Autobody News March 2012 Southwest Edition

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U.S. House Judiciary Members Introduce Auto Parts Bill, Aims to Limit Parts Patent Protection The Promoting Automotive Repair, Trade and Sales (PARTS) Act, a new bill introduced to the U.S. House of Representatives, proposes to reduce the patent period car companies have on their collision repair parts from 14 years to 2.5 years (30 months). H.R. 3889 was introduced on Feb. 2 by Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.) to the House Judiciary Committee. A similar bill is currently being prepared in cooperation with the U.S. Senate Judiciary Committee. The bill would amend title 35 of current U.S. design patent law whereby automotive manufacturers may enforce

their design patents on collision repair parts against alternative suppliers. Both members serve on the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition and the Internet. Lofgren introduced auto parts patent legislation in the last Congress. The new subsection reads as follows: “It shall not be an act of infringement of such design patent to make or offer to sell within the United States, or import into the United States, any article of manufacture that is similar or the same in appearance to the See PARTS Bill, Page 32

Van Tuyl Charity Super Bowl Weekend Includes Flag Football Tournament/Trade Show Highlights by Ed Attanasio

There are three sacred things dear to the hearts of Texans: 1) Football 2) NASCAR and 3) Bass fishing. And although there wasn’t any car racing or angling during the Van Tuyl Team #1 took the crown, while Van Tuyl Team #2 finished recent Super Bowl third. Sherwin-Williams (in white jerseys at the far right) battled V.T. weekend, there was a Team #1 in the final, but ended up losing by a score of 5-3 other Super Bowl, 20 flag football lot of football and all of it was done teams competed in the Van Tuyl Texas-style. On Saturday, February 4, one Group’s Super Bowl of Flag Football tournament followed by a trade day before the New England Patriots met the New York Giants in that See Van Tuyl, Page 16

VOL. 30 ISSUE 3 MARCH 2012

State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting by John Yoswick

Speaking at the January Collision Industry Conference (CIC) in Palm Springs, State Farm’s George Avery said that PartsTrader, the electronic parts ordering system the insurer expects it will eventually require its Select Service shops to use, is currently being tested at one repair facility and soon will be at another location. He declined to identify the shops, saying that it is too early in the testing “to put those folks under the microscope and ask, ‘What do you think of the new system?’” The announcement was just one of the parts-related issues discussed at CIC. The CIC “Parts and Materials Committee” shared the results of a preliminary survey of 11 of the com-

panies offering electronic parts locating and procurement systems to the industry. Committee member Mary Lou Lubrano of Car-Part.com reported, for example, that about the same number of those companies Ron Reichen, said insurers pay Oregon Shop for use of their Owner, said systems as those carriers’ reported that said they are return rates don’t appear to match up funded by parts with those reported vendors; two of by vendors the companies said shops pay for the systems. “I would argue that shops pay for all of them, because having nine disSee CIC Report, Page 12

Texas DOT Pushes Teen Click It or Ticket to More than 750,000 Teens at Over 700 Schools Appropriately enough for Valentine’s Day, the Texas Department of Transportation (TxDOT) is calling on teens to love their lives and buckle up with the launch of the Teen Click It or Ticket campaign. This year, TxDOT is partnering with more than 700 high schools and community colleges statewide to reach more than 750,000 Texas students with the important message that buckling up can save your life. Teenagers are involved in three times as many fatal crashes as all other drivers. In Texas, the use of seat belts saved an estimated 1,425 lives in 2010. At the same time, nearly half of the 291 teen drivers and occupants of passenger vehicles, ages 16–20, killed in motor vehicle crashes were not wearing their safety belts at the time of the crash. The Teen Click It or Ticket campaign, in its second year statewide, aims to increase seat belt usage among teenage drivers, age

16–20, across the state. “A few seconds—that’s all it takes to buckle up. In that same amount of time, you can lose your life in an accident because you weren’t wearing your seat belt,” said Carol T. Rawson, P.E., TxDOT’s traffic operations division director. “TxDOT is committed to educating teens about the deadly effects of not wearing a seat belt, and this campaign says to every teen: ‘If you love your life, buckle up.’” As part of the campaign, TxDOT has distributed kits, including banners, lawn signs, posters and window decals, to high schools and community colleges around the state. These materials reinforce the importance of buckling up. Additionally, TxDOT officials will be visiting high traffic locations throughout the month with a wrecked truck from which two teens wearing their seatbelts emerged after See Texas Seat Belts, Page 23

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HONDA OF IRVING • Over $900,000 Parts Inventory • 17,000 Parts in Stock • Trained Wholesale Crew: Gary, Marie, Jim

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COLUMNISTS Attanasio, Garmat - Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations . . . . . . . . . . . . . . . . . 33 Evans - Barrett-Jackson DIY Event Draws Fans and Future Body Techs. . . . . . . . . 40 Franklin - Spotting a Newsworthy Opportunity . . . . . . . . . . . . . . . . . . . . . 14 I-CAR - Corrosion Protection to Structural Part Interiors . . . . . . . . . . . . 22 Insurance Insider - Getting a Guess-timate From the Real Experts . . . . . . . . . . . . . . 8 Nigro - A Shop Owner’s Suggestions to Control Steering and Worse to Come . . 18 Schroeder - FCC Collision Continues Expansion in the Greater San Francisco Area . . . . . . . . . . . . . . . 11 Sisk - Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs . . . . . . 28 Sisk - Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World . . . . . . . . . . . . 34 Weaver - Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician . . . . . . . . . . . . . . . . . . . . . . 27 Williams - Jerry Ulm Dodge Chrysler Jeep, a Truly Distinctive Florida Dealer. . . . . . 29 NATIONAL “Evangelist Jerry Bratt” Scam, Tow-for-Pay Revived . . . . . . . . . . . . . . . 9 CA Attorney Wins $10,000 Claim v. Honda . 9 California Law Demands More Low Emission Vehicles . . . . . . . . . . . . . . . . 44 CARSTAR Holds Results and Goals Teleconference . . . . . . . . . . . . . . . . . . 10 Chevy Volt Sees Stalled Momentum, Also Optimism . . . . . . . . . . . . . . . . . . . . . . . 44 Chrysler Recalls Police Cars . . . . . . . . . . 39 Chrysler Reports First Full Year Profit

Since Crisis . . . . . . . . . . . . . . . . . . . . . 39 Consumer Reports Says Brand Perception Narrows . . . . . . . . . . . . . . . . . . . . . . . 39 CREF Sees Record $4.1 M in Industry Donations for 2011 . . . . . . . . . . . . . . . 43 DuPont Paint Unit Bidding . . . . . . . . . . . . 39 Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud . . . . . . . . 43 Feds Escalate Jeep Airbag Investigation . . 44 Georgia Northwestern Technical College Considers Campus in Ringgold, GA . . . 42 German Auto Parts Stamping Plant to Come to Dublin, GA . . . . . . . . . . . . . . . 30 GM is Back on Top As the World #1 . . . . 39 Honda’s Ridgeline Recall . . . . . . . . . . . . . 44 Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply . . . . . . . . . . . . . . . 46 KBB Gets New President . . . . . . . . . . . . . 39 MOPAR Celebrates 75th Anniversay, 4 New Models . . . . . . . . . . . . . . . . . . . 44 NABC Plans At Least One Vehicle Gift in Each State This Year. . . . . . . . . . . . . 42 NHTSA Investigating Chevy and Toyota Models for Power Windows . . . . . . . . . 26 NHTSA Opened Ford and GM Van Investigations in January . . . . . . . . . . . 46 Nissan Recalls 2012 Versa . . . . . . . . . . . 39 NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances. 36 NSF Certifies PartsChannel Under Automotive Collision Parts Distributor Certification Program. . . . . . . . . . . . . . 26 Phoenix Auctions Show Collector Cars’ Comeback . . . . . . . . . . . . . . . . . . . . . . 39 SAAB Dealers Still Looking at Options, Six Parties Still Contend . . . . . . . . . . . . 23 SCRS Offers Repairers Digital Member Services E-catalog . . . . . . . . . . . . . . . 32 Second Toyota Driver’s Door Fire Probe Launched . . . . . . . . . . . . . . . . . . . . . . 44 State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting . . . . . . . . . . . . . . . . . . . . 1 Study: 96% of All Repair Shops Recycle Scrap Metal . . . . . . . . . . . . . . . . . . . . . 45 Subaru Recalling 2012 Outback and Legacy Models for Air Bags . . . . . . . . . 26 Supreme Court Allows Lawsuits on Lack of Safety Equipment . . . . . . . . . . 10 This Year’s Chicago Auto Show Used New Media Technology . . . . . . . . . . . . . . . . 45 Toyota to Build Compressor Parts Plant in Pendergrass, GA . . . . . . . . . . . . . . . 42 U.S. Auto Industry Bullish on 2012, Sales up 11% . . . . . . . . . . . . . . . . . . . 44 U.S. House Judiciary Members Introduce Auto Parts Bill, Aims to Limit Parts Patent Protection . . . . . . . . . . . . . . . . . 1

12 ne of 20 Ju d n a y a April, M l issues Coming in focus 3 specia

s will aga Autobody New paint technology this year. on paint and

s w il l e u s s i e Th : focus onSES • PAINT PROCESOLOGIES • PAINT TECHN RODUCTION PAINTERS • CUSTOM & P

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Southwest

REGIONAL Houston City Licensing Ordinance Stalls . 14 LA Police Crack Staged Crash Ring . . . . . . 6 NWLCRA Holds First Meeting of 2012 . . . . 6 Oklahoma Among Crash Parts Bills Introduced to State Legislatures Countrywide . . . . . . . . . . . . . . . . . . . . . 7 Service King Appoints New Vice President for Houston Market . . . . . . . . . . . . . . . . 4 Texas DOT Pushes Teen Click It or Ticket to More than 750,000 Teens at Over 700 Schools . . . . . . . . . . . . . . . . . . . . . 1 Texas Independent Automotive Association Hosts State Comptroller’s Office for February Meeting. . . . . . . . . . . . . . . . . . 9 Texas Invests in Continental Automotive Systems Inc. to Create 300 Jobs in Seguin. . . . . . . . . . . . . . . . . . . . . . . . . . 4 Van Tuyl Charity Super Bowl Weekend Includes Flag Football Tournament/Trade Show Highlights . . . . . . . . . . . . . . . . . . 1

Indexof Advertisers

Contents

Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.

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Accudraft. . . . . . . . . . . . . . . . . . . . . . 7 BMW Wholesale Parts Dealers . . . . 45 Chevyland . . . . . . . . . . . . . . . . . . . . 38 Chief Automotive. . . . . . . . . . . . . . . 11 Classic BMW . . . . . . . . . . . . . . . . . . 36 Classifieds. . . . . . . . . . . . . . . . . . . . 46 CSS USA, Inc.. . . . . . . . . . . . . . . . . 29 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . . 8 Filtersforbooths.com. . . . . . . . . . . . 23 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 31 Fowler I-240 Chrysler-Jeep-Dodge. 13 Garmat USA . . . . . . . . . . . . . . . . . . 32 Gene Messer Hyundai . . . . . . . . . . 20 GM Wholesale Parts Dealers . . . . . 44 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Hyundai Plano . . . . . . . . . 27 Hyundai Wholesale Parts Dealers . 42 Kia Motors Wholesale Parts Dealers. 37 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Malco. . . . . . . . . . . . . . . . . . . . . . . . 19 Mazda Wholesale Parts Dealers . . . 34 Mercedes-Benz of Oklahoma . . . . . 34

Mike Calvert Toyota. . . . . . . . . . . . . 12 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44 MOPAR Wholesale Parts Dealers . . 35 Nissan Genuine Parts . . . . . . . . . . . 15 PCL Automotive . . . . . . . . . . . . . . . . 9 Ray Huffines Chevrolet . . . . . . . . . . . 5 RealParts.com. . . . . . . . . . . . . . . . . 38 Reliable Chevrolet. . . . . . . . . . . . . . . 4 Replica Plastics. . . . . . . . . . . . . . . . 26 Russell & Smith Ford-Mazda . . . . . 39 Safety Regulations Strategies. . . . . 14 SATA Spray Equipment . . . . . . . . . 10 Scoggin-Dickey Buick . . . . . . . . . . 43 Solution Finish . . . . . . . . . . . . . . . . 40 South Pointe Chrysler-Jeep-Dodge. 21 Star-A-Liner . . . . . . . . . . . . . . . . . . . 22 Toyota of Fort Worth . . . . . . . . . . . . 18 Toyota of Laredo . . . . . . . . . . . . . . . . 6 Toyota Wholesale Parts Dealers . . . 20 Van Tuyl Group . . . . . . . . . . . . . . . . 17 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 30 Volvo Wholesale Parts Dealers . . . . 32 Young Chevrolet . . . . . . . . . . . . . . . 30

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 3


Texas Invests in Continental Automotive Systems Inc. to Create 300 Jobs in Seguin Texas Gov. Rick Perry has announced the state is investing $1.2 million through the Texas Enterprise Fund (TEF) in Continental Automotive Systems Inc., to relocate production of its sensors and actuators from Europe and Asia to its plant in Seguin, TX, creating 300 new jobs and $113 million in capital investment. “Employers from around the nation and all over the world continue to look to Texas as the premier location for business expansion, relocation and job growth thanks to our low taxes, reasonable and predictable regulations, fair legal system and skilled workforce,” Gov. Perry said. “This TEF investment in Continental will create hundreds of jobs, pump millions of dollars in capital investment into the area, and further strengthen Seguin’s diverse economy.” Continental is one of the world’s largest automotive industry suppliers. The company manufactures engine, transmission and hybrid control units at its plant in Seguin, and will begin producing sensors and actuators. Continental AG, the parent company,

also has facilities in Houston and Uvalde. “Today’s announcement would not have been possible without the strong support of and collaboration with the state of Texas and Texas Enterprise Fund, Seguin Economic Development Corporation, City of Seguin and Guadalupe County officials,” Kregg Wiggins, senior vice president, NAFTA Powertrain Division for Continental said. “We truly appreciate their support and look forward to expanding our business in this region.” “We are extremely excited by this announcement and look forward to continuing our long and mutuallybeneficial relationship with Continental,” Seguin Mayor Betty Ann Matthies said. “The recruitment of this project was made possible by seamless cross-jurisdictional coordination, and is another great example of how our community is able to aggressively utilize its economic development resources and pro-business approach to create a win-win public private partnership.”

Service King Appoints New Vice President for Houston Market

On February 3, Chris Abraham, President of Service King Collision Repair Centers, announced the appointment of Justin Regan as the company’s new Vice President of the Houston market. In November of 2008, Abraham accepted the challenge of assembling a team to develop the Houston market with the goal of having a multi-location collision repair operation to compliment the company’s success in the Dallas Ft. Worth market. Just last month, Abraham the former Vice President of Houston was promoted to President of Service King. Abraham said, “Justin Regan is a respected and talented teammate who will serve the Houston market proud.” Abraham added that Regan will continue building on their recent expansion in Houston with a new location scheduled to open in Clearlake, Texas within the next three months. Regan will continue his goals of implementing the Service King culture into a relatively new market and working closely with Service King leadership to maintain consistency within the organization between markets to ensure Service King’s success. Regan joined the Service King team in 1996. He began his Service King career as a service adviser and within a few years moved into man-

agement. Regan has managed 2 Service King locations, including the opening of the Grand Prairie facility in 2000. While under Regan’s leadership, his Grand Prairie team won 5 straight Top Shops as well as the esteemed annual “Morgan Award” for the top performing location within the Service King organization. Regan spent 8 years as the Location Manager in Grand Prairie, Texas before joining the Service King Support Center Operations team as a Regional Manager in 2008, overseeing 6 locations in the Dallas Fort Worth area. In August of 2009, Regan joined Chris Abraham in Service King’s successful venture outside the DallasForth Worth market by moving to Houston, Texas. As Regional Manager in the Houston market, Regan accepted the challenge of building an operations team to develop and support the Houston market through the acquisition of 2 collision repair operations, which included 4 locations, as well as opening an additional 7 facilities in a short two year timeframe. A Dallas native, Regan is a graduate of The University of Texas at Arlington and received a Bachelor’s degree in Communications/Public Relations.

