Southwestern Edition
Texas Oklahoma Louisiana New Mexico
33
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VOL. 33 ISSUE 2 FEBRUARY 2015
Recent Transfer of Auto Body Lawsuits to Florida Causes Concern in Industry
El Paso Body Shops Respond to Charges Against Neighboring Shop for Deceptive Trade Practices
See Concern in Industry, Page 16 There is a growing concern in the collision repair industry about two key lawsuits States Part of MDL or About to File recently transferred to the Middle District of Florida. Some reports have indicated that the lawsuits have been consolidated, but that’s not the case. Courts have ruled they will be included in the pretrial hearings of the antitrust Blue States: Already Filed Red States: About to File multidistrict litigation
KFOX14 Investigates has reported in several stories run since last August that charges are pending against Cesar Lopez, the owner of Formula One Collision Center in East El Paso. Lopez now faces three trials on charges of deceptive trade practices. Customers told KFOX14 in some cases they waited up to a year before they got their cars back. “It does hurt the image of the independent shops. It shouldn’t be that way. Independent shops are independent shops, we are family owned businesses,” said Sergio Lewis, owner of Sergio Lewis Body Shop in East El Paso. Those in the business of repair vehicles say the negative attention from one shop casts a shadow on the rest. “In this industry we are mechanical doctors, exterior body doctors and it should be held that way. And it’s sad
by Stacey Phillips, Assistant Editor
(MDL) filed by auto body shops against insurers in 2014.
Top 2015 Body Shop Resolutions Suggested by 3M™
Resolution #1 – Make more money in the paint booth! The paint booth is frequently the leading culprit when it comes to waste in the body shop. From solvent waste, paint waste and wasted time for cleaning and maintenance, it adds up quickly. But one simple change in the See Top 2015 Resolutions, Page 14
P.O. BOX 1516, CARLSBAD, CA 92018
Many New Year’s resolutions involve your health, like getting in shape, eating healthier or reducing the stress in your life. But are you making New Year’s resolutions that improve the health of your body shop? Changes in the tools, solutions and systems that you are using in your body shop can have a significant impact on your shop’s performance in the year ahead – from productivity to margin improvement, KPI performance and the ability to repair the advanced materials found on today’s
new vehicles. Here are the top five resolutions you might want to consider as you plan for 2015, courtesy of 3M Automotive Aftermarket, which work with thousands of body shops across the country to help improve performance and profitability.
Change Service Requested
Improve Profitability, Increase Productivity, Reduce Rework and Get Ready for Advanced Materials
by KFOX14 TV News
when you get a negative spin and it doesn’t help perception of the collision repair industry,” said Lewis. John Morales, general manager of Body Masters Collision, said when one local shop runs into trouble with the law it impacts other shops because a big part of the industry is bringing in new business. “We do rely on new customers and building the trust with the new customers,” said Morales. Morales said to protect themselves from being ripped off customers need to be involved. He suggests customers should ask what type of warranty they’ll receive from the shop. “You want to ask what kind of warranty you’re getting once you take your vehicle. If it’s just a mechanical warranty, body warranty and your paint warranty—there’s different kind of warranties and you’re always going to want to ask about them,” said See El Paso Body Shops, Page 12
Cesar Lopez Responds to Criticism and Charges on p. 10
Collision Repair Industry Associations Make Their 2015 New Year’s Resolutions by Chasidy Rae Sisk
For most people, New Year’s Eve is a time to reflect on the past year and make resolutions for the incoming year. Collision repair industry associations have also started preparing for next years by setting their sights on what they can do to improve the industry for their members. Several association leaders shared their New Year’s Resolutions for 2015 with Autobody News. In 2015, Howard Batchelor, Executive Director of the Georgia Collision Industry Association (GCIA), hopes to “have a better working relationship with insurance companies. Insurers are in the business to sell policies and settle claims. They should
allow the collision center that has the training and OE recommended repairer processes to repair these vehicles in a proper manner since the repairer has their name on the repair and should not be interfered with in making repair decisions.” For the Independent Damage Appraisers Association (IADA), “our New Year’s resolution is to try and increase membership, making sure we recruit and approve only the most experienced firms with advanced technical skills. We also plan to hold repair seminars to make sure our members are properly trained to identify and appraise damages to the everincreasing high tech vehicles. We have selected Charlotte, NC as the site See New Year’s Resolutions, Page 32
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Contents Auto Insurer in LA Sued for Underinsuring
Motorist. . . . . . . . . . . . . . . . . . . . . . . . 37
Car Insurance Rates in NM Vary by
over $200 . . . . . . . . . . . . . . . . . . . . . . 10
Collision Repair Shops Brace for Challenges
of Aluminum Bodywork . . . . . . . . . . . . 20
Detroit News Reports New F-150 Insurance Costs are Unclear but Likely Marginally
Higher . . . . . . . . . . . . . . . . . . . . . . . . . 42
Cesar Lopez Responds to Criticism
Ed Foundation Taking Grant Applications
Christian Brothers Automotive Opens New
El Paso Body Shops Respond to Charges
and Charges . . . . . . . . . . . . . . . . . . . . 10
Location in Pflugerville, TX. . . . . . . . . . 10
Collision Fatalities in Texas Continue to Rise . 9
for Schools . . . . . . . . . . . . . . . . . . . . . 42
Against Neighboring Shop for Deceptive
Trade Practices . . . . . . . . . . . . . . . . . . . 1
Contributory Negligence Asserted in
ETI Nominations for Board Members
Dave Smith & Sons Autobody Shop in
Fake Drivers’ License ‘Ringleader’
Enterprise Acquires Open Road Rent A Car’s
Fix Auto to Hold Annual Conference
Hodges Collision Centers in TX
Ford Executive: Aluminum Mostly
Icy Roads in Abilene, TX Lead to
Forward Lift Redesigns Website to Help
Registration Now Open for ToolTech 2015 . 8
Maaco President Goes “Under the Hood” to
OK Has Many Irons in the Fire . . . . . . . . 4 Fleet and Business Assets in Texas . . . . 4 Transfers Manager . . . . . . . . . . . . . . . . 10 “Overwhelming” Business . . . . . . . . . . . 9
Service King Donates $65,000 to TX
Children’s Center . . . . . . . . . . . . . . . . . . 6
Sisk - OK Attorney General and Local Auto Body Shops Warn Consumers About
Steering. . . . . . . . . . . . . . . . . . . . . . . . 28
until January 16 . . . . . . . . . . . . . . . . . 44 Sentenced to 6 Years . . . . . . . . . . . . . . 43 Sept. 20–23. . . . . . . . . . . . . . . . . . . . . 45 for Trucks . . . . . . . . . . . . . . . . . . . . . . 30 Users Find Vehicle Lifts and Accessories. 33
Inspect His Business on Award-Winning
Reality Series. . . . . . . . . . . . . . . . . . . . 40
Mercury Insurance Ordered by California’s Insurance Commissioner to Pay
$27.5 Million Fine . . . . . . . . . . . . . . . . . 3
Texas Man Awarded $4M After Alleged Neck . 6
Murphy’s Autobody in AR Donates Car
TX Collision Suit Settled Early. . . . . . . . . . . 6
New Chief Holding Equipment Upgrades
TX Man Suing Over Injuries Post Collision . 8 COLUMNISTS
to Single Mom . . . . . . . . . . . . . . . . . . . . . 4 Existing Frame Racks to Allow
Aluminum and HSS Repairs . . . . . . . . . 18
Attanasio - Accident App is Pushing All the
OSHA Tops 3000 Whistleblower Cases
Attanasio - Does Being a Green Shop
Recent Transfer of Auto Body Lawsuits to
Franklin - Re-Structuring For Renewal . . . 30
RUPES Brings Collision Repair Tools to
Right Buttons for Ohio Shop Owner . . . 34
Improve the Bottom Line? . . . . . . . . . . 22
Yoswick - Retro News . . . . . . . . . . . . . . . . 3 NATIONAL
2015 Vehicle Lifting Points Guide
for First Time . . . . . . . . . . . . . . . . . . . . 42
Florida Causes Concern in Industry . . . . 1
U.S. Through Acquisition of Cyclo
Toolmakers . . . . . . . . . . . . . . . . . . . . . 44
Specialized Technical School in TX Preps
8th Graders for Automotive Education . . 9
Now Available . . . . . . . . . . . . . . . . . . . 45
Three Sentenced in LA Auto Insurance
Manteno Auto Body Man Steps up
Top 2015 Body Shop Resolutions
A Lean Process Helps Shops Become
Top Honors from IIHS Have Nearly
As Red-Light Cameras are Discontinued
Update on Monthly Association Meeting
A Father’s Dying Wish Coming True:
to Save a ‘Cuda’ . . . . . . . . . . . . . . . . . . 45
More Efficient and Profitable . . . . . . . . . 26 Due to Lawsuits, Speed Cameras get
Fraud Scheme . . . . . . . . . . . . . . . . . . . . 8
Suggested by 3M™ . . . . . . . . . . . . . . . . 1
Doubled Since 2013 . . . . . . . . . . . . . . 41
in LA . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Green Light . . . . . . . . . . . . . . . . . . . . . 37
Usage of Abrasives in the Auto Industry
in Collision Repair Shops . . . . . . . . . . . 36
VeriFacts Celebrates 3 Million Coaching
AudaExplore Technology Driving Performance
Axalta Launches ‘Color Block’ Blog . . . . . 44
Collision Repair Industry Associations Make Their 2015 New Year’s
Resolutions . . . . . . . . . . . . . . . . . . . . . . 1
Has Shifted to Suppliers. . . . . . . . . . . . 18
Observation Milestone . . . . . . . . . . . . 29
Volkswagen to Add 100 Dealerships by 2018, 650 Current Dealerships are
Fewest of Major Brands . . . . . . . . . . . . 43
commensurate with the amount of money that was unlawfully collected from Mercury policyholders.” The commissioner’s decision comes after an exhaustive process that included a full evidentiary hearing conducted by an administrative law judge. The hearing included 15 days of testimony, extensive exhibits and legal briefs. The administrative law judge found that there were at least 180,000 transactions in which Mercury auto policyholders were charged fees that had not been approved. After all of the evidence and legal arguments were considered, the independent administrative law judge recommended the commissioner impose the $27.5 million fine on Mercury. Brokers are allowed to charge fees. But in this case, those who were identified as brokers were actually functioning as agents, and therefore, their fees had to be filed as part of Mercury’s rate filing and approved by the commissioner, which Mercury failed to do.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
TX Collision Suit. . . . . . . . . . . . . . . . . . . 8
California Insurance Commissioner Dave Jones ordered Mercury Insurance to pay a fine of $27,593,562 million because the company’s auto insurance consumers were charged unapproved “broker fees.” Mercury did not obtain the commissioner’s approval for the “broker fees” and so consumers paid more than the approved rates. Proposition 103, passed by the voters in 1988, prevents auto insurers from charging excessive rates and requires that rates be approved by the commissioner. Despite being advised against doing so by the Department of Insurance, from 1999 through 2004, Mercury’s insurance agents charged and collected these unapproved fees on more than 180,000 transactions, improperly collecting $27,593,562 million from consumers. “Mercury auto insurance consumers paid $27.5 million in unapproved fees,” said Commissioner Jones. “While the $27.5 million fine against Mercury is significant, it is
Assured Performance . . . . . . . . . . . 10 Axalta Coating Systems . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 33 Bob Howard PDC . . . . . . . . . . . . . . 11 Car-Part.com . . . . . . . . . . . . . . . . . . 14 CCC Information Services . . . . . . . . 7 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 27 Chevyland . . . . . . . . . . . . . . . . . . . . 16 Classic BMW . . . . . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 Don Carlton Auto Group . . . . . . . . . 18 Equalizer Industries, Inc . . . . . . . . . 12 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 39 Fowler Honda . . . . . . . . . . . . . . . . . 28 Freedom Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 23 Gillman Acura . . . . . . . . . . . . . . . . . 37 GM Wholesale Parts Dealers . . . . . 43 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . . 6
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. ©2015 Adamantine Media LLC.
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Southwest
REGIONAL
Mercury Insurance Ordered by California’s Insurance Commissioner to Pay $27.5 Million Fine
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Huffines Hyundai Plano . . . . . . . . . 34 Hyundai Wholesale Parts Dealers . 38 Kia Motors Wholesale Parts Dealers. 35 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mac Haik Ford. . . . . . . . . . . . . . . . . . 9 Martech Services Company . . . . . . . 4 Mazda Wholesale Parts Dealers . . . 45 Mercedes-Benz . . . . . . . . . . . . . . . . 15 Mike Calvert Toyota. . . . . . . . . . . . . 36 Mitsubishi Wholesale Parts Dealers . 40 MOPAR Wholesale Parts Dealers . . 31 North Freeway Hyundai . . . . . . . . . 26 Ray Huffines Chevrolet . . . . . . . . . . 29 Reliable Chevrolet. . . . . . . . . . . . . . 30 SATA Spray Equipment . . . . . . . . . 19 Scoggin-Dickey Buick . . . . . . . . . . . 8 South Pointe Chrysler-Jeep-Dodge. 21 Toyota of Fort Worth . . . . . . . . . . . . 20 Toyota of Laredo . . . . . . . . . . . . . . . 32 Toyota Wholesale Parts Dealers . . . 41 Valspar Automotive . . . . . . . . . . . . . 13 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 42 Volvo Wholesale Parts Dealers . . . . 44 Young Chevrolet . . . . . . . . . . . . . . . 22
www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 3
Dave Smith & Sons Auto Body Shop in OK Has Many Irons in the Fire by Anny Sivilay, sequoyahcountytimes.com
Dave Smith and Sons Autobody shop has been in business in Sallisaw, OK, for about 11 years, getting its start at Dave Smith’s home in the Central area. The 57-year-old mechanic and his wife Martha, relocated their family from the San Bernardino, Los Angeles, area in 1991, to settle in Sequoyah County. Smith said his cousins have family in the Fort Smith area and when he helped them moved he happened to find a place next door to them. They never moved into that property, instead, made a home in the Central area where he and his wife still live. “I brought the kids out here to try and get a change of life. When we came out here we had six kids, Brianna, the youngest, was born out here,” he said, adding that all of his children attended Central Schools. Smith said he has worked in auto body since the age of 12 and self-employed his whole life. “My father, he was a mechanic when I was born and I just kind of followed in his footsteps and got into the body work part of it,” he said. “My brothers, and all my family, are in mo-
torcycles. So I started building motorcycles when I was young and been doing that my whole life.” Smith worked from home in the Central area when he first moved from California, working primarily on Harley’s and hotrods before he decided to open shop in Sallisaw about 11 years ago. “When the kids got older they wanted to work, and I had all the equipment for a body shop so I opened one here in town,” he said. “Sallisaw’s been good to us. We were able to come out here and start our business and do whatever we wanted to do.” Smith’s business slowly expanded to incorporate full auto body work and a mechanic shop, working on both motorcycles and cars. They added a mechanic shop to their business after buying the shop next door. “I do more of the motorcycles myself, because I know more about it. My boys and my employees do the body work part of it and I step in when I have to,” he added. Four of Smith’s sons work for him, as well as his daughter and wife, who do part-time secretarial work. Two of his sons attended Carl Albert to study mechanics, and another one of his sons, Lyall, recently returned home from the military with his wife
Enterprise Acquires Open Road Rent A Car’s Fleet and Business Assets in Texas Enterprise Holdings announced on December 18 that it has purchased 1,400 vehicles from Open Road Rent A Car, an on-site rental car provider at select Toyota dealerships in Texas. The rental car company is transitioning Open Road’s programs to its local Enterprise Rent-A-Car offices in the Houston, Dallas/Fort Worth and San Antonio areas. Terms
of the transaction were not disclosed. “During the last two weeks, we have been visiting local Toyota dealerships, along with Open Road representatives,” explained Dave Livon, Senior Vice President at Enterprise Holdings. “Our hope is that the majority of these dealers will decide to participate with us. We are already serving these three key Texas markets with our communityfocused car rental neighborhood network, so this new opportunity offers
up a lot of efficiencies and flexibility.” Enterprise has 5,500 offices within 15 miles of 90 percent of the U.S. population. In the state of Texas alone, there are more than 550 locations. “We are looking forward to working with our local Enterprise Rent-A-Car team,” said Mark Haas, President of Fred Haas Toyota. “Their reputation for service is well known in the automotive industry, and their track record for building local partnerships throughout Texas makes this an ideal arrangement for the long term.” Jeff Parent, President of Open Road Rent A Car, concurred. “We feel good about transitioning our longtime customers and friends to a company like Enterprise,” Parent stated. “We are confident that Enterprise will be able to deliver the kind of service excellence and fleet management skills that these successful dealerships and their clientele depend upon every day.”
4 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Murphy’s Autobody in AR Donates Car to Single Mom
Amy. After attending school for motorcycle mechanics Lyall started helping Smith with the motorcycle aspect of his business. Aside from motorcycles and cars, Smith was quite a fitness buff in his earlier years. “I’ve always worked out, did martial arts and lifted weights. For many years I went to the gym and weightlifted. (I) trained with a lot of the kids and people around here,” he said, adding that about 10 years ago he held a couple of Oklahoma State bench pressing records before he injured himself. As for the future, Smith said he had considered buying Bill Brown’s shop after it closed and expanding his shop, but decided after adding tires to their automotive section, along with the three buildings he already has, it was enough. “All I think about now is loading up my motorcycle and motor home, going on vacation and leaving the kids here,” he joked. “We like to go to the bike rallies, Daytona and Sturgis (SD), places like that.” Smith added that he is training his children to cover different areas of the business so he and his wife can get out and travel more. Thank you to sequoyahcountytimes. com for permission to reprint their story.
