February 2023 Southwest Edition

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Romans Group Releases 2021 Profile of the Collision Repair Marketplace

The Romans Group announced its 16th annual white paper, A 2021 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace, is now available.

The pinnacle year for the collision repair industry was 2019, with an alltime high total addressable market (TAM) of $38.3 billion. Repair facilities were flush with repairable vehicles and had the manpower and parts to service the demand.

The recovery years of 2021 and 2022 were and continue to be awkward and choppy, as the collision repair industry attempts to bounce back within the constructs of numerous macro industry challenges and opportunities, U.S. economic and geo-political headwinds despite the many post-pandemic recovery advances within the collision repair

industry and throughout the broader interconnected auto physical damage landscape.

In 2021, despite a continued reduction in repairable claims, the industry’s TAM recovered to $38.6 billion despite fewer repairable claims, which were primarily supported by an offset increase in higher severity.

Collision Repair Industry

Our near-term future view sees a coalescing of several trends that portend industry growth with both risks and opportunities.

From the beginning of the pandemic in 2020 and continuing throughout 2022, demand for collision repair services exceeded technician capacity for most of the l CONTINUED ON PAGE 4

At CARSTAR Fort Collins, Process Produces Performance

At CARSTAR Fort Collins in Colorado, the new facility was designed with organization and performance in mind.

The location, which had been used a as granite storage facility, provided ample room for owner Doug Kaltenberger to install the repair process system of which he had dreamed.

First, Kaltenberger and his team designed the production area with technicians in mind, pulling from his 30 years of working as a collision repair technician. Each bay was set up with air hoses, power wash, in-ground lifts and focused lighting to make it more efficient for technicians to work on the vehicles.

Building during the pandemic

REGIONAL NEWS

provided a unique challenge, but the team was able to open the facility on time and ready to serve customers as they got back on the road.

Then, with General Manager Tylor Balistreri at the helm, they implemented a labeling system that tracks vehicles and their repair status throughout the facility, initially developed by Kaltenberger in his previous location.

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TSTC Graduate Comes Back To Teach in Auto Collision and Management Technology Program

William Graham, of Teague, TX, began teaching in October 2022 in Texas State Technical College’s auto collision and management technology program at the Waco, TX, campus.

Graham is a graduate of Teague High School and TSTC’s auto collision and management technology program.

Recently, Graham talked about his new role and what he hopes students can learn in the program.

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INSIDE THIS ISSUE

AZ / AR / CO / LA / NM / OK / TX / UT SOUTHWEST EDITIO N YEARS 41 AUTOBOD YNEWS.CO M Vol. 41 / Issue 02 / February 2023
REGIONAL NEWS
Columnist Mike Anderson: Alignments Are Too Critical for Collision Repair Shops to Not Do Them In-House 12 Columnist Abby Andrews: UAF Accepting Applications for Scholarships from More Than 40 Organizations 19 Columnist Ed Attanasio: Auto Painter Invents Linear Blocking Tools While Looking for a Better Paint Job 34 Columnist John Yoswick: Auto Body Shops Struggle to Control Access to, Use of Estimate Data 6 PRESORTED ARANDST D S.U. AGPOST E AIDP P ERMIT 8#28 ,ANAHEIM CA P.O. BOX 1516, CARLSBAD, CA 92018 Change Service Requested
2 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com

COLUMNISTS

autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 3 Contents AF Collision Becomes 1st Utah Shop to Join 1Collision 22 At CARSTAR Fort Collins, Process Produces Performance 1 Autonomy’s EV Subscription Service Makes Texas Debut 26 Classic Collision Adds 2 Locations in Colorado 43 Colorado Sees Spike in Gas Prices After Suncor Refinery Closes 33 OKABA Renews SCRS Affiliation as Part of Revitalized Commitment to Oklahoma Repairers 16 Oklahoma Family Out $1000s After Auto Repair Shop Shuts Down Without Finishing Repairs 44 Provo, UT, Woman Receives Refurbished Vehicle Through NABC Recycled Rides Program 18 Survey: Colorado Small-Business Owners Against Increased Taxes, Fees for EV Infrastructure 42 Tesla Files for $716M Expansion at Giga Texas 30 Tesla Giga Texas Steps Towards Cybertruck Production with More Equipment Deliveries 36 Three-State Hydrogen Partnership Entering Second Phase of Grant Application 47 TSTC Graduate Comes Back to Teach in Auto Collision and Management Technology Program 1 REGIONAL NEWS Index of Advertisers 2022 U.S. Car Rental Revenue of $36.1B Shatters Records 43 2023 Women in Auto Care Leadership Conference 26 ASE Announces New Officers 20 asTech’s Rules Engine Now Available 30 Auto Care Alliance Partners with Elite 42 CARFAX Warns Odometer Rollbacks on the Rise 11 Classic Collision Acquires Shops in Las Vegas, Texas 18 Ford F-Series is Best-Selling Truck for 46th Consecutive Year 22 GM May Repurchase 2022-2023 Chevy Malibu Cars 47 Holidays Bring Gift of Falling Gas Prices 33 Jaguar Land Rover Joins I-CAR Program 42 NABC Announces Deborah Robinson as New Executive Director 16 PepsiCo to Deploy 100 Tesla Semis in 2023 44 Pump Prices Creep Higher Amid January Doldrums 20 Ram Tailgate Recall Involves 1.4 Million Trucks 46 Rising Auto Loan Interest Rates Drive Share of $1,000+ Monthly Payments to Record Levels 37 Romans Group Releases 2021 Profile of the Collision Repair Marketplace 1 U.S. EV Sales Grow by 65% in 2022 Despite Overall Auto Market Decline 36
3M Automotive Aftermarket Division 5 Audi Wholesale Parts Dealers 47 Axalta Coating Systems 13 BendPak 15 BMW Wholesale Parts Dealers 42 Bob Utter Kia ������������������������������������������� 36 Car-O-Liner 2 Car-Part com 11 Certified Automotive Parts Association 18 Christopher’s Dodge-Ram������������������ 26, 29 Classifieds 46 Emich Chevrolet 29, 33 Emich Volkswagen 29 Equalizer Auto Glass Tools 4 Fisher Acura 29 Fisher Honda 29 Five Star Subaru �������������������������������������� 10 Flatirons Subaru 29, 35 Ford Wholesale Parts Dealers 45 Fowler Honda 26 Freeman Mazda ��������������������������������������� 30 Garcia Honda 30 GM Wholesale Parts Dealers 41 Honda-Acura Wholesale Parts Dealers 24-25 Horne Kia 18 Hyundai Wholesale Parts Dealers 44 Industrial Finishes and Systems 21 Kia Motors Wholesale Parts Dealers 39 Larry H Miller Ford Mesa 22 Mac Haik Ford-Lincoln 31 Mazda Wholesale Parts Dealers �������������� 40 Mitsubishi Wholesale Parts 38 MOPAR Wholesale Parts Dealers 37 North American Bancard 48 North Freeway Hyundai ��������������������������� 20 Northside Chevrolet 19 Part of the Club 29 Peak Kia 29 Platinum Auto Trends 12 Quality Buick-GMC 16 Santa Fe Kia 26 Schomp Mazda ���������������������������������������� 36 Scoggin-Dickey Parts Center 8-9 Shop-Pro Equipment Inc 17 Spanesi Americas 7 Stevinson Toyota West���������������������������� 29 Subaru Wholesale Parts Dealers 43 Toyota of Laredo 27 Toyota Wholesale Parts Dealers 34 Volkswagen Wholesale Parts Dealers 42
NATIONAL NEWS
Mike Anderson Alignments Too Critical for Collision Repair Shops to Not Do Them In-House 12 Abby Andrews Maaco Celebrates 50th Anniversary Milestone at 2022 Convention 14 Nonprofit Continues Mission to Connect Aspiring Collision Repair Students to Scholarships 19 Ed Attanasio 5 Things Companies Must Do to Stay Engaged with Customers 38 Auto Painter Invents Linear Blocking Tools While Looking for a Better Paint Job 34 Burl’s Collision Center Hosts Events for High School Students, First Responders 27 Marketing Expert Sees a Future without DRPs 32 Wholesale OE Parts Veteran Discusses SEMA and Today’s Challenges 10 John Yoswick Auto Body Shops Struggle to Control Access to, Use of Estimate Data 6 Event for Large Collision Repair Businesses Focuses on Labor Shortage, State of Consolidation 28 Speakers Offer Advice on Recruiting, Retaining Auto Body Shop Employees 40 Advertise in our Classified Section for $50 per column inch! ltedesco@autobodynews.com 800-699-8251 AUTOBODY www.autobodynews.com

Romans Group

larger MLO consolidators in the U.S. and Canadian markets, which resulted in high levels of work-in process. We see this extending into 2023 due to the continuing labor shortage. It is not a matter of demand, but a supply side lack of labor availability.

Labor shortages and technician skill deficiencies are creating competition to acquire those who are interested in receiving training to improve their skill levels. This situation is consequently increasing technician acquisition, retention and benefit costs.

Insurance carriers have taken additional steps to increase premiums to cover their rising costs. Historically, repairers had a difficult time pursuing labor rates with insurers. Today, the collision repair industry is aggressively pursuing labor rate increases and is hopeful that insurer premium increases will allow for their labor rate increases.

Insurance carriers, which continue to account for a significant volume of claims to repairers, tend to favor MSOs that offer largely predictive and standardized outcomes.

We do see a nascent movement by several MLOs to move away from DRP relationships while opting into a predominantly OEM certification preference model.

MLO scale remains a competitive advantage.

The groundswell of support and adoption of OEM repair standards continues to emerge as the preferred norm. However, the degree of influence and control by the OEMs in directing business remains limited. There is a better near-term chance for ROI with premium and luxury brands today due to their more active involvement and adherence to program standards and processes influencing where cars are repaired.

Vehicle telematics will become a more influential factor in the future control of the claims process.

Electric vehicle sales are trending upward toward 10% of new car sales by YE 2022. We expect EV sales to increase to between 30% and 40% of sales by 2030.

Despite the expectation of the onslaught of EVs, range anxiety will need to be addressed and overcome through increasing battery range capability coupled with growing the number of charging stations nationally.

Full digitalization of the estimating process for qualified repairable claims starts with less complex

repairs and eventually migrates to more complex damaged vehicles. The journey starts with photos and evolves to telematics, reliance on artificial intelligence coupled with insurer-driven rules and integration of supplier network connections. This throughput connected process will automatically initiate and populate the line-item detail necessary for predictive and actionable estimates.

Continued evolution of business segmentation strategies will have the largest consolidators marketing their “one national shop model/ platform” to insurers, boosting a large marketplace network of available collision repair locations throughout the U.S.

This one-national-shop model is further segmented within markets by various clusters of collision repair locations that can provide a broad range of segmented capabilities able to satisfy a wide range of repair types including glass installation, express same or next-day service, non-drivable/total-loss processing and disposition, OEM standards and luxury model certification, advanced material repair, mechanical repair, diagnostic services including pre- and post-repair scanning and calibration, and partnering and operating dealership collision repair centers.

Private equity continues to be highly committed to the collision repair industry. MLOs will continue to aggressively acquire and merge. Consolidation is active within all auto physical damage segments. There remains much opportunity for further consolidation and continued private equity investment.

Despite the growing market share of the larger platforms and segments we track and analyze, there is still a long tail of smaller independent repairer fragmentation in the market which will be the basis for the next wave of industry contraction and consolidation.

Multiple Location Operator (MLO) Consolidation

Within the broader automotive aftermarket landscape, private equity and institutional capital continue to invest in most of the satellite segments surrounding the collision repair industry such as parts, paint, body and equipment (PBE), tire outlets, carwashes, dealerships and technology.

Comparing the first six months of 2022 to the same period in 2021, we saw an unusually slow period for MLO collision repair acquisitions by most consolidators, with Crash Champions and Classic Collision being the exceptions. Both Crash

Champions and Classic Collision will most likely advance in the ranking at year end 2022.

While Caliber and Gerber did acquire some MLOs during this time period, much of their expansion was through single-location acquisitions, brownfields and greenfields.

The most significant acquisition event of 2022 came in July, when Crash Champions announced its transaction with Service King with its new private equity partner Clearlake Capital.

There are a number of secular trends that exist today that will continue to have a material impact and influence on the collision repair industry and within the broader auto physical damage industry segments.

Insurtech claims processing operating models reinforce insurers’ preferred business economics, which frequently is at odds with the OEM repair model.

Vehicle damage estimation with photos evolving to vehicle telematics, relying on artificial intelligence coupled with insurer-driven rules with integration of supplier network connections.

U.S.-Canada trans-border market entrance as reflected by companies such as Collision Solutions Network, which merged in mid 2020 with 1Collision in the U.S with its continued

onboarding of new members; Fix Auto with ProColor entering the U.S. in early 2021 with its expanding franchise network in 2021 and 2022; and Lithia Dealership Group entering Canada with the acquisition of Pflaff Automotive Dealer Group.

OEM certification programs’ continued evolution, importance and involvement in collision repair. Our five-year forecast to 2026 has the $20 million segment and the top three consolidators aggressively growing their businesses while maintaining their significant market share lead over the franchise networks and the $10 million to $19 million MLO segments. We expect that by 2026, the top three consolidators will grow from their 2021 market share of 18.4% to between 24% and 28%.

