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PartsTrader Costs “$800 in Unseen Business a Month” Says Michigan Parts Wholesaler by Melanie Anderson
Tom Kellogg—the wholesale director for the Zeigler Automotive Group’s 13 franchises in Grandville, MI—has been using PartsTrader the past several months as one of the first test markets in State Farm’s PartsTrader program. Kellogg has been with Zeigler since 2003 and in the industry since 1975. He says he wishes programs like PartsTrader would just go away. “We all know that PartsTrader isn’t the greatest thing out there,” said Kellogg. “I don’t know what I am
going to do to stop it, because from what I understand, it’s pretty much here to stay. We’ve got to figure out how to work around it. Not enough writing was done on it. It’s just going to be the pathway of all things in the future to come. It’s PartsTrader today, and tomorrow it’s going to parts for you, parts for them, and pretty soon there’s a plethora of third-party people involved in our business,” he said. “The ‘beautiful part’ is they are going to allow me to do business with the same people I’ve been doing business with for the past 10 years and See PartsTrader Costs, Page 22
California Department of Insurance Approves New Aftermarket Part Regulations, Onus on Insurers
released by CDI in June 2012, are to go into effect on January 30. Insurers will be required to comply on and after March 30, 2013. “The amendments build on existing protections by requiring insurers to settle automobile insurance claims using repair standards described by the Bureau of Automotive Repair, and not the insurer’s own standards of repair,” said Commissioner Jones. “This also places greater accountability on the insurer when they require use of an aftermarket replacement part so that damaged automobiles are repaired properly and safely.” See Calif. Aftermarket, Page 8
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California Insurance Commissioner Dave Jones announced that the Office of Administrative Law (OAL) approved amended regulations submitted by the California Department of Insurance (CDI) regarding the use of non-original equipment manufacturer (OEM) replacement crash parts, generally known as aftermarket parts. These regulations were sought by Commissioner Jones to further protect California consumers from physical and financial harm caused by defective or inferior aftermarket parts and to enhance insurer accountability in the claims process, said CDI. The new regulations, originally
VOL. 31 ISSUE 2 FEBRUARY 2013
Greg Coccaro Settles with Progressive Insurance
After eight years of battling each other in court, Progressive Insurance and Greg Coccaro, owner of North State Custom in Bedford Hills, NY, have reached a settlement ahead of a Jan. 28 trial date. Coccaro said he could not discuss the specifics of the settlement agreement, but he did express relief that he could finally put this behind him now. “After eight years, it’s pretty weird not having to think about this anymore,” said Coccaro. “I basically can now have my life back and spend a little more time working on my business. You would have to go through the stress that I did to understand it. Once it was over, I still couldn’t stop thinking about it. It took me two to three weeks to get out of ‘legal mode.’ It never left me night or day for those eight years. It was very difficult for everyone involved, but we did what we did, stood up and didn’t cave. “I think a lot of good came out of the whole thing for the industry in a lot of ways. Anyone who has followed this can understand why. I’m very glad it’s over, and so is my family. It was a
little difficult to live through some of the more stressful times, but I’m back and trying to get back to myself and how I was before.” Asked what advice he has to other shops considering legal action against insurers, Coccaro said it depends on the circumstances. “One has to think long and hard before taking on a billion-dollar corporation,” he said. “In my case, I felt I had no choice. The problem is that it has to be something that’s pretty egregious for you to do it. I felt if I didn’t do it, I had a chance of losing my business, so that’s why I did it. I don’t think it’s Greg Coccaro something that a single shop wants to take on. Anything similar to what I did would have to be done on a class-action where there are multiple shops rather than laying it on the shoulders of one individual shop. Don’t take anything on alone unless you absolutely have to.”
Automakers Report Strong U.S. Sales for 2012, Up 13% Overall, Japanese Brands Surge Chrysler Sales Jumped 20% and Subaru Has Record December, but Volkswagen Led Sales with 30% Increase
Strong U.S. sales in December capped a remarkable year for the auto industry—especially Japanese brands—and 2013 should be even better. Sales of new cars and trucks totaled around 14.5 million after all carmakers announced final figures in early January. That is 13% better than 2011 and the best performance in five years. In 2012, Americans had plenty of incentive to buy new cars and trucks. The economy improved. Unemployment eased. Home sales and prices rose. And the average age of a car topped 11 years in the U.S., a record that spurred people to trade in. Banks made that easier by offering low interest rates and greater
access to loans, even for those with lousy credit. Year-end deals on pickup trucks and the usual round of sparkling holiday ads helped December sales jump 9% to more than 1.3 million, auto pricing site TrueCar.com predicted. That would translate to an annual rate of more than 15.6 million, making December the strongest month of 2012. The top sellers, once again, were the Ford F series as the top truck, and the Toyota Camry on the car side. Both enjoyed healthy gains: Sales of the F series jumped 10% to 645,316; and the Camry soared 31% to 404,888. Industry experts predict that the United States market would continue to grow to at least 15.5 million vehicles sold this year, and possibly higher, if housing and other economic See Strong Sales for 2012, Page 43
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2 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
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Contents
NATIONAL 3M Assists 19 Collision School Programs with $160,000 in Production Donations . 38 8 Quirky Traffic Laws . . . . . . . . . . . . . . . . 22 Alcoa Awards $40,000 Aluminum Training Grant to Collision Repair Education Foundation. . . . . . . . . . . . . . . . . . . . . . 38 Audatex’s AutoWatch App Updates Customers. . . . . . . . . . . . . . . . . . . . . . 41 Automaker, OEM and Recall News . . . . . . 26 Automakers Report Strong U.S. Sales for 2012, Up 13% Overall, Japanese Brands Surge. . . . . . . . . . . . . . . . . . . . . 1 Automotive Ladies Lauded at Urban Wheels Awards . . . . . . . . . . . . . . . . . . 20 California Department of Insurance Approves New Aftermarket Part Regulations . . . . . . . . . . . . . . . . . . . . . . 1 Centenarian Donates Rolls-Royce to Museum after 78 Years of Use . . . . . . . 41 Cintas Typecasts the Worst Driving
King family.” Pat James, president of AutoBody America, and Will Johnston, vice president of AutoBody America, will continue serving in leadership roles with the company. “I am so thrilled at this opportunity to join forces with such a solid company that will help my team reach their potential for professional growth,” James said. Texas-based Service King now operates a total of 83 repair locations with 16 in Tennessee, 55 in Texas, one in Mississippi, three in Arkansas and eight in Arizona. “Pat, Will and their team have done a wonderful job of serving their customers and insurance partners. We are so excited to build on that level of customer service and become a part of each community,” said Chris Abraham, CEO of Service King. “Our new team members at AutoBody America will enhance our already talented and tenured leadership team and we are excited about this partnership continuing to spur future growth for the company,” Abraham said. Service King currently employs more than 1,800 individuals in Texas and Arizona.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Southwest
COLUMNISTS Attanasio: Why Should Body Shops Have a Website? . . . . . . . . . . . . . . . . . 30 Franklin: Aligning with Agents. . . . . . . . . . . 8 I-CAR: Necessary Culture Changes for Blueprinting Process. . . . . . . . . . . . 42 Insider: Changes at I-CAR a Good Foundation to Build Upon . . . . . . . . . . . 12 Yoswick: Action on Insurer ‘Most-Favored Nation’ Clauses May be on the Horizon . 14
Offenders and Offers Safety Tips . . . . . 22 Class A Shop Requirements May Change, CIC Says . . . . . . . . . . . . . . . . 20 Collision Repair Education Foundation Offers $300,000 in Scholarships and Tool Grants . . . . . . . . . . . . . . . . . 38 Custom Painter JoAnn Bortles Named Automotive Spokesperson for Hypertherm . . . . . . . . . . . . . . . . . . . . . 34 DuPont Launches GM-Sponsored Parts Rebate Program. . . . . . . . . . . . . . . . . . 18 Global Electric Vehicle Sales Could Reach 3.8 Million by 2020, Research Firm Says . 46 Greg Coccaro Settles with Progressive Insurance . . . . . . . . . . . . . . . . . . . . . . . 1 Judge to Rule Soon on Batmobile Copyright Suit . . . . . . . . . . . . . . . . . . . 36 NABC Gives Update on ‘Operation Comfort’ Mission. . . . . . . . . . . . . . . . . 40 NABC Launches Newly Revised Corporate Website . . . . . . . . . . . . . . . . 40 NADA Hosts 48 Workshops at 2013 Convention . . . . . . . . . . . . . . . . . 28 NADA Lines Up Keynote Speakers for Feb. 8–11 Convention . . . . . . . . . . . . . 32 NADA Names New President Peter Welch to Post. . . . . . . . . . . . . . . . . . . . . . . . . 28 New Insurance Laws Take Effect in 2013. . 36 Original Batmobile Sold for $4.6 Million at Auction . . . . . . . . . . . . . . . . . . . . . . 36 PartsTrader Costs “$800 in Unseen Business a Month” Says Michigan Parts Wholesaler . . . . . . . . . . . . . . . . . . 1 PartsTrader Releases Supplier Feedback Results. . . . . . . . . . . . . . . . . 15 Safelite Acquires Windshield World in Vermont. . . . . . . . . . . . . . . . . . . . . . 20 Safelite Group Acquires Boston-Based Giant Glass . . . . . . . . . . . . . . . . . . . . . 20 SCRS Holds Open Board Meeting Jan. 23 in Calif. . . . . . . . . . . . . . . . . . . 29 Think Outside the Truck Box: Spray Lining, A Coating Profit Engine . . . . . . . . . . . . 10 Thousands of Sandy Ruined Cars to be Crushed . . . . . . . . . . . . . . . . . . . . . 22 Top Safety Picks for 2013 . . . . . . . . . . . . . 6 TUFF TV Greenlights New Reality Series, Auto Wars . . . . . . . . . . . . . . . . . . . . . . 29 Two Jobbers Expand with Acquisitions . . . 34 U.S. Fines Toyota $17 Million for Not Quickly Reporting Problems, Delaying Recall . . . . . . . . . . . . . . . . . . 46 Vote: 2013 ASA Board Elections . . . . . . . . 4 West VA Court Bars Insurer from Selling Used and Aftermarket Parts . . . . . . . . . 20 Work-Related Vehicle Accidents, Claims Down During Recession. . . . . . . . . . . . 20
AutoBody America, a 20-shop collision repair operation with locations in Tennessee, Mississippi and Arkansas, was acquired by Service King Collision Repair Centers on Dec. 30. The transactions include markets in Nashville, Memphis, Little Rock, Knoxville, Chattanooga, Clarksville, Jackson, TN, Jackson, MS, and Fayettville. Service King said it will retain AutoBody America’s 250 employees throughout the 20 locations, which will have the capacity to repair more than 40,000 vehicles annually. “We are very excited to partner with a great company in AutoBody America,” said Mike Abbott, market vice president for Service King. “Our two companies have similar histories, which makes this merger a natural fit. AutoBody America and their great team will provide a strong platform for Service King in the southeastern United States,” Abbott added. Jeff McFadden, president of Service King, said, “It’s comforting to partner with an organization that delivers the level of customer service that Service King customers have grown accustomed, and we are very excited to welcome the professionals at AutoBody America to the Service
Indexof Advertisers
REGIONAL Bates Collision Centers of Texas Fuels Smiles for Needy Moms with Gift of Vehicles. . . . . . . . . . . . . . . . . . . . . . . 7 Carsmetics Expands in Oklahoma with Second Shop . . . . . . . . . . . . . . . . . 6 Could ‘Hail Protector’ Mean Less Business for Body Shops Fixing Hail Storm Dents? . 6 HABA Begins New Year Preparing for Texas Legislative Session. . . . . . . . . . . . 6 Louisiana Department of Insurance Introduces Online Tool to Shop Auto Insurance Rates. . . . . . . . . . . . . . . 4 Louisiana Insurance Commissioner Jim Donelon Elected President of NAIC . . . . . 4 NWLCRA Held First Meeting of 2013 on Jan. 8 in Shreveport . . . . . . . . . . . . . 4 Oklahoma Businesses Give Back to Those in Need . . . . . . . . . . . . . . . . . . . . 6 Service King Acquires AutoBody America . 3 Services Held for Co-Owner of Angie’s Collision Repair . . . . . . . . . . . . . . . . . . . 4 Uninsured Driver Problem Costs Oklahoma More than $8 Million a Year . . . . . . . . . . 7
Service King Acquires AutoBody America
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2013 Adamantine Media LLC.
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Absolute Mitsubishi-Hyundai . . . . . 32 BMW Wholesale Parts Dealers . . . . 43 Car-Part Pro. . . . . . . . . . . . . . . . . . . 14 CCC Information Services . . . . . . . . 9 Chevyland . . . . . . . . . . . . . . . . . . . . 18 Classic BMW . . . . . . . . . . . . . . . . . . 29 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Collision Websites. . . . . . . . . . . . . . 15 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . . 2 Don Carlton Auto Group . . . . . . . . . 40 Equalizer Industries . . . . . . . . . . . . . 4 Finnegan Chrysler-Jeep-Dodge . . . . 7 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 39 Fowler I-240 Chrysler-Jeep-Dodge. 19 Garmat USA . . . . . . . . . . . . . . . . . . . 8 GM Wholesale Parts Dealers . . . . . 34 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Houston Auto Body Association. . . 20 Huffines Hyundai Plano . . . . . . . . . 12 Hyundai Wholesale Parts Dealers . 45 Kia Motors Wholesale Parts Dealers. 35
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mazda Wholesale Parts Dealers . . . 38 Mercedes-Benz of Oklahoma City . 36 Mike Calvert Toyota. . . . . . . . . . . . . 23 Mitsubishi Wholesale Parts Dealers. 42 MOPAR Wholesale Parts Dealers . . 37 North Freeway Hyundai . . . . . . . . . 30 Ray Huffines Chevrolet . . . . . . . . . . . 5 Reliable Chevrolet. . . . . . . . . . . . . . 23 Replica Plastics. . . . . . . . . . . . . . . . 41 River Oaks Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 22 Scoggin-Dickey Buick . . . . . . . . . . 27 South Pointe Chrysler-Jeep-Dodge. 31 Spray-Lining and Coatings . . . . 11, 21 Toyota of Fort Worth . . . . . . . . . . . . 28 Toyota of Laredo . . . . . . . . . . . . . . . 33 Toyota STAR Elite Dealers . . . . . 16-17 Toyota Wholesale Parts Dealers . . . 41 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44 Volvo Wholesale Parts Dealers . . . . 28 Young Chevrolet . . . . . . . . . . . . . . . . 6
www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 3
Louisiana Department of Insurance Introduces Online Tool to Shop Auto Insurance Rates
The Louisiana Department of Insurance has launched new interactive Homeowners and Automobile Insurance Rate Comparison Guides. The online systems are designed to encourage Louisiana policyholders to shop for the best rates when selecting an insurance provider. “Our hope is that these new systems will prove to be a useful resource for Louisiana homeowners and drivers,” said Insurance Commissioner Jim Donelon. “By allowing policyholders to easily compare the rates of insurers in Louisiana, it will put more information at people’s fingertips, saving them valuable time, and perhaps money.” The new online comparison systems allow consumers to choose between different scenarios. For the automobile guide, the examples include a range of ages and driving history. Consumers can then select a city to see a sample of available rate quotes. The LDI advises policyholders to keep in mind that the examples presented are not designed to match an individual’s particular circumstances. They are presented to demonstrate the relative differences between
companies in selected geographic markets, and provide an incentive for consumers to shop around. The LDI cautions that inclusion of a company in the comparison guide does not guarantee the company is open to writing new policies; some of these companies may not be currently writing new business in a particular area. Also, Jim Donelon, the LDI points out Louisiana Insurance that a company not Commissioner listed in the guide may actually offer the best coverage and service you need. The Homeowners and Automobile Rate Comparison Guides can be found in the Consumer section of the Louisiana Department of Insurance’s website, www.ldi.la.gov. Along with the interactive tools, the companion online publications, the “Homeowners Rate Comparison Guide” and the “Automobile Rate Comparison Guide,” are now available and can be accessed under Consumer Publications on the LDI’s website.
Louisiana Insurance Commissioner Jim Donelon Elected President of NAIC
The National Association of Insurance Commissioners (NAIC) recently announced that Louisiana Insurance Commissioner Jim Donelon will ascend to the NAIC presidency effective January 1, 2013. Commissioner Donelon served as 2012 PresidentElect of the NAIC. “I am pleased to have this opportunity to serve the NAIC and the citizens of Louisiana in this capacity,” said Donelon. “Louisiana is a significant consumer of insurance in the national, and even international, marketplace. Through this position, I will be able to engage in the insurance debate on a leadership level, and place Louisiana at the forefront in the study and development of insurance regulation.” Through the NAIC, state insurance regulators establish standards and best practices, coordinate their regulatory oversight, and have a critical role in the implementation of those measures as they impact the insurance markets and consumers across the nation and beyond. Donelon has been a member of the NAIC since becoming Louisiana Insurance Commissioner in 2006. During Donelon’s tenure one of the
last Insurance Rating Commissions in the nation was abolished, eliminating an impediment to companies coming to do business in Louisiana. He also championed successful legislative initiatives that limit named-storm deductibles to one per hurricane season and increased the Louisiana Insurance Guaranty Association coverage to $500,000 per claim (the recently adopted NAIC model provision). For the last five years, Donelon has chaired the NAIC’s Surplus Lines Task Force, a key role for Louisiana’s high risk insurance marketplace. Louisiana is the fifth largest surplus lines marketplace in the United States behind only California, New York, Texas and Florida. Louisiana is also the fifth largest state for consumption of Lloyds of London products. Reasons for this include the state’s high risk activities including offshore oil and gas exploration, large port activity, chemical plant concentrations and high coastal property insurance exposure. Donelon joined the staff of the Louisiana Department of Insurance in 2001 as Chief Deputy Commissioner. He became Louisiana Insurance Commissioner in February 2006.
