April 2020 Southwest Edition by Autobody News

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Market Tsunami Sweeps Over Collision Industry by Autobody News staff

The last month’s all-but-unprecedented plunge in market conﬁdence has prompted the Federal administration to request $850B in support for the economy including $50B for the airline industry and $250B for small business loans. The macro impact to the economy of all the closures is being played out in business pressure on companies large and small. As of March 17, the virus has infected more than 5,145 and killed at least 91 Americans, according to

data compiled by Johns Hopkins University. Globally, the virus has infected more than 189,386 people and killed at least 7,504. Given the slow ramp up of testing in the U.S. the numbers are likely far higher domestically. It’s likely that any public event involving more than 50 people scheduled for this spring is canceled or postponed. The Centers for Disease Control and Prevention is now urging a nationwide halt to gatherings of more than 10 people for See Market Tsunami , Page 22

Due to the recent cancelations and postponements of events, please check for up to date information on any meetings discussed herein. For updates on all meetings see www.autobodynews.com

U.S. Lawmakers, Trial Lawyers Clash Over Self-Driving Vehicle Rules by Keith Laing, The Detroit News

Lawmakers in the U.S. House on Feb. 11 took to task a trial lawyers’ lobby group that helped kill a bill setting regulations for self-driving cars. The Washington-based American Association for Justice, which lobbies for trial lawyers who typically represent plaintiﬀs, had objected to a lack of concrete protections that would ensure the right to sue an automaker if someone is hurt or killed in a self-driving vehicle.

The 2018 Senate bill had been championed by Sen. Gary Peters, D-Bloomﬁeld Township. A similar measure was approved unanimously by the House in 2017, but lawmakers had to start over when the new Congress began in 2019. Speaking during a hearing of the U.S. House Energy and Commerce Committee on Feb. 11, U.S. Rep. Greg Walden, R-OR, placed blame for the roadblock mostly on trial lawyers, who typically align

AUTOBODYNEWS.COM Vol. 38 / Issue 4 / April 2020

Auto Group Rejected By Supreme Court in Ford Parts Patent Fight by Matthew Bultman, Bloomberg Law

The U.S. Supreme Court refused to consider an automotive trade group’s challenge to design patents covering parts for Ford Motor Co.’s F-150 pickup truck. The high court’s denial of the Automotive Body Parts Association’s appeal leaves in place a decision that rejected the ABPA’s attempt to block Ford from enforcing patents on headlamp and hood designs against the group’s members. Replacement parts distributors and insurance companies for years

pushed for legislation that would cut the amount of time automakers could enforce design patents against collision repair parts makers.

The ABPA, a trade association representing companies that sell vehicle replacement parts, was among those that backed the legislation, See Ford Parts Patent Fight, Page 18

2020 NADA Expo Brings 23,000 to Las Vegas by Ed Attanasio

The jam-packed aisles at the Las Vegas Convention Center were ﬁlled with 23,000 attendees, dealers and suppliers from across the globe at the 2020 National Automobile Dealer Association (NADA) Convention & Expo in Las Vegas, Feb. 14 through Feb. 17.

See Self-Driving Vehicle Rules, Page 18

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UpdatePromise was in full force at NADA 2020. Pictured, back row, (l to r) Adam Guizado, Stephen McCallum, Krista Lucchino, Chief Operation Officer Richard Pannazzo, President and CEO Curtis Nixon, Tyler Holman, Brandon Nixon and Taylor Su. (Front row, l to r) TJ Huntington and Chad Genco. Credit: Update Promise

The annual NADA Show brings the entire industry together for the world’s largest automotive retail conference and expo, including companies that make products and equipment for the collision repair industry. Thousands of dealers and managers, OEM executives, allied industry, international guests and collision repair professionals connect with their peers and learn about the industry’s innovations. Over the course of four days, attendees were able to visit 500-plus exhibitors, more than 60 workshops, dealer franchise meetings and a lengthy list of keynote speakers at NADA 2020. 2020 NADA Chairman Rhett Ricart said times are good for the nearly 17,000 dealerships in the U.S., but there is still much work to do. “NADA has never been in a more ﬁscally ﬁt position,” he said. “We want to make sure we can leverage that for advocacy as well as we want to get deeper and better education and tools for all the dealers.” Collision-related companies such as Global Finishing Solutions, SpaneSee 2020 NADA Expo, Page 20

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CONTENTS Role in Industry Issues ��24

ABAT Breaks Records with First Regional Meetings of 2020 ��13 Arizona Dealers Weigh in on Latest Proposed AOB Legislation ��10

NATIONAL 2020 NADA Expo Brought 23,000 to Las Vegas ��1 ABPA Denied By Supreme Court in Ford

Arizona House AOB Bill Held in Committee ��6

Parts Patent Fight ��1

Arizona is in the Lead for Auto Glass Claims ��10

Auto Glass Industry Faces Calibration Issues ��16

NABC Postpones Lone Star Pars for Cars

Automating Claims for Drivers & Insurers ��49

Golf Fundraiser to May 27 ��12 OKC Auto Show to Offer Career Fair for Students Seeking Transportation Career ��6 ProCare Collision Acquires Hodges Collision

Balise Collision Repair Delivers Repaired Escalade to Heroic Couple from January Abduction of Young Girl ��16 CARSTAR Network is Giving Away Free Repairs ��50

in Houston ��3

Chevrolet Ends Impala Production ��46

Rivian May Have A Huge Legal Fight Coming Up ��6

CREF’s Instructor of the Year is from NY ��12

Sewell Auto Tech Opens After Years in

Fatal Tesla Model X Crash: Driver was

the Making ��14

Playing Video Game ��4 General Motors’ $20 Billion EV Plan Starts by

COLUMNISTS Anderson - Performing All OEM Safety Inspections is Critical—but OEMs Can Help Us Too ��34 Antonelli - Techs of Tomorrow: 16-Year-Old Texas Student Views Collision Repair as Art Form ��28 Ledoux - ADAS for Off-Roaders ��30 Phillips - Uber for Business Offers Collision Shops Alternative for Customer Transportation ��42 Sisk - Driving the Future at WIN’s 2020 Educational Conference, Now Postponed ��40 Sisk - Mike Anderson Discusses “Utilizing Technology to Thrive and Not Just Survive in 2020” during February CIECAst ��36 Yoswick - Long-time Industry Lobbyist Offers Perspectives on Government’s

ProCare Collision, a Texas-based Multi Shop Operator (MSO), announced March 10 they have acquired Hodges Collision, a Houston-based MSO with six locations in the Houston metro area. With this acquisition, ProCare now has 41 shops in the state of Texas, 11 in the Houston market. ProCare Collision will now service new areas around Houston including The Woodlands, Spring, Magnolia and Deer Park. “The acquisition of Hodges Collision is key for our Houston

Abandoning Trump’s Emissions Rollback ��46 Insurers Win Again—Mostly—in Antitrust Lawsuits Filed by Body Shops ��48 Market Tsunami Sweeps Over Collision Industry ��1 Most Specialty Parts Sold by Independent Retailers ��23 Students Participate in WI Auto Show Competition ��10 Tesla Model Y Delivery Emails are Being Sent to Customers ��4 Toyota Fuel Pump Recall Expanded to Nearly 2 Million Vehicles ��48 Tractable Secures $25M in Funding, CEO Shares Grand Vision for Collision Repair Industry ��44 U.S. Lawmakers, Trial Lawyers Clash Over Self-Driving Vehicle Rules ��1

INDEX OF ADVERTISERS

REGIONAL

ProCare Collision Acquires Hodges Collision in Houston footprint and strengthens our ability to service more of the surrounding Houston community,” said ProCare CEO Vince Brock. “Hodges has a great reputation and we are excited to build on that and excited about the new teammates coming on board.” ProCare Collision is I-Car Gold Class Certified and currently has shops throughout San Antonio, Austin and Houston.

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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, Bill Doyle, Norman Morano, Andrew Staicer (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

Audi South Austin �� 22

Haldon Company �� 11

Audi Wholesale Parts Dealers �� 45

Honda-Acura Wholesale Parts Dealers ��26-27

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

AutoMart Mitsubishi �� 29

Hyundai Wholesale Parts Dealers �� 46

AutoNation Chrysler-Jeep-Dodge-Ram

Innovative Tools & Technologies �� 37

of North Phoenix �� 25

Kia Motors America, Inc �� 21

Axalta Coating Systems �� 5

Kia Motors Wholesale Parts Dealers �� 43

Big Mike Naughton Ford �� 29

LKQ Corporation �� 51

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

Matrix Automotive Finishes �� 19

BMW Wholesale Parts Dealers �� 40

Mercedes-Benz of Littleton �� 29

Bob Howard PDC �� 39

Mercedes-Benz Wholesale Parts Dealers �� 49

Bob Utter Kia �� 6

Mitsubishi Wholesale Parts �� 42

Car-O-Liner �� 35

Montipower Americas �� 13

Certified Automotive Parts Association �� 10

MOPAR Wholesale Parts Dealers �� 31

Chevyland �� 36

North Freeway Hyundai �� 30

Christopher’s Dodge World �� 29

Part of the Club �� 29

Classic BMW �� 32

Peak Kia �� 29

Classifieds �� 50

PPG Refinish �� 15

Covert Chrysler-Dodge-Jeep-Ram �� 12

Ray Huffines Chevrolet �� 33

Dallas PDC �� 52

SATA Dan-Am Company �� 7

Eagle Abrasives, Inc �� 17

Schmelz Countryside �� 29

ECS Automotive Concepts �� 23

Scoggin-Dickey Parts Center ��8-9

Emich Chevrolet �� 29

South Pointe Chrysler-Jeep-Dodge �� 20

Emich Volkswagen �� 29

Spanesi Americas �� 16

Equalizer Industries, Inc. �� 28

Steck Manufacturing Company �� 14

Finnegan Chrysler-Jeep-Dodge �� 2

Stevinson Toyota West �� 29

Fisher Acura �� 29

Subaru Wholesale Parts Dealers �� 38

Fisher Honda �� 29

Toyota of Laredo �� 34

Flatirons Subaru �� 29

Toyota Wholesale Parts Dealers �� 44

Ford Wholesale Parts Dealers �� 47

Tsunami Compressed Air Solutions �� 24

Fowler Honda �� 18

Volkswagen Wholesale Parts Dealers �� 49

GM Wholesale Parts Dealers �� 41

Young Chevrolet �� 28

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Fatal Tesla Model X Crash: Driver was Playing Video Game by David A. Wood, CarComplaints.com

A deadly 2018 Tesla Model X crash in the area of U.S. 101 and State Route 85 in California was caused by the driver, Tesla’s Autopilot system, inaction by the National Highway Traffic Safety Administration and inaction by officials in California. The Model X crash killed 38-yearold Walter Huang, who was playing a video game on his phone when the SUV slammed head-on into a damaged crash attenuator installed to decrease crash forces. In a report from the National Transportation Safety Board (NTSB), Huang was partially blamed for the 70 mph crash for not paying attention to his surroundings, the road and the Model X. Huang had even previously complained about his Model X steering toward the same attenuator when Autopilot was engaged, yet he still allowed it to happen while he focused on his phone. The NTSB says Autopilot was engaged with Traffic-Aware Cruise Control set at 75 mph when the lane-keeping assist system Autosteer initiated a left steering input while the SUV was about 5.9 seconds and 560 feet from the crash attenuator. Autopilot and other safety systems apparently took a vacation because the forward collision warning system did not provide an alert and automatic emergency braking did not activate. Huang also did nothing

to avoid the crash, not by steering, braking or any other action. Huang may not have taken any actions to avoid the crash, but there is still the issue of why the Model X failed to follow the correct lane in the first place.

Credit: CarComplaints.com

NTSB investigators believe various causes were responsible. These include bright sunlight that interfered with the cameras on the SUV, road lane lines that were faded and because of how close the vehicle ahead was to the Tesla Model X. In its final report, the NTSB found the probable cause of the crash as Tesla’s Autopilot system, which steered the Model X into the barrier. Also listed are the driver’s complete lack of response due to distraction from a game on his cell phone, and his overreliance on Autopilot. The report says the crash attenuator barrier had been damaged in a separate crash more than a week before the Model X crash, and the damaged barrier contributed to the driver’s injuries. The California Highway Patrol

was also blamed for failing to report the previous attenuator damage, and the maintenance department of the California Department of Transportation was named for not repairing the barrier in a timely manner. In addition to blaming NHTSA, which has done nothing to prevent distracted driving, the NTSB said tech companies should do more to create phones and devices that cannot be used while driving unless in emergencies. NHTSA has also allowed automakers to install every kind of distracting infotainment system imaginable while automakers boast of the safety of the systems, even though the devices are incredibly distracting. The NTSB also says Tesla is failing consumers by placing vehicles on the roads with technology in “beta” mode, which means the systems are being tested on public roads and then updated when defects or bugs are discovered. According to the NTSB, it should be obvious that crashes and injuries will likely occur, then Tesla will deny all responsibility by telling the public they were warned the systems were still being tested. Government officials emphasize there is no vehicle that can drive itself, a fact that seems to be lost on many Tesla drivers. Safety advocates have been screaming for years about NHTSA allowing automakers to self-regulate their self-driving cars and technology, primarily by creating voluntary

guidelines that are contributing to crashes and deaths. The Center for Auto Safety says the story may be about Tesla and the NTSB, but the real story is the lack of leadership at the National Highway Traffic Safety Administration. According to the Center, NHTSA’s “willing ignorance or extraordinary incompetence” is causing the agency to “fade ever more into irrelevance.” The NTSB crash report blames NHTSA and the U.S. Department of Transporation for ignoring multiple previous safety recommendations and taking a “nonregulatory approach to automated vehicle safety.” The report says NHTSA has failed to protect consumers by failing to ensure automakers install safeguards for systems related to automation. “The National Highway Traffic Safety Administration’s approach to the oversight of automated vehicles is misguided, because it essentially relies on waiting for problems to occur rather than addressing safety issues proactively.” - NTSB report According to the NTSB, partial automation doesn’t mean “self-driving,” and a driver cannot read a book, watch a movie, read a cell phone or play a video game without risking their own and everyone’s property and life. The driver’s family filed a lawsuit against Tesla by claiming Mr. Huang believed the technology was safe. We thank CarComplaints.com for reprint permission.

