Southwest Edition Texas Oklahoma Louisiana New Mexico
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Bills Introduced in TX Require Full Disclosure About DRP Policies Texas Representative Craig Eiland introduced House Bill 2276 to the Texas House of Representatives on March 10; the bill is aimed at restricting insurers from limiting the parts, labor charges and repair shop the insured may choose to use. “An insurer may not directly or indirectly limit the insurer ‘s coverage under a policy covering damage to a motor vehicle by: (1) specifying the brand, type, kind, age, vendor, supplier, or condition of parts or products that may be used to repair the vehicle; [or] (2) specifying maximum labor charges for the repair of the vehicle; or (3) limiting the beneficiary of the
policy to selecting a repair person or facility to repair damage to the vehicle from a list provided to the beneficiary by the insurer,” the bill states. The bill also addresses full disclosure of an insurers repair policies and processes for claim payments through a direct repair facility and a non-direct repair facility to the insured. According to the bill insurers must also disclose to non-direct repair shops the processes and requirements to gain the DRP contract with that insurer. Eiland, who is Vice Chair of the House Insurance Committee, introSee TX DRP Bill, Page 16
Japan’s Quake, Tsunami Roils US Auto Industry as Yen surges, Auto parts’ prices likely to climb
If there was ever any doubt that the auto industry is now a completely global enterprise, Japan’s devastating quake, wave, and nuclear disaster is proving that no automaker can go it alone. One week after the devastating tsunami the situation is still critical
and most of Japan’s huge auto industry is teetering, costing the global industry hundreds of millions of dollars. ● On Thursday, March 17, American Honda Motor Co. Executive Vice President John Mendel sent a memo to U.S. Honda and Acura dealers saying the disaster in Japan will disrupt dealer orders into May. ● General Motors’ Shreveport, La, factory, which builds the Chevrolet Colorado and GMC Canyon pickups, closed because it ran out of a Japanese part that it did not identify. GM said March 19 it is cutting unnecesSee Auto Tsunami, Page 33
VOL. 29 ISSUE 4 APRIL 2011
Rich Evans Fronts Speed’s TV Hit Car Warriors
Autobody News’ Custom Columnist Rich Evans (kneeling) and the red-shirted All Stars try to school a new blue-shirted Challenger team every week in Speed’s new TV hit Car Warriors. Hard knocks and hissy fits abound, and not just from the guys
Rich Evans’ Car Warriors Interview by Ed Attanasio is online at www.autobodynews.com, search ‘Car Warriors’
REGIONAL STORIES in this issue...
Caliber Collision Expands in Houston, TX . . . . . . . . . . . . . . . . . . .p. 4
New Bills in TX Aimed at Towing, Storage Costs . . . . . . . . . . . . .p. 6
NWLCRA Discusses I-CAR, EDRs, and OSHA . . . . . . . . . . . . . . .p. 7
LA and TX Collision Industry Loses Key Players . . . . . . . . . . . . .p. 16
Bates Custom and Collision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p .32
Houston Association Finalizes Labor Rate Surveys . . . . . . . . . . .p. 4
Texas Lawmakers Want to End Driver Surcharges . . . . . . . . . . . .p. 14
Oklahoma Wants to Punish Uninsured Motorists . . . . . . . . . . . . .p. 9
NATIONAL ARTICLES in this issue...
Progressive's EDR Now in 32 States . . . . . . . . . . . . . . . . . . . . . . .p. 7
Groupon Helps Body Shops Drum Up Local Customers . . . . . . .p. 22
PreFab Ads Has New TV Spots for Body Shops . . . . . . . . . . . . . .p. 10
COLUMNS in this issue...
Insurance Insider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 18
Hey Toby—Staying out of Trouble with OSHA . . . . . . . . . . . . . . .p. 26
Yoswick—Paint Complaints Don’t Have to Lose Customers . . . .p. 30
Danalevich—Shop Strategies for Savings . . . . . . . . . . . . . . . . . .p. 34
Amaradio—Underqualified Repairers . . . . . . . . . . . . . . . . . . . . . .p. 36
Rich Evans—Remaking a 41 Chevy . . . . . . . . . . . . . . . . . . . . . . . .p. 37
Gonzo Weaver—Quick Diagnostics . . . . . . . . . . . . . . . . . . . . . . . .p. 21
Sisk—AASP/NJ’s Northeast™ 2011 Trade Show . . . . . . . . . . . . . .p. 41
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ACURA OF PLANO • Over $500,000 Parts Inventory • 15,000 Parts in Stock • Trained Experienced Crew
• In State Next Day Shipping w/Quick Local Delivery • Great Discounts
Hour: Monday - Friday 7 AM - 6 PM • Saturday 8 AM - 5 PM • Sunday Closed
Wholesale Parts Specialist: Doug Grajczyk Phone 972-964-6000 972-964-6044 Fax 972-964-6070 dgrajczyk@mcdavid.com
LINCOLN MERCURY OF PLANO • Over $400,000 Parts Inventory • 8,000 Parts in Stock • Trained Experienced Crew
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Hour: Monday - Friday 7 AM - 6 PM • Saturday 7:30 AM - 4 PM • Sunday Closed
Parts Manager: John Keith Phone 972-964-5000 Fax 972-985-3114 jkeith@mcdavid.com
HONDA OF FRISCO • Over $600,000 Parts Inventory • 11,000 Parts in Stock • Trained Wholesale Crew: Mario, Phillip
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Hour: Monday - Friday 7 AM - 7 PM • Saturday 7:30 AM - 5:30 PM • Sunday 11 AM - 4 PM
Parts Manager: Dan Zieber Phone 972-731-3175 Toll Free 1-866-442-2711 Fax 972-731-3179 dzieber@mcdavid.com
HONDA OF IRVING • Over $900,000 Parts Inventory • 17,000 Parts in Stock • Trained Wholesale Crew: Gary, Marie, Jim
• In State Next Day Shipping w/Quick Local Delivery • Great Discounts
Hour: Monday - Friday 7 AM - 9 PM • Saturday 8 AM - 5 PM • Sunday 11 AM - 6 PM
Parts Manager: Dan Zieber Phone 972-790-6008 Toll Free 1-800-492-4464 Fax 972-790-6066 hondaparts@mcdavid.com
HONDA OF HOUSTON • Over $1,000,000 Parts Inventory • In State Next Day Shipping • 100,000 Parts in Stock w/Quick Local Delivery • Trained Experienced Crew • Great Discounts Hour: Monday - Friday 7 AM - 9 PM • Saturday 8 AM - 5 PM • Sunday Closed
Parts Manager: Scott Bentley Phone 800-444-1263 Fax 713-948-1949 wwood@mcdavid.com
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Hour: Monday - Friday 7 AM - 6 PM • Saturday 8 AM - 5 PM • Sunday Closed
Parts Manager: Dick Graham Phone 800-231-9657 Fax 713-948-1949 nissanparts@mcdavid.com 2 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
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Contents Auto Angels Revs-up for 2011 Car
Give-Away Program . . . . . . . . . . . . . . 35
Bills Introduced in TX Require Full
Disclosure About DRP Policies. . . . . . . . 1
Caliber Collision Centers Further Expands
Coverage in Houston, TX . . . . . . . . . . . . 4
of Glass Businesses . . . . . . . . . . . . . . 10
Wade Ford Atlanta Chooses an Alternative
Diagnostic Solution . . . . . . . . . . . . . . . 20
COLUMNISTS
Amaradio - Underqualified Repairers Hurt
the Whole Industry. . . . . . . . . . . . . . . . 36
Dallas Repairer Donates to Local
Attanasio, BASF - Switching to BASF
East Texas Mechanics Learn Hybrid
Attanasio, Global PDR - Global PDR
High Schools . . . . . . . . . . . . . . . . . . . . . 8 Vehicle Service . . . . . . . . . . . . . . . . . . 25
Ex-GA Insurance Chief Issued Himself
Waterborne for the Green Reasons. . . . 13
Solutions & Park Place Bodywerks
Hail the Hail . . . . . . . . . . . . . . . . . . . . . 24
Licenses . . . . . . . . . . . . . . . . . . . . . . . 14
Chess - Make Sure Your Shop is Clear of
Light Cameras . . . . . . . . . . . . . . . . . . . 10
Danalevich - Business Liability Insurance:
Service in CT . . . . . . . . . . . . . . . . . . . . . 9
Evans - Remaking a 1941 Chevy Deluxe
Labor Rates Surveys and Legislation
Insurance Insider - DRPs and Fear—Hope for
Florida Officials Question Cost of Red Heartland Automotive Acquires Lube
Houston Auto Body Association Finalizes
at March Meeting. . . . . . . . . . . . . . . . . . 4
these Glaring OSHA Violations . . . . . . . 26
Review & Research Before You Renew! . 34
Back-End with an English Wheel . . . . . 37
a Reduction in the Number of Shops . . 18
Rich Evans Fronts Speed’s TV Hit Car
Louisiana Collision Repair Association
Schroeder - Bates Custom and Collision – “A
Lousiana & Texas Collision Industry Loses
Sisk - AASP/NJ’s Northeast™ 2011
Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Talks I-CAR, EDRs, and OSHA . . . . . . . . 7 Key Players, Icons . . . . . . . . . . . . . . . . 16
New Bills Introduced in TX Target Insurers for Towing, Storage Costs and Create
Advisory Committee for TDI . . . . . . . . . . 6
Warriors . . . . . . . . . . . . . . . . . . . . . . . . 1 Company With a Heart for Community”. 32 Trade Show—A Wealth of Information
for Shops . . . . . . . . . . . . . . . . . . . . . . 42
Weaver - A Quick Diagnostic Can Seem
too Good to be True . . . . . . . . . . . . . . . 21
NM Fraud Bill Would Allow Judges to
Yoswick - Paint Complaint Does Not Have
Nm Rejects Bill to Ban Illegal Immigrant
Yoswick - Recyclers, Repairers Look for
Aggregate Claims . . . . . . . . . . . . . . . . . 8
Drivers Licenses . . . . . . . . . . . . . . . . . . 8
Oklahoma House Committee Approves
Texting Ban . . . . . . . . . . . . . . . . . . . . . . 8
Oklahoma Lawmakers Aim to Increase
Consequences for Uninsured Motorists . 9
Indexof Advertisers
Lacking Parts, Louisiana G.M. Will Close
to Mean Unhappy Customer. . . . . . . . . 30
Ways to Improve Business Interactions. 40
NATIONAL
Groupon Succeeds in Helping Body Shops
Reach Out to New Local Customers . . . 22
Texas Lawmakers Want to End Driver
PreFab Ads Introduces Three New TV
Toyotetsu Texas Wins Toyota Suppliers
Progressive’s Snapshot EDR Now Available
Surcharges . . . . . . . . . . . . . . . . . . . . . 14
Award . . . . . . . . . . . . . . . . . . . . . . . . . . 6
TX Bill Would Prohibit Insurer Ownership
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Spots for Body Shops . . . . . . . . . . . . . 10
in 32 States . . . . . . . . . . . . . . . . . . . . . 7
Southwest
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
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Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 17 Audi Wholesale Parts Dealers . . . . 35 Autoland Scientech. . . . . . . . . . . . . 21 BASF . . . . . . . . . . . . . . . . . . . . . . . . 12 BMW Wholesale Parts Dealers . . . . 31 Chevyland . . . . . . . . . . . . . . . . . . . . 35 Chief Automotive. . . . . . . . . . . . . . . . 9 Classifieds. . . . . . . . . . . . . . . . . . . . 39 Dallas Dodge . . . . . . . . . . . . . . . . . 44 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . 22 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 15 Garmat USA . . . . . . . . . . . . . . . . . . 14 Gene Messer Hyundai . . . . . . . . . . 26 Global PDR Solutions . . . . . . . . . . . 25 GM Wholesale Parts Dealers . . . . . 34 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36 Huffines Hyundai Plano . . . . . . . . . 30 Hyundai Wholesale Parts Dealers . 20 Kia Motors Wholesale Parts Dealers 23 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 29 Mark’s Casa Mitsubishi. . . . . . . . . . 33
Mattei. . . . . . . . . . . . . . . . . . . . . . . . 18 Mazda Wholesale Parts Dealers . . . 22 Mercedes-Benz of Oklahoma . . . . . 30 Mike Calvert Toyota. . . . . . . . . . . . . 32 Mitsubishi Wholesale Parts Dealers. 26 MOPAR Wholesale Parts Dealers . . 19 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 40 Parkway Family Mazda . . . . . . . . . . 34 PreFab Ads . . . . . . . . . . . . . . . . . . . 10 Quality Stainless Products . . . . . . . . 4 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 28 SATA Spray Equipment . . . . . . . . . . 6 Scoggin-Dickey Buick . . . . . . . . . . 27 Scorpion Coatings . . . . . . . . . . . . . . 8 Sherwin-Williams. . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers . . 11 Suzuki Wholesale Parts Dealers . . . 36 Toyota Wholesale Parts Dealers . . . 28 VIM Tools. . . . . . . . . . . . . . . . . . . . . 37 Volkswagen Wholesale Parts Dealers. 38 Volvo Wholesale Parts Dealers . . . . 42 Young Chevrolet . . . . . . . . . . . . . . . 16
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 3
Caliber Collision Centers Further Expands Coverage in Houston, TX
Caliber Collision Centers, operator of high-quality collision repair facilities in California and Texas, announced March 10 its continued expansion into the Houston area with the grand opening of its 44th center in Texas.
This new center is an 18,986 square foot, state-of-the-art collision repair center located in Bryan, TX. Bryan is the sister city to College Station where Texas A&M University is located.
Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer announced, “We continue to expand our capacity in the Houston/Bryan/College Station area to meet the needs of our customers and insurance clients
across this high growth area of the state. The opening of this newest location supports Caliber’s continued expansion plans and offers best-in-class operational consistency, customer focus, and cost management.”
“The addition of the Bryan-College Station location further extends Caliber’s position as the largest collision repair provider in Texas. The opening of our 44th center is a testament to our commitment to meeting
state-of-the-art collision repair service centers throughout California and Texas. Caliber plans to continue acquiring and integrating additional highvolume collision repair centers while
Caliber will be able to serve many new customers in their extensive reception area
the growing needs of our clients in the South Texas area,” added Mark Sanders, Chief Operating Officer for Caliber Collision. About Caliber Collision Centers Caliber Collision Centers operates 81
providing innovative collision repair solutions and automobile damage claims support. For more information about Caliber Collision Centers, visit our website at www.calibercollision.com.
Houston Auto Body Association Finalizes Labor Rate Surveys and Legislation at March Meeting
The Houston Auto Body Association (HABA) held their monthly meeting on March 1 at the Mossy Nissan in Houston.
The group discussed the now-released labor rates surveys HABA is conducting and how to disseminate them to body shops, as well as new legislation filed by Larry Cernosek earlier this month. “We discussed how to go about getting the word out to all the Body Shops in the Houston and surrounding areas about the labor rate survey,” said James Brown, HABA’s President. The link to take the survey online is now live and can be found at www.autobodynews.com.
“We also have commitments from our Associate members to let all the shops know about the survey and urge them to take a few moments and complete it either online or by filling out the form and faxing it to CSi Complete,” said Brown.
Larry Cernosek discusses HABA’s legislative efforts for the month
HABA is also urging all shops to complete the State Farm labor rate survey online and will be sending out directions on how to do that soon. The rest of the meeting was spent talking about HABA’s legislative endeavors and what it is going to take to get upcoming bills that are supported by HABA passed.