4 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Services Held for Co-Owner of Angie’s Collision Repair
Angie Clay, 43, of Bowie, TX, died Saturday, Dec. 22, 2012, in Fort Worth. Funeral services were held at White Family Funeral Home in Bowie with Tony “Froggy” D. Hart officiating. Burial was in Azleland Memorial Park in Azle, TX. Mrs. Clay was co-owner/operator of Angie’s Collision Repair in Manfield, TX, and Claymar Collision in Bowie. Survivors include her mother, Linda Christ of Azle; her grandmother, Hattie Smith of Azle; her children, David Capko, Jacob Clay and Casey Smith, all of Fort Worth, Malachi Clay of Bowie, and Tammy Morgan of Las Vegas; two sisters, Mondee Cheatham of Aledo, TX, and Kimberly Phillips of Keller, TX; two brothers, Patrick Cheatham of Springtown, TX, and Tom Price of Haltom City, TX; seven grandchildren, and one great-granddaughter.
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NWLCRA Held First Meeting of 2013 on Jan. 8 in Shreveport
The Northwest Louisiana Collision Repair Association held its first meeting of 2013 on Jan. 8 at the Country Tavern Barbecue, 823 Brook Hollow Drive in Shreveport, LA, at 6:30 p.m. Guest speaker was Mark Monroe, instructor for Bossier Parish Technical School Auto Repair. He discussed the new training facility that will be built in Bossier Parish for the technical school.
Vote: 2013 ASA Board Elections
Voting is open through the end of February to elect the 2013 Automotive Service Association (ASA) national board of directors. All regular members in good standing with ASA are eligible to vote for one position of general director. Casting a vote is done by calling a toll-free telephone number or visiting a secure voting site, which may be accessed from ASA’s website at www.ASAshop.org. The voting line is open 24 hours a day, seven days a week, until voting closes at 5 p.m. Central Time on Feb. 28, 2013.
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Carsmetics Expands in Oklahoma with Second Shop
Florida-based Carsmetics opened its second Oklahoma-area shop in the past 12 months. It has 25 other locations throughout Florida, California, Georgia, Massachusetts, New Jersey, Oklahoma and Pennsylvania. The company is headquartered in Tampa and specializes in minor auto body repair. “We fill the gap,” said manager Fred Heath. “The jobs that traditional body shops use as fillers are our main service. They use minor jobs to keep their guys busy if they have no big jobs. We’re excited that the Edmond location will provide residents with an easy location to get to for one-day repairs. We’re a great alternative to a large collision shop because customers can drop their cars off in the morning and pick them up at the end of the day looking like new.”
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Autobody News on Facebook Top Safety Picks for 2013
The Insurance Institute for Highway Safety (IIHS) recently awarded 13 vehicle models with its Top Safety Pick+ award for 2013. The vehicle models named as IIHS’ Top Safety Pick+ for 2013 include the Acura TL, Dodge Avenger, Chrysler 200, Ford Fusion, Honda Accord two-door, Honda Accord four-door, Kia Optima, Nissan Altima, Subaru Legacy, Subaru Outback, Suzuki Kizashi, Volkswagen Passat and Volvo S60. To earn the Top Safety Pick+ accolade, all 13 vehicles received “good” or “acceptable” ratings in the IIHS’ new small overlap test, an evaluation that simulates safety performance when the front section of a vehicle hits another vehicle or permanent object, such as a tree or utility pole. The IIHS said small overlap crashes account for roughly 25% of frontal crashes that result in serious injuries or fatalities to occupants. The IIHS said midsize, luxury cars were the first group of vehicles evaluated through its small overlap test. Midsize, moderately priced cars will be evaluated next, and the organization will announce additional Top Safety Pick+ winners after tests are conducted. Safety results for small SUVs will be announced this spring.
HABA Begins New Year Preparing for Texas Legislative Session
The Houston Auto Body Association held its first meeting of 2013 on Jan. 15 to prepare for the new Texas legislative session. HABA President James Brown says as the Texas legislative sessions begins, the association has much to plan for in the coming months. “What a great way to start off the New Year than to commit to be involved in advancing the collision industry,” Brown said. “We have a lot of exciting goals for this year. Our first and most pressing item at hand will be our legislative endeavors. It is very important for everyone to reach out to their state representative and senator.” HABA will co-sponsor an automotive industry legislative breakfast on Tuesday, Feb. 12, from 8-10:30 a.m. in the Capitol Grill of the Texas State Capitol.
Read all our Regional Editions Online at: www.autobodynews.com Oklahoma Businesses Give Back to Those in Need
Over the holidays, Oklahoma businesses gave back to those in need with special giveaways. AAA Oklahoma surprised a resident of the City Rescue Mission with a car. The reconditioned 2003 Honda Civic was acquired by the auto club after a hailstorm, and Body Works Collision Centers donated the repair work. The recipient, Peggy Vanisko, 65, was having trouble getting to her job at Hobby Lobby after her car was stolen, said Chuck Mai, a spokesman for AAA Oklahoma. “Her story was quite moving,” he said. In addition to the car, AAA Oklahoma donated the auto insurance policy and a one-year membership to AAA. Auto Group chose the children of active-duty military and National Guard members to benefit from its giveaway. They gave 100 bicycles for military families to take home for Christmas. “At Hudiburg Auto Group, it’s important to us to give back to our fellow Oklahomans, especially the military families who give up so much for us,” said David Hudiburg, president of Hudiburg Auto Group.
6 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Could ‘Hail Protector’ Mean Less Business for Body Shops Fixing Hail Storm Dents? A north Texas inventor has designed an inflatable cover to protect cars from hail damage. Hail damage costs consumers millions of dollars each year and is why Michael Siciliano invented the Hail Protector in the garage of his Gunter, TX, home. “People are scratching their heads trying to figure it out because
uct to the test to try to prove it works. He recorded a home video that shows how it holds ups against chunks of ice, softballs, tennis balls and 3-pound cantaloupes that were dropped from the top of the Denison fire training tower. Siciliano says he was inspired to invent the product while watching his two daughters play on an inflatable slide four years ago. “So I just connected the dots and had that eureka moment!” he said. Siciliano says he’s also developed an alert system app to let people know when a hail storm is about to hit. He hopes drivers will spring for the $300 product that he says could protect car owners from North Texas inventor designs inflatable cover to thousands of dollars in damage. protect cars from hail damage However, the product is not yet they’ve never seen it before,” he said. available for sale. Siciliano and his The Hail Protector slips over a wife say they’re working with manucar like a regular cover and cinches facturers and investors to bring it to together to form a tight seal. It plugs retailers. into a regular outlet, and with a re“All in, around 300,000 vehicles mote control, inflates in about five were damaged just in 2011, and at an minutes to form a protective bubble average cost of $3,118 to be specific, around a vehicle. and it totals to more than $1 billion in Siciliano says he’s put the prod- losses,” he said.
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Uninsured Driver Problem Costs Oklahoma More than $8 Million a Year
A new evaluation by the Oklahoma Insurance Department (OID) found that the state of Oklahoma is losing $8.8 million a year in premium taxes from drivers who fail to obtain the state-required minimum coverage for auto insurance. “When people break the law, and don’t pay their fair share, it hurts all of us,” said Oklahoma Insurance Commissioner John D. Doak. “Half of that money would go into the General Revenue Fund, helping schools, social services and other vital programs. The rest would help provide pensions for the state’s firefighters and law enforcement officers. Those sorely underfunded systems could really use this money to make sure Oklahoma heroes receive the retirements they deserve,” said Doak. Using data provided by the Insurance Research Council, the U.S. Department of Transportation and the National Association of Insurance Commissioners, OID Chief Actuary Frank Stone calculated the financial losses created by non-compliance: • Average Annual Cost of Liability Insurance in Oklahoma: $700 • Estimated Number of Uninsured Vehicles in Oklahoma: 563,692
• Premium Tax Rate: 2.25% • Total Potential Premium Tax: $8,878,149 • General Revenue (47%): $4,172,730 • Firefighter Pension Fund (34%): $3,018,571 • Police Pension Fund (14%): $1,242,941 • Law Enforcement Pension Fund (5%): $443,907 The Oklahoma Insurance Department has already begun tackling this issue with public service announcements and driver safety checkpoints. The department is pushing for more change through its 2013 legislative agenda. Working with state lawmakers, the OID hopes to increase the fine for driving without insurance and make the offense subject to a primary stop by law enforcement. The OID website has several tools to help consumers understand auto insurance and shop for coverage at http://www.ok.gov/oid/Consumers/Insurance_Basics/Auto.html. The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurancebuying public and for oversight of the insurance industry in the state.
Bates Collision Centers of Texas Fuels Smiles for Needy Moms with Gift of Refurbished Vehicles
Bates Collision Centers, founded in 1990 by Lee and Leila Bates in the Bay Area of Texas, each year provides refurbished cars for two needy mothers as a community service project. Bates Collision Centers has two locations, in Baytown and Channelview. The recipients of the new cars are mothers whose children attend Harris County Department of Education Head Start programs for families of children age three to five in 16 area centers in northeast Houston. Laura Hernandez likens the gift of a car to a miracle in the time of need. After separating from her husband, she and her three daughters live with her parents. She struggles to make ends meet as a waitress. “Without a vehicle and reliable transportation, I find it hard to move forward and feel like I’m falling behind in my economic status,” she said. With a car, Hernandez vows to become more involved in her daughters’ schools. Kimberlee Owens is the mother of two and is a full-time nursing student. Having a car will allow Owens to continue her studies in nursing upon gaining her associate degree this May. She is an honors society mem-
ber and continues a rigorous study schedule. When her children get sick, she must depend on her parents to drive to doctor’s appointments. “Receiving this award means so much to me in my efforts in becoming self-sufficient in taking care of my children and me,” she said. She looks forward to future library trips with her sons and plans to continue to volunteer in her children’s classrooms when time permits. “Head Start provides resources for the entire family as they bring their 3- to 5-year-olds to our centers,” said Head Start Director Venetia Peacock. “These women volunteer in the classroom, are active in their children’s education and are role models for other parents enrolled in the program. To get a car that allows our parents to become self sufficient is a life-changing event,” Peacock said.
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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 7
On Creative Marketing Aligning with Agents
with Thomas Franklin
As insurance companies set up 800 number claims lines or move away from agents altogether with direct sales and service on-line, agents have become less of a marketing target for many shops. Nevertheless, there are still numerous agents almost everywhere, and many of their customers still call them when they have an accident. Agents are still a good referral source for collision repair business, but today an agent might be more particular about who he or she refers business to. Getting and keeping an insurance customer has become more difficult for agents today. Competition from noagent, direct online companies is very intense these days. There are continual advertisements on TV, radio and the Internet, and low-ball rates to hook customers are common. It’s not easy for an agent to get new customers. Some shops go to great lengths to get an agent’s referrals. I’ve heard of some that invite them for hunting parties, fishing trips, barbecues, golf tournaments, and trips to exotic places. A while back, one shop had a threemonth promotion where anyone bringing his or her car in for repair would have a chance to win a paid vacation to Hawaii. But the shop went further than that: They notified the agents that whichever agent referred the winner would also win a trip to Hawaii! Another shop initiated the practice of filling every customer’s tank with gas, and
noting that the fill-up was “Courtesy of the Agent.” Some insurance companies forbid their agents from accepting any gift. But what an agent would value above all else is not a gift, but rather a new customer. But how can a shop help local agents in their search for new customers? Many shops now ask customers to fill out a “Customer Satisfaction Survey” when a job is completed, or have a CSI company call them. Those with a view to building a stronger relationship with the agents can include a question on the survey regarding the customer’s satisfaction with his or her agent. These are then passed along to the agent as a free service. Many agents seek to sell their expertise as a way to get new customers. Not everyone is happy with the impersonal nature of online insurance services. These days, insurance companies try to bundle home, health, life and auto insurance as a package. Covering all of these aspects of a customer’s life and family can raise many questions. Clever agents try to get speaking opportunities at networking groups, professional association meetings and chambers of commerce where they can demonstrate their wide range of knowledge and their value as an agent. These are groups that a good shop marketing person will also be trying to address, so there may be an opportunity for a cooperative presentation.
Continued from Cover
also been made aware of substantial costs borne by automobile repair shops and their customers associated with installing defective or poorly fitting parts required by insurers. Performing repairs that do not comply with current repair standards or placing an inferior aftermarket part in a vehicle may cause the vehicle’s value to depreciate. Defective parts may cause injury or even death if they malfunction. Prior to beginning the formal rulemaking, CDI listened to stakeholders representing consumers, insurers, automobile repair shops, distributors, and automobile manufacturers. CDI also held a pre-rulemaking workshop in
Calif. Aftermarket
After investigating complaints from consumers and automobile repair shops and evaluating the law, CDI drew the conclusion that defective or otherwise non-compliant aftermarket parts continued to infiltrate the repair process due to insurers’ failure to perform the necessary steps to ensure public safety. CDI had been made aware of defective aftermarket bumper reinforcements, hood latches, and other safety related parts being required by insurers that otherwise were not compliant with current repair standards. CDI had
See Calif. Aftermarket, Page 23
8 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Most insurance agents probably assume that people who have been insured with a competing company for a long time will be harder to convert than someone who hasn’t yet purchased much insurance. This suggests reaching the kind of audience that is a natural for a collision repair facility: young and beginning drivers. Smart shop marketing people like to speak at high schools and colleges and driving schools. When one of these is scheduled, it would be an ideal time to invite a key agent to also speak. The more a shop can align itself with an agent’s purposes, the more likely it will be to become an exclusive referral point for that agent. One shop I work with frequently also hosts agent manager meetings regularly. This brings agents into the shop where they can see the modern equipment and highly-trained technicians at work. An agent will be reluctant to refer a customer to a shop that will reflect badly on the agent. Hosting meet-
ings allows the shop to showcase its best features and to plan a shop tour for the visiting agents and managers. Several shops have also done well with what I would call a “goodwill ambassador.” To make this work, it’s necessary to have a person who can make the rounds of the agents every month without fail, with pens, notepads or other promotional specialties, and who will be in it for the long haul. When the same person stops by every month for several years running, the agent’s people get to know this person well and trust becomes established. An older, semi-retired person is ideal for this job. Agents are still a good referral source for collision repair shops. Many of their customers still call them when they have an accident, and an agent will gladly refer the business to a shop that he or she knows is competent, trustworthy and attractive so it will reflect positively on the agent.
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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 9
Think Outside the Truck Box: Spray Lining, A Coating Profit Engine by Ed Attanasio
By guiding body shops, distributors and dealers in the right direction, Spray-Lining and Coatings can advise companies such as collision repairers, automotive restoration companies and car detailers to get into the industrial coatings field and succeed at a high level. Billy Simmons, owner of Bottom Line Coatings in Houston and Texas City, TX, an automotive detailing business added Spray-Lining to its capabilities several years ago. “At first, we were coating truck beds, which we still do. But, now we’re doing big jobs, mostly marine applications for boat builders and marine structures such as piles and piers,” Simmons said. “It’s been a great source of revenue for us, because the profit margins are high and the product is well-supported. You can apply high-spec coatings to pretty much anything.” Spray-Lining’s Dealership Support Director Jeff Powell is a seasoned veteran of the industrial coatings game, so he knows how to make it or break it in this business, he explained. Powell works closely with each of his distributors nationwide to show them where there’s money to be made by tapping into all of the applications that require industrial coatings.
Before: This truck bed looks hopeless!
“We provide the training for body shops that want to look for different sources of revenue. Collision repairers, detailers and customizers have gravitated toward this business model, because it all starts in the automotive niche, doing truck beds primarily. But then if they want to go for larger jobs, such as doing things like larger com-
mercial trucks, warehouses, garage Lining and Coatings on a daily basis. “We don’t just push inventory and floors, waterscapes, koi ponds and pools—it’s like a blood transfusion. then watch you sink or swim, like some of the other companies out There are more and more applications out there that need these products, and there,” he said. “The true value of with our body shop’s technical ex- working with us is our expertise. It’s pertise, coupled with decades of really that simple. Anyone can get the Spray-Lining experience, we’re able to guide body shops to new business they could not get otherwise.” By marketing their dealers via the Internet and through direct mail, trade shows, custom signage, broadcast and print advertising in protected regions, Spray-Lining and The applications for Spray-Lining and Coatings are countless Coatings sets up its right equipment and learn how to automotive partners for success, Powapply the coatings themselves. But, ell said. can they land big ticket jobs and keep “We’ve done the same thing for the ball rolling, while avoiding comhundreds of companies all over North mon mistakes the competition might America, so it’s proven. It’s even proven in British Columbia, where the make?” Michael Knab, owner of Shammy government controls the collision Shine in Antigo, WI, sells car wash claims process. We know how to chemicals and installs car wash equipmake money in the linings business ment. He is a Spray-Lining and Coatand can turn a small investment into ings dealer and has developed the serious income with equity rather quickly using promos, training, equip- endeavor into a lucrative side business, he explained. ment and technical savvy. We’re in“Your imagination is the limit terested in selling products, of course, with how you can use these coatings, because there are so many applications out there. Truck beds are definitely a good portion of the work we get, but we also do a lot of agricultural applications, trailers, boats, swimming pools, waterscapes, and bumpers on commercial vehicles, for example. I’ve even used them on steel-toed boots for a customer, believe or not. It’s a great product, because it is easy to apply once you get used to it. You can match colors or shoot it clear and it’s extremely versatile and adaptable.” As a new Spray-Lining and Coatings distributor or by using a DIY kit, As a new Spray-Lining and Coatings distributor or by using a DIY kit, body shops can get body shops can get involved in an ininvolved in an industry that’s exploding dustry that is currently flourishing and but we focus more on promoting our growing, Powell said. dealers locally versus the national “We will loan you the equipment brands, so that they can make a solid for free for the first year and steer you markup and build their businesses.” in the right direction for more jobs and Support is the key, because withnon-automotive applications. We asout it, body shops can’t easily create sist you with the big job pricing, bidan ancillary business like the one ding processes and by working with Powell does for companies via Spray- our support department, you’ll have
10 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
answers available to you 24/7. Truck beds will bring you some additional revenue to your collision customers and you’ll also get phone calls and emails asking for bids on a wide range of different projects. By providing a better alternative to Rhino or Line-X at a lower cost, income streams can propagate rapidly. For that reason, we’re looking for body shops that want to look outside the truck bed and consider other new sources of income relevant to their experience.” By leveraging its understanding of the industry, Spray-Lining and Coatings can take on the competition and prevail against any of the “national” names in the business, Powell said. “We started in agriculture doing slip-proofing on large trailers and livestock barns and anti-stick coatings on chutes, bins, hoppers and dump trucks, well before the term “bed liner” was coined.” “We’re an alternative for companies such as Rhino, Line-X, Scorpion Coatings and DuPont Paint Protection films because our products provide a lower-cost solution to bed liners. By providing a wide range of variable textures and high-tensile clear, we’re able to offer an affordable and proven system that can supersede the usual solutions,” Powell said.