Our annual report, A 2021 Profile of the Evolving U.S. and Canada Collision Repair Marketplace, is now available. The report contains the complete results of our research and analysis for 2021, including over 90 charts and graphs throughout more than 130 pages with historical trends and a future view.

The report can be purchased by contacting Mary Jane Kurowski of The Romans Group LLC at maryjane@ romans-group.com.

Source: The Romans Group LLC

4 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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“The

“The ability to … track and, more importantly, provide an invoice and receive reporting based on that specific repair in regard to materials used is critical to the profitability of body shops.”

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Auto Body Shops Struggle To Control Access To, Use of Estimate Data

Denise Koukal, chief information officer for the LaMettry’s Collision chain in Minnesota, said her company, like others, has had a customer upset his vehicle repair generated an entry on a vehicle history report.

“We got a phone call as he was preparing to sell his vehicle at an auction and noticed that this had been reported to a third-party vehicle history report,” Koukal said during a data access and privacy discussion at the Collision Industry Conference

history report,” she said. “This customer was a repeat customer for us. We had done five repairs for him. We have done none since.”

Start of Estimate Enough to Send Out Data

Another panelist, New Mexico shop owner Scott Benavidez, said he has been working since 2016 to track down how some estimate data from his shop has made it to vehicle history reports He shared a flowchart similar to Koukal’s, but the estimate it tracks was not a customer-pay job but one involving an insurance company.

“As repairers know, we get information every day that says, ‘Add this vendor, add this vendor,’ so that they can continually look for the least expensive part,” Benavidez said. “That absolutely opens it up to people that I didn’t even invite….as a vendor, but now are in my platform because of the insurer relationship.”

Koukal agreed, noting insurer and automaker programs can similarly require the use of different customer satisfaction indexing services, “exposing that data to many more places.”

“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle,” Koukal said. “There’s probably been about 10 times that we’ve been called about it, so we

difference,” she said. “But the reality is [the agreements] are more of a punitive thing—only if we find out that something has happened—than something on the front-end that stops the data from going out.”

Koukal said her company falls between Benavidez’s and Caliber in terms of size, and has EULAs with some of its vendors but not others. She agrees with Denison’s view that such agreements have limited value.

(CIC) in November. “I’m sure many of you have had the conversation about ‘Why did you report my repair? Now it’s going to financially impact me with the sale of my vehicle.’ We didn’t report it, but we don’t know who did either. So it’s a very difficult conversation to have with a customer.”

Koukal shared a flowchart tracing everywhere data related to that repair—a customer-pay job—went from the shop, including to three different parts procurements systems that each searched for parts from multiple vendors; thirdparty scheduling and customer service indexing services; OEM repair procedure sources; an aftermarket scan tool system; a materials invoicing system; and an aftermarket clips and fasteners tracking system.

Koukal said other common places the data is sent—though not for this particular repair—include a rental management system, sublet sources and an online estimating program.

There was no way of knowing, Koukal said, how in all that data flow the repair made it to the vehicle history report. She said both her company and the customer asked to have it removed from the report for the vehicle.

“To my knowledge, the accident was never removed from the vehicle

Benavidez said once last year, he had entered about the first 20 lines of an estimate before he got called away to do other things.

“I came back to that estimate about an hour or two later,” he said.

“As I went through my emails, I had received one from Wheels America that said, ‘Hey, we have your wheel’ for that particular vehicle. I hadn’t locked the estimate. I had never done anything with that estimate other than start it. Wheels America is someone I’ve never done business

know it’s happened. But there’s probably a lot we don’t know about.”

Ashley Denison, chief information officer for the Caliber Collision chain, agreed, noting the company’s CEO even came to her about tracking down the issue because the repair of his own daughter’s car made it onto the vehicle’s CARFAX report.

Denison said Caliber has resources to try to address the issue, but she sees the need for an industry solution because if it happens to any shop, “it happens to all of us, it’s a knock on the industry.”

She said listening to what Benavidez as the owner of a single shop has done trying to track the problem down, she was “blown away by how much as an operator he had to know about all this,” when he should be focused on the quality repairs and customer service everyone wants from shops.

“So how do we as an industry begin to flip that,” Denison asked rhetorically.

Putting Things in Writing

Benavidez said he worked with the Automotive Service Association years ago to create an “end-user licensing agreement” (EULA) shops could require vendors to sign related to their use of the shop’s data.

“In order to do anything about them, you have to know where that data was shared and who shared that data,” Koukal said. “You’d also need to take it to a court of law in order to have anything done with it. I don’t think everyone is in a position to do that, nor do they want to do that. So I don’t know how much value [the EULAs] have.”

The panel was asked if some sort of government regulation, similar to those designed to protect patient information in the medical field, was the answer. Denison said that certainly would create compliance,

with. They were put in there by the insurance company. And I had no idea it was going to them.”

The panelists all agreed it’s difficult to know how often a shop’s data related to a repair somehow makes its way onto a vehicle history report.

“But I have yet to get one company to sign that,” Benavidez said. “I think the reason for that is even they don’t always know where [the data] is going. I’ve brought it up numerous times, but I’ve had zero response in getting anybody to sign that EULA.”

Denison said Caliber does have EULAs in place with its vendors.

“I think this is where size and scale makes a little bit of a

“But I absolutely believe that as an industry we can solve the problem without the government getting involved.”

In the meantime, Koukal and Denison each said their companies added verbiage to their repair authorization indicating the customer allows the shop to access and share vehicle data with third-parties as relevant to the repair of the vehicle.

“My concern is: Do they read it and understand what that actually means,” Denison said, acknowledging that if she knew little about the industry and was getting her car repaired, she would just check the boxes as necessary and sign the form.

Benavidez said his similar concern led him to create a second authorization related to the use of their vehicle data from scans.

“It’s really helped us with the consumer to gain their trust,” Benavidez said.

6 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
Denise Koukal, chief information officer for LaMettry’s Collision, said they recently lost a repeat customer after estimate data somehow made its way to a vehicle history report Ashley Denison, chief information officer for Caliber Collision, said the company has agreements in place with its vendors related to use of estimate data Credit: Shutterstock
“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle.”
DENISE KOUKAL CHIEF INFORMATION OFFICER, LAMETTRY’S COLLISION
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GM Genuine Parts

Chris Slack manages a parts department at Ivan Gandrud Chevrolet in Green Bay, WI, that employs 30 people, including eight counter people and three service technicians.

part of Michigan with a fleet of 18 trucks.

Gandrud has been exhibiting at SEMA for the past four years, after attending it the four years before that. Autobody News asked him about the show and its impact on his business.

Q: What were the central issues that shops and parts suppliers were dealing with in 2022?

performance and collision customers at the show so that is nice also.

Q: How has SEMA changed since your first show?

A: I think there will be fewer collision shops and also fewer wholesale parts dealers.

The department carries an inventory of approximately $5.5 million, consisting of mechanical, collision and performance parts, and is an authorized Mopar dealer that sells genuine Mopar parts online. With 30-plus years of experience under his belt, Slack is succeeding in a very competitive marketplace. He’s well-known for being one of GM’s largest parts operations in the country, serving all of Wisconsin and

A: We have been dealing with a bunch of issues but the biggest is backordered parts. So many parts are unavailable from the manufacturer. We have been trying to make it seamless by buying parts for our customers from other dealers across the country. We have bought more parts from other dealers than ever before, but if that’s what it takes to get a car finished and out of our customer’s shop, then that’s what we have to do.

Q: Do you see value in a show like SEMA for dealer parts suppliers?

A: SEMA is a great show for us because we have a large Chevrolet Performance parts business. We see a lot of our

A: I think SEMA has changed from a performance show to a more complete automotive show. Now even the service manager and the collision shop manager should attend and visit all the vendors and attend training.

Q: Do you think parts availability will improve significantly in 2023?

A: No, maybe by the end of 2023, availability is improving but very, very slowly.

Those are definitely the three top concerns. We need a bigger facility because we need more inventory which means more people and more delivery drivers. We have had to cut back on our delivery area because we don’t have time to deliver to all our customers.

Q: What will your sector look like in 2025?

The parts dealers are under a lot of pressure right now. Our discounts from the manufacturers have dropped because of availability— many parts can no longer be ordered at a truckload discount but instead we have to special order it one at a time to get the part at a much lower discount. Delivery expenses have gone up, personal costs have gone up.

But as the large MSOs buy up all the collision shops, they are demanding bigger discounts. That’s a business model that doesn’t work. The collision shops should instead work on getting a higher labor rate from the businesses that control that.

Q:If a young person was going to enter this industry, what would you tell them?

A:Now is a great time to get into the parts and collision business. Demand for qualified people has never been higher. Every collision shop and wholesale parts department in the state is hiring right now.

10 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
Wholesale OE Parts Veteran Discusses SEMA and Today’s Challenges
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Chris Slack manages the parts department at Ivan Gandrud Chevrolet in Green Bay, WI.

CARFAX Warns Odometer Rollbacks on the Rise

Alarming new numbers from CARFAX show odometer rollbacks are on the rise nationwide.

More than 1.9 million vehicles on the road have had their odometer rolled back—a 7% increase from the previous year.

Consumers lose an average of $4,000 in value from unknowingly buying a rolled back car, and that doesn’t include unexpected maintenance costs.

“Many people think odometer fraud disappeared with the invention of digital odometers,” said Emilie Voss, public relations director for CARFAX. “But that couldn’t be further from the truth. We’re still seeing the number of vehicles on the road with a rolled back odometer rise year-over-year. It

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CARSTAR Fort Collins

Each vehicle receives a colored flag denoting the insurer for the vehicle, which gives technicians a quick reference for the repair standards for that vehicle. This was followed by a traffic system—that soon will include stop lights in each repair bay—that shows green for completed, yellow for on-track and red for problems. This serves as a visual cue for which vehicles need attention to stay on track for cycle time and customer satisfaction.

“Everything at CARSTAR Fort Collins is designed with the technician in mind to ensure they have the resources they need to repair vehicles with the highest quality and on time,” said Balistreri, who began his career at Enterprise,

powered by CCC Intelligent Solutions. The dashboard tracks all of the key performance indicators in real-time, on a vehicle-by-vehicle basis. It includes a virtual map of the facility, and each car being repaired is reflected on-screen. Technicians

ready to install them and that they are set to move the vehicle on to the next step. At first, it was a bit of a new mindset for the technicians, but now we have complete buy-in. They can see the direct impact of their work on our overall productivity, and this is very motivating for everyone.”

With this system in place, Balistreri said the facility now focuses on CARSTAR’s “Five S System,” which outlines steps of straightening, shining, systemizing, sustaining and supporting. This has led CARSTAR Fort Collins to deliver cycle times two days shorter than the Colorado state average.

are trained on the system and responsible for updating their

“I never imagined myself being the general manager of a multi-million-dollar facility, but with Doug’s leadership and the CARSTAR system, I’ve been able to grow in this job and constantly learn new skills,” he added. “I can’t

“We have immersed our technicians and our customer service team in the technology and hold the technicians accountable for keeping their vehicles on track in production,”
TYLOR BALISTRERI GENERAL MANAGER

Alignments Too Critical for Collision Repair Shops to Not Do Them

During a recent meeting I had with my SPARTAN 300 20 Group, we reviewed some vehicle crash test videos posted by the Insurance Institute for Highway Safety, like one showing a side crash test of a 2022 Toyota Corolla.

A preventative maintenance alignment what people were talking about years ago when they said, “Set the toe and let it go” are the typical $89 alignments to make sure the vehicle handles properly and the tires don’t wear unevenly.

trying to avoid that by putting some weight in the vehicle instead: Stop it! Follow the OEM procedures. I have seen only two automakers that give you procedures for how to do that instead of filling.

We may also have to do some advanced diagnosis. The subframe could be misaligned, for example. If you let the subframe bolts loose and it jumps, that tells you it’s got some pressure on it. You may also have to adjust a cross-member for torque steer.

There’s just a lot more that we have to do.

37% of shops said they were paid “always” or “most of the time” for a pre-diagnostic alignment by the eight largest national insurers. That was up to 45% in last year’s survey.

“We

In the video, if you watch the tires on the vehicle as it gets pushed sideways by the sled, you can see they leave black marks on the floor just as they would if they scraped against the pavement in a real collision.

Watching this, the question came up: Could that create flat spots on the tires?

One of our group’s members checked the run-out on tires on collision damaged vehicles in their shop using the Hunter Road Force Elite, and found more than 27% of the tires they checked did have flat spots.

That led us to a discussion about alignments. We know more and more vehicle system calibrations require an alignment prior to the calibrations. And more and more alignments require a calibration of some system after the alignment. It won’t take you long looking through automaker repair procedures to know more and more automakers are saying an alignment is necessary any time a vehicle has been in an accident. Electronic stability systems are just one of the systems that rely on the vehicle being properly aligned.

Given all this, I believe in today’s collision world, you really need to be able to do alignments in-house.

I know some of you will say: But the bill-payer only wants to pay me $89 for an in-house alignment. But let’s remember there are at least four different types of alignments.

But there are also “symptom alignments,” where the customer comes in to say their car is pulling or they’re experiencing a shudder or shimmy. There are also “performance alignments” for someone who wants their alignment to a certain spec ahead of going to the racetrack.

