March 2022 Southwest Edition by Autobody News

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New Braunfels, TX, Maaco Owner Recognized as Regional Award Winner Each year, Maaco, America’s body shop and the leader in the $38 billion automotive paint and collision industry, recognizes its top performing franchisees for outstanding sales, leadership and operational excellence. Stan Piernick of New Braunfels, TX, who owns Maaco New Braunfels, was one of six Maaco owners in the southern region of the U.S. recently awarded the regional Maaco Cup Award. Piernick became a Maaco franchisee in 2017 and quickly leveraged his business expertise as a former

director of operations for a Fortune 100 company, along with his passion for cars, to make his Maaco location a top performer. That led him to earn Maaco Rookie of the Year honors for 2018. Piernick’s New Braunfels operation is Maaco Diamond Certified, the highest level of certification within the Maaco network of more than 400 locations, based on his team’s training, certification and repair expertise. He is now a back-to-back regional Maaco Cup Award winner See Award Winner, Page 6

EV Chargers Will Soon Outnumber Gas Stations in U.S. by Andrei Nedelea, InsideEVs

The charging station infrastructure in the U.S. will soon catch up to and surpass traditional fuel stations for the number of individual pumps, or charging stalls. There are currently between 110,000 and 150,000 fuel pumps, while the number of individual chargers is around 110,000, according to Jerry Insurance. The number of gas stations has been going down for the last two decades, while increasing sales of electric vehicles has spurred constant and

sometimes rapid expansion of the charging infrastructure. There are now more than 2 million EVs on U.S. roads compared to just 16,000 a decade ago.

One major challenge ahead will be for the charging infrastructure to See EV Chargers, Page 24

Vol. 40 / Issue 3 / March 2022

Tesla Files for Cathode Plant at Gigafactory Texas for Battery Production by Maria Merano, Teslarati

Tesla applied for a permit to extend Gigafactory Texas with a building to produce cathodes for battery production. The Giga Texas cathode plant will likely contribute to Tesla’s 4680 production plans in Austin. “I can confirm that this is for the Tesla project, and this permit is for a cathode building,” an Austin city spokesperson told Reuters on Feb. 3. She added the city had no further information on the subject. In Tesla’s Q4 and Full Year

Earnings Call, CEO Elon Musk confirmed Giga Texas Model Y vehicles will be equipped with the company’s structural battery pack and 4680 cells. He announced Model Y vehicles built in late 2021 were already built with Tesla’s structural battery pack and 4680 cells. According to Tesla Senior VP of Powertrain and Energy Engineering Drew Baglino, the company is making progress with 4680 and pack tool installations at Giga Texas. Tesla is also seeing significant improvements in ramping its 4680 cell production See Cathode Plant, Page 19

A Review of Collision Repair Acquisitions in 2021 by David Roberts and Chris Lane, Focus Advisors Automotive

With 2021 now in the rearview mirror, the industry is catching its breath after a year of sprinting that saw extraordinary acquisition activity. In one of the busiest years since 2019, the most mature consolidators—Caliber and Gerber—have gotten much bigger, while the third largest, Service King, has continued to shrink modestly. And the adolescents of 2020, Classic Collision and Crash Champions, have dramatically grown into impressive, fully realized competitors seeking their own national footprint, each more than tripling their number of shops over the last 12 months. Newer private equity backed MSOs also found fertile ground in 2021 with Quality Collision, Kaizen Collision and Collision Right more than doubling their shop counts during the year. The franchisors and networks continued to find both growth challenges and opportunities as Driven

Brands, Certified Collision Group and 1 Collision continued to expand in every direction. Based on Focus Advisors’ proprietary data, a total of 62 MSOs were acquired in 2021 with a transfer of 327 locations that formerly belonged to independent MSOs. What happened with the largest consolidators? Caliber just kept doing what Caliber does at the same relentless and effectively measured pace—buying, converting and developing. We estimate Caliber added about 201 shops; nearly 25% were brown and greenfield location. In addition, it continued to grow its initiatives in ADAS, glass and retail service locations. Caliber only acquired one large MSO during the year, Main Auto Body in Oregon, as well as several three and four shop MSOs. However, its most notable acquisition was the acquisition of 17 AutoNation shops in 15 different markets. Caliber continues to densify its footprint, market-by-market, both through acquisitions of single shops See Acquisitions in 2021, Page 24

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CONTENTS REGIONAL

Advertise in our Classified Section for $50 per column inch! in 2021 �� 1 Adelmann Donates $500,000 to CREF �� 12

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on Lasting Impact �� 20

AirPro Diagnostics Announces New Hire �� 50

AUTOBODY

ABRA Fort Collins Opens in Colorado �� 10

ASA Podcast Focuses on EV Repair Safety �� 32

Advantage Parts Solutions Expands into

ASE Education Foundation Partners with

Oklahoma City, OK �� 16 Arizona Attorney General Gets Court Win in Challenge to Consumer Protection Law �� 16 Maaco Mansfield, TX, Owners Honored with Terry Taylor Award �� 6 New Braunfels, TX, Maaco Owner Recognized as Regional Award Winner �� 1 Oklahoma Unemployment Rate Rebounding Faster than Other States �� 10 SEMA Applauds Public-Private Effort to Save the Bonneville Salt Flats �� 22

Industry Leaders to Provide Innovative Programs �� 19 Automakers Report January Sales �� 49 Axalta Commits to Sustainability Goals �� 48 Axalta’s Radar Transmission Simulator Receives 2022 BIG Innovation Award �� 38 Bill to Ensure Consumer Choice in Auto Repair Introduced in U.S. House �� 46 CCC Acquires Insurtech Safekeep �� 38 Certain Metallic Finishes May Interfere with ADAS Radar Systems, PPG Expert Says �� 36

Tesla Files for Cathode Plant at Gigafactory

CIECA Announces 2022 Board Officers �� 11

Texas for Battery Production �� 1

DOT Issues National Roadway Safety Strategy

Tesla Model Y Vehicles Spotted Leaving Giga Texas Site on Car Carriers �� 12 Volkswagen’s EV Bus, the ID. Buzz, to Debut at South by Southwest �� 11

with Focus on Safer Vehicles �� 46 Emporia Energy, BREK Electronics to Develop First Home Bi-Directional EV Charger �� 4 EV Buyers Not Researching Charging Options Until After Purchase: Study �� 50

COLUMNISTS Anderson - Resources to Combat Collision Parts Supply Chain Challenges �� 28 Phillips - Matrix Trade Institute’s Efficiency Bootcamps Help Collision Repair Industry Grow and Retain Employees �� 30

EV Chargers Will Soon Outnumber Gas Stations in U.S. �� 1 EV Sector Growth Driving up Lithium, Cobalt, Nickel Prices �� 18 Hertz Partnering with UFODRIVE to Improve EV Rental Experience �� 48

INDEX OF ADVERTISERS

2010 CREF Grant Winner Provides Update

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2022 Adamantine Media LLC.

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

Equalizer Auto Glass Tools �� 6

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Labor Rate, Tech Shortage, ADAS Panels

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Must Ensure ADAS Calibration Procedures

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Steck Manufacturing Company �� 16

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Some Auto Parts Cheaper at Walmart,

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Fixed Ops Director Shocked to Find �� 42

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Sunmight USA �� 14-15

State Farm, Ford Introduce UBI �� 48

Freeman Mazda �� 38

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Toyota Research Institute Programs Car to

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NATIONAL A Review of Collision Repair Acquisitions

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Emporia Energy, BREK Electronics to Develop First Home Bi-Directional EV Charger Emporia Energy and BREK Electronics announced a new partnership to develop a bi-directional electric vehicle charger that will not only transfer power from the grid and home to the vehicle, but also from the vehicle back to the home and grid. This product will be the first of its kind available in North America and is predicted to hit the market in 2023 at less than $1,500. The collaboration brings together the specialties of both companies, with BREK developing the power electronics core and hardware and Emporia developing the connector strategy and smart home integration system. BREK and Emporia share an overarching mission of providing accessible and affordable products. Emporia, led by founder and CEO Shawn McLaughlin, already offers a line of energy management technology products that can be combined to create the Emporia Smart Home Energy Management System. These products include level 2 EV chargers, customizable whole-home batteries with capacity from 8.2kWh to 49.2 kWh, smart plugs and real-time energy monitors that allow

users to assess and control their total home energy usage in real-time via the Emporia app. The partnership’s bi-directional EV Charger will be the newest addition to this system and give customers new options for power management. Consumers will now be able to power their home through their EV,

applications, including solar string inverters that can provide significantly higher power at lower cost with longer life, in a more compact design than existing commercial string inverters. BREK’s and Emporia’s collaboration will develop and adapt this hardware specifically for bi-directional EV charging.

“Emporia has mastered energy management technology and smart home integration with their system of products and is the perfect match for the power electronics development we do here at BREK. Our hardware expertise combined with Emporia’s experience in energy management will drive the creation of a truly groundbreaking product in the EV charging space.” — Dr. Kala Majeti insulating them from costly utility bills and protecting them from power outages. BREK is reimagining silicon-carbide based power electronics technologies. BREK’s silicon-carbide based platform has a variety of

As explained by McLaughlin, “80 to 85% of electric vehicle charging currently takes place at the vehicle owner’s home, so the EV should really be seen as an extension of the home energy system. This is critical to why we want to make a

bi-directional EV charger readily available—being able to transfer energy from the vehicle back into the home or grid will enable widespread adoption of distributed renewable energy without taxing the grid, while generating substantial savings for the homeowner, but there isn’t a cost effective option on the market yet. Our collaboration with BREK will create that option.” “This is an ideal partnership for us,” said Dr. Kala Majeti, president and co-founder of BREK Electronics. “Emporia has mastered energy management technology and smart home integration with their system of products and is the perfect match for the power electronics development we do here at BREK. Our hardware expertise combined with Emporia’s experience in energy management will drive the creation of a truly groundbreaking product in the EV charging space.” For more information about Emporia, visit www.emporiaenergy.com. To learn more about BREK Electronics, visit www.brekelectronics.com. Source: Emporia Energy, BREK Electronics

Toyota Research Institute Programs Car to Autonomously Drift Around On-Track Obstacles On Feb. 2, Toyota Research Institute (TRI) demonstrated a new research milestone in autonomy, providing a glimpse into the future of safer mobility for all.

TRI researchers successfully programmed a vehicle to autonomously drift around obstacles on a closed track—a world first. Combining a deep knowledge of both vehicle dynamics and control design, TRI’s Nonlinear Model Predictive Control (NMPC) approach extends the vehicle’s operational domain to the very limits of its performance. The idea behind this research is to use controlled, autonomous drifting to avoid accidents by navigating sudden obstacles or hazardous road conditions like black ice.

“At TRI, our goal is to use advanced technologies that augment and amplify humans, not replace them,” said Avinash Balachandran, senior manager of TRI’s Human Centric Driving Research. “Through this project, we are expanding the region in which a car is controllable, with the goal of giving regular drivers the instinctual reflexes of a professional race car driver to be able to handle the most challenging emergencies and keep people safer on the road.” Every year, car crashes result in nearly 40,000 fatalities in the U.S and about 1.35 million fatalities worldwide. While most crashes occur in mundane situations, in some extreme situations, drivers may need to make maneuvers that take their vehicle close to and, at times, beyond normal limits of handling. One year ago, TRI and the Dynamic Design Lab at Stanford University set out to design a new level of active safety to help avoid crashes and prevent injuries and fatalities. With the support of automotive performance specialist GReddy and drift legend Ken Gushi, this achievement is another step in that journey.

4 MARCH 2022 AUTOBODY NEWS / autobodynews.com

By building skills comparable to an expert driver, this technology can amplify and augment a regular driver’s ability to respond to dangerous and extreme situations, helping keep people safe on the road.

This achievement brings TRI researchers closer to understanding the full spectrum of vehicle performance. The software advances announced Feb. 2 calculate a whole new trajectory every 20th of a sec-

“When faced with wet or slippery roads, professional drivers may choose to ‘drift’ the car through a turn, but most of us are not professional drivers,” said Jonathan Goh, TRI research scientist. “That’s why TRI is programming vehicles that can identify obstacles and autonomously drift around obstacles on a closed track.” — Jonathan Goh “When faced with wet or slippery roads, professional drivers may choose to ‘drift’ the car through a turn, but most of us are not professional drivers,” said Jonathan Goh, TRI research scientist. “That’s why TRI is programming vehicles that can identify obstacles and autonomously drift around obstacles on a closed track.”

ond to balance the car gracefully as it goes around the track. Looking ahead, Toyota will continue to push the limits of vehicle safety technology by researching ever more effective ways for emerging safety technologies to amplify human capabilities on the road. Source: Toyota Research Institute

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Continued from Cover

Award Winner who cites an intense focus on teamwork and customer satisfaction as what has driven his success over the past five years. “There are three things that I can attribute our success to,” said Piernick. “First is a relentless pursuit of customer satisfaction. We will do whatever it takes to ensure the customer leaves our shop delighted with the outcome. That is evidenced by our 4.8 Google rating. Second, continuing education. All 13 of my technicians are I-CAR Gold certified and my shop meets the requirements for Maaco Diamond status. And last, we have a ‘One Team-One Goal’ philosophy, and titles don’t matter—customers do.” Source: Maaco

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Maaco Mansfield, TX, Owners Honored with Terry Taylor Award Each year, Maaco recognizes its top-performing franchisees for outstanding sales growth, leadership and operational excellence. This year, Robert and Keita Reid, owners of Maaco Mansfield, were honored with the Terry Taylor Award. The Terry Taylor Award is

Chris Porcelli, left, vice president of strategy for Maaco, presents the Terry Taylor Award to Keita and Robert Reid

presented each year to a quiet hero within the Maaco family who is involved and gives back to their community. Robert moved to the U.S. from Jamaica when he was 17 to attend

