February 2022 Southwest Edition by Autobody News

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U-Haul Study: More People Moved to Texas in 2021 Than Any Other State by Bethany Blankley, The Center Square

More U-Haul customers booked one-way rental trucks to Texas than any other state in 2021, supporting an ongoing trend that Texas remains the destination of choice for Americans relocating nationwide. Overall moving traffic across Texas increased in 2021. Arrivals comprised 50.2% of all one-way U-Haul traffic last year in Texas, the U-Haul’s analysis of national migration trends found. According to transactional data compiled for the national moving

company’s annual Growth Index, Texas narrowly edged out Florida last year as the primary one-way destination for self-movers in 2021. Behind Florida, Tennessee ranked third, South Carolina fourth and Arizona fifth. Indiana, Colorado, Maine, Idaho and New Mexico rounded out the top 10 moving destination states of 2021, with customers renting U-Haul trucks one-way, primarily heading to the Southeast, Southwest and Rocky Mountain regions. The most one-way U-Haul cusSee U-Haul Study, Page 16

Toby Chess Shares Best Practice Documents for Collision Repairers by Toby Chess

This is the first installment of Toby Chess’s newsletter, in which he will share more than 100 Standard Operating Procedures (SOPs) for auto body shops, tools, trends in repair and anything he thinks could help shops improve. Chess suggests printing out each SOP and putting them in a book. He said Steve Morris had a great idea to print them out for each operation being performed on a repair and have the technician sign and date them, and place them into the customer’s file.

These SOPs will standardize your repairs, increase efficiency and quality, reduce comebacks, improve estimate quality and add to the bottom line. Here are the first five in the series: 1. Best Practices Before Accepting Used Painted Parts 2. Best Practices for Applying Weldon Aluminum Studs 3. Best Practices for Preparing Aluminum for Repair and/or Welding Part 2 See Toby Chess Shares, Page 20

Vol. 40 / Issue 2 / February 2022

Latest ‘Who Pays’ Survey: Total Loss Administrative Fees Increasingly Common Direct repair agreements—and in California, state regulations—prohibit participating auto body shops from charging administrative fees related to processing of total losses. But the percentage of U.S. shops overall saying they are paid such an administrative fee has risen steadily over the past several years, according to the findings of the “Who Pays for What?” survey series. In 2021, a strong majority of shops (72%) said they are paid always, or most of the time, when they bill for this work. By comparison, when the “Who Pays for What?”

surveys began in 2015, just 46% of shops said they were regularly paid a total loss administrative fee when they invoiced for it. Likewise, the percentage of shops that say they have never billed for this fee also has declined steadily since 2015. Today, only 11% of shops say they never charge a fee to process a total loss, but back in 2015, that figure was 30%. “Processing a total loss has become more complex than it used to be,” said Mike Anderson of Collision Advice, who conducts the quarSee ‘Who Pays’ Survey, Page 14

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well by John Yoswick

A national survey of collision repairers in the final two months of 2021 found well over half of shops (58%) expected their full-year sales to outpace 2020, with nearly one in five shops predicting they would end 2021 with a year over year increase of 20% or more. However, the survey, conducted by CRASH Network, found about a quarter of shops (23%) predicted 2021 sales will fall short of their 2020 numbers, with nearly one in 10 saying they expect to be down 20% or more compared to last year. “Parts availability and increase in total losses has pushed business down,” said one East Coast shop owner. “We have plenty of work to increase our numbers, but not enough employees to get it completed,” said a shop owner in Oklahoma. “We are running a 10-week backlog with over 70 cars in-process.” “Business is picking up, but now sales are limited by parts and

lack of technician staff,” a Southern California shop owner concurred. “I need two body techs and another prepper in the paint shop.” The survey found the upward trend in business optimism over the past year came to a halt in the fall. The majority (61%) said they are “not very” or “not at all concerned” about their business still operating a year from now, and that was up from 43% a year earlier, but down slightly from 64% in mid-2021. Three in 10 of the shops acknowledged being “somewhat” concerned, up from 24% in two surveys earlier in 2021. About 10% described themselves as “very” or “extremely” concerned about their business viability, down from 26% a year ago, but unchanged from last spring. “Inflation is going to take a huge bite out of profits,” a Massachusetts shop owner predicted, saying he was “somewhat” concerned about the shop’s future. Still, most shops expect to make it through 2022. See National Survey, Page 22

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CONTENTS ABAT’s Consumer Complaint Form Drive is Making a Difference �� 4 Arizona Collision Repair Center CFO Leading the Way for Women in the Industry �� 11 Classic Collision Opening Brownfield Location in Colorado �� 10 Houston Maaco Owner Awarded 2021 Maaco Cup �� 6 Louisiana Fire Chief, Sheriff’s Deputy Arrested for Insurance Fraud �� 12 New Cars for Texas Head Start Families Make for a Memorable Holiday �� 10 SCRS to Host Open Board Meeting Jan. 19 in Phoenix �� 12 Tesla Giga Texas Grand Opening Party Scheduled for Early 2022 �� 6 Toyota Adds Arizona Mobility Test Center to its Proving Grounds �� 14

Insurance Adjusters of the Future �� 34

Anderson - Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? �� 26 Yoswick - Do Automakers, Insurers See Auto

Touch of a Button’ �� 44 Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, 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. ©2022 Adamantine Media LLC.

Audi South Austin �� 37

Kia Motors Wholesale Parts Dealers �� 43

Audi Wholesale Parts Dealers �� 39

Larry H. Miller Ford Mesa �� 22

AutoMart Mitsubishi �� 31

LKQ Corporation �� 15

Axalta Coating Systems �� 13

Mac Haik Ford-Lincoln �� 23

BMW of South Austin �� 37

Mazda Wholesale Parts Dealers �� 40

BMW Wholesale Parts Dealers �� 42

Mitsubishi Wholesale Parts �� 36

Bob Utter Kia �� 20

MOPAR Wholesale Parts Dealers �� 33

Car-O-Liner �� 5

NOROO Paint & Coatings �� 17

Certified Automotive Parts Association �� 10

North Freeway Hyundai �� 10

National Survey of Auto Body Shops Finds

Chevyland �� 28

Northside Chevrolet �� 27

Revenues Going Up but Concerns Rising

Christopher’s Dodge-Ram �� 14, 31

Part of the Club �� 31

as Well �� 1

Classifieds �� 46

Peak Kia �� 31

Rivian Ends 2021 with 1,015 Vehicles Produced,

Emich Chevrolet �� 31

Santa Fe Kia �� 26

Emich Volkswagen �� 31

Schomp Mazda �� 18

Equalizer Auto Glass Tools �� 6

Scoggin-Dickey Parts Center �� 8-9

Finnegan Chrysler-Jeep-Dodge-Ram �� 2

Spanesi Americas �� 21

Fisher Acura �� 31

Steve Landers Auto Group �� 29

Fisher Honda �� 31

Stevinson Toyota West �� 31

Flatirons Subaru �� 31

Subaru Wholesale Parts Dealers �� 35

Ford Wholesale Parts Dealers �� 41

Symach �� 12

Fowler Honda �� 26

Toyota of Laredo �� 11

Freeman Mazda �� 32

Toyota Wholesale Parts Dealers �� 34

Garcia Honda �� 16

Valspar Refinish �� 7

Boyd Group Completes CEO Plan �� 46 Caliber Named to Best In Business List �� 12 Collision Engineering Program Gets Grant �� 44 Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 �� 30 DCR Systems Sponsors Matrix Trade Institute � 22 Energy Commodity Prices Increased by 59% in 2021, EIA Reports �� 40 G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving �� 36 GM Debuts Chevrolet Silverado EV with 400-Mile Range �� 18 Latest ‘Who Pays’ Survey: Total Loss

COO Retires from Company �� 42 SEMA Group Announces Rebrand �� 11

Certification Requirements? �� 32

SEMA President and CEO to Retire �� 26

Estimating ‘Not There Yet’ �� 28

Tesla to Recall 356K Model 3 Cars with

3 Winners of Equalizer ‘Tools for Techs’

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Malfunctioning Rearview Cameras �� 42 Toby Chess Shares Best Practice Documents

NATIONAL

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BMW’s New Car Changes Color ‘With the

Body Shops Meeting Both DRP and OEM

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Administrative Fees Increasingly Common �� 1 COLUMNISTS

800-699-8251

Auto Body Shop Owner Steps into World

INDEX OF ADVERTISERS

REGIONAL

Advertise in our Classified Section for $50 per column inch!

for Collision Repairers �� 1 U.S. Lawmakers Propose Bill Making Staged

Campaign Receive Glass Removal Kits �� 16

Collisions Federal Crime �� 22

Advantage Parts Solutions Appoints Executive � 42

Used Electric Car Prices Soared in 2021 �� 29

GM Wholesale Parts Dealers �� 45

Volkswagen Wholesale Parts Dealers �� 44

Albert Kemperle, Inc. Joins Wesco Group �� 27

Volkswagen will Launch EV Bus on ID. Platform

Honda-Acura Wholesale Parts Dealers ��24-25

Wrenchers �� 19

Hyundai Wholesale Parts Dealers �� 44

Young Chevrolet �� 30

ASE Celebrates 50th Anniversary �� 44 Author/Teacher Trains and Mentors the

March 9 �� 46

Industrial Finishes and Systems �� 48

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 3

ABAT’s Consumer Complaint Form Drive is Making a Difference by Autobody News Staff

During a recent meeting of the Auto Body Association of Texas (ABAT), the association shared information about its discussions with the Texas Department of Insurance (TDI) regarding labor rates, as well as the progress made with ABAT’s Consumer Complaint Form drive. The meeting was led by Jill Tuggle, ABAT’s executive director and president of Summit Marketing Solutions, and Burl Richards, president of ABAT’s board of directors and owner of Burl’s Collision Center in Henderson, TX. Discussions With Texas Department of Insurance (TDI) Since the formation of ABAT seven years ago, Richards said the association has met with TDI to try and understand who determines the prevailing market rate. “TDI made it clear that it’s up to the shops to decide their posted rates,” said Richards. “It’s up to a court of law to determine if it’s fair and reasonable.” He shared a TDI Commissioner’s Bulletin dated August 2010: “The Department is also concerned that setting reimbursement rates artificially low for specific motor vehicle repairs and parts that are used to make the repairs may lead to substandard repairs, which may also impact the warranty on a vehicle. The majority of personal automobile insurance policies require insurers to pay the amount necessary to repair or replace the property with other(s) of like kind and quality. “It is an unfair claim settlement practice for insurers to pay claimants an amount for the repair of the vehicle, including parts, that is not a reasonable amount for repairing or replacing the property with other of like kind and quality or is not sufficient enough to make the repairs necessary for the manufacturer to honor the vehicle warranty.” While ABAT is attempting to work with TDI to address the issues Texas auto body shops are dealing with, Richards said member shops dispute the process and data used to

determine the market rate, and asserts it should exclude any contracted rates. He recommends shops access www.laborratehero.com, which shows the retail door rate shops have reported by ZIP code. Mike Anderson, president of Collision Advice and an ABAT member, said staffing is the top issue he observes from shops across the country. “Until our industry can pay a more competitive wage, we’re not

going to fix that staffing problem,” he said. Anderson said at the end of the day, the industry is never going to hire the brightest and best and compete with other industries until we can pay people a better wage. “This can only be accomplished by capturing more not-included operations, seeing an increase in labor rates, or a combination of both,” he said. Tim Ronak, senior services consultant for AkzoNobel, said part of the challenge is the compensation received on an hourly basis. “We’ve been watching individuals use parts margins to subsidize what they are paying their production staff,” he said. “A significant number of shops are making less than 50% gross margin on labor. When that happens, the technicians are making proportionately more money on labor sales than the shops are. The shop assumes all of the liability and business risk, yet the shop is getting an insufficient return on labor sales and the technicians don’t have any risk.” The goal, according to Ronak, is to create a way to recognize there needs to be a retail pricing differential in the marketplace. “Rather than negotiating a $2 to

4 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

$3 break, we should look at those as a percentage discount from the retail rate,” he said. “When we raise our retail rate, instantly, that should track back to any type of insurer agreement by maintaining a consistent ‘trade discount’ from the consumer retail price.” Ronak explained the differences in the retail, market, prevailing and contracted rates: Retail rate: a shop’s individual posted rate Market rate: the average rate of all shops’ retail door rates in the local area Prevailing rate: an asserted rate by a third-party using the survey method they decide Contracted rate: the rate agreed to by a third-party contract and conditional on receiving work through a DRP “Ideally, the prevailing rate should be the same as the market rate unless those determining the prevailing rate in a market use contracted or discounted pricing values,” explained Ronak. “When that occurs, it may understate the actual market rate.” Richards stressed the importance of having a fair system in place. “We’re allowing an insurance company to dictate what those prevailing rates are and we aren’t doing anything about it; we’re not questioning them,” he said. Consumer Complaint Forms Richards then shared information about ABAT’s initiative to raise awareness through the use of Consumer Complaint Forms. After years of talking to TDI, in January 2020, Richards came up with the idea to create a consumer complaint form customers could fill out to file with TDI and send to the state legislator, senator and representative. For the forms to be effective, Richards said shop owners and managers need to educate staff and customers about the process and benefits. He advises the following: 1. Spend 30 minutes with staff ex-

plaining the process with the forms. 2. Have a conversation with customers when they drop off their vehicles and let them know about the potential challenges with the insurance company. “We’re not trying to start a fight; you are just educating the consumer,” said Richards. 3. Make sure to communicate issues as they arise during the repair process. “Don’t be embarrassed or ashamed to tell a customer that you did something for them,” he said. “It’s not ‘the greedy body shop.’ It’s the body shop that is trying to get you back in a safely repaired vehicle.” 4. Go over the form with customers when they pick up their vehicles and have them initial and sign it. 5. Send the form to jill@abat.us. “We are at a critical time in our industry where things have to change,” said Anderson. “That change has to come from each and every one of us doing our part.” He said this isn’t about fighting insurance companies or being the bad guy. “It’s taking a few moments to fill out a document and start building a foundation case for discussion in the future,” he said. “Something has to change!” Anderson shared an example of his nephew, who went to work at Amazon straight out of high school and now, at 22 years old, is making more than $100,000 and has stock options, fully-paid health insurance and tuition reimbursement. “This is what we are competing with,” he said. Another example Anderson shared was a burger franchise in his local area giving people a starting pay of $20 per hour, 100% paid health insurance, three weeks of vacation and up to $10,000 per year in tuition or childcare reimbursement. “How do we compete with that unless we can offer a more competitive wage just for entry-level staffing?” he said. Tuggle said the efforts by Texas body shops having customers fill out the forms are making a difference. “It’s creating a movement across the nation with auto body asSee Making a Difference, Page 27

