39 YEARS
S O UTHWESTEDITI ON
AUTOBODY AZ / AR / CO / LA / NM / OK / TX / UT
U.S. Deficit 60.7% Higher Than This Time Last Year by Bethany Blankley, The Center Square
The federal deficit in the first three months of the b ud get y ear is 6 0 . 7 % higher than over the same time p eriod as last y ear, a record - b reak ing $ 5 7 2 . 9 b illion. The deficit surged as a result of C ongressional sp end ing of $ 3 . 5 trillion in 2 0 2 0 in resp onse to the coronavirus, although critics note that sp end ing on p ork b arrel p rograms that had nothing to d o w ith the virus increased and also drove the deficit. A t the same time, revenue d eclined b ecause of ongoing state lock d ow ns.
The Treasury D ep artment reports that the deficit is $21 .3 billion higher than the same O ctob er- D ecemb er p eriod in 2 0 1 9 . A record in sp end ing f or the p eriod rep resented an 1 8 . 3 % increase of $ 1 . 3 8 trillion, w hile at the same time revenues f ell 0 . 4 % to $ 8 0 3 . 3 7 b illion. I n the month of D ecemb er alone, w hen C ongress p assed , and P resid ent Donald T rump signed several spending bills, the deficit reached a record $ 1 4 3 . 6 b illion. The shortf all f or the 2 0 2 0 b ud get y ear, w hich end ed S ep t. 3 0 , reached an all- time high of $ 3 . 1 trillion. See U.S. Deficit, Page 10
‘Who Pays for What’ Survey: About 2 in 5 Shops Itemizing Diagnostic Time Separately from Scanning M ore than a third of shop s ( 3 9 % ) itemiz e on invoices the d iagnostic lab or time they sp end researching d iagnostic troub le cod es ( D TC s) ap art f rom the charge f or the vehicle scan itself , accord ing to j ust- released results f rom a “ W ho P ay s f or W hat? ” survey . A mong the more than 5 0 0 shop s resp ond ing to the survey ’ s new q uestions related to d iagnostic time, ab out half ack now led ged never having includ ed an itemiz ed charge f or d iagnostic time. B ut among those that d o, ab out three in 1 0 ( 2 9 % ) say they are p aid
“ alw ay s” or “ most of the time” f or the charge b y the largest eight auto insurers, and the maj ority ( 5 5 % ) say they are p aid at least “ some of the time. ” M ike A nderson of C ollision A d vice, w hich cond ucts the “ W ho P ay s” survey s in conj unction w ith C R A S H N etw ork , b elieves those numb ers w ill grow b ecause d iagnostic time is b ecoming an increasingly significant portion of collision repair w ork . “I know firsthand how much time it tak es to research and troub le-
Vol. 39 / Issue 2 / February 2021
2009 redux? Biden cites ‘urgent’ need for his $1.9 trillion stimulus by Philip Wegmann, RealClearWire
The economy w as b ad , and the W hite H ouse p lanned to go b ig. O n the d ay the mammoth $ 8 0 0 b illion R ecovery A ct b ecame law , how ever, the new p resid ent took care to stress how his ad ministration w ould k eep a close ey e on every d ollar going out the d oor. This task of p rovid ing oversight, B arack O bama announced at the b ill’ s 2 0 0 9 signing ceremony , w ould go to Joe B iden. “ To y ou, he’ s M r. V ice P resid ent, ” O b ama q uip p ed to a room that includ ed more than one sk ep tical R e-
p ub lican law mak er. “ B ut around the W hite H ouse, w e call him the sheriff.” I n a f ew d ay s, the country w ill call him M r. P resid ent. A d ecad e later, B id en conf ronts a d eep er economic crisis, this one b rought on b y a glob al p and emic, and the incoming ex ecutive has p rop osed a $ 1 . 9 trillion stimulus p ack age meant to b uoy f amilies and communities and small b usinesses as his ad ministration p ushes to step up d istrib ution of the coronavirus vaccines. All that old sheriff has to do See $1.9 trillion stimulus, Page 14
American Honda Motor Launches New Certification Program by Stacey Phillips
N early six y ears ago, American H ond a M otor launched the P roF irst C ertified Body Shop rogram. Many were sk ep tical ab out ob taining O E M certifications, according to R ossana A lv arez , assistant manager of collision certification and parts marketing for A merican H ond a M otor.
See ‘Who Pays for What’, Page 12
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O ver time, she said , shop ow ners began to realize the benefits of certification for their businesses and momentum b egan to b uild . I n resp onse to f eed b ack A merican H ond a M otor has received f rom shop s across the country , the O E M has taken steps to update its certified
collision p rogram. A s a result, the H ond a and A cura Certified Collision rogram will rep lace the P roF irst p rogram d uring a grad ual transition throughout 2 0 2 1 . “ The automotive ind ustry continues to mak e technological ad vances at b reak neck sp eed , highlighting the need f or rep air shop s to b e f ully eq uip p ed and trained w ith access to necessary rep air p roced ures to cond uct a saf e and p rop er rep air, ” said A lvarez . “ O E M collision certifications are no longer simp ly p op ular; they are essential. The d ay s of them b eing consid ered a f ad are long gone. ” A lvarez said the collision ind ustry is rap id ly changing and it w as imp ortant f or the H ond a team to k eep p ace. “As O M certification programs continue to gain traction w ith other sectors of the ind ustry , the immed iate recognition b y those entities and our H ond a and A cura vehicle customers becomes exponentially beneficial See New Certification Program, Page 18
1/18/2021 4:26:08 PM
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2 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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CONTENTS Couple Arrested, Charged with Breaking into Smithfield, UT, Auto Body Shop ...............10 DEG Welcomes ABAT as Newest Gold Level Sponsor ...............................................11 Louisiana Dealership Helps Students Realize Dreams of Auto Industry Career ....................10 Tesla Gigafactory Texas Earns Austin Chamber a Deal of the Year Award ..................6 The Boring Company Pushes TX Expansion with New Lease Near Gigafactory Texas ........11 Universal Technical Institute Announces the Purchase of its Avondale, AZ, Campus .............6
American Honda Motor Launches New Certification Program ......................................1 ASE Entry-Level Certification Helps Shops
for the First Time in a Decade .......................27 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, Griffin Reinhard, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray
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. ©2021 Adamantine Media LLC.
American Icon Automotive Finishes ................. 12
GM Wholesale Parts Dealers ........................... 27
Audi South Austin ........................................... 15
Honda-Acura Wholesale Parts Dealers .......20-21
Audi Wholesale Parts Dealers .......................... 37
Hyundai Wholesale Parts Dealers .................... 35
a Week After Granting Emergency Use
AutoNation Collision Parts ................................. 7
Kia Motors Wholesale Parts Dealers ................ 29
for Pfizer’s ....................................................12
Bill Luke Chrysler-Jeep-Dodge-Ram ............... 18
Mazda Wholesale Parts Dealers ...................... 39
Freeman Joins NABC ........................................12
BMW of South Austin ...................................... 15
Mitsubishi Wholesale Parts ............................. 34
GM Pays $121M Over Ignition Switches,
BMW Wholesale Parts Dealers ........................ 26
MOPAR Wholesale Parts Dealers ..................... 25
Bob Utter Kia .................................................. 22
NOROO Paint & Coatings ................................. 40
Certified Automotive Parts Association ............ 10
North Freeway Hyundai ................................... 19
Chevyland....................................................... 19
Part of the Club ............................................... 17
Christopher’s Dodge World .............................. 17
Peak Kia ......................................................... 17
Classic BMW................................................... 23
Santa Fe Kia ................................................... 18
Classifieds ...................................................... 38
SATA Dan-Am Company .................................. 13
Eckler’s Automotive ........................................ 11
Schomp Ford .................................................. 17
Emich Chevrolet.............................................. 17
Scoggin-Dickey Parts Center..........................8-9
Emich Volkswagen .......................................... 17
Sherwin-Williams Automotive Finishes .............. 2
Equalizer Industries, Inc .................................. 14
Spanesi Americas ............................................. 5
Collision Engineering Program Launched ..........30 Congressional Leaders Reach Deal on New COVID-19 Stimulus Relief Package .................4 COVID-19 Vaccine Distribution Begins After Pfizer Receives Emergency Use Authorization ........35 CREF Board Welcomes New Members ................4 Dealership Buy/Sell Market on Pace for
Driven Brands Collision Group Stands ‘UNIT3D’...16
Anderson - Two-Way Dialogue a Good Way
FDA Approves Moderna’s COVID-19 Vaccine
Pursues Politics ............................................34 Ledoux - The Rise of the Electric Vehicles .........31 Phillips - COVID Edition: Collision Repair Owner and Entrepreneur Develops Technology Claims Solution for Industry ........28 Yoswick - Panel Reviews Why OEM Repair Procedure Legislation Has Mostly Failed to Be Enacted ...............................................23
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Auto Insurance Rates Decreasing in 2021
COLUMNISTS
Attanasio - Tim Morgan Rescues Pits and
ltedesco@autobodynews.com
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Ensure New Talent is Actually Talented ..........36
New Record ..................................................39
to ‘Maintain’ Employees ................................22
800-699-8251
Power Steering, Airbags ................................39 IGONC Tireside Chat: Setting Your Business Goals for 2021 ..............................................35 Objections to Payment and Requested Procedures Outlined in SCRS Class ...............26
INDEX OF ADVERTISERS
REGIONAL
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Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
PPG Appoints New VP, CIO .................................12 Safelite to Close Business Unit ..........................38
NATIONAL ‘Who Pays for What’ Survey: About 2 in 5 Shops Itemizing Diagnostic Time
Tesla Full Self-Driving Subscriptions Get a Tentative Release Date .................................4 Toyota to Release an Electric Car with
Separately from Scanning ..............................1
10-Minute Fast Charging in 2021....................4
1.1M PPP Loans Forgiven So Far.......................30
U.S. Car Rental Revenue Dives 27.4% in 2020 ..36
Fisher Acura.................................................... 17
Stevinson Toyota West .................................... 17
2009 redux? Biden cites ‘urgent’ need for
U.S. Deficit 60.7% Higher Than This Time
Fisher Honda .................................................. 17
Subaru Wholesale Parts Dealers...................... 31
Flatirons Subaru ............................................. 17
Toyota of Laredo ............................................. 24
Ford Wholesale Parts Dealers .......................... 33
Toyota Wholesale Parts Dealers....................... 30
Close Year on High Note ................................39
Fowler Honda ................................................... 6
Volkswagen Wholesale Parts Dealers .............. 39
Watch Out for Odometer Fraud..........................19
Freeman Mazda .............................................. 16
Young Chevrolet .............................................. 22
his $1.9 trillion stimulus..................................1 39% of U.S. Reduced, Eliminated Insurance ......36 A Closer Look at Calibration Documentation and Technical Changes .................................38
Last Year .........................................................1 Used-Car Sales Likely Down for 2020, but
autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 3
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CREF Board Welcomes New Members The C ollision R ep air E d ucation F ound ation ( C R E F ) announced the ap p ointment of six new memb ers to its B oard of Trustees in 2 0 2 0 . Through the guid ance, sup p ort and d irection of the B oard of Trustees, C R E F can continue its sup p ort of high school and college collision p rograms, stud ents and instructors across the country , and ad d ress the ind ustry ’ s need f or p rop erly trained , entry-level staff. The six B oard of Trustees memb ers w ho j oined in 2 0 2 0 includ e T om B rown, 3 M ; P aul Folino, L K Q C orp oration; B renda H ogen, P arts Trad er; Ken H udson, F armers I nsurance; Scott Kohl, L ib erty M utual I nsurance; and Sandee L indorf er, A llstate I nsurance C omp any . C omp anies look ing to p artner w ith C R E F in sup p orting local high school and college collision p rograms can email inf o@ ed - f ound ation. org. Source: CRE F
Tesla Full Self-Driving Subscriptions Get a Tentative Release Date by Simon Alvarez, Teslarati
A recent tw eet f rom E lon M usk has revealed a tentative release d ate f or Tesla’ s F ull S elf - D riving suite sub scrip tions. A nd if the C E O ’ s estimates are correct, it w ould mean that a good numb er of Tesla ow ners w ill have the op p ortunity to sub scrib e to the
“I should say, it will still make sense to buy FSD as an option as in our view, buying FSD is an investment in the future,” — Elon Musk comp any ’ s b est ad vanced d river- assist f eatures as they are need ed . O n D ec. 2 0 , Tesla enthusiast @ p ad geuk inq uired on Tw itter if F S D could b e p aid f or through an annual p lan. A ccord ing to the Tesla f an, it d oesn’ t really mak e sense to op t f or the f ull p rice of F S D if a vehicle is leased . R esp ond ing to the inq uiry , M usk noted that F S D sub scrip tions are ind eed coming soon. “ A b solutely . W e w ill release F S D sub scrip tion early
Congressional Leaders Reach Deal on New COVID-19 Stimulus Relief Package by Dan McCaleb, The Center Square
C ongressional lead ers have agreed to a new stimulus p ack age that w ill p rovid e more aid to struggling small b usinesses and send a second round of d irect p ay ments to A mericans. S en. M aj ority L ead er M itch M cConnell and others confirmed the $ 9 0 0 b illion coronavirus relief d eal D ec. 2 0 . I f ap p roved b y C ongress and signed b y P resid ent D onald Trump , the measure w ill includ e $ 6 0 0 in d irect p ay ments to ad ults and child ren f rom q ualif y ing household s, more than $ 2 8 0 b illion in f orgivab le loans to small b usinesses through a renew ed P ay check P rotection P rogram, and $ 3 0 0 a w eek in f ed eral unemployment benefits on top of state benefits. “ I b elieve I can sp eak f or all sid es w hen I say I hop e and ex p ect to have a final agreement nailed d ow n in a matter of hours, ” M cC onnell said on the Senate oor. “At this p oint, w e’ re d ow n to the last few differences that stand between struggling A mericans and their ma-
nex t y ear, ” M usk w rote. A s the p rice of Tesla’ s F ull S elf - D riving suite increases, the id ea of F S D sub scrip tions b ecomes a lot more comp elling f or consumers. C urrently , Tesla’ s entire F S D suite costs a w hop p ing $ 1 0 , 0 0 0 . W ith the release of the F S D b eta, Tesla has tak en some solid step s tow ard s autonomy , b ut there is
j or rescue p ack age they need and d eserve. ” The p rop osed legislation also includ es ab out $ 2 5 b illion in rental assistance and an ex tension of an eviction moratorium p ut in p lace earlier this y ear, w hich it w as set to ex p ire this month. A n ad d itional $ 8 2 b illion w ould b e set asid e f or schools and colleges to p rep are to saf ely reop en classrooms. I t also w ould help p ay f or the d istrib ution of C O V I D - 1 9 vaccines. M od erna’ s vaccine w as ap p roved f or emergency use b y the U . S . F ood and D rug A d ministration F rid ay , a week after fizer’s vaccine also received emergency use authoriz ation. “ W e are going to crush the virus and p ut money in the p ock ets of the A merican p eop le, ” H ouse S p eak er N ancy P elosi and S enate M inority L ead er Chuck Schumer said in a j oint statement. We thank T he Center Sq uare for reprint permission.
AUTOBODY
still a lot of w ork to b e d one. This mak es F S D ’ s $ 1 0 , 0 0 0 p rice more of an investment f or the sy stem’ s cap ab ilities in the f uture. I t is no surp rise some Tesla customers w ho lease their vehicles are hesitant to p ay the f ull p rice of F S D f or their vehicles. A sub scrip tion service f or the F ull S elf - D riving sy stem, how ever, mak es a lot of p ractical sense, since the ad vanced d river- assist f eatures w ould only req uire p ay ment w hen
they are need ed . This could b e valuab le f or Tesla customers w ho only tak e long trip s a f ew times every y ear, as F S D f unctions such as N avigate on A utop ilot can mak e long d rives easier. I t remains to b e seen ex actly how much a sub scrip tion to F ull S elf - D riving w ould cost. Tesla ex ecutives have emp hasiz ed that ultimately, it is still a far better financial d ecision to p urchase F S D outright. This w as ex p lained b y C F O Z achary Kirkhorn in the Q 1 2 0 2 0 earnings call. “ I should say , it w ill still mak e sense to b uy F S D as an op tion as in our view , b uy ing F S D is an investment in the f uture, ” M usk said d uring the earnings call. “ A nd w e are confident that it is an investment that will pay off to the consumer—to the benefit of the consumer.” We thank T eslarati for reprint permission.