6 MARCH 2022 AUTOBODY NEWS / autobodynews.com

college. Passionate about cars from a very young age, he worked as a helper in an auto body shop while earning his degree in mechanical engineering. After Robert spent 14 years in corporate America developing skills in managing manufacturing operations and driving continuous improvement, he decided to become a business owner, and opened his Maaco franchise in 2017. By his second year, Robert had nearly doubled his revenue, and the business has continued a steep growth trajectory ever since. In 2021, Robert’s growth led him to add 7,000 square feet to his facility and 2.5 acres of land to accommodate his expanding needs. In the spirit of continuous improvement, he invested in all the equipment necessary to keep up with the latest technology, and his shop has become both I-CAR Gold certified and a member of the elite group of Maaco Diamond Certified shops. “We create standards that we execute with discipline and rigor, and because of that we have built a reputation for quality work

and customer satisfaction that has helped fuel our growth,” said Robert Reid. “Referrals and repeat customers have been instrumental to our growth. “The Maaco business model is robust, and the current market climate is working in our favor, resulting in added growth opportunities,” he continued. “The shortage of new and used vehicles means that more vehicle owners will invest in maintaining their current vehicles. We have seen this even with fleets, whether car dealers, rental car companies or local fleets.” Robert Reid said each year they strive to improve and to increase their sales volume, and they are still working toward their full potential. Maaco is always looking for people who strive for excellence and want to put their management skills to work as independent business owners. For more information, visit www.maacofranchise.com or contact the team at Franchise@maaco. com to learn more about franchisee opportunities. Source: Maaco

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Oklahoma Unemployment Rate Rebounding Faster than Other States by Merrilee Gasser, The Center Square

An analysis by WalletHub shows Oklahoma’s unemployment rate is rebounding faster than other states. WalletHub compared states’ unemployment numbers from just before the start of the COVID-19 pandemic in 2019 with the most recent available numbers for each state. Oklahoma’s December 2021 unemployment rate was 2.3%, an improvement of 49.1% from December 2020, when the state’s unemployment rate was 5.3%. The only two states that performed better than Oklahoma were Nebraska and Utah. Some of the most resilient industries and businesses throughout the COVID-19 pandemic were online retailers, supermarkets, drugstores and online delivery services, according to analysts. “The grocery workers, UFCW and the grocery industry have taken on providing food and other products by quickly amplifying or implementing delivery services and making changes that enable social distancing in stores,” said Ariana

Levinson, a professor of law at the University of Louisville. “Online companies are providing many products that would have previously been purchased in person.” Analysts said service jobs that require face-to-face interactions such as hotels and restaurants suffered. They predicted a slow recovery in those industries that could take years.Competency with social media, e-commerce and computer engineering are predicted to be highly sought-after job skills post-pandemic, according to analysts. “Computer and digital skills will be important as we weave more of our economic and social lives into the cloud,” said Peter Philips, an economics professor at the University of Utah. “Imagination will be an important skill as we will need people to reimagine our lives and our work and social interactions in ways that are both safe and inter-personally rewarding.” States that ranked lowest for unemployment recovery were New York, New Jersey, Nevada and California.

ABRA Fort Collins Opens in Colorado ABRA Auto Body Repair of America announced its expansion in Colorado with the opening of ABRA Fort Collins, located at 2520 Co Road 54G, Fort Collins, CO, 80524. Longtime dealership owner Warren Yoder expanded his operations with the opening of ABRA Fort Collins. Yoder worked for the dealership in every department and moved up to become the general manager of Weld County Garage, and in 2012, purchased the company from his father, Lee Yoder, and his two partners. “My family has a longstanding history in the automotive industry and extending our services to include collision repair was a natural next step to provide a full suite of services to our valued customers,” said Warren Yoder. “The original dealership was established in 1908 and I am honored to continue that legacy, while building another with our collision repair operations.” ABRA Fort Collins is a 20,000-square foot facility, equipped with all the tools and

equipment to meet the rapidly changing needs of the industry. The facility is I-CAR Gold certified and operates under the management of Micah Elsom, a longtime collision repair expert. “We aim to provide our network of owners the resources needed to stay up-to-date with vehicles, as automotive technology keeps advancing,” said Mark Wahlin, VP of franchise development and operations, ABRA. “This helps provide local owners the tools to succeed, while they can continue supporting the communities they love.” Yoder and Elsom pride themselves on providing the highest level of customer service alongside expert repairs. The team looks forward to extending their services to include collision repair support for the Fort Collins community. Visit ABRAauto.com to learn more. Source: ABRA

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Volkswagen’s EV Bus, the ID. Buzz, to Debut at South by Southwest The Volkswagen ID. Buzz, an electric reimagining of the brand’s iconic Microbus, will make its first-ever public appearance at SXSW, March 11-20. To celebrate the first outing of the electric vehicle, Volkswagen will host various “Buzz Stops” throughout the city of Austin, TX, where attendees of SXSW and

locals can experience a coming chapter in the brand’s future. The ID. Buzz appearances are part of a larger three-year sponsorship agreement among Volkswagen and SXSW. For the duration of the SXSW conference, European-market ID. Buzz vehicles will frequent two stations near the Austin Convention Center, delivering information and

entertainment to those nearby. “The VW Microbus has been emblematic of cultural ideals that have inspired change and driven progress, both in the U.S. and globally,” said Scott Keogh, president and CEO, Volkswagen Group of America. “South by Southwest’s commitment to innovation and technology, coupled with its access to culture and creativity makes it the perfect venue for the ID. Buzz to make its first-ever public appearance. We’re excited to bring the ID. Buzz to Austin and showcase the innovation packed into this newest member of our EV lineup.” Taking cues from the DNA of the iconic Type 2 Microbus, the ID. Buzz will deliver an agile and dynamic driving experience. Riding atop Volkswagen Group’s Modular Electric Drive Matrix (MEB) platform, it will offer maximum cargo space on a minimal footprint. “Volkswagen is taking the lead in electromobility in a transformative way and the debut of ID. Buzz at South by Southwest is another exciting example of our progress,” said Keogh. “We have accelerated

the transformation to electromobility in the U.S. and we plan to continue leading this charge.” This step forward in the brand’s electrification efforts builds later this year, with all North American ID.4 EVs shifting to assembly in Chattanooga, TN, a move that will support more than 4,000 American jobs in the area. “SXSW brings the world’s creative professionals together and we’re thrilled to welcome Volkswagen to our event over the next three years,” said Roland Swenson, co-founder and CEO of SXSW. “We’re particularly excited to have the opportunity to highlight their dedication to ingenuity in the fast-moving field of EV in the form of the iconic VW bus. We look forward to sharing the full Volkswagen experience with our attendees in Austin next month.” Source: Volkswagen

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CIECA Announces 2022 Board Officers During the Collision Industry Electronic Commerce (CIECA) Board of Trustees meeting in Phoenix, AZ, on Jan. 19, the organization’s Board of Trustees elected the following officers for 2022. Chairman Phil Martinez, Mitchell International, an Enlyte Company; Vice Chair Greg Best, California Casualty Management Company; Treasurer Ashley Denison, Caliber Collision; Secretary Brady Bonner, Safelite Solutions; and Past Chair Jeff Schroder, Car-Part.com. The officers will serve on CIECA’s executive committee, which oversees business matters throughout the year and plans the agenda for CIECA board meetings. CIECA also named a new Board of Trustees member, Dave Braun, owner of Nexsyis Collision. Source: CIECA

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Tesla Model Y Vehicles Spotted Leaving Giga Texas Site on Car Carriers by Maria Merano, Teslarati

Tesla Model Y vehicles were recently spotted leaving Giga Texas on car carriers, hinting that Tesla’s goal to deliver Giga Texas-made Model Ys to customers by the end of the first quarter is going according to plan. At the last earnings call, Tesla announced Giga Texas and Berlin production started in the previous quarter, Q4 2021. During his opening remarks, Tesla CEO Elon Musk confirmed Austin-built Model Y vehicles are equipped with structural battery packs and 4680 cells. Tesla plans to deliver Giga Texas Model Ys once the vehicle receives final certification. “So in Texas, we’re building the Model Ys with the structural battery pack and the 4680 cells, and we’ll start delivering after final certification of the vehicle, which should be fairly soon,” Musk said. Drew Baglino, Tesla’s senior vice president of powertrain and energy engineering, added the company was making “meaningful progress of the ramp curve in Kato,” where Tesla is currently producing 4680 cells in a pilot line. He said Tesla was building

4680 structural battery packs every day and assembling them in Giga Texas vehicles. “And we believe our first 4680 vehicles will be delivered this quarter,” Baglino said. “Our focus on the cell, the pack and the vehicles here is driving yield quality and cost to ensure we’re ready for larger volumes

This photo posted to Twitter shows a “batch of Model Ys fresh off the production lines of Giga Texas,” according to user Jeff Roberts. Credit: Jeff Roberts/Twitter

this year as we ramp and next year. And the 4680 and pack tool installations here at Giga Austin are progressing well, with some areas producing the first parts.” The journey of Tesla’s 4680 cells has been long and filled with challenges, so seeing Model Y vehicles equipped with the batteries is exciting to those following its developments.

Tesla unveiled its 4680 cells during Battery Day in September 2020. By Q2 2021, Tesla admitted to facing challenges with its 4680 pilot production line in Kato Road, mainly when it tried to transition from smallscale production to large volume production. “Right now, we have a challenge with basically what’s called calendaring, or basically squashing the cathode material to a particular height,” Musk explained at the time. “So it just goes through these rollers and gets squashed like pizza dough, basically, but very hard pizza dough. And it’s causing---it’s denting the calendar rolls. This is not something that happened when the calendar rolls were smaller, but it is happening when the calendar rolls were bigger.” However, Tesla seemed to have overcome most challenges with 4680 cell production. By August 2021, a Tesla investor claimed the production yield of the 4680 cells rose to about 70% to 80%, suggesting the company was making progress in solving its calendaring issue. More recent reports hinted the production yield of 4680 cells had been vastly improved since.

Adelmann Donates $500,000 to CREF Recently retired collision professional Tim Adelmann was inspired to make moves to amplify the Collision Repair Education Foundation’s (CREF) efforts to help schools and students at a higher level. After considering the legacy he hopes to leave the industry he loves, Adelmann reached out to CREF in a tremendous show of generosity, promising $500,000 over the next five years--the largest monetary donation CREF has ever received, not just from an individual but from any organization. Beginning this spring, up to $100,000 per year will be awarded to deserving collision repair technician students for five years. An industry veteran of 35 years, Adelmann recently retired after ABRA merged with Caliber Collision. He was the chief business development officer for ABRA and now serves as an industry consultant. While serving on CREF’s Board of Trustees, he “witnessed firsthand the impact that CREF’s efforts have on schools and students,” Adelmann said. Source: CREF

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Arizona Attorney General Gets Court Win in Challenge to Consumer Protection Law by Elizabeth Troutman, The Center Square

Arizona law will continue to contain a data protection provision for car dealerships after Attorney General Mark Brnovich’s victory from the Ninth Circuit Court.

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“This is a big win for Arizonans and the protection of their personal information,” Brnovich said. “I am proud of our team for successfully defending Arizona’s law that promotes a robust marketplace for consumers.” Passed by the Arizona legislature in 2020, the law upheld by the court Dec. 28 protects consumers

by allowing car dealerships, which are required by law to protect consumer data, to control it, rather than software companies. It also allows dealerships to use third-party integrators to help with inventory and customer relationship management, the news release said. Brnovich’s office said the law promotes a strong marketplace for smaller software providers. Two software manufacturers, CDK and Reynolds and Reynolds, challenged the dealer law, saying it violated several federal statutes and constitutional provisions. Arizona’s federal district court ruled against the software manufacturers and the Ninth Circuit Court affirmed the ruling in their published opinion. Following the Ninth Circuit’s ruling, both manufacturers dismissed their cases with prejudice, resulting in the AGO’s victory.

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Advantage Parts Solutions, the global leader in delivering strategic automotive parts solutions, expanded its OEM parts supply chain optimization efforts into Oklahoma City, OK. This expansion represents a significant opportunity for franchise new car dealerships and collision repair facilities to offer enhanced value to their stakeholders. In addition, Oklahoma City represents Advantage’s 45th U.S. market that directly benefits from its data and value-driven platform. “The addition of Oklahoma City’s OEM parts ecosystem is rewarding as the North American team worked diligently to welcome this market to Advantage, an effort led by Western Regional Director Terry Deason,” said Advantage Parts Solutions’ President of North America Paul Gange. “Now, OEM parts suppliers and collision repairers in Oklahoma City will be able to offer greatly enhanced and unique value through our proven platform.” Advantage Parts Solutions’

entrance into Oklahoma City comes on the heels of seasoned industry executive Gange joining as the organization’s president of North America. “It’s exciting to continue our expansion efforts throughout North America and offer enhanced value to suppliers and collision repairers alike, for the ultimate benefit of the vehicle owner,” said Advantage Parts Solutions’ Vice President of Canada and Western U.S. Tifarah Senkow. “As we welcome Oklahoma City, we also welcome Business Development Manager John Lawhon into the Advantage family and are looking forward to his successes in the market.” Source: Advantage Parts Solutions

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EV Sector Growth Driving up Lithium, Cobalt, Nickel Prices by Simon Alvarez, Teslarati

The electric vehicle revolution is fully underway. Led by successful vehicles like the Tesla Model 3, EV sales are taking off. The momentum of EVs as a whole may hit some challenges soon, however, partly due to the rising prices of raw materials critical to the production of batteries. The prices of lithium-ion batteries have seen a 90% decline to just about $130 per kWh. That’s very close to the widely targeted $100 per kWh level, estimated to be the point where EVs could become fully competitive with ICE cars in terms of cost. Expectations were high the battery industry would hit $100 per kWh in 2024, but recent trends in the market suggest this may not necessarily be the case. Benchmark Mineral Intelligence, a company that tracks the worldwide battery supply chain, noted lower costs helped boost EV sales by 112% in 2021 to more than 6.3 million units globally from the previous year. And sales are only poised to increase.

