trends and do they have a lot of consolidation in their area. For us, we realized that we have a lot of consolidation around us. The Denver Metro area was the first to have the Big Four in our market—ABRA, Caliber, Gerber and Service King. I think in order for our shop to survive, we have to play the game a lot differently because of the competition. Times change and they are continuously

As an independent shop, how Q: has your business been able to survive with the consolidation taking

I remember when ABRA moved A: into town (approximately 20 years ago). In Colorado, the market was

very pro-independent and nobody gave them much thought. But as we know now, they were and still are a gamechanger. I don’t think there’s anything spectacular or different about what ABRA and the other consolidators are doing inside their shops. It’s what they are doing outside their shops. These consolidators are coming into the markets and taking a huge market share, buying up shops and building new shops.

What prompted the decision to Q: become part of Fix Auto? During this time, Fix Auto A: reached out to us to become a member. It was a really hard decision

See Power of Peer Groups, Page 18

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UTI Houston Student & Former Marine Discusses Awards, Perfect GPA and Overcoming Adversity Paxson said his will power to “adapt and overcome,” which he Andrew Paxson inherited his love of learned in the Marine Corps, was one cars from his father, who spent most of the biggest factors that helped him of his childhood rebuilding a 1976 with his new experience being in a Pontiac Firebird Trans Am. In high wheelchair. “After the accident, I was at home, taking care of the kids and running the house,” said Paxson. “I was still able to hunt, fish, and swim, but I didn’t have a job, and that’s what was missing.” He said a recruiter from UTI Houston called him to ask if he was still interested in attending. “I explained my situation to him, and he said it wouldn’t While landscaping, Andrew Paxson fell 40 feet out of a be a problem,” said Paxson. tree and severed his spine, leaving him paralyzed from the “They’ve had other people in waist down wheelchairs at the technical school, Paxson started doing his own school, and they’ve been able to do it, mechanical work as a hobby. so I decided to give it a shot.” After graduating from Yellville Paxson then moved to Houston in Summit High School in Yellville, January 2015, and enrolled at UTI Arkansas in 2004, he joined the Ma- Houston in February 2015. rine Corps, where he was deployed twice in Iraq and once in Afghanistan. “The most important lesson that I’ve taken from the Marine Corps is that bad things happen... things go wrong all the time, and you’ve got to adapt and overcome,” said Paxson. Paxson said he planned on attending the Universal Technical Institute of Houston right after he left the Marine Corps in 2008, but he ended up starting his own landscaping company. Andrew Paxson completed two tours in Iraq For the first couple of years, busiand one tour in Afghanistan while in the ness was booming, but in July 2010, Marine Corps Paxson’s life changed forever. While landscaping, he fell 40 feet out of a In February 2016, Paxson gradutree and severed his spine, leaving him ated from the Auto/Diesel Industrial paralyzed from the waist down. program with a 4.0 GPA and was seAfter spending more than a week lected as the recipient of the Edward in ICU and undergoing more than two Fletcher Student Excellence Award. months of in- and out-patient rehabilThe award recognizes one student per graduating class for outstanding performance and professionalism. After graduating from the Auto/ Diesel Industrial program, Andrew immediately enrolled into the Collision Repair and Refinishing Technology (CRRT) program. “UTI Houston has made it really easy and accessible for me,” said PaxAndew Paxson maintains a 4.0 GPA at UTI Houston and has received several awards for son. “There hasn’t been that great of his academic performance challenges, except picking up heavy itation, he returned home to his wife transmissions, or working on the roof and two kids, ages eight and five, to of a car...I do what I can.” try to create a new normal. Paxson said he has a special by Victoria Antonelli

16 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

wheelchair that stands him up straight so he can reach higher up than he normally would be able to. Despite these challenges, Paxson continues to excel and is maintaining a 4.0 GPA. He even created modified hand controls that allowed him to test a car’s horsepower on the dynamometer (dyno). “I’ve enjoyed both the auto diesel program and the collision repair and refinishing technology program,” he said. “I started out on the mechanic side when younger, so I loved doing the hot rod portion on the auto side. As far as collision repair, I’ve taken a liking to the metal work, such as welding and working on quarter panels.” He added that the different programs require unique skill sets, and that “it has been very cool to see both sides of the house.” Paxson is set to graduate from the CRRT program on February 3, 2017. After graduation, he hopes to work in a transmission shop, but if his physical challenges create too many road blocks, he’ll pursue a career in a collision repair shop.

When Autobody News asked Paxson what advice he’d give to others who face similar limitations, he said,

Andrew Paxson, former marine, studies auto diesel and collision repair and refinishing technology at UTI Houston

“Never give up; it’s as simple as that. Apply it to anything and everything, and just keep moving forward.” For more information on UTI Houston, visit www.uti.edu/campuslocations/houston-tx.

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Smith Ford of Conway, AR Celebrates 100 Years

Smith Ford of Conway, AR celebrated eral store in downtown Conway. “S.G. started the dealership out the opening of its new customer-centered facility and 100 years of serving of the general store, selling wagons, seeing if there was something to this Conway in mid-November. The company celebrated its 100th horseless carriage deal. It turned out anniversary with the Conway commu- very well for me and others in the nity with an event that featured a radio community.” remote broadcast from 105.1 The Wolf, bouncy castles and face painting. “As much as this business is changing, we’re changing with it,” dealer principal owner Ted Smith said. “We’re keeping the core values that have sustained us for 100 years. The Smith family has meant a Smith Ford employees and Conway Area Chamber of lot to Conway, and Conway Commerce ambassadors celebrate the opening of a new has meant a lot to the Smith showroom and the dealership’s 100th anniversary family.” Smith said his great-grandfather Smith told the story of his greatgrandfather founding Smith Auto Com- started the company for his son, who pany, which is now known as Smith was a soldier in France during World War I. Ford, Inc. He told a story about how it was “He was a cotton broker when cotton was king in Conway,” he said. believed his grandfather was killed in “All the farmers would come into town battle, but showed up a few months and bring their cotton, where it would later to put those rumors to rest. He said his grandfather was also be graded, weighed and it would be determined how much money they would instrumental in starting Conway Corp. “A lot of people don’t know Conmake from that cotton. He had a genContinued from Page 15

Power of Peer Groups

changing us. We became part of Fix Auto about a decade ago and have found that it was the right decision for us. The company offers great information about what is going on in the industry. It’s not always positive and I think that it is tough for a lot of people to hear. However, I think it helps us stay a little ahead of the curve to help make decisions that are part of the future versus being several years behind and then having to catch up. As an independent owner with the corporate structure of Fix Auto, I think we can love our employees and love our consumers more, while running a successful business.

What is the benefit of getting Q: involved in the industry and how can it help your business?

I always encourage shops to A: get involved with associations, advisory councils and networking op-

portunities. Whether it’s getting involved with ASA, CIC or SCRS, I

think industry associations are key and help you learn what’s going on. I also recommend joining an advisory council. I’ve worked with various advisory councils over the years such as NACE and Fix Auto, and I found that it gives you the opportunity to learn from others in the industry. Twenty Groups offered through paint companies and other vendors also help you stay educated and up-to-date about new developments. All of these offer the best networking opportunities money cannot buy. Read more about Dan Stander’s story and how independent shops can survive in an environment of consolidation in The Secrets of America’s Greatest Body Shops, written by Dave Luehr with Stacey Phillips, scheduled to be released in early 2017. For more information, visit www .bodyshopsecrets.com or email dluehr @bodyshopsecrets.com/sphillips@ bodyshopsecrets.com.

www.autobodynews.com CHECK IT OUT!

18 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

way Corp was originally started by a bunch of business people getting together to put money up to keep the colleges in town, the Normal School and Hendrix,” he said. “They were thinking about leaving, but the business people put up some money and kept them here. That’s what became Conway Corp.” He said his great-grandfather who founded the dealership didn’t know how to drive. He also spoke fondly of his great-grandmother, Ellen Smith. “She was a very strong woman at a time when strong women weren’t suffered gladly,” he said. “She was instrumental in seeing a lot of the school kids had what they needed to go to school when their families couldn’t provide. That’s why we have an elementary school named after her.” Smith’s grandfather ran the company from 1921 to 1966, when his dad, Ross, took over. Smith said his father was known for his camaraderie. “My dad was well-respected among automobile dealers and was a great mentor,” he said. “He was very gracious in giving back to the community, so that just seemed like the thing to do. My dad did it, his dad did it, and now I try to do it.”

Ross turned the business over to Smith and General Manager Kenne Ketcheside about 10 years ago and the two are excited about the direction of the business. “We’re proud to be here and proud to be moving forward to this customercentered facility,” he said. “We owe a great debt to the city of Conway. As Conway has grown, we have grown. When I was growing up, Conway had about 8,000 to 12,000 people. Now, we have about 65,000 people and it’s a great place to do business.” We thank TheCabin.net for reprint permission.

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Continued from Cover

Ahead to 2017

lision repairers. Perhaps in 2017 more state insurance commissioners will follow the lead of their counterpart in Illinois, who this past year conducted a market conduct survey that lead USAA to end the use of caps on paint materials in that state. Montana’s Insurance Commissioner this past year issued a reminder to insurers that a lower estimate from a shop in the same market does not define market price. In California, Insurance Commissioner Dave Jones also just finalized new rules for how insurers conduct collision repair labor rate surveys in that state, which could well impact what shops there get paid in 2017. But he also said shops don’t have to wait for those new regulations to go into effect if they have a concern about what they are being paid by an insurer. “If you believe that you’re being presented with a reimbursement based on a labor rate survey that you suspect is not accurately capturing what the labor rate is in your market, you can complain to us now,” Jones said. “We have pursued those complaints. We ask the insurer [for] their labor rate survey. We take a look to see whether in fact it’s designed in a way to provide a fair result. In some cases, we have concluded that it hasn’t been, and have gotten corrections.” More automaker involvement in collision repair. Certainly the six automakers (General Motors, Nissan, Honda, Toyota, Fiat Chrysler) that issued position statements this past year on pre- and post-repair scanning of collision-damaged vehicles are not the last to do so. The industry likely will see more such statements in 2017, along with continued debate and friction between shops and insurers in terms of what those procedures mean for claims. While scanning is perhaps the most talked-about subject involving automakers and collision repairers, there was also plenty in 2016 to indicate more OEM involvement in the industry in others ways is coming in 2017. Vehicle telematics, for example, could increasingly be used by either automakers or insurers to get immediate notice of an accident and potential early influence on where that wrecked vehicle is taken for repairs.

“Our experience in Europe has shown that our partners have…been able to reduce cycle time and actually drive down the costs of claims, seeing a noticeable difference in their loss ratios, attributable to the use of telematics,” John Kramer, a former Nationwide Insurance executive now with Octo Telematics, said last year

CA Insurance Commisioner Dave Jones

on automakers’ use of data from the vehicle as part of the claims process. “When there is a crash, there is a ‘first notice of loss’ that is provided to the insurance company within minutes of the observance of the [vehicle] behavior.” Other automakers may begin certifying collision repair shops in 2017 as well. “We are now moving into the research stage and development of a certification program for all General Motors vehicles,” GM’s John Eck said last summer. Legal battles over parts, steering will continue. Several lawsuits in the industry reached conclusions this past year, but there are plenty of courtroom battles ahead in the coming year. Four lawsuits pitting Ford Motor Company against the non-OEM parts industry, for example, continue to inch along in federal courts. All of the suits involve Ford’s design patents on crash parts, which limit the production and sale of non-OEM versions of those patented parts. The Automotive Body Parts Association (ABPA), which represents non-OEM parts manufacturers and distributors, is asking a U.S. District Court to invalidate those patents. The ABPA argues that the parts are functional rather than ornamental, and that other courts have invalidated design patents (on items such as toner cartridges) when the design is found to be primarily functional. The other patent-related lawsuits involve Ford and a Texas-based aftermarket parts distributor New World

20 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

International and two affiliated companies; Ford alleges those companies sold non-OEM crash parts that infringe on the automaker’s design patents, while New World has also sued to have Ford’s design patents invalidated. Also still pending in various degrees of appeals are some of the two dozen lawsuits brought by shops around the country suing insurers for allegedly conspiring to manipulate shop labor rates and compensation. There’s been little in the court decisions in this past year that indicate much hope for the suits still surviving a year from now. Virtually all have been dismissed, though some of those dismissals are under appeal; some such appeals, however, were dismissed this past year because of failure by the shops’ attorneys to meet appeals court deadlines. Perhaps most troubling about the lawsuits is if additional court rulings in 2017 will echo those issued last year by U.S. District Court Judge Gregory Presnell in the suit brought by shops in Tennessee. In dismissing the suit, Judge Presnell ruled that he saw nothing wrong in one of the instances of steering cited in the lawsuit, one in

which State Farm “required the vehicle be taken to its DRP shop.” Presnell ruled, in fact, that “Tennessee law allows an insurer to require that an insured take his or her vehicle to a particular shop for repair.” He reached this conclusion by pointing to Tennessee’s Unfair Trade Practices and Unfair Claims Act, which states in part that if an insurer “requires a repairer to be used,” the insurer must establish standards to “assure the repairs are performed in a workmanlike manner.” “The necessary implication of this language is that insurers can legally require that their insured patronize a preferred repair shop,” Judge Presnell wrote. Similar rulings like that in any of the other lawsuits could change the face of “steering” by insurers in 2017 and moving forward.