But what we’re doing in our industry are “collision alignments,” which are very different than these other types of alignments. The work involved in these alignments starts during intake of the vehicle. At that point, we need more information about the accident. We need to ask what the weather conditions were; the tires on a vehicle hit on dry pavement are going to grip the road more, more likely resulting in a flat spot.

We need to understand if the vehicle left the road, vertically or horizontally. Did it hit a curb? How many occupants were in the vehicle? How fast was the vehicle moving? Were the brakes applied at the time of impact? Is the steering wheel offcenter? All of these things can impact the repair and alignment of the vehicle.

It’s also important to understand all we have to do as part of a collision alignment that is not included in those $89 alignments. We may need to do a steering angle sensor reset. We may have to empty unnecessary customer cargo. We may have to ensure the gas tank is full, and all the other fluid levels are full.

By the way, for those of you

Being able to do alignments inhouse is also important because I believe that in order to write an accurate damage analysis, a prealignment check is necessary. I’ve been heartened to see in our “Who Pays for What?” surveys over the years that more shops are reporting regularly being paid for this procedure. Back in 2015, only

Still, about two in five shops acknowledge never having sought to be paid for this important process. I’d like to think those shops are doing the pre-alignment check and just not billing for the labor involved, but I’m also concerned some of them are not taking vehicle alignment into account early in the process as they should be.

12 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
In-House Mike Anderson — From the Desk of Mike Anderson
The black marks left on the floor of a crash test facility are an indication that accidents can result in tires having flat spots, something collision repairers need to be aware of.
know that more and more vehicle system calibrations require an alignment prior to the calibrations.”
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Maaco Celebrates 50th Anniversary Milestone At 2022 Convention

Maaco looked back at 50 years in business—and forward to its next 50—at its 2022 convention, held Nov. 15-18 in Carlsbad, CA.

The second day of the gathering, Nov. 16, featured messages from Maaco’s senior leadership team, a message from keynote speaker Mike Anderson of Collision Advice and several breakout sessions for attendees. The recipient of the Tony Martino Hall of Fame and Vendor Partner of the Year awards were also announced.

The convention ran through the evening of Nov. 18, featuring a charity golf tournament, vendor trade show, fall festival and a gala.

“Let me be clear—we are proud to be celebrating the achievements of the past, but it is equally important to stay hungry, ensuring many more achievements for the future,” said Chris Dawson, president of paint and collision for Driven Brands.

Tony Martino Hall of Fame Award

The award was presented by Maaco founder Tony Martino’s son, Mark Martino, who shared memories of how his dad got the franchise started, opening the pilot location in Wilmington, DE, in 1972.

“I remember saying to Dad, ‘Are you sure anyone would want to do this for a living?’” Martino said. “He hesitated for a minute and then said emphatically, ‘Yes, I’m sure someday we are going to have hundreds of these Maaco centers all over the country.’

“His prophecy proved true and

here we sit, 50 years later, celebrating his foresight and dedication,” Martino said.

The Hall of Fame award named for Tony Martino is given to an owner who personifies Maaco’s founding values of providing quality service at a fair price.

This year, it was presented to Jay Patel, who owns 11 Maaco stores in four states and, over his 30+ years with the franchise, has gotten much of his extended family involved in the business.

“I am so grateful for this honor, and I give all the credit to Tony Martino,” said Patel. “He taught me so much that I have applied to my business to be successful. The most important thing was taking care of the customer. His saying was ‘paint a car, make a friend,’ and my goal and my team’s philosophy is to treat them like family, and the goal is always to make a customer for life, whatever it takes.

“I believe in the Maaco system,” added Patel. “Maaco has the successful formula, and all I have done is applied it. I don’t try to reinvent the wheel—they already invented it, and it works.”

Keynote Message

Mike Anderson of Collision Advice spoke about how franchisees should grow their teams to grow their business.

“Everybody on the collision side in the U.S. has a five- to eight-week backlog of work,” Anderson said. “What everyone does not have is people.”

To grow a team, owners have to either help existing staff get better at what they do, or bring on new hires. And to do that, owners must create an environment where people don’t love their jobs—they love the organization.

“You want them to love working for YOU,” he said. “Culture is your commodity, the goose that lays the golden egg every single day.”

Anderson said the industry has a whole does not have a staffing shortage—it has a “we don’t pay enough” problem.

“We have got to offer better compensation,” he said.

Another key is to lay out a career path for employees, so they see how they can advance.

The lines between collision work and what Maaco does are becoming more blurred, Anderson said, thanks to increased ADAS features on cars

that make recalibration necessary to complete what was once a simple paint job on a front bumper. Improper recalibrations can cause accidents, leading to liability issues.

“This is not a message of doom and gloom; it’s an area of opportunity,” Anderson said, noting Maaco owners might be able to expand their services to include ADAS calibrations for other area shops.

Anderson said Maaco owners also need to make sure their customer service is modern, not antiquated, offering conveniences like concierge service, email receipts and a 24/7 digital presence, so customers feel like they can start the repair process even outside of normal business hours.

Maaco’s Online Estimating Tool, launched pre-pandemic in 2019 and now on its fourth version, is a great way to do that, Anderson said.

“It’s difficult if not impossible to write an estimate based on a photo, but look at it as a marketing strategy to capture a hot lead outside of business hours,” when most crashes occur, he said.

Shops like Maaco also have to dominate online reviews, as voiceactivated searches for things like “best auto paint repair shop near me” only return the top result.

To do that, shops need “social proof,” like online reviews, to vouch for their ability to fix a car.

who have both partners for more than a decade.

Media Roundtable

Executives, including Dawson, Maaco COO Daryl Hurst, Porcelli and Driven Brands Senior Vice President of Marketing Hannah Whitesides, participated in a media roundtable.

Dawson opened the roundtable by saying 2021 was a stellar year, as Maaco assembled an incredible leadership team, listened to franchisees and leveraged data for the first time to look at what was happening and what needed attention within the franchise.

Shops like Maaco also need to regularly communicate with vehicle owners during the repair process, even if it’s a “no update” update.

“Keeping them informed drives the customer experience,” he said. “Let them know you’re still working on it, you haven’t forgotten them.”

Vendor

Partner

of the Year

Senior Vice President of Strategy and Franchise Administration Chris Porcelli presented the Vendor Partner of the Year award to cowinners Sherwin-Williams and 3M,

“Most importantly, we listened to consumers, started using research to find out what they were asking from us and putting together a plan, and the results are beginning to show,” Dawson said.

Porcelli said Maaco, as part of Driven Brands, is using scale to support its partners.

Whitesides talked about some of the ways Maaco has acknowledged its 50th year, including celebrating a shop-level employee every week and partnerships with other companies, like one with Ray Ban to give away 50 pairs of golden sunglasses.

Going forward, Hurst said Maaco will “stay true to our core, look at the evolution of vehicles and what the consumers need, and leverage data to help franchisees to do business in the future.”

In 2023, Porcelli said, Maaco will be focused on growth, specifically strengthening fleet partnerships.

“We just went through one of the most trying times as a nation,” Dawson said. “We didn’t just thrive, but Maaco was there for franchisees every step of the way. We came out in a better place. Existing franchisees want to open more stores, and we couldn’t be more excited for that growth.”

14 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
Pictured, left to right, are Driven Brands Collision and Paint President Chris Dawson; Mark Martino, son of Maaco founder Tony Martino; Maaco COO Darryl Hurst; franchisee Jay Patel, winner of the Tony Martino Hall of Fame Award; Maaco Vice President of Operations Bryan Jones; Driven Brands Senior Vice President of Marketing Hannah Whitesides; Maaco Senior Vice President of Strategy and Franchise Administration Chris Porcelli; and Maaco Vice President of Franchise Services Dave Gross Sherwin-Williams was a co-winner of the Vendor of the Year Award 3M was a co-winner of the Vendor of the Year Award
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OKABA Renews SCRS Affiliation As Part of Revitalized Commitment To Oklahoma Repairers

The Society of Collision Repair Specialists (SCRS) is pleased to announce a renewed commitment from the Oklahoma Auto Body Association (OKABA) to reestablish its affiliate association membership, as part of the national network.

OKABA originally joined SCRS as an affiliate association in 2002. Twenty years later, the Oklahomabased association officially relaunched on Dec. 9, after a several-year hiatus and months of rebuilding efforts to create a reinvigorated association and board of directors.

OKABA’s objectives are to serve the small businesses and the motoring public in Oklahoma through leadership, education and initiatives that uplift the professionalism and business conditions of those engaged in our state’s collision industry.

“I’ve had the opportunity to work with other auto body associations during their formation,” shared OKABA Executive Director Ementi Coary. “With every one of those efforts, the focus was on bringing much-needed education and training to the market. By affiliating

with SCRS we’ve restored an important part of the history of the association that came before us, but also believe it places us in a better position to bring quality information to more repair facilities.

“We want to help inform our members on important industry topics with the goal of bettering their businesses and increasing their visibility of safe and proper repair considerations,” Coary said. “We look forward to building a solid foundation with body shop owners, managers and technicians during our 2023 kickoff campaign.”

An important part of the OKABA mission is to provide an opportunity for those in the Oklahoma repair industry to meet and network with shop owners, technicians, business leaders, tool providers and industry affiliates to benefit the repair industry as an alliance.

“Our vision is to see OKABA help our shops focus on performing safe OE repairs,” added OKABA President Bryan Burdette. “We want to encourage continuous education and recruitment and being able to partner with tenured

NABC Announces Deborah Robinson As New Executive Director

The National Auto Body Council® (NABC) announced Jan. 11 it has named Deborah Robinson as the executive director for the organization.

Robinson, who has served the NABC as head of marketing and public relations as president of Victory Management Group

the momentum of the NABC in changing and saving lives every day.”

Robinson brings deep experience in the automotive industry, leading clients such as Driven Brands with its portfolio of companies including CARSTAR, Fix Auto USA, ABRA, Maaco, Auto Glass Now, Take 5 Oil Change and Meineke; VeriFacts Automotive; Goodyear Brakes; Lowe’s Racing; Dodge Motorsports; Ray Evernham Enterprises; Charlotte Motor Speedway and NASCAR Racing Experience, among others.

associations like SCRS helps us achieve that common goal.”

“The collaboration that occurs between the state, national and international associations within the SCRS Affiliate Network is really a special thing,” shared SCRS Executive Director Aaron Schulenburg. “It’s a sense of community, it’s a give and take, but most importantly I think it is a place for growth and development. We are grateful that we’ve been able to include so many associations, and in cases like this, to be able to include generational developments that earmark different phases of an association.

“You’ve got entities that were once tenured but losing momentum finding new leadership and rebuilding with this sense of youthful enthusiasm that can be exactly what is necessary to get people excited,” Schulenburg said. “We are looking forward to supporting OKABA and their members as they work to achieve their goals.”

The OKABA kickoff event will take place from 9 a.m. to 3 p.m. Feb. 11, 2023, at Meridian

Technology Center-South Campus in Guthrie, OK.

The event is sponsored by AkzoNobel and features industryrenowned speakers Mike Anderson of Collision Advice speaking on “Grow your Team, Grow Your Business and Change the way you Compete,” and Tony Adams of AkzoNobel on “The Roadmap to Becoming the Employer of Choice.”

“I’m so excited to see OKABA get started again and rejoin SCRS as an affiliate,” added Adams, who also serves as an SCRS national director. “I’m looking forward to joining them in support of their first education day in February.”

Those wishing to attend may register at no cost prior to Feb. 1 by visiting https://brushfire.com/ oklahomaautobodyassociation/ okabakickoffevent2023/545537. After Feb. 1, registration is $35. OKABA membership is not required to attend the event.

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

since 2017, was selected in a unanimous decision by the NABC Board of Directors and Executive Committee for the role after an extensive search process.

“I am honored to continue serving the National Auto Body Council and its members in a new role as the executive director,” said Robinson. “I admire the members and the work they do in giving back to their communities, and look forward to continuing

“We’re proud to welcome Debby, with her background and experience, as our next leader for the National Auto Body Council, said Scott Sampley, chairman of the NABC Board of Directors. “She has provided unwavering support, valuable counsel and impactful results to the NABC over the past five years. We are excited about the future for our organization and our members.”

Source: NABC

16 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Classic Collision announced new acquisitions in Las Vegas and suburban Houston, bringing its total number of locations to 209 in 15 states.

Las Vegas Collision Center is now the third Classic Collision location in Las Vegas, while Dennis Collision Center in Conroe, TX, expands the company’s footprint in the Lone Star State.

Las Vegas Collision Center opened in 2000.

“Our system of operation is streamlined to make it as convenient as possible for our customers and know that Classic Collision will operate in that exact manner,” said Anna Daniellyan, former owner of Las Vegas Collision.

Dennis Collision Center opened in 2002 approximately 40 miles north of Houston.

“We have always provided turnkey jobs—from start to finish, knowing

Provo, UT, Woman Receives Refurbished Vehicle Through NABC

Recycled Rides Program

Just before Christmas, a deserving Provo, UT, mother experienced a life-changing event the presentation of a vehicle to provide her independence and the ability to work and take care of her son thanks to Cascade Collision Repair , GEICO and the National Auto Body Council Recycled Rides® program.

The presentation was held at Cascade Collision Repair at 1155 S. State St. in Provo, UT.

Natalie Amalathithada received a 2016 Volkswagen Jetta, donated by GEICO and refurbished by Cascade Collision Repair and other vendors who helped bring the vehicle back to a like-new condition.