EV leader Tesla, which sold nearly 1 million pure electric cars on its own in 2021, is looking to grow its deliveries by 50% this year, and estimates among TSLA bulls suggest the company’s growth might be even more impressive. Benchmark Mineral Intelligence said battery-grade cobalt prices are up 119% from Jan. 1, 2020, through mid-January 2022. Nickel sulfate prices saw a 55% rise in price, and lithium carbonate saw a whopping 569% increase. Benchmark Mineral Intelligence Chief Data Officer Caspar Rawles, in a statement to The Wall Street Journal, said some battery cell makers that typically offered long-term fixed-price contracts have ended up shifting to a variable price model instead. This allowed them to pass on some of the costs of rising material prices to consumers. Battery materials may remain in short supply for some time. China, which dominates the battery supply chain, is also aggressively increasing its electric vehicle production. And considering it generally takes about seven to 10 years

to deploy a new mine, a lot of key battery components may end up being supply-constrained in the coming years.

The rising prices of battery raw materials do not mean the EV revolution would likely be slowed down, however. The battery recycling industry is now gaining some momentum, with companies like Redwood Materials—led by Tesla co-founder and former CTO JB Straubel—already preparing to sell recycled battery components to Panasonic for the production of battery cells at Tesla’s Gigafactory Nevada later this year. This helps foster a closed-loop system since Redwood also receives Panasonic’s battery scrap from Tesla’s Nevada facility.

Other initiatives that may help the auto sector weather the rising costs of battery materials involve a focus on batteries that use less expensive, more abundant components. Tesla China is among the companies at the forefront of this movement, with Giga Shanghai using lithium iron phosphate (LFP) batteries for the Model 3 and Model Y. LFP batteries use iron in their cathodes instead of nickel and cobalt, making them less controversial and far more affordable. And while LFP batteries typically result in vehicles with shorter range than cars equipped with nickel-based cells, tests from veteran electric vehicle owners in countries such as Norway are starting to reveal iron-based cells are nothing to scoff at. Longtime EV advocate Bjorn Nyland, for example, recently conducted one of his 1,000-km tests in a base Model 3 equipped with an LFP battery produced in Gigafactory Shanghai. The vehicle performed amazingly despite the cold conditions and its relatively small 60 kWh battery pack.

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ASE Education Foundation Partners with Industry Leaders to Provide Innovative Programs By partnering with leading industry organizations, the ASE Education Foundation continues to provide innovative programs that help increase the number and diversity of service professionals entering the industry. “We want to thank all of our industry partners who step up year in and year out to provide much appreciated support for the ASE Education Foundation,” said Mike Coley, president, ASE Education Foundation. “Our partners are the backbone of the foundation and continue to provide us with their expertise and needed resources to implement our programs. They will be instrumental as we expand our new Adopt-A-School program, implement new registered apprenticeships and increase diversity, equity and inclusion efforts in the coming year.” New partners ALLDATA, Auto Care Alliance, Automotive Lift Institute, Collision Repair Education Foundation, Goodheart Willcox, Hertz, ExxonMobil, Noregon and Permatex will join the following list of returning partners who support

the ASE Education Foundation: ACDelco, Acura, ASA, ATech Training, Audi, BMW, Bridgestone, CarMax, CARQUEST, CCAR, CDK Global, CDX, Cengage, Electude, Federated/ Pronto, FedEx, Ford, Garage Gurus, Gates, General Motors, HDA Truck Pride, Honda, Isuzu Truck, Lexus, Mack Truck, Mercedes-Benz, Motor Age, NADA, NAPA, Navistar, Nissan, NTB, PepsiCo, Porsche, Ryder, S/P2, SkillsUSA, Snap-on, Stellantis, Subaru, TA Petro, TechForce Foundation, Tire Kingdom, Toyota, UPS, Volvo Truck, Volkswagen and WD-40. “We are proud to join forces with these fine organizations and leverage their vast experience in order to recruit, nurture and inspire the next generation of service professionals,” said Coley. To learn more about supporting the ASE Education Foundation and its mission to improve the quality of automobile, collision repair/refinish and medium/heavy truck training programs, visit www.ASEeducation Foundation.org/partners. Source: ASE

tion’s current status is “CC Pending.” The cathode facility’s pending application will probably not interfere with Tesla’s production plans in 2022. Baglino said at the Q4 2021 earnings call that Tesla’s suppliers exceeded factory-limiting constraints. “So throughout 2021, we focused on growing cell supply alongside our in-house 4680 effort to provide us flexibility and insurance as we attempt to grow as fast as possible,” said Baglino. “As we sit today, sales from suppliers is actually—it sort of exceeds our other factory-limiting constraints that you mentioned, Elon, in 2022. Or to say differently, 4680 cells are not a constraint to our 2022 volume plans based on the information we have.”

Continued from Cover

Cathode Plant in California. Baglino noted Tesla was building 4680 structural packs every day, which were installed in vehicles in Texas. Tesla plans to start customer deliveries of Model Ys made in Giga Texas once it receives final certification. The Texas Commission on Environmental Quality approved Tesla’s manufacturing facility in Austin on Jan. 20. However, Tesla still has a few other permits pending with the commission. Tesla’s cathode plant application was filed Feb. 2 and reported by Electrek on Feb. 3. The applica-

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2010 CREF Grant Winner Provides Update on Lasting Impact Just over a decade ago, Bridgerland Technical College in Logan, UT, received the Collision Repair Education Foundation’s (CREF) 2010 Makeover Grant. The school’s collision repair education program was awarded more than $50,000 in upgraded tools, equipment and supplies, and, in addition, CREF was able to provide more than $125,000 in donations through the industry’s generosity. Yet the most valuable asset Bridgerland acquired came in the form of relationships developed with industry professionals and the sustained professional shop environment that has served to attract high-quality students to the program. When Bridgerland first received the award, Kevin Cornia, instructor and department head of Bridgerland’s auto collision program, predicted, “We’re going to update our program with lots of tools and equipment to help us provide the best education possible. A makeover grant like this allows us to have updated and more sophisticated equipment to better train our students. I believe we will end up painting our shop through donations of paint. Essentially, our shop is going to look a lot different, and our collision repair program will actually go through a makeover.” And that’s exactly what happened. Being recognized by CREF yielded immediate benefits; as soon as CREF announced Bridgerland was the 2010 Makeover Grant winner, the school received a $4,500 plasma cutter, donated by a local welding company. Over the following months, donations rolled in, fulfilling the school’s wish list of tools and equipment not covered by the program’s budget. Through the industry’s generosity, Bridgerland was able to take its strong auto collision program and propel it to the next level. “We used the donations to update our frame rack, laser measuring system, welders and items that we needed to update our program,” recalled Cornia. “In addition to utilizing all the equipment we received from the grant, we’ve continued to build on it each year, allowing us

to train our students on the most up-to-date industrial equipment. Being able to educate these future technicians on the most current and advanced equipment used in the industry helps them succeed in the collision industry after graduation.” Bridgerland has continued teaching I-CAR curriculum since receiving CREF’s 2010 Makeover Grant, but the award also allowed

the school to “develop great relationships with industry professionals, which has allowed us to host training from 3M, Sherwin-Williams Automotive Finishes and PPG, as well as CHIEF pulling and measuring classes. This would not have been possible before we received the grant from CREF.” With the industry’s donations, Bridgerland’s student lab also received a refreshed coat of paint on the walls and a fresh epoxy floor coating by painting the shop and recoating the floors. The department’s appearance made an immediate impact on school staff, who appreciated the investment in the program, but more importantly, “the updated visual aspect of the shop made an impression on potential students when they explored our program,” Cornia said. “We’ve had a tremendous response from students, and we currently have a waiting list for our auto collision program,” he continued. “The many layers of assistance and support we’ve received as a 2010 Makeover Grant winner has helped to boost our enrollment and placement. The lasting impact has been impressive, and Bridgerland students will continue to reap the benefits for years to come.” While an updated appearance, along with modern tools and equipment, certainly helps to attract students to Bridgerland’s auto collision

20 MARCH 2022 AUTOBODY NEWS / autobodynews.com

program, the industry’s involvement carries more weight than simply the surface value of the donated items— when local industry professionals invest time and energy into students by joining advisory committees and taking on apprentices, future technicians can envision their future in an industry dedicated to their success. CREF’s mission aligns around these efforts, and Cornia believes CREF plays a critical role in supporting the next generation of industry professionals. “Students are the future of the collision repair industry. The students taught by your local schools will become the industry’s next collision technicians,” he said. “When the programs’ instructors are able to teach students on modern equipment, when we’re able to teach the most innovative ideas and products, this ensures that we are shaping the industry’s future in the right way, that we’re educating students who will become excel-

lent entry-level technicians.” Of course, schools aren’t the only ones in this equation who face budgetary constraints, and Cornia noted, “The Collision Repair Education Foundation also makes it possible for students with financial challenges to be able to afford to continue in school programs. The foundation facilitates the industry’s generosity by finding those who are willing to help by offering grants to students that stand out in the industry or struggle financially. CREF’s efforts makes the collision industry stronger!” Industry members interested in getting involved and supporting the Collision Repair Education Foundation’s efforts to assist secondary and post-secondary collision repair training programs should contact us at info@ed-foundation.org. For information on how to donate to programs supported by CREF, visit www.CollisionEducationFoundation.org. Source: CREF

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Body Shop Professionals Seizing New Career Opportunities with SCA Claim Services SCA Claim Services has firmly staked its claim as a leader in the claim servicing industry. For more than 40 years, the company has expanded its nationwide capabilities, providing a broad menu of services to insurance companies, most notably adjusting and appraisal services in the auto, specialty, and property verticals. Now a well-known and highly respected name among insurance professionals everywhere, SCA has become a prime destination for people possessed with the entrepreneurial spirit and seeking new opportunities to apply their skills and expertise. That includes many auto body professionals.

Taking Ownership of Your Future Erik Clayton was once a body shop estimator. In 2009 however he made the career decision to become a contract auto damage appraiser for SCA. After just a few months, recognizing an even greater opportunity, he became an SCA franchise owner in Dallas County. Just six months later, he added North Dallas County too. “I saw the opportunity to make more money,” says Clayton. Another major draw was being his own boss. “You work for yourself and make your own schedule. You get out of the building and the monotony of it all. Every day in the field is different.” What makes the Franchise Ownership Program at SCA special is the company’s commitment to its franchisees’ success. “At SCA we say, ‘As a franchise owner, you are in business for yourself, but not by yourself,’” says Chief Operating Officer Jon Gironda. “SCA gives you all the tools you need to be successful,” agrees Clayton. “And they are always adding new clients.” SCA offers franchise owners not just initial training but ongoing partnership and support. That includes file reviews by its fully licensed, centralized Quality Control team, dedicated Customer Care teams, and technology to help provide industry-leading

accuracy and cycle time. For more details on becoming a SCA franchise owner, visit SCAClaims.com/franchise-opportunities/

Being Your Own Boss Franchise ownership isn’t for everyone with the itch to pursue a career change. Many auto body professionals have instead decided to put down their tools and pick up a phone or tablet to become a contract auto appraiser. Skills acquired in the shop easily translate into insurance auto damage appraisal, and when it comes to the necessary education and certification, SCA offers guidance and support. In select markets, SCA will even pay a signing bonus to contract auto damage appraisers. Contract auto damage appraisers can set their own hours and decide how much they want to work, and therefore how much they can earn. The workforce in the auto claims industry is aging out of the business, creating a need to infuse it with fresh blood. Auto body professionals eager to be their own boss and chart their own course are recognizing this and the opportunity SCA provides. Ambitious appraisers can pursue additional training in specialty or housing claims to truly stretch their earning potential or, like Clayton, purchase their own SCA franchise. Additional details about becoming an auto appraiser for SCA can be found at SCAClaims.com/appraiser-opportunities/

autobodynews.com / MARCH 2022 AUTOBODY NEWS 21

SEMA Applauds Public-Private Effort to Save the Bonneville Salt Flats The Specialty Equipment Market Association (SEMA) welcomes the installation of a new water well and weather and hydrologic equipment used for measuring salt growth conditions as part of its broader Restore Bonneville program. Federal and state funds were released last year to install the monitoring equipment and help increase the volume of salt pumped onto the Bonneville Salt Flats this year to a total of up to 500,000 tons.

motorcycle classes. Speed Week, the marquee event at Bonneville, began in 1949, with scores of racers and thousands of spectators descending on Bonneville in the quest for records. Bonneville serves another important role as a crucial natural resource for potash used primarily in fertilizers. To obtain potash, salt brine is collected in large solar evaporation ponds, from which potash is separated out and processed. The re-

Land speed racers at the starting line. A new water well and weather and hydrologic equipment have been installed as part of the Restore Bonneville program to help increase the volume of salt pumped onto the Bonneville Salt Flats

As part of the Restore Bonneville program, SEMA and the racing community joined forces with the U.S. Bureau of Land Management (BLM), Utah Department of Natural Resources (DNR), Utah Geological Survey (UGS) and Intrepid Potash Inc. in the collaborative restoration effort. Originally in the 1960s, the racing venue was more than 13 miles in length, but the course is now 8 miles or less. According to a study by the BLM, the Salt Flats have also shrunk in size from 96,000 acres to about 30,000 acres. Located in northwestern Utah, the Bonneville Salt Flats are composed of densely packed salt remnants of an ancient lakebed formed over thousands of years. They serve as a unique stage set for movies, commercials, marathons and rocket club launches, and possess rare physical qualities that make it the perfect venue for land speed racing, such as providing a cool surface that doesn’t overheat tires. Since 1914, hundreds of land speed records have been set and broken in a variety of automotive and

maining salt is stored and may then be returned to the Salt Flats as salt brine. Beginning in the 1960s, the BLM issued leases to the north of Interstate 80, where motorsports racing and other recreational activities take place, allowing salt brine to be collected in open ditches for commercial potash processing. The mine operator began pumping the processed salt back onto Bonneville in 1997 as a result of a pilot project SEMA advocated to create. The Restore Bonneville program will help address salt losses that occurred before 1997, when the potash project was operated by previous companies. The BLM and DNR signed a Memorandum of Understanding in April 2020 to jointly pursue restoration efforts. The program, which SEMA calls Restore Bonneville, will be managed by DNR, in conjunction with the BLM, and operated by Intrepid Potash. The endeavor is strongly supported by SEMA and the Save the Salt Coalition, a collection of companies, organizations, individuals

