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Louisiana Shop Owner Uses Twitter to Survey Other Shops in Real Time, Insurers Not Happy by Ed Attanasio
A Louisiana body shop owner saw his daughter using Twitter to survey her friends on an important social matter, and a light bulb went off in his head. He was fuming about repeatedly having to wrestle with insurance companies over what they will and won’t pay for. But, rather than getting mad, he’s now using the social media site to query other shops about what is and isn’t being paid for elsewhere. Abel Cantrelle, 49, is the owner of Advantage Collision Center in Houma, See Twitter Evens the Odds, Page 4
Abel Cantrelle saw his 14-year-old daughter Ashley tweeting one day and came up with the idea of using Twitter to survey other shops on repair compensation in real time
North Texas Student Says Two Mobile Dent Repair Businesses Took Him for a Ride
See North Texas Student, Page 12
P.O. BOX 1516, CARLSBAD, CA 92018
When cameras from the NBC 5 Investigates Consumer Unit started rolling, two so-called repairmen went running, according to Deanna Dewberry, of the NBC 5 Investigates Consumer Unit. A North Texas student told the news team that after his bad experiences with two different mobile dent repair businesses he wanted to warn others to steer clear of drive-up, fix-it auto repairmen whose promises and prices seem too good to be true. Joshua Bissonette is a cashstrapped college student trying to fin-
ish up school after serving in the U.S. Army. With his car in need of repair, Bissonette turned to Craigslist and found an ad for “mobile auto body” repair men who fix dents and damage at a person’s “work or home” for “less than a traditional” body shop. He decided to give them a try. “They got to work right away,” said Bissonette. “They started prying the dent out. It seemed like they knew what they were doing.” But he soon learned otherwise. “The dents look gone, but it doesn’t look good,” he said. Bissonette said they didn’t finish the job either.
Change Service Requested
Driver claims mobile dent repair businesses did $3,700 in damage
VOL. 32 ISSUE 4 APRIL 2014
LaCIA Meets to Talk Progress and Future Plans by Chasidy Sisk
The newly-formed Louisiana Collision Industry Association (LaCIA) has been busy setting up their organization and is working toward their goals. They held a meeting on January 21 to discuss their progress thus far as well as their future plans. Over 180 people attended this meeting, which Derek Stubbs, Vice Chairman of LaCIA, attributes to the fact that “we are all here because we care about this business, and we care about what happens to it.” Chairman Lynn Lejeune called the meeting to order, welcomed attendees and led a prayer before the association’s general counsel Lance Kinchen, of Breazeale, Sachse and Wilson LLP, read the anti-trust statement. Next, Executive Director Alysia
Hanks touched base on a few things like the upcoming Southern Automotive Repair Conference in Biloxi and
LaCIA Chairman Lynn Lejeune speaks to the group
told the group what she hopes to accomplish with the association. Each member of the association’s Board of Directors then provided some background on their experiences See LaCIA Meeting, Page 8
Maryland Parts Bill Gets Unfavorable Vote in Cmte In a vote in the MD House Economic Matters committee on March 14, Maryland House Bill 574 (HB574), sponsored by Delegate John A. Olszewski, Jr., received an unfavorable report out of the committee. Introduced in January, HB574 and its companion, Senate Bill 487, sponsored by Senator John C. Astle, sought to prohibit insurance company personnel from specifying a specific vendor for parts or materials or part procurement process, and would have required OEM crash parts for a period of three years after the date of manufacture of a vehicle. In a 16 to 7 vote on March 14, the MD House Economic Matters committee voted for an unfavorable report on HB574. In Maryland, committees report to the legislature on the bills that are assigned to them as favorable, with or without amendment, unfavorable, or without recommendation. Having been voted out of committee, the bill now returns to the floor of its chamber of origin accompanied by a
report of committee action for consideration. No action has yet been taken on SB487. The bills provided common ground for insurers and non-OEM parts suppliers to join in opposition. Several insurance and aftermarket parts groups testified in opposition to the bill. Repair facility operators that support the legislation believe it protects consumers and preserves a repair facilities ability to manage its operations. The Washington Metropolitan Auto Body Association, WMABA, supports the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. The Automotive Body Parts Association (ABPA) publicly denounced the legislation prohibiting insurers from requiring the use of alternative collision parts on vehicles less than five years old. “Senate Bill 487 will severely See Maryland Parts Bill, Page 26
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
REGIONAL
Allstate Wants 276 New Employees in
Houston in 2014 . . . . . . . . . . . . . . . . . . 6
AR Body Shops Profit from Winter Weather . 22
Auto Industry Champion, John Dingell (D), Car-O-Liner Offers New Ford 2015
F-150 Equipment . . . . . . . . . . . . . . . . . 34
CARSTAR to Address Industry Trends
March 26, 2014. . . . . . . . . . . . . . . . . . 10
CIF is Now the Charitable Conscience
Running For Office . . . . . . . . . . . . . . . . 22
Education Foundation Doubled Down
Allegations. . . . . . . . . . . . . . . . . . . . . . . 6
Freak Tire Accident Kills Gainesville
Elvis is Back in his Body Shop and
Harborside Collision Sued Over Fraud Houston Auto Body Association
Luncheon Held March 12. . . . . . . . . . . 10
at Colorado Events. . . . . . . . . . . . . . . . 27 of the Industry . . . . . . . . . . . . . . . . . . . 38
on Its Future in 2013 . . . . . . . . . . . . . . 44
Body Shop Employee, Injures Shop
Owner, Driver Also Shop Worker . . . . . 43
LaCIA Meets to Talk Progress and
I-CAR Has Implemented a New Initiative
Louisiana Shop Owner Uses Twitter to
Is My Gas Can Safe? . . . . . . . . . . . . . . . . 34
Survey Other Shops in Real Time,
Insurers Not Happy . . . . . . . . . . . . . . . . 1
Lower Valley Body Shop Fire Due
to Paint Booth Failure . . . . . . . . . . . . . . 10
North Texas Student Says Two Mobile Dent
Repair Businesses Took Him for a Ride . 1
Northwest Louisiana Meetings Canceled,
Rescheduled . . . . . . . . . . . . . . . . . . . . 10
Texas State Technical College- Harlingen Honored At Ceremony For Winning
Audaexplore/Solera Makeover Grant. . . . 7
Winter Storms Boost Business at
Abilene Shops . . . . . . . . . . . . . . . . . . . 10
COLUMNISTS
Franklin - A Missing Hat In Most Shops . . 36
to Close OEM Informational Gaps. . . . . 40
Labor Rate Update from HABA . . . . . . . . . 10 Maryland Parts Bill Gets Unfavorable
Vote in Cmte . . . . . . . . . . . . . . . . . . . . . 1
Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and
Parts Procurement. . . . . . . . . . . . . . . . . 7
Minnesota Bill Proposes More
on Insurer Vendor Requirements . . . . . 46
NACE/CARS and Industry Week 2014
Update: Show Expected to Double in Size. 43
NC Shop Wins Nationwide Short-Pay
Arbitration Case . . . . . . . . . . . . . . . . . . 20
NY-based MSO Collision Experts Drops State Farm’s Select Service Due to
Parts Procurement Requirement. . . . . . 13
Sisk - ASA-AZ Meets to Discuss Survival
Paice Sues Ford for Patent Infringement
Sisk - MSCRA Conducts Outreach to
PPG Announces Distributor Training
Sisk - Six SE Associations Prepare for
Record $9.4M Donated to Collision
Yoswick - 20 Years Ago In The Collision
Service King Acquires 21st Century
Yoswick - Helpful Documents, Tools,
Service King Announces 2013 Morgan
Skills for Service Advisors . . . . . . . . . . 30
Industry. . . . . . . . . . . . . . . . . . . . . . . . 16
Southern Automotive Repair Conf. . . . . 18
Repair Industry (April 1994). . . . . . . . . 42
Information Only a Click Away For Shops . 32
NATIONAL
‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing
$40K in Damage . . . . . . . . . . . . . . . . . 45
3D-Printed Concept Car at Geneva
Auto Show. . . . . . . . . . . . . . . . . . . . . . 13
AAAS Busy Strengthening Industry
in 2014. . . . . . . . . . . . . . . . . . . . . . . . 23
ABRA Acquires 13 Repair Centers in
Charlotte, NC . . . . . . . . . . . . . . . . . . . . 35
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Comprehensive Restrictions
on Hybrids. . . . . . . . . . . . . . . . . . . . . . 10
Schedule . . . . . . . . . . . . . . . . . . . . . . . 34
School Programs . . . . . . . . . . . . . . . . . 20
Collision in OKC. . . . . . . . . . . . . . . . . . . 6
Award Winner . . . . . . . . . . . . . . . . . . . . 6
Shop Owner in Helena Arkansas Creates
Shelwes Automatic Contour Sander . . . 22
Testimony on Maryland Parts Bill Involved Representatives from WMABA, PCI,
LKQ, CAPA and Shops, Some Repairers
‘Cannot Afford to Refuse’ PartsTrader . . 24
Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many
Applicants So Far. . . . . . . . . . . . . . . . . 14
Zurich Insurance Cuts Jobs to Boost
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Indexof Advertisers
Future Plans. . . . . . . . . . . . . . . . . . . . . . 1
on Facebook
to Retire. . . . . . . . . . . . . . . . . . . . . . . . 45
Auto Craft Expanding E. Wichita, KS, Store . 10 CARSTAR Hosting Event in Dallas, TX,
Vote For Your Favorite Redneck Repair
Profitabiltiy . . . . . . . . . . . . . . . . . . . . . 36
Southwest
Contents
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.
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Absolute Mitsubishi-Hyundai . . . . . 12 Accudraft Paint Booths . . . . . . . . . . . 4 BMW Wholesale Parts Dealers . . . . 35 CCC Information Services . . . . . . . 15 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 25 Chevyland . . . . . . . . . . . . . . . . . . . . . 8 Classic BMW . . . . . . . . . . . . . . . . . . 23 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Creative Metal Manufacturing. . . . . . 6 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . 19 Don Carlton Auto Group . . . . . . . . . . 6 Equalizer Industries, Inc . . . . . . . . . 14 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 37 Fowler Honda . . . . . . . . . . . . . . . . . 22 Freedom Chrysler-Jeep-Dodge . . . 11 Gillman Acura . . . . . . . . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 43 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Houston Auto Body Association. . . 18 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . 17 Huffines Hyundai Plano . . . . . . . . . 20
Hyundai Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36 Kia Motors Wholesale Parts Dealers. 41 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Matrix System Automotive Finishes . 26 Mazda Wholesale Parts Dealers . . . 42 Mike Calvert Toyota. . . . . . . . . . . . . 16 Mitsubishi Wholesale Parts Dealers . 39 MOPAR Wholesale Parts Dealers . . 33 North Freeway Hyundai . . . . . . . . . 34 Ray Huffines Chevrolet . . . . . . . . . . 27 Reliable Automotive Equipment, Inc. 13 Reliable Chevrolet. . . . . . . . . . . . . . 32 Replica Plastics. . . . . . . . . . . . . . . . 30 Scoggin-Dickey Buick . . . . . . . . . . 31 South Pointe Chrysler-Jeep-Dodge. 21 Subaru Wholesale Parts Dealers . . 44 Toyota of Fort Worth . . . . . . . . . . . . 24 Toyota of Laredo . . . . . . . . . . . . . . . . 7 Toyota Wholesale Parts Dealers . . . 38 Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 40 Volvo Wholesale Parts Dealers . . . . 45 Young Chevrolet . . . . . . . . . . . . . . . 16
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 3
Continued from Cover
Twitter Evens the Odds
LA. He recently purchased a 40-inch smart television and hung it on the wall it in his reception area in his shop where both customers and insurance adjusters can see it. But, they’re not watching The View or Dr. Phil. What they’re seeing is a real-time feed of Cantrelle’s Twitter account, so that when insurers deny anything for any reason, he can tweet the details to shop owners and companies like CCC and Mitchell to get their immediate feedback. The story begins late last year, when Cantrelle got wind of a new trade association that was in its infancy, he explained. “Back in December, my paint rep walked into our shop and asked me if I was going to be attending a meeting of the new Louisiana Collision Industry Association (LaCIA) and I told him I hadn’t heard about it. So, on December 5, I walked into their meeting in Baton Rouge and I was surprised to see over 200 people there. In my experience, people in this industry tend to work against each other, but when I walked into that room and listened to what everyone said, a light bulb went on in my head. Hey, a lot of us are in the same boat, I thought!” After the LaCIA’s January meeting, there was a question and answer session and that’s when Cantrelle shared his brilliant idea with the membership in attendance. “After seeing my 14-yearold daughter (Ashley) on her cell phone texting her friends, I realized that we can use this social media to help the organization and each other,” he said. “All these kids now are on Facebook, Instagram and Twitter every day communicating with [their peer group], so why can’t body shops do the same thing?” Cantrelle is not a techie and surely not a social media expert, but he knows that communication and networking can be powerful if used properly, he said. “It’s all about communicating with the tools we’ve got. I remember way back when they started telling us about personal computers and programs like CCC and Mitchell. Lots of us didn’t know anything about computers and now they’re in front of us every day. We can go to Twitter and communicate back and forth and get answers right away—at our fingertips.” Cantrelle is using Twitter to call out insurance adjusters that want to deny when it comes to repair processes they don’t want to reimburse. “If an insurance company comes in here now
and says we don’t pay for this or that, all I have to do is say let’s stop right here and ask these shops in America about whether they ask for this supplement or not,” Cantrelle said. “It freaks them out, to be honest. Mitchell and CCC are also on Twitter, so they can answer the question too, if they want to. I want them on there, because that way they’re accountable as well. The repair procedures are right there listed on CCC and Mitchell, so if it’s there, it should be paid for.” Cantrelle used to have several DRPs, but no more, he explained. “I’m done with it and now they’re steering us away to other shops,” he said. “I don’t think they’re happy with the Twitter thing and I’m certain that they do not love the idea of it all being displayed on a TV in my front office. It’s also gaining momentum, because we now have more than 100 followers on Twitter and body shops are joining every day. There are now folks from the United Kingdom and all over the country that have joined us and I’m astonished by all the people that are going through the same thing and really care.” Alysia Hanks is the executive director at LaCIA and an administrator at Lakeway Collision Center in Mandeville, LA. She strongly believes that Cantrelle’s use of Twitter is an ingenious and perfectly timed idea, for many reasons. “I’m all for using social media, because it’s a great way to keep connected to our members, other body shops throughout the country and other state associations,” she said. “We always want to be networking, so that we know what’s out there and be ready for the next thing. We talked to other state associations and one of the main problems they encountered was a lack of communication, so things like Facebook and Twitter can keep us in the loop.” Hanks appreciates the transparency and accountability of the way Cantrelle is using Twitter. “We’re taking to it the insurance companies, because it’s been too long,” she said. “We’re not doing this to start a fight and we’re not intending to start a lawsuit. We just want the body shops in this state to know that we’re here, to work together and make a better business environment for all of us.” A man on a mission, Cantrelle wants body shops at a national level to get involved in what he calls, “this Twitter thing.” “If we could get, say, 800 to 1,000 shops on this thing,” Cantrelle said,
4 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
“Well, now, we would have something really special. Since I don’t have any DRPs, I’m not afraid of telling the truth. One of my first tweets was ‘Enough is enough—I’m tired of working for free,’ and everybody loved it.”
The whole shop is on Twitter
“Last week, we did a car and they paid me for the seam sealer and every single process I had to do. I tell any insurer if there is a process I’m not doing on a vehicle, I will pay you back. I will prove everything I’m doing. We’re taking pictures of every single thing now.” “One big insurer told me some of these shops in the backyard will charge for this and this, and I say do your job and go catch them and find them not doing those things and make them pay you back. I recently wrote a car for $5,040 and State Farm wrote
an estimate for $2,800, threw it on my desk and ran. I made them come back out, rewrite it and go over it with me and they ended up writing the same estimate as me.” By telling the collision world about his new communication tool and process, Cantrelle hopes other shops will join Twitter and realize it’s a great way to know what other shops in other parts of the country are dealing with. “If everyone [joined Twitter], the screen would be popping and jumping,” Cantrelle says. But when you’re in Mississippi and I can tweet, ‘I have a Progressive guy [for example] here and he’s telling me shops aren’t charging for this or that,’ and then ask, ‘Are you charging for this?’ and they say, ‘Yes,’ I can look at the Progressive guy and say, ‘Well, there’s your answer.’ “United we stand, divided we fall. If people don’t start joining hands, it’s going to get bad,” said Cantrelle. To join Cantrelle’s Twitter feed go to #advantageccinc. “Hop onboard and ask me a question,” he said. “If I can’t answer it, somebody will be able to and that’s the beauty of it!”