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Houston Maaco Owner Awarded 2021 Maaco Cup Maaco recognizes franchise owners who exemplify operational excellence each year with the coveted Maaco Cup award. This past year, Kevin Taylor, owner of Maaco Houston, in Texas, was the outstanding franchisee to receive this prestigious award. Taylor’s facility is an I-CAR Gold and Platinum certified center. He is also in an elite class of centers within the Maaco family and one of the first to earn the Maaco Diamond certification, the highest level of certification within the Maaco network. Taylor has a total staff of 27, with six managers and 21 technicians. Before becoming a Maaco owner, Taylor received his MBA from Texas Tech in 2005, and worked in the capital finance market. At one time he thought he was Wall Street bound. “I was a high producer during my time in the financial world, but I knew the corporate life was not for me,” said Taylor. “I did not like wearing a suit and going to an office building every day. “After my father retired from

the military after 30 years of service, he purchased a Maaco franchise. My mom ran all the office operations, payroll and human resources. After graduating from business school, I began helping them out on the weekends,” continued Taylor. “Their operations were small and somewhat struggling, but I saw potential in the industry and thought that I could branch into untapped markets and create a business that I could differentiate from the rest.” Taylor took a bigger role in his father’s business and in two years doubled their sales, reaching the million-dollar milestone. He then opened his own Maaco in 2009 and immediately set out to differentiate himself from his competition. He upgraded to a more modern, state-of-the-art facility, and invested in new equipment, training and certification. He also began building a solid team, training them in his way of doing business. “I recruited people from different service industries that had a continuous improvement mindset, and I trained them in all the aspects of gaining and keeping a customer,”

said Taylor. “We focus on producing high-quality repairs, delivered on time, that are profitable for us, and a value for our customer.”

After 16 years in business, Taylor’s vision of what he wanted to be, and building processes, the team and the culture to get there, has earned him the prestigious Maaco Cup Award. “It has taken a lot of work to get where we are, but it has been rewarding,” said Taylor. “When the pandemic hit, we were very proactive in adapting to the changing mar-

ket needs. With many shops closing, I felt like there was an opportunity to capitalize and grow. While others were hesitant, I knew if we focused on the things we could control and ignored all the fear and negativity we could be better than ever. As a result, we have continued to grow, and we are now more efficient than ever. It was an obstacle, but we approached that as an opportunity to show more value to our customers.” Being awarded the Maaco Cup means a Maaco franchisee has achieved a level of excellence in performance among a network of more than 400 locations nationwide, and Taylor is humbled by the honor. “There are amazing owners within the Maaco family and most of us go to work every day trying to be better than we were the day before,” said Taylor. “One of the philosophies my team and I embrace is that we don’t worry about things we can’t control and focus on the things that we can, and that has served us well.” For more information about becoming a Maaco owner, visit Maaco. com. Source: Maaco

Tesla Giga Texas Grand Opening Party Scheduled for Early 2022 by Maria Merano, Teslarati

Tesla Giga Texas production seems set to start early next year, making 2022 another exciting year for the company. Tesla CEO Elon Musk recently confirmed there will be a grand opening party for the Model Y and Cybertruck production facility early next year. As the buildout of Giga Texas comes to a close, it is getting harder to see inside the massive Gigafactory and spot any interesting updates about the site. Musk acknowledged the situation and announced Tesla would hold a Giga Texas grand opening party with factory tours early next year. Tesla Gigafactory grand openings have always be fun events. Tesla has made it a point to celebrate every new factory. For Giga Shanghai, Musk flew to China and gave people a sneak peek at his dance skills during the grand opening party—which also happened to include a marriage proposal. For Giga Berlin, the party didn’t stop, and neither did the dancing. Tesla planned a country fair/rave party for Gigafactory Berlin’s grand

opening party. During Giga Fest, Musk had another fun surprise: Giga Bier. Tesla’s grand opening party for Giga Texas will probably just as fun as Giga Shanghai and Giga Berlin’s celebrations. In October, Musk seemed to like the idea of a Texas BBQ party for the Tesla gigafactory in Austin. The Thrillist said Central Texas style BBQ has become the benchmark for evaluating the best slowsmoked meats. “When people say ‘Texas style,’ they mean ‘Central Texas-style,” it wrote. It would be fun if Tesla held a BBQ party serving all the possible barbecue styles found in Texas. In some ways, Tesla’s grand openings for its Gigafactories have become a way for the company to “meet neighbors.” Tesla Gigafactory festivities are a way for people in the local community to familiarize themselves with the EV maker and celebrate another milestone with the company. And what better way to celebrate with the local community in Austin than with a good old-fashioned Texas BBQ.

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Classic Collision Opening Brownfield Location in Colorado Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, is kicking off the new year by entering its 13th state and opening its 174th store. On Jan. 3, Classic announced the opening of its newest facility in Thornton, CO. This location is conveniently located just off 104th Avenue in the suburb of Thornton, approximately 24 miles from Denver International Airport, in a 23,000-square foot building. “We are excited about entering the great state of Colorado,” said Toan Nguyen, CEO of Classic Collision. “As we establish our presence in this new market, we are confident this new center will have the expertise, culture and technology to be successful as the industry evolves.” Classic Collision expects to continue its torrid growth pace, after adding 115 locations in 2021 alone. Source: Classic Collision

New Cars for Texas Head Start Families Make for a Memorable Holiday Two wishes for wheels came true as Bates Collision Centers and Harris County (TX) Department of Education’s Head Start division presented two special moms with rehabbed vehicles filled with presents as part of their annual Responsible Parenting Award. In its 23rd year, Bates Collision Centers presented cars No. 41 and 42 to Destini Rhodes, a teaching assistant at Sheffield Head Start, and Alionuska Montalvo Perez, a Pugh Head Start mom. Both were nominated by Head Start staff. Twenty-eight-year-old Rhodes is a full-time employee and student at San Jacinto College pursuing an associate’s degree in early childhood education. She currently relies on a borrowed vehicle to shuttle her kids and herself to and from school and work. After unwrapping her new vehicle, a 2011 Chevy Equinox, she expressed disbelief over the generous gift. “I feel very grateful,” said Rhodes, a single mother of three children. “I’ve never been given anything in my life before. I’ve always had to work for everything.

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away a priority because they recognize the sacrifices parents often make to provide for their children. “Destini is an example of the kind of family that we are really searching to help with this project,” said Leila Bates. “She’s not just sitting back waiting for good things to happen. She’s making good things happen for her family.” Montalvo Perez, a Cuban immigrant who arrived in Texas five years Alionuska Montalvo Perez hugs Bates Collision Center ago in search of a better co-owner Leila Bates. life for her family, also Throughout the year, the Bate- received a vehicle—a 2013 Mazda ses search for salvaged or donated 3. Her 4-year-old son, Jencarlos vehicles that can be fixed up and giv- Millan, is enrolled at the HCDE en to deserving parents during the Pugh Head Start center. holiday season. Bates employees “I am so grateful and redonate their time and skills to work lieved,” she said. “Now I can go out on the cars and help fill them with with my son and go to the grocery gifts. Other community members store whenever I want. When I take and businesses donate gas, insur- the bus, it becomes a whole-day orance and materials needed to rehab deal. This car is truly a blessing.” the cars. Shop owners Lee and Leila Source: Harris County Department Bates have made this annual give- of Education

I can’t even believe that I’m being recognized for being a good parent. It’s something that you just do because you’re a parent.”

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Arizona Collision Repair Center CFO Leading the Way for Women in the Industry In an industry dominated by men, Kelly Huard is blazing a trail for other women who might aspire to be leaders in the automotive field. Prior to joining Painter’s Collision Centers in Queen Creek, AZ, as the CFO in January 2021, Huard achieved great success in the fields of commercial real estate, commercial HVAC and restaurant and hospitality. She is well-versed in setting up infrastructure, including human resources, payroll, administration, SOPs and all financial services, which applies well to her current role. As the CFO of Painter’s Collision Centers, Huard, along with owner/operator James Huard, has developed a strategic business plan to purchase underperforming collision repair facilities and grow them, forming a regional MSO. “Kelly brings a high-level flair to our industry,” James Huard said. “She’s progressive, disciplined and a leader in every way.” “When I met Jim, I was intrigued by his passion for the collision repair industry,” Kelly Huard

said. “Through our discussions over the years about quality, teamwork and the challenge to return the customer’s vehicle—which keeps their life moving—to them as soon as possible, the industry struck me as being highly essential and I wanted to be a part of it. “I broke into the industry through consulting work, as quite often career collision repairers, while good at operating their facility, need assistance in creating proper financials,” she continued. “Jim taught me that the biggest asset in running a shop is knowing your margins, so I incorporated those into every financial package I prepared while consulting for the industry. Very quickly, I wanted more involvement in the industry. “Rather than just doing the financial reporting, I wanted to learn to run one, as I found myself having so many ideas for how to better the businesses,” Kelly Huard said. “The financials are a window into the operations. Through the financials, you can see most of the strengths and weaknesses of any operation. I had to be a part of this.

“Jim and I decided to take the leap and purchase a shop in Queen Creek, AZ,” she continued. “We identified the area as one of the top growing areas in the country and wanted to bring quality, efficiency and good values to the industry. We hit the ground running, with Jim building the teams, the business and the operation’s SOPs, while I built the infrastructure, financials, compliance, licensing, etc. “The two of us bring corporate structure with independent ownership care. We have developed a culture where our team members are excited to come to work every day,” Kelly Huard concluded. “As former employees ourselves, taking care of our team is of the utmost importance to us. We are very grateful for their dedication and hard work. In one year, we have exceeded our projections and this is only the beginning. We can’t wait to build an MSO built on quality, teamwork and excellence.” Source: Painter’s Collision Centers

SEMA Group Announces Rebrand

The Young Executives Network (YEN), a SEMA group dedicated to cultivating talent in the automotive aftermarket, is now the Future Leaders Network (FLN). The new name more accurately reflects the network’s 1,142 membership, which includes employees ranging from entry-level staff to managers, and trade workers, executives and business owners. FLN Chair Nick Caloroso said the former Young Executives Network name did not accurately reflect the group’s membership. The new Future Leaders Network name puts the focus on the group’s purpose and goal: Growing and supporting individuals to become successful leaders, regardless of their actual job title or position. Membership is open at no cost to all employees under the age of 40 who work for a SEMA member company. Source: SEMA

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Caliber Named to Best In Business List Caliber, whose automotive service brands include Caliber Collision, Caliber Auto Care and Caliber Auto Glass, has been named to the Inc. 2021 Best in Business list. Inc. Best in Business Awards honor companies that have gone above and beyond to make a positive impact. By leading with its purpose of Restoring the Rhythm of Your Life, Caliber was awarded a gold medal in the Extra Large Company Size (500+ employees) category and is the only auto services provider to be recognized. Committed to its company mission to be the most trusted automotive service provider in every community it serves, Caliber led through the challenges of 2020 and 2021 by providing a safe workplace for teammates, continuing to serve customer needs and supporting each community it serves all of which continued to elevate the automotive repair and maintenance service experience. Source: Caliber

SCRS to Host Open Board Meeting Jan. 19 in Phoenix The Society of Collision Repair Specialists (SCRS) will host an open board meeting from 2-5 p.m. Jan. 19 in the Sunrise Room at the Hilton Phoenix Resort at the Peak, in Phoenix, AZ. The open board meeting will proceed the first Collision Industry Conference (CIC) meeting of 2022, held the following day, Jan. 20, from 8 a.m.-5 p.m. at the same location. Hotel reservations can be made online or by calling 602-997-2626, using booking code “Collision Industry Conference.” “This past year marked a slow return to in-person events, culminating with a really successful gathering at the 2021 SEMA Show,” said SCRS Chairman Bruce Halcro. “We are all very eager to return back to our regularly scheduled quarterly live meetings in conjunction with CIC, and our board of directors welcomes anyone and everyone wishing to learn more about what SCRS is working on and the topics that are impacting our members.” SCRS invites industry members to learn about the current state of the association and industry, and

to see the meeting as an opportunity for interactive conversation with the Board of Directors and other meeting participants, and as an outlet to share feedback with the association.

educated the industry through their contributions leading the “Kool Tools” series presentations. Historically, the two members of the SCRS Education Committee would walk

“This past year marked a slow return to in-person events, culminating with a really successful gathering at the 2021 SEMA Show,”— Bruce Halcro “These events are one of the many ways in which SCRS works to keep our finger on the pulse of the industry,” said Halcro. Attendees are not required to be a member of SCRS to participate, there is no cost, and pre-registration is not required. The meeting will include updates and presentations from SCRS staff and committees outlining current and future work initiatives and will feature the annual presentation of “Kool Tools From the SEMA Show and Beyond,” led by the SCRS Education Committee. For years, Toby Chess and Kye Yeung have entertained and

the halls of the SEMA Show, find items they felt stood out and purchase them to try out back at home in a working collision repair environment following the show. This January SCRS board meeting in Phoenix will carry on the work started by the duo, to present tools identified by members of the Education Committee that mark unique solutions that would be helpful in the collision repair process. For more information about SCRS, or to join as a member, visit www.scrs.com, call 1-877-8410660 or email info@scrs.com. Source: SCRS

Louisiana Fire Chief, Sheriff’s Deputy Arrested for Insurance Fraud The Jonesboro, LA, fire chief and a Jackson Parish sheriff’s deputy were arrested following an investigation into an incident involving two Jonesboro Fire Department trucks. The Jackson Parish Sheriff’s Office reported the suspected fraudulent insurance claim to the Louisiana State Police Insurance Fraud/Auto Theft Unit-Monroe Field Office in August. Brandon Brown, 37, of Jonesboro, the fire chief, and George Wyatt, 58, of Jonesboro, the sheriff’s deputy, were arrested after they were found to have allegedly falsified a crash report. According to the details in the crash report, Brown and Wyatt were the drivers of the automobiles

involved. Following interviews with a number of persons, including Brown and Wyatt, it was discovered Brown’s juvenile son was driving one of the vehicles at the time of the accident. The amount of the bogus claim was over $26,000. Charges of insurance fraud, filing or maintaining false public records, and misconduct in office have all been filed against Brown and Wyatt. They were both booked into the Jackson Parish Jail. This investigation remains active and ongoing. For more information and/or to contact the Louisiana State Police Insurance Fraud and Auto Theft Unit, visit www. lsp.org/ifu.html. Source: Calcasieu.info

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Toyota Adds Arizona Mobility Test Center to its Proving Grounds The Toyota Arizona Proving Grounds (TAPG), Toyota’s proprietary U.S. vehicle development and testing facility, will become available to the broader industry as a vehicle testing resource as it officially launches the Arizona Mobility Test Center (AMTC) at TAPG.