John Yoswick, 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 bulletin (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

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Michigan OKs Operation of Autonomous Vehicles on Public Roads, Previously Only Testing Allowed Michigan Gov. Rick Snyder has signed legislation that aims to put Michigan at the forefront for autonomous technology, testing and deployment for selfdriving cars. Proponents say the laws

ving vehicles without steering wheels or pedals to be tested on public roads. Previously, only testing of the vehicles by manufacturers was permitted. The bill also allows automated vehicle pla-

are important for the state’s economic development and talent retention, according to news releases and reports in the Detroit News. The new law clears the way for the public to use self-driving cars when they are available, and allows self-dri-

toons and on-demand autonomous vehicle networks to operate on roads throughout the state. Previously, only testing of vehicles was permitted. The result should include more autonomous vehicles taking to Michigan roadways and quickening development of the

“Michigan put the world on wheels and now we are leading the way in transforming the auto industry” — Gov. Rick Snyder

technology State leaders say will make roads safer and cut down on accidents. “Michigan put the world on wheels and now we are leading the way in transforming the auto industry,” Snyder said. “We are becoming the mobility industry, shaped around technology that makes us more aware and safer as we’re driving. By recognizing that and aligning our state’s policies as new technology is developed, we will continue as the leader the rest of the world sees as its biggest competition.” Snyder signed the package of bills that will allow the public to buy and use fully self-driving cars when they are available at the Automotive

Hall of Fame in Dearborn. The laws would allow ride-sharing services without drivers to be operated by auto manufacturers or by ride-hailing services such as Lyft or Uber.

MI Gov. Rick Snyder signs package of legislation. Credit: Governor’s office

The package of four bills (Senate Bill 995-998) passed through the House and Senate with near unanimous support. The main bill allows self-driving vehicles to operate on any Michigan roadway. It allows automated platoons of trucks to travel together at set speeds. And it allows networks of self-driving cars that can pick up passengers on demand. It also creates the Michigan Council on Future Mobility to make recommendations on statewide policy to keep Michigan ahead of the game. Joined by bill sponsor Sen. Mike Kowall and mobility leaders from Ford and GM, Gov. Snyder signed Senate Bill 995 December 9. As a result of the passage of the bill, all safety requirements that pertain to the testing of autonomous vehicles will apply to autonomous vehicle operation, according to the news release. The bill allows for automated vehicle platoons, where vehicles travel together at electronically coordinated speeds, and authorizes on-demand autonomous vehicle networks. Gov. Snyder also signed three other bills sponsored by Sen. Kowall, Sen. Rebekah Warren, and Sen. Ken Horn, respectively, as part of the autonomous vehicles package: SB 996 outlines specific parameters for entities that wish to offer ondemand autonomous vehicle networks to the public. SB 997 recognizes the American Center for Mobility at Willow Run in statute and removes barriers to operating at the facility.SB 998 exempts mechanics from any damages to vehicles that result from repairs, if the repairs were made in accordance with manufacturer specifications.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 21

Shop Strategies

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

Industry Veteran in Pennsylvania Shares Secrets to Running a Successful Body Shop with Stacey Phillips

When Ron Perretta started Professionals Auto Body at the age of 19, he set out to do business with the traits that he said were instilled in him from a very young age—values, ethics and

Ron Perretta and his wife Paula after receiving the ‘Excellence in Small Business’ award

morals. Over the years, he has run his Pennsylvnia-based business based on these core attributes while focusing on quality repairs and excellent customer service. In addition to running two body shop locations in Altoona and Duncanville, Perretta operates a full mechanical facility, a towing company and a consulting and coaching business. Autobody News spoke to this industry veteran about the recent awards he received and the secret to running a successful operation.

Congratulations on receiving the Q: ‘Excellence in Small Business’ award from the Blair County Chamber

of Commerce. What was your reaction when you found out that Professionals Auto Body was recognized?

me with the Small Business Person of the Year award. Then in October my business, Professionals Auto Body, received the Excellence in Small Business award from the chamber. This month we received the Hometown body shop award, which we have won repeatedly year after year. All I could think was out of the thousands of businesses we received these awards. It was amazing. Present at the awards was my wife Paula, management, technical staff and people who have helped us from the very first day—“1979.” (link to video of Ron Perretta’s speech: http://bit.ly/ronperretta

Can you share some of the pracQ: tices at your Pennsylvania body shops that you think contributed to re-

ceiving the award?

I often say, if you had a repair A: done by me 30 years ago, and again today, some of the same people

would be here to help you. Some of the practices or ingredients are being loyal to my staff, community and customers and receiving their loyalty in return; eliminating drama and distractions; product consistency; keeping ahead of vehicle changes, equipment and training; and not wavering from our beliefs. Most importantly, I respect everyone who works at the business regardless of their position. Lastly, I never wanted to be like others in the industry, copying what they’ve done. I’ve run things not as a body shop but as a business, which has differentiated me in my market and industry.

I was humbled. First, in FebruA: What is your advice to other ary 2106 my peers in the community along with the chamber honored Q: shop owners who are starting out in the industry? The only way to sucA: ceed in this business or any other is to be passionate

Ron Perretta and the Professionals Auto Body management team

at whatever you do. Don’t expect things to be handed to you. You will appreciate your accomplishments more and so will others, as demonstrated by my awards. Create your niche, be consistent, do the right things and don’t listen to

22 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

people who only share poor advice.

2017 as being a very busy year.

What are some of the upcoming What is the secret to running a Q: goals Q: for your shop in 2017? successful business in this industry? We are growing and I’m not on A: any DRP programs. I’ve added A: from Literally without any money, five new positions within the last year the very first day I opened I kept the shop clean and organized.

Professionals Auto Body has received multiple awards over the years

and am now working on taking over another shop. I have a production/consulting company that has been expanding. We not only manage social media for body shops, but other businesses along with creating radio, TV, print commercials and coaching. I see

Today, all three of my stores are beautiful, well maintained and equipped. This is the kind of environment people should enjoy working in. This environment is important to people and shows I care about them. This and additional philosophies create an awardwinning business. For more information, visit http:// www.professionalsautobody.com or contact Ron Perretta at Professionals Auto Body: ronperretta@aol.com or 814-931-7669.

www.autobodynews.com C

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 23

24 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Auto Body Shop Owner Holds True to His Roots by Will Grandbois, Post Independent

Milton Rodas of MidValley Auto Body (in MidValley, CO) hasn’t had an easy journey to success, but he’s working hard to ease the path for others. “When I opened this shop, my first goal was always to remember who I was and where I came from,” he said. “I had to go back and give back.”

Milton and Briseyda Rodas

Rodas grew up with his grandparents on a small farm in the poor, rural community of La Blanca, Guatemala. It’s an area where many houses barely have walls and few children have

shoes. A typical day involved getting up at 4:30 in the morning to study and pray, working on the farm until it was time for school—unless rain canceled class—and more hours in the fields before doing homework by candlelight. Even so, he learned the value of charity early when his family would share food with those who were even more needy. “Food wasn’t an issue because we had crops, but money was always a problem,” he said. “We had almost nothing and we still gave. That solid foundation I grew up with made me the person I am today.” While many of his peers were working by the time they were teenagers, Rodas decided to complete his education and enrolled in military school. “I didn’t want to see my family always suffering,” he said. When he graduated, his mother invited him to come join her in California. That didn’t last long before he

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decided to move to Carbondale, where his uncle lived. “I felt that San Diego wasn’t for me,” he said. “Colorado was my way out.”

Rodas hard at work on a mission trip in Guatemala

tists. The next year, they returned to build an eight-classroom, Christianbased school that serves all grades. It costs $250 to attend, but many students are on full scholarship. “They can have an education and hopefully have a better life,” Rodas said. Though there’s now electricity and internet in nearby villages, life hasn’t changed much in La Blanca. Briseyda, who is originally from the city of Culiacán, Mexico, was shocked by the poverty there, as have others who joined the trips. “This country has so much to offer, and I think we can help show how different it is elsewhere. I really appreciate what I have today, because nothing was given to us,” Rodas said. “A lot of people stay in the tourist areas. You need to go out to my hometown. It’s a tough world, and you have to be there to really feel that.” This year, they did a mission in Argentina. “I don’t want to help just my own community,” he said. “I think the needs are everywhere in the world.” Next year, though, they expect to return to Guatemala, where aid is less expensive. It may be summer or Christmas vacation if enough kids are

His first job was at the Glenwood Hot Springs, but he soon switched to washing cars at a body shop. He later moved up to detail and painter’s helper before following his general manager to another shop in Carbondale where he worked for almost 10 years. “I really grew up in this industry,” he said. “It’s an ongoing process of education.” In the meantime, he studied English at Colorado Mountain College and met his wife, Briseyda. The couple now have three children ages 19, 16 and 12. The family relocated to Rifle, but Milton continued to work in Carbondale until his race became an issue. “I didn’t have the right color for being the manager,” he said. “I got to the point where I didn’t want anything to do with the industry for a while.” Instead, he founded the nonprofit Hispanic Alliance Rodas and others hard at work on a mission trip in Colorado (HAC), which ini- Guatemala tially supported basketball and soccer programs for kids. When willing to volunteer. Meanwhile, Midtwo of his friends were fired from Valley Auto Body will go on, with body work as well, however, one sugwhatever they can spare going toward gested a shop of his own. It was 2014 future projects. — not the ideal time to start a busi“The community is a piece of ness. gold. I’ve never been anywhere that “The economy wasn’t really there,” supports local business so much,” he said. “I went to several banks and Rodas said. “I have to make a living, everybody turned me away.” but my goal is not to get rich, it’s to He eventually got support from a help whenever I can.” private couple, and wasted no time in We thank Post Independent for giving back. reprint permission. The same year, he lead his first service trip back to Guatemala to build www.autobodynews.com two houses in his hometown with CHECK IT OUT! HAC and Rifle’s Seventh Day Adven-

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 25

SEMA Show Goes On

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

Valspar’s SEMA Highlights Include Celebrities and Amazing Vehicles with Ed Attanasio

Every November when SEMA rolls around, all of the paint companies step up in a big way to shine for four days and Valspar Automotive surely did exactly that at this year’s Show in Las Vegas. Among all of the fanfare and frenetic activity, Valspar Automotive was in to win it this year as they represented all of their other brands, including Matrix Automotive Finishes, Prospray Finishes and DeBeer Refinish. It was all about amazing vehicles, new product announcements and celebrity appearances at 2016 SEMA for Valspar Automotive. The company hosted the stars of two reality TV

now for about two years and the product is exceptional. We get dead-on color matches and the cars come out looking great. Just look at some of the vehicles right here in the Valspar Automotive booth and you can see what I am talking about.’ Featured vehicles in Valspar Automotive’s booth and in other locations at SEMA showcased the global leader’s coatings, including an original True Blue Pearl on a 1967 Mustang Fastback from the Matrix Automotive Finishes line; A 1966 Ford Fairlane GTA by Tony Lanesky of Anton’s Hot Rod Shop of Cleveland, OH from the DeBeer Refinish line; a 1978 Pontiac Trans Am in Prospray Finishes by John Wargo of The Custom Shop in Flanagan, IL as well as a custom trike in Matrix colors from Las Vegas’ notorious Count’s Kustoms and History’s Counting Cars. Owned by John Wargo and his wife Kim, The Custom Shop has featured many vehiTony Lanesky of Anton’s Hot Rod Shop of Cleveland, OH cles at SEMA in the past. Start(left) and Valspar Automotive Regional Sales Manager ing in the 1990s, the Wargo Ken Papich pose in front of this 1966 Ford Fairlane GTA family began showing their that Lanesky built spectacular custom builds and shows—Counting Cars on History and quickly became a huge name in the inThe Discovery Channel’s Gas Monkey dustry. In 2001, SEMA awarded The Garage—and also displayed a series of Custom Shop the Meguiar’s Shine breathtaking vehicles that attracted Award, and in 2008 they captured the crowds to their booth during the entire Best Truck award. Both of those show. award-winning vehicles were painted Show attendees who visited Valspar in Prospray Finishes, a Valspar AutoAutomotive’s booth on November 3 got motive brand. to meet Richard Rawlings of Gas Wargo has been using Prospray for Monkey Garage and the entire paint many years, he said, and that’s why he crew that works for Danny ‘the Count’ was so happy to have a car at Valspar Koker in his Count’s Kustoms refinishAutomotive’s booth this year. ‘Prospray ing shop, including Lonny Speer, Ryan is a perfect paint for what we try to Evans and ‘Horny’ Mike Henry. achieve with every build for customers Rawlings and the Count’s crew autoall over the country,’ he said. ‘We rely graphed limited-edition posters, signed on it for great finishes and the product cards and took pictures with fans. has never failed us.’ Wargo’s 1977 After meeting Rawlings and get- Trans Am used only Prospray colors, ting an autograph, Mark Watson a including Ruby Red (M7-27700), Myspainter for a collision center in Ohio tical Pearl (FX-708), Wilderness Candy was gushing about the reality star and (UC-03) and Spectra Flair (SF-1-18). how much he loves spraying Valspar’s Three additional vehicles repreproducts. sented Valspar Automotive and its ‘This is quite a thrill to finally brands, including a 1958 Plymouth meet Richard Rawlings, because I Belvedere in Prospray Finishes by have been watching his show forever,’ Wargo; a 1967 Ford Mustang in MaWatson said.’I have been using Valspar trix Automotive Finishes by Brandon