Money making applications include jobs such as the surfacing of playgrounds
Collision repairers are often careful about exploring anything not within a comfort zone, but Powell has found forward thinkers from Massachusetts to Arizona and everywhere in between, he said, that have chosen to work with Spray-Lining and Coatings. “Most shops can see the synergy between the collision business and what we’re doing,” Powell said. “Many of our body shop dealers are using this system and doing very well performing automotive-related jobs. But, others have embraced other uses for these products. 2013 may be the right time to look around for newest methods to profit, depending less on collision, insurance or low profit DRPs: Raising profit in the end.”
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Take on the Big Boys! www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 11
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Changes at I-CAR a Good Foundation to Build Upon with The Insurance Insider
Training…What is it good for? Absolutely nothing. Say it again. Hopefully, you were able to sing along to the modified lyrics to the song “War,” a hit performed by Edwin Starr. If you aren’t familiar with it, it is a famous song protesting war. And that probably also means that you were born in a different generation where war and protests are things you’ve only read about. Speaking of protests, there was an informal one staged by collision repairers a few years ago. Leaders in the industry were dissatisfied with ICAR’s direction and the level of service I-CAR provided. The training I-CAR offered was deemed outdated and to some degree was becoming more irrelevant by the day. I-CAR listened and took action, making significant change to its training curriculum, structure and delivery methods. This led to additional, much needed changes in the requirements to attain I-CAR Gold and Platinum status. In my humble but wise opinion, I-CAR finally did something right. They listened to their customers. They asked the entire industry for input – and then delivered. There are pundits out there who question I-CAR’s motives. “They did it for the money,” stated one uninformed repairer. “They did it because insurance companies made them do it,” cited another uninvolved repairer. If improving the level of training and competency of technicians is an ulterior motive, then I-CAR guilty is as charged. While you may not like the new requirements or costs, the decisions were not made in a vacuum. Many of the brightest minds in the industry participated this cataclysmic shift within I-CAR. And yes, if you were wondering, the brightest minds in the industry aren’t solely insurance company representatives. Has I-CAR’s implementation of Pro Level training requirements been beneficial? From an insurer’s perspective, it was a significant win for the entire industry. The days of a painter taking a class on steering to attain I-CAR Platinum are now as outdated as the misconception that
anyone with a toolbox on wheels is a professional body technician. I-CAR still has a lot of other changes to make, but this is a solid foundation to build upon. I wish they would have made these changes sooner but it is indicative of the entire
industry. Repairers and insurers are notoriously slow to adopt and implement change. Why should a supplier to the industry like I-CAR be any different? I realize that there are some challenges with the new I-CAR Gold Class system and cost is at the top of the list. Small independent shops to large consolidators have publicly expressed their concerns with the cost of the training. But aside from the cost, there is no denying the need for ongoing education specific to your job and responsibilities, especially when you consider the alarming rate of change in the way vehicles are being manufactured. You will not be equipped to properly repair many vehicles without training. I realize that there is still a lot to be desired relative to I-CAR training, but at the present time there isn’t a better alternative. I believe that the cost to train technicians would be a moot point if there was a financial incentive. Most shops don’t believe that there is a return on investment. In some ways, I agree with the premise that there is no direct return, even though there are least a few insurance companies that require Gold Class status. Insurance companies should pay a higher labor rate to those shops that have made significant investments in training as well as tooling and equipment. “If you truly believed that, you would change it,” you might be thinking. My answer is that it isn’t that simple. The complexities of labor rates and the impact it can have on the pricing of our insurance products could make a carrier non-competitive and
12 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
lose market share almost overnight. That is one example of the differences between repairers and insurers. Repairers can make a decision for their business, take accountability and understand the short- and long-term impact. Insurers do not have that luxury or the latitude to take immediate action. A decision made in one department could adversely impact several others, unknowingly to those taking the action. Policyholder retention and growth are the primary drivers of most decisions made by carriers in today’s extremely competitive marketplace. That is why there is such a focus on cost and customer service. For now, a shop’s return on investment in training can be found in a safe and proper repair, professional technicians and reduced cycle time. Although I would never say that I-CAR Platinum or Gold Class designations guarantee a proper repair, I believe that they increase the probability
of one. Ongoing training through the Pro Levels 2 and 3 ensure that a technician’s knowledge improves and that he or she grows professionally. I-CAR still has a lot of work to do but the longest journey starts with the first step. Hopefully, 2013 will bring about the next level of change that is needed, including more testing. This has always been a sore subject amongst those who have ever paid for or taken an I-CAR class. The reality is that unless more insurers require I-CAR Gold Class or Gold Class shops are compensated at a higher rate, the altered lyrics in Starr’s song will continue to resonate with many in the industry. “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry.
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Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Action on Insurer ‘Most-Favored Nation’ Clauses May be on the Horizon A key element of some direct repair program (DRP) contracts is indirectly coming under increasing scrutiny by federal regulators—leading some to predict insurer pricing demands on shops soon may be forced to change. The contract clause in question is often referred to as the “most-favored nation” clause in that it requires a supplier—such as a body shop—to provide the buyer with which it has a contract such as an insurer—with the same pricing it offers its “best” or “most-favored” customer. Most-favored nation (MFN) clauses have been the subject of lawsuits and regulatory scrutiny in the health care industry in recent years, and the Automotive Service Association (ASA) is among the groups hoping to turn that attention to similar clauses in DRP contracts.
State Farm initiates MFNs first gained prominence in the
collision repair industry in 2006 when State Farm announced some significant changes to its Select Service agreements. One of the changes was an MFN requirement. George Avery, a claims consultant with State Farm, defended the new requirement at the time by saying that because State Farm writes more than twice as many estimates as its nearest competitor, it felt it should be getting any discounts that shops offer to other insurers or customers. “If you choose to give no discounts whatsoever, that’s perfectly fine with us,” Avery said in a 2006 interview. “I don’t have a problem with that. But if your business model includes some discounts, then we want to be part of it.” He said he recognizes that shops may offer one insurer a discount on parts but not labor, and another insurer a discount on labor but not parts. Under the new agreement, Avery said, the shop must provide State Farm with
14 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
all the best discounts it offers in any category. “If anyone or everyone gets a 10% discount except State Farm, for example, if you’re interested in our program and I select you, I would like that 10%,” Avery said. “That’s when repair facilities need to make a decision. Please understand I’m saying this with the most respect I can muster: If your business practice is that you give discounts but you can’t afford to give me the discount, then perhaps this program is not for you.” State Farm said it could check on how a shop bills other insurers when subrogating claims paid by the other carrier for which State Farm is ultimately responsible. “Am I going to scour that stuff? I’m not going to look at your business. I’m going to trust you,” Avery said. “But if it comes to my attention, I’m going to take appropriate action and I’m going to take it now.”
Shops, regulators, courts respond Collision repair shops took a variety of paths in dealing with the new MFN policy, which has since been emulated by a number of other insurers. Those that had previously offered other insurers little in the way of discounts were not widely impacted. Some that had offered discounts didn’t see it as a good business option to extend those discounts to the largest auto insurer—and raised their charges to the other insurers or dropped those programs. Still others just began giving State Farm the MFN status the insurer was seeking. Some, too, parted ways with the State Farm program—of their own choice or that of the insurer. State Farm reduced the number of shops participating in “Select Service” by about 40% in 2006 and 2007 as it rolled out the new agreement. But by 2010, MFNs that insurers had implemented in the health care in-
dustry were beginning to creep in the news: • In March 2010, Connecticut Attorney General Richard Blumenthal challenged the MFN clause of a health insurer-provider contract. Blumenthal notified the U.S. Health and Human Services Secretary of his ongoing investigation into what he termed the “anti-competitive clause” that Anthem Blue Cross & Blue Shield of Connecticut has in its contracts with hospitals and doctors. Blumenthal said such clauses “may drive up health care costs and drown out competition.” • In late 2010, Blue Cross Blue Shield of Michigan filed a motion in U.S. District Court in Detroit seeking dismissal of a federal antitrust lawsuit that alleges that the “most favored nation” clauses of the insurer’s contract with hospitals is anti-competitive. The U.S. Department of Justice and Michigan’s Attorney General had brought the lawsuit against the health insurer, saying MFN clauses raise hospital prices, discourage discounting and prevent other insurers from entering the marketplace. It said that some Blue Cross clauses required Michigan hospitals to charge the insurer’s competitors up to 40% more for services. Blue
Cross was unsuccessful in arguing the suit should be dismissed because as a state-created entity, the company is protected from federal antitrust lawsuits, and because the government failed to show specific economic harm caused by its behavior. “This cannot be allowed in Michigan, and let me be clear: We will challenge similar anti-competitive behavior anywhere else in the United States,” Christine Varney, the U.S. Assistant Attorney General’s Office antitrust chief at the time, said. • Most recently, the Department of Justice (DOJ) and Federal Trade Commission (FTC) held a joint workshop this past fall that many saw an indication that anti-trust regulators have “a reinvigorated focus on mostfavored-nation (MFN) clauses.” “Although at times employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns,” the two agencies noted prior to the workshop. “This is because they may, especially when used by a dominant buyer, raise other buyers’ costs or (prevent) would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated
pricing among sellers.” ASA’s Bob Redding participated in the workshop and said, “What was evident from the workshop is that public policy regarding MFN clauses is still evolving. There are a number of outstanding questions such as whether these clauses - a common practice in many business sectors have a net benefit for consumers. The FTC and the DOJ have a difficult task in determining how to regulate MFN clauses in order to protect consumers and small businesses.” Following the workshop, ASA wrote a letter to the Department of Justice asking for a full review of the clauses as used in direct repair agreements. “The anti-competitive nature of these clauses ensures both our members and consumers are at a disadvantage,” Redding said in the letter. Redding seems hopeful the issue will remain within the focus of regulators. “This is an area that has not worked in our favor as collision repairers in the past,” Redding said. “But we’re going to see more interest in this area by the FTC and the Department of Justice.”
PartsTrader Releases Supplier Feedback Results
PartsTrader contracted with CSi Complete, an independent research organization, to survey participating parts suppliers within its first four pilot markets. PartsTrader says 67% of parts suppliers gave high marks to the functionality of the PartsTrader product. Over half (53%) of the suppliers indicated a score of 7 or above regarding their overall satisfaction with PartsTrader—on a scale of 0 (Poor) and 10 (Excellent). When asked specifically about their overall opinion of PartsTrader as a procurement tool, 67% responded with a score of 7 or higher. PartsTrader said a 93% satisfaction score was given to the efforts of PartsTrader employees. During early internal surveys of repairers and suppliers, the performance of PartsTrader staff had been identified as an area needing improvement. The survey also identified some areas where improvements should be addressed. PartsTrader will continue to work with industry stakeholders both within and outside of their Advisory Council to make service and product improvements as needed.
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(512) 440-4527
parts@championtoyotaofaustin.com
CHAMPION TOYOTA GULF FRWY H OU STON |
(713) 943-7010
parts@championtoyotagulffreeway.com
CHAMPION TOYOTA OF CORPUS CHRISTI C OR PU S C H R ISTI |
(361) 855-2241
parts@championtoyotaofcorpus.com
CHARLES MAUND TOYOTA AU STIN |
(512) 458-3423
parts@charlesmaundtoyota.com
CLASSIC TOYOTA
TYL ER |
(903) 581-0600
parts@classictoyotatyler.com
COMMUNITY TOYOTA
BAYTOWN |
(281) 839-7700
parts@communitytoyota.com
COWBOY TOYOTA
D AL L AS |
(214) 319-2023
parts@cowboy-toyota.com
DON DAVIS TOYOTA
AR L IN GTON |
(817) 588-5315
parts@dondavistoyota.com
DON MCGILL TOYOTA
H OU STON |
(281) 977-3051
parts@donmcgilltoyota.com
DON MCGILL TOYOTA OF KATY KATY |
(832) 772-1777
parts@donmcgilltoyotakaty.com
DURANT TOYOTA
WEATH E R FOR D |
(817) 597-5036
parts@duranttoyota.com
FORT BEND TOYOTA
R IC H M ON D |
(281) 633-3477
parts@fortbendtoyota.com
FRANK SMITH TOYOTA
M C AL L EN |
(956) 784-3350
parts@franksmithtoyota.com
FRED HAAS TOYOTA COUNTRY H OU STON |
(281) 374-5251
parts@fredhaastoyotacountry.com
FRED HAAS TOYOTA WORLD H OU STON |
(281) 297-7151
parts@fredhaastoyota.com
FREEMAN TOYOTA
H U R ST |
(817) 287-5270
parts@freemantoyota.com
STERLING MCCALL TOYOTA
H OU STON |
(713) 270-3900
parts@smccalltoyota.com
TEJAS TOYOTA
H U M BL E |
(281) 446-0236
parts@tejastoyota.com
GULLO TOYOTA OF CONROE
TEXAS TOYOTA OF GRAPEVINE
(936) 441-9191
(817) 601-3270
C ON R OE |
parts@gullotoyota.com
HOY-FOX TOYOTA
EL PASOD |
(915) 590-3451
parts@hoyfoxtoyota.com
JIM MCNATT TOYOTA
D EN TON |
(940) 239-6460
parts@jimmcnatttoyota.com
JOE MYERS TOYOTA
H OU STON |
(281) 890-9631
parts@joymyerstoyota.com
JOHN EAGLE SPORT CITY TOYOTA D AL L AS |
(972) 681-8361
parts@sportcitytoyota.com
LITHIA TOYOTA OF ODESSA OD ESSA |
(432) 367-2050
parts@lithiatoyotaofodessa.com
LOVING TOYOTA
L U FKIN |
(936) 699-1028
parts@lovingtoyota.com
METROPLEX TOYOTA
D AL L AS |
(972) 780-1166
parts@metroplextoyota.com
MIKE CALVERT TOYOTA
H OU STON |
(713) 558-8272
parts@mikecalverttoyota.com
MITCHELL TOYOTA
SAN AN GEL O |
(325) 653-4620
parts@mitchelltoyota.com
NORTH PARK TOYOTA OF SAN ANTONIO SAN AN TON IO |
(210) 635-5060
parts@northparktoyota.com
PAT LOBB TOYOTA OF MCKINNEY M C KIN N EY |
(214) 544-8696
parts@patlobbtoyota.com
RED MCCOMBS TOYOTA
SAN AN TON IO |
(210) 530-3000
parts@redmccombstoyota.com
RON CARTER TOYOTA
ALVIN |
(281) 388-8660
parts@roncartertoyota.com
SAN MARCOS TOYOTA
SAN M AR C OS |
(512) 805-6546
parts@sanmarcostoyota.com
GR APEVIN E |
parts@toyotaofgrapevine.com
TOYOTA OF BOERNE
BOER N E |
(210) 870-1800
parts@toyotaofboerne.com
TOYOTA OF DALLAS
D AL L AS |
(972) 241-6655
parts@toyota-dallas.com
TOYOTA OF FORT WORTH
FT. WORTH |
(817) 560-1500
parts@toyotaoffortworth.com
TOYOTA OF IRVING
IRVIN G |
(972) 258-1230
parts@toyota-irving.com
TOYOTA OF LAREDO
L AR ED O |
(956) 718-4200
parts@toyotaoflaredo.com
TOYOTA OF LEWISVILLE
L EWISVIL L E |
(469) 671-5534
parts@toyotaoflewisville.com
TOYOTA OF PLANO
PL AN O |
(972) 248-0113
parts@toyotaofplano.com
TOYOTA OF RICHARDSON
R IC H AR D SON |
(972) 238-4444
parts@toyotaofrichardson.com
TOYOTA OF ROCKWALL
R OC KWAL L |
(469) 402-1611
parts@toyotaofrockwall.com
UNIVERSAL TOYOTA
SAN AN TON IO |
(210) 654-5559
parts@universaltoyota.com
VANDERGRIFF TOYOTA
AR L IN GTON |
(817) 784-3600
parts@vandergrifftoyota.com
Louisiana
(337) 948-8255
parts@courvelletoyota.com
GREG LEBLANC TOYOTA
H OU M A |
(985) 851-6422
parts@gregleblanctoyota.com
HAMPTON TOYOTA
L AFAYETTE |
(337) 984-5010
parts@hamptontoyota.com
LAKE CHARLES TOYOTA
L AKE C H AR L ES |
(337) 310-4321
parts@lakecharlestoyota.com
LAKESIDE TOYOTA
M ETAIR IE |
(504) 837-6030
parts@lakesidetoyota.com
NORTHSHORE TOYOTA
C OVIN GTON |
(985) 801-2075
parts@northshoretoyota.com
PRICE LEBLANC TOYOTA
BATON R OU GE |
(225) 408-1240
parts@priceleblanctoyota.com
RAY BRANDT TOYOTA
KEN N ER |
(504) 464-4446
parts@raybrandttoyota.com
TEAM TOYOTA
BATON R OU GE |
(225) 273-5880
parts@teamtoyota.com
TOYOTA OF SLIDELL
SL ID EL L |
(985) 726-7240
parts@toyotaofslidell.com
YOKEM TOYOTA
SH R EVEPORT |
(318) 795-3178
parts@yokemtoyota.com
Oklahoma BOB HOWARD TOYOTA
OKL AH OMA C ITY |
(800) 888-3827
sales@bhpdc.com
DOENGES TOYOTA
BARTL ESVIL L E |