4 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
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New Bills Introduced in TX Target Insurers for Towing, Storage Costs and Create Advisory Committee for TDI
Two new bills filed by Larry Cernosek with the Houston Auto Body Association on February 24 are aimed at requiring liability carriers to pay for the towing and storage of a vehicle when they are at fault and creating an advisory committee for the Texas Department of Insurance (TDI). The towing and storage bill would take this financial burden off of the shop and put it on the at-fault insurer. “Liability insurance pays for all damages that are caused by the negligent driver up to policy limits, we feel that towing and storage is part of those damages,” said Cernosek. The advisory committee bill would create a committee comprised of 9 members, 3 from the public, 3 from repair shops and 3 from insurance companies. The committee would advise TDI on issues that affect the collision repair industry, according to Cernosek. “I talked to my State Senator Mike Jackson and his staff to get
the bills filed as Senator Jackson serves on the Business & Commerce committee of the Texas Senate which hears testimony on bills regarding insurance issues,” said Cernosek, “I then talked to a Texas House member {Craig Eiland} who serves on the Texas House Insurance Committee to file the bill on the House side.” Cernosek filed two versions of each bill, one in the House and one in the Senate. Cernosek said he filed two bills in case one gets tied up for some reason and if they both pass, they will be joined together at some point. The bills were filed with the Texas Senate and take effect in September of 2011 if voted into law. “S.B. No. 944/ H.B. 2275 A BILL TO BE ENTITLED AN ACT relating to the creation of an advisory committee to make recommendations to the commissioner of insurance regarding certain automobile insurance claims.
6 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is amended by adding Section 1952.308 to read as follows: Sec. 1952.308. ADVISORY COMMITTEE. (a) An advisory committee shall make recommendations to the commissioner regarding: (1) the enforcement of this subchapter; (2) preventing and penalizing the processing of third-party claims for damage to a motor vehicle in violation of Chapters 541 and 542; (3) procedures, parts, or products used to repair a motor vehicle; (4) rules and procedures related to automobile insurance claims for the costs of towing and storing motor vehicles; and (5) any other matter relating to automobile insurance and the repair of motor vehicles. (b) The advisory committee is composed of nine members appointed by the commissioner as follows:
(1) three members who represent motor vehicle repair facilities; (2) three members who represent the public; and (3) three members who represent the automobile insurance industry. (c) A member of the advisory committee serves without compensation but is entitled to reimbursement for reasonable expenses incurred in attending meetings of the advisory committee. SECTION 2. This Act takes effect September 1, 2011.” “S.B. No. 503/ H.B. 1357 A BILL TO BE ENTITLED AN ACT relating to coverage for certain towing and storage expenses under a motor vehicle insurance policy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 1952, Insurance Code, is amended by adding Subchapter H to read as follows: SUBCHAPTER H. COVERAGE See Towing, Committee, Page 17
Louisiana Collision Repair Association Talks I-CAR, EDRs, and OSHA
The Northwest Louisiana Collision Repair Association held their monthly meeting on March 1, 2011 at the Country Tavern Restaurant in Shreveport. NWLCRA President, Chris Fielder, and Secretary-Treasurer, Bill Burnside, hosted the meeting. First the I-CAR class schedule (on the NWLCRA website Calendar page) for Shreveport was discussed. I-CAR courses will no longer be under the “points” system; once a student completes a course subject successfully, they will be credited with hours instead of points. Burnside discussed the upcoming Louisiana Legislature that will convene in March and invited discussion
on how the Collision Industry can become more involved in the Louisiana Legislature. He suggested anyone with ideas to promote involvement should come to the next meeting. Some discussions have mentioned a possible Auto Collision ad hoc committee. The new Snapshot Discount device, which is an Event Data Recorder (EDR) aka “Black Box,” that Progressive insurance has introduced was discussed (see sidebar). The EDR is placed in an insured’s vehicle and information is recorded. Data regarding speed, braking, sudden stops, etc. are then sent to the insurance company. The insured is
given a reduction in insurance premium and a reduction in their deductible for their participation in this program. This technology has the ability to affect a claim. For example, EDR information was used to reconstruct an accident in which a driver claimed to have hit a deer. The change in velocity recorded by the EDR clearly showed a collision with a fixed object, not a deer. It was later determined the driver hit a concrete barrier. Bill also discussed the changes to the “Personal Protective Equipment” directive from OSHA. He said the directive has about 50 pages, and if any-
one is interested, they should contact Bill for the website. NWLCRA member Jerry Hart of Tri-State Coatings announced an upcoming class they are sponsoring covering air bag light and sensors, anti-lock brake lights and tire pressure monitor malfunctioning. This class will be taught by Don Hawkins of OTC Diagnostics. It is RSVP and seating is limited. Contact Tri-State Coatings at (318) 219-8667 or 888325-3705 Toll Free. It will be held on March 30, 2011 at the Sam’s Town Hotel and Casino. For more information, see the NWLCRA Calendar. Please visit www.nwlcra.org for more information.
Progressive’s Snapshot EDR Now Available in 32 States
Progressive Insurance company annouced details about their new program called the Snapshot Discount. The Snapshot Discount is a form of Pay-As-You-Drive insurance which gives the clients an opportunity to discount the rates of their car insurance assuming they display good driving habits. Progressive is the first auto-insurance company to introduce this concept to the market. The Snapshot Discount device is placed in the On Board Diagnostic port usually found on the steering wheel. It works by tracking and analyzing the client’s driving routines for a period of six months. Then it calculates the total discount earned by the client. The EDR device does not record the whereabouts of the car, or, reportedly how fast the client drives. The device is not equipped with GPS system. After a month with the Snapshot Discount device, the client may see how much they have earned by logging in to their policy. This is very helpful for it allows the client to modify their driving routines to be able to earn more discounts. Given the efficient use of the Snapshot Discount device, the company proclaims that a client can secure a maximum of 30 % of their policy. “We believe Snapshot is a game changer-representing the future of auto insurance as our mobile and interconnected world gives us the opportunity to offer immediate and substantial savings to our customers,” the President and CEO of Progressive Glenn Renwick said. The Snapshot Discount device is as of now only available in 32 states, but Progressive tells that more states would be reached within the year. www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 7
Dallas Repairer Donates to Local High Schools
Herb’s Paint and Body, which runs seven shops in the Dallas area, recently donated three $250 checks to local high school programs. Herb’s opened a new location in Allen, TX, in February of this year and according to Body Shop Manager Alan Walne. “We wanted to participated in something that gives back to the local community in kicking off our new location,” said Walne. The checks went to Allen High School’s After Prom Program, the Lovejoy High School After Prom program and McKinney High School’s Project Graduation. The shop also committed to donating 5 percent ($100 maximum) of a customer’s repair cost to any of the programs through June 1. Customers have to present documentation from the schools to redeem the donation. Herb’s Paint and Body is a family owned company founded in 1956. For more information on the business, go to herbspaintandbody.com.
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NM Fraud Bill Would Allow Judges to Aggregate Claims
The New Mexico Senate has passed a bill giving judges authority to aggregate the dollar amount of false insurance claims to determine the penalty before sentencing a fraudster. Judges can impose harsher sentences by combining into one lump sum the stolen money from several frauds for which a cheater is convicted, according to reports made by Insurance Journal. “SB 33 clearly is in the mainstream of how the states look at insurance fraud crimes specifically,” the Coalition Against Insurance Fraud said in support of the legislation. SB 33 tracks the concepts of the Coalition’s model insurance fraud law. The Coalition believes it is important to understand the total loss due to insurance fraud before determining the penalty. “Fraud rings and other organized groups committing insurance fraud usually target several entities, and unless the totality of the activity is considered, the penalty might be a fraction compared to the total fraud,” it said. “This legislation is intended to close that loophole in New Mexico and we strongly support its passage.”
8 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
Nm Rejects Bill to Ban Illegal Immigrant Drivers Licenses
New Mexico’s Senate has rejected Republican-backed proposals to stop the state from issuing driver’s licenses to illegal immigrants, according to reports made by Insurance Journal. Two measures failed on partyline votes, with 14 Republicans voting to end the state’s practice of granting licenses to illegal immigrants. Twentyfive Democrats opposed the GOP proposals, which were offered as amendments to a bill changing driver’s license requirements for teenagers. Republican Gov. Susana Martinez has urged lawmakers to vote upor-down on legislation to scrap New Mexico’s 2003 law allowing licenses for illegal immigrants. Senate Republicans said New Mexico’s licensing system poses a security risk. They suggested that terrorists might be able get a state driver’s license. Democratic Sen. Eric Griego of Albuquerque said the legislation was driven by a fear of immigrants, many of them from Mexico. State Republicans, however, have told local news agencies they will push for legislation banning licenses for illegal immigrants in the House.
Oklahoma House Committee Approves Texting Ban
Texting would be banned in school zones and for motorists under the age of 18 under legislation approved by an Oklahoma House committee, according to reports made by Insurance Journal. The measure by Rep. Danny Morgan of Prague was approved 9-7 by the House Public Safety Committee and sent to the full House for consideration. Morgan says statistics show that the practice of using hand-held devices to compose and send text messages is dangerous when done behind the steering wheel of a moving car. Law enforcement authorities say it has led to numerous fatal crashes in the state. But some committee members questioned how police officers will enforce the measure. Rep. Fred Jordan of Jenks suggested the measure is not needed because laws already on the books permit officers to pull over vehicles that are weaving.
Oklahoma Lawmakers Aim to Increase Consequences for Uninsured Motorists
To increase the incentive for all Oklahoma drivers to carry mandatory liability auto insurance, a House of Representatives committee voted to prohibit uninsured drivers from being able to sue for vague “pain and suffering” damages after an accident, according to reports made by Insurance Journal. “There have to be greater consequences for uninsured drivers,” said state Rep. George Faught, R-Muskogee. “If you or I are hit by an uninsured driver, there’s no insurance company to pay our actual losses, let alone ‘pain and suffering’ claims. Why should those same uninsured drivers be treated better than law-abiding citizens in a court of law?” Under House Bill 1045, by Faught, the “maximum amount” an uninsured driver could receive through a lawsuit following an automobile accident would be limited to “the amount of medical costs, property damage, and lost income.” The bill would not allow uninsured drivers to sue for vague “pain and suffering” awards that often result in large settlements, potentially lowering the cost of auto insurance premiums in Oklahoma.
The bill contains an exemption for situations where an uninsured driver is hit by a drunk driver or if the uninsured motorist was a passenger in a wreck. In recent years, several official estimates have indicated Oklahoma has one of the highest rates of uninsured drivers in the nation. “We currently require drivers to carry liability insurance so they can pay for any damages they cause in an accident, but the law has no teeth. As a result, uninsured drivers get to bypass premiums, avoid liability, and still collect large awards if they are in an accident,” Faught said. “It’s time we made the system favor law-abiding citizens more than people who break the law.” House Bill 1045 now advances to the floor of the Oklahoma House of Representatives.
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Toyotetsu Texas Wins Toyota Suppliers Award
San Antonio-based Toyotetsu Texas Inc. received a Launch Performance Award from Toyota Motor Engineering & Manufacturing North America Inc. during ceremonies March 15 recognizing high-quality performance by the company’s suppliers, according to My San Antonio. Toyotetsu was recognized for stamping and welding excellence on the Tacoma pickup, which Toyota began producing in San Antonio last year. Four additional suppliers received Launch Performance Awards and several other suppliers were recognized in different categories for exceeding the auto company’s expectations. “This event emphasizes our suppliers’ commitment to flexibility and continuous improvement, allowing Toyota to focus on building safe and reliable products,” said Toyota Motor Engineering’s Purchasing Vice President Robert Young during the company’s annual supplier business meeting Toyota said it spent nearly $25 billion on parts, goods and services in North America last year.
Heartland Automotive Acquires Lube Service in CT
Heartland Automotive Services, America’s largest Jiffy Lube franchisee based in Texas, has announced its acquisition of Constitution Lube Inc., the operator of Jiffy Lube retail service centers throughout Hartford, New Haven and Fairfield counties in Connecticut. The integration of the Constitution Lube stores will give Heartland Automotive an entry into a new market and will strengthen the company’s base in the eastern United States in preparation for future expansion. “The Constitution acquisition solidifies our commitment to continued growth in the Northeast,” said Brett Ponton, CEO at Jiffy Lube Heartland. “The team at Constitution has done a tremendous job in servicing the consumers in central Connecticut, and we are looking forward to having their experienced, professional team join our organization.” All of the incumbent Connecticut Lube employees will be invited to remain in their current positions following the Jiffy Lube Heartland acquisition, the company said.
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 9
PreFab Ads Introduces Three New TV Spots for Body Shops PreFab Ads recently completed three more humorous auto body TV commercials, bringing the total spots they now have available for licensing by independent shops to 15. In “Short Cut,” a young couple argues over the accuracy of their GPS moments before it directs them and their SUV over a cliff. From the dash of the smashed car, the GPS informs the unhurt but stunned couple that they have reached their destination. In “Young Picasso” a four-year old boy picks up a piece of metal in the driveway and etches his master artwork into the side of the family van with the family dog looking on. The boy then proudly shows off his artwork to his stunned mother as she exits the house. In “Modern Repair”—a fifteen second spot—whimsical, vintage-crash footage of Model Ts is contrasted with the quality repair of modern body shop. All spots ask, “Need a body shop?” followed with the logo of the sponsoring body shop. These new commercials have already made their debut in over 12 markets across the US, with more scheduled to start soon.
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TX Bill Would Prohibit Insurer Ownership of Glass Businesses
A Texas legislator has introduced a bill that would add language to the state's law prohibiting insurer or third-party administrator (TPA) ownership of auto glass businesses, along with language addressing auto glass "inspections" according to glassBYTES. The specific language prohibiting insurer and TPA ownership of auto glass businesses is as follows: "An insurer or [TPA] may not own or require an interest in an automotive glass repair service." The legislation as drafted also includes anti-steering language, and would prohibit an insurer or TPA from "in any manner coerce[ing] or induc[ing] an insured to use an automotive glass repair service other than the insured's chosen service, if the insured has chosen a service." Body shops that handle their own auto glass work are excluded from the proposed law's provisions. The bill was introduced by Texas Rep. Senfronia Thompson (D-Texas). Megan Atchley, a spokesperson for Rep. Thompson's office, said the current auto glass bill was designed to mirror the body shop law on record that addresses the same concerns. The bill currently is under the review of the Licensing and Administrative Procedures Committee.
Florida Officials Question Cost of Red Light Cameras
Writer/director Chuck Jessen, of Jessen Productions/San Francisco, created the PreFab Ads concept for body shops in the late 90s after making “Sledgehammer.” The spot shows a betrayed woman pounding a red Mustang convertible with a sledgehammer only to realize, when her husband drives up in an identical Mustang, that she is trashing the wrong car. “Sledgehammer” won several advertising awards and was featured on the “World’s Funniest” TV commercials program (see photo below). Jessen licensed “Sledgehammer” to hundreds of collision repair shops nationwide, giving birth to the PreFab Ads concept. According to Jessen, PreFab Ads allows local body shops to run a professional commercial, on an exclusive-by-territory basis, for a fee that is about 1/35th of the actual production cost. Jessen feels the combination of high production values and good American-style humor helps break through the media clutter and build interest and awareness for local body shops in a category people might otherwise be indifferent toward—at least, until they actually need collision repair. According to Ann Davis from J&J Auto Body in Pocatello, ID, they have just started running them but are already getting good response to both commercials. “The women especially love ‘Young Picasso.’ They think it’s cool.” Andy Peters at Peters Body Shop in Fort Wayne, IN, has been running PreFab Ads commercials for years and his community has developed an anticipation for the new ones, according to Peters. “We’re having a great response to the new commercials. People think they’re hilarious,” Peter’s said. Mark Lamendsdorf from Star Body Works in Medford, OR, echoed that feeling saying that they’ve had great response from both commercials.