26 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Knowles of Brand-X-Customs in Everett, WA; and a 1947 Ford Pickup in Valspar Automotive Refinish by Bo Vescio of Vescio Customizing and Restoration in Minneapolis, MN.

vada and Oregon. As a SEMA veteran, Papich discussed the show and all of the brands Valspar Automotive carries. ‘SEMA allows us to wave our flag and showcase all of our brands,’ Papich said. ‘All of our products have their own niches and each scenario is different. One shop may prefer one of our low VOC products, depending on their location, for instance. We offer something for everyone and focus on things like versatility and, of course, quality.’ Valspar Automotive succeeds because they help their customers to be better operaThis stunning 1977 Pontiac Trans Am was painted using tors while saving money via Prospray Finishes by John Wargo of The Custom Shop in less product usage. ‘We proFlanagan, IL vide training and support that is world-class and we pride ourselves Valspar Automotive Regional Sales Manager Ken Papich knows a lot about on that. We have more people out on the collision repair industry in the West, the street visiting shops and helping especially in the three states where he them to save money by using less product.’ manages a sales force–California, Ne-

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 27

H OND A TEX AS

Bankston Honda L e w is v i ll e

800-344-8611 972-219-0021 Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Benson Honda S a n A n t on io

800-727-8705 210-340-0831 Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com

Cleo Bay Honda K i ll e en

877-253-6229 254-699-2478 Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com

Honda Cars of McKinney M c K in n ey

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 c o

866-442-2711 972-731-3176 Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

AC U RA TEX AS

Autonation Acura Leag u e Cit y

800-749-6227 713-371-4700 Dept. Hours: M-F 7-6; Sat 7-5 hoehns@autonation.com

David McDavid Acura Aus t in

800-575-3553 512-401-5976 Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com

David McDavid Acura Plan o

972-964-6044 Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

28 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. T E X AS

TE XAS

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Walker Honda

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800-461-6744 520-202-5770

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

Dept. Hours: M-F 7-6; Sat 8-4 robertevenson@chapmantucson.com

Honda of San Marcos San Ma rco s

Howdy Honda A u stin

877-941-6513 512-443-4300 Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com

Kelly Grimsley Honda Od ess a

844-453-5594 432-334-6632 Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

Russell & Smith Honda Hou st on

800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com

Rusty Wallis Honda Dall a s

O K LAHOM A

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888-715-3197 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com LO UIS IANA

Superior Honda

Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com

800-350-6537 623-463-4380 Dept. Hours: M-F 7-9; Sat 7-6 gluna@earnhardt.com

C OL OR AD O

Fisher Honda B ou l de r

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Honda of Greeley

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800-943-4227 504-368-5687

888-903-1101 970-506-2795

Dept. Hours: M-F 7-5:30 parts@superiorhonda.net

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Garcia Honda

800-722-2379 918-622-9670 Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

Chapman Honda

Dept. Hours: M-F 7:30-7; Sat 8-4:30 parts@hondaofgreeley.com

877-466-3272 214-328-3891 Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com

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Mac Churchill Acura

Acura of Baton Rouge

Fo r t Wo r t h

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866-733-2861 225-756-6166

Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com

Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com

Sterling McCall Acura

Walker Acura

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713-596-2337 713-596-2338

800-359-8555 504-465-8555

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888-550-7278 918-664-2300

800-456-9568 719-955-1715

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Dept. Hours: M-F 7-6; Sat 8-4 joe_benson@pikespeakacura.com

C OL OR AD O

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Flatirons Acura Bo ul de r

800-648-4488 303-442-1767 Dept. Hours: M-F 7-6; Sat 8-5 parts@flatironsimports.com

Jody Wilkinson Acura Salt Lake City

800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com

Mike Hale Acura

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866-347-4507 623-792-2559 Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com

Murray

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 29

Western News

New California Laws That Can Impact Your Business with Ed Attanasio

Every year without fail, hundreds of new laws are enacted that will impact automotive repair shops throughout the state of California. From huge MSOs all the way to little mom and pops in tiny towns, these laws have the potential to influence body shops everywhere if they don’t adapt to them or adhere to them. Below is a list of some of the key measures that will take effect in 2017, unless otherwise noted. Jack Molodanof of Molodanof Government Relations, who has been representing the California Autobody Association (CAA) for 25 years, has offered his take on each new law and how they can affect your business.

Minimum Wage Increase: Effective January 1, 2017, the minimum wage for employers with 26 or more employees will increase to $10.50 per hour. The minimum wage for employers with 25 or fewer employees will increase to $10.50 in January of 2018. (SB 3)

“Since most technicians, estimators and painters customarily make considerably more than minimum wage, this law isn’t going to affect shops in most cases,” Molodanof said. “Maybe for some detailers or porters, this law can impact their incomes to a degree. Additionally, remember that if you don’t provide the proper tools to any employee, you will have to pay them twice the minimum wage.”

Lead Acid Battery Fee: Beginning April 1, 2017, a $1.00 California battery fee is imposed on a person who purchases a replacement lead-acid battery from a retail dealer (includes auto repair dealers). The dealer will be required to separately state (line item) the California Battery Fee on all invoices and collect the $1.00 fee. The Battery fee will be submitted to the Board of Equalization on a quarterly basis, similar to the current California tire fee. The dealer will also be required to ac-

30 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

cept used lead acid batteries without charging a fee. The retail dealer of batteries is also required to provide written notice regarding the California Battery Fee and refundable deposits; however, the notice requirements do not apply to an auto repair shop that does not sell lead-acid batteries directly to consumers (over the counter) but instead removes nonfunctional/damaged batteries as part of an auto repair dealer service. (AB 2153). “We always had concerns with this bill,” Molodanof said. “This law is a direct response related to the 2013 series of events at the Exide Technologies battery plant that contaminated an estimated 10,000 homes in southern California with hazardous waste derived from batteries. This new law will mandate a $1 fee for each such battery sold for placement into the Lead Acid Battery Cleanup Fund.” Tow Truck Requirements: This new

law makes a series of changes to provide relief to last year’s bandit tow truck law (AB 1222). Current law requires a business taking possession of a vehicle from a tow truck to document the name, address and telephone number of the towing company, the name and driver’s licenses number of the tow truck operator, the make, model and licenses plate or vehicle ID number and the date and time that possession was taken of the vehicle. This new law allows the business to accept the operator driver’s license number or driver’s identification number issued by a motor club or other government authorized unique identifier of the tow operator. If the business is taking possession of the vehicle from tow truck when the business is closed, the business must document reasonable efforts made to obtain the required information. (AB 2167) “This law provides relief by allowing shops to accept a government authorized unique identifier or motor

club driver’s identification number,” Molodanof said. “This way, they don’t have to present their driver’s licenses as identification, which is an identity theft protection issue for the drivers. This law protects shops, tow companies and consumers alike, because it documents the transaction and provides full accountability.”

Automotive Windshield Replacement: This new law requires that automotive repair dealers (includes sublets) to use windshields that meet or exceed Federal Motor Vehicle Safety Standards and vehicle manufacturer specifications when replacing windshields and to use adhesives that meets or exceeds manufacturer specifications. Auto repair dealers shall provide an estimate notifying the customer that the installation of the windshield will prevent the operation of the vehicle for a period of time (due to cure time) and whether the windshield is an OEM or non-OEM manufacturer part. The invoice shall notify the customer of the cure time, the date and the time upon which the installation was completed and whether the windshield is an OEM or non-OEM manufacturer part. (16CCR 3365.1)

“This law allows shops enough time to let the adhesives cure during the installation process so that customers would not be left in the dark and the windshields will not leave a shop until they are safe and correctly installed,” Molodanof said.

Counterfeit and Nonfunctional Airbags: This new law increases penalties for any person who knowingly manufactures, imports, installs, reinstalls, distributes, sells or offers to sell any device intended to replace a supplemental restraint system with a counterfeit supplemental restraint system component or a nonfunctional airbag as defined. (AB 2387) “The National Highway Traffic Safety Administration (NHTSA) reported in 2015 that more and more counterfeit airbags have been discovered as replacement parts in vehicles that have been involved in crashes, thereby leading to this law,” Molodanof said. “This one is fairly common sense. If you buy an airbag on eBay or Craigslist for $50, you can be fairly certain that it is not the real thing. Counterfeit airbags are obviously a major safety issue and now the penalties for selling them are tougher,

which is good.”

Criminal History in Applications for Employment: This law prohibits employers (in addition to existing laws) from asking applicants to disclose, or from utilizing as a factor in determining any condition of employment, information concerning or related to “an arrest, detention, process, diversion, supervision, adjudication, or court disposition that occurred while the person was subject to the process and jurisdiction of juvenile court law.” (AB 1843) “In the past, employers could go back and look at employees’ or applicants’ juvenile records, but those will now be sealed,” Molodanof said. “This was sponsored by the Juvenile Court Judges of California and the idea behind this law is that people should not have to pay for things for their entire lives that they may have done as juveniles. This does not affect adult criminal records that are still available to employers that want access to them.” Single-User Restrooms: Commencing on March 1, 2017, this new law requires all single-user toilet facilities in any business establishment, place of public accommodations or govern-

ment agency to be identified as allgender toilet facilities. (AB 1732). “If your facility isn’t open to the public, this law does not apply to you,” Molodanof said. “It’s not like with a restaurant where a restroom is required by law. In this case, you will likely only have to change some signage on your restroom to adhere to this new law.”

Smoking in the Workplace: A new set of laws were passed during the middle of the year (June 9, 2016) which increased the smoking age from 18 to 21; included electronic cigarettes and expanded the prohibition of smoking of tobacco products inside an enclosed place of employment. The law now applies to all employers regardless of size, including where the owner-operator is the only employee (i.e. owner-operated business). (ABX2-7) “This law was designed to some degree to deal with e-cigarettes, because they are new and many business owners don’t know how to deal with them,” Molodanof said. “Now, it is prohibited to vape inside a shop and that also includes customers. It’s a health issue, and even if you’re okay with smoking in your business, the state is not.”

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Day Job/Night Job Former Metal Technician Lands Dream Job with his Animal Art with Ed Attanasio

Body technicians often collect items while on the job, but most of them end up in their home garages where they languish forever. But what if one of them took these objects and used them to create amazing art that received accolades by art lovers and critics nationwide?

Known for his fish metal sculptures, Miller has also created other animals, like the ram’s head in this photo

and make a lot of money, well before DRPs existed, because it was 100% flat rate. But over the years, the body shops in the Bay Area started paying salaries while costs kept rising in northern California.” Several years ago, Miller moved to Southwest Missouri, where he could purchase a large house on three acres while still working in the collision industry. During this entire time, he was doing his art, a passion he discovered while attending high school in Sunnyvale, CA. “I was throwing pottery and doing a ton of artwork while in school,” he said. “Then, as a senior, I started working at a local body shop and the art kind of faded into the background. Fixing cars is artistic in many ways, so I always have been looking at different shapes and forms that techs run into every day on the job. Eventually, I decided to make some sculptures from items I found while repairing vehicles.” One of his first pieces was for his mother, where Miller took an old can and cut it until it looked like a rose. He then painted it red, and people who saw it were immediately impressed. “I took some old metal and made it into something that looked like it was alive and the feedback was great,” he said. “That planted the seed, and then several years later, I started doing my fish sculptures, but I was always thinking about it and planning the pieces in my mind.”