Tesla Model Y Delivery Emails are Being Sent to Customers by Randell Suba

Tesla has begun sending Model Y delivery confirmation emails to early customers, notifying them that their all-electric crossover is coming soon. Customers in Northern California who purchased a Tesla Model Y Performance with Performance Upgrade are being notified that their vehicle is almost ready for delivery. The confirmation email to customers is part of the final step and aimed at preparing customers for any remaining steps needed such as trade-ins or financing prior to taking delivery of their new vehicle. Model Y buyer Howard Feinstein shared on Twitter a screenshot of the email from Tesla. The next step for you is to confirm when

you’re able to take delivery so we can ensure the best experience possible. Once you confirm your availability, we’ll send you an update in the coming days to notify you when you can log into your Tesla Account and complete any remaining steps such as financing or trade-in. Your Tesla Advisor will be available to answer any additional questions you may have. We’re excited to have Model Y join your home and be a part of your transition to sustainable energy. Welcome to the Tesla family. Members of the Tesla Model Y Facebook group corroborated what Feinstein said. Some of the members of the group who also just recently ordered the Performance version of the all-electric crossover and are in North-

ern California also received the email notification. Tesla’s strategy to deliver new products that are fully-optioned to customers closest to its factory in Fremont isn’t a new one. The company adopted a similar priority schedule in 2017 when Model 3 started rolling off the production line. According to the delivery date email sent to customers, it would appear that the first Model Y deliveries will take place no earlier than March 15, 2020. Elon Musk confirmed during the Q4 2019 earnings call that Tesla has started a limited volume production run of the most energy-efficient electric SUV in Fremont last January or roughly 10 months after building a prototype. The full-spec Model Y costs around $67,990 including the Performance Up-

grade and the Full-Self Driving feature. It will cost $1,000 more if one opts for another paint color other than the standard Pearl White Multi-Coat. The Model Y was first expected to hit the production line in the fall of 2020 but was later moved up to the summer of 2020. However, in its Q4 2019 Update Letter, Tesla confirmed that the first deliveries of the Model Y crossover will happen before the end of Q1, marking a significant improvement in the pace of vehicle production. The Fremont factory in California is expected to churn out 500,000 vehicles this year while Giga Shanghai is expected to roll out the electric crossover for the Chinese market starting 2021. We thank Teslarati for reprint permission.

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Rivian May Have A Huge Legal Fight Coming Up by Aaron Brzozowski, CarBuzz

Electric vehicle startup Rivian could face a legal fight similar to what Tesla faced across the country. Like Tesla, Rivian is banking on the ability to circumvent the traditional U.S. dealer franchise model, wherein a private dealership franchise is responsible for 100 percent of an automaker’s new vehicle sales—something Rivian sees as essential to its business model as a relatively low-volume automaker that builds vehicles to order. Rivian is lobbying at least a couple of states—including Colorado and Washington, according to Automotive News (subscription required)—to pass bills that could allow Rivian to sell vehicles directly to consumers without having to support a third-party dealership franchise. Years ago, after Tesla adopted a similar sales model, the EV startup faced a massive backlash spurred by automobile dealers who were concerned by the prospect that Tesla’s strategy might prompt other automakers to also circumvent their

dealership franchises. That backlash led to new laws being passed in several states to effectively ban Tesla from selling to consumers there. Now, Colorado is turning into something of a battleground as Rivian pushes for legislation to permit its direct-to-consumer model, and automobile dealers urge lawmakers not to.

Rivian R1T. Credit: Rivian

An amendment was added Feb. 21 aimed to make the bill more palatable to dealership franchises by barring traditional automakers from competing directly with their dealers, but many dealers still oppose the bill. “We’re not enamored with the amendment,” said Colorado Automobile Dealers Association President Tim Jackson. “You can’t put

OKC Auto Show to Offer Career Fair for Students Seeking Transportation Career by Hicham Raache, KFOR News

The Oklahoma City Auto Show will include a career fair that will offer opportunities to hundreds of Oklahoma students. The career fair, hosted by the Collision Repair Education Foundation, will be held March 6, during the 103rd anniversary of the Oklahoma City International Auto Show, according to a Jupiter Promotions news release. The auto show will be held March 6 through March 8 at Oklahoma State Fair Park in the Bennett Event Center. “It is always a great opportunity to get students excited about the transportation industry and we are happy to be able to partner with the Collision Repair Education Foundation on this career fair,” said Peter Hodges, president of the Metropolitan Auto Dealers Association. “With over 1,000 high school and college transportation students signed up to participate, it is obvious students throughout the state have tremendous interest in trans-

portation,” he said. The Collision Repair Education Foundation, a national 501c3 auto industry charity, is organizing the career fair as it does other transportation career fairs across the nation. The foundation seeks to introduce students to national and local transportation industry employers to “address the aging workforce issue and demand for entry-level staff,” the news release states. Auto service and collision careers are emphasized during the career fair to help students get a jump on a transportation career. “We are very excited to hold this career fair at the Oklahoma City Auto Show this year,” said Brandon Eckenrode, director of development for CREF. “The ‘all Oklahoma’ career fair event, held in conjunction with the Oklahoma City Auto Show, sold out all of the employer tables and with over 1,000 students registered, we look forward to an incredible event.” We thank KFOR News for reprint permission.

lipstick on a pig. It’s still a pig.” The bill could still allow all automakers, including those with established dealership franchises, to sell EVs directly to consumers, which has prompted a lot of concern from Colorado dealers. The amendment added last Friday was intended to address related concerns, but dealers still fear it will allow automakers to circumvent their franchises. “We believe [automakers] do want to work with their dealers,” said Jackson, “but we think it would be tempting to go around that dealer body to sell direct if they thought it would be an advantage.” Rivian will put its first two consumer models—the Rivian R1T electric pickup truck and R1S electric SUV—into production later this year. The company sees direct sales as vital in part because it plans to make the vehicles to order rather than mass-producing vast quantities to fill out dealer lots. We thank CarBuzz for reprint permission.

Arizona House Bill Held in Committee An Arizona bill impacting assignment of benefits (AOB) was held in committee during a House meeting at the end of February. The bill, also known as HB 2441, aims to alter the way auto glass shop owners obtain AOB from insureds. The Arizona Auto Glass Association (AAGA) recently sent out a notice informing auto glass shop owners in the state about the legislative update. The notice also referenced HB2441 as a “striker bill.” The association further explained the possible implications. “A ‘strike everything after the enacting clause’ amendment (also referred to as a ‘strike everything’ amendment or simply a ‘striker’) proposes to delete the entire text of the existing bill and substitute new language, essentially making it a completely different bill, possibly on an entirely different subject,” a portion of the AAGA notice reads. “These amendments are sometimes used to allow legislators to circumvent the deadlines on introduction of new legislation, deal with an issue that arises after the deadline or revive a bill that has previously been defeated.” We thank glassBYTES .com for reprint permission.

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Students Participate in WI Auto Show Competition Young auto mechanics took part in a competition at the Milwaukee International Auto Show. The high school students worked on cars at the annual event, backed by the Auto Dealers Association and Milwaukee Area Technical College, to encourage young people to consider careers as auto technicians. “Tech education in high schools in general has gone away,” said MATC’s Steve Herro. “Not just because they’re not interested in tech, but ‘cause it’s very expensive to have an automotive program in a high school. So what we’re doing at MATC is trying to provide opportunities for high school students to get involved.” Two of the six-member student teams will win a chance to go to New York and represent Wisconsin in a national auto technology competition. We thank WDJT News for reprint permission.

Arizona Dealers Weigh in on Latest Proposed AOB Legislation by Emmariah Holcomb

“It’s a bad bill that’s designed to punish mom and pop shops, the little guys, from billing what we think is fair and reasonable,” said Rex Altree, SafePro Auto Glass president, when referring to new assignment of benefits (AOB) legislation. Altree is also the president of the Arizona Auto Glass Association (AAGA) which recently sent out a notice to encourage auto glass shop owners in the state to “vote no on House Bill 2441.” The bill, which was introduced at the end of January, aims to alter the way auto glass ship owners obtain AOB from insureds. “Our lobbyist said that any body who mistakenly doesn’t follow the strict and onerous provisions, which require us to jump through several hoops, will not be able to get a valid assignment,” said Altree. According to HB 2441, assignment agreements must contain all of the following provisions in at least 12-point font: • “Whether the insured remains liable for any costs that are not covered by the insurance policy;

• The interest rate, if any, that the assignee will charge the insured if the insured delays for more than thirty days payment to the assignee after receiving payment from the insurer; • That the assignment agreement does not require the insured to indemnify the assignee against any claims arising out of the services or repairs that the assignee provides; and • Whether the assignment authorizes the assignee to sue the insurer on the insured’s behalf.” “If you don’t get an assignment, the invoice is paid to the customer, which causes problems for the shops,” said Altree. The new legislation also states if the assignment agreement authorizes the assignee to sue the insurer, the assignment agreement must include the following notice in capital letters in at least 14-point type. “You are agreeing to give up certain rights you have under your insurance policy to a third party, which may result in litigation against your insurer. Please read and understand this document before signing it. You have the right to cancel this

agreement without penalty within 14 days after the date this agreement is executed. However, you may be obligated for payment for any contracted work performed before the agreement is rescinded. This agreement does not change your obligation to perform the duties required under your insurance policy,” a portion of the bill reads. “If this passes, at the end of the day, the customer has fourteen days to resend the assignment that they signed. Then we would have to collect the money from the customers,” Altree said. According to Altree, if it were to pass all of the smaller auto glass businesses would be impacted. “This bill is bad for premium-paying insurance customers and worse for the local, family owned businesses that do repairs on vehicles and homes, through insurance. The only industry that this bill would help is property and casualty insurance corporations,” a portion of AAGA’s notice reads. We thank glassBYTEs.com for reprint permission.

Arizona is in the Lead for Auto Glass Claims Arizona leads the nation in auto glass claims, according to the National Insurance Crime Bureau (NICB). Insurance industry data shows 10% of the nation’s auto

glass claims were from Arizona between 2015 and 2019. “The fact that auto glass claims have increased 26% over the last five years suggests that there may be a rise in fraudulent activity in Arizona,” said Howard Handler, NICB’s government affairs director. There have been multiple lawsuits where insurance companies have claimed some glass shops bill

for windshield repair and replacement services that the shop has not done. “In many cases, these fraudulent auto glass companies are convincing consumers to sign an assignment of benefits (AOB) form, which means you are giving the auto glass company the right to file an insurance claim, make the repairs, and collect any insurance payments,” said Handler. “The problem is these companies are turning this into a lucrative business by inflating the insurance claim, and collecting the money for themselves. This type of AOB abuse is a scam and must be stopped.” The NICB noted it will continue to work with lawmakers in the House and Senate to stop AOB abuse against consumers. We thank glassBYTEs.com for reprint permission.

AUTOBODY

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CREF’s Instructor of the Year is from NY Brian McDonnell, a collision instructor at the Greater Southern Tier BOCES Cooper Education Center in Painted Post, NY, has been named the Collision Repair Education Foundation’s Instructor of the Year.

The award recognizes the achievement of a secondary or post-secondary collision school instructor who has gone above and beyond their role and responsibility as an educator to become a true leader, role model and mentor to the students they teach. “I really found out the caliber of teacher Brian is when I was his mentor,” said Tammy Divens, a registered nurse and New Visions Medical Teacher at the GST BOCES Cooper Education Center. “Brian works tirelessly to pro-

vide the most up to date skills and education for his students.” The collision instructors working at career and technical schools and colleges across the U.S. have one of the most important and challenging jobs, teaching and guiding young men and women toward becoming a successful asset to the collision industry and buidling a thriving and fulfilling career. “The Instructor of the Year Award recognizes an instructor who has gone above and beyond his/ her roles and responsibilities as an educator to become a true leader, role model and mentor of the students they teach,” said Melissa Marscin, director of operations and administration for the foundation. McDonnell received a trip to SEMA 2019 and was honored at the Education Foundation’s evening reception Nov. 5. Source: Collision Repair Education Foundation.

NABC Postpones Lone Star Pars for Cars Golf Fundraiser to May 27 The National Auto Body Council® announced today it will postpone the upcoming NABC™ Lone Star Pars for Cars Golf Fundraiser scheduled for April 2 in Dallas until May 27, due to travel restrictions for many of the event participants and concerns over the corona virus. This follows the recommended procedures and protocols by the World Health Organization (WHO), U.S. Centers for Disease Control and Prevention (CDC) and local authorities. The event will be rescheduled to Wednesday, May 27: NABC™ Lone Star Pars for Cars Golf Fundraiser, Texas Star Golf Course 7 a.m. - Registration and breakfast 8:30 a.m. - Shotgun start 1:30 p.m. - Luncheon 2 p.m. - Awards and raffles 2:30 p.m. - NABC Recycled Rides® presentation, with vehicle donor Farmers Insurance and vehicle repair partner Berkshire Hathaway Automotive

The NABC Board Meeting scheduled in conjunction with this event will be rescheduled to Thursday, May 28, at the Berkshire Hathaway Automotive Corporate Office in Dallas. Golfers registered to play in the NABC™ Lone Star Pars for Cars golf fundraiser will be carried over to the rescheduled event, as are the event sponsors. Any questions regarding the rescheduled events should be directed to NABCadministration@ Nationalautobodycouncil.org. “We thank all of our members and those who registered for this event for your continued support of the National Auto Body Council,” said Bill Garoutte, president and CEO of the National Auto Body Council®. “We appreciate your understanding as we manage through this unique challenge. We hope everyone remains healthy and well in their local communities, and look forward to seeing everyone in May.”

www.autobodynews.com

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ABAT Breaks Records with First Regional Meetings of 2020 by Chasidy Rae Sisk

The Auto Body Association of Texas (ABAT) held its first regional meetings of the year Feb. 25 in Dallas, featuring Greg Griffith of AkzoNobel, who discussed “Cycle Time: Implementing Repair Planning.” Griffith’s presentation was simulcast to five other locations across Texas, allowing 280 people to take advantage of the training opportunity. “We are making history and breaking records with attendance,” said Jill Tuggle, executive director of ABAT. “The event was a total success. This was the first time we’ve done a simulcast meeting, and it was very well received.” Griffith’s presentation focused on the impact of repair planning on cycle time, demonstrating how to get repairs through collision shops with fewer delays. “Improving cycle time isn’t about working faster or harder; it’s all about working smarter,” Griffith said. “The biggest gains in cycle time don’t come from teaching your employees how to do their jobs. They come from creating a process that allows them to do their

job continuously without stopping for unnecessary delays.” Attendees gained a better understanding of the repair planning process and how it positively impacts cycle time.

