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Houston Auto Body Association, SCRS Association of the Year, Gathers at State Capitol in Austin to Support Senate Bill 1300 pair industry in Texas contact their Senators in support of SB 1300, which was up for committee hearing on April 12. The Texas Senate Business and Commerce committee voted unanimously to pass SB 1300 on that date, which will require more discloJim Quinten, Automotive Parts & Services Association; George Perdue, Bear Creek Collision Specialist; Larry Cernosek, Deer Park Paint & Body; sure from insurers Mike Riner, Riner's Paint and Body Shop; Trey Perdue, Bear Creek; David about their Direct reWalla, Walla Company; James Brown, Hanley Bros. Certified Collision pair Program policies and HABA President, Don Ward, A-1 Auto & Collision; and Chris Single- and requirements. ton, Goodson Collision Center. HABA is the SCRS Association of the Year. James Brown, The Houston Auto Body Association HABA’s President, and many others asked that members of the collision rewith the HABAmet inAustinApril 12 at
SCRS Industry Achievement Awards: Winners Include Texas' Houston Auto Body Association On March 16, 2011 the Society of Collision Repair Specialists (SCRS) held its Annual Awards Banquet at the Crowne Plaza Meadowlands in Secaucus, New Jersey. As always, the highlight of the event was the presentation of the SCRS Industry Awards, through which the Society recognizes those that demonstrate outstanding service and achievement within the collision repair industry. “Two Hawaiian words characterize these awards and their recipients,”
explained Dale Matsumoto, chairman of the SCRS Awards Committee. “The first, ‘aloha,’ is familiar to us as a greeting and farewell; but it also can be used to mean the giving of one’s self-a lifestyle encompassing a life of giving, sharing, caring and love.” “The second, ‘kina’ole,” means flawless-as in doing the right thing for the right reason with the right feeling. Most individuals can, and will, do the rights things; but it is the deep feelings See SCRS Achievement Awards, Page 28
7am to show support for this bill. The Texas Department of Insurance is in full support of this bill as well, according to Brown. The Committee Substitute version of the bill was passed out of committee, it now heads to the Local & Consent calendar and then it will go to the House Insurance Committee. “I would also like to extend a special thanks to all those who made phone calls and those who came to Austin in show of support for this Bill. I especially want to thank Larry Cernosek personally for the all the time he spends in Austin on behalf of the HABA and the Collision Industry as a whole,” said Brown. To view the full text of this bill search ‘SB 1300’ at www.autobodynews.com.
VOL. 29 ISSUE 5 MAY 2011
TX Insurance Advisory Bill Approved in Committee
The Texas Senate voted to approve Senate Bill 944 on March 24. The bill was introduced by Texas Senator Mike Jackson before being transferred to the Committee on Business and Commerce. The bill now moves to the House for approval. The bill would create an advisory committee for the Texas Insurance Commissioner that would make recommendations regarding automobile insurance claims. The full text of the engrossed (the official copy of a bill passed by the Senate and certified by the Secretary of the Senate bill) follows: “2011 TX S 944 AUTHOR: Jackson M VERSION: Engrossed See 944 Committee, Page 11
PAINT FOCUS ARTICLES in this issue...
Painting With Waterborne at John Force Racing . . . . . . . . . . . . .p. 26 Getting OSHA-Compliant on Plans, Protection, Painting . . . . . . .p. 34 Revisiting Paint by Numbers: Refinish Data . . . . . . . . . . . . . . . . .p. 38 New Jersey Shop Embraces PPG’s Envirobase® . . . . . . . . . . . . .p. 41
REGIONAL ARTICLES in this issue...
HABA Goes to Capitol for SB 1300 . . . . . . . . . . . . . . . . . . . . . . . . .p. 1
HABA Wins SCRS Association of the Year . . . . . . . . . . . . . . . . . .p. 1
NWLCRA Hosts Supply Company at April Meeting . . . . . . . . . . .p. 4
TIAA Fishing Tourney Coming in May . . . . . . . . . . . . . . . . . . . . . .p. 8
Bob English of English Color Passes Away . . . . . . . . . . . . . . . . .p. 10
Gunder Loses Appeal in State Farm Case . . . . . . . . . . . . . . . . . . .p. 16
COLUMNS in this issue...
Yoswick — Effort to Develop Collision Repair Standards Takes
Another Step Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 14
Franklin — Summertime Means Event Time For Body Shops . . .p. 18 Chaney — Three of Largest Auto Recycling Networks Merge . . .p. 20
Gonzo — On the Other Side of the Bookstore Counter . . . . . . . .p. 23
Danalevich — Is Your Parts Supplier Purchasing Policy a
Benefit or an Expense? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 25
Insurance Insider — Insurers Will Continue to Serve “Flavor
of the Day” to Shops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 32
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HONDA OF HOUSTON • Over $1,000,000 Parts Inventory • In State Next Day Shipping w/Quick Local Delivery • 100,000 Parts in Stock • Great Discounts • Trained Experienced Crew Hour: Monday - Friday 7 AM - 9 PM • Saturday 8 AM - 5 PM • Sunday Closed
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COLUMNISTS Attanasio - California Shop Owner Endorses Shop Education and Training . . . . . . . . 30 Attanasio, Chief - Indiana Shop Owner Favors Chief for Quality, Durability & Support . 17 Attanasio, PPG - 32-year-old N.J. Body Shop Embraces PPG’s Envirobase® HP Waterborne Basecoat. . . . . . . . . . . . . . 41 Chaney - Three of Largest Auto Recycling Networks Merge . . . . . . . . . . . . . . . . . 20 Chess - Getting OSHA-Compliant on Plans,
Protection and Painting . . . . . . . . . . . . 34 Danalevich - Is Your Parts Supplier Purchasing Policy a Benefit or an Expense? . . . . . . . 25 Franklin - Summertime Should Mean Event Time For Body Shops. . . . . . . . . . . . . . 18 Gonzo - A Day to Reflect—On the Other Side of the Bookstore Counter . . . . . . . 23 Horn - Revisiting Paint by Numbers: A Deep Dive into Refinish Data . . . . . . . . . . . . . 38 Insurance Insider - Insurers Will Continue to Serve “Flavor of the Day” to Shops . . . 32 Stoll - Painting with Waterborne at John Force Racing . . . . . . . . . . . . . . . . . . . . 26 Yoswick - Effort to Develop Collision Repair Standards Takes Another Step Forward . 14 NATIONAL AASP-NJ to Hold 7th Annual Golf Outing . 36 AASP-Pennsylvania’s Big E Trade Show Coming in October. . . . . . . . . . . . . . . . 22 Airbiquity to Supply Air-Over-Voice Technology to Onstar . . . . . . . . . . . . . . 22 CA Suspicious Claims Rise . . . . . . . . . . . 24 Collision Hub Launches Repair University. 36 Feds Open Probes of Imprezas and Sorrentos . . . . . . . . . . . . . . . . . . . . . . 29 FL Jury Rules State Farm Driver Owed $3 Million . . . . . . . . . . . . . . . . . . . . . . 25 Ford Expands F-150/Lincoln Recall Due to Airbag Flaws . . . . . . . . . . . . . . . . . . . . 22 Ford Surpasses GM in March Monthly Auto Sales . . . . . . . . . . . . . . . . . . . . . . 36 Ford’s CEO Mulally Says Suppliers Accomodating . . . . . . . . . . . . . . . . . . . 29 Ford’s Electric Focus Will Not Lease Lithium-Ion Batteries . . . . . . . . . . . . . . 22 Full Deliveries From Japanese Suppliers Stalled Until July . . . . . . . . . . . . . . . . . 21 Gas Prices Not Significantly Driving Fuel-Efficient Sales . . . . . . . . . . . . . . . 24 Higher Standard Leads to Coveted Magna Society Award . . . . . . . . . . . . . . . . . . . 43 Honda Extends Production Cuts in North America to May . . . . . . . . . . . . . . . . . . 21 Honda Pushes Natural Gas Civic Alternative to E-Cars . . . . . . . . . . . . . . . . . . . . . . . 29 House Rejects Changes to Bill Banning EPA and Calif. from Regulating Emissions . . 37 Hybrids & Electrics Growth Outpaces General Vehicles . . . . . . . . . . . . . . . . . 36 Hyundai, Kia Running U.S. Plants at Full Speed . . . . . . . . . . . . . . . . . . . . . . 21 Microsoft and Toyota Join Forces in Telematics Venture. . . . . . . . . . . . . . . . 12 NHTSA to Review Claim Corolla Air Bag Failed. . . . . . . . . . . . . . . . . . . . . . . . . . 29 Nissan’s Leaf Experiences A/C Sensor Problem. . . . . . . . . . . . . . . . . . . . . . . . 22 Ryder Acquires Portfolio of B.I.T. Leasing. 43 State Farm to Offer Electronic Parts Ordering to its Own Select Service Shops. . . . . . 43 Toyota Warns Dealers that Inventory Could be Short . . . . . . . . . . . . . . . . . . . . . . . 36 Used Vehicle Pricing Expected to Rise in Quake Aftermath . . . . . . . . . . . . . . . . . 21 Verizon Unveils Hybrid and Alternative-energy Vehicles . . . . . . . . . . . . . . . . . . . . . . . . 22 When it Comes to Cars, Men Buy Looks, Women Seek Practicality . . . . . . . . . . . 20
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Southwest
REGIONAL 85 mph is A-OK on Some Texas Roads . . . 8 9 Accused of Staging Auto Wrecks in Louisiana. . . . . . . . . . . . . . . . . . . . . . . . 4 Bills Filed in Texas Aimed at Increasing Insurance Policy Transparency. . . . . . . . 9 CA Bill Would Give Insurance Commissioner Stronger Penalty Powers . . . . . . . . . . . 40 Collision Repairers in Texas Mourn the Loss of Bob English—Founder, English Color . 10 Fire Destroys Three Vehicles At Tulsa Repair Shop. . . . . . . . . . . . . . . . . . . . . . 6 Florida Autobody Collision Alliance (FACA) Hosts 1st Annual First-Responder Extrication Training. . . . . . . . . . . . . . . . 40 Fontaine to Open New Truck Center in Denton, TX. . . . . . . . . . . . . . . . . . . . . 8 GCIA Meeting Hosts OSHA Safety and Environmental Compliance Management Presentation . . . . . . . . . . . . . . . . . . . . 42 Georgia Collision Association’s Labor Rates Survey . . . . . . . . . . . . . . . . . . . . 31 GM Idles Texas SUV Plant . . . . . . . . . . . . . 9 Gunder’s Loses Appeal to State Farm— Court Rules ‘Even if False,’ Claims are Priviledged. . . . . . . . . . . . . . . . . . . . . . 16 HABA to Host 1st Annual Shop Owners and Managers Appreciation Event . . . . 12 Houston Auto Body Association, SCRS Association of the Year, Gathers at State Capitol in Austin to Support Senate Bill 1300 . . . . . . . . . . . . . . . . . . . . . . . . 1 Man Shot To Death At San Diego, CA, Auto Repair Shop. . . . . . . . . . . . . . . . . . . . . 20 NWLCRA Hosts Supply Company to Talk About New Products . . . . . . . . . . . . . . . 4 OK Insurance Commissioner Revamps Fraud Probes . . . . . . . . . . . . . . . . . . . . 12 SC Offers Amnesty to Drivers with Suspended Licenses . . . . . . . . . . . . . . 43 SCRS and FACA Co-Hosting Seminar on Improving Workshop Efficiency . . . . . . . 4 SCRS Industry Achievement Awards: Winners Include Texas' Houston Auto Body Association. . . . . . . . . . . . . . . . . . 1 Service King Acquires 8 Alamo Body and Paint Locations in San Antonio, TX. . . . . 6 St. Philip’s College in San Antonio Rallies Around Skills-USA-Winning Classmate. . 6 Thousands Cited in El Paso for Phoning When Driving . . . . . . . . . . . . . . . . . . . . . 9 TIAA Annual Port Aransas Fishing Tourney Coming in May . . . . . . . . . . . . . . . . . . . 8 TX Insurance Advisory Bill Approved in Committee. . . . . . . . . . . . . . . . . . . . . . . 1 Women’s Industry Network Conference, San Diego May 1 . . . . . . . . . . . . . . . . . 42
Indexof Advertisers
Contents
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