A former metal technician, Gary Miller, 54, has done exactly that. By using things he finds during the course of any normal day at a body shop— small car parts, broken or tired tools, gears, housings, armatures, motors, windshield wiper motors, copper, chrome, aluminum , steel, etc.—Miller has been able to create some amazing sculptures. Where most people think trash, Miller thinks art. Creating a menagerie of animals that Dr. Doolittle would be proud of, Miller has created a wide range of fish, insects, rams and other creatures that wow people and make them happy. A body tech for 37 years, The fish that Miller is now creating for Pro Bass Shops Miller started in the industry at are more realistic, but still just as impressive age 17, when he began learning the business from the ground floor. Why fish for his sculptures, we “I started out like other teenagers, asked Miller? “I have always been a sweeping floors and absorbing as much wilderness guy, backpacking in as I possibly could,” Miller explained. Yosemite and spending weeks at a “After 5-6 years, I was doing a ton of time out there,” he said. “I have also combo work that was all strictly collibeen an avid fisherman for decades, sion repair. Back then, I could hustle fly fishing for river trout all the way

32 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

to deep sea fishing too. So, it was just a natural progression for me to use animals as subjects for my sculptures, because they are beautiful creatures and my goal is to capture that beauty in my work.”

tures,” Miller said. “By doing my combination work for many years, I know how to cut the metal, weld, paint and shape these creations. At first, I was just doing them for friends, mostly for Christmas gifts. A

A salmon made of parts found in a body shop has received amazing reviews for Gary Miller, a former metal technician who has found a second career with his art

For the past 37 years, Miller has been plucking things from the body shops he has worked for and accumulating a lot of objects that no one else could even remotely consider them artful. “I knew that I had all of the skills to turn these parts into sculp-

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 33

Historical Snapshot

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

CIC Ends Parts Test-Fit Demonstrations, Feds Launch New Insurance Oversight Agency with John Yoswick

20 years ago in the collision repair industry (January 1997) Also during the Collision Industry Conference (CIC) in January, Georgia shop owner Gene Hamilton proposed that the paint manufacturers and other companies that host large parties in conjunction with NACE (the International Autobody Congress and Exposition) be asked to redirect some of the money to address fundamental industry problems. “NACE parties are a lot of good drinking, a lot of good eating, and a few hours later it’s gone, but so are sizable amounts of money,” Hamilton said. “My proposal would be that we find a way to reallocate some of the money spent on us. I’d like to see the industry say, ‘I’m willing to forego a party, I’d rather try to solve a 365-day problem, and I’d like that money to be spent on the industry for training, or for attracting people to this industry.’” A number of NACE participants,

including representatives of some companies that host NACE parties, said the proposal would be something they would strongly consider once some specific ways the money could be spent were developed. – As reported in The Auto Rebuilder.

In 1997, Georgia shop owner Gene Hamilton suggested that the money industry vendors were spending on large parties at the annual NACE convention could be used to address larger industry issues

34 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

For a number of years, some companies adopted Hamilton’s suggestion, announcing donations to industry efforts in place of large parties during NACE. In recent years, large vendorsponsored events have returned both during NACE and during SEMA.

15 years ago in the collision repair industry (January 2002) After much debate at the Phoenix meeting, Collision Industry Conference (CIC) participants narrowly voted to suspend the vehicle test fits of OEM and non-OEM parts that have been held at most CIC meetings over the past three years. The test fits, coordinated by CIC’s Parts and Airbag Committee, have allowed CIC participants to rate the fit, finish and overall acceptability of OEM and non-OEM replacement parts – not knowing which were which – that were installed during the meeting on a vehicle.

DiLisio, who led the Parts and Airbags Committee prior to becoming chairman of CIC last year, was among those calling for a halt to the test fits primarily because what he called the “misuse of the information gathered by the parts test fits.” As an example, DiLisio cited a press released issued by the Alliance of American Insurers last fall that stated, “Generic certified parts more often than not have received higher ratings than car company parts in blind parts demonstrations at CIC meetings. The attendees of the meetings are primarily owners of automobile body repair shops.” “There’s a couple of things in that statement that are obviously disturbing,” DiLisio said. “Number one, we’ve never had scientific tests; therefore data shouldn’t be used as if it were scientific results. Number two, more often than not, the aftermarket parts have not performed better than the OEM. And number three, the attendees

at this meeting are not primarily collision repair shop owners.” Insurers and industry vendors are generally represented in equal or even greater numbers that collision repairers at most CIC meetings, DiLisio pointed out. Even more importantly, only six of the 16 certifiable non-OEM parts used in the CIC’s test fits over the past three years were rated higher than the OEM version (and in one case there was a tie). Over all CIC test fits, DiLisio said. OEM parts had an acceptability rate of 78 percent compared with 55 percent for the non-OEM parts. “For them to make a statement that more often than not the [nonOEM] parts perform better, I have a problem with that,” DiLisio said. “We started these test for one reason only: To emulate what a collision repairer goes through every day: Calling up on the phone to order certified parts to see what comes. Number two was to put these parts on a vehicle to see whether they fit, what the finish was like, etc. We’ve done that. We’ve given feedback to the distributors, to the OEs, to the Taiwanese. Many changes have been made. There’s no question in my mind that these test fits have proven to be positive. The question I raise: What

are we going to gain out of them in the next 12 months?” Massachusetts shop owner Chuck Sulkala was among those who supported the continuation of test fits. “We had to be able to show, ‘This is what is wrong with this part,’ and that is what the test fits have done,” Sulkala said. “As a result, we now have CAPA changing the way they are doing thing and are now doing vehicle test fits. We’ve had the Taiwanese come over to see what we’ve done. And we’ve also found that not every OEM part is perfect as I and many other repairers thought they were. As a result, we got the attention of the OEM as well. It’s unfortunate that people decide to take information and twist it and turn it, and they ought to be called on the carpet...but my vote would be that we continue the effort. I’m not sure that our work is completed yet.” Sulkala, however, was one of only three CIC participants who voiced support for continuing the test fits at nearly every meeting; although two dozen others supported limiting the test fits to two a year, a slightly larger majority voted to suspend the test fits altogether. – As reported in Autobody News.

10 years ago in the collision repair industry (January 2007) At the Collision Industry Conference “planning session” held in Phoenix in mid-January, Stacy Bartnik oversaw her first meeting as chair of the conference, leading about 200 attendees through the process of determining which topics CIC committees would tackle in the coming year. “I would like to see some discussion on the use of photographs to establish judgment times,” suggested Darrell Amberson, president of Lehman’s Garage, a six-shop collision repair business in Bloomington, MN. Amberson, who also serves as national director of the Collision Division of the Automotive Service Association (ASA), said such “desk auditing” practices now include using photos to determine, for example, whether a repair time should be two hours rather than three. “I would question the ability to accurately do that based on a 2-dimensional photograph,” he said. – As reported in Autobody News. Despite Amberson’s concerns, “desk audits” of estimates have become increasingly common in the past decade, as have services offering initial esti-

mates based solely on photos. Amberson is now president of operations for LaMettry’s Collision, another Minnesota-based MSO.

5 years ago in the collision repair industry (January 2012) The new Federal Insurance Office (FIO) has been seeking comments on how insurance should be regulated in the future, and two viewpoints are clearly emerging. The National Association of Insurance Commissioners is among those saying the current state regulatory system is working. “Property and casualty insurance proved to be among the best regulated financial-services sectors throughout the financial crisis,” Jimi Grande of the National Association of Mutual Insurance Companies said. But the Risk and Insurance Management Society told the FIO that more federal oversight is needed because state regulation allows insurers to stray from or misinterpret national standards. And the Financial Services Roundtable says the majority of its members “believe that the FIO must be a lead voice, not only in vetting options, but ensuring that a new era of See Retro News, Page 46

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A 2015 Profile of the Evolving North American Collision Repair Marketplace by Vincent Romans

Our 10th anniversary annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. Following is an executive overview highlighting our data and findings from the report.

It has been quite a ride to watch what has transpired during the past decade, not only within the collision repair industry, but throughout the entire auto physical damage ecosystem. The consolidation, convergence, and the structural changes we are witnessing within businesses, industry segments and markets, as we know them today, are now significant market factors to consider as part of our future planning. The high velocity and breadth and depth of change, coupled with the seemingly relentless introduction of innovative and disruptive products, services and business models, has required us to maintain an intense vigilance, to stay constantly informed, and to learn

■

And since 2012, the $10-$19 million MLOs Since 2006, the total revenue within these four segments has grown from $3.8 billion to $10.2 billion in market share, an 11.6 percent compounded annual growth rate. The top ten ranking of all ≥$20M segment repairers including independents, dealers and franchisors can be seen in the following chart. Under the All Repairers column, we see there are four independent consolidators, three independent franchise organizations and three dealer groups. Within this category, the four independent consolidators represent a significant 70 percent of the revenue processed in 2015. The four consolidators by themselves represent 11.3 percent of the total industry size for 2015. We estimate that by 2020, they could almost double their market share and represent just over 20 percent of industry market size. When combined, the four segments we track and analyze could represent almost 45 percent of the collision repair industry by 2020. The following chart reflects the ranking of the Top 10 multiple-location operators and networks for 2015.

Although the U.S. has seen an increase in consolidation within the multiple-location operator segments, Canada remains significantly more consolidated in the revenue generated by the combined franchise and banner and ≥$10 million MLOs. In Canada, this combined segment group represents a 71.8 percent market share versus the combined 29.8 percent share for the same U.S. segments. The combined 2015 revenue for the U.S and Canada ≥$20 million MLO

and franchise networks was $11.8 billion versus $10.8 billion in 2014. This represents 32.2 percent of total industry revenue for the U.S. and Canada. Within the U.S. market, the ≥$20 million independent and dealer MLO segment is the largest while the franchise and banner network MLOs remain the dominate business model in Canada. Both countries saw a continued downtrend for the number of collision repair facilities, although this downturn See A 2015 Profile, Page 39

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■

■ ■

Four top independent consolidators ≥$20 million multiple-location independent and dealer operators, MLOs Franchise and banner groups

Canadian Collision Repair Market The Canadian market continues to consolidate with the franchise and banner segment now representing a significant 52.0 percent share of the CAD $2.9 billion private insurance auto market. When including the ≥$10 million MLOs in Canada, the combined larger segment has a significant 71.8 percent of all the private passenger insurer and consumer-paid market. Under the All Repairers column, we see four banner and franchise groups leading the Top 10 ranking followed by five independents and one dealer MLO.

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

How to Compete with Consolidation and Outmaneuver Your Competitors in 2017 with Stacey Phillips

During a recent SCRS seminar at enue and margin benefits from conSEMA 2016, Brad Mewes began his solidation, said Mewes. presentation by asking a room full of These trends seem to be here to body shop owners to think back a stay. “They aren’t going to change; they decade ago when there were just a are only going to continue,” he said. handful of consolidators in the indusSo how is it possible to compete in try, such as Caliber. such an environment? Mewes shared “This was a time of much uncerfive ways shops can make more money tainty in the collision repair industry and outdo their competition in 2017: and a time when the power of the independent was very strong,” said Mewes, 1) Organic Growth: With this founder of Supplement, a company that model, Mewes said generally speakspecializes in strategic advisory serving, there is a potential to grow your ices to the automotive aftermarket. business five to 10 percent annually. “But there were changes that were hapSome of the advantages include diverpening in the industry.” sifying your customer base He recalled attending a and increasing your contribumeeting at that time when tion margin. However, he businesses came together to said there tends to be a maxdiscuss how to compete in an imum amount you can grow. environment that was con“One of the bigger challenges solidating around them. He growing organically is you remembered one of the succan only grow so much before Brad Mewes, cessful business owners sayyou run out of space. Addifounder of ing that if you ever suspect tionally, as you grow organiSupplement, during SEMA auto body to be run like Wall cally, you have to continue to 2016 Street, you are going to be invest in staff and working waiting a long time. capital,” said Mewes. “An ongoing inFast forward 10 years and the vestment is required.” largest four collision repair operators in the United States are all run like 2) Efficiency and Cost ReducWall Street companies and backed by tions: In terms of opportunities, Mewes some of the largest, most prolific pri- said that shops can improve both gross vate equity groups in the world, said margins as well as operating margins. Mewes. The Big Four include ABRA, “Buying right, minimizing waste, and Boyd (Gerber), Caliber and Service increasing throughput are all ways to King and own more than 1,400 loca- increase efficiency and boost profit,” tions combined. said Mewes. “But there is a natural Mewes said that from the end of limit to this growth and margins can’t 2011 to year-end 2015, the Big Four increase indefinitely. In other words, have collectively tripled in size. Serv- you can only sharpen the knife so many ice King, the fastest growing of the times.” four, increased in size six-fold. In the first three months of 2016 alone, the 3) New Development: New detop four consolidators added nearly as velopment is generally a low-cost opmany locations as they added in all of tion for businesses that want to expand. 2012. “They have clearly become exMewes said the new shop can be used perts at identifying, acquiring and inas a training facility to educate emtegrating repair facilities. This is ployees until operations ramp up; ususignificant because how they are doing ally over 18 to 24 months. If shop business is different than the way we owners invest a substantial amount of might be doing business,” Mewes told money into the business, they must fiattendees. nance the development over this time, Meanwhile, private equity firms as well as pay their employees during are investing in the body shop indus- the ramp up phase. This can be a costly try due to its scalable platforms and proposition as the shop gets up to full backable management teams where steam, and it is important to plan acthey believe there is substantial rev- cordingly.