Toyota has tapped Intertek Transportation Technologies to operate the facility and provide tenant management and related services under a new multi-year agreement, while Toyota maintains ownership and continues its testing activities at TAPG. “TAPG has world-class resources for making ever-better vehicles, and by opening it up to the whole industry for long-term en-

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‘Who Pays’ Survey terly “Who Pays” surveys in conjunction with CRASH Network. “It can involve more teardown, more research of OEM procedures, vehicle scans and more.” According to the 2021 survey, 74% of shops itemize charges—as opposed to charging a flat fee—for total loss processing. In addition to the administrative time, these charges may include moving a non-drivable vehicle, covering the vehicle to protect it from weather, etc. In 2015, 38% of shops believed the top eight largest insurers in the “Who Pays” surveys “never” paid an administrative fee for total losses. Today, only 17% still think so. The latest quarterly “Who Pays for What?” survey is now open through the month of January. It focuses on “not-included” refinish labor operations. Shops can take the survey at https://www.surveymonkey.com/r/YDTT8NN Survey participants receive a free report with complete survey

gagements, we believe it can make an even greater impact on advancing mobility for all,” said Randy Stephens, group vice president of product performance engineering at Toyota Motor North America Research and Development. “This is also an opportunity to create new value with a capital-intensive asset, opening a revenue stream that can be used for continuous improvements on the facility that will further benefit Toyota and tenants.” Intertek provides the transportation industry with services that cover all aspects of the needs at AMTC, including staffing, scheduling, maintenance, security and overseeing all testing operations at the site. It will also market AMTC to attract tenants and manage the leasing business. “It’s an honor to partner with Toyota to oversee the daily operations of AMTC,” said Gavin Campbell, president of Intertek Transportation Technologies. “The automotive industry is going through a revolutionary change right now, and we look forward to assisting all OEMs and tier suppliers who are at the forefront of this automotive devel-

findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https:// www.crashnetwork.com/collisionadvice Source: CRASH Network

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opment by using our expertise in site management and test operations to help get their products to market with precision, pace and passion.”

programming. Toyota is also donating to St. Mary’s Food Bank in Phoenix for addressing food insecurities.

“This is also an opportunity to create new value with a capital-intensive asset, opening a revenue stream that can be used for continuous improvements on the facility that will further benefit Toyota and tenants.” — Randy Stephens Part of AMTC will include an area of land for tenants to construct their own office and garage spaces as part of their facility usage. Toyota is also constructing its own new amenities, including expanded off road test facilities and a noise passby evaluation course, to provide new and world class facilities at AMTC. Toyota is also maintaining its long-term commitment to support the surrounding community including support of Nadaburg Unified School District No. 81 in Wittman. Toyota will make another donation to help develop STEM education

The Arizona Mobility Test Center at TAPG is located in the Sonoran Desert near Wittman, AZ, a town about 60 miles northwest of Phoenix. The facility covers approximately 11,650 acres and has 77 miles of testing surfaces with 25 miles of paved roads, 52 miles of dirt tracks and a high-speed oval. TAPG was established in 1993 and has been home to testing nearly 50 Toyota and Lexus brand vehicles for the North American market during that time. Source: Toyota

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SPONSORED EDITORIAL Sponsored by: The CAR Coalition

It’s Time to Protect Your Right to Repair America’s Vehicles Car ownership has long been a symbol of independence and personal freedom in American society. Thanks to the work of the independent auto care industry, which employs 4.7 million people and includes independent manufacturers, distributors, repair shops, and parts stores, car owners can feel confident making repairs and investing in the longevity of their car. However, due to embargoed technology solutions and anti-competitive behaviors within the marketplace, local auto repair shops and some dealerships are feeling the pressure of high costs and unnecessary burdens as a result of car repair restrictions.

affordable automobile collision repair parts,” says Justin Rzepka, Executive Director of the CAR Coalition. “It’s time for Congress to get serious about solutions, including the SMART Act, to ensure businesses can offer the auto repairs their customers want.”

Original equipment manufacturers (OEMs) are increasingly using a range of tactics, like patent thickets, controlling telematics data, position statements, repair procedures, and trademarks, to force repair shops and dealerships to use OEM parts and to steer more business to their preferred repair networks. These practices not only severely limit consumer choice, but cause economic ripple effects for businesses nationwide.

The good news is that an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act. And only 25% of voters believe that design patents should be used for common car items, like side mirrors and bumpers.

Reform is critical to restoring competition in the marketplace. Six automakers were among the top 20 U.S. design patent recipients in 2020. These automakers have drastically increased the number of design patents they’ve applied for and been granted over the past 20 years – roughly 250% in at least one case!

Repair restrictions on cars and other items have been skyrocketing in recent years due to OEMs increasingly misusing design patents to crowd out competitors in the marketplace. On top of that, OEMs are tightening their grip on vehicle data. These restrictions make it harder for businesses to offer alternative parts during the car repair process. While some states, like Massachusetts and Illinois, have made promising strides in the growing automotive right to repair movement recently, there’s still work to be done. One national solution is the bipartisan Save Money on Auto Repair Transportation (SMART) Act (H.R. 3664), which would allow for greater choice of quality, safe, and affordable aftermarket car parts – putting business owners and consumers alike back in control. The SMART Act would: • Reduce from 15 years to 2.5 years the time that car manufacturers can enforce design patents on collision repair parts, such as fenders, quarter panels and doors, against alternative parts manufacturers; and • Maintain business owners and consumers’ right to choose from a multitude of brands, prices, and products when purchasing parts and making repairs. Importantly, the SMART Act maintains appropriate intellectual property rights for automakers by upholding the existing patent period in which automakers can enforce design patents against other automakers. “Local businesses and consumers lose when 15-year design patents keep independent manufacturers from offering safe, quality, and

The SMART Act is currently sitting before the House Committee on the Judiciary, as local businesses cope with stress due to the pandemic and while inflation continues to drive up vehicle maintenance costs. Alternative parts are 26-50% less expensive than OEM parts, while also helping to decrease the cost of OEM parts by 8% through competition. These are reasons why the SMART Act will not only increase choice, but will also translate to lower prices for car repair parts. In addition to the CAR Coalition, which includes American Property Casualty Insurance Association (APCIA), Automotive Body Parts Association (ABPA), AutoZone, and LKQ, the SMART Act is supported by the Consumers for Auto Reliability and Safety Coalition, National Association of Mutual Insurance Companies (NAMIC), Auto Care Association, RetireSafe, AARP, and more. Last year was one of the biggest years for right to repair, thanks to hard work from businesses, advocacy groups, consumers, and government officials alike. In 2022, it’s time to build on the momentum to protect your right to repair America’s vehicles. Learn more about the SMART Act and get involved today: www.carrepairchoice.org/ take-action. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 15

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U-Haul Study tomers left California last year, followed by residents leaving Illinois, Pennsylvania, Massachusetts and Alabama, the report found. “We see a lot of growth coming from the East and West Coast,” said Matt Merrill, U-Haul area district vice president of the Dallas FortWorth Metroplex and West Texas. “A lot of people moving here from California [and] New York. We also see a lot of people coming in from the Chicago markets. I think that’s a lot due to the job growth—a lot of opportunity here. The cost of living here is much lower than those areas. Texas is open for business.” Growth states are calculated by the net gain of one-way U-Haul trucks entering a state versus leaving that state in a calendar year, U-Haul reports. Its migration trends data is compiled from more than 2 million one-way U-Haul truck customer transactions from more than 23,000 U-Haul truck- and trailer-sharing locations.

Texas previously held U-Haul’s top moving destination spot in 2016, 2017 and 2018. It ranked second to Florida in 2019 and second to Tennessee in 2020. Many people are moving to Texas because its “economy is growing

Credit: Shutterstock

fast,” said Kristina Ramos, U-Haul Company of South Austin president. “With a strong job market and low cost of living, it’s a no brainer. Texas doesn’t have an income tax, so families get more for their money.” Texas Gov. Greg Abbott, who has boasted of Texas leading the U.S. in population growth, also noted Texas is leading the U.S. in business growth. Highlighting 2020 Census data,

he said, “Texas leads America in population growth. We are also No. 1 in business relocations. It’s simple—people are choosing the Lone Star State because we believe in less government and more freedom.” California company headquarter exits more than doubled in 2021, and more businesses relocated from California to Texas than any other state by a ratio of 4 to 1, a Stanford University study found last year. In the timeframe analyzed, researchers found 265 California companies left, of which Texas received 114, followed by Tennessee receiving the second-most of 89. California remained the top state for out-migration in 2021 although its net loss of U-Haul trucks wasn’t as severe as it was in 2020, when California recorded its first population loss in recorded history. But out-migration appearing to be less severe than it was in 2020, U-Haul notes, “can be partially attributed to the fact that U-Haul simply ran out of inventory to meet custom-

er demand for outbound equipment,” meaning customers rented trucks from other companies because there weren’t enough U-Haul trucks to meet the demand for one-way self-movers out of California. While Texas’ population grew statewide last year, it grew the most in the suburbs around the Dallas Fort Worth Metroplex region, following a trend over the past decade. The region’s population grew so much since the last census count that it gained two congressional seats in 2020. As of the 2020 Census, Texas had a population of 29,145,505, with an apportioned population of 29,183,290. Texas is the second-largest state by population behind California, and the second-largest state by land area behind Alaska.

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3 Winners of Equalizer ‘Tools for Techs’ Campaign Receive Glass Removal Kits Equalizer recently announced the three winners of its 2021 Tools for Techs campaign, in which it gave a complete glass removal kit to deserving technicians. The company started accepting online nominations of outstanding technicians in the auto glass industry in November. It chose the three winners from about 120 submissions. Marketing Manager Kyle Calderwood said the annual campaign, now in its third year, was started as a way to give back to the community and reward people who truly deserve it. All three winners will receive a glass removal kit complete with all the necessities for a windshield replacement—multiple HydroBlades, windshield stand, push knife set, BTB Winged Scraper set, ZipKnife set, vacuum cups and much more. Each winner will also get to choose a Milwaukee or DEWALT caulking gun and one of five Equalizer power tools. The kits are worth about $2,000 each. The winners are:

Sean Ahlers, Janesville, MN The person who nominated Ahlers called him a “give-you-theshirt-off-his back kind of guy who enjoys helping others.” The nomination said Ahlers often comes in on Saturdays fixing things that need attention, and could use some new tools. Jamie McCrory, Salida, CO McCrory’s nomination said he started working in the industry about a year ago, and it would be good to help him with fresh tools. Peter Yoth, Rancho Santa Margarita, CA The person who nominated Yoth has known him for 14 years, and said he is the hardest-working person she’s ever met. Over Thanksgiving, Yoth underwent surgery to remove a tumor in his neck. He is recovering now and getting back into fixing cars. Equalizer thought it would be great to help him get back into it with new tools. Source: Equalizer

16 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

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GM Debuts Chevrolet Silverado EV with 400-Mile Range GM revealed the 2024 Chevrolet Silverado EV on Jan. 5, the headlining act of its presentation at CES 2022. The reimagined full-size pickup was developed from the ground up and leverages the power of GM’s Ultium Platform. At launch, the Silverado EV will be available in two configurations, an RST First Edition and a fleet-oriented WT model--both offering a revolutionary mix of performance, capability, technology and style. The Silverado EV will offer an expected GM-estimated 400-mile range on a full charge along with 10.2kW of offboard power, available four-wheel steering, fixed-glass roof, Multi-Flex Midgate with a load floor of up to 10 feet, 10 inches when combined with the Multi-Flex Tailgate, a large, 17-inch-diagonal LCD freeform infotainment screen, and the latest vehicle technologies that can evolve over time. Learn more about the 2024 Silverado EV at media.chevrolet.com. In a virtual keynote the same day, GM Chair and CEO Mary Barra outlined the waves of change coming as society moves toward the mass adoption of electric vehicles. “Technology driven by purpose will change the world,” said Deborah Wahl, GM global chief marketing officer. “GM is redefining how people and goods are moved. Our commitment to a vision of a world with zero crashes, zero emissions and zero congestion has positioned us to lead. As we implement our growth strategy, we have an opportunity and, frankly, an obligation to create a better future for generations to come. That’s the Ultium Effect.” GM’s “Ultium Effect” message guides the company’s virtual CES experience accessible at www. GMExhibitZero.com. The site showcases waves of change that began with GM’s introduction of the Ultium EV Platform in early 2020. Ultium, which was recently recognized among Fast Company’s “Next Big Things in Tech 2021,” underpins vehicles including the GMC HUMMER EV Edition 1 Pickup and the BrightDrop EV600, which were delivered to initial customers late last year, as well as the Cadillac