22 MARCH 2022 AUTOBODY NEWS / autobodynews.com

and land speed racing teams. In working with Intrepid Potash, the volume of salt laid down on Bonneville will be increased by updating and improving the efficiency of the current pumping infrastructure and water conservation efforts, which includes rebuilding water wells, covering ditches and installing new pipes and pumps. Great efforts to use water more efficiently will help achieve the goal to increase the volume of salt returned to the salt flats. It will likely take several years to upgrade the infrastructure and gradually increase pumping volumes. The summer 2021 installation of the new water well and equipment to measure water evaporation rates and collect scientific data represented a tangible start to the ambitious restoration effort. The program will seek to identify the best ways to take advantage of the salt laydown and study the effects on the salt crust and underlying brine aquifer. For example, the program will consider ways to contain

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the salt within the large pumping area. If current research proves beneficial, efforts may be extended into the future upon funding availability. Stakeholders are now identifying projects to be pursued in 2022 and beyond to continue increasing the volume of salt being pumped. While the bulk of the program funding will come from federal and state appropriations, both industry and the land speed racing community will voluntarily help pay the costs. Financial contributions from the racing community are gratefully accepted at www.savethesalt.org, a nonprofit organization. Source: SEMA

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Continued from Cover

Acquisitions in 2021 and opening new shops. Responding to the constant demands of its insurance “partners” for performance across multiple markets, Caliber now operates in more than 40 states and in 80 of the top 100 Metropolitan Statistical Areas in the U.S. Gerber/Boyd Group really stepped up to the plate with two significant transactions: the acquisition of Oklahoma-based Collision Works and South Carolina-based John Harris Body Shop for a total of 51 shops out of the 97 additional shops they acquired or developed in the U.S. during the year. Gerber also acquired a large, four-shop MSO in Wisconsin and a plethora of single shops and smaller MSOs, ending the year with an estimated 684 shops in the U.S. Service King continued to shrink its footprint but only modestly, ending the year with seven fewer shops for a total of 336. While much has been written and speculated about Service King’s financial situation, they celebrated the new year by opening a brownfield in Illinois. 2022 should bring more clarity to their situation. The new kids on the block grew into robust adults. The next two largest consolidators accelerated

Continued from Cover

EV Chargers keep up with the rapidly increasing number of EVs in the U.S. Projections say by 2030, the country will have 30 million EVs on its roads, which, according to the source, would require the construction of 478 charger stalls per day for eight years in order to meet the need. The Biden administration is aiming for 500,000 stations by decade’s end. The study also notes which states are best when it comes to the ratio of charging stalls to EVs. North Dakota, Wyoming and West Virginia are the three states where you are most likely to find an empty charging stall, while the worst are New Jersey, Hawaii and Arizona. In the last three there is a higher chance you may find all local

their acquisitions at an incredible pace. Chicago-based Crash Champions grew by more than 300% during the year to a total of 175 shops after beginning the year at 53. Crash’s appetite included the 24-shop Signature Collision MSO based out of Annapolis, MD, but covering multiple markets in the east and southeast. They acquired MSOs from the Pacific Northwest to Florida and many places in between from Montana to Nebraska, New Mexico and Ohio, acquiring dozens of single shops and MSOs. Equaling Crash’s dramatic expansion was Classic Collision, which grew to 174 shops from a base of 54 at the year’s inception. Classic entered Texas with a blockbuster transaction, acquiring 45 shops that previously operated under the Procare and Austin Motor MileEllis & Salazar brands. Procare was owned by private equity firm Kinderhook, which had been invested in the company for approximately five years. The rest of the Classic story included some large MSOs, such as Central Collision with 13 shops in Oregon, Platinum Collision Center’s eight shops in Southern California, and Fender Mender’s eight shops in South Carolina. Classic also entered Alaska in dominant fashion by acquiring two MSOs, Able Body Shop and Fix Auto Alaska, for a total of public chargers are taken and you may have to wait or find a way to charge the EV at home. According to a report from the U.S. Department of Energy, the ideal ratio of EVs to charging stations is 40 Level 2 charging ports and 3.4 DC fast chargers (DCFC) per 1,000 EVs. A DCFC charger usually has three ports. Currently, there are 41 Level 2 charging ports and 5.7 DCFC charging ports per 1,000 EVs, respectively, or about 21 EVs for every charging port. There are 2,514 internal combustion engine (ICE) cars per gas station. EVs are currently at a disadvantage compared to ICE vehicles when it comes to their average range—259 miles versus 360 miles. And the time it takes to charge an EV is longer than simply filling up a gas tank, so vehicles will be occupying more of the available charging stalls for longer.

24 MARCH 2022 AUTOBODY NEWS / autobodynews.com

nine shops in the state. With more than 300% growth in 12 months and backed by $15 billion private equity firm, New Mountain Capital, Classic is also on its way to becoming a billion-dollar company. Joe Hudson’s three years into its ownership under new sponsor, TSG Consumer, grew by 23 shops, which seems modest compared to Crash and Classic but still increased store count by 20%. Up and comers went on an acquisition spree as well. Seemingly from out of nowhere, private equity-backed Collision Right, formed in 2020, added 39 shops to its base of 19. So far, Collision Right’s model has retained the local branding of its acquisitions rather than rebranding as most of its competitors do. Another up and comer has a similar branding strategy: Quality Collision Centers added 10 locations during the year including B&S Hacienda Auto Body, a large sixshop MSO in Northern California. Kaizen Collision, a new private equity-backed MSO based in Southern California, more than doubled

its size to a total of 19 shops in California, Arizona and Colorado. Franchisors and Affiliate Groups continued their expansion. Premier franchisor Driven Brands grew both its franchise footprint with CARSTAR, Fix Auto, Maaco and ABRA as well as its corporate portfolio. By acquiring another 10 shops in the Pacific Northwest, Driven now operates a total of 18 corporate CARSTAR and Fix Auto locations. Even after the sale of a number of CARSTAR MSOs and single shops, the total number of franchisees continues to expand. Final numbers for 2021 are not yet available. Affiliate networks Certified Collision Group and 1Collision continued to expand, with CCG claiming more than 707 affiliates by year end and 1Collision claiming 50 locations in the U.S. Fix Network World acquired ProColor, a 172-unit franchise in Canada. It began signing its first franchises in the U.S. in February and by year-end claimed a total of nine locations. Source: Focus Advisors

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 27

From the Desk of Mike Anderson with Mike Anderson

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

Resources to Combat Collision Parts Supply Chain Challenges I can’t speak with auto body shop owners, managers or estimators for long these days without the subject of parts supply challenges being raised. The fact there’s a lot of parts backorders is just the reality we’re living with, and I can’t offer you any magic wand to change that. What I can do, however, is point you toward some parts-related resources out there I think many people in the industry may not be using. Let me start by saying long before any of our current challenges arose, I firmly believe every shop should be using some type of electronic parts ordering solution. When incorporated into good parts processes within your shop, these systems will improve the speed, accuracy and completeness of your parts ordering. Many will help identify availability of the parts you need. But I also recognize even with these systems, you may still come up short identifying or locating the parts you need. So here are some additional resources you may not be familiar with in regard to locating parts. One great website is www. partsvoice.com. It’s a free resource. You enter the vehicle information, the part number or numbers, and

your ZIP code. Up pops a list of the dealers around the country who have that part in stock, showing you the number they have and when that inventory was last updated.

example, you’ll find a long list of parts-related websites separated by automaker. We’ve tried to catalog all the websites we can find that can be used either to search for parts for a specific OEM, or to allow you to view detailed parts diagrams. One of the first ones on the list, for example, is www.partslink24.com. It requires a paid subscription—on a daily, monthly or yearly basis—but enables you to see the exact same part diagrams the The “free forms, links and tools” section of the Collision dealers have access to for Advice website includes a list of parts-related websites any model of Audi, Porsche separated by automaker or Volkswagen. That can Another great website is www. really help you identify needed parts partseye.net. When you enter that when you’re writing an estimate. web address, it takes you to SmartAs an aside, sites like these are Co, whose “smart inventory pro- why I’m a big proponent of using gram” is called PartsEye. Click on dual monitors when writing repair the “Parts Locator” tab at the top of the page, and you’ll be able to search the country for parts for Kia, Mazda, Subaru and several other lines of vehicles. Want to find more websites like these? Go to my company’s website (www.collisionadvice. com) and click on the link to “free forms, links and tools.” Click on the “links” section, and scroll down to “parts.” In the OEM section, for

plans. You can have the estimating system on one screen, while looking at parts diagrams on the other. The list of parts related sites includes www.fordparts.com, www. estore.honda.com, www.mazdausa.com, www.volvopartswebstore. com and many others—just a lot of resources I believe most people are not familiar with. As I’ve said, these sites may not resolve all of your parts challenges. But they can be another tool in your toolbox. Have you found other websites helpful in identifying and locating needed parts? Go to collisionadvice. com/contact and let me know. We’ll check it out to see if we should add it to our list. And hang in there. It sounds like parts supply chain issues won’t be fully resolved soon. But things should start to get better this year.

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per year will be awarded to deserving collision repair technician students for five years. An industry veteran of 35 years, Adelmann recently retired after ABRA merged with Caliber Collision. He was the chief business development officer for ABRA and now serves as an industry consultant. While serving on CREF’s Board of Trustees, he “witnessed firsthand the impact that CREF’s efforts have on schools and students,” Adelmann said. Source: CREF

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Techs of the Future with Stacey Phillips

Stacey Phillips is an award-winning writer for the automotive industry based in Southern California. She has more than 25 years of experience as an editor and writer and has assisted a wide range of businesses and fields. In addition, Stacey has co-authored two books. She can be reached at stacey@radiantwriting.com.

Matrix Trade Institute’s Efficiency Bootcamps Help Collision Repair Industry Grow and Retain Employees Many say one of the most alarming issues in the collision industry right now and in the foreseeable future is the desperate need for technicians. The industry is losing techs to retirement, and competition for tradespeople is at an all-time high. While the need to recruit thousands of techs into the industry isn’t going away anytime soon, the need for a disruptive retention model is even more important, according to Dustin Peugeot, CEO of the Matrix Trade Institute (MTI) located in Beachwood, OH. “We need thousands and thousands of them over the next 10 years, but the current model shows that over two-thirds of people who

MTI instructor Jim Schnitz teaches proper mapping in MTI’s Blueprint/Technical Estimating Bootcamp. Participants included Kelly Henry from Classic/DCR Systems, Christopher Lutz from Rutherford Autobody and Mitchell Rife from CollisionRight’s Rife’s Autobody (with pen)

graduate from a post-secondary school defect from the industry in less than a year,” said Peugeot. “If the industry can’t find better ways to retain and grow technicians, then worrying about recruiting them is wasted energy.” Peugeot said retention is where MTI is making a difference by offering four-day, 30-hour, 80% handson Efficiency Bootcamps to employers so they can provide employees with specific skills and efficiencies to accelerate their growth. “MTI’s Efficiency Bootcamps

are a core part of our program and what makes us truly unique from any other school,” said Peugeot. “This business-to-business offering was designed to help shops upskill and retain employees efficiently and cost effectively.” Employers provide their technicians with MTI’s self-assessment, which allows workers to feel valued and play a role in their own career development. “When the technician’s goals and desire for growth meets the shop’s need to increase capacity and retain valuable employees, then MTI is the connection point,” he said. “Matrix bootcamps provide an experience that shops can’t offer in addition to a return on investment (ROI) that pays short- and long-term dividends.” Over the years, Peugeot has found more and more shops are recognizing retention must be prioritized over recruiting to ensure the next generation stays in the industry and with the companies who hire them. “This industry doesn’t just have a recruiting problem; it has a retention problem,” said Peugeot. “Retention is different today than it used to be… you have to have a better offering with a better path and execution, and it has to be fulfilling and meaningful for employees. There’s too much competition to be able to afford not getting it right.” With people defecting from the industry for jobs with companies like Amazon or Walmart that promise career paths filled with attractive promises and benefits, or competing trades that are paying more and more for services every day, Peugeot said the industry is missing a vital connection point between the skills needed to succeed and the industry’s ability to provide ongoing career development that allows new hires to see the vision and grow as fast as they’d like to. “Employees need real, tangible career education so they can learn and earn simultaneously and have

30 MARCH 2022 AUTOBODY NEWS / autobodynews.com

confidence that it’s going to connect to real development,” he said. “I think that’s what the traditional model is missing right now and that’s what we offer.” To help address the growing concern of recruiting, developing and retaining the next generation of technicians, Peugeot established MTI in 2019 with Rick Blum, COO. When the institute first opened, its primary focus was to offer automotive efficiency training for auto technicians and mechanics. Peugeot and Blum soon recognized the vital need for collision technicians and expanded the program to include a collision repair technical efficiency program. The training encompasses a 20week, employer-centric, 80% handson repetition-based curriculum with an eight-to-one teacher-student ratio. The goal is to prepare graduates to work in dealerships, collision centers and franchised and/or independent repair facilities. Students attend class in the mornings throughout the week and are encouraged to intern with a repair facility in the afternoons. This allows them to apply the hands-on training they learn at school. With tradespeople in such high demand, MTI aims to provide jobready automotive and collision technicians who don’t necessarily have industry experience. Peugeot said MTI differs from the traditional model where students attend a couple of years of school and receive a broad certification. Instead, the institute teaches skills that provide students with a good foundation. This includes hands-on repetitions and relevant skills so they can be productive, confident and efficient. “We try to make sure that we are preparing them mentally for how they can contribute,” Peugeot noted. “We are giving them a dose of what life is like in a shop as they grow their skillset.” Peugeot and Blum both have 25 years of experience in the industry. While Peugeot’s career has focused

on dealer operations and collision centers, Blum is a master technician who successfully transitioned into a service director before embarking on the Matrix journey. “We are industry people who went about creating a new type of school, not education people who added automotive and collision programs,” said Peugeot. “We think there is a large differentiator there.” Since the program started, more than 250 students have graduated from MTI. That number is expected to increase substantially since adding the collision focus. Future plans include adding ASE and federal accreditation in 2022 and then expanding to other locations across the country. Three of the initial supporters of the automotive program, Conrad’s Tire Express & Total Car Care, Penske Automotive Cleveland and Serpentini Chevrolet, have become foundation level sponsors of MTI’s auto program. “These are some of the early adopters who recognized that this is a different model focused on real efficiency and the skills employers are looking for,” said Peugeot. After adding collision repair training to the program, Peugeot said MTI connected with DCR Systems, located 15 minutes away in Mentor, OH, almost instantly. “DCR was quick to identify itself as a company that recognizes that their future was all about their ability to train their own,” he said. The company became MTI’s first corporate sponsor of collision repair. “Forward-thinking companies like DCR challenge the norm and help keep Matrix at the forefront of what’s new and meaningful in this constantly evolving industry,” said Peugeot. “The alignment of DCR’s lean philosophy and the way Matrix teaches skill-specific hands-on efficiency makes for a natural alignment between the two companies.” Michael Giarrizzo, president and CEO of DCR Systems, said MTI is a forward-thinking school