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 5
Allstate Wants 276 New Employees in Houston in 2014
Allstate Insurance Co. (NYSE: ALL) said it wants to add 276 new employees in the Houston market in 2014, including 36 agency owners and 240 licensed sales staff. The goal is part of a wider effort in which the Northbrook, Ill.based financial services company wants to hire 120 new agency owners and 800 sales people across Texas this year, the company said in a press release. The program is being spurred by Texas’s population boom. “Many Texas cities are making headlines for their impressive economic and population expansion,” Lisa Banks, Allstate’s Texas strategic development leader, said in a press release. Allstate made a similar push last year when it said it wanted to fill up to 96 positions, including 32 agency owners, in the Houston market. And Allstate isn’t the only insurer expanding in the Houston market. Just this week, privately held Northwestern Mutual said it wants to add 50 financial advisers and 80 financial interns in the Houston market in 2014. That’s up slightly from the 40 advisers the Milwaukee-based company planned to hire in 2013.
Harborside Collision Sued Over Fraud Allegations
GEICO is suing a Galveston body shop, alleging fraud and conversion. GEICO as subrogee of Donna Lowth, filed a lawsuit Feb. 21 in the Galveston County Court against Tennison Collision Auto Body Shop, doing business as Harborside Collision, citing consumer fraud and conversion. The complaint alleges that on Jan. 11, the defendant intentionally defrauded Lowth and GEICO by falsely advising Lowth that all costs associated with the towing, hauling and/or repair would be covered by GEICO. Lowth alleges the defendant added additional, unnecessary and fraudulent charges to Lowth’s bill, according to the complaint. GEICO is seeking immediate release of the vehicle, punitive damages, treble damages, fees and costs. The plaintiff is being represented in the case by attorneys David S. Knight and John D. Murphy of David Knight & Associates.
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Service King Acquires 21st Century Collision in OKC
Service King Collision Repair Centers announced it has acquired 21st Century Collision Repair Specialist in Oklahoma City, effective immediately. “Service King is excited about extending our services within the Oklahoma City market thanks to this new partnership, “ said Stephen Hayes, Director of Operations in Oklahoma City. “Both companies share similar values of providing exceptional quality and service and a commitment to improving the overall customer experience during a crisis.” 21st Century Collision Repair Specialist has been owned and managed by Lee Haney since 1995; the facility is capable of serving 250 cars a month. With this addition, Service King now has four locations in the Oklahoma City market. “We are very happy to expand our presence further across Oklahoma. This acquisition provides our customers and insurance partners with another convenient location in this market,” said Jeff McFadden, President of Service King. “We welcome the 21st Century Collision team and are excited that they will be joining the growing Service King family.” Service King operates moreon Give usnow your opinion than 100 locations nationwide.
Service King Announces 2013 Morgan Award Winner
Service King Collision Repair Centers has announced that its Mesquite, Texas, location is the recipient of the 2013 Morgan Award. Service King hands out the award annually to the shop that receives the highest marks across four categories: quality, referrals, on-time delivery and gross profit sales. This is the first Morgan Award win for the Mesquite location and manager Todd Novara, an eight-year Service King veteran. “Todd Novara and his team at the Service King Mesquite location have produced extremely consistent results with industry-leading customer service,” said Brent McKinney, executive vice president of operations. “The competition for the coveted Morgan Award within our organization is extremely close, however the team at Mesquite took the award by winning five consecutive Top Shop quarterly awards.” The founder of Service King, Eddie Lennox, established the Morgan Award in 2002. Lennox named the award in honor of his former neighbor, Charles Morgan, who loaned him $10,000 in 1976 to finance opening the first Service King location in Dallas. Lennox credits Morgan for helpmatters affecting the industry. ing get Service King off the ground.
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Texas State Technical College- Harlingen Honored At Ceremony For Winning Audaexplore/Solera Makeover Grant On December 3rd, members of the school, industry and press gathered at Texas State Technical College-Harlingen to celebrate their Collision Repair Education Foundation Ultimate Collision Education Makeover school grant, sponsored by Tony Aquila, President and CEO of Solera, the parent company for AudaExplore. Through the Makeover grant, the school program received $50,000 in tools, equipment, supplies, to improve the collision repair facility and the technical education of current and future collision students. At the celebration, speakers included those from the school administration, collision instructors, Education Foundation staff, collision students, and AudaExplore representatives. The attendees also had the opportunity to tour the new program and see the products that were received as a result of this grant. “Through Tony and Solera’s sponsored Makeover grant, we were able to transform TSTC’s collision program and provide the instructor with needed items,” noted Collision Repair Education Foundation Executive Director Clark Plucinski. “As many schools have limited budgets,
these types of grants assist in the collision students graduating with the skill sets needed to be productive and efficient entry-level staff. We thank AudaExplore for their continued support and helping us transform collision school programs around the country.” “This grant was made possible thanks to Tony Aquila, Solera’s founder and CEO,” said Rick Tuuri, VP of Industry Relations for AudaExplore. “Tony started out in this industry sweeping floors in a shop and is now the founder, President and CEO of Solera, a multi-billion dollar, global organization. He is truly grateful for his success and the opportunities afforded him by the industry over the years. Giving back is in his DNA and this is one way that he has made a difference for so many.” Industry members that are looking to support high school and college collision school programs, instructors, and students should contact Brandon Eckenrode at the Collision Repair Education Foundation at Brandon.Eckenrode@ed-foundation.org or at 847.463.5244.
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Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and Parts Procurement
Michigan House Bill 5339, intro- cility, claim center, or other similar faduced on February 19, seeks to amend cility after informing the insured or the Michigan Insurance Code of 1956 claimant that the insured or claimant is to restrict insurance companies from not under an obligation to do so. numerous actions that irk collision re- ● Must not fail to inform the insured pair facility operators. The broadly or claimant that the insured or claimant worded bill has not yet been sched- has the freedom to use a repair facility of the insured’s or claimant’s choosing, uled for hearings. or fail to inform the insured or claimant The bill, as sponsored by Repreof the insurer’s ownership interest in, sentatives Dale W. Zorn ,Greg MacMaster, Anthony G. Forlini, Peter or agreement with, a repair facility, Pettalia, Michael D. McCready, would claim center, or other similar facility Communicate the need to delay ban insurance companies from comthe commencement of repair to allow pelling the use of specific collision repair or claim centers, restrict non-OEM the insurer to inspect the automobile parts usage, and prohibit an insurer for more than 1 full business day from from specifying specific vendors for when the insured or claimant presented the claim or automobile for loss adparts or other materials. Specifically the bill would prohibit justment or inspection. Dispute coverage of the loss insurance personnel from the following: ● Compel or coerce the insured or without performing a physical inspecclaimant to choose a particular repair tion of the automobile. Specify a non-original equipment facility, claim center, or other similar manufacturer aftermarket crash part to facility regardless of whether the rereplace a structural component of an pair facility, claim center, or other similar facility is under the insurer’s direct automobile, including, but not limited Give us your opinion on matters affecting the industry. to, a bumper reinforcement, radiator or control. This subdivision would not prohibit core support, or any other part that afan insurer from requesting the insured or fects the structural integrity or airbag claimant to take the a particular repair faSee Michigan’s HB 5339, Next Page
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LaCIA Meeting
and spoke about their plans for LaCIA. Lejeune stressed that it is about “coming together and agreeing to make a difference.” Stubbs emphasized the importance of focusing on the present and the future instead of the past. “Last year is over, and we still have battles to fight everyday this year, but we need to face these problems together to make a difference. We have national issues that we have to handle first on a state level.” Chris Medine from Medine’s Collision said he believes LaCIA has potential to be and do many good things through having so many industry professionals working together. His son is the third generation of his family to enter this industry, and Medine wants to effect change so that his son can have the same long and successful career. Randy Mclachan of Performance Finish & Collision feels that LaCIA is taking the correct professional approach to their development, and he believes the association can be useful in providing training and eduContinued from Page 7
Michigan’s HB 5339
timing of the automobile. Specify a non-original equipment manufacturer aftermarket crash part in the repair of the damaged automobile if the part is not certified by a national testing board to guarantee quality, fit, and crashability. Specify the use of a particular vendor to procure a part or other material necessary for the satisfactory repair of the automobile. This subdivision does not require an insurer to pay more than a reasonable market price for parts. Unilaterally or arbitrarily disregard a repair operation or cost identified by an estimating system that the insurer and repair facility have agreed to use in determining the cost of repair. Place a limit on the maximum cost of paint or other materials required to repair the damaged automobile. This subdivision does not require an insurer to pay more than a reasonable market price for paint and materials. Disregard a repair facility’s posted labor rate without proof of the range of posted door rates available to the public in the market.
cation to its member. He said he hopes that they will be “an association of education.” He is confident that by
Lance Kinchen, General Counsel for LaCIA, addresses the meeting
working together LaCIA members can make meaningful change that will benefit LA’s collision repair industry. Reid Heiser of Mitchell International spoke about three things that associations such as LaCIA can do, such as providing a sense of community, offering training and changing perspectives. In regards to these benefits, Hanks said, “it’s a great thing to walk into a room of neighbors and not a room of competitors. Mitchell has a lot of training they can send in to help our group. They benefit when our industry benefits. The industry is rapidly changing, and if you don’t keep up
The bill also would provide an insured, claimant, repair facility owner, potential repair facility owner, or person aggrieved by this act the ability to bring a civil action against an insurer for a violation of this section. A plaintiff who prevails could receive Damages in the amount of 3 times the actual loss or $500.00, whichever is greater as well as attorney fees and costs. Ray Fisher, executive director of the Automotive Service Association (ASA) of Michigan, explained “ASA Michigan did not author or introduce this bill but we are glad that Representative Zorn along with the other co-authors, has taken a key role in trying to resolve some of the issues that have plagued our collision shops here in Michigan. I have passed this on to our leadership for their review and we are looking forward to working with Representative Zorn as this moves forward. Obviously he is trying to cure many of the burdens that our collision repairers have faced for quite some time.” “In conversation, we understand that currently no hearings have been scheduled as yet but ASA Michigan will encourage these issues to be discussed in the committee as soon as possible,” concluded Fisher.
8 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
with it, you will not succeed. We need to embrace those changes and plan for what is coming down the line. [In regards to perspective], unless you get out and see what others are doing, nothing will ever change—‘you can’t work on your business if you’re working in your business.’” The day after the meeting, Hanks emailed notes to participants, along with some additional information about the association’s progress. Their website is now finally operational, though it is still being improved, and can be found at www.la-cia.com. In response to questions at the meeting about social networking, Hanks provided the address of the association’s Facebook page, agreeing that social networking is “an avenue we will explore.” Since the meeting, Hanks has established a Twitter account @LouisianaCIA and a Facebook page (www.facebook.com/ SeLaCRA). Hanks has drafted a formal request to the LA’s commissioner’s office, requesting that they look into the legality of PartsTrader in their state, similar to what ASA has initiated, and she is currently awaiting comment from the association’s attorneys. Additionally, the email provided a link to the
website for the Southern Automotive Repair Conference and a link to Mike Watson’s article on partial refinish. Also attached were LaCIA’s general membership application and an application to a GM training course that was held on February 25th at the Holiday Inn in Baton Rouge. Many members for LaCIA attended the event where topics included aluminum in new vehicles and price matching as it pertains to CollisionLink and GM’s Bump the Competition Program which allows price matching on select parts when an insurer estimate calls for aftermarket parts to be used. GM’s course also discussed 2013/2014 cores on fascias and headlights, how to recognize counterfeit airbags and warranty information. More information on technology and their service bulletins can be found at www.genuinegmparts.com. LaCIA supports and will be attending the Southern Automotive Repair Conference in Biloxi, MS, on April 11–12, 2014 where they have reserved a booth. LaCIA’s next meeting is scheduled for Tuesday, May 20th in Monroe, LA. As LaCIA continues to develop and becomes increasingly involved with industry issues, stay tuned for updates.
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 9
CARSTAR Hosting Event in Dallas, TX, March 26, 2014
CARSTAR Auto Body Repair Experts is hosting an educational event for shop owners and operators that will cover critical business issues and trends impacting collision repair facilities at the Sheraton DFW Airport Hotel in Dallas, TX, on March 26, 2014. The event will have morning and evening sessions and cover the following topics: • Mobile Estimating Technology by Mitchell • Car Rental Technology by Hertz • Repair Planning by BASF • The Impact of Technology for Future Vehicles by 3M • Collision Industry Overview by English Color • OSHA/EPA Compliance Training for Collision Repair by AAMS • Insurance Industry Trends by CARSTAR To register, contact Mike Davids at mdavids@carstar.com or 1-913-948-5010.
Northwest Louisiana Meetings Canceled, Rescheduled
The Northwest Louisiana Collision Repair Association (NWLCRA) meeting on Tuesday, March 4, 2014, was canceled. On that date, John Eaves and several shop owners from Mississippi were in Tyler, TX, and Monroe, LA, discussing pending and future litigation within the collision repair industry on a state and national level. In addition, the NWLCRA meeting for Tuesday, April 1, 2014, has been canceled because of conflicting dates with the SkillsUSA competition in New Orleans, LA. The next regularly-scheduled meetings will start at 6:30 p.m. on Tuesday, May 6, 2014, and Tuesday, June 3, 2014, at the Country Tavern Barbecue in Shreveport, LA.
Labor Rate Update from HABA
Many Houston Auto Body Association (HABA) members reported that major insurers are paying higher repair rates since the release of the independent labor rate survey conducted in Houston, TX, and surrounding areas to serve as a checks and balances to what insurers say is the prevailing rate. So far, there are fifteen insurers that will pay the actual prevailing rate and others say they are pushing for a change. Lean more at www.habaonline.org/1/category/labor%20rate%2 0survey/1.html.
Auto Craft Expanding East Wichita, KS, Store
Auto Craft Collision Repair broke ground on February 25, 2014, on the 5,625-square-foot expansion to its location at 8532 East 32nd Street North, Wichita, KS, to accommodate increased business. The project, valued at about US$750,000, including the building and equipment, will make the store about 22,500 square feet when it’s completed around June 2014. Project components include adding a state-of-the-art paint booth, repair bays, parts room, customer parking, and customer-service suite. A uto Craft has about 115 employees companywide and will add five or six to the east side store this year with the expansion, including body technicians, detailers, and office staff.
Lower Valley Body Shop Fire Due to Paint Booth Failure
A mechanical failure inside a paint booth ventilation system was the cause of a fire in an El Paso auto body shop, officials said. The fired started at about 9:15 p.m. at Buddies Body Shop, 8253 Alameda Ave., El Paso Fire Department officials said. An employee was inside at the time of the fire, but safely evacuated the building and called 911, officials said. No injuries were reported. When firefighters arrived, they saw flames and smoke coming from the roof of the shop, officials said. Approximately 10 fire units and 30 firefighters responded to the fire. The fire was contained to the paint booth and exhaust system in the shop within 20 minutes, officials said. A fire investigator determined the cause of the fire was a mechanical failure inside the paint booth ventilation system. Damages are estimated at $30,000.
Houston Auto Body Association Luncheon Held March 12
The Houston Auto Body Association (HABA) held its first lunchtime meeting on Wednesday, March 12, 2014, from 11:30 a.m. to 1:00 p.m. at the Texas Land and Cattle at 11900 Dickinson Road, Houston, TX 77089. The cost of lunch was not included. As always, member and nonmember shops were welcome.
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Winter Storms Boost Business at Abilene Shops
Barrett Collision Center owner Rocky Champion said his shop is booking appointments one and a half to two weeks out right now. Champion said the number of people bringing their cars in almost doubled after the last ice storm. “When there’s ice storms it was brings an increase in business,” said Champion. “That’s always a good thing for us, unfortunate for a lot of people.” Last time freezing rain covered the streets in Abilene, Champion said
business started booming at his auto body shop. “Our phone was busy was constantly ringing. People were constantly walking in. Not many lulls those few days,” said Champion. People who brought their cars in had been involved in all different types of accidents. “This time since there was so much ice and so many people on the road with everything from little fender benders to rollovers,” Champion said.
Paice Sues Ford for Patent Infringement on Hybrids
Hybrid technology developer Paice filed a lawsuit against Ford, accusing the automaker of patent infringement. The Maryland-based company claims to have met with Ford more than 100 times between 1999 and 2004, providing modeling and component designs for hybrid versions of various Ford vehicles. Ford reportedly had entered into a licensing agreement in 2010 for a Paice patent, which has expired. The agreement included an arbitration clause; however Paice claims Ford declined to arbitrate and forced a formal lawsuit to resolve the infringe-
ment allegations. Previously Paice successfully sued Toyota in a case that dates back several years. The Japanese automaker was forced to pay US$4.3 million in damages, along with US$25 for every Prius, Highlander Hybrid, and Lexus RX400h sold. A damages estimate for Ford’s alleged infringement was not fully detailed in the initial court filing, though Paice appears to be pushing for an injunction to halt sales of infringing vehicles if a royalty agreement is not established.