38 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

4) Acquisitions: Many in the industry consider this a risky option; however, Mewes said there are advantages to making an acquisition. Not only can it diversify your risk, the business is already in place with employees, a customer base, insurance cash flow, revenue, etc. “Generating cash flow from day one makes it more attractive and manageable to grow,” said Mewes. However, acquisitions can be very complex and often require a substantial financial commitment.

5) Culture: Mewes said that the biggest advantage independent collision repairers have is the ability to drive culture. Although large companies in this industry spend a lot of time and money on developing a culture and education, he said it’s one of the biggest challenges they have because they simply cannot touch every employee in the organization. “The abil-

ity to drive culture is really one of the differentiating factors that a small organization can leverage and has to leverage in order to grow aggressively,” said Mewes. “Because you are a smaller operator, you can be flexible in a way that a larger operator can’t.”

As the industry continues to change and evolve, Mewes said there is still opportunity for independent shops to grow. “There are investors who want to invest in companies that are growing and expanding. It’s a huge opportunity,” he said. “In a consolidated industry, you effectively have one choice: grow fast or be acquired!” This article is based on an SCRS seminar during SEMA 2016. For more information, contact Brad Mewes, founder of Supplement, at 714-658-5518, brad.mewes@supp-co .com or read his weekly insights at http://supp-co.com.

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Continued from Page 36

A 2015 Profile

has slowed in recent years. In 2006 there were approximately 45,000 U.S. collision repairers averaging $666,000 in

revenue annually versus about 32,900 locations in 2015 averaging $1,036,474 in annual revenue. Canada’s repair location population has seen a reduction of more than 50 percent since 2012, with 4,900 locations averaging about

$427,959 in 2015. When comparing the market size and share for the property and casualty insurance and auto repair segments for the U.S. and Canada, we continue to see two very different and divergent markets. The U.S. collision repair mar-

Both countries saw a continued downtrend in the number of collision repair facilities, although the decline has slowed somewhat since 2010. Although the U.S. has seen an increase in its consolidation within the MLO segments, Canada remains sig-

$36.4 billion is an increase of 3.9 percent versus 2014. Our annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. The report is the result of our ongoing propriety research, analysis

ket size is 15 times the size of the Canadian market. Canada’s Top 10 private insurers have a 78.7 percent premium market share, up from their 77.1 percent share in 2014, as compared to the U.S. insurers’ share of 71.1 percent.

nificantly more consolidated in the revenue generated by MLOs at 71.8 percent share versus 29.8 percent for the U.S. market. This represents increases versus 2014 of 1.9 and 3.3 percent for the U.S. and Canada respectively. The combined ≥$10M MLO, franchise and banner revenue of $11.8 billion is now just under onethird of the combined total market revenue. The combined market size of

and collaboration with specific market experts and leadership throughout various auto physical damage segments. It presents the complete results of our work for 2015 in over 40 charts and graphs in 47 pages and includes historical trends and a future view. The report can be purchased by contacting The Romans Group LLC at 847-382-6208 or Mary Jane Kurowski at maryjane@romans-group.com

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Media and Publicity for Shops My Marketing Rap for 2017

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

with Ed Attanasio

In marketing, it’s always a good idea to mix it up and change your approach every once in a while. Maybe take your efforts out of social media and use direct mail or billboard advertising, for example. Some shops will do print ads only during their slow times and then drop out when they get busy. Other shops, however, have been sticking with the same old marketing techniques for decades because they still work, but how will they continue to perform in today’s ever-changing world of marketing? If you’re still advertising in the yellow pages or putting flyers on cars in parking lots, it’s time to make some changes and now is the ideal time to do it. So, in the spirit of change, I have decided to alter my writing style a little for 2017 to keep everyone on their toes—so I am writing this column at least partially with rap lyrics. I am surely not 50 Cent, but if my information about marketing is worth at least 15 cents, I’ll be good with it, although I don’t know how my editor is going to respond to my new approach.

1.) S-E-O, Baby! Leverage your online presence or start paying your own severance before your shop starts to stumble and eventually crumble, because people are jammed for time and need to find you quickly online every time. That may sound dire and I don’t want to start a fire, but with consolidation gaining momentum, smaller independent shops should heed this proclamation. Search Engine Optimization (SEO) is a necessary evil in today’s world and many shop owners hate it, because they can’t understand it, to be honest. If you’re not one of Google’s top five shops when people search for your business in your town, that means you’re likely buried deep in the bushes and most consumers will not spend the time to chase you down. You don’t necessarily have to know what SEO is, but if you are on Google’s page three or four, you definitely need to do something pronto. Hire a reputable SEO expert and let them do their magic and most importantly, give them at least eight months to one year for it to go into effect. To move up the ranks via any search engine organically, you need to

give any SEO expert enough time for it to happen. Too many shops pull the rug out after only three months, thereby setting it up for failure.

2.) Short Clips and Less Text With too many data downloads hitting our brains like driving rain, people are getting away from the written word and watching more videos to a point where it’s absurd. So, jump in the video game and don’t feel shame— you won’t need a Speilberg or Scorsese to make production easy. YouTube used to consist of mostly cute cat videos and recipes about how to make the world’s best Lobster Mac ‘N Cheese, but now there is a plethora of ones that were created by body shops all over the country. Some show shops fixing cars and educating consumers about the repair process, vehicle certifications, customer testimonials and other valuable and even entertaining information that can be easily and quickly disseminated to the public. If you think they don’t work, check out how many people have viewed some of the them on YouTube and then start producing a few of them yourself. With today’s technology, you can actually do videos with your smartphones and editing software is easier to use than ever.

3.) Direct Mail is Back It used to end up in the trash pail, but now direct mail is back like kale, so it won’t fail for shops that can prevail by using this re-energized form that was once considered stale. If your design is spiffy and the message is profound, your customers will be happy and the piece renowned. In the old days before the Internet, smartphones and email, everyone did direct mail and caused major congestion in many of our mailboxes. But now, with so many shops competing for a strong identity online, direct mail is more less common. More and more large companies are gravitating away from direct mail and that’s why you’re getting less and less of it. This form of advertising has suffered from being called “junk mail” for decades, but now it’s back, because if done right, it works. First off, you can buy a list that tells you how many people in your region drive a

40 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

specific car for which you might just have a certification for. Sending a nice succinct mailer to these people on a semi-regular basis without stalking them will keep your name in their brains for when their next accident occurs.

4.) Pay it Forward People have trouble saying philanthropy so in simple terms- it’s just charity. You don’t have to look too hard, because deserving people are in your own backyard. Do it for the right reasons and not just during the holiday season, and you will see results that are both satisfyin’ and pleasin’! If you are looking at the most successful shops in any area, I would bet they do more than a few charity-related events and programs every year. Giving away cars or raising funds for non-profits by sponsoring car washes, truck pulls, crab feeds, pancake breakfasts—you name it and they do it and more. Helping other people gets your

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5.) Show Some Love An occasional illustration of customer appreciation will ease their pain and retain them for the next time they get into a collision for whatever reason. Acquiring new clients is never an easy way to go, so why not stay in touch with the ones you already know? Many shops are great at customer acquisition but don’t do anything to retain them, which is a huge mistake. We know that people get into accidents every 7 to 10 years depending on who you’re asking, but they can also refer folks to your shop, etc. A satisfied customer can be a great advertising vehicle for your business, so why not put your name in front of them as often as you possibly can? Follow-up letters, email newsletters and even an annual customer appreciation day is how top shops show love to their existing customer base year-round.

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SEMA Show Goes On

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

Vintage Color Studio Features Award-Winning Roadster at 2016 SEMA at PPG’s Booth with Ed Attanasio

When a major brand like PPG invites you to be part of its booth at SEMA, it’s definitely a big deal and an honor for any automotive painter. And even though Darryl Hollenbeck, the owner of Vintage Color Studio in Concord,

Darryl Hollenbeck and his wife Terri with their 1932 Ford High Boy Roadster, which wowed SEMA attendees who visited PPG’s booth during all four days of the show Continued from Page 32

Animal Art

Miller’s fish sculptures require a lot of time to make, and he eventually wants to take his art to another level. “My goal is to set up a studio and produce more of them,” Miller said. “Each piece is like a huge puzzle and

Miller also creates insects, including this praying mantis made primarily out of old tools

I never want to force it. I lay out the parts, but I always carefully look at them before I start welding. They take an average of 30 to 40 hours each to complete, so to take it from a hobby

CA, has won three America’s Most Beautiful Roadster (AMBR) awards and a handful of Pebble Beach Concours d’Elegance awards with his cars that are regularly featured on the covers of magazines such as Street Rodder and Rodder’s Journal, Hollenbeck has never become jaded or complacent due to his success. Along with other top car painters and fabricators, Hollenbeck’s 1932 Ford Highboy Roadster wowed SEMA attendees during all four days of the show. The 2016 AMBR winner differs slightly from your traditional Highboy approach while still retaining much of its original look. “Cory Taulbert at Webb Automotive Art handled the chassis fabrication and then we got it back to install its Edelbrock crate small block, and a T5 Borg Warner trans,” Hollenbeck said. “Once we were done with the paint, Bill Ganahl coordinated the final assembly, and friend Sid Chavers stitched the

to a profession would be a big step.” Monetizing his artwork got a huge boost when Miller was recently hired by Pro Bass Shops at their headquarters in Springfield, MO as a metal technician to build retail displays and other metal items for the company’s 90 North American locations. It’s a dream job, and soon his fish sculptures will likely play a role in his new job, he said. “I fabricate things like retail racks, special railings and I am also doing a series of more realisticlooking fish for Pro Bass Shops. They hired me in September, so I am still learning and growing in this position.” With his new career as an artist and a metal technician for Pro Bass Shops, does that mean collision repair is now in Miller’s rear view mirror? “Absolutely,” he said. “I never have to do collision repair ever again, unless I want to. Yes, I still have deadlines in this job, but they’re not as crazy as the ones I encountered in the body shops I have worked for. I want to use my creativity now in different ways. In collision repair, you return cars back to their previous condition, but in this role, I am creating things from scratch, and that is why I love it!”

42 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

leather and 1969 Cadillac fabric interior combo. I’ll guarantee you it’s the nicest roadster here with 10,000 miles on it.”

Hollenbeck's ‘32 Highboy won Vintage Color’s third America’s Most Beautiful Roaster award earlier this year

Darryl Hollenbeck, 49, grew up in Concord, CA with a family that was destined to paint or rebuild vehicles as a profession. Darryl’s grandfather,

uncle and father were all highly-regarded car painters, with his father Dale gaining national acclaim for his work before passing in 2003. Hollenbeck has been painting vehicles since he was a teenager. “I was using lacquer back when I started painting cars as a kid,” he explained. “The first car I ever painted was a 1968 Mustang done in black lacquer. When waterborne paint was mandated almost 10 years ago now, I struggled with it for a short time and was a little skeptical about it. I was wondering if the waterborne would last and questioned its longevity, but now I use the PPG Envirobase exclusively and it is outstanding. They are a great company and extremely supportive. Their products are user-friendly and they know what painters go through, which means that their customer support is exceptional across the board.” A veteran painter, Hollenbeck entered the industry on the collision side

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initially. “I worked with my uncle and my father at H&K Auto Body in Oakland, CA, and that is where I started working right out of high school,” he said. “I was there for about four years and then I bounced around working at body shops in the East Bay. I always had an urge to do complete customs, and pretty soon, I was able to do them. I always wanted to be strictly a painter, but at the beginning to break in, I had to do it all.” Hollenbeck’s career really gained momentum when he landed a job at Acme Custom Cars in Antioch, CA, a top customization shop with a great reputation for doing award-winning work. “I was able to really expand my horizons there and refine my painting skills,” he said. “They gave me the responsibility and I thrived on it.” Currently, Vintage Color Studio is booked for at least a full year, and Hollenbeck’s work is always in demand, it seems. If you want a classic car with an award-winning paint job, Hollenbeck’s name is a household word in northern California and many of the country’s top rod builders have his name right at the top of their list. When Hollenbeck gets a classic hot rod in his shop, it’s already down

to the bare metal, and that’s when Vintage Color Studio does its magic. “We fill in the gaps and prepare it for paint and then we paint it,” Hollenbeck said. “The car is then sent back to the restoration shop, which is usually Roy Brizio at Roy Brizio’s Street Rods in South San Francisco, CA. It is a great

and a few years ago he stumbled upon a niche that consists of rock stars including two guitar legends. He has now done four cars for James Hetfield, the lead singer of Metallica; two for Eric Clapton and one for Jeff Beck, who used to be in the Yardbirds with Clapton many years ago.

