February 2020 Southwest Edition by Autobody News

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Vol. 38 / Issue 2 / February 2020

Arizona Geico Fraud Lawsuit Reaches Settlement Agreement

Catching Up With ASA Colorado’s December Events

by Emmariah Holcomb, glassBYTEs.com

by Chasidy Rae Sisk

The ongoing legal battle between Geico and six parties has ended in an Arizona courtroom. According to the joint settlement motion, both parties came together outside of the courtroom and have reached an agreement. “… based on the communications and discussions between and among counsel for the parties, the parties have agreed to a settlement on all material terms in this case. The parties are currently finalizing the terms of the settlement, and an-

ticipate having final settlement documents within 30 days,” a portion of the joint settlement motion reads. The lawsuit alleged the defendants: 808 Auto Glass, Jesse Pacheco, the sole member and operator of 808 Auto Glass, A&E Auto Glass, an Arizona limited liability company, Eric and Anna Solheim, who were the sole members and operators of A&E Auto Glass, Lightning Capital, a limited liability company that claimed to be a third party business, and Nicholas Minard, a managing member of LightSee Geico Fraud Lawsuit, Page 18

Prevalence of Vehicle Scanning – and Insurers’ Willingness to Pay for it – Have Risen The industry’s adoption of vehicle scanning as an indispensable part of the repair process can be seen in the results of the “Who Pays for What” surveys conducted for several years by Collision Advice and CRASH Network. In the survey conducted this past fall, 11% of shops said they might skip a post-repair scan because no dash lights are lit – not a legitimate reason – but in the same survey in 2016, nearly half of all shops (44%) said that was a reason they might skip the scan. Likewise, three years ago, about 1 in 5 shops said they did-

n’t perform scans because they don’t have the tools necessary to perform the scans. In the latest survey, 2% used that as an excuse. Payment practices have evolved as well. Back in 2016, a “Who Pays” survey found more than 30% of all shops said that one of the reasons they didn’t perform a post-repair vehicle scan was that insurers didn’t pay them for the procedure. Three years later, just 12% of shops say a lack of insurer payment is one of the reasons they might not perform a vehicle scan. More than 97% of shops See Vehicle Scanning, Page 28

have been well-received by attendees. The purpose of these events is December was a busy month for to offer training for our members and ASA Colorado with the association members of the community. This is hosting several training opportuni- an important function for the associties as well as its annual dinner. Ac- ation and provides purpose.” The group’s first training session of the month, “Managing Employees When Turnover is Not an Option,” was held at Advance Auto Parts in Denver on Dec. 9 and 10 and taught by Greg Marchand. Massaro recalled, “It is hard to find good employees. Sometimes, it is hard to just ASA Colorado hosted its 2019 annual members’ dinner find employees at all, let alone on Dec. 16 at the NAPA Distribution Center in Denver. good ones. What do you do Credit: ASA Colorado when you feel stuck with cercording to ASA Colorado Executive tain employees? This seminar adDirector Julie Massaro, “All of the dressed managing these challenges in training events have gone well and See December Events, Page 10

What We Know About US Jobs and Other Details of Fiat Chrysler, PSA Merger by Breana Noble, The Detroit News

Fiat Chrysler Automobiles NV and French automaker Groupe PSA said their boards unanimously supported a binding agreement to merge and create the world’s fourth-largest automaker. The deal is one step further than Fiat Chrysler got earlier this year with Renault SA, another French carmaker. The combination of PSA and FCA is expected to provide cost savings, create a hedge against cyclical downturns and have the scale to invest and compete in an electric and self-driving future. Although the companies are calling the deal a 50-50 merger, PSA would hold a board majority and appoint six of the 11 board members. That includes PSA CEO Carlos Tavares, who is expected to lead the

combined company. Here is what else to know about the deal: What comes next? With the binding agreement signed, the automakers can pursue obtaining antitrust and regulatory approval from the companies in which it operates. They also must receive approval from their shareholders. The process is expected to take 12 to 15 months. “We don’t feel we have any concerns with antitrust” laws, Tavares said. “We’ve reviewed this topic and are very comfortable we have no problem on antitrust” regulations. What is the name of the new company? The name of the new company has not yet been announced. Information See US Jobs, Page 28

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CONTENTS

Mitchell Partners With UpdatePromisePay

REGIONAL

NATIONAL

Arizona Geico Fraud Lawsuit Reaches

11th Circuit Court Dismisses Suit Alleging

Asbury Automotive Group Acquires Park Place Dealerships . . . . . . . . . . . . . . . . 10 Auto Glass Academy is Now a Licensed Educational Facility . . . . . . . . . . . . . . . . . . . 12 Catching Up With ASA Colorado’s December Events . . . . . . . . . . . . . . . . . . . . . 1 Collision Works Receives Top Workplaces 2019 Award . . . . . . . . . . . . . . . . . . . . . . . . 28 Gifted Rehabbed Car From Bates Collision Rewards HCDE Head Start Parent . . . . . . . . 12 HD Repair Forum’s 2020 Event Designed to Prepare Industry Leaders for Change and Growth . . . . . . . . . . . . . . . . . . . . . . . . . 18 Houston-Based Foundation Launches Car Donation Program for Single Moms. . . . . . . 18 New Colorado Charter School Thinks Outside the Classroom . . . . . . . . . . . . . . . . 14 ProCare Collision Acquires Texas Locations . . . . 6 Registration to the 2020 HD Repair Forum is Now Open . . . . . . . . . . . . . . . . . . . . . . . . 16 WIN-Sponsored Giving Event in Denver Benefits Foster Kids and Military Families . . . 6

Conspiracy to Deflate Collision Repair Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 ASE Certification Registration Now Open. . . . . 47 Automotive Technology Department Head Stresses Life Skills First . . . . . . . . . . . . . . . 30 Blind People Can See Through Ford’s New Car Window . . . . . . . . . . . . . . . . . . . . 46 Chevy Shake Class Action Says Driveshaft is the Problem. . . . . . . . . . . . . . . . . . . . . . . 43 Driver Assistance Systems May Cause Distracted Driving . . . . . . . . . . . . . . . . . . . . . 4 Industry Veteran Shares Insight About Future of Collision Repair Industry. . . . . . . . 26 Mercedes-Benz Recall Failures Lead to $20 Million Settlement . . . . . . . . . . . . . . 46 Mitchell Partners With UpdatePromisePay . . . . . 3 Prevalence of Vehicle Scanning – and

Anderson - Reflecting on My Journey in the Collision Repair Industry . . . . . . . . . . . . 32 Attanasio - First Paint Suits Designed for Ladies Announced at SEMA . . . . . . . . . . 38 Phillips - Industry “Disrupter” Launches Collision Industry Book & Patent-Pending Test-Drive Technology . . . . . . . . . . . . . . . . . 20 Sisk - ASA’s Webinar Wednesday Addresses What’s Happening With Data Access Policy . . 42 Yoswick - MSOs Hear Positive Outlook for 2020, Discuss Mixed Impact of Photo Estimating. . . . . . . . . . . . . . . . . . . . . 34

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Alexis Wilson Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

chant services to the automotive industry in the year 2016. Chief Operating Officer of UpdatePromise, Rich Pannazzo, comments, “We saw a gap in the automotive space when it came to consumer payments. There was no true point of sale system available for business to provide a smooth, seamless and integrated payment process to their customers, who today, expect to pay everything on their phone or on a smart device capable of texting and emailing their receipts to themselves,” on the background of developing UpdatePromisePay. Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Audi South Austin . . . . . . . . . . . . . . . . . . 33

Hyundai Wholesale Parts Dealers. . . . . . . 40

Audi Wholesale Parts Dealers . . . . . . . . . 45

Innovative Tools & Technologies. . . . . . . . 23

AutoNation Chrysler-Jeep-Dodge-Ram

Kia Motors Wholesale Parts Dealers. . . . . 37

of North Phoenix . . . . . . . . . . . . . . . . . 15

Matrix Automotive Finishes . . . . . . . . . . . 11

AutoNation Collision Parts . . . . . . . . . . . . 17

Mercedes-Benz of Littleton . . . . . . . . . . . 31

Axalta Coating Systems. . . . . . . . . . . . . . . 5

Mercedes-Benz Wholesale Parts Dealers . 47

Big Mike Naughton Ford . . . . . . . . . . . . . 31

Mitsubishi Wholesale Parts Dealers . . . . . 44

BMW Wholesale Parts Dealers . . . . . . . . . 43

MontiPower Americas, Inc . . . . . . . . . . . . . 6

Bob Howard PDC. . . . . . . . . . . . . . . . . . . 35

MOPAR Wholesale Parts Dealers . . . . . . . 29

Certified Automotive Parts Association . . . 22

North Freeway Hyundai . . . . . . . . . . . . . . 34

Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 36

Part of the Club . . . . . . . . . . . . . . . . . . . . 31

Christopher’s Dodge World . . . . . . . . . . . 31

Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 31

Classic BMW . . . . . . . . . . . . . . . . . . . . . . 27

Ray Huffines Chevrolet . . . . . . . . . . . . . . 26

Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 46

SATA Dan-Am Company . . . . . . . . . . 13, 19

Covert-Chrysler-Dodge-Jeep-Ram. . . . . . 10

Scoggin-Dickey Parts Center . . . . . . . . . 8-9

in History . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Dallas PDC . . . . . . . . . . . . . . . . . . . . . . . 48

South Pointe Chrysler-Jeep-Dodge . . . . . 20

That’s It! He’s Had It, Part 1 . . . . . . . . . . . . . . . 33

ECS Automotive Concepts . . . . . . . . . . . . 16

Spanesi Americas . . . . . . . . . . . . . . . . . . 14

Top Automotive Industry Stories of the

Emich Chevrolet . . . . . . . . . . . . . . . . . . . 31

Steck Manufacturing Company . . . . . . . . 12

Emich Volkswagen . . . . . . . . . . . . . . . . . 31

Stevinson Toyota West . . . . . . . . . . . . . . . 31

Equalizer Industries, Inc. . . . . . . . . . . . . . 28

Subaru Wholesale Parts Dealers . . . . . . . 38

Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2

Sunmight USA Corporation . . . . . . . . . . . 21

Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 31

Town East Ford . . . . . . . . . . . . . . . . . . . . 32

Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 31

Toyota of Laredo . . . . . . . . . . . . . . . . . . . 30

Flatirons Subaru . . . . . . . . . . . . . . . . . 7, 31

Toyota Wholesale Parts Dealers . . . . . . . . 42

Ford Wholesale Parts Dealers . . . . . . . . . 41

Tsunami Compressed Air Solutions . . . . . 18

Fowler Honda . . . . . . . . . . . . . . . . . . . . . 38

Volkswagen Wholesale Parts Dealers. . . . 38

GM Wholesale Parts Dealers . . . . . . . . . . 39

Young Chevrolet . . . . . . . . . . . . . . . . . . . 32

Insurers’ Willingness to Pay for it – Have Risen . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Rivian Announces $1.3 Billion Funding Round Backed by Amazon and Ford . . . . . . 36 Subaru Recalls 498,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . 40 Tesla Autopilot Under Fire Once More

COLUMNISTS

INDEX OF ADVERTISERS

Settlement Agreement . . . . . . . . . . . . . . . . . 1

Mitchell International has partnered with UpdatePromisePay powered by UpdatePromise to be their Merchant Services Provider for Mitchell Cloud Glass. “We chose UpdatePromise because our two companies are aligned when it comes to consumer experience and technology. The alignment between our two organizations positions our glass technicians to provide customers with simple, seamless payment processing options,” says Mark Bennett, product manager for Mitchell International. UpdatePromise began providing mer-

From US Senator Following Accident . . . . . . . 4 Tesla Becomes the Biggest U.S. Automaker

Decade . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 UNIBODY AutoTech Collision Center Joins CIECA . . . . . . . . . . . . . . . . . . . . . . . . 39 What We Know About US Jobs and Other Details of Fiat Chrysler, PSA Merger . . . . . . . 1 WIN Scholarship Program Opens Applications . . . . . . . . . . . . . . . . . . . . . . . . 47

Honda-Acura Wholesale Parts Dealers. 24-25

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Tesla Autopilot Under Fire Once More From US Senator Following Accident by Joey Klender, Teslarati.com