Greg Griffith of AkzoNobel discussed “Cycle Time: Implementing Repair Planning” at ABAT’s regional meetings in February. Pictured is the Dallas chapter meeting. Credit: ABAT

Griffith explained supplements are just defects in the estimating process and identified ways to remove this waste from shops’ processes. He also discussed how to effectively prioritize work and how to ensure technicians always have the correct parts when they are needed. “This class was full of great information—especially for shops who have not taken the plunge into repair planner type setups,” Tuggle said.

“As always, ABAT guaranteed shops would learn something that can be immediately implemented and will make a positive impact on their shop the next day. I received so much good feedback from this. We will most certainly move forward with more meetings like this.” Tuggle said attendees responded extremely well. “We had a few hiccups that delayed our advertising of this event so we were conservative with our anticipated attendance numbers,” Tuggle said. “In just two weeks, we had 280 people in attendance across the state—even exceeded room capacities in some areas. “That’s a record for ABAT. We were blown away. It’s testament to how bad the collision industry needs associations right now. They need someone in their corner. They have been needing this for a while then we came on the scene, we have proved ourselves to be a force and now shops are joining by the dozen.” ABAT believes its duty is to provide valuable educational content for the collision repair industry, both association members and potential

members. “It’s all about putting safer cars on the road and preserving the integrity of our industry,” Tuggle said. “We want to see shops succeed.” In addition to Griffith’s presentations, each regional meeting included association updates from local ABAT representatives, in-person training and networking opportunities. The Dallas meeting was held at the Holiday Inn Express DFW Airport, the Houston chapter met at the Holiday Inn-Energy Corridor and members near Austin gathered at the DoubleTree. ABAT’s Abilene and Henderson chapters met at their local Holiday Inn Express, and the San Antonio chapter held its event at Alamo Café. ABAT plans to hold another series of simulcast-style regional meetings in June. The association is looking forward to its annual skeet shoot on May 8, as well as the 2020 Texas Auto Body Trade Show, scheduled for Sept. 18 and Sept. 19 at the Irving Convention Center at Las Colinas in Irving, Texas. For more information about ABAT and its upcoming events, visit abat.us or Facebook.com/abat.us.

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Sewell Auto Tech Opens After Years in the Making by Jacy Lewis, MRT

Sewell Auto Tech officially opened its doors Feb. 27 in Odessa, TX. Odessa College, the Sewell Family of Cos. and Odessa Development Corp. built a state-of-the-art campus that has been years in the making. “Today, we celebrate the opening of the building, but for me what I’m really excited about is less about the building and more about the opportunities it is going to create for young people in our community,” said Collin Sewell, president of Sewell Family of Cos. “I think there are tons of young men and women in our community who are trying to figure out what they want to do when they grow up.” Sewell said he thinks young people sometimes have a hard time visualizing their dreams. “The hope with this building and the hope with what Sewell Auto Tech can do is that it can take a dream and turn it into a vision, which allows them to make a new reality for themselves,” Sewell said. Construction of the building was funded in part by a $6.2 million grant from the ODC, said Don Wood, OC vice president of institutional effectiveness and vice president of instruction. The building also features 25 images by OC photography professor Steve Goff, OC adjunct photography professor Beckwith Thompson and Kathleen Mahoney, a former student. Thompson said all the images were taken in the building. The state-of-the-art building is 37,000 square feet and has seven classrooms, seven teaching bays, four diesel bays and engine and transmission labs, said Jennifer Myers, OC dean of business and industry. There is also a large area to the side of the building for truck-driver training. “In the fall of 2019, we (OC) added the automotive and diesel technology programs as course pathways for the Odessa Career and Technical Early College High School students,” Myers said. “At the end of their senior year in high school, these early college high school students will graduate with their associate degree in diesel or automotive technology before they grad-

uate with their high school diploma, and will be ready to enter the workforce,” she said. Odessa High School and Permian High School students also will get the opportunity to earn dual credit in classes at Sewell Auto Tech beginning in the fall, Myers said.

Credit: Jacy Lewis

JSA Architects President Cruz Castillo said the building design was meant to resemble a NASCAR car with the different patterns and colors present throughout the design. It is supposed to look like a racecar streaking past, he said. “The partnership between Odessa College, my family and also the Odessa Development Corporation was really a three-way partnership to see what we could do to create opportunities for young people in our community,” Sewell said. “Odessa College and Sewell Ford, along with my parents and I, partnered to give them the land to build this facility. But really it was the Odessa Development Corporation in a three-way partnership to make this a reality.” The Auto Tech campus is on the site of the original Sewell dealership building, built in 1968 by Sewell’s father, Ron. “In 2012, (OC President) Greg Williams and I made an agreement that we wanted to turn this into an automotive technology campus,” he said. “Then, because of the economy and delays that happened, we weren’t able to turn the building over to them until 18 months ago. They went to work on making this a reality.” Myers said students will be able to learn on all types of vehicles. Beginning this fall, OC will offer an associate in applied science in a Ford-specific training, known as the Ford Automotive Student Service Education Training or Ford ASSET, she said. There are really two components to Sewell Auto Tech, Sewell said.

“One is a traditional mainstream auto tech program where a student can learn to become an automotive technician,” he said. “There is also a specialty partnership with Ford Motor Company that is a Ford ASSET Program, and Ford Motor Company became the fourth partner in this project to be able to create a specific certification for Ford-certified technicians throughout the region.” He said the students in the Ford ASSET Program will be sponsored by Ford dealers throughout the state and will receive scholarships to attend school at Sewell Auto Tech. “In many cases, education was the fork in the family tree that changed everything,” Sewell said. “Our whole vision around Sewell Auto Tech was that the motto is ‘Learn, earn and then return,’” he said. Sewell said he would like to see program graduates return to Sewell Auto Tech to teach a new generation of students. “My true favorite part of the building is that there is a photograph on the history wall of Oscar Jimenez,

who was our longest-serving team member in our company for 45 years,” he said. “He just passed away last year. Unfortunately, he didn’t get to see this building open.” Sewell said he wishes Jimenez could have had the opportunity to come teach at Sewell Auto Tech because he was an artist in what he did and was also a mentor to young technicians. Williams credits Sewell with being able to offer this program. “Not only did he (Sewell) give his advice but he gave his help and support,” Williams said. “That’s why we are able to do what we are able to do.” Williams said that this was an investment into the future. “The investment is a belief in our future,” Williams said. “We believe that our future is bright, and we believe that there are better days ahead and the days now are good but there are better days ahead.” We thank MRT for reprint permission.

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Balise Collision Repair Delivers Repaired Escalade to Heroic Couple from January Abduction of Young Girl Balise Collision Repair of West Springfield, MA, and several community donors on Feb. 25 delivered the repaired vehicle to a heroic couple who risked their lives to track down a suspected vehicle in the abduction of a young girl from Springfield in January. The delivery was made at Balise Collision Repair, 1800 Riverdale St. in West Springfield. In the chase that ultimately lead police to returning the young girl home safely, the vehicle belonging to Amanda Disley and her husband, Benny Correa, sustained considerable damage to the undercarriage, suspension, brakes, shocks and struts. After hearing of the story on social media, Balise immediately reached out to the couple to help. Western Mass News and its “Surprise Squad” helped facilitate the meet-up. The damage alone would’ve cost thousands of dollars—all of which Balise planned to cover—but to thank the couple for their bravery, Balise Collision Repair chose to take it a step further.

A full overhaul of the vehicle was performed—including new front and rear bumper, undercarriage suspension components, 22-in. platinum wheels and tires.

Credit: Belise Collision Repair

All dents, dings, rust and rotted areas were repaired and/or replaced, and the vehicle was given a full custom matte black paint job. Before delivery Feb. 25, Balise Collision completed a full lube and oil change, and the Balise Carwash gave the vehicle a full interior and exterior detail. Donors from all over Western Massachusetts reached out to help Balise Collision’s mission.

Balise Wholesale Parts, Napa Auto Parts and LKQ Keystone all donated parts; Autobody Supplies and Paint donated all the paint materials. Balise Riverdale Car Wash donated a complete interior and exterior detail. The total estimate of work and donated supplies put the overhaul between $20,000 and $25,000. With the help of local partners, Balise was able to go above and beyond with all the repairs and custom work. “We knew right away we wanted to do something special for these two,” said Brian Stone, group collision director for Balise. “Every bit of additional work on their Escalade came from a place of pure gratitude, and we are thankful to the donors who stepped up to assist us in our efforts to deliver this vehicle in like-new condition. We couldn’t have done it without them.” Source: Balise Collision Repair

Auto Glass Industry Faces Calibration Issues by Emmariah Holcomb, glassBYTES.com

Select Honda vehicles equipped with multipurpose cameras (LDW and LKAS) have become more challenging to recalibrate due to the camera being incorrectly mounted in the bracket, according to some auto glass installers. Several installers say the vehicle’s camera is not aligned within the trapezoidal shape of the camera window. glassBYTEs.com has been receiving reports involving DOT numbers 459 and 563, which installers are saying are at the root of recalibration issues. The DOT numbers are for glass made by Fujian Yanhua Glass Industry, Co., also known as Fuyao, and Shenzhen Automotive Glass Manufacturing, also known as Xinyi. Neither company has responded to glassBYTEs request for comment as of press time. We thank glassBYTEs.com for reprint permission.

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Self-Driving Vehicle Rules with Democrats. “It should be clear from the history of this process that Republicans and Democrats on this panel worked very hard with your organization to get sign off and support when we first moved this bill,” Walden said. “So you might imagine my disappointment when you all asked for more changes in the Senate, despite the deal we had here in the House with your organization. “But it was even more curious that when Senate Republicans and Democrats ceded to the provisions you were seeking, you still didn’t support the deal,” Walden continued. Daniel Hinkle, state affairs counsel for the American Association of Justice, defended the organization for insisting on clear liability rules in any future self-driving legislation. He cited lawsuits filed against General Motors Co. that revealed the company’s flawed ignition switches had been found to be defective years earlier, but nobody inside the company

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Ford Parts Patent Fight which stalled in Congress. ABPA sued Ford in 2013 after certain members were accused of selling infringing parts. The group argued an F-150 owner has the right

to repair a damaged truck, and either make replacement parts or have those parts made for them. A judge in the U.S. District Court for the Eastern District of Michigan refused to find Ford’s U.S. Patent Nos. D489,299 and D501,685 unenforceable against ABPA members. Buying a vehicle doesn’t give the owner the right to make “new auto-body parts covered by Ford’s design patents,” the judge said. “It follows that the owner lacks

had raised the alarm. In all, 2.59 million cars were recalled due to faulty switches that ultimately were linked to 124 deaths and hundreds of injuries.

Silicon Valley robotics company Nuro has been granted approval to run its self-driving R2 delivery vehicle without the steering wheel, brake pedal and other features required of vehicles driven by humans. Credit: Nuro

“The difference between an automated vehicle and a human-driven vehicle is a promise,” he said. “It is a promise from the manufacturer of that automated driving-system that they will operate the vehicle safely on our roads...The key question is whether our laws will hold these companies accountable for that promise.” U.S. Rep. Debbie Dingell, D-Dearborn, argued it is essential for Congress to set rules for self-driving testing to ensure the U.S. remains competitive in the global race to dethe right to have those parts made for her by ABPA members,” U.S. District Judge Laurie Michelson wrote. The U.S. Court of Appeals for the Federal Circuit affirmed the ruling in July 2019. In appealing to the Supreme Court, ABPA argued the ruling could minimize, or even eliminate, the right to repair in design patent cases. “This result not only will adversely affect the automotive repair industry with its thousands of daily repair part transactions, but also will adversely affect every industry where products or product components have designs or portions of designs covered by design patents and are in need of repair,” the trade group wrote. Ford didn’t file a response to the ABPA’s petition. The case is Automotive Body Parts Association v. Ford Global Technologies LLC, U.S., U.S., No. 19-1002, 3/9/20

velop the technology. “Automated vehicles aren’t just something we read about in science-fiction novels anymore. They’re here, transforming mobility and transportation as we know it,” Dingell said. “AVs are bringing jobs to this country, but we cannot take it for granted,” she continued. “This transformation is an open international competition, and other countries are stepping up. Other countries are in the game and trying to beat us. Automated vehicles will be developed globally, whether we like it or not, and it’s critical that America be at the forefront of innovation by leading the development of this technology.” The push to revive self-driving legislation comes after the federal government gave the green light to the first self-driving vehicle with no steering wheel, brake pedal—or human driver. Nuro Inc., a robotics company based in Mountain View, CA, was given permission by the National Highway Traffic Safety Administration to put up to 5,000 of its autonomous R2 electric delivery vehicles

on the road over a two-year period. John Bozzella, CEO of the new Alliance for Automotive Innovation, which lobbies for self-driving friendly laws, touted the potential for autonomous vehicles to drastically reduce the number of deaths that occur annually on U.S. roadways. “Unlike conventional human drivers, AVs can’t get distracted, drive impaired or fall asleep at the wheel,” he said. Dingell agreed, saying the rapid development of self-driving technology should spur lawmakers to action. “Safety, including cybersecurity, has to be our top priority here,” she said. “Nobody wants to let unsafe technologies on the road. But we also don’t want to prevent vehicles that would improve safety and mobility… from reaching consumers easier.” “We must in 2020 get this over the line,” Dingell continued. “If you’re a safety advocate, you should want a bill to give NHTSA the authority to ensure these vehicles are safe. If you’re an innovator, you need certainty to know what the rules of the road are.” We thank The Detroit News for reprint permission.