On December 17, a single mother in Arkansas received an early Christmas present in the form of a refurbished 2008 Ford Taurus. Twenty-six year old Miranda Hardage and her young daughter had gone almost a year without a vehicle. According to katv.com, Hardage would walk her child to school, and then walk to her job six days a week, half of the time working a double shift. Her dream of owning a car became a reality thanks to Murphy’s Autobody and Frame and other local businesses in Crossett. Hardage applied for the car donation after being urged by friends and family. The detailed essay about her recent struggles helped her win the prize, according to katv.com. Katv.com reported that Murphy’s didn’t participate in picking the applicant. Local businesses and the Junior Auxiliary chose Hardage, and also pitched in to pay her insurance coverage until June 2015.
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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 5
Texas Man Awarded $4M After Alleged Neck Injury from Rear-End Collision A Jefferson County jury in Texas recently awarded a man nearly $4 million for injuries he suffered in an automobile collision. Claiming he sustained a neck injury after a driver rear-ended the vehicle he was riding in, plaintiff Dwayne Randle Sr. filed suit against Nadia Alexis Choates on March 14, 2013, in Jefferson County District Court. The case went to trial Dec. 4 and lasted two weeks. According to the charge of the court, jurors were asked what sum of money would compensate Randle, which ended up being $3,996,331.02 in damages. Randle alleges that on Aug. 4, 2012, he was ridding in a vehicle being driven by his brother. The vehicle was stopped at a stop sign when Choates rear-ended the vehicle. Jurors awarded Randle $3,676, 331.02 for his past and future medical expenses, $60,000 for his physical pain, $25,000 for his impairment and $10,000 for his future loss of household services. Jurors also awarded Randle’s wife, Ruby, $225,000 for her past and future loss of consortium.
TX Collision Suit Settled Early
An automobile collision lawsuit slated to go to trial in January settled before a jury could be called upon. As previously reported, area resident Jennifer Brooks filed suit against Port Arthur locals Jeremy and David Gonzalez on Jan. 24, 2012, in Jefferson County District Court for causing a collision with a vehicle in which she was a passenger. Rather than go to trial, the parties reached a settlement, according to a courthouse official. The suit alleges that on July 11, 2010, Brooks was a passenger in a vehicle traveling in Port Arthur when Jeremy suddenly stopped in front of the vehicle to attempt to back into a private drive, causing the collision. The suit accuses Jeremy of negligently failing to keep a proper lookout and David of negligent entrustment. However, the defendants maintained that the incident was caused by a third party, Jeffery Rodgers, who allegedly failed to maintain a speed that was reasonable, court records show. Although the settlement amount is not on file, a motion in limine sought to stop the defendants from mentioning that one of the defendants paid or offered to pay any of the plaintiff’s medical expenses.
In his suit, Randle blames Choates for causing the collision, saying she negligently failed to control her speed, failed to keep a proper lookout, failed to timely apply her brakes, failed to drive in a safe manner and failed to control her vehicle. Before the trial, Randle had filed a motion to exclude the testimony of one of the defense’s experts, Dr. Joseph Cormier, who was hired to testify on the biomechanics of the collision. According to the motion, filed Nov. 21, Cormier found force of the collision did not result in Randle’s traumatic neck injury.
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800-699-8251 Update on Monthly Association Meeting in LA
The NorthWest Louisiana Collision Repair Association held their monthly meeting on January 6. The gathering was at Country Tavern Barbecue in Shreveport, LA. The main topics covered included labor time and estimating software via webinar with DEG, Database Enhancement Gateway. The live presentation enabled attendees to ask specific questions on problems that have come about when using the database. DEG is an initiative that was developed to help improve quality and accuracy of collision repair estimates, through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. A free service for the collision industry, DEG is created, equally funded and maintained by the Automotive Service Association (ASA), the Alliance of Automotive Service Providers (AASP), and the Society of Collision Repair Specialists (SCRS).
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6 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Service King Donates $65,000 to TX Children’s Center Service King Collision Repair Centers made a special delivery to the Children’s Advocacy Center of Collin County in Texas on Dec. 18. The Richardson-based company presented a check for $65,000 as a result of its 20th Annual DFW Golf Event hosted earlier this year. The tournament, which attracted more than 300 golfers to Stonebriar Country Club in October, has steadily evolved into a longstanding North Texas tradition. “It has been an honor to give back to Children’s Advocacy Center of Collin County,” said Christine Barry, Service King DFW Regional Business Development Manager. “We understand that service extends beyond the walls of our more than 30 DFW locations and we are proud to support organizations like the Advocacy Center that provide critical services to our community.” The Children’s Advocacy Center of Collin County (CACCC) is the only agency in Collin County that provides comprehensive services, free of charge, that are designed to ensure the safety, healing and justice for children victimized by abuse or neglect. Targeting the reduction of trauma, all services take place in a safe, child-
friendly atmosphere where trained professionals work to restore the dignity, hope and trust that these children and families need to heal. Since opening their doors in 1992, over 50,000 children have received at least one core service from the CACCC. “We are so proud of our partnership with Service King. The funds they contribute through their golf tournament ensure that the Children’s Advocacy Center of Collin County is able to provide all the services that children need to heal after suffering the trauma of abuse or neglect,” said Lynee McLean, CEO of Children’s Advocacy Center of Collin County. “Thanks to their generosity, these children have a future of hope and promise. Service King is a great example of what companies can do to strengthen our communities and create a healthy future for children.” Service King, one of the nation’s largest operators of collision repair services, has been operating in Dallas since its founding in 1976.
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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 7
Registration Now Open for ToolTech 2015
The Equipment and Tool Institute’s annual ToolTech conference is being held April 13-16 at the Radisson Hotel and Suites in downtown Austin, Texas. The theme this year is The Connected Vehicle: Opportunities and Challenges. The following is a summary of the speakers and panel presentations, discussion groups, one-on-one meetings and networking during the event: Information and technology play a key role in the ever-changing automotive repair industry, affecting the future of tool and equipment companies in significant ways. High speed communication links connect vehicles with the automobile manufacturers, their repair facilities, service/customer support, and consumers. This evolving technology requires new and more complex tools and equipment not only to improve current diagnostic methods, but to develop new ones as well. How will this evolution affect your business? How will the connected vehicle influence the products you design and market in the near and distant future? How will the aftermarket repair facilities compete and interact with this new technology? Registration is available online at http://etools.org/ToolTech-2015
Contributory Negligence Asserted in TX Collision Suit
A defendant named in an automobile collision suit has answered the lawsuit against her, asserting a defense of contributory negligence. On Sept. 10 Anthony V. Tran filed suit against Kimberlee D. Fowler, Phoebe M. Hanley and Genev A. Mayfield in Jefferson County District Court in Texas. In his suit, Tran alleges he stopped and took action to avoid a collision with Fowler, who was driving south on the shoulder of the northbound lanes of state Highway 73 in Orange County. “While plaintiff was stopped, he was then rear-ended by a vehicle driven by defendant Hanley,” the suit states. Court records show Hanley answered the suit on Oct. 24, asserting Tran is guilty of contributory negligence,
which caused the incident. Due to the collision, Tran claims in the complaint that he obtained medical costs, experienced physical pain and suffering and endured mental anguish. He also alleges he lost wages, lost his earning capacity, suffered disfigurement and endured physical impairment. Tran blames the defendants for causing the collision, saying they negligently failed to control their speed, drove too fast, failed to keep a proper lookout, failed to keep a safe distance between her vehicle and the plaintiff’s, failed to swerve to avoid a collision, failed to bring her vehicle to a stop and failed to timely apply her brakes. Tran seeks actual damages, plus pre- and post-judgment interest, costs and other relief the court deems just.
A Jefferson County man is suing over claims he was injured in a collision on College Street in Texas. Derrick Calloway filed a lawsuit Oct. 14 in Jefferson County District Court against John Wayne Arnold Jr., citing negligence. According to the complaint, Calloway was driving on College Street in Beaumont on Sept. 10, 2013, when Arnold failed to yield to oncoming traffic, made an unprotected left turn and struck the driver’s
side of Calloway’s vehicle. The complaint states the collision forced the plaintiff’s car into a light pole and a parked vehicle. Calloway says he sustained severe injuries, which he still suffers from. Arnold is accused of negligence in failing to keep a proper lookout and yield right of way to oncoming traffic. Calloway seeks damages including medical expenses, lost wages, loss of earning capacity, interest and costs of suit.
TX Man Suing Over Injuries Post Collision
Three Sentenced in LA Auto Insurance Fraud Scheme
On December 17, three people were sentenced in federal court after admitting to staging car accidents to collect payments from insurance companies, according to katc.com. Breaux Bridge, LA resident Oliver Lockett was sentenced to five years in prison and three years of supervised release, reported katc.com. The 44-yearold was also ordered to pay $193,074.86 in restitution, U.S. Attorney Stephanie Finley said. Lockett spearheaded the scams by planning the accidents and making multiple claims to insurance companies for personal injury and property damage. New Iberia resident Aleric Johnson was sentenced to one year in prison and two years of supervised release, according to katc.com. The 50-year-old was ordered to pay $62,492.30 in restitution, Finley said. Buddy Estelle, 53, also of New Iberia, was sentenced to one year in prison and three years of supervised release. Estelle was not ordered to pay any fines. Each person was charged with one count of conspiracy to commit wire fraud, Finley said. They all admitted to staging accidents in and around Lafayette Parish from 2003 to March 2010, Finley said.
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Specialized Technical School in TX Preps 8th Graders for Automotive Education
The Victoria Independent School District’s Career and Technical Education Department (VISD), in partnership with the Alcoa Foundation and the Victoria Business and Education Coalition, hosted the “Dream Big STEM Expo” on January 7 and 8. The event was located at the Victoria College Health Science Center in Texas. According to victoriaadvocate. com, this is the first year that the expo will have a career and college readiness session, presented by Melissa Robinson, Victoria College director of precollege programs and recruitment and Martin Sanchez, VISD career and technical education counselor. The Dream Big STEM Expo was created so teachers and other faculty could connect with their eighth-grade students about future careers in technology, engineering, math and science. Each middle school has two hours to learn from industry partners such as Alcoa, Dow, Formosa, Invista, Caterpillar, GE Water, South Texas Electric Co-op, Testengeer, DeTar Hospital, Citizens Medical Center and Victoria College, according to victoriaadvocate. com. These experts share success stories and present career opportunities,
while providing a cause of action. The following courses are available to VISD high school students through CTE offerings: engineering, graphic design, education and training, business, health and medical, information technology and agriculture science. Industry-trained programs such as robotics and automation, instrumentation and electronics, process technology, oil and gas, welding, automotive technology, collision repair and refinishing, computer technician, cosmetology, architectural design, video game design, construction technology, law enforcement, and firefighting, as well as advanced courses for academic graduation credits including forensic science, anatomy and physiology, advanced animal science, engineering design and problem solving, and engineering math are accessible to students as well. In preparation for the Dream Big STEM Expo and the upcoming course preregistration for the 2015-16 school year, eighth graders are counseled by the carecr and technical education department through a program called Career Cruising. This agenda provides students with information that will help them make decisions about their future studies and career.
Icy Roads in Abilene, TX Lead to “Overwhelming” Business
Icy road conditions in Abilene, TX during the first week of the New Year left body shops overflowing with cars in need of repairs, according to bigcountryhomepage.com. People continued to line up outside of Barret’s Body Shop on S. Legget Drive in Abilene (Big Country) as the winter weather surges on. The workload doesn’t appear to be shrinking anytime soon, according to employees. The local police department responded to 150 wrecks over a three-day period, according to bigcountryhomepage.com. Shops are backed up, which is expected during the busiest time of the year. Rocky Champion, owner of Barret’s Body Shop, told bigcountryhomepage.com that they were busy before the bad driving conditions, and is now “overwhelmed.” Barret’s Body Shop workers will continue to prep for the coming winter months and the business they always bring.
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Collision Fatalities in Texas Continue to Rise
Over the past three years, most states have experienced a decline in fatal car accidents, while statistics in Texas continue to rise. The National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) blame speed, alcohol, and not wearing seatbelts for the escalation in fatal collisions. Russ Rader, spokesman for the IIHS, told yourhoustonnews.com that another major factor is distracted drivers—90 percent of all traffic accidents are caused by making mistakes. Before 2010, things were looking up for Texas drivers. The number of car accidents declined rapidly due to the production of safer automobiles. But in 2010 and 2011, the number of crashes began increasing yet again. Since 2011, injury crashes in Texas have increased 12 percent; from 139,646 to 155,844, reported yourhoustonnews.com. Traffic fatalities decreased in Texas in 2010 to 2,781, but as of today, they’ve increased by 10 percent to 3,060. For information on the Insurance Council of Texas, visit www.insurancecouncil.org.
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Christian Brothers Automotive Opens New Location in Pflugerville, TX
Christian Brothers Automotive has lent customer service, quality products, opened a new 5,000-square-foot lo- and a memorable experience.” Christian Brothers Automotive cation at 1621 East Pflugerville provides full-service automotive diPkwy in Pflugerville, Texas. The automotive repair shop offers nine service bays, a comfortable and quiet lobby with free Wi-Fi, and a free courtesy shuttle. “Our team is very excited to embark on this new journey with Christian Brothers,” said Jason Gaudreau, who owns the new shop with his wife Colleen. “Not only are we looking Photo credit: Christian Brothers Automotive forward to serving the residents of agnostic testing and evaluation, Pflugerville and the surrounding areas, maintenance programs and repair we’re committed to providing excel- work for all domestic and foreign vehicles at each of their locations. All Christian Brothers Automotive facilities are staffed with automotive service excellence (ASE) certified technicians. For more information about Christian Brothers Automotive in Pflugerville, visit their website at http://www.cbac.com/store/pflugervi lle-tx or find them on Facebook at https://www.facebook.com/CBAPfl Photo credit: Christian Brothers Automotive ugerville.
Car Insurance Rates in NM Vary by over $200
The same car and driver’s auto insurance payments can vary by up to $220 depending on what New Mexican city the owner lives in, according to a statewide analysis by ValuePenguin.com. The lowest average rate in the state is Alamogordo at $871 a month while the highest premium is Rio Rancho at $1,101, reported Bruce Krasnow, santefenewmexican.com. The site compared rates for two male drivers—one age 30 and the other age 65—who both drive a 2010 Toyota Camry 12,000 miles a year. The estimates are also available to drivers who have not received a traffic violation or gotten into an accident in the past five years, according to the site. The average premium for the state is $995. The largest city, Albuquerque, is at $1,070. Alamogordo, Deming, Silver City, Las Cruces and Truth or Consequences, all cities located in the Southern New Mexico, have the least expensive annual premiums for the sample scenarios. The highest premiums are in the metro areas, Rio Rancho, Belen, Bernalillo, Taos and Santa Fe, reported Krasnow. The analysis is on: http://www.valuepenguin.com/ best-cheap-car-insurance-new-mexico
Hodges Collision Centers in TX Transfers Manager
Steve Guinn, owner of all Hodges Collision Centers, announced on January 18 that Eric Yount is now manager at Hodges’ 1488 location. Yount moved from the position of manager at the Lane Lane location. Overseeing estimating and production as the facility’s on-site manager, Yount has more than 20 years of automotive service industry experience, including managing large collision facilities. “Eric has shown tremendous value in leading our Lane Lane Location so when a manager’s position became available at our 1488 location, he was the right candidate for the job,” said Guinn. “He brings tremendous industry experience and we have seen his leadership capabilities at work in ensuring Hodges is performing successfully in all key areas.” Yount is I-CAR certified and ASE certified. Before joining the Hodges’ team, he worked with Woodlands Collision Center and Sterling Auto Body. He is a Woodlands resident.
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10 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Cesar Lopez Responds to Criticism and Charges
My name is Cesar R. Lopez and I used to own a body shop under the name of CRL in El Paso, TX. I started my business over nine years ago with only $3,000 in a small warehouse and soon I found myself outgrowing the space. A couple of years later God blessed me with a bigger and nicer location. My business was booming. I was never a preferred shop to any insurance agency nor did I want to be. All of my customers came from word of mouth and recommendations. I had become very successful at 31 years old (I am 36 now). Unfortunately, I made the biggest mistake any business owner in my opinion can make. I had decided to leave my business under the mercy of “managers.” Thinking that these managers would have my best interests and also take care of my customers. No one can ever take care of my business the same way I would. Now I know that. I will and I have taken responsibility for everything that happened at CRL and no one is to blame but me for not being there. In 2009, there was a severe hail storm in El Paso which brought me a tremendous amount of customers. I had to park vehicles across the street because there was no space in the shop. That’s when everything went wrong… Overwhelmed with work + bad management = unsatisfied and angry customers. Even
though much has been said and alleged, my only mistake was to take too long with those customer’s vehicles. I understand that taking long with a vehicle could be frustrating and aggravating to anyone. I have taken responsibility for many of the mistakes that I have made as a business owner. I am far from perfect and I will make mistakes, but I have and will keep learning. That’s what life is about, right? Live and learn. The lawsuits were filed under deceptive practice, which is a crime and therefore got me arrested. I am legally fighting the filing. These cases were civil matters, but were taken to the extreme. Even though a lot of damage has been done to my person and to my business, I still want to clear my name for a crime that I am being unfairly accused of. Many of those lawsuits were dismissed, settled and three of them after five years are still pending. Can this happen to anyone? I believe so. Has this been hard for me? Most definitely. Have I learned anything? Yes, to take care of what cost me so much to achieve, emotionally, financially, and personally. I will strive to be the best in what I do, to never look back and never give up. One thing I am sure of… if owning a business was easy, everyone would do it. This is my passion I love what I do and I will keep on. Thank you for this opportunity. [signed] Cesar R. Lopez
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El Paso Body Shops
Morales. Lewis and Morales both said they guarantee their work and said customers should be wary of body shops that won’t guarantee their work. Morales said at his shop they try to give customers a daily progress update. “You need to go out there. You are getting your vehicle repaired, you need to go and inspect it, even daily if you can, and check the progress on how it’s going,” said Morales. Morales said customers shouldn’t pay for work in advance; a reputable shop will have enough capital to get the work done. Also, be observant. “It would definitely raise a red flag if there are a lot of vehicles out in their parking lot that have been disassembled and haven’t really been worked on,” said Morales. Lewis advises consumers to do research beforehand, make sure you get a signed contract with an estimate of how long the work will take and be wary of telemarketers that call after you’ve been in an accident. Telemarketers for different shops will purchase police reports, and then call car crash victims and persuade them to take their vehicle to a certain body ship. “The telemarketer will promise you the moon... that doesn’t necessarily mean once the car is in the shop that’s going to happen,” said Lewis. Oftentimes it’s other independent shops that end up fixing the work botched by another shop. “We have some great independent shops and we work really hard for the consumers,” said Lewis.
