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Threat of Lawsuit Leads to Postponement of Latest CIC Parts Presentation by John Yoswick Special to Autobody News
Just hours before industry trainer Toby Chess was to make another presentation about non-OEM bumper and structural parts at the Collision Industry Conference (CIC) in Atlanta on April 15, Chess said he was threatened with a lawsuit if he did so. He declined to reveal who threatened the legal action but said, because he had not had a chance to consult with an attorney, he chose to forego making his presentation at the meeting. In presentations at the previous two CIC meetings in November and January, Chess showed potential problems with a number of non-OEM bumper parts, including apparent significant differences in the material and structure of the parts. That has
led at least four insurers to pull back from the use of such parts; it has also led parts suppliers to develop improved tracking and recall programs for the parts, and to the launch of several testing and certification programs for such parts. Chess was clearly frustrated by the threat of legal action against him, saying he never portrayed the demonstrations as scientific research but merely as a way to “bring light” to a potential problem. “I was asked last month why I did this,” Chess said. “I said that I don’t work for insurance companies, I don’t work for parts companies, I don’t work for body shops. I work for the consumer. I’m a trainer. I teach. So I have no vested stake in this. I thought it was necessary to say these things. I think we’ve demonstrated to the See Threat of Lawsuit, Page 4
SCRS Forum Brings State Shop Associations Together to Discuss Efforts and Share Ideas by John Yoswick Special to Autobody News
Collision repair associations leaders from around the country met in Secaucus, New Jersey, in March to share ideas and discuss state legislative or regulatory successes and efforts. The 2010 East Coast Resolution Forum, an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Janet Chaney
Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASP-New Jersey’s NORTHEAST 2010 trade show. Here’s a round-up of some of the news and discussion from the meeting: Iowa: Janet Chaney, of the Iowa Collision Repair Association, reported on the progress of a proposed state law the group supports that would in essence allow Iowa shops to transfer the expense of sales tax on paint materials they purchase to insurers or customers. Chaney said currently shops pay the sales tax on such purchases but are not reimbursed for it by insurers.
See SCRS Forum, Page 6
VOL. 28 ISSUE 5 MAY 2010
GM Pays Back Gov’t Loans Years Early; Chrysler Posts Operating Profit in Q1
In what can only be called a remarkable turnaround since last year’s bankruptcy procedings, both GM and Chrylser have rewarded the faith of “bailout” proponents with strong first quarter results reflecting better vehicle sales buoyed by a thawing economy and improved consumer spending. General Motors announced it has repaid loans from the U.S. government, five years ahead of schedule. GM completed the repayment of its loans from the U.S. and Canadian governments by paying the outstanding balances of $4.7 billion and $1.1 billion respectively. In addition, Chrysler announced an operating profit for the first quarter of 2010, so may soon be in a position to start to repay its government loans as well. Chrysler posted a $143-million operating profit in the first quarter and was on track to at least break even this
year on an operating basis with a stronger cash position. Chrysler owes the U.S. government nearly $7 billion in loans. Payments on principal are not due until 2011 and full repayment is not expected until 2014. The administration wasted no time in taking credit where it is due, saying that not only did the $85 billion auto industry bailout work, it saved millions of jobs. President Barack Obama “took a lot of heat” to keep GM alive, said Vice President Joe Biden. “And this has even exceeded our expectations.” White House press secretary Robert Gibbs led off his press briefing with the GM and Chrysler news, saying it justifies President Obama's “very difficult and unpopular decision” to loan them money last year. The loans were designed to assist “a structured See Bailout Bonus, Page 3
CONTENT HIGHLIGHTS
• CIC Presentation Postponed
• Plano’s Ray Huffines Chevrolet Wins on Margins • Houston Auto Body Association • It’s a Safety Marketplace • Dallas Forcing Body Shop Owners Out • TIAA Fishing Tournament and Meeting
Toyota Fined, Awaits Class Action Still A Mustang, in name only, part 2 Gonzo’s Toolbox: “Slick Talkin’ Mechanic”
Change Service Requested
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