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2020 NADA Expo si, Inc., Dr. ColorChip, asTech, Garmat, CCC Informational Services, Pro Spot International and UpdatePromise were exhibitors this year. Public Relations & Event Marketing Specialist Ronnie Guindon at Global Finishing Solutions said his company’s participation in the show was a success. Sending three company reps and three of their western distributors to the show was definitely a good idea, he said. “We got a lot of traffic and met people from dealerships and collision centers who are in the market for our equipment,” Guindon said. “At the NADA Show, we get quality leads as opposed to a large volume of them, like at SEMA. More and more dealerships are investing in their own in-house body shops, which is good news for us.” COO Tim Morgan at Spanesi, Inc. was happy to be an exhibitor at NADA 2020 after waiting for several years, he said. “It’s a popular show and space

Force Base and Nevada Test and Training Range in southern Nevada. This is the second donation in three years that NADA has made to the organization. Assurant, Inc., a global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases like automobiles, contributed $25,000 through its Assurant Foundation to the NADA Foundation’s Workforce Initiative. “Assurant is proud to support the NADA Foundation’s Workforce Initiative Global Finishing Solutions was happy with the show’s traffic that’s committed to develand the leads they gathered at NADA 2020. Credit: GFS oping the next generation Here is a brief recap from all of of auto professionals,” said Assurthe highlights of this year’s show, ac- ant’s Global Automotive president, cording to press releases from NADA: John Laudenslager. “We believe Every year, NADA is well- it is important to invest in the future known for helping nonprofit organi- and encourage the next generation zations in cities that host its annual of innovators, leaders, engineers and show. technology professionals.” This year, they donated $50,000 During NADA Show 2020 in Las to the Nellis Support Team, a non- Vegas, Assurant drove dealers to their profit organization supporting the booth with a pledge to donate $100 30,000 airmen and their families at to the NADA Workforce Initiative Nellis Air Force Base, Creech Air for each dealer who visited. On Feb. is limited, so we were on their waiting list,” Morgan said. “We were able to meet with the decision-makers, which is what you always want from a show like this. Will we participate next year? Absolutely.”

16, Assurant presented NADA with a $40,300 check, representing funds raised during NADA to support the Workforce Initiative’s mission. NADA Foundation launched the Workforce Initiative in 2019 to harmonize industry efforts and offer a brand-neutral tool for recruiting service technicians and sparking an interest in service technician careers. The foundation’s website, nadafoundation.org, includes the first and only interactive U.S. map of training and scholarship opportunities available for aspiring technicians, as well as videos featuring a variety of technicians highlighting their careers and the challenging nature of their work. Once again, NADA backed its bark by raising funds for service dogs from Canine Companions for Independence (CCI) over the expo floor on Feb. 16, as NADA Foundation and KAR Global auctioned off a VIP all-access “Epic Experience” package for the 104th running of the Indianapolis 500. Proceeds from the auction benefit the NADA Foundation’s Frank E. McCarthy Memorial Program, which See 2020 NADA Expo, Page 33

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Market Tsunami the next eight weeks, until approximately the beginning of May, citing the risk of the coronavirus. Stores and other suppliers are also closing at an unprecedented rate as employees are asked to stay home. In the past few weeks iconic events including the Masters golf tournament and the Boston Marathon have been canceled in addition to multiple sports leagues, notably the NHL, NFL and NBA at home and internationally. Major League Baseball has pushed back opening day until mid-May at the earliest. And with heavily populated states like CA, NY and NJ closing or curtailing patronage of bars, restaurants in at least 11 states are stopping group dining, it’s no surprise that almost all collision industry events have been postponed or modified because of the COVID-19 coronavirus. The automotive industry has been particularly hard hit in Hubei

province, site of 9% of China’s vehicle production and the epicenter of the outbreak. Hubei is one of five major automotive manufacturing centers in China as well as a hub for auto parts production for U.S. domestic and foreign automakers. Plant closures have already affected global automotive supply chains. And with stocks diminishing rapidly, a global shortage of auto parts looms in 2020. The Automotive Service Association (ASA) Board of Directors postponed the association’s joint CARS (Congress of Automotive Repair & Service), TTF (Technology & Telematics Forum) and annual business meeting until late August or early September. The event, co-located with the Technology & Telematics Forum as well as the association’s annual business meeting, was to have been held May 4-5, in the Dallas-Fort Worth community of Hurst. NORTHEAST has been postponed from March 20-22 to Aug. 21-23. It will likely still will be the collision industry’s second-biggest show, as NACE appears unlikely to

occur this year. AASP-NJ, which hosts NORTHEAST, said it always had August as a backup date since the start of the coronavirus outbreak. “Thankfully, the MEC had a few open dates available for us to choose from,” AASP-NJ President Jerry McNee said. “We wanted to make sure it was far enough in the future so that the COVID-19 danger would pass, but not so far as to be too close to SEMA. We also felt that August would work for us since NORTHEAST is predominantly a ‘drive to’ show as opposed to a ‘fly to’ show.” ATE 2020, sponsored by ASA Northwest, is rescheduled for July 31–Aug. 2 at the DoubleTree Hilton by SeaTac Hotel in Seattle. The International Bodyshop Industry Symposium had been slated to return to the U.S. for a second year April 1-2. However, the organization has instead opted to hold the event virtually instead at the Sawgrass Marriott Golf Resort & Spa in Jacksonville, FL. The agenda will be condensed into a three-hour live webinar.

“As a result of the Coronavirus, IBIS USA will now be held as a webinar on 2 April instead,” the organization said. “We will deliver much of the planned IBIS USA industry-leading content in a threehour live broadcast. Throughout this time, delegates will have the opportunity to interact and ask questions via the soon to be launched mobile app.” Despite being hosted online, the event will remain invitation-only, according to IBIS. For more information, contact suzie@ibisworldwide .com. SCRS decided to re-book significant spring events in conjunction with the July industry meetings taking place in Philadelphia, PA, prior to the Collision Industry Conference (CIC) quarterly gathering, scheduled for July 22 and 23. Calling it a “difficult decision,” the Collision Industry Conference announced it would cancel its April 8-9 gathering in Jacksonville, FL. “The decision was made with the concerns related to public safety and logistical issues due to corporate travel restrictions,” CIC said in

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an email. “While you may be disappointed, we hope that you can see that this was the right direction given the circumstances.” CIC also cited the declaration of a national state of emergency over the coronavirus as a contributing factor. CIC had previously declared it would proceed with the event, the same day that the popular NORTHEAST show announced it would reschedule for August. The National Auto Body Council also announced a change in plans. The organization said its Lone Star Parts for Cars event on April 2 in Dallas, Texas, would be pushed back to May 27. NABC cited “travel restrictions for many of the event participants” as well as virus concerns. “This follows the recommended procedures and protocols by the World Health Organization (WHO), U.S. Centers for Disease Control and Prevention (CDC) and local authorities.” The organization also pushed back its NABC board meeting to May 28 at the Berkshire Hathaway

Automotive headquarters in Dallas. “We thank all of our members and those who registered for this event for your continued support of the National Auto Body Council,” NABC CEO Bill Garoutte said in a statement. “We appreciate your understanding as we manage through this unique challenge. We hope everyone remains healthy and well in their local communities, and look forward to seeing everyone in May.” I-CAR has said “All unnecessary travel has been stopped, but local training is still going on until further notice.” The Women’s Industry Network (WIN) has announced the cancellation of its 2020 Annual Educational Conference scheduled for May 3-5 in Newport Beach, CA, due to concerns over COVID-19. “After careful consideration due to the coronavirus affecting potential safety and health concerns, the Women’s Industry Network has decided to cancel our Annual Educational Conference for 2020,” said Cheryl Boswell, WIN chair. Full conference registration fee

refunds will be issued to all participants—this includes Scholarship Walk and guest tickets for the WIN Celebration. No action is required on their part. Regional events cancelled and postponed AASP-MN has cancelled all scheduled committee meetings and events, including the Annual Meeting & Leadership Conference on April 23. See autobodynews.com for a new category of updates on collision industry events throughout the year. All associations are invited to submit their updates to our list. Please forward to aandrews@ autobodynews.com

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Most Specialty Parts Sold by Independent Retailers Independent retailers in the automotive aftermarket remain the most used sales channel for getting parts to consumers, according to the new SEMA Industry Perspectives Report, the latest resource for SEMA members to gain insight on the health of the industry on a wide range of business metrics. While manufacturers and distributors sell into a variety of channels, including direct-to-consumer, more than 80 percent of manufacturers report their products sell through independent specialty retailers. While many retailers and installers report selling some of their inventory through online auction sites and marketplaces, these only account for 7% of sales. More than 70% of smaller manufacturers, with less than $1 million in annual sales, sell directly to consumers, while less than 30% have their parts stocked by dealerships or chain stores. Source: SEMA

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with Erica Schroeder

Industry Insight with John Yoswick

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

Long-time Industry Lobbyist Offers Perspectives on Government’s Role in Industry Issues

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Bob Redding serves as the industry’s should be able to expect they’ve been eyes, ears and voice in Washington, maintained and repaired properly, D.C. with Ed Attanasio Redding said, but those owning them As the national lobbyist for the may not “have skin in the game” for Automotive Service Association, Red- ensuring that happens. ding helps keep the autobody industry “If your family needs some cash (along with the mechanical service so you’re driving for Uber or Lyft, industry) appraised on legislative and (safe repairs) might not be the first regulatory activities and proposals, thing you have in mind as long as and brings the industry’s viewpoint to the car is blowing and going,” Redwith Ed Attanasio ding said. “We think with new vehicle technologies, somebody needs to be looking at these vehicles. Not just post-repair inspection, but also some type of annual or biennial vehicle safety with Ed Attanasio inspection.” A topic Redding said he thinks the industry should be more attuned to is eminent domain, the right of a Bob Redding serves as a lobbyist for the Automotive local or state government to with Ed Attanasio Service Association. Credit: Sheri LaFlamme expropriate private property table when lawmakers or government for public use. agencies are making decisions. The New York Times recently During a recent interview in his published a special section on the office, just a five-minute walk from many automotive businesses—inkey U.S. Senate office buildings, Red- cluding Joe’s Auto Body—in a secwith Phillips ding talked about someStacey of the topics tion of Queens now owned by the he’s engaged in as part of his work for city and slated for redevelopment to ASA. “become New York’s next gleaming Almost every year, for exam- neighborhood.” ple, the association opposes efforts The city of Austin, TX, is seekto curtail or even eliminate existing ing to update its land development state vehicle inspection programs. code in a way that will effectively with Stacey Phillips This year there are been proposals to zone out some existing automotive scale back the inspection programs businesses. in Virginia and West Virginia. Redding said a section of Alex Redding said in addition to help- andria, VA, that “has a long history ing shops in those states voice sup- of having collision and mechanical port for the vehicle safety inspection shops” could change as a major Amwith Stacey Phillips programs, ASA is supporting efforts azon facility and new subway service to add such programs in those states moves into the area. without them, including California. “How are you going to have a “There’s interest there, but we’ve subway station and Amazon across got to get a study first, and that’s what the street from a mom-and-pop mewe’re working on now,” Redding said chanical shop and a couple collision of the multi-association effort in Calishops,” Redding said. with Stacey Phillips fornia. He said it’s hard to get the in Redding said such programs— dustry motivated on the issue. in place in only about 15 states—are Redding is one of three co-chairs increasingly important as ride-share of the Collision Industry Conference and other trends reduce private own- Governmental Committee, and in a reership of vehicles in use. cent poll by that committee, eminent Those riding in such vehicles domain ranked a distant last on the

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topics CIC attendees said they wanted the committee to address at upcoming meetings. “I almost think it comes down to: If it’s not my shop, I’m not worried about it,” Redding said. “Which is tragic. Because next time it could be your shop.” As a long-time observer of politics, Redding tends not to speak about one party being better for the industry than another. He understands many ASA members share positions relative to taxes as Republicans, but sees Democrats as also being sympathetic toward small businesses and some industry issues. At a state level, for example, he points to a Republican-controlled Senate in Pennsylvania that wanted to kill that state’s vehicle emissions testing program—a program ASA supports for its mechanical shop members— only to have Democrats in the state

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House save it. So Redding mainly focuses on what likely can and cannot be accomplished based on whatever party has control. Looking to this fall’s election, Redding said control of the U.S. Senate is “really up for grabs,” but that Democrats will likely maintain the majority in the U.S. House despite Republicans likely picking up some seats there. “If it stays Democratic, you will see more vehicle safety initiatives, and efforts to put much more money into electric vehicles and electric vehicle infrastructure,” Redding predicts. “If autonomous vehicle legislation has not gone across the finish line by then, they will have another two years (to work on it) and I think it likely would.” Democratic control of the House See Lobbyist Offers Perspectives, Page 33

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Techs of Tomorrow: 16-Year-Old Texas Student Views Collision Repair as Art Form was given a damaged piece of sheet metal in class. Ivan Reyes took his first collision re- “Without hesitation I began to pair class in 2018 during his freshman fix it and finished within five minyear at Kingwood Park High School utes,” he said. “It was in that moment in Kingwood, TX. Reyes said he when I looked around the room and wanted a different perspective on the saw my peers still trying to figure automotive industry and believed things out, I discovered my talent.” Reyes described the prothat instructor Jeff Wilson’s cess of metal forming as course would offer that. pretty straight forward. “I feel collision repair is “First you get your palm a form of art because it transdolly and a hammer, typicalforms something damaged ly one with a flat head, you back to looking new again,” he explained. “I’ve always place the palm dolly behind had a love for art, and I feel the metal, apply pressure, Ivan Reyes that collision repair also reand lightly tap the hammer quires the same amount of patience, directly behind the metal while the technique and the right ‘eyes’ for de- palm dolly is supporting the protail.” cess,” he explained. “With caution, Wilson said Reyes is a perfec- you smoothly start making circles tionist on the non-structural side of around the direct damage until it has the collision industry, while most of gone flush.” his students are more drawn to paint- Reyes said he finds this practice appealing because it takes him to a ing. “He has a natural talent for form- “stress-free zone.” “It’s just me and the metal, and ing metal back into shape and making it look new again,” Wilson added. all I can focus on is right in front of Reyes recalls the first time he me,” he added. “It feels natural and by Victoria Antonelli

simple to me.” Reyes said his favorite project so far was working on an SUV trunk door with extensive damage.