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Toyota to Release an Electric Car with 10-Minute Fast Charging in 2021 A
by Loukia Papadopoulos, Interesting Engineering
new rep ort revealed Toy ota p lans to unveil an electric vehicle w ith a new solid - state b attery b y 2 0 2 1 . I t p romises a 3 1 0 - mile ( 5 0 0 k m) range in a single charge, and a rather rap id recharge f rom z ero to f ull in 1 0 minutes. “ The technology is a p otential cure- all f or the d raw b ack s f acing electric vehicles that run on conventional lithium- ion b atteries, includ ing the relatively short d istance traveled on a single charge as w ell as charging times, ” states the rep ort. “ Toy ota plans to be the first company to sell an electric vehicle eq uip p ed w ith a solid - state b attery in the early 2 0 2 0 s. The w orld ’ s largest automak er w ill unveil a p rototy p e nex t y ear. ” S olid - state b atteries are b elieved to b e a lot saf er than the more common lithium- ion ones. They also have more p otential f or higher energy d ensity - - - the energy a b attery can d eliver comp ared to its w eight. H ow ever, as of y et, they have not b een p rod uced in largescale and at a reasonab le enough
p rice p oint to b e comp etitive in the lithium- ion b attery d ominated mark et. C ould Toy ota have achieved this lof ty goal? I t’ s hard to tell at the moment as w e have y et to hear ab out the numb er of cy cles their solid - state b atteries can achieve and how their cap acity hold s up at different temperatures. These two have p reviously b een a source of p rob lems w ith novel b atteries. N ik k ei A sia d oes mention Toy ota has more than 1 , 0 0 0 p atents involving solid - state b atteries. W e’ d lik e to b elieve that is energy and time w ell sp ent. I n a glob al shif t to more eco- f riend ly op tions, electric vehicles w ill soon lik ely b e a necessity rather than a more attractive op tion. Tesla seems to have the lead on sup p ly ing all those new vehicles b ut that may change over time of course. I t seems Toy ota is w ork ing hard to b ecome comp etitive in the electric vehicle scene. I f it d oes ind eed master the art of solid - state b atteries, it w ill lik ely secure itself a unique profitable place. We thank I nteresting E ng ineering for reprint permission.
4 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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1/18/2021 4:26:17 PM
Universal Technical Institute Announces the Purchase of its Avondale, AZ, Campus U niversal Technical I nstitute, a lead ing p rovid er of transp ortation technician training, announced the p urchase of its A vond ale, A Z , camp us and p lans to consolid ate the op erations of its P hoenix - b ased M otorcy cle M echanics I nstitute ( M M I ) into this f acility . S ep arately , U TI announced that the comp any ’ s ind ivid ual U TI and M M I O rland o camp us f acilities will be consolidated and reconfigured into one site. “ These initiatives are p art of our ongoing real estate op timiz ation strategy and consistent w ith our f ocus on utiliz ing our strong b alance sheet to sup p ort our grow th and diversification plans,” said UTI C E O Jerome G rant. “ A s w e enhance our b lend ed learning mod el, w here stud ents p articip ate in instructor- led lectures and d emonstrations online and comp lete their hand s- on training in our lab s, w e’ re also ab le to consolid ate and ref ormat space to decrease fixed expenses, support new offerings and allow f or grow th to meet increasing stud ent interest and continuing emp loy er d emand f or our grad uates.
“ B y comb ining our A vond ale U TI and P hoenix M M I camp uses, A vond ale w ill b ecome our largest camp us in terms of siz e, numb er of stud ents and b read th of p rograms, ” G rant ex p lained . “ D e-
camp us site, currently comp rised of ap p rox imately 1 7 3 , 0 0 0 sq uare f eet, and consolid ating the M M I op erations into the A vond ale camp us, will be complete by the end of fiscal 2 0 2 2 .
“By combining our Avondale UTI and Phoenix MMI campuses, Avondale will become our largest campus in terms of size, number of students and breadth of programs,” — Jerome Grant p loy ing cap ital to acq uire this strategic site will yield significant economic benefits, and we are excited ab out the f orw ard momentum w e are b uild ing tow ard f urther grow th, diversification and enhancement of our student offerings.” U TI acq uired the A vond ale camp us, comp rised of a 2 8 3 , 0 0 0 - sq uare f oot sp ecialty use b uild ing on a 2 3 - acre p arcel of land , in an all cash transaction f or $ 4 4 . 5 million. U TI has b een the sole occup ant of the f acility since it w as b uilt f or the comp any in 2 0 0 4 . V acating the P hoenix M M I
O nce f ully imp lemented , the comp any ex p ects to red uce annual occup ancy and related op erating ex p enses b y ap p rox imately $ 6 . 5 million f rom p urchasing the A vond ale camp us, vacating the P hoenix M M I camp us site and consolid ating the M M I op erations into the A vond ale camp us. The ex p ense red uctions w ill b e p hased in over the nex t tw o y ears and are ex p ected to b e f ully realiz ed by the end of fiscal 2022. I n O rland o, F L , U TI currently has p lans to consolid ate its motorcy cle and marine training
Tesla Gigafactory Texas Earns Austin Chamber a Deal of the Year Award by Simon Alvarez, Teslarati
A mid st the rap id construction of the G igaf actory Tex as comp lex , Tesla’ s up coming C y b ertruck f actory has started earning accolad es of its ow n. This w as highlighted recently w hen the G reater A ustin C hamb er of C ommerce w as aw ard ed B usiness F acilities’ 2 0 2 0 D eal of the Y ear G old A w ard f or its success in securing Tesla’ s G igaf actory Tex as p roj ect. I n a b log p ost, corp orate economic p ub lication B usiness F acilities noted the Tesla d eal w ould lik ely p ush A ustin f orw ard as one of the nation’ s emerging manuf acturing hub s. This should help the area in a variety of w ay s, p articularly w ith the estimated 5 , 0 0 0 j ob s the pro ect will offer. “ The p lant that w ill b uild Tesla’s first entry into the truck market w as one of the most coveted p roj ects of the y ear. The C y b ertruck assemb ly p lant vaults A ustin into the top tier of automotive manuf acturing hub s, ” E d itor in C hief Jack R ogers noted .
Tesla’ s G igaf actory Tex as, b eing b uilt in southw estern Travis C ounty , is ex p ected to start its op erations w ith the p rod uction of the
low ing the C y b ertruck F actory in B F ’ s D eal of the Y ear A w ard s is L ouisiana E conomic D evelop ment’ s p roj ect w ith G rö n F uels,
“The plant that will build Tesla’s first entry into the truck market was one of the most coveted projects of the year. The Cybertruck assembly plant vaults Austin into the top tier of automotive manufacturing hubs,” — Jack Rogers M od el Y , an all- electric crossover that could outsell the M od el S , M od el 3 and M od el X comb ined . Based on recent drone yovers of the G iga Tex as site, it ap p ears structures are now b eing b uilt to accommod ate the vehicle, includ ing a massive stamp ing area. P rod uction of the highly - anticip ated Tesla C y b ertruck is ex p ected to b egin sometime this y ear as w ell. The Tesla G igaf actory Tex as p roj ect b eat out another high- p rofile initiative begun last year. Fol-
w hich involves the creation of a massive $ 9 . 2 b illion comp lex ex p ected to p rod uce low - carb on d iesel f uel f rom renew ab le sources. The $ 9 . 2 b illion d iesel f uel p roj ect is hailed as one of the largest in 2 0 y ears, ex p ected to b ring a total of 5 , 5 8 5 new d irect and ind irect j ob s to L ouisiana’ s C ap ital R egion. O nce op erational, the G rö n F uels site is ex p ected to p rod uce up to 1 8 0 , 0 0 0 b arrels p er d ay of low - carb on d iesel.
p rograms into one location w ith its automotive, d iesel and manuf acturer ad vanced training p rograms, red ucing the current aggregate 2 6 3 , 0 0 0 - sq uare f eet b y an estimated 7 5 , 0 0 0 sq uare f eet. U TI is evaluating lease and p urchase op tions f or the necessary sp ace to f acilitate the consolid ation. The comp any ex p ects to comp lete the O rland o consolid ation and reconfiguration by the end of fiscal 2 0 2 1 . A d d itional d etails w ill b e p rovid ed once the O rland o transactions are comp leted . I nd ustry and emp loy er p artners continue to rep ort strong d emand f or U TI ’ s grad uates, and the comb ined camp uses in A riz ona and F lorida will offer training for automotive, d iesel and motorcy cle technicians, as w ell as ad vanced ed ucation in the vehicles and technology of lead ing manuf acturer b rand s lik e B M W , F ord , C ummins, H arley - D avid son, M ercury M arine and V olvo. The Avondale campus also offers courses in w eld ing and the O rland o camp us is the sole location f or the M M I M arine p rogram. Source: U T I
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6 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 7
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Continued from Cover
U.S. Deficit
Couple Arrested, Charged with Breaking into Smithfield, UT, Auto Body Shop
D ue to ongoing state lock d ow ns, millions of A mericans are still out of w ork , and tax revenues also d rop p ed , w hile at the same time, the d emand by states for federal financial support d ramatically increased . The Treasury rep orts that outlay s in D ecemb er w ere a record $ 4 8 9 . 7 b illion; receip ts w ere $ 3 4 6 . 1 b illion. The D ecemb er total ex clud es the $ 9 0 0 b illion C O V I D - 1 9 sp end ing b ill, w hich includ ed $ 6 0 0 p ay ments to ind ivid uals, ex tend ed unemp loy ment benefit programs, and directed hund red s of millions of d ollars to p rograms overseas, ab out w hich critics also comp lained . F rom O ctob er to D ecemb er 2020, unemployment benefits totaled $ 8 0 b illion. D uring the same time p eriod last y ear, they totaled $ 5 b illion. P rior to the $ 9 0 0 b illion sp end ing bill, the Congressional Budget Office forecast that 2021’s deficit will total $ 1 . 8 trillion, and remain ab ove $ 1 trillion every y ear though 2 0 3 0 . We thank T he Center Sq uare for reprint permission.
by Will Feelright, Cache Valley Daily
A
L ogan, U T, coup le have b een arrested and charged w ith b urglarizing a Smithfield, UT, business. R yan P . Dean and M elissa K. Christiansen w ere b ook ed early D ec. 2 8 into the C ache C ounty J ail. According to an arrest affidavit, Smithfield City police officers w ere called to an auto b od y and p aint shop the night of D ec. 2 7 . The b usiness ow ner rep orted C hristiansen and D ean had f orced their way into his office. They alleged ly took k ey s and titles to tw o vehicles, and around 5 0 silver coins. Officers reported Christiansen w as still on the scene w hen they arrived . The 4 4 - y ear- old L ogan w oman ad mitted to having the vehicle titles in her p urse. S he returned them to law enf orcement and w as p laced und er arrest. A s the investigation continued , C hristiansen rep orted D ean had b een w ith her w hen they entered into the b usiness originally and stole the items. The 3 9 - y ear-
Louisiana Dealership Helps Students Realize Dreams of Auto Industry Career by Auto Remarketing Staff
E ach y ear, L ak e C harles Toy ota contrib utes a scholarship to the S O W E L A S chool of Transp ortation to help p rosp ective stud ents chase their d reams. L ak e C harles Toy ota, located in L ak e C harles, L A , has given more than $ 5 0 , 0 0 0 tow ard the local technical community college over the p ast nine y ears. That charitab le w ork continued recently , as L ak e C harles Toy ota said in late D ecemb er it p resented a check f or a $ 5 , 0 0 0 scholarship to the school. This scholarship p rovid es an op p ortunity f or low - to mod erate- income stud ents enrolled in the automotive maintenance technology p rogram at the S O W E L A S chool of Transp ortation to p ursue an automotive- ind ustry career. The tw o- y ear p rogram p rovid es stud ents w ith training and skills to become certified in the automotive ind ustry . A ccord ing to L ak e C harles
Toy ota, many of the p rogram’ s grad uates b ecome mechanics or rep air mechanics. O r, they might choose to enter other auto ind ustry specialized fields.
a p ub lic d ef end er af ter telling the court she had n’ t w ork ed since 2 0 1 6 . C ache C ounty D ep uty A ttorney Griffin Hazzard requested C hristiansen b e d enied b ail. H e ex p lained the susp ect is also f acing f elony charges in S alt L ak e. J ud ge Spencer W alsh ord ered C hristiansen to remain in j ail temp orarily . H e ord ered her to ap p ear again f or a d etention hearing J an. 4 . M inutes later, C ache County sheriff’s deputies told the court D ean Booking photos for Ryan P. Dean and Melissa K. ref used to ap p ear f or Christiansen. Credit: Courtesy: Cache County Jail the vid eo arraignment hearing. J ud ge W alsh ord ered D ean to b usiness and stole the items. H e also remain in j ail and sched uled w as also p laced und er arrest. another hearing f or J an. 4 . C ourt record s show p rosecuB oth C hristiansen and D ean tors charged b oth susp ects w ith could f ace up to one y ear in p rison b urglary and thef t. C hristiansen w as arraigned in if f ound guilty . 1 st D istrict C ourt the af ternoon of We thank the Cache V alley D aily D ec. 2 8 , ap p earing b y w eb conf erfor reprint permission. ence f rom j ail. S he w as assigned old L ogan man w as not at the b usiness D ec. 2 7 and w as later located at the coup le’ s L ogan ap artment. According to the affidavit, D ean ad mitted he w as w ith C hristiansen w hen they b rok e into the
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The d ealership said the p rogram’ s grad uates w ill b e immed iately emp loy ab le at local d ealership s. They w ill also b e emp loy ab le at automotive maintenance and rep air comp anies. A lmost 1 5 % of L ak e C harles Toy ota’ s S ervice C enter emp loy ees are grad uates of the S O W E L A automotive maintenance technology p rogram. We thank Auto Remarketing for reprint permission.
1 2 3 4 5 6 7 8
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10 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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DEG Welcomes ABAT as Newest Gold Level Sponsor The D atab ase E nhancement G atew ay ( D E G ) on J an. 5 introd uced its new est G old level sp onsor, the A uto B od y A ssociation of Tex as ( A B A T. ) D E G memb ers are ab le to use the f ree online resource to help id entif y , ad d ress and resolve omitted and inaccurate inf ormation f ound in the estimating p rograms through a stand ard iz ed inq uiry p rocess f or all three estimating sy stems. The d atab ase can also b e used to verif y and d ocument necessary op erations that have b een ad d ressed b y other users, and confirmed by the information provider. “ W e are all really p roud to recogniz e A B A T f or sp onsoring w ith a generous contrib ution to help invest in ind ustry resources that are having a p ositive imp act on their memb ership , ” said D E G A d ministrator Danny G redinberg. “ A B A T’ s sup p ort of our p rogram help s to maintain the D E G as a f ree resource f or the collision rep air ind ustry , and is a true testament to the commitment
the A B A T b oard of d irectors has mad e to their memb er b ase. ” “ A B A T is ex cited to b e a G old S p onsor of the D E G , ” said A B A T C hairman B url R ichards. “ M any of us on the b oard have b een active users and have sp ent a great d eal of energy ed ucating our memb er shop s ab out the value of the D E G and w hat it p rovid es to our ind ustry f or a long time now . W e are ex cited to f ormally p artner w ith the organiz ation and give b ack in a meaningf ul w ay . ” D E G is f und ed b y memb er d ollars f rom the S ociety of C ollision R ep air S p ecialists ( S C R S ) and the A lliance of A utomotive S ervice P rovid ers ( A A S P ) , as w ell as b y corp orate sp onsorship s f rom group s such as P P G , C ollision A d vice, A S A , S p anesi A mericas, W M A B A , A L L D A TA , R ed w ood C ity A uto B od y , N y lund s C ollision C enter, A uto B od y H aw aii and now A B A T. Source: D E G
www.autobodynews.com
The Boring Company Pushes TX Expansion with New Lease Near Gigafactory Texas by Maria Merano, Teslarati
E lon M usk’ s B oring C omp any has leased an ind ustrial sp ace w ith tw o buildings in ugerville in Travis C ounty , TX . O n D ec. 7 , The B oring C o. registered f or renovation w ork at 15 09 Impact Way in ugerville w ith the Tex as D ep artment of L icensing and R egulation.