4 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

“Continental continues to be a success story here in Seguin,” Seguin Director of Economic Development Terry M. Treviño said. “Since January 2010 the Seguin plant has grown from about 660 employees to more than 1,340 today, more than doubling its workforce, and is now adding more than 300 additional employees for a total of nearly 1,700. As most areas throughout the nation are losing jobs, Seguin continues to thrive - a testament to the strong fundamental advantages that make Seguin competitive on an international scale.” “I’m delighted for the residents of Seguin who may find jobs because of the Texas Enterprise Fund investment in Continental Automotive Systems,” Sen. Jeff Wentworth said. “I’m always happy to see job growth and business expansion in Senate District 25, and I applaud the City of Seguin, the Guadalupe County officials and the Seguin Economic Development Corporation for their diligence and success.” “To have one of the world’s

largest automotive industry suppliers expanding their business right here in Seguin, makes this is an exciting time for this region,” Rep. John Kuempel said. “I want to thank everyone at the local and state levels and Continental for investing in Seguin and the surrounding area.” The Legislature created the TEF in 2003 and re-appropriated funding in 2005, 2007, 2009 and 2011 to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state’s most competitive tools to recruit and bolster business. To date, the TEF has invested more than $442.2 million and closed the deal on projects generating more than 60,700 new jobs and more than $15 billion in capital investment in the state. For more information about the TEF, please visit: http://www.texaswideopenforbusiness.com/incentives-financing/tef.php or http://www.governor.state.tx.us.

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NWLCRA Holds First Meeting of 2012 The Northwest Louisiana Collision Repair Association (NWLCRA) held their first meeting of 2012 on January 10 at the Country Tavern Barbecue in Shreveport, LA. The association announced their new officers for 2012 at the start of the meeting. The 2012 Officers are as follows; President, Chris Fielder, Vice President, Ken Stephenson, Secretary/Treasurer, Bill Burnside. The meeting’s guest speakers were Darren Moore, Regional Manager with Alloy Wheel Repair, and Adam Wright, Area Manager with Alloy Wheel Repair. Darren began by stating that Alloy is a mobile wheel repair service; if a damaged wheel is painted, they come to your location and repair the wheel. They don’t do any welding, so if pieces of the wheel are missing, they won’t be able to repair the wheel. They are able to repair polished wheels and because the sheen on spokes may be different, they are taken on a “case by case” basis. They can straighten a wheel up to 24”, so they can repair most bent wheels. They mainly work on a schedule, but

will take “emergency” calls. They are a nationwide company, so if the wheel is repaired in our area and your customer is on vacation in California when a problem with the repair occurs, they can find an Alloy Wheel Repair shop in California for the warranty work. Alloy works out of their trucks and trailers, which are fully equipped. Because they have their own compressors, spinners, and other equipment, they don’t need to use anything in your shop. Darren also discussed remanufacturing shops and how you have to send the wheel to the remanufacturing shop and wait for it to be delivered. Alloy Wheel Repair comes to you and most general repairs cost $100.00. They have over 1 million wheels in stock in the event the wheel is too damaged to be repaired. They use UPS for deliveries, which usually takes 2 to 3 days. They don’t charge a core charge. They have partnered with LKQ and others, plus their own in-house inventory, they will be able to replace any wheel you need. Krystal Adams with Krystal Auto Collision in Bossier City, LA, asked

how long their warranty is. Darren stated that Alloy Wheel Repair has a lifetime warranty. Chris Shepherd asked about balancing the wheel after the repairs are made. Darren stated that cosmetic repairs won’t interfere with the wheels balance, but if they repair a bent wheel, it would need to be rebalanced and they don’t balance wheels. Krystal asked if they do powder coating and Darren said they don’t. He added that they will attempt to straighten a bent after market wheel, but if it cracks, it will not be covered under the warranty. Krystal asked what type of paint they use and they stated they use Dupont paint. They have a search engine on their website, www.midwestwheelrepair.com and if you contact Darren Moore by e-mail, darren@midwestwheelrepair.com, he’ll provide you with a user name and password so you can search their extensive database. The group was able to see first hand how they can repair wheels onsite. Alloy Wheel Repair also fed everyone at the meeting by picking up the tab.

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At the end of the meeting Ken Stephenson with Louisiana Glass and Mirror in Bossier City, LA, added that he used Caddo Career and Technology Center’s Job Shadowing program and was very impressed with the student that was sent to him. He said the student was extremely willing to do any job and was eager to learn. He said if anyone used the job shadowing program, they wouldn’t regret it. For more information please visit www.nwlcra.org.

LA Police Crack Staged Crash Ring

Louisiana state police arrested four people on January 24 for allegedly staging traffic accidents in Ouachita Parish, LA, according to Claims Journal. Detectives told the Monroe News-Star that they investigated six of 20 crashes where individuals filed false bodily injury claims.State troopers said the insurance companies in two of the six crashes paid out more than $18,000 to the suspects. Seven warrants were signed January 23 and arrests were made January 24. State troopers also said they are still looking for three suspects.

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Oklahoma Among Crash Parts Bills Introduced to State Legislatures Countrywide Several crash parts bills have been introduced in state legislatures across the U.S. Crash parts bills have been introduced in Oklahoma, Hawaii, Massachusetts, New York, South Carolina, North Carolina and Washington. The ASA says two state bills are of particular importance for independent repairers. Oklahoma Senate Bill 1458 calls for consumer notice and consent language, and adds new policy provisions including “emissions part” and “safety part.” “Emissions part,” the ASA notes, requires the replacement of parts or systems related to the control, monitoring and release of waste gases and particles created as a byproduct of combustion. Those parts include oxygen sensors, catalytic converters, exhaust pipes, exhaust manifold, fuel distributor, electronic emissions control unit, onboard emissions diagnostic device (OBD), and related parts and components. “Safety part” requires the replacement of parts or systems essential to vehicle operation. Those parts

include suspension, electronic control units (ECU), brake parts, safety systems and supplemental restraint system (SRS) components, according to the ASA. In addition, Hawaii Senate Bill 2326 amends the state’s current law by removing provisions requiring claimants to pay additional costs for the use of original equipment manufacturer (OEM) parts. It also requires insurers to make available the use of certain used or aftermarket parts instead of “like kind and quality” parts in motor vehicle body repairs. The legislation reads as follows: “Original equipment manufacturers and like kind and quality parts; used or aftermarket parts: (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality used or aftermarket part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of

an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality used or aftermarket part, unless the vehicle is currently under the manufacturer’s warranty or original equipment parts are required by the vehicle manufacturer’s warranty.” (b) A [like kind and quality] used or aftermarket part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the [like kind and quality] used or aftermarket part for not less than [ninety days or for] the same guarantee period as the original equipment manufacturer part, [whichever is longer]. The guarantee shall be provided by the insurer. (c) [Like kind and quality] Used or aftermarket parts, certified or approved by governmental or industry organizations, shall be utilized if available. At its fall board meeting, ASA approved a new crash parts policy to

reflect the collision marketplace changes occurring in the past few years. ASA’s new crash parts policy states: “ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types including, but not limited to, original equipment manufacturer, aftermarket, recycled, remanufactured, reconditioned and rebuilt crash parts. ASA supports quality parts, certified and verified in which the quality is determined based on empirical and measurable evidence equal to the standards of OEM parts. ASA recommends quality verification and testing related to metallurgy, fit, functionality and responsiveness. ASA believes a competitive parts marketplace, of tested and verified quality parts, is in the best interest of the motoring public. ASA continues to oppose parts policies that focus solely on efficiency without regard to certification, verifiable quality and safety.”

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Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Getting a Guess-timate From the Real Experts with The Insurance Insider

Before you can begin repairing a vehicle, you need an estimate. It’s the easiest part of this whole deal, right? You have a computerized estimating system that allows you to accurately document everything that is needed to fix the car. Some say it’s so easy that you can do it remotely by merely looking at a picture. Now that does sound easy! Almost as easy as going fishing with the “Pocket Fisherman.” Ah, the memories. For those not old enough to remember, every man in the world wanted one of those little babies nestled in their glove box. Why do I reference the inspirational and ageless Ron Popeil and his company, Ronco? It has nothing to do with getting a sales commission. I mention him because he made the impossible seem possible. The trivial and difficult became simplified and logical. I believe that repairers and insurers view estimating through the neverinvented “Ronco Goggles.” (Sorry for another pathetic Popeil reference. If you can’t tell, I’m a big fan and proud owner of an original Pocket Fisherman and Mr. Microphone.) If estimating is so easy why is it the most misguided, challenged and subjective part of the process? There is an easy answer: It’s not really that easy. Repairers and insurers argue all the time about the estimating process. I’ve heard repairers say, “The cost to repair the car is the cost to repair the car. Insurance companies are just trying to write a low-dollar estimate. Let the experts write the estimates and repair the vehicle.” Does that sound familiar to anyone? It should. Estimating is best defined by the actual root of the word: estimate. No matter what any expert tells me, estimating isn’t an exact science. In fact, if it was an exact science it would be called a repair bill, not an “estimate.” Look at the cartoon with this article and tell me which one of the estimators is right. If you said, “All of them,” or “None of them,” you would be today’s lucky winner of a Popeil Pasta Maker. (Note to self: Add Pasta

Maker to this year’s Christmas wish list.) I hope this doesn’t insult anyone who makes their living writing estimates. My intent is to illustrate that any one of them could be right. The monkey was willing to do it for three bananas; does that make him wrong? To nobody’s surprise and to the delight of stockholders everywhere, the insurance company wrote the lowest estimate. If I were put on the stand, I could defend this estimate. It is a visual damage estimate without any tear-down. Does it make the insurance company wrong if there is additional damage behind some of those parts? That’s why it’s called an “estimate,” complete with a disclaimer at the bottom. I know that this article will result in some hate mail, but the fact is that it’s not an exact science and it’s wrong to say “the damage is the damage.” If that was the case, why does it cost more to have vehicles fixed at one shop compared to another one that’s a block away with the same labor rate? It is subject to opinion, experience, tear-down and a hundred other factors including whether or not it was raining out or 20 degrees below zero at the time of the estimate. By the way, those “other factors” apply to both repairers and insurers. I’m sure estimate accuracy at 4:45 p.m. on a Friday compared to 11 a.m. on Tuesday is worthy of another arti-

8 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

cle on Insurance Company Estimating 101. Here’s a good recipe to produce an accurate, consistent estimate. It should include a visual inspection, a

lift, tear-down, a thorough washing of the exterior of the vehicle, ample time, 3-dimensional measuring equipment, a preliminary pull if needed, updated estimating software, a live competitive parts database, an experienced flexible estimator, use of best-case repair scenarios, 75 degree sunny weather with no clouds, and of course 20/20 vision. If you were to have all of those things, you are guaranteed to get an estimate that gets you closer than the guess-estimate. So please stop using the term, “The damage is the damage.” If that was the case, don’t you think that Ron Popeil would have already simplified our estimating lives?

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.


Texas Independent Automotive Association Hosts State Comptroller’s Office for February Meeting The Texas Independent Automotive Association (TIAA) held their monthly members meeting on February 16 at 6:30 p.m. at the County Line BBQ on I-10 in San Antonio.

perienced problems when calling on businesses about issues with their forms, oftentimes the Bookkeeper or Secretary doesn’t relay the message to the owner. By putting the owner’s contact information on all forms businesses can avoid this issue. He also stated body kits, lift kits and performance upgrades are taxable along with the labor. Next month’s meeting will be held on March 15 at 6:30 p.m. The location is Andre Eames from the State Comptroller’s office spoke to the 40 or TBA. The speaker so attendees at the meeting will be from local channel KLRN. They will speak about The night’s speaker was Andre how shops can donate a service for Eames from the State Comptroller’s their upcoming 46th annual Blazing office. He talked about sales taxes, efiling and making sure certain Gavels charitable auction. For more records are kept. He also let atten- information about the auction please dees in on a great tip: putting the visit blazinggavels.com. For more information about the number of the business owner on all the forms. Eames said they have ex- association please visit www.tiaa.net.

California Attorney Wins $10,000 Claim v. Honda

A non-practicing California attorney won nearly $10,000 for herself in her small claims suit against Honda claiming the company knowingly misrepresented the mileage she would get with her Civic Hybrid. The Small Claims Court lawsuit is unusual in that some legal experts believe it could change strategies for both Small Claims Court and class-action litigation. A Los Angeles County court commissioner ruled that American Honda Motor Co. negligently misled Civic owner Heather Peters when it claimed the hybrid’s gas mileage could be as much as 50 miles per gallon. Honda had offered a couple hundred dollars and a $1,000 voucher toward the purchase of another Honda vehicle to complaining customers who participated in a class action lawsuit. Honda says they will appeal but many more owners of the 2006 Civic Hybrid may be going the small claims route. Some say Peters is suing the wrong party, since EPA oversees the mpg ratings and Federal law requires them to be used. Five states’ AGs have asked for more time to consider the settlement with 200,000 owners.

“Evangelist Jerry Bratt” Scam, Tow-for-Pay Revived

There is a new tow for pay scam going around and several shops have contacted ABN to alert us. The scenario described by fax and possibly email is that their car needs to be towed from another state to be fixed at your shop. But they need you to pay the tow bill before the car can be delivered. One shop received two faxes (in two different fonts) from someone calling himself “Evangelist Jerry Bratt” saying his wife had an accident in a 2007 Cadillac Escalade on her way to Kansas. And of course it asks that you only email him. And he’ll be paying cash. And of course you need to pay the bill. The fax asks for the address of your shop. The last time this went around shops were expected to pay a tow bill over a $1000 and they tell you the “wrecker” will only accept a money gram. Maybe also a request for a credit card. Don’t fall prey but alert us if you receive this fax. The sending fax number is/was 202-204-0669, a number traced to Washington, D.C. We don’t know if there is a real Jerry Bratt, or whether or not he is an Evangelist.

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 9


Supreme Court Allows Lawsuits on Lack of Safety Equipment

The Supreme Court has reversed course and ruled that the nation’s automakers can be sued for failing to install the most-effective safety equipment in their vehicles. The unanimous decision on Feb.23 clears the way for a California man to sue Mazda Motor Corp. because his family’s 1993 minivan did not have a lap and shoulder belt in a middle rear seat. Judges in California had thrown out his lawsuit, citing a Supreme Court ruling in 2000 that shielded automakers from lawsuits for their failure to install air bags immediately in all their vehicles. In a surprise outcome, the high court reversed the California courts and cleared the way for Williamson’s lawsuit to proceed. Its opinion also backed away from its earlier view that the federal motor-vehicle safety law blocks most safety-related lawsuits against automakers. Justice Stephen G. Breyer described the federal safety regulations as setting forth only “minimum standards,” not the “maximum standards” required by law. Lawsuits from injured motorists can play a “continued meaningful

role,” he added, by requiring automakers to go further in seeking safety. Breyer explained that air bags had posed a different issue because, at the time, federal safety regulators did not want mandatory installation of air bags because of early doubts about their effectiveness. By contrast, he said, federal regulators had no objection to automakers installing lap and shoulder belts for all seats. It is not clear whether the decision in Williamson vs. Mazda will open a door to many more successful suits against automakers. Much depends on the specifics of the federal motor-vehicle safety regulations. But the outcome is a surprise nonetheless. In recent years, the high court led by Chief Justice John G. Roberts Jr. has regularly sided with corporations and blocked many lawsuits. In this case, however, the justices took the view that lawsuits filed by injured people can lead to safer products. Moreover, these suits are not blocked simply because the federal government regulates the product at issue, they said.

10 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

CARSTAR Holds Results and Goals Teleconference

CARSTAR held their annual outlook teleconference on February 9; CEO of CARSTAR Auto Body Repair Experts, David Byers, detailed the 2011 results for the MSO as well as their goals for 2012. According to Byers, 2011 was a “very solid” year for the MSO; sales totaled over $600 million and exceeded the group’s objectives for the year. 2011 was also a big year for continued growth and acquisition of new locations, which will also continue to be an objective for 2012. “We have acquired 17 new locations in the last few months,” said Byers. CARSTAR plans on focusing on growth in California especially for 2012. Byers also said that the new stores that were acquired in 2011 were very successful—seeing 50 percent higher revenues than stores acquired in 2010. Byers also said that changes coming for 2012 will “set the stage for growth.” In 2012 CARSTAR plans to grow existing store revenues and profits, add new stores especially in California, add new MSO insurance relationships, and fully deploy

CARSTAR solution, the group’s new management system in partnership with Mitchell. The MSO aims to add 50 new US stores in 2012. CARSTAR did have a presence in California in the early 90s, but it did not last. Byers said that he thinks this current expansion into California will be more successful because CARSTAR now has an insurance department and a purchasing department which make the company more stable. Byers said the way CARSTAR is now is “a dramatic difference over where we were in the early 90s.” Byers discussed the affect this mild winter has had on locations that normally see an increase in repairs due to winter weather. He said although the mild winter has clearly affected business across the US, CARSTAR depends on KPIs and DRPs to continue driving its business. “The industry...has seen a softening in the third quarter of 2011 into this year” due to the absence of inclement winter weather, according to Byers. For more information about CARSTAR visit: www.carstar.com.