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that isn’t focused on teaching students to repair vehicles the old and traditional way. “They are teaching students the baseline skills needed in a repeatable, process-centered environment,” said Giarrizzo. “We’re proud to partner with an organization that is looking for our feedback to grow the technicians of tomorrow.” Since sponsoring MTI, DCR Systems has offered input on the school’s curriculum, provided information about its repair processes and supplied tooling. Giarrizzo and Dave Martin, director of operations at DCR Systems, regularly visit MTI to talk to students about the industry and invite technicians to tour DCR. In addition, several MTI students have been hired by DCR and attend boot camps to continue career development. “Schools like Matrix are looking at technology and the industry as it is today and trying to prepare them for the increasing challenges of the industry,” said Cheryl Boswell, CFO and managing partner at DCR Systems. “The industry has changed so much that it’s important to find

those tech schools where they are grooming the students for today’s world.” Adrian, an operations support technician from DCR Systems, attended an MTI Blueprint/Technical writing boot camp focused on becoming an effective blueprinter. “I’m learning to be as accurate as I can be, make the process work and slow down to achieve first time quality—a savings for everyone,” he said. “The DCR Systems family cares for me. They want me to improve and build a career and I want to improve for the company.” Rife’s Autobody, a three-shop MSO in Ohio now owned by CollisionRight, has had success with the MTI Collision Bootcamps for its employees. Don Rife, former owner and current operator of the business, learned about MTI about a year ago and sent Tyler, a metal tech apprentice with no prior industry knowledge, to one of the boot camps. “The experience seemed to work out really well and we have other technicians that we are planning to send in the future,” said Rife. After attending a blueprinting

ASA Podcast Focuses on EV Repair Safety The second episode of the Technology and Telematics (TTF) podcast series, “A Changing Fleet,” is now live on the Automotive Service Association (ASA) podcast channel and the “Taking the Hill” page of the ASA website. This episode features a presentation by Mark Allen, collision programs and workshop equipment manager for Audi of America. During the podcast, Allen discusses best practices for both mechanical and collision shops safely and effectively perform repair and maintenance for electric vehicles (EVs) including: • Necessary education and training for service repair professionals working on EVs in shops • Safety precautions and protocols for de-energizing high voltage systems, and recommended uniform and tools to be used while repairing EVs • Recommendations for safe layout and architecture of shops repairing EVs, and necessary equipment for the repair, transport and disposal of EV batteries

• The availability and accessibility of OEM repair procedures to all shop owners, including repair procedures for electric vehicles “We really appreciate Mark’s participation in the Technology and Telematics podcast series,” said Fred Hules II, ASA chairman. “Mark is a respected name in the automotive industry and this presentation gives unique insight into the safety precautions that we as shop owners need to be adhering to as we work on electric vehicles.” The Technology and Telematics Forum podcast, hosted by ASA in partnership with the Alliance for Automotive Innovation, features a variety of industry experts discussing the transition to an “all-electric” automotive future. Register here to receive future Technology and Telematics podcast news and episode releases. Source: ASA

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Efficiency Bootcamp at MTI, Tyler said he learned how to be more accurate in his job. “MTI made the environment so it’s not stressful,” he said. “It’s going to help everyone in the shop; not just me, but our estimators, the parts department and the people I work with, making things quicker, faster and more efficient.” Rife has initiated internal training programs in the past but found that partnering with others who are experienced at training technicians, such as MTI, results in better success. “Unless you are some amazing operator and have unlimited resources, you are better to partner with somebody who has already done this and understands what’s necessary than trying to recreate the wheel,” he said. Since Rife’s initial success with Tyler, CollisionRight has become the second foundation level partner of MTI’s Collison Program, and is in the process of providing employee assessments to its young technicians to take advantage of the growth and retention the bootcamps provide

to CollisionRight’s growing list of shops. Peugeot said businesses like DCR Systems and CollisionRight, that invest in their people and provide a great career experience, will be the ones that are ultimately successful. “There are too many employers who want to hire people the old-fashioned way and pay them a little and not do progressive things to develop them or provide onboarding experiences that are positive and culturally right for this generation,” noted Peugeot. He said shops that want to pay ransom and steal technicians from other shops aren’t fixing the industry. “They are hurting the industry… but in a world where they don’t have a better option, it’s all that they can do,” he observed. Peugeot stressed the importance of recognizing young technicians are an asset and recommends employers offer competitively paid internships and tuition reimbursement, as well as devote the time and resources to

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Industry Insight

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

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Automakers: Collision Repairers Must Ensure ADAS Calibration Procedures Are Followed

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The importance of proper ADAS cal- mental?” Kaboos said the Honda training ibrations was a key focus as the Society of Collision Repair Specialists center in Illinois drove a new Civic at with Ed Attanasio (SCRS) brought collision repairers the NHTSA target used to test emerand automakers together at an event gency auto-braking, and the system in Las Vegas during the SEMA Show. worked 10 times in a row, stopping Scott Kaboos, assistant man- the vehicle three or four feet from the ager of collision repair training and target as designed. technology for American Honda, told those attending with the OEM Collision Ed Attanasio Repair Technology Summit that automakers call for many calibrations to be done on a level floor with good reason. “We did a little test,” Kaboos said, noting Honda’s service information says there can be no more with Ed Attanasio than 1 degree of pitch or slope to the Scott Kaboos of American Honda said testing floor when performing calibrations. at the automaker’s training center demonstrat“Traveling around to a lot of our dealed the need to perform ADAS calibrations on a erships, we found that most of their level floor when called for in the procedures floors do not meet that requirement. So we started asking How “So then we took that same car withourselves: Ed Attanasio important is this? Is this really detri- and put the rear wheels in our drain

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in our wash bay at our training center,” Kaboos said. “We calculated the slope on that, and found that the car was sitting at a 1.6 degree incline. We re-aimed the radar, using the factory specifications and tools. When we were done, the scan tool said aiming was complete. There were no codes. We test drove the car around the block. It gave us no indication there was anything wrong with the car. There were no lights on the dash.” But then the vehicle was driven at the same NHTSA target. “We had very different results,” Kaboos said. “It honestly blew through that target at 20 miles an hour like it wasn’t even there. The light on the dash didn’t blink. It didn’t beep at us. It just punted that target. That was a big eye-opener to us on the training side as to how important that one little line in the service information is: do this on a flat floor.”

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Kaboos said the other noted requirements—proper air in the tires, a full tank of gas—are also important. “Anything that changes the ride height or ride angle of the car is going to throw off all the geometry,” he said. “You’ve got to pay attention to all of that.” Subaru of America’s Ted Hicks said during the same SCRS session that complete repair of the underlying metal where an ADAS camera or radar is attached is also critical. “I asked a panel of technicians in Dallas: what’s the single biggest problem you’re having with calibrations of blind-spot monitoring radar units and the EyeSight cameras that come from body shops after a repair,” said Hicks, a regional technical training manager for the automaker. “They said that the panel that the camera or unit mounts to has got to be exactly correct. If the sheet metal behind it is bent, the radar

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unit or camera will never point in the right direction.” One problem: that metal is often behind trim or covered by the bumper cover, so some shops may not repair it. “Nobody cares what the sheet metal looks like, right,” Hicks said. “It can be wrinkly as all get-out and nobody’s going to care because the bumper cover is going to cover it or the EyeSight camera is going to cover it. I’m here to tell you: It matters. Please find the reference points in the service information.” Kaboos said he also has some concerns that shops often aren’t doing needed calibrations. He estimated between 5% and 10% of Honda’s certified collision centers are doing their own ADAS calibrations in-house, while some use a mobile service or a stand-alone calibration center in their market. “But still, the majority are subletting to the dealers,” Kaboos said. “I’m not going to make a judgment either way, as long as you’re getting it done properly.” He said CCC Intelligent Solutions pulled final repair appraisals for Honda vehicles over the course of

a year that “had an event that would have required a calibration of one of these systems.” Of those, only 20% listed a calibration. “Eighty percent of the cars that were in accidents that needed to have a calibration did not get one,” Kaboos said. “At least it wasn’t on the estimate. So unless they did it for free, and they didn’t put it on the estimate—highly unlikely, right—it didn’t get done. That scares me.” Also during the session, Taylor Jozwiak, collision R&D workshop manager for Rivian, talked about how that new company produces collision repair procedures for its vehicles. Jozwiak said his “internal body shop” in California, which includes body and paint technicians and an “estimating specialist,” works closely with the Rivian service engineering team, “which creates our repair procedures in CAD.” “As we all know, CAD is great from an engineering standpoint, but some things get lost in translation when transferred over into reality,” Jozwiak said. “So that’s where my team comes in. We take the repair procedures and validate them on bodies

in white, looking for accuracy, quality of repair and ultimately safety. If we find any discrepancies or things that should change, we provide that feedback to our engineering team, and they make the necessary adjustments to repair procedures. At the end of the day, we want to make sure the people out in the field, the people in your shops, are getting high quality repair information.” The process also involves tracking repair times. “We try to replicate what the technicians are using in shops—the tooling, the equipment,” Jozwiak said. “We use all the same stuff as a traditional body shop would. We collect those times, and that helps us publish times in the estimating systems.”

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Registration Open for WIAC Conference Women in Auto Care, a community of the Auto Care Association, announced the opening of registration and the keynote speaker for its upcoming Women in Auto Care Leadership Conference, taking place March 23-25 in Indianapolis, IN, at the Marriott Indianapolis Downtown. The 2022 conference theme is “Reconnect and Revitalize” and will feature a range of sessions and activities focused on personal and professional development, including roundtable discussions and leadership stories. The conference will feature keynote speaker Sherron Washington, founder and CEO, P3 Solution, a full-service marketing and communications firm located in the Washington, D.C., area that specializes in providing easy marketing strategy, messaging, design and social media solutions for businesses. For more information and to register, visit www.autocare.org or contact womeninautocare@autocare.org. Source: Auto Care Association

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Certain Metallic Finishes May Interfere with ADAS Radar Systems, PPG Expert Says by Ed Attanasio

A decade ago, ADAS was an acronym very few people in the collision repair industry were familiar with. But now every collision repair professional on the planet knows what it means and how it affects them every day. More and more auto body shops are taking their diagnostics in-house and hiring techs who have the proper training to do the job right. If ADAS does not work correctly or one of the systems is misaligned, people’s lives could be in jeopardy. Within the last two years, paint manufacturers have discovered certain metallic finishes interact with the electromagnetic radiation used by radar. It may interfere with radar transmission and if it goes above a threshold set by the vehicle, it can potentially present a serious safety issue. Paint and coatings suppliers such as PPG have evaluated swapping the aluminum pigments in the metallic finish with alternatives to significantly enhance radar transmission. These reformulated colors will maintain a good match to the car’s original finish while reducing the radar transmission loss, so safety systems can function as designed. PPG’s Global Products and Segments Director Nick Tullett has been working with carmakers to develop refinishing products that won’t interfere with ADAS. One of his top deliverables is to help the OEs to fully understand the impact of certain metallic finishes on ADAS. Even a low-speed fender bender can damage these advanced systems, reducing driver safety—a concern for every stakeholder involved. “ADAS technology is actually located in areas of the car that are easily and frequently damaged,” Tullett said. “Carmakers have been installing ADAS such as forward collision, automatic emergency braking, lane departure warnings and adaptive cruise control in peripheral, easy-to-damage vehicle parts like windshields and bumpers. These parts often house radar, a system that uses radio waves to detect people, autos and other objects close to it, to enable many of these safety

features. “ADAS is presenting new challenges for collision centers and for the repair industry in general,” Tullett said. “There are so many stakeholders involved, from the vehicle makers to the collision repair shops to the paint companies. Our main concern at PPG is how do we repaint and repair certain metallic

PPG’s Global Products and Segments Director Nick Tullett has been working with carmakers to develop refinishing products that won’t interfere with ADAS

colors without impeding their performance? We believe there’s not yet enough leadership and direction out there to navigate through this, so our goal is to help all of the different stakeholders to make the right choices when it comes to ADAS. “We have some numbers that indicate that about 50% of all new cars were equipped with at least one radar system and by 2025 we’re expecting it to be more like 85%. So, being able to effectively repair these cars is really important for our collision center customers.” One of the main challenges associated with ADAS is the fact many of these safety systems can be hard to detect visually. “Collision repair shops now rely on customer discussions, visual indicators and automaker data to pinpoint ADAS,” he said. “Training to spot these various systems more precisely may be necessary for techs to determine the repair process more carefully. For example, body shops could simply repair minor bumper damage by filling scratches and then spot painting before the advent of ADAS. However, body filler compounds and new paint can impair today’s vehicle sensors. “In addition to considering the ADAS automobile’s technical safety and functionality components, techs