LYRIQ when deliveries begin later this year. Additional news and topics showcased at CES include: GM’s plan to reach leadership in EV market share in the U.S. that, beyond the Chevrolet Silverado EV, will include a Chevrolet Equinox EV SUV with an estimated MSRP starting around $30,000 in the U.S. as well as a larger Chevrolet Blazer EV SUV. Both Equinox EV and Blazer EV will be available in 2023. GM is working to build an EV movement beyond its retail business through the BrightDrop ecosystem, the Chevrolet Silverado EV Work Truck and even component sales for commercial and recreational vehicles. Customers planning to place fleet orders include FedEx and Walmart (BrightDrop EV600) as well as Enterprise and Quanta (Chevrolet Silverado EV). Supported by the Chevrolet brand’s rapidly expanding EV portfolio, GM intends to lead in electric vehicles. With GM’s EV portfolio today and just on the horizon—including BrightDrop electric vans, Chevrolet Silverado EV, Equinox EV, Blazer EV, Bolt EV and EUV, along with GMC Sierra EV, GMC HUMMER EVs and Cadillac LYRIQ and CELESTIQ—GM believes no other automaker today matches the depth and range of GM’s growing all-electric portfolio. GM and Cruise are pursuing a comprehensive path to autonomous mobility with the aim to deliver the first personal autonomous vehicle from General Motors as soon as mid-decade. GM and Cruise’s continued work together will create economies of scale that lower costs and increase quality of Cruise’s rideshare and delivery networks while bringing the positive impacts of autonomous vehicles to a larger audience. Super Cruise remains on track to be available on 22 models across GM brands by 2023, while Ultra Cruise, which will enable doorto-door hands free driving, enters production in 2023, with the Ultium-based Cadillac CELESTIQ ultra-luxury sedan being among the first models to be equipped with the technology.

18 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

GM will be the first company to use Qualcomm Technologies’ Snapdragon Ride™ Platform for advanced driver assistance technology, defined by software developed inhouse by GM. Co-developed by GM and Qualcomm for Ultra Cruise, the new compute architecture will have the processing capability of several hundred personal computers, but is only about the size of two laptops placed on top of one another. The expansion of Cadillac’s Halo Concept Portfolio with the InnerSpace and OpenSpace autonomous vehicles. These two new concepts build on the PersonalSpace vertical takeoff and landing vehicle and the SocialSpace personal autonomous vehicle introduced at CES last year, and together the four illustrate a potential future for multimodal luxury travel when GM’s Ultium EV and Ultifi software platforms are fused with autonomous driving technology. New examples of possible customer experiences enabled by Ultifi, GM’s end-to-end vehicle software

platform that enables frequent and seamless delivery of software-defined features, services and ownership experiences. Theoretical vehicle modes include “Max Power Mode,” which recalibrates electric vehicles for quicker acceleration; “Choose Your Own Adventure Mode,” which creates a scavenger hunt to discover shops, restaurants or landmarks; and “Planetarium Mode,” which uses a vehicle’s GPS to project nearby constellations onto vehicle screens. “We are witnessing what’s possible when innovators and problem solvers embrace the opportunity to change the world, knowing they have the tools and technology to do precisely that,” said Wahl. “With that capability comes the responsibility to use it. GM’s Ultium Platform means we no longer need to imagine a zero-emissions future; we can start building it.” Source: GM www.autobodynews.com

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Continued from Cover

Toby Chess Shares 4. Best Practices for Two-Sided Bumper Repair Using Adhesives 5. Best Practices for Using 2K Epoxy Primer Here is Toby Chess’s newsletter: On Oct. 15, Dana Caldwell wrote an article for Repairer Driven News about why people pick the collision repair shops they do. The results were an eye opener. You would think insurance driven would be No. 1, but in fact it was last in the survey. Sixteen percent choose their auto body shop due to word of mouth. As you know, I spend a lot of time in body shops for I-CAR welding tests and most of us are reactive instead of proactive. How many of you have a written SOP for checking in a vehicle? How many have a written SOP for keeping your customer informed? How many have a written SOP to do a 48- to 72-hour followup after the car has been picked up? How many have signed job descriptions for each position in your shop? With some people choosing word of mouth, we need to do things better, and the easiest way to accomplish this is the use of written SOPs. I have more than 75 SOPs, and I will be adding 50 more over the next couple of months. I have three example stories to drive my point home. This was a used door from a well-known wrecking yard. The dent at the molding reduced the price by $50. I put my PDR light on it and asked the owner “Do you think that is a one-hour dent?” His answer was, “Probably not, more like two hours.” I used my light to circle all the dents—five more. I asked him who is going to pay for the additional labor, prime and materials for the door. That door needed between five and six hours of repair. His tech made $50, he lost a couple hundred dollars of sales and he increased his cycle time because the tech was not working on the customer’s door but a used door instead. I have an SOP on handling used sheet metal in the future, so this does

not occur again. Moving on, the next example I would the highlight is aluminum dent repair using a weld-on pulling pin. I received a call from Erik Spitznagel, owner of Dent Fix Equipment. He sold an aluminum repair station to a shop in the Midwest. The body shop was trying to pull out a dent on a cab corner on a 2017 Ford F-150. The problem was the pins would not stick and they were “blowing” holes in the aluminum. I called the shop owner and asked him what procedures he was using. He did not know, but got his tech on the line. The technician said he sanded the panel to bare aluminum using a 120 grit DA sander. When the pin did not stick, he increased the voltage and blew a hole in the panel. He did another one with the same results. I told him the recommended steps. First and foremost, the aluminum needs to be cleaned with a stainless steel brush, to prevent galvanic corrosion. I explained the small brush works the best to remove aluminum oxide from the weld site. Next, the site needs to be cleaned with good wax and grease remover. Step three is to apply one silicon stud and one magnesium stud, turn the power setting to 3 and see which one sticks the best. After destemming the proper stud, load a pin into the gun, pushing it down with end of the stainless steel brush. Grease on your finger will contaminate the pin and it will not stick. I told the tech to make sure the pin was perpendicular to the metal. I asked the manager if he would like a best practice sheet on the proper steps needed for aluminum stud installation and removal, and he said sure. He also said if there was a problem, he would call, which he never did. I have included this best practice as an attachment. My third example deals with plastic repair using adhesives. Recently, I received a call from a Kent Automotive sales representative. One of his shops called and told him the bumper repair they performed failed. I made an appointment with the shop and I arrived a couple of days

20 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

later. I asked the gentleman who repaired the bumper what steps and products he used. He gave an abbreviated version and I explained I needed the step by step process he used. He said he removed the paint from the front side of the bumper with a 120 DA sander, but not the back side. He then cleaned the front and back side of the bumper with Prep-Sol. I explained to him that using a solvent-based wax and grease remover is designed to remove adhesives. The solvent will wick into the raw plastic and when the adhesive is applied, the solvent wax and grease remover will not allow the adhesive to stick. I explained a water-based wax and grease remover needs to be used. I also told him he needed to sand the backside with 80 grit DA to abrade the plastic so the adhesive would adhere to it. He showed me the product he used for the back side, which was the wrong material. He used another manufacturer’s product for the front, and that manufacturer requires an adhesion pro-

moter before the application of the adhesive, which he did not use. We went into the shop and I did a clinic on plastic repair. He brought me a water-based wax and grease remover from a different manufacturer. I explained to him that is probably OK but he needs to use one manufacture’s system, and using or mixing other companies’ products may interact and cause the repair to fail. I have included this best practice as an attachment. If you want a bumper repair clinic on adhesives or nitrogen welding, I would be more than happy to come to your shop and conduct a clinic. There is not charge for this service. Just call 310-9957909 or send me an email at tcspeedster@gmail.com. In conclusion, if the three shops had SOPs in place and they were followed, these failures would not have happened. My next column will deal with creating your own SOPs. One final request: please let know what are your thoughts on this or if you have ideas that you want to share.

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Continued from Cover

National Survey “Our business is currently stronger than it’s ever been,” a Missouri shop owner said.

“Scheduling out two months,” a North Carolina shop owner said. An optimistic Minnesota shop manager pointed to his shop’s fivemonth backlog of work and “plenty of business in our area,” though he did acknowledge concern that 75%

The survey found among the collision repair businesses that said they received a second-round Small Business Administration Paycheck Protection Program (PPP) loan in 2021, 70% said they have already received loan forgiveness. None of the shops surveyed reported having their loan forgiveness application rejected, but 20% said they still planned to apply to have the loan forgiven, and the remaining 10% were undecided about applying. Among those who said they received a first-round PPP loan in 2020, 84% said the loan had been forgiven; the balance either had not applied for forgiveness, were awaiting approval or were undecided about seeking forgiveness, but again, none reported having their loan forgiveness application rejected.

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“This company has made it through many ups and downs since it opened in 1984,” a Wisconsin shop manager said.

of the shop’s employees will retire within the next five to 10 years. “Need fresh faces ASAP,” he said.

U.S. Lawmakers Propose Bill Making Staged Collisions Federal Crime U.S. Reps. Garret Graves and Henry Cuellar have introduced a bill that would make it a federal crime to stage a vehicle collision and fraudulently claim financial damages. Graves (R-LA) and Cuellar (D-TX) say the legislation, the Highway Accident Fairness Act of 2021, would improve the safety of truckers and drivers on highways and protect trucking companies from the financial burdens of defending against or settling fraudulent insurance claims resulting from staged collisions. According to a statement from Cuellar’s office, the bill would: • Assure fair and prompt recoveries for highway accident victims with legitimate claims Provide for federal court consideration of interstate cases of national importance under diversity jurisdiction • Maintain stability in the movement of interstate commerce and protect the public from the safety hazard of staged colli-

sions • Protect motor carriers and insurers from the financial burdens of defending against, settling or being found liable for fraudulent claims that result from staged collisions • Protect law enforcement agencies from expending resources dealing with the aftermath of staged collisions The legislation is backed by the American Trucking Association. Graves says the bill would lower auto insurance rates for Louisiana drivers. Graves cited a 2015 staged accident in New Orleans that resulted in a $4.7 million settlement against a trucking company. “Louisiana drivers pay some of the highest insurance rates in America,” Graves said. “This is unacceptable and the solutions don’t require rocket science. Our bill will prevent criminal rings from further increasing the cost to drive and do business in Louisiana.”

22 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

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DCR Systems Sponsors Matrix Trade Institute DCR Systems announced Jan. 11 the company is the first corporate sponsor of the Matrix Trade Institute’s Collision Program as a Foundation Level Partner. The institute offers upskill industry efficiency training boot camps for employers that aim to help technicians reach the next level by improving their skills and learning efficiency techniques to help them become more productive and grow. The boot camps are paid for by employers. DCR Systems, also based in Ohio, develops on-site accident repair facilities for auto dealers seeking to outsource this function as an additional fixed operation. CEO Dustin Peugeot said the goal at Matrix is to align with forward-thinking operations like DCR Systems that have the vision to see a better way forward and the courage and commitment to deliver for their employees. Source: DCR Systems

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 25

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.

From the Desk of Mike Anderson with Mike Anderson

Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? I recently had the opportunity to meet in person with many of my 20 Group clients, and one of the things that came up was collision repair customers are not as patient as they used to be. At the beginning of the pandemic, if you told a customer a part was on backorder, or a part would take longer to arrive because the supplier had reduced how frequently they were doing deliveries, they were pretty understanding. What I’m hearing from auto body shops around the country is those same customers today are much more demanding, and they’re not so patient. They don’t care about supply chain issues or the shortage of employees. They just want their car repaired and back to them. And I hate to say it, but unfortunately I believe that’s only going to get worse. Which brings me to the topic of liquid expectations. You’ve probably heard that term. It basically describes that customer expectations in terms of service from a business are really shaped by their experiences with other companies. If I can use the Starbucks app to order and pay for my coffee and have it ready and hot on the counter for me when I walk in, why can’t the local coffee shop around the corner offer me similar convenience and service?

In terms of our industry, I’ve been thinking about things I used to go get that now get delivered to my door. Take groceries. I may spend $100 on groceries, maybe $300 sometimes. Either way, my local grocery store delivers that to my house for free.

I get a prescription filled that costs me $7.99. My local pharmacy delivers that to my house. For free. No delivery charge. I believe it’s just a matter of time before customers are going to start saying: “I spent $4,000 with you, and I have to leave my job early to come pick up my car?” I think it’s just a matter of time before they’re going to want the same type of pickup and delivery service they are getting from all types of other businesses. Now understand: I’m not saying I agree with this. I’m not saying it’s something we have to do or should be doing. But I believe collision repair customers are starting to

SEMA President and CEO to Retire Following more than 30 years of service to SEMA, President and CEO Chris Kersting will be stepping down at the end of January to enjoy retirement. The move comes as SEMA concludes a successful 2021, delivering two of the nation’s largest in-person trade shows since the start of the pandemic—the SEMA Show in Las Vegas and PRI Show in Indianapolis. Kersting joined SEMA in 1996 to lead the organization’s

Washington, D.C., office as vice president of legislative and technical affairs. He took the helm as SEMA’s CEO in 2002 and led the association through two decades of growth. Beginning Feb. 1, Kersting will transition into an advisory role through July. SEMA executives Bill Miller and Mike Spagnola will serve as interim co-CEOs. Source: SEMA

26 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

want and could start to expect and demand a “white glove” or “concierge” type of service experience from us. I was on a call recently with an insurer who said they’re seeing that sort of expectation from customers in terms of the insurer’s DRP shops. So what would that mean for your body shop? Well, it means having another one or two people, right? We need to make sure they have a clean driving record and can have good interactions with customers. We’ll have some added liability if we’re driving customers’ vehicles back and forth. We’re going to need to be profitable enough that we can offer that type of services. That goes back to a previous article of mine about employee wages where I said either

labor rates have to change, or shops have got to be paid for more not-included operations, or some combination of the two. Alternatively, it may also be something we could have a fee for. You pay $6.99 for a delivery by DoorDash. People spend that. So maybe it’s time we start offering pick-up and delivery for a certain dollar amount. Either way, it also means we’re going to need to do much better in terms of quality control inspections of vehicles, because we don’t want to get a repair vehicle out to the customer’s home and only then discover an issue. As I said, suggesting yet another challenge for collision repair shop operators isn’t something I like. But I just see this as one of the ways customer expectations are changing which we need to consider.