Amalathithada was selected by the Family Support Center at Lifestart Village. She is a member of the Provo community who has had a difficult life. She was homeless as a child and has struggled with substance abuse most of her life. After getting clean in 2012, she and

her daughter were struck by a vehicle, leaving Amalathithada in a coma. Her daughter tragically did not survive her injuries.

at Lifestart Village who helped me get here, and to Cascade Collison, GEICO and NABC for making this a reality.” Additional partners included Ken Garff Volkswagen, LKQ, Cascade Glass, Industrial Finishes and 1.800 Charity Cars.

Amalathithada is working hard every day to stay sober and provide for her son. Having a reliable vehicle helps alleviate some of her day-to-day burden.

“I can’t believe this, this is such a blessing for me and my son,” said Amalathithada. “I am so grateful to my support group

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 3,000 vehicles valued at some $42 million.

Source: NABC

18 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Nonprofit Continues Mission To Connect Aspiring Collision Repair Students To Scholarships

Over the years, the University of the Aftermarket Foundation (UAF) has awarded millions of dollars in scholarships to high school and college students looking for a career in the automotive aftermarket and commercial vehicle industry, by making it easy for them to be considered for scholarships from more than 40 organizations by filling out just one application.

In 2022 alone, UAF awarded 461 scholarships totaling $731,350. This year, that single application is due March 31, and can be completed on UAF’s website, automotivescholarships. com/apply-online.

Full-time students at an accredited U.S. college or university, or an ASE/ NATEF-certified post-secondary automotive, heavy duty or collision repair school, as well as graduating high school seniors planning to attend any of the above full time are eligible for the scholarships. There is no GPA requirement.

Priority in awarding scholarships is given to those pursuing a career in the automotive aftermarket, and sons and daughters of aftermarket industry families.

Students who receive a UAF scholarship are eligible for a second grant upon graduation from their program and after completing six months of employment as a technician in the automotive or heavy-duty industries.

said.

Later, in 2001, the Global Automotive Aftermarket Symposium (GAAS) was formed, Pavey said, also to raise money for and distribute scholarships.

In 2016, GAAS became a part of UAF. Between the two organizations’ histories, both separately and since they combined, more than 5,000 scholarships have been awarded.

“We have scholarships today for every different part of the industry,” Pavey said. “We promote scholarships to anyone who has any kind of aftermarket interest, and work with different suppliers and distributors to make sure we are addressing the entire marketplace.”

about our industry when you see the quality of people trying to get involved.”

Pavey said he thinks little by little, the automotive aftermarket industry is being seen as a viable career option, as vehicle technology becomes more sophisticated, but he thinks it could still be better promoted.

“The need for techs has never been bigger; the shortfall is the largest it’s ever been,” Pavey said. “The average age of [existing] techs is getting higher. Certainly the numbers are still such that we need a lot more technicians.”

Scholarship recipients for the 202324 school year will be announced in June.

Larry Pavey, vice chairman of the UAF Board of Trustees and CEO of Automotive Parts Services Group, said UAF, originally known as the Automotive Warehouse Distributors Association (AWDA) University Foundation, was established in 1986.

“It brought together distributors and manufacturers who wanted to promote education and participation in the automotive aftermarket, with the feeling we were beginning to lose people coming into industry,” Pavey

Pavey said the UAF gets a few thousand applicants every year.

Teams of 10 volunteers review 100 or 150 applications each. Pavey said he has been managing one of the teams for the last 12 or 15 years, and has seen how the applications have changed over time.

More women are applying for the scholarships, and the educational credentials of the applicants has only increased.

“It’s a tremendously better group of students,” Pavey said. “Once you’ve spent a long weekend reviewing 150 scholarships, you feel really good

Pavey said the advantage to filling out a single UAF scholarship application means students might win a scholarship they didn’t even realize they qualified for.

“The cool thing about our process is there’s over 40 organizations offering scholarships, and they’re all different,” he said. “A student can be focused on collision, but could also get [a scholarship from] Women in Auto Care. If they’re from Kentucky, they could get one from KIAWA. We’re kind of a one-stop shop for the automotive aftermarket.”

UAF funds the scholarships through a combination of donations and fundraising events. For more information on how to donate, visit uofa-foundation.org.

autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 19
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The Univeristy of the Aftermarket Foundation’s Executive Committee.

Q: What factored into your pursuing auto collision and management technology at TSTC?

A: I grew up in a mechanic shop with my dad. The first job I landed was at a body shop that a friend ran. I was probably 14 years old. I enjoyed it. I did that throughout high school. It is good to have that early exposure, and it makes a big difference in knowing what tools go with what jobs.

TSTC was close to where I lived, and I heard it has a really good program. I toured the campus first and then applied. One of my instructors was Clint Campbell, who is still at TSTC.

Q: After working in the auto body and collision industry, what made you decide to pursue teaching?

A: It is just the desire to teach people the right way to do things. There are a lot of people in the industry that do not accept the correct way to do things.

I have taken to teaching pretty easily. It gives me a good feeling to see the

students learn from the information I give them. It is rewarding. On my first day of teaching, it was pretty exciting because I got to teach an aluminum welding class.

Q: What skills do students need to be successful in the program?

A: They need to know the basics of the how and why of refinishing and painting. It helps. But sometimes if they were taught something the wrong way, there is a barrier. We are teaching the correct way to do it. It helps to have familiarity with the tools and being able to apply them the correct way.

Q: Are you optimistic about students getting jobs, either while in the program or upon graduation?

A: I feel like they have a good opportunity. They are going to have to start out at the bottom and grow as a technician. You have to start at the bottom and work your way up. It is like a staircase. You also need patience.

Q:

What is your career advice to students?

Pump Prices Creep Higher Amid January Doldrums

The short days and messy weather of January are combining to keep people off the roads, lowering gasoline demand. But the price of oil rose as fears of a global economic recession eased.

The national average for a gallon of gas rose by five cents over the previous week to $3.32 as of Jan. 17.

“Gasoline demand is usually lackluster this time of year,” said Andrew Gross, AAA spokesperson, “and it likely won’t start to tick up until spring break draws near. So the primary factor in this latest increase is the higher cost of oil, which accounts for more than half of what you pay at the pump.”

According to data from the Energy Information Administration, gas demand barely budged over the same week, rising slightly from 7.51 million b/d to 7.56 b/d. Meanwhile,

total domestic gasoline stocks rose from 222.7 million bbl to 226.8 million bbl. Flat gasoline demand and increased supply are contributing to limited pump price increases.

The Jan. 17 national average of $3.32 is 17 cents more than a month ago and a penny more than a year ago.

The nation’s top 10 largest weekly increases: Colorado (+32 cents), Georgia (+30 cents), Indiana (+17 cents), Nebraska (+13 cents), Wyoming (+12 cents), Illinois (+10 cents), New Mexico (+10 cents), Texas (+9 cents), Washington, D.C. (+7 cents) and Utah (+7 cents).

The nation’s top 10 most expensive markets: Hawaii ($4.98), California ($4.42), Washington ($4.00), Nevada ($3.94), Alaska ($3.71), Oregon ($3.68), Pennsylvania ($3.64), Washington, D.C. ($3.53), Illinois ($3.52) and New York ($3.44).

A:If you put in the work, you get the results. No work equals no results.

Automotive body and related repairers in Texas make an average annual median salary of more than $46,000, according to the U.S. Department of Labor’s O*Net OnLine website. The state is projected to need 13,030 workers in 2030, according to the website.

TSTC’s auto collision and management technology program offers three associate degrees specializing in refinishing, repair and repair specialization co-op, respectively; four certificates of completion in refinishing and repair; and an occupational skills achievement award in basic auto collision.

For more information on TSTC, go to tstc.edu.

Source: TSTC

ASE Announces New Officers

The National Institute for Automotive Service Excellence (ASE) announced its officers for its 2023 Board of Directors. The officers were elected during the annual ASE board meeting held in Arizona.

The officers are Chair Homer Hogg, vice president of truck service, TravelCenters of America; Vice Chair Tom Trisdale, vice president of quality, Toyota; Treasurer Jason Rainey, vice president of NAPA AutoCare; Secretary John Wolf, president of Snap-on Business Solutions; and Past Chair Brad Pellman, president of Pellman’s Automotive.

“Volunteer leadership is instrumental in helping ASE set an agenda and fulfill the established mission each year,” said Tim Zilke, ASE president and CEO.

ASE also elected three new governors to its board of governors: Stacy Balzar, Ford; Elisha Huddleston, GM; and Gary Uyematsu, BMW.

Source: ASE

20 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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AF Collision Becomes 1st Utah Shop To Join 1Collision

1Collision is pleased to announce the addition of AF Collision in American Fork, UT, which recently celebrated its 30th anniversary. The business is owned by Travis Olson

“We are delighted to be adding our first Utah shop to support our Utah customer base,” said John Hollingsworth , 1Collision director of new location development. “Travis and his team at AF Collision already operate on a high level but were looking for something to help them reach the next plateau of growth. We are excited to start supporting their team with their goals.”

“I am looking forward to having a team and a network like 1Collision to help me refine my processes and ‘sharpen my blade,’” said Olson. “Sometimes in this industry, you feel like you can never get a straight answer from anyone and I feel that with 1Collision, I will have a plethora of resources to pull from.”

Established by Ken Murdoch in 1992, AF Collision was purchased by Olson in December 2020. The 5,000-square foot facility sits on

approximately one acre of land.

“For a long time, people told me that I should have my own shop but I always said that I didn’t want a shop,” said Olson. “As time passed and I learned more about the business, I started to think I wanted to try my hand at it. I felt I could do pretty well and so far, it has paid off. “

corporate businesses running body shops,” said Olson. “I want customers to feel like they can walk in and talk to the owner or manager anytime.”

Olson has more than 28 years of experience in the collision industry.

“Being part of the collision business for a long time, I love the way it works,” he said. “I like looking at the numbers and how they translate into profit. I also like dealing with people and being around cars.”

Prior to purchasing AF Collision, he worked for a paint distributor in Utah and was familiar with 1Collision.

and see how other successful shops are doing things,” he said.

He and his 12 employees are focused on getting vehicles repaired efficiently and properly.

“I want to ensure my employees and customers are happy,” said Olson.

The shop is currently part of one DRP. “Even if I’m on a DRP, I still want customers to feel like we’re catering to their needs,” said Olson.

Over the last few years, Olson has focused on growing his shop, including updating the equipment and building a staff that can handle the work he believes the facility is capable of doing.

Olson explained that the initials “AF” in the company’s name stand for American Fork, where the business is located. With a primary focus on collision repair work, Olson prides himself on being a hometown body shop.

“I feel like our industry has lost so much with big MSOs and

Ford F-Series Is Best-Selling Truck For 46th Consecutive Year

Ford F-Series will surpass 640,000 trucks in 2022, making it America’s bestselling truck for 46 consecutive years and America’s bestselling vehicle for 41 years after selling an average of at least one F-Series Truck every 49 seconds in 2022.

From F-150 to F-550 chassis cab, entry level XL to well-equipped Limited, EcoBoost to the all-electric F-150 Lightning, lined bumper to bumper, all of the Ford F-Series trucks sold last year would stretch approximately 2,400 miles, or further than the driving distance from Los Angeles to Detroit.

“The Ford truck team’s ability to anticipate customer needs, continuously innovate and provide best-in-class levels of capability and performance has helped make F-Series the sales leader time and time again,” said Kumar Galhotra , president, Ford Blue. “We’re honored and humbled that our customers have helped

us achieve this milestone for more than four decades.”

F-Series celebrates its 75th anniversary in 2023 and continues to set the tone for innovation, leading the industry with the allelectric F-150 Lightning, which began sales in 2022 and immediately became the best-selling EV pickup on the market. Furthermore, the allnew F-Series Super Duty, with ground-breaking capability and features, has racked up an incredible 150,000 orders, further cementing F-Series as the truck of choice for heavy-duty truck buyers. First deliveries start early this year.

With Maverick, Ranger, F-150, Super Duty, all the way up to F-750, Ford offers America’s broadest lineup of trucks to best deliver on the needs of customers and is the only one that is Built Ford Tough.

S ource: Ford

During the November SEMA Show in Las Vegas, NV, Olson talked to the 1Collision team and felt the network would be a good fit to assist his business.

Olson said he looks forward to having 1Collision help refine AF Collision’s processes.

“I’m excited to move forward and have people I can reach out to at 1Collision and ask questions

His goal is to continue to expand his current location and open at least two or three more locations in the future.

“Joining 1Collision is a good fit to help us grow and become more efficient,” said Olson. “It’s not that I think that I couldn’t do it alone, but it definitely helps when you have a team of people to help steer the ship rather than just one individual.”

S ource: 1Collision

22 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Mike Maroone Honda

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Mile High Honda Denver

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303-369-7800

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Honda of Harvey Harvey

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Walker Honda Alexandria

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Acura of Baton Rouge

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Rusty Wallis Honda

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Northside Honda

San Antonio

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Walker Acura Metairie

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Autonation Acura

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David McDavid Acura Austin

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Jody Wilkinson Acura

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Mike Hale Acura Murray

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autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 25
UTAH
LOUISIANA TEXAS TEXAS
ACURA HONDA

2023 Women in Auto Care Leadership Conference

Join the Women in Auto Care community Feb. 27 - March 1 in Palm Springs, CA, for an another great conference focused on sharpening personal and professional development skills and providing the latest industry updates and trends.