36 MARCH 2022 AUTOBODY NEWS / autobodynews.com

will need education on how certain colors and particular finishes can impact the sensors of these safety components.” Acquiring the right devices to perform repairs and calibrations is key, but training is also a big piece of the picture. “Techs will also need training on recalibrating sensors using specific equipment and software for diagnostics, services, replacements and repairs to meet automaker specifications,” Tullett said. “However, it may be some time before most shops are equipped to offer in-house calibrations because most independent collision centers don’t have the proper calibration equipment inhouse. Right now, many body shops use outside diagnostic companies or take the vehicles to their local dealerships, but soon that may become impractical with ADAS in literally every new car built.” Shops will also have to consider investing in more sophisticated estimation tools, along with technician training, in order to assess the costs

of damage to driver safety technology installed in areas such as bumpers. Using historical data, predictive analytics and VIN integration, the estimation software can build a more accurate estimate for collision repair professionals. “Until recently, automakers opted to replace instead of repair the damaged bumper, which proved expensive and with significant pushback from car insurance companies,” Tullett said. “As such, automakers have turned to paint and coatings suppliers to identify a better solution. “PPG has partnered with many OEs to calculate the impact of all their colors,” he said. “These include metallic finishes on repainted bumpers to better understand the transmission loss of radar signals. Data shows that while the vast majority of colors do not impact the functionality of ADAS, a handful of metallic finishes do pose an issue. At certain concentrations, the aluminum pigments used in metallic paints reduced the transmission of radar signals and interfered with the

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 37 1/6/22 8:41 AM

operation of the ADAS. “It’s a concern for paint companies because one fourth of all new cars produced every year are painted with metallic colors,” Tullett said. “It’s a very popular color space, and we don’t think that car makers are going to abandon that color space. They’re looking for us to come up with solutions so that they can maintain that color space. “We’ve identified a number of existing materials that we can use, so that they won’t impede with radar performance, and still give us a good color match,” he said. “In the paint business, color accuracy is everything. Everybody wants their car back looking like it was never in an accident, right? The most visual thing they see is the color. So, we’ve identified alternative materials, and some of them are already present in our paint systems. We’ve identified that small number of colors which are affected and developed alternatives.” Collision repairers will need to consider the repair guidelines and technical and service bulletins provided by automakers to keep safety intact. PPG plans to issue a technical

bulletin relating to radar and the impact of certain metallic finishes for collision repair professionals. In addition, the company recently launched the PPG KNOWLEDGE COLLEGE™ online learning management system that provides the refinish industry with the most comprehensive online training programs available. Over the last couple of years, PPG has done a lot of joint work with carmakers, looking at their color palettes and measuring the radar transmission of the colors in their color ranges. “We have identified any potential problem colors where the interference in the radar with the radar signal is enough to actually impair the correct functioning of the radar,” Tullett said. “It’s worth pointing out that the very vast majority of colors in your own cars today are absolutely fine. They don’t interfere with the radar transmission, and they won’t affect the safe working of the ADAS. “Now one of the ways that carmakers have dealt with this up until now is to make a blanket recommendation that says, when you have a

Axalta’s Radar Transmission Simulator Receives 2022 BIG Innovation Award Axalta, a leading global supplier of liquid and powder coatings, announced its Radar Transmission Simulator (ARTS) with Color Palette Optimizer for Autonomous Vehicles was named a winner in the 2022 BIG Innovation Awards presented by the Business Intelligence Group (BIG). The annual business awards program recognizes organizations, products and people that bring new ideas to life in innovative ways. “We are proud to receive a 2022 BIG Innovation Award for our ARTS technology,” said Robert Roop, Axalta’s chief technology officer. “The award affirms Axalta’s ongoing commitment to innovation and to developing advanced technologies that better serve our customers.” ARTS with Color Palette Optimizer for Autonomous Vehicles is a patented technology breakthrough that uses Axalta’s color-modeling expertise to optimize coating formulations that maximize the color palette and match an existing color, while ensuring

compatibility with radar sensors. Radar is an enabling technology used in advanced driver assistance system (ADAS)-equipped vehicles. Precision color matching and coatings formulation allows for radar-compatible coatings without compromising aesthetics. “Innovation is driving growth in the global economy,” said Maria Jimenez, chief operating officer of the Business Intelligence Group. “We are thrilled to be honoring Axalta as they are one of the organizations leading this charge and helping humanity progress.” Organizations from across the globe submitted their recent innovations for consideration in the BIG Innovation Awards. Nominations were then judged by a select group of business leaders and executives who volunteer their time and expertise to score submissions. Source: Axalta

car that’s equipped with radar if the bumper is damaged, you may not repair that, you must simply replace it,” he said. “And by doing that what they’re saying is when you replace it, it’s going to have one layer of paint applied to it. And they’re OK with that. What they’re concerned about is if you have a repair using body filler, multiple layers of paint might interact with a radar to an extent where the performance of the radar is degraded.” PPG is currently researching and developing a wide range of novel materials to devise solutions that won’t compromise radar in some vehicles. “We want to retain our capability to stay within that coveted silver metallic color space that is much more transparent to radar than aluminum or other existing pigments,” Tullett said. As ADAS evolves, companies such as PPG will be working hard to develop products that will complement rather than impede ADAS, especially radar. www.autobodynews.com

CCC Acquires Insurtech Safekeep CCC Intelligent Solutions announced it acquired Safekeep, an AI leader in subrogation claims management technology. Safekeep is an enterprise platform that leverages AI to speed and improve subrogation management across auto, property, workers’ comp and other insurance lines of business. The acquisition of Safekeep is a natural next step in CCC’s vision to deliver end-to-end straight-through claims processing. The acquisition of Safekeep extends CCC’s AI-powered claims software to include subrogation management, a critical function in achieving claims resolution, and now part of CCC’s completely digital, AI-enabled, end-to-end claims solutions. Safekeep solutions are available to any insurer. Subrogation protects consumers and insurers from paying for losses where the insured is deemed not at fault or only partially at fault. Source: CCC Intelligent Solutions

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Industry Insight with John Yoswick

Collision Repairers Discuss How They Are Coping with Parts Supply Chain Issues

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A Collison Industry Conference they repair. (CIC) committee presentation earliBut Matt Radman of Coach er this year confirmed parts supply Works Auto Body in Mesa, AZ, notwith Ed Attanasio chain issues continue to plague col- ed that solution is not without its lision repairers. own challenges. A poll of repairers in the room “We had a [Hyundai] Sonata at CIC in Phoenix found about one- that we couldn’t get the side garthird said parts-related issues lead nish that goes from the bottom of them to delay scheduling about 40% the door and across the wheel well,” of jobs. Another one Ed in four said Radman said. “Right behind that is with Attanasio parts issues lead to delayed schedul- an exposed hole and unless you seal ing 60% of the time, and almost an it somehow, moisture is getting beequal number said it was 80% of the hind there. So you have to address time. this on a case-by-case basis.” Greg Horn of PartsTrader said Something as simple as a misshis company’s data indicates the me- ing window moulding could allow dian number of days for parts deliv- moisture to get into the door, he with Ed Attanasio eries was fairly stable over 2021. said, noting that returning unfin“What’s changed is the number ished vehicles requires thinking of outliers, the number of delays for through these issues and making individual components, which has sure everyone involved, including increased pretty radically,” Horn the customer and insurer, is on the said, reaching 14.7 days Decem- same page. with EdinAttanasio ber, up from 7.4 days in February Ben Clymer Jr. of Ben Clyand March of last year. mer’s The Body Shop in Southern He said if some relief from the California said he’s experienced microchip shortage enables auto- parts supply chain issues firsthand: makers to ramp up production this he’s driving his own vehicle with year, that should reduce used vehi- damage from an accident because cle values, putting moreStacey of those Phillips ve- five of the needed parts are on backwith hicles into the recycled parts supply order. chain. He said, like Radman, his com“It is probably the latter half of pany is returning more otherwise this year when we start to see some repaired vehicles to customers missrelief on both OEM and the recycled ing cosmetic parts, though he said that requires letting customers know parts side,” Hornwith said. Stacey Phillips Still-elevated transportation costs, well in advance that’s a real possihowever, have non-OEM parts man- bility, and also “triggers having an ufacturers in Taiwan rethinking what additional tracking system for all they ship. those vehicles.” “We’re also triple-checking “Should I put in one bumper cover that would take up the space of what can actually be repaired. Our with Stacey Phillips 10 headlight units, or do I ship those repair percentages are going up,” 10 headlights at a bigger margin,” Clymer said. Horn said. “So in the short term, I Rich O’Leary, manager of Fix think we’re going to see [shortages Auto Sierra Vista in Arizona, said or] price increases on larger after- another challenge of releasing vehimarket components.” cles with a cosmetic part that hasn’t The committee repairers arrived is the customer satisfaction withasked Stacey Phillips at the meeting what they are doing survey question related to whether to address parts issues. A majority they had to bring their vehicle back (70%) said one response has been to the shop. to return more vehicles to customers He said his shop has “invested with cosmetic parts still on order. in some steel and aluminum pulling Nearly two in five said that’s hap- equipment, and we do find ourselves pening with 30% or more of the cars repairing a lot more than we used

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to,” though he noted that entails understanding when that can be done as part of a safe repair, and what should not be repaired. O’Leary said they also use the PartsVoice website to locate needed OEM parts beyond the local market. “Often you’ll find a dealership around the country that has the part sitting on their shelf collecting dust,” he said. “It costs more to have them package and send it, but that’s an alternative.” But some at the meeting said searching for parts at dealerships out of your shop’s market doesn’t always resolve the issue. Some suppliers, for example, may not be willing to sell a part to ensure they have it for those in their market. “There’s a natural inclination when supply is short to take care of your best customers,” said Ken Weiss, who moderated the CIC dis-

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cussion. “One of my other concerns is that all of the parts platforms that I’m aware of on the shop or insurer retail side expect the supplier to pay for shipping. Because of that, I know there’s a lot of parts that are probably not put into the search network because the supplier is not going to absorb the shipping when it’s a low-cost part. “Or if it’s what we refer to as dimensionally-challenged; shipping a sheet metal quarter panel could cost more than the quarter panel is worth,” Weiss said. “But to me it’s better, especially if you’re the insurance company, to get the quarter panel and pay the shipping rather than have the car sitting in limbo for two months.”

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 41

Some Auto Parts Cheaper at Walmart, Fixed Ops Director Shocked to Find by Ed Attanasio

After giving his wholesale parts customers deep discounts through price-matching programs and taking a miniscule profit, Charlie Monteleone, corporate fixed operations director for the Ancira Automotive Group, recently discovered he can buy some of his parts cheaper at Walmart than through his own jobber. It was an eye opener and surely not a warm and fuzzy moment for Monteleone. “I am a Walmart shopper and the type of guy who will walk down every aisle when I’m there, whether I need something or not,” he said. “If you’re in the business and you see a Mopar or an AC Delco filter, for example, it catches your eye. I compared their prices to our dealer net prices on the exact same filters and 50% of all the parts that Walmart has on their shelves is [12-14%] less than what we can purchase them for.” Monteleone started his career as a Ford master technician. Today, he is the top guy at Ancira, headquartered in San Antonio, TX. The company, which has 11 locations in Texas, is celebrating its 50th anniversary in 2022. Ancira offers both mechanical and collision repair services for Chevy, Nissan, Chrysler, Jeep, Dodge, Kia, VW, Ford, GMC, Buick and RVs, and has the largest collision center in San Antonio—45,000 square feet—that employs 55 people and stocks more than $1 million in crash parts. The Ford Motor Company played a major role in Monteleone’s household during his formative years. “My father started out as a Ford tech and then worked his way up to become a parts and service director,” Monteleone said. “I’ve followed in his footsteps and became a Ford master technician, and my journey has been very similar to my dad’s career.” The journey now in 2022 is a little different and Monteleone is facing issues Dad never had to deal with. Competing in the dealership world is already tough with tight margins, but throw in the pandemic and the fact people are keeping their vehicles longer—it’s a whole new

ballgame. The dealers that are succeeding are thinking outside of the box and adapting on the fly, so when the industry throws Monteleone a curve, he must respond quickly and definitively. On pace to do $31 million in wholesale parts sales this year, Monteleone admitted problems within the supply chain have impacted his business tremendously. “We’re feeling it and the shops are definitely feeling it even more,” he said. “Right now, my repair fill rate off-the-shelf is 70%, which is not horrible. Our pre-pandemic numbers were around 85% with our same-day at 94%. We’re doing a lot more major repairs because people are not buying new vehicles during the pandemic, and the availability of parts has been an ongoing concern.” To get the parts they need for their in-house repairs as well as for their wholesale clients, Monteleone’s parts managers have had to hustle and leverage relationships to succeed. “My parts people are very active, going dealer-to-dealer or getting the manufacturers to approve the use of aftermarket parts on warrantied repairs,” Monteleone said. “We’re winning doing it that way, but I always tell my parts managers that they have to be on their toes and be really, really focused on their work in process.” With his OEs’ warehouses located in Dallas—4.5 hours away by car—Monteleone obviously can’t rely on them to complete his parts orders. But luckily there are several competing dealerships selling the same brands in close proximity, he said. “We source them for anything we don’t have on-hand and when we recondition used cars, we always now opt mainly for aftermarket parts on those jobs.” Acquiring parts from the competition means Monteleone is paying premium prices, which impacts his bottom line. “From our neighboring dealerships, the going rate charge is cost plus 15%, which is a premium price and a little steep,” he said. “If you’re selling the part to one of our wholesale shop customers, we’re already

42 MARCH 2022 AUTOBODY NEWS / autobodynews.com

giving them a deep discount. So, we are taking a real beating on those orders and selling those parts at a loss. Serving the customer is our priority here, and this is one of the realities we have to deal with.” In today’s wholesale parts world, the contenders are separating themselves from the pretenders, a trend that will continue, Monteleone said. “The differences between a parts manager who is a strong retailer and focusing on profitability versus someone who is slinging a lot of paper to sell at a high volume are becoming more and more evident,” he said. “We definitely want to be on the right side of this and that’s why we work so hard to be keep our wholesale customers happy while being profitable overall.” What’s the solution? “I can buy the parts from Walmart and make more money, so that’s what I did,” he said. “I made a big purchase and when my factory rep came in for a visit, she was surprised and a little perplexed to see a wall of parts I bought at Walmart.