The building that appears to have been leased by The Boring Company in Pflugerville, TX. Credit: crexi.com via the Austin Business Journal
The ugerville industrial sp ace is less than 2 0 miles f rom D el V alle, TX , w here Tesla’ s C y b ertruck G igaf actory is current-
ly b eing constructed , rep orted the A ustin B usiness J ournal. The sp ace consists of tw o b uild ings on 1 4 acres of land . R ep orts ab out The B oring C o. coming to Tex as sp read last month, p artly b ecause the tunneling startup listed a numb er of j ob p ostings f or C entral Tex as. The recent lease of the ind ustrial sp ace in ugerville would support the rumors. The B oring C o. is set to finish and launch its as egas C onvention C enter ( L V C C ) L oop in S in C ity soon. I n O ctob er, M usk said the L V C C L oop w ould b e read y “ in a month or so. ” Musk announced his official move to the L one S tar state recently . P art of the reason he d ecid ed to move w as b ecause he traveled to Tex as of ten f or b usiness at S p aceX ’ s B oca C hica site and the Tesla C y b ertruck G igaf actory . W ith this new d evelop ment, it w ould ap p ear M usk w ould soon have another b usiness- related reason to stay in Tex as. We thank T eslarati for reprint permission.
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FDA Approves Moderna’s COVID-19 Vaccine a Week After Granting Emergency Use for Pfizer’s by Dan McCaleb, The Center Square
The U . S . F ood and D rug A d ministration ( F D A ) on D ec. 1 8 granted emergency use authoriz ation to M od erna’ s new C O V I D - 1 9 vaccine, the second ap p roval of a coronavirus vaccine in a w eek . “ The emergency use authoriz ation allow s the vaccine to b e d istrib uted in the U . S . f or use in ind ivid uals 1 8 y ears and old er, â€? the F D A announced on Tw itter. “ The F D A has d etermined that the # C O V I D 1 9 vaccine has met the statuatory criteria f or issuance of an E A U . The totality of the availab le d ata p rovid es clear evidence it may be eective in p reventing # C O V I D 1 9 . â€? A b out 6 million d oses of the M od erna vaccine are ex p ected to b e ship p ed around the country the w eek of D ec. 2 1 . ďŹ zer’s coronavirus vaccine, w hich it d evelop ed w ith B ioNTech, was the ďŹ rst to receive emergency use authoriz ation w hen the F D A ap p roved it D ec. 1 1 . Tens of thousand s of health
Continued from Cover
‘Who Pays for What’ shoot D TC s, â€? A nd erson said . “ D iagnostic lab or time should really b e sep arated f rom the scan lab or time b ecause there are j ust too many variab les involved . “ J ust as j ud gment times vary b ased on the siz e and location of the d amage and the sub strate involved , d iagnostic time varies as w ell, â€? A nd erson continued . “ I sn’ t the time it tak es to research one d iagnostic trouble code dierent from researching ďŹ ve “ A nd it’ s not j ust look ing up the cod e. Y ou also have to navigate the O M repair owchart to determine w hat the most p rob ab le cause is, â€? he said . “ I f there are several p ossible causes, it might be the ďŹ rst one y ou try , or the last one. A ll this tak es time. â€? The latest q uarterly “ W ho P ay s for What â€? survey is now open through J anuary , f ocusing on “ not- includedâ€? reďŹ nish labor operations. S hop s can tak e the survey at http s: / / w w w . survey monk ey . com/ r/
care w ork ers across the country have already received their ďŹ rst dose of ďŹ zer’s vaccination. Both Moderna’s and ďŹ zer’s vaccines req uire tw o d oses tak en a f ew w eek s ap art. The tw o vaccines p roved to be about 95% eective during trials. W ith the ap p roval of M od erna’ s vaccine, more d oses w ill b e availab le throughout the U . S . H ealth care w ork ers and resid ents and sta of long-term care facilities are ďŹ rst in line to receive the vaccines. A straZ enica and J ohnson & J ohnson also have vaccines in the accelerated ap p roval p ip eline. We thank T he Center Sq uare for reprint permission.
SUBSCRIBE TO OUR YOUTUBE CHANEL: Autobody News 6 JN H 3 P F S urvey p articip ants receive a f ree report with complete survey ďŹ ndings along w ith analy sis and resources to help shop s b etter und erstand and use the inf ormation p resented . A nd erson said the survey , w hich w ill tak e ab out 1 5 to 2 0 minutes, can b e comp leted b y any one in a shop f amiliar w ith the shop ’ s b illing p ractices and the p ay ment p ractices of at least some of the largest national insurers. E ach shop ’ s ind ivid ual resp onses are held in the strictest conďŹ dence only aggregated d ata is released . The results of p revious survey s are also availab le online at http s: / / w w w . crashnetw ork . com/ collisionad vice. C ollision A d vice ( w w w . C ollisionA d vice. com) is an ind ep end ent training and consulting ďŹ rm featuring some of the most resp ected and ex p erienced ex p erts in the collision rep air ind ustry . C R A S H N etw ork ( w w w . C rashN etw ork . com) is a sub scription newsletter oering news and inf ormation not availab le f rom other ind ustry sources. Source: CRASH N etw ork
Freeman Joins NABC The N ational A uto B od y C ouncil announced J an. 1 3 that Sandi Freeman has j oined the organiz ation as the p rogram manager f or the N A B C R ecy cled R id es initiative. F reeman w ill lead the p op ular N A B C p rogram that has gif ted more than 2 , 6 0 0 vehicles to f amilies in need since it w as launched in 2 0 1 2 . F reeman w as p reviously the manager of rep lacement accounts f or H ertz , w here she w ork ed f or more than 2 0 y ears. S he b rings a w ealth of ex p erience in the automotive ind ustry , along w ith a p assion f or p hilanthrop y , to the p osition. F reeman rep laces longtime N A B C team memb er L inda Sulkala, w ho retired at the end of 2 0 2 0 . To learn more ab out the N A B C R ecy cled R id es p rogram, visit http s: / / nationalautob od y council. org/ p rograms/ recy cled - rid es/ . Source: N AB C
PPG Appoints New VP, CIO P P G announced J an. 1 1 the ap p ointment of B haskar R amachandran as vice p resid ent and chief information oďŹƒcer CIO. R amachand ran w ill succeed Chris Caruso, current vice p resid ent, I T, w ho has announced his intent to retire, eective March 1 . R amachand ran j oins P P G f rom J ab il I nc. , an A merican w orld w id e manuf acturing services comp any . A s vice p resid ent, I T and C I O of the comp any ’ s largest d ivision, he led the creation of a transf ormative strategy to introd uce a f ully cloud b ased connected eco- sy stem to make production more eďŹƒcient and cost-eective. rior to oining J ab il in 2 0 1 5 , R amachand ran p rogressed through I T lead ership roles of increasing resp onsib ility at Tex tron, I nc. , a multi- ind ustry comp any , w here he w as accountab le f or strategy d evelop ment and op erational elements of Tex tron’ s S A P center of ex cellence. I n 2 0 1 3 , he w as ap p ointed V P , I T and C I O f or the comp any ’ s d ef ense and intelligence segment. Source: P P G
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autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 13 SATA X5500.indd 1
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Continued from Cover
$1.9 trillion stimulus now is get C ongress to come together – in the mid d le of another b itter impeachment fight. But in announcing the initiative Thursd ay evening, B id en d id n’ t mention the p artisan b attle currently consuming C ap itol H ill. I nstead , he emp hasiz ed in a p rime- time sp eech that the d ark w inter he w arned ab out d uring the camp aign had arrived . C O V I D cases are sp ik ing across the country . The economy is f altering. The nation, the p resid ent- elect argued , simp ly can’ t afford not to act. Y es, it w ill b e ex p ensive. P erhaps remembering the fights over the 2 0 0 9 stimulus, B id en d id n’ t shy aw ay f rom that f act. W ith interest rates low , he said it w as a great time to b orrow even though it guarantees ad d ing more to the ever- grow ing national d eb t. J ust a f ew minutes into his remarks, he said that “deficit sp end ing” w asn’ t j ust in ord er. I t w as “ more urgent than ever” to mak e “smart fiscal investments.” “ The return on these investments – in j ob s, in racial eq uity – w ill p revent long- term economic damage and the benefits will far surp ass the costs, ” B id en argued b ef ore ad d ing that top economists had conclud ed that sp end ing more now to sp ur the economy w ould ensure “ our d eb t situation w ill b e more stab le, not less stab le, if w e seiz e this moment w ith vision and p urp ose. ” F irst, the p resid ent- elect req uested $ 4 0 0 b illion in ad d itional f und ing to ad d ress the health crisis. A ccord ing to his p lans, the money w ould b e sp ent rushing the vaccine into the arms of A mericans at community vaccination sites nationw id e, scaling up testing and tracing to track and contain the d isease, and investing in the inf rastructure and sup p lies need ed to reop en schools saf ely . O nce mad e saf e f or stud ents and staff, Biden wants the ma ority of A merican stud ents f rom k ind ergarten through eighth grad e b ack in the classroom in his first 100 days. H e also p romised to lay out a vaccination p lan “ to correct course and meet our goal of 1 0 0 million shots by the end of our first 100 days.” S econd , B id en req uested $ 1
trillion in f amily relief . The b iggest item in this sp end ing b uck et: a $ 1 , 4 0 0 p er- p erson check ( a p ay ment to b e ad d ed on top of the $ 6 0 0 alread y agreed to b y law mak ers) . H e w ants housing assistance and nutrition assistance, more money f or sub sid iz ed child care, an ex tension of unemp loy ment insurance through S ep temb er, and a $ 3 , 0 0 0 tax cred it f or every child und er 1 7 y ears old . W hat’ s more, the incoming p resid ent w ants a $ 1 5 minimum w age: “ N o one w ork ing 4 0 hours a w eek should still b e b elow the p overty line. ” F inally , the p resid ent- elect w ill ask C ongress f or an ad d itional $ 4 4 0 b illion to p rovid e relief f or small b usinesses and to shore up struggling state and city and trib al governments. B id en p rop oses no less than $ 1 5 b illion in d irect grants as w ell as $ 1 7 5 b illion in government- b ack ed lend ing f or small b usinesses. H e p romised that the f ocus w ould b e on “ M ain S treet, ” w ith p articular emp hasis on ensuring that “ minority - ow ned small b usinesses and w omen- ow ned small b usinesses finally having equal access to the resources they need to reop en and reb uild . ” H e also p romised emergency f und ing f or essential w ork ers lik e municipal firefighters and police, w arning that “ the p eop le p utting their lives at risk are the very p eop le now at risk of losing their j ob s. ” Biden offered a broad sketch of the rescue p ack age in his 2 5 - minute ad d ress w hile his team p assed along a 1 -page fact sheet to fill in more of the d etails. I t w ill b e up to C ongress to put esh on these legislative b ones. W hile D emocrats hold the S enate af ter their tw in victories in G eorgia, their grasp is tenuous. The chamb er sp lits 5 0 - 5 0 , meaning that V ice P resid ent- elect H arris w ould cast tie- b reak ing votes. B ut p ow er- sharing w ill still b e a f act of lif e in the chamb er and the incoming p resid ent d id n’ t offer details about how the ambitious agend a w ould b ecome more than an asp iration. B id en w asn’ t short on soaring rhetoric, how ever. “ W e d id n’ t get into all this overnight. W e w on’ t get out of it overnight, and w e can’ t d o it as a sep arated and d ivid ed nation, ” he said . “ The only w ay w e can d o it is to come together. ” This, along w ith the outlined
sp end ing, w as enough to have congressional D emocrats cheering. “ H ouse and S enate D emocrats ex p ress gratitud e tow ard and look f orw ard to w ork ing w ith the P resid ent- elect on the rescue p lan, ” M aj ority L ead er Chuck Schumer and H ouse S p eak er P elosi said in a p ress release. The p air herald ed the sp end ing as “ the right ap p roach” and a sign that D emocrats “ have a p artner at the W hite H ouse that und erstand s the need to tak e sw if t action to ad d ress the need s of struggling communities. ” E ven the p arty ’ s most p rominent p rogressives w ere imp ressed w ith the d ollar amount. D emocratic- socialist B ernie Sanders, B id en’ s 2 0 2 0 camp aign rival, released a statement calling the p lan “ much need ed ” and p led ged to w ork w ith his colleagues in C ongress to get it p assed . R ep ub licans w ere p red ictab ly unimp ressed . R ep . Kev in B rady, the rank ing memb er on the H ouse W ay s and M eans C ommittee, said B id en had “ launched y et another economic blind buffalo that does nothing to save M ain S treet. ” The R ep ub lican S tud y C ommittee, the
largest G O P caucus in the H ouse, tw eeted that the stimulus check s alone in the p lan “ cost as much as the in ation ad usted cost of World W ar I . ” This sud d en red iscovery of the d angers of too large a national d eb t hark ed b ack to the O b ama d ay s w hen the G O P p rid ed itself on b eing the party of fiscal responsibility. C ongressional R ep ub licans regularly w arned then that the D emocrat in the White House was a pro igate sp end er mortgaging the f uture of generations to come. I t’ s an old conservative chestnut that R ep ub licans only seem to rememb er w hen Democrats occupy the Oval Office: U nd er P resid ent Trump , the d eb t b allooned b y $ 7 . 8 trillion. F amiliar w ith those old arguments, B id en moved to head them off Thursday evening. “I know w hat I j ust d escrib ed w ill not come cheap ly , ” he said . “ B ut f ailing to d o so w ill cost us d early – the consensus among lead ing economists is we simply cannot afford not to do it. ” This w on’ t b e his only sp end ing p lan either. H e p romised that this See $1.9 trillion stimulus, Page 19
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Driven Brands Collision Group Stands ‘UNIT3D’ by Stacey Phillips
E arly in D ecemb er, D riven B rand s C ollision G roup held a virtual summit themed “ U N I T3 D . ” D uring the event, sp eak ers talk ed ab out the challenges the ind ustry is f acing and the imp ortance of unity among the D riven B rand s’ f ranchises to p ave a p ath f orw ard . A f ter w elcoming attend ees to the event, M ichael M acaluso, D riven B rand s’ group p resid ent and E V P , p aint, collision & glass, d iscussed the imp ortance of strength f or the comp any ’ s f amily of f amily b usinesses. “ This y ear has certainly b een try ing b ut ab solutely rew ard ing, ” said M acaluso. “ W e’ ve ad j usted , w e’ ve p ivoted and w e’ ve p ersevered . ” M acaluso said that most imp ortantly , throughout 2 0 2 0 , D riven B rand s has tried to ensure the saf ety and health of the team, customers, f ranchisees and p artners w ithin the netw ork . G uest sp eak er M ike A nderson, ow ner of C ollision A d vice, d iscussed the state of the ind ustry and then held a p anel d iscussion f ocused on current ind ustry issues d uring the p and emic. “ I und erstand that there are challenges in our ind ustry right now w ith C O V I D … ” said A nd erson. “ Y ou don’t have to have it all figured out. A ll y ou have to d o is b e w illing to reach out to other p eop le and say , ‘ C an y ou help me? ’ I t’ s really that simp le. ” H e p ointed out how the D riven B rand s f amily has recently grow n and ad vised attend ees not to und erestimate the value, imp ortance and strength of the f ranchisees reaching out to one another to help accomp lish a goal. A n ad d itional k ey note sp eak er w as N ancy Friedman, f ound er and chairman of the Telep hone D octor. F ried man shared tip s and techniq ues on the “ G old en N uggets of S ales & C ustomer S ervice” d uring the p and emic. S he encouraged attend ees to p rep are f or the unex p ected , emb race change, d o something ex tra, return p hone calls and mak e sure not to b e too b usy . Throughout the event, b rand up d ates w ere given b y comp any lead ers. “ 2 0 2 0 has b een a y ear to f orget, ”
said L and on Thomp son, vice p resid ent of op erations, F ix A uto U S A . “ A ll b usinesses have f aced challenging cond itions this y ear, b ut f ew have really gone through w hat w e have. ” H e p ointed to the three- and - ahalf - y ear d isp ute w ith M ond o that w as resolved F eb . 5 . H e also talk ed ab out the acq uisition b y D riven B rand s six w eek s af ter the coronavirus b rok e out.