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North Texas Student
“They said due to the cold weather they couldn’t apply paint,” Bissonette said. They left with the repairs incomplete and his wallet $250 lighter. “I just wanted them to go away, so I paid them their money,” he said. But with the work unfinished, Bissonette went back to Craigslist again where he found another ad for a different mobile auto body repair business. This ad had pictures and promises. So he called and set up a meeting in an Arlington parking lot. “They said it was going to look like new,” Bissonette said. He paid them $250 cash for the job. Bissonette said these guys covered their shoddy work with green goop saying it would protect the paint. When he got home and washed it off he was horrified. He saw a scratched sandpaper surface and spray paint spattered on his windshield, mirror, and tire. “It looks horrible,” he explained. Bissonette then called NBC 5 In-
vestigates Consumer Unit and they called the numbers from both ads to set up meetings. We showed up at the first location in our station Chevrolet Tahoe, which had a dent. Their cameras were in tow. We told a guy, who said his name was Tony, that some of his past customers were unhappy with his work. “No comment at this point. I have to get in touch with my lawyer,” he said. When Investigates pressed further he got in his car and sped away. Investigates then called the number in the second ad and set up a time and place to meet. When they identified themselves, the repairman immediately covered his face, never got out of his car and left faster than the first guy.
“The Worst I’ve Ever Seen” Brian Johnson, a certified collision repairman for Service King in Irving, evaluated Bissonette’s car. “It is the worst I’ve ever seen for someone to call that a finished product,” he said. “It looks like they used spray paint out of a can.” Johnson said he sees fly-by-night auto dent repairmen come out of the woodwork in the DFW area, espe-
cially after weather events like storms, hail and ice. “Just since the beginning of this year, I have seen three cars personally with the same situation,” said Johnson. Johnson said the looks of Bissonette’s car are the least of his worries. “There is probably no structural integrity left in that panel,” Johnson said. In his opinion, because of how the work was done, the panel might not perform as it should in a wreck, potentially putting Bissonette’s safety at risk. He recommended replacing that panel. In total, the repairs would now cost $3,700. Texas has no state agency that regulates collision repair, so it’s up consumers to do their homework. The News Team reported that consumers should ask repairers if they have certification from an organization like I-CAR, or ASE, the National Institute for Automotive Service Excellence. They should also ask about warranties. If a repairman doesn’t offer one, experts suggest finding someone else. “You want to make sure the company is standing behind their work,” said Steve Sikes, Service King’s as-
sociate vice president of business development. Experts also said any paint work needs to be done in a controlled environment, so if someone offers to paint outside, that’s likely a red flag too. In the end, Bissonette’s plight struck a chord with Richardson-based Service King. “It’s certainly unfortunate what you’ve had to deal with, with the subpar repairs,” Sikes said to Bissonette. In a gesture of goodwill, the company, a supporter of U.S. servicemen and servicewomen, said it would fix his car for free, leaving Bissonette astounded and smiling from ear to ear. The Enterprise Rent-A-Car location attached to this particular Service King location said it would also pick up the tab for his rental car while the repairs are done. Bisonette said he learned his lesson and he’ll be less trusting next time and that he hopes his story helps others avoid being taken by rogue mobile dent repair businesses. “I decided to call NBC 5 Investigates because I don’t want this to happen, you know, to anybody else,” he said.
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NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement Collision Experts, a New York-based MSO with two locations, said it will no longer be included in State Farm’s Select Service Program because the collision repair shop wants to have the right to decide where to purchase its parts. State Farm’s customers can still choose to have their vehicles repaired at Collision Experts’ shops in Schenectady or Clifton Park, but the national office may no longer refer customers to Collision Experts. Collision Experts CEO and owner Maryann Bowman said it was more important for Collision Experts to have the freedom to buy parts from trusted vendors that the company has built relationships with over the years rather than be included in State Farm’s Select Service Program, which requires collision repair shops to purchase parts from PartsTrader. Richard Bowman said “Many of my parts vendors signed up with PartsTrader so we couldn’t use them.” “Sometimes you have to part ways in a partnership,” said Maryann Bowman. “In this case, I believe that
the national changes don’t work for my business model. We do not want to sever the relationships we’ve built with our vendors over the years.” State Farm has been rolling out the changes incrementally and just recently implemented the mandate in New York. Collision Experts is the only local body shop to publicly opt out of the program as a result of the changes. “Although we value the business that State Farm has referred to us over the years, the new Select Service Program does not fit our business model,” said Bowman. “This is strictly a business decision based on changes to the Select Service Program that would require us to change parts vendors. We have great relationships with our parts vendors, and we feel that this helps us provide an exceptional product. If at any time State Farm decides to change or adjust their Select Service Program, we will be more than happy to revisit this in the future.” However, State Farm customers are still free to choose Collision Ex-
perts for their body repairs. “We still welcome all State Farm customers and look forward to continuing to work with local State Farm agents to provide the best repair for our mutual clients,” said Bowman. Collision Experts’ parting with State Farm is amicable, Bowman said. However, some body shops have filed lawsuits or traveled across the country to heighten awareness of State Farm’s changes. “We will continue to have a good working relationship with State Farm,” said Bowman. “It’s disappointing that they may refer customers to different shops despite our high rating because of a difference of opinion. We are willing to work together so we can give our customers the best service at a time when they need it most.”
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3D-Printed Concept Car at Geneva Auto Show
At the Geneva Auto Show, German automotive and aerospace engineering company, EDAG, unveiled the Genesis, a visionary concept for the future of automotive design. Built using 3D printing, the Genesis is a complete auto body that could be produced by high-resolution fuse deposition modeling (FDM) machines in a single print run. According to EDAG, “Unlike other technologies, FDM makes it possible for components of almost any size to be produced, as there are no pre-determined space requirements to pose any restrictions. Instead, the structures are generated by having robots apply thermoplastic materials... By introducing endless carbon fibers during the production process, it is also possible to achieve the required strength and stiffness values.” Although the EDAG vision for automotive design is likely a decade or more away from realization, its introduction at the manufacturer-centric Geneva Motor Show represents another milestone for additive manufacturing and a clear vision for the future of safer, more economical automotive production.
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Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many Applicants So Far by Ed Attanasio
because all of the shops in Utah are going to have to switch to waterborne anyway,” Gallegos said. “We looked at Superior Paint Supply’s waterbased paint system (De Beer’s Waterbase 90 by Valspar) because we heard very good things about it. So, we applied for the grant and then we were pretty shocked when the state contacted us and told us we were the first shop to apply.
As the collision industry in Utah undergoes the transition to waterborne paint and everything that comes along with it, many are embracing the new products, techniques and equipment while others are not as enthusiastic. The state deadline for waterborne is looming (July 1, 2014) and as was the case in other states with similar mandates, some shops are waiting until the last moment. But some valuable news involving grants might just speed up the conversion process for body shops that were previously lagging. Any body shop that wants the state grant money will have to match the grant dollar for dollar, so it’s more of a hand up than a handout, Waterborne Paint Trainer Jeff Brasier (right) from Supeaccording to the state’s Divi- rior Paint Supply demonstrates waterborne application techniques for Corey Kaggie, a painter at ACS Precision sion of Air Quality and the Finish in Salt Lake City Utah Clean Air Partnership (UCAIR), a statewide alliance that “I read an article about the grants was created to make it easier for indi- in the paper and told my son,” Canviduals, businesses and communities dido Gallegos said. “We figured let’s to add equipment or processes that get some financial help if it’s being ofwill improve the cleanliness and fered. From what we’re hearing, body breathability of Utah’s air. shops aren’t applying for these funds, The Utah’s Department of Workwhich I find surprising. The money is force Services has earmarked $300,000 right there on the table. They want to now to help small businesses to imgive us money! How often does that prove the state’s air quality and an adhappen?” ditional $1 million after June 30, 2014 The local media flocked to ACS through the state Department of WorkPrecision recently to cover the shop’s force Services. The goal of the program conversion to waterborne while letting is to help small businesses reduce small businesses know that the grant emissions through improved equipmoney is available for them, as long ment and the maximum amount is as they’re willing to improve their air $15,000 and must be matched dollar quality. “We were surprised when the for dollar. In addition to auto body local newspapers and news stations shops, dry cleaners, restaurants, print called us and wanted to interview us shops and other small businesses with about the grant money,” Gallegos fewer than 100 employees can apply. said. “It’s a big deal for Utah and a big The first collision repairer to take deal for this industry and an eye advantage of the grant money offered opener for everybody.” According to the Division of Air by the state was ACS Precision Finish in Salt Lake City, a shop owned by Quality, if every paint tech in the state Candido Gallegos and his son An- used waterborne instead of solvent, thony. Both father and son were a lit- daily emissions would drop by 572 tle reluctant to try something new after pounds per year. In fact, the industry having spent so much time mastering will be required to make this change the solvent-based paint techniques, by June 1, 2014 to comply with new but their paint jobber, Superior Paint air quality regulations. The big chalSupply, made the transition easier for lenge for small businesses is, of them, while the grant money also course, the cost to make the upgrades. made the decision a little more palatGwen Springmeyer is the Assisable, Anthony Gallegos said. tant Executive Director for UCAIR “We’re getting $15,000 to change which is administering the state grants. over, and for us it was a no-brainer, She wants body shop owners to know
14 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
that the grant application process is easier than they might imagine and that her organization is willing to help shops with the application process. “The grant application is easy for several reasons,” Springmeyer explained. “There is no competition for the grant, so if you qualify and there is still money in the budget, you’ll get it. Secondly, we don’t ask for your financials. The application is seven pages and we’re more than willing to help you with it. The money is there, so we want to encourage body shops and other small businesses to apply and get these dollar for dollar grants. And maybe most importantly, the deadline is June 30, 2014, but then we’re also going to make another $1 million available as part of the same program. So, essentially, the state is offering $1.3 million in air quality matching grants.” Jeff Brasier is a paint trainer for Superior Paint Supply in Salt Lake City. He has been working literally non-stop for the last five months as shops rush into the waterborne game before the deadline of July 1. “I’ve got shops lining up and it’s been crazy,” Brasier said. “I’m training 2-3 shops
all the time, back to back and once we’ve got them covered, here come 34 more.” While many shops in his region are embracing the new paint and quickly learning how to apply it correctly, some smaller shops are dragging their feet, Brasier explained. “If someone is onboard, I can train them in three days without issue. But, if they’re reluctant for whatever reason, it can take months, because they have to unlearn so many old habits. The waterborne paint goes on wetter and it stays wet longer and you have to use it in a clean environment without dust and dirt all around. It’s not rocket science, so if a good painter is motivated, he or she can be adept at using it rather quickly.” For more information about getting a clean air grant, you can find more information and the grant application at www.ucair.org.
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Southeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
MSCRA Conducts Outreach to Industry with Chasidy Rae Sisk
The Mississippi Collision Repair As- MSCRA routinely has at least 100 sociation (MSCRA) has a busy sched- people at their association meetings, ule of meetings and Chasidy conferences their members’ interests. with Rae representing Sisk planned for the beginning of 2014. MSCRA was established in 1999 Currently, the association’s president, because a group of MS shop owners John Mosley, is engaged in a whirl- were concerned that using imitation wind of traveling from state to state parts did not serve to restore the vehi“educating and hopefully helping fel- cle to its pre-loss condition. As they low shop owners find the strength to formed a group to educate themselves, Chasidy Rae the Sisk make business with decisions based on consumers and their legislators, sound business principles rather than they seemed to be making a lot of fear.” progress. Over the last two weeks of FebState Senator Richard White, a ruary, Mosley will be visiting eight member of the Insurance Committee, cities, all the way from Seattle, WA to agreed to meet with the group, claimRae ing Sisk to be 100% on-board with their Palm Bay, FL, aswith part ofChasidy his commitment to deliver information and assis- mission to protect consumers. At Sentance across the country. Though ator White’s suggestion, the group MSCRA’s primary service area is the hired a lobbyist, attended meetings state of MS, the association is very and testified before the Senate’s Insupportive of neighboring states, and surance Committee. After helping the group draft a they strive to help industry members in other states form associations for bill to protect consumers, Senator the bettering of the industry as a White instructed them to get the whole. With 59 member shops, phones ringing at the Capitol to gar-
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ner support for this issue, so the involved shop owners called their customers who had voiced concerns over the use of imitation parts, asking them to call their legislators to express support for the proposed bill. On the morning that the bill was scheduled to be put to a vote before the Insurance Committee, Mosley and Doug White, a fellow shop owner, met at the Capitol, prepared to answer any questions the committee members might ask about the bill; however, their anticipation quickly turned to shock and disappointment when Senator White invited them to his private office where he informed them that he would not introduce the bill because “we had put him between a rock and a hard place with his fellow committee members,” Mosley recalls. “He said there had been so many people calling them, pressing them to support the bill, that he feared they would be looked down on by the people they
represented, [but] if the committee voted for the bill, they could forget any campaign funding by the insurance industry.” When Mosley questioned whether the matter really came down to an issue of money instead of doing what he knew was right for the public, he was appalled at Senator White’s response: “I will never forget his reply —‘whether you like it or not, the money the insurance industry puts into these campaigns is the grease that makes the wheels of this Capitol turn.’ You can imagine how betrayed we felt as an association. We gradually quit meeting regularly. It was back to every shop for themselves.” Thus matters with MSCRA stood for a decade until May 2012 when Mosley and his comrades learned about State Farm’s introduction of PartsTrader. Many shops in MS began calling one another as it quickly became obvious that they needed to re-
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unite with the objective of preserving their businesses. Mosley was “disappointed in the lack of respect this giant corporation had for the small businesses that make up this industry.” MSCRA is opposed to PartsTrader and any other parts procurement program forced on the industry instead of being offered as a possible solution to be accepted or rejected based on its performance. “I have been in many states and talked to thousands of people, and the overwhelming response is that PartsTrader is a failure! State Farm recognizes this but pushes forward, destroying relationships and businesses with no regard to anything but the premise that it will save them money,” Mosley shares, continuing, “the quality of a repair is directly related to the parts used in the repair, and when the shop loses any part in the decision-making process, quality could be sacrificed. This is not fair to the consumer or the shop who is ultimately responsible for the repairs.” Along with their campaign against PartsTrader, MSCRA has a plethora of short and long-term goals that they strive to achieve. In the present and immediate future, the associa-
tion’s goals “are to promote growth in the association, educate our members, educate the consumers we serve, and strengthen our ability to work with the insurance company on a united front,” Mosley explains. Looking forward, MSCRA hopes to ensure that every member shop has the necessary information to acquire training specific to the repair being performed, and they hope to do this by becoming a resource for every member in their attempts to level the playing field. The association plans to supply members with information on equipment and factory resources as well as by securing I-CAR training opportunities in an effort to aid shops in achieving I-CAR’s Gold Class status. MSCRA is also dedicated to building their reputation with MS consumers so customers will feel comfortable putting their trust in any shop that displays a MSCRA plaque. In conjunction with this plan, the association hopes to build a warranty program among all association members to ensure the customer is aware that their repair is covered by any member shop in MS. Mosley explains the benefits of this plan: “This serves to com-
bat the steering efforts of some insurance companies when they tell the consumer ‘we don’t guarantee their work.’ We could see the DRP would not be a viable option for shops that were not willing to allow the insurance industry to run their business.” MSCRA also intends to work with state and national officials to protect consumers by exposing bad legislation and promoting safe legislation designed to benefit both the repairers and the consumers. Currently, MSCRA is gathering support for legislation that will protect the consumer when they have their vehicle repaired. In conjunction with federal officials, the association is assessing the 1963 Consent Decree in order to determine the degree to which it can be enforced; many agree that this federal consent is equally enforceable as it was half a century ago. Mosley explains, “the importance of the 1963 Consent Decree is it places the body shop in control of the repair and the insurance company in control of the insurance. What could be more important or fairer for all?” Like with other associations, MSCRA faces challenges when attempting to support legislation to im-
prove the collision repair industry. “The problem with any legislation is the amount of money the insurance industry will pour into campaigns via lobbyists and donations to buy decisions that tend to prioritize their profits over the consumer’s safety,” Mosley laments. Still, Mosley is optimistic about his belief that MSCRA’S actions will positively impact the future of this ever-changing industry. “The pressure created by the ever evolving greed of the DRP relationship and the PartsTrader scheme is having a galvanizing effect on the collision repair industry. The industry is changing with repairers realizing they are needed now more than ever. As repairers, we are also realizing there are fewer and fewer who are trained and equipped to repair the cars we are beginning to see and will continue to see in our shops. The insurance industry is trying to reign in any control they can exert over our industry as it changes. They make deals with MSOs in areas where the repairers are not bowing down and accepting their cost-cutting measures that can lead to poor quality, unsafe repairs. They did not expect the resistSee MSCRA, Page 39
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 17
Southeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Six SE Associations Prepare for Southern Automotive Repair Conf. with Chasidy Rae Sisk
The second annual Southern Automo- and ALARISE, associations particitive Repair Conference (SARC) is pating in the conference will include quickly approaching, plenty Florida Autobody Collision Assowithcreating Chasidy Rae the Sisk of work for the six associations that ciation (FACA), the Georgia Collision will be taking part in the event on Industry Association (GCIA), the April 11 and 12, 2014 at the Beau Ri- Louisiana Collision Industry Associavage Resort and Casino in Biloxi, MS. tion (LaCIA), and the Tennessee ColIf this 300% increase in conference lision Repairers Association (TCRA). collaborators is any indication, this Howard Batchelor, Executive with Chasidy Rae Director Sisk of GCIA, believes that inyear’s SARC will be quite successful with an influx of attendees! volvement with the SARC is important Steve Plier, Executive Director of because “the more information we can the Alabama Automotive Repair Sociprovide to collision centers, the better ety of Excellence (ALARISE) came up they will be prepared for the changing with the idea for the first conference industry. There are several issues curChasidy Rae rently Siskaffecting shops, and we want to which was held inwith February 2012 with over 95% of attendees coming from be able to provide information they AL, and this conference actually led to can use to better run their shop and the founding of ALARISE. Plier states make better business decisions.” He “the intent of the 2012 conference, just hopes that attendees will acquire uselike the focus of this year’s conference, ful information that can be used to imwas on education, business principles, prove their businesses, and he is consumer focus, and the fact that a colpersonally looking forward to talking lision repairer must be compensated for with the various shops about how they all labor procedures and materials used do business and what challenges they in properly repairing a vehicle to the face so that GCIA can create an agenda level of quality required to meet manto address these issues in the future. ufacturers’ standards so reinvestments The conference will begin the afwith can be continually madeEd to Attanasio purchase ternoon of Friday, April 11, and connew equipment and to provide the continue on Saturday from 8 AM until around 5:30 PM. The event’s agenda intinual training required to keep up with cludes a reception, trade show, rethe ever-changing technologies of freshments, and “breakout sessions” today’s vehicles and vehicles of the fuwhich include training, I-CAR classes, ture. Moving forward on each of these sponsor demos and association symsubjects is of the utmost importance for with Ed Attanasio posiums. Additionally, the conference each and every vehicle owner and for boasts an array of speakers representall consumers (you, me, our families ing various segments of the industry. and friends, children and grandchilThe presentations given by the dren) because improperly repaired vespeakers will be moderated by Master hicles can result in severe injuries even of Ceremonies Patrick Porter, radio to the most innocent and unknowing with Ed Attanasiopersonality and owner of Porter’s parties.” The next year, Plier’s group Body Shop in Brookhaven, MS. Scheduled speakers include the foljoined with John Mosley, President lowing industry professionals: Conof the Mississippi Collision Repair gressional Medal of Honor recipient Association (MSCRA), and acting as Mike Thornton; Aaron Schulencoordinators of the 2013 event, Plier burg, Executive Director of SCRS; and Mosley collaborated to organize Franklin Aaron Clark of Assured Performance; the SARC; theirwith effortsThomas proved effecRichard Perry, Chief’s Ford F-150 tive with 28 exhibitors/sponsors parProject Manager; Dave Poston, Colliticipating in the conference as well as sion Marketing Manager for American over 220 attendees representing five Honda; Richard Valenzuela of Varisoutheastern states. Anticipated attenable Rates Systems; John Mosley, dance for the 2014 SARC has increased to over 500 participants. with Ed AttanasioPresident of MSCRA and owner of Clinton Body Shop; and Ray Gunder SARC 2014 has expanded to inof Gunder’s Auto Center. clude the collaboration of four more On Saturday, the main speakers associations; in addition to MSCRA
Northeast Associations
Great Lakes Associations National Associations
Shop Showcase
will each be allotted approximately 45 minutes to present, beginning with Schulenburg who will provide a national industry update. Noting that this is the third time he will be attending SARC, Schulenburg shares his feelings on the conference and his plans for his presentation: “conferences such as these present a terrific opportunity for shops to open their thoughts to alternative solutions and mindsets that can help drive their business forward. My talk is going to be focused on discussing new market trends and developments in the collision repair industry that are going to impact collision repair professionals, and a quick dive into some unique out-of-the-box perspectives that depart from the masses, and instead rely on developing strategy based on results, rather than on the expected.” Schulenburg looks forward to attending SARC again since it gets bigger and better with more content each
year, and he believes “Steve and his group have done a tremendous job of pulling together this southern market and giving them an exciting forum to look forward to, and I have no doubt this year will continue to surpass those previous events.” The presentations will conclude with Mosley and Gunder, joined by attorney John Eaves, discussing the details and status of lawsuits filed against insurers, ending with a Q&A session. Though the order of the other speakers has not yet been finalized, the topics they will speak on are as follows: Thornton will deliver a motivational speech, Poston is presenting on Honda repair technologies, Perry plans to discuss the new repair requirements for aluminum F-150 vehicles, and Valenzuela is scheduled to cover the Variable Rate System which promises to make a difference in establishing equitable labor rates through a body shop survey system.