Autobody News
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
AkzoNobel. . . . . . . . . . . . . . . . . . . . . 7 Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 10 Audi Wholesale Parts Dealers . . . . 42 Autoland Scientech. . . . . . . . . . . . . 23 BMW Wholesale Parts Dealers . . . . 24 Chevyland . . . . . . . . . . . . . . . . . . . . 29 Chief Automotive. . . . . . . . . . . . . . . 11 Classifieds. . . . . . . . . . . . . . . . . . . . 43 Dallas Dodge . . . . . . . . . . . . . . . . . 44 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . . 6 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 13 Garmat USA . . . . . . . . . . . . . . . . . . . 8 Gene Messer Hyundai . . . . . . . . . . 12 Global PDR Solutions . . . . . . . . . . . 21 GM Wholesale Parts Dealers . . . . . 31 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 28 Huffines Hyundai Plano . . . . . . . . . 31 Hyundai Wholesale Parts Dealers . 37 Kia Motors Wholesale Parts Dealers. 19
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 33 Mark’s Casa Mitsubishi. . . . . . . . . . 26 Mattei. . . . . . . . . . . . . . . . . . . . . . . . . 4 Mazda Wholesale Parts Dealers . . . 39 Mercedes-Benz of Oklahoma . . . . . 27 Mike Calvert Toyota. . . . . . . . . . . . . 18 Mitsubishi Wholesale Parts Dealers. 36 MOPAR Wholesale Parts Dealers . . 15 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 Parkway Family Mazda . . . . . . . . . . 20 Quality Stainless Products . . . . . . . 14 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 32 Scoggin-Dickey Buick . . . . . . . . . . 16 Scorpion Coatings . . . . . . . . . . . . . . 9 Suzuki Wholesale Parts Dealers . . . 34 Toyota Wholesale Parts Dealers . . . 42 VIM Tools. . . . . . . . . . . . . . . . . . . . . 40 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 30 Volvo Wholesale Parts Dealers . . . . 39 Young Chevrolet . . . . . . . . . . . . . . . 25
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 3
9 Accused of Staging Auto Wrecks in Louisiana
Nine people have been arrested in the Lafayette, La.-area and accused of staging auto wrecks to collect insurance proceeds, according to reports made by Insurance Journal. State police say the allegations include preparing and submitting fake medical bills, claiming pre-existing damage on vehicles and exaggerating injuries. Troopers say that in some cases, the suspects staged crashes using their own vehicles. One used a vehicle borrowed from a family member, while another used a rented vehicle. The charges range from insurance fraud to felony theft. If convicted of insurance fraud, the maximum penalty is five years in jail and a $5,000 fine. If found guilty of felony theft, the person faces up to five years behind bars and a fine of up to $2,000. All of the suspects were arrested on April 5.
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NWLCRA Hosts Supply Company to Talk About New Products The Northwest Louisiana Collision Repair Association (NWLCRA) held their monthly meeting on April 5 in the Magnolia Room at the Louisiana Technical College in Shreveport, Louisiana. The meeting was hosted by President, Chris Fielder and SecretaryTreasurer, Bill Burnside. The I-CAR schedule was discussed and the “test out” procedure that is now in place. Students have to register at least 2 weeks prior to the testing. If the deadline is missed, you won’t be able to test. The test will be given between 5 to 7 PM and the doors will be locked at 5:00 PM. For more information, contact Bill Burnside or see the I-CAR website. The Skills contest will be held Thursday, April 7, at the Caddo Career & Technology Center. A motion was made and passed for the Northwest Louisiana Collision Repair Association to provide breakfast for the competition.
SCRS and FACA Co-Hosting Seminar on Improving Workshop Efficiency The Society of Collision Repair Specialists (SCRS) and the Florida Autobody Collision Alliance (FACA) will be co-hosting a seminar focused on trimming workshop efficiency led by instructor Steven J. Feltovich. The seminar will take place all day on Thursday, May 19 at the Villas of Grand Cypress in Orlando, FL. Whether you are the owner of an independent business, the middle manager in a dealership, or the president of a multi-location shop network, this class will show you how to improve your profits and productivity. Instructor Steven Feltovich will discuss the origins of “lean” production, running the shop more efficiently and effectively, raising the output quality while lowering operating costs, capturing more market share through continuous improvement, maximizing production and profit opportunities and developing systems and processes
for assuring greater customer loyalty. “This class is thought provoking. It’s about a mindset and culture of making every step count in your business, and at the end of it, it just makes sense. If you consider ways to include your staff in making the job easier, measurably increasing their efficiencies by developing win-win processes, their continued improvement to positively influence your business is assured,” said Gary Wano, Jr., with GW & Son Autobody. Breakfast and lunch will be provided and are included in the attendance fee. After the Seminar, the Florida Auto Collision Alliance (FACA) will be holding an evening reception followed by a statewide meeting and expo on Friday, May 20th at the same location. Registration for both FACA sponsored events can be made by contacting FACA Executive Director Cathy Mills at (904) 994-6516, or cathy@facafl.com.
4 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
The guest speaker for the meeting this month was Charlie Nichols of Nichols Supply. Nichols was the guest of Ken Stephenson with Louisiana Glass & Mirror, Inc. Nichols gave the group a brief history of his time and experience in the Industry. His business is located on Southern Ave. in Shreveport, LA. His business handles all types of products for Industrial, Janitorial, and Office Supplies. He provides same day service on most of his products. Nichols also gave attendees a lesson about microfiber paper and how it is made. It is this procedure that makes microfiber paper the best product when cleaning a surface. Because of this procedure, a microfiber towel can be washed and reused several times. This makes microfiber paper cost effective because it can be washed without getting destroyed in the wash. Nichols Supply also doesn’t include a “fuel charge” for deliveries.
Nichols brought several products for the group to see. The microfiber roll and box of microfiber towels were thick and appeared very durable, according to Burnside, it was easy to see that they could stand up to several washings and reuse. On the chemical side, he brought a product called “ENZ-ITDET”. This product kills bacteria and odors in a number of hard to clean surfaces. He also had a hand cleaner called Red Dawg. He supplies cleaners for glass, stainless steel, and other surfaces. He also mentioned a product called “Peet Sorb” which is better than the typical oil dry. Peet Sorb is the only product that is allowed to be disposed of in landfills, so he said he sees a mandate coming in the future. Nichols is in the process of getting more catalogs ordered, so call at (318) 841-4501 to request a copy. More information can also be found at www.nwlcra.org.
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Fire Destroys Three Vehicles At Tulsa Repair Shop
Fire destroyed three vehicles early April 4 in the parking lot of a repair shop in the 800 block of North Lewis, according to reports made by Oklahoma’s News On 6. The owner of the shop said he and his girlfriend woke up at around 3:30 a.m. to popping sounds. He initially thought it was a power surge and shut off the electricity. That’s when he noticed the cars outside on fire. He called 911 and Tulsa firefighters responded quickly. Two of the vehicles belonged to the shop’s owner but one of the damaged vehicles belonged to a customer. No one was injured. Tulsa Fire investigators are now trying to determine how the fires started.
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St. Philip’s College in San Antonio Rallies Around Skills-USA-Winning Classmate
Students in St. Philip’s College’s Collision Technology Department have created a Student Organization with officers rallying around one of their classmates, Raymond Tolosa, who placed first at the Texas Skills USA competition in Vehicle Refinishing. The organization also recognizes the achievements of Jose Palomo, who is also a St. Philips auto collision student and finished second in the competition. The students are starting a fundraiser for travel expenses for Tolosa to travel to the Skills USA Nationals in Kansas City in June. The students are also creating a letter announcing the formation of the Student Organization and its purpose including the benefit to the industry and students relating to Skills USA accomplishments. St. Philip’s College Auto Collision Repair Program is a 2 year state accredited program that offers students three options in their auto collision industry education and career path, including a 2 year Associates in Applied
Service King Acquires 8 Alamo Body and Paint Locations in San Antonio, TX
Texas-based Service King Collision Repair Centers has agreed to acquire Alamo Body and Paint, a multi-location operator in the San Antonio, Texas area with eight large scale, high volume locations. The addition of the Alamo Body and Paint locations will make Service King the largest independently and employee owned collision repair organization in the U.S. with 42 locations throughout the San Antonio, Dallas, Ft. Worth, and Houston areas. Terms of the agreement were not disclosed. The transaction is expected to be completed by May 1, 2011. Mark Fuller, Alamo Body and Paint’s Co-Owner and President will be joining the Service King Team as Operations Manager. “We are very excited about Alamo Body and Paint joining the Service King Team,” stated Fuller. “For the past twenty-five years, our success has been driven by our unrelenting focus on complete satisfaction and respect for our customers and employees,” added Fuller. Co-Owner Dave Braun will dedicate all his time to Nexsyis Collision, Inc., a developer of a multiple location collision repair management system, where he serves as CEO.
Cathy Bonner, President of Service King said in a recorded message, “Stay tuned for more. We’ve got more expansion and more acquisitions in mind in Texas.” Bonner was hired by Service King in 2010 to lead the company through an ambitious national expansion. At the time she joined the company, Service King revealed its goal of doubling the size of the company within five years. The company had 31 locations at the time. Service King Collision Repair Centers was founded 35 years ago by Eddie Lennox, who now serves as its chairman and CEO. Service King’s Vice President of Central Texas, Brent McKinney, said, “We look forward to adding Alamo’s talented employees and skilled technicians to our base of over 1,000 Service King teammates throughout Texas.” Symphony Advisors, LLC acted as advisors to Alamo Body and Paint throughout the acquisition process. Service King Collision Repair Centers was founded 35 years ago by Owner, Chairman, and CEO, Eddie Lennox. Visit www.serviceking.com.
6 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
Science degree, a Collision Repair Certificate and a Refinishing Certificate.