D esp ite the challenges w ith C O V I D - 1 9 , 2 1 new f ranchise locations w ere ad d ed over the y ear. “ W e’ ve p rid ed ourselves on b eing great p erf ormers and not only have w e sustained our p erf ormance, w e’ ve imp roved it, ” Thomp son said . M ark W ahlin, V P , f ranchise d evelop ment & op erations, A B R A , said 2 0 2 0 f or A B R A actually started in O ctob er 2 0 1 9 , w hen D riven B rand s acq uired the f ranchise. S ince the p and emic, W ahlin noted , there has b een ad d itional w ork at the shop level related to the saf ety p rotocols f or b oth emp loy ees and consumers. “ I t w as an amaz ing shif t and through it all, the centers stay ed op en, ” he said . “ The comeb ack has b een amaz ing. A t the end of O ctob er [ 2 0 2 0 ] as a group , our sales are slightly ahead of that same time p eriod as 2 0 1 9 . A s w e look f orw ard to finishing up this year and growing into 2 0 2 1 , the ex p ectations are high f or that grow th to continue. ” Jeff Labanovich, G M of C A R S TA R C anad a, gave an up d ate on C A R S TA R N orth A merica and then sp ok e ab out the netw ork ’ s resilience in 2 0 2 0 d uring the p and emic. H e said through all of the challenges, C A R S TA R has p ersevered and learned to ad ap t. “ B eing thrust into this change, I ’ ve j ust seen such resilience, ” said
L ab anovich. “ … store ow ners, mark eting group s stand ing together to figure out how to do things differently in an environment w here honestly the mark et share is shrink ing and that is something w e need to b e seriously p rotective of . ” I n ad d ition to the b rand up d ates, A rlo Johnson, S V P I nsurance, talk ed ab out the learnings f rom the y ear and k ey ind ustry up d ates in regard to netw ork p erf ormance and strength. “ O ur p rimary resp onsib ility is to help C A R S TA R , F ix A uto U S A and A B R A stores grow sales, ” said J ohnson. “ W e’ re very f ocused on ad d ing D R P s and that’ s how my team is measured . ” J ohnson estimated they ad d ed more than 1 , 0 0 0 D R P s in 2 0 2 0 across all three b rand s in the U . S . , and 7 7 % are w ith top 1 0 carriers. Top - p erf orming f ranchise p artners f or A B R A , C A R S TA R and F ix A uto U S A w ere also honored f or their ex cellence in L ength of R ental ( L O R ) and C ustomer S atisf action I nd ex ( C S I ) . H onors w ere given to the f ollow ing:
ABRA LOR: A B R A , R ochester, M N , ow ned b y T om Kadlec, D istrict M anager Kris Joeckel and M anager A ngie H enry CSI: A B R A , S p arta, M I , ow ned b y P ablo R odriq uez , D istrict M anager Del King and G eneral M anager Dan R owan CARSTAR Canada LOR: C A R S TA R B rid gew B rid gew ater, N S , ow ned b y W and Kev in E nimo CSI: C A R S TA R C ollingw C ollingw ood , O N , ow ned b y B oucher
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Continued from Cover
New Certification Program to our certified shops and American H ond a M otor, ” she ad d ed . I recently talk ed to A lvarez ab out the new p rogram and some of the highlights: W
hat prompted the decision to replace the ProFirst Certifi ed Body Shop P rogram? The P roF irst p rogram w as one of the first O M certified collision programs to launch, and has mad e great strid es. W e’ ve f ound it is held in high regard and has b een w id ely accep ted b y rep air f acilities. The Honda and Acura Certified C ollision p rogram p rovid es several imp rovements, includ ing enhanced and ab solute customer recognition. The program will effectively leverage b oth b rand s b y triggering instant recognition in the larger p op ulation, and more imp ortantly , vehicle ow ners. W ith P roF irst, customer recognition was an uphill effort not ust f or A merican H ond a M otor, b ut also for certified shops. We heard our certified shops loud and clear in regard to changing the p rogram’ s name. W e have b een w ork ing tow ard this f or a long time and I am thrilled to ad d ress the need f or an immed iate b rand connection b etw een our customers and certified shops. W
hat are some of the program’ s highlights and how does it diff er f rom the f ormer one? The P roF irst p rogram includ ed f ree access to the H ond a and A cura S ervice I nf ormation S y stem, p arts catalogs, d ed icated regional collision mark et managers, a customiz ed p laq ue, p romotional items and a shop locator listing. B uild ing on this incred ib le value, the Honda and Acura Certified C ollision P rogram p rovid es immed iate customer recognition, more ef f ective ad vertising logos and a new ly red esigned p laq ue that w ill show case the multip le y ears a shop has achieved certification. I n ad d ition, there w ill b e an annual certification fee. American H ond a M otor has held the same p rice p oint since the p rogram w as launched . A f ter evaluation, w e f elt
For more information, contact your local collision market manager on the map
this w as a good time to imp lement a f ee ad j ustment and remain comp etitive. A nother change w ill b e the stand ard iz ation of the op tion f or renew ing shop s to select a guid ed virtual aud it or an on- site aud it. D uring 2 0 2 0 , guid ed virtual aud its w ere of f ered as a temp orary measure to aid w ith C O V I D - 1 9 state and regional restrictions and w ill now b ecome stand ard . Training f or b oth p rograms w ill increase in 2 0 2 1 b ased on vehicle need . W hat types of f acilities can become part of the certifi ed network? Our certified network will continue to b e comp rised of ind ep end ent shop s, M S O s and shop s aligned w ith a d ealer group . W e w ill ex ercise a high d egree of selectivity in inviting new shop s to ap p ly and certified shops to attempt certification once more. S hop s w ill b e d etermined b y each collision mark et manager in their region. A merican H ond a M otor is very p roud of managing our certified network and will continue to do so.
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18 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com 08625_COL20_8th_ABN.indd 1
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Is there anything additional you would like the collision industry to know about the program? The ultimate goal is to connect vehicle customers with certified shops. These shops have agreed to do the right thing in conducting safe and proper repairs per the provided Honda/Acura repair procedures. With the increased visibility, this goal becomes even more important. As the program progresses, we will continue to evaluate shops to determine if they are following the requirements and should be invited to apply for renewal. I urge all shops, prospective and currently certified, to make sure they understand the requirements and evaluate whether they will be able to support the requirements and intent of the program. If the answer is anything other than a resounding “yes,” then it is not for them. Read the “Terms and Conditions” to make sure you make the best business decision for your business. www.autobodynews.com
Continued from Page 16
Stands ‘UNIT3D’
Watch Out for Odometer Fraud
corporate ops leaders, Store Manager Jessica Delgado CSI: Fix Auto Modesto-City Center, Modesto, CA, owned by Krish Chand At the close of the event, Dean Fisher, president of the Driven Brands Collision Group, shared some final thoughts as the group looks ahead to moving forward together for a successful 2021. “Through what has been a year like no other, these franchise partners have risen above to consistently outperform in operations, customer experience and community engagement,” said Fisher. “We’re proud to recognize their accomplishments. They are truly role models for our Driven Brands family and the collision repair industry.” For more information about Driven Brands, visit https://www. drivenbrands.com/.
There is a big misconception that odometer fraud disappeared with digital odometers, but that’s not so. CARFAX data suggests more than 1.8 million vehicles on the road today have had their odometer rolled back, a 13% annual increase over 2019. The National Highway Traffic Safety Administration estimates more than 450,000 vehicles are sold each year with false odometer readings, costing American car buyers more than $1 billion in value annually. Not only that, odometer rollback can also lead to unexpected repair costs for buyers whose cars have more wear and tear than they expected. Several heavily populated states saw double-digit increases in cases of possible rolled-back odometers, with Texas leading with a 31% rise over 2019. To help protect consumers, CARFAX offers a free Odometer Fraud Check tool and tips to protect yourself at www.carfax.com/odo. Source: CARFAX
Social media tags: @FixAutoUSA, @CARSTAR, @CARSTARCanada
L.
Continued from Page 14
$1.9 trillion stimulus $1.9 trillion initiative is an opening bid to Congress with more spending to come later. As the first legislative priority of his administration, the plan will test the new president’s deal-making acumen. Biden seems comfortable in the role. He didn’t balk at debt and deficits the last time he was in the White House. He hasn’t gotten skittish in the last four years either, as he heralded the first multi-billion-dollar spending package he managed. “We will be responsible with taxpayer dollars, ensuring accountability that reduces waste, fraud, or abuse,” he promised, “like we did with the Recovery Act during the Obama-Biden administration.” We thank RealClearWire for reprint permission.
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Please contact these dealers for your Honda or Acura Genuine parts needs. HONDA COLORADO
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with Stacey Phillips
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.
Two-Way Dialogue a Good Way to ‘Maintain’ Employees J ust as regular maintenance of y our shop ’ s eq uip ment and f acility is critical to k eep it f unctioning w ell, “ maintenance” of y our emp loy ees is j ust as imp ortant. A f ter all, rep lacing a good employee can be every bit as costly and often more difficult than replacing a w eld er or f rame rack . I t w as that goal of maintaining ongoing tw o- w ay d ialogue w ith emp loy ees that led me, w hen I had my shop s, to cond uct emp loy ee review s on an annual b asis. I k now some shop ow ners avoid such review s b ecause they assume emp loy ees w ill ex p ect increased comp ensation as p art of the p rocess. B ut b ef ore I even sat d ow n w ith employees, they each would fill out a q uestionnaire, rating how they think they w ere meeting the comp any ’ s stand ard s f or attend ance, q uantity and q uality of w ork , teamw ork , or-
ganiz ation and enthusiasm. I t ask ed them to rate their sup ervisor, and how they are treated b y cow ork ers. I t ask ed them w hat they f eel they need to improve, what their specific goals w ere f or the coming y ear, and how w e could help them meet those goals. And it asked specifically about p ay , includ ing this imp ortant f ollow - up q uestion: W hat w ould y ou b e w illing to d o to mak e more money this y ear? This help ed emp hasiz e they have to tak e a role in increasing their income, not j ust come into the review ex p ecting a raise. I w ould look over their resp onses and their employee file before I met w ith them. A nd I came into the review w ith an agend a. F irst item on that agend a: E nsuring w e had their current home ad d ress and p hone numb er( s) , that their emergency contact inf ormation
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w as correct and that their insurance need s had n’ t changed , may b e b ecause of a change in d ep end ents or b ecause they w ere now covered und er a sp ouse’ s p lan. W e also collected inf ormation on their b irthd ay , w ed d ing anniversary and k id s’ b irthd ay s so w e could note those events throughout the y ear. N ex t, w e w ork ed through their resp onses to the q uestionnaire. The b eauty of the self - review is it’ s a lot less uncomf ortab le than having to b ring up the f act an emp loy ee, f or ex amp le, is of ten late f or w ork . That emp loy ee w ill of ten ack now led ge on the f orm he’ s not meeting the shop ’ s ex p ectations f or attend ance. S o rather than d w ell on the p rob lem, y ou can immed iately move into d iscussing w hy it’ s occurring and w hat can b e d one ab out it. That was far more effective than a heat-
ed d iscussion ab out it at some time w hen I w as angry and they w ere d ef ensive. I f they listed areas of their p erf ormance that need imp rovement, w e d iscussed w hat tools or training they need ed to help them d o that. I ’ ve alw ay s f elt it’ s the b usiness ow ner’ s resp onsib ility to give emp loy ees w hat they need to success in the b usiness. S o review s are a chance f or op en d ialogue ab out how y ou can help them imp rove their p erf ormance. That also help ed us map out emp loy ee training f or the coming y ear, to ensure w e got them the classes they need ed w ith the least d isrup tion to p rod uction. D uring the review s, w e’ d also d iscuss the areas in w hich they w ere ex celling, giving them some “ attab oy s” and p ositive reinf orcement. See Two-Way Dialogue, Page 24
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ge 24
with Erica Schroeder
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.
Panel Reviews Why OEM Repair Procedure Legislation Has Mostly Failed to Be Enacted
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even more if any of these p ieces of W ith more than a d oz en states p rop osing legislation over the p ast three legislation get p assed . ” P anelist W ayne W eikel of the y ears related to the use of O E M colwith Ed Attanasio lision rep air p roced ures, w hy have A lliance f or A utomotive I nnovation, a trad e group rep resenting the nearly all of them f ailed to b e enacted ? That w as the q uestion at the heart of a G overnmental C ommittee p anel d iscussion d uring a recent virtual C ollision I with nd ustry Ed C onf erence Attanasio ( C I C ) this month. O ne reason cited : O p p osition to the id ea of p ushing f or or req uiring the use of O E M p roced ures f rom alternative p arts ind ustry . “ I think the b iggest p rob lem w e Darrell Amberson said many Minnesota lawmakers’ ties to the insurance industry have is there are O E M rep air p rowith Ed Attanasio ced ures that very b latantly d eny the have made it difficult to even get a hearing in that state for legislation on OEM collision use of af termark et or recy cled origrepair procedures inal eq uip ment p arts, ” said p anelist Sandy B lalock, ex ecutive d irector automak ers that manuf acture nearly of the A utomotive R ecy clers A ssoall the p assenger vehicles sold in ciation. “ S o w ewith have Ed very Attanasio serious the U . S . , p ointed out in some of the concerns that that w ould b e p ushed state legislative efforts, automakers
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“took parts off the table,” by agreeing to legislative language “ say ing that, notw ithstand ing w hat O E M rep air p roced ures may say ab out p arts, y ou’ re sup p osed to f ollow the rep air p roced ures. ” B ut B lalock said the O E M p osition statements remain. “ A s long as there’ s any thing out there that is telling p eop le it’ s not w ise to use [ alternative] p arts, or that they d o not recommend that they b e used , this is going to b e an issue f or us, ” she said . “ A nd that’ s w hy y ou see w hy compromise on this will be difficult, ” W eik el said . “ A gainst all of my memb ers’ view s on p arts, w e tried to f ocus j ust on p roced ures, and even af ter w e’ ve d one that, w e continue to hear ob j ections such as these. I can tell y ou, our manuf acturers are not going to w alk aw ay f rom say ing that the b est p art is a new O E M p art.
Media and Publicity for Shops Shop Strategies with Stacey Phillips
That’ s j ust the reality . ” The insurance ind ustry also p ushed b ack against p rop osed state legislation that w ould req uire them to p ay claims b ased on O E M rep air p roced ure. P anelist Darrell A mberson of L aM ettry ’ s Collision in M innesota said his state’ s association tw ice p ushed f or legislation that w ould have mad e it an unf air claims p ractice f or an insurer to ref use p ay ment f or a rep air p roced ure called f or b y an O E M . The first year the bill didn’t even receive a hearing. The association then w ork ed w ith insurers on some “ w atered - d ow n” comp romise language introd uced in 2 0 1 9 , b ut even then insurers op p osed the b ill d uring a hearing. A mb erson said the state’ s legislature has a high p ercentage of memb ers w ho currently w ork f or, or have
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1/18/2021 4:26:53 PM
p reviously w ork ed f or, insurance comp anies, includ ing the committee memb er most critical at the hearing of the b ill’ s language. “ I t d id n’ t get out of that committee, ” A mb erson said of the 2 0 1 9 bill. “It’s been difficult to reason w ith some entities out there. I ’ m not say ing every insurer is against p rop er rep airs. B ut there are those out there that f rank ly are inclined to imp ly that it’ s O K to essentially cut some corners. The p hrase ‘ case- b y case’ imp lies y ou can mak e a j ud gement, q uestioning the rep air p roced ures the manuf acturer estab lished . ” N ew H amp shire law mak ers p assed O E M rep air p roced ure legislation in 2 0 1 9 , b ut it w as vetoed b y R ep ub lican G ov . John Sununu, w ho said the b ill “ w ould increase the cost of auto insurance p remiums b y limiting the ab ility of insurers to negotiate w hat is reasonab le in the rep air p rocess. ” W eik el p ointed to w hat he sees as the irony in that argument. “ B e that true or not true, b y ack now led ging that these p rices w ere going to change, he w as ack now led ging on its f ace that rep airs are not b eing d one the w ay they should b e, ” W eik el said . “ B ecause if they are, the p rice isn’ t going to change. ” P anelist Jina P etrarca- Karampetsos of the A uto B od y A ssociation of R hod e I sland said the association successf ully p assed such O E M p roced ure legislation there in 2 0 1 8 af ter sp end ing “ many , many y ears b uild ing momentum. ” The association has a history of getting legislation enacted d esigned to ensure consumers have inf orma-
ap p lies only “ w hen O E M p arts are “ They aren’ t versed in this, ” used . ” P etrarca- K aramp etsos said . “ They “ I t’ s b een a maj or success. A nd it go to a shop . They ex p ect to have w as a comp romise, ” P etrarca- K aramtheir car rep aired saf ely . They ex p etsos said . p ect their insurance comp anies w ill B lalock said such comp romise is treat them f airly . They ’ re not aw are not out of reach, p articularly in states, of the nuances. ” lik e R hod e I sland , that have generalS he said the association at one ly view ed used p arts as O E M , unless point took a year off from its legislathey w ere non- O E M origitive efforts to meet with insurers in an nally . attempt to find “useful solutions” to isC omp romise on an O E M sues of con ict, but there were no such p roced ure b ill in W ashingsolutions that the “ insurers w ould imton S tate earlier in 2 0 1 9 p lement w ithout legislation, ” she said . w as also “ very close, ” she “ That has b een p roven here over said . and over, ” P etrarca- K aramp etsos said . “ B ut I think the b iggest A mb erson said he agreed that comp romise is w e need to finding solutions short of legislation stop think ing w e have to go w ould b e w ond erf ul, b ut it’ s very hard A virtual panel discussion on OEM repair procedure legisp ass legislation to p rotect to accomp lish, p articularly w hen it lation included, clockwise from top left, Darrell Amberson, every f acet of our b usinesscomes to O E M rep air p roced ures. ASA’s Bob Redding, Jina Petrarca-Karampetsos, Sandy es, ” B lalock said . “ W e need “ W ho among us are ex p erts on Blalock and Wayne Weikel to stop going to our legisthis to the p oint that w e can claim f or vehicles up to f our y ears old . latures and ask ing them to p rotect a to b e more k now led geab le ab out the “ K now led ge is p ow er, and certain segment of our ind ustry . ” p rop er rep air than the vehicle manchoice is p ow er, ” P etrarca- K aramP etrarca- K aramp etsos said she uf acturer, ” A mb erson said . “ H ence, p etsos said . “ I f y ou’ re d oing the right d isagreed w ith the id ea that legislaw e as rep airers are caught in the thing, giving consumers a choice is tion is not necessary , given consummid d le, and unf ortunately have to never going to b e a negative in y our ers’ lack of aw areness and und erp ursue legislative solutions to b e b usiness. ” stand ing of issues related to insurance able to fix cars properly, to protect The R hod e I sland O E M p roceand collision rep air. ourselves as w ell as the consumer. ” d ure regulation is tied to the p arts legislation. I t originally p rohib ited insurance comp anies f rom req uirYour One-Stop Shop for ing any rep airer “ to use rep air p roced ures that are not in comp liance w ith the recommend ations of the original eq uip ment manuf acturer. ” B ut P etrarca- K aramp etsos said in a compromise based on opposition Parts Dept. Hours from the non-O M parts industry Mon - Fri: 7:30am - 6pm the b ill w as amend ed to say the reSat: 8:30am - 5pm 6324 Bob Bullock Loop / Laredo, TX 78041 q uirement f or automak er p roced ures
Continued from Page 22
L astly , the review s w ere their op p ortunity to tell me w hat they f elt the comp any w as d oing right, and w hat they ’ d lik e to see changed and w hy . I w ould alw ay s comp ile emp loy ee suggestions d uring review s and f ollow up , ex p laining w hich w e w ere imp lementing and w hich w e w eren’ t, and w hy . S o rather than j ust a time to talk ab out p ay , I f ound emp loy ee review s a rew ard ing w ay to maintain op en dialogue that helped everyone and the company improve.