A United States Senator who has been vocal about his opposition to Tesla’s Autopilot software is doubling down after a driver utilizing the driver-assist feature in his Model 3

rear-ended a police cruiser in Connecticut on the evening of Dec. 7, 2019. Senator Ed Markey of Massachusetts has been vocal regarding his discontent for the alleged “flawed system” Tesla Autopilot offers to drivers. After The Today Show reported the recent accident on its Twitter account, Sen. Markey responded with his thoughts. “Autopilot clearly can’t be allowed to replace drivers on our roads. This tech will continue causing harm until Tesla takes action to fix its flawed system and make sure drivers

are paying attention. That’s why I sent a letter demanding Tesla take action to protect the public,” Markey wrote on Twitter. According to police, the accident happened because the Model 3 driver was checking on his dog at the backseat. Thus, the Tesla driver was unable to use the driver-assist system in an appropriate manner. In late November, Sen. Markey called for Autopilot to be disabled because some drivers were falling asleep behind the wheel while the software was active. It should be noted that Tesla has never encouraged drivers to take their attention off the road when utilizing Autopilot. The company has taken numerous steps to decrease the possibility of this happening by adding safety features to the software. Tesla’s official website emphasizes this point, reminds owners that “while using Autopilot, it is your responsibility to stay alert, keep your hands on the steering wheel at all times, and maintain control of your car.” Tesla has added features to stop the vehicle from driving if it senses the person controlling the car is not paying attention to the road. If the

Driver Assistance Systems May Cause Distracted Driving by David A. Wood, CarComplaints.com

Advanced driver assistance systems (ADAS) may cause drivers to engage in distracted driving, even when using basic systems such as lane-keeping assist and adaptive cruise control. Researchers at the AAA Foundation for Traffic Safety found drivers with experience using driver assistance systems were nearly twice as likely to drive distracted compared to driving without the technology. Researchers at the AAA Foundation and the Virginia Tech Transportation Institute looked at data from one group of drivers who owned vehicles equipped with advanced assist systems. Those drivers had more experience using the systems, but a second group of drivers were provided vehicles equipped with driver assistance systems. Those drivers normally didn’t have access to the systems, indicating they didn’t have as much real-world experience using the technology. During four weeks of testing, researchers found drivers who owned their vehicles were more familiar 4

with the systems and more likely to drive distracted. Drivers in this group were also more likely to play with the radios or use their phones for texting when the driver assistance systems were activated.

Credit: CarComplaints.com

But the drivers with less experience using the systems were more likely to pay attention to the job of driving. A lack of trust and knowledge of the systems likely cause drivers to not rely so much on the technology. But drivers who are comfortable with the systems rely too much on the technology and put too much trust in the systems.

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

person operating the vehicle does not hold the steering wheel for an extended period of time, Autopilot will disable itself. Autosteer will also be

Credit: Facebook, Connecticut State Police

disabled for the remainder of the trip, forcing the driver to operate the vehicle normally. Autopilot is responsible for Tesla’s reputation for being involved in accidents over six and a half times less often than a traditional vehicle. Teslas that are utilizing Autopilot features were involved in an accident every 2,870,000 miles, according to the company’s Q1 report in 2019. This stands in contrast to the national average of one accident for every

Researchers determined these drivers are more likely to focus their eyes and attention on all kinds of things other than driving. AAA and Virginia Tech say the increase in distracted driving behaviors occurs because of an overreliance on the technology, or what can also be called automation complacency. Examples of this can be seen from multiple crashes involving semi-automated driving systems in Tesla vehicles. Even though Tesla’s owner’s manuals warn drivers to keep their focus and eyes on the roads and their hands on the steering wheels, the vehicles crash because drivers don’t pay attention. In December 2019, a Tesla driver allowed his vehicle to slam into a parked police car that had stopped to help a disabled vehicle. Although the investigation continues, the Tesla driver said the driver assistance technology known as Autopilot was engaged, so the driver felt comfortable enough to reach into the back seat to check on his dog. Other Tesla incidents include a

436,000 miles traveled by traditional vehicles without Tesla’s Autopilot software. Tesla has released updates and improvements to its Autopilot and Full Self-Driving software frequently. The company has been firm in the notion that it does not condone the practice of sleeping behind the wheel. Tesla also instructs drivers to always keep their full attention during driving to significantly reduce the possibility of an accident. Ultimately, Autopilot was not to blame in the case of the recent accident in Connecticut because the driver was admittedly checking on his pet in the back seat of the car. The police, for one, ticketed the Model 3 owner for Reckless Driving and Reckless Endangerment, according to the Connecticut State Police Facebook account. Now if only Sen. Markey could see the incident from this perspective. We thank Teslarati.com for reprint permission.

driver who was looking at her cell phone when the car crashed into a firetruck, and a crash of a Tesla SUV into a construction barrier after the vehicle traveled across the highway. Another Tesla SUV crash killed the driver when the vehicle crashed into a concrete barrier that could have been avoided, and then there is the case of another driver who was traveling 80 mph when the vehicle slammed into a disable car. The driver said he believed technology from Tesla would allow him to look at his cell phone while driving. In addition, a 40-year-old Tesla driver lost his life when his vehicle traveled under a truck trailer on a clear Florida day. We thank CarComplaints.com for reprint permission.

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WIN-Sponsored Giving Event in Denver Benefits Foster Kids and Military Families by Chasidy Rae Sisk

On Dec. 11, the Women’s Industry Network (WIN) sponsored a giving event at the Blackbird Public House in Denver, CO. WIN Board Member Kim Frasher explained, “It was held to benefit the foster kids and military families of Denver public

WINners organized and wrapped presents for foster children and military families. Credit: WIN

schools to provide gifts for over 90 children, many of whom have never had Christmas gifts prior to becoming a foster child. We worked once again with the ESSA program of Denver public schools, who were present to help load the gifts and then distribute them to the families.”

WIN members and their teams from work were joined by collision repair program instructors and female students from Lincoln Tech as they sorted, wrapped and loaded gifts “donated by members of the Denver public schools community, Gerber and Axiom employees, collision industry friends, and Blackbird Public House,” Frasher explained. The event was coordinated by Frasher, who works for Axiom Repair, in collaboration with WIN’s Ashley Thompson who attended along with John Smith and members of their team at Gerber Collision. “We had over 25 in attendance and will gain several new members for WIN as a result,” Frasher said. “This charitable cause was chosen because both Gerber and Axiom believe greatly in the vision of WIN, the importance of outreach and service to the community, and the power of teamwork.” Frasher added, “Foster kids especially were chosen because they are often overlooked when it comes to holiday toy drives, and statistically, 40-50% of the foster children without a family network who “age out” of the system are likely to be-

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

come homeless. We want them to know about the collision community and that we are a caring group of individuals within an industry that is full of opportunity. I hope that maybe some of our most vulnerable youth will see hope in auto collision trades and the chance to build a bright future that they might not oth-

The volunteers from Gerber chat as they organize gifts. Credit: WIN

erwise have known about. The holidays have a special way of bringing people together for a greater cause. Something as small as a few Christmas gifts from a stranger can make a huge impact! For more information, visit www .womensindustrynetwork.com.

ProCare Collision Acquires Texas Locations

ProCare Collision announced it is acquiring Alamo Body & Paint, a San Antonio based MSO with three locations in the Central Texas area. The acquisition will allow ProCare Collision to expand its services to new location markets in Boerne, Kerrville, and Schertz, Texas. “We welcome Alamo Body & Paint into our ProCare family. This is an exciting expansion for ProCare,” said ProCare CEO Vince Brock. “Alamo Body & Paint has a great reputation and a long history in the San Antonio area. Randy Barnes, Dave Braun, and Mark Fuller built a great business and will continue innovating with ProCare in the next decade. We are honored to join them in this next chapter of their success story.” ProCare Collision is I-Car Gold Class Certified and currently has shops throughout San Antonio, Austin, the 1-35 corridor, and Houston. The locations will retain its skilled employees and will receive ProCare’s combined resources.

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Continued from Cover

Asbury Automotive Group Acquires Park Place Dealerships

Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., entered into a definitive agreement to acquire certain assets of Park Place Dealerships, based in Dallas, Texas, for $1 billion in an all-cash transaction, excluding vehicle inventory. “Park Place is highly regarded as one of the best operators of luxury stores in the industry,” said David Hult, Asbury’s president and chief executive officer. “We are excited to grow our presence in Austin, Texas, with a Jaguar/Land Rover open point. This acquisition will transform our total portfolio to 50% luxury stores and add approximately $2 billion in expected annualized revenues.” The operating assets acquired include 17 new vehicle franchises, 15 of which are located in the Dallas/Fort Worth market. Included in the 17 franchises is a Jaguar/Land Rover open point in Austin, Texas, that is expected to open late in the first quarter of 2020. Obtained via PR Newswire.

December Events

a way that both the employee and the business prosper. Marchand discussed how to intervene when necessary, options for resolution, and how to get to the core challenges these employees might be facing so shop owners can best implement a resolution.” Next, ASA Colorado hosted “Time, Technicians and Productivity” on Dec. 11 and 12 at Forney Industries in Fort Collins. Marchand instructed this class as well which Massaro described, “Three of your most important assets are time, technicians and productivity. Time is what you sell, it is what your technicians produce, and it is a finite resource. It must be managed, sold, and well taken care of. Technicians are your production. They are where a majority of your money comes from. Without proper management, time is not the asset it should be.” “Of course, technicians come with their own challenges: motivations, skill sets, communication, workmanship, etc. Time and techni-

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

cians must be managed together. Productivity ties the technicians and time together. Because time is such a finite resource, each technician must be as productive as possible if the shop is to make a maximum amount of money,” Marchand explained. “Managing these three assets is not always easy nor intuitive. Shops need to learn to maximize production while managing customer time, technician time, and service counter time. Too often, it’s the simple things that get overlooked that allows a repair shop to grow their customer base.” ASA Colorado’s final educational seminar in December focused on “Mergers and Acquisitions – Strategies to Thrive in the Coming Buyers’ Market.” Michael Herzberg Smith of Herzberg Smith & Co. taught this session at Napa DC in Denver on Dec. 17. He explained, “[This is a] topic that you will ace in increasing measure in the next five15 years. An estimated two-thirds of auto service company-owners are baby boomers, currently 55-73 years old. As they near retirement and put their companies up for sale, experts predict that 80-85% of their compa-

nies will never be purchased.” The association’s annual members’ dinner was held on Dec. 16 at NAPA Distribution Center in Denver. Massaro said, “Our annual membership meeting as a state of the association with Bryan Gossel, our current chairman, and all of the committee chairs reporting on what was accomplished in 2019 and what members can expect in 2020.” At the end of the meeting, members participated in a bike build in support of Hope House, a local “nonprofit that helps young families and battered families get back on their feet,” Massaro stated. “We donated five bikes, and NAPA Auto Parts, our host, matched our donation so we ended up donating a total of ten bikes. It was a really great event.” For more information on ASA Colorado, visit asacolorado.org.

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Gifted Rehabbed Car From Bates Collision Rewards HCDE Head Start Parent Head Start mom Jessica Bouldin is a single parent who juggles three schedules without a car. On Tuesday, Dec. 17 at 10 a.m. that all changed, courtesy of Bates Collison Centers, based in Texas. Bouldin struggles with transportation on many fronts. Her two boys attend school and must be on

Credit: Bates Collision Centers

time. She needs rides to work. Doctors’ appointments are planned well in advance and sometimes must be canceled. Recreation trips to places like the park or pizza parlor are sheer luxury.

In its 21st year, Bates Collision Centers’ “Responsible Parenting Award” continues to award keys to brighter futures with restored vehicles. Car number 37 is reconditioned and ready for the Bouldin family as Jessica earns the “Responsible Parenting Award.” “When you’re car-less in greater Houston, transportation issues are overwhelming,” said HCDE Superintendent James Colbert Jr. “The city spans a 60-mile radius, and public transportation can test your flexibility.” Bates owners Lee and Leila Bates have made the annual giveaway a priority because they recognize the sacrifices parents make in order to provide for their children. “We’re giving a helping hand up for responsible parents with a drive to succeed,” said Leila Bates, vice president. “Responsible parenting is so important and it’s a big job in every family. But it becomes even harder when all the pieces aren’t in place, like transportation.”

Auto Glass Academy is Now a Licensed Educational Facility Auto Glass Academy, the leading source for auto glass removal, replacement and repair training, is excited to announce we are now a licensed education facility accredited by the Texas Workforce Commission. The Auto Glass Academy completed the State of Texas’ examination process and received its license on Nov. 26, 2019. A hands-on approach is critical to understanding the importance of how the body and glass of automobiles work together. The safety of the passengers defines the reason for accurate and precise workmanship. With the Auto Glass Academy, students will receive hands-on training throughout the five-day course with our industry recognized instructors. This not only equips our students with the knowledge of auto glass removal,

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replacement and repair, but provides them with more advanced skills to apply in their careers.