Ivan Reyes, sophomore at Kingwood Park High School, is already becoming a role model in his collision repair classes, says instructor Jeff Wilson. Credit: Ivan Reyes

“We got to repair the panel and apply etching primer, 2K primer, base and clear coats to complete the job,” he explained. “Seeing the final product definitely evoked a feeling of

success.” One minor challenge Reyes has come across in Wilson’s class is perfecting his technique when using body filler. “I find this part a bit difficult because of the patience needed to get it right,” he said. “But I know that with Mr. Wilson’s help and mentorship, I will also master this process one day soon.” Reyes said one of his proudest accomplishments was fixing a customer’s 2001 Dodge Ram tailgate. “It had been through years of use and I was able to transform it back to looking brand new,” he explained. “What made that moment special to me was the amount of admiration I received from Mr. Wilson and my peers.” “He is truly becoming a positive role model for the course,” Wilson added. Once Reyes graduates in two years’ time, he said he plans to attend UTI for autobody and collision repair along with automotive tech-

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ADAS for Off-Roaders by Gary Ledoux

Recently, I purchased a 2020 Jeep Wrangler 4WD, and it came with, among other things, an epiphany— at no additional charge, mind you. Now, this is not my first 4WD vehicle, but the last one was purchased more than 30 years ago, certainly before the days of Advanced Driver Assist Systems (ADAS.) The Jeep Wrangler arguably has more available accessories than perhaps any other 4WD (or 2WD for that matter) vehicle sold in America. Many new Jeep owners, and those who buy other 4WD vehicles, like the ultra-popular Ford, GM and Ram pickup trucks, start by replacing the factory wheels and tires with a taller accessory wheel/tire combination, for more ground clearance. And then, to make the taller rubber fit, a lift kit is needed. This is followed by side steps to get into the 4WD skyscraper, rock-liquefying high-intensity offroad lights—and the list goes on. And now about that epiphany. ADAS systems, which by now we have all come to know and love, have some flexibility built into them to allow for the wearing and replacement of standard-size tires, and the sagging and replacement of aging suspension systems. What they don’t automatically allow for is a vehicle whose driving geometry has completely changed, being several inches higher than it was originally, or a rate of tire rotation for taller tires, which could affect automated braking systems and speedometer readings. And then of course, you have the accessory bumpers designed to accept a plethora of driving lights (or a winch to get you out of those really tough spots) but that could affect air bag deployment. A trip to a few Jeep-owner social media sites revealed most Jeep owners were pretty much oblivious to the concept of ADAS or other safety features and how various accessories could adversely affect them in an accident. But this is not to target Jeep owners. In their defense, the RAM, Ford and GM pickup trucks, also favorites for four-wheelers, have much more robust ADAS systems.

Of course, no 4WD owner, Jeep or otherwise, would ever think to have their ADAS system recalibrated to allow for the big tires and lift kit when the items are first installed. That responsibility will, by default

Jim Bemis, of Palm Harbor, FL, owns this 2018 Jeep Wrangler, outfitted with a lift kit and taller tires, creating a 3- to 4-in. lift. Credit: Jim Bemis

and for better or worse, rest on the shoulders of the collision shop that repairs that same vehicle after a collision. Chuck Olsen, master technician and now senior vice president of automotive technology for AirPro Diagnostics, said FCA is probably the most attuned to this sort of thing, because of their association with Jeep and the degree to which Jeep owners like to alter their vehicles. “Allowance for ride height, within reason, can be made for Jeep and Ram pickups,” Olsen said. “To do this, the calibration procedure is done with a scan tool and requires values, such as tire size and specific height measurements and even an inclinometer measurement of a camera mounting position, to be input by the technician via the scan tool during some ADAS calibration procedures. “These values also have limitations to a certain tire size or maximum height of the vehicle that the manufacture determines the ADAS system can account for and still operate as intended,” Olsen said. If you are an off-roader looking for a new ride and worried about your ADAS system working properly and concerned about your vehicle’s warranty, think Chevrolet. As stated on their website, Chevrolet offers a lift kit designed, engineered, tested and backed by Chevrolet specifically for the all-new 2019 Silverado 1500.

Chevrolet says the kit was developed by the same vehicle-level engineers that built the truck. The system was tested under the same grueling conditions, and will not void the New Vehicle Limited Warranty. The good news is, the kit includes “an exclusive front camera reconfiguration and an Electronic Power Steering calibration so that all driver-assist systems continue to function seamlessly.” The bad news is there is a whole litany of Chevy truck models that the kit will not cover, including the popular Z45 models and those with a snow plow package. And it’s only a 2-in. lift. Jeep also offers a dealer-installed lift kit. For GMC and Chevy trucks, Olsen said, information can be requested from GM to make the necessary allowances for ride height to ensure the ADAS functions within parameters. “To do this, you will need to perform reprogramming of modules with modified vehicle specifications

before re-calibrating any ADAS systems,” Olsen said. “You will need to use special module programming that may be available from a GM service programming system or request an updated programming file from GM technical support. However, you must use genuine GM wheels and approved tires and wheels when making such a request.” For Ford products, Olsen said, Ford can help make the necessary changes, but they will need a VIN number and access to “as-built data” to see exactly how the truck was originally built, and then get other specifications off the truck to know how to make the changes, and to what degree. “To do this, you will need to input any new tire size changes and new ride height measurements from lifts kits that have been installed,” Olsen said. “When this is done the AsBuilt file that is stored for that vehicle with that VIN will be updated. “In turn, these new readings can be changed and used to update calibration of ADAS functions cor-

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recting front camera angle, side object detection readings, park assist functions, active cruise control and TAD readings and other functionality such as steering assist, speedometer, ABS wheel speed and so forth,” Olsen said. These procedures of making vehicle modifications and incorporating them into programming or vehicle module build data requires a high level of vehicle control systems diagnostics, programming and calibrations by the manufacturer. This is not something for the faint of heart or average technician to perform. If a vehicle is modified outside of the ranges or limits that OEMs account for, the performance and expected operation of the vehicle is left in question or will be completely disabled. Regardless of the vehicle you are working on, a “rock-climber” or a “grocery-getter”, Olsen offered the following tips when working on an ADAS system. “First, don’t over-generalize,” Olsen said “Not all ADAS systems are designed and built the same. Steps that are necessary to recalibrate

one system may not be necessary to recalibrate another. “One may require a vehicle have a full tank of fuel. Another may not. One may require all extemporaneous items, like those golf clubs your customer likes to carry around in the trunk, be removed. For others, it may not make a difference,” he said. “Don’t memorize,” Olsen said. “If you know that, say, a 2019 Honda Accord requires steps X, Y and Z, don’t assume that the 2020 Accord will require the same steps. Take the time to look up the steps and requirements for the particular year and model you are working on, especially if it is early in the model year. The vehicle manufacturer may make several changes while the car is still in production. “Speaking of steps,” Olsen con tinued, “make sure you go through all of them to ensure your recalibration is correct. So many times, I see techs jump halfway through the procedure, ignoring most or all of the prerequisites. “If the vehicle must be on a level surface, make sure it is. If it requires that tire pressure be checked

and adjusted to X lbs., make sure it gets done. Your customer’s life, and the financial wellbeing of yourself and your shop, could be at stake,” Olsen said. Given how far and how fast ADAS systems have evolved, Olsen pondered the future of collision repair and how the industry will deal with ADAS systems. “There will always be room for those shops to make general repairs to most cars,” Olsen said. “However, the time is fast approaching where some shops will specialize in scanning and recalibrating certain brands of cars. “Already we have new specialty shops popping up that only scan and recalibrate vehicles, and do no body work,” Olsen said. “In one case, we found a body shop that specializes in scanning and recalibrating Toyotas. Other local body shops and even Toyota dealers sublet recalibration work to this shop. The face of the industry is really changing.” As for your humble reporter, I’ll keep my Jeep at the stock height with stock tires and stock suspension, thank you very much!

Continued from Page 28

Techs of Tomorrow nology training courses. “My dream job in the auto body industry is working for a Porsche or Lamborghini dealership,” he said. Reyes also has a slew of hobbies outside of collision repair, including cycling, drawing, painting and hunting with his dad. “I’ve been a cyclist for a year now and commit to riding at least 125 miles per week, he said. “I started this hobby for fun and as a way to spend more one-on-one time with my dad.” However, when Reyes and his father began comparing his results to those of more experienced riders, the boost of confidence made him want to compete. “Riding in large groups is where I get most of my training, which will benefit me during race season this spring,” he explained. For more information on Kingwood Park High School, visit www.humble isd.net.

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Lobbyist Offers Perspectives also would likely ensure the Federal Insurance Office (FIO), created in 2010 within the Department of the Treasury, isn’t dismantled, Redding said. “Now, you might ask, what have they done lately,” Redding said of the FIO. “Well, they have no money and no staff and no authority, so it’s not a lot. But as I keep saying, FIO is the bones of federal regulation of insurance. The only groups that appreciate the potential of FIO are insurance companies, and they hate it.” Redding said the FIO hasn’t focused at all on issues related to property-casualty insurance, but that’s something ASA hopes to change. “The FIO is going to be with us at least another three years, because I don’t think any administration can kill it with either a Democratic House or Senate in place,” Redding said. “But if you have both a Democratic House and Senate, it’s going to get more aggressive,” he said. “If you get a trifecta, with a Democratic

House, Senate and president, then it could really have some meat to it.” If President Donald Trump is reelected, Redding said, “then the tax and regulatory aspect for small business should be good to go.” But the Department of Justice (DOJ) under a Republican administration, Redding said, probably won’t address “most favored nation clauses,” such as those in some direct repair program agreements requiring a participating shop to give the insurer the same or better pricing than the shop offers any other insurer. “We have Democratic support (on that issue) from a House member from the Northwest who brought the head of antitrust at the Department of Justice over for a briefing when Obama was still in office,” Redding said. “So if a Democrat is elected president, the most favored nation clause issue could be back on the table because back in 2010, the DOJ went after Blue Cross Blue Shield of Michigan,” he said, alleging the insurer’s “most favored nation” clauses in its contract with hospitals were anti-competitive.

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Performing All OEM Safety Inspections is Critical—but OEMs Can Help Us Too At last November’s SEMA, I had the honor of moderating a session featuring representatives from a number of automakers. The subject came up of the detailed safety inspections most automakers call for being done on vehicles that have been in a collision. In many cases, these inspections require a lot: measuring the steering column, checking seat belt anchors, inspecting wiring and connectors, removing the dash to check the knee bolsters and mounting points, etc. During the discussion, Nicole Riedel of Subaru of America was asked if the detailed, labor-intensive safety inspections that her company—like many other automakers— call for really must be done on every vehicle undergoing collision repairs. “Every time,” Riedel emphasized. “Even if you are in New York City and vehicles are just getting sideview mirrors clipped, you still have to do it (after those repairs.) We will not deviate from that procedure…We need you to do it every single time.” I think it’s critically important that shops research on every job what safety inspections the particular automaker is calling for, to educate themselves, their customer and, if necessary, any insurer involved. I’m getting a lot of calls from both shops and insurance companies about these safety inspections. In some cases, the educated shops that recognize the need to do them are being told by a third party that a dealership or an OEM-certified shop says the inspections are not necessary. My message to you, is that you, as a professional--whether a shop or an insurer—need to understand that whatever an uneducated dealer or shop thinks does not negate the need to follow the OEM procedures, nor remove you from the liability for not doing so. I think too few shops in the industry are doing these inspections, and that makes it tougher for the shops trying to do the right thing. There are generally very sound

reasons why the post-crash safety inspection steps are so important. One automaker explained to me, for example, that measuring the steering column is necessary because that column contains collapsible plastic bushings. If those bushings are collapsed, the steering column needs to be replaced. There’s no other way to know that without measuring it. A vehicle scan isn’t going to tell you if those bushings are collapsed, or if a dash or sensor bracket or seatbelt mounting point is damaged. That all requires a visual inspection. So first and foremost, my mes sage here is that you need to be doing these inspections whenever they are called for under the automaker procedures. I was in a meeting recently with about 30 other industry professionals where one person shared that of 10 steering columns he’d inspected for one particular domestic automaker, three were damaged. Another said his shop had just removed a headliner and found a supplemental restraint system senor had been dislodged. Wow. Think about what may have happened if those issues were not found. The result in a future accident could have had disastrous consequences. But I also have a message for the industry as a whole and for the automakers in particular: We need to develop more clarity on this subject, if only to remove the friction I’m seeing. I salute the automakers looking for creative solutions that reduce the need for the invasiveness of some of these inspections. One OEM, for example, has put a sight glass in the steering column underneath the airbag cover. If you look through that sight glass and see a particular marking, that tells you the steering column has collapsed and needs to be replaced. If you don’t see the mark, you’re good to go. That’s an easier, less labor intensive solution. Some automakers also try to clarify differences in what steps are nec-

essary based on whether airbags have deployed or not deployed. But others use such phrases such as “minor to moderate collision.” I think we need to get a better definition of what qualifies as a “minor to moderate collision.” Just like most of you, I’m not an engineer, so I don’t feel qualified to determine that. If what’s required in terms of safety inspections varies based on the severity of the collision, we need the automaker engineers to help us define that. Perhaps I-CAR can work with the automakers to do that. The National Highway Traffic Safety Administration has developed one definition (https://www.nhtsa. gov/car-seats-and-booster-seats/car -seat-use-after-crash) of a “minor crash” in relation to when child safety seats must be replaced. I don’t know if that’s how au-

tomakers would define it in terms of post-collision safety inspections, but it’s one possible starting place for the discussion. I’m by no means saying the safety inspections may not always be necessary. The automakers are the experts. If they say the inspections are necessary every time, then they are. Shops need to continue to research the procedures and follow them every time. But the automakers can play an important role here in clarifying or communicating exactly when and why the safety inspections are needed to help remove some of the friction that is leading both shops and insurers—those trying to do the right thing—to reach out to me on this topic every single day.