Hollenbeck painted this award-winning 1937 Lincoln Zephyr for James Hetfield of Metallica a few years back

relationship that works well, because they have an amazing track record of success between the two and are also related through marriage. Also, I am married to Terri Brizio, Roy’s sister, which surely does not hurt.” Hollenbeck has painted vehicles for car collectors all over the world,

Hollenbeck is a serious artist and businessman, but he also enjoys the camaraderie that comes along with the job. “One of the great things about this business is that I eventually become friends with many of our customers,” Hollenback said. “It just happens naturally, because they give me a ton of

responsibility with these vehicles and I value that. These are their children in a way, so I want to do an incredible job for them. That is also why I get a lot of repeat clients, because they know I am totally dedicated to every project I do.” After working on any car, Hollenbeck still gets a rush when he sees the finished vehicle right before the rest of the world gets to. “When we return it to the rebuilder, it’s all in parts, so we can’t really get a good idea what it is going to look like. But when we finally get to see it with all of the upholstery and driving it is always a thrill!” Hollenbeck still loves the business, even though the work schedule is often insane. “It’s tedious work with 10-14 hour days, but it sure beats collision repair, that’s for sure,” he said. “When you fix a car, you just return it back to what it was before. But when you rebuild a car, it’s like creating a whole new vehicle, and that’s why I love it. Getting in shows, winning awards and being featured in magazines is nice, but in the end, I am taking something old and making it look spectacular and that’s why I have not had a vacation in 17 years and don’t have any planned anytime soon.”

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Shop Strategies

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

Hawaii Collision Center Works Hard for Customers While Living in Paradise with Stacey Phillips

On the Hawaiian island of O’ahu, The Tony Group dealership and collision center were founded by Tony Masamitsu more than 30 years ago. The family-operated company is currently owned by his son Stan and employs close to 400 at the dealership and 17 at the collision repair shop. The Tony Group Autoplex includes four stores: Honda, Nissan,

Located in Waipahu, Hawaii, The Tony Group Collision Center was founded more than 30 years ago

Hyundai and Volkswagen, as well as a full-service car wash. Autobody News recently spoke to Sabrina Dela Rama, manager of Tony Group Collision Center, about the body shop, which is located in Waipahu.

the ‘90s. We used to be able to fix cars and still make a small profit; now it’s fixing cars to break even. We have found that the insurance company’s DRP has made it difficult to do a correct repair as they question every procedure. We decided to get away from DRP relationships, but are currently part of two because they are very supportive of corrective repairs and they are fair when it comes to rates. Neither use aftermarket parts and one doesn’t even use recycled parts. First Insurance Hawaii is one of the best ones I like working with; the staff is awesomely fair. Although we live in Paradise, we have the same issues with insurance companies suppressing rates by an invisible survey they project they have and limiting payments, the strong push of non-crash-tested aftermarket parts and steering. We want to change legislation and hopefully with all the media and support of the industry, our council members will see what the big billion-dollar companies are doing to hurt the consumers.

What is your role at the shop Q: and what is it like operating in Are you part of any associaQ: tions? Hawaii? I am the collision center manI am the new 2017 president of A: ager and what can I say but that A: the Automotive Paint and Body it’s paradise! However, it’s very exAssociation of Hawaii (ABPAH),

pensive to live in Hawaii. Our cost of living is the highest in the nation but our pay is below average in the state. Our rates are determined by the billion-dollar insurance companies that control what and how much they will pay for a repair and the rates. Many times, parts are on back order and they could take five to seven days to arrive. Sometimes, the humidity plays a factor in the curing of the paint. The land and space in Hawaii are also very expensive so we are always fighting for room or space, but mostly we find it challenging to try and survive in this insurance-run business.

Is the body shop part of any Q: DRP programs? Being on a DRP program nowaA: days isn’t what it used to be in

which is the oldest active association in Hawaii. The mission of ABPAH is to provide our members with the tools and education necessary to attain a high level of expertise, allowing the

Sabrina Dela Rama, manager of Tony Group Collision Center, said the body shop prides itself on following the manufacturers’ procedures when repairing every vehicle

growth and prosperity of our members. We are looking into legislation and hopefully, we can start to move the industry on the right path.

44 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

ABPAH recently received a certificate from Senator Mike Gabbard in December for being ‘…dedicated to educating their members, providing professional results, and getting their customers back on the road in vehicles we can be proud of.’

How do you stay current with Q: new technology and procedures? It’s a combination of researchA: ing, talking to our peers and other shops, manufacturers, ALLDATA

and I-CAR. Billy Walkowiak and Larry Montanez have really helped educate me about this industry. Tim Ronak from AkzoNobel helps us with our goals and we have an upcoming seminar planned in Florida. Richard Doyle, the fix operations director for the Tony Group Autoplex who built our collision center, the carwash and the Hyundai store in Hawaii, and I fly out two times a year to attend classes and

seminars for collision education. We learn what other dealership body shops are faced with and what challenges

Tony Group Collison is a Honda Pro-First shop, and is also certified by Nissan, Hyundai and Chrysler

they have overcome. There’s so much learning to do and it seems to be an ongoing process.

Congratulations on the recent Q: awards the Tony Group has received for consumer satisfaction. What

is the importance of excellent customer service? See Hawaii Collision, Page 48

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Axalta Coating Systems Introduces Voltatex® 7145A and Alesta® BK08 20 Gloss

Axalta Coating Systems recently introduced Voltatex® 7145A, a new generation of its THEIC-modified polyester wire enamel series. According to the company, the new product offers improved application on both horizontal and vertical application lines as well as on high-speed enameling machines. Voltatex 7145A is suitable for magnet wires used in everything from electrical motors, pump motors and refrigeration equipment, to transformers and ballasts for fluorescent lamps. “The advanced properties of Voltatex 7145A make a difference for our partners in the magnet wire industry,” said Andreas Vendler, Global Product Manager for Axalta’s Energy Solutions business. “Conductors coated with Voltatex 7145A and polyamide-imide (PAI) added as a top coat combine to provide high thermal stability, excellent mechanical properties, good chemical resistance and a high level of flexibility with outstanding application properties.” The new wire enamel can be applied by both convection and recirculation air ovens and is also formulated for application on dies. It is

approved and listed by Underwriters Laboratories (UL). The company also recently introduced Alesta® BK08 20 Gloss, a new semi-matte powder coating designed to offer an extremely smooth appearance while providing exceptional weatherability on a variety of surfaces.

“Our customers have requested a very smooth, low gloss polyester, which exhibits a consistent appearance and affords excellent abrasion and corrosion resistant properties,” said Craig Dietz, Axalta Market Product Manager. “The addition of this product illustrates our commitment to meeting our customers’ needs.” Additionally, Axalta Coating Systems recently celebrated the sale of its 40,000th spectrophotometer at the Specialty Equipment Market As-

Collision Repair Education Foundation Requests Year-End Product Donations, Safety Kit Sponsorship

The Collision Repair Education Foundation is requesting year-end in-kind donations of products, tools, equipment and spare parts that will be distributed to high school and college collision school programs. These taxdeductible donations will provide a great start to the spring school semesters during a time when instructors are facing limited program budgets and expected to graduate well-trained and productive entry-level staff for industry employment. Another year-end opportunity for support includes companies sponsoring student safety kits for local high school and college collision programs. For $50 per student, each safety kit includes a Cintas work shirt, work pants, safety glasses, ear plugs, and a disposable dust mask. Companies that sponsor at least (10) safety kits will have their corporate logo added to the work shirts, that the students would proudly wear around the school and local community. The Collision Repair Education Foundation would arrange a time for the sponsoring companies to present the safety kits to the local collision school students when they begin their spring school semester after the New Year.

Collision Repair Education Foundation director of development Brandon Eckenrode noted, “The holidays would come early to collision school instructors with local industry companies donating products, tools, equipment, and spare parts for their programs. Also, we have heard that the student safety kits transformed both the professional appearance and attitudes of the collision students as they look and feel like working professionals within the industry. Plus, as companies can sponsor these safety kits for collision school programs near them, they can directly see how their support is making a difference and can personally hand these kits out to the students at the beginning of the spring semester. We invite the industry to help the Education Foundation end the year on a strong note and getting in contact with us on either of these two year-end opportunities.” Industry members interested in making year-end product donations and/or sponsoring collision student safety kits for local high school and college collision school programs should contact Eckenrode at Brandon .Eckenrode@ed-foundation.org or 847463-5244.

46 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

sociation tradeshow in Las Vegas, Nevada. Mike Carr, Axalta President – North America and Michael Gogoel, BYK-Gardner USA President, unveiled a commemorative Acquire™ Plus EFX spectrophotometer painted in Axalta’s North American Automotive Color of the Year 2016 – Brilliant Blue. BYK-Gardner, a global leader in the field of measuring color and appearance and testing physical properties of plastic, coatings and cosmetics, manufactures Axalta’s spectrophotometers. “We’re proud to have worked with Axalta for many years to develop industry leading technologies that create value for Axalta and its customers,” said Gogoel. “By using Axalta color matching solutions, body shops have less rework and higher throughput, and the car owner gets a repair that is a perfect color match. We look forward to continuing our partnership with Axalta, and working together to develop new generations of color matching solutions that continuously improve profitability and customer satisfaction.” For more information, visit www .axalta.us/powder.

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Continued from Page 35

Retro News

insurance regulation does not come with duplicative or layered regulatory requirements.” In letters to the FIO, both Liberty Mutual and the Property Casualty Insurers Association say federal involvement is needed to combat increasingly tough requirements by European governments for financial firms doing business internationally. – As reported in CRASH Network (www.CrashNetwork.com), January 2, 2012. Five years later, within weeks of last November’s election, the National Association of Professional Insurance Agents (PIA) called on the Trump administration and Republicancontrolled Congress to scrap the FIO. “With Congress poised to significantly roll back key provisions of the DoddFrank Wall Street Reform and Consumer Protection Act, we ask that they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.”

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Collision Repair Education Foundation and AkzoNobel Announce Winners of Sustainability Challenge Grant The Collision Repair Education Foundation (CREF), in collaboration with AkzoNobel Vehicle Refinishes North America, has announced the five schools being recognized for efforts to advance sustainability within their respective automotive and collision repair programs. As a result of combined student teams and faculty

cation Foundation’s annual industry reception at SEMA. The recipients include:

Freedom High School (Freedom, WI)

Minot High School-Magic City Campus (Minot, ND)

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applaud AkzoNobel for involving the students and schools in such an important topic.” The program, initiated by AkzoNobel in an effort to support one of the core principles of the global

Norwalk High School (Norwalk, CA)

Steel Center AVTS (Jefferson Hills, PA)

derived submittals, each school will receive funds from the Sustainability Education Challenge Grant to implement their proposals and report on the success of their project. Schools from around the country submitted applications for this grant. Applications were evaluated by the Collision Repair Education Foundation Selection Committee on the ability to expand awareness of sustainability, advance continuous improvement, and create a positive impact within the local community. The recipients were announced at the Collision Repair Edu-

Thomas Edison CTE High School (Jamaica, NY)

Clark Plucinski, executive director of the Collision Repair Education Foundation, stated, “We are very proud to partner for the third year with AkzoNobel on the Sustainability Challenge Grant. Students—who will be the future of the collision industry—need to be informed and engaged on the topic of sustainability. While they are still in school is the best time to start the conversation, as it will be an important one for the industry and for the entire planet. We

corporation, was introduced in 2014. According to the company, the goal was to create awareness and educate students—with intentions of seeking careers within the collision repair industry—on the growing global imperative of sustainability and its ability to make a positive impact in all facets of life today and, more importantly, for the future.