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Clark’s presentation will focus on the explaining Ford National Body Shop Program as Assured Performance is facilitating Ford dealership certification and recognition for independent body shops. Noting this is his first opportunity to attend such an event in the southeast, Clark is “looking forward to meeting some new people and being able to answer any questions that they may have.” Excitement and anticipation surrounding the SARC 2014 can be found in abundance amongst those involved with planning and speaking at the event. Plier is eager to hear Thornton speak: “I hope attendees will think about all the sacrifices that Mike and all the men and women in our military services for this country have made for each of us to enjoy the freedoms that we do. I hope this will lead attendees to be determined to stand for what is right and understand that standing for what is right usually is not the easy path, but it is the only path that will bring about change that is right, needed and focused on quality and service for each and every vehicle owner and their families.” Schulenburg is “most looking forward to the exchange of ideas that fos-
ters unique, independent thought for attendees. It is refreshing for repair business owners to step out of their four walls for a moment and take in other perspectives and information. I get excited about the idea of these repairers breaking the mold and really finding unique ways to bolster their businesses as they tackle the ever-changing landscape of collision repair.” For Georgia Thorson, Administrative Coordinator of the SARC, it’s all about “seeing all of the planning come to fruition. Having so many collision industry professionals join a common cause to improve problem areas for their industry, their business and their customers promises to be exciting. The conference lineup and the venue are spectacular, so I know I won’t be disappointed in the results!” Attendees can register for the SARC at a cost of $30 per person, but for individual business that want to have more than five employees attend at the same time, the registration fee is capped at $150. Businesses interested in exhibiting can reserve space for $1000, $3000 or $5000, dependent on their booth requirements and presentation time slots. Though limited space is still available, the deadline for ex-
NC Shop Wins Nationwide Short-Pay Arbitration Case Pack Brothers Collision Center of Belmont, NC, has won a short-pay arbitration case in a Lincoln County North Carolina court against Nationwide Mutual Insurance Company. On Feb, 3, 2014, a judge awarded a customer of Pack Brothers a little more than $3,000, which was owed to Pack Brothers for collision repairs that Nationwide refused to pay upon completion of their insured’s car. The lawsuit was filed on behalf of the customer with a Power of Attorney assigned by the customer in cooperation with Pack Brothers. The customer was insured by Nationwide, which refused to pay for repairs for a first-party claim. According to Pack Brothers, Nationwide did not honor their policy and refused to pay them for the repairs. A judge found that under the policy language, Nationwide did owe their policyholder so he could satisfy his collision repair bill. The judge entered a judgment against Nationwide finding in favor of the customer so that he could pay Pack Brothers. “Insurance companies are so used to saying that they will not pay for correct repairs, and they know that very few shops will push it into
litigation,” said Ronnie and Larry Pack. “Therefore, they continue to deny payment to the shops because they know it’s time consuming and expensive for the shop owners to pursue. “What we are seeing is that insurance companies are shortcutting repairs, and so the repairs to the car are now compromised because of the insurance company refusal to pay for the correct repairs needed. Therefore, some of the shops are shortcutting the repairs to make up for that loss— which ultimately makes the customer the loser. “Our victory means nothing unlesswww.autobodynews.com the whole industry gets involved and demands to be IT paid for correct CHECK OUT! repairs.”
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hibitors to register if March 25, so hurry and reserve your space today! Current exhibitors include manufacturers, marketing representatives, PBE distributors and industry associations. With the steady increases in attendance and the value brought by the SARC, Plier hopes the event will continue to grow in the future as attendees tell others of the information and benefits gained from attending the conference. Furthermore, he would like to “challenge every individual in the collision repair industry to look in the mirror and ask ‘do I agree with the direction of this industry?’ If you do not agree, then do something to change the direction; complaining will not bring about change – change will only occur when we fight for our principles and what is right. What principles do you stand for? I hope everyone will consider this challenge. I do not want to see this industry become another medical industry with few, if any, choices. America was built on the values of freedom and freedom of choice. Where do you stand?” For additional information about the Southern Automotive Repair Conference, visit their website at: www.southernautomotiverepairconference.com or call 731-736-3165.
Record $9.4M Donated to Collision School Programs
In 2013, the collision industry nearly doubled the 2012 amount of support it provided to high school and college collision school programs through the Collision Repair Education Foundation with nearly US$9.4 million in product and monetary donations. Ninety percent of this support was in-kind donations, and the collision industry surpassed the US$20 million mark in total giving since 2008. Also, working towards being as lean of a charitable organization as possible with a full-time staff of four, 90 cents of every dollar donated went towards supporting the school programs, instructors, and students in 2013. “The incredible growth in support that the Collision Repair Education Foundation has been able to provide since 2008 is a direct result of the industry’s generosity, and to nearly double the amount donated in 2013 compared to 2012 shows how much our supporters believe in the technical education of industry’s future professionals,” said Clark Plucinski, Collision Repair Education Foundation executive director.
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Shop Owner in Helena Arkansas Creates Shelwes Automatic Contour Sander When Shelley Haynes took her son’s truck to a local AR body shop for repairs in 2010, she never dreamed that she and the body shop owner, Wesley King, would become good friends and ultimately launch a product that could change the global auto body industry. “Wesley showed me several things he had made and asked me to help him find out about patenting,” said Haynes, CEO of Shelwes Tools and Equipment. At the time, Haynes was a science and English teacher at Marvell Academy in Marvell, AR. King’s body shop was outside of West Helena on Highway 49 on Hayne’s route to school. As she looked at King’s ideas, she fell back on her science-fair experience to help pave the way for the invention of the Shelwes Automatic Contour Sander. She also began taking classes through the Helena Entrepreneur Center for Business, a small-business incubator operated through a partnership between the UA-Phillips Community College and Thrive, a nonprofit community and economic development design firm. She and King worked with the center on testing and development of the tool for more than three years. Shelwes continues to operate out of the incubator, where its manufacturing facility and business offices are both located. The product is an attachment for a power sander. It automatically conforms to irregular surfaces. “It cuts your work time down, I would say, to less than half,” said cofounder Haynes. The auto body sander was launched at the 2013 SEMA show in Las Vegas in November. “Starting the patent process with Wesley, along with developing the Automatic Contour Sander and entering the SEMA trade show was very much like a science fair,” she said. There were more than 2,000 prod-
Elvis is Back in his Body Shop and Running For Office
Elvis D. Presley of Star City filed paperwork at the state Capitol to run as a Libertarian for commissioner of state lands. Presley was selected as the party’s nominee during its convention last weekend in Little Rock. Presley, who works at an auto body shop and performs Elvis-themed shows in his free time, ran as a writein candidate for Arkansas governor in 2010. Born Joey Dane Ashmore, he legally changed his name to Elvis D. Presley in 2006. Republican John Thurston is running for re-election as land commissioner. So far, no Democrats have filed to run for the post. Presley said he didn’t expect his famous name to help him in the race.
ucts submitted for judging, including the Shelwes sander. “To our pleasant surprise, we found out at the New Products Breakfast—the kickoff of SEMA—that we won runner-up in two different categories: Best New Tool and Equipment and Best New Collision Repair and Refinish Product,” Haynes said.
Shelwes Automatic Contour Sander
The sander was competing against products developed by industry giant 3M and other well-known companies. The judges rated the products based on superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability. “We had a great reception at SEMA and lots of interest in our tool,” Haynes said. “We’ve been filling orders since we returned, receiving orders from all over the nation. We’ve had a lot of interest from Canada and other countries as well.” Because there’s no other product like it on the market, Shelwes has a patent pending on the sander due to its technologically innovative design to cut labor time for sanding jobs. It automatically conforms to the sanding surface, no matter how curved or irregular. Because of that conforming ability, the workflow doesn’t stop to make adjustments or to change tools. “The body men who help us test it, say they will not go back to the ‘cave-
AR Body Shops Profit from Winter Weather
Some body shops in central Arkansas have lines of cars outside their garages. At West Auto Body, Owner Larry West said his phone has been ringing off the hook. The damages range from all types of dents on bumpers and doors and cracked windshields. West said he took off this past weekend because he knew what to expect today. “I love the business but I’d rather folks to be safe than tearing their cars up than making money,” said West. He’s looking at the weather forecast and is urging everyone to stay home. If you are hit, he said be sure to exchange insurance information to make sure it’s correct before anyone drives off.
22 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
man way’ of sanding again,” Haynes said. “It is our hope that anyone whose work requires sanding technology has this tool. It can be used on military vehicles, planes, boats, automobiles, just about any surface that needs to be sanded.” Mike Green worked with King for several years, and he recently opened his own body shop in West Helena. Green said he admires King’s innovative mind. “He’s always thinking outside of the box… He’d thought about (the sander idea) for years,” Green said. “It’s easy to think about it, but a lot harder to actually do it. It’s a really neat product, and it eliminates a lot of labor time.” This was the problem that led to the idea of the sander by King, who has more than 30 years of auto body experience. He believed there was a need to find a way to get the job done more efficiently because sanding is the most time-consuming job in the industry. Green agrees that the new sander saves a lot of labor time. “I’ve always been kind of oldschool, but we’ve been using the sander since we opened. You don’t have to manipulate everything with your hands (as with other sanding tools). It’s a lot easier—almost like you’re cheating,” Green said with a laugh. Green said many times insurance companies don’t want a panel replaced
Welcome to the ALL NEW
on a car—instead they want it repaired. “I was doing a job about three weeks back on an Infinity with a damaged quarter panel,” Green said. “The sander turned sideways and wrapped around the area. I was thinking, ‘Wow, this is amazing.’” The sander is 100 percent manufactured in the United States at Shelwes Tools and Body based in Helena. Winning the SEMA awards gave Haynes and King recognition worldwide. “It proved that small-town America can still compete,” Haynes said. “Launching not only our product, but also our company at a worldwide event and receiving such recognition has helped with advertising on a global scale while giving us that SEMA stamp of approval that so many in the auto body industry recognize and trust when looking for new products and ways to improve quality and workmanship.” Although, Haynes said she can’t predict the future, she knows that each person who needs sanding technology will benefit from using one of the Shelwes sanders. “The savings will trickle right back to the customers who pay less and the insurance companies who pay less,” she said. “And everyone knows that a dollar saved is a dollar spent somewhere else, which is what makes our economy strong.”
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AAAS Busy Strengthening Industry in 2014 by Chasidy Rae Sisk
Despite the harsh and unusual weather in the southeast portion of the country, the Automotive Aftermarket Association Southeast (AAAS) has been hard at work in their efforts to strengthen the industry—they aren’t going to let a little snow and ice slow them down! Currently, their main focus is on two upcoming lobbying events, but they are also preparing to award scholarships as their scholarship deadline draws near and planning for their annual conference in June. AAAS held their second Annual Capitol Day at the GA State Capitol in Atlanta on Wednesday, February 19th. GA members of AAAS were invited to join the association for a full day of legislative sessions and visits with elected officials as AAAS seeks to personally advocate for the industry’s priorities. On March 18th and 19th, AAAS members from the Sunshine State are encouraged to attend their Annual Capitol Day event in Tallahassee, FL, again attending legislative sessions and visiting with legislators as they at-
tempt to strengthen the industry. Regarding these two events, President of AAAS Randal Ward explains, “members join us for a day or two of walking the halls of the legislature and visiting representatives.” Ward believes this is a proactive networking opportunity that allows them to gain advocates for future legislative concerns they may encounter. AAAS is also preparing to award scholarships in the near future. The deadline for the AAAS Educational Foundation Scholarship is March 31, 2014. The AAASEF Scholarship Fund was established in 2005 to encourage and financially support individuals wishing to continue their education in a technical training school or college. Applicants must be sponsored by an AAAS member to be eligible, but all eligible candidates will be considered, regardless of their chosen field of study. Applications can be submitted at: www.automotivescholarships.com /AAAS. Additionally, AAAS is making arrangements for their upcoming Annual Conference and Trade Show, to
be held at the Baytowne Warf of Sandestin on June 5-8, 2014. They are excited to present keynote speaker John Washbish, President and CEO of the Aftermarket Auto Parts Alliance, Inc. With over four decades of experience in the automotive industry, Washbash’s leadership skills have been recognized with numerous awards, including the Automotive Warehouse Distributors Association Leader of the Year Award and Northwood’s Automotive Aftermarket Management Education Award. AAAS Chairman Mike Morgan feels “very fortunate to have John joining us for our annual conference. We look forward to his visit and him sharing his views and insight on the industry and the economy… We are honored to welcome an impressive list of guest speakers who will deliver very timely educational and informative presentations on some of the most important topics facing the aftermarket industry today.” On Saturday morning, the conference will begin with Washbish discussing changes and trends that
impact aftermarket businesses. Next, Scott Luckett, Chief Information Officer of the Automotive Aftermarket Industry Association (AAIA) will present “The Connected Car: The Impact of Vehicles Telematics in the Auto Care Industry,” and this will be followed by a presentation on “Aftermarket Access to OEM Vehicle Repair Information,” given by Skip Potter, Executive Director of the National Automotive Service Task Force (NASTF). The program will conclude with Wayne Bowling, Senior Vice President of Employee Benefits at Willis Group, who will discuss Obamacare’s effects on attendees, their businesses and their employees. In addition to the educational aspect of the event, AAAS promises networking opportunities and plenty of fun with a full schedule that includes a deep fishing charter, a reception at Baytowne Marina, a Saturday night dinner cruise on the Solaris, and the Bell/Hines Memorial Scholarship Fundraiser Golf Tournament. AAAS will continue providing updates on this event at www.aaas.us.