Some South Florida officials say it’s becoming too costly to use automatic cameras to ticket drivers who run red lights, according to reports made by Insurance Journal. They had hoped their cities would collect millions of dollars in fines, thanks to the images captured by a network of cameras installed from Pembroke Pines to Fort Lauderdale. But an increasing number of drivers are fighting their tickets and winning court rulings that limit law enforcement. Fort Lauderdale Police Chief Frank Adderley said that means his department spends more time than planned reviewing tapes and preparing evidence files for court. Hallandale Beach Mayor Joy Cooper said the legal issues will be sorted out and the cameras will help improve safety. But some communities such as Boca Raton and Delray Beach now are delaying installing the cameras.
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10 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
To view the 15 commercials offered by PreFab Ads, and get more information, log on to www.prefabads.com
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 11
12 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
Switching to BASF Waterborne for the Green Reasons by Ed Attanasio
As almost every body shop manager in this country knows, waterborne paint is a proven commodity in the collision repair industry and shops outside of California are gradually but decidedly heading in that direction. As federal regulations and air quality management agencies apply pressure designed to nudge more states towards lower VOCs, some body shops in parts of the country will undoubtedly resist change, while others will embrace it for its wide range of benefits. Some multiple shop operators doing business in California have been able to leverage their experience in California to adopt waterborne elsewhere across the country. For example, Sterling Autobody Centers announced last year that they have implemented waterborne network-wide, but that is not yet the norm. So it’s interesting that a large New Jersey collision facility went to waterborne recently not because the laws mandated the conversion, but because they wanted to take the high road in being green and helping both their employees and the environment. They’re hoping that it will lead to more business, additional DRPs and an enhanced overall reputation throughout their communityKeith Holloway is the body shop manager at DCH Brunswick Toyota Collision Center in Brunswick, New Jersey, where he oversees the operation of a 43,000 square foot collision center and supervises 35 employees as they fix 230-250 vehicles per month, he said. After DCH Brunswick Toyota Collision Center’s contract with another paint company’s solvent product last year, BASF’s eco-friendly Onyx HD waterborne basecoat system won out over several competing paint lines. “We did some extensive research and BASF’s Onyx HD waterborne basecoat had the best performance and overall value for us. We took paint proposals from five different vendors, but BASF stood out because in the end they offered the best product and service package. We went with BASF because we thought they would help us grow, and we also learned that the Onyx HD waterborne basecoat system is compliant with the EPA regulations and the laws that are coming out in 2011 and 2012. That was definitely something we wanted to work toward, so that’s why we signed with the company.” Holloway values BASF’s support and education. “We’ve been very impressed by their service and follow-
SHOP & PRODUCT SHOWCASE DCH Toyota Brunswick Collision Center Location: North Brunswick, NJ
Telephone: 888-512-7805 www.dchbrunswicktoyota.com Company At A Glance... Type: Collision Repair
Facility Employees: 35
In Business Since: 2000 DRP Programs: Two
Number of Locations: One
Combined Production Space: 43,000 square feet
Keith Holloway, the new body shop manager at DCH Collision Center in Brunswick, NJ, was on the team that converted his shop to BASF’s eco-friendly Onyx HD waterborne basecoat system
through. We’re still testing our waterborne and tweaking the way we’re using it, and BASF has been by our side every step of the way. The paint is good, there’s no doubt. But what’s really pleased us the most is the support they’ve provided, especially from our BASF Business Development Manager Kent Leonard and Tom Smetanka, our jobber with Central Paint in Trenton, New Jersey.” It wasn’t an easy conversion from solvent to waterborne, Holloway admitted, but in the end it’s paying off. “We’re still in the process to determine how compatible our production process is with the BASF waterborne product, and so far it’s doing a very good job for us. It did take us 6-8 weeks to get our staff up to speed with this product, and our painters did have to go to BASF’s training center in Maryland so they could get acclimated to the product and learn all of the do’s and don’t’s of working with it.” Learning BASF’s waterborne system wasn’t a no-brainer, Holloway said. “It’s quite a bit different and the painters have to slow down to take their time with this waterborne. The paint is not as fast-acting as solvent, and I’m not going to tell you that it was easy. BASF has a great product and the process of applying it took us a while to get up to speed, but we’re now running very efficiently with the waterborne product.” The federal requirements are going to get tougher in March, because certain high VOC products will be banned from use in body shops nationwide, Holloway explained. Paint technicians are going to have to get
more certifications for completing the proper courses to satisfy the federal mandates. “Body shops nationwide will have to go through EPA inspections to show that what we’re sending out into the air is not going to hurt the environment,” Holloway said. “The process started one-and-a-half years ago when the EPA started sending out notices and informing shops that that things were going to start changing this March, little by little.”The state laws in New Jersey aren’t mandating the use of waterborne paint (yet), but Holloway is already reading the writing, or painting in this case, on the wall. “They’re not forcing shops to do it yet, but we want to be ahead of the game when it goes into effect in 2012. We want to be an innovator in this industry and be able to offer the public and the insurance companies something many shops can’t offer them right now, which is the benefits of waterborne paint. Going green and giving something back to help the planet; those are things we want to be involved in.” Has Holloway seen evidence that converting to BASF waterborne will eventually help the bottom line at DCH Brunswick, Toyota? “The word is definitely out that we’re now offering something different, which positions us in a better light with consumers. We feature it in our advertising, but people in this area don’t really understand it completely yet. It’s about educating everyone about this product. Once they know the all the benefits of waterborne, it will gain momentum here, I believe.”
The DCH Collision Center paints 230-250 vehicles during an average month
The DCH Collision Center has reported top-notch color matching since they adopted BASF’s ecofriendly Onyx HD waterborne basecoat system
BASF Company Contact: David Brez Strategic Initiatives Manager Phone: 951-315-1395 (Mobile) email: david.brez@basf.com website: www.basfrefinish.com
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 13
Texas Lawmakers Want to End Driver Surcharges
Texas lawmakers are considering eliminating a program that requires those charged with offenses including driving while intoxicated and failure to have insurance to pay state surcharges. Nearly 60 percent of those with the surcharges – about 1.2 million drivers – are unwilling or unable to pay and owe the state more than $1.1 billion. The surcharges are part of the Texas Driver Responsibility Program. The Senate Criminal Justice Committee recently called for the program to be eliminated, calling the increasing number of drivers who are unlicensed and uninsured because of it “unacceptable.” Drivers who refuse to pay lose their licenses. The Texas Department of Public Safety, under orders from the Legislature, began offering an amnesty program in January that allows delinquent drivers to settle up and get their licenses back by paying 10 percent of the amount they owed. The Texas Driver Responsibility Program was approved by the Legis-
lature in 2003 to raise money for highways and trauma care, but no money from the program has ever gone to highways because of a lack of payments, and trauma centers have received only a fraction of what was intended. DWI offenses carry the biggest surcharges – $1,000 a year for three years on the first conviction and $2,000 a year if the blood alcohol content is twice the legal limit. No car insurance and an invalid license draw a $250-a-year surcharge for three years. Surcharges must be paid in addition to fines assessed for those violations. “These surcharges are not changing behavior, not being collected and are creating a new class of criminals each day by adding to the 1.2 million unlicensed and uninsured drivers in the state,” the Senate committee said in a report to the Legislature. Two other states that tried similar surcharge programs abandoned them because of the huge number of drivers who would not pay. The panel says conviction rates in Texas have decreased and dismissal
Ex-GA Insurance Chief Issued Himself Licenses Georgia Insurance Commissioner John Oxendine issued himself several licenses to sell insurance and adjust claims in his last full day in office, according to Insurance Journal. Oxendine used his authority as the state’s top insurance regulator to waive requirements to take mandatory classes or licensing tests that apply to other Georgians seeking to sell insurance, the Atlanta JournalConstitution reported in its Sunday editions. Oxendine, a Republican who left office in January after 16 years, said he decided against the tests because he didn’t want to be a distraction to other applicants. He also said he had enough experience regulating the industry and helping to write insurance law to qualify for the licenses. “If 16 years doesn’t give you a little bit of insurance experience, I don’t know what does,” Oxendine said. “I think that’s (worth) a little bit more than taking a test and taking a class.” But state lawmakers said the former commissioner abused his
power. And his successor, Republican Ralph Hudgens, said Oxendine appeared to have ignored the advice of the office’s staff when he issued himself the licenses. A local newspaper reported the licenses were issued Sunday, Jan. 9 — the day before Hudgens took office. Oxendine said he doesn’t plan to sell insurance, although he registered a company called Oxendine Insurance Services with the state days after he gave himself the licenses. Hudgens’ office said an applicant would have been required to complete 80 hours of classes and pass several tests to get the licenses Oxendine received. Key state lawmakers said they were disappointed by the news. State Sen. George Hooks, a Democrat who owns an insurance agency in Americus, said Oxendine should have gone through the same testing everyone else did. “I think it smacks of favoritism,” he said. “And if I were the current insurance commissioner, I would look at it very carefully.”
14 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
rates have increased every year since the program was launched. DWI cases are now regularly prosecuted in courts as reckless driving, obstruction of highway and public intoxication, as defendants try to avoid the surcharges resulting from a DWI conviction. This has led to a significant jump in caseloads in the courts. “At the current statewide trial capacity, it would take 16 years to dispose of these cases, if they all demand a trial,” the committee noted in its report. Legislation to eliminate the program has been authored in the Senate by John Whitmire, D-Houston, chairman of the criminal justice committee, and in the House by Leo Berman, R-Tyler. In the meantime, the amnesty program will run through April 7, offering 713,444 drivers who are delinquent in their surcharges a chance to settle up by paying 10 percent of the amount owed on all surcharges – up to a maximum of $250. Some of those who have paid surcharges or aren’t included in the amnesty period are angry.
Ken Adams, a 50-year-old machinist from Lewisville, tells The Dallas Morning News that he regrets his two drunken-driving convictions, but he also regrets paying the thousands of dollars in state surcharges on top of his regular fines and penalties. Adams pleaded guilty to DWI in 2008 and 2009, was assessed stiff fines and his driver’s license was suspended. He has already paid his $3,000 surcharge on his first offense, and his second DWI – for which he owes $4,500 – did not fall within the amnesty period. “I made some mistakes and I paid with fines and some jail time. But this surcharge punishes you twice for the same offense. It’s wrong and I don’t care what anyone else says,” he said. Tela Mange, a spokeswoman for the DPS, said the agency has received a small number of complaints from drivers whose surcharges came after 2008 and from those who have been paying their surcharges on time. She pointed out that there are no provisions in the law for refunds.
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 15
Lousiana & Texas Collision Industry Loses Key Players, Icons The collision industry has lost several key players over the years, but their contributions continue to live on through their work. In February of 2011, the collision industry lost an exceptional colleague in Jim E. Adams.
Jim Adams at Tri-State Coatings
“Though a Louisiana native, he was known nationwide as a teacher, problem solver, product manager and most importantly a friend to all of the collision repair industry,” said coworker Bill Burnside. Jim’s collision career began in 1980 when he opened Pioneer Automotive Paint and Body with his father. Jim enjoyed painting most and soon became the lead painter at a dealership body shop while continuing to work at Pioneer. He also helped to teach his two younger brothers the autobody repair trade. Jim joined United Bumper Exchange in 1983 as a paint store manager. He oversaw two paint lines and serviced numerous body shops within a 150 mile radius of Shreveport, LA. James Hunter, owner of United Bumper said as a team builder, Jim helped assemble the ‘old’ and ‘new’ body shop managers to fulfill a need to repair cars differently. Jim was instrumental in forming the Northwest Louisiana Collision Repair Association (NWLCRA) Continued from Front Page
TX DRP Bill
duced the bill to the House, while Senator Mike Jackson introduced a companion bill to the Senate. That bill, Senate Bill 1300, has been filed but not assigned to a committee. According to Larry Cernosek with the Houston Auto Body Association (HABA), the bill will “level the playing field for all shops. It will not
which is still active today. From this association the local I-CAR committee also formed and Jim served as an instructor. Jackie Boyd, shop manager at Holmes European Motors in Louisiana and original I-CAR committee member said Jim was the “go to guy to organize classes... late was not in his vocabulary.” Jim began a career as a territory manager and regional refinish instructor for PPG in the late 80s. Jim’s personal skills allowed him to communicate effectively with every member of the shop, from skilled tradesmen to the CEO. Thad Greer, retired regional manager with PPG, said Jim was a very hands on guy who’s skills carried him to work with people in the fleet group, port of entry and the launch of waterborne on the west coast. After retiring from PPG, Jim was busy again in the local market, he served as a sales manager for TriState Coatings for the last 3 years of his life. Jerry Hart, owner of Tri-State Coatings, said “Jim’s personality and skills made him invaluable as a sales manager. He made immediate and strong relationships with customers and company personnel. His motto, which he lived by, was ‘It has to be good for the customer and the company - win-win.’” “Jim shared with us all his skills as a technician, shop owner, and factory representative. His outgoing personality, distinctive laugh and sincere concern for others will be missed. Though he rarely asked for help, he was always the first to offer assistance. He never met a stranger and always developed new friendships even among his competitors,” said Burnside. nor is it intended to do away with direct repair shops.” “The HABA is in full support of HB 2276. This Bill is not only protects the Collision Industry but more importantly protects the rights of consumers in Texas on several different levels,” said James Brown, HABA’s President, “The main challenges we face ahead will be educating all of our State Legislators on ... how important it is that they support this Bill.” Both bills would go into effect September 1, 2011 if passed..
16 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
The industry also lost Hank Walla in 2010; a key member of the collision repair industry in Texas. Hank started out his career in the bumper business in the 70s at Quality Bumper. He opened his own business, Walla Company, shortly after which started out as a supply company for various businesses including service stations. After working with service stations and becoming more familiar with the automotive industry, Walla started supplying body shops in 1987. Walla was instrumental in starting the Houston Autobody Business Association in the early 90s, which is now known as the Houston Auto Body Association (HABA). He was very involved in legislation, local labor rates studies and just getting all the shops together on industry issues. “He knew everybody,” said David Walla, Hank’s son, “It was easy for him to get people together.” At a time when e-mail was not widely used, Hank would spend a lot
of time calling people and reminding them of upcoming meetings, said David. Hank was really involved with HABA since the association was formed and was instrumental in getting the Society of Collision Repair Specialists (SCRS) and HABA together, according to David. “Hank Walla was easily considered a figurehead of the Houston collision repair market for over three decades. SCRS appreciates that we had the opportunity to work with him in the onset of the affiliation between our two groups, and his contributions to the industry and to Hank Walla the HABA are certainly missed by his peers and colleagues,” said Aaron Schulenburg, SCRS Executive Director. Hank was also instrumental in backing current Texas laws stating that insurance companies can not own
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a body shop while the laws were forming. “He was big in getting to know your legislators,” said David.
