April 2018 Southwestern Edition by Autobody News

36 YEARS

S OU THW E STEDI TIO N

AUTOBODY AZ / AR / CO / LA / NM / OK / TX / UT

PA Shop Owner Files $713,000 Lawsuit Against Progressive for Underpayment of Legitimate Costs by Stacey Phillips

Across the country, “insurers aren’t fully reimbursing consumers so they can have proper and safe repairs done,” according to Ron Perretta, owner of Professionals Auto Body in Pennsylvania. “It’s impossible for the shops to fix these cars properly [while] being paid what they are being paid,” said Perretta. “Their hourly rates are being suppressed and the repair operations that are needed to fix these cars properly have been suppressed.” He said insurers continue to

“bully” shops into lowering their rates and not performing operations required to bring the vehicles back to their pre-loss condition. After experiencing this first-hand for many years at his two Pennsylvania locations in Altoona and Duncansville, Perretta filed a lawsuit against Progressive in 2017. According to court documents, “Progressive had a contractual duty to the insureds and third-party claimants to compensate Professionals for the reasonable and necessary costs to return the covered vehicles to their preSee Progressive Lawsuit, Page 60

Utah Could Be 1st State to Fully Legalize Self-Driving Cars on its Roads by Lee Davidson, The Salt Lake Tribune

Utah could become the first state to fully legalize driverless, autonomous vehicles anywhere on the state’s roads under a bill that cleared its first hurdle March 14. And state officials say the good news is those cars will never drive while drunken, distracted or talking on cellphones. The House Transportation Committee voted 10-0 to endorse HB371, and sent it to the full House. Its sponsor, Rep. Robert Spendlove, R-Sandy, said it could attract more of the emerging au-

tonomous vehicle industry to the state. “There is a great opportunity because of Utah’s tech center … to really take a lead in this area,” Spendlove said. He said Arizona currently allows autonomous vehicles by executive order from its governor, and Michigan encourages testing of them. But Utah would be the first to enact laws allowing them on all roads and adopting liability and insurance rules. Spendlove said action is needed because “we’ve got autonomous techSee Fully Legalize Self-Driving, Page 16

AUTOBODYNEWS.COM

Vol. 36 / Issue 4 / April 2018

Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018

A federal judge in February declined in rejecting State Farm’s calls for to dismiss a $9 billion class action dismissal of the suit that whether or racketeering lawsuit against State not the Avery judgment should have Farm over the insurer’s alleged role been overturned, the vehicle owners in the election of an Illinois Supreme involved deserve to know they lost fairly. Court judge—setting the “Plaintiffs seek to vindistage for the latest trial in a cate their right to be judged decade-long battle involvby a tribunal that is unconting the insurer’s use of nonaminated by politics,” Judge OEM parts. Herndon wrote. The lawsuit claims The suit is seeking triple State Farm helped secure the damages of the Avery the 2004 election of Justice Lloyd Karmeier suit plus more than a dozen Lloyd Karmeier, and that Karmeier improperly participated in years of interest—a total of about $9 the reversal of a $1 billion judgment billion—for the 4.7 million vehicle against the insurer in 1999 in the owners represented in the original Avery vs. State Farm class action Avery suit. Trial is set to begin May 7. lawsuit. Without passing judgment on How did we get here? the merits of the current case, U.S. So how does a non-OEM parts lawDistrict Judge David Herndon said See Legal Battle, Page 14

Uber Halts Autonomous Car Testing After Pedestrian is Killed in AZ, First Known Fatality by Self Driver

ter: “Our hearts go out to the victim’s family. We are fully cooperating with A woman has died after being struck local authorities in their investigation by a self-driving Uber vehicle in of this incident.” It is believed that Elaine Tempe, Phoenix, AZ. The Volvo XC90 was operating Herzberg, 49, is the first pedestrian in autonomous mode when it hit the to be killed by an autonomous car. The incident occurred between Mill Avenue and Curry Road on the night of March 18. Police said the victim was crossing the road outside of a crosswalk at the time of the collision. The woman was taken to The autonomous Volvo XC90 struck a pedestrian as she the hospital, where she died crossed the road. Credit: ABC15 from her injuries. The National Transportation woman as she crossed the road, police said. A vehicle operator sat be- Safety Board said in a tweet that it is hind the wheel at the time of the “sending a team to investigate” the incident, but the car was carrying no incident. Uber had been testing its auother passengers. Uber said in a statement on TwitSee Uber Halts Car Testing, Page 20

by Alistair Charlton, GearBrain

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

Design and Format Changes at Autobody News

CONTENTS REGIONAL Airpark Collision Center in AZ Earns 2017 Angie’s List Super Service Award . . . . . . . . 10 ASA-CO Seminar Covers Planning Ahead . . . . 10

Assured Performance Network . . . . . . . . . . 26

No magazine can go 36 years in print without some updates and changes to freshen its appeal from time to

We’ve also made the type a bit larger for both our national and regional stories. We hope this provides

Ledoux - The 1930s – New Products and

AUTOBODYNEWS

an Insurance Company’s Realization . . . . . . 48 Phillips - Emotional Intelligence Is a Key

AUTOBODYNEWS.COM

Collision Works Opens Tulsa, Hills, OK, Facility. . 6 Extreme Twist Collision in Santa Fe, NM, Celebrates 20th Anniversary . . . . . . . . . . . . . 6 Gerber Collision & Glass Opens Repair Location in Colorado . . . . . . . . . . . . . . . . . . . 9 Greenville, TX, Auto Shop Students Work to Restore Teacher’s Dream Car . . . . . . . . . . 8

Element for a Successfully Run Body Shop . . 42

Is Embracing Training, More Stepping Up Needed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Sisk - In-House Money Makers: ASA Partners With Bosch for 2nd Webinar in Series . . . . . 55 Yoswick - OEM Info Websites Have Existed for 15 Years . . . . . . . . . . . . . . . . . . . . . . . . 40

Hail Damages Cars in Jefferson County, AR . . . . 9 Hodges Collision Center Expands to 5 Locations With Magnolia, TX . . . . . . . . . . . . 21 LGE Design Build Breaks Ground on Gilbert Collision Center in AZ . . . . . . . . . . . . 10 Michigan State, Texas A&M Studying Impact of Driverless Cars on Workforce . . . . . . . . . 59 New Look Collision Opens 1st AZ Location in Scottsdale. . . . . . . . . . . . . . . . . 15 Phillips - Father-Son Team Take Unique Approach to Foster New Talent in NM . . . . . 34 Registration Now Open for 2018 PBES Conference in Austin, TX . . . . . . . . . . . . . . . 16 Registration Under Way for Golf Fundraiser in Dallas to Support NABC Programs . . . . . . 12 SCRS Announces Details of Repairer Roundtable in CO, Hosts CFO of Chipotle . . . 12 Texas Watch Speaks on Auto Safety at HABA Conference . . . . . . . . . . . . . . . . . . . 6 Uber Halts Autonomous Car Testing After Pedestrian is Killed in AZ, First Known Fatality by Self Driver . . . . . . . . . . . . . . . . . . 1 Uber’s Self-Driving Trucks Now Hauling Freight in Arizona . . . . . . . . . . . . . . . . . . . . 18 Utah Could Be 1st State to Fully Legalize Self-Driving Cars on its Roads. . . . . . . . . . . . 1

NATIONAL

Attanasio - Do OE Certifications Really Provide Accountability, Transparency? . . . . . 48 Attanasio - Teresa Aquila Just Won’t Quit... Ever! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Attanasio - When Was the Last Time You Updated Your Website? . . . . . . . . . . . . . . . . 54 Ledoux - Collision Safety Consultants - Poised for a Great Future . . . . . . . . . . . . . . . . . . . . 24 Ledoux - OE Shop Certification Programs:

time. We’re no exception at Autobody News. Regular readers will likely have already noticed some look and feel changes to our print news magazine this month. The masthead on top of the cover page has been updated to be less dense and more ‘eye-inviting.’

1st Driverless Bus Deploys in CA After

www.autobodynews.com

Rules Update . . . . . . . . . . . . . . . . . . . . . . . 58 2 Auto Body Shop Employees Hospitalized

a bit of relief for tired eyes. There is more whitespace around the text colums making a slightly bigger margin on the page. We’ll be making some logo and format changes in our online, social media, and newsletter formats as well. Stay tuned and please let us know what you think.

UPDATED DAILY

During Armed Robbery in Hawthorne, CA . . 59 4 Tips to Setting Labor Rates in the New Year . . 4 A Tale of Two Paints: A Visit to Axalta’s Training Center in Concord, NC . . . . . . . . . . 46 Artificial Intelligence Coming to Auto Glass —and Insurance, Mitchell Uses Image Recognition to Confirm Repairs . . . . . . . . . . . 4 AT&T 4G LTE to Power Ford SYNC Connect . . . 47 Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman . . . . . 4 Design and Format Changes at Autobody News . 3 Diamond Standard 40 MPH IIHS Moderate Overlap Test . . . . . . . . . . . . . . . . . . . . . . . . 60 How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud? . . . . . . . . . . 21 Maaco Ranked 228 on Entrepreneur Magazine Franchise 500 List . . . . . . . . . . . 39 New Women’s Group Focuses on Attracting Students to Collision Repair Industry . . . . . . 51 PA Shop Owner Files $713,000 Lawsuit

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Ancira Volkswagen . . . . . . . . . . . . . . . . . . 42

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC. Autobody News Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Honda-Acura Wholesale Parts

Audi South Austin . . . . . . . . . . . . . . . . . . . 34

Dealers . . . . . . . . . . . . . . . . . . . . . . 28-29

Audi Wholesale Parts Dealers . . . . . . . . . . 45

Hyundai Wholesale Parts Dealers . . . . . . . . 58

AutoNation Chevrolet. . . . . . . . . . . . . . . . . 36

Insta Finish Car Care . . . . . . . . . . . . . . . . . 17

AutoNation Chrysler-Dodge-Jeep-

Ken Garff Mopar . . . . . . . . . . . . . . . . . . . . 14

Ram NRH . . . . . . . . . . . . . . . . . . . . . . . 30 AutoNation Chrysler-Jeep-Dodge-

Kia Motors Wholesale Parts Dealers. . . . . . 41 Launch Tech USA. . . . . . . . . . . . . . . . . . . . 63

Ram of North Phoenix . . . . . . . . . . . . . . 20

Matrix Automotive Finishes . . . . . . . . . . . . 11

Axalta Coating Systems . . . . . . . . . . . . . . . . 5

Mazda Wholesale Parts Dealers . . . . . . . . . 61

Berge Ford . . . . . . . . . . . . . . . . . . . . . . . . 27

Mercedes-Benz . . . . . . . . . . . . . . . . . . 32-33

Bill Luke Chrysler-Dodge-Jeep-Ram . . . . . 18

Mitsubishi Wholesale Parts Dealers . . . . . . 57

BMW Wholesale Parts Dealers . . . . . . . . . . 51

MOPAR Wholesale Parts Dealers . . . . . . . . 37

Bob Howard PDC. . . . . . . . . . . . . . . . . . . . 25

North Freeway Hyundai . . . . . . . . . . . . . . . 50

Chapman Chevrolet . . . . . . . . . . . . . . . . . . 54

Original One Parts™ . . . . . . . . . . . . . . . . . . 19

ChemSpec USA, LLC . . . . . . . . . . . . . . . . . 21

Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 15

Chevyland . . . . . . . . . . . . . . . . . . . . . . . . . 40

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Classic BMW . . . . . . . . . . . . . . . . . . . . . . . 39

Premier Collision Equipment . . . . . . . . . . . 31

of Legitimate Costs . . . . . . . . . . . . . . . . . . . . 1

Classifieds. . . . . . . . . . . . . . . . . . . . . . . . . 62

Ray Huffines Chevrolet . . . . . . . . . . . . . . . 43

San Franciscans Are Attacking Driverless Cars . 50

Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . . 64

Robaina Industries, Inc . . . . . . . . . . . . . . . 23

Dent Magic Tools. . . . . . . . . . . . . . . . . . . . 10

SATA Dan-Am Company . . . . . . . . . . . . . . 13

Don Carlton Auto Group . . . . . . . . . . . . . . . 44

South Pointe Chrysler-Jeep-Dodge . . . . . . . . 8

ECS Automotive Concepts . . . . . . . . . . . . . 26

Spanesi Americas . . . . . . . . . . . . . . . . . . . . 9

EMS Automotive . . . . . . . . . . . . . . . . . . . . 22

Subaru of Little Rock . . . . . . . . . . . . . . . . . 38

Equalizer Industries, Inc. . . . . . . . . . . . . . . 35

Subaru Wholesale Parts Dealers . . . . . . . . 47

Finnegan Chrysler-Jeep-Dodge . . . . . . . . . . 2

Symach. . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Flatirons Subaru . . . . . . . . . . . . . . . . . . . . . 7

Toyota of Laredo . . . . . . . . . . . . . . . . . . . . . 6

Ford Wholesale Parts Dealers . . . . . . . . . . 49

Toyota Wholesale Parts Dealers . . . . . . . . . 59

GM Wholesale Parts Dealers . . . . . . . . . . . 53

Volkswagen Wholesale Parts

Against Progressive for Underpayment COLUMNISTS

REGIONAL & NATIONAL COLLISION REPAIR NEWS YOUR SHOP NEEDS!

Phillips - I-CAR CEO, President Says Industry

INDEX OF ADVERTISERS

Caliber, GEICO Donate Car to Veteran in AZ . . . 10

State Farm, I-CAR Insurance Gold Class Status . 16 Today’s Vehicles Driving Change Within the Collision Repair Industry . . . . . . . . . . . . . . . 57 Welcoming the Next Generation of Collision Repair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Yoswick - Non-OEM Parts Legal Battle, Begun in 1997, Set for Trial in May 2018 . . . . . . . . . 1

Greeley Subaru . . . . . . . . . . . . . . . . . . . . . 55

Dealers . . . . . . . . . . . . . . . . . . . . . . . . . 56

GYS Welding USA . . . . . . . . . . . . . . . . . . . 16

Young Chevrolet . . . . . . . . . . . . . . . . . . . . 46

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Consumer Watchdog Calls for National Moratorium on Robot Car Testing After Self-Driving Uber Kills Arizona Woman

by Consumer Watchdog

Consumer Watchdog has called for a national moratorium on robot car testing on pubic highways, after an Arizona woman was killed by a self-driving robotic Uber in Tempe, Arizona. See story on cover this issue. ‘There should be a national moratorium on all robot car testing on public roads until the complete details of this tragedy are made public and are analyzed by outside experts so we understand what went so terribly wrong,’ said John M. Simpson, the nonpartisan, nonprofit group’s Privacy and Technology Project Director. ‘Arizona has been the wild west of robot car testing with virtually no regulations in place. That’s why Uber and Waymo test there. When there’s no sheriff in town, people get killed.’ According to the Tempe police, the deadly incident happened Sunday night at approximately 10:00 pm, when the car hit a pedestrian. The vic-

tim later at the hospital. The robot car was in autonomous self-driving mode at the time of the collision and had a human supposedly ready to take control of the wheel in the car, the police said. Consumer Watchdog said the tragedy underscores the difficulty robot cars have in interacting with pedestrians and cyclists, as well as human driven vehicles. Such shortcomings in the robot technology were made clear in the so called ‘disengagement reports’ that companies are required to file when they are permitted to test in California. The reports, which document when a test driver had to intervene, are filed annually with the Department of Motor Vehicles’ website. No such disclosures are required in Arizona. Although this is the first known death caused by a robot car on public roads, this tragedy is unsurprising given the information revealed in the disengagement reports about the ‘au-

tonomous’ capabilities of these vehicles, said Consumer Watchdog. Earlier this year twenty companies released ‘disengagement reports’ showing robot cars cannot go more than 5,596 miles in the best-case scenario without a human test driver taking over the wheel. In most cases, the vehicles cannot travel more than a few hundred miles without needing human intervention, Consumer Watchdog noted. Despite the information revealed in these reports, the California DMV gave robot cars the green light to hit the road without a human driver ready to take control next month. ‘If robot cars are already killing people even with the presence of a human driver in the car, how lethal are these technologies going to be next month when they will roam public roads without a human onboard ready to take control?’ asked Sahiba Sindhu, a consumer advocate at Consumer Watchdog.

Consumer Watchdog said all data from the Arizona fatal crash should be made public so it can be analyzed by outside experts. The group said Uber has demonstrated a concern about rushing robot vehicles on to the road, not a concern about safety. An email exchange between former Uber CEO Travis Kalanick and then lead robot car developer Anthony Levendowsk, revealed in the recent Waymo-Uber lawsuit, makes clear the corporation’s lack of concern for public safety. ‘I just see this as a race and we need to win, second place is first loser’ read one text from Levandowski in March, 2016. ‘We do need to think through the strategy to take all the shortcuts we can find,’ said another from the engineer on the same day. ‘Uber simply cannot be trusted to use public roads as private laboratories without meaningful safety standards and regulations,’ said Simpson. Visit them at www.consumerwatchdog.org

Artificial Intelligence Coming to Auto Glass—and Insurance, Mitchell Uses Image Recognition to Confirm Repairs by Tara Taffera, glassBYTEs.com

Artificial Intelligence (AI) is coming to the auto glass and insurance industries. Case in point, Mitchell International is exploring a computer vision application that uses image recognition to confirm repair vs. replace decisions. This is according to the company’s 2017 Third Quarter Industry Trends Report. Computer vision researchers at Carnegie Mellon demonstrated the ability to detect and understand small movements. Mitchell said in its report, ‘Instead of an automotive repairer just getting guidance on the next step in a given repair procedure, they could get real-time evaluation of ancillary

problems detected by computer vision.’ In fact, in February 2018, glassBYTEs reported that Autoglass, a vehicle glass repair and replacement company based in the UK and owned by Belron, tested the latest AI technology to assess the severity of vehicle glass damage. The company said this can be used to determine whether customers require a repair or a full replacement. An article written by Olivier Baudoux, vice president, Global Product Management, auto physical damage solutions, authored an article in the Mitchell Report, saying that AI will be used in the future of auto glass claims workflow. First, the concept has to gain traction.

4 Tips to Setting Labor Rates in the New Year

by Sam Valenzuela, National AutoBody Research

It’s the New Year, and many body shops use this time to consider changes to their labor rates. But for collision repairers, 2018 is distinctively different from prior years. A new reality of advanced, high technology vehicles has arrived and dramatically changed the collision repair landscape forever. More than ever, proper labor rate pricing is crucial for body shops to sustain long-term profitability, growth, 4

and prosperity. At NABR, we’ve been actively surveying, studying, and analyzing labor rates for quite some time now, enhanced through our Variable Rate System (VRS) software. After communicating with thousands of body shops and seeing first hand how they make decisions about pricing their labor, we have some basic steps to share for anyone who wants to take action on their labor rates for 2018. First, let me provide some context. About 4,650 individual body

APRIL 2018 AUTOBODY NEWS / autobodynews.com

‘With rapidly changing conditions that put more drivers and more complex cars on the road, it’s no surprise that auto claim value and loss costs have increased substantially in recent years,’ said Ryan Mandell, director of performance Consulting for Mitchell Auto Physical Damage Solutions. He added that AI is ready to tackle these increased workloads with specific solutions. Baudoux’s article went on to say that ‘once the meaningful data is identified, AI can help to elevate the right information in a way that assists and expedites workflow processes. By leveraging AI and visual computing to analyze photos for example, AI-enabled workflow solutions can use machine learning technology to

shops nationwide have submitted labor rate surveys to us. From that survey data, posted rates for body labor range from $57 (national average) to $88 (+2 standard deviations). New surveys submitted within the last twelve months range from $63 to $98 (avg to +2 std dev). Doing a comprehensive labor rate analysis for your shop can be complex and quite involved, so instead, we offer here 4 simple steps to help get you on the road to finding the right price for your individ-

minimize estimate errors and maximize review efficiency.’ In that vein, Mitchell launched the Mitchell Assistance Review Project 18 months ago to accomplish this goal. ‘By utilizing millions of damaged vehicle photos, computers are ‘trained’ to recognize vehicle damage and use computer vision to double check repair versus replace decisions. This will help carriers achieve better estimate consistency, maintain estimate quality and be more selective about sending appraisers into the field, all while improving cycle times and productivity.’

We thank Tara Taffera and glassBYTEs .com for reprint permission.

ual shop.