SPC Skills USA winners Jose Palomo and Raymond Tolosa
Tolosa is a Veteran of the armed forces, and after his service to his country decided to take advantage of the opportunity to go to college. “Mr. Tolosa is a Husband and fa-
ther of 3, he has shown and continues to show tremendous leadership qualities in our lab activities and classroom,” said Chris Beardsall, Faculty for Repair and Manufacturing and Auto Collision Technologies courses at St. Philip’s College. According to Beardsall, Tolosa enjoys working on vehicles and has excelled rapidly in the 9 months he has been attending classes. Tolosa’s Skills USA win was his first attempt in the Refinishing competition, earning for the first time in 6 years St. Philips Colleges representation in the nationals portion of the competition. Aside from the Skills USA competition, Tolosa has also stepped up and was elected the St. Philip’s Auto Collision’s Student Organization’s first Treasurer. “Raymond Tolosa works hard at everything he does and all the faculty and staff are very proud of his achievements thus far,” said Beardsall. More information can be found at www.alamo.edu.
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 7
Fontaine to Open New Truck Center in Denton, TX
Fontaine Modification Company, a provider of truck modification services for OEMs, dealers and fleets throughout North America, will open a new modification service center on May 1 in Denton, Texas. The new service center is dedicated to providing post-production truck modifications directly to Peterbilt dealers. Services available to dealers include APU installation, fleet services for over-the-road and vocational applications, wheelbase changes, all-wheel-drive system installation, rollback body installation and paint services. The Denton facility will also be supported by Fontaine’s existing hub facility in Garland, Texas. Jamil Young, Southern Region general manager for Fontaine, is responsible for the new facility, as well as the company’s Garland and Laredo modification service centers. Fontaine Modification operates seven service centers across the United States. In addition to the Texas locations, the company has facilities in Charlotte, North Carolina, Dublin, Virginia, Springfield, Ohio, and Williamstown, West Virginia.
TIAA Annual Port Aransas Fishing Tourney Coming in May Fish are jumping, biting and ready to be hooked during the annual Texas Independent Automotive Association Scholarship (TIAA) Fishing Tournament here May 20, 2011, which is open to the public. According to Louie Sirianni, TIAA state president, the annual fishing tourney on the coast is great fun and supports a great cause. The entry fee for the tournament is $200 per person and food tickets are $20 each. Harms said those who fish have a super time and usually return to the dock with plenty of fish to take home and fry. He said there are cleaning services available at the nearby marina. “I encourage people to register soon because there may not be space available for those who wait until the last minute,” Harms said. “The automotive industry really benefits and it’s a heck of a good time networking and fishing with one another.” Sponsorship opportunities are also available by calling Harms at (210) 413-2428.
85 mph is A-OK on Some Texas Roads
The speed limit on some highways in Texas may be raised to 85 mph, the highest in the nation, under legislation the Texas House approved April 6, according to reports made by the Texas Statesman. The measure passed on a voice vote was part of a larger transportation bill. It would authorize the Texas Department of Transportation to raise the speed limit on designated lanes or entire stretches of roads after doing engineering and traffic studies, The Dallas Morning News reported March 31. The Senate is considering a similar bill. “They have high-speed roadways in Europe, and there could be some merit in having some of those highways in Texas,” said Rep. Lois Kolkhorst, R-Brenham, who introduced the bill. “Given the right engineering, we should consider it.” Texas has more than 520 miles of interstate highways on which the speed limit is 80 mph. Pushing it to 85 mph would make it the highest speed limit in the US. One such stretch of Interstate 10 “is as nice a road as you can build; it’s flat with a long line of sight, wide lanes and good shoulders,” said Rep. Joe Pickett, D-El Paso. “For people like us who travel that long distance, it
could be good” to raise the limit to 85 mph, he said. Some auto insurers oppose the measure, citing safety concerns. Opponents say that drivers routinely drive about 5 mph above most posted speed limits, which would mean some motorists would be pushing 90 mph. “Obviously, the two things that kill most people on our highways are speed and alcohol. Increasing it to 85, or even 75, will have a dramatic impact on the death and injury rate on those highways where it’s implemented,” said Jerry Johns, a spokesman for the Southwestern Insurance Information Service. He said drivers already exceed 70 mph highway speed limits. “But 85 mph is simply too fast to drive even on a flat road. Any little hitch can cause an accident at that speed. There is still traffic on those roads, and to drive 85 mph is simply ludicrous,” he said. The Transportation Department hasn’t done the speed and safety analyses of roadways the legislation would require, department spokeswoman Kelli Petras said. “It would be awesome to travel it, but you’d have to look at the safety and other factors,” she said.
8 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
The annual TIAA state membership meeting, management session and lunch follows the fishing tournament from 10 a.m. to 1 p.m. on May 21, 2011 at Virginia’s on the Bay in Port Aransas. The meal, served at 11:30 a.m., is free for members in good standing. TIAA has arranged special pricing at two hotels for the fishing tournament and TIAA meeting, but rooms are limited. Prices are good until April 20. Ten Plantation Inn and Suites rooms are available at a rate of $89 per night or $267 May 19 through 22. Call toll free (877) 838-3866 to make a reservation. Information about the hotel is located at http://www.plantationsuites.com. Five Best Western Ocean Villas are available at a rate of $80.99 on May 19 and $107.99 for May 20 or 21. A rate of $258 is available for all three nights. Call (361) 331-1749 to make a reservation. Information about the hotel is located at http://book.bestwestern.com/bestwestern/productInfo.do?propertyCode=44443.
“If you haven’t been to Port Aransas for our fishing tournament, you need to make a point to attend this year,” Sirianni said. “It’s so beautiful out on the water and the fishing is world class.” “The proceeds support scholarships for Texas youth who attend college-level automotive and collision repair programs within the state of Texas,” Sirianni said. Luke Harms, TIAA member and the event organizer, urges everyone to get registered as soon as possible so boat captains can be lined up and contracted for the event. The tournament starts at 6:30 a.m. and ends at 2 p.m. Weigh-in is at 3 p.m. followed by a catered meal and awards ceremony at 4 p.m. First place awards of $500 and second place awards of $250 will be given in the Redfish (2028 inches in length qualify) and Speckled Trout categories. The person with the heaviest Stringer, a combined weight of up to two Redfish and five Speckled Trout, wins $1000.
Bills Filed in Texas Aimed at Increasing Insurance Policy Transparency
Two pieces of legislation recently filed in Texas would require insurance companies to provide customers with more complete information on rate increases and expand resources available to consumers for shopping the market. Rep. Armando Walle of Houston says House Bill 2723 and House Bill 2724 would “help consumers fully understand the premium increases imposed by insurance companies and will give consumers information on how they can shop around.” HB 2723 concerns accident and health insurance policies. Under the measure, an insurer must notify consumers of the rate increase 60 days prior to it taking effect, according to information posted on the Texas House of Representatives’ Web site. The notice would have to include the amount of the increase and information about how to file a complaint. Additionally, the bill would require the notice to include Web site addresses where consumers can access information regarding rate increase justifications and alternative coverage options.
HB 2724 contains similar provisions for residential property and personal automobile insurance. At the time of a policy renewal, the insurance company would be required to provide a side-by-side comparison of the new and old rates, as well as provide information on any changes in coverage and how to shop around. The bill also requires insurers to give the deductible in a dollar amount, rather than in a percent of the total value of the policy. Rep. Armando Walle is serving his second term in the Texas House of Representatives and serves on the House Committee on Insurance and the House Committee on Homeland Security and Public Safety. He represents House District 140, which includes northern portions of unincorporated Harris County and the City of Houston. “Policyholders deserve clear information about upcoming rate increases with enough time to plan accordingly or shop around if they are unhappy with the product,” said Rep. Walle. For more information please visit www.house.state.tx.us.
Thousands Cited in El Paso for Phoning When Driving
Thousands of talkers have been ticketed in El Paso, Texas, since the city’s ban on using hand-held cell phones while driving took effect last spring, according to reports made by Insurance Journal. The El Paso Times reported that more than 6,400 tickets have been issued since enforcement began of the April 1, 2010, ordinance. Violators face fines of $114. The ordinance applies to all drivers in the city, including emergency personnel. More than 1,800 tickets have been issued during 2011, through March 11. Police Chief Greg Allen says the law is only enforceable if an officer sees a driver using a hand-held cell phone. The ordinance was approved to increase traffic safety by reducing driver distractions. Hands-free devices are permitted. Drivers in El Paso can legally use a hand-held cell phone to report a crime, traffic accident or medical emergency.
GM Idles Texas SUV Plant
General Motors Co. idled a Texas sport-utility vehicle plant for a day on April 8 due to a parts shortage, a union official said. GM confirmed its Arlington, Texas, plant will be temporarily shut but declined to comment on what caused the shutdown, according to the Wall Street Journal. The Arlington factory operates two 10-hour shifts Monday through Thursday. For the last 18 months, the company has also operated two shifts on Friday, and sometimes operates on Saturday, to keep up with demand, said Enrique Flores, president of United Auto Workers Local 276, which represents workers at the plant. Flores said GM officials informed him late April 6 that this Friday’s two 10-hour overtime shifts would be cancelled because there aren’t enough parts. The plant resumed production on April 11. GM said the production on April 8 would be rescheduled for a later date. GM’s Arlington Assembly plant builds big SUVs including the Chevrolet Tahoe and GMC Yukon. The vehicles are highly profitable for GM and consumer demand has been strong despite rising fuel prices.
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 9
Collision Repairers in Texas Mourn the Loss of Bob English—Founder, English Color
The collision industry lost one of its leading members at the end of March; James Robert “Bob” English, Jr., founder of English Color in the southern US. Bob was raised in Dallas, and took great pride in having graduated from Texas A&M University, Class of ‘46, with a Business degree. Bob was known by his friends for his love of a good Aggie joke, so Bob English much so that he was given the nickname “Aggie Bob”, which was how he was identified for decades. “Bob was just a core Aggie,” said Michael McCabe with English Color, “Our corporate office in Richardson flies the American flag and the Texas A&M flag right below it.” Bob was an accomplished businessman who founded English Color & Supply, Inc. in 1946. The company has evolved from selling
automotive batteries out of a panel truck to becoming one of the largest distributors of automotive paint and supplies with 41 locations in 6 states and representing products from over 100 suppliers. Even after Bob’s retirement, he continued to have an active role in an advisory capacity and strived to maintain a personal relationship with his dedicated employees. “For our 60th anniversary, Bob designed a gold coin to give to all the employees to thank them for helping him achieve 60 years. Along with a coin for every employee, (approximately 250) he gave each employee 60 brand new One Dollar Bills. Bob wanted to shake the hand of every employee (sales reps, managers, counter personnel, delivery drivers, etc) and thank them for their support,” said Jim English, Bob’s son and English Color’s current Chairman. English Color has locations serving customers in Texas, Oklahoma, Louisiana, Mississippi, Tennessee, Alabama and Arkansas.
10 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
bor kid, then his grandson Jeff ... to round out the “family” business. Bob English made us all feel like family and we want to stay around,” said Monique Flener, Sales and Marketing Coordinator with English Color. English Color was originally known as English Bros. After graduating from Texas A&M Bob borrowed $1,100 from his parents to start his own business. The name “English Bros.” was chosen because two of Bob’s father’s brothers had a surplus sign by that Jim English (son, left), Bob English (middle), and Phil Burnett name that they had used (son-in-law, right) breaking ground on store # 2 in Dallas, TX in their business, and in March of 1983 they were no longer “This was his business, that beusing it. They let Bob use it at no cost. came a family business when his son Bob’s biggest investment when Jim and son-in-law Phil came on he started out was a half-ton panel board, then Robert our VP was a neightruck.