“I’m ecstatic to announce that we are now a licensed Texas education facility,” said Gilbert Gutierrez, global education director for the Auto Glass Academy. “Now that we are licensed in Texas, I’m eager to see the impact the future holds for all of our locations throughout the country.”

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Bouldin, 31, was nominated for the award by the manager at the Head Start Center where her 3-year-old son Jyrie attends. In addition, she wrote an essay which was selected from a group of nominees.

Credit: Bates Collision Centers

Bates employees donate time to work on the cars and help fill them with gifts, and other community members and businesses donate gas, insurance and materials needed to rehab the cars. Lee Bates says both he and Leila are proud of their employees who continue to supply time and resources to families they have yet to meet. The Bates call the work their employees do “a labor of love” as they prepare the car inside and out to look like new.

HCDE Head Start Senior Director Venetia Peacock knows that the Bouldin family desperately needs the car to reach its goals. Bouldin wants to further her career by attending college. She would like to volunteer at her sons’ schools, including the northside Fonwood Head Start Center where Jyrie attends. “We continue to be thankful for our partnership with Bates Collision Centers,” said Peacock. “These cars make a difference in the lives of families who are already committed to making the world a better place for their children.” HCDE Head Start and Early Head Start are no-cost, federally funded programs that prepare children from 6 weeks to 5 years old for success in school. Programs support and promote parent participation in order to build stronger families. Low-income families or families of children with special needs benefit from services. HCDE Head Start serves families residing in east Harris County, providing 15 area centers for 1,250 children and their families.

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New Colorado Charter School Thinks Outside the Classroom by Ed Attanasio

Most of us went to a school where you sat in the classroom most of the day. Every once in a while, you would get a break and they would show you a film and there might be a field trip now and then. But, most of the time you were tethered to your desk in a classroom that was likely crowded, and learning things that didn’t inspire or motivate you. Now, schools are developing programs where there are no formal classes (they call them “projects”) that give their students skills they can use to build successful and productive careers. This fall, the new Automotive Institute of Science and Technology (AIST) will open its doors in Colorado Springs, CO, in a temporary 30,000 sq. ft. facility with an unique approach to teaching. This six-year public charter high school will use the P-TECH model (Pathways in Technology Early College High School), which is designed to provide students the foundation they

need to be successful in the automotive aftermarket industry when they graduate. AIST is initially enrolling 100 students, but its ultimate goal is to have 500 students once they move into its permanent location in 2022.

AIST is the brainchild of former mechanic Anthony and his wife Deb Williams, who is the new school’s principal. Credit: AIST

Students at AIST can choose to pursue either a four or six-year program, starting their freshman year of high school through their second year of college—all publicly funded. At the end of their senior year, students may graduate or continue taking concurrent enrollment classes at AIST for two additional years. Stu-

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

dents will have the opportunity to graduate with an associate degree or equivalent and participate in internships at no cost to the student. The school is the brainchild of Anthony Williams, a former mechanic and auto tech instructor and its principal Deb Williams, Anthony’s wife. Together with an impressive board that includes names such as Senior Director of Customer Training at Advance Auto Parts Chris Chesney and well-known motorcycle and bicycle designer Mike Vidovich, they are ready to change the world one student at a time. The Colorado Academic Standard will be integrated with Career Technical Education (CTE) standards and discovered during a series of engaging projects related to various aspects of the automotive industry, including collision repair. During the first two years, students can experience the various pathways offered at AIST. At the beginning of their junior year, they will choose a pathway to focus on either engineering, business, robotics, or automotive technology.

The goal at AIST is to create a learning environment that offers students the freedom to explore and grow without being micromanaged or stuck in a classroom. In the process, auto tech students will earn ASE certifications with work experience, a mastery of skills prescribed by the industry (R2GT), employment opportunities with aftermarket repair shops, body shops, parts distribution/sales and automotive manufacturers, according to Williams. “At the beginning, they can undertake two to three projects per semester, so that they can determine their pathways,” he said. “Our whole approach is for the students to participate as opposed to simply observing. We want to encourage them to try new things and not be afraid of challenges along the way.” Williams admitted he was not a stellar student, even though he was passionate about the things he loved. “I would show up for the tests and pass rather easily,” he said. “My entire life has been about reading as much as I could and learning by

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doing things myself. The classroom was not ideal for me and I hated high school because they taught us out of textbooks primarily.” With years of experience teaching at the elementary level, Williams’s wife Deb taught her husband a lot about teaching techniques and how to do a better job as an auto tech instructor. Anthony integrated Debs teaching strategies into the classroom and was incredibly successful as a teacher. The practice of integrating core content and automotive technology was well received by other teachers Williams partnered with. The idea to build this practice into an entire school model came from a dream that Williams had in 2015. “After this vivid dream of how education looked like a fully interactive experience for students, I woke up my pregnant wife and immediately told her about the dream,” he said. “She told me to go back to sleep and we will talk about this later. “We saw that there was a definite disconnect between the student and the teacher and that taking a hands-on approach was an easier way to communicate abstract ideas.” One of the projects that students

at AIST can enroll in is called “CSI Consultant.” It focuses on core subjects like calculus, physics and ethics while students act as CSI Consultants to determine possible causes of a restaged accident. They will be responsible for analyzing the crime scene, determining who is at fault, and all of the components that influenced the accident. Students must also investigate the impact of accidents on body systems both physically and psychologically. Finally, they will participate in ethical conversations regarding legislation for automotive manufacturers and roadways. Williams is already working with body and mechanical shops in his area to form partnerships and create mutually beneficial internships for his 13 and 14-year students, he said. “From my experience, many internships are useless and a general waste of time. Making coffee and changing oil does not prepare them for a career in the field. So, we are developing relationships with shops where they will be accountable to follow a scope and sequence similar to the classroom. We are looking for shops that want to invest in their employees as

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

well as in education. One aspect of the internship is that shops will be required to send their mentor to shadow a teacher and learn some teaching techniques that will be valuable for the shop/store training any new hire.” Williams wants young people with inquisitive minds and a hunger for knowledge. “We want them to know how things work, but we always want them to know why as well,” Williams said. “When we were young children, we always asked why, but after a while our parents or teachers discouraged all the questions. We want our students to ask why and search out the answers instead of spoon-feeding them information to regurgitate later.” With a lack of good technicians in the collision repair industry, Williams is certain it’s the right time and place to start a school like AIST. “There is a movement within education toward career training versus traditional instruction and schools are gravitating more to teaching STEM subjects (Science, Technology, Engineering, and Mathematics) now. If we can create skilled and properly trained techs, we can help both our students and the industry as a whole.”

Registration to the 2020 HD Repair Forum is Now Open Throughout the two days, there will be extensive networking opportunities allowing shop owners, insurers, appraisers, OEMs, paint manufacturers, information providers and equipment and service companies to build relationships, conduct business, and solve problems. Attendees of this event will also gain valuable insight into industry trends allowing better business decisions today and in the future. Afternoon break-out sessions provide attendees opportunity to choose classes that best address their individual or business needs. These sessions are geared towards executives, shop owners, managers, and company leaders. To register for early bird rates and gain unique access to equipment suppliers, break-out sessions, and networking opportunities dedicated to the commercial vehicle collision repair industry call 281819-2332 or email Jennie Lenk at jenniel@hdrepairforum.com.

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HD Repair Forum’s 2020 Event Designed to Prepare Industry Leaders for Change and Growth The 2020 HD Repair Forum is in full swing and the momentum continues to build for the only gathering solely dedicated to the heavy-duty collision repair indus-

Credit: HD Repair Forum

try. The 3rd edition of this event will take place on March 24-25 in Fort Worth, Texas. The two-day event will include unique educational seminars and training classes designed to benefit all industry stakeholders. Early bird registration rates are available for a limited time at www

.hdrepairforum.com/register. As in year’s past, the HD Repair Forum advisory board consists of heavy-duty collision repair facility owners and managers and are the driving force behind the development of the program and the classes offered. Topics being covered at this year’s event will include: • Advanced driver assistance systems; • Scanning; • Calibrations; • Tools and software for collision repairers; • Hiring, recruiting, and retaining talent; • Sales, marketing, and CSI; and • Acquisitions, raising capital, and a lot more. Register now to guarantee your attendance, participation, and opportunity to network with the brightest minds in the heavy-duty collision repair industry.

Houston-Based Foundation Launches Car Donation Program for Single Moms Christian Brothers Automotive Foundation, the corporate foundation started by Christian Brothers Automotive, announced the launch of a new philanthropic en-

deavor that will provide single moms in need of reliable transportation with vehicles. The new 501(c)3 organization is called The Hub Garage. The program will accept vehicle donations that will be repaired by Christian Brothers Automotive service technicians and given to single moms in need

AUTOBODY

across the greater Houston area. “There are around 24,000 single moms living below the poverty level in Houston,” said Jonathan Carr, president of Christian Brothers Automotive Foundation. “We want to leverage what we’re already good at to help people, and if we can lower that number by even a few families, we’ll have made a huge step in the right direction.” The Hub Garage will work with community partners like the Ace Scholarship, which provides local kids a chance to find better rates and scholarship opportunities into the competitive private schools in Houston. “We want to partner with excellent nonprofits, and Ace Scholarship exemplifies that commitment,” added Carr. “In the future, we want to expand this to all 27 of our major markets. We want to grow the program’s impact as fast as we can get cars donated.” Obtained via Franchising.com.

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Continued from Cover

Geico Fraud Lawsuit

ning Capital, participated in “fraudulent acts” which included billing auto insurers for windshield replacements that “never took place.” Case Background In 2019, Geico originally sought termination of what it alleged was an ongoing fraudulent scheme. The company aimed to recover more than $100,000 that it claimed the defendants improperly obtained from the insurance company through hundreds of non-reimbursable insurance claims. Geico aimed to recover financial damages under the civil racketeer influenced and corrupt organizations act (RICO) statutes. According to Geico’s complaint, it should be reimbursed for windshield replacement services and the installation and use of windshield parts – including mouldings, clips, and fasteners – attendant to the windshield replacements. Geico previously stated the work the defendants claimed to have done

regarding auto glass claims were “never performed, submitted through 808 Auto Glass, which never provided the services and parts, as well as never obtained assignments of insurance benefits from the insureds.” “A&E Auto Glass was used by E. Solheim and A. Solheim to secretly provide the auto glass services and parts to Geico’s insureds, and conspired with the other defendants. Lightning Capital was organized in Arizona on or about March 8, 2010, had Minard as its managing member, and was used by the defendants to facilitate the use of 808 Auto Glass as a vehicle to submit fraudulent billing,” a portion of the complaint reads. Currently, both sides have filed a joint motion to settle this suit and have 30 days to finalize their settlement before the final ruling is issued. We thank glassBYTEs.com for reprint permission.

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Shop Secrets and Strategies with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Industry “Disrupter” Launches Collision Industry Book & Patent-Pending Test-Drive Technology Many in the collision repair industry and implemented leading-edge techare familiar with Frank Terlep, an nology for the automotive, collision experienced executive, entrepreneur, repair and claims industries. Autobody author and self-proclaimed “dis- News recently sat down with Terlep to rupter” of the automotive industry. In find out what prompted him to write December 2019, Terlep launched his his book and learn more about the new book, “Auto Industry Disruption, patent-pending test-drive technology Who and What is Being Disrupted he and his team are launching. and What to Do About It!” How did you get in“I started disrupting volved in the collithe auto aftermarket in the sion repair industry? mid-1980s when I raised $100,000 from an angel inBefore attending univestor to develop a software versity in the late application for the automo1970s, I was in the United tive aftermarket,” said TerStates Army. A friend of lep. “It was one of the first mine was attending Southsoftware applications of its Frank Terlep launched his new ern Illinois University (SIU) kind that helped automotive book in 2019: and often sent me pictures aftermarket companies man“Auto Industry from the school. I always age their businesses using Disruption, Who liked cars and SIU was one of computer software.” and What is Being Since then, Terlep has Disrupted and What the only universities at that to Do About It!” time offering a four-year dedesigned, developed, sold

Q: A:

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gree in automotive technology, so I enrolled. Although I originally planned to be a civil engineer, I earned my degree in automotive management and technology in 1980. After finishing school, I worked as a service advisor at a Chevy dealership. Throughout my 40-year career, I’ve spent time as an auto mechanic, service manager, shop owner, salesperson, software designer, chief technology officer, senior executive, entrepreneur, author, educator, industry volunteer and disrupter. When the Apple IIe came out in 1983, I got hooked on computers and began selling automotive diagnostic equipment to repair vehicles. I launched a company and built my first software after raising money from an angel investor. I eventually sold that business, but the experience started my long history as an entre-

preneur. From 1999 – 2001, I helped raise tens of millions of dollars from venture capitalists on Sand Hill Road in Silicon Valley, CA, to design and develop one of the automotive industry’s first online parts procurement platforms for the collision industry. For the next 16 years, I built my second and third companies, Summit Software Solutions and Summit eMarketing Sherpas, developing software to help the automotive businesses market, manage, and operate their businesses. At the end of 2016, I sold my software companies and joined asTech as their chief technology officer to help build their online and mobile app platform. I recently left asTech after finishing that project to write my book and start a new company—Auto Techcelerators, LLC.