1) Consider your market’s overall cost of living. This can serve as a simple sanity check to help ensure your labor pricing is within a reasonable range for the area you operate in. While there is no official US government cost of living index that compares the cost to live in different cities, there are some online resources that do. One is AreaVibes.com, which can give you a See Your Labor Rates, Page 22

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Texas Watch Speaks on Auto Safety at HABA Conference

such thing as a free lunch, and cheap repairs end up costing the consumer We were honored to speak at the much more when your vehicle’s Houston Auto Body Association’s value is diminished and your famconference, and we thank them for ily’s safety is put at risk. Automothe invitation. biles that are improperly repaired The body shops that belong to can turn into death traps in the next professional associations care about collision. doing the job the right way the first At the conference, Executive time. They are the industry leaders Director Ware Wendell joined other experts and shared our experience fighting the insurance industry at the Texas Capitol throughout the past 20 years. We spoke to the pressing need for the public to be informed about their rights when it comes to selecting a body shop of their choice after a wreck. Too often, the insurance in(l to r) John Kopriva, HABA President; Burl Richards, dustry tries to illegally ABAT President; Ware Wendell, Executive Director of steer, pressure or incenTexas Watch; Robert McDorman, Founder of Vehicle tivize consumers to use a Value Experts body shop that the insurwho invest in training for their em- ance company regularly does busiployees, purchase the best equip- ness with. Ask yourself: Are those ment and parts, and have the guts insurance-friendly body shops lookto stand up to the insurance compa- ing out for you, or are they looking nies when they try to force shops to out for the insurance cartel that regcheap out on repairs. There’s no ularly butters their bread? by Staff, Texas Watch

Texas consumers should be on the lookout if an insurance company tries to steer them to a particular

body shop or pushes them into using inferior aftermarket parts. Take the time to KNOW YOUR RIGHTS, and push back if an insurance company tries to bully you. Those of us who care about safety and protecting consumers are getting organized and will be taking on the insurance cartel during the next legislative session. Insurance companies who care only about padding their profits have rigged the system for too long. The time has come to break their stranglehold on the repair process.

We thank Texas Watch for reprint permission.

Extreme Twist Collision in Santa Fe, NM, Celebrates 20th Anniversary

Extreme Twist Collision, a Santa Fe, NM, auto body shop, is celebrating its 20th anniversary in 2018, commemorating 20 challenging but rewarding years in business. This is a huge milestone for the body shop, which has provided auto

body work to vehicle owners in New Mexico since 1998. Extreme Twist Collision got its start in 1998 when owner Eli Martinez set out to provide vehicle owners with the highest quality auto body work. One of the earliest challenges Extreme Twist Collision faced was finding its own market and getting its name out there. While every business of course faces challenges, some, like Extreme Twist Collision, are fortunate enough to enjoy real successes, wins and vic6

tories as well. Once such victory came after relocating to Santa Fe and becoming known as a top auto body shop. “One of the high points of Extreme Twist Collision was establishing in Santa Fe and providing our employees with a secure job that they could depend on,” Martinez said. “We’re delighted to be celebrating our 20-year anniversary. I believe the secret to getting this far in business today is putting the customer first... without them, we don’t have a business.” Extreme Twist Collision has big plans for the upcoming year. One of its core objectives is to be known as the #1 auto body shop in Santa Fe. The local body shop will continue working to get its name out in the community, with plans to continue providing the best quality work. Extreme Twist Collision would also like to thank friends, customers and all its partners for their well wishes on this happy occasion.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Collision Works Opens Tulsa, Hills, OK, Facility

As Collision Works continues to expand throughout the Oklahoma market, it announces the grand opening of its Tulsa Hills location. The location has a new Symach facility that paves the future of the auto body industry. The new modern look on the outside is just a small piece of what this facility has to offer to the community of Tulsa. “This is a new modern body shop process that represents Symach’s latest concept in terms of productivity, quality and service. Our new layout and repair process when combined with Drytronic technology creating a painting cycle that provides a 50 percent to 60 percent increase in productivity, as well as an increase of 1.5– 2 repairs per week, per technician,” President Barry Hadlock said. “This creates more jobs for the citizens of Tulsa along with creating better working situations for body techs and painters.”

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Greenville, TX, Auto Shop Students Work to Restore Teacher’s Dream Car

by Travis Hairgrove, Herald-Banner

Whether they remember it with fondness or mild embarrassment, a lot of people can recall their first “dream car,” or the first vehicle that struck them as “cool” when they were children or teenagers. Lori Butler, director of Greenville High School’s venerable dance and drill team, the Flaming Flashes, happened to receive her childhood dream car as a gift from her father in 1988 when she was in her mid-20s—a bright red 1979 Volkswagen Beetle. After driving it for several years and letting her niece and nephew use it for a few more, the car sat in Butler’s garage unused. But after her father passed away, Butler decided to have the car restored as something to remember him by. Being a teacher, Butler brought the car to Greenville High School’s auto mechanics and paint and body shops at the beginning of the 2016–17 school year so that its restoration could also serve as an educational experience for the students. Another benefit of taking the car into the high school automotive shops was the price. “I think I probably, with the paint, might have put $2,000 into it to redo it

and get it going,” Butler said. “I was really surprised at that because anything else I’d ever looked at, when I looked at the parts for it, it was like $5,000 for this and $5,000 for that. I don’t know

Lori Butler, a teacher at Greenville High School, gets a preview of what it’ll be like to return to the driver’s seat of her beloved 1979 Volkswagen Beetle. Students Quinton Bridges, Irelant Jones and Allen Fansler are a few of the young mechanics who have been working on her vehicle over the past year and a half. Credit: GISD

how Bobby (Brumley, GHS’ auto paint and body instructor) came across it all for that low of a price.” When Butler first brought in the car, automotive mechanics instructor George Kroncke’s shop gave it a check-up. “Basically, what we looked at

APRIL 2018 AUTOBODY NEWS / autobodynews.com

was drivability,” Kroncke said. “So basically, when the car came in, we assessed it, ordered a carburetor, and there were a lot of issues in the break system because it sat for so long.” During some of those early tests, Butler watched as some staff members put the nearly 40-year-old car through its paces. “They just floored it, and that little car tilted up, looking like Herby the Love Bug coming to life,” Butler said with a chuckle. After the initial testing and assessment, the car entered the paint and body shop, but they had to wait on the completion of some new construction before the actual painting could be done. “We started on all the prep work last year, but we didn’t get to start painting it until we had the (spray) booth up and going,” Brumley said. “Basically, when we got it in, we pulled off the bumpers, all the lights, all the trim and the fenders. Then, we sanded everything down to bare metal, because sometimes, if you paint over old paint, you get problems later because you have a reaction between the paints.” While both Brumley and Kroncke stressed the importance of pro-

viding their students with hands-on work experience, they also made clear that having the auto shops at the high school do the work is a decision to consider carefully. “Projects, like with Lori’s car, are the kinds that work better for a longterm project,” Kroncke said. “You have to really have someone (a customer) who understands how a school works, how our workday works. “You have prep in the beginning, where you have to get them ready to work, and actual hands-on time is an hour or so. The projects take a long time, so it requires a lot of patience and understanding on the part of the person who’s bringing the vehicle to be worked on.” More recently, Butler spent another $900 on new carpet, seat covers, chrome trim and lights for the car. Once Brumley’s auto paint and body shop is finished with its work, the car will move over to the auto mechanics garage, where Kroncke’s students will reassemble the car with a new carburetor, brake system and a new radio (per Butler’s request). The goal is for the restoration project to be completed by the end of this school year. We thank Herald-Banner for reprint permission.

Hail Damages Cars in Jefferson County, AR

Dozens of people living in Jefferson County, AR, flocked to auto repair shops after the March 10 hail storm left damage in its path.

pected and that they’d normally be closed for business. “The hail storm came and we saw people post on Facebook, so we decided to come and open up on a Sunday [to] try to help everybody

“I looked out and there was hail the size of a golf ball,” said Mary Lou Mauldin. Mauldin was just one of several drivers who pulled into Affordable Auto Glass on Highway 365 in Jefferson County. “Last night it was lightning and rain, and I didn’t think anything about it,” said Mauldin. “But then it sounded like someone was tearing the roof off of my home.” Golf ball-sized hail caused severe damage to her car. “I don’t have a carport,” said Mauldin. “My truck was parked in the driveway and it got my windshield.” Zach Howard, who owns the shop, said the hail storm was unex-

out,” Howard said. On March 11, he said his shop saw roughly 35 cars—all with broken windshields. “We’ve got about 15 more coming in today, and we’re scheduled all the way to Wednesday [March 14],” Howard said. C.J. Huber, owner of C.J’s Auto Body, said he also opened up for customers coming in with dented roofs and hoods. “I think we are going to have a lot of cars totaled because of the damage,” he said. Huber said his car was also damaged, and has advice for anyone looking for last-minute repairs. “Pick a good shop. You want to

by Charmaine Nero, ArkansasMatters.com

choose a shop that’s been around for a while, and fully licensed and everything,” said Huber.

“Pick a good shop. You want to choose a shop that’s been around for a while, and fully licensed and everything,” — C.J. Huber

While drivers, such as Mary Lou, said it’s hard to know what to expect from a storm, she’s hoping she’ll be better prepared next time to save herself a costly fix. “Usually if I know it’s going to hail, I’ll pull up under that tree. It’s like an umbrella, but I didn’t have that notice last night—wish I had,” she said. We thank ArkansasMatters.com for reprint permission.

www.autobodynews.com

Gerber Opens Repair Location in Colorado

The Boyd Group Inc. recently announced the Feb. 20, 2018 opening of a collision repair location in Falcon, CO. This center was previously operated as Falcon Collision Center. This new location is situated a mile and a half west of Highway 24, 14 miles northeast of Colorado Springs and serves the rapidly growing community of El Paso County. “This new center complements our two locations in Colorado Springs by increasing our market visibility and enabling synergies between the centers,” said Tim O’Day, President and COO of the Boyd Group. “We are also pleased to note that Keith Merritt and Tim Linenberger, who have operated the collision center for many years, will be staying on to manage the facility. They will continue to serve the community of Falcon and introduce customers and our insurance partners to the Gerber brand of professional and friendly service.”

autobodynews.com / APRIL 2018 AUTOBODY NEWS

ASA-CO Seminar Covers Planning Ahead

by Chasidy Rae Sisk

On Monday, Feb. 12, ASA-CO hosted a seminar on “Planning Your Businesses’ Future—It Pays to Plan Ahead!” at the Kenz & Leslie BG Training Center in Wheat Ridge, CO. Dinner was served at 6 p.m., followed by ESI’s Maylan Newton’s presentation half an hour later. Newton discussed how to build, track and monitor a good plan for attendees’ businesses. According to ASA-CO Executive Director Julie Massaro, “Attendees enjoyed the presentation, which we held in order to give our members a basic format for creating or updating their business plan. Maylan’s presentation definitely exceeded my expectations. “ASA-CO strives to bring cuttingedge training and practical-skill-building classes to the community.” The next session in the association’s 2017/2018 Professional Business Series will be “10 Critical Steps to Financial Freedom” on April 2, followed by the “What Is Good Leadership” session on May 7. For more information on ASA-CO, visit www .asacolorado.org.

Caliber, GEICO Donate Car to Veteran in AZ

LGE Design Build Breaks Ground on Gilbert Collision Center in AZ

Donna Darnell, a U.S. Air Force veteran and single mom of three, was presented with keys to her newly donated car at the Cologuard Classic in Tucson, AZ, on March 3. Her family’s vehicle broke down two years ago, so she and her sons have had to walk or rely on buses and transportation from friends. Darnell has multiple service-connected medical and mental health challenges, according to a media release from Kimbriel Marketing. In addition, all three of her sons have been diagnosed with autism. The donated car will help ease transportation as Darnell’s medical issues become more severe, and allow her to spend more quality time with her family. The 2014 Volkswagen Jetta was donated to Darnell by Caliber Collision and GEICO as part of the National Auto Body Council’s Recycled Rides program to thank and honor her for her service.

by Staff, AZ Big Media

by Brandi Walker, KGUN9 On Your Side

We thank KGUN9 On Your Side for reprint permission.

Airpark Collision Center in AZ Earns 2017 Angie’s List Super Service Award

Airpark Collision Center has won the home service industry’s coveted Angie’s List Super Service Award (SSA). The award recognized service professionals who consistently received exceptional service ratings and reviews on Angie’s List in 2017.

“The service providers that receive our Angie’s List Super Service Award demonstrate the level of excellence that members have come to expect,” said Angie’s List Founder Angie Hicks. “These pros are top-notch and absolutely deserve recognition for the trustworthy and exemplary customer service they exhibited in the past year and overall.” Angie’s List Super Service Award 2017 winners had to pass strict eligibility requirements. This includes maintaining an overall grade, recent grade and review pe10

riod grade of “A,” being in good standing with Angie’s List, passing a background check, recording a current trade license attestation and following Angie’s List operational guidelines. Tina M. Small said, “We are thrilled to receive the Angie’s List Super Service Award for 2017. It is authentic validation that we are treating our customers well and have a high standard for quality repairs.” Airpark Collision Center has been listed on Angie’s List since 2006. This is the third year Airpark Collision Center has received this honor. Service company ratings are constantly received by Angie’s List as new, verified consumer reviews are submitted. Companies are then given a grade in an A through F scale in different aspects, such as price to professionalism to punctuality.

www.autobodynews.com

APRIL 2018 AUTOBODY NEWS / autobodynews.com

LGE Design Build, Phoenix, has commenced construction on Gilbert Collision Center, located at 2190 S. Douglas Dr. in Chandler, AZ. The two-story project will total 31,113 square feet and be complete in November 2018. Part of the Au-

toNation Group, this will be Gilbert Collision Center’s third Valley location. The first floor will house dayto-day operations and include a reception and lobby area, offices to house estimators and adjusters, and an employee break room. The second floor will serve as a corporate of-

fice for all Valley locations and will feature executive suites and a conference room. Construction materials will include painted concrete tilt panels, metal louvers, low-e tinted glazing and exposed steel to achieve a distinctive aesthetic for the facility. “The building design, colors and materials have a cohesive palette that maintain consistency throughout both the site and building elevations while complementing the surrounding area,” said John Mocarski, architect with LGE Design Group, the project’s architectural firm. “The color palette will blend the tenant’s identity with a classic but modern corporate elegance.” Situated on 4.75 acres at the southwest corner of Douglas and Cessna Drives, this facility will serve as an auto body repair center that will treat vehicles for dents and scratches, panel repairs and painting services. We thank AZ Big Media for reprint permission.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

SCRS Announces Details of Repairer Roundtable in CO, Hosts CFO of Chipotle

The Society of Collision Repair Specialists (SCRS) will be hosting the annual “Repairer Roundtable” from 9–11 a.m. on Wednesday, April 11 at the Westin in Westminster, CO. The meeting is free of charge and open to all industry participants. SCRS only requests that attendees pre-register so it can accommodate the audience as best as possible. Register by clicking here. http://events .r20.constantcontact.com/register/eve nt?oeidk=a07ef3wp6zne179c651&llr =duuzsd7ab

This year, SCRS is excited to welcome Jack Hartung, Chief Financial Officer of Chipotle Mexican Grill, as guest speaker for the program. Jack will provide SCRS audience members with an intimate look into the critical role of culture in an organization; the idea of reshaping

the consumer expectation; the chal- • Matthew McDonnell, Big Sky lenges and potential for success in Collision, Billings, MT developing a business model that ac- • Robert Grieve, Nylund’s Colcounts for higher quality and higher lision Center, Denver, CO associated costs, even in competition with low-cost providers; and the fun- These repair facility owners will join damental importance of consumer Jack in discussions about their reactrust, how easy it is to lose, and nec- tions to points and considerations essary measures to build it back. raised in his presentation, and applicaChipotle is working bility to their own collision to ensure that better food, repair businesses. The unprepared from whole, unscripted dialog will allow processed ingredients is repairers—both onstage and accessible to everyone, a in the audience—to ask vision that is rooted in the questions, explore ideas, opcompany’s longstanding tions and opportunities that commitment to enlightmay exist for their own inened sourcing and classidependent businesses, and Chipotle CFO and cal cooking. to dig deeper into particular SCRS Repairer In his current position, Roundtable speaker areas of interest from the Jack oversees all aspects of presentation. Jack Hartung Chipotle’s finance departIf you have ever struggled ment, including financial and strate- with investing more than your comgic planning, financial reporting, petition in training, equipment and investor relations, and tax and busi- skillset development, or the pressure ness strategy. Jack also oversees IT. of explaining to a consumer why Immediately following the pres- you, your business and the work you entation, Jack will be joined onstage produce are not the same as “the by: shop down the street,” then this is the out-of-the-box presentation to • Jeff Kallemeyn, Kallemeyn help offer thoughtful perspective. Collision, Chicago, IL Immediately following the Re-

Registration Under Way for Golf Fundraiser in Dallas to Support NABC Programs

Registration is under way for sponsors and golfers for the National Auto Body Council’s Collision Industry Golf Fundraiser April 4 in Dallas, TX.

Title Sponsor Enterprise Renta-Car leads a roster of industry leaders already committed as event sponsors, including Berkshire Hathaway Automotive, Garmat, Auto Body Express, Insurance Auto Auctions, PPG Automotive Refinish, 3M, Hertz, PDR Linx and Banner’s Auto Body. Funds raised from the golf event to be held at the Texas Star Golf Resort in Euless, TX, support NABC’s programs that change and save lives—Recycled Rides™, First Responder Emergency Extrication (F.R.E.E™) and the Distracted Driving Initiative. A highlight of the event will be the presentation of Recycled Rides 12

vehicles to local Dallas-area veterans and other individuals in need. The Recycled Rides vehicles were donated by State Farm, GEICO and Enterprise Rent-a-Car, and repaired by Caliber Collision, Town East Ford and BH-Trophy Nissan of Mesquite. “Last year’s golf fundraiser in Dallas was a sold-out success. We encourage you to round up some friends and colleagues to join you at this Texas-sized fun fundraiser,” said Darren Huggins, NABC Chairman and Co-Chair of the golf event. “It’s a great opportunity to do a bit of networking, catch up with industry friends and have a whole lot of fun, all while providing valuable support for our NABC industry programs.” The fee for a team of four is $600 and $150 for an individual player. Multiple sponsorships are available and can also be customized to meet individual company preferences. Online registration is at www .NationalAutoBodyCouncil.org. For more information, contact Mike McManus at 888-667-7433, Ext 119.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

pairer Roundtable, SCRS will be holding the annual Corporate Member Recognition and Industry Awards Luncheon from 11:15 a.m.–12:45 p.m. This event is also no cost to attend, but an RSVP is required. Register for one or both of these events by visiting http://bit.ly/ SCRSRegistration. Other SCRS events taking place during the week in Colorado include: Tuesday, April 10 • 3 p.m.–5 p.m. SCRS Board of Directors Open Meeting • 5:15 p.m.–5:45 p.m. SCRS Annual Election (SCRS members only)

For more information about SCRS, or to join as a member to take advantage of the discount pricing, please visit www.scrs.com, call toll free 1877-841-0660 or email us at info@ scrs.com.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Cover

Legal Battle

suit started back in the 1990s still remain embroiled in the judicial system? Back in 1999, a jury in the original Avery lawsuit found that the non-OEM parts installed on the drivers’ vehicles as part of their State Farm claim were inferior to OEM, and thus the insurer breached its contract to return those cars to “pre-loss condition.” It also found that State Farm had defrauded consumers by concealing known problems with the parts. The $1.2 billion judgment against State Farm was, at the time, one of the largest judgments ever levied against an insurer. The ruling changed the way many insurance companies dealt with non-OEM parts for years, and even today is seen as the basis for State Farm’s limited use of such parts. In 2001, in response to an appeal by State Farm, an appellate court affirmed the decision but lowered the damage award to $1.05 billion. State Farm then filed an appeal

with the Illinois Supreme Court. In 2004, Judge Karmeier was elected to his first 10-year term on the Illinois Supreme Court. At that time, lawyers for the plaintiffs in the Avery case sought to have Karmeier recuse himself from participating in the Avery decision because they claimed his election campaign had received significant campaign contributions from State Farm. But Karmeier did not recuse himself. The next year, four of the six Justices on the Court—including Karmeier—voted to overturn the Avery ruling. The court ruled that the case should not have been approved as a national class action because State Farm uses different policy language in different states, and even within the same state. The Court found no breach of contract under any of the three different policy wordings related to the use of parts. It ruled that the plaintiffs in the case failed to demonstrate damages. Additionally, the court pointed out that the plaintiffs did not contend that non-OEM parts are defective—only that they are not all as good as OEM parts. The decision emboldened insur-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

ers, some of which had curtailed calling for the use of non-OEM parts for some years after the 1999 Avery judgment, to return to pushing shops to use the parts. New findings, new lawsuit However, in 2011, lawyers for the plaintiffs in the Avery case filed a lawsuit claiming they had new evidence of State Farm’s involvement in the recruitment of Karmeier as a candidate and in financing the campaign that led to his election to the Illinois Supreme Court. That campaign shattered state and national spending records for a judicial seat, with the two candidates spending more than $9 million combined. The current lawsuit argues that State Farm “delivered ‘tremendous’ financial support (at least $2.5 million and as much as $4 million) to Justice Karmeier’s campaign.” The plaintiffs’ attorneys argue, for example, that State Farm attorney and lobbyist William Shepherd was on the executive committee of the Illinois Civil Justice League (ICJL), which recruited and endorsed Karmeier as a candidate for the seat on the court, and was involved with weekly conference

calls with Karmeier’s campaign manager (the head of the ICJL). The money trail described in the court filings is a bit convoluted, indicating that the contributions largely came through intermediary organizations being influenced by State Farm. The ICJL, for example, through its political action committee made $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, the lawsuit argues, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated more than $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign. Attorneys say the new evidence should lead the court to reinstate the judgment against State Farm, or alternatively reconsider the case without Karmeier’s involvement. (Justice Karmeier in 2014 was narrowly reelected by Illinois voters to a second

10-year term on the state’s highest court, and in 2016, he was unanimously elected by his fellow justices to serve as the chief justice on the court.) State Farm has argued that overturning the Avery ruling would be “disruptive in the extreme” to the Illinois legal system because the ruling has been cited in more than 200 subsequent court opinions. The insurer argues the contributions to Karmeier’s campaign from State Farm employees and others connected with the insurer were “quite modest,” by their estimate about $350,000. And it says the notion of “State Farm-influenced contributions” relies on an unsubstantiated argument that the insurer controls such organizations as the U.S. Chamber and the ICJL. State Farm had asked Judge Herndon for summary judgment in the suit, essentially dismissing it based on a lack of basis for it to move forward. But Herndon in February declined State Farm’s request. Herndon wrote that State Farm couldn’t demonstrate that any issues in the current suit were identical to the issues decided by final judgment in the

Avery lawsuit. “As the parties are well aware, Avery was about State Farm’s failure to equip its insureds’ vehicles with proper replacement parts, and this case is about State Farm’s alleged conduct in secretly recruiting Judge Karmeier, covertly funneling millions of dollars to support Judge Karmeier’s campaign and concealing and misrepresenting the degree and nature of its support of Justice Karmeier,” Herndon wrote. “Simply, [State Farm’s] actions in the two cases are entirely different and do not seek redress from the same wrong.” The legal battle that began over nonOEM parts back in 1997 has still not seen its final chapter.