Previously reported by KFOX14 After a KFOX14 Investigates story, the doors to one of the two Formula One Collision Center locations closed in December. One of the company’s two locations has now closed. A sign on the front door of the shop on Gateway East says the space is available for lease (as of Jan. 2.) There was a lock-out notice addressed to owner Cesar Lopez. [In December] KFOX14 Investigates chief investigative reporter Genevieve Curtis spoke to Lopez at that location. “I think our work speaks for itself, and that’s why I am still here,” said Lopez at the time. KFOX14 In-
vestigates was there following concerns from a customer named James. James told KFOX14 he’s waited almost five months to get his truck back after taking it in for a scratch. He accused Lopez of further damaging his truck to get more money from the insurance company and for forging James’ name on the two-party insurance check. When KFOX14 Investigates went to the shop almost three weeks [previous], the owner’s wife said James’ Ford F-250 was ready to be painted. KFOX14 spoke to other local body shop owners who said a good paint job should take an average of two weeks. Yet, James is still waiting for his truck. “I don’t know what else has been done to it,” said James. With one location now closed, James is concerned about getting his truck returned to him. “It’s pretty aggravating, because it seems like nobody wants to help,” said James. Lopez is set to go to trial on Jan. 12 to face charges of deceptive trade practices. A separate trial is scheduled for February. Another trial is in the pre-trial stages. Those charges stem from 2010 when KFOX14 reported car owners accused Lopez of holding their vehicles hostage and driving them around town. KFOX14 went to look for James’ truck and get answers at the location on Pellicano, but the owners were not there. KFOX14 did try to contact the attorney representing Lopez but were not able to get in touch with him. KFOX14 asked the body shop if they could see James’ truck and were told their lawyer said ‘no.’
Additional Reporting by KFOX14 It started with a scratch and a small dent when James, the owner of a Ford F-250 pickup, accidentally hit a fence. He took it to Formula One Auto collision in East El Paso. James said Lopez told him it would be an easy fix. The quote was $2,300, and Lopez said he would take care of the dent and also get James a new paint job and a color change. That was in August. It was also the last time James said he saw his truck. “It was a major purchase for me, and now I don’t even have that,” James said. But that’s not all. When James
12 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
got the paperwork from his insurance company, GEICO, that initial $2,300 suddenly jumped to nearly $8,000 in damages that weren’t there before. “Originally it just had one scratch and a dent behind the rear door on the driver’s side. Now it has damage all over the body the glass, the windshield. It’s calling for the replacement of all of these parts,” James said. James believes that Lopez damaged the truck to increase the payout from the insurance company. “Absolutely not,” Lopez said when we asked whether he damaged the truck for a bigger check from the insurance company. “I mean, when the vehicle came in, the insurance looks at it, that’s pretty much (it). It came here and the insurance looked at it.” James also claims that Lopez forged his name on the two party-party check from the insurance company. “He also signed the power of attorney,” onLopez said. “On our contract, it states we can do work on the vehicle and on the bottom of it, it also gives us power of attorney,” said Lopez.” KFOX14 Chief Investigative Reporter Genevieve Curtis asked Lopez if he signed James’ name on the
check. “Yes, of course,” Lopez said. “You don’t think it’s check forgery to sign his name on the check?” Curtis asked. “I wouldn’t say so. I mean, that’s what power of attorney is,” Lopez said. Except it’s not. A financial expert told KFOX14 Investigates, power of attorney allows for someone to sign his or her own name, not the name of someone else. And James said he never signed such a contract. “I thought it was bad enough they damaged my truck to increase the claim on it, two that they signed my name on the check,” James said. KFOX14 Investigates reported that Lopez pleaded guilty to forgery of a financial instrument in 2004. He was also arrested on five charges of deceptive trade practices in 2010. KFOX14 was there when Lopez was arrested in 2010 and interviewed customers who showed up outside his body shop, formally known as CRL, demanding their vehicles back. Some had waited for more than seven months. Since 2010, some of those cases have been settled and then dismissed. “You’ve been accused of holding See El Paso Body Shops, Page 16
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Top 2015 Resolutions
paint booth can contribute nearly $25,000 to the bottom line annually. The family of 3M™ Accuspray™ System HVLP spray guns with replaceable atomizing heads and 3M™ PPS™ technology delivers premium performance at a fraction of the cost and effort, with improved productivity, reduced solvent use and minimized clean-up time. The system can provide excellent atomization, resulting in high transfer efficiency and a large, usable spray pattern with low overspray. The 3M PPS technology with disposable lids, cups and liners deliver solvent reductions of up to 70 percent, which at $400 per 55 gallon barrel per week, translates to $14,560 in savings annually. And, by using the system to mix and filter internally, it reduces paint waste by one ounce per mix, adding thousands more to the bottom line. The system offers full diameter filters for improved fluid flow and, with five sizes to choose from, the right size cup for every application. The 3M Accuspray spray guns, including HG18 for primer and HG14 for sealer and paint applications, provides painters premium performance on demand and reduces cleaning and maintenance needs.
Resolution #2 – Finally….A Solution for Texture Matching For automotive professionals, matching textures on rocker panels has always been a challenge. And the current technology for applying these textured coatings and undercoatings means painters not only struggle with coating thickness and overspray, but also product waste and cleanup. The 3M Body Protection System is reinventing how repair technicians spray textured finishes found on today’s vehicles for rock protection and sound deadening. It leverages the 3M Accuspray spray gun to give painters the accuracy and control to match OEM textured finishes with fine, medium, coarse or splattered patterns. The 3M Body Protection System gives automotive professionals a powerful tool for productivity, including: ● Ability to adjust pressures and spray pattern, allowing for a better match to OEM textures. ● Ability to cut in half the application time of textured finishes to rocker
panels, wheel wells and undercarriages in many cases. ● The pressurized version of the 3M Accuspray spray gun allows the product to be sprayed at any angle, making it easier to reach lower rocker sections and inside wheel wheels. ● The painter can easily adjust the spray pattern to reduce overspray and masking. ● Painters can easily achieve a perfect texture match, enabling improved repair quality and higher CSI scores.
Resolution #3 – Make tough jobs more efficient with the right tools The right tools from 3M can make tough jobs faster and more efficient. Designed for ergonomic comfort, durability and performance, 3M has the right tool for the job from start to finish, including the: ► 3M™ File Belt tool is designed for heavy metalworking in tight areas and is ideal for aluminum repair. ► 3M™ Random Orbital Sander with self-generated vacuum is designed for cleaner workspaces at a lower investment. ► 3M™ Cut-Off Wheel tool for panel cutting and sectioning. ► 3M™ Disc Sander for weld grinding and paint removal.
The right tool needs the right abrasive, and for the best performance that means the 3M™ Cubitron™ II line of abrasive products for heavy metalworking. These cutting and grinding products deliver outstanding performance, speed, consistency and disc life for automotive body technicians. Compared to traditional abrasives, the 3M Cubitron II products cut through paint, welds and metals twice as fast, with double the life span. The offering includes: ● 3M™ Cubitron™ II Fibre Roloc™ Discs designed for weld grinding and paint removal ● 3M™ Cubitron™ II Abrasive Fibre Discs for door skin removal, paint stripping and weld grinding ● 3M™ Cubitron™ II Cut-Off Wheel for panel cutting and sectioning jobs ● 3M™ Cubitron™ II File Belt for spot weld removal and MIG weld finishing ● 3M™ Cubitron™ II Clean Sanding Hookit™ Discs designed for faster cutting for paint removal, the early sanding stage in small or large area body repairs, body filler rough shaping and feather edging
14 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Resolution #4 – Cut the leading reason for comebacks – swirl marks in paint finishes When it comes to paint refinishing, compounding is the most debated step in the process. For paint professionals, 3M Automotive Aftermarket Division offers two excellent systems – one with a compounding step and one without. Are you using the right process for your paint finishing jobs to deliver the best finish and eliminate swirl marks? It all depends on the size of the job. For small to medium-sized areas like a door panel or fender, 3M recommends using the 3M™ Trizact™ 5000 and 3M™ Perfect-It™ 1 solution. This allows the paint professional to spend more time sanding with a DA and less time buffing with a heavy buffer. This system doesn’t have a compounding step, so it eliminates the time and cleanup for compounding and allows the painter to complete the job more quickly. But for large areas or dark-colored vehicles, 3M recommends its 3M Perfect-It Large Area Paint Finishing System and a traditional refinishing method. Technicians can achieve a per-
fect finish with the 3M Perfect-It large area paint finishing system featuring the 3M Perfect-It EX rubbing compound, which provides faster cutting, longer working time with less sling, ease of handling and easy clean-up. 3M offers standard operating procedures for both processes online at http://3mcollision.com/library/sops.
Resolution #5 – Get Ready to Repair Advanced Materials Preparing for aluminum and advanced materials is a big challenge. 3M has been working with OEMs for several years to validate the tools, products and processes for aluminum repair. Now, shops can implement 3M’s proven portfolio of products, tools, SOPS and materials to expertly repair aluminum-body vehicles. Key to aluminum repair is a dedicated clean room with separate tools for welding, bonding, riveting, sanding, grinding and structural procedures on aluminum components. Separate safety equipment is also important, as technicians will need dedicated respirators, eye protection and gloves for aluminum repairs. 3M makes many products that See Top 2015 Resolutions, Page 17
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Concern in Industry
After several reports published over the past year, Autobody News has found that shops across the country are paying close attention to the court’s developments to determine whether the decision will help or hinder the MDL case. More than 500 auto body shops in 33 states are now part of the MDL against the nation’s top insurers. When Autobody News went to press last month, lead attorney John Eaves Jr. of Eaves Law Firm in Mississippi reported that lawsuits have already been filed by auto body shops in 17 states and 16 more were in the process of being filed. (See map on cover.) These shops claim that more than 35 auto insurers have suppressed reimbursement rates to collision repair shops and direct repair programs violate antitrust laws. The first five antitrust actions were filed by shops in Florida, Mississippi, Indiana, Utah and Tennessee the beginning of 2014. In April of 2014, a RICO class action lawsuit was filed in Illinois by Crawford’s Auto Center on behalf of Continued from Page 12
El Paso Body Shops
on to people’s vehicles,” Curtis said. “That’s not possible, we don’t do that,” Lopez said. “Why do you think it is that you’ve had so many issues with customers filing these complaints against you?” Curtis asked. “I don’t think it is, I don’t want to say it’s issues. I mean, a lot of people do take advantage. They see that I have been, you know... I guess, taken to court and sued in the past,” Lopez said. But he hasn’t just been sued, he’s been charged with a crime. Still, Lopez chalks up his legal troubles to unhappy customers. “It’s not the first. It probably won’t be the last, there are always people who aren’t satisfied,” Lopez said. KFOX14 Investigates also spoke to the Texas Department of Insurance. Officials there notified James that GEICO has launched a special investigation and turned it over to the National Insurance Crime Bureau because of what they called “questionable and unauthorized repair activities.”
collision repair facilities nationwide with similar issues. It involves major auto insurance companies and the industry’s three data providers: CCC, Mitchell and Audatex. At the time, Crawford’s did not support the case being consolidated with the MDL. However in December, the Judicial Panel on Multidistrict Litigation decided to transfer the case. According to court documents, “…transfer is warranted for the reasons set out in our order directing centralization. In that order, we held that the Middle District of Florida was an appropriate… forum for actions stemming from an alleged industry-wide conspiracy to suppress the reimbursement rates applicable to automobile collision repair shops, including complex issues concerning the role of ‘direct repair programs’ in furtherance of the alleged scheme.” Eaves said when the class action lawsuit was first transferred to Florida there was some concern that it might prolong the multidistrict litigation. “We’ve been assured that the court will put down a different time track so our concerns are greatly relieved about the class action,” he said. Although the same court will be handling the case, Lopez defended his work. “I think our work speaks for itself, and that’s why I am still here,” Lopez said. As to why James hasn’t gotten his truck back, Lopez has an explanation for that too. “Well, basically, with that vehicle, that type of vehicle, because it’s such a large vehicle, it does take longer than a regular vehicle,” Lopez said. Four months without his truck has taken its toll on James. “I don’t have the truck. I’m paying for the truck, I’m paying the insurance on the truck, and I don’t have [the use of] my truck. I don’t have anything to show for it and the shop already collected all of the money,” James said. He’s not even sure if the truck runs. “I don’t know what else has been done to it,” James said. Lopez said that Formula One contracts stipulate that they can only estimate when a job will be complete and cannot guarantee it. KFOX14 went back to Formula One and asked if they could see the truck. Lopez’s wife called an attorney, who would not allow KFOX14 to see the truck. “You feel cheated constantly; you feel that nobody is there to help you,” James said.
16 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Eaves predicts it will take longer than the MDL. “We think this is different. It includes not only insurance companies but also includes the data base providers and the MDL does not,” he said. The other notable case transferred to the Middle District of Florida in December was State of Louisiana v. State Farm Fire and Casualty Insurance. Filed by Louisiana Attorney General James D. “Buddy” Caldwell against State Farm in August 2014, it alleges monopolization and deceptive trade practices by the insurance company. Dick Luedke, spokesperson for State Farm, said, “State Farm requested that the lawsuit filed by the attorney-general (AG) in Louisiana be transferred to the multi-district litigation in Florida and so we are pleased the MDL panel has done that in spite of objections from the AG’s office in Louisiana. The Louisiana AG’s allegations do not describe the way State Farm does business as we fulfill our mission to serve the needs of our customers in keeping with our long, proud history of achievements in advancing vehicle safety.” James Burns, co-leader of the antitrust practice at Dickinson Wright
PLLC, said the LA case is somewhat different than the previously transferred cases. “First, unlike the other previously transferred cases, the Louisiana case was originally filed in state court, and subsequently transferred to federal court,” said Burns, whose practice focuses on the application of the antitrust laws to the insurance industry, but is currently not involved in the MDL proceeding. “In addition, Louisiana contended that its case, which it characterized as an ‘enforcement action,’ was materially different in character than the private party actions currently before the transferee court, and thus the Louisiana case should not be transferred for this reason.” That contention, however, was rejected by the Panel, Burns noted, which stated that it “often has transferred state enforcement actions to MDLs that involved cases brought by private litigants.” “The issue of transfer to the MDL is really a secondary issue for our case,” said Stacie deBlieux, Louisiana’s Assistant Attorney General. “The primary issue is whether federal jurisdiction can be exercised over our case at all, which was filed in state court in Louisiana. We have filed a motion detailing the lack of federal jurisdiction over our claims.
Once that motion is heard by the MDL court, our case should be remanded back to state court in Louisiana.” Eaves said the attorney general’s action has a good chance of being returned to Louisiana. “It’s a fundamentally different case,” he said. “That case is representing the people of Louisiana and representing the consumers where our interest is the body shops who serve the consumers. As far as the perspective and the evidence, the attorney general of Louisiana will be focused on the consumer protection laws of Louisiana.” He explained that the case is focused on antitrust issues and basic contract law in the United States. “The end result to the consumer is the same but it’s a different set of laws,” he said. “It will be interesting to see if the court actually keeps the case. I think there is a high probability that the court will return it to Louisiana.” Presiding Judge Gregory Presnell will ultimately decide if the cases should be remanded to state court. The MDL has a standing court date the first Friday of every month. “I think the most exciting thing that we’re working on right now is we’re asking the court for an injunction to
stop them from the retaliatory practices against body shops, which is all forms of steering,” said Eaves. “We’re articulating about 24 tactics that the insurance companies use on a regular basis to get customers to go to shops that are willing to cut corners.” This includes representing evidence to the court gathered by the body shops. Their hope is to have a certain amount of penalties occurring even before the litigation gets underway. “We have hundreds of thousands of documents that will show how consumers are being shorted on their policy reimbursements that are owed to have correct repairs done on their vehicles,” said Ron Perretta, Owner of Professional Auto Body in PA. “We have documented the steering, improper repairs, substandard parts being used without regard to testing and safety, dialog that’s misleading and how the insurance companies have put their appraisers and other staff at risk of personal lawsuits.” Perretta, who has been instrumental in spreading the word about the MDL case, said they expect injunction relief to be in effect soon. “This will virtually stop the steering and manipulation by insurers,” he said. “If they
don’t follow the judge’s orders there could be serious consequences; we expect they will test the judge.” “The mission that we have been given is to stop the insurance company’s race to the bottom,” said Eaves. He said the case has focused on “all insurance companies that reward those body shops that are willing to cut corners and punish the shops that are willing to stand up for the consumer.” He said the practices used by some larger insurance carriers are uniform throughout the country. “They use the same types of policies from Maine to California,” said Eaves. “Ultimately it’s the consumers who are really the victims in all of this.” When contacted by Autobody News, Allstate Insurance, Liberty Mutual Insurance, Nationwide and Progressive replied that they do not comment on pending litigation. For information about the multidistrict lawsuit, contact John Eaves Jr. at johnjr@eaveslaw.com. Information about “The Movement” by auto body shops can be found online: www.TakingBackOur Industry.com. Autobody shops in Pennsylvania can contact Ron Perretta at ronperretta@aol.com or 814-931-7669.