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What prompted you to write “Auto Industry Disruption … Who and What is Being Disrupted and What to Do About It!”?

I wrote my first book for the collision industry in 2007. It was called “The Digi-Lean Collision Repair System, Combining Lean Thinking, Processes, and Digital Tools to ‘Find’ $10,000 or More per Month in Your Collision Repair Business.” The concept was how to use digital technology to implement lean processes in your business. I’ve always been intrigued by software and computers and how to dramatically improve business performance with the right processes. During the two-and-a-half years I worked at asTech, I was dealing with a lot of vehicle technology. I started to do a ton of research on what was coming down the pike and realized that the whole industry is going to change … every aspect of it. I looked into what companies and car manufacturers are doing in response. That’s what prompted me to write the book because I was so interested in the changes expected to happen. Technology is going to be rampant across all industries and everyone is going to be affected, not just the collision repair industry. The book is written for anybody in the automotive industry, including CEOs, dealer owners, shop owners, shop businesses, and those in manufacturing.

Without giving away too much, what is the book’s main takeaway?

The message I want readers to walk away with is if you are in the business, whether you are an employee, manager or owner, you are going to experience disruption of some type. My book is the CliffsNotes version of some of the things that businesses should consider addressing to handle the disruption that is coming their way.

Can you tell us about the new company you started—Autotechcelerators?

I’ve worked with a lot of shops over my career, especially during the last few years. One of the things I kept hearing over and over

again is that cars are not only becoming harder to repair, but they require calibrations. I also kept hearing that taking a car out for a test-drive is not the same as it used to be. Technicians and shop owners would tell me, “Frank, you can’t just take the car out and drive it around the block and make sure the car goes straight and there is no noise anymore.” After I left asTech, I filed a patent on vehicle repair test-drive processes and technologies. During the upcoming Collision Industry Conference (CIC) in Palm Springs,

Frank Terlep, executive, entrepreneur, author and self-proclaimed “disrupter” of the automotive industry

CA, my team and I will be launching a solution for performing, managing and documenting test-drives. The patent-pending product and service will change the way test-drives, road tests and dynamic calibrations are performed, managed and documented forever. The Test Drive CoPilot event will be held on Wednesday, Jan. 15, at 5 p.m. at the Palm Springs Hilton in California. To R.S.V.P for the event, visit https://www.testdrive copilot.com/launch-party-rsvp.

Q: A:

What can attendees expect to see at the event?

We’re going to introduce new technologies and processes to those in attendance that will allow businesses to fully document every test-drive, road test or dynamic calibration as well as generate detailed reimbursement documentation. They will also provide employees with the detailed test-drive recommendations, track and manage costs, implement quality controls, and create documentation to reduce an organization’s liability. If you think about it, the only place left today that isn’t being measured, managed or documented is the test-drive. It’s the only time a vehicle typically leaves a shop during or after a repair. The idea was to create something simple and inexpensive for a shop to quality control

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

test-drives, ensure they are being done according to OEM recommendations and get reimbursed for their work processes.

What are some of the changes you predict will occur in the automotive industry?

One of the major things I see coming is that I don’t think a typical independent collision repairer is going to be able to be a generalist anymore. The growing complexity of the vehicles is going to force them to become part of something bigger and become specialized. The vehicles are too complicated to repair. I also think the rise of remote technician services is going to be huge. I say that because there is a shortage of people joining the industry, as most of us already know. With that being the case, cars are becoming more complicated. I believe that you’re going to see technicians from other countries helping us diagnosis and repair cars remotely over the Internet. That’s going to be a big opportunity and the industry itself is going to shrink. We’ve been saying this for years.

You can look at any service business industry, for example, in terms of a pyramid organizational structure. At the top of the pyramid, you have the best and the biggest companies, which is a small percentage. At the bottom, you have a larger number, but they are usually not the best and revenue is small. A typical service business is in the middle. What happens is a business either moves up or down and eventually, there is no middle and the pyramid becomes an hourglass shape. I think that’s happening in our industry as well. I cover these ideas in more depth in the book. I am scheduled to talk about five major disruptions the collision industry will face in 2020 and beyond during a Dave Luehr’s Elite Body Shop Academy webinar on Thursday, Jan. 23 at 1 p.m. CST. To register for the free webinar, visit https://events.genndi.com/channel /Jan2020EWS. “Auto Industry Disruption, Who and What is Being Disrupted and What to Do About It” is published by BookBaby and is available from the BookBaby store as well as Amazon.com in paperback and ebook versions.

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Industry Veteran Shares Insight About Future of Collision Repair Industry by Stacey Phillips

During a recent VeriFacts Guild 21 webinar, industry veteran James Spears talked about the future of the collision repair industry. Spears, an insurance and automotive consultant and founder of Spears Consultant Group, talked about the largest autonomous and connected car testing facility in the country, the impact of artificial intelligence (AI) and the OEMs’ involvement in First Notice of Loss (FNOL) reporting. Throughout his 30-year career, Spears has assisted the top ten property and casualty providers across the country. His experience includes leading the USAA Auto Experience and the USAA Global Auto Physical Damage operations and strategy. Prior to that, he headed the Strategic Initiatives team at Farmers Insurance and worked for Nationwide Insurance. Currently, he assists the American Center for Mobility as well as a number of other clients and is a member of the Board of Trustees for the Collision Repair Education Founda-

tion (CREF). The following is a summary of Spears’ comments during the webinar, which was facilitated by professional speaker and consultant George Avery. Avery: As an advisor and consultant for the American Center for Mobil-

and connected car testing facility in the country. Located near the Detroit airport, the center is built on more than 500 acres at the Willow Run site in Southeast Michigan. This is where bombers were built for WWII. Hundreds of millions of dollars have been put into building the tremendous facility. Supporters include the State of

The American Center for Mobility (ACM) is the largest autonomous and connected car testing facility in the country. Credit: Guild 21

ity, can you tell us about the organization? Spears: The American Center for Mobility (ACM) was established about 18 months ago. It is the largest and most sophisticated autonomous

Michigan, the University of Michigan, Michigan Department of Transportation, Subaru, Hyundai, Ford, Toyota, Intertek and Microsoft. The mission of the organization is to enable the rapid, safe development and deployment of future trans-

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portation systems by offering leading programs in testing, standards, and education as a national technology innovation center. The facility focuses on testing vehicles with Advanced Driver-Assistance Systems (ADAS). You might be surprised to hear that these technologies perform differently on models. They do not all stop the same or act the same. A lot of consumers believe ADAS technologies are all equal, but some far outshine others. We’re very fortunate to have the Insurance Institute for Highway Safety (IIHS) provide star safety ratings; however, there are no such ratings when it comes to ADAS platforms. The two organizations have different focuses. The American Center for Mobility is where manufacturers and tier one, two and three parts suppliers test their equipment during the development stage. In contrast, IIHS conducts testing once the equipment is already in vehicles. I think our industry needs to align with the American Center for

Mobility. We currently don’t have any collision repairers or insurance companies that are represented, and they can really have an impact on the vehicles before they go to market. I encourage collision repairers to reach out for more information: https://www.acmwillowrun.org/.

Avery: How is the use of Artificial Intelligence (AI) impacting the collision repair industry?

Spears: We’re now seeing AI being used in a number of ways, such as the appraisal process. I hope we’ll continue to see a shift using AI technology in the blueprinting of appraisals. However, I’m concerned about how claims are adjusted and protecting the consumer. When breaking the vehicle down, we need to make sure we cover all the components that are important after an accident and ensure the customer’s car is repaired properly. We might also start using AI with the parts ordering process so shops can order major components quickly. I’m fortunate to work with a company that uses AI to generate prospects over social media. I rec-

ommend that shops take a closer look at using AI in their businesses and reach out to companies that specialize in this area to help find customers in an unconventional fashion. I don’t believe we’ll be 100 percent reliant on AI software in the future; however, AI can expedite the industry.

Avery: What are some of your predictions in terms of OEM involvement in First Notice of Loss (FNOL) reporting? Spears: There is an absolute battle in positioning going on right now in regard to the way that the models of vehicle ownership will change over time, particularly as the middle class abort their own cars or a 7-8-year loan becomes the norm. In cases such as these, people will never own their vehicles, because they are not paying them off but rolling them into the next loan. This lays the groundwork for manufacturers to keep connectivity to the automobile. When I first came into the industry, the average age of a car was 5-6 years old. Today, vehicles are an

average of 9-11 years old. It’s not uncommon for a loan to be stretched out that long. When you take a look at the new Car-Net mobile app Volkswagen recently debuted, the information needs to stay active as long as the person is paying for a subscription. If there is a collision and the airbags deploy, the Car-Net service will report if there is an accident. Certified shops that focus on having the right tooling, facility and training, are going to do much better than facilities that don’t. I believe we’ll see OEMs own FNOL in the future. They will be able to call a carrier to report an accident, let them know which store it was towed to and find out if the carrier wants to have someone look at the vehicle or if the OEM should do the appraisal. That’s going to give them time to break the car down and not just do a rudimentary digital evaluation. They will be able to have a much more processed, highly detailed blueprint-type of appraisal… and customers won’t know the difference. Companies such as Enterprise, with its Entegral program, are starting to get into post-accident process-

ing. Consumers could very well be a fan of that program, being able to have a replacement car readily available. By offering alternative transportation and being able to meet that immediate need, it will have higher payoffs for carriers.

Avery: Will it become more common for vehicle owners to allocate a repairer of choice?

Spears: An OEM could open up the possibility for customer choice and we may very well see owners being able to assign themselves to a repair shop, particularly through a manufacturers network, like Volkswagen’s Car-Net mobile app or GM’s OnStar system. However, customer choice might lie beyond the customer’s geography in some cases. For example, if a consumer has an Audi or a complicated Volkswagen to be repaired and there isn’t a certified shop nearby, the car will have to be towed to a certified shop outside of the area the carrier offers. For more information, email Spears at James.spears@gmail.com.

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Would Fiat Chrysler retain its headquarters in Auburn Hills? The current Italian American automaker is incorporated in the Netherlands, headquartered in London and retains major operations in Auburn Hills and Turin, Italy, the home of the Fiat brand. Likewise, the combination of FCA and PSA would be domiciled in the Netherlands and continue to have operational headquarters in Auburn Hills, Paris and Turin.

combination will benefit its members and it is looking forward to hearing more details. The labor contract that UAW members ratified a week ago with FCA continues to include job security provisions in the instances of a merger, a union spokesman previously said. FCA’s previously announced investments, including the construction of a new assembly plant in Detroit, will not be affected. As for salaried employees, 20% of the expected $4.1 billion in cost savings is expected from the combination will result from redundancies in marketing, information technology, logistics and other areas, the companies said. But Groupe PSA does not have a retail presence in North America. Most of the cuts are expected to occur in Europe where there is overlap.

Are Fiat Chrysler employees’ jobs in jeopardy? Executives repeated statements from October that there would be no plant closures or loss of manufacturing jobs as a result of the transaction. United Auto Workers Vice President Cindy Estrada said the union hopes the

What does this mean for Fiat Chrysler buyers? The combined company is expected to maintain all 13 brands that Fiat Chrysler and PSA currently operate. The companies, however, plan to shrink the number of vehicle platforms they operate. Two platforms

Continued from Cover

now say they are at least negotiating to be paid for vehicle scans, and 88% say they are being paid regularly when they do. “There are very few shops not seeking to be paid, particularly for post-repair scanning.” said industry trainer and consultant Mike Anderson of Collision Advice. “This is different from some of the other ‘not-included’ procedures where a significant percentage of shops aren’t getting paid because they’re not seeking to be paid. But the industry also needs to keep in mind that an insurer refusing to pay for a scan does not remove a shop’s liability for not conducting one.” The first of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” refinish operations, is open now through the end of January at: www.surveymonkey .com/r/JHPCT8B. To find the results of previous survey, please visit crashnetwork .com/collisionadvice.

provided to investors refers to the entity colloquially as “DutchCo,” but Fiat Chrysler representatives assured that is not the official title.