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Continued from Page 4

Making a Difference sociations,” said Tuggle “We’re going to eat this elephant, but we need everyone to take a bite.” Tuggle challenged shops to commit to filling out a couple of forms a week. “This would get us where we need to be,” she said. “It’s so very important that we’re taking this seriously, not only with TDI but with legislators as well; this is how we achieve that.” Richards said many shops are scared to push the envelope. “A lot of you don’t want to make enemies with the insurance company but this has to do with running a profitable business—having a business where you can get technicians certified and the equipment you need,” he said. Five or six years ago, Richards said only a few shops in Texas had specialized equipment, and technicians needed to travel to a different state to get certified. “You now have to look at your

business in a different way,” he said. “Having consumers fill out these forms is a big step in doing that.” Chad Kiffe with Berli’s Body and Fine Finishes in Pflugerville, TX, has found talking to customers about the forms on the front end has helped get them filled out. “We have a discussion with them when they drop off their vehicle and let them know about the possible challenges, whether that’s rates, procedures or parts,” he said. “Through the process, we’re very transparent with the consumers with emails and phone calls so they understand we are looking out for their best interests.” As a result, he said, it’s an easy sell when they pick up their vehicle; in fact, customers often ask for the form when they come in. Greg Luther with Helfman Collision in Houston, TX, has also had success using the forms. He said it may be hard to get started but it’s just as easy to continue to do it. Luther has had insurance advisors contact him and ask what they can do to get the complaint forms to stop. His response is to pay the

claim. “A lot of it has gotten better with people I have relationships within the insurance industry,” he said. “They are actually paying us to fix cars better.” ABAT’s lobbyist, Jacob Smith from Longleaf Consultant, talked about the significant impact the forms are having after being sent to the legislators he talks to daily during the legislative session. “Getting the consumer complaints to the elected officials helps tremendously,” he said. “It shows that the issue is happening in the electeds’ district and gives them the incentive to help.” Through this grassroots work and sticking to the game plan, Smith said it’s really working. “We have to stay on it,” he said. “I think if we do and shops all stand together and we do this across the state, we’re going to get some meaningful legislation passed and then we are going to have the tiger by the tail.”

AUTOBODY

Albert Kemperle, Inc. Joins Wesco Group Wesco Group, a leading paint, body and equipment distributor in the western U.S. and Canada, is pleased to announce Albert Kemperle, Inc. has joined the Wesco family of companies. Kemperle Auto Paint, Body & Equipment was founded by Albert and Mary Kemperle, who opened its first store in Brooklyn, NY, in 1940. Over the decades, generations of founding family members continued to expand that single store into more than 50 locations in the eastern U.S. Ronald Kemperle has joined Wesco as a principal partner and will continue to guide the group in the eastern U.S. The combined Wesco family of companies, which includes Wesco, Color Compass and Kemperle, is one of the largest privately-held PBE distributors in North America, servicing customers from more than 118 stores, 13 distribution centers, 12 equipment divisions and 11 training centers. Source: Wesco Group

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Industry Insight with John Yoswick

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

Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Shop Showcase

A panel discussion at the Collision procedures for the specific vehicle. Industry Conference (CIC) in Las “So not everything is AI. We comVegas in November included repre- bine it with the OEM procedures with Ed Attanasio sentatives from a number of technol- and our editorial data to produce that ogy companies touting the potential specific accurate estimate.” benefits—for auto body shops and In discussing what AI estimatinsurers—of artificial intelligence ing offers shops specifically, the (AI) estimating, but also acknowl- panelists noted the wide variance edging some of its current limita- in estimates often seen even when tions. with Ed Attanasio different estimators look at the same “We’re not there yet, 100%, vehicle. AI can help collision repair with straight-through processing,” businesses increase consistency in said Dune Pagaduan of Mitchell their estimating, Pagaduan said. International, referring to AI being Panelist Jason Verlen of CCC capable of completing all estimates Intelligent Solutions said it also offers shops access to photos and inwith Ed Attanasio formation even before the customer arrives.

Social Media for Shops

SEMA Show Goes On

“So there’s huge increases and improvements in cycle time” and the customer experience, Verlen said. “But it’s not like AI solves all the world’s problems.” He noted the panel moderator talked about recently watching an estimating contest at a Texas trade show in which 16 estimators writing for a quarter panel replacement on a mainstream vehicle came up with 16 different estimates, ranging from 130 lines to 400 lines. “So someone may ask me: ‘Is your AI accurate? Does it match what a human would do?’ My answer is: Which one of those [16] guys do you want me to match,” Verlen said. “That’s why I say AI is no magical bullet. That’s why we combine AI with build sheet data, with business rules, with insurer guidelines, and that’s how we come up with an estimate that’s reasonable

Media and Publicity for Shops with Ed Attanasio

to the situation.” He suggested to “reduce skepticism” among new users, the systems’ thresholds should be set high at first so “virtually everything the AI generates on an estimate a human will agree to.” Then gradually loosen the thresholds to get more complete estimates, he said, after skeptics have “been trained to see that it does work” even if there are at times a “difference in opinion.” Jimmy Spears of Tractable said his company’s artificial intelligence estimating system has become adept at quickly determining from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of calling balls and strikes: Is this car repairable or is this car not repairable.” For insurers, he said, the system

Shop Strategies

Dune Pagaduan of Mitchell International said AI can help collision repair businesses increase consistency in their estimating

with Stacey Phillips

Jason Verlen of CCC Intelligent Solutions said without human interaction. “So is about 22% of repairable claims are currently AI real? Sure, it assists us in making processed through AI photo-estimating and automating decisions, thousands at a time…more quickly so that we He noted as recently as three shrink cycle time. But you still need years ago, fewer than 1% of vehicle experts, humans, to complete the claims involved photo-estimating. with Stacey Phillips whole process.” “As of today, roughly 22% of He said AI systems can cur- repairable claims go through the rently write accurate estimates on process,” he said. “And we have “low-severity collisions.” some carriers on our system where “But when you get to higher over 70% of their repairable claims severity type collisions—more com- go through photo AI.” with Stacey Phillips CCC offers a product, Estiplex, more parts—then that’s the journey we have to go to get to that mate-STP, which, Verlen said, on 100%,” he said. “I think in the next low-impact collisions can write a two to three years, we’ll get there.” complete estimate with no needed The panelists were asked if any review or changes by a human. BeAI system built on historical data yond that, he acknowledged, it’s still can identify substrates, systems and “a joint process between the human with Stacey Phillips OEM procedures for nearly new ve- and the AI.” hicles often involved in collisions. But the AI does “make the pro “That is the challenge,” Pagad- cess much more efficient,” he said, uan said, noting historical data ide- in part by getting a consumer an esally needs to be paired with other in- timate faster, which in turn speeds formation in the system, like OEM their decision-making about choosbuild sheet data and OEM repair ing a shop and scheduling repairs.

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can produce 40% of initial estimates “without any further line items” needing to be added. An equal per-

Jimmy Spears of Tractable said his company’s AI estimating system has become adept at quickly determining from photos if a vehicle is a total loss

centage require review of one or two line items—with the estimate annotated as to what an appraiser needs to review—while the balance will require being handled “old school: have it towed, take the car apart and go classic blueprinting.” Moving beyond that 40% of initial estimates “without any further line items” needing to be added will require greater access to vehicle-specific OEM build sheet data,

he said. “If we get that, we’re going to have a greater understanding of that vehicle, the DNA of that car,” Spears said. “And then we’re going to have a much better understanding of what this car really needs, its repair process. We have got to solve the problem of build sheet data, and we’re in the right room for that.” In the interim, he said, AI estimating offers benefits to more than just insurers. Tractable has a test going with LKQ Corp., he said, using the technology in a bit of a reverse way: helping determine which parts are not damaged on salvage vehicles. It could also help collision repairers with the customer sales process, Spears said. Currently, estimators point a potential customer to a waiting area while preparing an estimate. “Instead, they’re going to be able to quickly take some images of the car, and then while the images are being processed, they can take the customer around the shop and show the investment that you have” in equipment, training and certifications, Spears suggested. “When they get back to the desk, here’s the estimate.”

Used Electric Car Prices Soared in 2021 by Andrei Nedelea, Inside EVs

While the new car market in the U.S. declined 13.4% in 2021, used electric vehicle sales went up year-over-year by an impressive 60%. Prices of used EVs also went up over the course of last year by more than 15%, and they remain higher on average than prices of used ICE vehicles, although this could just be because most EVs are newer vehicles and usually more expensive to buy. Recurrent, industry analysts that focus on EVs, said it was mainly stronger demand for electric cars that drove up prices, which came courtesy of a constant rise in consumers’ confidence, the reduced supply of vehicle prompted by the global chip shortage and other factors. “I look back at 2021 as an exciting year for electric vehicles in terms of overall market growth, as well as the all-electric commitments from manufacturers that will continue to spur adoption,” said Scott Case, CEO

and co-founder of Recurrent. “If price comes from the tension between supply and demand, let’s hope the industry can produce more electric cars this year because people certainly want them.” Another important conclusion drawn by Recurrent from analyzing EV sales through 2021 was that one third of used electric vehicles could be purchased for less than $25,000 and half for less than $30,000. This means they are more accessible than ever to car buyers, and their popularity is only going up as prices come down even more. GM’s recall for the Chevrolet Bolt EV did have a strong negative impact on sales of this model on the used market. Sales were down 74% and the source suggests this could have been because Chevrolet bought as many of them as it could from dealers, in order to keep them off the street. The plant that builds the model is currently idle and production is not expected to restart any sooner than March.

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6/24/21 9:13 AM

Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 by Stacey Phillips

Total losses, the Database Enhancement Gateway, computer vision and sustainability were some of the topics discussed during the IDEAS Collide Showcase held during the 2021 SEMA Show. First introduced in 2018 by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series, IDEAS Collide gives thought leaders from across the collision repair industry the opportunity to share innovative ideas. This year, eight speakers talked about creative ways to help the industry evolve. This is part two of a twopart series. Part one was printed in the January 2022 issue of Autobody News.

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA).

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), talked about the shared challenge the industry is facing with an increase in total losses. She hopes the different segments can generate thought-provoking ideas on how to make meaningful changes. “No matter what side of the issue we are, there is a consumer who has suffered a loss and it’s our collective job to find a way to make them whole again,” said Blalock. “Jeff Peevy [previous CIC chairman] will always remind us never to forget that empty chair; we all serve the consumer.” Blalock said total loss frequency has been rising over the last several years in the U.S. According to CCC Intelligent Solutions’ 2021 Crash Course report, 20.5% of vehicles were deemed total losses in 2020. “This means that shops missed out on the chance to repair one in every five vehicles,” said Blalock. This is up from 15% in 2010. The average totaled vehicle in 2020

had an actual cash value of $10,444; the average repairable vehicle was worth $16,657. In addition, repair costs have also risen. As insurance adjusters determine whether a vehicle is repairable or declared a total loss, Blalock said a number of factors weigh into the decision, including supplements and parts availability. With more electric vehicles and cars with ADAS coming into collision repair facilities, Blalock said scanning and calibration will be required, adding additional costs to the repair and determining whether the car is a total loss. Repair vs. replace and salvage values will also play a role. She shared some of the downsides to total loss, including the consumer owing more on the vehicle than it’s worth and fewer vehicles being fixed by the professional repair industry and auto recyclers. “Total loss does not mean endof-life for a vehicle,” she said. “Repaired vehicles will be repaired by someone.” From her research, Blalock has found as many as one out of 325 vehicles on U.S. roads today may be operating with a fraudulent title that has been “washed” to disguise the vehicle’s actual damage, flaws or identity. Research shows one in five vehicles sold outside of licensed dealer networks are not legal private property car sales, but are illegal sales of curbstoned vehicles. “Curbstoning is essentially a flipping of vehicles often posing as a private seller,” she explained. “Many of these vehicles have been purchased at salvage auctions by unlicensed entities, repaired and usually not to any industry standard, then sold to some unsuspecting consumer looking for a good deal.” Blalock advises the industry to be aware of these issues and work together to come up with ways to address them. As the administrator for the Database Enhancement Gateway (DEG), Danny Gredinberg shared information about the free industry resource.

30 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The DEG was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. It is created, equally funded and maintained by the Alliance of Automotive Service Providers (AASP) and SCRS.

Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG).