Continued from Page 14
Top 2015 Resolutions
can be used on both aluminum and steel. Premium 3M AAD body fillers and glazes contain high-quality adhesion promoters and are approved for use on aluminum. For sanding, 3M AAD recommends its line of 3M Cubitron II abrasives that cut faster, run cooler and minimize substrate damage. In addition, 3M Panel Bonding Adhesive is compatible, OEM-approved for aluminum and is specifically recommended by Ford for the repairs to the 2015 Aluminum F-150. 3M Automotive Aftermarket Division now offers Standard Operating Procedures for aluminum repair. Visit 3MCollision.com/aluminum for more information. To make these innovative solutions part of your shop’s process in 2015, contact your local 3M representative or distributor. For more information on these solutions, visit www.3MCollision.com and follow us at www.Facebook.com/3MCollision.
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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 17
Usage of Abrasives in the Auto Industry Has Shifted to Suppliers Automotive manufacturers were once major users of abrasives, which were used in all stages of the vehicle manufacturing process. Now, with the advent of manufacturing robots and molded auto and engine bodies, extensive use of abrasives has shifted primarily to auto parts suppliers, and repair and mechanics shops. The market is huge, especially as worldwide auto demand grows. From engine parts sizing, deburring, and cleaning to auto body, interior, and accessories repairs, abrasives are used to smooth welds, clean the insides of pipes, and roughen or smooth surfaces and edges for fitting, oiling, painting, or polishing. Automobile Engine Abrasives There are thousands of specialized abrasive wheel formulations, sizes and shapes used in industrial applications for making auto, truck and aircraft engines and parts. New ones come out on
the market every year. In 2012, The Hardinge Grinding Group developed new grinding wheels that remove metal 20% faster and last 30% longer than before. Their applications in the automotive industry are many, including cylindrical grinding of crankshafts and camshafts, gear grinding, and internal grinding of hydraulic components. Nylon abrasive cross buffs are another fairly recent product. They are used in tight spots, like the insides of pipes. Motor manufacturers and mechanics use them to polish the insides of carburetor venturis, cylinder head exhaust ports, lifter bores, valve bodies, brake cylinders and exhaust pipes. Body Interior and Exterior Use of Abrasives Coated and non-woven abrasives are both used to refinish auto bodies. Abrasive papers, sponges, pencils, emery cloths, steel wool, rubbing compound
and finishing pads are all abrasives used for prepping and polishing. The multi-perforated sanders that whisk away dust are especially useful to prevent dust from spoiling freshly-painted surfaces. Cutting compound is an abrasive suspended in liquid paste or wax used to cut through oxidized paint or polish out scratches. An aluminum oxide emery cloth is used to polish auto body contours. 3M recently produced a new mini orbital sander for automotive paint repair. It uses a new gripping material cover, and has better ergonomics and a lighter aluminum body to increase ease and comfort in using the sander. An improved skirt attachment extends its durability. Abrasives Used for Non-Engine Parts & Accessories Accessories like air conditioners and radios are made as complete entities intended to slip into a pre-engineered slot
in the dashboard with room for minor sizing errors. However, parts like steering wheels, brakes, axles and wheels need precision fits. In 2013, Germany’s Wheelabrator Technology Center developed a new Robot Peener that allows axle gear parts to be processed three times quicker than conventional peeners. The part to be blasted is maintained at exactly defined distances by the robot. Brakes have their own special abrasive with a non-directional scratch pattern that fits onto a collet tool. It’s used to eliminate brake squeal and reduce discoloration on heat sensitive metals. Aluminum oxide emery cloths are used for polishing brake spindles and crank shafts. A wheel hub cleaning tool uses abrasives in the shape of little round circles to remove corrosion around wheel studs. All of these are bought and sold in bulk on the online B2B abrasives portal, www.iAbrasive.com.
New Chief Holding Equipment Upgrades Existing Frame Racks to Allow Aluminum and HSS Repairs Chief Automotive Technologies’ new Universal Structural Holding (USH) Clamp System lets shops upgrade existing frame racks from a variety of manufacturers to repair vehicles made with aluminum and high-strength steel. The USH Clamp System works with Chief’s Structural Holding Package to hold a collision-damaged vehicle at strategic locations along the body, so it does not shift out of place during the repair. “Damaged aluminum body panels on modern vehicles often have to be sectioned and replaced, and highstrength steel frames should be carefully anchored before being pulled,” explained Richard Perry, OEM & strategic account manager for Chief parent company Vehicle Service Group (VSG). “Although many existing frame racks are not equipped for these tasks, our Universal Structural Holding Clamp System lets shop owners cost-effectively upgrade their existing racks instead of purchasing a new rack. The system comes with more than 50 components that can be combined in a variety of ways to secure a vehicle, and it can be used with any frame rack. This reduces the risk that a vehicle will be further damaged during the repair process.” Chief introduced the Structural Holding Package earlier in 2014 for Chief frame racks, which feature rectangular mounting holes in their
decks. The new USH Clamp System makes it possible to use Structural Holding Package components on racks with any treadway design, including those with non-rectangular holes. Instead of traditional holding bases that fit into the deck holes, the USH Clamp System comes with bases that clamp onto the inner and outer edges of the deck’s treadways. This provides a universal fit that works with nearly any frame rack. The clamping bases are available to fit treadways as narrow as 16 inches and as wide as 34 inches. The bases can alternatively be mounted using long bolts threaded through the deck holes. Once the USH Clamp System bases are secured in place around the vehicle’s perimeter, the technician can build a secure connection up to each strategic holding point. The Structural Holding Package includes long and short fixtures, extension tubes, vice clamps, plate attachments and other components that provide the technician with the ability to secure the vehicle at the frame, suspension mounting points or upper rails. The USH Clamp Systemequipped Structural Holding Package (P/N 300021) comes with a dedicated tool board. Each tool is outlined on the board, and the entire board sits on four rolling casters so it can be moved around the shop.
18 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
To learn more about the Chief Structural Holding Package and USH Clamp System, contact your local Chief distributor, visit www.chiefautomotive.com or call (800) 445-9262.
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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 19
Collision Repair Shops Brace for Challenges of Aluminum Bodywork by Del Williams
With Ford’s 2015 F-150 pickups’ high-strength, military grade, aluminum alloy body and bed saving up to 700 lbs. over the previous model while increasing mileage and towinghauling capacity, body shops are preparing for new challenges that aluminum body repair work will entail. At the top of the list: the proper handling of messy and potentially explosive airborne dust caused by grinding or sanding. The aluminum body revolution is an industry game changer, and its impact will only increase in the years ahead. General Motors has already signaled that updates of its Chevrolet Silverado and GMC Sierra pickups will feature weight-saving aluminum bodies in the fall of 2018. By 2025, “Seven out of 10 new pickup trucks produced in North America will be aluminum-bodied” and “every leading automaker will have several aluminum body and closure panel programs,” according to a 2015 North American Light Vehicle Aluminum Content Study by Ducker Worldwide, a premier consulting and research firm. To meet the coming demand, body shops will need to adapt to the challenges of working with aluminum with dedicated tools, equipment, and training. Failing to do so may mean missing out on one of the fastest growing markets in the next decade. “All aluminum bodies from Ford’s F-series to Chevy and GMC are going to have a major impact on the collision auto body industry in the next few years, and it’s going to grow from there,” said Gary Gardella Jr., coowner and production manager at County Line Auto Body in Howell, N.J., a high-production, Ford certified, collision repair shop, that repairs about 50-70 vehicles per week, generating about $5 million in annual revenue. “We’re preparing now because we want to be ready for the opportunity.” Ford, for its part, is at the forefront of setting the guidelines and requirements for working with aluminum bodied vehicles for both Ford dealership and independent body shops. Through Ford’s National Body Shop Program and its 2015 F-150 Collision Repair program, the company addresses the full range of aluminum issues: from isolating aluminum vehi-
cles from traditional steel repairs with a separate room or curtain system to dealing with aluminum dust to dedicated aluminum welding, riveting and dent extraction systems. Ford’s National Body Shop Program enables dealerships and sponsored independent body shops to become officially certified or
tomer come-backs. Isolating aluminum repairs with curtains or dividers can help prevent cross contamination, but it does nothing to prevent the risk of fire or explosion. In shops doing aluminum body work, aluminum dust can settle on overhead pipes, rafters, walls and
“Techs and the public don’t want to breathe a plume of dust, aluminum or otherwise, in auto body shops,” said Gary Gardella, Jr. “They want a cleaner environment, and that requires better equipment.” recognized by Ford and Lincoln. Among the 2014 requirements for Ford’s National Body Shop Program, administered by Assured Performance, for instance, is a “dedicated aluminum dust extraction system with wet mix technology.” Ford’s 2015 F-150 Collision Repair program, created by Ford to assist dealers and independents, further stipulates a dedicated aluminum wet mix air filtration system, which can be portable or a central installed system. While collision repair body shops have always performed sanding, grinding, welding and cutting to produce dust, fumes, spatter and sparks, this was often considered a nuisance when the industry revolved around steel vehicles. But the recent introduction of mass-produced aluminum bodied vehicles like the Ford F-150 has brought this dust into the spotlight. The dust has created problems and hazards ranging from cross-contamination of metals to combustible dust fires and even explosions. “Aluminum dust must be safely captured at its source to prevent quality issues like peeling paint or adhesion problems,” says Gardella, who has several auto body technicians participating in Ford’s F-150 Collision Repair program. Cross-contamination occurs when aluminum dust in the air settles on steel panels or iron oxide dust settles on aluminum panels, prior to primer or paint. This contamination will result in poor adhesion and quality problems months and years after painting a panel. This can pose a business risk to a collision repair shop dealing with warranty issues and cus-
20 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
shop equipment, creating an environment ripe for disaster. Aluminum dust poses a combustion hazard in high concentrations, and is particularly combustible, even explosive when airborne and finely separated. If a typical vacuum containing dry aluminum dust were to draw in a grinding spark or even experience the spark from static electricity, it could ignite and cause a fire
or explosion. “When dealing with aluminum dust, a high, safe capture rate is important to prevent potential fires or even explosions,” says Gardella. The collision repair industry has long been viewed as a dirty business, bringing to mind the image of a technician hunched over a vehicle, with a plume of sanding dust being launched into the air as he finesses a body panel back into shape. In recent years, however, shop owners have sought to reach out to customers with a cleaner, dust-free environment. “Techs and the public don’t want to breathe a plume of dust, aluminum or otherwise, in auto body shops,” says Gardella. “They want a cleaner environment, and that requires better equipment.” To eliminate the concern of aluminum cross-contamination, dust combustibility, and to present a clean, “dealership feel” to their body shops, more owners are looking to vacuum extraction. They are finding inspiration in other industries that have successfully used the technology. See Brace for Challenges, Page 29
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Shop Showcase
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Does Being a Green Shop Improve the Bottom Line? with Ed Attanasio
Known as the Greenest Shop in the USA, Selecta Body Shop in San Francisco’s Mission District has received major praise, top reviews and now a prestigious award for running an environmentally responsible business. But, the burning question that probably every body shop owner anywhere wants to know is does being green increase profits or in the end, or does it just help the owner to sleep better at night? Do customers care and maybe more importantly—do the insurance companies care?
Owners J.R Hubbard and his wife Jackie have watched as their business has grown without compromising their beliefs about running a business that is better for the environment
to do be a fair employer and a responsible member of the business community. Part of being a green operator in a very environmentally-conscious city like San Francisco and maintaining the B-Corp certification means that I can hopefully make money, but also we want everyone to win—my customers, my family, my neighbors and my employees.” It took two years of hard work to turn an old building into Selecta’s new 10,000-square-foot facility and it ate up just about all of Hubbard’s funds to make it a reality, he said. But since starting business in April 2013, the numbers have slowly edged up, to the point where he can say that November 2014 was his first profitable month after fixing 65 cars. “We still want to do 100 cars monthly, because we can handle the volume and that’s been our goal,” Hubbard explained. “The numbers are improving every month and the future looks solid. We picked up two great DRPs during the last four months of 2014 and now we have a total of three. We easily absorbed the increased workload during the fourth quarter and now we’re excited about 2015.” Last November, Selecta Body Shop won a significant award at the 2014 SEMA Show in Las Vegas, when AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) announced that three North American companies were selected as winners of the fifth an-
Being in it to win it when it comes to being 100% green from the first day he opened his doors, Jeremy “JR” Hubbard, the owner of Selecta Auto Body has now been in operation at his current location for almost two years. Since opening, he’s refined his processes and further embraced the green way of doing things, while trying to be a fair employer in every aspect of his business. To this end, Selecta Auto Body is the only collision repairer in the country today that has achieved B-Corp certification, by meeting rigorous standards of social and environmental performance, ac- In operation since April 2013, Selecta Body Shop in San countability and transparency. Francisco is called an “ultimate green shop”, featuring the newest, cutting-edge techniques for saving materials and Sure, Hubbard wants to make energy, among other things money and fix cars right, but more than anything else he wants to run nual FIT Sustainability Award, an industry recognition program honoring his business “with a conscience.” businesses and organizations that are ac“I’m a father and an employer obviously and I want to be able to make a tively engaged in practices that advance profit,” Hubbard said. “But, I also want the concepts of sustainability. Selecta
22 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
took one of the three coveted spots, which was a big deal for a lot of reasons. “Being green is definitely a plus, especially when it comes to marketing,” Hubbard said. “It all works hand in hand and awards like the FIT Sus-
the more notable things he’s done to his shop include installing motion sensors in every room of the shop so the lights turn off when the room is not in use and uncovering the building’s skylights and front windows to use natural light whenever possible. He also mounted more than 350 pothos plants on the wall to bring fresh air to the shop. He purchased an oversized Global Finishing Solutions downdraft heated spray booth so that he can paint more cars and parts simultaneously, Later last year, Selecta Body Shop started turning a profit thereby saving time and mateand being green has definitely played a pivotal role rials. The shop features two tainability Award from AkzoNobel are curtained-off areas, one dedicated for prep and the other for detailing work. a huge deal. To be honored at a show Hubbard is also gearing up for the like SEMA and having other shops incollision industry’s rush to aluminum. terested in what we’re doing, that’s beneficial for us and the industry as a “We know that aluminum is coming, but to what degree nobody really whole.” Hubbard truly walks the walk knows.” Hubbard said. “So, right now when it comes to being green. Some of See Green Shop, Page 41
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800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
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For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com
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800-749-6227 713-371-4700
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A u stin
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800-575-3553 512-401-5976
888-824-9634 817-806-0571
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866-733-2861 225-756-6166
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Pl a no
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Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 25
A Lean Process Helps Shops Become More Efficient and Profitable by Stacey Phillips, Assistant Editor
Any collision repair shop can become more efficient and increase its profits by incorporating “Lean Processes” into their business, according to Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes. Feltovich shared his knowledge about the benefits of lean processes during a recent SCRS seminar at SEMA: Leaning on Process for Profit Improvement. As a consultant for the past 15 years to top industry executives at collision centers across the U.S., Canada, Central America and the UK, Feltovich often observed a difference of perspective between what a shop owner “thinks their business is” versus “what it actually is.” He encourages shop owners to ask themselves how to improve their business and then create a strategy to move forward. “The ideal state is what we should be pursuing for the business,” he said. Most shops have repaired cars the same way for years and when confronted with a problem, Feltovich said owners typically address it by adding people, space, equipment, inventory or data analysis. Instead, he said they should be addressing their process. “Process is just eliminating the traditional models because the leaner the shops get, the better it is for customer value.” He noted that Greg Horn, VP of Industry Relations for Mitchell International, recently discussed the growing trend toward lean process improvements. Horn observed, “There is continual market place pressure on collision repair centers for increased efficiency and enhanced customer service. As a result, many top shops have begun implementing what is referred to as ‘lean processes or lean management.’” Feltovich couldn’t agree more and cited the UK as an example. The average cycle time in the UK is three days versus 10.4 days in the U.S. In addition, 10 cars are painted per day per single booth in the UK and they have a six-hour average touch time per car each day. In comparison, three to four cars are painted per day per single booth in the U.S. and the average touch time per car is two and a half hours. Shop owners who do not embrace change, even the ones who consider themselves successful, are putting
themselves at risk in the future, said Feltovich. “Rely on that old success and tomorrow you will be obsolete, whether you want to be or not – you will be,” he said. “Businesses become obsolete every single day because they don’t progress forward, they don’t see the big picture.”
Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes
At the center of lean process is efficiency, which Feltovich defined as “achieving maximum productivity with the least amount of effort or expense.” He recommended mapping out how the business operates and asking the fundamental question: how well does the process actually accomplish its intended purpose? Some of the wasteful activities he mentioned that often take place at shops include: ● waiting for information, ● checking inventory levels, ● setup time, ● locating missing parts, ● repairing broken equipment, ● re-evaluating situations due to lack of communication, ● waiting for job assignments, ● unnecessary movement, and ● unused employee creativity. Feltovich used the example of “dead” vehicles just sitting in the production area not being worked on, and encouraged shops to cut back on the amount of time any vehicle sits idle. One suggestion is to detect all of the damage and repair requirements prior to loading the vehicle into the workshop, so there is only one parts order, saving both time and money. Other strategies he pointed out include bagging all vehicle parts for protection and staging parts for body repairs. “Parts carts” can also help by following the car throughout the repair process.