(918) 335-2333
wholesaleparts@doengeschoice.com
HUDIBURG TOYOTA
M ID WEST C ITY |
(405) 741-6173
parts@hudiburgtoyota.com
ALL STAR AUTOMOTIVE PARTS DIVISION BATON R OU GE |
COURVELLE TOYOTA
OPEL OU SAS |
(225) 298-8080
parts@allstarautomotive.com
JIM NORTON TOYOTA
TU L SA |
(800) 888-3555
parts@jimnortontoyota.com
BOHN BROTHERS TOYOTA
H ARVEY |
(504) 371-7059
parts@bohnbrostoyota.com
www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 17
DuPont Launches GM-Sponsored Parts Rebate Program by Chasidy Rae Sisk
On Jan. 1, DuPont Performance Coatings (DPC) launched their newest program, a parts rebate program sponsored by General Motors. This program, available to DPC’s network of collision repair shops, rewards registered shops with a rebate whenever they choose 100% Genuine GM Parts for selected repairs through CollisionLink. DPC’s new GM Sponsored Parts Rebate program offers Independent Repair facilities the opportunity to receive a 5% cash rebate from GM when the program’s criteria is met. “There has been a tremendous response from the market since the program was formally announced at the beginning of this month. We are constantly striving to bring added value to our customers in the autoGary S. Scott, motive collision OEM Accounts repair industry and Manager, are confident this Collision Services program will be popular,” said Gary S. Scott, OEM Accounts Manager, Collision Services at DPC. DPC’s new rebate program is already popular with its current participants. Kim MacManus, owner of Glidden Auto Body in Bangor, ME, notes that registration was extremely easy since she was already registered with CollisionLink. Furthermore, the rebate “lowers our cost, allowing us to put that money back towards the cost of the part…it’s free money you’re getting back!” Scott Gudmunson, shop manager of Lehman Garage in MN, does not feel that there are any drawbacks to the program, but he finds getting money back to be a great benefit of participation. Don Murphy, owner of The Wreck Room in Villa Park, IL, points out “we’re buying the parts anyway; this is just a direct rebate so it’s like getting free money, plus it is all done automatically so there is no need for additional bookkeeping.” The 5% rebate, minus a 1.25% administrative fee which results in a 3.75% net rebate, will be electronically transferred to the shop’s designated account on a quarterly schedule. Unlike other programs, shops do not have to
apply for their automated rebate after registering for DPC’s rebate program. No additional forms or steps are required in order to obtain the rebate. In order to participate in this program, shops can sign up at www.performancegateway.com/partsrebate using their existing login for either the DuPont Performance Alliance or Per-
formance Claims websites. Following onscreen instructions, shops will complete their general and GM Parts Rebate Program profiles, and they will also complete an ACH form and W9 which will be faxed to 608-210-8040, authorizing their rebates to be electronically deposited in the indicated account. Shops may enroll at any time throughout 2013; however, shops may only participate in one GM sponsored rebate program annually, so shops already participating in another, similar program may only change their program administration during the month of January 2013. Beginning February 1, 2013, DPC’s rebate program is only available to shops who aren’t currently participating in a similar program through another vendor. Upon registration, it will be validated that shops are not actively engaged in another program, and shops will be notified if they are ineligible. Similarly, they will be informed when they become an active member of the GM Parts Rebate Program. After a shop has completed program registration, their estimate must meet GM requirements for GM replacement parts, and the shop will receive verification that their estimate meets the necessary criteria after transmitting the estimate through CollisionLink. Shops must transmit their parts order to their selected dealer through CollisionLink in order to receive the rebate. Estimates that qualify will be tracked, and shops will receive a monthly report. Qualified parts consist of parts ordered for vehicles with model years of two or more years, and rebates do not apply to part orders on current model year vehicles; parts must be new, genuine GM OE parts supplied by a licensed dealer in order to qualify for the rebate. A list of the parts eligible
18 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
for the program are defined by GM. Beyond the obvious monetary incentive, DPC’s rebate program offers additional benefits to participants. The automated rebate deposit allows shop to receive the rebate without increasing their workload. Also, the shop’s customers can receive a Certificate of Authenticity for their Genuine GM OEM replacement parts which aids shops’ credibility and increases the integrity of repairs. The program can also assist in reducing cycle time which will lead to higher customer satisfaction ratings. Since rebates are processed through Gates Business Solutions and paid directly from GM, there is no need for a shop to change their existing ordering dealership. Shops will begin receiving rebates automatically on a quarterly basis after registration. Shops are unable to add additional parts to a transaction order after the CollisionLink software has extracted the order for processing. If a transaction contains non-OE parts designated as exceptions by GM, the transaction can still be submitted and may qualify for a rebate if all other requirements are met. If a shop
feels that specific parts should be classified as an exception, they should identify the line item containing the part believed to be an exception and submit it through CollisionLink for review. The transaction will be held pending review of the possible exception; if approved, the transaction may proceed, but if it is rejected, the corresponding transaction will also be rejected. Approved exceptions are added to the database for automatic processing of future transactions containing the approved exceptions. For shops that also participate in GM-sponsored price-matching programs, the price-matched parts must be identified. These may or may not disqualify the transaction, depending on the manufacturer. Discounted parts do not qualify for rebates, but including parts that are eligible for price-matching will not disqualify a transaction if parts are purchased at the shop’s normal discount level. To register for DPC’s rebate program or to obtain more information about the program, please visit: www.performancegateway.com/partsrebate.
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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 19
Safelite Group Acquires Boston-Based Giant Glass
Safelite Acquires Windshield World in Vermont
Safelite® Group, the nation’s leading vehicle glass company, acquired Boston-based Giant Glass, effective December 31, 2012. Owned and operated by Dennis Drinkwater and Lance Cramer since 1978, Giant Glass includes 54 employees; 30 mobile vans; and five locations in the Boston area: Lawrence, North Andover, Peabody, Weymouth, and Worcester. “I am proud of the company that my business partner Lance and I have built,” Drinkwater said. “We have a strong customer base and excellent employees and we wanted both of them to be well taken care of in the future. We trust that Safelite® will take care of them both.” The acquisition is the continuation of Safelite AutoGlass’s mission to profitably grow in the U.S. and to become the customer’s “natural choice” for vehicle glass repair and replacement services. Giant Glass is a well-respected company with a prominent vehicle glass replacement brand in the greater Boston area. Giant’s geographic locations and brand recognition made it highly attractive to Safelite AutoGlass®. Drinkwater and Cramer will remain working for Safelite®.
Safelite® Group, the nation’s leading vehicle glass company, reached an agreement to acquire substantially all of the vehicle glass related assets of Windshield World, based in Barre, VT. The deal was finalized December 31, 2012. Windshield World is a well-respected vehicle glass repair and replacement company in upper New England, which is an area Safelite® has not had a strong physical presence, which made the acquisition highly attractive to Safelite AutoGlass®. Established in 1984, Windshield World employs 40 people and operates in 20 cities and towns in Vermont, New Hampshire and New York. The acquisition is the continuation of Safelite’s mission to grow in the U.S. and to become the customer’s “natural choice” for vehicle glass repair and replacement services. It will allow for more coverage to better serve customers and meet insurance client needs. “We are happy to welcome Windshield World’s employees to the Safelite® team,” said Tom Feeney, president and CEO of Safelite® Group.
West VA Court Bars Insurer from Selling Used and Aftermarket Parts
Automotive Ladies Lauded at Urban Wheels Awards
West Virginia Attorney General Darrell McGraw recently announced that the Circuit Court of Kanawha County has issued a permanent injunction against Liberty Mutual Insurance Company from using salvaged or aftermarket crash parts to repair motor vehicles that are less than three years old. The court’s order upholds current state law that requires insurance companies and body shops to obtain a consumer’s written authorization before salvaged parts are used for the repair of new vehicles. “This is a victory for West Virginia consumers,” said McGraw. “Every consumer has the right to know the type and quality of crash parts used to repair their damaged vehicles.” Liberty Mutual admitted in court documents that it had repaired nearly 200 vehicles using junkyard and aftermarket parts in violation of the Aftermarket Crash Parts Act, and defended its use of these parts which McGraw believed jeopardized consumers’ safety and diminished the value of consumers’ vehicles.
It was ladies’ night during the 17th Annual Urban Wheel Awards Jan. 13 at the Sound Board, MotorCity Casino Hotel. The official multicultural event of the North American International Auto Show honored diversity-centered automotive initiatives and funds scholarships. This year’s event lauded the hard work of women in the automotive industry and those companies committed to the advancement of women, said Randi Payton, president and CEO of Decisive Media, which puts on the event. The lavish affair included performances by entertainers such as Grammy-nominated gospel singer Vicki Winans. Detroit Mayor Dave Bing and 2013 NAIAS Chairman Jim Seavitt made opening remarks. The event was co-hosted by actors Niecy Nash (“Clean House” and “The Soul Man”) and Edward James Olmos (“Battlestar Galactica” and Oscar-nominated for “Stand and Deliver”). Some awards included the Cadillac ATS, Urban Car of the Year; and the Ram 1500 Urban Truck of the Year; and the Urban Green Vehicle of the Year is the Tesla Model S.
20 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Class A Shop Requirements May Change, CIC Says
Changes to the existing “Class A Shop Requirements” are being proposed by the Collision Industry Conference’s (CIC) Definitions Committee. During its November 2012 meeting in Las Vegas, the CIC said several repairers voiced concerns about the “Class A Shop Requirements” and requested revisions. In response, the CIC changed the title of the document to “Minimum Shop Requirements,” and has proposed a new set of minimum equipment, capabilities, training and certifications that repairers should meet. The CIC’s Definitions Committee is still working on the revision of the document, and is seeking input from professionals in all segments of the repair industry. Anyone interested in providing input, suggestions or feedback can contact Chris Evans at chris.evans.ca1b@statefarm.com, or Ron Guilliams at ron@servicedynamics.net.
www.autobodynews.com
Work-Related Vehicle Accidents, Claims Down During Recession
Work-related vehicle accidents declined during the recent recession, and likely helped reduce the number of workers compensation claims, the National Council on Compensation Insurance (NCCI) recently reported. In a report, Boca Raton, FLbased NCCI said that frequency for large truck accidents declined 16% from 2007 to 2010, while passenger vehicle accidents declined 8% during that period. The report said the recession left fewer drivers on the road due to unemployment, and resulted in fewer truck shipments as the recession limited consumer spending. NCCI said the trend likely had a positive impact on workers comp claim trends. The share of lost-time comp claims resulting from non-fatal vehicle accidents fell from 3.5% of all traffic accidents in 2005 to 3.1% in 2010, according to data from the U.S. Bureau of Labor Statistics. Vehicle accidents tend to create costlier comp claims than the average workplace accident, NCCI said.
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Cintas Typecasts the Worst Driving Offenders and Offers Safety Tips According to the National Highway Traffic Safety Administration (NHTSA), an estimated 32,310 motor vehicle traffic fatalities occurred in 2011. With snowfall and the potential for icy roads now part of many forecasts, it’s even more important for drivers to be cautious and follow the rules of the road. To remind commuters to avoid hazardous driving behaviors, Cintas Corporation, a leader in first-aid and safety products, has identified the seven worst driving offenders. The seven worst driving offenders are: 1. The Beauty Queen—Women have been known to occasionally apply lipstick, mascara and even nail polish while driving. But without both hands on the wheel and eyes on the road, it’s easy to lose control of a vehicle. To avoid a fender bender and a botched makeup application, drivers should leave beauty products in their purses at all times. 2. The Hungry Commuter—Eating while driving is yet another habit that results in hands-free driving. Hungry commuters are often involved in accidents or near misses because they can’t react quickly to sharp curves or properly handle lane changes. Drivers should eat before they drive or plan a roadside stop in order to grab a meal.
3. The Tech-Obsessed—Although many states have laws prohibiting or limiting texting or talking on cell phones, drivers still obsess over gadgets like phones and GPS systems. The Centers for Disease Control and Prevention (CDC) reports that 25% of drivers in the U.S. admitted to “regularly or fairly often” talking on cell phones while behind the wheel. Drivers should refrain from these activities since reflexes are slowed when their attention is on technology. 4. The Sleepy Traveler—Oftentimes commuters refuse to pull to the side of the road when they feel tired, choosing instead to drive. In fact, a 2011 poll by the AAA Foundation found that nearly a third of drivers admitted to driving when they had trouble keeping their eyes open. Drowsy driving has even been likened to drunk driving because it impairs reaction time and judgment. Sleepy drivers should look for a rest stop if they feel unable to keep their eyes open and concentrate on the road. 5. The Daydreamer—These drivers are often lost in their own thoughts and thinking about everything but driving. According to the CDC, nearly 15 people die each day in the U.S. in car crashes that involve distracted
8 Quirky Traffic Laws
Thousands of Sandy Ruined Cars to be Crushed
This list of unusual traffic laws in the United States comes from The Allstate Blog. 1. No honking after 9 p.m. Little Rock, AR, banned the “sounding of horns at sandwich shops” to stop drivers honking for curbside service. 2. No Jumping from a Vehicle In Glendale, CA, it is illegal to jump from a car while it is in motion. 3. No Betting On Driving In Massachusetts, it is illegal to drive on a bet or a wager. 4.Too Young for a Driver’s License? In Indiana, there is no minimum age requirement for driving a horse-drawn buggy down the road. 5. Blink and You’ll Miss the Signal Utah drivers must signal two seconds before turning. 6. Too Many Passengers? In Nebraska, there is no rule against adults riding in a cargo area. 7. Ok to Work Behind the Wheel? According to the ‘2011 Colorado Motor Vehicle Law Resource Book,’ “the use of computers in motor vehicles is specifically permitted.” 8. Check Your Feelings at the Car Door Although it’s not exactly a law, the Arizona driver’s manual warns against angry, excited, worried and depressed drivers.
The National Insurance Crime Bureau (NICB) says progress is being made in identifying and removing thousands of vehicles damaged beyond repair by Sandy. The estimate of 230,000 insurance claims for vehicle damage in the areas affected by Sandy remains unchanged at this time. Many of those vehicles were flooded and are being towed to holding areas where they will be loaded on car haulers and taken to facilities to be crushed.
On Dec. 5th, NICB officials visited holding areas in Brooklyn where more than 7,000 new vehicles awaiting delivery to dealerships had been parked when Sandy flooded the area with more than three feet of water. All but 800 cars had been removed. The vehicles suffered extensive damage as the wind and water shoved them into each other and flooded their electronic systems, damaging them beyond repair.
22 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
driving. Focusing on the road, rather than the destination, personal problems or to-dos will keep daydreamers’ heads out of the clouds. 6. The Road Rager—Road ragers are far from courteous. They tailgate, cut others off and become angry easily. To curb their emotions, drivers should allow themselves enough time to reach their destination and have patience with others on the road. If commuting via car is too stressful, they should take a mental break at a rest stop or consider alternate routes of transportation. 7. The Rule Breaker—According to the Governors’ Highway Safety Association (GHSA), speed is involved in about one third of traffic deaths each year, and is a problem that has seen little improvement over the past 30 years. Rule breakers are those who don’t wear seatbelts, frequently speed and ignore important signs and signals. To avoid costly tickets and car accidents, drivers must take proper precaution by fastening seatbelts, watching their speed and taking note of stop signs and red lights. For more information on firstaid and safety solutions from Cintas, please visit www.cintas.com/firstaidsafety.