Vehicle Scanning

US Jobs

Collision Works Receives Top Workplaces 2019 Award Collision Works, with a location in Shawnee, OK, and over 30 other locations, has been awarded a Top Workplaces 2019 honor by The Oklahoman.

“We are proud to be honored with this award,” said Barry Hadlock, president of Collision Works. “It means a lot to hear positive feedback from our team members, knowing they enjoy coming to work every day.” Collision Works opened its first Oklahoma location in Del City in 2002. It has since expanded

throughout the state of Oklahoma and Kansas with 31 locations and hundreds of employees. Collision Works provides a variety of services to assist customers after an accident or with any other repairs their vehicle needs. Paint and body, detailing, paintless dent repair, glass repair and replacement, heavy duty truck repair, weather damage repair and complete auto repair are included in their list of services. “The Top Workplaces award is about much more than recognition and celebration,” said Eric Rubino, CEO of Energage. “Our research also shows that these organizations achieve higher referral rates, lower employee turnover and double the employee engagement levels. It just goes to show that being intentional about culture delivers bottom-line results.” Obtained via The Shawnee News-Star.

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are expected to be the basis twothirds of the combined entity’s run for small and compact/mid-size vehicles. The convergence of these platforms could been seen starting in 20 months following the deal’s closure, the executives said. U.S. consumers could see the implementation of PSA’s technology and electrification platform in Fiat Chrysler vehicles, Manley said. The combination perhaps could speed the introduction of brands like Peugeot, Citroën, Opel and Vauxhall into North America. In 2016, PSA had established a ten-year goal to reenter the U.S. retail market. “We see the strength of FCA in North America,” Tavares said. “We have 12 months ahead of us to think what we would do after closing. So far it is premature. This is something that we will have to consider.” We thank The Detroit News for reprint permission.

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Automotive Technology Department Head Stresses Life Skills First by Ed Attanasio

Collision repair facilities today demand that technicians are well-trained and know how to repair sophisticated automobiles using modern techniques. Dayne Hosier, assistant professor at Vincennes University in Vincennes, IN, aims to do just that, but maybe even more importantly, he also strives to instill foundational life skills in his students as they progress through their technical training. He stresses soft skills like communication, punctuality, accountability, thoroughness, and an eye for detail in every class he teaches.

Student Derek White (left) and Dayne Hosier, assistant auto tech professor at Vincennes University, working at the basics. Credit: Ed Attanasio

As a 2011 Vincennes University collision repair graduate himself, Hosier prides himself in providing education and instruction to the next generation of auto body technicians. He knows that imparting the basics is essential, but it’s only the beginning. “As an educator, I feel that I have an obligation to make my students as employable as possible,” he said. “We can show students how to apply fillers, paint, weld sheet metal, estimate cost, and blueprint vehicle repair, but can we also condition our students’ attitudes? How about their vision of a project when it’s in pieces or maybe their perseverance when struggling to resolve a problem that has a complicated solution?” Being a collision repair professor offers up many challenges, Hosier said. “Students can be distracted by all the communication opportunities offered by the cell phones they carry. Although the phones can be a distraction at times, they can also be a handy tool in the collision repair industry. They are great for documenting damage via pictures and linking the students to service information needed. I also teach students how they need to understand 30

flat rate hours and what it means to be organized and efficient in order to turn more hours. This is very important later in the students’ careers when they are supporting their families and not just themselves.” Hosier is always looking down the road and works continuously to set up his students for long and rewarding careers. “I want my graduates to enjoy what they do, make a comfortable living, and enjoy time with their families. Other challenges can be direction and motivation. Not every student wants to be a do-it-all technician. Some students are dead set on being only a painter; some are interested in management, and others gravitate toward estimating. I can’t decide for them what their career path will be, but I can provide the instruction and open pathways to help students make an informed decision about their opportunities. It’s a great time to enter the collision repair industry for several reasons, Hosier said. “Having so many available career paths in collision repair keeps me on my toes, in order to make sure that all my students find value in what I teach and get exposure to as many aspects of collision repair in the time we have together. I help students find specialty training programs after graduation, bachelor’s degree opportunities, certification training, internships, career networking events, and so much more.”

Collision in Evansville, IN, and graduated VU with his Associate Degree while maintaining a 4.0 GPA. Three other students, Zac Lewis, Landon Vannatta, and Jose Enriquez continued their education in the BMW STEP Body and Paint program, which only accepts 20 students per year nationwide. Lewis and Vannatta also went into a secondyear leadership role for BMW.

Hosier’s classes focus on employability and stress life skills at Vincennes. Credit: Ed Attanasio

These students are some of the top performers out of Hosier’s program, but others find success in many other aspects of the collision repair industry or other careers, he said. “I would say 40%-50% of my

students like these gentlemen are allin and passionate about making a career out of their training with me. They will get hired at shops, and many of them will have fantastic careers. 50% of them are interested, but not 100% dedicated to making a career out of it, and they may or may not enter the collision repair industry directly. A small percentage of my students find that the collision repair industry is not what they had envisioned and decided to pursue other career paths, and that is okay.” In every class he teaches, Hosier emphasizes the bigger picture and the responsibility that’s associated with collision repair. “Hands-on training that is put into practice will make students money,” he said. “Facebook, Twitter, Snapchat, and texting are all distractions in our industry. Those are the types of distractions that can lead to poor repair quality, employee turnover, and substandard customer service. We teach our students to be responsible and technically proficient and what it See Life Skills First, Page 36

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Hosier, at age 19, studying collision repair at Vincennes University. Credit: Ed Attanasio

A few notable examples that Hosier provided are students like Jared Whitaker, a former Southern Indiana Career and Technical Center graduate, who completed Vincennes University (VU) dual credit through the career center and entered its program as a second-year student. His willingness to learn and persevere earned him the Indiana Vocational and Technical Education Award for Excellence, an internship at Gerber

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Reflecting on My Journey in the Collision Repair Industry I often talk about the need to look ahead, but in recent weeks, I found myself reflecting. My desire to reflect started forming during SEMA in Las Vegas. SEMA is a great opportunity to catch up with those in the industry who we may not have seen in some time. I turned 57 that week, and certainly most of us get reflective as we get older. There is a book that summarizes my journey well called, “The Canterbury Tales” by Geoffrey Chaucer. The narrator of the story is on a pilgrimage, and as he walks, he is joined by dozens of others – a knight, a squire, a weaver, a monk, a cook, a merchant – all of whom enrich and influence his journey. “The Canterbury Tales” resembles how I’ve been feeling as I reflect on how appreciative I am for those whom I have encountered on my journey in this industry. There’s

been those who have led the way ahead of me, folks like Jeff Hendler, Hank Nunn, Sheila Loftus, Mark Claypool, Elainna Sachire and so many others. These leaders have encouraged me along the way, and sometimes called me out when I wasn’t doing the smartest thing or when I let my mouth override my brain. There are amazing young leaders in the industry who keep me motivated, such as: Will Latuff, Tiffany Driggers, Tracy Dombrowski, Danny Panduro, Josh Kuehn, Jake Rodenroth and Cody Rinaudo. I’m grateful for the people who have gone ahead of me, the people with me on my journey, and those who are traveling with me and who will be the future leaders of this great industry. As I’ve been reflecting, I was thinking about one of my mentors, Jerry Dalton. Dalton died 20 years

ago, but he was one of the founders of Craftsman Auto Body in northern Virginia. I remember one time when I was young, I walked into a Washington Metropolitan Auto Body Association meeting feeling frustrated.

Credit: Mike Anderson

I had a bad day, and I was griping to Jerry about one of my employees. He started laughing, and I told him I didn’t really think it was funny. “I’m not laughing at you,” he assured me. “You’re just kind of where I used to be.” I asked him what he meant. He

said, “Mike, you need to realize if other people had the same passion and energy as you do, they wouldn’t be working for you. They’d own their own business.” That was an eye-opener for me. I realized we have a right to expect that people will show up for work on time and do a good job; but, not everyone has the same level of passion. There are many people I’ve been blessed to meet on that journey who are every bit as passionate about this industry as I am. They’ve enriched my life, and I’m so grateful. Is there someone who has stood by you in this industry, past or present, who you should reach out to and thank? Don’t delay. Do it today. I am thankful for you – for reading my articles, for showing up to my seminars, and most importantly, for doing the right thing every day to ensure safe and proper repairs.

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That’s It! He’s Had It, Part 1 by Gary Ledoux

Social media has changed the way we interact with each other, with our peers, and with the world. The originators of Facebook thought it’d be fun to share a good experience you had at your favorite restaurant or share a picture of your little leaguer hitting the winning run, but it’s gone beyond that. Monitoring the various collisionrelated Facebook pages, hardly a week goes by when some shop owner doesn’t create a post, lamenting their seemingly hopeless situation, dealing with insurance companies, dealing with customers that want everything “thrown-in,” including the deductible, and trying to find and keep good help. The post usually ends with “That’s it. I’ve had it!” Then, the conversation usually goes like this: “I could close my shop, but then what would I do … work as a line tech for another shop? I’m still in my 40’s but the challenges of body work have wrecked my back and standing on concrete all

day has wrecked my legs. This is the only job I’ve known since I was 16. What do I do now?” The answer is – there’s plenty to do. Being a shop owner, you have experience and knowledge that is transferable to other corners of the collision repair industry. Stop and think of all the companies that produce products and services that support your efforts as a collision repair shop, and all the managers, representatives, and other workers they employ. Your experience as a shop owner (or technician, or painter) is invaluable to them. Here are a few to consider:

HD Truck Repair: Consider the heavy truck and specialty vehicle industry if you enjoy working with your hands and seeing the physical results of your efforts. This includes repairing tractor-trailer rigs or specialty vehicles like fire trucks or ambulances. The work is no less strenuous than working on automobiles, but insurance adjusters rarely question an estimate. The labor rate runs $100 to

$150 per hour, and with a guesstimated 2,000 heavy truck shops in the country, there is less competition as opposed to the 35,000 auto collision shops. Insurance Adjuster: Yes, it almost feels blasphemous to work in a corner of the industry you have cursed since day one. How many times have you said, “I wish these guys knew something so I didn’t have to train them!” Now, you can be that rare adjuster that truly knows the business and can relate to the shops. MSO Field Manager: Depending on the MSO, it might be necessary to manage anywhere from six to eight shop locations to hundreds of locations. This requires coordination, manpower, and an intricate knowledge of the industry. A former shop owner or manager could be invaluable in any number of positions in an organization as such. Equipment Manufacturer / Distributor: Tim Morgan, a former body

shop owner, and former training manager for another equipment maker, and trainer for a technical college, is now the chief operating officer for Spanesi Equipment for North America. Asked about the role a former shop owner could play in his organization, Morgan noted, “We, and our independent distributors, need people to sell, install, demonstrate and train people on the use of Spanesi equipment. We sell everything needed to outfit a shop including pulling and measuring equipment, welding equipment, spray booths and so forth. Former shop owners, managers and techs make excellent candidates for this kind of work. I have hired several since 2012 … and wish I could find a few more.” Estimating Company: What better person to conduct training or serve as a field rep for an estimating system than someone who has worked, probably with all the different systems, and different generations of systems, than a former shop owner or manager? See That’s It!, Page 40

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Industry Insight with John Yoswick

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

MSOs Hear Positive Outlook for 2020, Discuss Mixed Impact of Photo Estimating A positive forecast for the collision repair industry in 2020 was among the presentations at the eighth annual “MSO Symposium” held in Las Vegas during SEMA. Susanna Gotsch, director of industry analysis for CCC Information Services, said with new-car sales in 2019 again at $17 million for the fifth year in a row (a first), and scrappage rates at historic lows, a growing vehicle population on the roads should mean “we will see the overall number of vehicles in accidents grow.”