26 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
“Lean processes tie two critical components together – efficiency with effectiveness,” he said. “Now we’re not only doing things right, we’re doing the right thing.” Throughout his 35-year career, Feltovich has worked with dealerships, independents, insurance companies, OEMs and automotive refinish companies. “Our industry is changing in a very dynamic way,” said Feltovich. “If you’re not getting better everyday, you’re falling behind.” In order for shops to move forward, he stressed the importance of establishing a culture where all employees are actively engaged in improving the company. “Ninety percent is about culture and 10 percent is implementation,” said Feltovich. Over the years he has found that middle managers often get in the way of lean process improvement. “The idea of giving up control to employees doing it better than you is a frightening position to be in.” However, in order to create change in a shop, he said it is important to get all employees on board. “Everyone from the detailer to the front office person to the
owner should have one common goal – create customer value.” The lean process was pioneered by Toyota. Feltovich recommends that shops read “The Toyota Way,” written by Jeffrey K. Liker, for tips on management principles in order to get lean. “Tables and numbers only show us the result,” said Feltovich. “What we want to do is get ahead of the results and create a process that drives the financial results that we need in order to grow and stay in business.” He said customers want it “fast, free and perfect.” By delivering value from the customer’s perspective, continuously improving your process and eliminating waste, Feltovich said there are numerous benefits. These include reduced cycle times, higher quality at lower overall costs, better use of machine time and facility space, less internal stress and less inventory on hand. “Lean process absolutely works. It works in any business. Get it right, it’s incredibly sound. Get it wrong, it’s very disruptive.” For more information about lean processes, contact Steve Feltovich at steven.j.feltovich@sherwin.com.
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Midwest Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
OK Attorney General and Local Auto Body Shops Warn Consumers About Steering with Chasidy Rae Sisk
Near the end of 2014, Oklahoma Attorney General Scott Pruitt issued a warning to his constituents regarding steering practices by insurance companies and auto body shops. As he investigates claims that certain insurers are coercing customers to use approved collision repair facilities, Pruitt has begun to suspect that some insurers may be making dishonest claims in steering customers and may even be knowingly directing consumers to facilities that perform substandard repairs. Charges against these shops include using salvage parts that may void the manufacturer’s warranties while informing the vehicle owner that their car is being repaired with new OEM parts. Attorney General Pruitt states, “It is important to the safety of Oklahomans that insurance companies and repair shops are honest and upfront with their customers about the repair process.” Pruitt continues, “As a consumer, you have the right to know what repairs are being made to your vehicle and the origin of the parts that are being used to repair it. A majority of auto body shops and insurance companies are reputable, honest and respect the difficulty of having a vehicle repaired; however, my office will hold accountable any shops or insurance companies who would seek to defraud Oklahomans through the illegal practice of steering. I encourage anyone who feels they have been a victim of such deceptive practices to contact the Attorney General’s Office immediately.” The Attorney General’s office has also issued a series of tips for consumers to help them avoid steering. This serves as a means of educating the general public about their rights. The information shared includes that consumers have the right to choose the repair facility where they take their car and that they do not have to go to an insurer’s “preferred” or “approved”
repair shop. Furthermore, the consumer should pay the same deductible wherever they take their vehicle. The Attorney General also reminds vehicle owners that their repair warranty is made between them and the auto body shop, not the insurance company. Pruitt advises those in need of a repair to seek referrals from someone without a vested interested in the decision, such as friends and family members, and he suggests asking the repairer questions to ensure that they have a clear understanding of what will be done to their vehicle. The Attorney General’s involvement included collaboration with several local shop owners, and additionally, at the urging of these shop owners, the Insurance Commissioner has developed a public service announcement (PSA) regarding this issue which will begin airing in January 2015. One gentlemen who was involved, Danny Myers of Danny Myers Inc. reached out to Autobody News in hopes of spreading the word about this issue and encouraging shop owners in other states to take up the gauntlet against unethical steering practices. Myers recalls, “The insurance commissioner’s office became involved after conversations with shop owners because steering is rampant, and nothing was being done to enforce the laws already on the books. The insurance commissioner’s office notified us after numerous complaints and conversations with shop owners and consumers. We, Tulsa and Oklahoma City shops, requested meetings to discuss the issue with the district attorney and insurance commissioner. We also had help from our congressman, Jim Bridenstein, who helped facilitate the meetings and was instrumental in making them happen. The difficulty was convincing the commissioner’s office it was needed in the first place because insurance companies routinely deny that [steer-
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ing] happens. Numerous customers can tell you it is a regular occurrence; sometimes, it is blatant, while it is insinuated through vague threats and intimidation at other times. Anyone involved in collision repair sees it happening on a regular basis. After the commissioner decided that something had to be done, it progressed smoothly, and a film crew came to our facility to film the PSA.” The goal of the announcement is to promote consumer awareness of their right to choose where their vehicle is repaired. Myers explains, “our message is that steering is illegal and the customer, not the insurance company, has the right to decide who repairs their vehicle. It is important because a lot of insurers try to intimidate the customer and infer that ‘preferred shops’ are somehow superior when, in fact, they are only ‘preferred’ or ‘approved’ because they give the insurance company a discount.”
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Myers believes that the public service announcement will be beneficial for consumers in OK: “the public will be more educated to their right to choose after hearing the PSA - some people just don’t know the truth and believe they have to do as the insurance company says, which is incorrect. After all, consumers pay them to cover costs to repair their vehicles. The customer is and should be in control; it is their vehicles!” Going forward, Myers and similarly minded collision repair professionals in OK will continue their attempts to keep this issue in the forefront through advertising campaigns and by promoting consumer awareness education as consumers visit or call their facilities or peruse their websites. Though the issue of steering is the primary focus for now, Myers promises “we will address any issue that affects our companies and our customers as they arise.”
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Brace for Challenges
Vacuum extraction of aluminum dust, in fact, has been standard in aerospace for decades, as lightweight aluminum has long been used as a primary manufacturing material. Now similar technology is being used in the automotive industry to control aluminum dust. A dedicated aluminum wet mix air filtration system, such as that stipulated by the Ford F-150 Collision Repair program, for instance, safely captures aluminum dust within the body shop at its source while using water to ensure potentially explosive aluminum dust particles do not become airborne within the unit. A wet mix air filtration system, also known as an immersion separator, essentially brings in the aluminum dust-laden air stream through water contained in the vacuum. One such system, for instance, by Clayton Associates, a Lakewood, N.J.based leader in source capture tools and vacuum sanding equipment, directs the air stream and aluminum dust through a series of air filtration baffles that bursts the air bubbles and thoroughly wets the
dust before the air exits the vacuum. The company also manufactures vacuums for aluminum dust ranging from air-powered portable dry units, up to single and multi-user immersion separators that use water to “wet” the dust out of the air stream. While Ford’s specific requirements call for an immersion separator, dry collection vacuum systems have been used in aerospace to capture aluminum dust at its source for over a decade. “The transfer of safe, high efficiency, aluminum dust capture technology like Clayton’s from aerospace to auto body collision repair is going to make our industry safer, cleaner and more efficient,” says Gardella, who is testing several of the vacuum and airpowered units around his shop. In wet mix technology, one challenge is that a wet aluminum sludge remains at the bottom of the vacuum. This needs to be emptied on a daily basis as part of proper maintenance to ensure safe operation. While some units require the user to drain the fluid, then extract the remaining sludge with a squeegee, this method fails to fully remove the sludge caked on the sides of the unit. This allows a potentially dangerous build up of aluminum to ac-
cumulate. Other units like Clayton’s immersion separator involve a gravity feed drain with a funnel-shaped bottom and water spray-down system inside. This enables a safer, full-system, flush out of aluminum sludge and facilitates daily maintenance. The aluminum sludge, in turn, must be properly filtered to satisfy regulation before the discharge can be emptied into the public sewer system. Aluminum dust vacuum units like Clayton’s immersion separator are designed to filter out such aluminum residue as it exits the unit, so it can be safely discharged into public sewers. As collision repair shops prepare for the lucrative new business that aluminum bodywork such as Ford’s F150 will bring, outfitting their shops with the necessary equipment will position them for a profitable ride. For more info, call 732-363-2100; 800-248-8650 toll free; Fax 732-3646084; email sales@JClayton.com; visit www.jclayton.com; or write to Clayton Associates, Inc., 1650 Oak St., Lakewood, NJ 08701, USA. Del Williams is a technical writer based in Torrance, California.
RAY HUFFINES
VeriFacts Celebrates 3 Million Coaching Observation Milestone
VeriFacts Automotive is celebrating the milestone of having surpassed three million collision repair facility coaching observations since the company began tracking the data in 2006. A coaching observation is a physical inspection and onsite training by one of VeriFacts’ collision repair experts at the individual technician level of the repair process. The coaching observations were conducted as part of the VeriFacts Verified Quality (VQ) Program designed to instill consumer confidence that vehicle repairs have been completed safely, efficiently and transparently. Along with the milestone for coaching observations, VeriFacts has inspected over 118,000 vehicles and coached more than 14,000 technicians. “Our goal is to help collision repair facility owners, managers, technicians and consumers sleep better at night with the peace of mind that vehicles have been repaired according to the manufacturer’s recommendations and safety standards,” explained Farzam Afshar, CEO of VeriFacts. “We want to thank our team of coaches for their significant contribution in achieving this important milestone.”
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On Creative Marketing
Re-Structuring For Renewal with Thomas Franklin
Nature provides us with many wondrous examples of renewal. The snake sheds his skin and appears with a new one. The caterpillar metamorphasizes into a colorful butterfly. As we once again move into a New Year, perhaps it’s time to renew and re-create a powerful forward thrust to gain new, better, or more profitable business. I see the most successful shops in my area looking to a future of change. Technicians are being re-trained to repair new vehicles. Many shops are taking marketing into cyberspace and creating a presence on many social media sites. They also now ask customers and prospects foe their e-mail address. This task of actually doing it is often left to office personnel, customer service representatives and estimators. In the rush to get a customer’s information so an estimate can be written and hopefully the job and the keys to the car obtained, asking for an e-mail address and other vital statistics is often omitted. A book that’s been around a while called “The Path of Least Resistance,” by Robert Fritz, tells us why this new task (and many others) are not carried out and put into practice by employees. Fritz says, “Structure determines behavior.” If behavior isn’t changing, the problem is often with the structure. To illustrate this fact, he describes someone driving a car with a structural problem, out of alignment. If the car is pulling to the left, the driver steers
slightly to the right to keep the car moving straight ahead. Steering straight ahead will not improve the situation. Similarly, giving an employee a new or additional task to perform, without changing the structure to facilitate the task, will seldom result in the employee consistently carrying out the task. From his or her own point of view, the employee may feel the task is “out of alignment” with the structure of his or her job or workflow. A vehicle’s structure must be corrected and aligned to fix the steering. Fritz says to make a change that will be accepted, the change must be structural. In our industry, we are keenly aware of the importance of structural integrity. We’re all familiar with the structure of a vehicle, but what are the structural elements of an employee’s job? Time is an obvious element. If an employee’s day is fully scheduled and you add more time-consuming work without reducing something already being done, he or she will either reject the new task, or drop out some other task arbitrarily. Time must be restructured to accommodate the new task. Another main structural element, from the point of the view of the employee, is compensation. A typical attitude is, “If I’m not being paid more to do this, why should I do it?” Adding a bonus or commission is a structural change that may motivate many employees to take on an added task (if it’s profitable enough for them). And, of course, if
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
it’s profitable for you! Some re-structuring is similar to the “replacement principle” used to help smokers quit the habit of smoking. Cigarettes are replaced with gum, a patch or perhaps eCigarettes to bridge over the change. Some habits are so ingrained, we’re hardly aware they’re habits. For example a couple of shops have been trying to upgrade their images. Both shops have spray booths that are seriously out of date. The problem is, both shops have been turning out good quality work for a long time with their existing spray booths. It’s hard to change a habitual activity when it seems to work well. But insurance companies are becoming more demanding every day, pushing for faster and shorter cycle times. If these shops are serious about growing and acquiring new insurance business, they will break the “old spray booth habit” and replace it sooner rather than later.
When we think of renewal, it’s natural to think of adding new equipment, new facilities, and new procedures, but first it may be necessary to engage in some subtraction. Even the snake that sheds his old skin to display a new one has to first get rid of the old skin. As noted earlier, old marketing habits have to change too. Many new marketing methods require costly personnel familiar with all of the social media strategies. What can a shop owner with a limited budget do to get marketing results? Perhaps the answer can be found in the concept of “structure.” The structure of a vehicle is a fixed base. It doesn’t change from day to day. Effective marketing must go on day after day. Contacting referral business monthly is a must. Communicating with prior customers on an on-going basis is a structural necessity. But a better structure may exist and finding it may be the key to profitable renewal.
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Ford Executive: Aluminum Mostly for Trucks
ord Motor Co. isn’t planning to use much aluminum beyond trucks because the benefits for other vehicles aren’t as compelling, a top executive said at the 2015 Automotive News World Congress. Joe Hinrichs, Ford’s president of the Americas, said the company sees better, more cost-effective ways to improve the fuel economy of its cars. Aluminum “has a place but not the same kind of place” in cars as on the newly introduced F-150, Hinrichs said. “One of the big benefits you get from lightweighting on trucks is you give customers more capability that they want. You can tow more, you can haul more, you can do more of those things by taking the weight out,” Hinrichs said.
“You don’t get those same benefits to a consumer on a car side. So truck buyers will pay for more capability. Car buyers will pay for better fuel economy, but there’s other ways to get fuel economy in a car.” On cars, Hinrichs said he expects Ford and other automakers to use aluminum only for limited applications such as doors and hoods, he said. Ford began shipping aluminumbodied F-150s, which weigh up to 700 pounds less than the outgoing model, to dealerships in November. It has announced that the next generation of its Super Duty will go all-aluminum as well. But Hinrichs declined to say where the company might go with aluminum after that.
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Continued from Cover
New Year’s Resolutions
for our 2016 National Conference (June 2016), and it is our goal to make this our most successful and memorable conference,” Executive Vice President John Williams states. The Auto Body Association of Connecticut (ABAC) intends to continue doing exactly what they did in 2014; President Tony Ferraiolo elaborates, “we will continue to educate members and consumers. We want anyone that needs education from our association to be helped. We will strive to bring the best speakers and content from around the country to our membership meetings.” “Our resolution will be to continue our focus on member benefits and membership growth by aligning the goals of our organization with the true needs of the membership at large. Special attention will be needed with regards to our new Collision members,” predicts Jason Brennan, Vice President and Chairman-Elect of ASA-IL. John Petrarca, President of the Auto Body Association of Rhode Island (ABARI), states that the association’s 2015 New Year’s resolution is “to successfully continue ABARI’s stated mission to protect consumers, preserve competition and professionalize our industry by promoting the highest standards for safety, quality and customer service. In doing so, ABARI will continue to work on many fronts. First, we will continue our decadeslong fight to educate the Legislature and the public of the unfair practices that remain in the industry and to find fair, equitable solutions. Second, we are close to implementing a written ABARI Code of Ethics. The Code will require all ABARI shops to conform to the highest standards for safety, quality and environmental protection. We fully expect it to be in full force and effective in 2015. It is another step in the direction of our ultimate goal of a professionalized industry that is compensated fairly for its important role in protecting the motoring public.” For many, if not all, associations, increasing membership is also a major priority for 2015. The Long Island Auto Body Repairmen’s Association (LIABRA) plans to “continue to expand our membership base and offer new and exciting training seminars for our shop owners and their employees. On the legislative and regulatory
fronts, we expect to continue to address our members’ concerns and ensure the auto collision industry and the New York motorists have a voice on collision repair issues.” Luz Rubio, Executive Director of ASA-AZ, also hopes to see an increase in membership next year; “I think this is an issue that is on top of every association’s list. I am very excited to include many more shop owners in our Automotive Roundtables. The few that were held in 2014 have been interactive and great. These are opportunities to discuss topics, challenges and share successes with other shop owners that will help elevate the professionalism of the industry here in Arizona.” ASA-Colorado’s Chairman, Steve Horvath of Jeno’s Automotive in Littleton CO, says, “ASA-Colorado’s New Year’s resolution for 2015 is to get the local auto body shops more involved with ASA.” Executive Director Kari Foster elaborates, “in 2014, the ASA Colorado Board members met the new ASA National President with this idea in mind. Dan Risley, ASA President says, ‘ASA Colorado’s board of directors’ commitment to grow their membership base in 2015 parallels the movement within ASA National to recruit and retain members. The strength and leadership on their board has clearly positioned them for success. We have high expectations for them and believe they will have a significant positive impact in the market.’” ASA-Colorado also hopes to put together some collision educational meetings in 2015 on consolidation, estimating and the importance of networking, according to Collision President Dan Stander of Jerry Stander Collision Works in Littleton CO. “Our resolutions for 2015 are, first, to increase the visibility of the collision/repair professionals in Texas and help our members increase their business base/profitability,” says Chuck Space, Executive Director of the Texas Independent Automotive Association (TIAA). “We also want to make the 2015 Texas Tire & Automotive EXPO larger and even more responsive to those who attend. As an association, we need to be relevant to our members and successfully achieving these resolutions will help our members and make TIAA stronger.” “ASA-Northwest’s wish list for 2015 is to get more qualified automotive technicians into the automotive industry,” the association’s Executive Director Jeff Lovell explains. “We are
32 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
currently working on apprenticeship programs with our ASA members and the automotive technical colleges throughout the state of Washington. We are also working with Joint Base Lewis McChord (JBLM) to transition troops from military to civilian jobs in the automotive industry. We have a shortage of qualified technician in our industry and the average age of a technician is 45-47 years old.” Nick Notte, President of the National Auto Body Council (NABC), believes their resolution for 2015 “would be to become more inclusive. That means finding ways to bring even more prospective members into the NABC to, unitedly, bring the good news about the Collision Repair Industry and our National Auto Body Council members to every community in this country.” ASA-National “would resolve to add several new member benefits to our portfolio that provide significant value to the shop owner.” Executive Director Dan Risley continues by asking “why? Most shops that belong to ASA support the association because of its leadership position in the industry and our efforts to drive positive change collaboratively. I believe it’s our responsibility to find ways to make
it financially profitable to be a part of ASA through our member benefits. Our Sponsored benefit programs with companies such as AutoZone (parts purchasing rebates), Chryslers Tech Authority ($120 annual subscription), Federated Insurance (property & casualty), Keystone Insurance (vision & dental), Meadowbrook Insurance (workman’s compensation), and Cintas are great examples of the additional value our members receive.” Aaron Schulenburg, Executive Director of the Society of Collision Rep Specialists (SCRS), told us “to be honest, it is more of an ongoing resolution than one specifically designated for the new year, but we are internally committed that next year will bring renewed commitment to strengthening how we deliver upon our mission. SCRS’ purpose is to educate, inform and represent the collision repair professional in all aspects of the industry. We’ve spent a number of years working on really strengthening our role representing our membership, creating resources that strengthen their positions and operations, and delivering a resolute voice of the collision repair industry in rooms and at microphones where the industry needed to be.