Hank at an early 90s Houston Autobody Business Association meeting
Hank had french polio and was paralyzed for 6 months but learned to walk again, and also sprung back from a serious car accident that left him with a broken hip and on a venti-
lator in the early 00s. “The fact that he would just bounce back from stuff really inspired people,” said David, “He just kept going.” Hank knew a lot of the local body shop managers, whether he worked with them or not, and was always trying to get people more involved in the industry. “My father fought hard for the autobody shops in Houston. Attending meetings, talking to legislators and spending hours on the phone reminding people of upcoming meetings. He was well liked, good humored and welcomed in almost every shop — even those that weren’t his customers. He always wanted to do something to help the autobody industry, and he talked to everyone about it,” said David.
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Continued from Page 6
Towing, Committee
FOR CERTAIN TOWING AND STORAGE CHARGES Sec. 1952.351. APPLICABILITY OF SUBCHAPTER. This subchapter applies to any insurer writing automobile insurance in this state, including a capital stock insurance company, a reciprocal or interinsurance exchange, a mutual insurance company, including a county mutual insurance company, a Lloyd’s plan, or another legal entity engaged in the business of automobile insurance in this state. The term includes: (1) an affiliate as described by Section 823.003(a) if that affiliate is authorized to write and is writing automobile insurance in this state; and (2) the Texas Automobile Insurance Plan Association under Chapter 2151. Sec. 1952.352. COVERAGE FOR TOWING AND STORAGE CHARGES. An insurer subject to this subchapter that delivers, issues for delivery, or renews an automobile liability insurance policy in this state that covers liability arising out of the own-
ership, maintenance, or use of a motor vehicle shall include coverage for reasonable towing expenses and related storage charges assessed in relation to a vehicle involved in a motor vehicle accident for which an insured under the policy is liable. SECTION 2. This Act applies only to an automobile liability insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2012. A policy delivered, issued for delivery, or renewed before January 1, 2012, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2011.” According to Cernosek there have already been hearings on SB 503 and it was voted out of the committee; HB 1357 had a hearing and left the bill pending — possibly waiting for the Senate version to be sent to the House committee. SB 944 also had its hearing and was left pending in the committee. HB 2275 has yet to have its hearing.
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 17
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
DRPs and Fear—Hope for a Reduction in the Number of Shops with The Insurance Insider
Let’s start with a simple question: What does “DRP” really stand for? Conventional wisdom says that “direct repair program” is the correct answer. While that is the literal meaning of the acronym, the non-official translation could easily be, “Don’t remove, please.” I can assure you from many years of experience in the insurance industry that this is more true than most people care to acknowledge. Many body shops have lost control of their business. As a result, many of those shops spend a lot of time hoping, begging and pleading that they aren’t removed from their DRP lifelines. When the insurance company says, “Jump,” the shop shouts, “How high, how many times and should I give you a discount for allowing me to jump?” This isn’t conducive to a marketplace that allows all the stakeholders-repairer, insurer and vehicle owner--to benefit. Before anyone shouts “Amen,” there are different ways of losing control. Yes, it is true that the insurance industry has assumed some control over a portion of the body shop industry. The control was attained because shops allowing it to happen, and because of the ever-evolving marketplace. That marketplace has seen a drop in claims, double-digit total loss percentages, customers cashing out, $1,000 deductibles on the rise, and damaged vehicles being shipped overseas faster than they can be rolled off an assembly line in a Detroit manufacturing plant. The end result is a drop in the number of repairable vehicles, leaving many of the 35,000+ repairers in the United States in search of work. In other words, low demand and high supply equals shops desperate for business. Even though I am referring here to the U.S., international shops have experienced very similar problems. Australia and the United Kingdom come to mind. In fact, in the U.K., the low supply caused a large percentage of shops to go out of business. Although neither industry would openly admit it, many insurers and re-
pairers have been anxiously awaiting a mass reduction in the number of shops for varied reasons. High-qual-
ity, ethical body shops want the bottom-feeders to go out of business. The bottom-feeders invest very little in their businesses – yet they are (unfairly) treated the same as the Tier 1 shop. In most cases, the Tier 1 shop and bottom-feeder have the exact same labor rate in a given direct repair program. How is that fair or good for business? Insurers need to find a way to differentiate the high quality shop from the bad. That is one reason why insurers like the idea of a shrinking number of body shops. There are so many shops that they have a hard time identifying the high quality shops. In addition, a reduced number of shops would better assist them in controlling the customer’s experience and repair. There are many shops around the country that have resisted the DRP security blanket and have remained autonomous. This doesn’t make the autonomous shop any better or worse than the DRP shop. It’s simply a different way of doing business. It’s okay to be different. In fact, in this world we celebrate and promote diversity. And, at least in the United States, if you don’t promote and encourage diversity, you can quickly find yourself on the receiving end of a lawsuit for being discriminatory. DRPs play a vital role in the industry whether you care to believe it
18 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
or not. They promote competition, can reduce cost (which ultimately benefits the consumer) and can positively impact the customer’s experience. Don’t be hypocritical by questioning my opinion if you are one of the many enrolled in a DRPtype health care program. If you are currently enrolled in an HMO or PPO program, please don’t send me any hate email on how stupid I am. In the immortal words of Forest Gump, “Stupid is as stupid does.” While I was joking about “Don’t remove, please,” the fact is many
shops do operate in total fear. Fear that at any given moment they could lose a significant amount of their business and revenue. While this may not be fair, shops that heavily rely upon DRPs benefit the most from these relationships. In the end, it is a decision made on an individual level as to what is best for that business. Just be careful that the oxygen that the direct repair program is providing your shop isn’t your only source of air. Otherwise, you risk having the plug pulled when you expect it the least.
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 19
Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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Wade Ford Atlanta Chooses an Alternative Diagnostic Solution Autobody News
Automobiles today are sophisticated and are controlled by a series of internal computer systems, which means the diagnostics require specific software and hardware. On top of that the basic service environments have not changed. They are still fraught with grime and potential hazards that could damage the diagnostic equipment. We now need digital diagnostics equipment that will withstand these normal daily service bay environmental issues and today ruggedized notebook computers fill that bill very well. That is one of the reasons Wade
April 2011
Ford of Atlanta, Georgia decided to switch from PDAs to ruggedized laptops for diagnostic and reprogramming purposes. Ford no longer supported the PDA application, so Wade needed new durable notebooks to connect to the cars. “The reason we needed a rugged notebook was because of the environment they are used in—where the technicians are using them is an open environment. They really just need to be able to be bumped around and not go down,” said Dave Tackett, Controller of Wade Ford. Initially, the only solution Ford
provided was Panasonic Toughbooks. Despite Toughbook’s excellent reputation, Wade Ford felt that the product was too pricey for them. So Tackett researched alternatives online and talked to others in the field before finding the Eagle rugged series from a 10-year old established provider of rugged portable devices called Rugged Notebooks.com. “I knew there had to be other rugged notebooks out there besides the Toughbook. I had heard of Dell having one, but again it was too expensive. Rugged Notebooks’ Eagle pretty much fit the bill for what I needed. For the price of one Tough-
book, I could get two Eagles!” Of course ruggedness and price were important factors in Wade Ford’s decision to choose an alternative solution, but the ability to run Ford’s proprietary software program was also a primary concern. With Rugged Notebooks Eagle, the technicians were able to easily install the software, and Tackett simply made sure it was connected to their in-house system. “We have to connect two vehicles through a Ford proprietary link and all the diagnostics, all the reprogramming, goes through that connecSee Wade Ford, Page 33
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Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
A Quick Diagnostic Can Seem too Good to be True with Gonzo Weaver
Before my father passed away we spent several years under the hood of cars working together at my shop. He was an old school repair guy. Always looking out for the customer, and wanting to do that little bit extra for them. You know, adjust that crooked license plate, grease the door hinges before they pulled away from the shop, that kind of thing. I usually did the diagnostic work, and he would stick with the mechanical repairs. But most of the time his favorite thing to do was to entertain the customer while I figured out the problem. The one thing that would give him fits was the way a customer would react after I diagnosed the problem, especially if I diagnosed it quickly. A quick diagnostic might be fine for some people, but others it was more of a matter of pride that their
“regular” mechanic hadn’t found it so quickly, or that the customer themselves didn’t find it so easily. It didn’t set well with them. I got the impression that a quick diagnosis led to some sort of mistrust with my abilities, or that I didn’t thoroughly examine the problem to their satisfaction. A lot of times it had more to do with the previous technician taking so much time and not coming up with an answer, so they think it can’t be that simple. Dad had his own answer for it. He was going to get one of those aluminum foil fire suits, a couple of tall curtains on moveable stands, a disco ball, and some strobe lights. His idea was to pull the car into this “special” diagnostic area turn on the strobe lights and hang the disco ball over the car. Stick the suit on and make some comment like, “I’m going in…” and then let the light show begin. After a
few minutes, come out from behind the curtain wall, whip off the aluminum fire suit hood and say something like, “Whoo that was a tough one.” Maybe then, these types of people would be more likely to believe the results of a quick diagnosis. We never tried it, but I think about doing it from time to time. With the advent of the scanners to read and show detailed parameters diagnosing has taken on a whole new approach. A lot of problems are a matter of following the diagnostic tree correctly to get to the source of the problem. (Codes don’t fix cars… codes are the starting point) Sometimes it’s a quick trip on the diagnostic ladder, and other times it’s quite lengthy. It really depends on the problem, of course. Trying to be quick and on the right track with every diagnosis is what makes the money in the shop.
Stalling the results just for the sake of making it look like it was an extensive search to find the problem doesn’t make a lot of sense to me. Then on the other hand, I sometimes believe this is one of the many reasons why a doctor has you wait so long for his 10 minutes of time. Even though he may have walked into the exam room, looked at the chart, took some quick looks at you, and back out of the exam room in less than 10 minutes, I’ll guarantee his bill isn’t going to show a 10 minute charge on it. But, in my business, time is money… and most customers are watching the clock. Back in the days when my father and I worked together, he came across an old Bosch injector tester for the early K and L injection systems. The old tester was done for. Not only was it dated, it had several missing conSee A Quick Diagnostic, Page 39
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 21
Groupon Succeeds in Helping Body Shops Reach Out to New Local Customers Groupon, the ‘group coupon’ site where businesses submit daily deals for Groupon to market to their large subscriber base, has had lots of recent success with body shop deals.
Groupon allows businesses to submit a coupon deal to their website then, if approved, the coupon goes up on the local branch of Groupon’s website. If the deal is bought by enough people on that day, then the deal becomes available to all; if not, no one gets the deal that day. The body shop does not pay any upfront costs to have a Groupon, rather the company takes a percentage of each coupon the body shop sells on their website. “Our services have really expanded because of our popularity and attractiveness,” Chad Nason, Groupon’s Spokesperson told Autobody News.
Body shops have found it profitable to use Groupon to market general maintenance type services to customers. This way they get new customers in the door, show them the value of their services and hopefully create some repeat customers, said Nason. Some of these body shops are seeing the oil and filter change coupons as a step in the door for new customers and hopefully, their eventual collision business. Getting customers in for general maintenance will help them to remember your name when they do need collision work done, said Nason. “You’re looking at something (a collision) that people aren’t planning on, so it’s a little tougher [to market],” said Nason, but he maintains that shops have found that using Groupon to advertise general maintenance can leave a lasting impression for future, unplanned work ahead. Nason also said that Groupon is becoming a popular marketing tool because local businesses can tap into Groupon’s large subscriber base,
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which is broken down into region-specific websites each with their own deals. Great Bear Auto Repair and Auto Body Shop in Flushing Queens, New York, ran a deal with Groupon in December of 2010. Owner Audra Fordin was admittedly skeptical about running the deal; she wanted to run a deal that wouldn’t overwhelm her business and had a higher price point. “It was awesome. They were awesome; they walked me through it step by step and helped me create a custom deal that would attract customers and be realistic for my business,” Fordin told Autobody News. The deal was for an oil change, tire rotation and charging systems analysis. Audra said she was extremely happy with the results and is eager to run another deal with Groupon, probably this spring. She said that the customers who have redeemed were all first time customers and she already has their repeat business.
“I will do it again without a doubt, it brought in new customers and they weren’t your typical coupon-cutters just trying to get a deal, they were people truly interested in taking care of their cars,” said Fordin.
Great Bear Auto Repair in Queens saw a lot of new customers after their Groupon ran
Glenville Terrace Auto Body in Allston, Massachussetts, ran a deal with Groupon in June of 2010. Owner Barry Hynes was also extremely pleased with the results of his Groupon deal. “It went really well, we were told See Groupon Helps, Page 25
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 23
Global PDR Solutions & Park Place Bodywerks Hail the Hail Park Place Bodywerks Location: Dallas, TX
Telephone: 214-443-8250 www.parkplace.com Company At A Glance...
Type: Collision Repair
Facility Employees: 70
In Business Since: 1987 DRP Programs: Zero
Number of Locations: One
Combined Production Space: 87,000 square feet
Park Place’s Body Shop Director Eric McKenzie has an ongoing relationship with Global PDR Solutions to provide his customers with highend paintless dent repairs and book revenue when the hail storms hit
Park Place Bodywerks did $1.8 million per month last year in revenues fixing an average of 500 cars per month at $3,800
Global PDR Company Contact: Bob Lombard Address: 5505 West Kellogg Wichita, KS 67209 Phone: (877) GLBL-PDR email: bob@globalpdr.com website: www.globalpdr.com
SHOP & PRODUCT SHOWCASE
by Ed Attanasio
When most of us think about hail, we think of stormy weather. But in parts of the country, hail means big money for body shops. When hail-prone places like Northern Texas, Oklahoma, Nebraska, Kansas, Arkansas and Alabama, get grapefruit-sized or pebble-sized hailstones it can quickly change peoples’ lives. And it happens every year during hail season, which normally starts in March and can run all the way through October. Park Place Bodywerks in Dallas, Texas and a growing enterprise called Global Paintless Dent Repair (PDR) Solutions (GPS) have a “stormy relationship” that is both profitable and beneficial for both parties. According to Eric McKenzie, 36, the body shop director at Park Place Bodywerks, his shop did $1.8 million monthly in revenues without the assistance of any DRP’s. About 98% of the 500 cars that Park Place Bodywerks repairs every month are highend luxury brands that the company sells through its 12 dealerships located in the Dallas-Fort Worth Metroplex, McKenzie said. The handful of nameplates sold and serviced by Park Place Motors reads like the best-of-the-best, including Mercedes-Benz, Lexus, Porsche, Volvo, Jaguar, Bentley, Maserati, Rolls Royce, McLaren (when it hits the U.S. in June of this year), Smart Cars and an occasional Maybach. GPS was founded eight years ago, when three different PDR companies with more than 45 years industry experience joined forces. After seeing drastic changes within the world of PDR and realizing that the specialty was experiencing a drop in quality and customer service, these visionaries decided to take PDR to the next level. The move paid off because, in just a short time, GPS had seen an astronomical spike in market share and growth, according to company representatives. McKenzie initially found out about GPS by working with one of its eventual owners, Scott Dietz, more than nine years ago, he explained. “We had a major hail storm in 2003 where approximately 100,000 cars were reportedly damaged in this area. I was an assistant manager at another luxury brand dealership at that time and some of that company’s larger DRPs wanted us to try some of their approved vendors for PDR,
24 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
Park Place Bodywerks works on most of the top brands, including Rolls Royce. The quality of their PDR must be exemplary each and every time
because this particular hail storm was so big. So we brought in a few companies and gave them a shot, but they basically didn’t do a very good job. There were some issues with quality, timeliness and the techs weren’t available to us all the time. They would show up on Monday, and then leave Thursday afternoon, and then we wouldn’t see them again until Tuesday morning, with cars stacked up out the doors.” With these high-end luxury cars, customer service needs to be not just satisfactory but exemplary day after day, McKenzie stressed. “If our vendor isn’t providing top service, then we logically can’t pass it on to our customers, so it was a struggle to us. With some shops, maybe that’s okay, but with us, it has to be perfect. We gave three or four of these companies a shot, all referred by our DRPs, and we couldn’t rely on any of them.” That’s when McKenzie first met Scott Dietz. “Scott became our go-to guy in ’03, because he was so reliable; his work was quick, accurate and phenomenal,” McKenzie said. “He was with us through October that year and we were obviously very impressed. He even came back when stragglers came through, right up until the end of the year. After that storm, Scott and his partners started GPS and when I came to Park Place, one of the first things I did was hire them. “These techs who really know how to do PDR at a high level are truly craftsmen. When it’s not done
properly, the telltale sign is that you can still see the dent. The marks from pushing on the dent are apparent when it’s not done correctly. You can either see traces of the dent or in massaging the area they push too hard and can actually push it past the dent and make tool marks. Or they get into the headliner and damage it or mess up the electrical. We were experiencing a litany of these problems until we contracted with GPS. Getting half of the dents out of a vehicle just doesn’t make it, especially when you’re working on a Rolls Royce, for example. Turning the vehicles in and out quickly is a major factor when PDR is performed, especially when the storms are more serious, McKenzie said. “With our previous PDR vendors, it would typically take 2-4 days or longer to get the job done. But, with GPS it’s always two days max, with more accuracy and a better job overall.” During the larger storms, PDR means decent revenue for Park Place, McKenzie said. “GPS gives us a healthy percentage of each job, so yes—it definitely makes financial sense for us to work with them. Providing top quality is our first priority, but to make some money along the way is a major bonus.” McKenzie is not afraid to tell other body shop owners about GPS, he said. “Their quality is excellent and we’ve recommended GPS to several shops. I’m in a 20 Group and I’ve recommended them across the country and they’re pleased with them as well.”