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 23
Testimony on Maryland Parts Bill Involved Representatives from WMABA, PCI, LKQ, CAPA and Shops, Some Repairers ‘Cannot Afford to Refuse’ PartsTrader by Chasidy Rae Sisk
The MD House Economic Matters committee, on March 14, voted 16 to 7 for an unfavorable report on HB574. No action has yet been taken on SB487. See cover story this issue. This article provides some background on the testimony pro and con in front of the committee. On February 21, the Washington Metropolitan Auto Body Association (WMABA) testified at the MD House Hearing on Economic Matters in support of House Bill 574 (companion to Senate Bill 487), entitled Motor Vehicle Liability Insurance – Replacement Parts for Damaged Motor Vehicles. During the hour-and-a-half that this bill was discussed in committee, House delegates heard from several panels representing various segments of the collision repair industry. The first panel consisted of Jordan Hendler, Executive Director of WMABA, Mark Schaech of Mark’s Body Shop, and Joe Tucker of JQ Restorations. Hendler began by expressing her belief that HB574 would provide collision repair shops with the ability to service vehicles with what they deem to be the highest quality parts, stressing the need to trust the collision repair professionals to know what’s best for their customers. “As an industry, collision repairers are the first line of defense and considered the professional when it comes to fixing your car and doing what’s right for you,” she said. Support of this bill is important, Hendler continued, because use of aftermarket parts can impair warranties on newer vehicles, especially those that are less than three years old. Before a collision, a consumer’s warranty is 100% intact, but if their vehicle is repaired with aftermarket parts, the warranty is no longer 100% intact; portions of the warranty will not be valid because OEM parts were replaced with parts not recommended by the factory warranty. Additionally, even when the parts vendor or insurer offers a warranty on aftermarket parts, it is non-transferable should the car be sold to another consumer. “Aftermarket parts, in our industry’s perspective, are inferior to genuine parts. We have fit, finish and functionality issues, even just for cosmetic purposes,” Hendler reiterated.
Another problem Hendler cited with the use of aftermarket parts is that they aren’t full vehicle crash-tested, and according to IIHS 2010 Chief Research Officer, there is a lot of engineering that goes into making a crash protection system, so changing parts may result in the system being unable to function as intended by the manufacturer. MD code requires shops to inform the consumer when aftermarket parts are used, and most insurers permit customers to opt for using OEM parts instead; however, the customer must pay the difference in price between the parts options. Speaking to claims that HB574 will lead to higher insurance premiums, Hendler pointed out that though RI and WV have a three-year prohibition on aftermarket parts and historically higher rates, IN has a five-year prohibition and MN has a complete prohibition on aftermarket parts, and both of these states enjoy lower premiums than MD. Furthermore, insurers admit that premiums are mostly predicated on the individual driver, their driving record and where the live, in addition to state bodily injury laws. A report by the Property Casualty Insurers Association (PCI) indicates that a complete ban on aftermarket parts would affect premiums by 2.6%, or $24 per year on average. Thus, Hendler concluded, there is no evidence of a correlation between using OEM parts and increased insurance premiums. Schaech provided an example of installing an aftermarket radiator which fails and ruins the vehicle’s engine. The engine will not be covered under the manufacturer’s warranty because the failure was caused by the aftermarket part. Tucker addressed the parts procurement portion of the bill, explaining how DRPs work and comparing insurer-mandated parts procurement to steering, an activity prohibited by MD law. When asked who is responsible for faulty parts, Schaech noted the shop is liable, and though a shop can ask the consumer to sign a “Hold Harmless” letter if they know they are going against OEM recommendations, he believes it’s not right for shops to be put in this position at all. While MD
24 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
law requires shops to disclose use of aftermarket parts, giving the consumer the option of spending more money to repair their vehicle with OEM parts, many DRP shops are rated on how often they use aftermarket parts in their repairs. The next panel called to testify consisted of insurer representatives. Noel Patterson began by arguing that half the cost of insurance premiums is dictated by the cost of coverage; if the cost of repairs increases, so will the price of the premiums. She also believes that the use of aftermarket parts promoted competition in the marketplace while allowing insurers to control costs even as they strive to restore the vehicle to its pre-accident condition. On behalf of USAA and the MD Insurers Alliance trade association, Kimberly Robinson said she opposed HB574 because many insurers offer consumers the choice to pay for OEM parts in their repair, allowing for competition between insurance companies in MD, but this law would shift the
cost of parts, increasing insurers’ expenses and translating into higher premiums “despite other states’ experiences.” A representative from Liberty Mutual also objected, arguing that customers can get an extended warranty on aftermarket parts by going to DRP shops. This led to a delegate questioning how the insurers can claim that they are restoring a vehicle to its preloss condition when they’ve already acknowledged that using aftermarket parts may lead to diminished value, to which the insurer replied that their goal is to restore the vehicle to its previous condition, not its pre-accident value. Several representatives from LKQ-Keystone were called to testify next, and Bruce Barriano argued that aftermarket parts are the same as OEM parts essentially; the term “aftermarket” simply means the part was made after the vehicle was manufactured. He insisted that the term is not a connotation of inferior quality as aftermarket See Testimony, Page 31
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Continued from Cover
Maryland Parts Bill
limit the choices that the consumer has in getting their vehicle repaired,” said ABPA Executive Director Edward Salamy. “These types of anticonsumer bills not only eliminate competition, a foundation of the American free enterprise system, they also increase the potential for higher insurance costs.” ABPA claims that a representative of the Washington Metropolitan Auto Body Association (WMABA) made a series of false claims, including: ● OE radiators have a better warranty than alternative supplier radiators. ● Consumers will be required to pay additional rental car fees caused by delays due to alternative parts. “The ABPA is not only monitoring the legislation in Maryland, but it has also come to our attention there is similar anti-consumer legislation being introduced in Rhode Island and Michigan,” said Salamy. “Having your vehicle involved in a collision is already a very stressful
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experience for the consumer. Having a repair association such as WMABA using scare tactics to achieve their own agenda is not in the best interest of the consumer.” Maryland Senate Bill 487 would prohibit “…a specified adjuster, appraiser, insurance producer, or employee of an insurer from requiring a motor vehicle repair facility to use a
lations Counsel said, “PCI and our members encourage lawmakers to closely examine the possible negative ramifications for consumers that could result if Senate Bill 487 passes. This legislation not only imposes severe restrictions on how insurers manage the auto body repair process and deliver a quality repair experience, but it also could hurt consumers by increasing
“[This legislation] imposes severe restrictions on how insurers manage the auto repair process and deliver a quality repair experience...”
—Oyango Snell, PCI Govt. Relations Counsel
specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle; requiring an insurer that issues or delivers in the State a policy of motor vehicle liability insurance that provides coverage for the repair of physical damage to the insured motor vehicle to authorize specified repairs to be made using genuine crash parts; etc.” The Property Casualty Insurers Association of America (PCI) testified in opposition to the legislation. Oyango Snell, State Government Re-
the costs associated with getting vehicles repaired and increasing the cost of insurance premiums. Currently Maryland’s average collision premium ranks 13th highest in the nation and that ranking could rise by forcing more repairs to always be made with original equipment parts, which can be as much as 60 percent more than aftermarket parts.” Snell continued, “We believe lawmakers will see that this bill limits consumer choice and stands in the way of insurers providing high qual-
ity repairs at reasonable costs for their constituents. We are urging lawmakers to table this legislation and continue to fight against higher costs for consumers.” The Coalition for Auto Repair Equality (CARE) that represents companies in the automotive aftermarket including NAPA, AutoZone, Advance Auto Parts, O’Reilly Auto Parts and Bridgestone-Firestone Retail Operations, raised concerns about the proposed legislation’s impact upon low-income consumers and that it stigmatizes non-OEM parts by requiring the consumer to consent to their use. “If passed, House Bill 574 and Senate Bill 487 would require motorists who need vehicle replacement parts to specifically sign for the use of aftermarket parts in their vehicles before accepting them. This is unfair because these same vehicle owners do not have to sign for the more expensive car company-labeled parts. In addition, this plants a seed of doubt in a consumer’s mind that the aftermarket parts are somehow of inferior quality, frightening them into spending extra money that they may not have,” said the executive director of CARE.
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Addressing the issue of the three year requirement for OEM parts, an analysis prepared on the bills by the Maryland Department of Legislative services noted that the Maryland Automobile Insurance Fund (MAIF), an independent state agency created by the Maryland State Legislature in 1972 to provide insurance to residents who could not secure it on the private market, already has a policy to pay for OEM parts for two years after the date of manufacture. While adding a year to the current policy would raise costs, the analysis states, “However, despite the prevalence of motor vehicle accidents and collisions in society at large, any expenditure increase due to covering an additional year is likely to be minimal.” The MAIF reported that in 2013 it wrote a total of 460 estimates on 2011 model vehicles (three year old vehicles that would be covered by the expanded OEM-only waiting period) and that the average difference between estimates using OEM parts versus aftermarket parts was $117.32, for a total estimated increased cost of $53,967. If that cost was passed on to consumers in premium, the two percent tax on insurance premiums paid
to the state would result in $1079 tax collected. The Washington Metropolitan Auto Body Association, (WMABA) supported the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. WMABA also believes that the impact on costs from the OEM-parts only requirement would be minimal and that there is no correlation between this type of provision and the cost of insurance. According to WMABA, while Rhode Island with a 30-month prohibition, and West Virginia, with a 3-year prohibition, have historically higher premiums than Maryland, Indiana, with a 5-yr prohibition, and Minnesota with a complete aftermarket prohibition have lower premiums than Maryland. WMABA also drew attention to the fact that consumer choice is preserved in the legislation because consumers would still have the ability to consent to the use of aftermarket parts if they choose to do so. For more detailed discussion of the testimony see p. 24.
CARSTAR to Address Industry Trends at Colorado Events
CARSTAR Auto Body Repair Experts will host two collision industry events in Colorado that will allow body shop owners to learn about the critical business issues and trends impacting their businesses. CARSTAR said the events, called Collision Industry Night, will be lead by a group of the industry’s top professionals. The events will feature the following speakers and topics of discussion:
■ Kurtis Keala of Mitchell International—Mobile Estimating Technology ■ Ryan Cassella of Hertz—Car Rental Technology ■ Steve Witt of BASF—Repair Planning ■ Robert Foster of 3M—The Impact of Technology for Future Vehicles ■ Chris Johns of FinishMaster— Collision Industry Overview ■ David Byers of CARSTAR—Insurance Industry Trends “When you’re an independent body shop owner, it’s hard to take the time to step away from your business to look at longer-range changes and developments in the industry,” said
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Mark Algie, business development manager for 3M Automotive Aftermarket. “This Collision Industry Night provides a great way to understand how the changing marketplace will impact your business, and plan now for those changes.” The first event will take place March 4 from 11:30 a.m. to 1 p.m. at the Embassy Suites Denver-Tech Center in Centennial, CO. The second event will take place March 5 from 11:30 a.m. to 1 p.m. at the Sky Sox Security Service Field in Colorado Springs, CO. “For any body shop owner who is looking to grow their business, expand to an additional location, or transition their ownership to the next generation, this is an excellent event,” said David Byers, CEO of CARSTAR. “We’re joining with the top professionals in the collision industry to bring these events to local markets so owners have the opportunity to explore the major issues, trends and solutions in our changing industry.” Body shop owners interested in participating can contact Mike Davids at mdavids@carstar.com.
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Western Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-AZ Meets to Discuss Survival Skills for Service Advisors On Saturday, February 22nd, the Auzona. Most attended to learn better tomotive Service Association of Ariways on how to communicate with zona (ASA-AZ) hosted a course others [came for] a rewith Chasidy Rae customers, Sisk entitled Survival Skills for Service Adfresher course.” visors at the Phoenix Airport Hilton. The focus of the event was on the Luz A. Rubio, Executive Director of importance of developing good communication skills, and the group discussed various scenarios with Chasidy Rae Sisk and examples, examining the best way to handle each unique situation. “Being able to listen to the customer with Chasidy Rae Sisk and addressing the reason they came into the shop should be the primary focus. Being able to educate and inform with Chasidy Rae Sisk the customer on the ASA-AZ, says it was a “great class! importance of maintaining their vehicle We had 30 Service Advisors in attenin order to prevent costly repairs was dance, representing shops around Arialso an area of focus,” Rubio told us.
Southwest Associations Southeast Associations Northeast Associations
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Property and Casualty with ChasidyInsurers Rae SiskHit With Antitrust Suit by Florida Auto Body Shops
On February 24, 2014, a group of fixing under Section 1 of the Sherman Florida auto body shops filed an an- Act. In search of evidence of agreetitrust action against over forty prop- ment amongst the defendants (a necerty and casualty insurers in the U.S. essary element of a Section 1 claim), District Court for the Middle District plaintiffs allege that the insurers of Florida. agreed to control and suppress automobile damage repair costs at meetIn the case, A&E Auto Body verings amongst themselves that they sus 21st Century Centennial Insurance Co., d/b/a Farmers Insurance refused to allow members of the auto Group et al., the plaintiffs allege that collision repair industry to attend. the State Farm vendor agreement rePlaintiffs also contend that dewithtoEd Attanasio quires shops desiring participate in fendants’ alleged conduct constitutes this preferred provider program to ac- unlawful boycott activity. In support cept the market rate for such services, of that assertion, plaintiffs maintain and that State Farm calculates those that the defendants’ alleged acts of rates in an improper manner that steering customers away from plainkeeps them artificially low and not tiffs, through allegations and intimirepresentative of the true market for dations of poor work quality places with Ed Attanasio such services. defendants’ conduct beyond the limThe plaintiffs also allege that the ited antitrust exemption that the inremaining insurer defendants in the surance industry enjoys under the state have advised plaintiffs that they McCarran Ferguson Act. will pay no more than State Farm pays The action is only in its very earfor labor at their shops, thus resulting liest stages, and the insurers have not in a stabilizing with of ratesEd at Attanasio these al- yet responded to plaintiffs’ allegalegedly low levels. tions. However, given the number of In addition to a number of com- insurer defendants, and the nature of mon law counts, plaintiffs assert that the issues, the case will be a major defendants’ conduct constitutes price collision industry event in 2014.
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Attendees’ expectations were exceeded, Rubio believes. “Several experienced service advisors who have been in their position for more than ten years enjoyed the class and walked away with at least one idea that they can implement to improve how they have been doing their job.” In 2014, the ASA-AZ’s goal is to provide their members with education and training by attracting indus-
try speakers who will share fresh content that members can relate to and learn from. “The benefit of being a member is the opportunity to exchange ideas with peers and learn from each other. We promote that we are not an association of competitors, but an association of peers where we identify challenges and come up with ideas that will maximize the success and longevity their businesses.” ASA-AZ is very excited to offer a full calendar of meetings, events and
roundtables this year as they continue to strive to provide a forum for members to share valuable information that will help elevate the standard in the in-
dustry. Rubio poses a question: “Where else can you go to exchange information with your peers, people that have found what works or what does not? We urge shop owners to attend these events and network with their fellow peers; the return on their membership investment will be more than just financial.”