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We’ve spent years growing our Repairer Driven Education series at the SEMA Show, holding local events in conjunction with our 44+ Affiliate Associations, and collaborating with organizations like the Collision Repair Education Foundation and SkillsUSA to embolden our efforts to educate. In 2015, our resolution is to find more frequent and more thorough ways to deliver on our promise to inform our membership. It is a priority for us, and we believe the industry is best served through accessibility to not just the most information, but the right information. I know that our board is all very committed and excited to deliver on our resolution.” If these industry experts have anything to do with it, 2015 will be an even better year than 2014 for the collision repair industry. And my resolution for 2015? I hope to be able to attend more industry events, learn more and get to meet more of you amazing ladies and gentlemen who make it such a pleasure to write for this industry. I also encourage your feedback and suggestions so that we can make 2015 the best year ever! Happy New Year’s everyone!
Forward Lift Redesigns Website to Help Users Find Vehicle Lifts and Accessories Forward Lift has redesigned its website with new features that benefit potential vehicle lift buyers and current owners alike. The forwardlift.com updates include modern graphics, new product pages and additional information, all of which are better organized for easy navigation.
“In addition to improving the visuals of forwardlift.com, we’ve added multiple channels of navigation to help guide users through the site” said David Fischmer, Marketing Director for Forward Lift parent company Vehicle Service Group (VSG). “All products are accessible from the homepage or the new category pages, so users can go directly to a specific vehicle lift or browse among a group. This helps make the site more intuitive for a variety of people.” Forward Lift products are categorized on the redesigned site as car
lifts, heavy-duty lifts, motorcycle lifts and accessories. Each category has a home page with links to individual lift models. On the product pages, users can zoom in on photos, find detailed specifications and see which accessories work with which lifts. An archive of Forward Lift manuals has been added to the site. The archive includes literature for current and discontinued lift models, so facility managers, technicians and lift service providers can find information for any Forward lifts that are installed in the shop. Current and potential Forward Lift users can also find guidance on hydraulic fluid needs, bay sizes, concrete requirements and other lift specifics on the new FAQ page. Links across the bottom of each page direct users to Forward Lift’s social media pages, www.facebook.com /ForwardLift and twitter.com/ForwardLift, videos on vimeo.com/ groups /forwardlift and recent press releases. Established in 1968, Forward Lift is a manufacturer of vehicle lifts for a wide range of customers, including independent repair shops, car dealers, body shops, national accounts, vehicle enthusiasts, hobbyists
and heavy-duty truck maintenance facilities. Its products are sold by dedicated distributors and national parts suppliers, including NAPA, Carquest and Pep Boys. Forward Lift is a VSG brand, which comprises nine major vehicle lifting and collision repair brands: Forward® Lift, Rotary® Lift, Chief® Automotive Technologies, DirectLift®, Hanmecson®, Revolution® Lift, Elektron, Blitz® and nogra®. Based in Madison, IN., VSG has operations worldwide, including ISO-9001-certified manufacturing facilities on three continents. Visit www.forwardlift.com for more information.
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Accident App is Pushing All the Right Buttons for Ohio Shop Owner with Ed Attanasio
By designing and developing a mobile app that can help people after getting into an accident, a body shop owner in Columbus, OH is pushing all the right buttons with his Pink Button app, available to his customers at no charge
The Pink Button is an accident-help app that was created by Bob Juniper, the owner of Three-C Body Shop in Columbus, OH with Leo Daugherty III, the owner of Rampart Hosting, Inc, also located in the Columbus, OH
In addition to all of its multiple functions, the Pink Button app provides common sense tips about what to do once you’ve been in an accident. A local law firm has also seen real value in this app and that’s why they’re paying to advertise on it
via Google Play or the App Store. Bob Juniper, the owner of Three-C Body Shop, Inc. in Columbus, OH has been thinking outside of the box for decades and now he’s happy to see that this innovative application is starting to gain momentum. After 2.5 years of development, Juniper is beginning to see some traction with the Pink Button accident app and the numbers are promising, to say the least. “We know have roughly 5,000 downloads since rolling it out back in February, 2013,” Juniper explained. “In December, we got almost 20 new customers from the app. These people got in an accident and then used it to inform us. They were amazed by how well it worked and each repair was completed seamlessly.” Since every repair at Three-C averages $3,000, which means the Pink Button brought almost $60,000 into his shop—all from the power of the Pink Button app. By working with Leo Daughtery III, the owner and CEO at Rampart Hosting LLC, a Columbus-based IT company to develop the app, Juniper believes that the Pink Button is achieving his main objective, which is con-
necting his customers with his shop. “Auto accidents are no longer stressful and disruptive in the Columbus, OH area with the Pink Button,” he said. If you’re in an accident, Three-C Body Shops offers full accident-scene service at no charge, simply by pushing the button. We’ve eliminated the drama associated with standing on the side of the road searching for towing services, looking frantically for a garage to take the damaged vehicle to or waiting for a friend or relative to pick you up so you can carry on with your day. The Pink Button is a safe alternative, because by using it, you don’t have to even leave your vehicle, which makes it even safer for women. If it’s dark or raining, women can have that peace of mind, because they know we’re on the way.” In short, this app allows drivers to do the following, all by simply pushing the button: ■ Their GPS location is immediately sent to Three-C, so they can call within seconds and confirm that they’ve been in an accident and need help. ■ The app then launches a tow truck and provides for a loaner car (if needed) to their location. ■ By using Glimpse, the driver is able to see exactly where the tow truck is precisely how long it will be before it gets there to help them. ■ Once the tow truck arrives, the car is promptly delivered to Three-C while the customer can go about their day. ■ The repair process begins right away and the people at Three-C handle everything, by contacting their insurance company, fixing the vehicle and detailing it. Daugherty and Juniper started talking about the Pink Button after the former got into an accident and took his car to Three-C. “A 30-lb. raccoon got in my way and is guess he won,” Daugherty said. “The service ay Three-C was great, but I noticed that the communication between me and the shop during the repair wasn’t exceptional. So, Bob and I started talking about how an app could play a role and that got the ball (or the button) rolling at that point.” Juniper agreed to embark on the design and development of the app, even though it wasn’t cheap. “It cost
34 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
me about $16,000 to build the app, debugging it and doing all of the testing, but now it’s obviously going to eventually pay for itself. We do a lot of radio advertising here in the Columbus market and in our ads, we constantly plug the app, so that has provided outstanding support for the app.” To further support the Pink Button app, Juniper has his staff 100% on-board and ready to respond fast when the app calls, he said. “We’re four-deep when it comes to our responders. Our two truck driver gets the message first, but three others also get it, so that someone will respond it anyone else is busy. We’re getting back to these people within 90 seconds on average, because we want to placate their fears and concerns quickly. The app is all about expediency and if the drivers don’t hear from us asap, we could lose that customer, so we make sure that a staff member is always there.” As a shop that is DRP-free, Juniper knows that time is money when it
comes to acquiring direct customers, he said. “When I look at my competition, I’m not thinking about other body shops, I’m looking at the insurance companies. With this app, I’m able to get the customer long before the insurance company gets to them. I’ve already towed the car and gotten them a rental, so I’m controlling the relationship before they can steer me away to one of their ‘preferred’ shops. We have always been what we call a ‘Direct Repair Alternative,’ so the Pink Button nicely complements our business model.” Now that Three-C has seen how well the app works, Juniper and Daugherty are going to offer the Pink Button to other body shops nationwide. “We now know that the app’s effectiveness is not a theory, it’s a fact,” Juniper said. “We’ve identified approximately 250 independent shops that we think would be an ideal match for the app. These are forward-thinking shops that think outside of the box, just like us.”
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AudaExplore Technology Driving Performance in Collision Repair Shops by Stacey Phillips, Assistant Editor
With more collision repair shops adopting technology and becoming digitized, the result has been increased efficiency, higher productivity and greater customer satisfaction. Brian Greenley, a Maaco franchise owner in Littleton, CO has found his business has become more streamlined since implementing software and a customized application called One Maaco from the company AudaExplore. He said this has increased his shop’s cycle time and improved the way they measure performance. “Managers now have more control over day-to-day operations, allowing our technicians to work on more repairs per day, which increases the overall profitability of our shop,” said Greenley, who runs the most successful Maaco franchise in the chain. Growing from $400,000 in revenue in 1991 to over $5 million in 2014, he projects his franchise will break the $6 million mark this year. For more than 40 years, AudaExplore, a U.S. business unit of Solera Holdings, has offered a variety of technology options to auto repair facilities for the various stages of the repair process. The company offers five different technology platforms for the collision repair industry: Estimating, Parts Management, Repair Management, Driver Experience and Decision Sciences. “Our goal in developing these platforms is to provide the tools that help repair shops and insurers run profitable and productive businesses as they move toward a more digitized environment, while providing top-notch customer service every step of the way,” said Gordon Henderson, Vice President of Collision Repair Solutions at AudaExplore.
Estimating & Parts Management Henderson said most collision repair shops are probably familiar with Audatex Estimating. This estimating solution provides repairers and insurers the ability to quickly access and visualize data in order to write a more accurate repair plan for a damaged vehicle. “We collect information on thousands of parts that go into a car along with the associated labor time that it takes to remove, repair and re-install those parts and put it in one place, allowing for a quick calculation of what the cost of repair to be for that vehicle,” said Henderson. Used since the
1980s, he said that a recent enhancement to their estimating solution is the integration of APU, which allows shops to check for inventory on alternative parts. (Read more about APU and other parts ordering platforms in the next issue of Autobody News.) In September 2014, the company launched a new version of estimate
check, which includes an advanced analytics model to provide enhanced decision support. Henderson said this allows shops to conduct a more robust check of the estimate to ensure compliance with insurance guidelines and identify any missed operations. With more sophisticated data and analytics, the technology provides analysis for guidance regarding repair or replacement of parts such as bumper covers, door panels, trunk lids and hoods. “We’ve also done things a little different in terms of how our estimating software works,” said Henderson. “We approach it not just as a computerized estimating tool but as a truly automated, intelligent tool that understands how a vehicle needs to be repaired and helps to ensure that the estimator and repairer make the best decisions possible while minimizing the need for manual intervention.” When a part is selected for replacement, Henderson said the shop is able to view a 3D model that is linked to the database itself. “We understand that in order to replace any given part, there are other parts that may have to be removed or replaced and that additional labor operations may be required to ensure a proper repair,” he said. “AudaExplore automatically includes required operations so the estimator doesn’t waste time digging through PPages in order to find out what they have to manually add to the estimate. This eliminates errors and increases speed, accuracy and consistency.” Henderson said this unique approach allows shops to spend less time researching the related operations and improves cycle time. “Fewer supplements means that you are more efficient and saves time,” he said.
Repair Management The company’s repair management platform includes the Autofocus manage-
36 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
ment software installed at body shops. In the case of Maaco, AudaExplore undertook some fairly extensive customization. Maaco had been using its own software program Polaris, which became outdated. Greenley said they sat down with AudaExplore to develop a management system that would help measure profitability through their performance. “A successful business owner should measure every component of his business,” said Greenley, who was one of the first franchises to implement the software in January 2014. “This tool gives us the capability to measure performance within the business.” Approximately 100 Maaco franchises are now using the software and the plan is for the entire chain to adopt it over the next two years. The Autofocus management software is also integrated with AudaExplore’s estimating so customers are able to receive an immediate quote for all of the work they want completed. “A customer’s attention span is short,” said Henderson. “You basically want to get the information to them quickly, help them make a decision and ulti-
mately try to get the keys to the vehicle on the spot.” He said by streamlining the process and making it more consistent across the franchise, it allows Maaco to increase its ability to capture the keys to the vehicle. “Obviously the more jobs captured means more revenue and more profit at the end of the day.” Because Maaco has a very unique workflow, Henderson said, “…as a franchise model you want to have things work homogenously across the entire network. We’ve customized our solution to help support that goal.” Greenley said this has lead to gains in efficiency and more consistency from location to location. Driver Experience In regards to AudaExplore’s driver experience technology platform, the company offers collision repair shops the Go Time Driver application. Go Time Driver allows a vehicle owner to download an app capable of giving them a 3D representation of their vehicle and the ability to communicate with their auto body shop. “They can request a specific day and
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time, select the shop and request an appointment,” said Henderson. “We’ve had tremendous success with this.” Maaco adopted the Go Time Driver application and customized it for their franchises to better communicate with customers and make it easier for them to understand an estimate. “That’s not done easily through a standard estimate in the industry,” said Greenley. Known as One Maaco, there have been nearly 12,000 downloads of the app since it was first launched during the summer of 2014. Another component of Go Time Driver is the AutoWatch solution that allows a vehicle owner to view the progress of their vehicle and receive updated repair status information through an interactive website. “What we’ve found is that it creates a level of transparency that consumers don’t always associate with repair shops,” said Henderson. “The key to that part of the platform is that by keeping consumers informed, they’re directly tied to a higher overall satisfaction on a claim.”
Decision Sciences The company’s Decision Sciences platform aims to improve a com-
pany’s performance by using visualization tools that make it easier to spot trends. Henderson said the company’s Visual Insight brings analytics to the claims process and allows insurers and repairers to visually represent the data collected to make more informed decisions. “Our decision sciences is really all about creating a set of decision tools that allow the estimator or shop owner, and the insurance client, to make better business decisions moving forward,” said Henderson.
A Consultant Approach Henderson said that AudaExplore approaches each body shop in terms of their unique needs to determine the technology that will be most beneficial to their business. In December 2014, AudaExplore announced it signed an agreement to extend its services to all ABRA Auto Body & Glass locations in the U.S. for two more years. Working with the company since 2010, AudaExplore provides its Estimating, Central Review and Consolidator Dispatch solutions. “Our mission is to repair damaged vehicles right the first time, on time,”
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said Tim Adelmann, ABRA’s Executive Vice President of Business Development. “As we grow, AudaExplore’s state-of-the-art technology will continue to help us provide superior service seamlessly to each of our clients through our extensive network of auto body repair shops across the nation.” “Our goal is to make the complicated process of handling a claim much simpler for all parties involved,” said Henderson. “By providing a system that’s highly accurate and connected, we can greatly reduce waste in claims processing activities and help increase overall profitability for our customers such as ABRA.” Henderson said big and small shops, MSOs, insurance companies and independent appraisers are currently utilizing AudaExplore’s various technology solutions. “I think this industry is realizing that consumers are having higher and higher expectations,” said Henderson. “Study after study shows that better communication is directly tied to overall consumer satisfaction, which is directly tied to whether or not an insurance company retains a policy holder or a shop gets repeat referral business.”
Auto Insurer in LA Sued for Underinsuring Motorist
A motorist is suing an auto insurer for underinsuring a man who ran his vehicle into hers. Michelle Ewing filed suit against USAA Casualty Insurance Company in the 24th Judicial District Court on Oct. 17, 2014. On Oct. 18, 2013, Ewing was driving her 2008 Nissan Pathfinder on Interstate 10 West when Christopher Cenac rear-ended her while driving his 1999 Chevrolet Express at a high speed. He was covered by an auto insurance policy provided by USAA Casualty Insurance Company in the amount of $25,000. The plaintiff claims that Cenac took complete responsibility and admitted fault for the accident. Ewing received severe injuries in the incident, including a bulging disc. Ewing claims that in violation of state law, USAA Casualty Insurance Company only provided $24,500 of the $25,000 allowable under the insurance policy. The defendant is accused of violating state law by not providing the full amount of the claim. An unspecified amount in damages is sought for statutory penalties and attorney fees.
As Red-Light Cameras are Discontinued Due to Lawsuits, Speed Cameras get Green Light
The number of red-light cameras nationwide is falling because of opposition from many sources, but the use of cameras to catch speeders is slowly rising, potentially signaling a new battleground, according to reports by the Associated Press. The number of U.S. communities using red-light cameras has fallen 13 percent, to 469, since the end of 2012, according to the Insurance Institute for Highway Safety, a nonprofit scientific and educational organization funded by the insurance industry. That includes the 24 towns in New Jersey that participated in a pilot program that ended this month with no pending legislation to revive it. Meanwhile, the institute estimates that 137 communities use speed cameras, up from 115 at the end of 2011. Advocates for cameras that catch red-light runners point to data showing they reduce accidents, while critics note that they can’t employ judgment to distinguish between, say, a red-light run during rush hour in a school zone and a technically illegal right turn on a red light at 3 a.m. Speeding, however, is a bit more black and white when it comes to cameras.