Shop Showcase with Erica Schroeder

Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251

FCC Collision Continues Expansion in the Greater San Francisco Area FCC Collision Centers, a multi-shop operation with three locations in Mountain View, Milpitas and Sunnyvale, CA,

FCC Collision Centers’ owners Matt, Adam and Jason Piper

started in 1975 when Adam Piper decided to start his own business. A repairman at the time, he purchased the locations in Milpitas and Mountain View and ran those until 1996. Then he decided to sell both of those locations to a business called M2 Collision Care Center, while maintaining ownership of the build-

ings the businesses were in. Then in 2005 M2 went bankrupt and since his two sons, Matt and Jason, were working at other collision repair centers in the area, Adam asked them if they’d go into partnership with him on the two stores. Now Matt currently manages the Mountain View location and Jason manages the Milpitas location; they both manage the new Sunnyvale location. “We worked really hard the first couple of years to build the businesses back up,” said Jason. M2 had burned some bridges in the industry before going out of business and the buildings also needed some repair, so the trio worked hard for the first few years to get the business to where it is now. During the economic recession in 2008 and 2009 the Pipers had to ride the slow economic wave just like the rest of the industry. Although, according to Jason, one thing set their businesses apart from

the rest during this time, “We push hard during the slow times to reinvent our business.” During the recession the group reinvented their marketing strategy, improved their operations and upped their training to get ready for the economic rebound. It paid off—the businesses have seen a 15 to 20 per-

The crew at the FCC Milpitas location

cent growth in the past few years and have gained several new DRPs. Then 4 months ago the Pipers decided to buy a third location in Sunnyvale. They are currently working to get more DRPs as well as improving the building and image of that location.

The Pipers hope to grow FCC to 4 or 5 locations within the next few years and see continued growth of locations as the best way to stay competitive. According to Jason, there is a lot of industry consolidation going on currently and FCC intends to stay competitive in the industry with their continued growth. “The market is fertile for consolidation right now,” said Jason. The Pipers are currently looking for a fourth location, but it’s got to be the right location, says Jason. Ultimately the Pipers want their locations to complement each other, since the current three locations service adjacent communities. “One thing you can’t be in this industry is stagnant,” said Jason. Across all locations FCC currently has 40 employees, sees about 250 cars per month and grosses nearly $7 million annually. Mountain View is the largest location with 22,000 square-feet, then Milpitas with 16,000 See FCC Collision, Page 20

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 11


Continued from Page One

CIC Report

parate parts systems, some of which may be mandated by their insurance partners, may require shops to train their people on potentially nine different methodologies to order parts,” consultant Matt Ohrnstein of Symphony Advisors responded during the committee’s question-and-answer period. Ohrnstein suggested the committee could help communicate to industry constituents that, just as the banking industry settled on a standard way to transfer funds worldwide, this industry would be better served by standardized parts-related electronic commerce systems. CIC Parts and Materials Committee member Aaron Lofrano also reported in Palm Springs on his admittedly informal survey of more than 120 people in the industry asking how use of different types of parts benefit or hinder their business opAaron Lofrano eration on a daily basis in terms of job performance and profitability. Lofrano shared some representative comments from the various constituencies included in his survey. He said non-OEM parts vendors, for example, expressed concerns about the number of parts returned, and questions about whether those parts really did not fit as the shops returning the parts might indicate (often without providing any specific information about the problem with the parts). Such returns occur, Lofrano said he was told, even though other shops in the same markets return few if any parts. The parts vendors also expressed frustration with parts being returned without boxes or packaging. Following Lofrano’s presentation, Oregon shop owner Ron Reichen said he’d like to have more detailed information about the vendors’ reported parts returns rates. “We are repeatedly told by the carriers that it’s about 2 percent,” Reichen said, saying that doesn’t seem to match up with Lofrano’s assessment of what he heard from parts vendors.

Info Providers Discuss Data Sharing The “Big Three” estimating system providers offered some response at the

recent Collision Industry Conference (CIC) to a joint statement by three repairer groups earlier this year voicing concern about collection and use of shop data. In that statement, the Alliance of Automotive Service Providers (AASP), the Automotive Service Association, and the Society of Collision Repair Specialists, said shops wishing to use any of the estimating systems have no choice but to agree to allow their data to be aggregated and sold or reported to third-parties, potentially “in ways that may ultimately be detrimental to the (shop) who generated the data.” The estimating system providers pointed out the benefits to the industry of having aggregated data from which all shop-identifying information has been removed. Greg Horn of Mitchell International noted that the associations are among those who have at times requested such aggregated data, and that it can help shops understand how they performing relative to their market. Jack Rozint of CCC Information Services said his company takes every effort to ensure it isn’t releasing information that “could be used to the detriment of our customer.” He said, for example, that CCC would never share shops’ profitability data - such as gross margins on profit or labor - that it has access to through clients using its shop management system, even if a shop gave its permission to do so. “Because we recognized that ‘permission’ in this industry is not always ‘permission’ (because) it’s sometimes (given) when someone has a program being held over them (and) if they don’t do it they aren’t going to get any more cars,” Rozint said. “So we walled off that data and said it’s not going anywhere from our system.” But Rozint said even if the system providers gave shops a way to opt-out of having their estimate data aggregated, little would change. “Most of the work in this industry is paid for by insurance companies,” he pointed out. “If the insurance companies want that data aggregated, they have access to it because they paid the claim, so it will be aggregated. The only data you could exclude as a shop if that permission existed would be customer-pay data.” EMS vs. BMS debate continues The discussion came during a CIC Data Privacy Committee panel discussion related to when the industry

12 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

will shift to a newer technology standard for the transfer of a shop’s estimate data to third-parties. The associations have been among those calling for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the newer “BMS” standard, in large part because BMS gives the shop more control over what aspects of the estimate data are shared. If a shop, for example, orders parts electronically, the parts Jack Rozint vendor receiving the parts list via the EMS file gets not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned. CCC’s Rozint and Rick Tuuri of Audatex said more fully implementing BMS will require significant development resources for the information providers. And Tuuri said even if a

shop could export data using the BMS standard right now, it would be a little bit like being the only one with a phone or fax machine in that you couldn’t use it unless the other party was prepared to communicate that way as well. “If there’s no one prepared to receive BMS and understand it, there’s not much impetus to develop it,” Tuuri said. But Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said EMS is built on technology introduced in the 1980s; most programmers working today, he said, aren’t even familiar with it. He said there’s been no resources spent on the EMS standard since its last release a decade ago. “So yes, you will have to spend money to move to BMS because you’re not spending any money today,” Iantorno told the information providers. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

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On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Spotting a Newsworthy Opportunity with Thomas Franklin

This has been a year of extreme weather. Recently, fierce winds blew down hundreds of trees in one area I’m familiar with. Many of those trees damaged vehicles parked on the street or in driveways and those damaged vehicles wound up in a local collision center to be repaired. Those local shop owners obviously were pleased to get the business, but only one that I know of took the time to get some photos and get the story to a local newspaper to get the name of their shop in print. Perhaps if they had acted a bit faster, they could also have gotten their shop featured along with some of the TV news coverage of the wind damage, but any coverage is better than none. To take full advantage of a situation like this requires a real nose for news. Most shop owners are too busy taking care of business to constantly ask, “Is something happening that might get us free publicity and our name and picture in the news?” The amazing thing is every shop owner, manager or estimator is presented with potential news stories most every day. Many vehicle owners who bring a crashed vehicle in for repair have a story to tell. And many of those stories are bizarre and often funny. If the customer is willing to have the story told— and better yet if he or she has some photos—there could be some great material to pass along to the evening news or the morning paper.

People are especially interested in circumstances affecting pet animals or small children. For example, more than a million dogs are killed in car crashes every year. Many of these animals have been greatly loved by the driver or a family member. This could be a newsworthy story — especially if it was the pet of a small child. The important thing for a representative of the shop to keep in mind is to not give the impression that this is an attempt to exploit a sad situation. Unless the story is funny and the vehicle owner is laughing about it too, a sad story has to have a positive appeal. If a pet is injured or killed, a story could appeal to viewers or readers to take greater pains to have a proper pet restraint in the vehicle. The same appeal could be made if a child is injured or killed and the seat belt or restraint was not being properly used. The story then has a public service message, but it can also reveal the name and concern of the shop and its owner. A similar message could have value if the driver fell asleep at the wheel. Drowsy driving accounts for about 4 percent of all fatal crashes in the United States, or roughly 1,500 deaths each year. Researchers at the U.C., San Diego School of Medicine say that each year, potentially 980 lives could be saved and $11.1 billion in automobile-accident costs could be avoided if drivers who suffer from a disorder called obstructive sleep apnea

The mayor’s office in the city of Houston released new changes to the proposed ordinance to regulate the automotive repair and collision industry. The Houston City Council did not reach a final conclusion on the Valentine’s Day ordinance proposal but opted to refer the ordinance back to the administration. There has been no date set for the ordinance to be reconsidered. Automo-

tive Service Association (ASA) members in Houston opposed the proposed ordinance and will continue to work to ensure that any ordinance approved by the city council will treat consumers and repairers fairly. To view information regarding ASA’s grassroots effort – including the letter sent to the mayor and Houston City Council members – visit ASA’s legislative website at www.TakingTheHill.com.

were successfully treated. Half of the nation’s adults (51%) admit to driving while drowsy, reports the National Sleep Foundation (NSF). Among 18 to 29 year olds, nearly one-quarter report actually falling asleep at the wheel at some point during the past year, compared with 15% of those aged 30-64, and 6% of people 65 and older. There are about 5,000 fatal accidents a year involving big trucks, but there is no good way to know how many are due to truck-driver fatigue. “Driving while drowsy is no different than driving under the influence of alcohol or drugs,” says Richard Gelula, NSF’s Executive Director. “When you’re sleepy, your brain starts to shut down,” “But even before you actually nod off, performance slips.” Trying harder to stay awake may not help. Your thinking slows, you miss signals and risk-taking behavior increases. At 60 mph, if you close your

eyes for only one second, you’ve traveled 88 feet. Will a driver who crashed as a result of falling asleep be willing to reveal that? And if so, would he or she be willing to have that story publicized, even to provide a positive public service message? Possibly not, but it can never hurt to ask, and if the driver is willing, this could be a great story featuring the shop in a positive light. While these public service message stories may have the greatest value, the ones that are bizarre and often funny will be easier to get an agreement to publish. The driver who swerved and crashed to avoid hitting an armadillo that escaped from the zoo, or the homeowner who dropped a bucket of paint on his car while painting his house may be most willing to share in the laugh. The astute shop owner who thinks to pass these stories along to the press could enjoy an excellent bit of free publicity.

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automotive collision field, including rental car companies (Enterprise entered three teams, representing three regions in Texas and Hertz was also show and two days of company on-hand); Paint companies and paint meetings. The Irving-based company jobbers (English Color and Single that operates more than 70 car deal- Source, PPG and Sherwin-Williams); erships’ collision centers nationwide Body shop chains (Caliber Collision hosted an activity-packed four-day had two teams) and several local Dalschedule, bringing Van Tuyl man- las-area car dealerships (Sewell agement and employees, as well as Lexus, Town East Ford and Reliable collision vendors and local collision Chevrolet). professionals together to eat BBQ, Huggins was happy to see that his weekend’s plans came off without a hitch, he said. “This weekend surpassed all of our dreams,” Huggins explained. “This is the first year we’ve done this and we’re already talking about making it an annual event. By bringing the industry together for a couple of days, it was exceptional. We achieved everything we expected and even more. The Van Tuyl Team #1 went undefeated throughout the tourcompetition was unbelievable nament and beat Sherwin-Williams in an exciting final and some of the games were game. (At far right, National Collision Director Darren really close. And by helping a Huggins and at center flashing number #1 sign is Team charity on top of it, that made Captain Zachary “Huggy” Huggins, Darren’s son.) it even more special. I’d also network and play some high-spirited like to thank my co-director of the flag football. tournament, Russell Hamilton of EnThe entire weekend was the terprise Rent-A-Car, who did all of the brainchild of Van Tuyl Group’s Nascoring and played an integral part of tional Collision Director Darren its overall success.” Huggins, who comfortably wore sevAll four teams entered on behalf eral hats in creating, overseeing and of the Van Tuyl Group were called implementing all of the weekend’s “America’s Team” and coached by events. Sponsored by Van Tuyl, PPG Darren Huggins himself. Led by V.T. Refinish and Enterprise Rent-A-Car, Team #1, this championship squad the full-day flag football double-elimconsisted of standouts such as Captain Zachary “Huggy” Huggins, Darren’s son; MVP QB/DB Jared “Squid” Mosqueda and WR Matt Saoit, who “pretty much caught everything thrown his way,” according to Darren Huggins. Other stars for the superior team included WR/DB Heath “Chief” Baker; Johan “The Belgian Waffle” Huewart and WR Gregg “G-Unit” A Trade Show took place at Van Tuyl’s headquarters on Strandberg. On defense, Super Sunday, featuring 44 exhibitors and attracting Bobby “El Natural” Ghanmore than 400 people from the West Dallas area bari led the attack, interceptination tournament took place at the ing multiple passes and taking them to Stampede Sports Arena, a state-of-thethe end zone more than once. art facility in Southlake, Texas that V.T. Team #1 went undefeated features three artificial turf fields. Authroughout the entire tournament, runtobody News and Collision Hub were ning the table and beating a strong also on hand to cover the event and all team sponsored by Sherwin-Williams the fanfare surrounding it. in the final game. One of Van Tuyl’s Teams entered in the tournament other teams (V.T. Team #2) finished in read like a who’s who of leaders in the third place, led by Eric Payne, TayContinued from Front Page

Van Tuyl

16 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

lor Hoover and Eli Naylor, among others. Robert Shushi was the captain of the second place SherwinWilliams’ team and proud of his squad, but perplexed by the dominance featured by V.T.’s Team #1. “We gave it our best and we played well, but in the end they were a little faster and a lot more organized. They had signals and plays and they practiced, something we didn’t really do that much of. In the end, they were a better team, so hats off to them. All of the Van Tuyl teams were really good and the fact that Darren coached them all didn’t hurt, I’m sure.” V.T. Team #4 was by far the oldest team in the tournament, totaling 449 years of age amongst the group, consisting of nine seasoned veterans who gave a very impressive and spirited performance.

By playing a safer, non-contact incarnation of football, you would think no one would get injured, but a few bumps and bruises did occur during the tournament, Huggins said. “Nothing serious, but we did see a few pulled groins, quad sprains, broken fingers and one bruised heel. Otherwise, everyone walked (or limped) away a little sore. Pretty much, with so many people playing (in excess of 150) you would expect more injuries, so we were fairly lucky.” Huggins came up with the idea for flag football as a team building exercise, when he devised such a tournament while holding a series of company meetings last year, he said. “We were in Orlando when I came up with this idea. I’ve been a Dallas Cowboys fan my whole life and I’ve coached and played football for many years. Football reinforces a team approach and teaches people how to work well together for a common cause. When I saw how excited and competitive my guys were, I thought— wow, this can be used to build rapport and leadership on a larger stage. And that’s how it started!” Van Tuyl’s Super Bowl weekend raised more than $22,000 for Trinity River Mission (TRM), a West Dallas volunteer-based community learning center that sets up children (3-12 grades) for The Van Tuyl Group raised in excess of $22,000 for the Trinity River Mission, represented at the flag football success. Standing for Tutor, tournament by (from left) Elizabeth Franco (Outreach Read, Mentor, TRM graduManager), Alexandra Lopez (8th grader who has been ates 98% of its students, by with TRM since kindergarten) and Delores Sosa Green creating a wide range of edu(Executive Director) cational and support proIf you’re not familiar with this grams. By instituting programs to full-speed, non-contact version of provide nutrition for its students football, here’s a brief description of through a Kid’s Café that provides the rules, offered by Huggins. “You hot meals and snacks four days get five players on offense and four weekly and conducting a Tutor on defense. The quarterback cannot Power Hour with 68 trained tutors run past the line of scrimmage, so it’s on- site, TRM is successfully fightprimarily a passing game. The game ing illiteracy and combating low test consists of two 7.5 minute halves and grades in Texas. the clock runs continually until the TRM’s Executive Director Delast two minutes of each contest. The lores Sosa Green, M. Ed., set up a fields are 30 yards long and each team booth at the Van Tuyl Super Bowl of gets four downs to score. You can’t Flag Football and met with spectators get a first down and there are not any and players all day long. “We provide field goals or punts, so it’s all-or- mentoring for at-risk kids to put them nothing when you have the ball. The in a position to learn and grow as defense can’t rush the QB, but he only young people. We have children in our has four seconds to throw. And unless program who want to be engineers, they collide while going for a pass, teachers, architects—but the public there is no contact permitted in this system is failing them. Low graduagame.” tion rates prove it.”