Continued from Cover
PartsTrader Costs
there’s a fee. I don’t know how that’s better for me. So far, I can’t get anything out of PartsTrader or CollisionLink/OE Connection because they are under a non-disclosure agreement,” Kellogg added. Kellogg is unhappy with how PartsTrader has affected his business. “It’s absolutely terrible. It gets me very small visibility. We are a multi-program dealer. I deal with wholesale parts. It’s imperative I see the entire estimate. I can’t see the entire estimate the way PartsTrader works, and so far they haven’t been too keen on my suggestions on how to become more visible. We just want to be 100% visible. We want every opportunity to sell our parts.” Kellogg continued, “In our business, or in any business, you want full visibility. But they (PartsTrader) narrow what can be seen in their program. If you send over the estimate through CollisionLink, I get to see everything, all the things you are looking for a quote on—aftermarket pricing, everything you can possible
do— and we get to submit a quote on that. When it comes through as a PartsTrader order, all I get is ‘quoted new’ or ‘quoted aftermarket.’ Well, the rules of the Mopar Conquest Program are that I have to have an estimate. Do I quote it as an aftermarket part, a competitive part, or a new part? If they are not asking for an aftermarket part, all I can do is quote it as new. Once I made the bid and they come back and say “Hey, I had to go aftermarket” and I could say “Hey, I wish you’d give me a shot,” they aren’t going to retype all that information in again. They’re gonna say they already got the part ordered.” Kellogg said he loses about 50 or 60 claims a month now and estimates his loss of gross income at $800 a month because of PartsTrader. He’s hoping that in the future, PartsTrader will bought out by OE Connection as they have a current non-disclosure agreement between the two of them, and it’s his opinion that a sale between the two is a possibility. The current system through OE Connection has full visibility. While Kellogg’s main complaint is not having complete visibility for an estimate on PartsTrader, he also says,
it’s “duplicating something over and over again, and having a bunch of ankle biters, not in the wholesale business, turning the business into a pricing war because they are not sitting on large inventory” trying to undercut him. He bases his business on larger shops and MSOs because they already understand that discounting isn’t everything. While PartsTrader is a thorn in his side, Kellogg admits it hasn’t been the biggest game-changer in the business over the past several years. “It’s just another hurdle. It’s a puddle. It hasn’t become a giant pothole yet.” But, he said, if wishes could come true, he’d wish it away. He’s worried about other insurance companies following suit. “I am worried about what’s coming down the line. Who’s next?” He added, “The fear I have with PartsTrader, and if you understand how State Farm works—State Farm does a $3.6 billion [annually in parts] business—they have to pay sales tax on what it is they do at retail level. So if they get a bunch of idiots who don’t understand this business, who are selling parts to everyone, and they get
them to lower the manufactured suggested retail price, then they may only have to pay taxes on $2.6 billion off retail, which would decrease their taxable liability by a billion dollars. And it would also ruin our business. I don’t want to see that happen. But I think this is one reason why they are doing it. That’s my opinion.” Kellogg said he sees how the ‘PartsTrader effect’ is trickling down to affect other businesses. “I just don’t know how to make it go away, but I wish that it would. Anytime when you start decreasing our revenue, we have to let something go, like advertising or people. There is always a ramification for everything,” Kellogg said.
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Continued from Page 8
Calif. Aftermarket
November 2011, which included strong representation of many stakeholders involved in the process. Specifically, this rulemaking will strengthen and enhance current law by: • Requiring an insurer to pay for the costs associated with returning a defective part and the cost to remove and replace the defective part with a compliant non-OEM part or an OEM part; • Requiring the current insurer’s warranty be expressly stated in the estimate of repair generated by the insurer; • Requiring an insurer to cease use of a part known to be non-compliant, and to notify the part distributer within thirty (30) days; • Requiring an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condition in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed by the Bureau of Automotive Repair. See www.autobodynews.com for more reaction from insurers and aftermarket pars suppliers.
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Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com
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866-733-2861 225-756-6166
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Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
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713-596-2337 713-596-2338
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888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
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AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News
GM Recalls Nearly 119,000 Pickups for Missing Latches
General Motors Co. is recalling 145,000 pickups that may not have a secondary latch to prevent the hood from unexpectedly opening. The recall covers the 2010-2012 Chevrolet Colorado and GMC Canyon trucks that may not have a back-up hood latch, including 118,800 in the United States, along with 15,264 in Canada, 7,492 in Mexico and 4,069 around the world. If the primary latch isn’t engaged while the vehicle is in motion, the hood could strike the windshield potentially causing a crash, GM said in a report filed with the National Highway Traffic Safety Administration. An analysis of one hood showed the latch assembly had no evidence of welds for the secondary latch, suggesting the latch assembly missed the weld station at the latch plate supplier. GM said the production process did not have any error-proofing to prevent material from bypassing the end of line weld station. Dealers are to inspect for the presence of the secondary hood latch. If the latch is missing, dealers will replace the hood.
Audi Plans 2016 Start in Mexico
Audi is firming up plans for its plant in San Jose Chiapa, Mexico. Mattias Rust, project manager for staff in Mexico, said construction will begin in 2014 and production will start in May 2016 with about 3,800 employees. Audi plans annual output of about 150,000 units of its Q5 crossover. Training of Mexican employees is scheduled to start this year at Audi’s Ingolstadt and Neckarsulm plants in Germany. Some Audi employees from Germany will help with the launch in Mexico. The automaker is recruiting German workers for deployments ranging between four and 15 months, as well as for stays of up to five years.
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BMW Sales Surge in China
BMW Group said sales of its cars and SUVs in China rose 73% in December to 30,470 vehicles. Sales of BMW brand vehicles increased 72% to 28,184, while deliveries of Mini brand vehicles surged 96% to 2,286. In November, BMW Group reported a sales leap of 62.3% to 31,090, which the automaker said was due to strong demand for its X1 small SUV and series 3 long wheelbase models. Full-year group sales in China rose 40% to 326,444 vehicles, BMW said.
Dealer Lawsuit Against Tesla Dismissed by Judge
Dealers trying to block Tesla Motors Inc.’s retail stores in Massachusetts lost another round when a judge dismissed their lawsuit against the electric vehicle maker. In a recent ruling, Norfolk County Superior Court Judge Kenneth Fishman said the Massachusetts State Automobile Dealers Association and other plaintiffs lacked standing to sue. It was the same reasoning the judge used in a November ruling denying a preliminary injunction against Tesla’s suburban Boston store. “We disagree with his decision,” Robert O’Koniewski, the association’s executive vice president, said. He contends the association has standing under changes made to the state’s franchise law in 2002. “If you read the statute, it’s pretty clear: a factory cannot own a store, and a dealer can sue for injunctive relief if they feel the public is being harmed.” Tesla, in a statement, said the ruling validated its retail strategy in Massachusetts and other states. “We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment,” Elon Musk, Tesla co-founder and CEO, said. Tesla’s first Massachusetts showroom opened in September.
26 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
GM Could Face $918 Million Hit from Bankruptcy Lawuit
A U.S. bankruptcy judge could soon rule on whether the 2009 government-led restructuring of General Motors improperly favored hedge funds, and an adverse ruling could cost the automaker nearly $1 billion. Judge Robert Gerber must decide whether a ‘lock-up agreement’ in the restructuring sent $367 million to a group of hedge fund noteholders at the expense of other creditors. A trust representing unsecured creditors has sued to undo the lockup agreement, arguing that it was a last-minute deal secretly folded into GM’s bankruptcy to ensure the hedge funds’ support. After the automaker, or ‘Old GM,’ filed for bankruptcy in 2009, its best assets were sold to the new General Motors Co. The remainder of the company once known as General Motors Corp. then was liquidated for the benefit of creditors. While the hedge funds, which hold notes with about $1 billion in face value, received the $367 million under the lock-up agreement, unsecured creditors received just pennies on the dollar. The hedge funds and other investors in the notes also received a claim against ‘Old GM’ for $2.67 billion. In its lawsuit, which was filed in U.S. Bankruptcy Court in Manhattan, the creditors’ trust alleged that the lock-up agreement was unfair to ‘Old GM’ creditors. The trust said the deal took place after the bankruptcy filing.
GM Recalls Trucks, SUVs
General Motors is recalling almost 54,700 of its 2013 trucks and sport utility vehicles because of a roll-away danger, according to a report the automaker filed with the National Highway Traffic Safety Administration. The action covers the Cadillac Escalade, Escalade ESV and Escalade EXT; Chevrolet Avalanche, Express, Silverado (1500 and heavy duty), Suburban and Tahoe; GMC Savana, Sierra (1500 and heavy duty) and the Yukon and Yukon XL. All are 2013 models.
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February 2013
Subaru Recalls 634,000 Cars
Subaru is recalling as many as 634,000 vehicles in the United States for potential lighting problems that could lead to smoke or fire, according to U.S. safety regulators. The recall potentially affects some Forester vehicles 2009-2012, all Legacy and Outback vehicles 2010-2012, and some Tribeca vehicles 2006-2012. The 633,842 vehicles potentially affected by the recall may be equipped with accessory puddle lights that when lit brighten the areas under the doors, according to NHTSA documents. A short circuit can develop when the light or connector are exposed to an electrolytic moisture source such as road spray that has road salt in it, the NHTSA said. That can cause heat that could melt the plastic, resulting in smoke or fire.
Nissan Reprices Leaf
Nissan announced that U.S. pricing for the new 2013 Nissan LEAF will start at an MSRP of $28,800 for the newly-added S grade, making it the lowest priced five-passenger electric vehicle sold in the United States. Depending on location, some consumers may purchase the vehicle for as low as $18,800 with qualifying federal and state tax credits, putting the LEAF on par with gas-powered vehicles of its size. Nissan’s objective for the LEAF has always been to produce an affordable zero-emission vehicle for the mass market, and the 2013 LEAF is a prime example of that commitment with increased value at every trim level, making it more accessible for more people. “With nearly 50,000 LEAFs on the road globally, we are the leaders in zero emissions vehicles and our class-leading product just got better,” said Billy Hayes, Global vice president of LEAF sales for Nissan. ‘From the very outset, Nissan has continuously advanced and refined the affordable zero emissions vehicle ownership experience. Now customers won’t have to pay a premium for owning a green car that’s really fun to drive, and that’s exciting.”
Toyota Top in U.S. Recalls
Toyota Motor Corp. recalled more vehicles—5.3 million—than any other automaker in the U.S. in 2012. It was the third time in the last four years that Toyota led in U.S. recalls. A Detroit News review of recall data found that 16.2 million cars, trucks, motorcycles and RVs were recalled in 2012, a 4.5% increase over the 15.5 million vehicles recalled in 2011. Combined, the seven biggestselling automakers in the U.S. market recalled about 13.5 million vehicles last year, up from 12.5 million in 2011. The number of recall campaigns fell slightly in 2012 to 593, from 587 campaigns in 2011. Several big recall trends emerged: Fire issues, air bag problems, rust and rollaway vehicles accounted for most of the major recalls in 2012. And U.S. regulators fined three major automakers—Toyota, BMW AG and Volvo Cars—for failing to issue timely recalls. Toyota had the most difficult year on the safety front. Honda Motor Co., which led 2011 with 3.9 million recalls, called back 3.4 million vehicles in 2012, second among automakers. Third among automakers was General Motors Co.
Hyundai Recalls Velosters
Hyundai is recalling Veloster cars for sunroof and parking brake flaws for certain Veloster 2012 coupes. The first recall includes 13,500 cars built Nov. 1, 2011–April 17, 2012 and equipped with panoramic sunroofs. The sunroof assemblies in these cars may break while the car is being driven. In a separate action the car maker is recalling 4,490 Velosters built from July 2, 2011–Feb. 27, 2012 and equipped with manual transmissions. The cars’ parking brake mechanisms might bind after exposure to moisture and road grime.
GM Volt Sales Tripled in 2012
General Motors Co. said its 2012 sales of the plug-in hybrid Chevrolet Volt tripled from 2011. U.S. sales of the Volt for 2012 topped 23,000 for the year, said Michelle Malcho, a spokeswoman for GM. GM had sold 20,828 extended-range electric Volt cars through November. In 2011, it sold 7,671 Volt cars, below its forecast of 10,000 for its first full year of sales. Volt sales got a boost when California granted solo drivers access to carpool lanes. GM spokesman Jim Cain says 1-in-3 Volts are now sold in the Golden State.
NHTSA Clears Jeep Grand Cherokee, Ford Freestar
The National Highway Traffic Safety Administration is ending its investigations into the 2012 Jeep Grand Cherokee and 2004-05 Ford Freestar and Mercury Monterey without seeking recalls, saying the issues don’t pose a serious safety concern. The U.S. auto safety agency recently closed both investigations and posted a report disclosing the decisions. In July, NHTSA opened an investigation into 107,000 Chrysler SUVs of power steering hose blowoffs that could result in fires. Chrysler said the condition would typically occur early, with less than 8,000 miles. Chrysler modified the cooler assembly process to address factors that may contribute to hose blow-offs. Separately, NHTSA said it was closing an investigation into 205,000 2004-05 Ford Freestar and Mercury Monterey minivans over complaints of faulty jacks to change tires. NHTSA said about half the consumers in complaints were using the jack for something other than tire changing. About half had also not properly chocked a wheel or set the parking brake.
Toyota to Fix Faulty Trunk Release Lever in Lexus
Toyota is expected to alert about 700,000 vehicle owners of 20072013 Lexus ES, 2006-2012 Lexus IS, and 2013 Lexus GS models due to a problem with the emergency trunk release found by Consumer Reports. Consumer Reports found that the emergency interior trunk escape lever on the 2013 Lexus ES and GS can easily snap off during use, potentially leaving a trapped occupant without any way to escape. When the lever is pulled straight or toward the passenger side of the vehicle, it worked fine, Consumer Reports said. However, when pulled toward the driver’s side, the plastic surround acts as a fulcrum and snaps the emergency release handle off easily, preventing the trunk from opening. Consumer Reports immediately notified both Toyota and the National Highway Traffic Safety Administration (NHTSA) about its findings. Toyota was able to reproduce the problem, and it identified another model, the IS, that also was prone to the release breaking. Toyota is replacing the ABS plastic release with a more robust polypropylene unit, strengthened with supporting ridges.
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NADA Hosts 48 Workshops at 2013 Convention Several workshops will be available to attendees of the 2013 NADA Convention & Expo. Workshops are available to those in the dealer, manager or allied w/workshop registration categories. Workshops are on a first-come, first-serve basis and there is no additional registration or sign-up necessary. Workshops subject matter include executive leadership, Internet solutions, legal and regulatory, managing resources, parts and accessories, sales, leasing and finance, and service and body shop. Some of the workshops offered are: • Meet NADA: Not Your Daddy’s Orientation • Bring Disney Customer Service to Your Dealership • Cause Marketing: Your New Tool for Higher Profits • Coffee Stains: Poor Customer Service in Your Store • Current Trends in Today’s Buy/Sell Market • Managers and Family: Keys to Your Succession Success • Overcome Burnout and Reclaim Your Fire • Healthcare Reform and the Impact on the Dealership
• NADA Workforce Study: How to Compete in Your Market • Is Your Website Built for Fail or Sale? • Are You the Dealer You Say You Are? • Digital Moments That Matter: Local, Mobile, Social • Avoid Fraud and Embezzlement in Your Dealership • Keep Top Talent on Your Employee Roster • Discover Hidden Profit in Your Parts Department • Eliminate the F&I Bottleneck for Good • Five Winning Strategies to Sell More Used Cars • Pre-Owned War: Dealers Versus Private Individuals • A Multipoint Inspection Process That Really Works! • Improve Your Body Shop’s Scorecard For more information, about NADA, visit www.nada.org. To register for the 2013 NADA Convention & Expo, go to: nadaconventionandexpo.org/nada2013. Registration costs vary due to membership status, number of attendees, and date of registration. Hotel and travel information is also included on the website.
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NADA Names New President Peter Welch to Post The National Automobile Dealers Association, located in McLean, VA, recently appointed Peter Welch as its new president. Welch served as president and chief executive officer of California New Car Dealers Association since 2003. The NADA Board of Directors held a special meeting Jan. 8 in Dallas, where they unanimously approved Welch as president. He was selected after a nationwide search and will officially take office on Feb. 1. Welch, 59, is leaving the statewide new-car dealers Sacramento-based organization after 23 years. He managed the association’s government affairs office, including legal, legislative and regulatory affairs, since 1990. “I’m excited and honored to be selected as the Peter Welch is leaving the position next NADA president,” he said, of CEO for the adding “NADA is California New Car Dealers Association a well-run organization. I look forto become president of the National ward to following Automobile Dealers in the tradition of strong leadership Association
at NADA. I’m ready to roll up my sleeves and get started.” Current NADA chairman Bill Underriner said, “Peter will be a great leader at NADA. He has an impressive track record in California, where every day he faced some of the toughest regulatory and legislative issues in the industry. He’s a car guy who comes highly recommended not just from people in California, but also across the nation.” Dave Westcott, NADA vice chairman and incoming NADA chair, said, “Peter Welch is a great selection. He is the right person to help lead our organization as we confront the challenges ahead.” “For 23 years, Peter has successfully guided our organization through the twists and turns of the legislative and regulatory maze in California, leaving CNCDA with a well-deserved reputation as a tough and nimble champion of franchised new-car dealers in this state,” said Darryl Holter, a Los Angeles auto dealer and the organization’s chairman. “No wonder NADA picked Peter for the job.” Welch said he’ll “miss California and miss working for the state’s best entrepreneurs.”
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Trust your order to the collision parts specialists at these fine Dealers 28 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
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SCRS Holds Open Board Meeting Jan. 23 in Calif. The Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 8-10 a.m. in Palm Springs, CA, on Jan. 23. The meeting, preceding the National Auto Body Council (NABC) golf tournament, will be held in the Plaza A & B rooms of the Palm Springs Hilton. The two-hour meeting will include updates from the SCRS staff and committees, outlining current and future work initiatives the association has undertaken on behalf of its membership. The meeting will include a detailed presentation from the SCRS Education Committee, led by committee member Toby Chess. The topic will focus on areas of friction between repair facilities and insurance companies surrounding proper frame and structural repair approaches; including specific misunderstandings that exist in the marketplace and the proper methodology to address welding, pulling, repairing or replacing frame's on today's modern fleet. “Understanding the highly specific requirements that automobile manufacturers expect of repair facilities, should foster an appreciation for the level of complexity involved in these types of repairs,” said SCRS Ed-
ucation Committee Chairman, Paul Val. “Toby and the committee have done a great job compiling information that exists in the marketplace, and sculpting it into a presentation that should hopefully eliminate some of the tension that exists in this area by broadening the understanding of necessary procedures and equipment,” he said. This meeting is open to any member of the industry and there is no registration fee. SCRS also encourages collision repair professionals to attend the Repairer-Only Forum at the Palm Springs Hilton from 5-7 p.m. on Thursday, Jan. 24. This meeting will be a continuation of the previous Repairer-Only Forum held at the SEMA Show in November. The Forum will enable repairers to receive timely updates on current industry topics and trends discussed at the last meeting, or at the CIC meeting earlier in the day. Additionally, the January meeting will serve to determine the structure, function, time, date and locations for future meetings in 2013. This event is limited to collision repairers and direct representatives of collision repair businesses. Attendees must present a business card to gain access at the meeting.