Phil Burnett (left) and Bob English (right) and one of English Color’s signature red delivery trucks at the Auto Collision Repair Show hosted by English Color – April 29-30, 1988 at the Dallas Market Hall
Bob’s father was Southwest Sales Manager for the National Battery Company, so that’s why he started out selling automobile batteries. Bob purchased the panel truck to carry inventory until he could establish a location, which he eventually found in Frisco, Texas. Bob fell into the paint supply business just as the battery supply part of the business began to grow.
He was exploring other automotive supply options when he decided to dabble in becoming a Paint Representative, and English Color Supply was born. Bob worked tirelessly as an active leader in the automotive industry and his community, in which he was honored to receive many distinguished awards.
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944 Committee
VERSION DATE: 03/24/2011 By: Jackson S.B. No. 944
A BILL TO BE ENTITLED AN ACT relating to the creation of an advisory committee to make recommendations to the commissioner of insurance regarding certain automobile insurance claims.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 1952, Insurance Code, is amended by adding Section 1952.308 to read as follows: Sec. 1952.308. ADVISORY COMMITTEE. (a) An advisory committee shall make recommendations to the commissioner regarding: (1) the enforcement of this subchapter; (2) preventing and penalizing the processing of third-party claims for damage to a motor vehicle in violation of Chapters 541 and 542;
(3) procedures, parts, or products used to repair a motor vehicle; (4) rules and procedures related to automobile insurance claims for the costs of towing and storing motor vehicles; and (5) any other matter relating to automobile insurance and the repair of motor vehicles. (b) The advisory committee is composed of nine members appointed by the commissioner as follows: (1) three members who represent motor vehicle repair facilities; (2) three members who represent the public; and (3) three members who represent the automobile insurance industry. (c) A member of the advisory committee serves without compensation but is entitled to reimbursement for reasonable expenses incurred in attending meetings of the advisory committee. SECTION 2. This Act takes effect September 1, 2011.” For more information please visit ASA’s legislative website at www.takingthehill.org.
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 11
HABA to Host 1st Annual Shop Owners and Managers Appreciation Event
The Houston Autobody Association (HABA) will host their first annual body shop owners and managers appreciation event on May 19 from 7 pm to 9 pm at the Cadillac Bar in Houston. The organization will host this event in lieu of their monthly meeting for May. The event is open to members and non-members alike. Please visit www.habaonline.org and fill out the RSVP information and fax it in so the group can get a head count of those attending. The hope is for local body shop employees to meet the members of the association and see what they are all about. HABA hopes to interest the local industry in joining their association and becoming part of a great organization that has and will continue in the advancement of the collision repair industry. Please visit www.habaonline.org for more information.
OK Insurance Commissioner Revamps Fraud Probes
Oklahoma’s new Republican insurance commissioner and top prosecutor say they’re revamping how insurance fraud is investigated and prosecuted in the state, according to reports made by Insurance Journal. Attorney General Scott Pruitt and Insurance Commissioner John Doak say the two agencies will increase their level of cooperation and are working to streamline the process. Doak says the Insurance Department will focus on insurance crimes committed by agents and company executives that cost Oklahoma’s ratepayers. Pruitt’s office, meanwhile, will focus on expanding investigations and prosecutions of claimants who commit insurance fraud, including workers’ compensation fraud. Doak says the goal is to make Oklahoma a “dangerous place to be an insurance criminal.”
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Microsoft and Toyota Join Forces in Telematics Venture
Microsoft and Toyota Motor Corp. have forged a strategic partnership and plan to build a global platform for TMC’s next-generation telematics services using the Windows Azure platform. Telematics is the fusing of telecommunications and information technologies in vehicles; it can encompass GPS systems, energy management and other multimedia technologies. The two companies plan to participate in a $12 million investment in Toyota Media Service Co., a TMC subsidiary that offers digital information services to Toyota automotive customers. The two companies aim to help develop and deploy telematics applications on the Windows Azure platform, which includes Windows Azure and Microsoft SQL Azure, starting with TMC’s electric and plug-in hybrid vehicles in 2012. TMC’s goal is to establish a complete global cloud platform by 2015 that will provide affordable and advanced telematics services to Toyota automotive customers around the world. As part of its smart-grid activities, aimed at achieving a low-carbon society through efficient energy use, TMC is conducting trials in Japan of its Toyota Smart Center pilot program, which plans to link people, automobiles and
homes for integrated control of energy consumption. TMC believes that, as electric and plug-in hybrid vehicles become more popular, such systems will rely more on telematics services for achieving efficient energy management. Microsoft has a long history of delivering platforms and services to the automotive market, including incar infotainment systems built on the Windows Embedded Automotive platform, in-car mapping services with Bing and the Microsoft Tellme voice application, and many other consumer solutions. “Our announcement of our partnership with TMC is a great example of how we continue to invest in the automotive industry and of our commitment to power the services that are important to consumers,” said Microsoft CEO Steve Ballmer. “It further validates the power of the cloud, as the Windows Azure platform will provide the enterprise-grade, scalable platform that TMC needs to deliver telematics in its automobiles worldwide.” Said Akio Toyoda, president of TMC: “To achieve this, it is important to develop a new link between vehicles, people and smart center energy-management systems.”
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Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Effort to Develop Collision Repair Standards Takes Another Step Forward A Collision Industry Conference (CIC) committee hopes by April to have hired a consultant to help build a business case for a new organization that would oversee the development and implementation of formalized collision repair standards in the United States. Russ Thrall, co-chairman of the Repair Standards Advisory Committee, said at the CIC held in Secaucus, NJ in mid-March that several proposals from consultants are now being reviewed, and a decision is expected in April. If funding for the position can be raised, the consultant will be asked to issue a draft of the business case by the end of September. For a number of years, an allvolunteer CIC committee has discussed and crafted some portions of a possible standard, which would address training, equipment and even repair procedures. A draft of the still in-process 100-page document can be viewed online (www.repairstandards.com). Thrall has said the consultant is needed to work with the volunteer committee to conduct the interviews and research necessary to propose a structure and funding mechanism for the organization that would use a formal process to create and implement the standards. The consultant’s report would also outline the value such standards would offer various segments of the industry, and how the performance of the standards could be measured. The committee is planning a forum to be held in conjunction with CIC’s November meeting in Las Vegas that would present the consultant’s findings and recommendations. Thrall said the committee hopes to include presentations and discussion at that forum with representatives from shops and insurers in the United Kingdom where a formalized set of industry standards has been in place for several years. As happens during many of the discussions of proposed industry standards, a number of participants at CIC in Secaucus expressed questions or concerns about the process or outcome.
Aaron Schulenburg of the Society of Collision Repair Specialists, for example, asked whether the fund-raising that was planned was just to cover the expense of the consultant’s research, or if would be establishing funding for a standards organization even before the need for and interest in such an effort was established. He said his group had recently held a conference call with about 18 of its affiliated state repairer associations. “The perspective was pretty consistent from association to association,” Schulenburg said. “To be honest, there was a lot of skepticism over the value, the benefit, and the overall impact (of formalized industry standards) on the repair facilities that these association represent.” Thrall and others on the committee stressed that funding was only being sought to determine whether there is an interest in and business case for the development of a standard-setting and –implementing organization.
I-CAR offers update Also at the meeting, Bill Stage of ICAR provided an update on the training organization’s efforts to revamp its offerings and recognition program. He said that while the Gold Class Professionals designation is currently based on “points,” it will convert to be based on “hours” of training next year. Stage said there are currently about 4,000 Gold Class facilities in the United States, up by about 1,800 since last July. That growth, he said, came in part because of Allstate’s push to ensure all shops in its direct repair program are Gold Class. “There’s another insurance company that is pretty close to going down that path as well,” Stage said. “And two OEMs at this time are close to announcing a Gold Class initiative for their dealership shops.” Starting in July, I-CAR will begin to allow experienced technicians to “test-out” of some of the more “basic” courses required for “Platinum Individual” status. He said I-CAR will announce three new online classes in April, as well as about one new online class about each month after that. He said that while four hours of online
14 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
training currently is more expensive than one 4-hour live I-CAR class, a new pricing structure expected to roll out in January will have “a lot more rationality” in the pricing for the two types of training.