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Mike Anderson Discusses “Utilizing Technology to Thrive and Not Just Survive in 2020” during February CIECAst by Chasidy Rae Sisk

On Feb. 13, CIECA offered a CIECAst webinar entitled “Utilizing Technology to Thrive and Not Just Survive in 2020” with Mike Anderson of Collision Advice. Topics included eliminating human disruption, how AI will impact collision repair facilities, electronic quality control checklists, text reminders, customer updates using technology, and much more. CIECA Executive Director Ed Weidmann began the webinar by welcoming attendees and introducing Mike Anderson of Collision Advice. After covering antitrust and competition guidelines, Anderson dove into a discussion about eliminating human disruption. “It is no secret that more and more admin tasks are being added to collision repair facilities,” Anderson said. “Due to this fact, we, as collision repairers, must find ways to utilize technology to work smarter, not harder, and improve our efficiencies. “We must also find ways to eliminate human disruption so that we can stay on task and not get side-tracked. Claims count is also declining, and we need to utilize technology to counter this.” Recommending that shops reevaluate their staffing, Anderson pointed out that estimators can’t handle the same workload as they could in the past due to the increased admin time needed to research OEM procedures, source parts due to insurance requirements, meet customer service expectations and more. He urged, “We MUST embrace technology to reduce the workload of your staff.” Anderson identified suggestions for reducing this administrative burden. Instead of manually scheduling appointments, shops can use scheduling technology to optimize shop production and consumer demand after hours. Automatic email and text appointment reminders can be sent, and online reservations for rental cars should be used.

He also discussed electronic QC forms and management system interfacing with vendors to import parts invoices instead of manually inputting those invoices. “There are a lot of things we can utilize technology for,” Anderson stressed. “No matter what segment of the industry you’re in, ask yourself what things you can stop doing manually and start utilizing technology to do. Work smarter, not harder.”

views may become the CSI of the future. We are seeing some insurers using online reviews as their CSI, and some OEMs are also considering this.” Talking about business photos on Google, a shop’s website, Facebook and anywhere else it may be published, Anderson said, “Your first picture should be what your business looks like from the street, so a client recognizes your building while driving down the road.

Connected cars will spur innovation and growth among automotive and non-automotive industries alike,” — Mike Anderson Next, Anderson discussed customer service expectations and informed webinar participants that consumers have liquid expectations and no longer compare their experience with a collision repair facility to other automotive services experiences; they are comparing the experience to the ease and relevance of their experience of the best in all industries. Examples he gave were Uber, which provides electronic receipts and Amazon, which is available 24/7. Anderson asked, “Are you using technology to offer your services after hours?” Anderson said more accidents happen on Saturdays than any other day, and 36% of consumers need services outside of normal business hours. “Normally, they want to schedule for an estimate or drop-off, and you have to provide the ability to schedule appointments after hours,” he said. “You absolutely need to do this if you want to tap into that 36%.” Emphasizing the importance of taking advantage of their shop’s Google listing, Anderson explained that most consumers search “best” when they are looking for a type of business, and only businesses with four or more stars get listed under that designation. He explained how that listing can be used to receive texts from potential clients after hours, and he discussed how to obtain reviews and link them to a business’s website. Anderson predicted, “Online re-

“I would discourage you from including pictures of equipment or disassembled cars—this means nothing to consumers—but include photos of your waiting room, happy customers and staff.” Moving on to photo estimating, Anderson acknowledged the contro-

versial views many collision repairers have of this tool, but he pointed out, “Photo estimating is not a perfect solution, but we must start somewhere as a way to interact with the customer outside normal business hours. “There’s a difference between settling a claim and a marketing strategy, and claimants like this technology,” he said. “Remember that 36% of people need your services outside of normal business hours, and couples want to make a joint decision when they are both together to discuss alternate transportation, finances and other matters. “Don’t rush to conclusions about photo estimating; there’s a right application for this tool,” Anderson continued. “Offer it as a marketing strategy so customers can reach you after hours,” he said. “Use the photos to triage or schedule work, or utilize them to get a jump start on researching OEM procedures. “You know you can’t write an

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estimate without completely disassembling the vehicle, but this isn’t a black and white area,” Anderson said. “Photo estimating is something the industry needs, but we have to set parameters around it.” Noting that ADAS is also starting to have an impact on the industry, Anderson noted that claims were down by up to 7% last year, and he anticipated that trend continuing. Noting that as claims frequency declines, capture rate is and will continue to be critical, Anderson suggested, “Increasing severity is hiding the loss of car count. Scanning and calibration caused severity to increase, hiding the fact that we have fewer cars coming to our shop doors, so it’s important that we use technology to track the car count, not just income produced. “Lots of sales cover lots of sins,” Anderson said. “When sales are up and shops are making money, we quit paying attention to things that make us successful, like capture rate. Are you following up with potential customers?” Anderson urged shops to build best practices now, and onitor where work comes from monthly. “Referral source reports from many management systems allow you to track where your work is coming from, but the attention is in the detail!” Anderson said. “Make sure you note who referred your customers, and if they are a DRP client, you want to know if they were referred by the insurer or were already planning to use your shop and just happen to be a policyholder for an insurance company with which you have a DRP relationship,” he said. “I want you to thrive, and not just survive!” Anderson reiterated. “In order to do that, you have to provide details that allow you to proactively assess what’s going on,” he said. Artificial intelligence (AI) is a common topic people discuss, and Anderson explored how AI will impact collision repair centers. According to CCC Information Services, the company has been working with deep learning (DL) and machine learning (ML) technologies since 2011, and the algorithms it has in place show that, today, it is 90% accurate in predicting when an insurer will declare

a car a total loss through analysis of a photo of the damaged vehicle. “What does this mean to the collision repair professional?” Anderson pondered. “As AI is implemented into our industry, total losses will be identified before the vehicle is sent to a shop. This eliminates the vehicle storage profit center which is huge for some shops, therefore, they’ll have to replace that lost revenue. “On the positive side, shops with DRP agreements will be able to focus on repairable vehicles,” Anderson said. Regarding total losses, Anderson offered a “golden nugget.” “Make sure to ask customers if they want you to delete their personal data from the vehicle before sending it to the salvage yard,” he said. “Customers store cell phone data, garage door codes, GPS information and more in their vehicles, and removing that information benefits the consumer and the insurer. Shops need to offer it,” he said. Anderson then explained that the days of pen and paper QC forms are gone, and electronic QC procedures are imperative, pointing out that the electronic version records a date, time, and in some cases, a geotag. He explored some of the challenges related to electronic checklists, such as data storage, setting standards and holding staff accountable for accurate completion. The benefits of utilizing electronic QC checklists were also addressed. According to Anderson, “Collision repairers today absolutely must use electronic QC checklists. They create verifiable trust between all parties, including the OEM, insurer and consumer, and it allows the shop to hold everyone to the same standards.” Anderson then explored the opportunities that exist with test drives and the importance of ensuring the shop has a strong WiFi signal that can handle all employees accessing it at the same time. Examining the topic of telematics and connected vehicles, Anderson observed that the age of connected cars began with GM’s OnStar in 1996, and as of 2016, there were 250 companies with over $38.7 billion in funding in that space. “Today, it is coming at us at

lightning speed,” Anderson said. “Connected cars will spur innovation and growth among automotive and non-automotive industries alike,” he said. “For companies willing to invest in the automotive industry of the future, payback could be huge. In 2020, analysts project the global connected car industry to be a $141 billion market.” Anderson urged collision repairers to acquire training now, as he discussed generational preferences related to connected cars and the importance of checking owner’s manuals to learn if a vehicle needs to be placed into service mode prior to disassembly to prevent an alert being sent to the vehicle owner while the car is in the shop. Talking about voice activated search and the frequency with which this is utilized while driving, Anderson pointed out, “The vehicle will be and may already be watching you! As more cars are connected to the Internet in the future, we’ll see more cameras, and it’s important to understand that anything we say or do around the vehicle can actually be recorded on

those cameras.” As the February CIECAst came to a conclusion, Anderson shared his wish list. He’d like to see a genius feature for parts and OEM research where the system is more integrated and makes recommendations, in addition to a search feature to identify one-time use parts and AI to determine best scheduling practices. “The collision repair industry hasn’t scratched 10% of its potential when it comes to utilizing technology,” Anderson said, quoting an “old country song” to add, “We have a long way to go and a short time to get there!” CIECA’s webinars are eligible for AMi credit toward an industry-recognized professional designation and specialty degree. The next CIECAcast is scheduled for Tuesday, March 17 at 11 a.m. CST and will feature Michael Ortega, Senior Director of Application Development at IAA. The webinar is entitled “The Key to Collaboration: Combining Technology and Communication.” For more information on CIECA and its webinars, visit cieca.com.

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Midwest Associations with Chasidy Rae Sisk

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@gmail.com.

Driving the Future at WIN’s 2020 Educational Conference, Now Postponed

Northwest Associations

The Women’s Industry Network Educational sessions focus on (WIN®) was to host its 2020 Edu- industry issues and professional dewith Chasidy Rae Sisk cational Conference, “Driving the velopment, while networking opporFuture,” May 3 through May 5 at the tunities provide a chance for industry Hyatt Regency in Newport Beach, professionals to get to know one another. CA. The event has been postponed. This year’s event was to feature several changes to the normal format, beginning with awith returnEd to WIN’s forAttanasio mer tradition of starting the conference on a Sunday. “We are excited to return to a Sunday evening start to the conference, when we will kick oﬀ with an engaging networking welcome recepwith Ed Attanasio WIN also raises funds for scholtion,” said conference organizer Wendy Rogers. “Look for more changes in arships at the annual Scholarship this year’s agenda, including the 2020 Walk Fundraiser, and the association WIN celebration dinner on Tuesday will honor WIN scholarship recipients and the 2020 Most Inﬂuential Women evening.” WIN’s conference provides two (MIWs) during the WIN Celebration Attanasio Dinner. and a half days’with worth Ed of education, On May 3, two WIN member networking and celebration for colorientation sessions will be available lision repair industry professionals.

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for ﬁrst-time attendees, as well as returning attendees, before the conference welcome reception begins at 5 p.m. During the reception, WIN will introduce its 2020 scholarship winners and MIWs. WIN will also partner with NABC to donate two Recycled Rides® vehicles to deserving individuals. The May 4 and 5 agendas are ﬁlled with speaker presentations, networking opportunities and breakout sessions. The main stage presenter May 4 will be Neeta Bhushan, who will teach attendees to “Step Into Your Greatness.” Next, attendees will participate in an Hour of Giving during WIN’s charity networking event. After lunch, Mina Starsiak Hawk, star of HGTV’s Good Bones and co-founder of Two Chicks and a

Hammer, will share her experiences living “Life in the Fast Lane.” Each afternoon, attendees will choose a breakout session to attend. This year, there will be three options. Tracy Darrington will explain how to “Make Sure Your Personal Brand is a WINner,” while Marcy Tieger and Jim Webber address planning for the unexpected in “When Disaster Strikes: Is Social Media Your Friend or Foe?” Beth Rutter and Amber Ritter will discuss a diﬀerent way of looking at the industry’s tech shortage during “What Tech Shortage?? A New Approach to an Old Problem.” The morning of May 5, Kim Hazelbaker of the Highway Loss Data Institute will present “Changes in Auto Safety Technology: Are We There Yet?” The second guest speaker of the ﬁnal day of the conference will be

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Fred Gruner-Nvidia, who will discuss “The Seismic Shift—A.I. in the 4th Industrial Revolution.” After a question-and-answer session with Hazelbaker and Nvidia, attendees will take their second breakout session. The 2020 Scholarship Walk will be held the afternoon of May 4 before the evening reception. After the educational seminars end on Tuesday, attendees will take a break to prepare for the WIN celebration dinner, formerly the MIW gala. Each year, WIN uses this opportunity to recognize the winners of their annual scholarships as well as the recipients of the Most Influential Women awards. MIWs are women whose leadership, vision and commitment to excellence have enriched the collision repair industry. Attendees will celebrate with music and dancing after dinner and the awards ceremony. More details about the 2020 WIN conference will be available online as they are confirmed. Registered attendees will receive “Countdown to Conference” emails

every other week, providing more details about the speakers, seminars and other events during the conference. A week before the conference, instructions for downloading the conference app will be sent to attendees, which will include the full agenda as well as a list of other conference attendees.

that there were so many phenomenal ladies!” Mello said. “The welcoming openness to engage has yielded many professional opportunities and lifelong friendships. “Each year we unite by bringing our talents and insights for the good of the industry,” Mello continued. “I encourage you not to miss the oppor-

“Each year we unite by bringing our talents and insights for the good of the industry,” — Kathy Mello Kathy Mello, WIN board member and former MIW honoree, shared her thoughts on the conference. “As a founding member of WIN, I have had the opportunity to attend each of the conferences,” Mello said. “They have all been stellar in content and networking, and have provided growth and improvement to the collision industry. I have seen it evolve from the first conference with no budget and just a handful of volunteers to a well-organized, multifaceted event, which is well worth the reasonable fee. “I knew that there were women through the nation and beyond in this industry, yet I never dreamed

tunity. I hope that you are able to join us for this 2020 event. You deserve it and are sure to prosper from it!” According to WIN’s website, The WIN Educational Conference is a unique opportunity to meet and network with women in the collision industry, and a place where relationships are built that will enrich lives on a business and a personal level. “I look forward to the [conference each year] and have met some of my most treasured mentors and friends here,” said Vice Chair Jenny Anderson. “There is truly a place for everyone at WIN. It’s about inclusivity, support, leadership and educa-

tion. I can’t say enough great things about my experience at conference! I hope to continue contributing to this same experience for other women in the future.” WIN reminds attendees to bring business cards for networking purposes, and prior year attendees should also pack their WIN commemorative pins. WIN also encourages members to get involved with the association by joining a committee. Early bird registration, before March 31, is available for just $300 for members. After March 31, members will pay $475. Non-members will pay $700 to attend the 2020 WIN Educational Conference, but member prices are available for those who join the association first; annual membership to WIN costs $95. For more information about WIN and the latest news about the 2020 WIN Educational Conference, visit womensindustrynetwork.com. www.autobodynews.com

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with Stacey Phillips

Tips for Busy Body Shops 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.