TUFF TV Greenlights New Reality Series, Auto Wars TUFF TV recently announced its acquisition and distribution of the new original reality television show Auto Wars. The half-hour series, produced by Dart Entertainment, will follow two auto body shops in direct competition with each other, whose owners are best friends.
“We’re excited to be working with Dart Entertainment on Auto Wars. Our viewers are going to love the drama that this new show brings with it. The body shop owners are so passionate about their businesses and protective of their families, that when they butt heads it’s unlike anything else. We have looked at numerous original reality shows, and Auto Wars was simply one of the best,” said Lou Seals, Founder and Chief Executive Officer of TUFF TV. Body shop entrepreneurs Jimmy Garrison and Anthony Fortunato are best friends and the show’s leading characters. Anthony Fortunato has
been the owner of his highly successful auto body shop for nearly 10 years. But when Jimmy opens up a nearby auto body shop of his own, the drama begins. The series also revolves around Jimmy’s wife and Anthony’s girlfriend (also best friends) who are regrettably in the middle of the business/friendship drama. Tensions rise and boiling points are reached as the guys engage in serious “wars,” such as paint balling each other’s cars and stealing each other’s business deals. “Finding these guys was a producer’s dream. When I first sat down with the guys, I had wished the cameras were already rolling. It’s always ideal to walk into a real story with cameras instead of making it all up. That’s what reality television is all about,” said Artie Davis, the show’s Executive Producer from Dart Entertainment. “Partnering with TUFF TV has proven to be a perfect fit for us,” Davis added. “They have been there every step of the way and have been crucial in the development of the series. We are already in the development stage of more original programming with them.” TUFF TV (www.tufftv.com) is the first digital broadcast network to offer original programming targeted at men and their specific pursuits, interests, and hobbies they are passionate about.
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www.autobodynews.com | FEBRUARY 2013 AUTOBODY NEWS 29
Social Media for Shops
Why Should Body Shops Have a Website? with Ed Attanasio
I was at a collision-related event recently when a body shop owner asked me, “Why should I have a website? The only reason I have one now is because my main competitor next door has one,” he explained. My first response was “That’s a very good reason right there.” I am surprised when I find so many successful body shops that don’t have websites. So, I decided to poll some industry and Internet experts to assemble a list of convincing reasons. Ten years ago, having a website was something to consider and weigh the advantages, but in today’s world, it’s a no-brainer for many reasons. I recently received a direct mail piece by a company that has a new DIY site that can help body shops to create websites easily and affordably. It’s called Collision Websites and the owner is David Moore, a collision veteran who has helped countless shops to develop award-winning websites over the years. Now, he’s made the process of creating a site so easy that even shops that are dragging their feet can step up and have a website within hours, rather than weeks or even months. His letter started out with some tough love questions, but very timely ones for body shops that don’t currently have websites and/or don’t see any value in them. His opening line immediately got my attention. • Are you on the cutting-edge or about to get cut? • As this industry gets younger and smarter, are you falling behind? Working hard used to be the formula for success, but now technology has changed the game. Did you know that nearly 9 out of 10 people requiring collision work will search the Internet to find someone to repair their vehicle? Statistics show that 95% of all people in the United States expect a reputable business to have a website. Unless your customer base is made up of that non-tech 5%, you’re not impressing or even reaching most of your market. If you currently don’t have a website, you’re losing revenue while reading this. And even a lousy website could cost you even more. So, for those who are still doubters,
here are my main reasons for having a website:
1) Affordable Websites are less expensive and can produce quality leads when compared to other forms of media. The Internet is a proven leader when it comes to cost per response. If you’re using a content management system such as Word Press, you can keep your website fresh and up-to-date by adding new content all the time. Because you’re big on the Internet doesn’t mean you should abandon other forms of advertising altogether. Print, radio, TV and direct mail advertising are still very strong when integrated into a media mix, and can be used to entice people to access your site and find out more about your shop. Think of a big hand with each finger representing one form of media, working in conjunction to reach customers and get cars in your shop.
2) Accessible The Internet enables body shops to break through geographical barriers and become accessible to anyone with an Internet connection. With sites like Google Maps and MapQuest, the days of getting lost while attempting to find your shop is greatly diminished, even for the directionally challenged. We always suggest that you should have a map showing your shop displayed prominently on your home page containing directions and landmarks. Since body shops are brick and mortar businesses obviously, finding you is essential and making it as easy to your potential advertisers is key. The evolution of websites has made the yellow pages and other phone directories fairly obsolete. In the old days, shops that had moved or added new locations were forced to wait until the phone books came out to tell the world where they are. Because a website is flexible, you can change the content as often as you like, which is ideal for shops that are moving or adding locations.
3) Convenient It is far more convenient for a person to research a product on the Internet than it is to get in a car, drive somewhere and look for or ask someone for information on a product. They don’t
30 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
have to call around or go to a library— it’s all there on their desk top, lap top or smart phone. The potential customer can visit your website whenever they want in their own privacy and comfort, without the stress and disruptions that exist in the real world. Your website is a self-service entity that can bring you customers while you sleep.
4) Valuable Your website can deliver real value by offering a ton of valuable information, such as useful tips, sage advice and general interest content that can entertain and inform your customers. This will also help them to remember your name when they get in an accident. You can use features on your website such as visitor polls, online surveys and other things and then access your website statistics to find out what your customers like and don’t like. Website statistics show you how much traffic your website receives, how the visitor
got to your website and where, geographically, the visitor is from.
5) Credible A website offers you a forum to tell prospective new customers why you’re a solid company and thereby warrant their respect and adulation. One of the best things about the Internet is that a little mom and pop shop can get as much exposure as a big chain with multiple locations. Solid shops doing exemplary work will always succeed—but by telling the world how good you are as often as you can, it surely does not hurt. If you’re not selling your brand 24/7, who will? By having a website that is full of content, simple to navigate through and easy to find, you’re instantly in the game and will be recognized as a player almost overnight. By having a presence online, you can take full advantage of all the advantages the Internet offers—and a good website is definitely the very first step.
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NADA Lines Up Keynote Speakers for Feb. 8–11 Convention The National Automobile Dealers Association hosts its 2013 Convention & Expo in Orlando, FL, Feb. 8–11. The NADA Convention & Expo is the automotive industry’s retail event of the year and the world’s largest international gathering place for franchised new-vehicle dealers. The convention offers dealers the opportunity to meet Bill Underriner face-to-face with executives of major auto manufacturers, and features hundreds of exhibitors showcasing the latest equipment, services and technologies and dozens of workshops with the industry’s best trainers. Keynote speakers include the NADA Chairman’s address by 2012 NADA Chairman Bill Underriner, an industry message by John Krafcik, President and CEO of Hyundai, an inspirational message by astronaut Captain Mark Kelly, an address by incoming 2013 Chairman David Westcott, and a keynote address by
Robert Gates, former secretary of defense.
NADA Chairman’s Address Bill Underriner, 2012 NADA Chairman, will address convention attendees on Saturday, Feb. 9 at 2:30 p.m. at the Orange County Convention Center in Exhibit Hall D. Underriner, president and coowner of Underriner Motors in Billings, MT, was 2012 chairman of the National Automobile Dealers Association and represents Montana’s franchised new-car dealers on the association’s board of directors. In the automobile business since 1984, Underriner took over the family business in 2001. He currently owns Honda, Hyundai, Buick and Volvo franchises in Billings. Previously, he served three terms as Treasurer of NADA and on the association’s Executive, Industry Relations, Dealership Operations and Membership committees. He has also served as chairman of the association’s Finance and Convention committees. Underriner has held a variety of offices with the Montana Automobile Dealers Association,
including chairman of the board. He has been a member of the Dealers Election Action Committee’s (DEAC) Presidents Club for five years.
Industry Message John Krafcik, President and CEO of Hyundai, also will present his message at 2:30 p.m. on Saturday, Feb. 9 in Exhibit Hall D in the Orange County Convention Center. Krafcik, president and chief executive officer of Hyundai Motor America, is responsible for the strategic direction and management of the company’s operations in the United States. Krafcik joined Hyundai in 2004 as vice president John Krafcik of Product Development and Strategic Planning after a long tenure at Ford Motor Company. With his guidance, Hyundai reshaped its American lineup with industryleading positions in design, innovation, and fuel efficiency. After moving to his current role in
late 2008 as president and chief executive officer, Krafcik and his team have increased Hyundai’s U.S. market share over 50% under challenging market conditions on the strength of growing accolades, breakthrough products, and innovative marketing programs.
Inspirational message Captain Mark Kelly, Commander of the Space Shuttle Endeavour’s final mission, speaks at 9 a.m. on Sunday, Feb. 10, in Exhibit Hall D at the Orange County Convention Center. Kelly is an American astronaut, retired US Navy Captain, best sellingauthor, prostate cancer survivor, and an experienced naval aviator who flew combat missions during the Gulf War. The winner of many awards, including the Legion of Merit, two Defense Superior Service Medals Capt. Mark Kelly and two Distinguished Flying Crosses, Kelly was selected as an astronaut in 1996. He flew
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his first of four missions in 2001 aboard Space Shuttle Endeavour, the same space shuttle that he commanded on its final flight in May 2011. He has also commanded Space Shuttle Discovery and is one of only two individuals who have visited the International Space Station on four different occasions. Already a celebrated American, Kelly became the center of international attention after the January 2011 assassination attempt on his wife, former US Congresswoman Gabrielle Giffords. In their bestselling memoir, Gabby, the couple shares their story of hope and resilience with the world. The inspirational memoir has topped multiple best-seller lists. Kelly and Giffords appeared in an exclusive Diane Sawyer interview, and on Nightline and The Daily Show. Kelly has a new children’s book titled Mousetronaut: A Partially True Story. Kelly’s identical twin brother, Scott, is also an astronaut who served as commander of both the Space Shuttle and the International Space Station. They share the distinction of being the only siblings who have traveled in space.
Incoming NADA Chairman’s Address David Westcott, the 2013 incoming NADA chairman, will address convention attendees on Monday, Feb. 11 at 3:30 p.m. in Exhibit Hall D in David Westcott the Orange County Convention Center. Westcott, president of Westcott Automotive, in Burlington, NC, was the 2012 vice chairman of the National Automobile Dealers Association and represents North Carolina’s franchised new-car dealers on the association’s board of directors. A new car-dealer since 1981, Westcott previously was NADA’s Region II vice chairman and a North Carolina Auto Dealers Association (NCADA) chair to the Self-Insurance Fund. He was also chairman of the Buick National Dealer Council, GM President’s Council and Buick’s Brand Team. From 1995 through 1996, Westcott was president of the NCADA, during which time he also received the TIME Dealer of the Year Award from NADA and TIME Magazine.
Keynote Address Robert Gates, Secretary of Defense from 2006-2011, will also speak at 3:30 on Monday, Feb. 11 at the Orange County Convention Center in Exhibit Hall D. Dr. Robert M. Gates served as the 22nd Secretary of Defense and is the only Secretary of Defense in U.S. history to be asked to remain in that office by a newly-elected President. President Barack Obama is the eighth president Gates has served. He previously served under President George W. Bush. On Gates’ last day in office, President Barack Obama awarded him the Presidential Medal of Freedom, America’s highest civilian honor. Before becoming Secretary of Defense in 2006, Gates was the president of Texas A&M University, the nation’s sixth largest single campus university. Prior to assuming the Texas A&M presidency, on August 1, 2002, he served as interim dean of the George Bush School of Government and Public Service at Texas A&M from 1999 to 2001. Gates joined the Central Intelligence Agency in 1966 and spent nearly 27 years as an intelligence professional. During that period, he spent
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nearly nine years at the National Security Council, The White House, serving four presidents of both political parties. Gates served as director of Central Intelligence from 1991 until 1993. He is the only career officer in CIA’s history to rise from entry-level employee to director. He served as deputy director of Central Intelligence from 1986 until 1989 and as assistant to the President and Deputy National Security AdRobert Gates viser at the White House from January 20, 1989, until November 6, 1991, for President George H.W. Bush. Gates has been awarded the National Security Medal, the Presidential Citizens Medal, has three times received the National Intelligence Distinguished Service Medal, and has three times received CIA’s highest award, the Distinguished Intelligence Medal. He is the author of the memoir, “From the Shadows: The Ultimate Insiders Story of Five Presidents and How They Won the Cold War,” published in 1996. See NADA Keynote Speakers, Page 34
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Continued from Page 33
NADA Keynote Speakers
Until becoming Secretary of Defense, Gates served as chairman of the Independent Trustees of The Fidelity Funds, the nation’s largest mutual fund company, and on the board of directors of NACCO Industries, Inc., Brinker International, Inc. and Parker Drilling Company, Inc. Gates currently serves on Starbucks’ Board of Directors. He has also served on the Board of Directors and Executive Committee of the American Council on Education, the Board of Directors of the National Association of State Universities and Land-Grant Colleges and the National Executive Board of the Boy Scouts of America. He has also been president of the National Eagle Scout Association. A native of Kansas, Gates received his master’s degree in history from Indiana University and his doctorate in Russian and Soviet history from Georgetown University. Gates was installed as Chancellor of the College of William and Mary in 2012.
Custom Painter JoAnn Bortles Named Automotive Spokesperson for Hypertherm JoAnn Bortles, a custom hot rod/mo- plasma cutting in the hot rod and auto torcycle fabricator, certified welder, restoration segment.” and renowned custom painter, was reBortles brings more than 30 years cently named 2013 national automo- of automotive, technical experience tive spokesperson for Hypertherm, a and expertise to her new role and Hymanufacturer of advanced cutting sys- pertherm welcomes the opportunity to tems. reach a new Powermax market segAutobody News featured Bor- ment through this partnership. tles in its March, 2012 issue, “Air“As the owner of a small shop, brush Artist JoAnn Bortles is Writing the number one rule I have learned is her Seventh Painting Book.” See www.autobodynews.com and search ‘JoAnn Bortles.’ In her new role, Bortles will help educate and teach people about the benefits of using Powermax plasma systems and make public appearances on behalf of Hypertherm at a variety of automotive conferences and shows, including SEMA and the Hot Rod & Restoration Show. She is scheduled to participate in a va- JoAnn Bortles with best paint of the year 2006 riety of speaking opportunities across that time is money. Wasted time is the country. very expensive and by using the right “We are pleased to welcome products, it makes all the difference in JoAnn Bortles to the Hypertherm team how much profit a shop will make and look forward to reaching an ex- each week,” said Bortles. “I look forpanded automotive audience with ward to showing shop owners and JoAnn’s extensive background and hobbyists the benefits of plasma cutknowledge,” said Reese Madden, di- ting, and breaking the old stereotypes rector of North American Marketing. of plasma from decades ago.” “She brings to our team a multitude of Bortles was the first female to skills and understands the need for break into the motorcycle painting in-
Two Jobbers Expand with Acquisitions
National Coatings & Supplies (NCS), a national paint and body equipment distributor headquartered in North Carolina with over 75 locations in 28 states, has acquired the Grinstead Group, a Louisville, KY-based operation that includes distributor locations in 11 cities in Kentucky, Indiana, Ohio and West Virginia in addition to its corporate office and a customer service center. Grinstead was founded in 1968 and distributes AkzoNobel and BASF automotive refinish products as well as industrial coatings from a variety of manufacturers. NCS distributes DuPont, BASF, PPG & AkzoNobel.
Wesco buys Automotive Paint Specialties Wesco Auto Body Supply, Inc., a paint, body and equipment supplier based in Mountlake Terrace, WA, acquired Automotive Paint Specialties, a jobber with eight locations based in Bend, OR. The acquisition will give Wesco a total of 33 locations throughout Idaho, Oregon and Washington State. Wesco plans to keep the APS locations operating under the Automotive Paint Specialties name and Ben Tuma, founder of Automotive Paint Specialties, has agreed to stay on with
the Wesco Group to assure a smooth transition. Terms of the deal were not disclosed. “We are very excited about this latest acquisition in the Oregon market,” says Wesco VP Roger Howe, who handles acquisitions and corporate affairs for the company. Wesco was started as a single location in Everett, WA, more than 40 years ago by its founder and President Lloyd J. White. “The combined strength of the two companies is very exciting, we will be better positioned to service our customers in all the markets we serve,” said White. “The real success and strength of both companies continues to be the incredible employees. We look forward to continued growth and success as the market continues to consolidate.” This deal, which closed on December 31, is the third acquisition for Wesco in the past 12 months. The company also acquired LDI Automotive Paints, Inc. in Tacoma, WA, and Evergreen Paint, Inc. in Longview, WA, during 2012.
dustry. Her other “firsts” include the following: • First female whose personal bike was featured on the cover of Easyriders Magazine in 2004 • First custom painter/fabricator featured in Southern Living Magazine • First female biker featured on NBC’s TODAY Show • First female painter featured on the cover of Motorcycle & Powersports News • One of the team leaders for the first all-women custom car build for the Specialty Equipment Market Association (SEMA) Mustang Powered By Women Project • First woman to paint and flame a hot rod on MuscleCar TV In addition to her books, painting, and plasma expertise, she is also a journalist with articles published in prestigious industry publications including: American Iron, Easyriders, VTwin, Cycle Source, Ironworks and Thunder Press. She has more than 14 years of experience writing stories featuring how-to articles, bike features, event articles and travel features. Bortles is a certified welder and fabricator, bringing decades of experience in custom fabrication on motorcycles, specialty cars, hot rods, automotive parts and aircraft engine components.