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New Look Collision Opens 1st AZ Location in Scottsdale

Scottsdale, AZ-area commuters can now take their vehicles to one of the country’s top collision shops for auto body repairs. Las Vegas, NV-based New Look Collision has expanded its operations with the opening of its fifth location— the first in the state of Arizona—in Scottsdale March 14. Michael and Theressa Whittemore have owned and operated New Look Collision for nearly 15 years. It is one of the fastest-growing companies in America according to Inc. 5000, which publishes a list that recognizes the most innovative and successful private companies across the country, and boasts a five-star honor roll rating with the Better Business Bureau. “We are excited to expand our operations to Arizona,” said the Whittemores. “Our growth is a direct result of our team’s commitment to providing quality service to all of our customers. We are the No. 1 choice for auto body collision repair in Las Vegas and ready to extend this tradition to the Scottsdale and surrounding communities.” The new Scottsdale location, 15450 N. 84th St., features a 17,000-

square-foot auto body shop, complete with two Global Finishing Solutions paint booths, in-house alignments, inhouse frame system and frame damage repairs, and a 100-car secured parking facility. New Look Collision in Scottsdale is also an authorized Rhino Linings dealer. New Look Collision is factorycertified by seven automakers. It is home to the online collision repair estimator, which allows consumers to receive accurate estimates using a smartphone to snap a few pictures of the damage. The auto body collision repair business is also approved by virtually all major insurance companies. Additionally, New Look Collision is dedicated to helping local communities. During last year’s SEMA show, the company rebuilt a car and presented it to a Las Vegas family through Recycled Rides, an industry-wide community service program in which businesses collaborate to repair and donate vehicles to those in need.

www.autobodynews.com

autobodynews.com / APRIL 2018 AUTOBODY NEWS

State Farm, I-CAR Insurance Gold Class Status

I-CAR® has awarded Insurance Gold Class® business recognition at the corporate level to State Farm®, an achievement reserved for insurance carriers that are committed to improving the performance and quality of auto collision repairs. State Farm’s appraiser staff has completed the Platinum Auto Physical Damage Appraiser (APDA) training requirements in I-CAR’s Professional Development Program (PDP), therefore achieving corporate Insurance Gold Class. State Farm’s Select Service® Program also recognizes I-CAR’s Welding Training & Certification™ as part of its network education, equipping each of its network technicians with the necessary information, knowledge and skills to perform quality welds. “State Farm’s enthusiasm and encouragement for its appraiser staff to adopt APDA training and as a result, become a corporate Gold Class organization, confirms a dedicated commitment to training throughout the organization,” said Brad Gutcher, I-CAR manager, segment development - insurance. Continued from Cover

Fully Legalize Self-Driving

nology that is now being implemented in cars coming out on the road, and we have testing going on throughout the country.” His bill would create somewhat different rules, liability and insurance requirements for five different categories of autonomous vehicles. “A car that has cruise control is a Level 1” because that category includes cars that may accelerate by themselves, he said. “Most of the cars coming out right now are a level 2, with lane assist and smart braking,” he said. “In Level 3, the car does most of the work but you have to be actively engaged—like in a Tesla.” A Level 4 car “can do everything—but you have to be available in an emergency. A Level 5 car does everything. You don’t need to be in the car,” and it could literally drive itself to a destination, Spendlove said. Carlos Braceras, executive director of the Utah Department of Transportation, said the bill could in16

Registration Now Open for 2018 PBES Conference in Austin, TX

The Auto Care Association recently announced it has opened registration for its 2018 Paint, Body and Equipment Specialists (PBES) Conference. The two-and-a-half day conference will be held May 16–18 at the Fairmont Austin Hotel in Austin, TX. The PBES Conference is an annual educational event that brings together paint, body and equipment industry leaders of the automotive aftermarket. The 2018 conference will focus on the theme of “Leverage Disruption” and provide attendees with the latest educational resources and insights on how to leverage disruption to expand their businesses. This year’s conference presenters include:

• Tim Clue, award-winning writer, educator and comic: “Comfort With Discomfort: A Funny Thing” – Clue will use a blend of laughter, thought and inspiration to explore our aversion to discomfort and challenge us to leverage disruption. • Dirk Beveridge, president and CEO, Beveridge Consulting Group: “Innovate! How to Create Relevancy in The Age of Disruption” – Bev-

crease safety—in part because selfdriving cars are never distracted, drunken or talking on cellphones. “And it actually will stop at a traffic signal,” he said, noting that Toyota and Tokyo have been able to significantly reduce accidents with a system that recognizes stop signals and automatically stops when required. Braceras added that self-driving cars someday may allow roads to carry more traffic—because autonomous cars would be able to follow one another at shorter intervals instead of the longer distances needed now to allow for human error. “Some states have been talking about autonomous lanes” to allow that, he said. “I think it will help mobility someday, but it will be a ways out.” But it could help roads handle the doubling of population expected in Utah in coming decades. Spendlove said he expects continuing work on the legislation in coming years as technology and cars change. He said he may delay its effective date until mid-2019 to allow more work on it. We thank The Salt Lake Tribune for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

eridge will help explore The Innovative Distributor™ framework, which provides practical lessons for creating transformative and innovative change.

• Tom Brown, 3M Automotive Aftermarket Division: “Grow Your Customer’s Wallet… Grow Your Own!” – In this session sponsored by 3M, Brown will examine how to add substantial value to your customers’ operations while increasing sales, loyalty and growth for your business.

In addition to the general educational sessions, this year’s attendees will have the opportunity to participate in new hands-on breakout sessions, engage in panel discussions with leading industry experts and attend the Innovation Fair with premier industry partners showcasing the latest business solutions. Jobbers/distributors will have a chance to win an Apple Watch Series 3 (with GPS and cellular capabilities).

Events/MeetingDetails.aspx?id=20 41&productId=21962883&gmssop c=1. The deadline to register is April 20, 2018. For information about sponsorship opportunities at the conference, please go to http://autocare.org/uploaded Files/Autocareorg/Who_We_Are/Seg ments/PBES/2018_PBES_Conf_Spo nsorship_FINAL.pdf.

For more information about the Auto Care Association’s 2018 PBES Conference and the full agenda, go to http://autocare.org/SegmentsDetail .aspx?id=235&gmssopc=1 , or contact Danielle King at danielle.king @autocare.org.

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Uber’s Self-Driving Trucks Now Hauling Freight in Arizona limiting them to highway operation, while continuing to rely on skilled Uber Technologies Inc. announced drivers to handle the more complex that its self-driving commercial trucks driving tasks at the beginning and are now conducting regular freight end of each trip. hauls in Arizona through the Uber To make that possible, Uber Freight network. ATG is creating transfer hubs where Automated trucks operated by self-driving and human-driven trucks Uber’s Advanced Technologies Group will exchange their loads. are moving loads across the state in The company highlighted a reboth directions on Interstate 40 and cent example where a driver based in exchanging trailers with conventional Los Angeles booked a nearby load on trucks in multistage shipments coordi- Uber Freight in the morning and nated via the Uber Freight application. hauled it to Topock, AZ, where he Uber said its self-driving trucks swapped trailers with a self-driving are hauling consumer products in dry truck, then returned with his new load van trailers, but declined to name and made it home in time for dinner. Uber believes these types of freight transfers eventually will happen across the country. Currently, Uber is using the Arizona Department of Transportation’s Topock port of entry at the border with California as the drop yard for its trailer handoffs. Woodrow said that loAn Uber Freight truck makes a self-driving delivery in cation is giving law enArizona. Credit: Uber Technologies Inc. forcement and regulators which shippers are using its services. an opportunity to observe Uber’s With these operations, Uber said self-driving trucks and learn more it is beginning to build a freight sys- about the technology, but added tem in which long-haul autonomous that the company eventually will trucks work in tandem with short- need more dedicated facilities to haul drivers to move shipments more serve as transfer hubs as it expands efficiently. its operations. Alden Woodrow, product lead Today, Uber ATG’s self-driving for Uber ATG’s self-driving truck trucks still have a trained driver sitbusiness, said the company’s auto- ting behind the wheel at all times, but mated freight deliveries in Arizona the company is working to further rerepresent a “big step forward” from fine its technology to the point where hauling a single load in one direction, its autonomous trucks can operate on as it did in 2016 with its landmark de- highways with no driver at all. livery of a load of beer for Anheuser“We are focused on a system Busch in Colorado. where we can safely take the driver out Now Uber ATG is working to es- of the vehicle altogether,” Woodrow tablish a more complete business said, but acknowledged that Uber still model that begins to unlock the poten- has “a lot more work to do” before it tial for automated trucks to save lives can commercially launch such a sysand improve freight efficiency and tem. drivers’ livelihoods, Woodrow said. He also reiterated Uber’s argu“We want to try to get this tech- ment that long-haul driverless trucks nology into the world safely and reli- using the transfer-hub model would ably as soon as we can,” he said. “And not displace truck drivers, but graduwe think that designing a truck that ally shift driving jobs from long-haul can drive on the highway is the fastest routes to more desirable short-haul way to do that and make it success- jobs that provide them with more ful.” home time. Uber intends to accelerate the While moving freight along Ideployment of driverless trucks by 40, Uber ATG’s trucks also will genby Seth Clevenger, Transport Topics

APRIL 2018 AUTOBODY NEWS / autobodynews.com

erate data that can help the company move closer to launching a commercial product for self-driving trucks, Woodrow said. At the same time, the freight moving in and out of Uber’s transfer hubs could create more load opportunities for drivers using the Uber Freight app. This model can support the company’s efforts to help drivers find desirable loads and enable them to be home as often as they’d like, said Eric Berdinis, product manager for Uber Freight. “That’s the kind of model we see playing out in the future,” he said. “The autonomous technology is going to be doing the long-haul portions of a journey, and drivers can stay fully utilized using the Uber Freight app and take the kind of loads that they want and be home when they want to be home.” The Uber Freight platform is designed to connect carriers with available loads that meet their requirements while streamlining the booking process. Drivers can use the

mobile app to book loads with upfront pricing and receive full payment in a few days. Uber’s deployment of its selfdriving trucks for real freight deliveries within its Uber Freight platform mirrors the company’s strategy in its

Credit: Uber Technologies Inc.

core ride-hailing business. The technology firm has been providing Uber rides on passenger vehicles equipped with its self-driving system in Pittsburgh and Phoenix. Outside Arizona, Uber also is running its self-driving trucks on highways near its San Francisco headquarters and occasionally tests them near its Pittsburgh office as well. We thank Transport Topics for reprint permission.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Cover

Uber Halts Car Testing

tonomous vehicles on public roads across Arizona, giving rides to a small number of customers. A safety operator sits in the driver’s seat of all of these vehicles. Uber said it has suspended its autonomous car operations in Phoenix, Pittsburgh, San Francisco and Toronto. Company chief executive Dara Khosrowshahi said on Twitter: “Some incredibly sad news out of Arizona. We’re thinking of the victim’s family as we work with local law enforcement to understand what happened.” The company began testing its autonomous vehicles on public roads in California in 2016. However, within hours of the trial commencing, the vehicles were caught running red lights. California then revoked Uber’s license to operate self-driving cars in the state, claiming it had not paid for the correct permit to test its vehicles. Uber moved its testing to Arizona, but soon after that, in March

2017, one of its autonomous Volvos was knocked onto its side at an intersection. Although the car was driving itself at the time of the collision, it was ruled that a human-driven vehicle had failed to give way at a traffic signal, thus causing the crash. Tempe Police Department said: “On March 18, 2018 at approximately 10 p.m., Tempe PD responded to a traffic collision on Curry Road and Mill Avenue in Tempe, Arizona. The vehicle involved is one of Uber’s self-driving vehicles. It was in autonomous mode at the time of the collision, with a vehicle operator behind the wheel. The vehicle was traveling northbound just south of Curry Road when a female walking outside of the crosswalk crossed the road from west to east when she was struck by the Uber vehicle. The female was identified as 49-year-old Elaine Herzberg. Herzberg was transported to a local area hospital where she passed away from her injuries. Uber is assisting and this is still an active investigation.” We thank GearBrain for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Hodges Collision Center Expands to 5 Locations With Magnolia, TX

Steve Guinn, president/CEO of Hodges Collision Center, with corporate headquarters in The Woodlands, is pleased to announce the acquisition of its 5th location in Magnolia, TX. The former Signature Collision is now Hodges Collision Center Magnolia (#5). The new Hodges Collision Center, located at 32003 Nichols Sawmill Rd. in Magnolia, is approximately an 18,000-square-foot facility, which will house an Enterprise Rent-A-Car location and insurance adjuster offices. Mike Wigginton, previously the manager at the Rayford Road location, was named manager of the new Magnolia facility. Mike joined Hodges Collision in 2015

with more than 20 years of automotive service industry experience, including managing large collision facilities. A smooth transition is in progress and the Magnolia location is open for business. “We are thrilled to be opening a location in the Magnolia area and we are proud to be a part of this community,” noted Guinn. “Signature Collision has been in Magnolia for the past 10 years, and now we are excited to be operating as Hodges Collision and expanding our contribution to the economic growth in the area, and continuing to serve our customers like they expect. Our team is definitely looking forward to living and working in the neighborhood and getting involved in the community.”

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How Do the U.S., Canada Differ in Their Fight Against Insurance Fraud?

by Bethan Moorcraft, Insurance Business America

Fraudsters will always find a way to cheat the system. All lines of business are vulnerable to the crime, including insurance, and organizations worldwide face the sometimes cumbersome task of continuously fortifying their operations to keep the tricksters at bay. Some countries are more active in their response to insurance fraud than others, according to Dan Gumpright, product manager, Global Insurance Solutions, BAE Systems Applied Intelligence. The issue is “significant” across North America, but the response mechanisms differ between Canada and the U.S. “While Canada suffers similarly to the U.S., there are considerably more central initiatives to combat fraud, such as the data sharing model adopted by CANATICS, an antifraud consortium in Ontario, which is pooling data in a single system and detecting organized fraud across multiple insurance companies. The majority of insurance companies in the province have signed up for the service and are actively using it,”

Gumpright told Insurance Business. “British Columbian government-run auto insurer ICBC insures all vehicle owners in the province and has adopted the same technology to com-

iStock Photo

bat fraud. A recent PWC report indicated success in early detection of opportunistic fraud, which will lead to prevention over time in the case of ICBC, as consumers become aware of the detection models in place and the risk associated to defrauding their insurer.” U.S. insurance fraud solutions also differ dramatically from the models working in the UK, Gumpright added. While the concept of P&C insurance remains the same in both countries, the insurance models are significantly different, there-

fore prompting different types of fraud. “The UK purchasing model of car and home insurance in recent years has massively increased through aggregators or price comparison websites rather than direct, with fewer policies than ever before being written directly,” Gumpright explained. “In the U.S., however, much of business is still direct, with a large number of consumers still purchasing through the traditional broker model. While internal policy and claims management systems have advanced in the US, the route in for the customer is very different.” Some UK insurance lines, such as car insurance, are slightly more simplistic than the comparable offerings in the U.S., where coverage understanding is sometimes limited. Add to that significant differences on a state-by-state basis in the U.S., and the chances for fraudsters to slip through the cracks continue to grow. “The state of collaboration is another significant difference,” Gumpright added. “The UK’s data sharing model is significantly more advanced than most places in the world. For example, the UK market

has the Insurance Fraud Bureau (IFB), Insurance Fraud Register (IFR) and a dedicated insurance police task force, with almost all insurance companies collaborating to detect insurance fraud hitting the industry at large. “Collaboration is more complex in the U.S., often due to how states operate and their various rules. Datasharing capabilities exist, but they are significantly less advanced than that of the UK at this point in time. Indeed, some states in the U.S. don’t even count insurance fraud as a specific criminal offense yet.” We thank Insurance Business America for reprint permission.

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Continued from Page 4

Your Labor Rates

pretty good idea. For this index, the national average is listed as 100. The index number for your market represents the cost to live there as a percentage of that national average. For example: the cost of living index for Honolulu, Hawaii is 181, meaning that it costs 181% of the national average to live in Honolulu. Based on the cost of living index alone, we might expect to see body labor rates in Honolulu in the $103 to $159 range (that is, $57 times 181%, and $88 times 181%). Yet the survey data for posted body labor rates in Honolulu is in the $55 to $75 range, below the national average, and far below the cost-of-living-adjusted rates. As you can see, labor rates there appear misaligned with that geography’s cost of living.

2) Consider general consumer price inflation. This is simply the overall increase in prices of typical household expenditures. Inflation also erodes the purchasing power of money, as your dollars don’t go as far as they used to. In the US, inflation is measured by the Consumer Price Index (CPI) and is often used for cost of living adjustments (COLA), such as social security benefits. Last year in 2017, the CPI rose 2.1%, driven largely by energy costs, especially fuel oil and gasoline. To help maintain purchasing power and keep up with the overall increase in cost of goods, a shop could consider making an inflation adjustment to its labor rates. For example: if a shop currently charges $57 per hour, adjusting the labor rate for last year’s approximate inflation would yield a price of $58.20 (that is, $57 times 102.1%). Overall, our observation is that most body shops’ labor rates do not keep up with inflation over time, which puts those shops farther and farther behind every year, eroding their profits and purchasing power and risking their sustainability. Instead, we see body shops’ costs increasing at faster rates than inflation; paint costs alone could increase 3% to 8% per year, sometimes multiple times per year. We suggest shops think of keeping up with inflation as a mini22

mum requirement, not a real solution to choosing their proper labor rate.

3) Consider what makes your shop different, especially training, equipment, facilities, and OEM certifications. Shops are not alike, and those that have made more investment in these items likely have greater repair capabilities than shops that haven’t. And they likely require a higher labor rate to pay back and earn a return on those investments. Use the VRS to find apples-to-apples comparisons for your shop and what price ranges are for shops similar to yours around the country. For example: our national survey data shows I-CAR Gold Class shops have body labor rates in the $56 to $84 range; Assured Performance shops are in the $58 to $84 range; while Audi OEM authorized collision repair facilities range from $65 to $104 and Mercedes certified collision centers are in the $64 to $100 range. (All ranges quoted here are from that group’s average to plus 2 standard deviations. There is some overlap in these groups, and some shops are priced higher or lower.)