THE VAN TUYL GROUP WOULD LIKE TO THANK OUR SPONSORS AND OLLOWING DEALER TEAMS FOR PARTICIPATING IN THE THE FOLLOWING

CHARITY SUPER BOWL.

Proceeds and sponsorships benefit Trinity River Mission.

Grand Prairie Ford

Miles Chevrolet

Camelback Toyota

Grapevine Ford

Reliable Chevrolet (MO)

Cerritos Nissan

Gwinnett Place Ford

Reliable Chevrolet (NM)

Collision Center of Peoria

Joe Meyers Ford

Reliable Chevrolet (TX)

David Maus Toyota

Mall of Georgia Ford

Stonebriar Chevrolet

Grapevine Collision on

Town East Ford

Van Chevrolet

Kenny Kent Toyotaa

Westway Ford

Van Chevrolet (MO)

Reliable Toyota

Crest South/Plano Collision

Van Chevrolet (TX)

Toyota of Dallas

Crest/Plano Collision

Vandergriff Chevrolet - N

Toyota of Richardson

Husker GM

Vandergriff Chevrolet - S

Trophy Nissan

McKinney Buick GMC

ABC Nissan

South County Lexus Collision

Midway Chevrolet

Bell Honda

Grand Prairie, TX Grapevine, TX Duluth, GA

Houston, TX Buford, GA

Mesquite, TX Irving, TX

Plano, TX Plano, TX

Lincoln, NE McKinney, TX Phoenix, AZ

Decatur, IL

Springfield, MO

Albuquerque, NM Richardson, TX Frisco, TX

Scottsdale, AZ Kansas City, MO Carrollton, TX Arlington, TX Arlington, TX Phoenix, AZ

Phoenix, AZ

Cerritos, CA Peoria, AZ

Sanford, FL

Grapevine, TX Evansville, IN

Springfield, MO O Dallas, TX

Richardson, TX Mesquite, TX Viejo, CA

Phoenix, AZ

I would like to add special thanks for the following vendors for their charity contributions:

Enterprise Holdings-Dallas, Garmat USA, Dent Concepts, English Color, Gene Lopez, Kaesar Compressors, Car O Liner, All Data, Velox-Bed Liners, Reliable Chevrolet, Mo., Mitchell International, Becca, Summit Software Solutions, Auto House Technologies, Matrix Measuring, Auto Body Color and Autobody News.

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 17


The Community-Focused Body Shop

Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.

A Shop Owner’s Suggestions to Control Steering and Worse to Come with Domenico Nigro

Modern vehicles are complex and increasingly easily totaled; advances like anti-lock brakes and traction control have increased driver control, and increased consumer awareness has improved safe driving practices. This all translates into fewer repair jobs and collision shops must follow best practices to remain profitable. But what about business declines due to steering? Steering has existed since the beginning of the auto insurance industry and, while illegal, it may be here to stay unless something is done to change the awareness, standards within the industry and the laws that govern their behavior. Steering hurts both the shops and the customer, and if there is going to be progression in this industry, a solution must be found and regulations must be enforced. Good body shops are being forced out of business. Car owners are receiving sub par parts and service. A solution would benefit the entire industry and its customers. The shops trying their hardest to get work based on their reputation and work aren’t the only ones being affected. The customer is also affected by steering and it can be dangerous to more than the bottom line. Insurance companies can have agreements with shops and vendors where the car owner will get cheaper aftermarket or unexamined used parts, which can have hairline fractures or other structural issues that may be unsafe. Almost everyone agrees that this practice hurts the industry, but for decades no progress has been made to change it. Obviously a steered vehicle usually ends up at a DRP shop, rather than an independent one, and whether you see steering as good or bad depends on which type of shop you have. One reason there’s not enough opposition to steering is that the shops losing jobs are balanced by the DRP shops that benefit from it. Solutions must be evaluated and once one is agreed upon, implementation and enforcement must be carried out and monitored. So, what are the possible solutions? Unity Within the Community The auto body industry should come

together, DRPs and non-DRPs, as a community, to set a standard for repairs and claims. Standards for what procedures are covered must be made so that fair and accurate prices are charges industry wide. This level of communication and standard setting doesn’t currently exist and causes greater separation within the body shop community and resentment from non-DRPs who may not be able to match DRP prices because the influx of jobs coming to DRPs allows them to offer unnaturally low prices.

Change Method of Reporting a Claim Currently, the vast majority of claims are made over the phone. These phone calls often include a recommendation from the insurance company for a preferred DRP shop. Instead of phoning in a claim, improve the Internet claim submission process, so that the first steps of the claim can be done online and don’t require human interaction. This will eliminate the possibility that the car owner is manipulated into using a particular shop recommended solely by the insurance company. Another option is making the claim in person from the body shop of their choice. Instead of first calling the insurance agency, have the car owner call the insurance company after they choose a shop, and if possible, have them call from the shop.

Awareness We must let the car owners know that they do have a choice when it comes to who is repairing their car. The aggressive “recommendation” practices won’t intimidate or influence the car owner if they are aware that the practice is illegal, and by allowing the insurance company to influence their decision, they are partaking in illegal practices that can ultimately hurt the car owner.

Curtail DRPs, Stop Preferred Providers DRPs are the greatest source of friction between shops and insurers but worse could be on the horizon. “Preferred provider options” are proposed by the insurance industry to control costs by offering policyholders discounts in exchange for limiting their choices when

18 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

it comes to collision repair. Those limits include the use of specific repair shops and the use of aftermarket or non-OEM parts and sheet metal. If we eliminate DRPs we can start to re-establish free enterprise, allowing the best shops offering the most fair pricing and doing best quality work to get the job, which will restore a more natural flow within the industry.

Policy Changes and Regulation On a larger scale, the issue of steering can be addressed through legislation. Insurance agencies need to stop strong-arming their customers to take their car to a preferred shop which is an obvious conflict of interest. Steering is detrimental to free enterprise and doesn’t allow for the industry to react naturally to the laws of supply and demand. Just as the government created laws that regulate monopolies

that impede free enterprise, they can mandate changes to the auto insurance industry. Steering creates a whole set of problems that are in the consumers’ best interest to correct. Once a fair solution for all parties is reached, it must be followed up with enforcement. Insurance companies should be required to show full transparency when their customers report an accident. Monitoring will follow to ensure no shop is receiving unfair advantages and deals that exclude other shops or discourage free enterprise and will eventually be looked back upon as archaic, unjust and unhealthy. You can contact your local Representatives to let them know you care about this cause and ask what they are doing to fix the problem. Action must start from within, awareness needs to spread, and solutions need to be discussed.

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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 19


Continued from Page 11

FCC Collision

and Sunnyvale with 8,000. The family trio works together well and has common goals when it comes to the businesses. Matt handles much of the training, production flow, estimate accuracy functions and daily management; Jason handles the accounting, HR, IT and daily management; and Adam handles the business develop-

FCC’s newest location in Sunnyvale, CA

ment, marketing, industry relations and “old guy” stuff, according to Jason. All three shops are equipped with state-of-the-art auto body repair equipment including Chief EZ-Liner Frame Machines and “Velocity”Computerized Measuring Systems. Each shop is also equipped with mod-

ern downdraft SprayBake spray booths, and uses only Dupont paint. All three shops are currently in contract with VeriFacts, an independent service company that analyzes, evaluates, trains and reviews ongoing work on a monthly basis. VeriFacts assures that technicians maintain the highest quality work through verification and authentication of repairs according to industry standards and original manufacturers’ guidelines. All three owners feel that their contract with VeriFacts helps them to maintain integrity in their repairs. “Using VeriFacts is a big part of who we are; we’re always raising the bar on quality by obtaining the most recent OEM standards,” said Jason. FCC has archived the highest level within the Verifacts program, called Medallion status. This status is attained after a history of verified certification, training, equipment, quality and adherence to OEM standards has been established. FCC is one of only a handful of shops that have attained this status across the US. “FCC utilizes AllData and researches OEM specifications on all structural repairs to ensure strict adher-

ence to OEM standards. This ‘tool’ allows us to provide the best, safest repair for our customers,” said Matt Piper. All three locations are also I-CAR GOLD certified. Management requires that all personnel enroll in any workshops or classes offered by original auto manufacturers or auto paint companies. The businesses are also currently in a direct repair partnership with several large insurers. They also do

FCC’s first location opened in 1975 in Mountain View, CA

paintless dent removal, wheel alignment, glass replacement, detailing and glass tinting, towing and rental cars. Adam Piper has also been very active throughout the industry in his career; including sitting on the Board of Directors of the Santa Clara Chapter of the California Auto Body Association since 1983, being Santa Clara Chapter President five times and serving as Committee Co-Chair of the

newly formed Definitions Committee for the Collision Industry Conference in 1994-97. FCC maintains membership in the California Auto Body Association, the Society of Collision Repair Specialists, the National Federation of Independent Businesses and the Better Business Bureau. “We aspire to always provide our customers with a service and ownership experience that consistently satisfies their needs and exceeds their expectations,” said Adam Piper. The company’s logo is “Quality, Service and Dependability.” For more information please visit www.fcc-collision.com. FCC Mountain View 177 East Evelyn Ave. Mountain View, CA 94040 (650) 965-1440 FCC Milpitas 1416 S Main St. Milpitas, CA 95035 (408) 263-9999

FCC Sunnyvale 904 E. Arques Ave. Sunnyvale, CA 94085 (408) 400-2440

Gene Messer Hyundai We’re ready to serve you!

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HURST

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Mon. - Fri. 7am - 7pm; Sat. 8am - 3pm parts@toyotatime.com www.freemantoyota.com

LAREDO

888-818-5176

Mon. - Fri. 7:30am - 6pm; Sat. 8:30am - 5pm www.toyotaoflaredo.com

Toyota of Fort Worth

Sterling McCall Toyota

817-916-1557 Fax

713-270-3942 Fax

FORT WORTH

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HOUSTON

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20 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 21


I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Corrosion Protection to Structural Part Interiors There has been a longstanding recom- Protection (CPS01), I-CAR asked several product and vehicle makers if mendation to apply epoxy primer, as well as anti-corrosion compound, on this is still the most frequent recomthe inside of rails and pillars and mendation. I-CAR was told it is not, rocker panels as a last step for struc- due to several reasons. These include possible primer adhesion problems tural repairs. Going back as far as the July/August 1988 I-CAR Advantage, in the article “Restoring Corrosion Protection,” is the following step for providing corrosion protection to enclosed interior surfaces: “Apply primer. Two-part epoxy recommended. Then apply anticorrosion compound.” The Figure 1. Anti-corrosion compound is applied to enclosed reason given, is that on areas interior surfaces with a wand using access holes where the coatings have been entirely removed, this is a twoon these surfaces, the lower prevastep process that is replacing the two lence of epoxy primer at repair faciloriginal coatings, zinc and E-coat. ities, the increased popularity of During research for the recently self-etching primer, changing primer updated I-CAR course, Corrosion chemistries, and an increase in the ef-

22 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

fectiveness of anti-corrosion compound. E-coat is the best corrosion protection material that will ever be applied to a vehicle surface, and aside of the weld backside, the enclosed interior areas have E-coat. Still, there is a concern among repair facilities for longevity of repairs, retaining corrosion warranties, and assurance that there is one more layer of protection, especially in the rust-belt areas. For these reasons, and more, several facilities will continue to apply epoxy primer in addition to anti-corrosion compound to enclosed surfaces as a standard operating procedure. Primer Requires a Cleaned Surface Product makers have a concern with adhesion if these backside areas are not cleaned properly. Any surface to be primed must be cleaned, both me-

chanically and chemically. If applying epoxy primer inside rails and other structural parts, the surfaces must be cleaned before the part is assembled. This requires sanding followed by a thorough chemical cleaning, especially the joint area backside to remove coatings. There might be access to a rail joint, if the joint is near the very tip of the rail and the rail is open-ended up through the joint location. Other than a situation like that, there isn’t enough access for proper cleaning after welding, so it must be cleaned before assembly. Anti-Corrosion Compound Alone The recommendation from the product makers and vehicle makers that ICAR communicated with during research for updating the I-CAR course, Corrosion Protection (CPS01), is to apply anti-corrosion compound


alone. Anti-corrosion compound, applied as a mist coat using a wand inserted through access holes or from the end of a rail, is designed to protect enclosed areas from corrosion (see Figure 1). The proper application technique should treat the backsides of the welds. Excess material should creep into the flange areas, sealing off those areas from moisture. At least one vehicle maker, Chrysler LLC, recommends a double application of anti-corrosion compound (see Video at www.icar.com). Visit i-car.com to view the referenced video where Chrysler Collision Repair Manager Doug Craig explains that Chrysler recommends applying two coats of anti-corrosion compound.

Do Not Use Self-Etching Primer It is still recommended to not use self-etching primer inside enclosed areas, because it doesn’t form a barrier like epoxy primer and would eventually break down. Self-etching primer must be coated with another product, and it would be difficult to see inside an enclosed area whether or not the primer is completely coated

by the anti-corrosion compound.

Conclusion The recommendation to apply epoxy primer followed by anti-corrosion compound inside an enclosed area is not included in the updated I-CAR course, Corrosion Protection (CPS01). When using this two-step process, the surfaces must be cleaned for the primer to properly adhere. The more general recommendation is applying anti-corrosion compound alone. The instructor-led (live) I-CAR course, Corrosion Protection (CPS01), has been refreshed. It includes updated manufacturer recommendations, as well as an updated presentation. Watch for this course in your area. For course details and to register, visit the I-CAR website. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.

www.autobodynews.com CHECK IT OUT!

SAAB Dealers Still Looking at Options, Six Parties Still Contend

Six parties are still reportedly considering buying Saab Automobile, but Saab’s dealer base also has options. Saab’s demise is not necessarily certain, a Bloomberg report suggests. While 200 Saab dealers worldwide have chosen to close up shop during the last two years, but the remaining are turning to competing automakers to land franchises as Saab’s fate becomes less promising, the report said. In fact, Saab National Dealer Council leader Kurt Schirm said each of Saab’s 188 U.S. dealers is considering other brands. Connecticut dealer Guildford Saab’s general manager Tom Backes is reported to have courted both Maserati and Mitsubishi. “I’ve reached out to quite a few brands,” Backes was quoted as saying. “Some have said, ‘We’re not expanding,’ and others have said, ‘We’ll take a look at it.’ It’s a slow process.” Garel Rhys, head of the automotive industry research center at the University of Cardiff, said: “These dealerships have a loyal clientele who might switch brands. They’re often in very good locations and well-established. So I’m quite optimistic about the prospects of Saab dealerships”

Continued from Front Page

Texas Seat Belts

what could have been a fatal rollover. The truck will tour the following areas: ● Bryan—February 14 ● San Antonio—February 15-16 ● Dallas—February 18 ● Rio Grande Valley—February 23 ● Huntsville—February 25 ● Houston—February 27-28 ● Austin—March 8 ● Arlington—April 1 Since September 2009, Texas Law requires all occupants of a vehicle, no matter their age or location in the vehicle, must be secured by a safety belt. Seat belt use by rear passengers has been observed as lower than that of those in the front. Violators risk fines of up to $250 and those on the Graduated Driver License Program could have their license suspended. This campaign also aims to continue increasing awareness of this law among teens. Teens are also invited to share their stories, win prizes and learn more at the website, SeatBeltsRock.com.