“The idea was to get new customers in, and it did just that. These were the kind of customers we were looking for ... ones that really take it was going to be busy and we didn’t care of their vehicles.” really take it that seriously and boy Hynes said he would do another were we sorry,” said Hynes, “We def- Groupon again in the future if he was initely should have prepared for the not so busy already. He did have one rush more.” word of caution for shops considering using Groupon in the future. “I would advise any shop that’s going to do it to really prepare for it. On the day the actual Groupon goes live online have people ready to answer calls because people call in to ask questions about the deal. Also be preEmployees at Glenville Terrace Auto Body in MA were surprised at pared for the rush how much interest their Groupon generated the next day when people come in to Hynes said that not only did it use the coupon—definitely schedule bring in new customers, but they be- appointments if you can.” came repeat customers and were exTo learn more about running a actly the clientele Hynes was looking Groupon for your business visit: for. www.GrouponWorks.com Continued from Page 22
Groupon Helps
Great Bear Auto Repair and Auto Body Shop 164-16 Sanford Avenue Flushing, NY 11358 718-762-6212
East Texas Mechanics Learn Hybrid Vehicle Service
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On March 12 a group of East Texas mechanics learned the ins and outs of hybrid maintenance, according to KYTX. “We’re starting to see more of them and of course with gas prices the way they are, we’re expecting to see a whole lot more hybrids in the future,” said Randy Russell, coowner of Engines Express in Tyler. With the help of a hybrid expert, the staff, along with mechanics from other East Texas shops, are learning about these vehicles. “They don’t want to have to go to the dealer to have service,” Russell said. Craig Van Batenburg travels around the country in this Toyota Prius teaching mechanics about hybrid cars. His vehicle is a mobile learning lab. “Right now a lot of dealerships are the only ones doing service,” Van Batenburg said. “If you want to get a competitive price, we need competition, which means everyone works on these vehicles.” Along with Engines Express, mechanics from Pro One Automotive and Robertston Automotive attended the training.
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Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Hey Toby!
Make Sure Your Shop is Clear of these Glaring OSHA Violations with Toby Chess
Hey Toby—Is it true that the fine for using an illegal air blower is $5000 in California? —Jeff from San Francisco
and $436 for failing to stop at a stop sign—the list goes on. I have been taking a 40-hour on line OSHA course and I have been checking for OSHA violations in body shops as I conduct I-CAR training on site. What I have seen is unbelievable.
Hey Jeff—I checked with CAL Osha and they confirmed that fine could be up $7000 for with using an illegal air David McClune blower. With the poor economic conditions that exist today in state finances, more and more regulatory agencies are now becoming revenue generators. Here in California, Governor Brown has stated that there will be no new taxes (unless approved by the electorate and that has about as much chance of happening as a snow ball fight in hell.) On January 6th of this year, trafwith John Yoswick fic fines went way up. For example, using a hand-held cell phone while driving, first offense: $148. Parking in a handicap zone: $976 for first ofRespirators not in a secured bag when not in fense and $1876 for a second offense, use
California Autobody Association The typical blower in the body shop is a female and male air tool fitting
Ungrounded and damaged electrical cords
Year in Quotes
Open solvent container for cleaning a spray gun
Grinders without a shield
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Exit door blocked and locked during business hours
Fire extinguisher access blocked by an object
No signage for fire extinguisher
Ungrounded flammable storage containers and not spill containment equipment
Ungrounded flammable waste container and an open lid. Also there is not signage on the wall
Unlabeled bottles
This picture needs not description
No signage, missing electrical outlet cover and extension cord missing its ground
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Continued from Page 27
Hey Toby!
Let’s take a look at some of the more common violations in the body shop. The next series of pictures were taken at my friends shop about 2 years ago. He embarked on the lean process trail and the first thing that we did, was clean up the shop and make it OSHA compliant. It took about 2 weeks and the results of cleaning up in the shop has resulted in 20 percent decrease in cycle time in the first six months of implementing the lean process.
Unchained welding tank and no signage Refrigerator in paint department, ungrounded flammable storage drum, battery charger, new flammable products, no signage and unlabeled paint containers
Today
There were parts stored in the 3 foot barrier that is needed around all electrical panels. Also the signage was missing
Today
Today
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28 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
I have many more examples, but I think that you get the picture. The next issue of Autobody News will have a shop check list that will allow you to go through your shop and identify major potential OSHA problems.
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 29
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and 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.
Industry Insight
Paint Complaint Does Not Have to Mean Unhappy Customer with John Yoswick
more. I might not have known that this woman left so unhappy with us. Because (our CSI provider) lets us know with Ed Attanasioright away about negative comments, “The paint on the repaired panels I was able to call this lady and let her does not match the rest of the car. The know that I would be getting this shop says it cannot be made to match. taken care of for her.” I find this impossible to believe.” It wasn’t an easy or inexpensive fix. The shop owner said he personally picked up These words, an actual comment the woman’s car and brought it to the written by a customer of a U.S. shop, are shop to be resprayed. “On paper, that job not exactly what you’d like to see on the was a money-loser, no doubt about it,” comment cards or customer satisfaction he says. “But that woman has actually indexing (CSI) reports you receive. referred at least two more jobs to us in That’s why it seemed surprising that the the couple of months since then. This is shop owner said he was actually pleased someone who left here unhappy, ready when his CSI provider faxed him a copy to show anyone who’d listen what a of the customer’s gripe. lousy job—at least in her mind—we had “Yeah, of course, I always dread done, but now she’s telling people how finding out that we blew it with a cusgreat we are.” tomer,” the shop owner, who asked This shop owner’s experience that his name not be used, admits. points out that addressing an unhappy “But on the other hand, I’m not there customer’s concerns effectively can be in the shop all day, every day, any- every bit as valuable as working to Strategies for preventing customer dissatisfaction—and dealing with it when it happens
Shop Showcase
avoid having unhappy customers in the first place. Studies show that if you address a customer’s concern quickly, that customer can become one of your most loyal—even more loyal than someone who left satisfied in the first place. Here are some general guidelines and tips for customer complaint resolution based on interviews with shop owners. Skip the excuses. It’s easy to fall into a pattern of trying to explain away problems (“The parts weren’t available,” “We didn’t know about that,” “Our technician missed that.”) An explanation later is fine, but it shouldn’t be the starting point. And the explanation should never sound defensive. “One of my estimators agreed to refund $100 to a customer, but he did it with such a lousy attitude the customer still left unhappy,” one shop owner said. “If you do something for
a customer, do it willingly even if you don’t think it’s owed. Don’t do it begrudgingly. Do it with a smile on your face and allow them to feel that you’re doing it because it’s the right thing you do. Either way, you’re out the $100 today, but if you do it right, you’ll keep their business long-term.” Start with empathy. While an apology is important, it’s critical that the customer also feels that you understand the position they are in. “I have my staff say something like, ‘Oh, thank you for letting us know about this,’” one shop owner said. “‘I’m sorry for the inconvenience this is causing, but let’s see how we can make this better for you.’” Decide on a solution. Make a suggestion for a solution and ask, “Fair enough?” Or ask the customer what he feels is fair. In any case, make sure employees have the power to make a decision quickly. One study found that
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95 percent of complaining customers will return if their complaint is resolved on the spot, but this percentage plummets if the customer has to wait or jump through any hoops. Assure them you’re changing. Let them know that not only will their problem be fixed, but that you are taking action to see that similar situations don’t occur in the future. “Customers like thinking they’ve helped you and future customers,” one shop manager said. Go beyond resolution. Create a “story” for the customer to tell by fixing the problem in a memorable way. Make another concession they were not expecting. Give or do something extra. The cost of giving something away is usually much less than the cost of losing a customer’s future business and the business of all those he tells his story to. One shop with three locations in Illinois actually has a budget line in its annual expenses fund that office staff can use “to soothe things over with customers.” A customer who brings a car back because of a problem may receive a couple of movie passes or a coffee shop gift certificate they can
use at the near-by mall if the shop will need the car for an hour or more. “If we’ve really blown it, we’ll send them a restaurant gift certificate, particularly if it’s a repeat customer or one referred to us,” the shop owner said. It’s important, too, to look for trends in the complaints your shop receives in order to make longer-term adjustments and corrections. Getting to the root cause of problems isn’t always easy. One technique that can help you get to the root of a problem is the “five why’s;” you often have to ask “why” at least five times to get to the root of a failure. Here’s an example: Why was Mrs. Jones not satisfied with our service? Because her car wasn’t ready until a day later than we promised. Why was her car delivered a day late? Because we were waiting for a part. Why wasn’t the part here? It didn’t get ordered until the car was ready to go. Why didn’t it get ordered sooner? Because we didn’t know until then that we actually had the wrong part. Why didn’t we know we had the wrong one?
Because the technician didn’t check it when it arrived.
After five whys, you usually begin to see what needs to be fixed.
This can be time-consuming, but CSI can help you spot trends, allowing you to focus your attention on the areas that seem to account for the most complaints.
12 principles for solving customer complaints
1. Apologize. Let them know that you’re sorry they’re unhappy. 2. Remain positive. Don’t argue with them or sound defensive. 3. Empathize with them. Let them know you understand how they feel. 4. Listen. Don’t interrupt. Give them a chance to tell you everything. 5. Ask questions. Confirm that you have a full understanding of their needs. 6. Be an ambassador for your company. Let them know that you will personally handle this situation. 7. Don’t blame others or pass the buck. Admit that you (or the company) was wrong. Don’t dwell on causes or excuses. Original BMW Parts 8. Respond immediately. Do whatever you can do to get the problem fixed as quickly as possible. Delays work against you. 9. Try to establish or maintain some rapport with the customer. bmwusa.com 10. Use humor when possible. Making people laugh puts them at ease. 11. Agree on a solution. Make sure it is acceptable to them. Original BMW Parts 12. Follow through. Make sure things get done how and when you said they would. bmwusa.com
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 31
Shop Showcase
Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251
Bates Custom and Collision – “A Company With a Heart for Community” with Erica Schroeder
Bates Custom and Collision has two locommunities they work in. The shop is also in a Direct Refor 18 years. About AkzoNobel, they cations in Texas, one in Baytown and Bates also participates in a Com- pair Program for four large national praise the added value the company one in Channelview. Owners Lee and munity Giveback Program, which al- insurers. provides. “The value-added services, Leila Bates havewith centralized their busilows customers to consulting and benchmarking really John Yoswick ness around going beyond providing give an optional 3% make them the best in the industry. It’s great quality repairs and workmanship off the cost of their retheir can of paint plus services,” said to helping out the communities they are pairs to a local nonLeila. located in. profit. Any non-profit Bates also offers a Lifetime The Baytown location was can enroll in the proWarranty against defects in material opened in 1990 and is about 12,000 gram with Bates for and workmanship completed at their square-feet whilewith the Channelview lofree. shops. As long as the same owner Ed Attanasio cation opened in 2003 and is about “The Commuowns the car, they can come in to 9,300 square-feet. The business has 30 nity Giveback Profix defects on any repairs done at employees total and grosses just over gram is new and it Bates. $4 million per year. helps us be able to touch more organiza- Responsible Parenting and Benevolence Award: Front (l to r): Alisha, Bates Custom and Collision Tyrese & Corey Stimage; Middle: Lori Tadlock, Tracy & Alexis Stimtions than before,” age, Leila & Lee Bates; Back: Dave Dillon, Lucas Duran, Nuvia Sali3219 North Main Street said Bates. Baytown, TX nas, Juan Ramirez, Benjamin Garcia, David Cuellar. Programs like (281) 428-2209 this help to develop community partThe Bates also make a point to nerships with organizations and it’s an train their employees in programs like I- 15532 East Freeway easy way for the organizations to do CAR, ASE, as well as tech training from Channelview, TX some fundraising and to refer some AkzoNobel and Sikkens. They have (281) 452-9100 business back to Bates, said Leila. used AkzoNobel paints in their shops www.batescustomandcollision.com Currently the giveback program includes Betty’s Haven, Christian Women’s Job Corps, Friends of the Wetlands Center, Relay for Life Bay Bates’ Channelview location’s 50s-diner theme Area and Relay for Life North Channel. “What makes us unique is our Bates has also sponsored, and community roots, our level of in- some employees have volunteered in, volvement in both communities,” said other community organizations in www.mikecalverttoyota.com Co-owner Leila Bates. their 20 years of service. Leila and The Bates have been giving away Lee are familiar faces at a lot of the a refurbished vehicle in their Respon- community board meetings and Leila ry in Most Areas of TX & LA • Overnight Delivery sible Parenting Award and Benevo- chaired the local Relay for Life comlence Program ever since they opened. mittee for 13 years. • Volume Discountss They have given away 20 cars over 20 “My husband and I are both from years through this program. Baytown and we just truly feel like ng • One-Stop Shopping
Industry Insight
Shop Showcase
MIKE CALVERT TOYOTA
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Staff from the Bates’ two locations gather at their Channelview location
“This program really offers our employees a way to give back,” said Leila. On these types of projects everyone in the building, from painters to body techs, is working together after hours to give back to the
these are our friends, our neighbors,” Bates hosts Continuing Education seminars for insurers, staff and adjusters on the weekends as well. The program is Texas Department of Insurance accredited.