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Original Batmobile Sold for $4.6 Million at Auction
Judge to Rule Soon on Batmobile Copyright Suit
at Barrett-Jackson, the Scottsdale, AZ, rare and classic auto auction house. There was a reserve price for the car, built and owned by famed car customizer George Barris. The one-of-a-kind 1955 Lincoln Futura concept car was originally created by a design team at Ford Motor Co.’s Lincoln styling department. The 19-foot-long, two-seat, bubble-topped grand touring car prototype was entirely hand-built in 1954 by Ghia Body Works in Turin, Italy, and unveiled in 1955 at the Chicago Auto
A Gotham Garage replica of the “1966 car,” the television Batmobile
The iconic Batmobile from the 1960s television show sold for $4.6 million at the Barrett-Jackson classic car auction held in Arizona the weekend of Jan. 19–20. The midnight-black and fluorescent-red-pinstriped car that Adam West’s Batman used to battle villains in Gotham was up for grabs Jan. 19
Show. In late 1965, 20th Century Fox Television and William Dozier’s Greenway Productions tapped Barris to come up with a car to foil Batman’s enemies. Barris said he bought the 1955 Lincoln Futura concept car from Ford for $1, then transformed the Lincoln in just 15 days for $15,000. The car features bulletproof plexiglass bubble windshields and the Bat Ray (dual 450-watt laser beams that blasted obstacles to bits). It also has a Bat-O-Meter, which identified the location of the bad guys, as well as oil squirters (fashioned from lawn sprinkler heads) to foil evil-doers. “I saw the script and it said, ‘Bang,’ ‘Pow,’ ‘Boom,’” Barris, now 87, said. “That’s exactly what I wanted the car to do. I wanted it to be as big a character as the actors.” Since the television show ended in 1968, the Batmobile has been on display at Barris Kustom Industries in North Hollywood, CA, in a gallery. “It’s difficult to part with,” Barris said. “Whoever the lucky buyer is, I hope they have as much fun with it as I did.” The buyer of the car is Phoenixarea logistics company executive Rick Champagne.
New Insurance Laws Take Effect in 2013 New insurance-related laws will take effect in 2013 in a number of states.
California The California workers’ comp benefit delivery system will undergo changes in 2013 as part of SB 863, the Workers’ Compensation Reform Package, which passed in the 2012 legislative session. SB 863 is intended to reduce system costs as a set-off for increased worker indemnity benefits. SB 863 is designed to contain costs in several ways, while increasing permanent disability (PD) benefits for workers. Two goals of the bill were to change the way in which the system deals with PD, and how medical liens and billing disputes are handled.
Florida The Sunshine State’s HB 119 Motor Vehicle Personal Injury Protection (PIP) Insurance was signed into law by Gov. Rick Scott last May. The bill, which has been described as the most significant auto insurance law in years, seeks to clamp down on alleged abuse and fraud, and improve the state’s no-fault PIP system. The medical benefits provisions of the law took effect on Jan. 1, 2013. They include the requirement that accident victims report an auto-related injury and seek
A copyright case involving DC Comics, custom-car builders and the Batmobile from the 1960s Batman television series could reach a conclusion later this month, the Wall Street Journal’s Driver Seat recently reported. In 2011, DC, a unit of Warner Bros. Entertainment Inc., sued car builder Mark Towle, who runs Gotham Garage, a Santa Ana, CA, shop whose business
includes selling hand-built Batmobile replicas. Both sides filed recently for summary judgment and a hearing with a judge is scheduled for Jan. 30. The judge could find in favor of either party or decide the case has to go to trial. The company said the replicas violate copyrights associated with vehicles Batman has used dating to the character’s early comic-book days. Towle and his Los Angeles lawyer, Larry Zerner, counter that
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treatment within 14 days. Policyholders could receive up to $10,000 in benefits for emergency medical care, and $2,500 for less serious injuries.
New Jersey The Garden State planned to implement new rules regarding motor vehicle PIP insurance on Jan. 4, 2013. Proposed changes included adding more procedures to the physicians’ fee schedule to slow rising auto insurance costs. Critics say the new fee schedule limits the types of procedures that could be reimbursed at ambulatory surgery centers (ASCs), and sets hospital outpatient surgical facility fees higher than ASC fees for certain services. The N.J. Association of Ambulatory Surgery Centers is seeking a stay from the court on the implementation of the new rules.
Illinois Beginning in January, SB 0275 will allow state agencies that issue occupational or professional licenses to provide expedited temporary licenses to service members and their spouses who meet certain requirements. This could make it easier for military veterans to enter the insurance profession. Visit InsuranceJournal.com for more information.
36 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
cars are not subject to copyright protection and the Batmobile from the television show—known to fans as “the 1966 car”—has virtually no design connection with earlier comicbook versions. The television car that people of a certain age recall fondly began life in the mid-1950s as a Lincoln Futura concept vehicle for display in auto shows. Legendary car customizer George Barris built the car and, Zerner said, many car builders including his client have made and sold replicas since then. Indeed, another custom car shop called Fiberglass Freaks could play a part in deciding the case. The Logansport, IN, company has been building Batmobile replicas for about nine years and has done so under a license from DC Comics since 2010. Shop owner Mark Racop said the problem started when Gotham Garage began offering its cars through online auctions. Descriptions of the cars included statements suggesting the Batmobile design isn’t protected under copyright and licensing laws, Racop said. The case happens to be unfolding as the original 1966 Batmobile was recently purchased for $4.6 million at auction. See adjacent story.
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3M Assists 19 Collision School Programs with $160,000 in Production Donations via Foundation
Alcoa Awards $40,000 Aluminum Training Grant to Collision Repair Education Foundation
Collision Repair Education Foundation Offers $300,000 in Scholarships and Tool Grants This Spring
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3M has come to the aid of 19 secondary and post-secondary collision programs across the country by donating their Hookit II sets through the Collision Repair Education Foundation. This product donation, valued at $160,000, will ease collision department budgets by providing students with the opportunity to work with upto-date supplies. 3M Marketing Manager Dale Ross said, “3M is honored and pleased to continue our support of the Collision Repair Education Foundation and the many career and technical schools around the country. We are keenly aware that providing stateof-the-art products to these students during their education is vital to ensuring their future and the future of our industry.” Collision Repair Education Foundation Director of Development Brandon Eckenrode said, “According to the surveys and information we receive back from instructors, secondary and post-secondary collision school programs on average have a budget of $6,000 to run their program each year. Through our industry supporters, such as 3M, we are able to as-
The Collision Repair Education Foundation is offering more than $300,000 in scholarships and tool grants to collision students this spring. Secondary and post-secondary collision students attending career and technical schools and colleges have the opportunity to apply for $300,000+ in available scholarships and tool grants available through the Collision Repair Education Foundation and the organization’s industry supporters. The spring 2013 opportunities include: • 3M Hire Our Heroes Veteran Scholarships & Tool Grants • Alliance of Automotive Service Providers Massachusetts (AASP-MA) Tool Grants • ABRA Auto Body & Glass Tool Grants • Alcoa Foundation Aluminum Training Grants • CCC Michael Salvatore Memorial Student Repair Technician Scholarships • Chicago Pneumatic Student Tool Grants • Collision Repair Education Foundation Board of Trustees Scholarships • Collision Repair Education Foundation Scholarships
sist instructors with this minimal budgetary amount to instruct proper collision repair training to the future professionals of the industry. 3M has lead the way in providing product donations to collision school programs the past several years and their commitment to the industry.” Inter-industry organizations and individuals who are interested in supporting the Education Foundation and increasing the amount of assistance provided to collision schools and students should contact Education Foundation Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or 847463-5244. The Collision Repair Education Foundation, founded in 1991, is a not-for-profit organization dedicated to securing donations that support philanthropic and collision repair education activities that promote and enhance career opportunities in the industry. For information on how to donate to programs supported by the Education Foundation, visit us on the Internet at: www.CollisionEducationFoundation.org
• GEICO Scholarship and Tool Grants • I-CAR Northwest Region Scholarships • The Lon Baudoux Legacy Scholarships • PPG Automotive Refinish Scholarships • Service King Tool Chest Grants • Sherwin-Williams Primer Pack Grants • Sterling Autobody Centers Scholarship & Tool Grants Students may apply for scholarships online at CollisionEductionFoundation.org by February 15. All students who apply will receive a free safety kit which includes a complimentary technician shirt/uniform, safety glasses, mechanic gloves and a disposable dust respirator.
Alcoa Foundation, the philanthropic arm of Alcoa, the world’s leading aluminum company, recently awarded the Collision Repair Education Foundation a $40,000 grant that will provide educational and aluminum repair training to post-secondary collision instructors and students. Collision instructors and students will have the opportunity to apply for the aluminum repair training grant as part of the Collision Repair Education Foundation’s spring 2013 student scholarship/tool grant opportunities. Seventeen collision instructor/student pairs will be selected to attend aluminum repair technical training at the I-CAR Tech Centre in Appleton, WI, during the summer of 2013. “The work of the Collision Repair Education Foundation is spot on with our desire to educate and train people for important STEM-related trades including automotive repair,” said Randall Scheps, Director of Marketing for Alcoa Automotive. “As the mix of materials in this market continues to change as consumers seek more fuel-efficient vehicles, this work is even more important. Though it will also make it evident
that working with and repairing aluminum is actually no more difficult that any other material—it’s just different,” Scheps said. Collision Repair Education Foundation Executive Director Clark Plucinski noted, “As more and more of today’s and future vehicles are being constructed with aluminum, it is crucial that repair professionals complete aluminum repair technical training in order to repair consumer’s collision damage properly. Through this Alcoa grant, not only will instructors gain technical training that they can bring back to their classroom for additional students, but the students will have completed industry recognized, I-CAR aluminum repair training making them more employable to the industry. I thank Alcoa for their support and we look forward to working together with them and ICAR on training the future repair professionals of the collision industry.” Collision Repair Education Foundation spring 2013 scholarship and tool grant applications are available online at www.CollisionEducationFoundation.org. Questions? Call 847.463.5244 or email Brandon.Eckenrode@ed-foundation.org.
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NABC Launches Newly Revised Corporate Website The National Auto Body Council (NABC) recently launched an updated version of its corporate website—www.autobodycouncil.org— that includes a timely and comprehensive approach to presenting information on the organization and the programs and services it provides. In addition, the website contains details—some of it being published for the first time—regarding the NABC’s most recent events and initiatives, including Distracted Driving, InLanguage and Operation Comfort. New material is also being made available on long-standing, established projects like Recycled Rides and First Responders Emergency Extraction (FREE). An expanded history on the National Auto Body Council and why it came into being is another noteworthy addition. The website’s layout and organization has been re-designed to be more inviting to visitors, making it easier to find and access the desired information. Online forms make it vastly simpler to submit registration information to the National Auto Body Council, including that for NABC membership and sign-ups and sponsorships for the annual golf fundraiser. Descriptive overviews of the recently introduced
Award of Distinction and Bodyshop Image Award are also available, complete with printable PDF forms for those wishing to nominate individuals for the awards. “Though the website has always contained useful information for our members and those interested in the work of the National Auto Body Council, we thought we could do a better job of delivering it,” said Liz Stein, NABC marketing co-chair. “And since we were going to streamline the website, what better time to bring the information it contains up-to-date to reflect the variety of new programs and services we have begun to deliver. We think visitors will be pleasantly surprised by the changes they’ll see when they land on our site.” Please note that the transition to the redesigned website is in process and that some sections may still under construction. Completion is slated for the upcoming weeks. The National Auto Body Council extends an open invitation to its members and the industry to let us know what they think. Please contact Liz Stein at (888667-7433) or e-mail chuck@autobodycouncil.org if you would like to provide feedback.
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NABC Gives Update on ‘Operation Comfort’ Mission
The National Auto Body Council (NABC) recently announced an update to its formal plan to raise $1.5 million to provide I-CAR curriculum and training to wounded veterans in a partnership with Operation Comfort. Along with NABC website updates, a weekly update of the committees progress, activities and plans will be communicated to the industry atlarge via press releases or “Mission Status” updates. Chuck Sulkala, executive director of the NABC, said “This project has been given highest priority by the NABC board and we will give ongoing updates and total transparency to the entire industry of our efforts.” The plan includes raising $1.5 million to purchase, completely renovate, and equip a 30,000-square-foot training facility in San Antonio, TX, on behalf of Operation Comfort’s Automotivation program. The NABC has raised over $200,000 to date towards this goal. “There is no other program in our industry that connects wounded veterans with entry-level job opportunities in auto body repair. Participants will receive training in collision re-
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pair, estimating, vehicle refinishing and other related topics toward the goal of preparing them for full-time employment in our industry. We have an obligation to help those who have given so much for the freedoms we treasure,” said Sulkala. Founded in 2004, Operation Comfort is a 501 C-3 nonprofit organization that complements the rehabilitation efforts carried out by the U.S. Army at the Brooke Army Medical Center (BAMC). As a form of occupational therapy, the organization runs the AutoMotivation program through which disabled veterans who have served in Iraq and Afghanistan—in many cases those that have lost one or more limbs—are helped with rehabilitation through automotive-related repair activities. Visit www.operationcomfort.org/ automotivation/ for more information. All collision repair-related associations, businesses, body shops and individual collision repairers are strongly encouraged to make donations for this project. For any further information, contact Chuck Sulkala at chuck@autobodycouncil.org or call (888) 667-7433.
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Audatex’s AutoWatch App Updates Customers
Audatex North America, Inc. recently launched a new iPhone app for AutoWatch, its web-powered repair tracking solution. The new app follows the July introduction of an AutoWatch Android app and is available as a free download to all AutoWatch customers via iTunes and the iPhone App Store. AutoWatch gives collision repair facilities a proven way to enhance customer service and improve customer communication by allowing vehicle owners to view the progress of their repairs online. Repairers use the solution daily to upload and post digital photos and the latest vehicle repair status information to an interactive website, keeping customers up to date through completion of the job. Now, repair facilities can upload this same repair status information quickly and conveniently via their iPhones—whether they’re away from the office or working on the shop floor. At the same time, vehicle owners can choose to receive AutoWatch vehicle status updates on the web, via email or text message, and can even share updates with friends via Facebook.
“With both Android and iPhone apps now available for AutoWatch, we’re covering every corner of the smart phone market in order to give shops all the options they need to connect more effectively with vehicle owners,” said Gordon Henderson, Vice President, Collision Repair Services, Audatex North America. “Better communication not only leads to an improved claim experience, but also translates into more referral business as well as stronger DRP relationships.” Hundreds of AutoWatch users are now taking advantage of the mobile apps to issue instant repair updates from their smart phones, according to Henderson. “I really like the ease and convenience of the AutoWatch iPhone App,” said Greg James, Manager of Rick Warner Body Shop in Salt Lake City, UT. “Having AutoWatch in my pocket on my phone has certainly helped me keep my customers better informed of their repair status.” Henderson added, “The mobile apps are taking off as AutoWatch has been proven to reduce incoming customer phone calls, compress cycle times and, ultimately, increase customer satisfaction.”
Centenarian Donates Rolls-Royce to Museum after 78 Years of Use, Noting U.S. Manufacturing Allen Swift died in 2005 at the age of 102 and had owned a Rolls-Royce automobile longer than anyone else in the world. He had the forethought and funds to ensure its future preservation after his death.
The young man was passionate about his green-over-green soft-top convertible, not only driving it on a regular basis, but maintaining it meticulously over the decades (the two door-received a complete bodyoff restoration and engine rebuild in 1988). Rolls-Royce acknowledged Mr. Swift in 1994, awarding him a crystal Spirit of Ecstasy award for his length of ownership. By 2005, Swift had logged more than 170,000 miles on its analog odometer and he was recognized as the oldest living person to have owned a car from new. He passed away that year. Swift left the Lyman & MerAllen Swift drove his Rolls-Royce for 78 years rie Wood Museum of Springfield before donating it to a museum to ensure its History a $1 million gift to crepreservation ate a new exhibition to care for In 1928, while living in Spring- his roadster and tell the story of field, MA, Swift’s father gave him a Rolls-Royce manufacturing in the 1928 Rolls-Royce Piccadilly P1 Massachusetts town. Roadster as a graduation present. Today, Mr. Swift’s beautiful PicSpringfield and Rolls-Royce cadilly P1 Roadster is prominently dishave a history—from 1920 to 1931, played in the museum’s Transportation the British automaker built 2,944 ve- Collection. hicles in the city as part of its attempt to establish a U.S. plant.