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HDDA: Heavy Duty, the community of the Auto Care Association that is dedicated to the advancement of the heavy duty aftermarket, has sponsored a study conducted by Pricedex Software on the feasibility of developing product information standards for heavy duty vehicles. The study, which included participation from HD experts from all facets of the industry, indicates that there is an opportunity to create a “superset” of data that will streamline product information communication for an industry currently using multiple data management methods. The study details key findings in how the industry already manages data and concludes that a data standard is possible through leveraging those methods that currently exist and the incorporation of other data standards best practices. Collaboration will be a central tenant to developing the data “superset” in order to achieve the goal of a robust standard that provides the heavy duty industry withThe rich data content. source for timely

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 47

U.S. House Subcommittees Hold Hearing on Connected Devices On Nov. 16, the U.S. House Committee on Energy and Commerce’s Subcommittee on Communications and Technology, along with the Subcommittee on Commerce, Manufacturing and Trade held a joint hearing titled, “Understanding the Role of Connected Devices in Recent Cyber Attacks.” The hearing addressed the distributed denial-of-service cyberattack that occurred Oct. 21 and continued the Committee’s series on emerging technologies. Witnesses included: -Dale Drew, senior vice president, chief security officer, Level 3 Communications

-Kevin Fu, CEO, Virta Labs, and associate professor, Department of Electrical Engineering and Computer Science, University of Michigan -Bruce Schneier, adjunct lecturer, Kennedy School of Government, Harvard University, and Fellow

During the hearing, members and witnesses alike discussed the opportunities and threats posed by connected devices. Schneier reminded the com-

mittee that the term “computer security” now equates to “everything security.” He also warned against the inclination of issuing one-size-fitsall legislation. Schneier said, “If we want to secure our increasingly computerized and connected world, we need more government involvement in the security of the ‘Internet of Things’ and increased regulation of what are now critical and life-threatening technologies. It’s no longer a question of if, it’s a question of when. The Internet now affects the world in a direct physical manner. The Internet of Things is bringing computerization and connectivity to many tens of millions of devices worldwide. We are connecting cars, drones, medical devices and home thermostats. What was once benign is now dangerous.” Rep. Anna Eshoo, D-Calif.— ranking member of the Communications and Technology Subcommittee—agreed with Schneier and said, “The Internet of Things offers great potential for innovation, but recent attacks raise troubling questions about the security of Internet-enabled devices and their potential to be used as weapons by cyber attackers.” Eshoo also suggested incorporating cybersecurity guidance into

PartsTrader® and Fix Auto USA Agree on Parts Sourcing and Ordering

Fix Auto USA has signed an agreement for PartsTrader to be a recommended partner. PartsTrader’s platform will now be leveraged by Fix Auto’s independently owned and operated body shops for the direct benefit of their insurance carrier and vehicle owner customers. “Collision repair facilities using the PartsTrader platform to search and compare for parts within their mar-

ketplace can access more competitive quotes and significantly reduce their return rates,” said PartsTrader CEO Rob Cooper. “Fix Auto owner-operators will not only gain margin on parts purchases, benefit from accurate parts shipments, and improve their shop’s bottom line, they’ll be able to deliver increased value to their insurance partners by reducing cycle time, improving severity, and ultimately delivering a better experience to vehicle owner customers.” According to the company, with

increasing utilization of the Parts Trader platform, Fix Auto will begin to see greater efficiencies emerge as the workflow is standardized across the network. Fix Auto locations will gain access to PartsTrader’s supplier network as well as data analytics based on actual quotes and orders in a body shop’s specific market. This information is updated each time a parts-related transaction occurs and can be used by members as factual documentation to support purchases. “Entering into a partnership with PartsTrader is exciting since it allows our Franchise Locations continued operational improvements and our customers the opportunity to realize these efficiencies,” said Fix Auto president and COO Paul Gange. “Fix Auto is committed to help members succeed by making available to them the best possible tools and the PartsTrader suite stands as the latest example of that commitment.” For more information, visit partstrader.us.com. or www.fixauto usa.com.

48 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 44

Hawaii Collision

national infrastructure legislation. Despite differing opinions on the methodology, members from both parties agreed that the security of connected devices must remain a priority. Members and witnesses were largely in agreement about the need for targeted security regulation. However, Republican members of the subcommittees stopped short of endorsing a new, dedicated agency. The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

Customer service is very important as they are who we A: work for. We work hard to ensure a

safe and corrective repair, to follow manufacturers’ procedures and make sure every customer has a fair dealing with us and their carrier or the insurer.

Tony Group Collison is a Honda ProFirst shop, Nissan, Hyundai, Chrysler certified collision center and I-CAR Gold class. We follow strict manufacturer procedures and we believe that customers’ safety is our NUMBER 1 priority. For more information, visit http:// www.tonygroupautoplex.com/ or email Sabrina Dela Rama, manager of Tony Group Collision Center, sdelarama@ tonygroup.com.

For more information, visit www .ASAshop.org or visit ASA’s legislative website at www.TakingTheHill .com.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 49

Young Auto Care Network Group (YANG) Membership Surpasses 1,000 The Young Auto Care Network Group (YANG) of the Auto Care Association announced that its membership has surpassed 1,000, surging since the group’s inception in early 2014.

“Growing the Young Auto Care Network Group to 1,000 members during 2016 was one of my goals as chair of YANG, and I could not be more proud to see it come to fruition,” said Alena Van Cleave, chair, YANG, A & Jay Automotive, Inc. “This milestone could not have been accomplished without the support of our valued sponsors as well as our tremendous staff and volunteer leaders.” YANG continues to offer industry professionals under the age of 40 opportunities to grow through webinars, educational conferences and in-

dustry-wide networking events. The group completed another round of successful events at AAPEX 2016 and continues to evolve its member offerings. “Hitting 1,000 members in less than two years is an amazing achievement that speaks directly to the energy and enthusiasm of our young executives,” said Bill Hanvey, president and CEO, Auto Care Association. “Our next generation of leaders wants to learn, to be heard and to contribute directly to the long-term success of our amazing industry. We could not be prouder of the staff and volunteers who were responsible for achieving this tremendous goal.” “Going into 2017, I am confident our membership will continue to experience the value of YANG through participation in our Regional MeetUps, annual Leadership Conference and Young Professionals Program during AAPEX 2017,” said Van Cleave. “This is only the beginning; YANG has a long and extremely promising road ahead of it.” Throughout 2017, YANG will

continue running its educational webinar series and expand its Regional Meet-Up program. YANG will also offer the YANG Leadership Conference on May 5-6, 2017 in San Antonio, Texas, in conjunction with the Auto Care Association’s Spring Leadership Days. This conference is a collaborative learning event designed for young industry professionals under the age of 40. It provides a forum to enhance leadership skills, sharpen global perspective of the auto care industry and develop new relationships withwww.autobodynews.com peers. Registration will open in January 2017.

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For more information, visit www.autocare.org/yang.

“Because each state has a different mix of insurers, the Report Card allows repairers to grade insurers specific to their state,” Yoswick said. “To my knowledge, that makes this different than anything done before on a national basis. We will be collecting data on more than 120 different insurers across the country, not just the usual ‘Top 10.’ We want consumers to know, for example, if some smaller, regional insurer that may not run ads on TV constantly is really great at taking care of its customers so that drivers may consider that at renewal time.” The “Insurer Report Card,” open only to collision repairers, can be completed in as little as three minutes (though shops also have an opportunity to spend additional time to explain why they gave each insurer the grade they did), and all individual shop identification information will remain confidential. Shops that complete the Report Card and provide optional contact information will be sent results at no charge once they are compiled. Shops can click here (www.Crash Network.com/irc) to grade the insurers. For more information about the weekly CRASH Network bulletin, visit www.CrashNetwork.com.

50 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

BASF has completed its acquisition of Albermarle’s global surface treatment business, Chemetall. Through this acquisition, BASF’s Coatings division expands its portfolio to become a more complete solutions provider. According to the company, BASF combines its know-how in chemistry and coatings applications with Chemetall’s market-leading expertise in surface treatment. The combined businesses will benefit from each other’s global infrastructure, scale and market access, driving new growth opportunities by offering an unmatched solutions competence customers. “We The sourceto for timely are extending a warm welcome to our information that every new colleagues,” said Markus Kamibodyofshop eth, president BASF’sneeds! Coatings division. “The acquisition of Chemetall allows us to significantly expand our CALL 800-699-8251 market. By combining the expertise and innovation power of two global market leaders, we will accelerate inMail Subscription novation and make our customers even more successful.” Chemetall develops and manufactures customized technology and system solutions for surface treatment. Their products protect metals from corrosion, facilitate forming and machining, allow parts to be optiRegister mally prepared for the painting process and ensure proper coating adhesion.

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CRASH Network Launches “Insurer Report Card”

Collision repair professionals now have a unique opportunity to grade the performance of the insurance companies in their state with the launch of CRASH Network’s “Insurer Report Card.” “Insurer rankings based on surveys of consumers offer one, somewhat limited perspective on those companies’ performances,” John Yoswick of CRASH Network said. “Those consumers on average have an auto claim once a decade. But shop owners, managers and estimators interact with these companies every day. No one else is in a better position to know which insurers demonstrate an understanding of, and commitment to, quality repair for their customers. We think consumers should know that, too.” The “Insurer Report Card” gives collision repairers the ability to share their unique insight by grading each insurer based on how well those carriers’ policies and practices ensure quality repairs and customer service. By giving the insurers a grade from “A+” to an “F,” shops can help CRASH Network bring this information to consumers so they know which insurers will treat them the best—and which may have some room for improvement—when they have a claim.

BASF Completes Acquisition of Chemetall

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Sherwin-Williams Automotive Finishes 2017 First Quarter Training Schedule Announced

Sherwin-Williams Automotive Finishes has announced its first quarter training schedule starting January 23, 2017 through March 20, 2017 to be held at its training centers across the country.

According to the company, these training sessions provide participants with the skills needed to succeed in the automotive collision repair industry. Shop owners, managers and painters will learn through a combination of classroom, web and hands-on training settings. The following courses will be offered during the first quarter of 2017: ● Painter Certification

● Color Adjustment and Blending

● AWX Performance Plus™ Waterborne Refinish System Painter Certification

● Ultra 7000® Refinish System Painter Certification

“As a shop owner, you want to be the source where customers come for expert and timely repairs, while still maximizing profitability by getting vehicles through the facility in a highly efficient manner,” said Rod

of any shop. That’s why we offer courses for owners and their employees to gain the additional knowledge required to be successful in this everchanging industry.” Further details regarding the 2017 first quarter schedule for training centers, dates, specific course descriptions and locations, are listed below:

Sherwin-Williams Automotive Finishes 2017 First Quarter Training Schedule

Habel, Sherwin-Williams Automotive Finishes Director of Training Operations. “Sherwin-Williams understands that it takes more than just great paint to maximize the potential

For more information about Sherwin-Williams Automotive Finishes courses, visit www.sherwin-automotive .com/refinish/training-support/ or call 1-800-SWULTRA (1-800-798-5872).

Auto Parts Maker Transtar Files for Chapter 11 Bankruptcy Auto parts maker Transtar Holding Co. filed for bankruptcy after reaching a deal with its senior lenders to swap their debt for ownership of the company. The company filed for chapter 11 protection in U.S. Bankruptcy Court in New York with a “prepackaged” chapter 11 plan after garnering support from its creditors to support the restructuring proposal. Such preapproved plans are becoming increasingly popular with companies and investors who want to minimize the time and expense of chapter 11 balance sheet restructuring. The plan calls for the senior lenders, led by Silver Point Capital, to swap about $425 million in debt for 100% of the equity in the reorganized company. Joseph Santangelo, Transtar’s chief financial officer, blamed the company’s chapter 11 filing on the “higher than anticipated difficulty” of integrating its newly-acquired ETX’s business, an aftermarket transmission parts maker, into the company.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 51

National Auto Body Council Awards Recognize Individuals Who Exemplify Professionalism and Integrity of Collision Industry Three industry professionals whose exemplary efforts and actions in 2016 best illustrate the vision and mission of the National Auto Body Council (NABC) were recognized recently at SEMA with the organization’s prestigious Award of Distinction, Body Shop Image Award, and Excellence in Community Service Award. According to the Council, the goal of the NABC awards is to recognize auto body shops and individuals that exemplify the professionalism and integrity of the collision industry. ● The Award of Distinction, presented to Gerald Wicklund of CARSTAR Wicklunds Collision in Liberty, Missouri, celebrates selfless acts by collision industry professionals that benefit others in their communities. Wickland has spent his entire life in collision repair and dedicated much of his time giving back to both the industry and his community. For the past 10 years, he has hosted an annual Military Appreciation Celebration, an extravaganza which includes dinner and a complete USO-style show. More than 130 veterans, active duty service members, law enforcement and first responders attended this year’s event, which also raised donations for Honor

Flight, a non-profit organization that honors America’s veterans by transporting them to Washington DC to visit and reflect at their memorials. ● The Body Shop Image Award, presented to CARSTAR Macon in Georgia, highlights facilities that have had a beneficial impact on their communities through building and design improvements.

In May, CARSTAR Macon moved into a new state-of-the-art facility and rebranded its business. Formerly known as CARSTAR Preferred Collision, shop owner Walter Lee upgraded from an 8,500 sq. ft. facility to a modern 23,000 sq. ft. building that showcases the sophistication of today’s body shops. The shop features a larger, up-to-date production area and convenient, spacious reception area while retaining the shop’s warm, welcoming feel. ● The Excellence in Community Service Award, presented to Kathy Mello of TGIF Body Inc. in Fremont,

Hyundai Selects OEC for Collision Parts Ordering and Fulfillment

OEConnection LLC (OEC), the parts ecommerce technology leader for original equipment manufacturers’ (OEM) distribution networks, announced today that Hyundai Motor America has added CollisionLink to its Hyundai Go Genuine Collision Conquest program.