The event includes dynamic speakers, engaging sessions and the chance to connect with colleagues and peers. This event will include one of the association’s largest fundraisers of the year to provide tools and training to women in the industry—while having fun doing it.

We’re on track for record attendance—don’t miss it!

To register, and for more information, visit www. autocare.org/networking-anddevelopment/communities/ women-in-auto-care/events/ women-in-auto-care-leadershipconference

Source: Women in Auto Care

Autonomy’s EV Subscription Service Makes Texas Debut

Autonomy, the nation’s largest electric vehicle subscription company, on Dec. 14 announced its service is now available in Austin, TX.

The debut in Texas comes after a successful launch in California earlier this year and a recent expansion into Florida and Washington.

Texas, ranked third in EV registrations behind California and Florida, is showing great promise for electrification, with nearly 30,000 new EVs on the road between 2020 and 2021. This growth and natural demand makes Texas a compelling state for Autonomy to expand operations into.

About 46% of Texans under age 45 say they are considering purchasing an electric car, per a statewide poll conducted earlier this year by Texas 2036, a policy planning group.

Autonomy offers the cheapest, fastest and easiest way to get a Tesla and does not require the long-term debt or commitment that comes with buying or leasing. Additionally, Autonomy vehicles

are available for delivery or pickup within weeks, compared with the monthslong wait for a loan or lease. Today, Autonomy offers the Tesla Model 3 and Tesla Model Y and will soon add the full Tesla lineup, among other makes and models.

“The EV adoption rate in Texas signals to us that there’s even more demand for EVs and more of a need for alternative ways to access one,” said  Scott Painter, founder and CEO of Autonomy. “Today, Texas has more than 156,000 EVs on the road, with 22,122 in Travis County alone—the highest-ranking EV county in Texas. These numbers are encouraging, and we’re excited for Autonomy service to help boost EV adoption in the second-mostpopulous state in the country and increase EV adoption statewide.”

Austin has more than 1,300 public chargers across the region, with more than 500 new chargers added in the last 90 days. Unique to Austin is the Austin Energy Plug-In EVerywhere network subscription plan, which offers unlimited charging for $4.17 per month at any of Austin Energy’s 1,000+ level

2 charging ports throughout its service area.

Autonomy’s monthly payment covers the traditional costs of ownership, including routine maintenance and roadside assistance, and standard wear and tear on tires, which are usually additional expenses with a traditional lease or loan. Qualified subscribers will now receive Autonomy’s subscription with its fully integrated month-to-month insurance offering.

Autonomy will leverage its recently announced national partnership with AutoNation, Inc., the largest retailer in the U.S., for vehicle preparation and delivery services in connection with customer activation, as well as maintenance, repair and reconditioning services for Autonomy’s growing subscription fleet of electric vehicles.

As well as expanding geographically, Autonomy is also expanding its fleet of vehicles. In August, Autonomy ordered 23,000 electric vehicles from 17 different global automakers, with the order totaling more than $1.2 billion.

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On Nov. 17, Burl’s Collision Center in Henderson, TX, hosted two events as part of its approach to community outreach, something President Burl Richards has always viewed as a priority.

For the first time, the shop hosted approximately 25 Henderson High School students. During a tour, the students were introduced to the complexities of today’s modern car repairs, technology and career opportunities within the field. They were walked through each step of the process start to finish and shown examples of vehicles in the repair process.

The students were then taken to the Henderson Civic Center, where lunch was served.

The students got a glimpse into the industry from Richards’ perspective, a second-generation painter who has two sons working in the collision repair industry.

“We are in the process of developing a one-year program where these young people can receive valuable information in a hands-on manner,” Richards said. “We strip vehicles and

teach them how to do simple tasks and then we go from there. Since we are in a fairly rural area, these kids are studying ag[ricultural] classes, for example. But once they see all of the technology that’s in these newer vehicles, many of them want to look more closely at working in the collision repair industry.”

the necessary training, you can work anywhere in the country and have a good career.”

The day’s second event at Burl’s was its annual first responders appreciation event that took place at the Henderson Civic Center, where they cooked some burgers and more than $4,000 worth of prizes donated by local businesses were presented to lucky first responder winners in a drawing.

most concern during a fire or other emergency situation.

Burl’s Collision Center has been hosting first responder events for seven years, though they took a few years off during the pandemic before starting it up again this year, Richards said.

“We have always stressed supporting and giving back to local law enforcement, ambulance workers and county workers here in town,” Richards said. “These appreciation events are a great way of showing how we care.”

Richards said his shop is certified by several EV car manufacturers, including Tesla, Ford and VW, and that’s why firefighters, ambulance drivers, local police and other first responders like the annual event and attend to learn as much as they can.

Richards received a great response from many of the students who attended.

“We got six or seven applications after the tour and learning session, so that is exciting,” he said. “I tell them that with a shortage of qualified people in this industry right now, once you get

Burl’s Collision Center also had two Teslas on display, to educate the first responders on EV safety and how to approach and safely access them at an accident scene. Once a Tesla was disassembled to expose the high voltage line locations and the battery was removed, the first responders in attendance could see the item of

“They don’t get a lot of exposure to these EVs, so we always make sure to have several of them on hand,” Richards said. “We provide a ton of information, as well as access to more of it online, so that they can do a safe job as first responders. We’d also like to thank all of our wonderful local sponsors who donated some great gifts for the first responders. It truly is a combined event.”

autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 27
Burl’s Collision Center
High
Responders
Hosts Events For
School Students, First
Twenty-five students from Henderson High School visited Burl’s Collision Center for a shop tour in November.
“We are in the process of developing a one-year program where these young people can receive valuable information in a hands on manner.”
6407 Arena Blvd. l Laredo, TX 78041 956-718-4200 Hours Mon-Fri 7:30am - 6pm Sat 8:30am - 5pm 956-718-4259 fax GENUINE TOYOTACOLLISION PARTS • SOUTH TEXAS FASTEST GROWING TOYOTA DEALERSHIP PARTS DEPT. • BEST PRICING AROUNDON GENUINE TOYOTA PARTS • UTILIZING CCC, COLLISIONLINK, OPS TRAX, REPAIRLINKAND PARTSTRADERFOR YOUR CONVENIENCE www.parts.toyotaoflaredo.com
BURL RICHARDS OWNER OF BURL’S COLLISION CENTER

Event For Large Collision Repair Businesses Focuses on Labor Shortage, State of Consolidation

During consultant Vince Romans’ annual presentation on the state of consolidation within the collision repair industry at the MSO Symposium in November, he noted there were currently 19 private equity firms or other investor groups backing 14 multi-shop operations.

Those MSOs have combined annual revenues of about $13 billion. That represents about 34% of the industry’s total revenues of $38.6 billion in 2021, according to Romans’ data.

“That’s not going to stop,” Romans said. “I get calls from private equity firms every week, looking to know about this industry, looking to know where they should invest. And that will continue.”

When the additional MSOs with $10 million or more in annual revenues are added in, multi-shop operators accounted for about 43.6% market share, he said, meaning more than half—about 56%—of total industry revenues are still captured “by individual or smaller operators.”

But that is going to flip in the coming years, Romans predicted. As he does most years at the annual symposium, he shared two five-year forecasts: A “more likely” scenario in which MSOs control 55% of the total collision repair market revenue in 2026, and what he call his “more aggressive” forecast, “based on dynamics that we don’t have a lot of control over,” showing MSOs capturing more than two-thirds (67.7%) of the market.

In either case, he doesn’t foresee any short-term end of business for smaller operators.

“Just like in other industries, it will take a couple more decades to get to scale where the smaller shops no longer exist,” Romans said.

By Romans’ count, there are more than 100 MSOs with annual sales of $20 million or more, and they are certainly most interested in the more than 400 with revenues above $10 million.

“That’s where consolidation will happen, just like in the hardware industry, just the like in the drug industry, which took decades to consolidate,” Romans said. “The collision repair industry will also take decades, but it will happen. So for those who decide to stay in it, you have to decide how you can be successful while deciding whether there’s an exit plan for yourself in the future.”

What’s Driving the Labor Shortage

Another speaker at the MSO Symposium, Andy Challenger, pointed to three key factors creating the current labor shortage in the U.S. Challenger, senior vice president of a Chicago-based firm that companies hire to help their laid-off employees find new positions, said the participation rate—the number of Americans age 16 or older either working or looking for work as a percentage of the population—has been declining over the past 20 years. At 62.3% currently, that’s down from 63.4% just prior to the pandemic, which equates to “about 3 [million] to 4 million people missing from the workforce.”

Because his firm, Challenger, Gray & Christmas, works to find new positions for laid-off workers, Challenger said he has regular data on what people most want from their employer. He said the ranking of employees’ priorities shifts. Last fall, for example, his company’s survey found “flexibility” remains the top priority, but “empathetic leadership” has risen to the No. 2 spot, higher than in the past.

Gerber Collision, said the “E” section of that company’s first ESG report, published earlier this year, outlines how Boyd is mitigating its impact on the environment. Its “Repair First” program, for example, was created “to repair more plastic parts to keep them from entering landfills,” and the company is committed to using waterborne paints in both its existing and newly-acquired shops.

The “social” aspect of ESG encompasses such thing as wages, employee and community engagement, and supply chain relationships. Boyd’s report, for example, highlights its talent development program started in 2018, which has provided a 12- to 18-month training program attributed with developing more than 100 new technicians, with a goal of doubling that number next year.

Challenger said three trends contribute to that. First, more Baby Boomers are retiring, and early retirements accelerated in 2020.

Second, while immigration numbers are back to pre-pandemic numbers, “what we haven’t made up for yet is the decrease we saw in 2020 and 2021, when we saw a real dip during the depths of the pandemic.” There are currently 1.7 million fewer new immigrants in the country than there would have been if the numbers had stayed on the trendline in 2019, he said.

Third, challenges and costs associated with care for children and the elderly have led more households to decide to get by with only one parent working.

The tight labor market could change if there’s a recession, and Challenger said his company’s surveys of employers last fall indicated about one-third say they were currently preparing for a recession.

“It’s not an extremely alarming number, but it’s more than nothing,” he said. “I think almost certainly it will be a cooler job market a year from now.”

“That wasn’t even on the list when we started taking this survey two years ago,” Challenger said. “But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”

Discussion about “wage inflation— and increases in the cost of living— have helped bump “higher wage” up from sixth on the list to the No. 3 spot, he said. And “upward career trajectory” remained the fourth highest priority.

“Employees today are saying they really want a path forward in the organization,” Challenger said. “Employers that are able to provide that are going to be rewarded in this strong labor market.”

‘ESG’ Concept Entering the Collision Repair Market

Although most collision repair organizations likely are not familiar with the term “ESG practices,” it’s something they may be increasingly asked about by insurance companies—or from larger MSOs looking at valuing and acquiring new locations.

ESG stands for environmental, social and governance practices. During a panel discussion on the topic at the MSO Symposium, Diane Kappas of PPG said ESG is a term created by the investment community to talk about a corporation’s non-financial impacts, risks and opportunities.

Susie Frausto of The Boyd Group, the Canadian parent company of

Governance, Frausto said, focuses on such things as how a company’s leadership is aligned in providing transparency in its ESG practices.

Collision said one reason more collision repairers may want to focus on ESG is insurance companies’ interest in partnering with companies that do. Three years ago, he said, insurers would ask questions about Caliber’s focus on sustainability, for example, but Hightower said it seemed largely about checking a box.

“The last couple of years, they started to get more intense,” he said. “They’re asking many more questions. ‘Do you really have a program really thinking about this?’ That’s because if you have a well-thought-out sustainability program, you’re thinking about risk. If you’re thinking about risk, you’re a good risk for the insurers. So looking ahead, if you want to have access to insurance markets, you’re really going to have to think about sustainability. It really does have an impact on your bottom line.”

28 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
of Caliber Eddie Hightower of Caliber Collision said insurance companies are increasingly interested in a collision repair business’ focus on sustainability.
“But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”
ANDY CHALLENGER SENIOR VICE PRESIDENT, CHALLENGER, GRAY & CHRISTMAS
Outplacing consultant Andy Challenger said the labor shortage is based on there being “about 3 [million] to 4 million people missing from the workforce,” compared to pre-pandemic.
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Tesla Files For $716M Expansion At Giga Texas

Tesla’s Gigafactory Texas facility is set to expand by 1.4 million square feet, as the automaker has filed for more than $716 million in new projects at the site.

Tesla filed Jan. 9 for four new projects, according to filings with the Texas Department of Licensing and Regulation. The projects are filed separately because they will expand four different facilities. Tesla registered the projects to Cell 1, Drive Unit, Cathode and Cell Test Lab.

According to the Austin Business Review, which initially spotted the filings, the projects will provide Tesla with 1.4 million additional square feet on-site at Gigafactory Texas, and construction could start as soon as the end of the month.

The total cost for the four new facilities is $716.7 million, with the bulk of the expenditure coming from the construction of the Cell 1 facility, which is set to cost $368 million. The Cathode building is $216 million, while the Drive Unit and Cell Test Lab buildings will

cost $85 million and $3.7 million respectively.

Tesla filed the projects as “new construction.”

Tesla has been planning to build a cell facility at Gigafactory Texas for some time, and filed in

planning to implement these new batteries into various projects, including the Model Y from Gigafactory Texas, which started deliveries to customers last year.