32 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
1-800-527-5368 Download at www.CollisionLink.com
2333 S. Loop West • Houston, TX 77054
Continued from Front Page
Auto Tsunami
sary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan. ● Toyota Motor Corp. and Subaru of Indiana Automotive Inc. slowed North American production to ration their parts. Toyota’s initial freeze in production has been extended until March 22. In an attempt to limit the financial losses that will come as a result of the production freeze, Toyota also announced its decision to resume the production of spare parts for vehicles already on the market beginning Thursday, March 17. ● Last week U.S. Customs directed all port operations to begin screening arriving Japanese sea and air cargo, including vehicles and auto parts, for radiation contamination. ● At Sonic Automotive Inc., the nation’s third-largest dealership group, Jeff Dyke, executive vice president of retail operations, said Sonic “is prepared to supplement our new-vehicle inventory with quality nearly new
used vehicles should the manufacturing disruptions interrupt new vehicle inventory supplies longer than currently anticipated.” Automotive News Writer Lindsay Chappell reports that as Japan’s escalating disaster comes ashore in North America, automakers, suppliers and dealers are preparing for what could be unprecedented shortages of parts and vehicles. ● While Honda was the hardest hit of OEMs in Japan, more than 80% of Honda and Acura products sold in the U.S. are produced in North America, and the vast majority of automotive parts for Honda automobiles manufactured in North America are sourced in the region. ● Nissan Americas manufacturing operations plan to follow a normal production schedule for at least until Friday, March 25. The supply chain is being continuously assessed. Nissan said all North American manufacturing plants will continue to operate on schedule. It does not expect any shortterm impact on sales or availability of cars and trucks. In addition, the company has a 50 days’ supply of vehicle stock in North America or already in transit from Japanese ports.
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● Autoliv Inc., the world’s biggest producer of car safety products like seatbelts and airbags, said production had been halted at one of its three Japanese plants, although all the plants were undamaged. Autoliv supplies Nissan, Toyota, Mitsubishi, Honda, and Mazda. ● Mazda Motor Corporation previously announced the suspension of production at its Hiroshima and Hofu plants from the night shift on March 14, until March 21. ● Mark Fields of Ford said the company was assessing production on a day-to-day basis. That it was GM—rather than one of the Japanese automakers, which depend on many parts from their home country—that succumbed first to the shortage shows how much the industry depends on far-flung suppliers. But Toyota and Honda have shut their plants in Japan until next week as they try to repair damaged facilities, assess the state of their suppliers and determine how to restart production safely. “The modern auto industry has never faced a natural or human calamity on the scale of today’s crisis in Japan,” Michael Robinet, the director of global production forecasts for the research firm IHS Automotive, wrote in a report. G.M. said its assembly plant in Shreveport, La., which makes a pair of compact pickup truck models, would be closed for at least a week, starting March 21. The company said it would resume operations there as soon as possible, but gave no estimated date for doing so. “Like all global automakers, we will continue to follow the events in Japan closely to determine the business impact, working across the orContinued from Page 20
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tivity. So we had to have a laptop to make the connection, but a regular laptop wasn’t going to work because the technician transfers data around.” Tackett said there are 4000 Ford dealers in the U.S. and all using the same application. He recommends that all of them consider switching to the Eagle as a lower cost rugged solution. “The price-point was the biggest deal, and the fact that it was rugged. The only extra thing I purchased was the touch screens, which the techni-
ganization to maximize flexibility, supply the most critical operations and effectively manage cost,” G.M. said in a statement. Production at Ford Motor has not been affected, but officials are still assessing the situation, Mark Fields, the president of Ford’s Americas division, said. “It’s literally an hour-by-hour, day-by-day type of thing that’s going to unfold,” he told reporters at an event to commemorate the start of production of the new Ford Focus compact car near Detroit. “We have to first understand what is the situation there, and then we’ll determine the appropriate actions that we need to take.” So far, all auto plants in North America have stayed open despite the troubles in Japan, although Toyota and Subaru have canceled overtime shifts to slow production and avoid depleting part inventories. In Japan, most plants remain closed. Mitsubishi began bringing plants back up March 16, and two Nissan plants in Kyushu restarted operations on March 17, but Nissan was uncertain whether it could keep them running for more than a few days. Toyota has said its Japanese plants would remain closed through at least March 22. Each lost workday for the carmakers in Japan costs them a total of about 37,000 vehicles, Mr. Robinet said. He estimated a total loss of more than 285,000 vehicles, assuming most plants can be restarted within a week. Every automaker faces slightly different circumstances. At Volvo, for example, about 10 percent of the parts come from 33 Japanese suppliers, seven of which were in the catastrophe area, including one on the edge of the nuclear security zone. cians really seemed to like,” explained Tackett. “They like them because the screens are quite a bit bigger than they were on the Toughbooks that Ford was suggesting.” But here is the real bottom line. When asked how the Rugged Notebook Eagle laptops have improved his efficiency, Tackett had this to say, “If we don’t have them, we can’t do work. That’s just about as simple as it gets.” Wade Ford of Atlanta 3860 S. Cobb Drive Smyrna, GA 30080 (770) 436-2200 www.wadeford.com
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 33
Shop Strategies for Savings
Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.
Business Liability Insurance: Review & Research Before You Renew! with Walter Danalevich
This month, let’s take a look at Business lope arrived via special delivery at our Liability Insurance needs for operating office. On opening the envelope I disa professional body shop with the goal covered a binder containing our busiof adding profit towith your bottom line. nessInsider insurance policy documents The Insurance Our auto body shop in Santa Barpertaining to the next policy term. bara, California, after several years of My first thoughts after opening patronage to a well-known business the envelope were skeptical. In years insurance provider, recently changed past we never received a renewal polour business liability insurance carrier icy before discussing our renewal into another major player. tentions with the assigned insurance with Chasidy Rae agent. Sisk The results were a saving of about 33% from the previous year with simI came to the conclusion that ilar coverage. Like most of us, I am someone from our insurance company guilty of getting too busy during the appears to have placed us on an “Auday-to-day operation of our business tomatic Renewal Mode.” to review our insurance policies and A few days later I initiated shoptheir costs on a regular with basis. Chasidy Rae ping Siskfor other insurance quotes. My What motivated me to review my preference was to speak to an auto policy and getting new insurance body shop liability specialist instead quotes was an act of “overeagerness” of shopping for quotes online, withfrom my insurance company to roll out really understanding what is covover my policy. ered. A few weeks before our policy Soon afterwards, I scheduled an expiration date, a large brown enveappointment at our shop with a busi-
Inside Insurance Northeast News Shop Showcase
ness insurance liability specialist. Within 24 hours I was presented an insurance quote which was approximately 33% less than my long time insurance company. When I realized the annual savings I felt some bitterness as a result of accepting the rates from my longtime insurer for so many years. Based on my business insurance shopping experience I highly recommend reviewing your insurance policy at least 60 days before the renewal date. With some preplanning and research you should have sufficient time to choose the best value for your specific insurance coverage needs. All it takes is allowing some time to acquire comparative insurance quotes instead of proceeding with the habitual “automatic renewal”. The following policy options can be used as a preliminary aide to help you understand your business liability
insurance. At a minimum, your business should have the following protection;
● Business property insurance: Protects your business by funding repair or replacement of damaged physical assets. ● Building coverage: Protects your business against financial losses resulting from claims of injury or property damage caused by you or your employees from your products and services.
● Workers Comp Insurance: Protects you and your employees to satisfy medical needs in the event of an accident or injury. ● Business Auto Liability Insurance: Protects you from liability created as a result of damaged incurred to another
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party’s vehicle and bodily injury. ● Business Crime Insurance: Protects your business from fraud, theft, forgery or robbery. Optional Insurance
● Business interruption coverage: Allows you to continue to receive income while your Auto Body shop contents are being repaired or replaced.
● Employment Practices Liability: Protects you from employment related offenses against you.
● Umbrella liability: Adds additional coverage over and above your primary policy.
● Machinery and equipment breakdown: Covers loss of Business income resulting from equipment damage.
Remember, there is no such thing as a one-size fits all business insurance coverage. I highly recommend you steer away from the “automatic renewal”
mode and discuss your shop’s insurance repair needs with an experienced insurance specialist who is knowledgeable in understanding and explaining the variety of available auto body shop insurance coverages. Remember, your business has specific needs which may change over time. As a result of reviewing your policy with an auto body shop insurance liability specialist annually, it will provide you peace of mind about your insurance coverage and will continue to fully protect your and your family’s assets. The choice is yours, either preplan your shopping several weeks in advance of your renewal date or go with the status quo and see where your business liability insurance journey takes you!
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Auto Angels Revs-up for 2011 Car Give-Away Program The first meeting for the 2011 Auto Angels was held February 22nd, in Lakeland, Fl where local collision industry professionals came together to discuss plans for a repeat of last year’s highly publicized and successful benevolent car giveaway program. Last year Auto Angels presented five nicely reconditioned automobiles to five very grateful recipients. “The experience was incredible for all involved and this year the goal is a lofty one whereas the intent is to bestow fifteen reconditioned vehicles to local community members. So far we have two vehicles and several more have been promised, but we need more.” states David Stewart; this year’s Auto Angels project Chairperson. This year’s program will be held under the Polk County Chapter of the Florida Autobody Collision Alliance (FACA) which is a not for profit organization. Barrett Smith of Auto Damage Experts, Auto Angel’s interim spokesperson states; “This may provide the donors the opportunity to use their generosity as tax deductible contributions as well as to shield participants from potential liabilities. This will also enable the
community, other local repairers, sponsors and supporters to become more familiar with FACA and help in promoting the association, the Auto Angels program and the participant’s businesses through their involvement.” In attendance were: -Cherri Surrency of Regal Automotive Collision Center -Doc Jenkins of Jenkins Lincoln Mercury Collision Center -David Stewart of Stewart’s Auto -Sean Douglas of Douglas Collision -Ray Gunder of Gunder’s Auto Center -Michael Meisner of Meisner Paint & Body -Wayne Schumacher of Haines City Paint & Body -Barrett Smith, Auto Damage Experts, Inc. Auto Angels is currently seeking participants, sponsors and donors to make this year’s car give-away as successful as last year’s. For more information on how you may contribute your time, experience and resources to the Auto Angels Program please contact: David Stewart @ 863-965-2030 or e-mail at David@StewartAutoRepair.com
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Action Counts
Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com
Underqualified Repairers Hurt the Whole Industry with Lee Amaradio Jr.
As the financial pressure mounts with the a bunch of pompous overcharging U.S. recession going on three years now, prima donnas. The fact is that it costs the collision industry is rapidly bewith Leefalling Amaradio Jr. to repair a collision properly more hind the technology curve. Many shops than to do a proforma job and in are unable to afford the training and new today’s marketplace it is also less equipment required to repair today’s modern vehicles. profitable to do it right. Although the
Action Counts
overall ticket average may be higher Insurers are accutely aware of the fact the bottom line profit remains lower. that there are fewer fewer shops withandSheila Loftus The entire collision industry is able and ready to repair many of struggling because we have allowed today’s high tech vehicles. The old ourselves to become “yes men” and methods of repair will no longer work throughout this recession things have but the responsibility to educate the inonly gotten worse. How can anyone surers lies with the collision repairers agree to repair a vehicle the new techthemselves. But how can a shop that is nical details of which they know little with Sheila comLoftusor nothing about? Yet many shops are well-educated and well-trained pete in a marketplace where the status doing this every day. quo is so far behind the times? We’re The inexperienced adjuster says implicitly teaching insurers that it’s still you do it this way and shops say ‘yes,’ OK to ‘repair’ vehicles the way we alsome to eliminate any repercussions ways have because to do so costs less. and others because they think it’s OK. When we are forced to prove this It is never OK to put a used welded with Janet Chaney point over and over, it makes the shop frame rail on vehicle but I am forced that is doing a proper repair look like to argue this point weekly. Because
Your Turn Your Turn
Shop Showcase
the wrecking yard has clips available does not mean we should be using them. So why do we find it necessary to have the same argument over and over almost weekly? The reason is because of undertrained, underequipped body shops. Adjusters are not our problem; insurance companies are not the problem—underqualified shops are the problem. Eliminate the underqualified, undertrained shops and you will eliminate the problem. Why? Because training raises the standards bar for everyone. When the inexperienced adjuster comes in to a well-trained shop and then goes on to the next one, he or she is hearing the same thing everywhere (s)he goes and he or she begins to learn something, the supervisors begin to learn something, and the argument of repairing the vehicle correctly goes away.
I believe there are many roads that lead to the same destination but with collision repair we first need to define our destination before we begin our journey. If our destination is to control costs (at all cost) we arrive someplace different than where a safe structural repair should lead. If our destination is a safe repair that restores the integrity of the vehicle’s standards then cost alone cannot be the guidance system to get us there. I believe that the only consistent credible way to restore the vehicle’s safety after a collision is to rely on what the OEM’s have tested and proven to be deemed reliable methods. Anything differing from the restoration of the vehicle’s structural integrity is the wrong road to follow. Everybody needs to use the same map to arrive at the correct destination with a collision repair. See Underqualified, Page 39
Shop Showcase with Janet Chaney
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36 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
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Custom Corner
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Remaking a 1941 Chevy Deluxe Back-End with an English Wheel with Rich Evans
This month is a current project I’m working on which is a 1941 Chevrolet Deluxe STD two-door sedan. This is for some of you fabricators out there and other body men who know that sometimes you can’t just replace parts or parts aren’t available. This 1941 Chevy was rear-ended and the impact
lids. Chevys of the ‘40s offer a fiber glass one but this customer wants metal. You know some customers are different, some will play off the fiber glass. Sometimes you can look for used deck lids and I put my feelers out there and I could not find any used deck lids for this ‘41 Chevy. The prob-
On Creative Marketing with Thomas Franklin
Opinions Count lem is the ‘41 Chevy is the only year
damaged the deck lid, the left quarter panel, the bumper fillerDick and theStrom floor. with So I’m having to repair this deck lid because there aren’t any deck lids available, or at least any metal deck
that those deck lids would fit, especially for the sedans. From ‘42 to ‘48 they’re all interchangeable. So that narrows the options a lot .We’ve got a
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vehicle that doesn’t offer this deck lid as a match for any other year. The best way to start this process is to take the deck lid off and strip it all the way down to metal, so there’s maybe 65–70 years worth of body work, bondo, paint, etc. I strip all the metal off inside and outside. From that
I can. Then I’m going to take it back to the vehicle, bolt it on, and make sure I’ve got that frame fit as best as it can. I’ll make my adjustments as needed. Then get the latch on it now to make sure it latches, because then I can see everything without having to skin everything. I spend a little bit of
point we’re going to depick the skin from the frame and there’s special tools out there for that. You can find them through Eastwood and different speciality companies like VIMTools. These guys carry specialty equipment where you can go back and pull things apart without damaging them too badly. Next I drilled the spot welds out then depicked it with a depick tool to roll that edge back out. I take my time on this. I don’t try to get into it too hard because these panels are 70 years old and they’re going to be brittle and have rust in them. If you’re too rough you’re going to have to go back and repair them. The process I used takes a little bit of time so you’ve got to be patient with it. After removing the skin from the frame, I hammer it out roughly with a hammer and dolly. Use a sand bag if you need to. Try not to stretch the metal too much. Just try to rough it into its shape because metal does have memory. I used a selection of Martin Hammer tools and dollys. If you guys aren’t familiar with Martin Hammers go to their site at www.martinsprocket.com. They’ve been around for years and even have books that tell you how to hammer and dolly and show you different techniques. They have a variety of hammers, a variety of dollys, spoons, you name it—they have it. Their tools will help you to get through a process like this. I’m going to start with the frame, and hammer it out to get it as close as
time reinforcing, welding, and repairing which will pay off in the end. After that’s completed I drill two 1/8th-inch holes in the left and right hinge so I know that this structure will go back exactly where it needs to go. I don’t want to spend a half-hour to maybe 2 hours trying to adjust it and get it back where it was. Now to reinstall it I insert two 1/8th inch dowel pins in there, put your 3 bolts on each side, tighten them, and you’re right back where you were. I call it a mock up. I’m back on to the skin now. I’ll hammer and dolly it, slapstick it a little bit, get it as close as I can. I’m going to go use the English Wheel to try to even out the metal. You want to do this as a slow process because you don’t want to stretch the metal, you just want to get it back to where it was. You want to make sure all your high and low damage spots are mostly gone. Start working from one end to the other with the English Wheel, roll it, tighten it a little bit, go back through the same process again, roll it some more, make sure you’re not putting too much pressure on. All you want to do is just even it out, and the panel should take its shape back. You want to use the flat side of the English Wheel, the flattest wheel you can get, the ones without any radiuses on them. A slight radius basically. So it’s a back and forth motion, the more you use the English Wheel the more you’ll get comfortable with it. Just another
www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 37
tool. Woodward is a sponsor of mine, so check out www.woodwardfab.com. They have affordable tools from hammers to English Wheels to shears. All their stuff is affordable. They have 36inch throats or 24-inch throats on the English Wheel. You can make that work until you start stepping it up and doing bigger panels like roofs and bigger fenders on bigger cars. You can then upgrade to something else.