With today’s estimating databases being large and complex, the task of building complete and accurate labor times and labor notes for vehicles can be challenging. All three information providers use a variety

of methodologies to develop labor values. Gredinberg said this can often result in information that does not reflect real-world labor requirements of a repair operation. As a result, it can hinder the ability of an estimator to produce accurate repair estimates or blueprints that match the repair process. The DEG is designed to offer estimating system users a more standardized and streamlined process for generating Database Inquiries (DI). “It can help anyone to improve an estimate whether it’s a repairer, technician or even a bill payer,” said Gredinberg. “If they find an error in omission or accuracy in any of three estimating systems, we can help address those concerns and get accuracy.” As the DEG administer, Gredinberg receives a lot of inquiries. One of the biggest challenges he sees is when a repairer writes an estimate in one database program and receives See Collide Showcase: Part 2, Page 47

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Industry Insight with John Yoswick

Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

Shop Showcase

A panel during the Collision Indus- companies adjusting the key perfortry Conference (CIC) in November mance indicators (KPIs) by which included representatives of two au- they are measuring direct repair with Ed Attanasio tomakers and two insurance compa- shops? nies addressing a topic that repairers In terms of cycle time and its and others discussed at a previous impact on customer satisfaction, CIC: can an auto body shop partic- Lindorfer said insurers aren’t lookipate both in direct repair and OE ing for shops to compromise repairs certification programs, and meet the to return vehicles faster. requirements of with both? Ed Attanasio “We still want safe repairs, and “I would never say that’s im- sometimes safe repairs take lonpossible, but it is very difficult at ger for whatever reason may cause times,” said Ben Cid, collision busi- that,” Lindorfer said. “We’re not ness manager for Mercedes-Benz. asking anybody to take a shortcut “There are shops that do it. When and not do what they should do.” you’re having to prove…why some- At the same time, she said, the thing needs to be done a certain way, growth of ADAS and other technolwith Ed Attanasio there’s a lot more time invested in ogy impacting repairs in late model doing that. Again, it’s not that it’s vehicles shouldn’t impact all claims impossible. But it definitely takes given the average age of vehicles on a lot more time on the shop’s side the road is 11 years. “Let’s remember that not evto really…prove what needs to be ery car we repair is a new vehicle,” done.” with Ed Attanasio Sandee Lindorfer, auto line di- she said. “We need to be sure we’re rector at Allstate, said she sees it as repairing that vehicle, regardless less of a challenge. of age, appropriately. As the mar “We have many [OEM-certi- ket changes and we [see] more and fied shops] within our Good Hands more of the vehicles that are more Network,” she said. “Between our complex, we’re going to see that network and the OEMs, we have the KPIs are going to change. We’ll with Stacey Phillips more in common than we have dif- change with those KPIs.” ferences. At the end of the day, we She said Allstate has adjustboth want our customers to have a ed cycle time measures “over the safe and proper repair. I don’t think years because of the complexity of that [needing to offer] proof of re- repairs,” and good communication between shops and insurers will repair procedures with is as great [an issue] Stacey Phillips as it may have been in the past when solve issues about vehicles that are repair procedures weren’t easy to “out of the ordinary.” get your hands on.” “So I can’t speak for every in She said parts restrictions by surer; I can only tell you that we do the automakers are probably the reevaluate KPIs regularly,” Lindorfprimary area where there’s “friction er said. with Stacey Phillips Dan Tessadri, auto physical when a shop is trying to appease both the carrier and the OE.” When damage business consultant for those conflicts arise, she said, they CSAA Insurance, concurred. are addressed “case-by-case,” based “We look at the KPIs, at our on such things as “the contract that scorecards, on a yearly basis,” he we have with our customer” and said. “We look at the market and the state requirements. impact of the supply distribution and with Stacey Phillips “But there’s not too often that other factors like that.” we can’t come to some sort of agree- But panelist Pete Tagliapietra ment,” she said. of NuGenIT said those companies’ With CCC Intelligent Solutions practices don’t synch with what he and others documenting changes in sees in the auto insurance industry cycle time, “touch time,” parts costs as a whole. “When we look at scorecards and other metrics, are insurance

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and KPIs across the industry, some of those KPIs haven’t been updated in 10 years,” Tagliapietra said. “So repairers [on those programs] are being held to the same KPIs.” He also noted while the average vehicle may be 11 years old, the average age of repaired vehicles is between 6 and 7 years old. “That puts us at OBD-II and well into the new realm of technology as we know it today,” he said. “I think we need to consider that…You can’t look at KPIs based on the way we repaired cars in 1999, and hold [shops] to the same level, especially in terms of cycle time.” Aaron Schulenburg of the Society of Collision Repair Specialists also told the panel he’s always surprised and concerned when anyone suggests it’s not more challenging now than it’s ever been for shops trying to “appease both sides of the

equation” when it comes to automakers and insurers, saying that’s the crux of nearly “every single call that I get every single day.” He said he appreciated the automakers and insurers who at least took part in the panel discussion because the committee struggled to find people willing “to sit on the stage to talk about the things that really matter.” “There should be more who do,” Schulenburg said. “If they’re not willing to, there’s a bigger issue in this industry that’s leading to shops being stuck in the middle.”

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Author/Teacher Trains and Mentors the Insurance Adjusters of the Future by Ed Attanasio

Some auto body shops appreciate insurance adjusters and their role in the collision repair industry, while others don’t necessarily feel the same way. But all seem to agree it’s a necessary job. In the end, everyone wants the same thing—the safe repair of a vehicle back to its pre-accident condition. According to Indeed.com, the responsibilities of an auto damage adjuster include evaluating the damage done to a vehicle and then determining what the insurance company will pay. They also add “a claims adjuster job is very stressful as it comes with lots of highly demanding activities. However, when you put in the hard work and dedication, the rewards far outweigh all the tough demands of the job.” Chris Stanley, 36, is an author, career coach/mentor and the founder of Insurance Adjuster (IA) Path, a company that trains and mentors auto adjusters.

He lives on a 42-foot sailboat with his wife and three kids—ages 12, 8 and 1—who are homeschooled. He enjoys the freedom and

Author/teacher/mentor Chris Stanley created a company, IA Path, to set up independent adjusters for future success. His IA Playbook Series has quickly become the industry’s Bible

loves “traveling the open seas and feeling small in our big world,” he

said. In addition to writing a series of books about insurance adjusters, he also writes Christian devotionals, memoirs, kids’ books and a variety of non-fiction. Stanley was working as an adjuster for a PDR company in Colorado when he was recruited to become a supervisor at the same organization. “The business grew to the point where we were working with 100 shops and dealerships and they needed someone to oversee the work,” he said. “It was definitely a major mental shift, where I went from writing estimates to managing techs, and after a while I said I want my life back! Plus, it was cold in Colorado.” So, he purchased his boat and began enjoying better weather in Florida, with a career change in his immediate future. “One of the great things about this lifestyle is we can go to wherever we want to be—whether it’s the Keys or West Palm Beach,” he

said. “Every year I always ask my children—do you want to live in a house on land or stay on the boat? They always go with the boat.” Around that same time, Stanley saw training programs for independent insurance adjusters were scarce or difficult to get into. “I tried to help a friend who wanted to become an adjuster, and no one would take him, even though I taught him the basics,” Stanley said. “They told him you don’t have any experience. So, I started looking online to see if there was any information about how to enter the industry, but it was all about property and nothing about cars.” Since 2016, Stanley has mentored more than 2,500 people, to create the next generation of independent adjusters and auto damage appraisers. His go-to book is called the “Auto Adjuster’s Playbook,” which Stanley called the industry’s Bible. “It is based on a proven method to teach new people how to learn to write estimates,” Stanley said. “It

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has been used to teach hundreds of students through IA Path’s online training course, called the ‘Auto Adjuster’s Path.’ “Most people who venture into being an auto damage appraiser or body shop estimator are overwhelmed with learning about the parts of the car, repair processes and how to not look stupid,” he continued. “This book tells you what you need to know with plain English. The ‘Auto Adjuster’s Playbook’ is field tested and contains industry recognized training and instructions by a 13-year veteran and reviewed by top industry leaders prior to its release.” Other books in Stanley’s IA Playbook Series include “Audatex Adjuster’s Playbook,” “Networking Adjuster’s Playbook” and “Hail Adjuster’s Playbook.” Stanley’s IA Path program is designed to get people up and running fast, he said. “Whether it’s a Millennial looking for their first career or someone looking for their second or third career, I want to see them get work within 90 days in a rewarding indus-

try and write content to help them navigate their journey,” he said. “We bring them in and get them to the point where they’re doing their jobs correctly, doing mock claims and handling the entire process from start to finish.

Stanley lives and works on a boat with his wife and three kids in Florida

“Whether an adjuster who is working as a staff or independent adjuster handling property, auto or desk claims—liability, bodily injury, etc.—there will be always be companies looking for their skillset.” This past summer, IA Path hosted its first Adjuster Job Fair to allow adjusters and appraisers from

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all aspects of the inspection industry to get interviewed one-on-one with dozens of hiring companies. “One of the biggest hurdles for adjusters to getting work is getting in front of enough companies that have work opportunities,” Stanley said. “We decided to bring the companies to the adjusters so they wouldn’t have to track them down. The event was 100% online utilizing a state-of-the-art platform and interviews will be conducted using the industry-leading Zoom technology. Adjusters scheduled online face-to-face interviews with 30-plus nationwide and regional hiring companies.” The job fair was brand new territory for Stanley, but he’s never been afraid to take on new endeavors like this one. “This type of event has never been done before online in our industry, for adjusters,” he said. “Typically, events are centered around the hiring companies or technology companies, but we wanted this to be all about the adjuster.” The adjuster admission also included on-demand adjuster training,

live adjuster workshops and speakers. “We have big plans for this platform in the future, but we’ll start with this first event and the follow up during the first quarter of 2022,” Stanley said. “The pricing was designed to offer opportunities to the adjusters year-round, not just for the three days of live online interviews.” When he isn’t motoring around on his boat, Stanley is focused on creating the independent adjusters of the future. “It’s a good job that can lead to a long and wonderful career, so if you’re smart, fast on your feet and detail-oriented, this might be a good match for you,” he said. “And I can show you how to do it!” For more information, visit www. iapath.com.

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G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving by Ed Attanasio

The late Gene Crozat of G&C Auto Body died in 2016, but his sons have taken his zeal for helping others to the next level, and giving cars to those in need is a big part of it. The company has now presented more than 200 vehicles to deserving individuals and families within the last 20 years and the number keeps climbing. On Dec. 16, seven deserving Sonoma, CA, area residents experienced a life-changing event thanks

The Crozat family has given away more than 200 cars to deserving families within the last 15 years. In this photo, Shawn Crozat talks to the crowd while his brother Pat looks on

to the National Auto Body Council (NABC) Recycled Rides® program, along with car donor GEICO, G&C Auto Body and automotive refinish coatings partner PPG. The presentation was held at the Sonoma County Event Center at the Fairgrounds in the Garrett Building. More than 200 people were in attendance. G&C Auto Body CEO Shawn Crozat is proud to continue his family’s legacy and knows his father would be smiling from ear-to-ear watching the presentations. “Dad had a huge heart and wanted to help as many people as he could,” Crozat said. “He used to tell us that we are in a position to help others, and it’s a role we’re obligated to play. When you think about the fact that more than 200 people are driving vehicles around in the North Bay that they got through G&C, that is pretty amazing!” Bill Garoutte, president and CEO of the NABC, is ecstatic about what G&C has achieved through its philanthropy over the years. “What an honor to be part of a tremendous event with an organization that provides such incredi-

ble support for the community,” he said. “To gift more than 200 cars to area residents in need is an amazing milestone, and to present seven in one day by G&C Auto Body is truly remarkable.” The seven recipients of completely refurbished vehicles included Stephanie, a single mom to two young children, who received a 2014 Honda Civic. Her partner of 15 years recently and unexpectedly passed away. Stephanie was in need of transportation to continue her journey of stabilization with her children after the loss of their father. Stephanie and her son are living in a transitional house as they actively look for a place to live. She heard about the Crozat Family Foundation and its benevolent giving from a person who recently received a vehicle through the foundation. Sue, a single mom, was presented with a 2016 Nissan Versa. She has been a single mom from the time her oldest was 3 years old. Now, she is the matriarch of a multigenerational household consisting of herself, her two adult daughters and her grandson. She owns a 1996 Toyota 4Runner with 300,000 miles and a blown head gasket and relies on her youngest daughter to drive her to work and her oldest daughter’s boyfriend to pick her up. She has been trying to save for another vehicle, but this gift of transportation will help her be able to get to work and not rely on others. Cheyanne, a mother of two, was gifted a 2017 Hyundai Sonata. She and two of her three children were living in Lake County, CA, when their house was deemed uninhabitable and they had to leave. They also had to leave behind their older model vehicle that had stopped running. Cheyanne said they left that house with the clothes on their backs and a few other personal items. She will use this car to help get her and her sons to medical appointments, and her youngest to school. Shannon, a mother of three, received a 2016 Hyundai Elantra. She and her kids lost the home they were

36 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

renting to wildfires in 2017. They have been living with Shannon’s parents since, but the home environment has become unhealthy for everyone and she is currently looking for a new place to live. Shannon had two older, unreliable vehicles, one of which was a 2006 Chevy Tahoe with 246,000 miles and was falling apart. Shannon currently holds one full-time job and two part-time jobs to cover living expenses. The gift of transportation will allow her to manage her children’s schedule and get to her jobs. Mike, a single dad, received a 2017 Toyota Camry. Since his separation, he has been trying to rebuild his life while keeping up with legal fees, fighting for his share of custody of the kids, working full time and juggling the kids’ extra-curricular activities. He drives a used truck he is struggling to afford. He was in need of reliable transportation so he can comfortably sell the truck he has a payment on without relying on friends and family for rides to maintain his job and his

children’s quality of life. Eva received a 2017 Volkswagen Jetta and will be using it to make her life easier. Clara, a mom of three, received a 2018 Nissan Altima. She and her husband, Kristopher, and their three children are a blended family trying to get by with a vehicle that has been overheating and is constantly breaking down. She is working full time as a security guard at Graton Resort and Casino, while Kris has been staying home with their youngest son until he recovers from a recent surgery. Once all the follow-up doctor visits are completed, Kris will get back into the work force. The new vehicle will allow them to more effectively manage family life, jobs and medical visits. In addition to the vehicles, each recipient also received six months of full vehicle coverage from GEICO and six months of gas gift cards, six months of grocery gifts cards and $100 Target gift cards for each child See Legacy of Giving, Page 40

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 37

Auto Body Shop Owner Steps into World of Consulting by Ed Attanasio

I was at a California Autobody Association (CAA) meeting recently and I couldn’t help but notice a welldressed man at the front table. It was an informational meeting with the Bureau of Automotive Repair (BAR) and after a few minutes I assumed he was a member of the BAR. At one point, he scolded another auto body shop owner for asking a question. He said, “The customer is your customer, not the insurance company! I taught you that, but maybe you forgot?” I almost laughed. After listening to him for a while, I could tell this guy is passionate about collision repair, as well as being very knowledgeable. I told myself I needed to meet him. His name is Alex Kuang, owner of Redwood City Auto Body in Redwood City, CA. He wants to sell his shop to become a consultant and share his knowledge with the collision repair industry. Kuang is the current president of CAA’s Golden Gate (San Francisco Area) chapter, and is trying to increase its membership by recruiting many of his friends who own or manage shops in the Bay Area. Kuang came to the U.S. from China at age 10 in 1988 for a better future. His father was originally a butcher, but when he immigrated to the Bay Area, he became a chef specializing in Hong Kong-style cuisine. Today, Kuang wants the world to know he can cook, and if you don’t believe it, take a look at his Facebook page when you have a moment, where he posts photos of his culinary creations regularly. Kuang’s first job was as a painter, but he quickly decided he wanted to sell the paint instead of spraying it. “I loved the product I was using and wanted to share the news, so I got a job with a distributor to educate other shops about it,” he said. “I did that for eight years and I learned so much because I was visiting multiple body shops every day. I was surprised to learn a lot of painters weren’t knowledgeable about the paint they were spraying. I told them the more you know the bet-

ter you can be as a painter, and you could see it in the finished product. I enjoyed helping them to becoming better painters and better managers.” In 2010, Kuang made the move from employee to employer when he purchased Redwood City Auto Body.