Tesla delayed several projects over the past few years because

asTech, a Repairify company, on Jan. 11 announced the full deployment of its patented Rules Engine, which presents users with the most accurate and cost-effective diagnostic scan type for the vehicle throughout the blue printing process and repair workflow.

February 2022 to build a cathode plant at Gigafactory Texas, filings with Travis County showed.

The cell facility will supplement the automaker’s attempts to expand EV manufacturing in the U.S., but will also help Tesla become less dependent on suppliers for its products. Currently, Tesla has numerous battery cell supply deals, most notably with Panasonic in the U.S.

However, the growth of the EV market has placed a shortage of battery cells and battery materials. Tesla, which introduced its new 4680 cell several years ago, is

of battery constraints. However, the construction of cathode and cell manufacturing plants at Giga Texas could relieve the company of these shortages as EV sales expand.

Tesla is also planning to build the Cybertruck in Texas, but the packs are currently being manufactured in Fremont, CA, due to the lack of a cell production plant in Austin.

Evidently, Tesla will also be building drive units for its vehicles in Texas. It has built drive units for the Model 3 at the Tesla Gigafactory in Nevada for several years.

The new feature gives asTech customers access to the most accurate way to identify the diagnostic and calibration scan tools that read all of a car’s OEM modules correctly—versus those that don’t— down to the year, make, model and trim. With the Rules Engine enabled, asTech users, insurance carriers and their customers can be confident with the accuracy and cost of the recommended scan type.

To build the Rules Engine, Repairify’s research and development team scanned tens of thousands of vehicles from different years, makes, models and trim levels with the leading aftermarket tools available, then compared the results to the relevant OEM tool. Researchers used like-for-like tools on the same cars at the same time to ensure accuracy.

30 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Marketing Expert Sees a Future Without DRPs

Direct Repair Programs (DRPs) were designed in 1963 for an era where all cars were pretty much built and repaired the same way. Lower rates meant the insurance companies would be satisfied, and everyone thought it was a good idea for a while.

Industry veterans say things changed when insurance companies began cutting costs by sacrificing quality. Many body shops were willing to jump through a few hoops to get the volume. When it became more competitive, shops were willing to use more aftermarket, used and reconditioned parts, and became more willing to negotiate on every repair.

Thomas Zoebelein, owner of Stratosphere Studio, recently discussed the future of DRPs in the collision repair industry. He said some compelling things that should interest any body shop owner in the country.

Initially, DRPs worked well because shops that wanted them had to step up their games.

“The DRP forced, or allowed, shops and insurers to focus not

on customer acquisition but production,” Zoebelein said. “Every shop tool, business method, marketing tactic and class was centered on production and how to make body shops more efficient.”

That road reached a dead end when vehicle construction moved from mild steel to ultra-high-strength steel a decade ago.

body shops out there scared to work without DRPs.

“The fear of dumping your DRPs is that if you jump out of a plane every day without your DRP golden parachute, you will crash and die,” Zoebelein said. “The work will dry up, and you will be out of business. The pandemic proved everyone wrong because the cars stopped coming for a while, but the non-DRP shops stayed open.”

Stratosphere Studio has developed a marketing plan, Capture the Keys’ “Dump the DRP” program, and forward-thinking shops are embracing it.

Zoebelein is not promising he can help collision repairers replace the volume of a DRP contract.

“That’s when the repair process changed, and OEM procedures became more and more necessary,” he said. “Now the big dilemma for shops is how to get off the DRPs and get paid more.”

The problem is there are a lot of

“So how do you dump a DRP and replace it with a system to get your shop in the hands of customers who need collision repair and keep cars coming into the shop?” Zoebelein said. “What’s the most efficient way to reach a person who you know has a collision repair need, where they are buying, when they are buying

but just before they make a final decision?

“Geofencing allows you to get in front of that customer, when they are shopping for collision repair, even if it’s at just one location,” he said. “We don’t care how they got there—DRP referral, family referral, convenient location, marketing, etc. We just need them to be there, and then geofencing will find them, collect their data and offer them a second opinion.

“I believe that the future of collision repair is fewer cars, more money, more profit,” Zoebelein said. “It’s a fact that vehicles will be getting into fewer accidents. The same ADAS systems that shops are currently repairing will be in more and more cars, so shops need to start rethinking tomorrow’s volume.

“Autobrake will reduce crashes. And every new vehicle sold now has it, and soon it’s going to be federally mandated,” he said. “The times have changed, and it’s time for shops to reconsider where the industry is right now. On top of everything, these issues with labor rates, supply chain issues and technician shortages is the proverbial straw that is breaking the camel’s back.”

32 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
Listen now to the first episodes on Brought to you by with Cole Strandberg Also on autobodynews.com & other podcast platforms Weekly episodes featuring industry thought leaders, shop owners and collision pros. We talk trends, culture, growth and scalability, giving actionable insights that will elevate your business. OUR PODCAST IS LIVE!
Tom Zoebelein thinks DRPs will be extinct faster than many people believe

Colorado Sees Spike in Gas Prices After Suncor Refinery Closes

Gas prices in Colorado spiked over the last week of December following the closure of the Suncor refinery in Commerce City. The average price for a gallon of regular gasoline in the state was $2.93 as of Jan. 3, up from $2.81 a week earlier, according to AAA.  The refinery closed in December after experiencing “equipment damage in the days leading up to Dec. 24.”

“The inspection and repair of the damaged equipment is ongoing,” Suncor said in a news release. “Based on our current assessment we anticipate a progressive restart of the facility with a return to full operations expected to be completed by late Q1 2023.”

The shutdown led Gov. Jared Polis to activate an emergency plan “to reduce any potential fuel supply chain risk.”

“Such regulatory relief includes but is not limited to trucking hours, truck weight limits, and streamlined pipeline transporting regulations,” the governor’s office said Dec.

31. According to GasBuddy, the national gas price average is up 12.3 cents over the same week.

“For the first time in two months, the nation’s average price of gasoline rose sharply last week, as extremely cold weather led to many refinery issues, shutting down over a million barrels of refining capacity, pushing wholesale prices up,” said  Patrick De Haan, an analyst with GasBuddy.

“While the jump at the pump will likely be temporary as most refiners get back online after cold-weather related issues, some regions like the Rockies may see more price increases than others as coldweather shutdowns hit the region fairly hard, with one refinery likely remaining down through the first quarter of 2023,” he added.

The Commerce City refinery processes 98,000 barrels a day, Suncor said.

“We purchase crude from the Denver-Julesburg Basin, process it in Commerce City, and sell nearly 95% of our products—including gasoline, diesel, jet fuel and paving asphalt—within Colorado,” the company said on its website.

Holidays Bring Gift of Falling Gas

Holiday shoppers may have a little more jingle in their pockets this year thanks to plummeting gas prices.

The national average pump price slid 12 cents over the previous week to $3.14 as of Dec. 19. There are now about 20 states with averages below $3 per gallon.

“The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring,” said Andrew Gross, AAA spokesperson. “Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”

According to data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.36 to 8.26 million b/d the same week. This coincides with the arrival of the winter driving season, when fewer people hit the roads due

to shorter days and more lousy weather.

Meanwhile, total domestic gasoline stocks rose significantly by 4.5 million bbl to 223.6 million bbl. Increasing supply and lower gasoline demand are pushing pump prices lower.

The Dec. 19 national average of $3.14 is 54 cents less than a month ago and 16 cents less than a year ago.

The nation’s top 10 largest weekly decreases: Nevada (-20 cents), Indiana (-19 cents), Michigan (-17 cents), Arizona (-17 cents), Ohio (-16 cents), Washington (-16 cents), Delaware (-16 cents), Illinois (-15 cents), California (-15 cents) and Oregon (-15 cents).

The nation’s top 10 least expensive markets: Texas ($2.62), Oklahoma ($2.64), Arkansas ($2.69), Missouri ($2.71), Mississippi ($2.74), Tennessee ($2.75), Wisconsin ($2.75), Louisiana ($2.76), Georgia ($2.77) and Kansas ($2.78).

Source: AAA

autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 33
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Auto Painter Invents Linear Blocking Tools While Looking For a Better Paint Job

Autobody News runs into great stories like this one all the time, in which collision repairers invent things to do a better job.

Colten Davidson, a painter and now the owner of his own restoration shop in Birnamwood, WI, created Linear Blocking Tools, a sanding block system that can create a perfectly flat surface easily and consistently. His system is also designed to alleviate the wear and tear on the human body caused by hours of sanding.

Q: How did you get the idea for Linear Blocking Tools?

A: One day a few years ago, I was trying to get the clear to be literally like a mirror where there’s no ripple, no chop—nothing in it. And we were using a lot of foam blocks and different other types of blocks. Then I came up with a rough draft and made them.

I used them for a while and then I had a couple other people who said they wanted them. Then a distributor in Australia saw these on Facebook, and asked me how much would it cost for 10,000. I couldn’t even make that many, I thought. So, I got the ball rolling a little bit more and have applied for patents, and now we have a manufacturer in Minneapolis that makes them for us.

In September, we moved into a new building that contains two shops—one shop is like the clean shop; we’ve got the hoist and the paint booth on that side. And then we’ve got a dirty side that’s basically for sanding and welding. We’ve got everything under one roof. I am running the shop and my wife is running the product side, and it is working well.

I have two people working with me in the shop and my wife Brittany has some part-time help.

Q: How did you get where you are today?

A: Right out of high school, I went to tech school for auto body, where I completed a oneyear program. And then from there I started working at a Ford dealership doing mostly collision and some light restoration stuff. I worked there for about five years and then I worked for a shop that did both restoration, collision and some dealer work. We did a little bit everything and it was a great learning experience.

Then I had a great opportunity to work for a top shop here in Wisconsin, where I could work on high-end restorations. And that’s where I really progressed into knowing what I know now by pushing the envelope. I was the body guy and the painter there and I did probably 90% of the body work and all the painting, and then early last year I started my own

Q:You have created a whole universe around your tools, with online courses and an upcoming series of in-person classes. Tell us about those.

A:Yes, on June 22-25, I am hosting a four-day hands-on restoration class with Ryan Evans and world-renowned paint correction specialist Jason Kilmer. It will take attendees through everything from stripping old finishes, metal work, filler work, all the paint and cut/buff. We will be “restoring” a few different front clips from Auto Metal Direct, taking you through all the fine details, like perfecting gaps and panel-to-panel along the way.

Day one will cover stripping old finishes, metal work, perfecting gaps, prepping metal work for panel-topanel blocking, proper metal prep using the DX metal prep system, applying epoxy to bare steel and types of DTM primers. Day two will cover prepping epoxy for filler work, proper understanding of use

and types of body fillers, panel-topanel blocking, blocking techniques, proper application and types of primers over filler work and priming over filler work. Day three will cover proper blocking techniques of primer, paint prep, masking, painting, laying stripes, spraying candies and

hand really well. More importantly, they are hard but flexible and very flat. They’re made of polycarbonate, which is very flexible and extremely durable. You can drop them or even throw them at the wall and they won’t break. There are a few companies out there that make acrylic blocks, and if you drop them, they’ll shatter like glass. Our blocks are warrantied for life, much stronger and more flexible.

custom tri coats. Finally, day four will cover sanding and polishing finishes, curing clear before buffing, sanding techniques, buffing techniques and processes, with Kilmer. These classes will be held at Linear World Headquarters in Birnamwood, WI.

Q:Why are your Linear Blocking Tools so popular with painters worldwide?

A:One of the major benefits of using them is that they fit your

Linear blocks have slits in them that distribute the pressure from your hand to the entire block evenly. They create something like a slinky effect. In addition, all our blocks don’t have sharp edges. They cost a little more because there’s a lot of machine time going into them, but you get what you pay for, like anything else.

We did over $1 million in sales in our first year, which was pretty good. We have a distributor in the U.S. and Australia, and are currently working with a few in Sweden, Germany and from other parts of Europe. We have been getting awesome feedback from painters all over the world, so we are excited about more international distribution.

For more information, visit linearblockingtools.com.

34 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
shop.
Colten Davidson invented Liner Blocking Tools to make his job easier every day, and now they’re a hit
“One of the major benefits of using them is that they fit your hand really well. More importantly, they are hard but flexible and very flat.”
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autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 35

U.S. EV Sales Grow by 65% in 2022 Despite

Sales of electric vehicles in the U.S. grew by 65% in 2022, despite a decline in total new vehicle sales for the first time since 2011, new data from Kelley Blue Book showed.

According to Kelley Blue Book, for the first time in just over a decade, Americans bought fewer new cars than the year before. However, EV sales grew year over year by a significant margin.

EV sales topped 800,000 units and will likely continue to rise for years to come. Cox Automotive suggested 2023 will be the first year EV sales will beat 1 million units.

Boosted by government incentives like President Joe Biden’s Inflation Reduction Act (IRA), which intends to push consumers toward EVs, 2023 could be the year of the electric car. Many manufacturers are planning to roll out exciting and competitive models this year.

Despite a slight decrease in

market share from 70% in Q1 to 58.3% in Q4, Tesla still dominates the U.S. EV market. Over the past few years, many companies have come with competitive and more affordable options, but car buyers are still tending to stick with Tesla based on EV tech, charging infrastructure and performance.