Uber for Business Offers Collision Shops Alternative for Customer Transportation When a vehicle is dropped off at a Rather than using the personal duction in risk. body shop for repair, transporting a Uber app, Bauman encourages col- “If you were going to pull a CSR customer to his or her desired location lision repair facilities to sign up for or technician off the shop floor to get withMany Stacey Phillips can often be an issue. shops rely Uber for Business, which is the same a customer to work, you lost all of on loaner cars, rental cars and shuttles. price and offers the same functional- that person’s productivity when they However, Jim Bauman, auto- ity as the regular Uber app. were giving a person a ride,” said motive partnerships lead at Uber, said these options aren’t always conducive “It’s a great way for shop owners to take care of their to every situation. customers and keep their costs in check,” — Jim Bauman “We’ve talked to a lot of body shops—both with independents Victoriaand Antonelli MSOs—as well as insurance com- “There is no contract, no mini- Bauman. “Instead, that employee can panies, and across the board there mum usage and no premium in terms stay focused on his or her job.” The ride is covered under Uber’s is no one, perfect solution for taking of fee for using a business account,” care of customer mobility,” said Bau- he said. “What it allows a body shop insurance policies in case anything man. “Obviously, rental cars are a big to do is to control who is allowed to happens, which Bauman said reduces part of the collision industry, but they book an Uber ride for a customer and the risk exposure for body shops. don’t solve everywith problem, Ed especially Attanasio gives full transparency and account- “It’s a great way for shop ownif a customer doesn’t have rental cov- ability.” ers to take care of their customers and erage replacement insurance.” Bauman leads Uber for Busi- keep their costs in check,” he said. In situations like these, shop ness’s strategy and partnership for Currently, there are more than owners may ask a customer service the automotive industry, which of- 1,000 car dealerships in the U.S. that representative (CSR) or technician fers mobility solutions for those op- use Uber Central daily. to drive a customer in their person- erating large and small businesses. Uber Vouchers are configurable al or shop-owned vehicle. There are two main Uber for with Gary Ledoux Not only can this impact a CSR’s Business products Bauman recomproductivity, but Bauman said it also mends for body shops: Uber Central and Uber Vouchers. Uber Central uses dispatch software to book rides for customers. Riders aren’t Genuine Mitsubishi required to have the Uber with Stacey Phillips Replacement Crash app on their phones and all Parts are close at hand of the communication occurs from the following via text. quality dealerships: “If you know how to use the Uber app for yourself, you’re going to learn how ARIZONA Uber Central, one of the Uber for Business products, uses to use Uber Central with dispatch software to with book ridesMike for customers. Credit: Uber Anderson Mark Mitsubishi no problem,” said Bauman. PHOENIX increases the risk exposure for a body “It’s a very similar flow, but it’s a disshop. patching software so you can set up 623-842-8908 Recognizing the success car deal- rides for customers to get them from (623) 842-8915 Fax erships are having using Uber for Busi- point A to point B.” M-F 7:30-6:00 / Sat 8:00-2:00 ness’s tools to address these challenges, There are additional benefits glendaleparts@markmitsu.com Uber began reaching out to body shops to using Uber Central that Bauman as well. said business owners don’t have acTEXAS Since launching its ride-sharing cess to with the regular app. Don Herring platform in the U.S. 11 years ago, For example, employees can keep Mitsubishi - Irving Uber has expanded internationally track of the repair number, so they and instituted a variety of programs in know the trip associated with each job. 866-375-4074 the 66 countries in which it operates. Bauman said the company built (469) 443-1872 Fax In 2014, the company established easy-to-use tools that have an imme#3 Volume Parts Dept. in the Uber for Business, which specifically diate, positive impact on Customer Nation. $600,000 Inventory. focuses on the needs of business own- Satisfaction Index (CSI) scores, cycle time, reduction in costs and reers.

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coupons shops can hand out to customers, who can then decide when they want to ride. The business sets the parameters of the voucher and can decide how much of a ride will be covered or where it can go. Bauman said the vouchers help businesses enhance customer service and drive repeat business, as well as remove the customer’s burden of driving, navigating and parking. “These are going to be great products for collision centers as they offer a really seamless experience for customers,” said Bauman. “We want to make sure the collision industry knows we are here for them with solutions that solve their problems.” For information on how to establish an Uber for Business account, visit this link https://www.uber. com/us/en/business/info/automotive -solutions/ or contact an automotive account executive at 415-910-9384.

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42 APRIL 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / APRIL 2020 AUTOBODY NEWS 43

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Tractable Secures $25M in Funding, CEO Shares Grand Vision for Collision Repair Industry by Chasidy Rae Sisk

Tractable, an A.I. photo estimating company, announced Feb. 27 it raised $25 million to expand into new markets and enhance research and development initiatives on its software. The investment was led by Georgian Partners, with participation from existing investors, including Insight Partners and Ignition Partners. Combined with the $30 million previously raised, Tractable has raised $55 million. Tractable currently operates in nine countries but plans to use the recently secured funds to expand into new markets. It also plans to use the funds to invest in research and development to ensure its software is the best available A.I. on the market. “Our mission at Tractable is to bring A.I. breakthroughs to real-world problems and by doing so, make a positive diff erence to people’s lives,” said Tractable founder and CEO Alex Dalyac. “We’re achieving that every day, as our technology means people across the world are recovering their livelihoods more quickly after an accident. “This new investment from Georgian Partners, who have a standout track record in investing in software companies, shows informed investors believe we will scale our success even further and reach new markets, new clients and new areas to operate in.” Tractable is particularly interested in obtaining new clients from the collision repair industry. “A.I. can benefi t the collision repair industry throughout the life of the claim in a variety of ways,” said Ahmed Zifzaf, marketing lead for Tractable. “For starters, it expedites the process and allows for early parts ordering. This technology will be very useful as it pertains to a lot of elements in the collision repair lifecycle.” Julie Kheyfets, head of North American business for Tractable, explained a few ways the company’s software will benefi t collision repair facilities. “When triaging vehicles, repairers can use A.I. to quickly determine if the vehicle is repairable or if it’s a total loss,” Kheyfets said. “They can

use the software to create estimates which, in addition to saving time, will help drive consistency and accuracy in the shop’s estimates. “Our software can also instantly audit an estimate to ensure it’s in line with insurer standards. The A.I. processes much of the shop’s operational paperwork and can save shops time and eff ort.”

Since Tractable announced its A.I. off ering for collision repairers at SEMA 2019, Kheyfets said, it has received a signifi cant amount of demand from the collision repair industry, including from repairers. “A.I. is new to the collision repair ecosystem, and as with any new technology, some folks are very excited by the potential and value they see, while others are more cautious and will wait for widespread adoption before moving forward,” Kheyfets said, “We’re very excited about how much enthusiasm we’re seeing from shops.” Currently, several major MSOs are testing Tractable’s A.I. technology in hopes of streamlining their operations and reducing their supplement rates. Although Dalyac believes it makes a lot of sense to start with these larger companies, he’s happy the company has received interest from independent collision repair facilities as well, and he’s hopeful the most recent round of funding will help Tractable pursue that level of business more actively. “Much of the marketing around A.I. entering the collision repair ecosystem is centered around insurers, but a lot of shops have asked if A.I. is for them too—the answer is yes!” Dalyac said. “We want every player in the industry, including repairers, to have their own A.I., which they can calibrate to meet the demands of their individual business.” Tractable is also working with

the salvage industry and announced partnerships with LKQ and the Auto Body Parts Association in September 2019. “These partnerships are an exciting step forward for Tractable as we aid accident and disaster recovery with A.I.,” Dalyac said. “Auto appraisal is a key decision-making point throughout the auto claim and fulfi lment process.” Dalyac said a visual A.I. assessment means many necessary decisions can now occur sooner—for example, as soon as the driver submits photos of their car. “With A.I. and these partnerships, every American consumer can now have an unbiased auto appraiser on their phone, in their pocket,” Dalyac said. Dalyac sees Tractable’s collaboration with salvage yards as having “A.I. training potential,” since seeing what happened under the vehicle’s surface will ultimately train the software to predict total losses sooner. “Our vision is for all players in the collision ecosystem to have their

own A.I. from Tractable and be able to calibrate it as needed,” Dalyac said. “We want Tractable to bring value to insurers as well as collision repairers, parts centers, salvage yards and every other segment of the industry.” Dalyac said diff erent kinds of lighting and other conditions can impact the A.I.’s accuracy, and Tractable wants its software to work accurately in all those conditions. “Tractable’s A.I. can pretty much predict all the necessary operations—R&I, repair times, paint—but we want to continue developing its robustness, so we’ll continue to invest in improving the software,” Dalyac said. “We’re also increasing the auxiliary parts it can read so it will be very precise and shops will love it.” One of the biggest challenges Tractable faces is related to the industry’s perception of A.I. “Many people see A.I. technology as futuristic and deeply technical,” Dalyac said. “Shops insist they are in the business of repairing cars and that this advanced technology isn’t really part of their daily operations; howev-

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er, you don’t need to be an A.I. person to test and evaluate A.I. software. You actually need to be able to repair a car to evaluate the software eff ectively.” Noting that many companies releasing A.I. technology are only off ering “smoke and mirrors and a lot of canned visuals,” Dalyac encouraged collision repairers to test Tractable and other A.I. solutions. “You’re in the best position to be able to determine which A.I.s work and which don’t,” Dalyac said. “You can tell if the A.I. is struggling to identify a dent in a photo or if it gets confused by a shadow on the hood. Repairers should test the A.I. and use their expertise to determine if the software yields the correct results.” Tractable invites feedback from shops on the accuracy of its A.I. “Shops’ feedback will help us determine the best way to develop Tractable’s A.I. to the level we want—to a level that benefi ts every segment of the collision repair industry,” Dalyac said. For more information about Tractable and its A.I. software, visit www .tractable.ai.

General Motors’ $20 Billion EV Plan Starts by Abandoning Trump’s Emissions Rollback by Joey Klender, Teslarati

General Motors has announced its plans to begin manufacturing electric vehicles at scale. To make its $20 billion plan a reality, it has to do one thing: Acknowledge that its alignment with President Donald Trump’s emissions rollback eff orts is a lost cause. This is because creating electric vehicles and abiding by an environmentally-harming plan go together like oil and water. When GM decided it would follow along with Trump’s auto emissions rollback eff orts and not with California’s Clean Air Act, the state made the decision to halt the purchase of vehicles from the automaker. But on March 4, GM held its fi rst “EV Day,” where it outlined an ambitious plan to dive into and saturate the EV sector, making it evident the company is ready to make a serious push towards the adoption of sustainable vehicles. GM has said to customers for years it will pursue a future that promotes environmental longevity. However, the company’s decision to not abide by California’s environ-

Chevrolet Ends Impala Production by Steven Symes, Insider Car News

We knew it was coming but now that it’s here the news is still tough: the Chevy Impala is offi cially dead.

This is the end of an automotive icon and sadly most people will probably never notice it’s gone. After all, the Chevy Impala has been largely forgotten by today’s car shoppers and that’s why it’s now history. The fi nal Chevrolet Impala to be made was a Premier in Cajun Red Tintcoat. It rolled off the production line Feb. 27. Its death was announced in 2018 along with several other GM cars, but now it has fi nally come to pass. For more than six decades the Impala has been part of the Chevrolet lineup. That’s a long run, so at www.autobodynews.com

least the nameplate was well used and hopefully will be well remembered. Honestly, some will want to forget many of the later iterations of the car since they were embarrassingly bad, although others will remember each generation with fondness.

mental plan seems to show it has not been completely dedicated to ideas that could help the Earth. To make its push toward electric vehicles and sustainability a reality, GM has to begin by abandoning Trump’s emissions rollback eff orts that would lower the average fuel effi ciency requirements of vehicles. If successful, the government’s initiative could result in automakers rolling out gas-guzzling vehicles once more, similar to the rise of SUVs following the death of the EV1, GM’s electric car. The Trump administration’s plan is expected to hike oil consumption in the U.S. by half a billion barrels a day, but it could also reduce automakers regulatory costs by more than $300 billion annually, according to Reuters. This would put more money in the carmaker’s pockets, but more carbon dioxide into the air. While GM is not the only automaker to side with the Trump rollback efforts, it is the only one that is making a big push toward an electric lineup. When asked to comment, the company said, “Regardless of the standards, we are committed to a fu-

We thank Teslarati for reprint permission.