The collision repair industry has been good to Alex Kuang, but now he’s ready to change hats from shop owner to consultant

“One of my customers called me and said he wanted to get out of the business and he offered me a very good price,” he said. “I was selling paint and I didn’t really know how to run a shop, but I was ready to jump in. I was the new kid on the block in a competitive market, but I knew at least I could succeed by working harder than the guy down the street.” The numbers showed Kuang’s passion and incredible work ethic were going to lead to healthy profits. During his first month as the owner, the shop did $16,000 in volume, but within just five years, the number— pre-COVID—had grown to approximately $300,000 monthly. Kuang is a major advocate of the right to appraisal, to say the least. It’s a technique he’s perfected over the years by learning from the experts and through trial and error. Many shops stay away from it because they find out it’s complex and feel as though the insurance companies will win anyway, Kuang said. It’s not an old scenario that happens every day in shops from NYC to LA. The body shop writes an estimate to fix the car, and then the customer’s insurance company comes in with a lower number. A lot of body shops will bite the bullet and cover the difference, while others will figure out how to cut their costs to accommodate the insurance company’s appraisal. Kuang learned a long time ago eating the difference was no way to

38 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

run a successful business, so he decided to educate himself and learn how to write what he calls the “perfect sheet.” His estimates are well-known for being thorough, accurate and designed to beat insurance companies when he goes up against them over short-pay claims. He builds a case even F. Lee Bailey would be proud of, with stacks of photos, texts, emails, OE repair documentation, schematics—you name it. It’s the appraisal clause, or the right to appraisal, and you will find one in most automotive insurance policies. It gives the customer a method to dispute the estimate provided by their insurance company when their vehicle has been damaged or totaled. It’s not new, but more shops are using it now because they can see it works as long as they dot their I’s and cross their T’s. Kuang found out the hard way because the first few times he tried to implement the right to appraisal on a repair, he stumbled. “I realized you have to document everything in detail and then have the information on-hand or the insurance company will always prevail,” he said. “They are just waiting for you to make a mistake, and they know that many body shops aren’t skilled at performing this process. They got me a few times on storage fees, but never again. The appraisal clause is great for shops and customers, but insurers hate it.” Just like he said at the CAA meeting, Kuang’s mantra is built on the concept the customer is the shop’s customer—not the insurer. But many shops forget that or ignore it. When a policyholder decides to opt for the appraisal clause, it sets in motion an arbitration process that starts where both parties hire their own independent appraisers, Kuang explained. If the two appraisers are not able to agree on a specific number, which happens most of the time, they have to get a third-party involved to review their findings and conduct an additional inspection and assessment in many cases. If two out of the three agree, that number is final and can’t be appealed.

Kuang has become highly adept at helping his customers navigate this tricky process and presents cases with a 99.99% success rate. “We cannot do it ourselves, but we can assist the customer because otherwise the insurance company will eat them alive—I’ve seen it,” Kuang said. “The insurer and the policyholder are the ones who have to pay for the arbitration, so sometimes, customers are reluctant to do it. But we convince them that this is the only way for them to get paid for a proper repair.” Initially, the appraisal clause was a system that worked well for shops who knew how to use it, but now it’s a little more complicated, Kuang said. “The problems began when the insurance industry figured out how to beat it, and today some insurers have changed the wording in their policies to the point where it nullifies the appraisal clause altogether,” he said. Kuang is a maniac when following OE repair procedures to the tiniest detail because he knows his estimate will likely be analyzed in detail by at least two more sets of eyes. Often, he produces short videos highlighting OE repair procedures and calling out parts and processes often missed. As a consultant, Kuang will enable more shops to use the appraisal clause and other techniques he has developed to get paid fairly on each and every repair. The insurance companies won’t likely appreciate his new role, but it’s never been a warm and fuzzy relationship anyway. “Once they saw I knew how to succeed using this system, they started steering customers away from me—it was pretty blatant,” Kuang said. “The insurance companies have a long list of things they won’t pay for, and they don’t like it when they are smarter than they are.” Kuang said he has big plans for his consulting company, and helping his shop clients to be smarter will be one of the first things he wants to achieve in 2022.

www.autobodynews.com

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 39

Energy Commodity Prices Increased by 59% in 2021, EIA Reports by Bethany Blankley, The Center Square

The prices of energy, crude and gasoline all increased in 2021 from 2020, the U.S. Energy Information Agency reported. Prices increased because of higher demand and a range of other factors. By the end of 2021, commodities on the energy index traded 59% higher than they did on the first trading day last year on the S&P Goldman Sachs Commodity Index (GSCI), the EIA reported. GSCI is a commodity index that tracks the performance of global commodities markets. It’s a weighted average that’s updated every year. In 2021, the energy index comprised 54% of the GSCI, with the two crude oil benchmarks, the West Texas Intermediate (WTI) and Brent, accounting for approximately 70% of the energy index. WTI crude oil accounts for the largest share of the overall GSCI of more than 21%. Most GSCI commodity indexes increased by roughly 20%, with only the precious metals index declining in 2021. On a percentage basis last year, the energy index increased by more than double than the industrial metals index did. The only GSCI commodity

Continued from Page 36

Legacy of Giving to help make Christmas a little easier—all courtesy of G&C Auto Body and the Crozat Foundation. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. The late Gene Crozat started the Crozat Family Foundation in 2004 and it’s still going strong. He used to like to say, “It is our responsibility to help our fellow men.” It started as a “Car-A-Month Giveaway” on various local radio stations and has grown into a foundation that provides support to the individuals and families they encounter when they meet through the company’s various car giveaways, accord-

that increased more than the energy index was coffee. Prices for petroleum products RBOB and ULSC increased the most in 2021, trading higher by 67% and 64%, respectively, compared to 2020. RBOB is a reformulated grade of gasoline used as the benchmark for gasoline trading; ULSD is ultra-low sulfur diesel used as a benchmark for heating oil trading. Prices for crude oils on the WTI and Brent increased slightly less, by 62% and 55%, respectively, in 2021. Several factors contributed to the higher energy commodity prices last year, the EIA noted, including weather disruptions such as the February freeze in Texas and Hurricane Ida, which greatly impacted production in the Gulf. Other factors included increased demand for gasoline and diesel and an ongoing demand for crude oil and natural gas greater than the rate of production. Crude oil prices increased in 2021 with the spot price of Brent crude trading at $50 a barrel at the beginning of the year, increasing to $86 a barrel by late October. The 2021 Brent annual average of $71 a barrel was the highest it had been in the past three years. The

ing to the foundation’s website. There have been a few setbacks for the Crozat family since they lost their patriarch, but the business is still growing. Since Gene’s passing, the Crozat family has lost seven of their homes, which burned to the ground in two separate fires, including the house they all grew up in. One thing Gene taught his four children—Shawn, Josh, Jamie and Patrick—and his beloved granddaughter, Maddy, is to make helping people a priority. Crozat took philanthropy to the next level, giving people cars, cash and even jobs at one of his shops in some instances. The company has given away approximately 200 cars since it started the “Car-A-Month Giveaway” nearly two decades ago. “We hope to help the recipients get back on the road of life, giving a reliable ride and additional support to those who have fallen upon misfortune or endured catastrophic, unforeseen events,” Gene Crozat said when he established the program. “We strive to help create success where failure may have seemed inevitable.”

40 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

WTI’s average was $3 a barrel less than Brent’s in 2021. According to EIA’s December 2021 Short-Term Energy Outlook estimates, U.S. crude oil production in 2021 decreased by 0.1 million barrels a day from 2020 and by 1.1 million barrels a day from 2019. The EIA also estimated petroleum inventories decreased by 469 million barrels globally in 2021, “likely the largest annual inventory withdrawal since 2007.” Rising crude oil prices and increased gasoline demand also contributed to the highest national average price for retail gasoline since 2014. The national average increased to $3.01 a gallon in 2021, with retail gasoline increasing by more than a dollar a gallon over the course of the year. At the beginning of 2021, the national average retail gasoline price was $2.25 a gallon. It then passed the $3 a gallon mark on May 17 after disruptions to the Colonial Pipeline. Gas prices continued to increase throughout 2021, with the average price peaking at $3.41 a gallon Nov. 8. The average retail price was $3.28 a gallon by the end of the year, more than a dollar more than it was at the start of the year, EIA reported. The lowest average of $2.67

a gallon was in the Gulf Coast states, with Texas reporting some of the lowest gas prices all year. The highest average of $3.70 a gallon was on the West Coast, with California reporting some of the highest gas prices. From Jan. 4 to Dec. 27, 2021, retail gasoline prices increased by 88 cents a gallon in the Midwest, $1.20 a gallon in the Rocky Mountains and $1.32 a gallon on the West Coast, the EIA reported. The spike in prices in the Rocky Mountains and West Coast resulted from refinery closures in those regions, which led to reduced output of gasoline and lower gasoline inventories, the EIA noted. Less production was compounded by the fact that demand increased due to more visitors traveling to national parks, also putting a strain on already lower gasoline inventories, causing prices for delivery and prices at the pump to go up. One major contributor to high retail gasoline prices last year was high crude oil prices, the EIA pointed out. The average crude oil price for 2021 was the highest it has been since 2018, due to reduced U.S. refinery capacity, and low gasoline inventories that couldn’t keep up with demand.

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 41

Advantage Parts Solutions Appoints Executive Advantage Parts Solutions, a global leader in delivering strategic automotive parts solutions, is pleased to welcome Paul Gange as president of North America to its global team of executive leadership. Gange joins the organization to accelerate the brand’s global sales and marketing strategy and vision throughout North American markets. Gange, a seasoned industry executive, joins as Advantage’s president of North America. In his role, he is responsible for the company’s operations throughout Canada and the U.S. Over his 25-year career, Gange held various executive roles, most notably as president and CEO of Fix Auto USA and with Mitchell International, an Enlyte company, and Audatex, a Solera company. He is an accomplished keynote speaker at many U.S. and international events and has held several advisory board roles with information providers, insurers and various industry organizations. Source: Advantage Parts Solutions

Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras by Joey Klender, Teslarati

Tesla is recalling more than 356,000 Model 3 vehicles based on potential issues owners may encounter with the rearview camera cable, which could be damaged when the trunk is closed. This can cause the camera to malfunction, documents state. The recall applies to 356,309 units, according to a Safety Recall Report shared with Teslarati by the NHTSA. Only 1% of the vehicles recalled are expected to have the defect, the documents state. It applies to Model 3 sedans manufactured between July 15, 2017, and Sept. 30, 2020. “The Model 3 trunk harness is equipped with a solid core coaxial cable that provides the rearview camera feed for visibility on the center display. Over time, repeated opening and closing of the trunk lid may cause excessive wear to the coaxial cable. If the wear causes the core of the coaxial cable to separate, the rearview camera feed is not visible on the center display,” the NHTSA’s description of the defect states.

Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company by Simon Alvarez, Teslarati

In a recent press release, Rivian announced it had officially produced a total of 1,015 vehicles by the end of 2021, 920 of which were delivered before the end of the year. The update comes as news emerged the company’s chief operating officer, Rod Copes, had retired from Rivian in December. Considering Rivian has only just started delivering its first vehicles like the R1T pickup truck, R1S SUV and its Amazon delivery van, the company’s 1,015 deliveries in 2021 is nothing to scoff at. Rivian announced before the end of the year it would likely fall “a few hundred vehicles short” of its 2021 vehicle production target, which was set at 1,200 units. The recent updates—particularly the departure of Copes— appear to have adversely affected RIVN stock. Rivian shares dropped about 2.3% in premarket trading on Jan. 11 as news of the COO’s departure spread online. As of writing, Rivian shares are trad-

ing at $80.93 per share, far below its all-time high in November when RIVN traded at nearly $180 per share, but still enough to give the company a market cap of more than $71 billion. The departure of Copes was extremely understated. While a company spokesperson told The Wall Street Journal the executive’s departure had been planned for months and his duties had already been absorbed by Rivian’s leadership team, there had been no press release announcing the retirement when Copes left in December. Rivian will likely have its hands full in 2022. The company is expected to ramp the production and deliveries of the R1T and the R1S. Deliveries of its Amazon electric delivery van are expected to increase as well. The electric truck market is also poised to become more competitive this year, with vehicles like the Ford F-150 Lightning and possibly the Tesla Cybertruck starting their customer deliveries sometime in 2022.