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Subscribers:

The Honda and Acura Dealers Listed Here are HO N D A TEX A S

TE XAS

Bankston Honda

OKLAHOMA

Honda of Frisco

N EW M E X I C O

Joe Marina Honda

Garcia Honda

Lewisville

Frisco

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800-344-8611 972-219-0021

866-442-2711 972-731-3176

800-722-0520 918-491-0110

800-677-6632 505-260-5002

Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

Dept. Hours: M-F 7:30-6; Sat 8-4 parts@joemarinahonda.com

Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com

Benson Honda

Russell & Smith Honda

LOUISIANA

Santan Honda

San Antonio

H o us t o n

Walker Honda

C h a n d l e r, A Z

800-727-8705 210-340-0831

800-833-0180 713-663-4266

A l ex a n dr i a

800-765-1353 480-285-2804

Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com

Dept. Hours: M-F 8-6; Sat 7-4 rnarvaez@russellsmith.com

Cleo Bay Honda

Wholesale Parts Direct

318-448-8255 318-445-6677 Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com

Dept. Hours: M-F 7-5:30; Sat 7-5 wholesaleparts@santanhonda.com

Showcase Honda

Killeen

Au s t i n

Patty Peck Honda

P h oe n i x , A Z

877-253-6229 254-699-2478

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Ridgeland, MS

800-537-8236 602-230-7306

Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com

Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com

Gillman Honda

OKLA HOM A

800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com

Houston

Don Carlton Honda

Superior Honda

800-999-8309 713-776-4834

Tu l s a

Harvey

800-722-2379 918-622-9670

800-943-4227 504-368-5687

Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

Dept. Hours: M-F 7-5:30 parts@superiorhonda.net

Dept. Hours: M-F 8-6; Sat 8-5 gduckworth@gillmanauto.com

Dept. Hours: M-F 7-7; Sat 8-5; Sun 9-4 dfoote@vtaig.com

AC U R A TEX A S

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Champion Acura

David McDavid Acura

Sterling McCall Acura

Acura of Baton Rouge

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Baton Rouge

800-749-6227 713-371-4700

972-964-6044

713-596-2337 713-596-2338

866-733-2861 225-756-6166

Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com

Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com

Dept. Hours: M-F 7-6; Sat 7-5 championacuraparts@autonation.com

Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

Mac Churchill Acura OKLAHOMA

David McDavid Acura

F o r t Wo rt h

Aus tin

888-824-9634 817-806-0571

Don Carlton Acura of Tulsa

Metairie

Tu l s a

Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com

888-550-7278 918-664-2300

800-359-8555 504-465-8555

800-575-3553 512-401-5976 Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com

Walker Acura

Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com

Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 25


Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

www.autobodynews.com

NSF Certifies PartsChannel Under Automotive Collision Parts Distributor Certification Program Autobody News

TEXAS • OKLAHOMA • LOUISIANA • NEW MEXICO

NSF International has certified PartsChannel Inc. under the NSF Automotive Collision Parts Distributor Certification Program, a program that certifies distributors who sell automotive collision parts. The NSF Automotive Collision Parts Distributor Certification Program requires that distributors have quality management systems in place that address parts traceability, service and quality. The program helps close the gap in the supply chain between parts manufacturers and body shops and was developed in response to the needs of collision repair shops, insurers and ultimately consumers.

PartsChannel Inc., a distributor serving the collision repair industry since 1985, is one of the first companies to earn this automotive parts distributor certification from NSF International. To earn certification, PartsChannel Inc. demonstrated that it has effective records systems and inventory tracking systems to track orders and parts through the supply chain. PartsChannel Inc. also met the following criteria as required by the NSF automotive distributor program: ● an ISO 9001-certified quality management system, ● a parts traceability and inventory tracking system,

According to Consumer Reports, Subaru of America is recalling a small number of its 2012 Subaru Legacy sedans and 2012 Subaru Outback wagons due to an airbags issue. According to NHTSA, the cars have side air bags that might not deploy during a collision and increase the risk of injury to drivers and passengers. NHTSA says around 381 Subaru Outback and Legacy vehicles were manufactured last December with side air bag components that contain the incorrect propellant mixtures. The improper mixture in the

side curtain air bag initiators may prevent the safety devices from deploying during a collision. Subaru plans on notifying owners of these vehicles in early April. Owners will be instructed to bring in their vehicles to a local Subaru dealership where mechanics will replace one or both side curtain air bag initiators, free of charge. For more information, consumers can call Subaru’s toll-free customer support line (800-782-2783) and reference Subaru recall number WVZ-36 or visit NHTSA’s safety website: www.SaferCar.gov.

Subaru Recalling 2012 Outback and Legacy Models for Air Bags

NHTSA Investigating Chevy and Toyota Models for Power Windows

The National Highway Traffic Safety Administration has opened an investigation into 2006 and 2007 Chevrolet Trailblazers SUVs as well as 2007 Toyota RAV4 SUVs and Toyota Camry sedans for consumer complaints of the power windows switches on the driver’s door melting or burning. According to NHTSA, there have been 12 consumer complaints and other reports from General Motors of the master window switch on the Chevy Trailblazer melting. Several of the consumer complaints re-

port the master power window switches have led to fires in the driver’s door. The door fires occurred while the SUVs were running as well when vehicles were left unintended and “key off,” according to the NHTSA. Engineers with the ODI and GM will investigate the issue further and determine if an official recall for 2006 and 2007 model year Chevrolet Trailblazer SUVs is warranted. Consumers can file a vehicle safety complaint with the NHTSA’s website, www.SaferCar.gov.

26 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

● a defective parts procedure including a customer part complaint process, ● the ability to administer a manufacturer’s recall, and ● when necessary, a formal corrective action to complaints and an immediate recall plan. “Launched in July as an extension of NSF International’s Automotive Collision Replacement Parts Certification Program, the NSF automotive distributor certification program certifies the ability of distributors, including PartsChannel Inc., to meet rigid performance standards including having an effective system to track orders and parts,”

March 2012

said Bob Frayer, Director of NSF International’s Automotive Parts Certification Programs. “We are honored to be among the first in what we see as the most beneficial industry-wide program to help increase the professional standing of distributors,” said PartsChannel Inc. Chief Executive Officer John M. Palumbo. “We feel NSF International’s unique program, which continually monitors the stringent quality assurance processes within any parts distribution operation, will greatly benefit our customers.” For more information visit nsfautomotive.com.


Gonzo’s Toolbox with Gonzo Weaver

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician

During World War II the US used a secret type of language to send and receive messages, so the enemy couldn’t find out what they were talking about. They enlisted the help of Navajo and Comanche Native Americans as radio operators. These guys used a combination of their language and relative terms as a way to disguise the real message over unsecured radio waves during World War II. Most of the coding was done by using a native word for each letter of the message. Such as, if you were going to say the word “ARMY” they would pick one of the native words that represented a word in English with the first letter “A” and the same for each letter after that. In other words the letter “B” would be sent over the radio waves as, “Toish-Jeh” which means, “barrel” in English. So the word “ARMY” would have been transmitted something like

this: “Wol-la-chee” (Ant) – “Gah” (rabbit) – “Tsin-tliti” (Match) – “Tsah-as-zih” (Yucca) Thus the word Army would have been spelled out and easily translated at the other end. A lot of times an entire phrase could be stated with one word, or a word that was often used had a selected native word that was used as a substitute. Then on other occasions an English word was thrown in just to confuse the whole thing even more. It was quite ingenious, and believe it or not, the code was never—ever—broken. To quote General Howard Connor (while at Iwo Jima), “Were it not for the Navajos, the Marines would have never taken Iwo Jima.” Trying to sound out those four Native American words (correctly) and translate it into the actual word was easy for these guys. They understood it, it’s their language and they

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could send/translate and relay an answer faster than any machine available back in the day. They truly were code talkers. So you might ask where am I going with all of this? Well, think about it, doesn’t this sound something like the codes we have with today’s cars? It does to me. I read a code, translate it into working data, and solve a problem, all with a language that isn’t understood by everyone out there. I guess you could call me a modern day code talker. The big difference is you’ve got people with hand held scanners they bought at a local store or from the internet, and have the ability to “read” a code. Or some of them have been to a repair shop that has bought a scanner and read the codes for them. But, they can’t break the code. They can’t determine what to do with the information they have in front of them. Think about it… it’s World War II, and you’ve just copied down a message from your secret hiding spot on the side of the hill. You are about to relay the message to your superior officers. But, you still haven’t a clue what that gibberish means. It’s like reading a code on a car these days, and not having a clue what all that information means. That’s where a qualified automotive technician, (aka code talker) is needed. I have lost count of how many times a car has come into my shop with a customer standing at the counter. They have already been somewhere else, and the other shop has given them an invoice with the codes and the definition written down on it, and more than likely a big “goose egg” in the charge column of the invoice. And they still haven’t had their problem resolved. “Oh I see they didn’t charge you to read the codes… how nice of them (said a little sarcastically I might add). So, you need me to find out what it all means right?” I’ll ask. “Yes, but I won’t need it diagnosed; that’s already done,” the customer will tell me. Of course it’s already diagnosed, and you know what is going to hap-

pen next. I’m going to tell them there is a charge to trace out the actual problem and determine the reason for the fault code. Any tests that are needed or extra equipment needed to diagnose the problem is all incorporated into the diagnostic fee, which of course ends up with a customer just about to grab all their paper work and head out the door. Because, oh you know what’s coming next, “It shouldn’t cost anything to find out what’s wrong with my car, because I already had that done.” This is when I break into my “code talker” story and inform the customer of what the process takes to actually find out what that particular code means. “There’s everything from a compression check to TSB’s that need to be considered when it comes to diagnosing a problem,” I’ll tell them. Let’s face it, an oscilloscope ain’t cheap, and as far as I know they aren’t giving away these scanners, not to mention the hand tools, meters, and specialty equipment you’ll need to perform some of these tests. I realize that the code information to them sounds more like “Comanche” or “Navajo” lingo than it does plain English, but then, I’m a modern day code talker. I can read it, I can interpret it, and I can translate it into English. That’s what I’m here for. The next thing to do is make the customer aware of the level of sophistication that is needed to decipher these coded messages from the car. It still amazes me that there are still a lot of people out there who assume replacing a part will always solve the problem, and that intensive research isn’t necessary. I don’t know about you, but there are times when I have a car in the shop that looks like it is on life support with the amount of gadgets I’ve got hanging out of the hood or from under the dash, and it all started off with a simple code. (This is one of those times a cell phone or a camera comes in handy and sending a shot of the owner’s car to them so they can see what you’ve had to do to locate See Code Talkers, Page 30

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 27


Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs with Chasidy Rae Sisk

Checker Auto Body in Huntsville, AL is a small, neighborhood shop with a big reputation for quality and customer service. They like to know their customers by first name, and they offer pick-up and delivery services,

Additionally, the website details the specifics of how they determine what repairs are necessary and what they offer with their collision repairs, frame repairs, automotive painting, auto rebuilding, doors/windows and fleet body repair services. “Performing repairs to the highest possible standards, with absolute integrity, while meeting demanding timelines are the founding principles of the Checker Auto Body Repair business”, according to their website. Checker Auto Body is involved with repairs for the City of Huntsville’s Handiride and bus depots, Huntsville utilities and the Huntsville city garage. MeanAlan Andriakos of Checker Auto Body, a Huntsville, AL, while, Steve Locascio often shop that specializes in motorhome repair teaches evening computer especially for their older customers, classes at the local community coldemonstrating their dedication to lege, while Bill Goebel frequently volhelping members of the community. unteers as a chaperone and driver for Their website offers a shop “dedicated the local Catholic elementary school. to providing the Huntsville, Alabama The shop is also dedicated to preservcommunity quality body repair with ing the environment, recycling all mathe emphasis on integrity, honesty and terials that are used in their shop. value.” In discussing current trends in the The shop was founded in 2007 by collision repair industry, manager Bill Steve Locascio, Bill Goebel and Goebel notes that a positive trend has Alan Andriakos when they purbeen the improvement in the quality chased a long-running body shop after the owners decided to retire. Checker Auto Body has since built a reputation for quality repairs, superior customer service and dedication to the community. Their website is filled with information to assist the consumer needing a body repair. For starters, it informs customers that they are able to choose the body shop where they want to have their vehicle repaired and do not Co-Owner Bill Goebel need to allow the insurance company of aftermarket parts and the fact that to choose for them. parts delivery has become more Checkerautobody.com offers instreamlined. He is disappointed that formation about how auto body shops the industry has not been keeping up work, what to do at the scene of an acwith material inflation. cident and how to ensure great cus“It seems that all the price intomer service from an auto body shop. creases seen in materials over the last They also offer free estimates and ad- five years have been left to the shop vice to consumers who have been in owner to absorb; however, on the flip an accident. side, DRP involvement has also been

28 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

more streamlined and less obtrusive. I think computer knowledge and improved communication has helped that aspect of our industry,” Goebel said.

tified, and they are also current with their EPA certification. They participate in direct repair programs with Alfa and State Farm Insurance companies. Their equipment includes a Kansas Jack Magna III frame machine, Uni-cured infrared paint booth, rotary lifts, Eagle II dent repair, Robinair Cool-tech A/C machine and Lincoln 140 mig welders. Bill also notes that smart phones have become a huge advantage during the past five years, providing help in regards to communicating with customers and allowing the shop to send photos and text information quickly and efficiently. The shop uses BASF Diamont paint. They get a large mixture of vehicles, new and older models and var-

Additionally, customer expectations are quite high, even for lowcost repairs, while vehicles have become increasingly complex. Another problem is that many manufacturers are producing vehicles with proprietary SRS and ABS systems, leading to an increased cost for the consumer. Bill also notes that few young people are interested in the auto body repair industry. Noting that it is extremely rare to see a body technician under the age of forty, he believes shop owners must actively pursue the younger generation coming out of school or there will be a huge lack of qualified repair technicians in the future of the Tech Josey Corum inside the shop’s paint booth auto body repair industry. “Skilled labor is going to be very ious manufacturers. Bill Goebel much in demand with no bodies to claims “paint match will always be a fill it.” challenge in this industry. The conChecker Auto Body employs sumer does not understand that paint seven people, including office staff, has a definite ‘life’ to it. Today’s vehiwho specialize in fiberglass, metal cles can expect about ten years of fabrication, custom paint and the repaint life if the vehicle is left outside. pair of buses and motorhomes. The We always let the owner know that shop is 5000 square feet. In addition there is going to be a difference in to thirty to forty body repairs monthly, brand new paint and five, six or even the shop supplements their revenue ten-year-old paint. Once they know through their tow truck, storage facilthis up front, it is usually not an ity and paintless dent repair. As well, issue.” they offer a rebuilding service for totaled vehicles, and they possess a Checker Auto Body Repair, Inc. dealer license for wholesaling vehi6235 Mastin Lake Road NW cles. Huntsville, AL 35810 Huntsville, AL’s Checker Auto 256-489-0962 Body is ASE-Certified and I-Car Cerwww.checkerautobody.com


Parts Profiles

Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html

Jerry Ulm Dodge Chrysler Jeep, a Truly Distinctive Florida Dealer with Larry Williams

When I think of a manufacturer who has had hard times over and over, and has still survived, the first name on my list is Chrysler. Of course we know

that Chrysler is back from the brink. I would expect these dealers to be hardened, efficient and frugal, but I wasn’t expecting to be surprised. However, I was very pleasantly surprised to encounter Jerry Ulm Dodge Chrysler Jeep of Tampa, Florida. This dealer is not only a survivor; they are the largest auto parts wholesaler I have ever interviewed. This is a long term family operation, with roots deep in the community. Jerry Ulm is the son of the

original owner, and knows parts and service as well as sales. Rob Brenneke, the fixed operations manager, has been there for fifteen years. Their dealership philosophy is total service to their customers, and the service department will work on any vehicles their customers own. This dealer has earned the Chrysler Dealer of the Year award twice; and probably will again. This parts department services its customers to the tune of about a hundred thousand dollars in business every day! This is a major operation, requiring forty-five employees in two

buildings, and two managers. Their level of volume requires eighteen drivers, six days a week. But that’s not all; they also use an outside delivery service to take parts to their customers— not just in Florida, but also in Georgia, Alabama, and South Carolina. I talked to Joe Galbraith, one of the two managers at Jerry Ulm. He told me that the secret to their success was in a word: service. This dealer provides a level of service to their customer that is amazing! They will provide parts not just for Chrysler, Dodge and Jeep, but for any vehicle, from any manufacturer. They want their customers to have one-stop shopping, and will pick up and deliver any required part, no matter what it is or where it is. Countermen use email and ALLDATA systems to order parts. Their drivers will stop at other dealers on their way back after deliveries, and pick up orders to be dispatched on the

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of Magneti Marelli parts services all manufacturers and all vehicles. This enables Joe to use his overnight ordering service and provide almost any part on a next day basis. But no matter how good the support might be, the strength of a dealership is the people on the front line, and the leadership of its managers. The dedication to provide service; and to retain customers is key to their success.