Susanna Gotsch of CCC Information Services sees other factors offsetting some of the downward impact ADAS has on accident frequency in the short term, and collision repair costs rising healthily this year. Credit: John Yoswick

Advanced driver assistance systems (ADAS) will likely continue to have a modest impact on that, she acknowledged. About 56 percent of 2019 model year vehicles include frontal crash warning with emergency braking (up from 29 percent for model year 2017), meaning an estimated 60 million vehicles on U.S. roads have that technology. That’s only about 20 percent of the total vehicle population, but a much higher percentage of vehicles that are 3years-old or newer, which have previously accounted for a third of the estimates CCC processes. Gotsch calculates if emergency braking cuts those vehicles’ likelihood of a front-to-rear collision by 50 percent, that technology is reducing overall frequency between 2 percent and 5 percent. There’s some potential offset; however, vehicles with emergency braking have a 20 34

percent higher frequency of being rear-ended by another vehicle when the emergency braking kicks in. That’s the upside for collision repairers during this period when there are still plenty of vehicles without much in the way of ADAS. In the short run, she said, the industry can expect to see slightly fewer but more complex and expensive repairs. “We expect repair costs to accelerate about 5 percent [in 2020] on average, versus about 3 percent growth two or three years ago,” she said. As more driver assistance systems are introduced and work better in more situations, there should be more of an impact on frequency and severity, she said. “Even if the vehicle doesn’t avoid the accident, [emergency braking] may at least minimally reduce the damage incurred if the speed of the vehicle is mitigated before impact,” she added. But Gotsch also echoed those who have said autonomous vehicles aren’t going to put collision repairers’ livelihoods at stake any time soon. She cited Apple co-founder Steve Wozniak, now age 69, who said last fall that fully self-driving vehicles likely won’t be ready for the real world “in my lifetime.” In the meantime, Gotsch said, automakers are looking for new ways to generate revenue from vehicles such as in-console ads or announcements promoting (while potentially distracting drivers) easily-accessible gas stations or doughnut shops the driver and vehicle are approaching. “So despite all the talk about vehicle autonomy changing our landscape and eliminating the need for personal auto insurance and vehicle repairs in the future, I think most of us, as I look around the room, are probably pretty safe with a career in this industry, at least until we retire,” Gotsch said.

Virtual Claims Handling Will “Normalize” Repair Costs In another presentation during the

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

MSO Symposium, Allstate’s Clint Marlow said he believes “virtual inspections” will continue to become more common. “It costs an awful lot of money to have staff that gets in a car in the morning and travels from repair facility to repair facility,” Marlow said. “From the studies we did, they spent half that time driving, sitting in traffic, etc.” He said cutting back on staffing costs is part of what’s driving the push for virtual inspections, but he also said more and more consumers are finding it an easier and faster process, and shops are seeing faster supplement approvals using Allstate’s “Virtual Assist” rather than waiting for in-shop reinspections by an adjuster. However, Marlow did acknowledge that some challenges with virtual inspections still exist. With just

photos, he said, you “can’t get under the car or lift the hood.” “And the consumer may come in [to the shop] thinking this is a minor loss, and all of a sudden at tear-down it’s like, ‘Wait a minute. Why is the repair this much? Who is trying to get one over on me? Is it the insurer or is it the repairer?’ When really, it’s just additional damage,” Marlow said. But increased use of “big data” will help resolve more of those issues, he predicted. “What are the parts that you’re not seeing [in a virtual inspection] that you think may be damaged,” Marlow said. “You can start to [use historical claims data] to put a confidence weight on that. No one likes [parts] returns. But if I said [based on data] there’s a 90 percent chance of you needing this part, how many people would not order that part in their initial parts order? And you might

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even do it at 80 percent. Lower than that, people may start to get squeamish. So, you’ll start to see these types of predictions on the damage you don’t see to augment the virtual estimate.” Marlow predicted that one outcome of the shift toward photo estimating and remote or “virtual” handling of supplements will be that

Allstate’s Clint Marlow predicted “big data” increasingly will help offset current limitations of photo estimating. Credit: John Yoswick

“repair costs are going to normalize across the industry.” He said when companies such as his had local claims offices throughout most markets, “different market practices evolved over time” in each of those markets. “Judgement times,” for ex-

ample, evolved differently, particularly in areas like California where labor rates vary from market to market. “They all still kind of get paid the same money to fix the car [despite the differences in labor rates] because the judgment times have evolved a little bit differently,” Marlow said. “That probably isn’t going to be a good model going forward when California claims are handled [remotely] by someone in Atlanta or somebody in New York. That’s my hypothesis on why you’re going to see things normalize across the industry, because you’re losing local market knowledge.” Mixed Views of Photo Estimating MSOs themselves offered a little less enthusiasm for photo estimating during a panel discussion at the event. Vince Claudio of the Gerber Collision chain did say his company has run almost 10,000 photo estimates last year, but he sees it mostly as a customer convenience or a way for the company to potentially handle a “catastrophic event where you have resources strained” and could “work

with a central review team to complete some estimates.” Mark Sanders, president and chief operating officer for the Caliber Collision chain, said his company also offers photo estimates as a customer service, but only “for very small claims, where we can write an estimate, have the customer accept repairs, and we pre-order the parts,” enabling the customer to make only one trip to the shop before repairs begin. “But I do think you’re seeing [photo estimating] getting abused, where it’s being used as a cash-out tool for a lot of customers, some with pretty significant hits,” Sanders said. “To me there’s a risk there of writing an estimate for a customer with what appears to be minor bumper damage, but without notifying that customer that the vehicle could be unsafe to drive because the [sensors or ADAS] systems are knocked out of calibration.” Claudio concurred. “It feels like it makes it easier for them to interact and do business [with you], but by the same token you could be creating significant risk,” he said.

Continued from Page 30

Life Skills First

means to be accountable for their repairs. Lives are on the line in many cases when vehicles are put back into service. Just because a technician thinks a repair is good enough doesn’t mean it meets the manufacturer’s specifications.” Hosier wants the next generation of collision repair technicians to know that the things he is teaching them today may not be applicable in five-ten years, he said. “The collision repair industry is changing nearly every day, and graduates must be willing to adapt and embrace change to maintain their earning potential. This industry can be very rewarding and profitable for those that have the drive to succeed, manage time effectively, are well organized, and have the willingness to put hands-on skills and broad-based technical knowledge together. Technicians that are compassionate about the needs of the customer and take pride in what they do will always be in great demand.”

Rivian Announces $1.3 Billion Funding Round Backed by Amazon and Ford by Nursah Ergü, Interesting Engineering

Electric vehicles are in great demand now and Tesla is leading the way. But it seems like Tesla will have a big competitor in the electric vehicle game; Rivian, which is an electric truckmaker. The company was founded in 2009. And the start-up has closed an investment round of $1.3 billion. The investment round included participation from Amazon, Ford Motor Credit: Rivian Company, and funds managed by Blackrock. Rivian Founder and CEO RJ Scaringe said, “This investment demonstrates confidence in our team, products, technology, and strategy – we are extremely excited to have the support from such strong shareholders.” This new investment is the fourth round of the company in 2019. In February 2019, a $700 million funding round led by Amazon. In April 2019, Ford Motor Company invested $500 million in 36

Rivian and the companies would collaborate on a vehicle project. which would utilize Rivian’s skateboard platform. In September 2019, Cox Automotive announced that it invested $350 million in Rivian, and the companies have plans to collaborate on logistics and service. Apart from these investments, in September 2019, Rivian announced that it was collaborating with Amazon to develop an electric delivery van by using Rivian’s platform technology. Rivian’s launch products R1T and R1S aren’t on sale yet, just like any other products of Rivian. However; the cars will enter the market with customer deliveries expected to begin at the end of 2020. By then, we’ll follow the brand and its activities closely, but it seems like Tesla has a strong component coming to town, which is supported by Amazon and Ford. Let the race begin. We thank Interesting Engineering for reprint permission.

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Product Innovation

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

with Ed Attanasio

First Paint Suits Designed for Ladies Announced at SEMA Fear not, ladies—the Behind the Gun paint suit is made just for you and is finally here! If you’re a female refinisher or technician, this is great news and much needed, according to its creator Connie Manjavinos. Several years ago, Manjavinos, a head painter at Kiddy’s Classics in Jensen Beach, FL, and the person behind Girls Behind the Gun began approaching SATA about producing a paint suit designed specifically for women. As more and more ladies move to the forefront of this industry and gain respect for being top-performing technicians, Manjavinos is driven to play a meaningful role. With a mission of connecting to other females in the collision industry, Manjavinos created an outlet on social media: Girls Behind the Gun. It’s a place of appreciation for all women in the refinishing and collision repair industry. Manjavinos is

now connected with thousands of other female refinishers and technicians. The movement started four

At SEMA 2019, Connie Manjavinos unveiled her Behind the Gun paint suit, designed specifically for women. Credit: Ed Attanasio

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years ago and has already reached an impressive 20,000 followers on Facebook and Instagram. Hilary Ann (@autobodybarbie) came to me with an idea to start “an exclusive Facebook page called Auto Body Gals and I responded with go for it! We have almost 1,100 women from all over the world who use it and share tips, tricks, and techniques while ultimately networking and celebrating each other. It’s going to take an army to make a difference for women in this industry.” Manjavinos has received national acclaim for her work and has participated in many events including 3M’S PPS World Cup. She also received second place in last year’s SATA Gun Design Competition for SEMA, and also participated in two all-female builds featured at SEMA. It’s still a male-dominated industry, but things are getting better,

Manjavinos said. “Yes, there are still a few guys out there who have issues with women, but they aren’t going to stop me from what I am doing. In a way, it’s inspiring and most of the men I encounter are so supportive, to be honest. That’s why networking with other female painters and techs is so needed, because there’s power in numbers.” When Tony Lartimer at DanAm Company and CHOKO Designs, a clothing manufacturer, gave her paint suit concept two thumbs up, it was go time, Manjavinos said. “In November 2018, the people at Choko approached me and after a while all three parties came together to do this. It was fate and pretty amazing. I was excited and we began the design process right away. We started with a rough draft and then it changed and evolved during the development stage.”

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Most paint suits are made for men and this one acknowledges women,” she said. “Before this suit existed, we had to use a log of tape to get a good seal around the ankles and wrists—it’s a hassle. We got a lot of valuable feedback from female painters and we determined that it takes 15 minutes to tape up. In

straps replace tape and the Girls Behind the Gun logo is emblazoned on the back of the suit. The goal was to create a suit that will help us to be more efficient without completely sacrificing style.” Over the years, several companies came out with paint suits that were allegedly designed for women,

“The goal was to create a suit that will help us to be more efficient without completely sacrificing style.” — Connie Manjavinos addition, men’s suits are normally way too big for us, and we don’t want all that extra material that can touch the paint when we lean in, for example.” Other modifications make the suit ideal for women, Manjavinos said. “With our suit, we insisted on knee pads that might eventually be removable in future designs. We also got rid of the pocket on the chest, so we could use the princess cut design to achieve that feminine look. We also learned that most ladies don’t use their pocket anyway. Velcro

Manjavinos said. “There was no other women’s paint suit out there on the market. Other brands came out with pink suits as a special edition, but it would still be a men’s suit. When I first began thinking about the Girls Behind the Gun paint suits, I Googled it and when I saw that there was nothing out there, it inspired me even more.” Available in every size from extra small to triple extra large, the Girls Behind the Gun paint suit features a breathable full poly-cotton back; built-in padded knees; hook

and loop cuff closures; ergonomically shaped sleeves, easy to slip on wide paint legs adjustable hook & loop leg closures and underarm twoway zippers. Unveiling the suit at SEMA 2019 was an incredible experience for Manjavinos. “Every woman who saw it at the SATA booth loved it and every single one didn’t hesitate to try it on. This suit represents opportunity and I really believe that this is only the beginning, as more and more doors start opening up for us. The new Girls Behind the Gun is part of this revolution and proud to be part of it.” “I just want to help the women be able to walk in that paint booth with confidence,” she added. “I want to eliminate the stress or anxiety in the back of their heads to make sure that their paint suit isn’t in the way. That way, we can truly focus on our work and achieving a fantastic paint job. This is for all women with all backgrounds behind the gun who needs a protected paint suit!”

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UNIBODY AutoTech Collision Center Joins CIECA

UNIBODY AutoTech Collision Center joined CIECA as a corporate member. Established in 2008 by Michael Chong, the company offers auto repair and maintenance in Honolulu, Hawaii. Chong said that he is continually looking to expand his knowledge of the industry so he can bring information back to Hawaii and his team at UNIBODY AutoTech Collision Center. “Today’s vehicles are like smartphones on wheels,” said Chong. “CIECA seems to be ahead of the game when it comes to technology and I look forward to gaining knowledge and meeting great people at CIECA.” Chong said that with technology and safety systems growing every day, he and his employees recognize the importance of refocusing on how vehicles are repaired today while consumers are demanding instant satisfaction. “CIECA standards are important,” said Chong. “As technology continues to evolve and collision repair businesses adapt, standards help us better communicate and evolve in our changing industry.”

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Continued from Page 33

That’s It!