Other discussion at the meeting In other news and discussion at CIC in Secaucus: ● Industry trainer Toby Chess presented information on the need to recalibrate the steering angle sensor that is part of the electronic stability control system on an increasing number of new vehicles. Such systems are standard equipment on 85 percent of 2010 new vehicles, and will be required on all new vehicles as of model year 2012. The recalibration is an additional procedure that must be done after the vehicle alignment. “It’s an added step, and there’s also no more 2-wheel alignments with these systems. That
won’t work,” Chess said. He said even though no “trouble light” will be lit on the dash and the vehicle may handle properly under normal driving conditions even if the system is not calibrated, the electronic stability control function may not work properly in a subsequent “emergency maneuver.” ● Deborah Craig, a compliance officer with the U.S. Environmental Protection Agency, said that even though the deadline has passed for shops to comply with new federal refinish and paint stripping regulations, any business that has not complied should not avoid doing so. “Some folks think if they hang back and don’t submit the paperwork that somehow EPA isn’t going to know about them,” Craig said. “They don’t want to shine a light on themselves by submitting something late. Our recommendation is that you just move forward as quickly as possibly See Repair Standards, Page 18
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Gunder’s Loses Appeal to State Farm—Court Rules ‘Even if False,’ Claims are Priviledged
On April 7th, 2011 the United States Court of Appeals for the Eleventh Circuit upheld a lower court’s order granting summary judgment in favor of State Farm Insurance in Gunder’s Auto Center’s claim against the nation’s largest personal auto insurer for slander and tortious interference with a business relationship. (See Autobodynews.com for background.) To recover for slander in Florida, the claimant must show (1) publication of a false statement; (2) about the plaintiff; (3) to a third party; and (4) damage resulting to plaintiff from the publication. To state a claim for tortious interference in Florida, the claimant must show (1) the existence of a business relationship; (2) knowledge of the relationship on the part of the defendant; (3) an intentional and unjustified interference by the defendant; and (4) damage from the breach of the relationship. The court found that, “although denied by State Farm, we assume the statements allegedly made by State Farm disparaging Gunter’s were made and are untrue. Nonetheless, we agree with the district court that State
Farm’s statements were privileged: Under Florida law a privileged statement is one in which “A communication made in good faith on any subject matter by one having an interest therein, or in reference to which he has a duty, is privileged if made to a person having a corresponding interest or duty, even though it contains matter which would otherwise be actionable. The court continued: “Because all statements were made to State Farm insureds in the context of a claim under a State Farm insurance policy, and because all statements concerned a matter of mutual interest to the insureds andState Farm—the quality, timeliness and costs of vehicles repairs—the statements were privileged. The privilege raises a presumption of good faith on the part of the speaker, but the privilege is not absolute. The privilege is forfeited if the statements are made with express malice: [w]here a person speaks upon a privileged occasion, but the speaker is motivated more by a desire to harm the person defamed than by a purpose to protect the personal or social inter-
est giving rise to the privilege, then it can be said that there was express malice and the privilege is destroyed. Gunder’s failed to proffer sufficient evidence of express malice to raise a material issue of fact for a jury. The statements of which Gunter’s complains—even assuming their falsity—supports no inference of malice, and Gunter’s failed to proffer extrinsic evidence of express malice. Summary judgment was due on Gunder’s slander claim. On the tortious interference claim by Gunder, the court ruled “Gunder’s makes no allegation that State Farm interfered with customers or prospective customers of Gunder’s who were not State Farm insureds. As a matter of law, “[t]here can be no claim [for tortious interference with a business relationship] where the action complained of is undertaken to safeguard or promote one’s financial or economic interest.” The court continued, ““[u]nder Florida law, a defendant is not a stranger to a business relationship, and thus cannot be held liable for tortious interference, when it has a supervisory
interest in how the relationship is conducted or a potential financial interest in how a contract is performed.” Gunder had argued in court that State Farm had lost the priviledge because it used improper means, but was unable to prevail because the testimony detailing the improper means had earlier been stricken from the court’s records. The court continued, “ On appeal, Gunder’s cites—for the first time— [a paragraph in the] amended complaint to claim it pleaded improper means. Even if Gunder’s has preserved this argument, the only arguably improper means Gunder’s alleged are the statements Gunder’s claims State Farm made to its insureds about the costs, quality, and timeliness of Gunder’s repairs. These statements are the same statements upon which Gunder’s grounds its slander claims. Even assuming the falsity of those statements, as earlier discussed, those statements were privileged; they fail to show the improper means needed to defeat State Farm’s privilege against a tortious-interference claim.” See Gunder’s Loses, Page 39
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Indiana Shop Owner Favors Chief for Quality, Durability & Support by Ed Attanasio
Jimmy Lefler owns and operates five extremely busy body, mechanical, and glass shops based in Evansville, Indiana, that are repairing more than 200 cars per week, juggling eight DRPs, employing 80 people and doing approximately $9 million in annual sales. So, when it comes to purchasing equipment to run his shops, CEO Lefler expects that his machines will perform day-after-day without breaking down or requiring extensive maintenance. That’s why he’s been buying his racks, computerized measuring systems and lifts from Chief Automotive Technologies, a leading manufacturer of pulling, measuring, anchoring and vehicle specification products. Lefler is a third-generation body shop owner whose grandfather, Leroy, founded Leroy’s Paint & Fender Repair as a dirt floor garage in 1952. Times have changed. For almost 60 years, Lefler has been a household name for fixing cars in the tri-state area on the borders of Indiana, Kentucky and Illinois. Leflers has been winning national awards for the family’s contributions to the collision industry, while expanding and succeeding in a very competitive market with more than 60 body shop/collision centers listed in the southern Indiana region. Jimmy started working in the family’s business in 1986 in the parts department. “I did it all in the beginning—fixed cars, washed vehicles, worked as an estimator and cleaned floors—anything and everything to learn the business. In 1996, I bought out my father and starting running the operation,” he said. The Lefler family has had a longterm mutually beneficial relationship with Chief, he said. “We bought our first rack from them in 1982, after we saw their demonstration. That was the key, because it was very informative and they showed us everything that the machines could do. We have one Chief machine right now that’s been here for 18 years and it’s still going strong. It’s paid for itself several times over, that’s for sure. Today, we own three Chief measuring systems, four racks and a drive-over lift/pulling system.” Chief Automotive Technologies started manufacturing its first pulling systems in 1972, and it rapidly became a leader in the industry. The company has stepped up over the years, driving technology changes, including the introduction of computerized measuring systems and comprehensive vehicle specifications.
SHOP & PRODUCT SHOWCASE Lefler Collision & Auto Glass Centers
Location: Evansville and Newburgh, IN
Telephone: 812-423-4044 www.leflers.com Company At A Glance...
Type: Collision & Mechanical Repair Facility Employees: 80
In Business Since: 1952 DRP Programs: Eight
Number of Locations: Three collision body shops & two mechanical/glass shops
Lefler Auto Body Tech Rodney Blandford works on a vehicle using the shop's Chief Impulse frame rack, one of the Chief machines that Lefler counts on to repair approximately 200 cars weekly
Lefler’s VP/Operations Manager Ed Dietz praised Chief’s exemplary customer service for keeping his techs informed and productive while they are working with the manufacturer’s machines. “Our techs can get a Chief technical person on the phone immediately, and that’s critical,” Dietz said. “It allows my technicians to resolve their issue and stay productive, which is so important to our cycle times. If they have to sit on hold or wait to get a call back, that’s time that’s been lost.” Roger Tutt, production manager for Lefler’s Evansville North shop, has consistently received fast and accurate information from the Chief customer service team whenever he has needed it. “They make it easy. The only time I ever need technical service from Chief is a computer-related issue, and the technical service hotline walks me right through it every time,” he said. “The ability for a Chief technical person to log in remotely to see what the tech is looking at on the Genesis computerized measuring system computer is a ‘game changer’ for service.” Lefler has all his techs trained by Chief, he said, to ensure that they know every detail involved in the operation of these machines. “We recently brought Ken Soupene, a Chief instructor, on-site for a week of training for all of our technicians. It was great, because all of our employees were able to go through the training in a real-world setting, without costing us a decline in production or cycle times”. A big part of what Chief brings to the equation for Lefler is its training,
which allows techs to get certified and earn I-CAR credits in the process, Lefler said. “They make the training very effective and comprehensive,” Lefler explained. “It’s topnotch all the way. Soupene is one of the best instructors we have ever encountered from any company, and he taught most of my techs how to work these machines.” Chief’s support starts with training and continues after the sale via the company’s equipment reps on the ground, Lefler said. “Mark Lee is our equipment rep and he has proven to be one of the best we have ever worked with,” Lefler said. “He’s very responsive and is always readily available to answer any questions after the sale. Customer service is a big deal, because we’re using these Chief racks on a daily basis, and we work them hard. So, we need to have a guy like Mark who knows these machines inside and out and is dedicated to servicing our needs. I know that if we need a part in a hurry, he’ll drive it over here, even though his company is in Indianapolis, a 3.5-hour ride from here. That’s the kind of customer support we’ve been getting from Chief and reps like Mark.” Lee, owner of Lee Equipment, has been selling Chief equipment to Lefler for the past five years, and has a long history with the manufacturer, he explained. “Chief doesn’t make cheap machines, but the quality is there and the products’ longevity and durability is the proof. I have customers who are still using the same Chief machines that they bought 35 years ago.”
Combined Production Space: 47,800 square feet (combined)
All of Lefler’s shops are busy day and night, doing $9 million in annual sales despite a rocky economy
Jimmy Lefler is a third-generation body shop owner who owns five locations in Southern Indiana
Chief Automotive Technologies Phone: (800) 445-9262 email: salesorders@chiefautomotive.com website: www.chiefautomotive.com
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 17
On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Summertime Should Mean Event Time For Body Shops with Thomas Franklin
Summer time is nearly here and shop owners who are interested in attracting insurance or other referral business may be considering putting on an event. These can vary widely in terms of size and cost. I assisted one dealership owner in creating quite a large event to build business for his body shop. In addition to insurance DRP coordinators. Since he did a lot of work for commercial contractors and also local law enforcement, he invited many company owners and managers and also sheriff’s department personnel. He put up large umbrellas over picnic tables all along the driveway in front of his body shop work bays. Naturally food and drink vendors were located along there. Each work bay was converted into a presentation space. By the prep and spray booths, his paint jobber set up demos of spray guns, a colormatching photospectrometer, and various paint supply items. His 3-M distributor used a bay to demonstrate special materials for everything from windshield repair to simple repairs on plastic and fiberglass auto parts. Another bay housed a paintless dent removal specialist, and some attendees were provided with small dent removals from their vehicles. An ongoing demonstration of the estimating and management systems was provided in the body shop office. Tours of the entire dealership were given every fifteen minutes. The cost of the event was in excess of $10,000. Was it worth it? One small insurance company representative agreed to add the shop to their DRP list. The dealership got a few orders for new pick-up trucks, but very
few new commercial company people came to the event and I didn’t hear of any new commercial contracts. Was the event a wise investment? I don’t think the dealership owner considered it a success, but the upgrades to the shop were needed and the P.R. value of the event was substantial. Could he have put on an event for less? The answer is a definite “Yes!” Looking back, I could see that a dealership principal would have difficulty resisting turning a body shop promotional event into somewhat of a vehicle sales event. That increased his cost greatly. In general I’ve seen more shops simply put on a barbecue along with a tour of the shop. Others have made their shop available for a small local trade show with suppliers and other vendors setting up their demonstrations and presentations on long tables. One disadvantage of this is having other shop owners coming through. The barbecue event can be focused purely on insurance company representatives and/or other referral sources. An even more economical approach to an event is to participate in someone else’s event. One local school put on a safe driving event. The Auto Club and a local radio station sponsored it. A couple of collision shop owners and also driving school owners were invited to set up tables with safe driving information. In a sense this was more of an event looking to the future when the high school kids would become new drivers, but parents were also there and had an opportunity to learn more about the participating collision repair shops. A more direct event for the general public was put on by a shop that became a voting location on an elec-
Continued from Page 14
● An informal collection of cash donations from the approximately 150 people at the meeting raised more than $1,600 for the Japanese Red Cross to support efforts to help that country following the earthquakes and March 11 tsunami.
Repair Standards
to come into compliance. Give the regional EPA folks a call. Ask for help in filling out the forms. Talk to folks in your trade group for assistance. Talk to your paint suppliers. A lot of the paint suppliers have really been offering such excellent customer service by helping you comply.”
18 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
tion day. The owner played patriotic music and had patriotic banners all over the place. He even hired a model dressed up in an Uncle Sam costume to conduct tours of the shop for anyone interested. Since many voters are longterm local homeowners with more expensive high-end cars, the shop owner felt he would reach the kind of customer he wanted. While a shop event aimed at insurance or commercial account attendees has to direct their promotional mail, phone calls and faxes to a very specific list of prospects, the shop focusing on the general public could use radio, TV and print publication ads to get the word out. Shops located in a desirable residential area could also distribute flyers directly to homes in the area. Collision shops have one major advantage over many other businesses when it comes to putting on events. Most shops occupy a fairly large
space overall. Like the dealership I described, most have many parking spaces and open repair bays where demonstrations and presentations can be carried out easily. Few people are aware of the size and complexity of a typical body shop. The event can be an ideal opportunity to educate prospective customers on the advantage of choosing a shop with state-of-the-art spray booths, frame measuring and straightening equipment, top quality welding equipment and the many special tools needed to perform repairs on today’s ever-changing vehicles. Putting on an occasional event is a good promotional effort for a shop because it not only provides a reason to invite key potential referral sources to see the shop, but it also motivates shop owners and managers to clean up the place and make it presentable for the event. That alone is worth at least a small investment.