This parts department staff has over 150 years of combined experience! The wholesale manager is Robert Springer, his countermen are Joe Lanzetti, Brian Garry, George Mowry, Jay Springer, Aaron Springer, and Eddie Chiovetti. The manager on the retail side is Joe Galbraith, and his countermen are John Piparo, Scott Brenneke, Adam Brenneke, Joe Scholtz, and Bill Usewick.

Joe talked to me about his countermen, their loyalty to their long term customers, and the value of their relationships. He describes them as multitalented, and well-rounded. They always want to do better, and do more. They know how important it is to be honest and up front, in order to maintain the trust of their customers. Obviously this dealer is not a secret in the Tampa area, anyone with this kind of volume would be well known. This kind of success in the parts aftermarket business, however, is not common. It is the result of long-term dedication and hard work; and takes years in the making. I would like to point out to those of you in the parts business the value of the wholesale market. To those of you who have the desire, and the determination to be successful; and to grow your wholesale market, there is no limit to the success you can achieve. Jerry Ulm is an inspiration to all dealers. All you need is a desire to provide the best service available, and everything else will follow. Jerry Ulm Dodge Chrysler Jeep is truly a Distinctive Dealer, and an example of what hard work and dedication to service can achieve.

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Continued from Page 27

Code Talkers

the cause of that simple code number.) I’m a modern day mechanic; I’m no grease monkey, nor am I the guy with a scanner who’ll read your codes and give you the definition. I’m the guy who will read the code, define it, and translate it into a solution. The cars of today are not the car of yesterday—nor are they the cars of the future. I’ve got to take care of what is here now, and that requires some understanding of the fundamentals of todays’ cars. But in order to find out what that little service light means on your dash keep in mind…you don’t need a code reader, you need a code talker.

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German Auto Parts Stamping Plant to Come to Dublin, GA

Erdrich Umformtechnik GmbH, a German company that produces metal automotive parts, has chosen to build a metal stamping factory in Dublin, GA, the company announced on January 24. According to GlobalAtlanta, the company plans to invest $39 million in building this location. Erdrich is a midsized, familyowned company that has been in business for over 50 years. It currently has two plants in Germany, one in the Czech Republic and one in China. The company mainly supplies automakers from BMW AG to Mercedes-Benz. “The company looked at several Georgia communities,” Jim Blair, the department’s director of Foreign Direct Investment, told GlobalAtlanta. “Laurens County is very strategically located from a logistics perspective, right on I-16 close to the Savannah ports and the transportation hub of metro Atlanta.” The company plans to create 178 jobs and invest $39 million to build the 130,000-square-foot metal stamping facility. The business plans to begin construction of the plant in either May or June.

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Continued from Front Page

PARTS Bill

component part that is claimed in such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured; and after the expiration of a period of 30 months beginning on the first day on which any such component part is first offered to the public for sale as part of a motor vehicle in any country, it shall not be an act of infringement of such design patent to use or sell within the United States any article of manufacture that is similar or the same in appearance to the component part that is claimed in such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured.” “Competition is the hallmark of our free market system,” Issa said. “Consumers have dozens of choices in electronics, food, service, clothing and other products – this same array of choices, across all price points, should

also extend to automotive repair parts.” Major aftermarket distributors and the Quality Parts Coalition have a vested interest in being able to manufacture and import aftermarket parts, however collision repairers in general should be leary of increasing the controversy over the quality of replacement parts specified on insurance estimates. Proponents of the bill note that car manufacturers currently control 72 percent of the repair parts market and have been steadily increasing the use of design patents. Competition is reduced and consumers end up paying more than necessary for parts they say. Because of these elevated costs, insurers will sometimes consider vehicles totals instead of paying for repairs. The result is that consumers are forced to replace a repairable vehicle with a different car, an expense the QPC argues can be avoided if the PARTS Act becomes law. The bill has also received the support of the American Insurance Association a property-casualty insurance trade organization that represents nearly 300 insurers. Noted Melissa Shelk, AIA vice president for federal affairs, “Consumers deserve access to

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Trust your order to the collision parts specialists at these fine Dealers 32 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com

high-quality alternative replacement parts. Increased competition means decreased prices and greater choice for consumers.” The AIA says that “quality” replacement parts for such collision parts including bumpers, fenders and hoods can cost consumers approximately 26 to 50 percent less. Insurance savings can be realized when consumers choose these alternative parts, but only if such parts are available. Shelk says that consumers pay an extra $1.5 billion annually because of the current patent restrictions on replacement collision parts. Not surprisingly, OEMs oppose this limitation on their design patents. In the past, groups opposing similar legislation have said that “copycat” parts are harmful to OEMs and consumers alike. At a March 16, 2010 hearing in front of the House Judiciary committee, Damian Porcari, attorney and director, Enforcement and Licensing, Ford Global Technologies, said, “The copyists want to eliminate design patent protection because that’s what they make. As soon as their business model includes engines, brakes and air

bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” See Autobodynews.com for full text of Porciari’s 2010 testimony.

SCRS Offers Repairers Digital Member Services E-catalog

The Society of Collision Repair Specialists (SCRS) is offering collision repairers its 2012 First Quarter Digital E-Catalog. It includes information regarding SCRS member benefits and information about some of the services repairers can access at a discount as a member of SCRS. “It is our hope that you will find this material to be valuable and relevant by providing you with information on products and services available to SCRS members,” said Aaron Schulenburg, SCRS executive director. “If you are a repair facility, we encourage you to share this with your friends and colleagues; if you are with an association, please pass it along to your membership.” Repairers can access the directory at http://www.zmags.com.


Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations by Ed Attanasio

When you’re painting a substantial number of luxury cars every month in eight locations and many of them are top-name brands such as Bentley, Jaguar, Porsche, BMW, MercedesBenz and Aston Martin, you need to use the finest equipment and products available. By working with the best companies, hiring the best people and committing to best practices, Global Collision in Colorado is very happy with Garmat USA, a leading manufacturer of ecologically responsible, competitively priced, and code compliant paint booths, paint mixing rooms and vehicle prep areas. Global Collision’s Chief Financial Officer Tim Bator respects the Garmat booths for their reliability, versatility and easy maintainability, he told Autobody News. “We’ve established a great relationship with Garmat over the years. We have their downdraft booths and their regular paint spray booths in all of our locations. In the past eight years, we’ve purchased a total of 16, so we’re obviously committed to Garmat and appreciate their quality, service and support.” The 3000 Series spray booths that Global Collision uses are Garmat’s top-of-the-line downdraft spray booths. “We wanted superior airflow and the best lighting we could find. With ten foot-wide doors and a 27 foot cabin, it’s easy to get even large cars in and out of the booth.” Being proactive about maintaining and regularly servicing his Garmat equipment is a big endeavor with so many locations, but Bator knows the importance of doing it right. “You’ve got to take care of your paint booths, just like you do with your car. We perform our scheduled maintenance on all our paint spray booths on a monthly basis, to ensure the longevity of the equipment. We expect 20-25 years of service out of these Garmat paint spray booths, so it’s a big investment and we want to protect it.” Bator appreciates the fact that when he has issues or questions with his Garmat paint spray booths, he can call directly on the manufacturer located in Englewood, Colorado to attain easy fast answers. “They’ve been with us from the beginning and they’ve been very supportive in getting the paint spray booths up and running and working properly. When we ask them for something, they step up and get it done for us. You can’t really ask anything more from a vendor.” Early in 2008 Global Collision made the decision to convert to waterborne paint after much thought and

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Operations Manager Tim Bator. “When we ask (Garmat) for something, they step up and get it done for us. You can’t really ask anything more from a vendor.”

consideration, George Lilley said. “This decision was not made lightly nor with great haste. The major concern to the environment is from the VOCs (Volatile Organic Compounds) which include the kind of solvents that are used in conventional paints. These solvents escape into the air thus contributing to air pollution.” The switchover to waterborne has been a big hit among Global’s painters. Bator explained, “We used the solvent for so many years because it was the industry standard. We switched for the environment and two months later we asked our painters what they thought. ‘We’re not ever going back to solvent—we love the waterborne!’ they told us. They were quickly up and running with the waterborne and the Garmat paint spray booths have worked perfectly since.” Global Collision prides itself on using an internationally accepted waterborne paint system that adheres to the strict environmental guidelines of the European Union and officially approved by numerous automotive manufacturers. All eight shops are fully adept at precisely mixing approximately 23,000 solid, metallic, and pearlescent colors while accurately matching all major current and classic vehicle colors. Established more than 10 years ago, Global Collision has grown rapidly since George Lilley started the company in 2003. With an extensive career in the collision repair industry, he founded Lilley Group-UK, and worked with the Haggie Group in Scotland, and the Royal Automobile Club of Victoria to Australia, to establish multiple shops. One of Lilley’s signature creations is his Flow Line production system,

which he used with great success in the United Kingdom and central Europe before bringing it to Colorado. “The efficiency of the shop is maximized with the Flow Line system, because all of the space in the shop is utilized completely,” Bator said. “This way we don’t need a 40,000 square-foot body shop to produce what we’re currently doing. With the paint booths in the middle of the shop, it allows us to push more cars through the system, which gives us better cycle times and makes us more attractive to our insurance partners.” “When I first came to America, I performed market research on the local repair industry and identified a considerable difference between the level of customer care; types of equipment, training and technology being used here compared to Europe,” Lilley said. “My goal was to gain a greater understanding of the American procedures and mentality and combine the knowledge with European standards. I am pleased to say that I have experienced a magnificent response from my American colleagues, and together we work successfully as a team to provide the very best the collision repair industry has to offer from around the world.” Above all, Bator explained, the key factor to the system’s success is the seamless, limited movement of each vehicle. “Strict quality control procedures are in place to ensure that each stage of the repair process is documented and accounted for. As a result of the Flow Line concept, vehicles are repaired more rapidly than the industry’s average downtime, providing customers with a more efficient, timely repair without compromising quality.”

Jake Shaw, Body Shop Manager (right) with painter Anthony Romero in front of Garmat USA 3000 Paint Spray Booth. Anthony says “He really likes painting in Garmat Paint Booths.”

Operations Manager Tim Bator (left) and Painter Dave Behlow of Global Collision. “In the past eight years we have purchased a total of 16 Garmat Spray Booths, so we’re obviously committed to Garmat and appreciate their quality, service and support.”

Garmat USA Phone: (800) 442-7628 email: sales@garmat.com website: www.garmat.com

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 33


Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World with Chasidy Rae Sisk

Prestige Auto Body in Garwood, NJ always strives for excellence in their repairs and customer service. Owner Sam Mikhail’s efforts were recently brought to light when he was inducted into the AASP/NJ’s Hall of Fame in November, 2011.

(l to r): Bruce, Selvio, Frank, Sam, Chris, Morisio and Bill

About this, Mr. Mikhail states “It was a surprise to me. I’ve been on the board for a long time, but I am a minority shop when it comes to DRPs. I’ve been active and vocal when it

came to DRPs and steering so I know I am not the most popular guy among the DRP shop owners, so for me to get the award never came across my mind. I appreciate the honor and the people that nominated me. I know that my effort and hard work did not go unnoticed.” He is also happy with the fact that several local newspapers published the story where consumers can see that he practices what he preaches. Sam Mikhail attends the AASP/NJ tradeshow every year because he feels it offers great information about the industry. As a veteran in the auto body industry, Sam Mikhail sees many negative trends occurring lately. Because shops are being squeezed by insurers resulting in a lot of shortcuts and the use of inferior parts and materials, bad repairs are predominant in the industry. Many insurers overlook proce-

dures that need to be done, changing or altering data to fit their needs. Because of this, he believes many existing shops will go out of business. New Jersey has seen a decrease from 1700 to around 1200 shops in the past four to five years. Mr. Mikhail believes this is due to the need for up-

Prestige Auto Body owner Sam Mikhail

dated, high-priced equipment as well as the conversion to waterborne paint and changes in car designs. Combined with depressed labor rates and underpayment for materials, this will make

Give your customers what they deserve... The Best.

it difficult for a lot of small to medium shops to stay in business. Mr. Mikhail also notes that little new blood is coming into this trade. Most young people are going into other industries where they will be better compensated for their labor, leaving the auto body industry with an aging population. He believes insurance companies are driving this trend because they are looking to lower short-term costs without worrying about how this will affect the future of the industry. Prestige Auto Body does not participate in any direct repair programs, and Mr. Mikhail has no plans to do so in the future either. He is very outspoken about his concerns with the way direct repair programs dictate the materials used and result in lower quality repairs. Prestige Auto Body works for the consumers, not the insurance comSee Prestige Auto Body, Page 38

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NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances In a letter to State Farm CEO Edward Rust Jr., Don Harvey, of International Collision Service in Englewood, NJ, questions why State Farm does not acknowledge cost accounting programs and practices in setting paint allowance rates. Harvey has previously contacted senior State Farm management to no avail. His letter follows: Feb 15, 2012

State Farm Insurance Co. Mr. Edward B. Rust Jr. One State Farm Plaza Bloomington, IL 61710 Dear Mr. Rust,

Please take a moment to look at an issue regarding customer satisfaction and a “Good Neighbor” responsible commitment to proper repairs. Paint material has been an issue often questioned and not properly acknowledged. Several years ago the Department [of Banking and] Insurance

Commissioner Steven M. Goldman issued a Bulletin #07-20 (copy enclosed for your review) encouraging insurers to utilize paint cost accounting software programs and manuals. Just after the issuance of this bulletin, State Farm (Northern NJ) changed their paint calculation from a multiplier of $23.00 per paint hour to $28.00 per paint hour. That was November 2007. Since that time, as we all know, all oil-derived product prices have dramatically increased, however State Farm has not acknowledged (NJ office: Mr. Charlie Holmes) any legitimate paint cost programs or software, holding [instead] to their antiquated $28.00 per hour calculation with no deviation. Automotive paints used on today’s advanced vehicles require many different tints to achieve the look and appearance duplicating the original finish. Therefore all pricing cannot be properly and FAIRLY determined by one multiplier, this is why the paint cost accounting software programs are so important: FAIRLY compensating the repairer

for materials used on the specific vehicle (color) being repaired. Mr. Holmes has repeatedly stated that State Farm holds true to their survey studies. What is interesting about that is twofold: 1) State Farm (northern NJ) hasn’t sent anyone out to survey the shops in many, many years, leaving it to the shops to call State Farm and get an authorization # before being able to even get to the survey. 2) I find it interesting that if State Farm only uses their survey to change rates and materials, why after a short time and no apparent survey, did the multiplier change in late 2007 after the Bulletin issued by the State of New Jersey, from $23.00 per hour to the current rate of $28.00 per hour? Most insurance companies are acknowledging the cost accounting software programs plus a mark-up as the programs use an average COST to the repair from the suppliers. In closing I hope that you will review this letter and change the way State Farm, NJ, is conducting business and [have] The Good Neighbor

do the right thing, properly and fairly returning vehicles to pre-accident condition. Respectfully,

Don W. Harvey International Collision Service Englewood, NJ, 07631

(Copy of Mitchell Refinishing Calculator Notes enclosed for your review.)