4) Consider what investments you need to make this year. How much money do you need to invest to improve your repair capabilities (especially for high technology vehicles), such as training, equipment, or earning OEM certifications? In general, your current labor rate only covers your current business. You likely need a new labor rate to cover new investments because your current rate was never priced to pay for them. Most body shop investments such as tools, equipment, and training are intended to make repair labor more skilled and effective. Equipment can’t repair a car by itself; it needs labor to put the equipment to use. The same goes for tools, facilities improvements, and certifications. Therefore, labor activity has the burden to pay off those investments plus earn a return. Let’s look at an example shop and investment: A shop needs to make a $5,000 training investment for a technician. The shop currently charges $57/hour for labor, has a 50% gross profit margin on labor, and wants to earn a 15% return on investment in one year for this train-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

ing investment. The technician bills 2,000 hours per year and operates at 100% efficiency. The 15% return on investment is $750 (that is, $5,000 times 15%). So the shop needs to earn back $5,750 (the $5,000 investment plus the $750 return) in one year. The shop decides to spread that cost evenly over the tech’s 2,000 billable hours, which calculates to $2.88 per hour. This is the additional amount per hour the shop needs to earn to pay back the investment in one year. Because the shop earns a 50% gross profit margin on labor, we divide the $2.88 by 50% to get $5.75. This is the additional amount that needs to be billed for each hour (via the labor rate) so that the shop earns the $2.88/hour profit it needs to pay off the investment and earn the return. Therefore, the shop’s current $57/hour labor rate plus the additional $5.75 equals $62.75, which is the new labor rate the shop needs to collect to pay for this $5,000 training investment and earn a 15% return. A similar analysis is needed for all the other investments in equipment, facilities, certifications, and

ongoing training. It can add up quickly. But shops that don’t adjust their rates to fund these investments quickly eat into their profits. Given the rapid increase in technology in this industry, we can expect a large and continual investment required to keep up with the training and equipment necessary to repair these hightech vehicles properly and safely. Mathematically, the industry’s current labor rates will only take a shop so far down that road before they are simply unable to afford the necessary investments. This leads to three major risks to shops: 1) lacking the knowledge to repair new high-tech vehicles, 2) putting consumer safety in jeopardy, and 3) putting themselves at legal risk by performing improper or unsafe repairs. None of these four tips are intended to be the only thing you do to compute labor rates. Think through all of these, look at the results, and then decide what price to choose. You can also go deeper with a more thorough cost of doing business analysis, examining competitive wage levels in your market, and deSee Your Labor Rates, Page 36

autobodynews.com / APRIL 2018 AUTOBODY NEWS

OE Shop Certification with Gary Ledoux

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

Collision Safety Consultants Opens Eight Locations – Poised for a Great Future Recently, Collision Safety Consultants (CSC), based in Belmont, NC announced the opening of eight new locations. Most businesses struggle to open one or two new locations simultaneously, but eight seems extreme. Autobody News contacted CSC President Billy Walkowiak to see just how this was accomplished.

Q: A:

How did you happen to open so many locations at once?

We actually opened these locations over the course of the last five months. Four locations happened at once, and the others followed soon after. But we knew they were all coming right along so rather than announce them one at a time, we waited until all eight were on board.

We noticed one of your locations is in Australia. That seems an unlikely place for expansion. How did that happen?

Social media is a wonderful thing! Our agent down there, Graham Judge, is a friend of a colli-

tralia, repairers are licensed by the Motor Transport Authority (MTA), also known as the Roads and Traffic Authority, similar to each state’s Department of Motor Vehicles here in the U.S., but operated on a federal level. Each repairer much be duly licensed through the MTA and thus capable of making proper repairs. The only problem is, the MTA will not or cannot enforce their own repair rules. Subsequently, so many cars are poorly repaired.

Eagle decision has certainly helped. I would attribute growth to two things. One, I believe we have proof of concept. There are so many bad repairs out there, and everyone in the industry knows it, and some entity has to call them on it. And two, we have no problem finding people for our new locations. I think there is a certain number of shop owners and managers that are just tired of dealing with the daily grind of running a shop and want to do something else.

Q: A:

So Australia has a lot of bad repairs. How else are they different?

For one thing, a bad collision repair in Australia is called a “dodgy” repair. (Maybe because they are trying to dodge the repair authorities.) And, they do not subscribe to the concept of diminished value… yet. Here in the U.S., a consumer can bring their car anywhere they like for collision repair. In Australia, a consumer must go where their insurance company tells them to go – unless the consumer wants to pay more for their policy. Then they can go wherever they please.

With these eight new locations, how many total locations does this give you? Did you have an ideal number in mind?

This gives us 14 upand-running locations. Numbers 15 and 16 are close behind and three others are in the talking stages. This includes one in Canada and one in Scotland. Ideally, we would like to have one to two locations in every state in the U.S.

sion colleague friend I have on Facebook. Because of that he saw some of my many posts about bad repairs. He contacted me and we started talking. He had been conducting post repair inspections down there but nothing was codified. He had no business plan and no inspection protocols. What he did have was plenty of bad repairs. So many in fact, he had to open a completely separate business, aside from his existing body shop, just to handle inspections. In Aus24

Q: A:

It seems your growth has been relatively quick.

We started inspecting cars in 2009 and registered the CSC name in 2010. Our growth has been steady but I must admit, the John

APRIL 2018 AUTOBODY NEWS / autobodynews.com

What is your business model? Is CSC a franchise?

Ours is an associate licensing and consulting agreement. For a fee, our licensees get our expertise and national recognition.

Who are the people/businesses running these new locations?

Are they existing body shops, former shop owners, other?

We have a number of different collision industry people operating our locations. Some are current or former shop owners or managers. We have a couple of former insurance adjusters. But all are very knowledgeable and go through the same CSC training.

What requirements does one have to meet in terms of knowledge, experience, equipment, etc. does a new location have to meet?

First, they must have a sincere desire to help the consumer —to keep their family safe. They must have the sincere desire to ensure that proper repair methods are followed. What is in their

See Eight Locations, Page 44

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OE Shop Certification with Gary Ledoux

OE Shop Certification Programs: Assured Performance Network This month, we’re looking at the Assured Performance Certification Network, representing Ford, Nissan, FCA, Infiniti, Hyundai and Kia (Ford was handled in a previous profile.) For this interview we caught up with Scott Biggs, industry icon and CEO of Assured Performance.

Does your program have a specific name? When was it started?

The Assured Performance Certification Network was formed starting in 2003, and has since grown to include joint-effort collaboration with several OEMs. Now, Assured Performance Certified Repair Providers have the option of multiple OEM Certifications and Recognitions through one centralized and managed

program, saving redundancy and extraneous costs. The joint effort program includes the following OEMs:

1. “FCA Certification Collision Care” Program launched in 2012. 2. “Ford National Body Shop Network” Program launched in 2014.

3. “Nissan-Recognized Collision Care” Program launched 2012. In 2014, Assured Performance took over administration of the program.

4. “Infiniti-Recognized Collision Care” Program launched in 2012. In 2014, Assured Performance took over administration of the program.

5. “GT-R Certified Collision Repair Network” Program. Assured Performance took over administration of the program in 2017.

6. “Hyundai-Recognized Collision Care” Program launched in 2015

7. “Kia-Recognized Collision Care” 26

Program (most recent partnership) launched in October 2017.

Q: A:

What is the main purpose of the program?

To identify and officially certify and/or officially recognize collision repair providers that possess the proper tools, equipment, training and facilities required to properly repair automobiles to manufacturers’ specifications—ensuring the fit, finish, durability, value and safety of the vehicle and to assist consumers and insurers with locating and connecting with those Certified Repair Providers.

What are the program requirements?

There are 36 major requirements that shops must meet, and an additional eight if they wish to be aluminum-certified for the Ford program. Edited for brevity, here are some of the main requirements:

General Business Requirements: • Be in business for at least five years • Provide proof of Garage Keepers liability insurance • Provide a limited lifetime warranty on all work performed Customer Service Requirements: • Measure customer satisfaction through a third-party provider • Have a professional and wellmaintained customer reception, waiting and restroom area • Utilize a preferred rental car provider General Technical Repair Capability: • Meet I-CAR Gold Class or equivalent with proof of ongoing training • Subscribe to current OEM repair procedures and have the ability to provide documented proof of compliance • Utilize a frame rack or dedicated/universal fixture bench with ap-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

propriate vehicle anchoring and pulling capabilities • Utilize an electronic, three-dimensional vehicle measuring system Advanced Materials Repair Capabilities: • Must have a 220 volt, 3-phase Inverter STRW welder • Must have a 220 volt MIG/MAG welder • Must have a dent removal/pulling system for steel panels Aluminum requirements include but are not limited to: • Isolated aluminum work area • Tools designated for aluminum work only include all special tools, as specified by Ford Motor Company • 220 Pulse MIG welder specifically for use with aluminum • Utilize a special SPR rivet gun, as specified by Ford.

Q: A:

What are the program benefits?

The Assured Performance Network of dealer-owned and independent Certified Repair Providers benefits includes the following:

• Official certification and recognition by more than 63 percent of the OEMs under one program, including Ford, Nissan, Fiat, Dodge, Jeep, Chrysler, Lincoln, Infiniti, Hyundai, GT-R and Kia.

• Leverage the OEM brands: Use of the official OEM-certified signage, OEM logos and badges to promote and market the shop through use in marketing, advertising, social media, online and recruitment. • Listing on online shop locators and smart apps with appointment set-

ting. Certified shops are listed on multiple online shop locators with the exclusive ability to set appointments directly with a certified shop. These sites include the following:

♦ Consumer-Facing Certified Shop Locator ♦ autobodylocator.com ♦ Insurer-Facing Advanced Repair Capable Certified Shop Locator ♦ advancedrepaircapable.com ♦ OEM Branded Certified Shop Locators ♦ nissancertifiedshop.com ♦ fcacertifiedshop.com ♦ fordcertifiedshop.com ♦ hyundairecognizedshop.com ♦ infiniticertifiedshop.com ♦ crashrepairinfo.com ♦ mopar.com/collision

• Marketing and collateral materials provided by all of the OEMs to promote their official status with the OEMs.

• Multi-media in-shop system (eLOBBY) for consumer awareness and shop promotion, including lobby area electronic signage and

full-length videos as well as revolving OEM messaging. • ShopOps operational process management system that includes a full library of processes, procedures, checklists and job descriptions, a turnkey HR management system, KPI reporting, business development and planning tools, data management and safeguarding, customer relations management, training management and tracking.

• Electronic Quality Assurance Program (OE-QC) that enables the shop to efficiently document using OEM repair procedures and the adherence to a quality control checklist electronically, including the use of smart devices at the technician level. • On-demand, data-driven marketing for various OEMs, based upon the shops own historical customer base.

• Collision Care Marketing Tools: Access to a suite of Collision Care marketing materials to differentiate Certified Collision Repair Businesses

from local competition; includes press releases, eLOBBY, eLISTINGS and On Demand Marketing.

• OE Owner Referrals: OEM Direct Consumer Marketing, as OEMs send millions of consumers direct emails and letters throughout the years to their vehicle owners promoting the Certified-Recognized Collision Repair Programs

Q: A:

What shops are eligible?

Any dealer-owned, independently owned body shop or MSO that meets the certification’s combined requirements as published. Some OEMs have additional requirements, e.g. Ford Certification requires additional aluminum-specific [requirements].

• Manufacturer Collision Consumer Education: consumer education marketing and multi-media videos and commercials that highlight the importance of using OEM parts and a FordCertified Collision Repair location.

Must an independent shop be sponsored by a dealer? If so, has that caused any problems?

• OEM Repair Procedures: Various OEMs subsidize the cost of the subscription to their OEM repair procedures for the Certified Collision Repair Centers.

Q: A:

• Business Improvement: Turnkey system to assess and chart improvements and performance throughout the business. The system is supported by independent consultants to assist as desired, optionally.

There are requirements to have a dealer sponsor the shop for some of the OEMs, but dealers are NOT limited to how many and which of their body shop customers they can sponsor, eliminating the opportunity for unethical practices in pay-to-play and extorting for access.

Which OEs do you represent? Assured Performance is the partner and administrator for

See Assured Performance, Page 30

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Page 27

Assured Performance

Nissan, FCA, Hyundai, Infiniti, Ford and Kia.

What is the fee for the program? Does the program run on an annual basis?

$2,950 per year is the base certification fee for independent shops, plus various optional marketing and signage fees specifically for each OE certification-recognition the collision repairer elects to enroll in. All programs combined are approximately $6,300 annually total, but there is no cost for the ShopOps or Quality Assurance systems. This total cost represents less than 40 percent of the full overall costs of all of the programs. The shop’s annual fees are subsidized by the participating OEM by as much as 60 percent. Yes, the program runs on an annual basis.

tions?

Do you inspect every shop and if so, who does the inspec-

Yes, every collision repairer is inspected and audited onsite on an annual basis. The results are documented, electronically published and posted online for additional internal auditors to review and approve. Assured Performance maintains a national network of onsite inspectors/ auditors that use smart apps with GPS location tracking to ensure integrity.

Is there an optimum number of shops you want to have and if so, how close are you to reaching that number?

Yes, our overall objective is to maintain 100 percent demographic and geographic coverage of all urban, rural and suburban market areas and have adequate coverage to meet the repair needs for all units in operations for all of the brands represented. This requires approximately 3,000–3,600 certified repair providers across North America.

Q: 30

Have you had any shops drop out and if so, why?

So far, only about 2/3 of all of the shops that apply are able to eventually become certified and remain in the program. The annual renewal rate is nearly 90 percent because most of the collision repairers have continued in the program, unless they sell out to a consolidator or go out of business.

What has been the biggest challenge in establishing the network?

Our initial challenge was getting the industry to understand its value and importance. However, once we established a national footprint of well over 1,000 shops, the momentum changed. Getting to 3,000 is now a matter of shops re-investing to improve their business. While approximately 10–15 percent of the industry is well on its way to becoming OEM- certified (3,500 to 5,000 shops), the rest remain fixed on the past. Many collision repairers claim they have a great reputation in their market and generate plenty of work without the cost of compliance and certification credentials. There are also many shops that elect to operate outside of the mainstream and don’t feel they’re part of the equation. A massive percentage of the market focuses on cosmetic repairs and/or low-cost, consumer-paid repairs and wrongly assume they don’t have to have the OEM-required tools, equipment and training to still be able to repair the next generation of vehicles.

Q: A:

What is you biggest challenge in maintaining the network?

The biggest challenge in maintaining the network is keeping all of the moving parts focused on the big picture and overall vision of a “proper and safe repair while consumers receive an exceptional treatment.” There are always people popping up with a new idea and metoo program that look shiny and exciting that can distract the market. With any program, there is always the challenge of keeping the shop engaged and using certification correctly to differentiate them and have them stand out from the non-certified shops in their market. We have continuously added more OEMs and

APRIL 2018 AUTOBODY NEWS / autobodynews.com

more value to the program to ensure that the shops see and gain value. Our overall objective is to ensure our network is filled with best-inclass businesses performing at their peak potential. To achieve that, we have to invest several million into the IT and innovation with new tools for quality assurance, business improvement, consumer awareness, marketing, human resource management, customer service and data integrity. Certified Collision Care Providers are extraordinary and not the same as body shops. They need to look and operate differently by using the tools that are available to them to improve their business model.

Based on the recent John Eagle decision, will you make any changes to your program?

We have already made the changes by introducing an OE-QC Quality Assurance program to enable shops to properly and adequately electronically document their use of OEM repair procedures and help manage their technicians’ compliance to quality for 100 per-

cent of their repairs. This is far superior to the spot check approach. NOTE: We are the only organization or certification program from any OEM with this tool, and it is offered at no charge to our Certified Repair Providers as an integral part of their certification.

What do you see for the future of OE certification programs?

The future of the OEM certification programs will be stronger, and more than ever, the backbone to ensuring vehicles are properly repaired to protect the consumers. With vehicles becoming more advanced in material and technology, coupled with the introduction of telematics, the OEM is going to be playing a bigger role in the collision business. Eventually, consumers will demand that their new generation vehicle only be repaired by a shop that is certified to repair their specific vehicle.

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Old School Know How with Ed Attanasio

Teresa Aquila Just Won’t Quit... Ever! To say that Teresa Aquila takes life by the reins is the understatement of the century, because ever since she can remember, she’s been doing it all without slowing down.

chanic, shot as a reserve cop and marginalized by men in the automotive industry at every turn, but she keeps coming back with more fervor and determination than ever before. As a renowned mechanic, columnist, teacher and the producer of a popular auto repair radio show for women, not to mention a policewoman, Aquila isn’t afraid to take chances and follow her dreams. Her mechanical career has spanned more than four decades, working on everything from Porsches to heavy equipment, including her personal fleet of classic Teresa Aquila owns a fleet of 13 classic vehicles, all of vehicles—all of which she which she completely restored herself restored herself. Aquila’s weekly radio show, At age 63, Aquila doesn’t have a pause button—only forward, and “Teresa’s Garage Radio Show,” is that’s the way she prefers it. She has broadcast on 1180 AM KCKQ every been injured on the job as a me- Tuesday at 2 p.m. PST. Her show’s

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

tagline is “Empowering Women One Wheel at a Time,” dedicated to women who dare to be different and desire to become more knowledgeable of car care.

“We’ve presented topics like how to find a good body shop, the differences between aftermarket and OE parts, the telltale signs of a bad body shop, and recently we interviewed Rocco Avellini, the founder of Wreck Check Centers about how to avoid shoddy collision repairs,” she said. “The show’s overall theme is to educate women about cars and how to repair them, in order to protect them as consumers.” Aquila’s career in mechanical repair started right after high school graduaAquila recently celebrated her 41st year as a Washoe tion, she explained. County reserve sheriff “I got a job working on Aquila’s show deals primarily a fleet of ice cream trucks, and I with mechanical repair, but occa- learned a lot by observing their mesionally includes various topics that chanic,” she said. “He taught me are related to the collision repair in- about brakes, engines and carbureSee Teresa Aquila, Page 50 dustry.

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Shop Strategies with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Father-Son Team Take Unique Approach to Foster New Talent in NM Jim Guthrie and his son, Sean, have always had a passion for cars— whether that has been repairing them, restoring them or racing them. Currently operating Car Crafters in Albuquerque, New Mexico, the father -son team’s mission is “to be the body shop of choice for customers, insurance companies and employees, while providing the highest quality and safest repairs available today.” As a teenager, Jim spent his free time repairing cars in his parents’ two-car garage. They eventually told him to either focus on college or open a body shop. Jim opened Car Crafters in 1982. When Sean was old enough, he helped out at the shop— sweeping floors, throwing out the

larger buildings. By 2015, we had a very, very large 80,000-square-foot single location earning $16 million a year. At the time, we were in the process of building a second location when we had the opportunity to acquire three additional facilities, which were owned by our closest competitor in the market. We opened those stores on April 1, 2015. Everyone thought it was an April Fool’s joke when we walked in and said that Car Crafters was acquiring them. By the end of 2015, we finished construction on the shop we had already started, so within eight months we were operating five stores. Over the next year and a half, we added two additional locations—one in July 2016 and the other in January 2017. There was a lot of growth very quickly. Five stores are in Albuquerque and two are in Rio Rancho. We don’t have any plans to open additional ones at this time. Since opening our most recent facilities, we’ve foEmployees at Car Crafters’ main location in Albuquerque, cused on organic growth, New Mexico becoming more efficient at trash and working on vehicles. He what we do and improving our cycle began working there full-time during time. high school and is currently the director of operations, overseeing all How did the company adapt seven of the company’s locations. from operating one location This includes managing operations, to seven in such a short period? handling insurance company relationships and coordinating OEM cerIt was a challenge. Before the tifications. acquisition, I was managing Sean said he and his father al- our original location with one of our ways had a great working relationship, long-term employees, Kevin Welwith Jim working on the business and don. When I look back, it seemed easy Sean working in the business. Autobody News spoke to Sean about the to operate that store. Although we had company’s recent growth and the a large staff of 80, it was like a big unique program they offer that has family because we had grown together helped the body shop attract and retain for so long. It was a huge change for new talent. us to gain 50-plus employees suddenly. What prompted the decision Instantly, I took over the largest to expand Car Crafters after store we acquired and began impleso many years? menting our company process and culture. The others were managed by Over the years as the business my father and I as well as another grew, my father kept buying long-term employee, Jim Snelson.

We spent the first few months cleaning the shops and reorganizing our staff. This included hiring new employees and training. There has been a lot of personnel movement. First, we did it out of necessity; even-

moves for the better of the employees. It was a whirlwind. I don’t know if we did it right or wrong, but we stayed successful through it all and now all of the locations are run very well. In hindsight, I would say we did it right, but I can’t tell you what the magic sauce was. It was just a lot of hard work.

With this exponential growth, how have you staffed your business?

We’ve developed a good training program—the Car Crafters’ Car Crafters operates seven locations in New Mexico Training Program—to bring tually we made changes because we in kids from high school. If they realized certain employees live closer don’t have money to spend and don’t to one of the locations or different know what they want to do—but like personalities work better together. cars—they can come in as a detailer We’ve done some of the moves for or floor sweeper and sign up for the better of the business, and some training. I developed a process that

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takes them step-by-step through the very early stages of dumping trash to being a disassembly technician. From there, they can pick their desired path: estimating, painting, body repair, parts department, etc. We use a lot of I-CAR training to supplement the program and it takes two to four years to complete, depending on how quickly they learn and how much talent and drive they have. We’ve found that taking kids who are around 19–21 years old and letting them learn from the more experienced body men has benefited our business. Not only has it helped us staff some of our new stores, but it has addressed the problem this industry has—finding new talent while current employees keep getting older. We offer that program for the paint shop, body shop and the estimating staff. I believe it has been one of the big keys to our success. The average age at our shop is now well below 40. This is definitely below the industry average.