Two-Way Dialogue A nd I ’ d have inf ormation on their total p ay f or the p revious y ear and the current y ear to d ate. I f it look ed lik e their w ages w ere moving up or d ow n f rom the p revious y ear, w e’ d d iscuss the reasons and help them und erstand w hat they could be doing as they may have already identified on the questionnaire to improve their income.
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tion and choice, she said . That includ es an anti- steering b ill, a tw o- tier “ C lass A ” and “ C lass B ” shop d esignation sy stem, a total loss threshold of 7 5 % that p revents a vehicle w ith lesser d amage f rom b eing totaled w ithout consumer consent, and a law that req uires consumer consent f or use of any thing other than O E M p arts
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Objections to Payment and Requested Procedures Outlined in SCRS Class by Ed Attanasio
L et’ s imagine y ou’ re getting surgery and right b ef ore they p ut y ou und er anesthesia, they tell y ou y our heart rep lacement is an unnecessary p roced ure, or they w ant to save money b y installing an af termark et one.
AkzoNobel Small Business Consultant Tim Ronak presented “Overcoming Objections to Payment and Requested Procedures” as part of the SCRS 2020 Repair Driven Educational Series presented at SEMA360
W hat w ould y ou d o other than scream at the sy stem, d esp erately try to renegotiate or ask the surgeon to d oub le up on the anesthesia? This is similar to the unend ing tug- of - w ar b etw een b od y shop s and insurance comp anies over w hat the latter is w illing to p ay f or rep airs. I n many cases, the relationship w ork s w ell and seamlessly , w hile others go sid ew ay s and end up b eing a b ad ex p erience f or b oth p arties involved . I t d oesn’ t matter if y ou’ re a D R P shop or not they will grind you at every turn any w ay , and if y ou’ re not p rep ared , they can hamstring y our b usiness in more w ay s than one. A k z oN ob el S mall B usiness C onsultant T im R onak p resented “ O vercoming O b j ections to P ay ment and R eq uested P roced ures” as p art of the S C R S 2 0 2 0 R ep air D riven E d ucational S eries p resented at S E M A 3 6 0 . M any shop s nationw id e are having issues getting O E rep air p roced ures ap p roved , or p ersuad ing insurance comp anies to reimb urse f or certain rep airs w hen they sub mit their b ills and estimates. Through a series of round tab le d iscussions w ith shop ow ners and managers, R onak has b een ab le to d evise some strategies to ad d ress these issues and how they can b e resolved . I f y ou’ ve b een in the collision
rep air ind ustry f or even a short time, y ou’ ve und oub ted ly heard these lines more than once the leading 1 4 ex cuses any shop can encounter: “ W e d on’ t p ay f or that. ” “ This is the cost of d oing b usiness. ” “ That’ s p art of the j ob . ” “ I t’ s the mark et rate in y our area. ” “ That’ s not a comp etitive rate in y our mark et. ” If those don’t oat your boat or persuad e y ou in any w ay , it’ s time f or their P lan B : “ S orry , b ut the p revailing rate in your area is fill in the blank. So, w e cannot p ay more. ” “ W e can ad d some ex tra time on something else to cover the d if f erence. ” “ N o other shop s in y our area are ask ing f or that amount. ” “ These rates are too high. ” ( M eaning a p revailing rate d oes ex ist. ) “ This is a f our- hour rep air, not a six - hour rep air. ” “ W e p ay f or af termark et and used p arts only . ” “ Y ou d on’ t need to p erf orm that p roced ure. ” “ The O E M rep air inf ormation d oes not say ‘ req uired ; ’ it say s ‘ recommend ed ’ or ‘ suggested . ’ S ince they d o not ‘ req uire’ the op eration, w e w ill not p ay f or it. ” And finally, after all of the wrestling d oesn’ t w ork , the insurer might say , “ P lease accep t our non- D R P rate. ” S hop s run into all of these “ reasons” excuses often, when all they w ant to d o is return the car to its 1 0 0 % p re- accid ent cond ition w ithout comp romising saf ety and f unctionality , R onak said . I nsurers w ill w restle w ith collision rep airers customarily ab out things such as scanning p roced ures, pre-fit on a quarter panel before it’s installed , or a road test at the comp letion of the rep air, now called a “ d y namic systems verification,” Ronak said. R onak d evelop ed a comp rehensive list of G eneral O b j ection C ategories. O ne of the main ob j ections is rates, and the p rob lem is many shop s are unab le to mak e their case w hen
negotiating rates w ith the insurer. W ithout enough sub stantiated p roof , the insurance comp any w ill w in almost every time, R onak said . C hallenging the asserted rate assumes y ou have d one y our ow n research to d isp ute it, R onak ex p lained . U se of any contracted or D R P rates in the calculation of “ p revailing mark et rate” could b e a violation of the S herman A ct, and could b e d escrib ed as purchaser price fixing, which is illegal and a federal offense. I f an insurance comp any has negotiated a certain rate w ith one shop and then uses that negotiated rate w hen calculating an average rate f or a mark et, it has “ b ought d ow n” the mark et rate and may b e an unf air trad e p ractice. To d etermine the rates, shop s are f amiliar w ith lab or rate survey s p rovid ed b y the insurers w ith z ero oversight. “ They p rovid e a survey that can’ t b e ed ited , ” R onak said . “ They tell y ou that this is how much y ou should accep t b ecause they think it’ s f air. They p ick the shop s to use
and then d etermine how much they w ill p ay in each mark et. The q uestion here is should you really trust someone w ho ow es y ou money to tell y ou how much they ow e y ou or d o y ou need to verif y that? ” F or shop s to successf ully challenge rates, they w ill need to p rove the p revailing rates p rovid ed b y the insurance comp anies are inaccurate, outd ated or unf air. I n summary , it’ s the shop ’ s ob ligation to mak e a case every time w hen an insurer tries to cut its rates or coerce it to p erf orm an inf erior rep air and comp romise q uality . B eing p roactive is k ey . D o y our ow n lab or rate survey s and b ack them up w ith the p rop er d ocumentation. B e p rep ared f or the insurer’ s talk ing track and b e read y to resp ond promptly and definitively. Develop a p lan and a strategy and mak e sure any one d ealing w ith the insurance comp anies is on the same p age. R onak grew up in the collision rep air ind ustry b eginning at age 1 4 w ork ing w ithin his f amily ’ s b usiSee Objections to Payment Page 32
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Southwest_Issue_0221.indd 26
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they uestrust to u or
halrove the rate,
Auto Insurance Rates Decreasing in 2021 for the First Time in a Decade A uto insurance rates have f allen f or the first time in over a decade, decreasing b y 1 . 7 % across the U . S . f or 2 0 2 1 , accord ing to V alueP enguin. com’ s S tate of A uto I nsurance in 2 0 2 1 rep ort p ub lished J an. 7 . The rate d ecrease in 2 0 2 1 is an anomaly caused b y f ew er A mericans d riving in 2 0 2 0 d ue to the C O V I D - 1 9 p and emic. F ew er d riv-
ob time ates r re-
our ack menrer’ s ond elop sure ance
sion e1 4 usi-
ers on the road and a steep red uction in claims b rings the average cost of A uto I nsurance in 2 0 2 1 to $ 1 , 6 3 6 . Key findings: A uto insurance rates have f allen for the first time in over a decade, d ecreasing b y 1 . 7 % across the U . S . f or 2 0 2 1 . The b iggest y ear- overy ear rate d ecrease in auto insurance rates are in A rk ansas ( 4 . 8 % ) , O hio ( 4 . 3 % ) and M ichigan ( 4 . 3 % ) . F ive states w ill see marginal
increases, includ ing N ew Y ork b y 1 . 2 % and I nd iana b y 1 . 1 % , d esp ite a d ecrease in the national average. The average cost of car insurance in 2 0 2 1 is $ 1 , 6 3 6 : D rivers w ho resid e in M aine, N orth C arolina and I nd iana have the low est auto insurance rates 40% cheaper than the national average. H ow ever, auto insurance rates in M ichigan retained its sp ot as most ex p ensive, and are 3 5 3 % higher than the national average. F lorid a and R hod e I sland rank ed second and third most ex p ensive. A traffic violation will lead to an average p remium increase of 1 1 7 % in 2 0 2 1 : N orth C arolina d rivers w ill see the b iggest increase in premiums 255% due to a traffic violation. F lorid a auto insurance comp anies are the most f orgiving, increasing p remiums b y j ust 5 5 % on average. I nd ivid uals w ith D U I violations w ill see their p remiums increase b y 1 5 7 % on average in 2 0 2 1 , and minor violations, such as a f ailure to obey traffic signs, will also see insurance p remiums rise 2 8 % .
A uto insurance p remiums are 1 0 6 % more ex p ensive w hen comp ared to a d ecad e ago. W hile 2 0 2 1 sees its first drop in auto insurance p remiums in a d ecad e, rates are significantly higher than what Americans p aid a d ecad e ago, and rates have increased every y ear since 2 0 1 1 . Rates will rebound in 2022 as A mericans get b ack to normal, auto insurance rates w ill rise again. The increase in d istracted d riving and more ex p ensive claims f rom smart technology in vehicles w ill continue to d rive rate increases. A ccord ing to S terling P rice, auto insurance ex p ert at V alueP enguin. com, “ C ar insurance can b e a difficult and time-consuming topic to und erstand . This rep ort attemp ts to unmask some of these k ey issues and uncover w ay s A mericans can save more money . “ O ur analy sis show s that p remiums can vary b y 2 4 2 % b etw een the largest insurance comp anies, so y ou can save a lot b y comp aring q uotes. S w itching y our car insurance f rom f ull to minimum coverage could see y our p remiums red uce 1 5 5 % , and imp roving y our
cred it score could d ecrease y our auto insurance p remiums b y as much as 7 0 % . ” V alueP enguin. com analy sts analy z ed 1 5 million auto insurance q uotes f or d rivers across the country f rom the Q uad rant I nf ormation S ervices d atab ase. These, comb ined with RateWatch filings, were used to illustrate the current and historical overview of the auto insurance ind ustry . A naly sts used a 3 0 - y ear- old male w ho d rove a 2 0 1 5 H ond a C ivic E X as a samp le d river f or this analy sis, and q uotes w ere d raw n f rom all availab le Z I P cod es across the U . S . To view the f ull rep ort, visit: http s: / / w w w . valuep enguin. com/ state - of - auto- insurance- 2 0 2 1 S ource: V alueP enguin
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with Ed Attanasio
Shop Strategies
Stacey Phillips is an award-winning 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.
with Stacey Phillips
COVID Edition: Collision Repair Owner and Entrepreneur Develops Technology Claims SolutionBody for Industry Shops Giving Back B ill P ark, co- f ound er andStacey b oard memwith Phillips I recently talk ed to the entrep reb er of S p artan V entures, said his b ack neur ab out how he has op erated his ground is rooted in the auto b od y recomp anies d uring the p and emic and p air trad e. the recent p latf orm technology his W hile grow ing up , P ark ’ s f ather team d evelop ed to sup p ort the vartold him if he w anted to d rive someious entities and the ind ustry . thing nice somed ay , he w ould have with Stacey Phillips C an y ou p rovid e an overview to “figure it out.” After painting his first vehicle of y our comp anies? w hen he w as 1 4 y ears old , he realiz ed A t A X I O M C ollision R ep air he had f ound a hob b y . H e attend ed in the U . S . and U K , our goal the U niversity of A riz ona to b ecome is to d eliver 8 5 % of all rep airs in an orthop ed ic surgeon and rep aired three d ay s or less. W e accomp lish and p ainted cars at night. A f ter grad with Stacey Phillips uating w ith a b achelor’ s d egree in this b y using w hat I ref er to as the A X I O M triage method f or sched uling and rep air allocation. D amage minimiz ation is a k ey f actor as w ell. The 3 0 0 A d vantage p rovid es hail rep air management solutions for body shops, dealerships and eet with Victoria Antonelli comp anies. W ith a national team of mob ile rep air technicians, w e have more than 3 0 teams w ork ing in the field at any given time. AXIOM accident repair centre in the United P D R M ob ile S olutions sup p orts Kingdom the hail rep air b usiness estimatics, analytics and field operations for our molecular and cellular b iology and with Attanasio minoring in math, he Ed couldn’t find mob ile hail technicians. The C laims B rid ge I nternational a j ob . A d octor told P ark he f elt his consists of a team of ex p erienced U . S . p assion lay elsew here. and international insurance, reinsur“ That w as a w ak e- up call and I ance, claims and rep air ex ecutives d ecid ed to op en a b od y shop , ” said P ark . “ W hat d rives me is creating an w ho j oined f orces to “ reimagine” catastrophic auto hail claims and find a organiz ation w here p eop le can show up and d o their with b est w ork . I w Ledoux ant to b etter w ay of hand ling these events Gary f or customers. W e recently d evelop ed b e an integral p art of creating the op a technology solution f or the ind ustry . p ortunity f or p eop le to really enj oy b eing p rod uctive, serving others and challenging themselves to b ecome a W hat w ere y our b iggest chalb etter version of themselves. lenges this y ear op erating a “ I b elieve p eop le live a hap national rep air netw ork d uring the p ier lif e w hen with they are p rod uctive p and emic? Stacey Phillips and have a voice in their d ay - to- d ay It has been a difficult year for w ork . ” every one. I ’ m ap p reciative of H is vision f or S p artan V entures all of our emp loy ees, colleagues and is to create glob al b usinesses w ithin the automotive collision and hail customers across the U . S . f or sold iering through 2 0 2 0 and show ing rep air ind ustry . The comp anies includ e A X I O M C ollision R ep air in amaz ing resilience in a y ear that has with Mike Anderson the U . S . , A X I O M accid ent rep air seen the most significant economic d isrup tion of our lif etimes. centres in the U K , The 3 0 0 A d vanThe N o. 1 challenge f or us w as tage, P D R M ob ile S olutions and access to customers and their veThe C laims B rid ge I nternational.