Tesla is off to a hot start in 2023. After cutting prices in the U.S. market by as much as $13,000, demand seems to have increased as the company’s inventory is dwindling.

The Model 3 and Model Y were the automaker’s best sellers.

More positive news: the average cost of an electric vehicle fell 5.5% in December to $61,448.

Tesla Giga Texas Steps Towards Cybertruck Production With More Equipment Deliveries

To say Tesla’s Gigafactory Texas is a busy site these days would be an understatement.

Per recent images and footage taken of the facility, Tesla’s Austin factory continues to be abuzz with activity, from construction to vehicle production to the installation of IDRA’s Giga Press machines.

In December, based on aerial images taken of the facility, it was revealed some parts of the Cybertruck’s 9,000-ton Giga Press from IDRA had been delivered to the plant. Recent images from the complex suggest deliveries of Giga Press parts have not stopped since.

This was particularly evident in recent photos taken by longtime drone operator and Giga Texas observer  Joe Tegtmeyer, who has been chronicling the progress of the EV plant since its earliest days. A large number of Giga Press

parts from IDRA could be seen being delivered to the factory. The parts seem massive, at least based on the containers used to transport them.

The parts from IDRA are particularly exciting since they would most likely be used for the Cybertruck’s 9,000-ton Giga Press to produce the all-electric pickup truck’s rear underbody. CEO Elon Musk has said the Cybertruck would be using a single-piece rear megacast, similar to the Tesla Model Y. But since it is a much larger vehicle than the Model Y, it needs a larger machine than the crossover’s alreadygigantic 6,000-ton Giga Press.

The drone operator also observed the pace of Giga Texas’ Model Y production appears to be increasing. A stream of the crossovers could be seen in photos around the facility. This is no surprise, especially considering Tesla is producing Model Ys with both 2170 cells and 4680 cells in Giga Texas.

36 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Financing a new or used vehicle is growing more expensive than ever for consumers, according to the car shopping experts at Edmunds. New data from Edmunds reveals:

Interest rates are continuing to rise. The average annual percentage rate (APR) on new financed vehicles climbed to 6.5% in Q4 2022 compared to 5.7% in Q3 2022 and 4.1% in Q4 2021. The APR on used financed vehicles climbed to 10% in Q4 2022 compared to 9% in Q3 2022 and 7.4% in Q4 2021.

A greater share of consumers are committing to monthly payments of $1,000 or more. 15.7% of consumers who financed a new vehicle in Q4 2022 committed to a monthly payment of $1,000 or more—the highest it’s ever been— compared to 10.5% in Q4 2021 and 6.7% in Q4 2020. 5.4% of consumers who financed a used vehicle in Q4 2022 committed to a $1,000+ monthly payment—also a record high—compared to 3.9% in

down payment for new and used vehicles hit record highs in Q4 2022, climbing to $6,780 and $3,921, respectively.

A growing share of luxury shoppers are turning their backs on leasing and choosing to

To

purchase instead. Edmunds data reveals that new-vehicle lease penetration dropped to 16% in Q4 2022, compared to 29% in Q4 2019. Luxury new-vehicle lease penetration dropped to 26% in Q4 2022, compared to 53% in Q4 2019.

“Just as new and used car prices

--which is the vast majority of car shoppers,” said Ivan Drury, Edmunds’ director of insights.

“Although the last quarter of the year typically skews toward luxury vehicle purchases, this near-record percentage of vehicles that are being purchased rather than leased reflect tougher market conditions far more than affluent consumers shelling out a bit more than usual to treat themselves over the holiday season.”

Edmunds analysts caution the combination of costlier vehicle financing and cooling used car values could spell trouble for some consumers down the road if they do not budget or plan accordingly. Edmunds experts conducted a deeper dive into the share of new vehicle sales with a trade-in that had negative equity in Q4 2022, which reveals:

17.4% of new vehicle sales with a trade-in had negative equity in Q4 2022, compared to 14.9% in Q4

2021 and $5,059 in Q4 2020.

“Vehicle equity is really a tale of two gears for consumers over the past few years,” said Drury. “At the onset of the pandemic, consumers benefited from low interest rates and elevated tradein values, helping shield even the more questionable financing decisions from resulting in negative equity. This unique confluence of market forces resulted in some vehicle owners being able to take advantage of positive equity on their loans and even their leases. But as we shifted toward an environment with diminished used car values and rising interest rates over the past few months, consumers have become less insulated from those riskier loan decisions, and we are only seeing the tip of the negative equity iceberg.”

As a 2023 resolution, consumers may benefit from resolving to more closely monitor their vehicles’ values so they are not shocked to find out

autobodynews.com / AUTOBODY NEWS FEBRUARY 2023 37
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5 Things Companies Must Do To Stay Engaged With Customers

They used to call it customer engagement, but now they should call it customer entanglement, because companies are more involved in their customers’ lives than ever.

Today, marketers are staying engaged indefinitely and as seamlessly as possible to keep their customers in the loop. Through social media, direct mail, online advertising, public relations, mobile apps and other channels, companies establish and maintain lifelong relationships with their customers and reap big rewards.

To keep the relationship going strong, businesses of all sizes need to think differently or be left behind. Here are five deliverables that must always be in the mind of any business that wants to attract customers.

Credit: Shutterstock

Let’s Listen More Closely

Developing effective tools to promote customer engagement is no longer simply a one-time thing, or something a company does quarterly or even monthly. Now you have to be in your customers’ minds all the time.

Let’s Devise a Plan

Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan, and to stick to it.

Every time you engage with your customers, have a clear goal in mind, whether it’s improving your product or adding benefits customers will want. Sixty-eight percent of Americans are willing to spend 13% more with companies providing superior customer service, according to Inc.com. This means all of your customer engagement endeavors must lead directly to some type of offer, decision or action, backed by a strategic approach.

Let’s Embrace More and More Mobility

More people use their personal devices to buy products and services online. Nearly 70% of all adults in the U.S. have a smartphone, and tablet computer ownership has edged up to 45%, according to a survey conducted by the Pew Research Center. If you are not engaging with your customers via their cell phones or tablets on a semi-regular basis, you’re still in medieval times.

To achieve this, marketers have researched and engaged with what their customers are doing, to stay ahead of trends and effectively identify fads, as well as to ride the former and discard the latter until the buzz begins to die down.

Companies always covet peerto-peer, one-on-one relationships. People love to share personal stories about products and services they like, and that’s the sweet spot every marketer wants to tap into.

By learning as much as you can through online reviews and social media, you can learn your customers’ habits quickly and respond promptly. Adapt or perish is the motto when it comes to customer engagement, and listening carefully is a vital part of that.

Let’s Develop 2-Way Relationships

If you truly want to stay engaged with your clients in an effective manner, treat them more like good friends instead of customers. Too many companies milk their customers dry with a different offer every other day. That’s overkill and you won’t won’t remain friends if you do it on a continual basis.

Your overall strategy shouldn’t be all about selling them something aggressively, but rather more about developing good friendships with your client base.

To this end, value all feedback you receive from your customers and

share it with your team. If you’re listening to what your clients are saying about you, you can respond quickly and improve your products, services or processes if needed.

Pivoting is not just for Stephen Curry of the NBA must be ready to do it on the drop of a dime.

Let’s Make it Easily Accessible and Visible

There’s a whole big world out there when it comes to all of the different approaches to stay engaged and entangled with your customers for the long run.

In-product messaging, email, mobile, social media and customer care/support are the five leading ways companies can consistently achieve top-tier results. The ones that truly excel at it have figured out how to do it all well.

The role of any smart marketer is to provide its customers with the correct tools to enable easy and natural communication. You should always be easily available and visible, but you should also offer options for varied types of interactions.

If you can offer your clients an

38 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan and stick to it.
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Speakers Offer Advice on Recruiting, Retaining Auto Body Shop Employees

Presenters at online events this fall aimed at dealership service departments offered some information and ideas about employee recruitment and retention that could be equally helpful for collision repair businesses.

Meredith Collins of Carlisle & Company, for example, said that company’s research across multiple automakers’ dealerships found those companies lose an average of 29% of technicians annually.

“So almost a third are leaving dealerships each year,” Collins said. “We’re losing a great deal of money when we lose a single tech [let alone] when you extrapolate it to the whole industry.”

communication between service advisors and technicians. They found a significant disconnect on this topic, with the majority of service advisors thinking they communicate properly, but fewer than 30% of technicians saying that was the case from their viewpoint. This impacts performance, Collins said.

“The technicians who strongly disagree that they are communicated with well are much less productive than those who say they are,” she said. “They are turning fewer hours, and earning less money if they think that there’s not good communication.”

Most Employees Want a Clear Career Path

Another speaker, WrenchWay founder Jay Goninen, said the technician turnover at dealerships is even more problematic than it may seem at first glance.

said. “You’ve got to be able to be better as a manager and as a leader to really have their best interests in mind.”

Attracting Entry-Level Workers

A CRASH Network survey earlier this year found one in five collision repair shops had an opening for a detailer, and nearly twice as many were looking to hire a body or paint department apprentice.

Joel Fumo , founder and CEO of Citrin, said all industries are short on this type of hourly, 17- to 24-year-old employee, so collision repair businesses are competing not just with each other for such workers, but also with Target, Costco and Whole Foods.

organization that have moved up from the type of position you are offering them.

“Testimonials from people they can relate to is huge when it comes to attracting people,” he said. Employers also need to move quickly.

“Time to hire is everything,” Fumo said. “Make sure you’re quickly getting them on the phone or in for an in-person interview. Get them earning a paycheck as quickly as possible. We see [clients] having up to a two- or three-week hiring cycle. When it comes to hourly employees, they can’t wait around that long for a paycheck.”

She pointed to several factors driving that turnover. The company’s surveys of technicians found only about a quarter of them expressed satisfaction with their job.

“They overwhelmingly wouldn’t recommend this career, which has implications on our ability to recruit new technicians into this space,” Collins said.

One driver of that dissatisfaction appears to be pay methodologies. She shared a chart showing technicians paid hourly or by salary are more likely to express job satisfaction; those paid flat-rate were the group with the lowest percentage of job satisfaction. She noted those employees pointed to the time they spend at work for which they are not paid.

“What we’ve heard from technicians in the last year is that nearly one third of their time while they are at work is non-compensated time,” she said. “They estimate this is costing them about $17,000 a year on average. So it’s a huge amount of money they see they are leaving on the table.”

But Collins said it’s also not just about the money.

Carlisle & Company also surveys dealership service personnel about their perception of the

“What we’re hearing is that it’s not techs just leaving one dealership to go to another. They’re leaving the industry,” Goninen said. “When we’re already coming from behind, it really puts us in a bad position. They have a perception that all shops are the same, and that they’re going to get treated the same way. Some of them have probably experienced that.”

Employers, he said, need to find ways to portray themselves as a different and better place to work, with a well-designed career path for technicians.

“For the longest time, we pinned it on just Millennials wanting to know what their career path is,” he said. “But think about that 55-year-old tech out

His Ohio-based company specializes in recruiting for such entry-level positions, primarily for dealerships. He said it requires thinking about what these young people want in a job: a flexible schedule, competitive pay and opportunity for career growth.

“Our benchmark for wages is Chick-fil-A,” he said. “We try to be as close [in pay] as we can to Chick-fil-A in any market.”

Show them people within your

Other companies, he said, are converting applications to a new hire in three or four days.

Lastly, he said, your company has to be a place where people want to work.

“Culture is really everything that drives our ability to recruit and retain great people,” he said.

John Yoswick has covered the collision industry since 1988, is the editor of CRASH Network and can be

there, whose body may not be feeling the best right now. You have another 10 years to work. You probably want to know what your career path is more than anybody.”

Having a genuine interest in your employees’ goals and interests can’t be something you just talk about, he said.

“If you treat people like a number and are surprised when people are leaving, I think that’s on you,” Goninen

40 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
“If you treat people like a number and are surprised when people are leaving, I think that’s on you.”
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Survey:

Colorado

Small-Business Owners Against

Increased Taxes, Fees For EV Infrastructure

A survey of Colorado’s small businesses found little support for increasing taxes, fees or assessments to pay for building infrastructure for charging electric vehicles.

The National Federation of Independent Business (NFIB) in Colorado conducted a fourquestion survey before the Colorado General Assembly begins its legislative session Jan. 9. The research also found small businesses aren’t in favor of Colorado’s state agencies considering environmental, social and governance (ESG) factors when making investment decisions with financial institutions.

The NFIB of Colorado surveys its members annually on state and federal issues concerning the ability of small business owners to operate and grow their enterprises. Results from the research helps NFIB develop lobbying positions in Denver and Washington, D.C.

The survey found 91% of

Jaguar Land Rover Joins I-CAR Program

I-CAR on Dec. 15 announced Jaguar Land Rover has joined I-CAR’s Sustaining Partner Program, designed to fund the various initiatives that drive I-CAR’s vision that every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer.

The move builds upon Jaguar Land Rover’s longstanding training partnership with I-CAR, which provides customized training programs to Jaguar Land Rover’s Authorized Repair Network facilities throughout North America. Since the program’s founding in 2017, I-CAR Sustaining Partners has helped fund I-CAR curriculum and student fees in career and technical schools, which have become I-CAR fixed training sites; that funding exceeds $3 million. Sustaining Partners has also funded all Industry Training Alliance training credit fees for individuals who train with curriculum from approved Industry Training Alliance partners.