I told her I won’t be buying certain parts from you anymore because I can get them cheaper at Walmart. She didn’t know what to say! I originally discovered this a few years back in Florida and the same thing is happening now in Texas.” Right now, Walmart isn’t retailing crash parts and is focusing on marketing DIY types of parts. But no one would be surprised if this trend could gain momentum in some states to the point where certain collision parts and products could be undercut by large retailers. “The OE wants to cut out the middle man and eliminate the jobbers, to be honest,” Monteleone said. “They all want to go direct and that’s why they’ve done things like cutting their return allowances in half, for example. Why are we selling our parts at a deep discount while the manufacturers have decided to work with Walmart? It makes no sense.” www.autobodynews.com

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Labor Rate, Tech Shortage, ADAS Panels Highlight Updated Educational Slate at NORTHEAST 2022 The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is excited to share its updated slate of educational programming for its flagship event, the NORTHEAST® Automotive Services Show, which will return live March 18-20 to the Meadowlands Exposition Center (MEC) in Secaucus, NJ. AASP/NJ is proud to announce the inclusion of several exclusive panel discussions, beginning with “The Continuing Tech Shortage: How Do We Fix It?”, which will be moderated by Michael Bonsanto of Passaic County Technical Institute and I-CAR and will include a number of subject matter experts: Brandon Eckenrode of the Collision Repair Education Foundation, Keith Egan of Betag North America, Josh Laurent of Automotive Business Management, Bart Mazurek of CCC Intelligent Solutions and Greg Settle of Techforce. A panel discussion on “Mastering the Appraisal Clause” provides NORTHEAST attendees with insights into this complex topic, shared by AASP/NJ Executive Director Charles Bryant, Robert McDorman of Auto Claim

Specialists, Barrett Smith of Auto Damage Experts, Inc. and John Walczuk of ZB Negotiations. This conversation, as well as the following two panels, will be moderated by industry veteran journalist Joel Gausten. “Labor Rate 2022 and Beyond: How to Get What You’re Worth” will feature panelists AASP/NJ President Jerry McNee, Lucky Papageorg of AASP/MA, Burl Richards of ABAT, Smith, and Sam and Richard Valenzuela of National AutoBody Research. Anyone curious about “The Future of ADAS” won’t want to miss the opportunity to listen to Nick Barbera of ADAS Diagnostics/Union Collision, George Lesniak of Autel, Eric Newell of AirPro Diagnostics and Frank Terlep of Auto Techcelerators, LLC, dive into the nuances of this complex, ever-changing topic. Timothy Morgan of Spanesi Americas, Inc. joins forces with BASF’s John Shoemaker to present “Beyond Blueprinting to Guiding the Repair Process.” Later on, Morgan will partner with Chuck Olsen of AirPro Diagnostics to educate attendees on how they can “Get it Straight to Calibrate.”

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Gerry Bonanni of Ford Motor Company will discuss “Accessing Ford Repair Information, Collision Sectioning Procedures for Aluminum,” while Lee Rush of Sherwin-Williams Automotive Finishes will offer advice on “Managing the Customer’s Experience.” New Jersey shops also have the opportunity to qualify for their auto body license renewal certificate by attending “OEM Certification Success: Dos and Don’ts,” taught by Dave Gruskos of Reliable Automotive Equipment. “None of us know it all, but NORTHEAST gives attendees a great chance to learn something new that they can immediately implement to improve their businesses,” McNee said. “All classes are designed to educate attendees and give back to the industry. If you attend one class that helps your shop generate additional income or improve your business practices, it’s a win-win! We’re excited to see everyone at NORTHEAST in March!” To register and to keep up with the latest information and announcements related to NORTHEAST 2022, visit aaspnjnortheast.com. Source: AASP/NJ

Continued from Page 32

Efficiency Bootcamps ensure there is a good onboarding experience. This includes providing a career path and letting technicians know management cares about their growth. “They want to feel like they are connected to the goals of the employer and feel part of something larger,” said Peugeot. Peugeot’s advice to shops is to take time to understand their next technicians are already in their market. “They just don’t understand how to get into the collision industry and learn what they need to learn fast enough in an organized fashion to make the leap,” he said. “Shops willing to take that seriously and provide the training they’ll need to have confidence to make the leap find this magical thing that occurs over time—they no longer have a recruiting problem.”

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Industry Insight with John Yoswick

Remote Scanning Companies Foresee More ADAS Calibrations for Auto Body Shops in the Future

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Nick Dominato, a senior vice presi- replaced. By 2021, those requiredent at asTech, said he believes col- ments had been broadened to call lision repairers should be prepared for calibrations after a windshield is with Ed Attanasio for automakers to broaden their removed or replaced, and after any ADAS calibration requirements. structural body repair. “Because the automakers un“Again, moving from a narrowderstand that vehicles are being mar- er calibration requirement of only keted, sold, driven and experienced when you touch the sensors, to these via those advanced driver assistance broader calibration requirements features, and it’swith important for safe- that reflect the concern that a sensor Ed Attanasio ty and the customer experience that might have been jolted or shifted or those things work after a collision,” moved,” Dominato said. Dominato said during a CIECA He was asked if he foresees webcast in January. automakers shifting toward more self-calibrating systems. He said most sensors have some self-calibration cawith Ed Attanasio pability, but that post-collision calibrations are not likely to go away. “A sensor may be able to compensate for mechanical wear and tear, settling with Ed Attanasio of the suspension, or some bumper warping as a result of cold winters or hot He said OEM service informa- summers, things of that nature,” he tion that may have initially called said. “But when we’re talking about for calibration only after a sensor a quarter panel that’s being replaced, is removed or replaced, for examor an impact bar that’s smashed as with Stacey Phillips ple, now may say—as in the case of a result of a front-end collision, I Nissan—that radar sensors must be don’t think the technology is ever calibrated “after any repair situation going to get to a place where it can to the front of the vehicle that would completely self-calibrate.” During another industry event, cause the radar sensor to be shifted, Eric removed, reinstalled or jolted in the with Stacey Phillips Newell, vice president of business development at AirPro collision.” Honda in 2017 called for cal- Diagnostics, said he believes how ibration of camera or radar units calibrations are performed may when they had been removed or change. replaced, after a front-end collision “I’m from Chicago. Dynamic or when doors were adjusted or calibrations are very difficult come

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this time of year because of snow, inclement weather,” Newell said at an SCRS Repairer Driven Education session during the SEMA Show in Las Vegas. “And the OEMs are seeing it. We’ve had discussions with Tier 1 vendors and OEMs. So we’re predicting that there’s going to be a shift toward more static calibrations as time goes on.” Newell also discussed what to consider before a collision repair business equips to perform calibrations. If you expect to do retail work for other shops in addition to internal work, Newell said, it may be preferable to set up a calibration center off-site, with a different name, potentially as an LLC or separate business structure, to avoid other shops not wanting to send work to a “competitor.” “If you’re Newell’s Autobody, I probably wouldn’t name it Newell’s

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Calibration,” he said. An off-site facility also gives you some flexibility in terms of location—the back of an office park with little traffic, or a high-traffic street corner with good visibility— and what you will therefore have to spend for rent, signage, building improvements, etc. For MSOs, he said, a location convenient to all of your shops allows for a hub-and-spoke model. Alternatively, find a location with a lot of other independent shops within a reasonable radius, Newell suggested. An off-site location and separate business entity makes it easier to get paid when subletting the work to yourself, including transport of the vehicle from your shop and back. “If it’s your existing business and in your own building, that becomes more difficult,” Newell said.

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Bill to Ensure Consumer Choice in Auto Repair Introduced in U.S. House U.S. Rep. Bobby Rush (D-IL) introduced the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, to ensure the preservation of consumer choice, a fair marketplace and the continued safe operation of the nation’s 288 million registered passenger and commercial motor vehicles, 70% of which are maintained by independent repair facilities. The move is applauded by the Automotive Aftermarket Suppliers Association (AASA), Auto Care Association, CAR (Consumer Access to Repair) Coalition and Specialty Equipment Market Association (SEMA). The REPAIR Act will accomplish this by: Preserving consumer access to high quality and affordable vehicle repair by ensuring vehicle owners and their repairers of choice have access to necessary repair and maintenance tools and data as vehicles continue to become more advanced. Ensuring access to critical repair tools and information. All tools and equipment, wireless transmission of repair and diagnostic data, and access to on-board diagnostic and telematic systems needed to repair a vehicle must be made available to the independent repair industry. Ensuring cybersecurity by allowing vehicle manufacturers to secure vehicle-generated data and requiring the National Highway Traffic Safety Administration (NHTSA) to develop standards for how vehicle generated data necessary for repair can be accessed securely. Providing transparency for consumers by requiring vehicle owners be informed that they can choose where and how to get their vehicle repaired.

Creating a stakeholder advisory committee and providing them with the statutory authority to provide recommendations to the FTC on how to address emerging barriers to vehicle repair and maintenance. Providing ongoing enforcement by establishing a process for consumers and independent repair facilities to file complaints with the FTC regarding alleged violations of the requirements in the bill and a requirement that the FTC act within five months of a claim. As vehicle technology continues to advance, new barriers to a competitive auto repair market are emerging. These barriers limit consumer choice in where to repair their motor vehicles and increase the cost to repair and maintain vehicles. The REPAIR Act will reduce these barriers, putting consumers’ interests first. “Today is one of the most memorable and important days in the history of the aftermarket. The REPAIR Act will help guarantee consumers’ rights and the ability of the industry to ensure their vehicles operate safely,” said Paul McCarthy, president and CEO of AASA. “From the repair shop to the board room, this effort has been fueled by the people of the aftermarket, and we couldn’t be prouder of that alignment behind this important legislation. This effort supports principles of competition, consumer choice, and safety that we believe will benefit the whole automotive industry in the long run. We look forward to working with Rep. Rush and our industry colleagues towards passage of this critical legislation.” “Ensuring consumer choice while retaining a free and competitive market across the vehicle lifecycle is at

the heart of this legislation,” said Bill Hanvey, president and CEO, Auto Care Association. “As personal transportation has become more essential than ever, we need to make sure that 288 million American motorists have access to affordable, safe and secure repairs for their vehicles. The tenets of this bill are principles-based, balanced, and address concerns shared across the automotive industry. Passage of this bill will keep consumers at the wheel while preserving an industry that contributes 4.4 million U.S. jobs and 2% GDP.” “The CAR Coalition is proud to support the REPAIR Act,” said Executive Director Justin Rzepka. “According to a recent YouGov poll, 93% of respondents agreed that they should have the right to choose where and by whom their vehicle is repaired. The REPAIR Act will ensure consumers will have more, not fewer choices, when they need a repair shop. They will also have access to the data they need to make sure the repair is done safely. This is important, consumer-first legislation and we look forward to working with lawmakers and industry partners to pass it.” “Free and fair competition is a core value in the United States,” said Daniel Ingber, vice president of government and legal affairs, SEMA. “Protecting a consumer’s personal choice when purchasing, servicing, repairing or modifying a motor vehicle is what the REPAIR Act will deliver. As technology continues to reshape the automotive landscape for vehicle safety, convenience and comfort, Congress needs to enact this important legislation. The REPAIR Act is essential to protecting access to vehicle systems,

tools and information necessary for independent repair and modification services for millions of consumers.” “Americans should not be forced to bring their cars to more costly and inconvenient dealerships for repairs when independent auto repair shops are often cheaper and far more accessible,” said Rep. Rush. “But as cars become more advanced, manufacturers are getting sole access to important vehicle data while independent repair shops are increasingly locked out. The status quo for auto repair is not tenable, and it is getting worse. If the monopoly on vehicle repair data continues, it would affect nearly 860,000 blue-collar workers and 274,000 service facilities.” The bill is introduced on the heels of three pivotal moments for consumer choice in repair. In November 2020, Massachusetts voters overwhelmingly voiced their support for Ballot Question 1—also known as Right to Repair—with 75% of the vote, which preserves their right as vehicle owners to have access to and control of their vehicle’s mechanical data necessary for service and repair at the shops of their choice. In May 2021, the FTC released its “Nixing the Fix” report, which highlighted barriers that vehicle manufacturers have instituted to squash a consumer’s right to repair. The FTC strongly supports expanding consumer repair options and found “scant evidence” for repair restrictions imposed by original equipment manufacturers. And in July 2021, President Joe Biden issued the “Promoting Competition in the American Economy” executive order, which encouraged the FTC to address anti-competitive repair restrictions. Source: Auto Care Association

DOT Issues National Roadway Safety Strategy with Focus on Safer Vehicles by SEMA Washington, D.C., Staff

The U.S. Department of Transportation (DOT) has released a new national strategy for addressing roadway safety, saying it has an “ambitious longterm goal of zero roadway fatalities.” The National Roadway Safety Strategy (NRSS) is a five-pronged approach to safety focused on safer people, safer roads, safer vehicles, safer speeds and post-crash care. Sec. of Transportation Pete Buttigieg maintains the NRSS is a first, noting it is a “comprehensive

plan to significantly reduce injuries and deaths on America’s roadways.” In the first half of 2021, roadway deaths were up 18.4% compared to the first six months of 2020, which was likely integral in DOT’s creation of the NRSS. The National Highway Traffic Safety Administration (NHTSA), an agency within the DOT, will play a vital role in ensuring the NRSS is successful. To address vehicle safety, the NRSS incorporates safety provisions already required by the infrastructure law passed in 2021. This includes a direc-

46 MARCH 2022 AUTOBODY NEWS / autobodynews.com

tive that NHTSA update the New Car Assessment Program (NCAP) to include newer safety technologies within the five-star rating program such as automatic emergency braking and lane-keeping assist. These advanced driver-assistance systems (ADAS) help prevent or mitigate the impact of crashes. SEMA will continue to monitor these updates and promote consumers’ ability to modify their vehicles that have ADAS equipment installed. The agency is also scheduled to begin a rulemaking by 2024 to require instal-

lation of automatic emergency braking systems as standard equipment on new vehicles to avoid collisions with other vehicles or pedestrians. NHTSA will also consider ways in which alcohol-detection systems and systems to detect distracted driving may be installed on new motor vehicles. As NHTSA moves forward with these regulatory actions, SEMA will closely participate in the rulemaking process. For more information, contact Caroline Fletcher at carolinef@sema.org. Source: SEMA