Tips for Busy Body Shops
Q: My SEMA A:
Shop Strategies
hicles to p rop erly assess hail and / or crash d amage. The f ear f actor of C O V I D - 1 9 had a massive imp act on when customers would file and/ or tak e action to settle their claim. P eop le j ust d id n’ t leave their homes unless it w as ab solutely necessary . The silver lining here is that consumers are more engaged w ith self - serve op tions. W ith the consumer b eing more involved f rom a d igital/ virtual p ersp ective, this w ill allow our b usinesses to p rosp er and leverage technology solutions to imp rove the customer ex p erience. L astly , insurers had so many different requirements due to CO ID-19 it was difficult to deliver w hat they need ed , esp ecially in the f ormat they w anted . I t w as very challenging and no d oub t f rustrating f or customers, and I f eel that d rove cost higher.
Product Innovation
OE Shop Certification
Q: Product Innovation A:
AXIOM Collision Repair in Denver, CO
C O V I D may have stop p ed many things, b ut not accid ents and hail storms! The silver lining is insurers are b ecoming op en- mind ed and w illing to interact w ith their insured s and rep airers in a d igital environment. I t’ s not an easy leap , b ut a necessary one that w ill d rive f uture interactions.
Q: From the Desk of Mike Anderson A:
H ow have y ou overcome these challenges?
O vercoming customer f ear w as outsid e our sp an of control however, we offered a contactless d igital assessment tool that the vehicle ow ner could use to triage the d amage. W e also p rovid ed a variety of ad d itional contact- f ree services, as
w ell as a concierge service. O ur goal w as to p rovid e a level of p eace of mind w ith customers, so they w ould f eel their w ell- b eing w as top of mind . The b iggest challenge w ith insurers w as p rovid ing the p rop er d ocumentation to sup p ort the d amage on the vehicle in this new norm. P hotos and vid eo w ere some op tions used , but this was all very difficult to process and time- consuming.
Q:
H ow is C O V I D - 1 9 d riving more collab oration and innovative technology solutions across the ind ustry ?
A:
I b elieve the p and emic’ s challenges have f ostered more collab oration and p eop le’ s mind sets are b ecoming more f ocused on solving p rob lems rather than hoard ing solutions. A s a result, b arriers w ill come d ow n, insurtech solutions w ill grow , and innovation w ill b e top of mind . F ortunately , w e have access to estimating p latf orms that can link the entire sup p ly chain, b ut can only b e used b y p eop le outsid e of the insurers’ legacy sy stems. This p uts unnecessary constraints on the entire ecosy stem. The ind ustry norms, legacy sy stems and p rop rietary p latf orms of ten mean insurers are not tak ing ad vantage of the latest technology . H ow ever, C O V I D - 1 9 has encouraged many insurers to reassess the role technology can p lay and I am sure 2 0 2 1 w ill see insurers p artner to accelerate their d igital transf ormation.
Q:
W hat p romp ted y our team to d evelop an I nsurTech technology ?
A:
D uring the p and emic, w e look ed at w ay s to engage the claims p rocess and the insured s’ need s through a virtual, contact- f ree ex p erience. A s a b usiness ow ner, one of my
28 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 29
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p riorities is to look f or technology that can b ring sp eed and ease of settlement f or the customer. I p artnered w ith an international team, The C laims B rid ge I nternational, to d evelop an end - to- end d igital solution f or managing hail claims and rep airs called E z iC laims S uite.
Q:
W hat are some of the highlights of E z iC laims S uite and how w ill it help the claims p rocess?
p rop erly allocate the resources necessary to serve customers. The C laims B rid ge p rovid es access to a national p aintless d ent rep air ( P D R ) netw ork that can red uce the w ait time f or rep airs. I t’ s not uncommon f or customers to w ait eight to 1 2 months to get their cars rep aired . The ex p and ed rep air netw ork w ill red uce
“I believe people live a happier life when they are productive and have a voice in their dayto-day work.” — Bill Park
A:
I magine 1 8 0 , 0 0 0 claims b eing filed from a hail event in a matter of a f ew d ay s. W hen y ou think ab out the numb er of p eop le imp acted b y a hail storm, it’ s not surp rising that the claims sy stem and rep airer netw ork s get overw helmed q uick ly . E z iC laims S uite w as d esigned to solve that p rob lem b y p rovid ing the customer an instant link to a w eb - enab led ap p w here they can initiate a claim and d ocument the d amage. This p rovid es the vehicle ow ner w ith an immed iate solution to resolve the claim, and it p rovid es the insurance comp any w ith the d ata necessary to assess the overall severity of the storm. This is an imp erative step to
the w ait time consid erab ly , w hich w ill imp rove overall customer satisf action.
Q:
W hat are y our view s on 2 0 2 1 f rom a b usiness p ersp ective and the ongoing imp act of C O V I D - 1 9 in the U . S . ?
A:
I think 2 0 2 1 w ill b e very similar to 2 0 2 0 , unless ind ustry lead ers act soon. C ontactless and virtual solutions w ill need to b e an integral p art of serving the customer; if not, it could b e a real d isaster f rom a customer ex p erience stand p oint.
1.1M PPP Loans Forgiven So Far
Collision Engineering Program Launched
The U . S . S mall B usiness A d ministration has alread y f orgiven more than 1 . 1 million P ay check P rotection P rogram ( P P P ) loans f or over $ 1 0 0 b illion, p rovid ing an ex traord inary amount of critical relief to A merica’ s small b usinesses j ust three months since the earliest P P P b orrow ers’ covered p eriod s end ed . The S B A has so f ar received 1 , 3 4 6 , 1 2 5 f orgiveness ap p lications f or ap p rox imately $ 1 7 0 . 5 b illion. S B A has mad e p ay ment on nearly 8 5 % of the ap p lications, f orgiving over $ 1 0 0 b illion. F or the smallest b orrow ers w ith loans up to $ 5 0 , 0 0 0 , 8 8 % have b een ap p roved f or f orgiveness. The new d ata comes as the P P P has recently reop ened as a result of the E conomic A id to H ard H it S mall Businesses, Nonprofits and V enues A ct, signed into law D ec. 2 7 .
E nterp rise H old ings announced J an. 1 1 the launch of the automotive collision engineering p ilot p rogram, p ow ered b y the E nterp rise R ent- A - C ar F ound ation and R ank en Technical C ollege. D esigned to attract and d evelop entry-level talent to fill essential roles w ithin the collision rep air ind ustry , and enhance retention and ad vancement among collision rep air technicians, the p rogram is p iloting at f our schools across the country : R ank en Technical C ollege in S t. L ouis, M O ; C ollege of L ak e C ounty in G ray slak e, I L ; C ontra C osta C ollege in S an P ab lo, C A ; and Tex as S tate Technical C ollege in W aco, TX . This ground b reak ing p rogram has b een d evelop ed to ad d ress a maj or technician shortage. W ith nearly 8 0 , 0 0 0 new collision technicians need ed b etw een 2 0 2 0 and 2 0 2 4 , accord ing to the TechF orce F ound ation, d emand is significantly outpacing a steadily declining sup p ly of p ostsecond ary collision technician entrants. Source: E nterprise H old ing s
Source: SB A
P eop le are read y to self - serve the ind ustry need s to accep t that stop say ing, “ W e d on’ t d o it that ” or “ I t can’ t b e d one that w ay ” P ut y our statement here. ” L ook ing ahead , I f eel op timistic ab out 2 0 2 1 . W e w ill b e p rep ared to serve our customers b oth virtually and in p erson. The ex p ectations around the and and w ay or “
p and emic are in p lace across the country and there is a tremend ous amount of effort being put forth to enhance the customer ex p erience.
Q:
I n light of the current challenges, w hat is y our ad vice to
b usiness lead ers?
A:
2 0 2 1 can b e the y ear of innovation to b e sure, and the collision repairers who figure that out will reap the benefits long into the f uture. M y only f ear is that organiz ations w ill b e too af raid to b e b old . M y ad vice is to “ N ever let a good crisis go to w aste” ( C hurchillism. ) There has never b een a more p erf ect time f or a d igital shif t than tod ay . I’m 100% confident we can figure this out, and the benefits will be huge across the entire ecosy stem. Those w ho b elieve it can b e d one w ill get it d one. Think of Net ix and Blockbuster. B lock b uster could have ow ned Net ix for $50 million, but they didn’t have the vision or courage. The rest is history .
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30 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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The Rise of the Electric Vehicles by Gary Ledoux
T he follow ing article contains forw ard looking statements b ut d o not imply end orsement for inv estment purposes. O ther companies, such as T esla, hav e firmly established market share and d ominant market positions E d . “ Tod ay , electric vehicles are a d isrup tion in the collision rep air w orld . B ut it w on’ t b e long b ef ore they are mainstream… and the collision rep air ind ustry has to b e read y , ” said Frank T erlep, recogniz ed ind ustry lead er and f ound er and C E O of A uto Techcelerators. D uring D ay 2 of the virtually - cond ucted N ovemb er C ollision I nd ustry C onf erence, the F uture D isrup tions C ommittee, chaired b y Terlep and w ell- k now n ind ustry icon Jake R odenroth, gave a p resentation and cond ucted a p anel d iscussion surround ing electric vehicles and w hat their ad vent could mean to the collision rep air ind ustry . G iven the gravity of the issues electric vehicles p resent, it is w orth revisiting this sub j ect in more d ep th.
“ The f uture is coming at us w ith alarming sp eed , ” said Terlep . “ I n less than 1 5 y ears, the U K w ants to b an the sales of all ex cep t electric cars. I n the U . S . , C alif ornia is f ollow ing the same p ath. ” R od enroth noted , “ I t seems lik e it w asn’ t that long ago the ind ustry w as all talk ing ab out the use of highstrength steel and how to rep air it. Then the d iscussion turned to aluminum and the all- aluminum F ord truck . Then it w as A D A S sy stems and how to d o p rop er p ost rep air calib rations. “ N ow it’ s electric cars. I ’ m not sure we have all figured out highstrength steel y et and the ind ustry has mad e several technological leap s since. W e all need to come up to sp eed . ” I n his C I C p resentation, Terlep mad e note of some of the more d ramatic changes that w ill occur as more and more electric cars enter the U.S. eet: O factories and suppliers w ill change d ramatically . S up p liers f or internal comb ustion engine comp onents and gasoline f uel sy stems
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w ill b e greatly red uced or eliminated . This w ill eliminate j ob s f or some w hile creating many new j ob s f or new electric d rive comp onents. New, technology-based vehicle manuf acturers w ill emerge, lik e L ucid and R ivian. Conventional dealer-service d ep artment b usiness w ill d ecline d ramatically , as much as 3 5 % , as w ill services p erf ormed b y ind ep end ent mechanical rep air f acilities. O f course, the attend ant p arts sales f rom b oth d ealers and af termark et w ill d ecline and shif t f ocus over time. Repair and diagnostic p rocesses w ill change d ramatically . F ollow ing O E rep air p roced ures w ill b e ab solutely crucial not only to perform a proper rep air, b ut to ensure the p hy sical saf ety of the technician. ehicle owners will be buying sub scrip tions f or sof tw are up d ates much lik e they b uy ex tend ed mechanical w arranties tod ay . The number of repair facilities, b oth mechanical and collision, will decrease as the eet increases d ue to the k now led ge, training and tooling necessary to p rop erly rep air these vehicles. Three k ey electric O E ’ s to w atch, and the three f eatured in the C I C p anel d iscussion, are L ucid , R ivian and A ud i. Lucid L ucid w as f ound ed in 2 0 0 7 und er the name A tieva, originally f ocused on b uild ing electric vehicle
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b atteries and p ow ertrains f or other vehicle manuf acturers. The comp any reb rand ed itself as L ucid M otors in October 201 and officially announced its intent to d evelop an all- electric, high- p erf ormance lux ury vehicle. The comp any is sup p orted b y
several C hinese investors and f und ing f rom S aud i A rab ia. I t’ s C TO , P eter R awlinson, is the f ormer Tesla M od el S chief engineer. The comp any ’ s L ucid A ir b ase mod el is claimed to have 4 8 0 horsep ow er and a 4 0 0 - mile p roj ected range, w ill sell f or ab out $ 7 0 , 0 0 0 and is d ue to arrive in 2 0 2 2 .
The top - line L ucid A ir D ream b oasts a 1 , 0 8 0 - horsep ow er electric motor and a 5 0 0 - mile p roj ected range, w ill turn a q uarter- mile in und er 1 0 second s and w ill carry an almost $ 1 6 2 , 0 0 0 p rice tag. I ts 9 0 0 - volt electric architecture w ill b e the ind ustry ’ s f astest- charging vehicle to d ate, w ith a rate of 2 0 miles of travel p er minute of charge. L ucid is ex p ected to start d elivering vehicles in A p ril of this y ear. The first U.S. ucid factory, k now n as the L ucid A M P - 1 ( A d vanced M anuf acturing P lant) located in C asa G rand e, A Z , w as comp leted in early December 2020. It will first b uild the L ucid A ir mod el. The f actory ’ s current iteration w ill b e cap ab le of b uild ing 3 0 , 0 0 0 A ir mod els p er y ear. W hen the f actory is f ully comp leted , it w ill b e cap ab le of p rod ucing 4 0 0 , 0 0 0 units annually , includ ing a second sed an and an S U V . B y comp arison, the 1 9 6 4 ½ and 1 9 6 5 M ustang saw 4 3 5 , 0 0 0 units p rod uced . A ccord ing to its w eb site, L ucid w ill use an “ aircraf t- insp ired riveted and b ond ed monocoq ue b od y structure rep lacing sp ot w eld s. ” The manuf acturer claims this w ill p rovid e a new “state-of-the-art structural efficiency . ” A L ucid rep resentative w as not available to answer specific questions regard ing collision rep air p roced ures or training. H ow ever, accord ing to its w eb site, L ucid w ill have a nationw id e netw ork of S ervice C en-
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ters, 2 0 to start in eight maj or metro locations on b oth the east and w est coasts. M ob ile service p rovid ers and certified collision repair centers w ill b e link ed to L ucid ’ s centraliz ed customer care group to ad d ress any thing that cannot b e remotely d iagnosed and rep aired . D escrib ed b y R aw linson as a “ f usion of art, science and technology , ” look f or L ucid mod els on the street b y early summer this y ear. Rivian R ivian, an electric- vehicle start- up comp any b ased in C alif ornia, p lans to soon start p rod ucing tw o all- electric truck mod els at a p lant in I llinois, f ormerly occup ied b y M itsub ishi. These w ill includ e the R 1 T pickup, which will be the first to d eb ut, f ollow ed closely b y the R 1 S
S U V . I t is unk now n at this p oint how many the comp any p lans to sell or how they w ill b e sold , b e it through a trad itional d ealership netw ork or some other sy stem. B ut the b ig new s, to collision rep airers, isn’ t the numb er of R ivian vehicle in consumer hands at least initially . M ore imp ortantly , R ivian has received maj or sup p ort f rom tech giant A maz on. I n S ep temb er 2 0 1 9 , A maz on invested $ 7 0 0 million in R ivian, w hich at that time p lanned to p rod uce 1 0 0 , 0 0 0 all- electric d elivery vans f or A maz on. M ost recently , in S ep temb er 2 0 2 0 , A maz on invested another und isclosed b ut b elieved to b e sub stantial amount of money in R ivian. R ivian has also received f und ing f rom F ord M otor C omp any and T.
Continued from Page 26
Objections to Payment ness in C algary , A lb erta, C anad a. A t 1 7 , he b ecame the y oungest interprovincially-certified auto body
R ow e P rice, the mutual f und comp any . I n cities w here A maz on has a maj or p resence, esp ecially a d istribution center a quick Google check revealed 7 6 A maz on d istrib ution centers across 20 states some collision shop or shop s are going to need to k eep those truck s running, and cy cle time is going to b e critical. A maz on has committed to going emission- f ree b y the y ear 2 0 4 0 , 1 0 y ears ahead of the guid elines set f orth b y the P aris C limate A greement. Terlep notes, “ I t w on’ t b e long b ef ore shop s w ill need to d ed icate a p ortion of their shop and p ersonnel to electric vehicles. Training and use of p rop er rep air p roced ures w ill b e crucial. ” R ivian rep resentatives w ere not at lib erty to d iscuss collision rep air p lans f or their p rod ucts at this time, instead d ef erring to an announcement in the sp ring of this y ear. Audi O n d eck f or the more than 1 0 0 - y ear- old comp any is the A ud i e- tron f or 2 0 2 1 , the “first electric SU built with Audi D N A , ” w ith a rep orted 4 0 2 horsep ow er, ab le to turn 0 to 6 0 mp h in und er 6 second s w ith a 2 2 2 - mile range. S tarting at around $ 6 6 , 0 0 0 , it f eatures q uattro® all- w heel d rive. The e- tron also comes in a “Sportback” configuration. B od y construction is a comb ination of steel and aluminum. A ud i’ s goal is to have one- third of all its vehicles electrified by 2025. The comp any ’ s w eb site notes charging an A ud i e- tron is as simp le as contacting A maz on, w ho w ill have a local contractor set up a 1 2 0 or 2 4 0 - volt, 5 0 - amp charging outlet in the ow ners’ garage. A w ay f rom home, there is a grow ing numb er of commercial charging stations availab le. M ark A llen, manager of collision, eq uip ment and E V af ter sales technician in C anad a. I n 1 9 9 3 , R onak b egan w ork ing f or the C anad ian F ed eral G overnment, ad ministering and d evelop ing ad vanced training p rograms f or the automotive ind ustry w ithin A lb erta that led to a management p osition
service at A ud i of A merica, w as k ind enough to answ er a f ew q uestions.