Paint Manufacturer: John Bosin, now retired but formerly a representative with AkzoNobel and DuPont paint companies noted, “Initially DuPont wanted people with a bachelor’s degree in business. Eventually what they, and other paint companies realized was, they needed people who were versed in the business and the products they represented. Today, former shop owners not only make great account representatives, but paint companies also need people to serve in training and consulting roles to manage their body shop programs such as Akzo’s A-Coat program.” PBE Jobber Rep: Gay Bargnes, one of the principals for Painter’s Supply, a paint and body supply jobber with 52 stores in eight states is well known in the industry and is the immediate past chair for the Collision Industry Conference. He said there are many positions on this side of the industry that can be and are filled with former shop owners, techs and

painters. Bargnes added, “Being a rep or a trainer for a paint jobber is a quasi-technical position. It requires a combination of technical skill, sales skills, and people skills.” Bargnes “guesstimates” that there are about 1,500 Paint Body and Equipment (PBE) jobber companies in the country with a total of 4,000 locations. This is not counting the many auto parts jobbers who also carry PBE products. According to Bargnes’ estimation, “This provides former shop owners, painters and technicians with the most opportunity of any shop employment alternative in the industry.”

Consumer Advocate: Consumer advocate is an all-encompassing way of describing a professional who will conduct post-repair inspections and assist in diminished-value claims. Many consultants do this, but some, like Collision Safety Consultants based in North Carolina and Wreck Check Car Scan (owned by a former shop owner) based in Las Vegas specialize in it. With cars becoming more sophisticated and people becoming more litigious, post repair inspection, and looking after the rights

Subaru Recalls 498,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com

A Subaru Takata airbag inflator recall has been issued for nearly 498,000 of these vehicles to replace the passenger frontal airbag inflators.

• • • •

2009-2013 Subaru Forester 2003-2006 Subaru Baja 2004-2011 Subaru Impreza 2004-2014 Subaru WRX (including STI) • 2003-2014 Subaru Legacy • 2003-2014 Subaru Outback • 2006 Saab 9-2X The action is part of a recall of 10 million Takata airbag infla-

AUTOBODY

tors in vehicles manufactured by at least 14 automakers. The vehicles had their passenger airbag inflators replaced during previous recalls. It may be the final Subaru recall to replace Takata inflators after multiple automakers were forced to replace the inflators after deaths and injuries caused by exploding inflators. Takata airbags contain metal inflators which can explode into shrapnel when the airbags deploy. The Subaru recall is expected to begin in January 2020. Subaru owners may contact Subaru at 844373-6614, and Saab owners may call 800-955-9007. Subaru’s recall numbers are TKC-20, TKB-20 and TKA-20.

We thank CarComplaints.com for reprint permission.

www.autobodynews.com

UPDATED DAILY

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

of the consumer is a growing business. Given the John Eagle case of two years ago, the stakes could not be higher. Executive Director of an Auto Body Association: In 1982, John Loftus owned a body shop in Hawthorne, CA, and was already active in his state’s auto body association. He knew something more was needed – something on a national scale. Long story short, he, and a few other shop owners were responsible for founding what is known today as the Society of Collision Repair Specialists (SCRS). Loftus became a paid “employee” of the organization serving as executive director for 19 years. Is there a body shop association or similar organization in your area that needs an executive director?

Industry-Related Technology Company: Curt Nixon is a former collision shop owner who saw several needs within the customer-experience initiatives for body shops, mechanical shops and dealership service departments, and is working hard to fill those needs. He operates a company called Update Promise, providing a suite of products to help shops build business and profits and enhance the customer experience. Among these are verified third-party shop reviews, integrated payment systems, data analytics, and customer contact. Be sure to check Autobody News next month for part two of this two-part series with a few more ideas on related alternatives to shop management, and the conclusion of this article.

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

National Associations with Chasidy Rae Sisk

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.

ASA’s Webinar Wednesday Addresses What’s Happening With Data Access Policy On Dec. 18, ASA’s monthly Webinar Wednesday featured a discussion on “What’s Happening With Data Access Policy” with Robert L. Redding Jr., ASA Washington, D. C. representative and Greg Scott from the U. S. Vehicle Data Access Coalition. The webinar began with ASA Vice President of Industry Relations Tony Molla welcoming attendees and introducing Redding and Scott. Redding began with a review of service information and vehicle data access which started with the 1990 Clean Air Act Amendments which required independent repairers to have access to the same information as dealers. Subsequent EPA regulations, what Redding called “attempts at getting it right,” proceeded to the ASA and Automaker Service Information Agreement which facilitated the creation of OEM websites and landed the industry where it currently is today. “The Massachusetts Right to Repair led to a memorandum of understanding with aftermarket and automaker associations. Finally, in the 115th Congress passed Autonomous Vehicle Legislation in the U.S. House of Representatives, but AV legislation containing Vehicle Data Access stakeholder language failed to reach the U.S. Senator floor,” Redding explained. Moving on to data access, Redding asked Scott when the U. S. Vehicle Data Access Coalition was formed, and Scott said, “In 2017, as Congress began looking at autonomous vehicle legislation, European automakers threatened to shut down data access due to autonomous vehicles. The Coalition was founded and is comprised of members of the automotive industry, the aftermarket repair industry, consumer groups, insurance industry groups and others who believe the owner of the vehicle should control the data generated by that vehicle and be able to grant permission to repairers to access that information.” “At the time, there was a belief that the data belonged to the OEMs who could then grant access to the

vehicle owner,” Scott continued. “The Coalition was formed as a necessary political animal because our voices are stronger together and allows us to offset the power of motor vehicle manufacturers.” Explaining that the Coalition is now examining a broader set of data, Scott discussed how data impacts consumers and insurers. “Consumers need to be able to know where their vehicles are, and insurers are involved in this topic as they reconstruct accidents or try to write policies. There is all sorts of data that different parties need access to. Telematics companies pull data that’s important to fleet management companies but irrelevant to a collision repair shop. ASA members are most interested in only one data set that vehicles pull, and the many other data sets are important to other groups, but we all agree that the owner should control data access.” The Coalition became involved with the subject when the House was moving the autonomous vehicle legislation which talked about cybersecurity being housed with National Highway Safety, and the Coalition managed to secure two legislators willing to sponsor the Coalition-backed amendment in the fall of 2017. The autonomous vehicle legislation did not move to the Senate floor based on issues unrelated to data access. “We need to talk about the issue of data access, including who controls it and what use cases are allowed,” Scott said. “We moved from having discussions with OEMs to thinking that’s insufficient and deciding that we’re going to need to do affirmative legislation.” Redding noted that the collision repair industry has relied on thirdparty providers and OEM websites for years, and he pondered what path should be taken to move forward, identifying this as a critical concern for the second session of the 116th Congress. “We need a path for vehicle data access because there’s too much at stake,” Redding stressed. “We want to keep our small businesses viable

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

and allow them to plan for the future. It’s important for their strategic planning that we figure this out.” Referencing the California Privacy Act, Redding questioned why shops in other states should be concerned. Scott explained, “We need to start by dividing access to data with usage of data. How can you use sensitive, personal data? California has adopted this law that goes into effect on Jan. 1, but the use of data is irrelevant to an ASA member, fleet operator or consumer if they don’t have access to that data. We need to begin by regulating data access, and then it’s appropriate to regulate use of that information.” Scott also hypothesized about which pieces of legislation could include data access issues, besides legislation pertaining to autonomous vehicles. Addressing NHTSA’s role in data access, Scott noted, “The

NHTSA’s concern is safety. Data access is related to privacy and competition. If data is restricted, competition disappears, and prices increase for consumers. Congress hasn’t given NHTSA the authority to regulate data access; as of 2019, the Federal Trade Commission regulates data access.” Anticipating that 2020 will see the introduction of data access legislation that the Coalition will be supporting, Scott predicted, “We’re going to shake up the OEMs on this topic. At the end of the day, as ASA members well know, negotiation will always include a bit of a confrontation, but if we can reach an agreement between the OEMs and vehicle owners to ensure data access for everyone who needs it, that would be the preferred outcome. The Coalition wants everyone to know we are out here beating the drum on this.” “If you’re not at the table, you

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tend to be on the menu,” Scott continued. “We have to push our way into this debate and line up our champions. Legislators need to hear from their constituents to know they care about this issue. We need to make as much noise as we can so that OEMs and legislators have to pay attention. If we don’t speak up together, we won’t get the attention we need; it’s up to us to affirmatively pass legislation to prevent OEMs from shutting it down … As vehicles advance, there will be more data, and repairers will need more access. We are trying to cover current and future vehicles as we strive to address the data access issues facing the industry.” ASA’s next Webinar Wednesday will occur on Jan. 15 at 1 p.m. EST and will feature Becky Witt, AMAM for George Witt Service, as she presents “Would You Take a Job for $200 an Hour?” Witt will apply accounting principles to demonstrate how pricing should be determined, thereby providing attendees with the tools necessary to increase profits. For more information or to register, visit asashop.org/webinars/.

Chevy Shake Class Action Says Driveshaft is the Problem by David A. Wood, CarComplaints.com

A so-called “Chevy Shake” classaction lawsuit alleges GM vehicles suffer severe vibrations because the automaker uses aluminum driveshafts. The GM class action includes all consumers in the U.S., except Florida, who purchased or leased any of these GM vehicles. • 2015-2020 Cadillac Escalade • 2014-2019 Chevrolet Silverado • 2015-2020 Chevrolet Suburban • 2015-2020 Chevrolet Tahoe • 2014-2019 GMC Sierra • 2015-2020 GMC Yukon/Yukon XL Florida consumers are not included because a separate Chevy Shake lawsuit (Weiss v. General Motors) was denied nationwide class action certification, but the judge said the lawsuit could proceed for GM customers in Florida. According to the two plaintiffs who filed the lawsuit, the aluminum driveshafts cause severe vibrations that cause drivers to lose control of the vehicles. The plaintiffs claim the problem occurs while driving high-

way speeds, and over time the driveshaft can deteriorate and finally drop to the ground. GM allegedly sells and leases the vehicles while knowing the aluminum driveshafts will cause violent and dangerous vibrations that can send the vehicles off the roads. Instead of warning customers about the dangers, the class action alleges General Motors conceals information about the Chevy Shake to continue selling and leasing the vehicles. The automaker also has allegedly refused to recall the vehicles to replace the driveshafts and hasn’t offered to reimburse customers who spent their money for repairs. One of the plaintiffs purchased a 2017 Chevrolet Silverado 1500 and claims the truck experienced the so-called Chevy Shake when about 25,000 was on the odometer. According to the plaintiff, the “center console aggressively shakes left to right such that if a cup were placed in the console without a lid, it would spill.” The plaintiff also says she has paid more than $1,400 in an effort to fix the truck but the vibrations and shaking continue. The dealer-

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ship allegedly finally said the vibration was normal and no repairs were needed. The class action says owners have replaced the aluminum driveshafts with custom-made steel driveshafts which completely fixed the problem. The lawsuit says it’s clear GM knows about the so-called Chevy Shake because dealerships have been issued technical service bulletins (TSBs) related to the driveshafts. GM issued TSB PI1354A in 2014 and TSB PI1354C in 2015 which said, “There have been many cases of dented propeller [drive] shafts.” GM told each dealer to inspect the driveshaft and replace it if damage was discovered. However, the lawsuit alleges the aluminum driveshafts were replaced with equally defective aluminum driveshafts. The automaker also sent dealerships TSB PI1354I in 2019 entitled, “Information on Vibration Analysis and Diagnostic,” something the class action alleges is proof GM is still having problems with the driveshafts. We thank CarComplaints.com for reprint permission.

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Top Automotive Industry Stories of the Decade by Tara Taffera, glassBYTEs.com

As we head into 2020, glassBYTEs .com took a look at the most popular stories of the 2010s. Five of them had to do with shattering or faulty sunroofs—a big topic of the past decade. The top ten may not be what you expected but they were the most read based on page views. 1. Honda Requires OE Replacement Windshields for Some Models With Driver Assist, Safety Systems It may seem as if ADAS technology has ramped up in the past few years, but back in 2014, Honda was already requiring original equipment replacement windshields for certain Honda and Acura models equipped with ADAS features. “While non-OE parts may look the same and fit in the same physical space on the vehicle, their use may present unforeseen circumstances causing the driver assist or other safety systems to operate abnormally or not at all,” according a statement by Honda. 2. NHTSA Receives More Complaints of Shattering F-150 Back Lites Reports of shattering sunroofs were also extremely prevalent back in 2014 when more than 30 owners of the 2010 Ford F-150 model complained to the National Highway Traffic Safety Administration (NHTSA) that an alleged glitch in their rear defrosters had caused their back lites to shatter or spiderweb in cracks. 3. Can Repairs Be Successful in Cold Weather? With the cold weather already hitting many areas of the country, perhaps you will want to refer back to this article from 2014 which talks about tips for performing repairs and replacements in cold weather. 4. Dwyer-Owens Steps Down as CEO of the Dwyer Group In 2014 Dina Dwyer-Owens left her role as CEO of The Dwyer Group, parent company to Glass Doctor, a position she held for 15 years. She then moved into the role of executive chairwoman of The Dwyer Group. 5. Class Action Lawsuit Filed Against Chrysler Over Alleged Sunroof Defect 44

Before 2014 ended, six Chrysler owners filed a nationwide class action lawsuit against the automaker in U.S. District Court of New Jersey alleging that a defect in the sunroofs caused them to leak.

daycare, I heard a large pop and then smelled burning rubber. I looked and saw the right rear glass shattered and it was shortened out by the heating element,” reported one owner to NHSTA on Dec. 15, 2013.