To see additional attachments: NJ DOI Bullentin #07-20 and the Mitchell Refinishing Calculator Notes, search the article title at autobodynews.com. If you have any relevant information submit it to Don Harvey at dwharvey@1ics-usa.com, or write: Don W. Harvey international collision service 328 South Van Brunt St. Englewood, NJ 07631 Phone: 201.567.2124 Fax: 201.567.6644

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the landlord, cleaned the shop, replaced the old paint booth and added a frame machine. It took two years for people to really return to the shop since many consumers were afraid that the old owner was still in charge of the shop, leaving Sam with a struggle to rebuild his reputation. In order to do so, he wrote a detailed estimate on every car even if he knew he would not get the job, explaining to the customer what needed to be done to get the job right. He refused to take any shortcuts and gave every car the same amount of care, regardless of age, model or value. Any customer problems were addressed promptly; “we always gave the customer more than they paid for.” Prestige now has an excellent reputation in the Garwood NJ community for superior repairs and customer service. This Garwood, NJ shop uses Spies Hecker paints on a mixture of new and older model cars. Mikhail notes that many of the older cars end up being totaled, but if these same cars are sent to DRP shops, they will be repaired many times until the cost exceeds the car’s value, leaving customers with nothing more than

Continued from Page 34

Prestige Auto Body

panies, and their “number one concern is to restore cars to its pre-loss condition as close as humanly possible.” In May 1979, Mikhail opened Prestige in Garwood. He had owned a

Prestige Auto Body is located in Garwood, NJ, on South Avenue

franchised auto body shop for about eighteen months in Roselle in a difficult to locate area. The shop in Garwood was originally owned by a man who charged $300 for nearly every job, and when he left the area, leaving the bank with an unpaid $80,000 loan, the landlord bought the shop from the bank. Mikhail took the shop over from

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junk. When asked whether he has any color matching problems with Spies Hecker, Sam Mikhail insists “there is no such thing as a problem in color match; if you try hard enough, you can match any color.” Prestige Auto Body boasts a 11,000 square foot shop and six technicians. The shop is complete with

Spray booths on the shop floor at Prestige

two downdraft spray booths, two EZLiner frame machines, one Chief Goliath frame machine and two Genesis Electronic Measuring systems. Additionally, the shop utilizes two Pro-Spot welders, three mig welders, one Hunter wheel alignment machine, a stationary lift, a portable lift and a flatbed. This shop repairs between fif-

teen and twenty vehicles each month, and additional revenue comes from DV appraisals and offering an expert witness service for local attorneys and consumers. The shop also offers Diminished Value Assessments. The technicians and estimators at Prestige Auto Body are ASE Certified, and the shop is I-CAR Certified. Besides his involvement with AASP/NJ, Sam Mikhail was also the first president of the Garwood Chamber of Commerce and is currently the treasurer. Prestige is also a member, as well as the founder, of the Goldcar Collision Repair Network. Out of concern for the environment, Prestige Auto Body is currently under contract to convert to solar power in the shop. Prestige Auto Body 7 South Avenue Garwood, NJ 07027 908-789-2020 www.goldcar.com/prestige

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GM is Back on Top As the World Number One

General Motors said it is once again the world’s largest automaker with global sales of 9.03 million vehicles for a record $7.6 billion in 2011. That’s 11% higher than Volkswagen. In 2011, Volkswagen took second place with record global sales of 8.16 million, up 14 percent from the year before. But, it seems GM included sales by affiliates and VW did not. Toyota finished fourth in 2011 with 7.9 million vehicles sold. Toyota said in December that it plans to sell 8.48 million vehicles in 2012.

Chrysler Recalls Police Cars

Chrysler Group LLC recalled nearly 10,000 Dodge Charger police vehicles built last year due to overheating issues that may lead to headlamp and brake failure. The recall affects 9,688 Chargers for the 2011 and 2012 model years. The problems could lead to a loss of visibility or braking ability, increasing the risk of a crash, according to a NHTSA posting. In some police cars, the low beam headlights may fail because of an overheated bulb harness connector. In other vehicles, the antilock brake and electronic stability system may stop working due to an overheated power distribution center.

Chrysler Reports First Full Year Profit Since Crisis

Chrysler Group LLC reported a net profit of $183 million for 2011, swinging back into the black from a loss of $652 million in 2010. Higher sales of Jeeps and other new vehicles propelled Chrysler to its first annual net income since 1997, capping a pivotal turnaround that many thought would never happen. Chrysler’s U.S. sales increase of 44 percent last month surpassed eight analysts’ average estimate for a 32 percent sales gain. The company’s free cash flow was $1.9 billion last year, and has forecast a $1 billion free cash flow for 2012.

Nissan Recalls 2012 Versa

NHTSA says 36,608 2012 Nissan Versas failed to comply with the requirements of federal motor vehicle safety standard No. 114 titled “Theft Protection.” NHTSA discovered that due to interference between the shifter rod and the shift knob, the vehicles may be shifted out of the park position without depressing the brake pedal. The agency fears the operator can inadvertently shift the vehicle into gear without the brake pedal being depressed, increasing the risk of a crash or injury to a nearby pedestrian. Nissan told NHTSA it plans to begin notifying owners.

Phoenix Auctions Show Collector Cars’ Comeback

Consumer Reports Says Brand Perception Narrows

KBB Gets New President

DuPont Paint Unit Bidding

RM Auctions were among six major classic and collector car auctions in Arizona in January. Like the rest of the car industry, collector cars are coming back. RM Auctions held its 2012 sale January 19-20 at the Arizona Biltmore Resort in Phoenix, resulting in $25.6 million in sales and a 90% sell-through rate. Their top seller was a 1957 Ferrari 410 Superamerica Scaglietti Coupe at over $1.8 million. Also a 1973 Ferrari 365 GTB/4 Daytona Spyder for $990,000, and a 1959 BMW 507 Roadster for $990,000.

Kelley Blue Book announced Feb. 14 that president Paul Johnson has resigned from his position effective immediately. Taking on the role as president for KBB will be AutoTrader.com vice president Jared Rowe. Rowe is currently vice president of product management for AutoTrader.com in Atlanta, Ga. Rowe’s new role is effective immediately. Kelley Blue Book was acquired by AutoTrader.com in October 2010. Rowe also held positions at Autobytel in business development and at Central Atlantic Toyota Distributors as a service and parts manager.

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For years, Toyota, Ford, and Honda have been the top names in Consumer Reports’ annual Car-Brand Perception Survey. They are still at the top, but they have seen double-digit drops in their scores. That has narrowed the gap between the top names and other brands. Only two points behind Honda this year was Chevrolet, followed by MercedesBenz, BMW, Volvo, Cadillac, Lexus and newcomer Tesla. “Dramatic events in the automotive industry seem to be affecting how consumers view auto brands,” said deputy editor Jeff Bartlett. DuPont has launched the process to sell its automotive paint unit, according to the Reuters news agency. DuPont is accepting bids for its automotive paint division. The report listed several private equity firms as being interested. It also claimed that Credit Suisse Group, serving as advisers, distributed information material among possible suitors. The business unit could garner more than $4 billion. It was reported in October that DuPont had thought about such a sale, but the latest is that the company has started taking bids. DuPont said it does not comment on rumors or speculation.

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Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Barrett-Jackson DIY Event Draws Fans and Future Body Techs with Rich Evans

I was out at Barrett-Jackson He told me “we’ve got a in Phoenix last month with 12,000 square-foot DIY a good buddy of mine, Alan pavilion” inside a tent and Taylor, from Entertainment we’re going to have a Radio. I wrote about Alan project car there. It doesin last month’s column (aun’t matter to me what car tobodynews.com/columI’m working on because nists/rich-evans.html in regardless I’m going to try Thomas Franklin case you missedwith it) but that to do something cool with was about SEMA 2011. In it. When I found out it was Poster Phoenix at the Barrett-Jackan 1972 El Camino I sugson auctions Alan put together somegested a toned-down concept. Something clean, more modern. You know, thing called A World of DIY (as in ‘Do it Yourself’). simplify the car and give it that old Alan reached out to me and asked school look, a couple of rally stripes me to come there and show off some and choose a great color, add some tools and demonstrate building a car. I rims, and we’ve got a car that brings said ‘yes’ without hesitation, “I’ll pack back that 70s feel and some muscle. up some tools and drive out there and I put a concept together, sent it see what you guys have put together.” off to Alan, and he’s got feedback

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right away. “Dude, can you put this blue color on?”, including a paint photo. We collaborated on a concept and a design. I like working this way because when I get there everybody’s not going to ask me what I’m building (because they’ll already have seen the concept.) I don’t like having to sound like a broken record answering the same question over and over and over. So for the week out there at Barrett-Jackson we’ve got participation from Craftsman, Chevrolet in the tent with us, we’ve got E-bay Motors with the modJOBS 2012 Mustang we did last month and I’ve got my Solution Finish. So this is a good chance for me to get out there, build a car, show off some new tools, some new products and connect with the public

and the garage builders. I didn’t know what to expect for a tool supply for DIY builders so I brought as much as I could cram in my truck and decide to figure it out from there. When we get

there and see the El Camino I’m thinking in my head, you know I’ve built cars on TV in 72 hours in front of millions of people, that’s already been done (Car Warriors). This event will be live, which is cool but I tell Alan “I want to shoot from the hip and see if I


can connect a little bit more with the end user and the garage builders by having the public work on the car.” 3M gave us some products which is great because here’s a chance to put product in people’s hands who haven’t used it before. Craftsman’s also got their tools and equipment there. I’m thinking “what’s better?: someone watching me use their tools or putting their tools in a potential consumer’s hands?” It just makes it that much more real. A lot of people will never know they can or can’t do it if they don’t try. So I’m going to bring some process out here and guide people through taking the car apart, stripping the car down, modifying it, pulling dents, even welding for beginners. I’ve got 8-year-old girls and boys that came up, got their hands on a welder for the first time. Of course I gave them safety equipment— which is also a great learning opportunity for them—and helped them do the job. So they walked in the tent not knowing they were going to weld or pull a dent and they walk out knowing something about how to weld and pull a dent. The look on their faces was ‘how cool is that’? It really took me back to when I was young and somebody introduced something new to me. Exposure to new processes is so important in our business. There are all kinds of ways to build a car and hundreds of different processes, but to learn from experienced builders the process of grinding and feathering and stripping the car down manually is invaluable for someone who’s new to everything. Not just newbies but also connecting with the garage builders. The message to them: If you don’t have it, use what you have because you don’t have to have all that expensive equipment to build a car. Back to the event: The news coverage was over 45 minutes broadcast, with 10 minutes on Channel 3 live, and then they did a 6 minute piece at night and then we did Channel 12, 5, CNN. If you search ‘Barrett-Jackson DIY Rich Evans’ on Youtube, you can watch a 2-minute piece that they put together. If you go to DIYlive.tv, we’ve got many segments on there. If you click through that site you can see all the people that participated. Craftsman, GM, 3M, Solution Finish, we had new types of nail guns available, we had a panel bonding product out there from 3M, different types of sandpaper, Bondo™, the dynamic mixing system, all sorts of products.

We had a group of Wyotech guys out there. WyoTech provides students with repair training in automotive technology, autobody, diesel, HVAC, chassis fabrication and high performance engines, street rod and custom builds. John and his crew—there were about five people from Wyotech there—were all heavily involved with the project.

The Crew from Wyotech

Equipment was a factor. We only had one air hose and one welder so we could only go so fast, which was actually good. We could control and

make sure everybody’s getting taught and stay safe. The whole concept of DIY at the show was a hit. I heard Barrett-Jackson’s head count through the door was 27% more than any other year. So they set records. The news coverage and the big hype about ‘hey come on out, get your hands dirty, help build this car.’ The car really was being built by the public and everybody there was invited to get involved. Everybody who came by touched or fixed a dent or welded a hole, or pulled a part off or sanded on it. They’re part of this build. It was great to see them all building the car, not just me. These photos tell the story too but to best appreciate this whole idea that Alan made happen, you have to go visit DIYlive.tv to see video of everyone that was involved with this build. It was so successful we’re going to be doing more of these. I’ll let you guys know more about it, or just follow us on DIYlive.tv. You can also go to richevansdesigns.com or huntingtonbeachbodyworks.com. Also, go to solutionfinish.com or watch our video on Youtube by searching ‘Solution Finish Rich Evans.’ The types of projects I’m doing this year are really connecting with the end-users and trying to bring my world to their world. It’s just so rewarding to see an 85-year-old woman

pulling dents, or an older dentist jumping in and working on the car. Also, they’re able to go home and take the techniques and steps that I taught them and actually be able to work on their own car. So with all that said, another great project, you’re going to hear more about it, we’re going to continue to tour this car to the next two or three Barrett-Jackson shows. I don’t have details on those yet but we’ll definitely be in Orange County and Las Vegas. So if you guys get a chance stop into the DIY Pavilion Craftsman Experience and check us out on the road. We’re going to be taking this car—stripping it down, cutting the roof off of it, painting it, cutting rust off of it, dropping an LS9 motor in it that Chevy has donated (the LS9 crate motor costs about the same as a base 2010 Ford Mustang) and Steel Rubber donated the rubbers for the car. 3M donated the product for the car. Craftsman provided the tools for the vehicle. We’ve got Woodward Fabrication teaming up with us along with a whole other list of sponsors and equipment so it’s going to allow us to really travel around and let people get involved and connect with more garage builders. So I’m really pumped up about this. I’m working on a new TV show so stay tuned. Go to Rich Evans Designs’ Facebook page, and like it, that way you can keep up with everything I’m doing. I went to the Grand National Roadsters Show, I did the NHRA, and I’m heading up to the Autorama in Sacramento, which I haven’t been to since I was 6 years old. I had some time in Sacramento and last year when I did CarWarriors I connected with a shop called Gearhead Garage. They actually beat us Allstars on the Corvette builds and I’m going to go up and visit them. They’ll have the Corvettes we did on the show there. That’s my old stomping grounds and I’m going to have a blast. 2012 is going to be a great year. I’m going to be traveling, building cars on the road, doing all kinds of cool stuff. I never know what’s around the corner for me. I’ll keep you guys posted on the DIY experience. Go to DIYlive.tv to learn more about it. Also search ‘Barrett-Jackson DIY Rich Evans’ on Youtube and watch that two minute clip. I think you guys will be stoked to see that. You can also see all the news coverage on DIYlive.tv. Keep wrenching. Keep building. I’ll see you guys next month.

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 41


Toyota to Build Compressor Parts Plant in Pendergrass, GA

Toyota Industries Corp. announced plans to open a $350 million automotive parts plant in Jackson County in northeast Georgia, creating 320 jobs, in early February. The plant will create automotive compressor parts and will be built near a related assembly plant off I-85 in Pendergrass, GA. The automaker expects the plant to be completed in late 2013, according to the Atlanta Journal-Constitution. “In opening this new Georgia manufacturing facility, Toyota Industries Corporation sends a very clear message about its confidence in our state’s ability to help them remain competitive in global markets,” Gov. Nathan Deal said in a news release. “Projects such as this underscore Georgia’s record of success in attracting international investment to our state,” Chris Cummiskey, commissioner of the Georgia Department of Economic Development, said to the Atlanta Journal-Constitution. Courtney Bernardi, director of economic development for the Jackson County Area Chamber of Commerce, expected the plant bolsters the area’s manufacturing base and to pay higher than the county’s average.

Georgia Northwestern Technical College Considers Campus in Ringgold, GA Georgia Northwestern Technical College, a two-year technical college located in Rome, GA, is considering building another campus in Ringgold. Ringgold, near the Georgia-Tennessee border, is a small town of about 2,500 people. According to the Chattanooga Times Free Press, college and county officials are considering building the campus on 50 acres owned by Catoosa County across from Rollins Industrial Park in the southwest area of town. According to the Associated Press, College President Craig McDaniel estimated it would take only a year to 14 months to complete construction once land is available. The technical college's focus is on careers in the automotive, aviation and other commercial industries. City officials speculated that the Ringgold campus would be centered around its automated manufacturing lab, which would train students to work with robotics used in automotive factories. This campus would be the eighth location for the technical college, with seven locations already in Rome, Calhoun, Rockmart, Rock Spring and Dalton. For more information please visit www.gntc.edu.

NABC Plans At Least One Vehicle Gift in Each State This Year

The National Auto Body Council’s (NABC) Recycled Rides® program, now in its sixth year, set a goal to gift at least one vehicle in every state in the country in 2012. NABC member collision repair facilities nationwide have provided hundreds of families and service organizations with the gift of reliable transportation. “So many of us take our transportation for granted,” noted NABC Executive Director Chuck Sulkala, “but the fact of the matter is, reliable transportation is more important than ever in these tough economic times. A dependable vehicle literally can provide a family a new lease on life.” In an effort to build upon Recycled Rides’ growth, the NABC is slightly refining its marketing approach. “This year, along with working directly through shops, we are reaching out to individual charities to help them meet their missions,” said incoming Recycled Rides Chair Jim Ocampo of DuPont Performance Coatings. “You could say that we’re working the program in reverse.” Indicative of this new approach is the fact that Donna Miller has joined the NABC’s Recycled Rides commit-

tee as the liaison between NABC and Family Promise, a charitable organization with 172 affiliates across the U.S. that is committed to help homeless and low-income families achieve sustainable independence. The year began auspiciously on January 11, 2012 during the National Auto Body Council’s fundraising golf tournament held in Palm Springs, Calif. Thanks to Pacific Collision and Hertz Rent-A-Car, and working through Variety Children’s Charity, Recycled Rides donated a 1999 Ford Freestyle crossover wagon repaired at the end of 2011. “Participating in the Recycled Rides program this year was a great experience for our entire team,” said Steve Vetel, owner of Pacific Collision Centers. “Having the ability to help a family in need gave everyone in our organization a great sense of pride and accomplishment. We look forward to participating in future gifting events.” The first Recycled Rides vehicle repaired in 2012 has been donated by GEICO Insurance and has landed at Caliber Collision Centers in Round Rock, Texas. It is being refurbished for the Temple, Texas Family Promise affiliate.