get them right, and do whatever alignments I have to do to massage the skin connected to the frame. Then I put the latch in to make sure the handle fits. The handle has an alignment part where it has to go through a hole, so I make sure that’s centered and shut. Then I can massage it a little more with the hammer to get it closer to fitting perfect. Now I go outside of the deck lid
about seat time, that’s how you’re just going to better yourself. My daily focus is to get up every morning and learn something new and try to better myself, it’s all I can do. That’s basically how I run my day in a nutshell. You have to love what you do, and I love what I do. Anyone else working on these ‘40s might want to look up a company called Chevs of the 40s. They’ve got
they’re getting parts or if they’ve worked on these types of cars. I even went to Gene Winfield to see if he had any contacts on digging up a deck lid and all the way back to South Dakota to where my brother lives to see if he knew about any deck lids. I must have spent about two days searching for a deck lid and with those two days I have pretty much knocked out this deck lid. I’ve got about 19 hours into
After I’ve spent about an hour and a half using the English Wheel, I’ll pull the skin out, lay it on the structure that’s bolted to the car. This way it’s easier for me to see how it’s going to fit. Then I clamp it up, but not too much pressure with the clamp because too much pressure will bow the structure and it could twist on you. When it’s sitting right without too much pressure on the clamps you can remove it from the car and set it up. The next step is like putting on a regular door skin. We’re going to roll it back. Some pieces break off on the edges just because it’s been brittle so save those smaller pieces. I found
and find the low and high spots, mark them out and work from there. I can pull some of the low spots out, even out your high spots and then you can start filing at that point. I’m thinking now how far I want to take it and remember, we all need to make sure we get paid for our time. I’ll put a skim coat of Bondo™ on it, shape it, and try to keep that Bondo™ under an 1/8th inch. Going for 1/16th inch would be better, 1/8th inch at the max. Spend a little more time, use a uni-spotter, nail gun, pull out those lows, if you have to heat a little bit, then heat it and shrink it, keep that metal tight.
at least an inch thick catalog. Visit them at www.chevsofthe40s.com. They’ll give you a free catalog. They’ve got parts that I wouldn’t have even known they had. Often I’ll come across a project where I have to reach out and spend a little time on the computer. Check with friends and find out where
the whole process and, again, I want everyone to make sure they get paid for that. If it’s an insurance job, make sure you get paid for metal time, for fabrication time, all of the above because it is a learned skill and it does take time as well as taking us away from other projects. Cross your T’s
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O K L A H O M A C I TY some cracks where I need to roll it. I do the next step with a TIG welder. Some people use a torch. I don’t have a flame, but I TIG those areas where it allows me to roll that edge over to the frame. Then I can take the pieces that broke off, clamp them there and TIG them back on. Then hammer and dolly the welds flat. With a TIG welder you don’t have a lot of build up as long as you get your settings right. I don’t weld it in place because I might have to shift the skin around a little bit. I reattach the deck lid to the hinges, set it down, check the gaps to
I may have to split some panels if some work has been done before on the back. Not a surprise. This car’s been around for awhile. I can split the panels, get the gap a little better. Mock up is key, before you even start shaping. Once I have the gaps I’m pretty much home home free. Then it’s left to primer block, mask and blast, you’re ready to go. So those are a few little tips for the process I use. Metal finishing versus taking the easy route and just putting a fiberglass deck lid on. Take some time. Learn and work the metal. It’s all
38 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
See Remaking, Page 39
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properly and they are naturally gravitating to the shops that are trained and equipped properly. There are plenty of resources So where does this leave the available for shops interested in makshops that may be willing to do the reing the cut. VeriFacts, I-CAR, ASE, pair correctly but lack the knowledge OEM programs, and ALLDATA for or equipment to do so? It leaves you OEM specs come to mind. Join these on the of the collision indus- affecting Give ussidelines your opinion on matters the industry. groups in raising the bar, and pass the try until you gain the credentials reeducation you get from them along to quired to repair today’s modern your customers, insurance adjusters, vehicles. Would you head out on a and your fellow shop owners. publisher@autobodynews.com cross-country trip without knowing Support the industry, protect your where you were going or with out customers, and don’t get left behind. knowing your destination? Certainly Not. So it’s time to step up and check your destination or you will find yourselves lost in the wilderness without a To advertise The sourcewith for no timely map or compass way of ever call Joe Momber at: getting back. Thisthat mayevery sound harsh information 800-699-8251 but 50% of shop the shops will not make body needs! the cut. e-mail: jmomber@autobodynews.com Insurers are becoming more and CALL 800-699-8251 more conscious of the liability inwww.autobodynews.com Start volved if theYour vehicleFREE is not repaired
W
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Dad would make a comment to the customer as to what was going on. His old school charm was what made the difference. At times this nectors and the information booklet whole thing would get quite humordidn’t come with it. ous. I’d be lying under the dash zapI took it apart and rewired it as ping the buzzer and good old dad a large volt meter, with a lighted would be working his magic with his buzzer to a separate of Southwest broad smile, and his quirky sense of Wantattached to Contribute toset this Edition? wires. We then rigged up a swinging humor. arm mounted to the wall out of PVC These days the electronic scanpipe. The pipe contained the wires to ners have somewhat evened the playpublisher@autobodynews.com the tester that we mounted on the ing field. To some degree the abilities wall. It was more for decoration than of a good tech are now wrapped up in usable, but it was kinda cool in its a good quality diagnostic machine. own funky way. still takes a good tech to underPromote your business with But it Promote your business with Anytime we got one of those stand it, and evaluate the information an exclusive article ansees exclusive article featuring “lookylews” (one of my dad’sfeaturing favorite he/she on the screen. products or services. your services. words),your you know the type, the kind I still try products to diagnoseor things as fast that has to hover over the hood while and accurately as I can. I don’t have you’re working on it. Dad would mo- the old buzzer, or my dad’s inventive tion to me to wire up the buzzer to the conversations with the customers to battery, and use it as a way to find the help me with the diagnostics. It’s a Momber for details! memory I’llCall details! drawCALL: or shortJoe in the car. neverfor forget. But, I’ll alHis job was to entertain, while I ways keep in mind some of those les800-699-8251 800-699-8251 looked for the problem. Most of the sons from my father… “Take your time, I’d study the wiring diagrams, time son, you’re good… but they (the determine the most likely spot for the customer) don’t know how good you problem, and find the solution. As I are… so you’ll have to prove it to them would get close to the problem I each and every time.” for Our would intentionally ground out the Old school wisdom is still imbuzzer on the wall, and it would make portant, and fatherly advice is some of a horrible noise. the best Continued from Page 21
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Remaking
dot your i’s, be smart about it, have fun with it. At the end of this build, we’re going to add a little two-tone, put the color back on it while it has its down time. The owner wanted to do a few alterations and that’s what make it fun. With this project I also found a lot of problems, the striker used house screws to hold it on, the lower bumper filler had about 50 self-tapping screws. I welded all the holes and put nut inserts on and marked them out evenly. It just makes for a cleaner job. You’re not getting paid for this, but you’re practicing to get better, and that’s what we should all do every day. When I see something wrong, I
just take the time and fix it. Do what it takes to make the job better than when it came in and fix other people’s problems that they overlooked. That makes you a better tech and keep on going guys. Better yourselves. Check out my new show Car Warriors on SPEED, 6pm PST and 9pm PST every Wednesday night. It’s the hottest car build competition show that’s ever hit the airwaves. If you’ve never thought about what you can do in 72 hours, this show will show you what can be done in 72 hours. Trust me, what can be done will blow your mind. Got to my fanpage on Facebook, Rich Evans Designs, become a fan and you’ll be able to stay up to date with everything I’m doing and the projects I’m working on day in and day out. Talk to you guys next month.
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www.autobodynews.com | APRIL 2011 AUTOBODY NEWS 39
Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and 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.
Recyclers, Repairers Look for Ways to Improve Business Interactions with John Yoswick
Mel Hunke said he’d like to eliminate • Consider more part types. One pothe “wedge” between collision repairtential win-win-win for recyclers, iners and auto recyclers. surers and repairers could result if Ed Attanasio “We used towith work together really recyclers helped make shops aware of well,” Hunke said of the two indusparts they are likely to need in a repair tries. “But once insurers stopped paybut that are not typically purchased ing for clean-up or repair time on from a recycler. recycled parts, they basically said, “If you buy a fender, hood and ‘You two fight it out.’ And we’ve been bumper from me, but you also need doing it ever since. That’s the wedge the windshield washer jug and battery that was driven.” tray and all the other stuff recyclers Hunke, a former shop owner are currently crushing, we can amorwho now represents the Quality Re- tize our overhead and dismantling placement Parts (QRP), a coalition of costs over more parts, and you can inauto recyclers in nine states, was crease your alternative part usage and speaking at the third “Recycled Parts save totals,” Hunke said. Roundtable,” held in Las Vegas. The A representative of one multigatherings, originally organized by shop operator at the meeting said his QRP but now open to anyone, bring company is working with recycled together representatives from all seg- parts vendors on just such an effort so ments of the industry to discuss and the collision repair business can mainwork to resolve issues related to re- tain insurer-required levels of recycled cycled parts. parts usage without having to use “We need to blow out the wedge structural or other types of recycled and put our relationship, our core parts it would prefer not to. business-to-business process, back to- • Understand and use part grading and gether in a way that benefits everydamage codes. Those at the meeting one,” Hunke said as he opened the agreed that too few recyclers and most recent roundtable. shops recognize and understand the It was clear by the end of the codes that have been standardized half-day meeting that many of the two within the industry to grade recycled dozen participants – primarily owners parts and identify the type and locaof shops and recycling yards – learned tion of damage on those parts. Educathings that could help them eliminate tional and reference materials on these that wedge. Here are some of them. description systems are available at • Photos could help. A Texas shop the “Standards & Codes” section of owner at the meeting asked if recythe ARA website (www.a-r-a.org). clers can make photos of the parts • Understand estimating issues related they have available. Photos, he said, to recycled parts. Industry consultant can help a shop confirm the color and and former shop owner Mike Andercondition of the part. It also could help son said at the meeting that he serves recyclers with better quality (or more on an Automotive Service Association accurately described) parts compete committee that recently updated the with those selling lower-priced but “not-included operations” chart it crelower-quality parts, because the shop ated for recycled parts (a similar chart could see, for example, that the lower- is available for new parts as well). The priced part has rust along the bottom charts summarize what operations are edge. not included in each of the “Big Several recyclers at the meeting Three” estimating system times and pointed out that yards meeting the Authus may need to be added to an estitomotive Recyclers Association’s Cermate when using such parts. tified Automotive Recycler program • More data would help. Participants take as many as two dozen photos of at the Recycler Roundtable meeting vehicles before dismantling. Although have agreed that some data collection few recyclers have photos of individcould help shops and recyclers work ual parts available, these “Gold Seal” better together – and perhaps help inrecyclers can provide those vehicle fluence insurer practices. Work has photos upon request to the shop. begun, for example, on a survey to
Shop Showcase
40 APRIL 2011 AUTOBODY NEWS | www.autobodynews.com
better understand the expectations of shops, insurers and recycler in terms of recycled parts use to help each segment better meet more of those expectations. They survey is likely to ask shops, for example, how valuable the availability of photos of recycled parts would be. One meeting participant also suggested that a statistical case study look at whether insurers could benefit from accepting lower values for salvage if it increased the availability, pricing and use of recycled parts. A study could also look at how insurer-mandated use of particular recyclers or the “lowest-cost” part negatively impacts shop efficiency. • Spend some time at each other’s business. Recyclers and shops at the meeting who had taken the time to visit the recycling yard they purchase from—or the body shops they sell to—agreed it was time well-spent. It’s
a great way to see things that each side in the transaction may be doing or not doing that negatively affects the other. Ordering parts ahead of determining if a vehicle is a total loss—or ordering the same parts from multiple recyclers to see which arrive first or in the best condition—are examples of shop practices that negatively affect recyclers, those at the meeting discussed. Recyclers’ dismantling practices, or failure to accurately describe part conditions, cost shops time and money. Time spent at each other’s businesses can help shops and recyclers work better together, those at the meeting agreed. • Understand the value of the Gold Seal designation. Recyclers at the meeting said shops could help themselves and the industry by just asking the recyclers they deal with, “Do you have the Gold Seal designation?” See Recyclers, Repairers, Page 43
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Northeast News with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who works in a variety of fields and subjects, but grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
AASP/NJ’s Northeast™ 2011 Trade Show—A Wealth of Information for Shops The American Coatings AssociaShop Showcase tion’s Automotive Refinish Coalition
urged the OTC to move forward with Chasidy Rae has Sisk
I had the recent pleasure of attending my first Northeast 2011 Trade Show at the Meadowlands Exposition Center in Secaucus, NJ, on Friday and Saturday, March 18–19, 2011. For the benefit of those who were unable to attend I’ll do my best to summarize some of the presentations here, but all who are able should plan to attend next year. It’s a very worthwhile event and a great value for collision repairers.