6. Is This the Beginning of the End of the Giant Glass Brand? In November of 2015, three years after purchasing North Andover, MA-based Giant Glass Co., Safelite AutoGlass moved to co-brand its name with the company. Prior to this, Giant Glass’ five locations continued to operate under the existing name, and Safelite rebranded its Falmouth, MA, store into the Boston brand. “We have leveraged the local brand position held by Giant Glass for almost three years,” said Tom Feeney, Safelite Group president and CEO. “While all the people became Safelite associates operating with Safelite systems and tools, Giant and Safelite operations remained separate. It has now become clear that bringing all our resources in the market together is best way to serve our customers in the future.”

9. BMW Asks Court to Dismiss Lawsuit Over Alleged Sunroof Defect Just three months prior to publishing our number eight story, BMW asked the U.S. Northern California District Court to dismiss a class action lawsuit in which the plaintiffs, two BMW owners, claimed that drainage tubes installed to pull water away from vehicles’ sunroofs did not properly work, leading to water damage. “Recognizing that there is no warranty coverage for water leaks in their used BMW vehicles, plaintiffs (Monita) Sharma and (Eric) Anderson seek to impose on BMW NA an obligation to fix their cars for free, ad infinitum, by claiming that they— and a large group of owners and lessees of BMW vehicles sold in the United States over more than ten years—were ‘defrauded’ by BMW

7. Cadillac Hit With Lawsuit Regarding Leaking Sunroofs In 2017, Cadillac Automobile Company, a division of General Motors (GM), was hit with a lawsuit alleging the company manufactured and/or designed 2010-2013 Cadillac SRX models with leaking sunroofs and had denied warranty coverage for certain year models. Plaintiff Kelley Gaines, a resident of California, claimed the vehicles were manufactured or designed with defective sunroof seals or drains, allowing water to enter the passenger side of the vehicle. 8. Several Ford F-150 Owners Report Shattering Backlites to NHTSA A story in 2013 detailed more than 20 F-150 Ford owners of the 2010 model year who complained to the National Highway Traffic Safety Administration (NHTSA) that an alleged glitch in their rear defrosters had caused their backlites to shatter or spiderweb in cracks. “On a 40-degree morning, I turned the rear defroster on to clear the windows and mirrors. As I was driving my son to

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com

NA through an alleged design defect in their sunroofs that may result in water leaks,” BMW’s attorneys claimed in court documents. 10. GM Extends Headlamp Module Warranty You never know what will appear in the top stories, and this number ten of the decade may be a surprise. It was the story following a National Highway Traffic Safety Administration (NHTSA) investigation, stating that General Motors (GM) had extended its headlight warranty to cover problems related to its headlamp driver modules recall. The initial recall was for defective low-beam headlights and daytime running lights on certain GM makes and models that were prone to failure. After receiving 128 consumer complaints following the recall, NHTSA opened an investigation on April 30, 2017, to see if the recall fixed the affected vehicles. We thank glassBYTEs.com for reprint permission.

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autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

Blind People Can See Through Ford’s New Car Window

Mercedes-Benz Recall Failures Lead to $20 Million Settlement

by Nico Ylanan, motor1.com

by David A. Wood, CarComplaints.com

We all know that Ford hasn’t been at the forefront of the best news recently, but we stumbled upon a little story that will definitely bring a smile or tear down your face. Personally, I’ve never known anyone that was born blind or lost their sight at some point in their lives, but it’s something that I would

never wish upon anyone. We often take the gift of seeing and visualizing our experiences and daily lives for granted, our brains playing back our memories in color and motion, able to make out all the tiny details in our cherished memories. It’s hard to imagine someone who cannot see what we see, and have feel the emotions connected to that moment in time. Ford is making a huge difference, and it’s pretty darn close to making sure everyone can see the world in their own way. Called “Feel the View,” it was

conceived and developed by Ford and GTB in Italy, in collaboration with a local start-up called Aedo that creates devices for the visually impaired. It works by creating the sensation of sight through 255 vibrations sent through a vehicle’s window glass that the hand can feel an interpret. All you must do is press the button and the device takes a picture of the scenery. This picture is a high-contrast monochrome image, the picture converted into greyscale, where the machine can translate every shade of grey into a unique vibration of varying intensity on the car window. This allows the visually impaired to “feel” the scenery by making out details and depth through touch, essentially being able to rebuild the landscape in their minds. Another neat touch is an integrated virtual assistant that can help add context to the image by saying key words about the image through the car’s speakers. This is the kind of stories about the future of motoring that we should all get behind; good on you, Ford. We thank motor1.com for reprint permission.

Mercedes-Benz recall failures have cost the automaker $20 million to settle federal allegations from the National Highway Traffic Safety Administration (NHTSA). According to the government, Mercedes signed the settlement agreement admitting mistakes were made during the recalls of 1.4 million vehicles. NHTSA opened an investigation in October 2018 alleging Mercedes failed to follow regulations concerning recalls ordered in 2017. Safety regulators alleged the automaker didn’t inform customers about safety recalls within the 60day period mandated by law. The government also alleged Mercedes committed other sins by failing to mail recall notices to owners in the required time periods and by failing to file proper quarterly recall reports. Even the automaker’s website came under scrutiny when NHTSA said failures occurred with the vehicle identification number lookup tool that may have prevented customers from learning about safety recalls.

Mercedes had additional problems with notifying dealerships about planned recalls and even misestimated the percentage of vehicles affected by recalls. In addition, the automaker ignored questions from NHTSA and didn’t provide important information concerning the 2017 safety recalls. Safety regulators further complained they had trouble investigating alleged safety problems because Mercedes failed to perform its legal duties. According to the $20 million settlement agreement, MercedesBenz will pay a $13 million civil penalty now, but an additional $7 million will be deferred and could become payable if specified conditions are not satisfied. The Mercedes agreement will be in effect for one year with the option for NHTSA to extend for an additional year under certain conditions. We thank CarComplaints.com for reprint permission.

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11th Circuit Court Dismisses Suit Alleging Conspiracy to Deflate Collision Repair Changes by Jim Sams, Insurance Journal

A federal appellate court affirmed a decision to throw out a racketeering lawsuit brought by a group of 126 auto body collision repair shops against seven of the largest U.S. insurers. The 11th Circuit Court of Appeals in Atlanta agreed with the district court that the repair shops failed to state a valid claim that the insurers had conspired to commit a fraud by demanding that they accept lower rates for their work in order to participate in their repair networks. The 11th Circuit noted that the 9th Circuit had rejected a similar pleading brought by small business owners against Yelp for allegedly manipulating user reviews to “extort” advertising revenue. “The Ninth Circuit’s reasoning fits the facts here well, and we conclude that, at most, these defendants drove a hard bargain,” the 11th Circuit panel said in an opinion written by Judge William Pryor. The case is titled Crawford’s Auto Center v. State Farm Mutual Insurance Co. Allstate, Geico, Progressive, Farmers Insurance, Liberty

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Mutual, and Nationwide were also named as defendants. The repair shops first filed the lawsuit alleging an insurer conspiracy in a Chicago federal district court in 2014. The case was assigned as multi-district litigation to U.S. District Judge Gregory A. Presnell in Orlando, FL. The body shops alleged that the insurers used third-party information providers — ADP Claims Services Group, CCC One and Mitchell — to establish “prevailing rates” for auto body repair work. The carriers referred policyholders to repair shops that agreed to accept the prevailing rates. The lawsuit alleges the insurers conspired to suppress the rates charged by their industry be creating deflated prevailing rates, a violation of the Racketeering Influenced and Corrupt Organizations Act. What’s more, the carriers violated antitrust laws by working together to lower their costs. In its analysis, the 11th Circuit noted that a group of auto body shops has filed a similar lawsuit that was also rejected. In Quality Auto Paining Center of Roselle v. State

ASE Certification Registration Now Open

ASE winter registration is now open through March 31. Those registering will have 90 days to schedule an appointment to take the selected ASE tests. ASE tests are conducted days, nights and weekends at nearly 500 secured, proctored test centers. Each test costs $45, except L1, L2 and L3 tests which are $90 each. For recertification, a one-time $36 registration fee is paid during the registration period, and tests are $45 each, except L1R and L2R tests which are $90 each. “From entry-level certification to master status, ASE offers a broad range of test series covering automotive, collision, medium/heavy duty, school bus, transit bus and truck equipment repair,” said Tim Zilke, president & CEO of the National Institute for Automotive Service Excellence (ASE). “The prestigious ASE blue seal patch identifies service technicians as knowledgeable, proficient and committed to excellence.”

Farm, the appellate court dismissed a suit that alleged that insurance carriers were violating anti-trust laws by colluding to improperly pressure body shops to accept lower repair prices. The court said in order to pursue a claim under the RICO act, the repair shops would have to show that they there were the victim of a fraud or extortion. The fraud alleged in the complaint, however, consisted of nothing more than “vague allusions” to misrepresentations made by the insurers. There was also no allegation of extortion, which means to use force, violence or fear to obtain property. “Plaintiffs could have refused to perform the requested repairs at the rates set by defendants, but they did not,” the panel said. “They went ahead and performed those repairs. This is not extortion.” The panel also rejected plaintiffs’ arguments that the district judge erred by not entering several exhibits into evidence and by refusing them an opportunity to amend their complaint a third time. We thank Insurance Journal for reprint permission.

WIN Scholarship Program Opens Applications Women’s Industry Network (WIN) is committed to supporting females who demonstrate their desire to excel in the field of collision repair through the WIN Scholarship Program. Applications for the 2020 program will be accepted now through Jan. 31, 2020. The program for 2020 will offer the College Student Tuition and Conference Scholarship Award. This scholarship is presented to students enrolled in a post-secondary collision repair technology program. Each recipient will receive a $1,000 scholarship to continue their post-secondary education and a one-year WIN membership. “WIN understands that the cost of education, or continued education, has the potential to be a hurdle for students,” says Debbie Menz, 2020 co-chair of the Sponsorship Committee. “But with the support of our sponsors and members, WIN is able to offer scholarships to multiple female students each year to help them advance in the collision repair industry.

Tesla Becomes the Biggest U.S. Automaker in History by Loukia Papadopoulos, Interesting Engineering

Tesla just became the biggest automaker in history. Its market capitalization on Monday, Jan. 6 was valued at $81.4 billion, beating Ford’s peak market value of $80.8 billion. Beating the Competition It was already bigger than General Motors but now also surpassed Ford’s. “They caught their competition in the U.S. just dead flatfooted,” Paul Holland, a general partner at Foundation Capital, said Tuesday, Jan. 7, regarding Tesla on CNBC’s “Squawk Alley.” “I don’t think it’s quite going to be the same in China … but nonetheless, a terrific day for Tesla and well-deserved because they’ve innovated with a product that many of us love.” Tesla shares have had a very promising beginning of 2020. They increased by almost 10% in the first week of the year as the first Model 3 sedans rolled off the assembly line at the firm’s China factory. The firm also boasted a record number of deliveries in the fourth quarter. Tesla delivered an impressive number of 112,000 vehicles during the

final three months of 2019. Tesla CEO Elon Musk spent the New Year working at the Fremont, CA, factory to deliver the last few cars of the year. A Good Year This year also saw the introduction of the Cybertruck. The car received 146K orders just two days after its unveiling. The firm also delivered China’s Model 3s early on Jan. 7. “China is by far the largest market for mid-sized premium sedans. With Model 3 priced on par with gasolinepowered mid-sized sedans (even before gas savings and other benefits), we believe China could become the biggest market for Model 3,” said Tesla in its third-quarter earnings report. Although Tesla’s toppling of these two American auto giants may come as a surprise to some, it was already predicted a Bloomberg article of 2014. Entitled “Tesla Can Topple the Car-Dealer Monopoly,” the article attributed the firm’s success to Musk’s desire to “build a retail network free from the franchise-dealer monopoly.” We thank Interesting Engineering for reprint permission.

autobodynews.com / FEBRUARY 2020 AUTOBODY NEWS

FEBRUARY 2020 AUTOBODY NEWS / autobodynews.com