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www.autobodynews.com | MAY 2011 AUTOBODY NEWS 19
Three of Largest Auto Recycling Networks Merge The merger of three of the largest independent auto recycling networks in the country was announced at the United Recyclers Group Annual Conference in Colorado. QRP Midwest, a network of 33 independent recyclers has joined TEAM PRP affiliates, Absolute and Heartland, to form PRP Midwest. This alliance unites 52 independent recyclers in the Central geographic region of the United States. Krystyn Roberts of County Line Auto Parts, Kansas City, Missouri is the Chair of QRP Midwest and feels the timing is right, “Both PRP and QRP Midwest are very excited for the future and the possibilities that will come from our three independent recycling groups
joining forces. All groups have different strengths that we have brought to the table and it just makes sense for us to team up to ultimately better serve our customers and our industry.” The merger came about quickly after the first meeting between the recycler groups at which sharing delivery system resources was explored. Ultimately, they recognized the benefit of consolidation, leveraging a full integration of the three trading networks. Significant value will be offered in better service to PRP Midwest mechanical and collision customers through the integrated delivery systems, expanded inventory and access to better salvage procurement options. “The merger of these three quality driven membership groups of in-
dependent recyclers will no doubt positively impact the repair community in the regions covered,” states Chris Northup, an independent industry consultant who is currently retained by the TEAM PRP National Board of Directors, “Realistically, this could provide the template for a go forward footprint of independent recyclers to compete on the national scale.” Kent Rothwell, Weaver Auto Parts, Carnesville, Georgia, a Team PRP National Board Member is pleased with the expansion, “Team PRP encourages individualism as we use our combined philosophy to build the strength of our network.” Mel Hunke, the General Manager of PRP Midwest has been working closely with all entities and sees the
positive change ahead, “ I am very excited about the potential resulting from these three networks of auto recyclers, who have a long history of commitment to excellence and outstanding customer service, joining forces to form one superior source of auto parts for all categories of customers,” Hunke continues, “I am optimistic that PRP Midwest will offer even greater customer benefits than the three groups have provided separately in the past. PRP Midwest is ready to assume a leadership role in providing “alternate source” auto parts to our customers”. About TEAM PRP: Team PRP is a national network of independent auto recyclers, offering expanded inventory, regional transportation systems and knowledgeable support staff.
TrueCar.com has released a refreshed demographic study based on car-buying behavior in 2010, examining gender differences in auto buying. TrueCar.com’s study was based on over eight million retail purchases in 2010. “The study shows that women car buyers are more cost-conscious and purchased fuel-efficient vehicles while male buyers were completely the opposite, purchasing vehicles that were either big and brawny, like a large truck, or chose a high-priced, high-performance vehicle,” said Jesse Toprak, Vice President of Industry Trends and Insights at TrueCar.com. Some of the key findings of the TrueCar.com study include: ● The brand with the highest percentage of retail sales to females in 2010 was MINI (47.9 percent), followed by Kia (46.8 percent), and Honda (46.0 percent) compared to 2009 when Saturn and Kia tied at 45.2 percent and MINI came in third at 45.0 percent. There were fifteen brands with a fe-
male ratio over 40 percent in both 2009 and 2010. ● The highest percentage of male buyers primarily purchased exotic brands. There were five brands in 2010 at 10 percent or less for retail sales to women, including Ferrari (6.4 percent), Lotus (7.2 percent), Lamborghini (7.4 percent), Maybach (8.0 percent), and Rolls Royce (9.3 percent) compared to 2009 when there were six brands; including Bugatti (0 percent), Maybach (3.7 percent), Ferrari (5.1 percent), Lamborghini (5.5 percent), Rolls Royce (8.0 percent), and Aston Martin (9.0 percent). ● The top ten models that had greater than 50 percent retail sales to females and at least 1,000 annual retail sales in 2010 were: Volkswagen New Beetle, Kia Spectra, Nissan Rogue, Volkswagen Eos, Hyundai Entourage, Volvo S40, Jeep Compass, Honda CR-V, Nissan Sentra, and Hyundai Tucson. ●The top ten models that had greater than 50 percent retail sales to males
and at least 1,000 annual retail sales in 2010 were: Porsche 911, GMC Sierra, Chevrolet Corvette, Chevrolet Silverado, Ford F-Series, BMW M3, Ford Ranger, Toyota Tundra, Dodge Ram and Audi S5.
TrueCar.com also examined the most current market prices and listed discounts for all of the brands and specific models that were tracked with over 1,000 vehicle sales annually.
by Janet Chaney
When it Comes to Cars, Men Buy Looks, Women Seek Practicality
Man Shot To Death At San Diego, CA, Auto Repair Shop
A man found shot at a Point Lomaarea auto repair shop was declared dead at the scene the morning of April 19, according to reports made by San Diego’s 10 News. A customer dropping off her car found the man at Joe’s Auto Repair in the 1900 block of Rosecrans Street in San Diego around 7:30 a.m. Witnesses reported hearing gunshots at the location at around 7:15 a.m.
The owner of Point Loma Smog, which is located next door, told 10News that owner of Joe’s Auto Repair is the person who was shot. Police are looking for an oldermodel, green sedan that might be connected to the incident. More information about the investigations as it progresses can be found at www.autobodynews.com.
20 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
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Used Vehicle Pricing Expected to Rise in Quake Aftermath
Automotive News Reporter Arlena Sawyers writes that since the earthquake in Japan, used-vehicle prices have become so volatile that price experts are scrambling to keep up. And dealers, anticipating new-car shortages, are going beyond usual channels to stock usedcar lots, often paying more for those vehicles and then worrying about having shelled out too much. Prices already were high. The recession led to a shortage of used vehicles, and when demand rose as credit eased for used-car customers, prices soared. Then the quake struck. Reduced production by Japanese automakers, such as Toyota Motor Corp. and Honda Motor Co., and the threat of production cuts by virtually all automakers means a reduced new-vehicle supply. Dealers who are short of new vehicles look to the used-car lot to meet demand. And prices could go even higher. If new-vehicle incentives dry up, as many predict, prices of used vehicles will rise as new-car transaction prices go up.
Full Deliveries From Japanese Suppliers Stalled Until July
Automotive News Editor Jason Stein reports that as inventories of Japanese products continue to dry up, Toyota Motor Corp. and Nissan Motor Co. have warned U.S. dealers: Full deliveries from Japan likely won’t arrive until July at the earliest, and perhaps as late as September. Parts shortages have forced Toyota and Nissan to prepare several scenarios in which full production in Japan wouldn’t begin until at least 30 to 90 days after the country’s upcoming holiday break, said people who have been briefed on the situation. In the best-case scenario, both automakers will begin full production a month after Japan’s Golden Week holiday that ends May 9. In an internal document sent to dealers Friday, April 15, Toyota said it will keep building cars in Japan at half of the original plans until June 3, which will cost the automaker another 120,000 vehicles in lost production. A decision on Toyota production at Japanese plants after June 6 “will be made at a later date after assessing the situation of its suppliers and other related companies,” the document says.
Honda Extends Production Cuts in North America to May
Automotive News is reporting that Honda will extend reductions of vehicle output at its U.S. and Canadian plants through May 6. The automaker had previously said it would reduce vehicle output through April 22. Decisions have been made on a plant-by-plant basis on how much to cut back production in order to conserve parts. Affected plants include East Liberty, Ohio, which makes the Honda Accord Crosstour and CR-V; Greensburg, Ind., which builds the Honda Civic and Civic GX; Lincoln, Ala., which makes the Honda Odyssey, Pilot and Ridgeline; Marysville, Ohio, which produces the Accord and the Acura TL and RDX; and Alliston, Ontario, which builds the Civic and the Acura CSX, MDX and ZDX. Honda has been altering production schedules at those plants since March 30 in the wake of the March 11 earthquake and tsunami in Japan. The automaker said it anticipates that additional production adjustments will continue after May 6. Honda has already restricted dealer orders for June, so that allocated colors and trim levels for U.S.-built vehicles cannot be altered. It also has suspended U.S. dealer orders for Japan-built models that are sold here.
Hyundai, Kia Running U.S. Plants at Full Speed
Hyundai and Kia, South Korea’s biggest carmakers, are running full shifts at their U.S. plants with overtime, unaffected by parts shortages that are curbing output for Japanbased competitors. Hyundai’s plant in Montgomery, Ala., aims to squeeze out 10 percent more Sonata and Elantra sedans than its 300,000-unit capacity this year, said Robert Burns, a spokesman for the factory. About 80 miles east, Kia’s plant in West Point, Ga., has run extended weekday shifts and Saturday work since last year and expects that to continue for the foreseeable future, said Corinne Hodges, a spokeswoman for Kia. Expanded U.S. output at Hyundai and Kia contrasts with assembly reductions at the North American plants of Toyota, Honda and Nissan implemented after Japan’s earthquake on March11. U.S.based General Motors and Ford also cut some assembly, and Chrysler Group canceled overtime shifts to conserve supplies of parts that might grow scarcer. Globally, 1.5 million units of auto production might be lost temporarily because of damaged operations at Japan-based parts and materials suppliers.
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Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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Ford Expands F-150/Lincoln Recall Due to Airbag Flaws
Airbiquity to Supply Air-OverVoice Technology to Onstar
Verizon Unveils Hybrid and Alternative-energy Vehicles
Nissan’s Leaf Experiences A/C Sensor Problem
Ford’s Electric Focus Will Not Lease Lithium-Ion Batteries
AASP-Pennsylvania’s Big E Trade Show Coming in October
Ford Motor Co. is recalling almost 1.2 million F-150 pickups and some Lincoln Mark LTs due to faulty air bags. Federal regulators have received hundreds of instances of inadvertent air-bag deployment, many of which have resulted in bruises, cuts and even a chipped tooth. Two drivers said they were knocked unconscious. Ford, however, said it is not aware of any accidents related to the glitch. The recall affects Ford trucks from model years 2004 through 2006. “If the clockspring jumper wire comes in contact with the driver side frontal air bag lower horn plate, the wire insulation may become chafed, creating a potential short circuit,” the National Highway Traffic Safety Administration said. Ford had resisted expanding the recall because the car maker didn’t see it as necessary, but it finally caved to pressure from regulators. “We understand the government’s desire to reach a broad group of potentially affected consumers and will recall the remaining population of trucks for our customers’ peace of mind,” a spokesman said.
Nissan Motor Co. said there have been a few reports of Leaf electric cars failing to restart after they have been turned off because of an air-conditioning sensor problem. “If this sensor is activated it will illuminate a warning light on the instrument panel and may cause the vehicle to not restart once it has been turned off. We are actively investigating to determine the root cause and what action is necessary to address the issue,” the company said in a statement. Nissan isn’t planning a recall because the problem isn’t a safety issue. The company says the cars won’t not stop running while being driven. Nissan says it is trying to “promptly address this issue.”
Airbiquity, a provider of wireless connected vehicle services, announced at CTIA Wireless in Orlando, the company’s selection to provide data-over-voice technology to OnStar’s retail product, OnStar FMV. OnStar’s mirror-mounted retail device will bring connected vehicle services to virtually any vehicle. “We’re exceptionally proud of Airbiquity’s eight-year relationship with OnStar, the leading brand in connected vehicles,” said David Jumpa, senior vice-president of global business development, Airbiquity. Currently available on more than 40 MY 2011 GM models, OnStar soon will be available for installation on most other vehicles already on the road through local electronics retailers, including Best Buy. “With our underlying technology, OnStar continues to offer an innovative and cost-effective range of services to drivers,” Jumpa said. “Adding OnStar to a car is now as quick and easy as installing a new rear-view mirror.” According to Airbiquity, OnStar FMV will be available for purchase from North American consumer electronics retailers in 2011.