42 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The agency said excessive damage to the coaxial cable can cause the unavailability of the rearview camera. This risk “may affect the driver’s rearview and increase the risk of a collision. If there is a

Credit: u/Mr_Tank on Reddit

loss of rearview camera display, the driver can continue to operate the vehicle by performing a shoulder check and using their mirrors when backing,” the NHTSA added. It appears the damage to the coaxial cable is caused by a harness on the trunk lid, which extends or folds as the trunk opens or closes. While the trunk is in its closed position, the harness can fold and experience a tight bend radius over an extended period, “stressing the core

of the cable.” Owners can observe visible material wear on the harness to see if their car is affected. The wear can cause flickering or intermittent rearview camera visibility on the center display. The issues were first observed by the Field Quality team, which observed “a potential trend in trunk harness consumption in Service and initiated an engineering study.” The recall determination was made Dec. 14, after the investigation came to a close Dec. 10. The NHTSA observed 2,301 warranty claims and 601 field reports related to this malfunction between October 2017 and December 2021. Tesla is not aware of any crashes, injuries or deaths due to the malfunction. This is the third recall on the Model 3 in 2021, the first two being related to seatbelt and brake caliper bolt issues. It is the second recall Tesla issued Dec. 30, the other relating to a frunk hatch on the Model S sedan. Both recalls will be repaired by Tesla free of charge, the company said.

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*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 43

BMW’s New Car Changes Color ‘With the Touch of a Button’ by Grant Currin, Interesting Engineering

Personalization and self-expression are turning out to be major themes at CES 2022. BMW’s big announcement Jan. 5—a technology that changes the color of a car with the touch of a

duction model of the iX Flow will be available soon, but vehicles with color-changing paint won’t be hitting showroom floors at car dealerships for quite a while—if they ever do. BMW described the chameleon-like exterior as an “advanced research and design project.”

A concept version of BMW’s iX Flow with color-changing paint. Credit: Interesting Engineering

button—shows the storied German automaker understood the assignment. The company unveiled the tech on a concept version of its new 100% electric iX Flow SUV. A pro-

Collision Engineering Program Gets Grant The Collision Engineering Program has received a $700,000 grant from ECMC Foundation to support the growth and expansion of the industry-leading program’s efforts. With foundational support provided by the Enterprise Holdings Foundation, the program is designed to attract and develop entry-level talent to fill essential roles within the collision repair industry and enhance retention and advancement.With nearly 100,000 new entrant collision technicians needed between 2021 and 2025, according to the TechForce Foundation, the Collision Engineering Program addresses the ongoing technician shortage and skills gap. The program replicates Ranken Technical College’s unique two-year apprenticeship model at schools across the U.S., preparing students for success by treating them as professionals from day one. Students gain real-world education working alongside industry experts while also earning their associate degree. Source: Enterprise Holdings

The color-changing paint is a new, flashy application of a familiar technology. Electronic ink, which enables the “electric paper” technology that powers e-readers like Amazon’s Kindle, drives the paint

BMW unveiled Jan. 5. The ink is impregnated with microcapsules, about as thick as a human hair. White pigments within these microcapsules are negatively charged, and black pigments carry a positive charge. Input from the user shifts the electric field around the capsules, nudging some of the pigments to the surface where they change the color of the paint. The technology is currently available in black, white and a few shades of gray. “This [technology] gives the driver the freedom to express different facets of their personality or even their enjoyment of change outwardly, and to redefine this each time they get into their car,” according to Stella Clarke, who led the project within the company. BMW also pointed to more practical applications. Since white paint reflects light, it could keep interiors cooler in hot weather, reducing the amount of energy needed for air condition. Black, on the other hand, absorbs light and could reduce the amount of power needed to keep a vehicle comfortably warm.

ASE Celebrates 50th Anniversary The National Institute for Automotive Service Excellence (ASE) has kicked off a yearlong celebration of its growth and many milestones achieved since its founding in 1972 by industry leaders who sought to recognize competent professional technicians and the repair facilities where they are employed. For half a century, ASE has worked to improve the quality of vehicle repair and service by testing and certifying automotive professionals, becoming the renowned independent non-profit organization striving to uphold and promote high standards of vehicle service and repair. From its initial offering of four automobile tests in 1972, ASE today offers 57 tests and certifications from automobile and medium-heavy truck to transit and school bus, collision repair, parts, military and others. More than a quarter of a million individuals currently hold ASE certifications in these areas of the transportation industry. Source: ASE

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Volkswagen will Launch EV Bus on ID. Platform March 9 German automaker Volkswagen will launch an all-electric take on its famous microbus from the 1950s on March 9. The all-electric Volkswagen ID.BUZZ will be the latest edition to the automaker’s expanding fleet of electric cars.

“We want to make Volkswagen the most desirable brand for sustainable mobility. The ID. BUZZ embodies this like hardly any other model,” VW brand CEO Ralf Brandstätter said. The ID.BUZZ will, of course, use Volkswagen’s MEB platform that has powered vehicles like the ID.3 and ID.4, which

Volkswagen Auto Group CEO Herbert Diess tweeted Jan. 6 that “The Legend returns on 03/09/22!” The graphic then showed an outline of the all-electric VW ID.BUZZ, which will be officially unveiled in about two months.

have been widely popular in the European region. Details regarding the vehicle are relatively scarce; Volkswagen didn’t offer an official press release or any media attention other than the listed tweets to give direction to the

by Joey Klender, Teslarati

Boyd Group Completes CEO Plan

vehicle’s imminent unveiling. We do know the vehicle will be released in the U.S. in 2023. Pricing options are not currently available, and there are no indications of how many trims or configurations Volkswagen plans to offer. However, writers at automotive publication Car and Driver believe the van could start at around $40,000. Volkswagen has made a valiant effort the past few years to expand its lineup of all-electric vehicles. Instead of pushing EVs out on a non-dedicated platform, as it did with the VW e-Golf, Volkswagen began developing the ID. platform several years ago. It had its kinks early on, but Diess has stressed the importance of software in the coming age, along with the crucial nature of an accelerated push to electrification. It has not won Diess many fans involved with German unions, but it has helped the automaker remain relevant as Tesla leads the industry, and other legacy companies, like Ford, continue to advance their platforms and product lines to be more competitive.

Boyd Group Services Inc. on Jan. 4 announced the completion of its CEO succession plan, first announced in August 2019. Effective Jan. 2, 2020, Brock Bulbuck moved into an executive chair role, and Tim O’Day succeeded Bulbuck and became president & CEO. Bulbuck remained in the position of executive chair for a two-year term to support the transition. On Dec. 31, this term came to an end. Bulbuck will remain a part of Boyd Group Services Inc. as he continues to serve as a director on the board. “I would like to acknowledge Brock’s retirement from management at Boyd,” said O’Day. “Brock’s dedication and drive during his 28 years at Boyd were instrumental in building the business and consistently achieving the company’s growth goals.” Source: Boyd Group Services Inc.

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Collide Showcase: Part 2 an insurance company estimate from another database program and nothing matches. “The reality is that we’re never going to get an exact result from three different database products,” said Gredinberg. “They all talk differently and have different logic and P-pages. They will never line up to each other.” He said it’s the estimator’s job to understand the system they are using in order to explain and justify the estimate to the vehicle owner. Gredinberg encourages repairers to talk to vehicle owners on the front end, use the estimating system the way it is intended, and capture all of the included and non-included items. “At the end of the day, the goal is for the consumer to get their vehicle fixed with the least amount of friction possible,” he said. Gredinberg strongly encourages the industry to share any database by submitting a database inquiry: https:// degweb.org/deg-database-parent/ submit-a-database-inquiry.

Pete Tagliapietra, product director at NuGen IT, an OEC Company.

Pete Tagliapietra, product director at NuGen IT, an OEC Company, talked about leading-edge technologies, such as machine learning, computer vision, robotics automation and artificial intelligence (AI). “What’s unfortunate to me is how these technologies seem to be left behind as far as collision repairers are concerned,” said Tagliapietra. He challenged collision repairers to think outside of the box. Tagliapietra shared an idea of using these technologies to capture images of a damaged vehicle and immediately access all of the OEM information required by a collision repairer to repair it. In the current environment, Tagliapietra said repairers have access to individual OEM repair informa-

tion through the manufacturers’ websites. However, each OEM has its own format, and repairers often don’t know what to look for and where to find it. Alternatives include accessing information through OEM 1Stop; a third-party provider, such as ALLDATA or Identifix; or via estimating systems repair lines. He talked about the possibility of accessing OEM repair information via computer vision. In this scenario, digital images of the vehicle damage would be uploaded to a computer vision central server. Once the images are analyzed, a collision shop could have the information available through the OEM website or a third-party provider within seconds. “The premise of the idea is to give collision repairers all of the information needed to create a complete blueprint of the automobile before the estimate is written,” explained Tagliapietra. In addition, reporting capabilities would be available. “Over time, you would be able to look at a certain year, make and model and understand what repair procedures are typically being used to repair that vehicle.” Tagliapietra said all of this is possible with the technology available today. “When you look at all of the different repair information opportunities, none of them bring all of the information that you need as a collision repairer to have access to them,” he said. By using computer vision, Tagliapietra said collision repairers would immediately know all of the necessary repair procedures to include if a pre-and post-scan is required, as well as a recalibration. They would also have access to manufacturers’ position statements before writing the estimate and repairing the vehicle. He encourages the industry to leverage the same technology used by other industries, such as insurance. “Dreaming big is something we need to do in this industry,” said Tagliapietra. “Otherwise, we’ll fall behind and, in some cases, fall further behind.” Michael LoPrete, vice president of global operations at Plastfix Inc., talked about sustainability and the future impact on collision repairers. LoPrete shared a broad defini-

tion of sustainability, which he described as meeting the needs of the present without compromising future generations’ ability to meet their needs. “I think about sustainability as a journey to a place where we are able to complete vehicle repairs while

Michael LoPrete, vice president of global operations at Plastfix Inc.

eliminating all of our current waste streams,” said LoPrete. “I don’t think that there is a point that we’ll ever be finished.” He shared what he referred to as the 3R’s of sustainability, in order of importance: reduce, reuse and recycle. Examples of reduce include repairing something rather than replacing it, and conducting online training rather than incurring travel time. Reuse also refers to repair vs. replace, and LoPrete used the example of purchasing a new cell phone as soon as it is introduced, even if a person’s current device is working perfectly well. Recycling is often the first thing that comes to mind when people think of sustainability, but LoPrete said it has the smallest impact on sustainability initiatives. He introduced the term “recoverability,” which he described as an item that has the capability of being recycled and then converted to a new product of the same type, such as glass or aluminum. “The recoverability rate on those items is nearly 100%,” he said. With plastics, recoverability is less than 5% and includes specific products such as water and soda bottles. The automotive aftermarket is reportedly the No. 2 generator of polypropylene waste globally and recoverability is close to 0%. LoPrete said green consumers are driving the increased awareness of sustainability, and Greta Thunberg is a leading spokesperson for Generation Z. “Generation Z looks at the world through the lens of the sustainability triple bottom line, which includes economy, environment and society,”

he said. “Every decision they make tends to have filters that pass through all three of those things.” Many say Generation Z is demanding industries be more responsible and accountable for their actions. “The ones who do it in a meaningful way are positioning their businesses well to move forward,” he said. “The ones who delay taking action will have to catch up eventually because that segment of the population is only going to become a larger and larger piece of the audience out there.” Moving forward, LoPrete encourages industry stakeholders to work together and make sustainability part of their strategic thinking to reduce the amount of waste being generated while still producing safe repairs. “While we can do things individually that will make a difference, the reality is that the greatest impact will come if we work together,” he said. “Sustainability needs to be a topic of discussion; it can’t be left undiscussed.” He challenged the industry to do the following: • Make sustainability an agenda item during meetings • Appoint a subject matter expert within your organization • Track and record your current waste and look at trends • Identify pathways for improvement • Involve other stakeholders in your conversations • Share initiatives broadly across your organization “If we begin thinking about sustainability from this perspective, we can make progress that will shape legislative actions, rather than being subjected to requirements from outside of our industry,” said LoPrete. “There will be winners and losers across the stakeholder chain. The green consumer will make sure that happens. They will support the ones that make the right choices.” Learn more about the SCRS Repairer Driven Education series: https://rde.scrs.com.

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February 2022 Southwest Edition

Articles inside

59% in 2021, EIA Reports��

Gene Crozat’s Legacy of Giving��

Certification Requirements? ��

400-Mile Range��

to its Proving Grounds��

Making a Difference ��

Estimating ‘Not There Yet’��

Collide Showcase: Part 2 ��

SCRS to Host Open Board Meeting Jan�

Used Electric Car Prices Soared in 2021 ��

Albert Kemperle, Inc� Joins Wesco Group��

February 2022 Southwest Edition

Articles inside

59% in 2021, EIA Reports����������������������������

Gene Crozat’s Legacy of Giving�������������������

Certification Requirements? ������������������������

400-Mile Range�������������������������������������������

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Making a Difference ��������������������������������������

Estimating ‘Not There Yet’���������������������������

Collide Showcase: Part 2 ����������������������������

SCRS to Host Open Board Meeting Jan�

Used Electric Car Prices Soared in 2021 ���������

Albert Kemperle, Inc� Joins Wesco Group�������

59% in 2021, EIA Reports��

Gene Crozat’s Legacy of Giving��

Certification Requirements? ��

400-Mile Range��

to its Proving Grounds��

Making a Difference ��

Estimating ‘Not There Yet’��

Collide Showcase: Part 2 ��

Used Electric Car Prices Soared in 2021 ��

Albert Kemperle, Inc� Joins Wesco Group��