How has using a consistent process throughout the loca-

tions helped you manage the stores?

and my dad is currently on I-CAR’s board of directors. All of our emAll of the shops use the same ployees are I-CAR-trained and Car set of Standard Operating Crafters has been an I-CAR Gold Procedures (SOPs). Our customer Class Shop for more than 30 years. Our goal is to have our employservice reps (CSRs) meet regularly ees go through the first level of I-CAR training. Then we focus on having them concentrate on the Professional Development Program and become a Platinum Technician. As a result, we have seen an increase in the quality of the work that is performed. It also gives us comfort in Race cars built and driven by Jim and Sean. Jim’s is the knowing that all of our emblue 2012 Mustang and Sean’s is the orange 2003 Mustang ployees are as trained as and work very well together. The they can be. The only I-CAR-trained instrucsame holds true for our estimators. We hold manager meetings more fre- tor in the state of New Mexico hapquently and we find they often call pens to work for us. We often use our each other on the phone to discuss conference room at the main location to hold training sessions for our emoperations. ployees as well as those from neighWhat type of training have boring shops. At the SEMA show in Las Vegas this you implemented? past year, we received the Russ We are a firm believer in hav- Verona Memorial Award from Iing our employees trained, CAR at the inaugural Collision In-

Q: A:

dustry Red Carpet Awards Breakfast hosted by The Society of Collision Repair Specialists. We are very proud and honored to have received this award.

How has ongoing training helped you run your business more effectively and learn about employees?

If you had asked me several years ago, it would have been difficult to answer because we had been doing things for so long that it was just part of our business. When we took over the other stores, the new employees weren’t I-CARtrained. We also hired additional employees through our growth that weren’t trained. When employees come back from class and are excited about what they learned, we know they enjoy the learning culture and most likely are going to be with us for a long time because their morals and thought process align with ours. On the other hand, we find that those who grumble about it, more times than not, just don’t fit our culture.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

It has been good for us to see the personality of the individual. It lets us know that we’re doing as much as we can to train our people to make sure they fix cars correctly, and that’s what is important—getting cars back to pre-loss condition.

knowledge and know what to expect. It’s also good for our marketing to be able to showcase that we’re certified in so many different makes, and

You have required a substantial number of OEM certifications. What is the main benefit of doing this?

We currently have 15 different OEM certifications. We started acquiring them about four years ago. In our market, we have a pretty low income per capita. There are not a lot of high-end cars that require certifications, so it’s difficult for us to say what the ROI is as far as fixing an Audi or Porsche. However, what the certifications have allowed us to do is completely understand all of the new technology that is now in these vehicles. The high-end cars might have certain technology years before more common vehicles do. All vehicles are going to have it eventually and it’s helpful to have that floor

Continued from Page 22

Your Labor Rates

termining your profit goals then backing into the labor rate needed to hit that goal. These require having a good handle on your financial statements and a good spreadsheet or calculator to help with the calculations. Also keep in mind that as unemployment in the US continues to drop, wage levels will increase, and it could become more expensive to acquire new employees and retain good ones. Shops need a labor rate that can support paying competitive wages. If you find yourself choosing between two rates, we suggest erring on the high side to help stay ahead of the increasing wage curve. Remember, there is no rule that says you can only set your labor rates once per year. Prices can change at any time for any reason, and because markets and businesses are dynamic, labor rates can and do change continually throughout the year. We advise shops to consider their labor prices several times per 36

shops and helps out where needed. We do the same for glass repair. By employing people who focus on these jobs, it helps our cycle time, which of course helps the insurance company relationships and customer satisfaction. It has also increased our profitably because we have access to individuals who do the work inhouse rather than subletting it.

How has intergenerational knowledge enabled your business to grow?

Q: Over the last four years, the company has acquired 15 OEM certifications

gives the customer peace of mind knowing that if we can fix high-end cars, we can fix anything.

In addition to collision repair, what other services do you offer at Car Crafters?

All of our stores have mechanical capabilities, alignment machines and tire machines. Some have a full mechanic who can do electrical diagnostics. A couple of the smaller stores don’t have someone with a full background, so we have one guy who floats among those

year as their business evolves, cost structure changes, and investments are made. They can change rates as often as they need to. And very importantly, shops can freely report their new rates to the independent VRS Labor Rate Survey at LaborRateSurvey.com. Pricing transparency is essential for free markets to function efficiently, so your survey participation is critical. In conclusion, pricing your labor can often be more complex and more involved than this, especially considering all the investment needed to repair high-tech vehicles, but these simple four steps can help get you in the right range and closer to the right price for your individual shop. For a deeper analysis of your labor rates, greater access to more independent labor rate data, or help with any of these topics, contact National AutoBody Research for more information. www.nationalautobody research.com

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APRIL 2018 AUTOBODY NEWS / autobodynews.com

From the top-down, there has been intergenerational learning at Car Crafters. We have a lot of father-son teams and uncle-nephew teams. Over the years, I’ve learned a lot from my father, Jim. We’ve always done a ton together and have a really close relationship. Growing up, I raced professionally with him. He was a team owner and we were traveling 20-plus weeks out of the year through the early 2000s. Then I was working for him on top of that. At one time, we lived together, worked together and raced together.

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He was best man at my wedding. We just work really well together. Sometimes, we don’t see eye-to-eye but we’re not afraid to discuss it---heatedly, if needed. We have considerable respect for each other and know that we have the same goals in mind. Sometimes, we just have to figure out how to accomplish those goals either together or from separate ends, attacking it toward the center.

Q: A:

What are Car Crafters’ future goals?

We focus on being a little bit better every day and we encourage input from any of our employees. It doesn’t matter if they have been with us for a week or years; if they have an idea, we want to hear it. I think that has been a huge portion of our success. We’re also a family of believers, and that’s my family as well as a good majority of the people who work for us. We pray before our company meetings and our dinners, and we definitely feel like we’ve been blessed and we’re not afraid to give back and to let people know what we have is a blessing.

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National News

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

Do OE Certifications Really Provide Accountability, Transparency? If you mention the John Eagle case to anyone in any body shop, anywhere in the country, they will likely know exactly what you’re referring to. It’s a landmark case that has caused ripples throughout the entire industry and elicited conversations about how to make sure that it doesn’t happen again. Curtis Nixon is the president, CEO and co-founder of UpdatePromise in Chino Hills, CA. As a former second-generation body shop owner, he has been creating technology to help collision repairers and dealership service departments improve their customer experience since 2009, when he sold his family’s shop and co-founded UpdatePromise. The company has grown at a tremendous rate within the last nine years, and today UpdatePromise and its ancillary companies communicate with millions of consumers and services throughout North America. In a recent conversation, Nixon posed this question: Who should assume the lion’s share of responsibility for making sure that repairs are performed based on OE guidelines? How do we know that an OE-certified shop is actually performing OE repairs? Nixon sees definite value in third-party certification companies and isn’t critical of the role they perform in the collision repair industry. But he also strongly believes that the time is right to open a conversation about expanding these roles for the betterment of the industry, he said. “John Eagle was a ProFirst Honda shop when they glued that roof on that Honda Fit, so obviously they weren’t adhering to OE procedures in that case. So, my question is: Does there need to be another level of accountability required for shops with manufacturer certifications? If you’re a shop with one or more third-party certifications and there’s no ongoing accountability, how can the consumer or the insurance company be certain that you’re performing OE repairs?” Nixon questioned whether certification companies are doing their

due diligence. “Most third-party certification companies do onsite random inspections, but many of them will admit that they only inspect less than 1 percent of all repairs,” he said. “Some others inspect facilities, but never check out a tech’s work for quality or to make sure that they’re adhering to OE procedures. If a shop has a technician who has been identified for having low CSI scores, is there any type of accountability while that tech is still working on car after car?” Nixon believes that the data is already there, and that all we need to do is collect it and use it to monitor repairs. “When we collect data, it often deals with the customer experience, but we also ask about the quality of the repair and if the car came back for whatever reason,” Nixon said. “If we can see that those scores are consistently low, there is a problem at that shop and something needs to happen to rectify it. If we can use the data that is already available to us, combined with inspections and then aligned with accountability, it’s the next level. If the data is there or can be gathered easily and it helps the industry as a whole, why not at least take a close look at it?” If a tech is consistently producing sub-standard work, he needs to come off the line to protect the shop and ultimately, the consumer, Nixon said. “There’s no direct certification of that tech that really comes with any ramifications. If you go to a surgeon and he does a bad surgery, his license is in jeopardy and he is accountable for his shoddy work,” he said. By using technology, the job of vetting every tech is easier than you might think, Nixon said. “In today’s age, we should be able to use things like predictive modeling, artificial intelligence and machine learning in conjunction with all of the data that we’re already extracting to find those shops that need frequent monitoring and more than

APRIL 2018 AUTOBODY NEWS / autobodynews.com

just a few random inspections every year,” he said. Once the data tells them what to do, they need to inspect the work of a particular painter or tech and determine if they should still be fixing cars, he said. “Just because a shop has the right equipment and training, how do we really know if a tech knows how to use it?” he said. “We don’t have an accountability program in this industry right now, but we need one. If we can provide a new level of transparency and show the consumers that the person fixing their car is truly skilled and experienced to do the job, that’s the goal. Could we have predicted that John Eagle Collision would have encountered the problems that they did, which eventually led to their demise? Who knows, but if we can develop a program where an under-trained or inept tech isn’t allowed to work on ve-

hicles until they’re back up to speed, that could prevent a lot of these mistakes before people get hurt and everyone ends up in court again.” Industry veteran and former OEcertified shop program administrator Gary Ledoux also has some definite ideas about the topic. “The car manufacturers, especially those that make non-luxury, mainstream brands have spent a lot of time and effort to get their networks built and have done a great job doing that,” Ledoux said. “And if the collision repair landscape was the same today as it was when they started building their networks, they might be able to ride that business model a while longer. But things changed dramatically on October 2, 2017 in the wake of the John Eagle decision. The stakes are higher today for everyone. It’s time to kick things up a notch, and hold certified shops accountable.

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“Most shops joined OE-certified programs for the right reason,” Ledoux said. “Their hearts are in it, and they want to do a proper and safe repair for their sake, the sake of the OE and most importantly, for the sake of the customer. Others joined only because they thought an OE certification was just another DRP, but with a different flavor. They may have taken the training and bought the requisite welder, but it did not change the improper way they repair cars. These shops need to be identified and removed from the certified rosters, and there are several ways to do that. It’s just a matter of finding the right way.” Michael Anderson from Collision Advice believes that the OEs are going to step up and assume more of the responsibility and accountability after the John Eagle case and tap into a lot of new technology to help them achieve their goals. “I can tell you that through my interactions with the OEMs, I have learned that their two main concerns are first safe repairs, and [second] protecting their brand,” Anderson said. “They recognize a need for oversight

and absolutely feel as though there needs to be some meat on their programs, including an auditing process. So, they’re all cognizant of that and some OEs will lead the way, but they all know that it’s a necessary progression to make this industry better as a whole.” Anderson believes that you will see a time in the very near future where if a shop is certified, the manufacturers will start to monitor how often the shop researches their repair procedures. “For example, if you’re repairing Hugos, they are going to monitor how often you pulled the OE procedures on a Hugo—What did you pull, what did you review and how long [did] you review,” Anderson said. “I also believe that the OEs will demand that all of their certified shops be required to show proof that [they] scanned the vehicle with an OE scan tool so that [they] can verify that all of the car’s safety and comfort features were working before that vehicle gets released back to the consumer.” New technology and pertinent data will help this evolution as well, Anderson explained.

“In addition, I think that when a shop is writing an estimate, certain lines will trigger certain types of documentation that you will have to provide as a collision repairer,” he said. “For example, if a shop writes an estimate listing a setup and measure, it will trigger a response stating that the shop will have to take a photo to show how that vehicle was anchored to a frame machine. Also, the OEs will start carefully monitoring the CSI data about a shop to make sure they’re doing things right. So, if a shop has a lot of comebacks or surveys showing that the vehicles were not fixed properly, the OEs will audit that shop or technician’s work. If a shop does not make the standard (for example, if you work on 100 cars but only access repair procedures for 20 of them), then that will be grounds for dismissal from the certification program.”

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Maaco Ranked 228 on Entrepreneur Magazine Franchise 500 List

Maaco Auto Painting and Collision Repair, part of the Driven Brands Inc. family of automotive aftermarket franchise brands, has been ranked in Entrepreneur magazine’s Franchise 500. “It’s an honor to be recognized among the top companies in the world,” said Jason Ryan, president, Maaco Auto Painting and Collision Repair. “Through the past year, we have strengthened our operational and financial performance and focused on strategic growth for our network. This is a tremendous sign that we are on the right path for success.” The key factors that go into Entrepreneur’s evaluation include costs and fees, size and growth, support, brand strength and financial strength and stability. All franchises are given a cumulative score based on more than 150 data points, and the 500 franchises with the highest cumulative scores become the Franchise 500 in ranking order.

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Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

OEM Info Websites Have Existed for 15 Years 20 Years Ago in the Collision Repair Industry (April 1998) Roger Wright of Integon Insurance agreed that the existence of nonOEM parts may have resulted in higher prices for some OEM parts for which there is no non-OEM version. “That’s why moldings are $200,” Wright said. “It’s interesting: When you look at the gross parts dollars combined [for OEM, non-OEM and salvage], it’s still about the same part of the estimate as it was before nonOEM and salvage parts were used extensively. But what if we say, ‘Okay, let’s not use non-OEM; let’s just use OEM.’ What’s going to happen to parts pricing then? We’re just scared of that as an industry.”

In 1998, Roger Wright said insurers recognize that non-OEM parts help hold prices of some OEM parts in check while resulting in higher prices for parts without a non-OEM alternative

He said insurers do have some other leverage regarding parts pricing by informing vehicle manufacturers how the choices they make affect insurance premiums for a particular vehicle. He said insurers contacted one manufacturer about higher claims cost for vehicles that didn’t have break-away mirrors. “We said if you want to continue to have this as an insurable vehicle, you have to put the break-away mirrors on, and they did,” Wright said. “Can we do the same thing if they start raising the price of parts? Can we make the car uninsurable from a customer stand-point? Yes. So there is a little leverage there.” – As reported in The Golden Eagle. Wright was speaking during a panel discussion regarding nonOEM parts during an Automotive 40

Service Association annual meeting. Wright later worked for other insurers (including AIG) and collision repair chains (CARSTAR and Sterling Auto Body) before forming Vector Squared, an independent consulting firm, in 2014.

15 Years Ago in the Collision Repair Industry (April 2003) Accessibility to OEM repair information continued to be a topic of discussion within the industry and at the Collision Industry Conference (CIC) in Phoenix in April. In a presentation for the CIC “OEM Committee” on how Ford Motor Company takes collision repairs into account when designing vehicles, Steve Nantau, collision repair supervisor for the automaker, said his company now has repair manuals available for many of its models and expects to have manuals for all models by the end of this year. Bill Haas of the Automotive Service Association pointed out that 22 automakers currently have service and repair information available to shops via website. Subscriptions for access average about $20 a day and offer shops immediate access to the specific information they need. He cited an example of a shop that had replaced a door on a 2002 Nissan Altima but couldn’t get the power window to open or close completely. “There’s a relearn procedure that’s necessary for the power window,” Haas said. “That procedure is available on the Nissan website. So the technician was able to access that service information immediately, go back to the vehicle, perform the relearn procedure and make that car deliverable.” – As reported in Autobody News. Nantau retired from Ford, and Haas is now an independent consultant and trainer. Links to OEM information websites for more than three dozen automakers can be accessed via www.OEM1stop.com. 10 Years Ago in the Collision Repair Industry (April 2008)

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Mitchell International and CCC Information Systems say they will continue to operate independently for the next 2–6 months until the merger the two companies have announced is approved by regulators and final-

In 2003, Steve Nantau said Ford Motor Company was expanding the amount of collision repair manuals it was making available to the industry

ized later this year. At that time, CCC’s CEO Githesh Ramamurthy will become CEO of the new “CCCMitchell, Inc.,” and current Mitchell

CEO Alex Sun will become president of the new company. Termed a merger-of-equals, its new board will have equal representation from each of the two private equity firms that currently back CCC and Mitchell. Longer-range plans reportedly being discussed within the companies include creation of a new common electronic estimating platform that will use Mitchell’s database. One side note to the CCCMitchell announcement: Sources say that just such a merger was something Tony Aquila unsuccessfully worked to make happen while chief operating officer at Mitchell in 2003– 04. After leaving Mitchell, Aquila founded Solera, now the parent company of Audatex, which now must compete against the merged CCCMitchell. See OEM Info Websites, Page 47

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Tips for Busy Body Shops with Stacey Phillips

Emotional Intelligence Is a Key Element for a Successfully Run Body Shop

Whether a body shop is looking to success is emotional intelligence.” In 2016, entrepreneur.com stated ence in life,” she said. increase productivity, enhance team Marino explained that this is reIn a worldwide study of what that people with a high EQ make more performance or foster better leaders, ferred to as a person’s “EQ.” companies look for in hiring employ- money—on average $29,000 more Adrianna Marino said emotional Throughout her decade of expe- ees, Marino said 67 percent of the per year than those with a low EQ. intelligence can help achieve such rience studying emotional intelli- most desired attributes were found to “The link between EQ and earnbusiness goals and be a key factor in gence, which includes a certificate in be EQ competencies. ings is so direct that every point inrunning a successful company. crease in emotional intelligence adds The North American sales train$1,300 to an annual salary,” said “The link between EQ and earnings is so ing leader at AkzoNobel spoke to a Marino. “These findings hold true direct that every point increase in emotional group of body shop owners and manacross all industries, in all levels, in intelligence adds $1,300 to an annual salary,” agers about the benefits of emotional every region of the world.” intelligence during an AkzoNobel Marino outlined the four areas — Adrianna Marino Acoat Selected performance group of emotional intelligence: self-recogmeeting in San Diego, CA. EQ, Marino said she has found that a By being aware of emotional in- nition, self-management, social man“Emotional intelligence is a way better understanding of a person’s telligence, Marino said employees agement and social recognition. She of recognizing, understanding and emotional intelligence has numerous will increase the likelihood of improv- then shared tips on how to incorpochoosing how we think, feel and act,” benefits for the workplace. These in- ing their communication and problem- rate these competencies into a persaid Marino. “It shapes our under- clude enhanced employer/employee solving skills, decision-making skills, son’s personal and professional life. standing of ourselves and interactions relations, an improvement in company leadership, sales skills, teamwork and with others.” culture and a decrease in employee team performance. Self-Recognition: Someone who has low emotional turnover, burnout and absenteeism. “Productivity improves, as well Self-recognition involves self-awareintelligence may feel misunderstood Marino has found that most peo- as relationship satisfaction, customer ness and understanding, personal acand unappreciated, blame others for ple aren’t comfortable talking about service, conflict management and ceptance and an overall understanding their problems and is subject to emo- their feelings. overall effectiveness,” she said. of personal psychology. Marino said it tional outbursts and moodi“All human beings, reness. In contrast, Marino gardless of gender, have said those with high emofeelings and emotions they tional intelligence learn and bring to the workplace,” she adapt to audiences and situsaid. “We don’t work with ations, assume responsibility robots and machines every www.anciravolkswagen.com and take control of their perday. We work with human formance and productivity. beings. Whether we like it Adrianna Marino, North American During her presentaor not, we have to talk about tion, “Applying Emotional sales training leader feelings and emotions.” at AkzoNobel Intelligence for Personal She said the key word is and Professional Success,” Marino “choosing.” explained to attendees how emo“We get to choose our thoughts, tional intelligence can shape interac- behaviors and feelings every day,” she tions with others, define how people added. “We’ve all heard the adage: learn, help set priorities and deter- “Leave your stuff at the door when you mine the majority of a person’s daily walk in. Well, it’s not possible. The • Free Daily Local Delivery to the San Antonio Metro Area actions. good news is you can learn how to ma• Extensive Inventory & Competitive Pricing on all Genuine She shared information from Dr. neuver that. That's what emotional inVolkswagen Parts - updated daily Michael Rock, a specialist in this telligence is going to teach you.” • Professionally Trained Staff of Wholesale Parts Specialists area, who designed and taught “EQ Numerous studies have shown • Regional/National parts Locating Service Available and the New Workplace.” that managing emotions is something “People typically attribute the that can be learned and directly influ6125 Bandera Road Parts Direct: 210-681-5050 lion’s share of their success person- ences a person’s professional and perSan Antonio, TX 78238 Fax 210-684-5303 ally and professionally to their men- sonal success. Hours: tal intelligence or IQ,” said Rock. Marino cited a study from UC Mon-Fri 7:30am - 6pm; Sun 10am - 2pm “Research in psychology and human Berkley PhDs that showed EQ was

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performance over the last 20 years indicates that mental intelligence does contribute to success, but the far more significant intelligence that accounts for personal and professional 42

four times more powerful than IQ in predicting who achieved success in their field. “It may be responsible for up to 80 percent of the success we experi-

APRIL 2018 AUTOBODY NEWS / autobodynews.com

is foundational to social awareness and self-management. Some of the measures include learning styles, strengths and weaknesses, self-esteem and temperament. 5 ways to build self-recognition: 1. Accept emotions without judgment. 2. Self-monitor; take time to reflect and review. 3. Accept advice without becoming defensive. 4. Analyze strengths and weaknesses fairly with an eye toward growth. 5. Create realistic personal expectations. Social Recognition: Social recognition reflects awareness and consideration of the feelings and responses of others. Marino explained that it’s the ability to empathize and maintain sensitivity to the moods and emotions of others, which allows for superior intuition and connection. These include factors such as empathy/understanding, service, listening, rapport and adding value. 5 ways to build social recognition:

1. Actively look for opportunities to help others. 2. Actively listen; pay attention. 3. Take in feedback and critiques from others. 4. Follow through on promises and commitments. 5. Be positive and open when responding to new people and ideas. Self-Management: Self-management measures self-evaluation coupled with self-regulation. The awareness and discipline needed to control and harness feelings directly impact the ability to achieve personal objectives and develop an inner resolution, according to Marino. Satisfaction, happiness and contentment are results of self-management. Some of the factors might be restraint, discipline, flexibility and stress management. 5 ways to build self-management: 1. Set and monitor a specific course and path for each day. 2. Act with focus and intensity. 3. Take time to evaluate and critique personal performance. 4. Avoid fatigue and burnout.