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for Auto Safety, opposes the bill because it limits consumer choice, protects an unfair monopoly, restricts competition, and will increase crash parts are built brand new and to specrepair costs for MD consumers. ifications. Barriano said that aftermarIn addition to arguing that compeket parts are only cheaper in price, not tition lowers prices, Gillis pointed out in quality or safety, and using these that using OEM parts doesn’t necesparts benefits consumers by keeping sarily mean restoring the vehicle to its insurance costs down. pre-loss condition, and because OEM In contrast, HB574 creates a parts are frequently recalled, he doesn’t three-year monopoly which is anti- think they should be the only option. competitive, allows OEMs to charge Arguing that “there’s nothing wrong whatever they want for these parts, and with generic products,” he asked why will clearly lead to increasing aftermarket parts aren’t banned altorates—“this bill is not without finangether if they’re substandard and sugcial implications,” Barriano insisted. gests a middle-ground option of Additionally, consumers receive a requiring aftermarket parts to be funcwarranty on the life of LKQ aftermartionally equivalent to OEM parts. ket parts, plus the shop that repairs the The final portion of testimony vehicle receives indemnification from began with Laura Marta Harding of LKQ who will defend the collision reState Farm who focused on the parts pair facility if a lawsuit is filed. procurement portion of HB574, noting Two General Managers of LKQ- that PartsTrader has only been in efKeystone facilities in MD, Jim Lohan fect in MD for two weeks. She argued and Marcel Hoover, spoke about how that the collision repair shops control the businesses they run contribute to the the inputs in PartsTrader, specifying state’s economy, and they claimed that the type of parts they use, and indimany customers call them seeking cated that shops who object to interGive us your opinion onanmatters affecting the industry. alternative to high-priced OEM parts. ference in this business are welcome Jack Gillis, Executive Director to opt out of State Farm’s Select Servof CAPA and on behalf of the Center ice Program. Continued from Page 24
Testimony
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Testifying on behalf of the opposition was Laura Gay, owner of Fort Washington Auto Body and Sullivan’s Auto Body. Gay discussed the decrease in the collision repair business due to advancing technology, admitting she cannot afford to refuse PartsTrader because she needs the business generated by being on State Farm’s DRP. Lawrence Christiansen of Nationwide estimated that HB574 would increase Nationwide’s premiums by $12 million over the next six months, and as this insurer only writes around 10% of MD’s insurance, the bill would seriously impact MD’s economy. Oyango Snell, Counsel for PCI, concluded the testimony by pointing out that the bill’s advocates haven’t provided proof of consumer complaints, thus aftermarket parts usage poses no threat to the consumer in his opinion. Aftermarket parts only represent 10% of the parts market, so he feels the goal of HB574 seems to be creating even more of a monopoly. He finishes his testimony with the double-edged reminder that “insurance companies don’t sell parts.”Want For video the link on the to tosee Contribute www.autobodynews.com website. Search for the online story with the same title as this article.
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Industry Insight with John Yoswick
—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.
Helpful Documents, Tools, Information Only a Click Away For Shops Looking for tips, tools and resources cians on general job boards,” Jeff Herto help your business, defend your po- man, CEO of TopTech Finder, said. sitions or do your part for the indus- “They aren’t designed for the mechantry? Here’s a collection links to ical repair industry and don’t draw with EdofAttanasio sites, documents and information you many technicians. In contrast, TopTech may find interesting and useful. Finder allows candidates to show off — More and more state legislaindustry-specific qualifications, maktures are considering bills that would ing it a natural place for techs to find place new limits on insurer mandates, jobs.” such as State Farm’s mandated use of TopTech Finder is free for jobPartsTrader. Meanwhile theAttanasio Automoseekers and will remain free for emwith Ed tive Service Association (ASA) is exployers for a limited time. pected to issue a preliminary report — It’s a common belief in the insoon on the response it has received dustry that in markets with lower from state attorneys general and insurlabor rates, estimates have more line ance regulations regarding the legality items to make the bottom line about of State Farm’s PartsTrader mandate. the same as it would be in a market “ASA has had discussions with a with a higher labor rate. Some analyEd have Attanasio number of thesewith states that sub- sis from Mitchell International indimitted inquiries for additional sup- cates that may not be the case. porting information,” the association Download Mitchell’s most restates in its press release. “It’s imporcent “Industry Trends Report,” tant to note that subsequent to our an- (http://tinyurl.com/cpbt9ks) to read nouncement relative to sending letters how the company analyzed estimates to each state, State Farm sent states a in states with the highest labor rates letter arguing the legitimacy of such to compare them to those with the mandates.” lowest labor rates. The states with the Want to see what State Farm is lowest average body labor rates – telling some state regulators? Click Massachusetts ($37.07), Tennessee here (http://tinyurl.com/StateFarm- ($41.14), Florida ($41.29), Georgia Letter) to see one such letter. ($42.04) and Maryland ($42.12) – did “Our goal was to resolve this issue not tend to have more repair (versus without government oversight, interferreplace) operations, more refinish ence or legislation,” Dan Risley, execuhours or more overall estimate lines tive director of ASA, said. “As such, we than the states with the highest averhave persisted in our efforts to work age body labor rates – Montana with State Farm to change the current ($63.05), Alaska ($61.35), California PartsTrader mandate policy. This has ($60.46), North Dakota (59.52) and included multiple meetings and other Wyoming ($57.45). discussions that continued throughout “Only 1.2 hours of total labor 2013. ASA believes that there are poseparates the average of the bottom tential solutions (if) State Farm is willfive labor rate states from the top five ing to work toward an amicable labor rate states,” the report found, for resolution that benefits State Farm, colexample. lision repairers and the consumer.” — Which states are doing the — Looking for another way to remost to improve highway safety? The cruit new technicians? Shops should 11th annual report card from Advonote that use of the TopTechFinder.com cates for Highway and Auto Safety (www.toptechfinder.com) recruiting measuring state progress in passing site is still free for both shops and those highway safety laws gives Illinois, looking for work. Oregon and the District of Columbia Since launching in early 2012, the top grades for having enacted 12 TopTechFinder.com has connected with of 15 laws the organization supports. over 1,350 candidates and 350 repairAnother six states, including Indiana, ers in the collision repair business. It have passed 11 of the laws. has since expanded to help mechanical States receiving the lowest grades, repair shops find qualified employees. having enacted five or fewer of the “It’s hard to find qualified technilaws, are South Dakota, Mississippi,
Shop Showcase
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32 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
Arizona, Iowa, Montana and Nebraska. Download the report at: http://tinyurl.com/lctnvv9 — Here’s a link that has nothing to do with collision repair directly, but could save a life. Joe Arnold, vice president of Arnold’s Body Shop in Davenport, Iowa, is urging people to learn the symptoms of a stroke after his wife suffered a stroke on the day after Christmas. “She is only 39 years old and healthy,” Arnold posted on Facebook. “It can happen to anyone at any age. At the start we thought it was just a migraine. As it progressed, it became clear that it was a stroke. I only knew because of my past training as an EMT (14 years ago) what it really could be. She will make a full recovery because we recognized the signs and symptoms and took immediate action based upon them.” The three key symptoms are outlined at: http://tinyurl.com/ltg3q63
“The more you know, the safer you and your loved ones will be,” Arnold wrote. — Another anti-DRP website, StopDRP.com, has launched; its content includes an animated video cautioning consumers about the use of non-OEM parts (comparing them to having a diamond replaced with cubic zirconium) and one fictionalizing a conversation between a shop and an insurer about what the shop must do to become part of the insurer’s DRP. The site includes a link to another such site, StopSteering.com, which launched in 2008. — Looking for help explaining their automaker’s position on nonOEM parts or reconditioned wheels? The OEM Roundtable this year launched a new consumer website, www.CrashRepairInfo.com. The site includes: information for vehicleowners on how to choose a body shop; See Only a Click Away, Page 35
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Is My Gas Can Safe? by Sam Celly, MS JD CSP
The maintenance and operation of gasoline tanks, both aboveground and underground, has become expensive, highly regulated, and burdensome. Automobile dealers have resorted to gas dolly equipment where a small amount of gasoline can be added to each new automobile delivered to the dealership. We note that automobiles delivered to dealerships from manufacturers have very small amounts of gasoline; this being a result of U.S. Department of Transportation (DOT) regulations, which dictate that minimal amounts of gasoline be retained in gas tanks of vehicles in transport. We write this memo to discuss DOT, OSHA, and CARB regulations applicable to gasoline being transported from a public gasoline station to dealerships for a later fill in automobiles on the lot. Federal DOT Regulations: Gasoline transport is discussed in Section 173.6 of the DOT regulations under “material of transport exceptions.” The regulations require that a container being used to transport gasoline must be less than 8 gallons
PPG Announces Distributor Training Schedule
PPG Automotive Refinish unveiled its 2014 distributor training schedule. Consisting of more than 30 classes across 12 critical business areas, the training is for owners, managers, sales staff, and other key personnel involved in the operation of a PPG distributor business. Classes cover general operations, finance, business development and management, conflict resolution, selling skills, commercial business development, and more. “We’re always enhancing our distributor training offerings, making sure they’re relevant and rewarding,” said Bob Wenzinger, PPG distributor programs director. “We see PPG distributors at all levels learning and improving from our courses.” Training will be held from March to December in PPG business development centers and conference facilities throughout the U.S. and Canada. Courses are led by PPG leaders and prominent consultants in the automotive refinish industry. View the complete 2014 training schedule at http://us.ppgrefinish.com/PPG-Refinish/Training/Trai ning-Courses.
per container and a maximum of 72 total gallons (440 pounds). The containers must be secured in the pickup truck and properly labeled. The driver should be trained in DOT regulations. We recommend that the containers are UL certified. Beyond that, there are many other regulatory agencies with enforcement in the hazmat arena. http://www.gpo.gov/fdsys/pkg/CFR2011-title49-vol2/pdf/CFR-2011title49-vol2-sec173-6.pdf Safety: Safety concerns for gasoline containers are as follows: * Properly labeled container with hazard warnings and employee training in Hazard Communication Program (OSHA Regulation 29 CFR § 1910.1200). * 29 CFR § 1926.152(a)(1) states that “Only approved containers and portable tanks shall be used for storage and handling of flammable liquids. Approved safety cans or DOT approved containers shall be used for the handling and use of flammable liquids in quantities of 5 gallons or less...” * Bonding of containers to eliminate static electricity be followed both at the time of filling up the containers
Car-O-Liner Offers New Ford 2015 F-150 Equipment
Car-O-Liner® has expanded their equipment offering included in the 2015 F-150 Collision Repair Program. New equipment includes three new welders, frame alignment solutions, and a mobile aluminum workstation.
“This equipment will greatly enhance the technician’s potential to have the exact tools they need for high quality, quick, and accurate repairs. With this expanded product offering, Car-O-Liner is excited to provide the total repair solution, giving technicians the right equipment to complete each repair order efficiently,” said Peter Richardson, key accounts manager for Car-OLiner. Visit www.car-o-liner.com for more information.
34 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
and when transferring from container to container. Keep containers on the ground when filling and not on the bed of the truck. Use grounding wire when necessary. Keep nozzle in contact with can during filling. Do not fill containers over 95% to allow for expansion. Spilled gasoline must evaporate before containers are put on the truck. * Containers must be closed so as to minimize the risk of spill and creating a fire hazard. * Spill proof spouts also lock in vapors so as to avoid vapor release while in storage. Don’t overfill gas tanks on automobiles. Keep fire extinguisher close by! * Transport truck must have a spill kit available with a trained operator on containing, cleaning, and proper disposal of spill absorbent. * Studies at Worcester Polytechnic Institute’s Department of Fire Protection Engineering, as reported by NBC News in late 2013, have indicated that under certain conditions, plastic cans are vulnerable to fires with an explosive force. The conditions that present the higher risk include having a very small amount of gasoline (a few
teaspoons) inside the gas can, cool temperatures, tilting the can at 42 degrees (typical pour angle) and of course a spark! The employees should be trained to avoid these risky conditions and maybe even buy metal cans in the future. http://www.nbcnews.com/news/investigations/watchgas-can-explode-lab-test-v21744014 CA Air Resources Board (CARB): As of July 1, 2007, all Portable Fuel Containers (PFC) sold in California must be certified by the Air Resources Board as meeting lowemission standards and regulatory requirements. This regulation is applicable to manufacturers and retailers who place the gas cans in the stream of commerce. Only containers of 10 gallons or less are covered by this regulation, so the sale of a 25 gallon gas caddy for shop use is exempt from CARB regulations. The following table provides a listing of those CARB approved containers certified for sale. http://www.arb.ca.gov/consprod/fuel-containers/pfc/eo/eo.htm Summary: CA based businesses have only CARB approved containers available. Other states may use these
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CARB approved containers with vapor locks that are spill proof and emit negligible flammable vapors and hence, are safer. Training in hazardous materials, including information on risks associated with plastic cans, should be provided to employees. Following safety and operation instructions on the PFC is also mandatory. Sam Celly has trained auto dealers regarding EPA/OSHA compliance in 9 western states since 1987. Celly was the first staff engineer at KPA after earning his Bachelor’s of Engineering degree and later, his MS degree in Chemical Engineering (School of Mines & Technology). In 1997, he received his Doctorate of Jurisprudence from Southwestern University in Los Angeles with emphasis on Labor & Environmental Law. Sam is a Certified Safety Professional and has served as the Chair of the Law Committee and Environmental Issues Committee of the American Industrial Hygiene Association (AIHA). Additionally, he is a member of American Institute of Chemical Engineers (1985) and the AIHA, where he is the President of the Southern California Section. Send your comments to sam@cellyservices.com.
ABRA Acquires 13 Repair Centers in Charlotte, NC
On March 7, 2014, ABRA Auto Body & Glass announced the purchase of all 13 Wilburn Auto Body repair centers in the Charlotte, NC, metro area. ABRA now has 145 company-owned locations and 48 independently-owned franchises for a total of 193 collision repair centers in 17 states. Don Wilburn, founder and CEO of Wilburn Auto Body, embraces the acquisition. “This is a significant milestone for me. Wilburn Auto Body has served Charlotte since 1975. I have complete confidence ABRA will continue the legacy of delivering top-notch customer service and repair solutions to our customers and the community.” Building on its increasing success, ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industry-leading operating system.
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sheet. Insurers pay a flat fee per estimate for the service, Weisberg said. He emphasizes that his company produces “visual estimates” only. definitions of common terms used in How do Snapsheet estimators encollision repair and auto insurance sure their estimates comply with varclaims; automaker position statements ious state laws regarding use of on vehicle safety systems, counterfeit non-OEM parts, etc.? or salvage airbags, etc.; and videos “There are some states where we such as Honda’s demonstration of a absolutely cannot write in,” Weisberg mistimed airbag’s impact on a watersaid. “But what we pride ourselves on melon. is writing accurate estimates. Not only — Ten insurers (including Farmaccurate to fix the car but also acers, USAA, Chubb and MetLife) cording to a carrier’s guidelines. So are offering a branded app we spend a lot of time with the carri(http://tinyurl.com/Snapsheet) through ers calibrating with their claims orSnapsheet (www.Snapsheet.com) that ganization how they want us to write enable “self-service” claims for custhe estimates. They review a lot of our tomers. Snapsheet CEO Brad Weisestimates to make sure we’re writing berg said when an insured calls to according to plan.” report a loss, the insurer can offer them Prior to Snapsheet, Weisberg was the option of using the app to upload the founder in 2011 of BodyShopsix to 15 photos of the damage. EstiBids, which enabled consumers to upmators at Snapsheet’s offices then preload photos of their damaged vehicle pare an estimate based on the photos and receive quotes from nearby body and sends it back to the customer shops within 24 hours. within three business hours. “BodyShopBids was a great idea The customer has the option of a and a great way to start, but it wasn’t direct-deposit or can useon the matters a real business,” Weisberg said. “This Give uscash-out, your opinion affecting the industry. app to schedule an appointment with is needed in the industry and this is one of the insurer’s DRP shops. Supwanted by consumers, so it’s a perfect plements are handled through Snapfit.” Continued from Page 32
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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 35
On Creative Marketing
A Missing Hat In Most Shops with Thomas Franklin
By now most shop owners know the advantage most new media people collision repair world is changing rap- lack. Your ten years or more of accuidly. Last month I wrote about the Sci- mulated customer contacts are a solid, Fi Shop of the Future. New materials experienced crowd. Now the time has and new smart cars require new skills come to maximize that resource. It’s time to take a new look at and new technology. But what is changing even faster is the way peo- your professional image. Unlike servple communicate with one another. ice stations and mechanical shops, Facebook’s recent purchase What- your customers don’t come in for regwith DickofStrom sApp for 19 billion dollars to enhance ular maintenance or simple battery the mobile segment of its 1.2 billion and tire purchases. In a sense they’re users says that mobile communication somewhat like the family doctor between users may become the pre- whose patients come in for annual dominant way people communicate in checkups and exams. But the collision the future. But how many shops em- shop owner is more like a surgeon ploy someone solely for the purpose who only sees a patient when a major of connecting with this segment of the operation is needed. And so much of population? And is there any good your marketing must be similar to that of the surgeon or other professionals reason to do so at this time? My answer would be that it all who only see clients in extreme times depends on how much a shop’s busi- of need. How do they build a reliable Leewith Amaradio Jr.base? ness depends onwith connecting rela- client Many professionals must rely tively young vehicle owners and drivers. Older customers are usually heavily on client referrals and conmore affluent and drive higher end ve- tacts. To build on these, most seek to hicles. If a shop maintains a database join clubs, associations and charitaof at least ten years of past customers, ble organizations that their clients the odds are good that more than half frequent or belong to. If they belong of those customers is older and possi- to a particular religion or philosophbly less tech-savvy. More importantly, ical group, they will participate in these prior customers and their that group to have an opportunity to friends, families and contacts may meet with various members and bemake up the biggest part of your fu- come known as a specialist in their with Sheila Loftusspecific field. High-priced profesture customer base outside of insurance and dealership referrals. As the sionals like CPAs, lawyers and surnew market becomes more and more geons can afford to invest serious tied to websites, Facebook, Twitter time in developing a deeply personal and other media, the general game de- relationship with a potential client. A pends on who can come up with the typical body shop owner can’t afford most captivating message and images to dedicate substantial time to any on the new media. But you have an one potential collision repair cus-
Opinions Count
Action Counts
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
tomer. So how can a shop owner do the kind of depth marketing that will gain the loyalty of this kind of reliable referral source? One shop owner in the California San Fernando Valley had a wall full of contacts. He belonged to the Knights of Columbus, the Sheriff’s Supporters League, and the American Legion. He sponsored a Boy Scout Troop, a Ladies Auxiliary and several school sports teams. It sounded like this guy was everywhere and his volume of business attested to the effectiveness of his efforts. How did he do it? Obviously not alone. Later I learned that his sister had started a woman’s business referral service. His son was active in the business at a young age. In general I don’t think he had paid P.R. people doing any of this work, but it’s not much of a stretch to consider that possibility. Family is great if you have it, but if not can it be cost-effective to employ a real public relations person
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
Your Turn
Zurich Insurance Cuts Jobs to Boost Profitabiltiy
Zurich Insurance Group will cut about Senn said that Zurich would in800 jobs globally to save around $250 vest in global corporate and mid-marmillion per year by the end of 2015 to ket business and its high-margin retail help reduce costs and Janet improve Chaney prof- insurance lines, while turning around with itability. or exiting non-core, underperforming The job cuts, which are equiva- insurance businesses. lent to 1.4 percent of its total headZurich also pledged to grow opcount, will remove management layers erating earnings through 2016 by rebetween the group and its business ducing complexity, as it lowered its units. Customer-facing activities will target for return on equity from 16 to not be affected. 12–14 percent through 2016. “We continue to make significant Senn stressed that Zurich is strivprogress towards our strategic goal to ing to be at the upper end of that goal make Zurich a focused and more prof- and that he would be disappointed if itable business,” said chief executive, the company was still at 12 percent in Martin Senn. three years.