California, recognizes outstanding charitable efforts and volunteerism. Mello’s past and current volunteerism includes mentoring at-risk youth and disabled adults at Kainos Home Training Center and Bridges Intervention Services, serving on the boards of the Alameda County Work Investment as a volunteer in one of the business seats and the Regional Occupational Centers in Mission Valley, Eden & Alameda College. Her volunteerism extends in to the collision repair industry, serving on the Boards of WIN, the California Autobody Association, East Bay Chapter of the California Autobody Association and as a founding member of the Assured Performance Co-op Board. “Each of these award winners have made a positive impact in our collision industry and in their communities,” said Marie Peevy, NABC Awards Chair. “It was an honor to recognize this elite group of industry leaders who embody the spirit and ideals of each of NABC’s awards categories. Their efforts are wonderful examples of how our auto body shops and collision industry professionals are making a positive difference in local communities across the country.”

FinishMaster Acquires Autobody Supply Co.

FinishMaster, Inc., a subsidiary of Uni-Select Inc., has announced that it has completed the acquisition of substantially all of the assets of Autobody Supply Company, Inc. This acquisition increases FinishMaster’s footprint with the addition of 9 locations in central and southwestern OH, including Columbus, a top 30 US metropolitan area. Since its founding in 1959, ABS has been a family-owned business focused on discovering the needs of body shops through partnership and open dialogue. ABS provides comprehensive solutions for their customers including products, services, and full support of equipment sales, maintenance, installation, and repair. “We are excited to welcome more than 60 new team members who share our value of partnership and unparalleled service,” stated Steve Arndt, president and chief operating officer of FinishMaster. “Together, we will continue to support our customers by generating outstanding value through innovative solutions.” “In addition to bringing further expertise and knowledge to our growing team, this acquisition expands our coverage in order to better serve customers in a key Ohio market,” added Henry Buckley, CEO of Uni-Select.

The Right Parts. A Perfect Fit.

crease their OE part sales while also improving order processing efficiency and customer satisfaction.” Hyundai represents the twentysecond automotive dealer network in North America to use CollisionLink to facilitate their parts marketing program. With the addition of Order Genuine Mazda Parts from these Parts Specialists in your area

The CollisionLink parts ordering and fulfillment solution will allow Hyundai’s network of dealers to access competitive pricing on eligible OE parts and expand their market penetration in the U.S. By the end of the first quarter, 2017, Hyundai dealers will have access to the Hyundai Go Genuine Collision Conquest program via CollisionLink. “We are excited to bring Hyundai on board and to assist with the Hyundai Go Genuine Collision Conquest program,” said Bill Lopez, OEC vice president & general manager, Collision. “With our CollisionLink solution, Hyundai dealers can compete more effectively and in-

Hyundai, 99% of all consumer vehicles on the road in the U.S. are now supported by CollisionLink, and OEM parts marketing programs managed through CollisionLink now cover 3 out of every 4 U.S. consumer vehicles on the road. “CollisionLink is the missing puzzle piece. It will give us more complete coverage in the market,” said Frank Ferrara, executive vice president, Customer Satisfaction, Hyundai Motor America. “It will allow our dealers to offer their customers more competitive pricing and sell more Hyundai OE parts.” For more information, visit www .oeconnection.com.

52 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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Autologic Enters into Licensing Agreement with Volvo for Diagnostic Data Autologic Diagnostics, the provider of the world’s first and only fully integrated cloud-connected vehicle diagnostic support solution, has announced that it has entered into a licensing agreement with Volvo Car Corporation. Under the agreement, Autologic will have direct access to Volvo diagnostic data and technical information, enabling the provision of a comprehensive repair and maintenance on models from 2000 to current year to date through Autologic’s Assist cloudbased, fully integrated diagnostic solution. The licensing agreement, which covers the United Kingdom, North America, Canada, and the European Economic Area (EEA), will provide customers within these territories the benefit of receiving guaranteed genuine Volvo data, thus ensuring improved aftermarket continuity of safe, accurate and effective repairs. According to the company, Autologic Assist’s suite of capabilities uses state-of-art technology to combine a superior diagnostic (AssistPlus) device with real-time access to

its award-winning Fault 2 Fix Team of dealer-trained Master Technicians providing vehicle diagnostic support. Autologic Assist simultaneously integrates expert knowledge and service, innovative software and a multi-faceted touch screen device, helping ensure that vehicle issues are diagnosed correctly the first time. “The arrival of Volvo data coincides with the adoption of our new centralized Autologic knowledge database (ADX), which has been developed specifically to secure VM licensed data and repair and maintenance information (RMI),” explained Mark Stamp, Autologic chief technology officer. “The licensed Volvo package will be available in January 2017 for customers to download directly to their AssistPlus device, ensuring that independent repair shops gain access to the latest validated information as provided to dealers. The Volvo data will feature heavily in the new customer journey, on a seamless route to gain accurate, secure, and safe diagnostic information, with access to our award-winning Fault 2 Fix Team pro-

viding Vehicle Diagnostic Support.” The new agreement displays a significant investment by Autologic as it moves towards developing stronger direct relationships with vehicle manufacturers for the provision of genuine data. Jeremy Fry, Autologic chief executive officer, added, “As the only provider of a cloud-based, vehicle-connected, fault-to fix-solution, we have been vocal in advising the aftermarket sector of the momentous changes and challenges ahead, based on, among other industry influences, the Right to Repair Act, which requires vehicle manufacturers to provide the same information to independent repair shops as they do for dealers. The considerable investment in licensed data, by Autologic, accentuates our strategy for ensuring aftermarket repair shops can, through Autologic, easily access accurate data and expert vehicle diagnostic support, so that ultimately, they can find faults and fix cars faster. The Volvo agreement further cements our pioneering vision for aftermarket diagnostics.” For more information, visit www .autologic.com.

www.autobodynews.com

CARSTAR Launches Redesigned Website at CARSTAR.com

CARSTAR Auto Body Repair Experts has announced the launch of the newlyredesigned CARSTAR.com. According to the company, the new site has a sleek and simplified layout to provide customers with an easier browsing experience from their laptop, tablet or cell phone. “When today’s consumers need collision repair service, they want it at their fingertips,” said Michael Macaluso, president of CARSTAR North America. “We have seen our website traffic evolve to a more and more mobile customer, and we have redesigned CARSTAR.com to provide a simplified, dynamic site that can deliver accident assistance whenever and wherever they need it.” One of the biggest changes consumers will notice is CARSTAR.com is now a responsive website that is user friendly on all on all devices – desktops, tablets and phones. With 50 percent of the site’s users coming from mobile devices, consumers are now able to utilize all of the capabilities on CARSTAR.com from their computer or their phone. The site will now reformat itself for easy viewing and navigation based on screen size without compromising the site’s integrity. For more information, visit www.CARSTAR.com.

The source for timely information that every WIN Announces 2017 Educational Conference body shop Location needs! CHECK IT OUT!

The Women’s Industry Network has announced that the 2017 Educational Conference is scheduled to take place in Denver, CO Monday, May 8th through Wednesday, May 10th, 2017.

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town hotel has been selected to host the event. Located in the vibrant LoDo District, the venue will provide plenty of opportunities for attendees to experience many offerings of the Mile-High City. “Last year, we enjoyed our highest number of attendees at the stated Be Seen by conference,” Our Readers! Wendy Rogers, Co-Chair of the CALL Advertising at: Conference Planning Sales Committee. “With this exciting venue in Denver, we hope to exceed that number.” In addition to the professional advertising@autobodynews.com development programming, the Educational Conference will once www.autobodynews.com again feature the Most Influential Women (MIW) and scholarship awards as part of the celebratory

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gala dinner, as well as the Annual Scholarship fundraiser. ProCALLWalk 800-699-8251 gram specifics will be published as they become available. “The 2017 WIN Educational Mail Subscription Conference marks the 11th year of successful collaborations among WIN volunteers, members and sponsors,” stated Petra Schroeder, who serves as WIN’s Chair. “Our goal is always to provide the WIN membership and the collision industry a Register Y highly professional educational experience centered on professional networking, advancing business acumen and growing collision industry connections. It’s exciting to see the plans underway by WIN member volunteers to deliver quality conference content, honor women in the industry, and connect WIN Register Yo members.”

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 53

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Crashmax Takes Home 2nd Consecutive Sales Leader Award

Crashmax was named VSG Collision Sales Leader for the second consecutive year at Chief’s annual distributor meeting on Oct. 31 in Las Vegas. Interstate Marketing was recognized for

Chief distributor Crashmax has earned the VSG Collision Sales Leader Award for the second year in a row. Accepting the award at Chief’s annual distributor meeting on Oct. 31 were Gary and Ann Schaberg. From left to right, John Cardell, Chief Eastern Division sales manager, Gary Schaberg, Ann Schaberg, and Mike Cranfill, vice president of global collision and new business development for Vehicle Service Group (VSG)

the highest percentage sales growth from 2014 to 2015. Professional Collision Equipment, serving New Mexico and Texas, was honored with the Exciting Newbie award. “Chief distributors are our front line, providing our customers with

the products, service, training and support they need to properly repair collision-damaged vehicles every day,” said Lee Daugherty, director of North America collision sales for Chief parent company Vehicle Service Group (VSG). “We’re very proud of our unmatched network of collision industry professionals, and honored to recognize some of our top performers.” The awards are based on full-year 2015 sales results.

2015 Sales Leader 1. Crashmax (serving Delaware, Maryland, New Jersey, Pennsylvania and Virginia) 2. Advanced Equipment (serving Alabama, Georgia and Florida) 3. Collision Tools (serving New England)

Highest Percentage Sales Growth 2014 to 2015 1. Interstate Marketing (serving Kentucky, North Carolina, South Carolina and Tennessee) 2. Advanced Equipment 3. Crashmax

Chief also recognized Walter Wiezorek of Walter Equipment for his 35 years of service and leadership in the industry.

CAPA Introduces CAPA 701 Mirror Standard

The Certified Automotive Parts Association has announced that its Technical Committee has approved the CAPA 701 Standard for the certification of aftermarket exterior mirrors and mirror components. This Standard specifies the certification requirements for passenger

Technical Consulting, Inc. and Vice Chair Nick Scheid of LNS & Associates. The Committee, responsible for CAPA’s Standard Development and approval, includes collision repairers, insurers, part distributors, manufacturers, and other industry experts.

and driver side mirror assemblies, mirror glass, mirror housings and covers. The CAPA 701 Standard specifications include compliance to applicable sections of Federal Motor Vehicle Safety Standard No. 111, Rear Visibility as well as requirements for performance testing, material composition, dimensions, appearance, function, construction and retaining features, and Vehicle Test Fit (VTF). The CAPA 701 Standard was approved this month by a vote of CAPA’s Technical Committee, led by Chair Rod Enlow of RENlow Auto

“Ensuring that all aspects of the collision repair industry has input into CAPA’s Standards, this comprehensive assembly of industry experts demonstrates CAPA’s industry-inclusive and fully public nature,” said Debbie Klouser, CAPA’s Director of Operations.

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GAAS, University of the Aftermarket Foundation Unite

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Representatives from the Global Automotive Aftermarket Symposium, Inc. (GAAS) and the University of the Aftermarket Foundation have worked closely to bring the two organizations together. GAAS will dis-

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solve as a non-profit organization and donate its net assets to the Foundation. An official confirmation vote was held during the recent University of the Aftermarket Foundation annual board of trustees meeting. Established with the support of Mort Schwartz, MAAP and the late Jack Creamer, GAAS was formed to raise funds for aftermarket scholarships and educational initiatives and thrived under the leadership of Schwartz, David Caracci, MAAP and Dennis Welvaert, MAAP. Due

to an ever more crowded industry events calendar, leadership of the longstanding organization decided to stop holding its annual symposium in 2015 and focused its attention on Automotive Central, its scholarship program led by industry veteran Pete Kornafel, MAAP. Kornafel will continue to administer the scholarship program as chairman of the University of the Aftermarket Foundation education and scholarship committee. “Because GAAS and the University of the Aftermarket Foundation share a similar mission, and the foundation has been the largest source of funds for aftermarket scholarships, it only made sense to join forces to achieve a common goal,” said Tim Lee, MAAP, chairman of the University of the Aftermarket Foundation. “By donating its net assets to the University of Aftermarket Foundation, the proud legacy of GAAS will continue on. We thank Mort, Dave and Denny for 20 successful years of leadership and applaud Jack and Mort for their vision. Together, we begin the next chapter of their mission.” For more information, visit www.UofAFoundation.com.

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