5. Remain accountable for your actions. Social Management: Social management includes interpersonal skills and focuses intelligence on generating results. Marino said that social intelligence fosters collaboration and connection. Some of the measures include encouragement, collaboration, conflict management and negotiation. 5 ways to build social management: 1. Take an active interest in others and their agendas. 2. Develop persuasion and rapport. 3. Be assertive, engaged, enthusiastic and involved with others. 4. Maintain poise and calmness. 5. Look for positive, constructive answers that help everyone improve.

When adopting emotional intelligence skills in a person’s day-to-day routine, Marino said a good reminder is the computer command “ControlAlt-Delete.” “Control yourself, look for alternate solutions and delete situations that give you tension and negative

energy,” she said. “We can’t get rid of everyone in life who gives us anxiety, but if there is a toxic relationship, try to maneuver around that or remove that person.” She also recommended that employees note their triggers and then focus on small changes to strengthen EQ. “Emotional intelligence takes practice; it’s a journey,” she said. “Take it one day at a time. Identify at least one area where you want to make a change and stick with it. You will see changes, though they may be gradual.” For more information about AkzoNobel Acoat Selected, visit http:// www.acoatna.com/.

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Continued from Page 24

Eight Locations

heart, is equally as important as what is in their tool box. But to be more specific, they must have a set of inspection mirrors, a bore scope, an electronic thickness gauge and have easy access to a source of OE repair data.

Q: A:

You did not mention a lift. Is that necessary?

Looking at the underside of a car is indeed important. But some of our locations operate out of a home office where they would not have a lift. If that is the case, they work with a local body shop or repair facility to use their lift and pay them for the time

What happens if a customer is too far away from yourself or one of your 14 locations? What do you do then?

In that case, either I, or my location manager will subcontract with a shop that is close to the customer. The shop will do the inspection, take the necessary pictures, and send them back to myself or the location manager. We then take care of the paperwork and whatever else is necessary.

Do you provide any training for your new locations? How is accomplished?

Yes. Each new location manager spends 40 hours here in North Carolina with us for training.

Who hires CSC? Do you deal mostly with retail customers or industry people? How do they find you?

The answer is yes and yes. We deal with a great variety of people including retail customers, other body shops, insurance companies (for diminished value claims), lawyers, state departments of insurance and attorneys general. About 90% of my business comes from referrals. Almost every call I get starts with, “I was talking with Bob at Bob’s Auto Body and he said I should give

you a call. I have a problem…” The other 10% of my customers find me on-line. I do zero paid advertising. I don’t have to!

With all of your locations, how many inspections do you foresee conducting per month on average?

The newer locations might do one or two a month until they get rolling and start getting some referrals – although they may have a good month with four to five inspections. Here at my location, given my level of referrals, I average two to three a week.

CSC customers are probably going to enlist your company’s services only if they suspect a problem. That said, on a percentage basis, how many cars do you look at are OK as-is, how many would be OK with additional repair, and how many should be totaled?

Most of my customers come to me for a diminished value claim. But many times, after I inspect the car, I uncover some major issues. A very small percentage of cars that come to me are structurally sound. Maybe 20% would be OK if they were sent back and properly repaired. But about 75% of the cars I look at should be totaled and removed from the road.

Based on your social media posts, you have been quite successful in securing substantial diminished value judgments for your clients. On a percentage basis, how often are you successful with diminished value claims?

They do get upset – and immediately want to sue everyone. They want to sue for a subsequent accident that hasn’t happened yet. But you just can’t sue for something that hasn’t happened.

Has the John Eagle decision back in October affected your business or had any bearing on your company’s expansion?

Yes – it has woken up a lot of people and made my job easier – totals are easier, buy-backs are easier and working an appraisal clause is easier. For example, I know of a case several months ago where a customer was trying to get their heavily damaged Corvette totaled and the insurance company would not budge. They wanted to repair it. The customer had been going back and forth with the insurance company for months. After the John Eagle decision, the owner contacted me. I worked with Texas attorney Todd Tracey and the car was totaled two weeks later. The customer was happy, and another unsafe car was pulled from the road.

Don Carlton ACURA OF TULSA

Since the John Eagle decision, the stakes have gotten higher for body shops in general and especially for certified shops and the OE’s that certify them. Do you foresee the OE’s enlisting your services in the near future?

I certainly hope so. I have uncovered some bad repairs from OE certified shops and I-CAR Gold Class shops. Even though they are certified or fully I-CAR trained, there still should be a check system. As you say, the stakes have gotten higher.

Post repair inspectors have been around since the early 1990’s – mostly standing in the shadows and working behind the scenes. They were certainly needed then, but are needed now more than ever. It seems the time, and landscape is right, and Collision Safety Consultants, and perhaps others like them, are poised for a great future.

www.autobodynews.com

Don Carlton

HONDA OF TULSA

95% of the time I get some money for my client. In other words, very rarely does an insurance company dig their heels in and say they just aren’t going to budge. Most of the time I get more money for the diminished value than the client originally anticipated – which makes them smile.

Conversely, you must have to tell some people that their car is no longer roadworthy and should be totaled. Some people must get pretty upset.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

A Tale of Two Paints: A Visit to Axalta’s Training Center by Barbara Davies, Autobody News

On Feb. 22, I arrived at the Axalta media event on behalf of Autobody News expecting a tour of Axalta’s training center in Concord, NC. Little did the other media participants and I know, we would also be getting a chance to spray two of Axalta’s premier basecoats: Cromax EZ and Spies Hecker Hi-TEC. Before the hands-on spraying took place, Harry Christman, Axalta’s North America Cromax Brand Manager, gave an overview of Axalta’s history, the collision repair market and the target audiences for both the Cromax EZ and Spies Hecker HiTEC waterborne basecoats.

lationships. These are large-scale operations, many with hundreds of locations across the country. They want to grow and standardize every process and KPI, and narrow down the variables. Their culture is standardized in order to meet company growth goals. They are all about productivity.”

3. Despite all the consolidation fueled by the “Big 4” MSOs’ growth, the nonMSO (e.g. independent shop) market size is still sizable at $23.3 billion or 72.1 percent of the total market (Romans Report 2015) Hence, the Tale of Two Paints: Spies Hecker Hi-TEC and Cromax EZ.

Axalta launched Spies Hecker Permahyde Hi-TEC waterborne basecoat about 10 years ago. It was designed to provide a faster process to help improve cycle time and CSI. Hi-TEC’s streamlined process was a great fit for the MSOs in that it only required 1.5 coats wet on wet application with no flash required between coats. Fewer coats provided increased productivity and capacity with higher spray booth throughput. “Spies Hi-TEC requires about seven minutes of application time vs. 30+ minAxalta media event participants spray two of Axalta’s premier utes for a traditional paint basecoats, Cromax EZ and Spies Hecker Hi-TEC, at Axalta’s process,” Christman said. training center in Concord, NC, on Feb. 22 “It gives shops the capabiltinue to push direct repair programs ity of pushing through more cars for to lower costs and improve CSI. greater profitability—something the MSOs are keenly focused on.” 2. Top insurers will continue to “When Axalta came out with drive DRPs and reward MSOs with Spies Hecker Hi-TEC, they thought more work, fueling MSO segment that all shops would move away from growth. As of 2014, over 30 percent the traditionally applied basecoats of DRP workflow is allocated to since Spies Hi-TEC required fewer MSOs. base coats and less drying time in between coats. “Big insurers, State Farm, etc., are be“We were wrong! Many of the coming more influential,” Christman independent shops liked using the said. “The big are getting bigger and traditional basecoats that they had they have extensive DRP programs. great expertise with, and didn’t want The insurers are partnering with to switch to Spies Hi-TEC. These MSOs for efficiencies and are laser- shops may have some DRPs, but they focused on productivity and CSI. are not driven solely by insurance MSOs streamline their processes and companies and DRPs. They have productivity to ensure their DRP chan- more latitude to select the processes, nel with insurers. and paint, that they want to use. “The MSOs are all about growth, “An analogy I like to use is getrepeatable processes and strategic re- ting a notification that a piece of Christman outlined the top three market trends: 1. The insurance market continues to consolidate and the top 10 insurers, led by State Farm and GEICO, con-

software you use constantly (for example, software version 1.0) has a new version, 2.0, that the software company wants you to upgrade to. You know how to use version 1.0,

APRIL 2018 AUTOBODY NEWS / autobodynews.com

Axalta media event participants speak with Steffen Apollo (r), Brand Manager, Spies Hecker, Standox at the Axalta training center

and even though you know the new version 2.0 is probably better, you resist upgrading. “This is what Axalta experienced when they launched Spies Hi-TEC. Some painters have been using a particular paint process for 20+years. They understood that Hi-TEC might be better, but it required a different

spraying technique and they didn’t want to give up their current painting process.” To continue the analogy, many painters who loved version 1.0 (Cromax) didn’t want to go to version 2.0 (Spies Hi-TEC). “Axalta realized after 7+ years of trying to get all painters to switch to Spies Hi-TEC, some painters just didn’t want to give up the way they had been painting for years,” Christman said. “Axalta listened to these painters and came up with a new Cromax, Cromax EZ, in late 2017.” As Christman explained, Cromax EZ is “waterborne made easy.” It was designed to be simple and incorporated the same spray and blending techniques that independent shops have been using for years.

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chromatically as well as digital Acquire Quantum EFX and Colornet Web 2.0. • Easy to apply: Coat-flash technology. Familiar wet on dry application process, similar to solvent borne. No wait time before applying clearcoat. To experience these paints first hand, all Media Day attendees were suited up and invited into the booth to spray each brand and experience each paint process first-hand. After spraying both paints, I certainly appreciated the speed and efficiency of spraying Spies Hecker Hi-TEC paint, but there was something compelling about the artistry of spraying the Cromax EZ, even though the process did take longer. My takeaway: Two paints are better than one. To learn more about Axalta’s Cromax EZ and Spies Hecker HiTEC, go to axaltacs.com.

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OEM Info Websites

– As reported in CRASH Network (www.CrashNetwork.com), April 14, 2008. A year later, the two companies cancelled the planned merger after the Federal Trade Commission (FTC) moved to block it; the FTC said it had an “impressive body of evidence…demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers.” Ramamurthy, Sun and Aquila remain in their positions at CCC, Mitchell and Solera Holdings, respectively. 5 Years Ago in the Collision Repair Industry (April 2013) Because Arizona shop owner Dan Hunsaker had spoken negatively at several industry meetings about his experience with PartsTrader, he was asked why he stays on the State Farm program. “At this juncture, I don’t see the benefit of being a sacrificial lamb,

and then having them six months from now say, ‘You know, this isn’t working; we’re not going to continue with it,’” Hunsaker said. “I’m taking a wait-and-see attitude. If this thing goes national, then I’ll sit down and pencil it out, and I will make a very informed business decision.” Perhaps of more interest to shops often afraid to speak out negatively about an insurer’s mandate, Hunsaker was asked if his company had experienced any blow-back from State Farm because of his outspokenness about PartsTrader. “State Farm is entitled to their opinions, and the collision industry is, too,” Hunsaker said. “No, I’ve haven’t had any repercussions yet. Would I be surprised if it happened? After 40 years in this industry, no, I wouldn’t be surprised. So far I’m saying what I think and I share all this with State Farm, too. I’m very clear with them about how I feel.” – As reported in CRASH Network (www.CrashNetwork.com), April 1, 2013. Five years later, Hunsaker’s shop remains on the State Farm “Select Service” program. ARIZONA

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Ford and AT&T are bringing highspeed connectivity to customers this year—with plans to connect more than 10 million customers to Ford SYNC® Connect within the next five years. With Ford SYNC Connect, Ford vehicle owners can: • Remotely lock and unlock doors from anywhere • Use the built-in GPS system to locate their parked vehicle on a map • Remotely start the vehicle or schedule a start time • View vehicle information, including fuel and battery level and tire pressure readings SYNC Connect debuts this spring on the new Ford Escape. After the initial rollout in North America, SYNC Connect is launching in global markets, adding another 10 million connected vehicles by 2020. “Connected car services are an important feature to consumers,” said Chris Penrose, senior vice president, Internet of Things, AT&T Mobility. “We’re thrilled to expand our relationship with Ford to deliver an enhanced connected experience to more Ford drivers.”

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

In Reverse with Gary Ledoux

The 1930s – New Products and an Insurance Company’s Realization The 1930s ushered in the biggest financial calamity of all time: the Great Depression. The Depression resulted in widespread unemployment and poverty in the U.S. and around the world. At the beginning of the 1930s, more than 15 million people, or roughly 25 percent of America’s workforce, were idle. President Hoover did little to alleviate the pain and despair and thus lost the 1932 election to Franklin D. Roosevelt and his New Deal. Between 1930 and 1932, more than 9,000 banks failed, taking with them more than $2 billion in assets. In the days before the Federal Deposit Insurance Corporation, many people were left with only the clothes on their backs. In the auto industry, new vehicle production was cut in half—from 5.3 million units in 1929 to just under 2.4 million in 1930. By the end of 1931, this number was cut in half again. Cadillac took such a beating that General Motors considered dropping the line. Soon, about 80 percent of the car-building capacity was idle and 25 percent to 30 percent of auto dealers went out of business. General Motors, Ford and Chrysler held 90 percent of the automotive market in the U.S. The remaining 10 percent was shared between Hudson, Nash, Packard, Studebaker and Willy-Overland. No one had yet heard of names like Toyota, Honda or even Volkswagen. But things weren’t all bad. Despite the sharp decrease in new car production, advances were still made in vehicle technology and safety features including safety glass, windshield washers and sealed beam headlamps. All were meant to either help mitigate auto accidents or protect vehicle occupants in the event of a crash. In 1934, curved windshields were introduced in limited numbers. But curved windshields and back glass would not be widely used until the mid-1950s. By this time, most car manufacturers utilized body-over-frame auto construction, a convention that would dominate the industry for almost 50

years when unibody construction became the norm. In the early 1930s, collision shops, as an industry, started to coalesce. Finally, there began a differentiation between mechanical repair shops and body and paint shops. Paint had been spray-able since 1926, and shop owners came to the realization that you could not get a decent paint job in a shop filled with dust and dirt. One of the earliest collision trade magazines, Auto Body Trimmer and Painter magazine, emerged. By 1939, the Auto Body Rebuilders Association of New Jersey, one of the earliest associations of its kind, was founded. Auto body associations would grow for the next 40 years, when finally, they started having a more profound effect on the industry. Auto paint manufacturers began paint distribution through what traditionally had been auto parts jobbers. Eventually, the business grew to a point where carrying only paint and body shop supplies became a financially viable business. By the early 1940s, Paint Body and Equipment (PBE) jobbers began to emerge. Paint application technology was also advancing. It was during this period that DeVilbiss introduced the model MBC spray gun featuring an entire spray head assembly that can be removed from the gun body with one bolt. The high-volume, lowpressure spray gun was also invented—but it would be 60 years before it would come into general use in the automotive refinish industry. The paint that was going into those guns was also changing. The 1930s saw the introduction of alkyd enamel, best known as DuPont’s Dulux and an acrylic lacquer, DuPont’s Lucite. Sikkens introduced AutoFlex paint and Rubbol A-Z, a synthetic lacquer. The earliest paint booths began to show up in the mid-1930s, consisting of three pre-fabricated walls, an open front and a fan on the back to eject fumes and overspray. In front of the fan was a crude filter made of burlap or some other fabric.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

This was the best painters had to date, but the system had a couple of problems; the burlap material clogged very quickly, so filters had to be changed several times a day and the filters were not fire-retardant. To make matters worse, the paint booth was usually a wooden structure. A build-up of paint and solvent on the cloth, coupled with a wooden booth led to several fires in which the paint booth and the shop burned to the ground. A better solution had to be found. The 1930s wore on and despite a deepening recession, State Farm Insurance continued to grow, but certainly not at the rate it once had. The company had gone from selling 40,000 new policies per year to an average of a little more than 17,000. This bothered State Farm founder George Mecherle, but not as much as something else—rising loss costs. Since the inception of the company, Mecherle and his financial people had concentrated on sales dollars and the number of policies sold. Now, in the economic downturn and the overall lack of profits, they looked, for the first time, at loss costs. In his address to the State Farm employees at the State Farm annual meeting, Mecherle pointed out that cars were changing—They were being built for higher speeds, causing more accidents with a higher severity. He noted that new and different construction made repairs more expensive. The price of parts was increasing, along with labor costs. Company executives met to decide what to do about the situation. Their answer was to do a state-by-state analysis of each of their policy holders, noting premiums paid versus claims made and losses paid. What they discovered was certain geographical areas had an inordinate amount of losses. It was decided that State Farm would no longer sell insurance in those areas. They also found a few agents selling insurance to people who were known to be bad risks. These agents were eliminated and insurance policies for high-risk policy holders were can-

celled. Hereafter, company executives kept a close watch on losses. At the State Farm annual meeting held Feb. 21, 1939, Mecherle announced an ambitious plan called A Million Or More in ’44, meaning he intended to have 1 million auto insurance policies in force by 1944—a five-year plan. At the time, the auto policy count stood at 450,000—and it had taken 17 years to get there! It would take a lot of work and perseverance to meet the lofty goal. The home office began advertising like never before. Agents were supplied with printed materials, film strips and movies with projectors to tell the State Farm story. Field agents carried boatloads of promotional giveaways. Mecherle considered it only an acceleration of what the agents were already doing—but now they were in overdrive! At the same time, a “conservation department” was established, designed to reclaim policy holders who had cancelled their policy, or allowed it to lapse. This was the first time this was done by State Farm, and it was highly successful. State Farm also worked with lending institutions that were writing car loans. Innovative at the time, State Farm wrote a policy to coincide with the terms of the loan and made the lending institution the first payee in the event of loss. By 1942, more than 2,000 banks were cooperating with State Farm. To make the policy a little “sweeter,” State Farm started offering a medical rider, paying a maximum of $500 for medical, surgical or hospital expenses. Mecherle was determined to meet his goal, so he kept on pushing. In 1941, he had so much business that the home office had to add a night staff just to keep up. The growing collision repair business and Mecherle’s dreams all changed on the morning of Dec. 7, 1941.