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Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud

Writing in the Baltimore Sun, Justin Fenton has reported on the federal police kickback trial in which testimony implicates a shop owner and about 60 Baltimore police officers. Body shop owner Alex Moreno, of Majestic Auto Repair, has already plead guilty to his role, said he was approached in 2008 by a Baltimore police officer with an idea to help boost sales at his fledgling Rosedale business. The officer said, in exchange for a cut, he and fellow officers would funnel cars to the shop. According to police and federal prosecutors, the officers were circumventing the city’s system of authorized towing companies by referring cars to Moreno in exchange for payment. Majestic would often increase damage to the vehicles by smashing side panels with poles and breaking off mirrors to increase payouts from insurance companies, Moreno testified. Soon Majestic Auto Repair was getting customers almost exclusively from city police. Moreno testified Feb. 14 in federal court that more than 60 officers would ultimately get in on the scheme, receiving $300 for each referral. Business grew so fast that he

had to expand to new lots to store all the cars. In fact, growth was so fast that Majestic struggled to stay profitable, Moreno said. They often paid officers to bring their own cars in for repairs, did not require other customers to pay deductibles, and paid for rental cars. Moreno said the idea to pay police for referrals was hatched in 2008 by Officer Jhonn Corona, his neighbor and shop customer. Corona spread word of the plan through the department, Moreno testified, and officers called when they encountered accidents. Corona pleaded guilty to conspiracy and extortion last fall. Moreno also testified that a city officer named Osvaldo Valentine falsely reported that his personal vehicle had been stolen. Moreno said the vehicle was at his shop and that Valentine had reported it stolen because he couldn’t make the payments. Valentine pleaded guilty to conspiracy and extortion last fall. Moreno testified that at one point, his tow truck drivers joined another company and some of the officers started working with them instead. Those drivers have not been charged.

CREF Sees Record $4.1 M in Industry Donations for 2011

The collision industry came to the aid of its future workforce in 2011 by providing a record $4.1 million in donations to secondary and post-secondary collision school programs and their students through the Collision Repair Education Foundation. Through monetary and in-kind product donations, the 2011 Collision Repair Education Foundation donors helped to provide student scholarships, student tool grants, school equipment and supply grants, the 3rd annual Ultimate Collision Education Makeover school grant, and much more. Since 2008, when the Collision Repair Education Foundation became a purely philanthropic organization, the organization has provided $7 million in school and student support through industry donors. “The fact that the Collision Repair Education Foundation provided more support to collision schools and students in 2011 compared to the combined totals of 2008 through 2010 displays that the collision industry is one that cares for its future professionals,” said Scott Kruger, Collision Repair Education Foundation Executive Director. “This announcement of support

was made possible exclusively through our industry supporters and donors. On behalf of our staff, Board of Trustees, and the collision students we support, we would like to thank our continued supporters and donors.” “The Collision Repair Education Foundation has come a long way since becoming a purely philanthropic organization in 2008. The donation results of 2011 display that many industry members believe in the Education Foundation’s efforts to support collision schools and students,” said Doug Webb, Chairman of the Collision Repair Education Foundation Board of Trustees. “I want to thank the Staff for all of their efforts during 2011, all of the Board of Trustees, and of course, all the donors for their support during the year.” For a complete listing of the Collision Repair Education Foundation’s industry supporters, visit www.CollisionEducationFoundation.org. Inter-industry organizations and individuals who are interested in supporting CREF in 2012 should contact CREF Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or at 847-463-5244.

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U.S. Auto Industry Bullish on 2012, Sales up 11%

2012 is off to a good start for the U.S. auto industry as reported sales for January outpaced the best industry forecasts. Sales overall were up 11% at an annualized rate of 14.2 million units, the best since August 2009. Chrysler Group was up 44% and Ford Motor up 7.3%. GM sold the most units but sales declined 6%. VW Group was up 40%. The disasters in Japan seem to be digested with Mazda up 68%, Toyota up 7.5%, Honda up 9.3% and Nissan up 10%. Hyundai-Kia is up 20%.

California Law Demands More Low Emission Vehicles

The California Air Resources Board (CARB) called for a steep ramping up of zero- or very low-emission vehicles sold in state from 2018 onward. The goal is for them to comprise 15.4 percent of all vehicles sold by 2025, up from less than 1 percent today. The ruling called for a slashing of tailpipe emissions from the rest of the passenger vehicle population beginning sooner in 2015 and extending through 2025. At least one of every seven vehicles sold will be a plug-in hybrid, extended-range electric vehicle or pure battery-electric vehicle, or BEV.

Chevy Volt Sees Stalled Momentum, Also Optimism

The Chevy Volt hasn’t quite caught on as expected by many. Although GM has plans and could produce as many as 60,000 Volts in 2012, GM will adjust production at the Hamtramck plant in Detroit to meet demand. Of the planned 60,000, about 75% or 45,000 are for the U.S. and the rest for Europe, built as the Opel Ampera, and China. GM has said they still don’t have a clear sense of how much demand there is for battery-electric vehicles. the government closed its investigation of post-crash fires in Chevrolet Volt batteries after further testing proved the changes General Motors has implemented better protect the batteries. GM announced in early January that it would retrofit 14,735 Volts already built and make permanent changes on the Volt assembly line at the DetroitHamtramck plant. In January GM boss, Dan Ackerson, faced Congress to defend the car and calm safety concerns. He also firmly stated that the car was engineered with plenty of technology and safety but was “not engineered to be a political punching bag.” GM is running full page newspaper ads and TV spots in a reputationrebuilding effort for the Chevy Volt.

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Feds Escalate Jeep Airbag Investigation

Honda’s Ridgeline Recall

Second Toyota Driver’s Door Fire Probe Launched

MOPAR, Chrysler’s parts division, celebrated it’s 75th anniversary at their Performance and Accessory Lab in Center Line, MI with famous drag racer, “Big Daddy” Don Garlits blowing out the candles on the cake. MOPAR’s first branding was on antifreeze in 1937. Inspiring a great deal of loyalty, there are more than 400 MOPAR clubs worldwide. Four new special edition Mopar vehicles were unveiled, including the Chrysler 300, Fiat 500, Jeep Compass and even the 2013 Dodge Dart, not in showrooms yet.

Honda is recalling certain 2011–2012 Ridgeline vehicles for a discrepancy between the spare tire and the information on the vehicle’s tire information label. Honda Ridgeline trucks sold in the United States are fitted with a compact spare tire and, in some cases, placards may incorrectly indicate that the Ridgeline came with a full-sized spare tire. Honda will either provide Ridgeline owners with a spare that will match the information provided on the vehicle’s placard or it will install a new placard that reflects the spare tire installed by the factory. Tire pressure may not be correct.

The Jeep Liberty SUV is getting greater scrutiny from Federal safety regulators after 50 people reported they were hurt when the air bags inflated without involvement in a crash. The NHTSA started investigating Liberty SUVs from the 2002 and 2003 model years in September. There have now been 87 complaints, with 50 of them resulting in injury. Chrysler hasn't been able to nail down a single cause of, or even a single protocol for the problem; the airbags have deployed on startup and when the car is running.

Federal safety regulators are investigating fires in the driver’s side doors of Chevy TrailBlazers, the second such probe within a week. The latest inquiry involves more than 309,000 TrailBlazer SUVs from the 2006 and 2007 model years. The fires began in the power window switch or related electrical parts, the NHTSA said. U.S. safety regulators had opened aninvestigation into consumer complaints of driver’s side door fires in 2007 model year Toyota Camry sedans and RAV4 crossover SUVs.

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Study: 96% of All Repair Shops Recycle Scrap Metal Auto repair shops are playing a key role in protecting the environment with 96 percent reporting they recycle the scrap metal from automotive components, according to a study done by the Automotive Aftermarket Industry Association (AAIA). Shops are recycling the scrap metal from many auto parts, including alternators, brakes, engines and transmissions. The volume of material recycled annually in the United States includes 74 million metric tons of iron and steel, 4.7 million metric tons of aluminum and 1.8 million metric tons of copper, according to the Institute of Scrap Recycling Industries (ISRI). “Scrap metal recycling has an extremely positive impact on our environment,” said Rich White, senior vice president, AAIA. “It conserves natural resources, reduces greenhouse gas emissions and air pollution, saves energy and minimizes the amount of waste sent to landfills.” According to ISRI, recycling one ton of steel conserves 2,500 lbs. of iron ore, 1,400 lbs. of coal and 120 lbs. of limestone, and the energy saved using recycled materials versus virgin materials is up to 58 percent for iron and steel, 92 percent for alu-

minum and 90 percent for copper. If the ferrous scrap that is recycled in the United States were put into rail cars, the train would stretch 11,349 miles, nearly halfway around the world. In addition to recycling scrap metal, automotive aftermarket companies, including auto repair shops, manufacturers, distributors, retailers and jobbers, routinely recycle tires, batteries, used oil and oil filters, parts cleaning solvents, plastics, cardboard and paper, a/c refrigerant, dunnage and wood pallets. The study is part of AAIA’s initiative to illustrate the automotive aftermarket industry’s widespread efforts on behalf of the environment. The information is presented in AAIA’s “Driving Toward a Cleaner Environment: The Automotive Aftermarket’s Green Story,” in the short video, AAIA Green, and in a Green Snapshot. For more information, visit www.aftermarket.org/green. AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. AAIA represents more than 100,000 repair shops.

This Year’s Chicago Auto Show Used New Media Technology

The Chicago Auto Show (CAS) used a series of unique and creative social media events and formats to inform and engage attendees at the 2012 show, which took place February 10–19, 2012. It is the first auto show in the U.S. to use such a complete package of social and digital media, highlighting the importance of these mediums for consumers and attendees. “We’ve used various forms of social media before, but we realized that we could do so much more than any other show to engage social media and excite consumers,” said Dave Sloan, President of the Chicago Automobile Trade Association. “In order to create this unique package, we hired Vivid Ascent, an integrated marketing agency that specializes in social and digital media. We have partnered with them to leverage their social media, video and creative skills in a way we have not seen in other U.S. auto shows.” Some of the unique social and digital media programs that were used in this year’s show included: 1. Daily “Webisodes” that share updates of special programs, contests and events that will be highlighted on the CAS website and distributed to social media

2. A “First Look for Charity” menu tour for food bloggers and digital influencers that cover the Chicago food industry previewing the show’s annual charity event that is open to the public 3. A Blogger Sweepstakes specifically designed for bloggers to invite their readers to win an exclusive auto show experience 4. Facebook photo contest, called “How Sweet is Your Ride?” allowing followers to upload photos of themselves with their favorite vehicles and vote for the winner, who received a VIP Package 5. A special Foursquare page for checking in at the show 6. A Social Media Day for digital influencers and bloggers to preview the event before the public 7. A Drive-In Program designed for select digital influencers and bloggers toOriginal evaluate new vehicles BMW Parts 8. Unique Digital Media Releases containing video and digital assets providing news updates throughout the show bmwusa.com 9. Twitter updates providing realtime news and information throughout the show Original BMW Parts “We wanted to make this year’s show more exciting for the attendees,” Sloan continued. bmwusa.com

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Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply

Insurance Auto Auctions (IAA), a wholly owned subsidiary of KAR Auction Services, announced an agreement with Chen Jia, which will import U.S. salvage vehicles to China for recycling. This is expected to impact the number of salvage vehicles available to U.S. rebuilders and repairers. Chen Jia is a wholly owned subsidiary of Jiangsu Chenlong Resource Recycling Development Co. Ltd. in Zhangjiagang, Jiangsu, China. Chenlong Recycling is one of the first companies to obtain one of only a few recycling permits from the Chinese government, IAA said. “This agreement helps us achieve our growth strategy by expanding our global buyer base in a region with a fast-growing need for scrap metal,” said Tom O’Brien chief executive officer at Insurance Auto Auctions, Inc. “We are pleased that our long relationship with Chen Jia has added tangible value for vehicle sellers at our auctions. Their initial purchases at our locations along the West Coast have already created increased competition for vehicles and may eventually expand throughout the greater United States.” In 2008, when IAA first met with Chenlong Recycling in China, plans were drawn for them to build a multimillion dollar recycling center in Zhangjiagang. Today, the recently completed facility is capable of processing hundreds of thousands of tons of scrap iron. They are the first in China to complete the installation of a shredder built specifically for the processing of scrap steel that includes automobiles coming from the United States and other countries. Through this new agreement, IAA has the ability to be a major salvage provider to this operation - specifically, lowerend vehicles for the purpose of recycling. “There are several reasons why we chose IAA, including their 30 years of expertise in the salvage aucwww.autobodynews.com tion business and their global outlook,” said Gu Sheng, President CHECK ITLong OUT! of Jiangsu Chenlong Resource Recycling Development Co. Ltd. “The management team at IAA has been dedicated to seeing scrap vehicles legally enter the China market and their support of our efforts has been both encouraging and instrumental in To advertise helping us shape our business model the U.S. Second, IAAat: is clearly a callinAdvertising Sales market leader and our relationship 800-699-8251 with them will help ensure our ability e-mail: to source the salvage vehicles we advertising@autobodynews.com need to meet our production demands.” www.autobodynews.com One of the best results of recycling metal from salvage vehicles is

NHTSA Opened Ford and GM Van Investigations in January

The NHTSA opened separate investigations into vans made by GM and Ford in January. GM is recalling some 2012 Express and GMC Savana vehicles made from June 2, 2011, through October 17, 2011. The second stage of the dual-stage air bag will not inflate in a severe frontal impact. The air bags fail to conform to the requirements of federal motor vehicle safety no. 208, “occupant crash protection.” Another GM investigation involves about 17,000 2003 Chevrolet Express vans with a door behind the driver’s side. On these vans, the fuelfiller pipe is routed differently, going through the rear wheel well, which the agency said apparently exposed it to road debris and spray. The normal configuration for these vans is with side door behind the front passenger. The Ford investigation involves about 63,000 2004 Ford Freestar and Mercury Monterey minivans. The

that it saves energy, conserves natural resources, and enables steel production with low pollution levels. According to the Institute of Scrap Recycling Industries, recycling one car conserves 2,500 lbs. of iron ore, 1400 lbs. of coal and 120 lbs. of limestone. Until recently, Chinese government laws prohibited the import of salvage vehicles from the United States into mainland China. Today, this recycling project is supported in China by the environmental protection body of the Chinese government. For the past 30 years, Insurance Auto Auctions has continued to develop and cultivate a mature and global customer buyer base in more than 100 countries. Its buyers include automotive body shops, rebuilders, used car dealers, automotive wholesalers, exporters, dismantlers, recyclers, brokers, and where allowed, non-licensed (public) buyers. IAA buyers have access to six languages through IAA's Auction Center including: English, Mandarin Chinese, Spanish, French, Polish and Russian. In addition, the IAA Buyer Services group is fluent in 10 languages to assist global buyers. An estimated 30 percent of IAA’s vehicles are sold and exported to foreign countries, which further strengthens its philosophy of choice and flexibility with “anywhere” access and mobile technology. IAA’s business model includes in-person and online auctions. IAA offers clients access to a comprehensive salvage auto auction network, and allow them to purchase in a manner that best suits their needs. IAA aims to offer end-to-end solutions and standardized quality assurance practices at its nearly 160 locations. IAA experts are on hand at each branch location to assist buyers and sellers. IAA follows strict regulatory Give us your onstate matters affecting the compliance at theopinion federal and levels and is well versed in all state titling laws as well as buyer and seller licensing. For morepublisher@autobodynews.com information visit www.iaai.com.

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