Q:
A ud i has b een around f or 1 0 0 years. Is this its first electric vehicle?
p anies w ill emerge. I n our case, the b atteries w e use are mod ular, so if one section is d amaged or goes b ad , it may b e p ossib le to rep lace only that mod ule.
Q:
Q: A: Q:
A:
A:
A:
A ud i has had hy b rid electric cars since 2 0 1 3 . The e- tron is a comp letely new generation of vehicle for us and the first full-electric car. Will you have a certified netw ork to hand le collision rep airs on y our electric vehicles?
R ight now , w e have no p lans for a certified collision shop netw ork f or our electric vehicles. H ow ever, w e are sp ecif y ing that any mechanical or esp ecially electrical w ork related to collision rep air b e comp leted b y an A ud i d ealer. They have the training, tools and eq uip ment to rep air our electric cars p rop erly and saf ely . W e allow our current A ud i A uthoriz ed C ollison R ep airers to d o collision rep air w ork on the vehicle, b ut not b attery or any H V electrical rep airs. That must b e d one at the d ealer.
Q:
W hat is the most imp ortant thing techs need to k now b ef ore w ork ing on an electric vehicle?
A:
B ef ore touching our E V , or any E V , it’ s imp ortant that repairers first look at repair procedures and saf ety p recautions. R ep airers can b e seriously hurt, or w orse, if they d on’ t f ollow p rop er p roced ures.
Q:
W hat w ill hap p en w ith a collision- totaled vehicle? H ow w ill the b attery b e saf ely d isp osed of ?
A:
E V b atteries must b e p rop erly d isp osed of accord ing to E P A guid elines. R ight now , there are tw o comp anies in the U . S . that can hand le it. I am sure in the f uture as E V ’ s p rolif erate, ad d itional comw ith a large G M d ealer in C algary . F if teen y ears ago, R onak j oined A k z oN ob el and has since d evelop ed numerous seminars f ocused on op erational imp rovements in the collision center. O ver his 2 5 y ears w ith A k z oN ob el, he has help ed more
W ill y ou have p arts restrictions f or E V p arts? Y es, on structural and electrical comp onents.
W hat k ind of p ersonal p rotection clothing w ill technicians need to w ear to w ork on y our E V ?
D ep end ing on the w ork b eing d one, a comp lete p rotective suit consists of a helmet w ith integrated special arc ash protection f ace shield , b alaclava hood , arc ash protection acket or lab coat, overp ants, and three p airs of gloves includ ing an inner cotton glove covered b y an insulated rub b er glove, covered b y a leather glove. The outfit is completed by electric hazard - rated w ork b oots. N ote: A ud i recently announced a tw oglove comb ination now availab le. Vehicle Charging Made Easy O ne of the d raw b ack s to electric- only vehicles has alw ay s b een travel range. D ep end ing on the vehicle, b attery used and road and other environmental cond itions, E V s can travel 2 0 0 to 5 0 0 miles on a single charge. U nlik e internal comb ustion cars that can b e ref ueled at the ub iq uitous gas station, E V s must b e charged at home or at outlets p rovid ed b y comp anies lik e E lectrif y A merica, one of the largest p ub lic electric vehicle D C f ast- charging netw ork s in the U . S . , w ith more than 5 0 0 charging locations totaling more than 2 , 2 0 0 ind ivid ual charging units as of 2 0 2 0 . C onsid ering that b ef ore an inf rastructure of gas stations w as b uilt, gasoline f or very early cars w as sold in one- gallon cans at hard w are stores, this is the electric eq uivalent. than 1 , 0 0 0 collision rep air b usinesses imp rove their overall op erational p erf ormance.
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32 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 33
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New Product Showcase with Ed Attanasio
Day Job/Night Job
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Tim Morgan Rescues Pits and Pursues Politics M y f ather used to tell me there are p up s. That started every thing and two types of people in the world led to S econd C hance R anch. ” d rivers and p assengers, p articip ants N ow the ranch has three p its and ob servers, with those Gary w ho d Wickert o and on-site in addition to Daisy Spike, those w ho d on’ t. S ome f olk s lead Tank and N acho. naturally and others are more than content to w atch f rom the sid elines. T im M organ, C O O at S p anesi A mericas, is und oub ted ly a serious d river w hen it comes to his lif e, b oth p ersonal and p rofwith essional. Stacey Phillips W hen M organ sees any ty p e of inj ustice or someone in need , he acts quickly and definitively. Several f actors in his lif e recently have led directly to his newest passions pit b ulls and local p olitics. withinStacey Phillips M organ’ s career the collision Morgan is giving pit bulls a second chance and rep air ind ustry sp ans 4 4 y ears as a taking a shot at local political office by running technician, d ealership b od y shop for trustee in the Village of Campton Hills, manager, collision rep air f acility where he lives ow ner, ed ucator and d irector of collision rep air at a nationally accred iThree y ears ago, M organ’ s olted technical college. d est d aughter, Samantha, p rod uced with Stacey Phillips Tw enty y ears ago, M organ rea short vid eo, “ The B eginning of d irected his career w hen he b egan O ur J ourney , ” as p art of her j unior w ork ing f or comp anies f ocusing on high school E nglish class, using lothe d istrib ution of structural rep air cal new s clip s and other f ootage to eq uip ment, hold ing p ositions as a illustrate the problem. In the film, trainer, sales d irector, general manaD aisy is ad op ted b y the M organ f ager and managing d irector. mily and b ecomes an integral p art of with Stacey Phillips F or the p ast eight y ears, he has their lives. b een the C O O f or S p anesi A meriThere› s a lot of misinf ormation cas, a sub sid iary of S p anesi S p A in out there ab out p it b ulls, so M orP ad ova, I taly , that d esigns, d evelop s gan b egan using D aisy to show the and manuf actures an entire range of w orld the truth ab out the b reed . b od y shop eq uip ment. “ W henever someone gets b it, withS econd Stacey Phillips M organ b egan C hance the med ia latches on to it and w on’ t Ranch, a nonprofit pet rescue orgalet go, ” he said . “ I t’ s hard to d isp el niz ation b ack in 2 0 1 8 , w hen he w itthat, b ut f rom my ex p erience, this nessed p it p rej ud ice and f elt it w as is one of the gentlest b reed s y ou’ ll j ust a b unch of b ull, he said . ever encounter. it bulls can fight if H e p urchased a 3 - acre f arm they are trained to d o so, b ut in the and converted his b arnVictoria into a k ennel end , all they w ant to d o is p lease with Antonelli that can accommod ate f our d ogs at their ow ners. I tell p eop le that the a time. The conversion is comp lete only time D aisy b ark s is w hen she and the k ennels are simp ly aw aiting w ants to j ump up on the b ed and final inspection, delayed due to the sleep w ith us. p and emic. “ W e are committed to help ing A b eautif ul b lack and w hite p it our animals, ” M organ said . “ S eeing with Victoria Antonelli b ull came into the lif e of P enny, a need for an energetic, nonprofit to Tim’ s w if e, b ef ore she met Tim. sup p ort our community ’ s p it b ull “ A f amily f riend d ecid ed to p op ulation, w e f ormed our organib ring the girls home the runt of the z ation to p rovid e sensib le solutions. litter, ” he said . “ S he w as so tiny and W e tak e our convictions and turn a little b eaten up f rom the rest of the them into action.
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“ S ometimes our connections can find a home for a pet before the animal need s to change housing. W e currently have a rescue that w ill allow our b ab ies to venture in and out to over 3 acres w hile p rotecting them f rom the elements and giving each one their ow n ind ep end ent sp ace, w hile ad d itionally giving us ind oor sp ace f or training and sup p ort of our f urry f riend s. ” S aving d ogs’ lives is a p assion b ut it’ s also a j ob . W henever M organ and his f amily tak e on any p it b ull, they mak e certain to lead w ith care, concern and p rop er training. I t can also add up financially, with visits to the vet to mak e sure they are current on their b oosters and med ications. “ M emb ers and volunteers p rovid e the momentum that help s us d o good w ork , ” he said . “ U sing community - d riven mod els, w e tak e
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actions that mak e a long- lasting d if f erence. ” I n his second end eavor, M organ is running f or trustee in the V illage of C amp ton H ills, I L , as a w rite- in cand id ate f or an election on F eb . 2 3 . H is message is clear and concise. “ I w ill sup p ort the community , not a p ersonal agend a, ” he said . “ W e need someone w ho w ill listen and support your ideas, fight for the need s of y our community and earn y our resp ect. F or someone w ho truly cares f or y our community , look no f urther. “ M oving to V illage of C amp ton H ills had a j ourney w ithin itself , b ut it’ s saf e to say the area b rought me and my f amily j oy to have a small p iece of the A merican d ream, and not b e lost in an overd evelop ed community d evelop ment. ” O nce he j ump ed into the f ray , Morgan saw running for office in this
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34 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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tight to b offic tecti
thro tion p ast
Daisy saved use h
cand elec rent for t
issu offic
d if -
rgan lage e- in 2 3 . e. unisaid . sten r the earn ruly no
ton b ut me mall not muray , this
tight- k nit community w asn’ t going to b e easy , and the f act the tow n’ s offices were closed for CO ID protection surely d id n’ t help . B y the time he navigated through all of the p rop er d ocumentation req uired to run, the d ead line w as p ast, so he had to enter as a w rite- in
Daisy was the first pit bull the Morgan family saved and is still a big part of the family. They use her as a spokesdog and in the ranch’s logo
cand id ate. I t also triggered a p rimary election b ecause p reviously the current trustees w ere the only cand id ates for the office. P rob lems w ith z oning and other issues motivated M organ to run f or office. “ W hen I moved there, I b egan
to look at the community , and in S ep temb er of 2 0 1 9 , the tow nship tried to rez one my p rop erty and several others to resid ential w ithout even having a p ub lic meeting, ” M organ said . “ That’ s w hen I could see that there need ed some new b lood and I f elt as though I could use my b ack ground and ex p erience to help . ” M organ reaches out to help the community in many other w ay s, b y help ing f amilies in need w ith gif t card s, w ork ing w ith the A d op t- A H ighw ay P rogram, and assisting the local community in getting a K - 9 of ficer for law enforcement. W hile many p eop le w ait f or their lives to change, M organ mak es things hap p en, and help ing b oth animals and p eop le w ill alw ay s b e on the top of his list. “ There are new challenges all the time and as w e get through this p and emic, there w ill b e more, ” he said . S aving p it b ulls and p lay ing a lead ership role in his community are M organ’ s p assions. W hat are y ours? I f y ou’ re interested in sup p orting the S econd C hance R anch through a d onation, visit the w eb site at w w w . 2 nd chanceranch. d og
IGONC Tireside Chat: Setting Your Business Goals for 2021 by Chasidy Rae Sisk
P rep aring f or the new y ear is imp ortant f or all collision rep air b usiness ow ners, and d uring a D ec. 1 5 Tiresid e C hat, the I nd ep end ent G arage O w ners of N orth C arolina ( I G O N C ) d iscussed “ S etting Y our B usiness G oals f or 2 0 2 1 . ”
IGONC members gathered virtually to discuss their shops’ 2021 business goals. Credit: Courtesy of IGONC
A ccord ing to I G O N C E x ecutive D irector T ricia Sauls, “ The turnout w as good , consid ering it’ s close to the holid ay s and every one is ex p eriencing a little Z oom f atigue. P lanning f or the new y ear is an imp ortant p art
of creating a successf ul p ath f or shop ow ners. “ W e had an inf ormative d iscussion that owed well. From the f eed b ack w e received , it w as very encouraging and sup p ortive to our memb ers, ” S auls continued . “ I am really ex cited ab out this format where we ust offer time and sp ace f or shop ow ners to d ecomp ress and talk to each other w ithout any structure or p resentations involved . ” I G O N C hold s its monthly Tiresid e C hats as a w ay of b uild ing the association’ s community b y allow ing memb ers and others ind ustry p rof essionals to netw ork and share id eas. “ B eing ab le to k eep the connection b etw een p eop le in our ind ustry is crucial right now , ” S auls emp hasiz ed . “ W e cannot take time off on training ust because of the shutd ow ns that are hap p ening. B y continuing to host events, even online, w e can continue to sup p ort each other and keep the exchange of ideas owing. ”
COVID-19 Vaccine Distribution Begins After Pfizer Receives Emergency Use Authorization
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by Dan McCaleb, The Center Square D istrib ution of a new C O V I D - 1 9 vaccine is now und erw ay af ter the U . S . F ood and D rug A d ministration late D ec. 1 1 granted emergency use authoriz ation f or the serum. fizer’s and BioNTech’s coronavirus vaccine is the first to receive the authoriz ation and vaccinations w ere ex p ected to b egin as soon as the f ollow ing w eek end . “ W ith this authoriz ation, w e k now that our f ed eral p artners are alread y moving to d istrib ute the first doses of the vaccine throughout the country , ” F D A C ommissioner D r. Stephen H ahn said at a D ec. 1 2 new s conf erence. C alling the d evelop ment of the vaccine in less than a y ear an “unparalleled scientific achievement, ” H ahn said collab oration b etw een the p rivate sector, the scientific and academic community and the f ed eral government allow ed the process to move efficiently but saf ely . “ fficiency does not mean cutting of corners, ” H ahn said ,
noting that stud ies and testing are ongoing. “What’s different during CO ID - 1 9 is that d evelop ers, researchers and regulators have f ound new and hop ef ully lasting w ay s to b e d y namic and efficient,” he said. FDA officials said millions of d oses w ould ship w ithin the first 24 hours after approval. The d oses w ould b e p rorated b y p op ulation, w ith health care w ork ers and residents and staff of congregate care settings such as nursing homes among the first to receive the shots. fizer has said its vaccine, w hich is to b e ad ministered in tw o d oses ab out three w eek s ap art, is more than 95% effective. M od erna is ex p ected to receive ap p roval f or its vaccine w hen the F D A review s its emergency authoriz ation D ec. 1 7 . A straZ enica and J ohnson & J ohnson also have vaccines in the accelerated ap p roval p ip eline. We thank T he Center Sq uare for reprint permission.
autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 35
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ASE Entry-Level Certification Helps Shops Ensure New Talent is Actually Talented by Chasidy Rae Sisk
I t’ s no secret one of the largest challenges f acing the collision rep air industry is the need to find qualified entry - level technicians. D uring A S A ’ s monthly W eb inar W ed nesd ay on D ec. 9 , John Saia, consultant to the N ational I nstitute f or A utomotive S ervice E x cellence ( A S E ) , d iscussed how “AS ntry- evel Certification H elp s S hop O w ners F ind N ew Talent, ” b y allow ing entry - level cand id ates d emonstrate their k now led ge so shop s can id entif y w hich are b est qualified. AS ’s entry-level certification is the first professional credential availab le f or new technicians. U nlike AS ’s other certification levels, the entry-level certification does not have a w ork ex p erience req uirement since inex p erienced stud ents d o not y et p ossess on- the- j ob ab ilities; it’ s intend ed as a w ay f or stud ents enrolled in a technical training p rogram to ind icate their w ork f orce read iness. “ There’ s not a shortage of cand id ates, ” S aia ex p lained . “ B ased on
stud ent enrollment numb ers, there’ s a huge level of interest in an automotive career, b ut the p ip eline leak s b ef ore they enter the w ork f orce. The AS entry-level certification p rovid es a w ay f or shop ow ners and managers to id entif y the stud ents w ho are serious ab out their f uture in this ind ustry . ” F or emp loy ers and stud ents, the A S E entry - level tests p rovid e a cred ential that ind icates w ork f orce read iness and d emonstrates their commitment to a career in the ind ustry . S tud ents’ p revious p erf ormance is also a great p red ictor of their f uture p erf ormance, and this test serves as a p red ictab le gauge f or their success w ith A S E p rof essional-level certification once they’ve ob tained w ork p lace ex p erience. Saia offered advice to students: “ Tak e the entry - level test seriously . I t p rep ares y ou f or y our career, and it is an ex cellent ex p erience that grooms y ou to b e much more successf ul f or p rof essional- level A S E certifications. ou’ll feel more comf ortab le tak ing the tests in the f uture. ”
AS offers three entry-level series test group s: automotive, collision and med ium/ heavy truck s. Four tests are offered in the Collision Repair Refinish series: ainting and Refinishing, Structural A naly sis and D amage R ep air, N on- S tructural A naly sis and D amage R ep air, and M echanical and E lectrical. S aia shared ex amp les of some of the tasks and specifications associated w ith the various tests. The tests are p roctored at the school by non-technical staff, and more than 1 , 4 0 0 schools ad minister more than 2 0 0 , 0 0 0 entry - level tests annually , w ith a p ass rate that ex ceed s 5 0 % . G enerally , the schools p ay f or the tests, w hich they use to evaluate stud ents’ p rogress and grow th in learning, and the test is an ex cellent metric f or the p rogram’ s success, accord ing to S aia. S tud ents can attemp t any test in a series up to tw ice p er school y ear, b ut they must w ait at least 3 0 d ay s to re- test af ter their initial attemp t. The school awards certificates to the stud ents w ho successf ully
U.S. Car Rental Revenue Dives 27.4% in 2020 by ARN Staff
The U . S . car rental mark et achieved a p roj ected $ 2 3 . 2 2 b illion in revenue f or 2 0 2 0 , the low est overall revenue since 2 0 1 1 , accord ing to d ata collected b y A uto R ental N ew s. The 2 7 . 4 % d rop in total revenue f or 2 0 2 0 comp ared to revenue of $ 3 2 b illion in 2 0 1 9 is historically unp aralleled , in f act much steep er than d uring the G reat R ecession w hen revenues only d rop p ed 6 . 7 % f rom 2 0 0 8 to 2 0 0 9 . The ind ustry averaged 1 . 9 8 million units in its overall eet in 2 0 2 0 , a 1 2 . 4 % d ecline over 2 0 1 9 . A s a result, revenue p er unit, p er month ( R P U ) d rop p ed to $ 9 7 5 f or the y ear, f rom $ 1 , 1 7 4 in 2 0 1 9 . “ W ith a near total air travel shutd ow n, the H ertz and A d vantage b ank rup tcies, an unex p ected ly hot used car mark et and a seismic, f orced shif t to local rentals, this y ear w ill enter the record b ook s as the most d isrup tive in car rental’ s history , ” said Chris B rown, ex ecutive ed itor of A uto R ental N ew s. This y ear more than ever, the ind ustry can b e d ivid ed into q uar-
ters.
“The first quarter ended as one of the most profitable and promising since ex iting the G reat R ecession, ” B row n said . “ The economic and societal shutdown defined the second q uarter. The third q uarter saw a massive sup p ly correction, w ith car rental comp anies ab le to cap ture new f ound d emand in the f ourth q uarter. ” S up p ly chain shutd ow ns constricted w holesale sup p ly to the p oint that car rental comp anies w ere able to sell sitting eet at extraordinary p rices d uring the summer, normally p eak season f or travel. “ The used car mark et w as the ind ustry ’ s salvation, to b e sure, ” B row n continued . W ith the need f or p ersonal mob ility f avoring shared transp ortation, b usiness shif ted to the local mark et, and rental op erators enj oy ed a b uoy ed rate environment w ith the remaining tight eet. M ileage f or rental risk units plunged in the first two months of the pandemic as rental eets were ground ed . B ut as b usiness p ick ed up and rental units w ere sold , the
mileage on remaining units easily ex ceed ed record highs. A verage mileage f or rental risk units in N ovemb er w as 5 4 , 2 0 0 miles, up 1 1 % comp ared to a y ear earlier. “ W e lik ely w on’ t k now the full effect of 2020 on the car rental industry and society until we have the benefit of time,” Brown said . “ H ow ever, w e can assess how ind ustries reacted to the p and emic right now . A s a w hole, the U . S . car rental ind ustry has d emonstrated its ab ility to meet the d emand s of the moment. “ W e can start calling 2 0 2 1 ‘ the recovery y ear. ’ W ith a smaller footprint and more efficient processes yet with the ability to grow rapidly the car rental industry is w ell p oised to tak e ad vantage of the coming economic recovery . ” We thank Auto Rental N ew s for reprint permission.
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p ass the entry - level test. AS ’s entry-level certification test q uestions are review ed every tw o to three y ears b y up to 2 0 sub j ect matter ex p erts, 4 0 % of w hom are w ork ing p ractitioners. F acilitated by AS technical staff, the entry - level test w ork shop f ollow s the same p rocess as all other A S E test q uestion d evelop ment w ork shop s. “ I t’ s a stout test; it’ s very comp rehensive, ” S aia said . The entry-level certification ex p ires af ter tw o y ears, and recip ients are not eligible for recertification b ecause, b y that p oint, they should have p rogressed to the p rofessional-level certification that d esignates them as an ex p erienced w ork ing technician. L earn more ab out A S E ’ s entry-level certification at ase.com/ entry - level. R egistration f or A S A ’ s f uture W eb inar W ed nesd ay series is availab le at asashop . org/ w eb inars.
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39% of U.S. Reduced, Eliminated Insurance D ue to the p and emic, unemp loy ment rates sk y rock eted in 2 0 2 0 to astound ing levels, f orcing many A mericans to struggle to mak e end s meet. A s a result, w hen look ing to cut costs, though 2 6 % said that insurance w ould never b e trimmed f rom their b ud gets, others had no choice b ut to cut or eliminate insurance coverage altogether. V alueP enguin’ s most recent survey f ound almost 3 9 % of A mericans had to red uce or eliminate insurance costs to help them save money or b ecause they f ound themselves unemp loy ed . A lmost f our in 1 0 A mericans cut b ack on insurance coverage in 2 0 2 0 , p rimarily to save money . That numb er j ump s to 6 5 % of those laid off or furloughed due to the coronavirus p and emic. H ealth insurance w as the most common p olicy consumers d ecreased coverage f or or eliminated altogether, f ollow ed b y auto insurance and d ental insurance. Source: V alueP eng uin
36 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 37
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A Closer Look at Calibration Documentation and Technical Changes by Emmariah Holcomb, glassBYTEs.com
“ There are various step s involved w hen y ou d iscuss calib ration and it’ s imp ortant to und erstand and d ocument, ” said Darrell A mberson, C ollision I nd ustry E lectronic C ommerce A ssociation ( C I E C A ) calib ration committee memb er, as he b egan d escrib ing the b usiness review related to calib ration in an ind ustry w eb inar. The event, 2 0 2 0 R 2 C I E C A S T, w as hosted b y C I E C A and gave a technical up d ate on changes that have b een mad e, a b usiness review on changes to calib ration and p arts and materials p rocurement. Technical Review A new work ow was established f or calib ration and scanning that includ ed A D A S f eatures, and accord ing to Dan W ebster, C I E C A architecture committee chair, the d ata that w as not shared b etw een the collision and rep air ind ustries b ef ore w as now ab le to b e id entified. A calib ration aggregate w as ad d ed to d escrib e inf ormation f or
p re- , interim- and rep eated f or p ost- rep air. A ccord ing to W eb ster, a calib ration d etail aggregate w as ad d ed to d ocument calib ration d etails p rop erly . “ There w as also scan inf ormation and scan d etail aggregates that w ere ad d ed to d escrib e the scanning inf ormation as w ell as ex tra d etails, ” said W eb ster. Calibration Recap A mb erson q uick ly outlined several step s associated w ith calib rations, the first being to properly record the D ocument S can R esults ( D TC s) . A ccord ing to A mb erson, there should b e a p rintout or a virtual cop y of all of the D TC s and all of the mod ules tested , w hich should includ e the V I N associated w ith the scanned vehicle. “ I t’ s also imp ortant to notif y the ow ner of the k now n A D A S sy stems and up d ate them on these f eatures b ef ore it is returned to O E M specifications,” said Amberson. A ccord ing to his p resentation, it is imp ortant to note calib ration or re- learn inf ormation may or may
not rep orted via D TC s, and calib ration or re- learn inf ormation may b e f ound via S can Tool D ata S tream, w hich is outsid e of the manuf acturer’s specifications. D ocumenting should also includ e the vehicle’ s A D A S f eatures, using a check list, as w ell as the p arts and rep air op eration includ ed . “ Y ou d on’ t alw ay s have to use a check list, b ut y ou should have a form of verification for what is d one, ” said A mb erson. H e also noted one should also k eep d ocumentation of the comp leted calib ration p rocess. Tow ard the end of his p resentation, he show ed a vid eo that summariz ed all of the step s, f rom the first consultation with the customer, scanning the vehicle, comp leting d y namic and static calib rations to testing the vehicle w hen the calib ration is comp lete. We thank g lassB Y T E s.com for reprint permission.
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Safelite to Close Business Unit S af elite A utoglass notif y ied emp loy ees and k ey customers J an. 4 it intend s to end its w holesale op eration, S ervice A uto G lass, this w eek . S af elite G roup w ill officially sunset the Service Auto G lass b rand and the w holesale sid e of its b usiness J an. 5 . “ I am ex tremely p roud of the role our w holesale b usiness p lay ed in our comp any ’ s history . This d ecision is intend ed to allow us to f ully f ocus our energies and resources on our core b usiness, ” said T om Feeney, p resid ent and C E O of the S af elite G roup . The w arehouses are ex p ected to remain op en and to b e used f or internal d istrib ution. S af elite’ s w holesale d ivision has faced challenges over the years most notab ly selling to a client b ase w ith w hich it of ten comp etes. “ M oving f orw ard , our w holesale customers w ill still have access to p arts through the same sup p liers w e use. W e w ill b egin actively notif y ing these customers { J an. 4 } , ” said F eeney . We thank g lassB Y T E s.com for reprint permission.
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38 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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GM Pays $121M Over Ignition Switches, Power Steering, Airbags by David A. Wood, CarComplaints.com
G eneral M otors has agreed to settle class action claims f or economic losses suffered by owners and lessees of vehicles that w ere recalled in 2 0 1 4 f or p rob lems related to the ignition sw itches, p ow er steering, k ey rotations and sid e airb ag w iring. The plaintiffs claim they overp aid f or their vehicles, allegations d enied b y G M w hich d ecid ed to settle the law suit b ecause of the continued ex p ense of litigation. The G eneral M otors settlement f und w ill b e $ 1 2 1 . 1 million, and although the law y ers w ho sued are ex p ected to receive $ 3 4 . 5 million, no estimates have b een reached ab out w hat vehicle ow ners may receive b ecause much d ep end s on how many owners and lessees file claims. I n ad d ition, p ay ment amounts to eligib le class action memb ers w ill vary d ep end ing on w hich recall ap p lied to their vehicle, the cost to imp lement the settlement and the numb er of G M customers
who file claims. The settlement includ es all ind ivid uals, b usinesses and organizations, but daily rental eet businesses, governmental entities and certain consumers are not includ ed in the settlement. The settlement also d oes not includ e the release of claims f or w rongf ul d eaths or inj uries. The $ 1 2 1 million settlement f ollow s multip le other actions related to G M ’ s ignition sw itches, includ ing $ 5 9 5 million to resolve d eath and inj ury comp ensation claims, $ 5 7 5 million to settle other d eath and inj ury claims and a sharehold er law suit, and another $ 9 0 0 million to settle a government criminal p rob e. V isit G M I gnitionS w itchE conomicS ettlement. com or call 8 7 7 5 4 5 - 0 2 4 1 to see if y our vehicle is covered b y the settlement. We thank CarComplaints.com for reprint permission.
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Used-Car Sales Likely Down for 2020, but Close Year on High Note by Joe Overby, Auto Remarketing
U sed - vehicle sales f or 2 0 2 0 w ere expected to finish % softer than the final 2019 tally, but it appears the y ear at least closed on a p ositive note f or p re- ow ned . I n a f orecast released D ec. 2 8 , TrueC ar w as p roj ecting 3 . 1 million used - vehicle sales f or D ecemb er, w hich w ould b eat N ovemb er sales by % and prior-year figures by %. That would put the final yearend total at a p roj ected 3 8 . 4 million used sales f or 2 0 2 0 , a 6 % d rop f rom 2 0 1 9 , accord ing to TrueC ar. S ep arately , C ox A utomotive analy st Kayla R eynolds said in an earlier D ecemb er interview that 2 0 2 0 w as ex p ected to close w ith 3 6 . 3 million used - car sales overall, w ith used retail ( sales f rom d ealers) at 1 9 . 3 million. F or 2 0 2 1 , it is ex p ected that the used total w ill climb to 3 9 . 3 million. O n the new - car sid e, TrueC ar w as f orecasting total sales of 1 4 . 6 million f or f ull- y ear 2 0 2 0 , a 1 5 % d rop . F or retail new - car sales, sp ecifically, it was pro ecting 12. mil-
lion, an 8 % d ecline. F or D ecemb er, in p articular, TrueC ar w as p roj ecting 1 . 6 1 million total new-car sales a .5% y ear- over- y ear d ecrease, ad j usting for selling days and 1.43 million retail sales, d ow n 2 . 2 % . “In the final days of 2020, we can finally look in the rearview mirror and ap p reciate the tremend ous recovery that the automotive ind ustry has mad e since the p and emic d erailed auto sales in M arch. R etail vehicle sales have nearly reached normal levels w ith sales d ow n only 2 . 2 % f rom last y ear, w hich is a truly imp ressive outcome, ” TrueC ar D irector of O E M A naly tics N ick W oolard said in a new s release. “ The momentum f rom a strong third q uarter carried into the fourth quarter and solidified the ind ustry ’ s comeb ack , ” W oolard said . “ P rod uction and inventory have gone b ack up in the f ourth q uarter and , as a result, retail sales are up 3 4 % q uarter- over- q uarter. ” We thank Auto Remarketing for reprint permission.
Dealership Buy/Sell Market on Pace for New Record by Auto Remarketing Staff H ere’ s p otentially a p ositive record on p ace to b e set d uring this tumultuous y ear. K errigan A d visors rep orted D ec. 1 4 that the d ealership b uy / sell mark et continued to soar d uring the third q uarter, p utting it on track to surp ass record transaction numb ers estab lished in 2 0 1 5 . And with a urry of mega dealer transactions and high d ealership earnings, the firm’s Third uarter 2 0 2 0 B lue S k y R ep ort also highlighted that b lue- sk y values shot to unp reced ented levels d uring the q uarter, too. “ A s w e p red icted , there w as no sof tening of this record - b reak ing mark et, ” E rin K errigan, K errigan A d visors f ound er and managing d irector, said in a new s release. “ A 9 4 % y ear- over- y ear rise in d ealership earnings in Q 3 w as driven by higher vehicle gross profit margins, red uced op erating ex p enses, limited inventory ( w hich d rove up p rices) and increased op erational efficiency,” errigan continued. “ This created a p erf ect storm f or a w hite- hot b uy / sell environment, one that w e p red ict w ill surp asses
the historic levels of 2 0 1 5 . ” K errigan A d visors ind icated 7 3 d ealership b uy / sell transactions w ere comp leted d uring Q 3 , p ushing the total to 18 transactions for the first nine months of the year. That figure rep resents a 1 5 . 5 % increase ab ove the amount recorded during the first nine months of 2 0 1 9 , accord ing to d ata f rom The B ank s R ep ort, A utomotive N ew s and K errigan A d visors’ research. D esp ite p eriod s of retail d isrup tion d ue to C O V I D - 1 9 , K errigan p ointed out that 2 0 2 0 thus f ar has achieved the highest level of transaction activity since 2 0 1 5 . “ O f p articular note w ere the high numb ers of multi- d ealership transactions comp leted in Q 3 , includ ing mega d ealer transactions, rep resenting 2 5 % of the b uy / sell market for the first nine months of the y ear. W e ex p ect this trend to continue into 2 0 2 1 , ” said K errigan, whose firm advised on the sale of 22 d ealership s d uring the p ast q uarter. A ccord ing to the B lue S k y R ep ort, p ub lic and p rivate d ealership valuations ex ceed ed p rior highs. We thank Auto Remarketing for reprint permission.
autobodynews.com / FEBRUARY 2021 AUTOBODY NEWS 39
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40 FEBRUARY 2021 AUTOBODY NEWS / autobodynews.com
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