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autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Page 31

Teresa Aquila

tors, and later how to prep and paint a car. It gave me a good start in the industry, but after that it was a battle, because no one wanted to work with a woman.” Today, there is the “Me Too” movement, but back when Aquila was working in the automotive repair industry, there seemed to be an “Anybody But You” movement. Her career as a mechanic taught her a lot of valuable lessons, and the main one was “Never quit...ever!” “I worked for 10 years at a place where I was the only female mechanic and the guys never accepted me,” Aquila said. “They sabotaged my work or gave me ridiculous jobs to do that were demeaning. When they saw that I wasn’t going to quit, they threw all of my tools on the roof and told me that I was taking money out of a man’s pocket.” Now celebrating her 41st year as a Washoe County reserve sheriff, Aquila serves and protects the community without collecting a pay-

One particular day definitely tested Aquila’s passion for law enforcement—The day she almost lost her life. “I was at another call, when a report came over the radio that told me that a high-speed chase was coming my way,” she said. “Here comes a vehicle at 120 mph coming right at me. It swerved and missed me by 20 feet, and I can still see the driver with his window cracked and a gun in his right hand. He smiled at me like he was saying ‘You’re dead,’ and then I heard a loud crack. I thought I had blown a tire, but then there was blood everywhere.” Still in pursuit, Aquila “Teresa’s Garage Radio Show” is broadcast on 1180 AM became faint and had to pull KCKQ every Tuesday at 2 p.m. PST over after traveling about hours weekly now. I receive the same eight miles. The chase eventually training and was promoted to lieu- ended when the perpetrator committenant 10 years ago. I’m involved in ted suicide, and later it was discovneighborhood watch efforts, coordi- ered that he was wanted on murder nate high-profile events, do public and drug charges. “I was lucky, because when he speaking and meet with the community to hear their concerns. It’s a shot at me, the bullet went through both of our car doors before going great job and I love it!”

check. It’s an arrangement she is happy with, because it allows her to dictate her schedule and participate in a lot of programs that are dear to her heart. “When I first started, I got the graveyard shift and realized I could not do this,” she said. “So I retained my reserve status and work 30–40

San Franciscans Are Attacking Driverless Cars

by Joe Kukura, SF Weekly

Not everyone is welcoming the robot technology that brings us self-driving, autonomous vehicles. According to reports from the California Department of Motor Vehicles, the month of January 2018 saw two separate incidents in which San Francisco residents physically “slapped” or “struck” an autonomous vehicle. San Franciscans will be either proud or ashamed to learn that San Francisco is the only city in California in which a human has been reported to commit an act of violence against an autonomous vehicle. By DMV law, every collision involving a driverless car has to be reported, no matter how minor. The Los Angeles Times reports that there have been six collisions with autonomous vehicle cars so far in 2018. Two of them were people playing Rock ‘Em Sock ‘Em Robots with the high-tech vehicles they love to hate. One Jan. 2 incident report describes an attack on a General Motors Cruise autonomous car at Valencia and 16th streets. A pedestrian “ran across Valencia Street against the ‘do 50

not walk’ symbol, shouting, and struck the left side of the Cruise AV’s rear bumper and hatch with his entire body. There were no injuries, but the Cruise AV sustained some damage to its left rear light. The police were not called.” Then on Jan. 28, another GM Cruise vehicle was slapped—yes, slapped—by a taxi driver on Duboce Avenue. “The driver of the taxi exited his vehicle, approached the Cruise AV, and slapped the front passenger window, causing a scratch.” No one was hurt and the police were not called. In both cases, the “driverless” cars did actually have a human being behind the wheel, as mandated by law. That law is set to change April 2, when driverless cars will be allowed to drive without people behind the wheel. It is unclear whether the cars in these incidents were in autonomous mode or manual mode. It’s also unclear whether the assailants even realized these were driverless cars, or whether this was just typical San Francisco crazy behavior. We thank SF Weekly for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

through my leg. Six months later, I was back on the job. People thought I was going to quit, but I’m in it for the long run,” she said. When she isn’t chasing bad guys or producing her radio show, Aquila is writing a book about her life and maintaining her fleet of 13 classic vehicles. “I love all of my cars, but I do have a special place in my heart for my 1954 Chevy Bel-Air, because I did all of the bodywork on that one myself. Every one of my vehicles is drivable and I still have [my] very first car—a 1963 Chevy Impala that I bought when I was 18,” she said. Even though her career as a mechanic hit its share of speed bumps along the way, Aquila still believes that women belong in the automotive repair industry. “I tell young women all the time that it’s still a male-dominated business, but if you stay focused and put your best foot forward in anything you do, you will be successful,” she said. “Don’t ever let anyone dissuade you on your journey, because we’re all on the same road—even though we’re in different cars.”

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New Women’s Group Focuses on Attracting Students to Collision Repair Industry

“It’s hard for me to believe the response that this group is getting,” Women in Auto and Collision (WAC) Jones said. “Women are being reis a new industry group formed this ferred to us by other industry groups, year, and while you may not have by paint suppliers, by parts suppliers heard of it yet, the group is gaining mo- and by word-of-mouth. It’s amazmentum quickly as it seeks to spread ing.” awareness of the many industry opporWAC’s current mission is “passiontunities available. ate women in the automotive industry collaborating and leading members to create industry career awareness with middle school students and their parents.” The female-led group plans to teach students about the opportunities in the automotive and collision industries from a young age as they seek to attract the next generation into the industry. With only two meetWAC’s first meeting was held on Jan. 10 with 10 industry ings under its belt, WAC professionals who started discussing the concept of the has already generated group and established a mission statement support from MV-TAP and AASP-MO, and it WAC is focusing on middle has begun planning activities to school students all the way up to post- generate awareness of career opporsecondary students. tunities in the industry, such as caShelly Jones of ABRA Auto Body reer fairs, mentoring programs and and Glass had taken the reins prior to fundraising campaigns, among oththe election of officers. ers. by Chasidy Rae Sisk

WAC’s first meeting took place on Jan. 10 when eight women and two men gathered to discuss the concept of a women-led industry group and to establish its mission. They

group. WAC also held a small group set-up team meeting on Feb. 20 to compare establishing itself as a nonprofit organization to the alternatives. WAC will hold its next meeting on March 13 at ATI. Two members of the group, Sheena Wagner and Jess Crump with Meramec Heights Collision, have volunteered to provide dinner for this meeting. According to Jones, “We will determine the organizational structure, elect officers, discuss a WAC’s first meeting was held on Jan. 10 with 10 industry trivia night fundraiser and professionals who started discussing the concept of the talk about making a small group and established a mission statement change to our mission next met on Feb. 6 at ATI in Fenton, statement. I’ll propose that we reMO, for the group’s official kick-off move the words ‘middle school’ to meeting, at which time 13 people avoid limiting ourselves—knowing discussed the technical aspects of that 6th–8th grade students will still forming the group and started build- be our primary focus.” ing teams to accomplish the tasks identified. The group’s official name RSVP to SJones@abraauto.com by and logo were unveiled, and they March 6 for WAC’s next meeting, or also shared their Facebook group, visit Women in Automotive and ColWomen in Automotive and Colli- lision on Facebook to get involved sion, as they discussed branding the with the group.

Original Thought #78

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Industry Training with Stacey Phillips

I-CAR CEO, President Says Industry Is Embracing Training, More Stepping Up Needed More than half of all the collision repair professionals in the industry are likely not participating in training, according to John Van Alstyne, CEO and president of I-CAR. At the end of 2017, there were an estimated 33,500 total body shops in the United States.

“About 14,000 of those shops are doing some level of training, which we equate to 42 percent of the industry,” said Van Alystne. “The remaining 58 percent are likely not training at all.” He said the good news is that the numbers are getting better. There were 2,000 more shops training with I-CAR in 2017, which was up 25 percent from the previous year. There was also a 27 percent increase in Gold Class shops, bringing that number to 5,570 nationwide. The Gold Class recognition is the highest rolerelevant training achievement recognized by the industry. “As an industry, we’re stepping up,” said Van Alstyne during a presentation he gave highlighting ICAR’s initiatives during the January CIC conference in Palm Springs, CA. “But more stepping up is required.” In response, the Inter-Industry Conference on Auto Collision Repair, commonly known as I-CAR, is dedicated to providing the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer. “We take that seriously and it shapes our work,” said Van Alstyne. “One industry—one goal. That statement sums up what I-CAR is all about and it’s really about performing complete, safe, quality repairs. That’s the sole focus of what we do.” Established in 1979, the international not-for-profit organization represents the six segments of the 52

collision repair industry it serves: collision repair; insurers; original equipment manufacturers (OEMs); education, training and research; tools, equipment and supply; and other related industry services. In addition to providing training in the United States, I-CAR training is licensed for distribution in Canada, Australia and New Zealand. Looking back about six years ago, there were three key phases of I-CAR’s strategy. First, the organization set out to improve everything it does regarding its products, services and operations. The second phase was a focus on growth by serving the industry and the third was being relevant and responding to the needs of the industry.

those that are vehicle/technical-specific are all currently being offered. Nine new courses were launched in 2017, including “Using Vehicle Maker Repair Procedures.” “That course should be taken by everybody in the industry because it explains how to utilize best practices on OEM procedures,” said Van Alstyne. Fourteen new courses in electrical/diagnostics were introduced as well as two new hands-on courses in skills training: plastic repair and squeeze-type resistance spot welding. Van Alstyne shared information about I-CAR’s focus for 2018, which was determined with the assistance of I-CAR’s Industry Segment Advisory Councils (ISAC). The first ISAC for education was set up in 2011 to facilitate independent industry feedback and help provide direction to the organization’s strategy and future program enhancements. Van Alstyne said the initiatives are indicative of some of the benefits I-CAR delivers to the industry. This includes making sure I-CAR’s leadership team (l to r) Nick Notte, senior vice vehicles are repaired proppresident – sales and marketing; Ann Gonzalez, vice president – strategic development; John Van Alstyne, erly, reducing liability and CEO and president; and Elise Quadrozzi, vice president increasing brand loyalty. – education and technical services “I think it also contributes “Back at that time, we weren’t to talent attraction and retention,” he talking about technology,” explained said. “Shops that invest in their emVan Alstyne. ployees attract and retain talent.” Now, he said the industry is experiencing a “Technical Tsunami™” I-CAR’s 2018 Initiatives: where vehicle technology is changing rapidly, and shops are seeing an In-Shop Knowledge Assessments™ increasing number of cars coming in Launched in 2017, I-CAR’s In-Shop that are complex and costly to repair. Knowledge Assessments™ entail Over the last several years, I- going into body shops and conductCAR has focused on three key pro- ing face-to-face interviews with techgrams to help meet these issues: core nicians to assess whether or not their foundational training programs, weld- knowledge meets ProLevel® 1 staning programs and contract training, dards. If successful, they qualify for which encompasses custom training credit. If they don’t possess that solutions. knowledge, Van Alstyne said they are “We’ve listened to the needs of going to learn what gaps they have. the industry and responded with what “This is a major innovation for they asked us to do,” said Van Al- I-CAR and highly valuable for the styne. Classes such as industry basics, industry,” he said. hands-on skills development and Not only does this procedure

APRIL 2018 AUTOBODY NEWS / autobodynews.com

eliminate redundant training, but it also helps shops with time efficiency. I-CAR has found that, on average, the shops that participate in these assessments achieve Gold Class status in approximately one-quarter of the time.

Update to Entire Core Curriculum During the last two years, I-CAR has worked on updating its core curriculum. It is expected to be complete by 2019. Van Alstyne explained that courses, which are referred to as “Purpose-Built,” are no longer three hours long. Instead, the type of courses now offered dictate their format, whether that’s live, online or virtual. “In general, courses are going to be shorter,” he said. “We want them to be succinct and deliver value.” In addition, all core foundation courses will be offered in Spanish by 2019. Official Live Training Sites There are currently more than 260 training locations across the country, which include career and technical schools and other industry partner locations. Van Alstyne said these neutral fixed locations ensure consistency and effective course delivery as well as provide a better learning environment. New class scheduling is also being planned, similar to college scheduling where students will be able to view a listing of classes months in advance. “We want the industry to have visibility on class schedules, so they can plan their training rather than being reactive,” he said. Sustaining Partner Program I-CAR launched its Sustaining Partner program in January. The program provides the organization’s partners with access to information, course content and marketing opportunities. “Our sustaining partners contribute to funding and in exchange, they get access to our portfolio of products and services,” said Van Alstyne. “This allows us to simplify and streamline our relationships with our partners.” See Embracing Training, Page 59

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Social Media for Shops

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

When Was the Last Time You Updated Your Website? You maintain your vehicle on a regular basis to keep it running right and on the road. I’m sure we all have those friends who are constantly remodeling their houses and looking for that next project to work on, whether it’s building a deck or re-doing their kitchen. Changing and updating things is a part of life, so why haven’t you touched your shop’s website since 2008? A website with new content lives and grows on the Internet. Every up-

rithmic factors determined by the search engine company itself. Their rules change all the time, so that’s why you need a web wizard to navigate through what Google is doing today. For instance, there are several reasons why a site could be indexed, including incoming links, the number and type of subject keywords used and how frequently a site is updated. Every time you make a significant update to your website, the search engine notices it and rearranges your

date you make to your site enables your existing and potential customers, insurance partners and vendors to find you online more easily. On the other hand, a static website without updates is considered dead by every search engine out there, which means that it will eventually drop down the rankings and end up being buried behind your competitors’ sites over time. Search engines love fresh content and sources of new information for their search requests, so if you can create relevant high-quality content, you will be on page one before you can say “Google.” Because in the end, one of the main reasons why any shop should have an online presence is so that customers can find them easily via any web search. The more you consistently update your website with articles, downloads and new web pages, the more regularly a search engine will drop in to visit your website. When search engines look at your site recurrently, you have the opportunity to attain higher rankings based on the content you’ve provided. Search engines use web crawlers, also known as “Googlebots,” that are basically high-tech programs that scan the Internet at lightning-speed for websites. The web crawler will index a site based on a wide range of algo-

site’s ranking accordingly. So, if you want to increase the chances of your website moving up the ranks, updating your content often so that a search engine will reassess your position on its index is the best way to go. But please keep in mind, a gaggle of new content is not the solution here—quality is. So, yes, it is a smart idea to update often, but make certain to keep your content standards high. Too many shops blast their websites with an avalanche of lowquality articles stuffed with too many keywords. When the web crawlers notice it, they penalize your website and in many cases, knock you down a few spots as a result. By far, the most frequently used search engine is Google. As the king of all search engines, Google has tremendous influence on webmasters and how websites are constructed. Google expresses its love for websites that are updated frequently, so you should add fresh content to your website as often as you can. But also avoid making unnecessary changes to your site, because Google is a little smarter than that. Shops that have a strong online presence are usually updated at least two to three times a week, normally through a blog. The Googlebots that crawl the web are always watching and searching for

“The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” — David Moore

APRIL 2018 AUTOBODY NEWS / autobodynews.com

web pages that are new or updated, and then add this fresh content to their Google index. If you update your content often with consistent and valuable information, you will have a better chance of Google ranking your site higher after each new update. It’s really not that difficult to add an article or a photo to your site to get noticed. The easiest and best way to stay fresh is to add a blog on your site and continue to add articles that will get noticed by your viewers. If they comment on those articles, it also counts as an update on your site. So, write something that will elicit some feedback from your customers and friends in order to gain some attention that will lead to frequent updates. David Moore, the CEO of Collision Websites, normally recommends completely updating a website

every 3–5 years depending on the initial quality of the site. “The reasons for changing or updating a website are numerous, but the main one is that the site must have an overall look and feel that is contemporary,” Moore said. “If it’s not mobile-ready, you’re running behind, so you need to change that immediately and if your site is using technology that isn’t supported by all browsers (e.g. Flash), you should update it right away as well. “If your site doesn’t have a clear call-to-action, it should be updated. Make sure that the ‘above the fold’ section is uncluttered and contains a clear and simple headline with your phone number [and] address in large bold letters. You have three seconds to capture people’s attention, so don’t confuse them and make sure that your navigation is simple and that everything is easy to find.”

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National 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.

In-House Money Makers: ASA Partners With Bosch for 2nd Webinar in Series On Wednesday, Feb. 21, the Automotive Service Association (ASA) partnered with Bosch to present “In-House Money Makers,” the second webinar in its series about pre- and post-repair scans, at 1 p.m. EST. ASA Vice President Tony Molla welcomed attendees by mentioning the industry’s interest in pre- and postscans with modern vehicles. He introduced the presenters, Bosch Technical Trainer Duane “Doc” Watson and Bosch Technical Instructor Steve Zach, who addressed pre- and postrepair scanning in-house over the following hour. Expressing his hope that these webinars were useful, Watson encouraged participants to provide feedback before noting that the industry needs a powerful tool because the dash lights do not tell the complete story. “More systems are coming every year, and newer vehicles have up to

100 modules that need to communicate with each other to work properly. The pre- and post-scan procedures covered will help get a damaged vehicle back to its safe, pre-accident condition,” he said. Watson pointed out that many OEMs require, or at least recommend, pre- and post-repair scans. When answering when a scan tool is required,

he admitted that it’s not a simple answer because it’s based on the age of the vehicle, options available and both the type and extent of damage. For example, Fiat listed conditions that could trigger DTCs prior to or during repairs, leading to improper vehicle performance.

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While there is not yet an industry standard for receiving payment for scans, shops get paid for approximately 70 percent of scans. However, Watson noted that having a printed scan report is vital to getting paid, negotiations may be necessary with some insurers and rates can vary. It’s important to know what OEMs recommend. The equipment and training required include a quality scan tool, a battery maintainer or high-end battery jump box and copies of OEM position statements. Bosch supports scanning to identify DTCs in alignment with OEM position statements, and the company offers two scan tools: the Encore and the Evolve. Watson stressed, “It’s more than just buying a scan tool. There’s test prep to follow for the best results. The battery must have 12.6 volts, or you can get an inaccurate test. Use a fully charged battery booster or maintainer, but don’t use a battery charge because this can cause erroneous codes and is a poor choice when diagnosing.” Providing a demonstration of the Encore, Watson explained that it begins by connecting the cable to the Vehicle Data Link connector and turning the key to the start position without starting the car. Then, users would set up their scan report by scrolling to the bottom of report options where they can alter settings, such as removing uncommunicative systems, prompting for extra fields, and include shop information. When it comes to vehicle entry, auto ID works with most 2006 and newer vehicles, or users can choose Manual Entry to select a vehicle by answering a series of questions, such as year, make and model, in order to show all modules on the vehicles that are available for diagnostics. Watson instructed attendees to touch ECM/PCM and choose “All system DTCs” to check all modules. All DTCs found on each module will be listed, and touching “code assist” under the DTCs will provide suggested repair information, also allowing users to access Direct Hit, Google, Mitchell or AllData for ad-

ditional information based on the program with which they have an account. The DTC scan can also be emailed or printed through the share option—Both actions require set-up when used for the first time. The scan can also be saved to the scan tool itself, using the save function. In order to clear DTCs, users can touch “clear codes.” Watson recommends choosing “clear and reread,” which involves cycling the key off and on in order for the Encore to rerun the DTC test, but he warned that it may be necessary to manually clear specific modules. After hooking the tool to the battery and selecting “test,” users can “select vehicle” in the lower lefthand corner of the screen, start Auto ID, and follow the prompts to allow the scan tool to communicate with all of the vehicle’s modules. The time it takes to pre- or post-scan depends on the number of modules and the scan tool processor speed. Watson reiterated, “After selecting the green arrow on the right for a complete report, users can save the report or select ‘Share’ to email or print it. It’s also possible to link to additional resources for information about codes and how to correct issues.” Back on the list of modules, choose the correct module and data stream, and select “All data items” to test. Users can review saved reports by scrolling to the left on the next page and choosing “View saved scans,” which allows them to select a report from a list. The saved reports also indicate if it was a pre- or post-scan, the time and date, the repair order number, the VIN and the mileage. As the webinar concluded, Watson and Zach fielded questions from attendees and announced that they will demonstrate the Evolve scan tool in their next webinar. The third webinar in this series is titled “The Right Scan, the Right Way: Key Scan Tool Procedures for Collision and Mechanical Repair” and will be presented on Wednesday, March 21. For more information on ASA, visit www.ASAShop.org.

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Welcoming the Next Generation of Collision Repair Job titles matter to millennials, but in a different way than typically understood. A lot has been made of Over my 30 years in the automotive the millennial tendency to change industry, I’ve seen a number of gen- jobs. Certainly, evidence indicates erations enter the workforce. Each millennials don’t see themselves as wave arrives with its own expecta- long-term in any role. Increasing an tions and work habits. Our industry employee’s ability to move —uptoday is the result of adaptation made ward or laterally—is reason to conwith each new generation. Sure, it’s sider introducing intermediate titles the responsibility of any newcomer to an operation, and backing them up to learn and support the longstanding with added responsibility. Keeping values of a new environment. But it’s employees feeling valued and enalso important to embrace the new gaged transcends generational differideas and fresh perspectives that ences. Studies have widely shown that milcome with new talent. With college debt at record levels lennials are constantly on the lookout for their next job. This and tuition growing higher should be motivation for each year, many young peoemployers to ensure they are ple are choosing to explore offering competitive pay, exblue-collar career options. perience and opportunity. As Blue-collar fields often pay any collision repair shop better and are less saturated owner knows, finding and than the roles typically marretaining employees who keted to high school stuMike Lanza perform with excellence, are dents. Compensation has grown as a reliable and trainable, and bring a concept over the years. No longer is high-level skill set is a difficult chalit just about pay—Compensation lenge. That’s why capitalizing on milstrategies today center on creatively lennials entering the workforce is developing talent and motivating in- such a strong opportunity for a shop dividuals for results. As employers, willing to make the right cultural adwe have a valuable advantage for justments. right-sizing our cultures for millennials: Thanks to numerous studies and Considering Compensation a large volume of research, we know Compensation has grown as a cona great deal about what millennials cept over the years. No longer is it want and expect out of the workplace. just about pay; it’s about creatively developing talent and motivating inHere are a few insights based on re- dividuals for results. To create and porting from Millennial Mindset: implement innovative and balanced benefit and compensation design— with an eye toward retaining talent Shop Culture Though flexible work schedules are and maximizing productivity—takes most important to millennials, most a carefully considered strategy. Ideindicate they prefer working in an of- ally, each element of the incentive fice environment, as opposed to from plan drives business goals of customer satisfaction, revenue and profhome. An overwhelming majority, 98 itability. percent, say a company’s vision and values are important to consider when For a compensation strategy to work, choosing an employer. They need to four elements must be in place: feel like what they do and who they • Fit the financial reality of the work for matter beyond a paycheck. by Mike Lanza, Sherwin-Williams Automotive Finishes Business Consulting Manager

Call orwww.autobodynews.com Email Now for Rates:

800-699-8251

ltedesco@autobodynews.com 56

APRIL 2018 AUTOBODY NEWS / autobodynews.com

business

• Encourage and reward the right individual behaviors

•

Inspire and reward teamwork

• Provide a clear picture for individual opportunity

Instead of making the common mistake of overpaying employees and hoping they stay, developing a career path that rewards employees for their contributions while protecting the margin is the key to sustainable results. Transparent, easily understandable and simple goals are critical for employee productivity and retention. This has been true for every generation. I’ve seen the SMART matrix work for countless organizations. Employees need to know what they are being measured on, what the measuring instrument looks like and how it is used, agree that their goals are attainable and—most importantly for millennials—understand

how it serves the organization’s strategy. Naturally, many millennials entering collision repair will be on the front lines, engaging directly with customers. Therefore, it’s critical that they not only are given the tools they need to provide outstanding customer experience, but are also rewarded for doing so. Importantly, rewarding employees does not have to be about cash. Millennials show a strong value for spending time with friends and family. This down time is equally—if not more—important than cash. It ultimately comes down to understanding what motivates the employee, and right-sizing bonus plans and incentives accordingly. By 2025, 75 percent of the workforce will be millennials. As millennials enter—and many more consider entering—the collision repair industry, we need to be doing what we can to ensure our industry is a rewarding career path for the best talent. That begins with understanding the employee.