Source: I-CAR

respondents were against Colorado imposing new taxes, assessments or fees on motorists, shipping or on commercial and residential energy consumption to pay for infrastructure to accommodate electric vehicles; 7% were for the increases and 2% were undecided.

Auto Care Alliance Partners With Elite

The research revealed 74% of respondents were for Colorado prohibiting state agencies from doing business with financial institutions that adhere to principles “advocated by environmental and social justice groups.” The survey

found 18% were against the proposal and 8% were undecided.

“Our members’ justified crankiness comes through loud and clear in our poll,” Tony Gagliardi, NFIB’s Colorado state director, said in a statement. “For a variety of reasons, this is not a good time for small-business owners, which means it’s not a good time to ask them to pony up more money for electronic vehicle (EV) infrastructure that they believe the EV industry should be coming up with, and it’s not a good time to sell them on woke business policies.”

Three of four respondents said Colorado should become a rightto-work state; 21% were against the concept and 4% were undecided.

When asked if individuals should be allowed to choose the pharmacy of their choice for their prescription drugs, 92% agreed, 5% disagreed and 3% were undecided.

Auto Care Alliance has partnered with Elite to offer online sales training for service advisors. Elite is offering a benefits package valued at more than $300 to ACA member shops who are new to the program.

Each ACA member that signs on with Elite’s Sales Master University will receive a full year of access to 16 lessons taught by Ratchet & Wrench All-Star Award winner Jen Monclus, including quizzes and activities to improve retention and accountability, and quality content developed by America’s top shop owners and service advisors with real-world applications that can be implemented immediately, ensuring consistent and profitable sales cycles.

Elite and Hamilton will host a 30-minute webinar on this benefit to member shops at 1 p.m. CT Jan. 24.

More information on the program and upcoming webinar can be found at autocarealliance. org/elite

Source: Auto Care Alliance

42 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Classic Collision Adds 2 Locations in Colorado

Classic Collision, LLC, on Dec. 16 announced the acquisition of the CARSTAR Highland Denver North and Highland Denver South franchise in Denver, CO.

Former owners Gunnar and Lynette Greenemeier have been dedicated for the past 35 years to serving their customers’ needs throughout the vehicle repair, by providing the most efficient, cost-effective methods available, while providing the highest quality repair and an exceptional customer service experience.

“Our philosophy has been to do the repair right the first time, and I know that Classic Collision will carry that on,” said Gunnar Greenemeier.

“We’re honored to welcome the CARSTAR Highland Denver North and South teams to the Classic family. We recognize their high service standards and dedication to customers and look forward to adding our fourth and fifth locations in the Colorado market,” said Toan Nguyen, CEO of Classic Collision. Focus Advisors, a firm specializing

“Selling our business was a difficult decision to make but we decided there was another chapter in our lives,” said Lynette Greenemeier, who credited their successful exit to the advice and guidance of Focus Advisors. “We knew it was time to shift gears and focus on supporting our daughter’s racing career. The team at Focus Advisors ensured that we received the best value for our business and managed a process to close the sale successfully, benefitting us and our employees. We’re very pleased with the outcome and our choice to join Classic Collision.”

“The Greenemeier team has built a great business and established themselves as leaders in Denver,” said Focus Advisors Managing Director David Roberts “With few MSOs in their market, there was strong interest among multiple buyers. Classic has truly found a gem with this acquisition. It’s always an honor to represent owners like the Greenemeiers in realizing the value of what they’ve

2022 U.S. Car Rental Revenue of $36.1B Shatters Records

News Staff

Despite continuing challenges around vehicle supply, staffing shortages, demand shifts and the cloud of a recession, the

Meanwhile, the estimated number of new vehicles sold into rental fleets in 2022 represents less than half the total number of vehicles sold in 2019. However, rental companies are holding their cars in fleets longer to compensate.

The high-pricing, tight fleet environment drove another new record for revenue per unit per month (RPU) of $1,424.

U.S. car rental industry earned an estimated $36.1 billion in revenue for 2022, based on data collected by Bobit. That yearly total represents a 24.7% growth over 2019’s record year and is likely the highest yearover-year gain in industry history.

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“I never would’ve guessed the industry would’ve rebounded this quickly exiting the pandemic to reach record revenues. That said, the environment isn’t one to relax in, as those same pressures will ease only slightly in 2023.”

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Oklahoma Family Out $1000s After Auto Repair Shop Shuts Down Without Finishing Repairs

A Yukon, OK, family is out thousands of dollars in parts and labor after the auto repair shop they were working with closed before finishing repairs.

Bob Tomko said he was in a car accident back in December 2021.

“Took a little while for me to find somebody to work on the truck knowing full well that things can get a little expensive out there,” said Tomko.

His wife, Mary Tomko, said she knew of a mechanic who could get the job done without breaking the bank. The shop that came to her mind, Blockheads Auto Repair in Mustang, also happened to be a tenant her company was leasing space to.

Bob told KFOR that Blockheads Auto Repair had first done some minor repairs to the truck. He liked the way the job was done, so he and Mary decided to get the rest of the vehicle repaired there.

Bob said the former owner of the shop, Travis Harrison, told them he’d have to order the

needed parts directly from Ford. On June 23, Mary wrote a check for $2,050 to Harrison for “truck parts and labor.”

Bob reached out to Harrison via text message to ask how things were going on several occasions.

On Aug. 22, Harrison told Bob in a text, “Everything is going good. We should be right on schedule.”

Then, on Oct. 12, texts between Harrison and Bob show Harrison saying he had just gotten off the phone with a Ford representative who said the parts would be delivered Oct. 25.

Mary then started texting Harrison on Oct. 31 about when to drop the truck off for repair, but Harrison didn’t appear to have replied.

Dec. 12 rolled around and Bob said they were still unsure of what was going on because of the lack of communication.

Mary texted Harrison once more saying, “I want my truck parts or my money back. This is a demand text. You have two days to contact me.”

Mary claimed she was told she would receive a reimbursement once Ford reimburses him.

PepsiCo To Deploy 100 Tesla Semis in 2023

PepsiCo is planning to deploy 100 Tesla Semis in 2023 that it purchased in 2017, and will begin delivering products to customers such as Walmart and Kroger, PepsiCo Vice President Mike O’Connell said on Dec. 16.

In an interview with Reuters, O’Connell added the company was buying the large allelectric trucks “outright” and is upgrading its plants. He said this includes the installation of four 750-kilowatt Tesla charging stalls at its Modesto and Sacramento locations in California.

“It’s a great starting point to electrify,” he said. “Like any early technology, the incentives help us build out the program.”

He said there were several development and infrastructure costs. Although the company didn’t share details on the price of the trucks when asked, O’Connell said it was a good investment.

“We keep the trucks for a million miles, seven years. The operating costs over time will pay

back,” he said.

PepsiCo plans to begin rolling out the Tesla Semis in the central U.S. and then the East Coast. O’Connell also said Tesla didn’t help pay for the megachargers for the vehicles, but it provided design and engineering services for the facilities.

The megachargers are equipped with solar and battery storage systems. O’Connell said it will take 35 to 45 minutes to recharge a Tesla Semi after a 425-mile trip carrying Frito-Lay products, which should bring the battery down to around 20%.

News 4 reached out to Harrison for an interview, but he declined.

He did share with KFOR, “We closed our doors months ago. Her [Mary Tomko] and her husband ordered parts through us. There was no contact for months. We knew we were closing so we sent their parts back to Ford when we closed so we could not be accused of stealing and unfortunately we have been anyways.”

According to a lease agreement between River Rose Properties and Blockheads Auto Repair, space was leased to Harrison for the auto repair shop from Oct. 1, 2021, through Sept. 30, 2022.

Mary said once the lease expired, the contract rolled over to a month to month.

Harrison moved out of the space sometime between late November and early December, according to Mary.

Harrison said he has all necessary paperwork, which he will be presenting it to the “courts where matters like this should be discussed.”

He said at the time of closing, he tried reaching out to the Tomkos

several times, but never got a response.

Harrison added he thought he was doing the right thing by sending the parts back to Ford.

News 4 attempted to ask other questions, but Harrison said he didn’t want to be on the record.

Mary said she was never made aware Harrison wasn’t reopening elsewhere.

“He told me he moved his shop with cheaper rent,” said Mary.

The Tomkos have since sent Harrison a Letter of Demand giving him until Jan. 15 to reimburse them for the parts and labor they paid for six months ago. Otherwise, the Tomkos plan to take Harrison to small claims court.

News 4 reached out to Ford about whether or not the parts were purchased through Harrison or Blockheads Auto Repair. We also asked if Ford is undergoing a delivery delay.

A Ford representative said they’re looking into the matter, but because the entire company is closed until Jan. 3, the answer likely wouldn’t come until everyone is back in the office.

44 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Ram Tailgate Recall Involves 1.4 Million Trucks

A Ram tailgate recall involves more than 1.4 million Ram trucks equipped with tailgates that may not latch correctly because the tailgate strikers may be misaligned. This can cause a tailgate to suddenly open while driving and allow unsecured cargo to fall out.

Stellantis (Fiat Chrysler) advises Ram customers to follow the owner’s manuals and make sure items in the truck beds are secured.

The Ram tailgate recall involves 2019-2022 Ram 1500, Ram 2500 and Ram 3500 trucks, but Ram 1500 Classic pickups are not affected by the tailgate recall. Additionally, Ram trucks equipped with sensors that alert drivers to insecure tailgates are also not included in the tailgate recall.

Chrysler opened an investigation in July due to

tailgates that opened while driving 2019-2021 Ram 1500 trucks. As of Nov. 22, FCA was aware of 736 warranty claims, 101 field reports and 15 customer assistance records regarding tailgates that dropped open.

However, the automaker is not aware of any crashes or injuries related to the tailgate problem.

Along with the 1.2 million recalled Ram trucks in the U.S., the tailgate recall involves about 121,000 Ram trucks in Canada, more than 26,000 in Mexico and more than 27,000 Ram trucks outside North America.

FCA expects to mail Ram tailgate recall notices Jan. 27, 2023, and dealerships will inspect the tailgate striker alignments to the box latches and adjust them if necessary.

Owners who have questions about the Ram truck tailgate recall may call 800-853-1403. Chrysler’s Ram tailgate recall reference number is ZB8.

46 FEBRUARY 2023 AUTOBODY NEWS / autobodynews.com
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Three-State Hydrogen Partnership Entering Second Phase of Grant Application

Arkansas, Louisiana and Oklahoma will submit a formal application to the Department of Energy for funding of their regional hydrogen hub. The state’s governors announced in March they were forming a partnership called the “HALO Hydrogen Hub” in hopes of securing millions in grants for developing, producing and using clean hydrogen for fuel and manufacturing feedstock.

The partners pitched their concept to the DOE, which encouraged them to submit a full application. The hydrogen hub could receive up to $1.25 billion of the $7 billion included in the Infrastructure Investment and Jobs Act. Six to 10 hubs could be funded, according to a joint news release from the governors of Oklahoma, Louisiana and Arkansas.

Oklahoma Gov. Kevin Stitt said the three states share the same goals in creating a hydrogen economy.

“The opportunities and

abundant resources in Oklahoma complement our partners, and I am confident that our three state coalition can land this hub and become the nation’s heartland for hydrogen,” Stitt said in a statement.

“Oklahoma believes in a ‘More of Everything’ energy approach and by leaning into the hydrogen future with our partners, we can further diversify our nation’s energy portfolio and start meeting American demand with American energy.” Louisiana Gov. John Bel Edwards said the three states have already invested in hydrogen hub components.

“HALO states already have a healthy infrastructure in place that is actively delivering the raw materials to our industrial base, which is in turn making use of that hydrogen feedstock---next steps will be making sure all that hydrogen becomes low-carbon and making it more available and accepted as a major energy source,” Edwards said.

Applications are due by April 7. Awards are scheduled for the fall of 2023.

GM May Repurchase 2022-2023 Chevy Malibu Cars

Owners of 2022-2023 Chevrolet Malibu cars will soon learn if General Motors needs to repurchase their vehicles due to serious problems with the frames.

A recall of more than 2,100 Malibu cars has been announced because the front impact bars may not be properly welded to the front frame rails.

The front impact bar is a structural portion of the Malibu frame that will be weakened if the welds aren’t secure.

The faulty welds could be located on the right side, left side or both sides of the Malibu.

In August, a GM employee discovered a section of the motor rail was missing while installing parts on a Malibu.

“The sheet metal blank for the front frame rail outer panel was improperly loaded into the die by the supplier, resulting

ARIZONA

Audi Gilbert Gilbert

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877.358.8165

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in a front frame rail that was cut 10 millimeters short of its intended design,” GM said. “The shortened frame rail prevented proper welding of the front impact bar to the front frame rail.”

However, the automaker worked with the assembly plant and the supplier to inspect 1,875 Malibu cars built between July 27 and Aug. 3, 2022. None had any faulty impact bar welds.

Chevrolet Malibu recall letters will be mailed Feb. 6, 2023. GM dealers will inspect the righthand and left-hand of the motor rails for faulty welds.

GM will repurchase the vehicle from the owner if there are problems with the welds.

Chevrolet Malibu owners with concerns or questions should call 800-222-1020.

Audi Fort Worth Dallas/Fort Worth

817.632.6709

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877.424.AUDI (2834)

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214.452.3830

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