Ford’s new all electric Focus is ready to hit the market, however it will be sold without a leased-battery option. The lithium-ion battery pack will be included with the car and will not be leased separately. Awaiting customer reaction, Ford is convinced that leasing the batteries is not the right strategy. Leasing batteries would have brought the initial price down and many predicted that Ford ultimately would make the decision to lease batteries. The Focus has a 28kWh electric motor with a top speed of 84 mph. It will take around 4 hours to recharge the car, about half of what its main competitor, the Nissan Leaf, needs.
22 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
Verizon showcased some of the newest energy-efficient additions to its motor vehicle fleet at an event attended by President Obama on April 1. Verizon, which has the third-largest corporate vehicle fleet in the nation, was among five companies recognized by the president for adding substantive numbers of green vehicles. Verizon displayed three of its latest energy-efficient vehicles at the event, which featured alternative-energy trucks and cars operated by some of the nation’s largest corporations. “We’re bringing environmentally friendly innovation and advanced technologies to our motor fleet operations,” said Jim Gowen, chief sustainability officer for Verizon. “By seizing the opportunity to help improve the environment, our vehicles are saving energy, reducing emissions and improving our greenhouse gas profile.” At the event, held in Landover, Maryland, Verizon displayed a hybrid Chevrolet pick-up, an all-electric Chevrolet Volt and a first-of-its-kind hybrid aerial-splicing vehicle. Over the past few years, the company has added hundreds of hybrid Toyota Priuses, as well as more than 500
The AASP-PA trade show in the East, known as the Big E, will return this fall October 14th through 15th at the Valley Forge Convention Center in King of Prussia, Pennsylvania. The Big E features world renown speakers and trainers all the while bringing together aftermarket parts and product specialists with AASP-PA members. This show fills fast so visit
compressed natural gas vans and 700 hybrid pickups. Verizon is the first communications company to engineer and deploy a hybrid fiber splicing unit. Because of their weight, these vehicles (commonly known as “bucket trucks”) usually consume significant amounts of fuel. To reduce fuel consumption, the company incorporated a hybrid engine and innovative, onboard batteries that assist in the vehicles’ acceleration, and power the bucket lift and lighting units. “We’re replacing less-efficient vehicles with transformational, energyefficient cars and trucks—a move that will have a long-term impact on reducing and improving fuel consumption and reducing pollutants,” said William Roberts, president of Verizon Maryland. “This event is a clear example of what happens when companies are allowed to innovate and deploy different technologies to meet their needs while achieving our shared environmentally positive goals.” Verizon was also the first company in the nation to deploy hybrid pickup trucks on a large scale, in a commercial setting. Last year, Verizon deployed more than 700 of these vehicles and plans 300 more units in 2011.
www.aasp-pa.org to register. Booth space is available at a first come, first serve basis so AASP-PA urges all exhibitors to register as soon as possible. Not only does it guarantee your space at the show but it allows the AASP-PA to publicize the fact that your business will be in attendance. Visit www.aasp-pa.org to sign up now to attend.
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Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
A Day to Reflect—On the Other Side of the Bookstore Counter with Gonzo Weaver
Sometime ago I had my first book signing at a local book store. Steve’s Sundry—Books and Magazines. It’s a landmark bookstore in town. Everyone knows Steve’s place. It’s been in town for more than 60 years. It’s a great place for a large malt at the soda fountain, or to browse around the store to find a good book. I’m not a well known author; I’m a mechanic/technician who wrote a book. I really didn’t think there would be a crowd of potential buyers and admirers at the book signing; I’m not that naive to think I would be bringing in a flood of new customers to the book store. So, instead, I used the time to study the people that came in and out of the store. What a wonderful place, a book store. In the back of the store is an old counter with a bar and several bar stools. The counter, the soda fountains, and the bar stools are all
original 50’s decor. With malt shakes and great sandwiches. You could take the whole day to browse for books while sipping on a shake or coffee. It’s a very pleasant place, nostalgic and modern at the same time. One regular customer sitting at the end of the bar was sipping away on his coffee while texting messages on his Blackberry. On the other end there was an old couple who appeared to be in their 70’s reading the paper and browsing a book or two. I could see this Norman Rockwell painting of them pictured there for probably the last 40 years doing the same thing. My place for the day was at a little table next to the register. A large
stack of my books was neatly spread across the table. People would walk by, glance, and smile. The owner of the store would make short references to my book and try to get people interested in talking to this so called “author” sitting there all solemn and quiet. The register was busy with small book purchases and a few patrons from the bar. Very home spun and relaxing, a lot of ‘hellos’ and “how’s the weather” comments throughout the afternoon. Some people would ask about the football game coming up and others would want to know where a certain book was. All this was going on while I sat there patiently waiting for the clock to roll around to my designated leaving time. Not that I wanted to leave, oh no, I was enjoy-
ing the atmosphere and the quiet nature of the daily workings of the store. That brings me to the thought that crossed my mind. Are these the same people that come to my shop with an attitude and misconceptions of the auto industry? Probably so. I have often wondered if it’s my attitude that brings out the worst in people, but, the whole time I was sitting there I was still the mechanic. I was still the guy they needed to fix their car. However these people didn’t know me as such. I was an unknown author signing books. When someone would ask about my book I would tell them that it was a book about people and the daily happenings at my repair shop. That it was funny, but informative, and you would definitely get something out of it. If you knew a See Day to Reflect, Page 24
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 23
Gas Prices Not Significantly Driving Fuel-Efficient Sales
When gas prices first spiked a few years ago, car industry insiders say there was big demand for more fuelefficient cars. But things are slightly different this time around. New Car Dealers of Utah Executive Director Craig Bickmore says gas prices a few years ago jumped from around $1.50 per gallon to nearly $4. This time, the cost of a gallon of gas started close to $3 before moving up. So, demand for the highly fuel-efficient car isn’t as high in this state as it was previously. Hybrid sales went down from 2.9 percent of new vehicle sales in 2009 to 2.4 percent last year, according to USA Today. Sales of pickups, SUVs, crossovers and minivans went up to 51 percent from 48 percent in the same period. “I think they’re looking at their individual circumstances and making buying decisions based on that rather than on the fact that fuel is up,” Bickmore said. Bickmore says many consumers are sticking with the SUVs and minivans they’re used to.But he’s concerned about a potential ripple effect new efficiency standards may have on manufacturers’ product lines.
CA Suspicious Claims Rise
California has seen a 9 percent increase in suspicious insurance claims since 2008, according to a new report. The National Insurance Crime Bureau (NICB) said questionable claims originating in California and referred to NICB from Jan. 1, 2008, through Dec. 31, 2010, rose from 15,609 in 2008 to 17,082 reported in 2010. Member insurance companies referred 16,274 questionable claims from California to NICB in 2009. Questionable claims are those claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud. A single claim may contain up to seven referral reasons. From 2008-2010, California spawned 20 percent of all of the questionable claims generated in the United States. Within California the top five cities posting the most questionable claims were Los Angeles, San Francisco, San Diego, Sacramento and San Jose. The full report is at: https://www.nicb.org/File%20Library/Public%20Affairs/CA-QCs0810.pdf.
Continued from Page 23
Day to Reflect
person in the auto industry this would make a great gift and they would get a great kick out of reading it too. Well, something like that anyway. Most of the time I would get a disagreeable hmmm in response. Others had that pondering look as if they were going back into their memory trying to find what was so funny about getting the oil changed on their car. And then walk away shaking their head. I didn’t find that in anyway offensive, or disrespectful. I found it to be a logical, and a very intelligent way for a person to state their opinion without saying much at all. I admire folks like this, the ones that can speak their minds without uttering a word. As each and every one of these patrons would checkout at the register they gladly paid for their things and gave a big thank you to the person behind the counter. I never heard one person ever ask “why does this cost so much”, “I think you shouldn’t charge so much for this sandwich”, “I
know a place down the street that can do the same thing for half of what you’re charging.” Now that’s funny, that’s pretty much what I hear every day. What gives? Oh, now don’t get me wrong, it’s not every customer that complains about the prices. I have many, many customers that are eager to pay for my time and service, even a few that think I’m not charging enough for what I do. I even have some that feel the need to leave a tip. It’s those that want to complain and complain and complain that irks me. I have even had some tell me that I should give them the part for what I paid for it. Does the book store give you the book for what they paid for it? Come on people. I wish I knew why it is the way it is, but for some reason perfectly sane people arrive at an auto repair shop and become tyrannical evil forces. Is it the smell of 90 weight oil in the air? Could it be the constant groan of pneumatic tools in the background? I wish I knew. Maybe after I retire I’ll take a job somewhere pleasant. Quiet, reserved, and ever so nostalgic. Yeah. Like a book store.
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24 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
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Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.
Is Your Parts Supplier Purchasing Policy a Benefit or an Expense? with Walter Danalevich
This month let’s take a look at parts ordering considerations that will improve your bottom line. Think for a moment of all your part suppliers both OEM and aftermarket. Do you know what the return parts policy is from each supplier? You should if you want to maximize your business profits. What is their return policy on parts that do not fit? Will they reimburse you for full labor or just the part cost and leave you with a “catch you on the next one” policy? Not too long ago, it was no “big deal” to return parts for credit months later. Some of us may even remember credits issued with certain part suppliers for returns where we did not even produce evidence in the form of an invoice. Well, times have changed considerably when ordering auto body parts. Today we have the option of ordering parts by the traditional voice phone communication or a variety of
electronic options which include fax, text, digital and e-mail. Before ordering parts, Do you know if there is a 1) Maximum part return date 2) Credit for returns for damaged parts 3) Credit for returns on electrical parts 4) Warranty for reconditioned wheels 5) Warranty for off road usage 6) Warranty for CAPA aftermarket parts (like kind & quality) 7) Warranty for Mechanical Parts 8) Warranty for Chrome parts 9) Warranty for New sheet metal rust through 10) Warranty for Non-CAPA aftermarket parts 11) Optional mechanical service warranty Agreement 12) Transferable warranty to a nonoriginal owner 13) Policy for compensation to shop
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for wrong parts received 14) Fee for shipping cost on special order parts 15) Restocking fee after 30 Days
Having answers to the above parts ordering warranty concerns will assure you maintain and improve your parts department profit margins. For example, recently our auto body shop in Santa Barbara, California had a very positive parts warranty experience involving our aftermarket parts supplier. Our repair shop had customer approval to proceed with repairs to their 2010 Honda Civic. Their insurance company, to my complete surprise, stipulated in the repair estimate the use of an aftermarket fender and front bumper. I questioned the insurance company adjuster to make sure there was no mistake on their proposed estimate for such a new vehicle. The Insurance adjuster replied the insured’s policy stipulates using aftermarket parts when available in exchange for a lower annual policy premium. Upon hearing this news I decided not to make a fuss and proceeded with repairs. All appeared well until the car bumper was installed. After the body tech installed the bumper it was quite obvious there was a “quality of fit” problem. The bumper end did not meet the attachment point of the after-
market left fender. Additionally, there were noticeable one-inch gaps in front of both headlamps. How Sweet!!! I immediately addressed the issue with our aftermarket supplier who referred me to the district manager. The district parts manager asked me to take a few digital pictures of the misfit and send them to him to forward onto the manufacturer. Within 24 hours he authorized the aftermarket parts manufacturer to pay 100% of all the body & paint labor, including paint supplies. We then reported the potential catastrophe to the insurance company who authorized us to install an OEM bumper. We proceeded with completing the repairs. A couple of weeks later we received payment in full for $653.93 from the aftermarket parts supplier. The insurance company even commented on how well we handled potential part warranty replacement crisis. This could have turned ugly if we choose to involve a less reputable aftermarket part supplier whose warranty did not conform to full reimbursement for parts and labor. By choosing carefully your suppliers part sales warranty, you will experience increased productivity and retained shop profits. May you all receive many “PERFECT FITTING PARTS” and added income to your bottom line!