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Today’s Vehicles Driving Change Within the Collision Repair Industry by Susanna Gotsch, Director Analytics, Product Management, CCC; Property Casualty 360

With newer vehicles accounting for a growing share of repairable vol-

ume again, the industry is seeing a reversal in some of the trends experienced during the recession. Specifically, newer vehicles tend to have more parts replaced, lower alternative parts utilization and a lower repair percent of total labor spend. Add to this the fact that vehicles over-

all have become more complex, and these trends accelerate even further. Growth in electronic vehicle content—items added to address vehicle safety or convenience also add to the overall cost and complexity of repair and the need to understand OEM-recommended repair procedures. Not only are more parts per claim required, but additional labor not included in the labor for part replacement is needed for calibration, reset and scan operations. Repairers, insurers and OE manufacturers managing certified

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collision repair networks know the importance of managing repair cycle time, and actively monitor the differences between the planned and actual events for key process steps such as vehicle in, repair start, repair complete and vehicle out. The primary goal? Shave wasted time from the claim and repair process and streamline communication among all parties. Over the last five years, the average days between vehicle in and repair start, and the average days between repair complete and vehicle out have remained the same or seen moderate improvement, yet remain an opportunity for the industry to further streamline check-in and check-out. But it is the full repair time, the average number of days from the date the vehicle is brought into the

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Fig 3

shop to the date it is picked up (a 24hour / 7-day measurement), or “keys to keys”, that has seen the most change, growing from 8.5 days in CY2013 to 9.5 days in CY2017 (see Figure 1).

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The improvement in “vehicle in” to “vehicle out” days average between 2016 and 2017 may be driven most by the slight drop in the volume share that were both non-drivable and the highest appraisal cost (see Figure 2). Yet despite the drop in non-drivable and the repairs costing more than $10,000, volume overall has shifted into the higher dollar brackets, just as we saw with appraisal volume overall. With more

Fig 4

parts and labor cost per claim, both the overall repair cost and the repair time have risen. Figure 3 illustrates how repair cycle times grow as do repair costs, with repair costs $0.01 to $500 taking 2.5 days, versus 20 days-plus for vehicles in highest repair cost ranges.

Unfortunately, as repair costs rise, both efficiency of repairers (see Figure 4) and customer satisfaction with the repairer and the insurer fall (see Figure 5). A comparison of the ‘kept informed’ CSI score shows much less variation among repair cost dollar ranges, but the fact that there is a lower score for the higher cost repairs suggests those customers may need additional hand-holding and updates throughout the repair process (see Figure 6). Prior analysis of customer satisfaction data conducted by CCC shows quality repairs and few returns lead to scores; yet if the shop wants positive customer recommendations, it needs to make sure the service is great and customers are kept informed. In other words, quality is table stakes—Service gets repeat

autobodynews.com / APRIL 2018 AUTOBODY NEWS

business. With “Previous Experience” and “Recommendations” chosen as key reasons why an individual selects a specific collision repairer, capturing business is as important as keeping it. As repairers look to load balance among locations and specialize work, understanding the impacts to cycle time and productivity will become increasingly important. A shop handling non-drivable, higher-cost repairs could see significantly different results; factoring these differences in repair mix and performance assessment will be increasingly important. The collision repair industry is challenged with repairing a broad range of vehicles, where vehicle complexity has grown dramatically for the youngest vehicles that have seen a resurgence in volume share on the heels of several years of record new vehicle sales. The next several years will be challenging as automakers compete to position themselves for the changing world of personal mobility, introducing more technology that is

complex and expensive to repair, but may not immediately deliver on all its promises in terms of accident pre-

Fig 6

vention. Now more than ever, it is essential for the automotive claims and collision repair industries to stay current on new technologies, tooling and training. All increase the operating costs in a professional facility. Completing a vehicle repair in a manner that follows recommended repair procedures can help head off any potential unplanned returns of the vehicle, and keeping the customer well-informed throughout the

1st Driverless Bus Deploys in CA After Rules Update

by Ryan Johnston, StateScoop

California, long a hotbed for autonomous vehicle development, is taking even more steps to sustain its industry leadership. On March 6, the Contra Costa County Transportation Authority (CCTA), in partnership with research facility Gomentum, debuted the first self-driving bus to operate on public roads in California. The bus, manufactured by EasyMile, contains no steering wheel, brakes or accelerator—though it does have a button to push in case of emergency, and an attendant to ride inside for the time being. The 12-seat bus’s short venture onto public roads this March 6 marked the third phase of the CCTA’s pilot program. After receiving permission from the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) in October 2017 and permission from the California DMV in January 2018, the bus will begin to pick up commuters in parking lots at Bishop Ranch, a 585-square-acre office park in San Ramon, CA, on April 58

27. The bus has previously been tested at the site. “We are excited to celebrate this milestone with CCTA and Bishop Ranch,” said Department of Motor Vehicles Director Jean Shiomoto. “The California DMV has been working for years to bring this groundbreaking technology to California’s roadways while ensuring safety of the motoring public.” The project follows approval by the California DMV in February of new regulations for autonomous vehicle operations. The DMV released a public notice on its website on March 2, kicking off a 30-day public comment period on the new rules. AV manufacturers have been able to test their self-driving cars with a human as a back-up driver since 2014, but the new regulations will allow companies to apply for permits to test autonomous vehicles remotely and with the public, beginning on April 2. Each permit will have different requirements, according to the DMV. We thank StateScoop for reprint permission.

APRIL 2018 AUTOBODY NEWS / autobodynews.com

process will help keep the ever-more demanding customer satisfied with their repair experience.

Technology plays a key role in a company’s ability to quickly assess and respond to consumer feedback and other information on market conditions. It also holds great potential for improving communication and collaboration with customers and business partners. Knowing how to use technology to cater the claims and vehicle repair experience to each distinct customer will lead to higher levels of customer satisfaction, re-

tention and growth. The information and opinions in this publication are for general information only, are subject to change and are not intended to provide specific recommendations for any individual or entity. Although information contained herein has been obtained from sources believed to be reliable, CCC does not guarantee its accuracy and it may be incomplete or condensed. CCC is not liable for any typographical errors, incorrect data and/or any actions taken in reliance on the information and opinions contained in this publication. Note: Where CCC Information Services Inc. is cited as source, the data provided is an aggregation of industry data related to electronic appraisals communicated via CCC’s electronic network or from total loss valuations processed by CCC. Where AIS is cited as source, the data provided is an aggregation of industry data collected from claims data communicated via AIS’s electronic network. We thank Property Casualty 360 for reprint permission.

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Michigan State, Texas A&M Studying Impact of Driverless Cars on Workforce

Continued from Page 52

Michigan State University is leading a study to better understand and measure the impact of driverless cars on the current transportation workforce. Texas A&M’s Transportation Institute will offer additional research and resources throughout the duration of the project, which was commissioned by the American Center for Mobility (ACM). The study will also consider the type of training necessary to prepare the future workforce to adapt to the effects of autonomous vehicles. “The adoption of connected and autonomous vehicles (CAVs) has the potential to lead to job impacts in the transportation and mobility sector and create a range of new labor opportunities in businesses that develop and implement innovative usage models for CAVs,” said Shelia Cotten, MSU Foundation professor and director of the Sparrow/MSU Center for Innovation and Research, in a statement. ACM—a nonprofit testing, education and product development facility based in Ypsilanti, Michi-

Over time, Sustaining Partner program funding is expected to help reduce increasing education cost demands on the collision repair and education segments. I-CAR’s first Sustaining Partners include Chief Automotive Technologies, Car-OLiner and CCC, which have been ICAR Industry Training Alliance partners for years.

by Michelai Graham, EdScoop

gan—says it is dedicated to automotive vehicle technology and accelerating the development of voluntary standards. The center provides “real-world environment testing,”

Getty Images

Soraya Kim, ACM’s chief innovation officer, told EdScoop. Michigan State is located not far from ACM, in East Lansing. TTI is supporting the study by supplying its expertise and research in truck platooning, which refers to the line of vehicles following each other closely and taking directions from a lead driver. AARP and Waymo are co-sponsoring the study with ACM. “Connected and automated technologies have the potential to create a safer and less stressful occupation

for platooning truck drivers while creating opportunities to be involved with cutting-edge technologies that will change the way freight logistics will be delivered in the future,” said Christopher Poe, assistant director of connected and automated transportation strategy at the TTI, in a statement. The research, interviews and roundtable discussions will be conducted in Texas, California and Michigan from now until May. As ACM draws from the results, it will implement programs to deploy to the 15 universities involved in its education initiative. “Our goal is to ensure that employees, employers and policymakers are informed about the potential developments, so they can approach them proactively rather than reacting to issues as they arise,” Kim said in a statement. Results from the study will be shared this summer. We thank EdScoop for reprint permission.

Embracing Training

New Learning Management System Another project that I-CAR has been working on is an overhaul of its learning management system. It will be piloted this year and is expected to be launched in 2019. Not only is it being designed to improve ICAR’s course delivery system, but Van Alstyne said it also will simplify training management, tracking and reporting and allow for an easier user experience. For more information about I-CAR and its programs, visit https://www .i-car.com/.

2 Auto Body Shop Employees Hospitalized During Armed Robbery in Hawthorne, CA by Beverly White, NBCLA.com

Four gunmen ambushed and attacked employees of an automobile body shop Feb. 28 in Hawthorne,

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Four armed men beat and robbed several employees at an automobile body shop in Hawthorne. Beverly White reports for the NBC4 News at 11 on Wednesday, Feb. 28, 2018

CA, during a robbery, resulting in the hospitalization of two workers. The Hawthorne Police Department received a call of an armed robbery approximately 5:15 p.m. on Prairie Avenue. “We found out it had been a takeover robbery at a business,”

www.autobodynews.com

Lt. Goetz of the Hathorne Police Department said. “Some of the workers had been beaten.” Police went door-todoor at surrounding areas in search of the attackers. “We did door knocks of residences we came across and made sure nobody’s being held hostage or that they got into an empty bedroom,” Goetz said. K-9 units were deployed during the search, as was a helicopter, but the robbers remain at large. It is unknown what the four gunmen took during the attack. Police were able to find surveillance footage that shows one suspect leaving the scene. Anyone with information on the robbery is encouraged to contact the Hawthorne Police Department at 310-349-2700. We thank NBCLA.com for reprint permission.

UPDATED DAILY

autobodynews.com / APRIL 2018 AUTOBODY NEWS

Continued from Cover

Progressive Lawsuit

loss condition. But rather than agree to reimburse Professionals for the cost of making reasonable and necessary repairs, Progressive directed Professionals to ‘utilize inferior parts and/or to perform inferior service.’” When Autobody News asked Perretta if Professionals was asked to use inferior parts, the body shop owner replied, “Yes, as they always do… as they do all shops. We refuse to use inferior parts. The years of tracking the return of those parts have led us to not use them anymore.” Perretta said he has also found that these parts are not crash-tested or safe. Therefore, when working on customers’ cars, Professionals “perform[ed] all reasonable and necessary repairs to place the vehicles in their pre-loss condition[s],” according to court documents. When the body shop asked to be reimbursed from Progressive, Perretta said the insurance company paid a fraction of the cost of the repairs. The $712,972.90 Professionals is seeking in damages represents “unpaid balances, ‘delay time costs,’ and administrative costs.” Insureds and third-party claimants signed what is called an “Assignment of Proceeds” that authorized the body shop “…to recover any unpaid balances for Professionals’ services and repairs,” court documents stated. “The body shop has a contract with the consumer and the consumer has a contract with the insurance company,” explained Perretta. “The Assignment of Proceeds allows the body shop to ‘step into the consumers’ shoes to secure a fair and reasonable reimbursement.” As a result, Professionals is allowed to seek damages from Progressive under the insurance company’s contractual obligations to the insureds and third-party claimants. “Progressive had a duty to compensate the consumer for a reasonable repair,” he added. The case was originally filed on August 23, 2017 in the Court of Common Pleas of Blair County, PA. Twenty-five insurance companies were named as defendants. A month later, the Court of Common Pleas removed Progressive 60

from the larger case and the insurance company moved the case to the United States District Court for the Western District of PA. On December 4, 2017, the body shop filed an amended complaint and brought four counts against Progressive: breach of contract; bad faith; intentional interference with business relations; and quantum meruit. Progressive attempted to dismiss the amended complaint. According to court documents in February 2018, the court denied Progressive’s motion to dismiss Professionals’ claims of breach of contract, bad faith and unjust enrichment claims. However, the court granted the insurance company’s motion to dismiss the bad faith claim in regard to third-party claimants and the causes of action that accrued before August 23, 2015 due to the statute of limitations. The court also granted Progressive’s motion to dismiss Professionals’ tortious interference with business relations claim. “This all really just comes down to one thing—-the insurance company has a contract with their customer to bring their vehicle back to its pre-loss condition and they are

breaching that contract,” said Perretta. “Because of that, that’s where this judge [Judge Kim R. Gibson] looked at this and said ‘Yes, these counts are true. They are accurate.’ We’ve proven that.” He said the other pertinent issue is that insurers want to pay one rate in the market. “It has been proven over and over again that a rate is not one number. The rate is a range of numbers,” said Perretta. “In a market, the range could go from $50 an hour to $120 an hour.” He said that shops that aren’t trained and don’t have the proper equipment or facilities to repair cars are paid the same rate by the insurance company as the shops that have the proper facilities, training and equipment. “That makes no sense,” said Perretta. “Any judge who looks at this whole situation is going to apply the law based on the contract… as this judge mentioned in his opinion.”

als did not state a plausible breach of contract claim because it didn’t plead the existence of a contract, the terms of the contract and damages. The insurance company also stated that the body shop did not have standing “… to pursue a breach of contract claim on behalf of third-party claimants who, by definition, are not parties to any agreement with Progressive.” Professionals alleged that the insurance company had contracts with the insureds and liable third-parties, which required Progressive to pay for “reasonable and necessary expenses.” In addition, the body shop said its customers assigned their claims against the insurance company. The court affirmed that Professionals pleaded a breach of contract claim and stated, “Professionals sufficiently alleged each element of breach of contract under Pennsylvania law.” The court also concluded that Professionals has standing to purse breach of contract claims on behalf of third-party claimants.

Breach of Contract According to the court documents, Progressive argued that Profession-

Bad Faith Claim Progressive asked the Court to dismiss Professionals’ bad faith claim

Diamond Standard 40 MPH IIHS Moderate Overlap Test

On February 21, 2018, MGA Design Research Corporation of Burlington, Wisconsin, performed a 40 MPH moderate overlap test to strict IIHS

2009 Honda Fit with 81,704 miles compared to IIHS 2009 Honda Fit test on a new vehicle tested on October 2, 2008 is graphed below.

Protocol on a 2009 Honda Fit with a Diamond Standard CAPA Certified reinforcement bar.

MGA Research Corporation purchased the vehicle / Set up the testing to IIHS Protocol. Diamond Standard Reinforcement Bar installed by a local ICAR Technician at MGA’s Request. Test was witnessed in person by a current ICAR Board Member. Of Note: MGA Research Corporation purchased the vehicle / Set

The results of the Diamond Standard reinforcement installed on a

APRIL 2018 AUTOBODY NEWS / autobodynews.com

up the testing to IIHS Protocol. Diamond Standard Reinforcement Bar installed by a local ICAR Technician at MGA’s Request. Test was witnessed in person by a current ICAR Board Member. MGA tested 20 different reinforcement/absorber components of OEM and Diamond Standard in Quasi Static and multiple speed Dynamic Sled tests prior to the IIHS protocol test for Diamond Standard. “Here causality was isolated in a true scientific test protocol. Component testing for Diamond Standard was designed by the late Jim Hackney, Former NHTSA Director of Crashworthiness and Father of the 5 Star Crash Rating System still in use worldwide to this day” said Michael O’Neal, President of Diamond Standard.

“As a final note, one couldn’t help but notice the toughness of a 10 year old Honda Fit in a violent 40 mph test.”

for three reasons, according to court documents. First, it said that the body shop lacked standing to bring a bad-faith claim on behalf of thirdparty claimants. Second, Progressive stated that Professionals failed to plead a bad faith claim on behalf of insureds because it did not show that the insurance company violated the Motor Vehicle Physical Damage Appraiser Act; the insurance company paid part of the claims due; and the body shop did not establish that Progressive acted unreasonably. Third, Progressive said that the body shop’s bad faith claims that were based on repairs prior to August 23, 2015 are barred by the statute of limitations. Professionals, in response, conceded in court documents that “Pennsylvania law does not recognize bad faith claims asserted by ‘third-party of intended beneficiaries of insurance contracts.’” It also argued that Pennsylvania law doesn’t require a complete denial of a claim to state a claim for bad faith. In response to the statute of limitations argument, Professionals “concedes that the Pennsylvania Supreme Court determined that a two-year statute of limitations

applies to statutory bad faith claims.” The Court dismissed the body shop’s bad faith regarding third-party claimants and stated in court documents that “Under Pennsylvania law, the third-party claimant cannot have a cause of action for bad faith.” It also ruled that Professionals pleaded a bad faith claim in regard to the insureds. “Professionals alleges that Progressive failed to reimburse it for the full amount of the reasonable and necessary repairs without a valid justification,” according to court documents. “Furthermore, Progressive knew of or recklessly disregarded this lack of a reasonable basis because it failed to fully reimburse Professionals despite Professionals informing Progressive on several occasions that it had failed to pay the full cost of all reasonable necessary repairs on each of the vehicles that Professionals serviced… “The fact that Progressive has a long history of failing to fully reimburse Professionals supports Professionals’ argument that Progressive acted in bad faith.” Accordingly, the court denied the insurance company’s motion to

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dismiss the bad faith claim in regard to the insureds. Regarding the statute of limitations, the Court granted Progressive’s motion to discuss the bad faith claim for those that occurred before August 23, 2015. Intentional Interference With Business Relations Progressive also tried to dismiss the intentional interference claim by Professionals and said the body shop “… fails to allege that any of its contracts with its customers were breached or not fully performed because of Progressive’s alleged breach, emphasizing that Professionals admitted that it ‘completed the terms of its contract with each vehicle owner.’” Professionals responded that it suffered actual losses due to the conduct from Progressive. The Court ruled that Professionals did not plead a plausible tortious interference claim, which requires “purposeful action on the part of the defendant, specifically intended to harm the existing relation,” according to court documents. As a result, it granted the insurance company’s motion to dismiss the intentional interference claim. In the Court’s opinion, “The facts alleged in the Amended Complaint do not give rise to a reasonable inference that Progressive specifically intended to interfere with Professionals’ contracts with its customers; rather, they give rise to a reasonable inference that Progressive sought to underpay Professionals for the repairs that Professionals performed on covered vehicles.” Unjust Enrichment Claim Progressive attempted to dismiss this claim for three reasons. First, it said the body shop did not confer any

benefit on the insurance company. Second, the body shop didn’t accept any benefit allegedly conferred and third, Progressive said that express contracts govern the repairs that are at issue. Professionals alleged that it conferred a benefit on the insurance in which Progressive accepted, which was to repair the vehicles covered under the insurance policies without being fully paid for the work. In court documents, the body shop also said it “properly pleaded unjust enrichment in the alternative to its breach of contract claims.” The judge ruled that Professionals stated a plausible unjust enrichment claim and denied Progressive’s motion to dismiss this claim. “Professionals conferred a benefit on Progressive by discharging Progressive’s obligations to pay for repairs under its policies. Progressive accepted and retained the benefit because it failed to fully compensate Professionals. Furthermore, it would be unjust for Progressive to retain this benefit,” court documents stated. Progressive also argued that “… the doctrine of res judicata bars Professionals’ claims for intentional interference with business relations and unjust enrichment because Professionals asserted identical claims against Progressive in previous litigation in the Middle District of Florida.” In response, Professionals asserted that the individuals it is representing in this case are not included in the MDL. The court agreed and ruled that Progressive did not establish res judicata. The legal information included in this article is based on court documents. Autobody News reached out to Progressive for comments, but none were provided.

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