“The goal of these advocates for the red-light cameras was a one-two punch,” said New Jersey state Sen. Michael Doherty, an opponent. “They’d come in with the red-light cameras and expand to speeding cameras.” New Jersey’s red-light program was beset with problems: a yellow-light timing controversy that caused the cameras to be shut down temporarily; a computer glitch that voided thousands of tickets; and a federal lawsuit initiated by one resident that led to refunds for hundreds of thousands of motorists. Traffic cameras have also been contentious in Ohio, where the governor signed a bill this month requiring a police officer to be present for traffic-camera citations, something camera proponents say negates the practicality of using them to stretch police resources. “It makes no sense to me,” said Adam Loukx, city law director for Toledo. “It seems worse than whatever they thought they were curing.”
www.autobodynews.com C
www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 37
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Retro News: CA’s BAR Talks About Fraud, ‘Internet Body Shopping’ in OH, DiLisio on Getting Involved, Edelen on Skills Erosion with John Yoswick
20 years ago in the collision repair industry (February 1995) In the videotaped interview with an official of the California Bureau of Automotive Repair (BAR), BAR’s Allen Wood explained his agency’s concern with the fraud and lack of training it has found in the collision repair industry in California. “It’s to the point where it’s so bad we have to do something about it,” Wood said. “We’re going to get more aggressive in the area of autobody in the next 12 months. You’re going to see it.” Wood said the BAR’s field staff of about 200 people works closely with insurance and law enforcement agencies and uses a fleet of about 300 vehicles to conduct undercover investigations of suspected shop fraud. “I would like to think that any autobody shop owner in the state of California, when any car drives to his front door, should think maybe that’s a Bureau of Automotive Repair car because it can happen to anybody, any time, any day,” Wood said. “We have done everything from suspending licenses to revoking licenses.” Wood said one of the most common problems found are repair invoices that do not accurately reflect what was done to the vehicle. “If an autobody repairer prepares an accurate estimate and an accurate invoice, and does what he says he’s done, he’s not going to have any problem at all with the Bureau of Automotive Repair,” Wood said. – As reported in Autobody News. Indeed, in the decade that followed, the California BAR cited or shut down a number of shops in that state for fraud, including several Caliber Collision shops. After retiring from the BAR, Wood later served as the executive director of another California autobody association. California lawmakers last year passed a law requiring the BAR to demonstrate to a legislative committee “a compelling public need for the continued existence of the bureau and its regulatory program.”
15 years ago in the collision repair industry (February 2000)
Bob Juniper is bent on enticing car owners to enter the illusion created by the Internet. They never have to see one of Juniper’s 12 Three-C Body Shops in
chairman of the Society of Collision tions work on our behalf.” But, he said, too often people view inRepair Specialists (SCRS), doesn’t always disagree with those who question dustry issues too simplistically. “The reality is that there are exhow much associations accomplish, tenuating circumstances to every sitbut he defends their imporuation and it often requires patience tance and value. “I will be the first to admit and compromise—which is mistaken more often than not as passive behavthat associations do not provide all the answers, but there ior,” he said. “I feel it is important for is no question some of the those who stand on the sidelines to finest people in the industry become involved. I completely unget involved to make things derstand that is difficult to do, but the better for all the rest – albeit most important thing to remember is that no matter how little appears to be not as quickly or as completely as anyone would like,” accomplished, at least something is being done. With the participation, DiLisio said. “But [getting involved] is better than staying guidance, support and commitment In 2005, industry consultant Lou DiLisio was in his second year as chairman of the Society of Collision Repair in the shop complaining, with from others, we would be able to acSpecialists (SCRS), urging shops to get involved with one complish so much more.” little if any chance of changor more of the industry’s associations DiLisio hopes that shop owners ing things. I can honestly say central Ohio. With a few clicks of a that I was like that years ago as well. It will see the fact that there are multiple computer mouse and a phone call, they wasn’t until I became involved that I associations as an opportunity and not can arrange to have their vehicle fixed. realized just how hard these organizaSee Retro News, Page 43 In the near future, the phone call will be unnecessary. Customers will know Juniper and his shops without ever talking to him or setting foot insider one of his repair bays. Three-C could be in central Ohio or central California. It could have clean, well-furnished waiting rooms, or no waiting rooms at all. Customers won’t know or care. They will know Three-C only by what they see on their computer screens. “We have a digital camera in our spray booth,” Juniper says. “When a See these Hyundai dealers below for all your collision parts needs! car comes in, we call the owner and tell him to go to our website and take TEXAS a look. They really get a kick out of that.” Allen Samuels Hub Hyundai – From a column by Tom Slear HOUSTON Hyundai published in Collision Expert on the NO RT H RICHL AN D HIL L S 800-856-2212 role the Internet is likely in the colli281-955-2311 Fax 800-888-2079 sion repair industry. Three-C now has Mon-Fri 7:30am - 6pm 817-589-7882 Fax Sat 8am - 3pm one primary repair facility with three Mon-Fri 7am - 7pm hubparts290@hubhouston.com Sat 7am - 4pm satellite claims centers (and offers mowww.hubhouston.com areed@asag.net bile and online estimating). But it also offers “The Pink Button,” a mobile Van Hyundai phone app that it says allows cusCARROL LTON tomers with one click of a button at an 972-512-4200 accident site to arrange for a loaner car 972-512-4202 Fax and a tow of their vehicle to Three-C. Mon-Fri 7am - 7pm
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Maaco President Goes “Under the Hood” to Inspect His Business on Award-Winning Reality Series by Stacey Phillips, Assistant Editor
When Maaco’s President Jose Costa recently went “under the hood” to inspect his company on the CBS television show Undercover Boss, he said nothing could have prepared him for the unexpectedly meaningful experience he gained. “I went on this journey with an open mind, to learn as much as I could,” Costa told Autobody News. Relatively new to the company, Costa had only been hired a year earlier. “I felt that it was a good opportunity to go undercover and truly see the operation from a blank, unbiased perspective,” said Costa. “I wanted to see it uncensored—what truly goes on behind the scenes. In January, Costa was featured on the Emmy Award-winning reality series that features corporate executives going undercover in their own businesses. In the episode, he experienced a day in the life of four MAACO employees, during which he sanded, prepped and painted vehicles. He said that he wasn’t expecting the work to be so physical and labor intensive. “I think part of the premise of the show is to make the boss look like he doesn’t necessarily know or understand how hard it is,” said Costa. “The truth is that it is very hard to do the type of work that we do in our body shops day in and day out.” He said the experience was very eye-opening to hear from the franchise owners and gave him a great impression of what a typical day is like at a franchise. After going through this unique experience, Costa said he is more motivated than ever. “I got tremendous satisfaction from helping employees and franchisees realize their professional and personal dreams. While on the show, I came to realize that I could make a difference to employees on all levels of the Maaco Corporation.” He said his favorite part of the show was giving the rewards away to the employees. Originally from Venezuela, Costa said a large part of his career has been in franchising, working with KFC, Yum Brands and Burger King. “My drive comes from my family’s values and upbringing,” said Costa. “My grandparents and parents were immigrants who came from Europe to Latin America with a dream to succeed by working hard.”
When Costa joined Maaco in 2013, his goals were clear. “The board gave us the challenge of doubling the size of the brand to close to 1,000 lo-
pany plans to change this perception through their marketing and advertising campaign. Costa said there are three main components.
Maaco President Jose Costa before receiving his makeover for Undercover Boss
Costa dressed for his undercover job as a Maaco technician
cations by 2020 and doubling sales from $500 million to $1 billion in five years,” said Costa. He said there’s a roadmap to follow in order to reach these goals and it involves innovative thinking across the company. “Part of the challenge was transforming a 43-year-old brand,” said Costa. “It was a market leader in many ways but it was also caught in the 1970s.” Over the last two years Costa said the company’s advertising has changed dramatically. Approximately 20 percent of their budget is being invested in revamping their social, mobile and digital operations. One of the company’s major goals is to bring more technology into the operation. Maaco began working with the company AudaExplore in 2013 to develop a production management system and customize an application they named One Maaco. (See accompanying article: AudaExplore Technology Driving Performance in Collision Repair Shops, p. 36) Some of the features include mobile estimating, online appointments, electronic tracking of inventory and parts management and payroll. Costa said these additions have already improved efficiencies and franchise owners have noticed a huge increase in profitability. “Historically, the brand was positioned more around paint and the truth is we do more than $100 million in collision work and not a lot of people know about it,” said Costa. The com-
40 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
First, the company introduced #MAACOver in 2013 to encourage social conversations through Facebook, Twitter, LinkedIn and YouTube. Next, the wording “North America’s Bodyshop” will be incorporated on almost all of their buildings, signs and materials used in 2015.
Maaco also recently announced it is bringing back its “Uh-Oh, Better Get Maaco” slogan first used in 1981. From unhappy neighbors to angry deer, Maaco commercials will follow a modern family and the “uh-ohs” that bring them to Maaco. Another change at the company is in regard to education. Maaco University was shortened from four weeks to three weeks and fieldwork has been incorporated in the training process. With more than 350 franchise owners operating nearly 500 locations, Costa said part of the challenge was how to get them I-CAR certified. A quarterly boot camp was implemented with the assistance of I-CAR. Now 20 to 30 owners are brought in for an accelerated course where they complete the hands-on training portion and then continue with online classes. Close to 65 centers have been certified through this program. Costa said by certifying the owners and then having them train their own employees, it has benefited the franchises. “It improves retention and it improves the moral of the shop,” said Costa.
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One of the projects Costa said he is most excited about is the idea of a retail concierge service where the sales office is separated from the production facility. Over the last 18 months, Maaco has been testing this concept at 13 locations, including Chino Hills, CA and Marietta, GA. The idea is to set up a 1,000 square foot small Maaco
Costa and Maaco employee Christian Soto, who works at the Orlando, FL franchise on Orange Trail Blossom. Photo credit: CBS
office next door to a large retail chain like Target or Wal-Mart. “We wanted to be more relevant to women,” said Costa. After conducting extensive research, Costa said they found “Women were skeptical to do business with us because we used to advertise $299 and $399 and the average repair order was around $1,000. It was that bait and switch mentality that
we wanted to very clearly and in a transparent way show the consumer why the price point goes up.” To help accomplish this, Maaco incorporated 30-second videos that explain the repair process. Costa said these changes have improved efficiencies but there have also been challenges. They found too many things were incorporated the first year and it was difficult to measure the impact. He said some of the programs worked and others did not. One example is when the company decided to move away from using price advertising in April 2013. “By early June we had to put it back on because it hurt us tremendously. We’re really sensitive to price even if we like it or not, consumers react to our price point,” he said. Although there were many challenges that year, the company still had positive sales of three to four percent growth. In 2014, Maaco ended the year with more than six percent growth. “For the first time in the history of the brand we crossed $20,000 average weekly sales,” said Costa. The average center reaches $1 million a year and he said the goal is to con-
tinue having the franchise’s bottom line grow. “The more profitable the franchises are the more they will invest back into the business,” said Costa. “If you bring innovation and other options for the franchise owners to grow and at the same time they’re making more money, it’s a win win for both the franchise owner and the franchisee.” Maaco is part of Driven Brands, the Charlotte, NC-based corporate parent of automotive companies including Meineke Car Centers, Econo Lube & Tune and other automotive-related businesses. The episode of Undercover Boss can be viewed online http://www.cbs. com/shows/undercover_boss/video/4 05E9026-1D3C-E5EC-B12B93BB9B4DFE03/undercover-bossmaaco/
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Continued from Page 22
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we have an area dedicated for aluminum work when we get it. We don’t have a ton of extra space here and we’re taking full advantage of what we currently have, but when aluminum becomes a significant amount of our volume, we’re ready.” There was definitely an added cost to building what Hubbard describes as “the ultimate green shop,” but once it was up an and running, it was all worth it, he said. “Some shop owners may think it costs a lot more to be green, but it’s really not that more expensive overall, because we’ve cut our waste and it is definitely showing up in our bottom line now. We don’t waste anything and we’re coming from that mindset, so once you get into being green, the benefits start to become apparent.” By using more natural light whenever possible and painting all of his floors with reflective paint, insulating his ceilings to retain heat and installing motion sensors on all his lights. Selecta’s utility bills are lower. And of
Top Honors from IIHS Have Nearly Doubled Since 2013
The Insurance Institute for Highway Safety (IIHS) recently announced that 71 vehicles earned Top Safety Pick awards compared to 39 last year. The number of winners in the top tier— Top Safety Pick+—has increased by 11 for 2015, despite a tougher standard for front crash prevention. “This is the third year in a row that we are giving automakers a tougher challenge to meet,” says IIHS President Adrian Lund. “The quest for Top Safety Pick and Top Safety Pick+ awards is driving improvement in the small overlap front crash test and getting manufacturers to offer automatic braking technology on more and more vehicles.” While the bar has been raised for Top Safety Pick+, the criteria for Top Safety Pick are unchanged: a good or acceptable rating in the small overlap front test and a good rating in each of the Institute's four other crashworthiness evaluations— moderate overlap front, side, roof strength and head restraints (see “A higher standard: 39 vehicles meet new criteria for Top Safety Pick, Top Safety Pick+,” Dec. 19, 2013). The 2015 Top Safety Pick+ designation is awarded to vehicles that meet those criteria.
course, by saving paint, clear coat and sealers with every car painted, it adds up to offset his original investment. “It starts to make more and more sense after you’ve done it for a while,” Hubbard said. “We’re using fewer products to fix our customers’ cars without sacrificing quality and that’s the important thing.” Do customers in San Francisco really care about the fact that Selecta Body Shop is a green shop and did it help him to land his most recent DRPs? “I would say yes to both questions,” Hubbard said. “I believe 100% that our customers care. If they don’t know it initially, we let them know and most of them say very positive things. If we do a good job on their car and on top of that we’re a green shop, yes—I believe they will come back. And do the insurance companies see any value in the fact that we’re doing things with the environment in mind? I definitely do—if they can align themselves with a forward-thinking, responsible company—why not?”
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www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 41
Detroit News Reports New F-150 Insurance Costs are Unclear but Likely Marginally Higher
About 8,000 aluminum-bodied F-150s are on their way to dealer lots, but it still may be too early to tell if the lightweight material will mean higher insurance costs for buyers of Ford Motor Co.’s latest pickup, says Michael Martinez, writing in the Detroit News When news broke that the 2015 truck would have an aluminum body, there was speculation that the cost of collision insurance would go up because repairs would be more costly and require special body tools. But the Dearborn automaker has subsidized repair training and new tools for dealers with body shops to help ensure competitive rates. “It’s too soon to tell whether the new F-150 is going to have higher insurance losses than the previous generation model,” Russ Rader, spokesman for the Highway Loss Data Institute affiliate of the Insurance Institute for Highway Safety, said in an interview. “We’ll need to have enough of them on the road getting into enough crashes to gather data on repair costs.” Some early indications are that costs could be marginally higher. Online insurance quotes from two Metro Detroit agencies priced the 2015 F-150 XLT anywhere from $27-$54 higher than a comparable 2014 model over a 6-month period. Insurance infor-
OSHA Tops 3000 Whistleblower Cases for First Time
A milestone has been reached in federal whistleblower cases, according to law firm Jackson Lewis PC. OSHA has investigated more than 3,000 cases in a fiscal year for the first time ever. It took on 3,060 cases during FY 2014, 91 (3%) more cases than during FY 2013. OSHA administers the whistleblower provisions of 22 federal statutes. OSHA did not disclose the number of whistleblower complaints it received in 2014 that were rejected after the initial screening and not investigated. However, a study showed that in cases filed from 2011 through 2013 under the whistleblower provision of the Occupational Safety and Health (OSH) Act, only 41% passed the initial screening. While the reasons for the increase are not clear, one explanation could be the elevated media attention given to large monetary awards and settlements. A Washington-based attorney who represents whistleblowers told Bloomberg BNA that punitive damage awards of $100,000 and more in Surface Transportation Assistance Act (STAA) cases and new Federal Motor Carrier Safety Administration (FMCSA) rules have encouraged drivers to bring claims if they are told to exceed legal driving hour limits.
mation was given for both a 58-year-old male from Grosse Pointe Woods and a 37-year-old female living in Royal Oak. Insurance rates vary greatly, and depend on a number of factors including age, location, driving history and past driving record. Rader’s office recently conducted studies comparing aluminum-bodied luxury vehicles like the Audi A8 against their steel-bodied counterparts like a BMW 7 Series and found costs for aluminum vehicles were anywhere from 9 to 20 percent greater. But that doesn’t necessarily mean F-150 insurance costs will rise. “Since the F-150 is a mass-market, high-selling vehicle, it’s collision claim experience could be different,” Rader said. “As more repair shops become equipped and receive training to handle aluminum, the increased volume could drive costs down. In addition, Ford has stated that they have incorporated modular designs to facility replacement to damaged parts which may save on labor costs.” Ford maintains insurance costs for the new truck will remain competitive. “Insurance rates represent only about 11 percent of the average cost of ownership for F-150 customers, while fuel and depreciation costs represent
Ed Foundation Taking Grant Applications for Schools
The Collision Repair Education Foundation says the application for their Ultimate Collision Education Makeover school grant is now available for high school and post-secondary collision school programs to apply. The grant program is in its seventh year and new this year, the two annual grants will be in the names of Allstate Insurance and State Farm Insurance, honoring the companies for their continued support of the Foundation. Instructors are advised to begin the application early and industry professionals are encouraged to get involved with the Makeover grant by working with their local school’s collision instructors to help them apply. The Makeover grant is available to high school and college collision school programs nationwide, with priority going to not-forprofit/public schools. The winning schools will be announced during SEMA 2015. “Those collision school programs that complete the Makeover application are at the top of our priority list to assist as they have taken the time to complete the application and provide us with their itemized collision wish list,” noted Director of Grant Program Melissa Marscin.