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Taking the Impala’s place at the Detroit-Hamtramck plant will be the new Hummer electric pickup truck. That means as electrifi cation takes over and people keep craving big vehicles, we could see more car casualties.

ture of zero crashes, zero emissions and zero congestion. The pathway to that future includes continually improving fuel economy year-over-year and our commitment to an all-electric future.” This year, GM resurrected the Hummer, but this time around, the vehicle will be all-electric and won’t boast the same devil-may-care fuel consumption that its gas-powered predecessors did. While GM has notable EVs like the Chevy Bolt, the automaker’s plans for the release of an electric lineup of vehicles must still coincide with the company’s larger goals. Volkswagen, Ford, BMW and Honda have all committed to increases in fuel economy year-over-year. GM can become the next automaker to adopt this pledge, but it must fi rst take a strong stance against the administration’s emissions rollback eff orts. If GM cannot do this, then its $20 billion electric vehicle plan may end up being just that—a plan, and very little else.

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46 APRIL 2020 AUTOBODY NEWS / autobodynews.com

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Insurers Win Again—Mostly—in Antitrust Lawsuits Filed by Body Shops by Jim Sams, Claims Journal

A federal appellate court threw out most of the claims by automotive body shops in Indiana, Utah and Mississippi alleging major insurers violated anti-trust laws and engaged in anticompetitive practices by steering policyholders to “approved” shops. The 11th Circuit Court of Appeals found March 6 claims filed by body shops in Indiana and Utah must be dismissed for procedural reasons. The appellate panel also upheld the dismissal of most of the claims filed by the Mississippi body shops, but it revived specific tortious interference claims by two of the Mississippi body shops against Progressive Insurance. The case is Automotive Alignment & Body Service and Alexander Body Shop LLC v. State Farm Mutual Automobile Insurance Co. The panel decision, which was made by three appellate judges, follows last year’s en banc ruling by all seven 11th Circuit judges dismissing separate lawsuits alleging antitrust violations by insurance carriers. That

case was Quality Auto Painting Center of Roselle v. State Farm. Defense attorneys worried a ruling in favor of the body shops in Quality Auto would have allowed plaintiffs to merely cite parallel conduct by competitors as sufficient basis for pleading an antitrust violation.

The decision released March 6 stems from multi-district litigation referred to the federal court for the Middle District of Florida. The body shops claimed State Farm group was the leader of a conspiracy involving several insurance carriers to conduct “market rate surveys” that actually were shams intended to reduce the cost of autobody work. The body shops alleged the carriers refused to pay for necessary repairs and procedures, and required

body shops to use subpar “aftermarket” parts instead of new parts. The carriers also steer their insureds away from noncompliant body shops and toward body shops that comply with their pricing demands and other requirements, the lawsuits alleged. The 11th Circuit said the complaint was very similar to the price-fixing allegations made in the Quality Auto case and must be dismissed for the same reasons. The court found the body shops in Quality Auto did not prove the carriers had colluded on price simply because they used similar practices and each had set the same top rates. The 11th Circuit didn’t address the merit of the complaints filed by the Utah and Indiana body shop’s arguments in the Automotive Alignment case decided March 6. The panel found instead the plaintiffs had not met the deadline to file amended complaints after those suits were dismissed by the district court. The Mississippi plaintiffs did amend their complaints on time, but the 11th Circuit dismissed most of the complaints for the same reasoning stated in Quality Auto.

“We have already held that this allegation of ‘price leadership’—‘following the example set by a competitor, without agreeing to do so in advance’—is insufficient to establish the existence of an agreement,” the court said. On the other hand, the panel said Autoworks Collision Specialist and Walkers Collision Center had adequately played their claims against Progressive Insurance. Each body shop claimed it had lost one customer because Progressive misled customers by telling them Progressive would guarantee the repair work if they used Progressive’s preferred shops, leading those customers to presume their shops would not guarantee their work. The court said the body shops stated a plausible allegation that Progressive had conspired to harm them with malicious intent and without justifiable cause. The 11th Circuit vacated the district court’s decision to vacate those specific complaints and remanded the case for further proceedings. We thank Claims Journal for reprint permission.

Toyota Fuel Pump Recall Expanded to Nearly 2 Million Vehicles by David A. Wood, Car Complaints

A Toyota fuel pump recall is expanded to include nearly 2 million vehicles in the U.S. and Canada, an expansion of a fuel pump recall issued in January.

About 1.8 million of these vehicles are recalled in the U.S. and more than 158,000 are recalled in Canada. The fuel pumps can fail and cause the engines to run rough, stall and fail to restart. Affected vehicles include: - 2013-2015 Lexus LS 460 - 2013-2014 Lexus GS 350 - 2014 Toyota FJ Cruiser - 2014 Lexus IS-F - 2014-2015 Toyota 4Runner - 2014-2015 Toyota Land Cruiser - 2014-2015 Lexus GX 460 - 2014-2015 Lexus IS 350 - 2014-2015 Lexus LX 570 - 2015 Lexus NX 200t

- 2015 Lexus RC 350 - 2017 Lexus IS 200t - 2015 Lexus RC 200t - 2017-2019 Toyota Sienna - 2017-2019 Lexus RX 350 - 2018 Lexus GS 300 - 2018-2019 Toyota Avalon - 2018-2019 Toyota Camry - 2018-2019 Toyota Corolla - 2018-2019 Toyota Highlander - 2018-2019 Toyota Sequoia - 2018-2019 Toyota Tacoma - 2018-2019 Toyota Tundra - 2018-2019 Lexus ES 350 - 2018-2019 Lexus GS 350 - 2018-2019 Lexus IS 300 - 2018-2019 Lexus IS 350 - 2018-2019 Lexus LC 500 - 2018-2019 Lexus LC 500h - 2018-2019 Lexus LS 500 - 2018-2019 Lexus LS 500h - 2018-2019 Lexus RC 300 - 2018-2019 Lexus RC 350 - 2018-2019 Lexus RX 350L The Toyota fuel pump recall involves low-pressure pumps manufactured by Denso and located inside the fuel tanks. The Denso fuel pump has an impeller that absorbs too much fuel and deforms, causing the impeller

to make contact with the fuel pump body. A driver will notice warning lights and messages, and the engine will run rough, stall and won’t restart. Toyota said in January most of the reports indicated vehicles typically stalled at speeds of less than 20 mph.

According to the automaker, 63 field reports said the fuel pumps failed while driving less than 20 mph and three reports said the vehicles were moving above 20 mph. In addition, Toyota told the National Highway Traffic Safety Administration the fuel pumps failed primarily in hotter climates. When the automaker announced the January recall, hybrid vehicle

owners were told a separate fuel pump customer service program would eventually be offered. Toyota says the hybrid vehicles are equipped with the defective Denso fuel pumps, but those vehicles enter a failsafe mode if the pumps fail. Toyota said this allegedly removes a safety risk associated with pump failures in non-hybrid vehicles. Following the January Toyota fuel pump recall, the automaker was served a class action lawsuit that alleges the vehicles have lost value. Additionally, the lawsuit alleges the Toyota fuel pump recall failed to include all 2018-2019 vehicles equipped with defective Denso fuel pumps that begin with part numbers 23220 or 23221. Toyota and Lexus owners will be contacted by May and dealers will replace the Denso fuel pumps with allegedly improved pumps. Customers affected by the Toyota fuel pump recall may call 800331-4331 and Lexus owners may call 800-255-3987. We thank Car Complaints for reprint permission.

48 APRIL 2020 AUTOBODY NEWS / autobodynews.com

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Automating Claims for Drivers & Insurers by Bill Brower, Property Casualty 360

At this point in time, it has become accepted that automation is either on its way to your industry or has already arrived. For many auto insurers, automation has not only arrived but has transformed the overall claims process for the better. It’s a win-win situation for both insurers and customers, with automation helping insurers do their jobs more efficiently and providing more convenience for their customers. Insurers who have effectively implemented automation into the claims process can possibly have huge benefits across the board, especially when it comes to reducing operating costs and increasing customer satisfaction. So, accepting that automation is here to stay, it’s important to examine the most effective ways for insurers to implement it if they aren’t doing so already. Balancing Automation & Empathy However, automation is not some-

thing everyone embraces. The key for insurers is to understand this fear and balance it with empathy. Insurers that understand how to do that effectively will be the most successful in implementing automation into their claims. While consumers, especially millennials and Gen Z, increasingly demand self-service and digital access, there are times their biggest desire is actually human touch. Our Future of Claims study has shown that throughout the claims process, customers want one-on-one human interaction easily accessible when they need it. In particular, to help consumers overcome these fear-based barriers, insurers should look to provide access to a live representative during important preclaim phases. More than half of consumers (52%) say they believe interaction with a live person is critical during the process of submitting the first notice of loss (FNOL) because they complain that self-service FNOL processes ask too many questions,

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whereas only 21% think a live person is helpful during the estimate submission phase. Talking to an actual person on the phone enables the representative to express empathy, which creates a closer customer touch and has proven to positively impact customer satisfaction. Automation can help insurers deliver this

the claim payment and at your adjusters’ fingertips to ensure adjusters are well equipped for a meaningful and productive human touch where appropriate. This is possible today if an insurer integrates a data prefill solution early into the claims process. As insurers continue to effectively integrate more data prefill solutions into the claims process, it makes the self-service option as easy and painless as possible for customers and enables the insurer to further expedite the claims through automation. Customers want to provide their insurer with all of the necessary details about their car accident in order to Despite the benefits of automating claims, not everyone help ensure that their claim embraces this change. Insurers must learn to balance empathy against the fear of using new technology. is accurate. And as a result Credit: Shutterstock of data prefill solutions, this human interaction identifying when entire process is able to be expedited that appropriate time is in the claims from the FNOL because the carriers are able to electronically confirm process. Let me give you an example of each claimant’s information and fowhen customers prefer automation cus any necessary conversations on as it can conveniently simplify their additional details needed to accelerclaims. Beyond just efficiency in the ate the claim. As a result, automating claims-handling process, thanks to claims both simplifies and speeds automation, insurers today have an up the entire process and makes it opportunity to pay claims faster than a smoother experience for both the insurer and the customer. ever before. Setting the pace in 2016, All- When it comes to auto insurstate formed a partnership with Mas- ance claims automation, we are tercard to create an instant payment still relatively early in the process method called QuickCard Pay. In or- in terms of what’s possible given der to participate in QuickCard Pay, how cars and even traffic signals are all claimants needed was a debit becoming increasingly connected. card and an email address. Accord- However, early indicators show that ing to Allstate Chief Claims Officer automation can be increasingly benKen Rosen, “QuickCard Pay gave eficial to both insurers and consumclaimants an immediate and secure ers. Automation is not something the payment method that helped deliver consumer should be afraid of, and if on Allstate’s promise of a fast, fair insurers can ease their concerns by and compassionate claims experi- coupling it with empathy and guidence.” As a result, Allstate’s solution ance at the right time during the is currently one of the fastest claims claims process, it can lead to enorpayment methods in the property mous benefits. and casualty industry that eclipsed Claims automation is no longer their previous industry-leading ser- the future, the journey has already vice, Fast Mobile e-Payment, which begun, and it is having an immenseproduced same-day payment with ly positive impact on the industry. just an email address or mobile The question then becomes, how phone number. can insurers continue to evolve their claims automation capabilities Capturing the Details alongside connected cars and cars of The key to striking a balance is hav- the future. ing data integrated within the claims We thank Property Casualty 360 workflow to automate steps such as for reprint permission. autobodynews.com / APRIL 2020 AUTOBODY NEWS 49

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CARSTAR Network is Giving Away Free Repairs North America’s largest premier network of independently owned and operated collision repair facilities, CARSTAR, gave away free repairs in February. CARSTAR locations across the U.S. and Canada were surprising customers at the time of their vehicle return by footing the bill, to celebrate #FREERepairFebruary. These customers, who are paying for their repairs out of pocket, will be receiving a premier vehicle repair at no cost to them. “We take pride in supporting our community and give back to several non-profit organizations,” says Fred Haberl, general manager, CARSTAR Autobody Resurrection.

Credit: CARSTAR

“Gifting a customer with a free repair is just as rewarding as those larger gestures, because we get to see the surprise on our customers’ faces,” Haberl said. “Sometimes, it

“We met our Free Repair February winners a few years ago when their daughter was sideswiped by a drunk driver, causing her to sustain some injuries,” said Luigi Scola, owner, CARSTAR Scola’s Collision Center. “This is the circumstance we met the family and ever since then we have always wanted to go above and

is just that little help that goes a long way and we were happy to give that gift to Mr. Paholski.”

beyond for them,” he said. “Thankfully, this out-of-pocket repair was not the product of an accident, but we were still thrilled to surprise them by paying for it.” One of the founding pillars of CARSTAR has always been to give back to the communities the organization works and lives in. With independently owned and operated collision repair facilities spanning across North America, CARSTAR franchise partners have helped many people beyond their collision repair needs. “From raising funds and awareness for cystic fibrosis organizations to refurbishing cars and donating to those in need, our CARSTAR family is eager to help their community,” said Dean Fisher, president of CARSTAR. “It is moving to see the network come together, from British Columbia to Florida, for the mutual cause of spreading some good in their communities and thanking our customers.”

Participating CARSTAR locations who awarded a free repair in their facility this February included: • CARSTAR Alan Conner Collision Center • CARSTAR Autobody Resurrection • CARSTAR Barrhaven • CARSTAR Champion • CARSTAR Collingwood • CARSTAR Concord • CARSTAR Don & Ron’s Auto Body Repair • CARSTAR Gapsch • CARSTAR High River • CARSTAR La Habra Collision & Glass Center • CARSTAR Mansfield • CARSTAR Maryville • CARSTAR Mount Forest • CARSTAR Quality Assured Norgate • CARSTAR Scola • CARSTAR Sydney

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