Shop Showcase
Industry Overview with Janet Chaney
36 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
to handle this in-depth membership and schmoozing activity? Many businesses calculate the lifetime value of a customer. Figuring one collision repair every 3-to-5 years generates an approximate number. But this ignores the people in that customer’s surrounding universe. The opportunity to specifically refer a repair facility just when an accident happens is quite rare. That’s why the P.R. person is needed to amplify the praise of a satisfied customer in a group. This marketing person must have the ability to speak for the shop at groups, community events, company meetings and more. He or she should be of a comparable age to the prospective customers, with a background in sales and public speaking but with enough familiarity of the collision repair shop to present a credible story and reason to patronize the shop. As the crowd turns to social media, personal contact still has the advantage.
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www.fordparts.com/helfman www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 37
CIF is Now the Charitable Conscience of the Industry by Chasidy Rae Sisk
On January 16th, the Collision Industry Foundation (CIF) held their fourth annual gala fundraiser in Palm Springs, CA. This was the first time Bill Shaw the event was not held in Las Vegas in conjunction with CIC’s fourth quarter planning meeting, but according to CIF President William Shaw, the gala was very successful and exceeded CIF’s expectations. Nearly 100 people attended the two-hour cocktail reception at Lulu’s Bistro, and this year’s event saw an increase in the number of underwriting sponsors showcased. CIF began by selling raffle tickets at the door, a venture that raised $820. They also held a silent auction for eight items, including electronics and even an Indy Car Race Package. The auction generated over $4000. CIF’s goal was to raise $25,000, but they exceeded this goal by raising $32,000. The proceeds from the event will be added to the organization’s Disaster Relief Fund which is used to support industry participants who are impacted by natural disasters. This annual event is a vital part of their efforts to collect donations, and Shaw sees it as a “great opportunity to create awareness and let the industry know how to participate and that CIF exists to help when disaster strikes… we are really creating good momentum moving forward.” On March 12, the Board of Trustees met in Chicago to discuss current disaster needs and fund allocations. In addition, the Trustees established its goals and plans for the next 12 months. CIF is also pleased to announce that two new Trustees were just elected. Casey Steffen with Saint-Gobain Abrasives and David Henderson with AutaExplore/Autowatch will join the Board and work with the Foundation to carry on its initiatives. CIF was created in 2001 by the National Auto Body Counsel (NABC) as a national non-profit organization to collect and distribute charitable funds.
The first campaign they supported was Montana’s Camp Mak-A-Dream, a program dedicated to helping children and teens suffering from cancer, and they collected over $500,000 for this cause in their first years of operation. The funds were used towards building an on-site health care facility for the camp, and in 2005, CIF supported Camp Mak-A-Dream yet again by donating funds to help purchase a bus for the program. Since beginning, CIF has supported a number of campaigns, planning and implementing various projects. They supported a three-year campaign called “Crash Hunger” that focused on raising funds to feed Americans. Another project, in 2008, was “Blanket the City: Detroit,” a fundraising effort to support the city that was so disproportionately impacted by economic turmoil. In their attempt to help a broad base of organizations providing vital services to the city, CIF made donations to the Children’s Home of Detroit, Clean Downtown Detroit Partnership and Gleaner’s Food Bank. In addition to providing donations to Recycled Rides, CIF part-
nered with Skills USA and the World Skills Competition to sponsor the US Collision Team, sending two competitors to the World Skills Competition in Helsinki, Finland. CIF also participates in “Leave Something Behind” initiatives throughout the year; while attending CIC meetings around the nation; this program serves as a gesture of gratitude to the host city. Over the years, this effort has yielded book donations to a Portland library and monetary donations to Children’s Hospitals in Phoenix, AZ, and Washington DC, as well as Toys for Tots in Las Vegas and the Utah Food Bank in Salt Lake City. Though these programs are more than sufficient to illustrate that CIF is “the charitable conscience of the col-
38 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
lision repair industry,” when Hurricane Katrina struck LA and MS in 2005, CIF’s Board of Directors created the Disaster Relief Fund to aid victims of natural disasters. Their fundraising efforts allowed them to aid over 100 collision industry professionals impacted by Katrina. This project was so successful that CIF decided to make it an ongoing program and through their efforts, they’ve supported victims of many natural disasters, including Hurricane Irene, the tsunami in Japan and, most recently, Superstorm Sandy which devastated the entire east coast of the US in the fall of 2012. All of these programs support CIF’s mission “to collect funds from all facets of the collision repair industry to be distributed to repair professionals chosen by the Foundation’s selection committee.” CIF’s assistance is limited to individuals and not provided to businesses or organizations. A committee reviews all requests and distributes funds based on individual needs. Those interested in helping are encouraged to make donations, join CIF’s volunteer committee or aid with Victim Location/Assistance.
Currently, CIF’s short-term goals include creating awareness about who CIF is, as well as their mission and vision – to bring awareness and emergency relief to collision repair professionals. Their primary focus remains helping those in need.
Further down the road, Shaw hopes CIF will establish a sustainable fund with “enough money in reserve to help those in need and help subsidize the costs not covered by insurance in the event of a natural disaster. In the meantime, we will continue to support various campaigns in our efforts to reach out and engage the collision repair industry so they can give something back.” Regarding challenges that CIF faces in order to maintain operations,
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Shaw mentions the number of those who need assistance, but he feels that the resolution to this dilemma is “to articulate our message and inform contributors how their donations will be used to support the industry.” CIF is run by a Board of Trustees, comprised of 12 leaders from all segments of the industry. This group is still in the planning stages of their 2014 agenda, but Shaw hopes to be able to define this year’s goals by the end of the first quarter. Shaw succinctly wraps up CIF’s mission and goals as follows: “We want the collision repair industry to be aware that there are people in need and to encourage them to get involved and give back. We are trying to create a culture that gives back because the benefits are tremendous for both sides. The message we want to share is this—whether you’re directly involved with CIF or not, it’s very important to get involved with local organizations and to support charities.”
Collision Industry Foundation (CIF) PO Box 3007 Mechanicsville, VA 23116 855-4CIFAID (855-424-3243) http://collisionindustryfoundation.org
Continued from Page 17
MSCRA
ance they are experiencing from the repairers. I ask every shop owner to start making business decisions based on good business principles and stop giving in to fear. I encourage them to market their business and their conviction to serve the consumer over the insurance industry. When the public knows what a shop stands for, they will pick the independent shop out of the maze of consolidators… By educating our shops and consumers and making repairs that don’t sacrifice quality for insurance profit, we will grow strong businesses with loyal customer bases.” MSCRA also faces many challenges similar to those impacting other associations across the country. Mosley acknowledges these difficulties, even as he looks forward to a brighter future: “Probably the biggest challenge is helping a shop owner overcome the fear that he will be ostracized by the insurance industry for coming to the association meetings, much less being a paid member. Beyond that, we are faced with keeping
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the interest of the shop owners by providing a tangible benefit for the money they spend on their membership. This isn’t going to be a problem in the near future. With all the changes our industry is facing relating to vehicle construction and repairability, the need for knowledge will generate the interest. We are committed to providing the information to ensure our members can succeed.” At MSCRA’s last meeting, they addressed the need to secure services from a company to inspect member shops and identify any concerns that could result in problems with OSHA. MSCRA stresses the importance of a safe, healthy workplace, and identifying the cause for concern, Mosley explains “OSHA is working to identify isocyanate hazards, and we don’t want any shops’ employees to suffer from isocyanate sickness nor do we want the shop facing fines that could have been avoided with the proper training. The association also recently furnished members with information on new tool and equipment requirements, provided by Ford, pertaining to the introduction of the 2015 F-150 with its aluminum body and high-strength steel frame. MSCRA has already
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begun setting up I-CAR training for the aluminum F-150 to have available when the vehicle is released late this summer. This year will also see the continuation of the association’s activities against insurer-mandated parts procurement programs as Mosley and “many members of our association feel the PartsTrader scheme and the direct repair programs are illegal and are a tortious interference in our business relationships which leads to a direct violation of our fiduciary responsibility to our customers. “Because of that, we are dedicated to taking the fight on for the consumer and for our right to do business to the highest courts in the land. We are working tirelessly to expand this effort from coast to coast, and the reception from our industry has been a humbling experience for all. Many brave men and women are paving the way for all who stay in the repair business and those who come after we are gone.”
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I-CAR Has Implemented a New Initiative to Close OEM Informational Gaps OEM repair information today is good, but not perfect, says Jason Bartanen, director of industry technical relations for I-CAR. It needs to be better and more readily accessible for shops.
Bartanen says there is significant inconsistency between auto manufacturers regarding the type and amount of information they distribute. Some manufacturers have a wealth of information available, while others don’t have any collision repair information available in the U.S. market. I-CAR held a series of discussions with a group of 50 auto manufacturers, shop professionals and insurers to outBartanen says the OEM informaline 13 standard pieces of information tion available today still isn’t comprethat repairers need access to from every hensive. Several gaping holes exist, a OEM. The list includes items such as problem causing shops and insurers to material identification, material remake procedural guesses on jobs with pairability guidelines, sectioning prono way to verify their judgments. Some cedures, seam sealer identification and shops have a hard time obtaining the location, and corrosion protection reinformation at all, Bartanen adds. Vequirements. hicle manufacturers have strong distriThe broader impact of the matrix, bution methods for their affiliated though, is development of more comdealerships, but don’t have an efficient prehensive OEM repair manuals, Bartactic to deliver that same information tanen says. Members of the RTS to independent facilities, which repair a initiative have communicated the gaps majority of collision-damaged vehito every OEM to help release more incles. formation, many of which are now I-CAR last summer launched a working on producing those standard new Repairability Technical Support items for the industry.The RTS created (RTS) initiative to tackle the proban OEM technical information matrix lem—a four-member team dedicated that outlines which manufacturers proto communicate with auto manufacvide which pieces of information. That turers to fill the informational gaps and document is a major benefit to repairdistribute the information to the indusers, Bartanen says, because it’s a single try at large. The initiative—which will resource to identify whether the inforbe a continual, ongoing effort moving mation they need exists, and where forward—is expected to improve work they can find it. The information maand productivityEdition? for independtrix will be updated and expanded as to quality this Southwest ent shops by providing centralized acnew information becomes available, cess to more consistent, detailed and and is viewable for free at rts.i-car.com. standardized repair information. Doug Craig, collision repair manautobodynews.com A new website has been created, ager of the Chrysler Group, for examrts.i-car.com, which is designed as a ple, says he is working with Chrysler’s “centralized, comprehensive distribuvehicle design and materials engineers tion mechanism” for OEM information, to update and distribute new technical nessBartanen with says. Promote your businessrepair withbulletins to reflect the identified featuring an exclusive article featuring All technical-based information informational gaps. Many other OEMs from every auto your manufacturer—paint, are doing the same. services. products or services. materials, parts and processes—is Another notable improvement listed on the website and stored in the came from Kia—a company that hisdatabase. Rather than linking users to torically hasn’t released collision inforan auto manufacturer’s website, the inmation in the U.S. market. Bartanen formation is housedCall directly the says the company now has a “highly or details! forondetails! RTS website in an easy-to-read format. comprehensive” collision manual avail251 The website also 800-699-8251 includes all of able online for its Soul model. I-CAR’s latest technical briefs and OEM information sometimes daily articles. fails to provide specific necessary
steps to perform a recommended repair procedure, Bartanen says. OEM information provides shops with highlevel processes to make a repair, but lacks detailed information to make them correctly. For example, an OEM procedure might recommend “making and dressing a GMA MIG plug weld.” But it may not specify how far to grind the weld, how to dress it, or the grit of sandpaper to use. The RTS website includes an online informational communication portal for shops. It’s a technical inquiry submission process that provides the industry with a strategy to communicate and resolve repair gaps they encounter, Bartanen says. Shops can submit technical inquiries, and the RTS team initiates communication with auto manufacturers to answer questions and share information. All technical inquiries and findings are sorted and searchable by vehicle manufacturer and subject matter. OEM Standardization Bartanen says OEMs use different formats, phrases and terminologies in their repair manuals, which makes them dif-
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ficult to read and causes shops to misinterpret directions. All OEMs have been solicited to develop more standardized communication processes. Craig says auto manufacturers understand the confusing—and sometimes contradictory—information they produce, and most companies are in favor of working together to simplify and unify their procedures. The RTS initiative is not necessarily meant to address the industry’s repair standards issue, but it’s one direct improvement that has resulted from those discussions, says Bob Keith, treasurer of I-CAR’s international board of directors and multi-store director for CARSTAR Auto Body Repair Experts. And it will prove to be a major benefit for shops, he says. Repairers will have access to more robust information and a more efficient strategy to clarify technical questions to improve performance on the shop floor. In addition, Keith says the RTS initiative has opened better lines of communication between the industry and auto manufacturers to boost responsiveness surrounding informational needs.
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Historical Snapshot
—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.