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Hertz Partnering with UFODRIVE to Improve EV Rental Experience Hertz on Feb. 15 announced an investment in UFODRIVE---the leading self-service electric vehicle rental company and eMobility service provider in Europe---as part of Hertz’s commitment to lead the future of mobility. UFODRIVE is the first all-digital, all-electric car rental service controlled from an app. Its advanced eMobility SaaS Platform makes transitioning to electric easy for both customers and fleet providers---delivering lean operations, lower energy costs, better charging and optimal fleet utilization using advanced AI tools. UFODRIVE’s technology delivers a two-minute “arrive and drive” entirely digital EV customer experience. The partnership builds on Hertz’s announcement in October 2021 that it is investing in EVs, with a commitment to offer the largest electric vehicle rental fleet in North America and to grow its EV fleet globally. Hertz also committed to providing the best rental and recharging experience for leisure and business customers around the

State Farm, Ford Introduce UBI State Farm® and Ford announced the launch of Drive Safe & Save™ Connected Car for customers with eligible connected Ford or Lincoln vehicles, to benefit from usage-based insurance (UBI). State Farm customers with eligible connected vehicles can opt into the State Farm UBI program, Drive Safe & Save, which adjusts premiums to an individual vehicle’s mileage and customer driving behavior. State Farm will debut Drive Safe & Save Connected Car in Alaska, Idaho, Montana and Oregon, for policies effective on or after Feb. 27, followed by a rollout across more states, excluding California, Massachusetts and Rhode Island. Eligible 2020 Model Year and newer connected Ford vehicles, with the consent of the vehicle owner, can share information directly with State Farm to enable Drive Safe & Save. Source: Ford Motor Company

world. Also in October, the company announced an exclusive partnership with Uber to make Tesla electric vehicles available for drivers to rent when using the Uber network. UFODRIVE’s Series A financing round was co-led by Hertz and Certares, in partnership with Knighthead Capital Management, and included participation from existing investors. Hertz Senior Vice President of Strategy Jayesh Patel and Venture Lead at Certares Chantal Noble Haldorsen will join the UFODRIVE board. “Our partnership with UFODRIVE is yet another major step in Hertz becoming an essential component of the modern mobility ecosystem,” said Mark Fields, Hertz interim CEO. “Together, we will pilot ways to make renting an EV even easier using UFODRIVE’s digital platforms for both the rental experience and fleet management. For customers, this partnership will help us create the future rental car experience that is all-digital and EV-centric.” “Born from a vision to deliver what we call ‘Radically Better Car

Rental,’ this investment is a major validation of that dream,” said Aidan McClean, UFODRIVE CEO. “We are proud that we are helping to accelerate the transition to zero-emissions mobility, and our investors see the opportunity ahead.” McClean added: “We pioneered and are now the premier operating system for electric fleets and already service a growing list of high-profile mobility companies.” Following successful live testing in 2021, Hertz aims to deploy UFODRIVE’S market-leading digital rental and fleet management technology to enhance its global EV fleet operations. Starting with Hertz’s key partners in the U.S. and Europe, this will offer a fully digital rental experience, charge point wayfinding, touchless smartphone access and online customer support with live telematics using UFODRIVE’s SaaS platform. UFODRIVE will use the additional capital to accelerate product development and to expand globally, with a focus on the U.S. market. Source: Hertz

Axalta Commits to Sustainability Goals Axalta, a leading global supplier of liquid and powder coatings, announced its commitment to an absolute reduction of 50% of certain greenhouse gas emissions by 2030, on its way to becoming carbon neutral in its operations by 2040— one decade ahead of the deadline set by the Paris Agreement on Climate Change. In addition, the company has made 10 new sustainability commitments for 2030. Key among these is the commitment to produce sustainability benefits from 80% of Axalta’s new product developments.To set these goals, Axalta conducted a comprehensive environmental, social and governance (ESG) materiality assessment with internal and external stakeholders, including customers, suppliers, investors, board members, community and local government leaders, and company executives. Axalta also worked to align with the United Nations Sustainable Development Goals in developing its ESG framework. Source: Axalta

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autobodynews.com / MARCH 2022 AUTOBODY NEWS 49

AirPro Diagnostics Announces New Hire

Automakers Report January Sales Automakers on Feb. 1 began releasing sales results from January. Mazda Mazda North American Operations (MNAO) reported total January sales of 21,079 vehicles, a decrease of 16.5% compared to January 2021. With 24 selling days in January, compared to the same number the year prior, the company posted a decrease of 16.5% on a Daily Selling Rate (DSR) basis. CPO sales totaled 3,119 vehicles in January, a decrease of 41% compared to January 2021. Kia

Kia America announced January sales of 42,488 units. Highlights include best-ever January perfor-

mance by the Niro family of electrified SUVs, which bested their previous record set in January 2018 by 26%. Kia also set a new January record for overall electrified vehicle sales, exceeding the previous mark by 36%.

were up 35%, representing 79% of retail volume. Venue, Tucson, Palisade, Kona and Ioniq set new January retail records.

AirPro Diagnostics, the leader in remote diagnostics, scanning, programming and ADAS calibration solutions, is proud to announce Ted McClintic has joined AirPro Diagnostics as director of field support. McClintic started his career at Church Brothers Auto Body in Indianapolis, IN, in 1998 and went on to hold executive positions with large MSOs in operations, OEM certification and quality control. The AirPro tool and calibration devices meet rigorous vehicle manufacturer requirements by having OEM licensed software and multi brand diagnostic applications resident and directly connected to the vehicle. ORION, AirPro’s cloud-based diagnostic management system, is the hub by which all services are delivered within the company’s 10-Minute Response Pledge. Contact AirPro Diagnostics at (904) 717-1711 to sign up or visit at www.airprodiagnostics. com Source: AirPro Diagnostics

Subaru

Hyundai

Hyundai Motor America reported total January sales of 47,872 units, a 10% increase compared with January 2021 and the highest January sales total in company history. Venue (+70%), Tucson (+64%), Palisade (+12%) and the Ioniq (+51%) also established new January total sales records. Hyundai did not have any fleet sales during the month. Hyundai achieved its best January retail sales ever, increasing 18% year-over-year. Hyundai eco-friendly vehicle retail sales grew 312%, while SUV retail sales

Subaru of America, Inc. (SOA) reported 44,158 vehicle sales for January, a 4.8% decrease compared to January 2021 (46,400). Like much of the automotive industry, SOA continues to face production challenges because of the semiconductor shortage and supply chain issues. In January, Forester was the top performer by volume and achieved its best January ever with 13,531 vehicle sales. Ascent sales for January increased 15.3%, while Impreza sales increased 6.1% compared to January 2021. BRZ sales for January 2022 increased 103.1% compared to the same month in 2021. Source: Mazda, Kia, Hyundai, Subaru

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U.S. Crude Oil Production Fell by 8% in 2020, Largest Decrease on Record by Bethany Blankley, The Center Square

U.S. crude oil production fell by 8% in 2020, the largest annual decrease on record, the U.S. Energy Information Agency reported. This plunge occurred one year after the U.S. reached a record annual average high of 12.2 million barrels a day in production in 2019. In January 2020, U.S. crude oil production reached a peak of 12.8 million b/d. But with federal and state lockdowns halting travel over coronavirus fears, demand for oil dropped and production became too expensive to maintain. By March 2020, the oil and gas industry experienced a “bloodbath,” and by April, the WTI was negative $40 a barrel for the first time in history. Prices at the pump also reached historic lows. To stop the hemorrhaging, crude oil operators shut in wells and limited the number of wells brought online, laying off large numbers of workers, all of which resulted in significantly lower output. By May 2020, U.S. crude oil production reached its lowest average monthly volume for the

eraging 4.87 million b/d. Its production still represented a 4% decrease of 205,000 b/d from the record high of 5.07 million b/d set in 2019. After the state shut down in mid-March last year, wells closed, rigs stopped operating and tens of thousands of workers were immediately laid off. Texas’ oil output fell in March by an estimated 235,000 b/d, the largest monthly decline ever recorded, according to the Texas Alliance of Energy Producers. The Alliance’s benchmark Texas Petro Index fell to 172 in April from 181.9 in March, the second largest monthly decline on record (the September to October Oil well and storage tanks in the Texas Panhandle. 2015 11-point drop is the Credit: Jim Parkin/Shutterstock.com largest on record). By June 2020, Texas led the naIf there was a silver lining to be found, it was in Texas and New Mex- tion in oil and gas bankruptcies. New Mexico also reached a ico fueled by drilling in the Permian Basin. In Texas, more crude oil was new record. In 2020, it saw the largproduced than in any other state or est statewide increase in crude oil region of the U.S. in 2020. production in its history. It increased Texas produced 43% of the na- production by 15%, or 133,000 b/d, tional total of crude oil in 2020, av- reaching a record annual average year at 10 million b/d, EIA reported. Overall, U.S. crude oil production dropped 935,000 b/d to an average of 11.3 million b/d in 2020. The 2020 decrease in production was the largest annual decline in the EIA’s records, the agency said. It’s been tracking U.S. annual crude production since 1940.

high of 1.04 million b/d. New Mexico also became the second-largest oil producer in the U.S. in fiscal year 2021, behind Texas. Its oil and natural gas industry contributed $5.3 billion to state and local governments in tax revenue in FY21, the highest figure recorded in state history. By contrast, decreases in production were seen in the Gulf of Mexico, Oklahoma, and North Dakota. The Federal Offshore Gulf of Mexico saw the largest decrease in crude oil production in 2020, dropping 245,000 b/d, or 13%, to an annual average of 1.65 million b/d. Much of this was due to weather related events such as hurricanes and tropical storms in the Gulf that forced operators to evacuate platforms and shut-in production. Oklahoma had the largest percentage decrease of production of 19%, with an annual average of 469,000 b/d. North Dakota saw the second-largest decrease of crude oil production of 242,000 b/d, or 17%, dropping to an annual average of 1.18 million b/d.

EV Buyers Not Researching Charging Options Until After Purchase: Study Most electric vehicle (EVs) owners conduct little to no research on charging infrastructure before purchasing new vehicles until they bring their electric vehicles home, according to a study released Jan. 31 by clean energy software leader Uplight and See Change Institute. Added to this, most did not consider their utility when looking for any information around EVs, despite an abundance of utility EV-related resources. The majority of those surveyed qualify as “reactive chargers,” only pursuing in-depth charging research after encountering a charger-related issue with their electric vehicles, such as high electricity bills after charging at home. For these participants, the extent of their charging research before purchasing the vehicle is limited to checking for an outlet in the garage. Many participants admit to “figuring it out as they go,” rather than researching charging options, capabilities and cost before the major purchase of the vehicle itself. While participants acknowledged the importance of conducting research on charging options, few

were familiar with the guidance offered by their utilities. The findings also convey a hesitancy to purchase Level 2 chargers proactively, with participants most often considering Level 2 chargers only after experiencing slow charging times with Level 1.

their utility when they typically look to dealers and gas stations when it comes to fueling their car. “Many of the EV owners we talked to cited busy lifestyles or lack of time for doing their own research on charging cost, tools and options,”

“Many of the EV owners we talked to cited busy lifestyles or lack of time for doing their own research on charging cost, tools and options,”— Devren Hobbs Participants in the focus group overwhelmingly preferred charging their vehicles at home rather than at community chargers, but they are largely unaware of the tools readily available to guide them in doing so efficiently. Those participants who did conduct in-depth research failed to take advantage of the utility offerings and primarily relied upon social media and YouTube for information, rather than seeking information specific to their home or lifestyle or by contacting qualified professionals. The ongoing switch to EVs requires a paradigm shift for consumers to look to

said Devren Hobbs, vice president of product of emerging technology at Uplight. “The research on recent EV owners echoed my personal experience purchasing an EV this fall, the lack of education and engagement and the decision to charge at home. We believe these insights show an excellent opportunity for utilities to become a trusted energy advisor and create a one-stop customer experience that helps walk customers through all available options, help them identify rebates and better understand how owning an EV will affect their electric bill. “Uplight’s EV Solutions help

utilities get ahead of the EV curve and their decarbonization goals while helping customers proactively understand and optimize charging while creating a deeper utility-customer relationship that extends beyond electric vehicles.” Other research highlights: While participants hadn’t previously used their utility’s EV resources, they were open to doing so in the future, and preferred a single EV resource on cars, chargers, rebates and related costs. Participants said had they known about the offering, they would have taken advantage of it. Most participants charge their EVs at home and overnight. This is driven by convenience and a perception that public chargers are a hassle, risky and/or time-consuming. Participants were hesitant to install Level 2 chargers even after research because of the need to find an electrician for installation and electric panel upgrade. Most participants are unaware of EV specific rates or other EV and charging-related offerings from their utility. Source: Uplight

autobodynews.com / MARCH 2022 AUTOBODY NEWS 51

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March 2022 Southwest Edition

Articles inside

Auto Body Shops in the Future ��

Issues ��

ADAS Radar Systems, PPG Expert Says ��

Fixed Ops Director Shocked to Find ��

NORTHEAST 2022��

Terry Taylor Award ��

Parts Supply Chain Challenges��

ASA Podcast Focuses on EV Repair Safety��

Cobalt, Nickel Prices ��

Grow and Retain Employees ��

Registration Open for WIAC Conference ��

Programs��

on Lasting Impact ��

March 2022 Southwest Edition

Articles inside

Auto Body Shops in the Future �������������������

Issues ���������������������������������������������������������

ADAS Radar Systems, PPG Expert Says �����

Fixed Ops Director Shocked to Find ������������

NORTHEAST 2022���������������������������������������

Terry Taylor Award ����������������������������������������

Parts Supply Chain Challenges��������������������

ASA Podcast Focuses on EV Repair Safety�����

Cobalt, Nickel Prices �����������������������������������

Grow and Retain Employees �����������������������

Registration Open for WIAC Conference ���������

Programs�����������������������������������������������������

on Lasting Impact ���������������������������������������

Auto Body Shops in the Future ��

Issues ��

ADAS Radar Systems, PPG Expert Says ��

Fixed Ops Director Shocked to Find ��

NORTHEAST 2022��

Terry Taylor Award ��

Parts Supply Chain Challenges��

ASA Podcast Focuses on EV Repair Safety��

Cobalt, Nickel Prices ��

Grow and Retain Employees ��

Registration Open for WIAC Conference ��

Programs��

on Lasting Impact ��