42 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
about 68 percent of ownership costs,” Ford said in a statement. “With improved gas mileage and a higher residual value expected from the use of advanced powertrains and high-strength materials, we expect cost of ownership for the all-new F-150 will remain similar to or less than today’s levels. Reduced repair times for certain major collision repairs are expected to help keep insurance rates competitive as well.” The new truck weighs about 700 pounds less than prior models, and can get up to 26 mpg on the highway—tops among all gas-powered full-size pickups. Because the F-150 is such a highvolume seller—F-Series has been America’s best-selling vehicle for 33 straight years—Ford offered dealers with service shops a voluntary Collision Repair Program that trains workers how to repair the new vehicle. Ford said Tuesday more than 1,500 dealers have already participated in the program, which includes tooling upgrades that will cost between $30,000 and $50,000. Ford will chip in up to $10,000 in rebates to purchase equipment for aluminum repairs to any interested dealer with a service shop. “It is important to note that less than 50% of our dealers have body
shops, although we expected that only 20-30 percent of our dealers needed equipment and training due to the larger volume of collision work those dealers do,” spokeswoman Elizabeth Weigandt said in an email. “The majority of collision work (80 percent) is done by independent shops.” Avis Ford in Southfield is one of the 1,500 dealerships that went through the repair training. Ingrid Henderson, a sales associate at Avis, said the truck was so new that replacement part prices weren’t even logged in their system. She said the dealership has sold a couple trucks already, and one sits in their showroom. “The F-150 has always been a huge demand,” she said. “So far for the ’15, it’s the same demand or greater than before. We’ve never have a problem selling them.”
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Retro News
a discouragement to participation. “We are collectively working together on a number of issues to promote a united front and remove redundancy from specific tasks,” he said of the three associations. “There are only so many dedicated and involved individuals in the industry who have stepped up to serve at these levels, and we’ve all finally realized that with limited resources and even more limited time, we need to work together in order to be most efficient in achieving our goals.”
– From an article in Automotive Report on the three largest associations representing the collision repair industry. DiLisio, a former shop owner, has worked as a consultant in the industry since 1999.
5 years ago in the collision repair industry (February 2010) During a panel discussion at the recent Collision Industry Conference (CIC), I-CAR CEO John Edelen shared his opinions on the nation’s economy and some of the industry’s challenges. About a year after he delivered a fairly bleak short-term assessment of the economy, Edelen said he continues to believe unemployment could re-
main high for as much as the next five years, with Americans slow to return to “pre-melt-down spending habits.” He said what keeps him up at night is the growing challenge Americans will face in finding skilled craftsman to repair their refrigerator, HVAC or car—or what he called the “erosion of careers for young people who want to work in a skill-based environment.” Pressures on margins for shops and insurers, Edelen said, “suggests to me that there will continue to be an underinvestment by our industry in technical development. That combined with the workforce that we have access to, at the education level and the salary level that employment segment is will-
Fake Drivers’ License ‘Ringleader’ Sentenced to 6 Years
A former northern NJ resident who authorities say ran a multi-state scheme that provided fake driver’s licenses and other documents to people in the country illegally has been sentenced to prison, according to Claims Journal. A federal judge in Newark sentenced Young-Kyu Park to six years in prison. The 58-yearold former resident of Fort Lee was one of nearly two dozen people
charged in June 2012. Park was living in Los Angeles at the time of his arrest. Suspects were arrested in New Jersey, New York, California, Nevada, Virginia and Georgia. The U.S. attorney’s office alleges Park obtained blank immigration forms that were then filled out with customers’ personal information and used to procure driver’s licenses and other forms of identification. The
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ring also produced counterfeit documents including passports. Among those arrested was a contract employee of the U.S. Citizenship and Immigration Services who was convicted of stealing the forms used in the scheme.At the time of the arrests, the U.S. attorney’s office said as many as 700 transactions involving fraudulent documents had been identified, most by South Koreans
ing to work at—it all doesn’t create a very pretty picture.” He said insurers and repairers have yet to identify and develop a win-win solution. “Do I believe it’s there? I absolutely do,” Edelen said. “But in an industry that has always been a zerosum game, where for me to win you have to lose, I just don’t see us making the progress that really can be made. It’s a mentality that needs to change.”
– As reported in CRASH Network (www.CrashNetwork.com), February 22, 2010. Edelen, previously an executive with Allstate, retired from ICAR later in 2010 after leading the organization for about three years.
who were in the United States illegally and who each paid between $3,000 and $4,500 for the service.
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Volkswagen to Add 100 Dealerships by 2018, 650 Current Dealerships are Fewest of Major Brands
After two years of sputtering sales in the U.S., Volkswagen is planning an aggressive expansion. The company has plans for major new products and its goal is to add 100 dealerships across the nation by 2018. The dealerships, to be opened in areas where there is a low VW presence, will complement new Volkswagen products arriving in the next few years. A brand new crossover, made in Chattanooga, will debut in the first quarter of 2017, followed shortly by a long-wheelbase Tiguan. Big ticket items like the redesigned Jetta and Passat arrive in dealerships by late 2017 and 2018 respectively. Volkswagen currently only has 650 dealerships in the U.S., a small footprint compared to other automakers, but those franchises are the most the brand has had in the U.S. since 1993. According to a report from Automotive News, many VW dealers are struggling from slow sales after investing millions of dollars in their stores, all in preparation for helping VW achieve its 800,000 sales target by 2018. “The U.S. market now is a key focus of the Volkswagen Group,” Volkswagen of America CEO Michael Horn told Automotive News. “It’s the
most important market for us to get our further growth.” Along with new dealerships, the new CEO has taken other steps to revive the VW brand in the U.S. Starting with the new Passat, the automaker has committed to redesigning its products every five years, instead of every seven years like it has in the past. VW has also authorized a board committee to make key decisions locally, further strengthening VW’s reliance on the American market. Volkswagen will build each of its four core models—the Jetta, Passat, Tiguan and the still-unnamed midsize crossover — in North America once the next generation Tiguan and new midsize crossover start production. “There’s probably 25 to 30 percent, depending on which month you’re looking at, of our dealer body that is struggling to be profitable,” Alan Brown, chairman of Volkswagen’s national dealer council, told Automotive News in a Dec. interview. Brown also is general manager and partner in Hendrick Volkswagen Lewisville, a highvolume dealership in suburban Dallas. Despite the challenges, Brown said dealers are encouraged by the steps VW has taken, since Horn became CEO, to turn its U.S. fortunes around.
www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 43
RUPES Brings Collision Repair Tools to U.S. Through Acquisition of Cyclo Toolmakers by Stacey Phillips, Assistant Editor
Auto body shops will soon have easier access to purchase collision repair tools from Italian-based business RUPES. The company recently purchased Cyclo Toolmakers in Longmont, Colorado, and the U.S. facility will become the center of RUPES’s operations in North America. “RUPES is absolutely committed to growing its presence in the North American market,” said Jonathan Kissov, the VP of Sales and Marketing for RUPES USA. “We see tremendous synergies between Cyclo and RUPES and are excited to have Cyclo’s engineering, manufacturing, distribution and support capabilities available to use.” Cyclo Toolmakers first introduced the Cyclo in 1952. Cody and Carolyn Sutherland purchased the company in 2003 and re-located to Longmont, CO. They moved to Mead a year ago, where they manufacture the Cyclo onsite. Originally designed as a metal polishing tool, the Cyclo is used as a final step buffer in a body shop environment. It is also used for auto detailing and airplane polishing, including caring for the Air Force One fleet, as well as for industrial uses. “It is an incredibly durable product,” said Sutherland. “It’s made the
ETI Nominations for Board Members until January 16
The Equipment and Tool Institute’s (ETI) Nominating Committee will be meeting to select a slate of nominees for the ETI Board of Directors, to be voted on electronically prior to the ETI Annual Membership Meeting. This meeting is scheduled for Monday, April 13 at ToolTech in Austin, TX. Three Board seats are up for election due to expiring terms. These seats currently belong to David Rich, Dennis Keane and Kathy Kedzior. ETI will be accepting applications for consideration by the Nominating Committee. ETI has no term limits for board members, nor does it have an automatic term renewal policy. Existing board members and new candidates must both apply in order to be considered for the expired board seats. If you wish to discuss possible candidates, contact the Chairman of the ETI Nominating Committee Ben Johnson by phone 858-391-5404 or by email ben.johnson@mitchell1. com. Please submit the completed application form no later than Friday, January 16, sooner would be better. You will be notified as to your application status in the latter part of January.
way power tools used to be made, constructed of metal and built to last.” Very few changes have been made to the Cyclo machine design over the years. The business owner still receives products from the 1950s on a weekly basis that come in for repair. “If you look at a 1954 version and you look at today’s version, you would have to look pretty close to find the differences,” he said. In January, the company announced an updated version of the Model 5 called the Mark II. Sutherland said it has an improved power switch and the shape of the tool has been modified for easier control. Sutherland was approached by RUPES in 2014 about the possibility of acquiring Cyclo Toolmakers. “As I learned more I was impressed,” said the business owner. “I thought they would be a benefit to Cyclo’s customers and our efforts to continue modernizing our products.” Sutherland traveled to Italy to meet with the owners and executives of RUPES. Located in Vermezzo, Italy, a suburb of Milan, RUPES was established in 1947. RUPES is an acronym for Realizzazione Utensili Pneumatici Elettrici Speciali, which means Manufacturer of Special Pneumatic & Electric Tools in English. The company entered the North
American market nearly three years ago with their Bigfoot polishing system, which encompasses a line of electric and pneumatic car polishers along with foam pads and polishing compounds. Sutherland said the products allow a swirl-free finish on vehicles and other surfaces and are becoming popular in the industry. Guido Valentini, President of RUPES, said the company also offers a wide range of products that cater to the auto body repair industry. “During 2015 we will enforce the ‘gearing’ within the Italian and American companies improving logistics, customer service and repairs,” said Valentini. “Beginning in 2016 we will implement local R&D, and we will start the manufacturing activity of all new products. Definitely, we want to manufacture and assemble in the U.S. all of what we sell in North America.” He said they will also manage distribution in Canada and Mexico from the Longmont, CO location. “RUPES has plans to serve all of its customers in North America better,” said Sutherland. “That was really the reason for the acquisition—to get an organic existing operation here with customer service, warehousing, manufacturing and engineering.” As the new VP of Operations, Sutherland is the general manager for the North
Axalta Launches ‘Color Block’ Blog
Axalta Coating Systems recently launched a new blog titled “Color Block” focusing on color. The manufacturer of liquid and powder coatings introduced the blog to highlight its Automotive Color of the Year campaign. Axalta executives, fourtime NASCAR® Cup Series champion Jeff Gordon and Ray Evernham, three-time NASCAR champion crew chief and host of Velocity’s television show, Americarna revealed Axalta’s 2015 color of the year, Radiant Red, at SEMA 2014 in Las Vegas, Nevada. Radiant Red debuted on the No. 24 Axalta Chevrolet SS driven by Gordon. The blog will feature posts from experts in a variety of industries including fashion, interior design, architecture and cosmetology. Axalta’s own color experts Nancy Lockhart and Dan Benton will post blog articles as well. “This is a great opportunity for Axalta to continue to share our automotive color expertise and invite experts from an array of fields to discuss the relevance of red in their industries,” said Nancy Lockhart, Axalta’s Color Marketing Manager. To read it visit www.axaltacs.com/us/color.
44 FEBRUARY 2015 AUTOBODY NEWS | www.autobodynews.com
American operation of RUPES. “Part of our future role in the global operation is to manufacture products now made in Europe, here in the states.” These include polishers, grinders, sanders and dust extraction vacuums. Sutherland said the dust collection systems offered by RUPES will benefit shops repairing the new aluminum-bodied Ford F-150. “With the introduction of more aluminum body parts, and the F-150 being a flagship of aluminum body parts, dust collection has become a far more important safety issue,” he said. “Aluminum dust can be explosive, so safe collection becomes an incumbent responsibility on body shops working with those materials.” “We recognize the high-quality reputation that the Cyclo brand enjoys across several market segments and promise to work diligently to both honor and improve the status of the brand while leveraging Cyclo’s capabilities to improve RUPES’s service, support and technical levels in North America,” said Kissov. “We are also looking forward to embracing the international distribution network that Cyclo has developed and working with them to further promote the Cyclo brand internationally.” The companies’ websites are: cyclotoolmakers.com and rupes.com.
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A Father’s Dying Wish Coming True: Manteno Auto Body Man Steps up to Save a ‘Cuda’
means more than transportation to a man he never met before a friend called Manteno, IL, auto body specialist Mike to ask a favor last year. Dumas knows what he’s doing around Dumas, 55, couldn’t ignore the yesterday’s muscle cars. He lovingly story. Darren Evans, 51, of downstate restores them, with incredible attention El Paso, was the chief sheriff’s deputy of Woodford County. And he was just given a death sentence by his doctors. A persistent cough was diagnosed as lung cancer. He was given a year to live. Of course he wanted to make the most of his time with his family, but there was this one other matter. “I was a gun collector and I lost all interest in that. I could sell those,” he said. “But I had this Barracuda out Darren Evans (center), his 19-year old son, Adam (left) and in a shed. I bought that car Michael Dumas of Platinum Auto in rural Manteno look at when I was 15. And I held on the 1971 Barracuda being restored for him as a gift from his to it, hoping that I could work family. Photo courtesy of The Daily Journal/Mike Voss on it some day with my son to every detail. He has done that for 12 [Adam, 18]. My dad [Jim] helped me years at Platinum Custom Cars. buy it back then. And I thought it was He also knows something about something I could leave for my son.” what cars can mean to people. And But there was never time or money that’s why he has devoted so much time for this sort of indulgence. And, with the to a project he’s doing off the books. clock ticking, the car looked like a He knows that the green 1971 Ply- dream that couldn’t come true. That is, mouth Barracuda convertible, which he until Darren’s friends stepped up. One has toiled over for the past nine months, friend rebuilt the engine. Another speby Dennis Yohnk, Daily-Journal.com
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cialized in finding the best spare parts. And another made that call to Dumas. “I told them we weren’t going to cut corners: We were going to do it right. But if Darren could hold on, he could drive his car again. He could give his son a memory he’d never forget,” Dumas said, noting that the car is now being pieced back together after being completely stripped down for a full restoration. “The plan is to get it done in time for the World of Wheels [car show ] at the Rosemont in March,” he said.
“Thousands of people will see it there, and then Darren can drive it off the floor and back to El Paso.” That would be his first time behind the wheel since he parked the car in 1992. At that point it was only on the road briefly. He purchased it at 15,
Fix Auto to Hold Annual Conference Sept. 20–23.
Fix Auto announced that its 13th Annual National Conference will take place September 20–23, 2015 at the Ojai Valley Inn and Spa, a luxury resort with a rich history located in timeless Ojai, California. The invitation-only conference remains a signature event for Fix Auto, bringing together Fix Auto members, insurers, suppliers, OEMs, and an impressive line-up of industry leaders. Fix Auto is committed to making 2015’s conference the most memorable one yet. It will feature the distinctive mix of speakers, breakout sessions, and activities for which the Fix Auto National Conference has become known, in a setting that fosters relaxation and inspires networking. “The conference is about collision repair professionals coming together for the free and open exchange of information, which is a core benefit of being part of our network,” stated Fix Auto President and COO Paul Gange. “Because of the unique content we produce, last year’s event sold out and we anticipate doing the same this year,” added Gange. To request an invitation, please contact Jonathan Herrera at 858.764.0756, www.fix auto.com.
and drove it from 1978 to 82. At that point it needed work, but he wasn’t willing to part with it. “I bought it for $3,200, and I think I was offered something like $8,000, as it sat, but I always thought I could bring it back, and Adam could have some fun in it like I did.” In fact, Darren admits he had a little too much fun, and has the speeding tickets to prove it. He matured, though, and found a place on the other side of the law—even though his love for this car never let up. His commitment made sense, financially. This type of restored car can sell for more than $100,000. But Darren isn’t interested in that reward. He wants to see Adam behind the wheel, maybe tearing down some of the same roads he traveled. First, though, Dumas has more work to do. The painting isn't complete. All of the parts have to come back together— perfectly, to suit his Detroit native. “I still keep busy with my clients’ cars, but I put all of my personal projects on hold until this is done,” he said. “I have a couple of trucks in pieces in storage while I put in all my nights and weekends getting this done.” We thank Daily-Journal.com for permission to reprint their article.
2015 Vehicle Lifting Points Guide Now Available
The Automotive Lift Institute, Inc. announced the availability of the 2015 edition of ALI’s “VEHICLE LIFTING POINTS for FRAME ENGAGING LIFTS.” This updated guide is a quickreference single-source manual for lifting point information as recommended by vehicle manufacturers. The 70-page Lifting Point Guide (LP-Gide) for domestic and imported cars and light trucks uses more than 200 undercarriage images to cover the most recent 25 model years. For this new edition, the 2015 model year vehicles were added, some older images were revised, and additional cautionary notes were provided in an effort to clarify pick-up point locations for shop owners, technicians and other LP-Guide users. The Automotive Lift Institute (ALI) sponsors this guide annually as an industry service, utilizing data furnished exclusively for ALI by Chek-Chart Products, MOTOR Information Systems. Many proactive companies and franchises now incorporate ALI’s LP-Guide and other safety materials as an integral component of their overall employee safety and training program. Visit ALI’s website www.autolift.org to order this updated guide, to locate automotive lift inspectors certified by ALI.
www.autobodynews.com | FEBRUARY 2015 AUTOBODY NEWS 45
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