20 Years Ago In The Collision Repair Industry (April 1994) with John Yoswick
(Retired Automotive Service Associ- ple, Matejzel said that if replacement ation lobbyist Don) Randall told the of a lower control arm or other frontgroup that current antitrust laws are suspension part is entered on an with Chasidy Raeend Sisk strangling collision repairers by giv- estimate, the system should in some ing insurers an unfair advantage to way prompt the estimator to also inmeet and to set policy language and clude an alignment on the estimate. contract definitions. In essence, he Matejzel said the industry inforsaid, insurers have the ability to set mation providers market prices while collision repairers are focusing much with Chasidy Rae Sisk do not. of their efforts this “Our system is control losses – year on Y2K comwhich sounds like a pretty good idea,” pliance issues. But Randall said. “But that system is dehe said his comstroying the free enterprise system in mittee – which inthis state.” cludes insurers Bob Matejzel Insurance policies, he said, are and shops – will withthat Chasidy Raecontinue Sisk to meet with the estimating laden with loopholes give insurers the opportunity to change a $100 system providers to discuss these deductible into one costing much changes throughout the year. more. “If you’d been at one of this com“In the event of a loss, ‘We will mittee’s meetings, you’d have actually make you whole,’ but who decides seen a group of repairers and insurers Chasidy Raestand Sisk up and face the information what is whole,” with Randall said. “You have a variable. If you take the car to providers and say with one voice, the shop of your choice, and it isn’t ‘This is what we want,’” said CIC one they choose, they may say to you, Chairman Dale Delmege of the com‘You just pay the difference between mittee’s meetings earlier this year. the one you picked and the one we “That was a magic moment in this inwith Chasidy Raedustry.” Sisk picked.’ They may also say, ‘We don’t pay for…’ or “It is not customary…” Linda Holcomb said the CIC or ‘It is not usual and ordinary.’ They Write It Right Committee’s discusare now engaging in ‘dancing around sions with the estimating system the contract.’” providers has also focused on the need Randall railed against the current to make the systems easier to use. direct repair programs, saying they “Our estimators are really spendwith Chasidy Rae Sisk breed corruption and cheating. ing a lot of time writing estimates and “It’s wrong and it ought to be we’d like to see that done quicker,” stopped,” he said. “But it will not stop she said. until this industry gets organized.” – as reported in Autobody News – from coverage of a forum in Portland, Ore., sponsored by Fairness 10 years ago in the collision repair with Chasidy Rae Sisk in Auto Insurance Regulations (FAIR) industry (April 2004) A videotape of an interview with one vehicle owner about his experience 15 years ago in the collision repair with an auto claim generated some industry (April 1999) Could the computerized estimating discussion when shown at the Collisystems be improved to improve the sion Industry Conference (CIC) in Chasidy RaeNashville Sisk largely because of who the ease and accuracywith of estimating? Three Collision Industry Conference (CIC) vehicle owner is: Joe Maxwell, the committees continued exploring this lieutenant governor of Missouri. issue at the CIC meeting in Denver in “The thing I was most amazed April. by was how quickly I was contacted Bob Matejzel of the CIC Esti- by [the other driver’s] insurance mating Committee said his group has company, which almost immediately identified an initial list of about a called me and said they already had dozen procedures that it believes the the check in the mail to pay for my estimating systems should automati- automobile,” Maxwell said. “I asked cally remind users about. As an exam- ‘How did you even know how much
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damage was done?’ They said, ‘Well, from the report.’ So I was offered a settlement before anybody even viewed the damage to the vehicle.” Maxwell said that while the insurance company representatives were pleasant and that he never felt harassed, they did refer him to a shop in Columbia, Missouri, 45 miles away. When he told the insurer the first check they sent would not cover the cost of repairs, they made an appointment to send someone out to look at the vehicle at his office. Maxwell doesn’t know if that happened. The shop received a revised estimate – still insufficient to cover the cost of repairs – but Maxwell said the adjuster never contacted him. “They claim the guy came and viewed the car, but he never came into the building, never jacked the vehicle up,” Maxwell said. “The car was parallel parked on the street and the dam-
age was on the driver’s door side so the guy would have had to lay down on the street to look under the car, which wouldn’t have been safe. And clearly without opening the door, which was locked, they could not have seen all the damage. So that troubled me some.” Maxwell said he’s concerned that many people in his situation would have accepted that first check and “in doing so accept settlement on the claim and then discover it wasn’t enough to have a professional, quality job done.” He said he’s also concerned about insurers steering work or owning shops. “The idea of having an insurance company that would control where I repaired my car is kind of like having a fox watch the chicken house,” he said. “You may wind up with less chickens.” – as reported in Autobody News
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5 years ago in the collision repair industry (April 2009) Under a settlement agreement reached last week, LKQ Corp. will be the only company allowed to sell certain nonOEM collision parts for Ford vehicles. The non-OEM parts involved are those designed to replace parts for which Ford owns design patents. As part of the agreement, LKQ will pay Ford a royalty fee for each part sold, and has agreed not to challenge the validity of Ford’s design patents during the term of the agreement (which extends until October 2011 but may be renewed). Other details of the agreement were not disclosed. Ford said the settlement “does not endorse the quality or use of nonOEM replacement parts sold by LKQ Corp.” The agreement ends two legal battles Ford has waged to protect its design patents on collision parts for its F-150 pickup and Mustang. It also is likely to split the non-OEM parts industry which has been working as the “Quality Parts Coalition” to limit automakers’ rights to hold design patents on collision parts. – As reported in CRASH Net-
work (www.CrashNetwork.com), April, 2009. LKQ currently faces a lawsuit from Chrysler over the sale of parts that the automaker claims violate its design patents. The Quality Parts Coalition continues to back proposed federal legislation that would slash (from 14 years to just 30 months) the time that automakers can use design patents to prevent other companies from producing replacement crash parts.
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Freak Tire Accident Kills Gainesville Body Shop Employee, Injures Shop Owner, Driver Also Shop Worker
Ivan James Sandquist, age 33, was killed in a freak accident on the morning of March 3. The Williston Police Department (WPD) reported that they received a report of two men being injured while working at Absolute Auto body, located at 104 NW 10th Ave. Upon investigation, it was discovered that Patrick Woodard of Gainesville, who repairs cars at an auto shop in the Raleigh area of Levy County, was driving a 1999 Toyota northbound on US-41. As the vehicle approached Absolute Auto Body, the left front tire broke free from the vehicle and traveled north on the west shoulder of the highway. The tire struck a driveway apron, sending it airborne. The tire jumped over a six-foot chain link fence, where it then struck Sandquist, killing him instantly. After striking Sandquist, the tire struck the friend he was standing and talking to, James E. Fender, 45, the owner of the Absolute Auto Body Shop. Fender sustained serious injuries and was airlifted to Shands Hospital in Gainesville. Williston Police Chief Dennis Strow said the incident was being in-
vestigated, and that he asked for help from the Florida Highway Patrol (FHP). An FHP homicide investigator will be assisting in trying to figure out what happened. “We asked for help from FHP because they have so much experience in these kinds of things.” They hope to determine if the cause of the accident was a speed factor or a mechanical problem. Chief Strow added that the vehicle, which Woodard had been driving at the time of the incident, had been taken to Woodard (since he works at an auto body shop) to be checked out. He said that Woodard had not done anything to the car, including the wheel, which came off of the vehicle, prior to taking it for a test drive. Strow said the tire did not explode and was intact on the wheel. A memorial was held for James Sandquist at Knoff Funeral Home in Williston at 4 p.m., Thursday, March 6. His mother requested that in lieu of flowers, donations be made to the American Diabetes or the American Heart Association.
NACE/CARS and Industry Week 2014 Update: Show Expected to Double in Size
The first round of exhibit space draw for the International Autobody Congress and Exposition (NACE) and the Congress of Automotive Repair and Service (CARS) 2014 show is complete, and more than half the exhibit floor is sold out. “This represents a significant change in events and a strong commitment on behalf of the automotive market to support the only national show solely dedicated to both the collision and service repair industries,” said Dan Risley, ASA President. “Last year, we sold approximately 24,000 square feet. We’ve already surpassed that by 20 percent in the initial space draw and are on pace to sell out. The show will feature more than 50,000 square feet of exhibit space and another 30,000 dedicated to live demonstrations and show cars.” Companies that booked space come from all segments of the collision and mechanical repair markets, including OEMs, parts suppliers, estimating system and information providers, insurance companies, and training companies. NACE/CARS will take place Monday-Saturday, July 28-August 2, 2014, at the Cobo Center in Detroit,
MI, and will be held in conjunction with Industry Week 2014, a series of automotive repair industry events and co-located meetings, including board and other private meetings, Collision Repair Education Foundation annual golf fundraiser, Collision Industry Conference (CIC) quarterly meeting, Inter-Industry Conference on Auto Collision Repair (I-CAR), gala 35th anniversary networking reception, Canadian Collision Industry Forum (CCIF) meeting, NACE/CARS expo, business and technical sessions, MSO Symposium, Mechanical Symposium, onsite I-CAR training, and technical presentations. In addition, the ASA and Alliance of Automobile Manufacturers (AAM) jointly announced on March 7, 2014, that the inaugral OEM Technology and Innovation Expo will be held on August 1, 2014, as part of Industry Week. The OEM Expo will include panel discussions with OEM experts, product and application demonstrations, and connected vehicles to give attendees a hands-on experience. For additional information, visit naceexpo.com.
www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 43
Education Foundation Doubled Down on Its Future in 2013 by Chasidy Rae Sisk
The Collision Repair Education Foundation (CREF) is always busy working on ways to improve the prospects of the industry, and the first quarter of 2014 is no exception as they calculate 2013 donations, collect applications for their Student Scholarship and School Makeover programs, and prepare for their 2014
Summer Golf Fundraiser. Brandon Eckenrode, Director of Development for CREF, eagerly shares some information about their recent tallies and future plans. As 2013 drew to a close, donations to CREF for the year totaled $9.4 million, nearly double the amount of donations as they received in 2012. Of those contributions, 10% was received in monetary contributions with the remainder being received via in-kind product donations, such as tools, equipment, supplies, parts and other donations to assist instructors in their collision repair programs. When questioned about the reasons behind this increase in contributions to CREF, Eckenrode states “year after year, we are able to reach more and more industry businesses and help communicate to them about how we are looking to support high school and college collision school programs, instructors and students. Knowing that these students are the future professionals of the industry, our supporters understand how their technical education is vital, and with school instructors working with limited/reduced budgets, the industry has really stepped up to support them through our organization.” The monetary donations received in 2013 will be used to fund CREF’s projects, such as their scholarships for students and school grants, as well as
to keep the organization running. The 2013 tallies help Eckenrode remain optimistic about CREF’s fundraising efforts for 2014: “we anticipate another great year with both monetary and inkind product donations. I would invite and challenge repair facilities, especially the independent owners, to consider an annual tax-deductible donation of $500, $750 or $1000 to the Foundation. Through strength in numbers, if even a quarter of the total number of repair facilities were able to make this donation, we would be able to completely transform collision school programs across the country and work towards the graduating students being properly trained and ready for entry-level work. Owners across the country have expressed their desire for productive, efficient and ‘ready to work’ entry-level staff, and we can make this possible by all working together.” Next up for CREF will be awarding their student scholarships and annual school makeover grants. The deadline for scholarship applications ended in the middle of February, so the applications are now being reviewed by the Board of Trustees Selection Committee, and CREF plans to announce the winners later this spring. The scholarships are available to high school seniors and collegelevel students who have studied collision repair for at least one semester. CREF has over $200,000 reserved to be awarded as various scholarships and tool grant opportunities for students looking to enter the collision repair industry. The deadline for CREF’s School Makeover Grant falls on June 6th, but Eckenrode encourages applicants to begin the process well ahead of time since a great deal of information is requested. He enumerates, “the Makeover application requires many different pieces of information; however, it provides our Board of Trustees Selection Committee a great overview of the program and the budget that they are working with to provide the best technical education possible for the students. Our
44 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com
Makeover Grant is available to nonprofit high school and college collision school programs, and the grant is meant to help those collision programs who are facing a reduced budget and need additional tools, equipment and supplies for their program.” Since 2008, when the CREF began its philanthropic focus, the collision industry has provided over $20 million in various types of donations, and though CREF anticipates that this number will continue to increase over the years, Eckenrode believes “it’s important for the industry to know that, in addition to the support we are providing to schools, we are also getting actively involved in helping to bridge the gap between graduating and employment. We want to ensure that students graduate with the entry-level skill sets that employers are looking for and make these students aware of the various employment opportunities there are in all segments of the industry. By CREF providing such tools as a donor ‘entry-level employment job board’, we can not only showcase these opportunities to students but
also to parents, guidance counselors and school administration to show that these collision programs are worthwhile to support and invest in.” As such, Eckenrode is pleased that CREF will be presenting and exhibiting at the American School (Guidance) Counselor Association’s annual conference this summer where guidance counselors from around the coun-
Brandon Eckenrode (l) of CREF and Mark Algie of 3M
try will gather. During the conference, CREF plans to explain the “worthwhile career opportunities collision
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students have within this industry and why guidance counselors shouldn’t think badly about a technical education for students.” This summer, CREF will also be busy with their 13th Annual Summer Golf Fundraiser, to be held the afternoon of July 31st in conjunction with Industry Week in Detroit. The event will take place at the Northville Hills Golf Club outside the city, and CREF anticipates “another sold out crowd with funds being raised going towards assisting us in supporting high school and college collision school programs, students and instructors. The event has gone from raising $19,000 in 2009 to averaging $75,000 the past two years. The Education Foundation has tried raising the quality of the event year after year; however, this increase in funds raised has been made possible by our sponsors and attendees.” The funds raised at the golfing
event will aid CREF in providing student scholarships and School Makeover Grants in the future. In addition to offering a nice afternoon of golfing fun and networking, CREF sees the events as a chance to “communicate to industry leaders
about how we are making a different in collision school programs.” Eckenrode encourages anyone interested in participating in the golf fundraiser as a player or sponsor to contact him as soon as possible as the event has historically sold out months in advance. Those who are unable to attend can still participate by purchasing golf balls for CREF’s helicopter
matters affecting the industry.
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51
n.
On March 8, 2014, a group of four
wearing masks resembling Want to Contribute to vandals this Southwest Edition?
Michigan Democrat, John Dingell, an ardent advocate of the auto industry who has held his seat in Congress since 1955—longer than any other person in history—said that he will retire from the House of Representatives, a senior House Democratic aide said. Dingell first entered Congress to finish his late father's term and went on to serve nearly six decades. “I'm not going to be carried out feet first,” Dingell, 87, told The Detroit News. “I don't want people to say I stayed too long.” Dingell said that he will not seek re-election in November 2014. In his heyday, Dingell wielded power as chairman of the House Energy and Commerce Committee and has shaped major laws for cleaner air and water, protecting endangered species, and providing health care for poor children. Dingell also expressed disappointment with Congress. “I find serving in the House to be obnoxious,” he told The Detroit News. “It's become very hard because of the acrimony and bitterness, both in Congress and in the streets.”
worse shape than when they dropped them off for repairs. Karol said that he has filed an insurance claim and is repairing the cars that were damaged.
those of the band Kiss did an estimated $40,000 worth of damage to about two dozen vehicles parked the publisher@autobodynews.com Maaco Auto Body Shop in Saddle Brook, NJ. The group can be seen on surveillance video jumping on hoods, sprayPromote your businessingwith your business with graffiti, andPromote smashing in windows. article an exclusive article featuring Police said thatantheexclusive suspects appear to featuring be men in their teens or early 20s. your products orAservices. your products or services. surveillance camera sitting above a Mercedes caught the men as they set to work, destroying it using metal pipes, So far, there is no motive in the shovels, spray paint, and a fire extincase and police are asking for help in guisher. The MercedesCall is now in police CALL: Joe Momber for details! for details!identifying the masked men, hoping custody as they process it for prints. to make this performance their last. 800-699-8251 Shop owner, Walter 800-699-8251 Karol, said Call the Saddle Brook Police Detecthat he had to tell many of his custive Bureau at 1-201-587-2940 with tomers that their vehicles were now in any information.
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Auto Industry Champion, John Dingell (D), to Retire
‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing $40K in Damage
volvo Genuine parts Right Part. Right Price. Right Now.
golf ball drop. Up to 1200 numbered balls can be purchased to be dropped onto a course green via helicopter during the event. Whoever purchases the ball that lands in the hole will win 23% of the proceeds from the ball drop, an astounding $7000 gift card if all of the balls are sold! Winners do not have to be present, and this provides yet another creative method for CREF to raise additional funds during the event. Eckenrode is grateful to the collision repair industry for making CREF’s efforts possible: “I would like to thank the collision industry for making over $20 million in donations possible in such a short period of time. I am not aware of any other technical trade having a ‘Foundation’ type organization that supports their programs like ours does. Collision school programs are becoming the envy of other school programs as they see what type of support the schools are receiving through us, and we look forward to working together to take this organization to another level.”
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Minnesota Bill Proposes More Comprehensive Restrictions on Insurer Vendor Requirements A proposed bill in Minnesota, House File 2690 (HF 2690), seeks to amend Minnesota Statutes 2012, section 72B.092, subdivision 1 to include more stringent prohibitions against insurance company requirements placed upon repair facilities. Introduced by Representatives Joe Atkins, Greg Davids, Joe Hoppe, Debra Hilstrom, Jim Davnie and Melissa Hortman on Monday, March 3, HF 2690 changes two subsections of the existing law, including provisions the repair industry supported and were added into the law in 2007. The first amends adds a prohibition against insurance companies and their representatives from requiring that a vehicle be presented “… at a particular motor vehicle repair shop designated by the insurer” in addition to the existing ban against drive-in claim centers. According to Judell Anderson, executive director of AASP-MN, whose organization supports the bill,
this amend seeks to expand the existing prohibition on requiring vehicle owners present their cars at a drive-in because insurers have adapted to the existing prohibition by requiring vehicle owners to take their vehicles to a specific repair facility for inspection. “We’ve heard from our members that insurance companies now tell people to go to a specific repair facility to get their vehicle inspected,” said Anderson. “In many cases the insurer will actually have staff on site at the body shop one or two days a week, essentially running a drive in claim center in the repair facility. This section is really about combating insurance company steering.” The second amendment adds a section to the existing law that expands upon the types of requirements that insurance companies may not place upon repair facilities. The added section states that insurance company representatives shall not:
● specify or require any motor vehicle repair shop to utilize specific vendors, distributors, manufacturers, suppliers, business platforms, or internal processes in order to carry out vehicle repairs for an insured or claimant. This expands upon another subsection that was added into the existing law in 2007 that says insurance company representative shall not: ● specify the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the vehicle. This clause does not require the insurer to pay more than a reasonable market price for parts of like kind and quality in adjusting a claim In October 2013, AASP-MN filed a formal complaint with the Minnesota Department of Commerce requesting administrative and/or legal action to prevent State Farm from requiring that collision repair shops that participate in the insurer's direct repair program use the PartsTrader parts pro-
curement system based upon the existing section of the law. According to Anderson, the addition of the new section should help address numerous concerns AASP-MN members have with increasing insurance company requirements for specific vendors and business processes beyond the existing law that prohibits that activity for parts and materials.
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