Waterborne Panel Sponsored by BASF With pending regulations in the Northeast which will very likely mandate adopting waterborne paint to minimize VOCs, many shop owners have questions about converting to waterborne systems. Many of those regulations will come from the Ozone Transport Commission, a coalition of eleven East Coast states and the District of Columbia which advises the EPA on regional solutions to air pollution. The OTC has adopted a model
with adoption of the Delaware rule, which is based on the California mandates, for all its member states. Anticipating this, BASF hosted a panel at Northeast to discuss waterborne paint and the cost of an effective transition to a waterborne paint system. Tom Hoerner, Strategic Initiatives for BASF Refinish, hosted the panel, directing questions to six individuals experienced with waterborne paint: Tom Elder of Compact Kars, Inc.; Tom Smetanka, the General Manager of Central Paint; Tom Beck, owner of Future Care; Kevin Hundt, sales representative for BASF; Luigi Zucchet of USI of North America, Inc.; and Bob Hickey, sales manager with SL Marketing Specialists. Hoerner began by asking generally about today’s regulations for water-based paint. Hundt responded that there are no specific regulations in the northeast yet, or indeed anywhere other than in California, Europe and Canada which are 100% regulated. Although discussions during the past few years have yielded no exact date, moving to waterborne has become a strategic focus and will be mandated eventually. Asked about the advisability of converting to waterborne systems
Northeast™ 2011 Waterborne panel (l to r): Tom Elder, Tom Smetanka, Tom Beck, Kevin Hundt, Luigi Zucchet & Bob Hickey (see text for affiliations)
rule, which is based on the recently adopted Delaware rule. Delaware, which is a member of the OTC, has already set the following allowable VOC content for various refinish products: Primer: 2.1 lbs./gal; Clear coating: 2.1; Base coat: 3.5; Multicolor coat: 5.7; Sealer: 5.4; Singlestage coat: 2.8.
early, before any mandates, Hundt pointed out waterborne systems are better for the environment, and offer many benefits to shop, such as providing easier coverage due to heavier pigment loads and being safer, but not completely safe for employees. Smetanka suggested that getting one’s shop converted before any mandates
occur might provide shop owners with a better chance to get help from jobbers and manufacturers and give more time to understand and perfect usage of the product before the regulations are passed. Beck explained that the most important need for a successful conversion is the support of one’s local jobber which is aided by converting early while jobbers have more time to spend with individual shops. Elder, Smetanka and Hundt all agreed that training and everyone in the shop buying into the change are Tom Hoerner the most important aspects when converting to waterborne. With regard to what improvements are needed in equipment, Hickey stressed the importance of ensuring an adequate clean air supply and a shops compressors’ CFM being able to handle the demands of the equipment, including the possibility of extra hand-held blowers. Smetanka cited the importance of keeping the shop clean to avoid dust being stirred by the increased velocity of the air, as waterborne is more sensitive than solvent to airborne contamination. Concerning the importance of investing in extra air movement, Elder and Smetanka agreed that it is absolutely essential to increase the amount of clean, dry air movement over that required by solvent flashing when using waterborne paints. Beck emphasized the consistency that is made possible by robotic and standardized equipment in factory environments. Hundt and Hickey agreed on the importance of adjusting temperature and air flow while monitoring humidity, and Zucchet cited the the booth’s cleanliness as equal in importance to that of air flow and heat. Hundt said that the education required to convert to waterborne is minimal, while Smetanka pointed out that the conversion is easier when switching from solvent to waterborne while using the same manufacturer since the shop will not need to learn a
new system. Elder contributed that he has seen a decrease in the cost of his basecoat since switching to waterborne because it requires less paint to cover the vehicle, again due to the higher pigment loads of waterborne. Elder and Smetanka praised the excellent color matches that waterborne paint offers, and Hundt said using waterborne systems can be faster than solvents when done correctly. In response to an internet question about the effect of contaminants in the air, Hundt stressed the need for clean air. Fisheye-type blemishes are common if oil droplet contamination, for example, gets into the air supply. To make the conversion easier, Elder suggested total buy-in from all employees since processes change a bit and removing the solvent-based system as soon as the waterborne system is installed to avoid returning to the original system when problems arise. This is sometimes referred to as “Cold Turkey conversion” in California. There shops that tried to gradually transition from waterborne learned that it delayed conversion because painters sometimes reverted to spraying solvent when even minor problems arose. Hickey reiterated that proper education is important, and Smetanka emphasized the importance of making sure employees do not fall back to old habits. In conclusion, Hundt offered that converting to waterborne may be a little uncomfortable because it is a change, but it is not difficult in principle to switch to a waterborne painting system. Those that have done so do not regret the transition. Requirements for Drying Waterborne Have you ever wondered about drying waterborne compared to solventbased paints in our not-always warm and sunny climate? Do you have to have a balmy Southern California climate to dry it successfully? The short answer is ‘no.’ Panelist Tom Beck, CEO of Future Care which manufactures spray booths, led a seminar titled Drying Waterborne: What You Need to Know. Explaining that drying water-based paint requires evaporation of the water
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within the substance, Beck investigated how evaporation occurs under specific conditions. By experimenting with a wet towel on a clothesline, Beck demonstrated that the velocity of air movement is more important than increased temperature when attempting to dry waterborne quickly; however, his goal is to increase both the velocity of air movement and temperature, especially in the wintertime. Because waterborne paints are slower to flash than solvent-based paints due to the heavier water content, it was imperative for manufacturers to determine how to accelerate the speed of evaporation so as to avoid affecting flash-off time for shops using waterborne paints. The Tom Beck temperature and speed of air coming through booths must therefore be increased. Warm air is less dense than cold air, allowing the air to absorb moisture. Unfortunately, cold air settles lower to the ground since it is more dense, and this leads to an ineffective method of drying paint when using a downdraft air flow which will push air down over the car in a “tenting” effect, causing the ends of the car to dry much faster as more air is being pushed through these small spaces between the vehicle and the walls of the booth. The hotter air picks up water molecules from the paint as it passes over the car. Accelerated drying systems reduced flash-off time by up to 50% for waterborne paints, increasing productivity and reducing energy costs. Beck classifies systems that use compressed air, such as hand-held dryers, as stage one systems which consume a lot of energy. Stage two systems do not use compressed air. Such systems include ceiling fans, booth pods and Jun-Air QADS. The problem with ceiling fans, according to Beck, is that they generate static electricity and spread dust. Booth pods take a large amount of air in through the top and output it through a smaller space, but they do not increase the temperature and do not eliminate static electricity. JunAir’s Quick Accelerated Drying Systems (QADS) push air through a smaller opening and warm the air by redirecting the hot air from the plenum through vents that redistribute the hot air to the level where most of
the painting takes place. Beck said the temperature will need to be greatly increased in a system that forces air downward in order to reach the goal of 140°F in bake mode, but since cold air molecules fall and warm air molecules settle on top of them, the lower surfaces of the car will still not reach the necessary temperatures for the paint to dry properly. This is critically important as the paint will move if a clear coat is applies before 100% of the water in the paint is evaporated. The QADS, by bringing air from the plenum through ducts on the side of the booth, allow all surface areas on the vehicle to reach the necessary temperature to dry effectively. Additionally, the QADS contains a ionization bar which neutralizes static electricity within the booth.
Finding an Integrated Balance between Quantity and Quality in your Shop Culture: If you don’t have time to do it right, when are you going to have time to do it over? “Facility Verification and Quality Processes: What It Means to You” was the title of the informative seminar given by Mark Olson, well-known quality control speaker and COO of VeriFacts Automotive. Olson began by defining a “quantity culture” as being one in which shops focus on throughput, cycle time and profits, assuming quality will take care of itself. But this is a short-sighted strategy in managing productivity in your shop unless Mark Olson you also incorporate a balance of “quality” said the VeriFacts cofounder. Olson believes the best culture for auto body shops is in finding a balance between quantity and quality. An effective shop culture needs standards that will hold people accountable while also empowering people to do the right thing. Olson reminded his audience of the easily overlooked fact that if the job is not done correctly, it does not matter when it gets done. A bad job done soon is usually just a quicker way of getting to redo it. Constantly asking technicians questions such as “how soon,” “how fast,” “how much,” or even “when?”, sends the subtle message that quantity or speed is more
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important than quality. There needs to be a shift to a mindset of commitment to the process because it is every member of a shop’s responsibility to provide quality repair services to their customer. Olson listed the components of a positive repair experience as follows: thorough damage assessment and customer communication, internal quality control stage checks and peer inspections, and pre-delivery inspection and estimate review. Expanding on the concept of thorough damage assessment and customer communication, it is important to begin with complete and accurate estimate, said Olson, or the repair process becomes hurried and frantic at the end of the process. Without such an estimate, the probability of a comeback increases significantly. Olson even specied that estimators should circle the car several times from various distances to fully assess all damage on the car before writing down a proper and complete first estimate. It is also very important to keep in communication with the customer so that shops can managed and exceed the customers expectations. As such, esti-
mators should walk the floor a couple times each day so that they know what is going on with the customer’s car in case the customer calls to enquire. Olson repeatedly stressed that quality control cannot be an afterthought. Everyone is responsible for the vehicle throughout the entire repair process. Peer inspections help reduce comebacks, and everyone should be willing to point out something not done correctly. Olson reviewed VeriFacts’ Quality Measurement Program criteria for a set up and measurement, the vehicle must be secured in a level position and at least eight points (four in the midsection, two in the front and two in the rear) be measured. VeriFacts also suggests using a stage-check verification in which the technician and a peer inspector signs off at each step of the repair. Concerning “pre-delivery protocol,” which Olson defines as a dress rehearsal for delivery to the customer, it is important to perform a final postrepair inspection, review the estimate, and then do a final test drive before preparing the vehicle to be returned to its owner. Olson went on in a second
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presentation to amplify his and VeriFacts’ ideas, delving into the area of “unknown unknowns.”
change so frequently that even quality shops may be unaware of their errors. For example, most weld-through primers state on their label not to weld through, and they must be dabbed on although they come in a spray can. Luckily, they work well when used correctly. If the weld-through primers are used to weld through, they tend to cause air bubbles, while dabbing the primer onto the vehicle, instead of spraying it, preserves the original e-coat. When it comes to corrosion protection, technicians must seam seal all welded joints, even those not sealed by the manufacturer. They should also use epoxy under the seam sealers, and it is important to use corrosion protection on all repair areas. Not properly applying corrosion protection builds failure into the repair as rusting will begin as soon as water touches it. It is necessary for welders to practice and destroy their welds and reinspect the quality of their welding. A quality control process is recommended to prevent such errors. An area where many shops have problems is documentation. All operations must be documented, whether they are paid for or not. Shops must add non-charged items to the bill because, legally, it was not done if it is not documented. Post repair market value insurance claims can be avoided by maintaining proper documentation, communicating with the customer and making proper repairs. Anything that is paid for but not completed, improper documentation of procedures, and deviation from industry repair standards are all considered fraud; due to this, it is very important to properly document files, properly repair vehicles, correctly inform customers of repairs, listen to the customer and continually pursue education to stay up to date on procedural changes.
Protecting Your Shop Assets and your People from Risk At the Northeast 2011 Trade Show on Saturday, March 19, Joseph Chiaravallo of Utica National Insurance presented a seminar entitled Risk Management for Collision and Mechanical Shops. Defining risk management as managing and protecting assets from all types of risk, Chiaravallo informed his audience that the highest claim frequency and the greatest percentage of insurance losses occur in the automotive property-casualty line. The most frequent causes of loss are theft, vandalism, burglary, wind damage and lightning and power surges. Chiarvallo explained it is possible to minimize property loss from burglary and theft by installing a security system and good exterior lighting, as well as making sure never to leave cash on site. Minimizing vandalism entails similar procedures, such as installing security cameras and better exterior lighting and keeping the customers’ vehicles secured and Joseph Chiaravallo locked within the facility. To minimize loss caused by wind, shops can remove clutter which could become wind-driven projectiles and install proper door supports. Lightning strikes can cause loss due to severe discharges or even just loss of power. Shops should install a lightning protection system and establish emergency procedures for storm or power outages. The fifth most frequent cause of insurance loss accidents in the shop are due to damage to the customer’s car after being struck by equipment. This is often due to a technician’s lack of experience in moving cus-
tomer vehicles. Luckily, this is easily remedied by providing the technicians with warnings and the necessary training. Although the greatest frequency of insurance claims occur in the automotive industry, the highest average cost per claim occurs within the worker’s compensation line of business. The areas of worker’s compensation that produce loss most frequently are as follows: lifting, pulling and pushing, debris particles in eyes, misuse of hand tools, slips, trips and falls, and all manner of machinery mishaps. To minimize injuries due to materials handling, shops must emphasize training and safety. It should be standard practice to talk with all staff about the common causes of injuries, observe the staff while they perform daily tasks, establish work rules, identify hazardous conditions, and develop a checklist of conditions that need ongoing attention. Decreasing the risk of eye injuries can be achieved by insisting on protective equipment usage, talking to staff about the common causes of injuries, observing staff as they work to monitor safety compliance, and identifying hazardous conditions in advance. Shops can reduce slips, trips and falls by clearing walking surfaces and identifying hazardous conditions, and the dangers of hand tool injuries can be diminished by explaining the threat to employees, establishing rules, and when injuries do occur, finding the cause and effect and, of course, making the necessary changes. The most common liability claims are for property in the car, custody and control, failure of work performed, injuries to the customers on the premises, falls, and customers and workers having contact with or being struck by objects.
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recyclers are required to use the ARA part grading and damage codes. Every part from these recyclers includes a Gold Seal tag that includes a toll-free number a shop can use if a part arrives not as it was described. “Last year alone, we kicked three Gold Seal recyclers off the Gold Seal program because they didn’t meet the criteria,” a recycler who serves on the program’s oversight committee said at the roundtable meeting. “There was complaints against them from shops, and we removed them.”
Many of the shops at the meeting acknowledged they needed to go back and ask the recyclers they work with if they have the Gold Seal designation. Participants at the meeting also agreed that more needs to be done to identify in the parts locating services which parts are from Gold Seal recyclers. The industry also needs to work, they agreed, to help insurers understand that just as “certified non-OEM parts” are better than non-certified, that there are cycle time and other benefits to be gained from using parts
from Gold Seal recyclers. Janet Chaney of Cave Creek Business Developer said the goal of the Recyclers Roundtable is to continue such discussion between repairers and recyclers and to bring in other segments of the industry as needed. Chaney, who serves as the administrator of the roundtable, said the next meeting is being planned for April 16 in conjunction with the United Recyclers Group (URG) event being held in Denver. For more information, email Chaney at janet_chaney@earthlink.net
What You Don’t Know You Don’t Know At the risk of reminding readers about former Defense Secretary Donald Rumsfeld’s infamous speech about “known knowns, unknown knowns, and known unknowns, not to mention unknown unknowns...” oh, fuggedabowdit.... Most people have run into a situation where they realized that they do not know something important about their industry, but the situation is even more unfortunate when one realizes they were unaware they were lacking this information (this would be the dreaded Rumsfeldian “unknown unknown.”) Mark Olson, COO of Verifacts Automotive, also taught a seminar entitled “Repair Quality: What You Don’t Know You Didn’t Know.” Olson reminded attendees that customers want their vehicles repaired correctly because their cars are important to them. Explaining that while some shop owners provide service based on what they are paid to do by the insurance company or customer, other shop owners always do what is right for their customers. Stressing the importance of quality collision repair and proper documentation, Olson began his overview of common repair problems and how they are easily solved. He clarified his statement that it both “is” and “is not” about the money by noting out that a business cannot prosper if customers are continually dissatisfied. For most auto body shop owners, according to Olson, these deficiencies result from being unaware of what they do not know. Auto body workers must know everything about a car at the beginning of their work, and they must adhere to the current regulations which
Recyclers, Repairers
Gold Seal is earned by recyclers who meet the ARA’s Certified Automotive Recycler requirements and also conduct ongoing customer satisfaction surveying. A description of the program requirements, and a list of Gold Seal recyclers nationwide, is available at the ARA website (www.a-r-a.org). Among the benefits to a shop of using a Gold Seal recycler is that those
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