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I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
I-CAR: Necessary Culture Changes for Blueprinting Process Blueprinting is a term often heard in the will be involved. To be successful, implement small changes at first, so the steps necessary to repair a vehicle. For example, the “extra work” at perceptions must be changed. that the people who are resistant to collision repairDistinctive industry. Blueprinting those Dealerships means different things to different peowith Larry Williams ple, but blueprinting really is establishChanging Staff Perceptions ing a standard operating procedure The blueprinting process requires a (SOP) that allows for the discovery of culture change throughout the repair all the damages before repairs begin. As facility. It also requires input from the part of the blueprinting process, all the entire team, not just management, to parts should be identified right down to be successful. To change the culture, the blend panels and the clips that are with Lee Amaradio Jr. needed. The correct repair information should be found along with any color matching that needs to be done. Following these steps and others, before repairs begin, will eliminate the problems that arise from finding additional damage during the repair process, which can interrupt and delay the repairs on that Figure 1 The estimator is working with a vehicle. Worse yet, is when the vehicle disassembly technician at the vehicle, as it is being disassembled is repaired incorrectly because vehicle maker repair procedures were not folit may take some time for everyone to lowed. get onboard with the changes. They One of the biggest challenges to may feel that the new system will afimplementing the blueprinting process fect their efficiency and the work they may be the staff’s perception of what produce. That is one of the reasons to
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making the changes can see positive results immediately. It is also important to change the staff’s thought process from being an individual to a team concept (see Figure 1). This is where everyone involved in the repair process is responsible for all the repairs of all the vehicles, not just the person who did a particular task. This does not mean that everyone does the same tasks or needs to work on all the vehicles that come through the repair facility. What this does mean is that the words “that’s not my job” should be eliminated from everyone’s vocabulary. By changing to a team approach, when one person is struggling with something, there is always someone to offer assistance or guidance. The people involved in the blueprinting process also need to understand that one of the main concepts of blueprinting is rearranging the order of
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with Janet Chaney
Figure 2 An estimator is taking preliminary measurements using the Matrix Wand measuring system
was traditionally done throughout the repair. By doing this work in the beginning, all of the repairs can be completed in a complete, efficient, and timely manner. An example of this would be disassembling a blend panel before the vehicle enters the repair technician’s stall, and finding that a door molding is a one-time use molding. By identifying
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this one-time use molding in the beginning of repairs, it allows the part to be ordered and prevent the vehicle from being delayed due to a missing part. Some staff members may not be willing to make the necessary changes to the new blueprinting process. In this case, the person in charge may have to make some hard decisions. If this person can be convinced to try the changes, they’ll most likely get onboard with the changes. If the person refuses to change what they’ve always done, the blueprinting process will be difficult, if not impossible to implement. Unfortunately, it may end in the manager and technician deciding to part ways; this is never an easy decision. A disassembly blueprint estimator is an example of one of the many options for implementing the blueprinting process. With this option, the person that does the disassembly is also the one submitting the completed damage report. Another option is a dedicated technician and estimator working together in a dedicated stall. This system allows for the two people to develop an SOP so that they can be consistent in the blueprinting process. How blueprinting is implemented will be influenced by the size and con-
figuration of the repair facility (see Figure 2). Whatever system will work in the repair facility is what should be implemented. While all vehicles and collisions are different, the blueprinting process for each repair can remain consistent. It is important that once the process starts, the same blueprinting process must be followed on each vehicle. However, this does not mean that the blueprinting process cannot evolve and change. Once the blueprinting process is in place, there will be steps in the process that may require modification and improvement. For more information on implementing the blueprinting process, take the I-CAR Live Demo “Blueprinting Process and Damage Discovery (BLU01)” course. This interactive course defines the blueprinting process and helps improve repair quality while streamlining efficiencies through a standardized approach to collision repair planning. During this course, the instructor uses an actual vehicle to demonstrate technique to help students uncover hidden damage that impacts the repair process. To find a class near you and to register, visit www.i-car.com and use the Live Class Search Feature.
Continued from Cover
Strong Sales for 2012
factors continue to improve, the New York Times reported. Ford predicts that industry sales could reach as high as 16 million vehicles in 2013 as more consumers trade in older cars and buy new, more efficient models. “For the industry, 2012 was mission accomplished,” said Jesse Toprak, an analyst with the auto research site TrueCar.com. “Companies are hitting their sales goals, and they are doing it with fewer incentives.” “The U.S. light vehicle sales market continues to be a bright spot in the tremulous global environment,” said Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm.
Volkswagen Volkswagen led all major automakers with sales up a staggering 30.6% for the year, and 29.9% in December, led by the redesigned Passat midsize sedan. VW sold more than five times as many Passats last year as it did in 2011.
Toprak, vice president of industry trends for TrueCar, said VW has the right mix of value and attractive vehicles and called the company “the force to watch in the next several years in the U.S. market.”
Toyota Toyota, which has recovered from an earthquake and tsunami that crimped its Japan factories two years ago, said that sales jumped 26.6% for 2012. Its December sales were up 9%. Unlike 2011, the company had plenty of new models stocked in showrooms for most of last year. Toyota’s top sellers were the Corolla, Camry and Prius.
Subaru Subaru reported a record sales month in December, saying its December sales of 36,653 vehicles is the best sales month in its history. Subaru also announced record-breaking annual sales of 336,441, which represents a 26% increase over 2011. This is the fourth consecutive year of sales records for Subaru of America and fifth consecutive year of sales increases. Annual sales for the Impreza increased nearly 150% over 2011. Year-
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to-date sales for the newly-refreshed Outback and Legacy models increased 13% and 11% respectively. The newly introduced BRZ and XV Crosstrek models also added 3,906 incremental sales for the month of December and 11,540 units for the year. “We met our goals for the year and we crossed a new milestone by exceeding 300,000 annual sales,” said Thomas J. Doll, executive vice president and COO, Subaru of America, Inc. “It was a great year for Subaru of
compact car’s best monthly sales performance since it went on sale in June, with a sales total of 6,100 in December. Also contributing to Chrysler Group’s 10% increase were the Fiat 500, Jeep Wrangler, Dodge Challenger, Dodge Journey, and Ram Cargo Van, each setting a sales record for the month of December. The Jeep Grand Cherokee, the most awarded SUV ever, recorded its best sales performance of the year in December.
Top-selling cars and trucks in the US in 2012
Automakers reported U.S. new car and truck sales for December and all of 2012. These were the top sellers in 2012, and the percentage sales rose or fell from 2011.
Vehicle
Ford F-Series Chevrolet Silverado Toyota Camry Honda Accord Honda Civic Nissan Altima Ram pickup Toyota Corolla Honda CR-V Ford Escape
Source: Autodata Corp.
Total 2012 sales 645,316 418,312 404,886 331,872 317,909 302,934 293,363 290,947 281,652 261,008
America. The popular XV Crosstrek, all-new 2014 Forester and an upcoming hybrid will fuel our growth in this new year.”
Honda Honda sales rose 24% for the year and ended 2012 on a high note with a 26.2% jump in sales in December. Its bestsellers were the Accord and Civic.
Chrysler Chrysler, the smallest of the Detroit carmakers, had the best year among U.S. companies. Its sales jumped 20.6%. December sales rose 10.4%, the strongest December sales in five years. Chrysler reported U.S. market share rose to 11.2% in 2012, up from 10.5% share in 2011. The all-new Dodge Dart, which recently earned a Top Safety Pick from the Insurance Institute for Highway Safety, played a big role in Chrysler Group’s big sales increase in December. Dart sales were up 36% month-over-month in December, the
Percent change from 2011 10.3% 0.8% 31.2% 40.8% 43.7% 12.6% 19.9% 21.1% 29.0% 2.6%
The Jeep brand’s 13% sales increase in the U.S. helped push its global sales to an all-time record in 2012. Seven Chrysler Group models set annual sales records in 2012. The Chrysler, Dodge, Ram Truck and FIAT brands each posted year-overyear sales gains in December compared with the same month last year. The FIAT brand’s 59% was the largest sales gain of any Chrysler Group brand for the month, and set a sales record for the month of December. “Looking back on 2012, we were again one of the fastest-growing automakers in the country with total sales up 21%. We also recorded 33 consecutive months of year-over-year sales growth and our strongest annual sales in five years. Finally, seven of our vehicles recorded their best ever annual sales in 2012, demonstrating how the quality, design and fuel efficiency of our product line up continues to resonate with consumers,” said Reid Bigland, President and CEO, Dodge Brand and Head of U.S. Sales.
44 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
Editors of Motor Trend named the new 2013 Ram 1500 the magazine’s 2013 Truck of the Year, and five Chrysler models received the 2013 Consumer Guide® Automotive ‘Best Buy’ Award: Dodge Grand Caravan, Journey and Durango; Chrysler Town & Country, and Ram 1500.
Nissan and Infiniti Nissan and Infiniti sales were up nearly 10% as the Nissan brand topped 1 million in annual sales for the first time. But Nissan said its December sales dropped by 1.6%.
Hyundai For the Hyundai brand, U.S. sales rose 17% in December, capping off a 9% sales increase for the full year to a record 703,007 vehicles, the Korean automaker’s best year in the U.S.
GM and Ford But full-year sales at Ford and General Motors lagged. GM’s rose only 3.7% for the year, while Ford edged up 4.7%. For December, GM sales rose 4.9%, while Ford was up only 1.6%. GM’s December increase was primarily because of new products
like the Cadillac ATS sedan and higher incentives on its Chevrolet Silverado and GMC Sierra pickups. The Detroit News reported that GM sales of the plug-in hybrid Chevrolet Volt tripled in 2012. U.S. sales of the Volt for 2012 will top 23,000 for the year, said Michelle Malcho, a spokeswoman for GM. Volt sales got a boost when California granted solo drivers access to carpool lanes. GM spokesman Jim Cain says 1-in-3 Volts are now sold in the Golden State. The company abandoned its 2012 U.S. sales forecast of 45,000, saying it would instead match supply to meet demand. GM executives said the company has the oldest model lineup in the industry, yet it still posted a sales increase and commanded high prices for cars and trucks. The company plans to refurbish 70% of its North American models in the next 18 months and expects to boost sales this year. Ford reported only a slight sales increase in December due to safety recalls for its new Escape SUV and Fusion sedan which saw a big drop in sales. However, the sales drop for those cars was mitigated by strong
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sales for Ford’s two smallest cars, the Focus and the Fiesta, both of which increased in sales by more than 50%. Ken Czubay, head of Ford’s United States sles and marketing, said the company’s small-car sales were its best in more than a decade.
While Ford didn’t match Toyota with the best-selling-car title, Ford did top two million U.S. sales in 2012 and can boast having a top-selling brand.
Kia In December, Kia sales fell by nearly 10%, its first monthly decline in more than two years. Kia spokesman Scott McKee declined to comment on the reasons for the December sales decline. But, despite the December hiccup, Kia sold a record 557,599 vehicles in the U.S. market last year, up 15% compared with the overall U.S. auto industry’s 13% gain. After a relatively quiet year in 2012, Kia is poised for a big year on the new product front in 2013. In a statement, Kia Motors America CEO Byung Mo Ahn said the brand plans to launch seven new or reworked vehicles in the next 12 months.
BMW BMW tops the U.S. luxury auto sales in 2012, with a reported sales increase of 34.7% in December. BMW can lay claim to the 2012 U.S. luxury auto sales crown for the second year in a row with an increase of 13.5% in sales over last year.
Mercedes-Benz Also saw its best year ever for U.S. sales and came in second place for luxury sales with a 15.4% sales increase over 2011.
Pickup Deals December featured year-end deals on big pickup trucks. GM offered discounts of up to $9,000 to help clear growing inventory. The move worked. GM cut its full-size pickup supply from almost 246,000 at the end of November to just under 222,000 as the year came to a close. Overall, though, analysts said the industry eased up on promotions such as rebates and low-interest financing. Car and truck buyers paid an average of $31,228 per vehicle last month, up 1.8% from December 2011.
2013 Forecasting Auto sales in 2013 will be even stronger,
predicts an auto industry research firm. The firm says a healthier economy and more new model introductions should push U.S. auto sales above the 15 million mark this year. The Polk research firm joins many other analysts in predicting 2013 sales at or above 15 million. The consulting firm LMC Automotive, for instance, expects 2013 sales of around 15 million, up from 14.5 million in 2012. Polk says auto sales should continue to lead the country’s economic recovery, rising nearly 7% over 2012 to 15.3 million new vehicle registrations. Polk, based in Southfield, MI, expects 43 new models to be introduced, up 50% from last year. New models usually boost sales. All eight of the top manufacturers are strong and introducing new vehicles, and that should bring competition and lower prices in those segments, according to Tom Libby, lead North American analyst for Polk. Polk predicted a handful of other trends for 2013. Sales will grow for big pickups, which are very profitable for automakers. Demand has been depressed for five years due to the weak economy, but should get a lift in 2013
thanks to redesigned trucks from GM, Toyota and Ford. Polk also said the midsize sedan segment will continue to lead the industry. It’s now at 18.5% of the market, 2 percentage points larger than any other type of segment. “Recent redesigns of nearly every vehicle in the midsize segment are forcing more competition and continued growth,” said Libby. Polk does not expect pre-recession sales levels of 17 million for several more years, said Anthony Pratt, Polk’s forecasting director for the Americas. Auto sales peaked at about 17 million in 2005, but dropped to 10.4 million in 2009, the lowest level in more than three decades. But Polk’s optimistic forecast firm hinges on Washington reaching an agreement on spending cuts, which could happen later in the year. On New Year’s Day, congress approved a compromise to avoid the so-called “fiscal cliff.” The deal raises taxes for incomes exceeding $400,000 for individuals and $450,000 for couples. But it delayed action on dramatic federal spending cuts and debt, setting up another showdown in a divided Congress.
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U.S. Fines Toyota $17 Million for Not Quickly Reporting Problems, Delaying Recall
The U.S. government hit Toyota fine is a tiny fraction of Toyota’s earnMotor Corp. with a record $17.4 mil- ings. The company posted a $3.2 billion fine for failing once again to re- lion profit in the third quarter alone. port problems in a timely manner to Toyota said it agreed to pay the to this Southwest Edition? federal regulators and for delaying a penalty without admitting any violasafety recall, the Claims Journal re- tion of the law. It also pledged to ported in December. strengthen data collection and evaluaThe fine against the world’s tion to make sure it takes action more autobodynews.com biggest automaker from the National quickly. Highway Traffic Safety Administra“We agreed to this settlement in tion, the agency that monitors vehicle order to avoid a time-consuming dissafety, is the maximum allowed by pute and to focus fully on our shared law. It’s the Promote fourth fine your levied business against commitment with NHTSA to keep ness with with Toyota in the past two years for simi- drivers safe,” Ray Tanguay, the comfeaturing an and exclusive article lar infractions, it’s the largest sin-featuring pany’s chief quality officer, said in a gle fine ever assessed against a statement. services. your products or car services. company over safety defects. In 2010, The latest fine stems from a June Toyota paid a total of $48.8 million in recall of SUVs from Toyota’s Lexus fines for three violations. luxury brand. About 154,000 of the The latest infraction raises ques- 2010 Lexus Rx 350s and RX 450h tions about whether the fines are big models were recalled because the drior details! Call forthat details! enough to deter automakers with- ver’s-side floor mats can trap the gas hold information from NHTSA, and pedal and cause the vehicles to speed 251 whether the government 800-699-8251 agency can up without warning. The problem was do enough to stop repeat offenses. The similar to troubles from 2010 that
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Global Electric Vehicle Sales Could Reach 3.8 Million by 2020, Research Firm Says
Sales of plug-in electric vehicles and of hybrid electric vehicles are expected to grow exponentially throughout the decade as the number of affordable vehicles increases and the charging infrastructure to support them continues to improve, says a new report that claims that the market for electric vehicles is still in its early stages. According to the report from Pike Research, this will lead to sales of more than 3.8 million a year by 2020. “Sales of electric vehicles have not lived up to automakers’ expectations and politicians’ proclamations, but the market is expanding steadily as fuel prices remain high and consumers increasingly seek alternatives to internal combustion engines,” says senior research analyst Dave Hurst. “Indeed, sales of plug-in electric vehicles will grow at a compound annual growth rate of nearly 40% over the remainder of the decade, while the overall auto market will expand by only 2% a year.” Hybrid electric vehicles, such as the Toyota Prius, which use a traditional petrol or diesel engine alongside an electric motor, have been on general sale throughout the world for over a decade, and as cheaper mass-produced plug-in electric vehicles such as
the Nissan Leaf, plus plug-in hybrids electric like the Chevrolet Volt (that use a petrol or diesel engine to charge the electric battery) have started to come to the global market since 2010.
prompted a series of embarrassing safety recalls by the company. Toyota has recalled more than 14 million vehicles globally to fix sticky gas pedals and floor mats. The recalls tarnished the company’s sterling reputation for reliability and cut into sales. Recently its sales have rebounded as it appeared to put the safety problems in the rear-view mirror. But NHTSA said that Toyota failed to report acceleration problems in the Lexus SUVs within five business days of discovering them, as required by U.S. law. The agency said it began investigating the SUVs early this year after receiving complaints from consumers. In May, the agency contacted Toyota about the problem, and it took the company a month to report 63 incidents of floor mats trapping gas pedals, NHTSA said. “I expect Toyota to rigorously reinforce its commitment to adhering to United States safety regulations,” U.S.
Transportation Secretary Ray LaHood said. Next year, the maximum fine NHTSA can assess will double to $35 million. Toyota, NHTSA said, agreed in a settlement to make internal changes to comply with U.S. laws. In an August interview, Jim Lentz, Toyota’s highest-ranking U.S. executive, told The Associated Press that the company was obeying the law in giving information to NHTSA. In 2010, Toyota paid two $16.4 million fines and one $16 million fine, all for reporting violations. NHTSA said at the time that the company didn’t report problems with sticking gas pedals in a timely manner, nor did it report problems with floor mats trapping gas pedals. Toyota also told NHTSA that a recall of commercial trucks in Japan for a steering problem did not affect U.S. vehicles. But a year later, the company recalled similar vehicles in the U.S.
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In the US, the latest figures from the Electric Drive Transportation Association (EDTA) projected that sales of plug-in electric and plug-in hybrid vehicle sales more than doubled in 2012, hitting 44,888 compared with 17,735 in 2011 (this includes business fleet as well as individual consumer sales). However, the figure represents less than 0.5% of all types of cars sold in the country over the same period, estimated by EDTA in December to total 13.08 million, and this week projected to reach 14.5 million, according to Ward’s Auto and Autodata.
46 FEBRUARY 2013 AUTOBODY NEWS | www.autobodynews.com
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