FL Jury Rules State Farm Driver Owed $3 Million
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A middle school teacher in Florida has been award $3 million in damages after a jury found State Farm refused to live up to its contract on a 2008 car accident, according to reports made by Insurance Journal. David Bowler sued State Farm for damages and medical costs after suffering a fractured neck and wrist in a Leigh High Acres, Fla., accident. The other driver in the crash, Randall Spivey reportedly had $25,000 in insurance coverage. But the lawsuit claimed that Bowler had over $2 million in uninsured motorist coverage that State Farm subsequently refused to pay. State Farm said it was willing to negotiate a settlement for a lesser amount, but Bowler refused
the offer and the insurer refused to pay. After a Lee County trial that lasted four days, the jury ruled that State Farm had an obligation to pay Bowler for nearly $3 million for medical costs and pain and suffering stemming from the accident. In Florida, all motorists are required to carry uninsured motorist coverage to insure against bodily injury and property damage.
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Painting with Waterborne at John Force Racing by Paul Stoll, PPG Trainer
Robert won NHRA’s 2011 Winternationals. Proving PPG Envirobase High Performance is not only Fast in the paint shop but also Fast on the track
John Force Racing drivers have won the last five National Hot Rod Association (NHRA) events, dating back into late 2010. You don’t do that with-
out some body damage to your Ford Mustang Fuel Funny Cars. John Force Racing has been using PPG’s Envirobase® High Per-
formance waterborne basecoat on their cars for two years now. Envirobase® HP is very easy to use and repair, something that the paint team has the opportunity to do on more than one occasion—when things go bad on the racetrack. PPG waterborne basecoat dries to a thinner film than conventional solvent basecoats, helping the team keep the Ford Mustang bodies light. And PPG’s Envirobase® HP waterborne paint has helped John Force Racing go green. I had the opportunity to go to the team’s Brownsburg, Indiana shop earlier this winter and spend four days helping paint the Ford Mustang bodies for 2011. I worked with Dean Antonelli, one of John Force’s crew chiefs and general manager of the Brownsburg facility. Paint shop manager and graphic designer Brandon Baker, painter Dave Gregory and Jesse Knox were all part of the team.
Creating Robert Hight’s 2011 Ford Mustang Body Last year’s carbon fiber bodies are stripped of the PPG clearcoat and
most of the basecoat too, to keep the weight down. We used a PPG citrusbased paint remover for various reasons: first to be safe over the carbon fiber; second, it’s a green product that’s safe for the environment; and finally, the water-based stripper
White covered up with transfer tape
works better than the caustic type paint removers traditionally used. Envirobase® HP is a latex resin basecoat that is very flexible and resists solvents and chemicals. The paint that is not removed, as well as the exposed carbon fiber, are then sanded with 400 grit dry sandpaper. Sanding carbon fiber will expose the
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Spot primed and sanded Mustang Body ready to move in to booth to spray PPG EHP Silver Metallic base coat
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With the first color sprayed and Dry for 30 minutes Brandon and Dave begin the masking process
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26 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
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fibers, so sanding is kept to a minimum. Areas that require a body filler and any fuzzy carbon fiber exposed from over sanding are sprayed with PPG’s ECP A-Chromatic Surfacer. After drying, we sanded with 400 grit dry sandpaper, and finished with 600 grit. Envirobase® HP basecoats should be sprayed over a 600 grit (or finer) scratch because of the thinner film build. A sealer could be used to fill sand scratches, but on these cars, sealer is left off to help keep the weight to a minimum. The Mustang body is now blown off and cleaned with PPG’s OneChoice® H2O-So-Clean waterborne cleaner. This evaporates quicker and pulls the sanding dust from the sanding scratches much better then solvent cleaner, leaving a nice surface that is ready to paint. Since we are working on a carbon fiber body, we do not get any static when wiping the body. The first color to go down will be a metallic silver. I spray three coats just in the area where we will mask off the silver with ½-inch tape for Brandon’s design. I use an Iwata LPH400 gun with a gold air cap. I let the metal-
1st coat of PPG EHP Blue water base coat
Body unmasked, tacked, ready for Clear Coat
2 coats of PPG EHP Blue. White unmasked
1 Double coat of PPG ECS 700 Clear
lic silver dry between coats, which takes only five minutes thanks to the TurboAir Drying System® installed in JFR’s booth. Air movement is what makes waterborne paint dry fast, and the TurboAir unit is a turbine blower that does the job quickly—speed is re-
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quired at John Force Racing. After a 30-minute dry time in the booth, masking begins. We use a plastic/vinyl masking tape like FBS. Brandon also uses his computer skills to cut out a paint mask to aid in speeding up the process and, more importantly, to keep all the designs the same on all the John Force Racing Mustangs. The area of the car that will be blue is covered with plastic, so as to not add excess paint and weight to the car. The white stripes are sprayed next. Two coats of Envirobase® HP T400 white toner are sprayed, with five minutes dry time between coats and a 30-minute dry time before we’re ready for the blue. The white basecoat covers twice as fast as solvent, so this step goes quickly and weighs less due to fewer coats of paint. This also helps keep edges between colors much smoother. We mask off the white with a transfer paper that Brandon uses to transfer the vinyl decals he puts on the car. Again, this is faster than tape and paper. I am back in the booth, and I spray two coats of ‘AAA of Southern California’ blue. The Envirobase® HP formula covers quickly, and with the TurboAir blowing, I am ready for the
PPG EHP finished cars getting sponsors logos
second coat as soon as I can reload the paint gun. In just half an hour, I am ready to clean up and we are unmasking. We had a couple of small blow throughs on the first car—easily fixed. A quick mask of the blue and re-spray a little silver. The second car was perfect, no blow throughs. I blew the body off and tacked it with a PPG tack rag. Dave then stepped in and sprayed a double coat of PPG EC700 Production Clearcoat. While custom, multiple-color paint jobs are not considered to be very productive, with the tools at John Force Racing and the speed of the Envirobase® HP basecoats, we where able to spray a body a day while I was visiting. The last part of the job was applying sponsors’ logos on the cars, which I left in the experienced hands of Brandon.
Paul Stoll is a PPG Trainer, who, among his many duties, teaches custom painting classes at PPG training centers across the country. Classes include training using Envirobase® High Performance basecoats in custom paint jobs. When not traveling, Stoll can be found at the PPG training center in Rancho Cucamonga, Calif., (909) 987-0924.
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www.autobodynews.com | MAY 2011 AUTOBODY NEWS 27
Continued from Page 1
SCRS Achievement Awards
in our heart that makes us to things, for the right reason. This year’s winners embody the meaning of both these words.” Below is a summary of this year’s awards, their recipients, and the achievement being recognized. Affiliate Association Award: The Houston Autobody Association (HABA) The Affiliate Association Award recognizes an SCRS affiliate that exhibits exemplary actions on behalf of the collision repair professional. The recipient of this year’s award was selected based on the volume of feedback from SCRS’ other affiliate associations as the Houston Auto Body Association mixed their vigor for advancing their market with some out-of-the-box thinking to achieve greater transparency in their state’s claims settlement practices. Working with the Texas Insurance Department, and solicited participation from the entire market, they facilitated a documented survey of carrier practices and made them available to the public. The initiative’s success sparked interest from our other associations interested in creating greater transparency in their own areas toward the ultimate goal of improved understanding of the carriers’ processes in a non-legislativeway that brought benefit to all repairers. “It is such an honor to receive this Award from such a great organization such as SCRS. I am amazed that even though we are relatively few in number that we have been able to accomplish a great deal. I am so thankfull for all those who have worked so hard in the Association to bring about success in our efforts that has sparked national attention,” said HABA’s President James Brown, “This recognition should serve as a source of encouragement to all of us and spur other Collision Shops who have not joined in our cause, to do so.”
Humanitarian Award: Toby Chess This award recognizes an individual or group within the industry whose efforts advance the industry through support of humanitarian activities in their community outside the industry. As one of the industry’s premiere instructors, Toby Chess has a long history of providing enlightening infor-
mation in an entertaining, thought-provoking way. In all that time, he has never lost sight of the individual’s role in the community and the ability one person has to make a difference for those who need it most. Toby spent much of 2010 travelling the nation, educating first responders on the technological advancements in today’s vehicles and delivering the knowledge they need to respond to emergency situations quickly and efficiently, in order to keep themselves and vehicle occupants safe. Toby’s community service didn’t stop there. During the holidays he led a team of “Santa’s helpers” to donate toys and gifts to families of U.S. Marines. These presents included over 100 new bicycles, four SUVs, a 12passenger van, two cars and a giant box truck filled to the brim with toys. “Toby truly leads by example,” noted SCRS Past Chairman Gary Wano. “We thank him for his generous spirit and his dedication to helping those less fortunate.”
Regional Lifetime Achievement Award: Eddie Kitzenberger For decades Ed Kitzenberger has worked on behalf of the collision repair industry in his native New York. He founded the New York State Auto Collision Technicians Association and the Long Island Auto Body Repairers Association, and serves as executive director for both. In addition, the Northeast Leadership Meeting would not exist without his influential involvement. He has broken significant barriers regarding legislation at his state capital by showing lawmakers that the collision repair industry is not afraid to voice its opinion and stand up for itself. He has never hesitated to assist other states or associations when a helping hand is needed. “Ed is never shy to roll up his sleeves to display the leadership and creativity necessary to succeed,” said SCRS Immediate Past Chairman Barry Dorn. “He stands up for the rights of the consumer and repairer because it is the right thing to do; he doesn’t take ‘no,’ for an answer. I have learned a lot from him, as has our membership and the industry. He’s an invaluable resource.” Special Recognition: Greg Coccaro There are years in which SCRS finds individuals deserving of recognition, yet are hard to fit into a specific cate-
28 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
gory. In those cases, SCRS presents a “Special Recognition.” While we all strive to live honestly, lead by example, and like to think we would do the right thing in the face of adversity, Greg Coccaro has proven over the past year that he does. In the past year his character has been put to strenuous test, and he has come through-despite some significant struggles-placing his personal and professional integrity at the forefront of his life’s decisions. Where the less steadfast would have faltered, Greg wasn’t afraid to put it all on the line. For his dedication and tenacity of spirit SCRS acknowledged him with this very special award. Collectively this year’s award recipients, through a variety of accomplishments, represent the best of the best that the collision repair industry has to offer. “It’s satisfying to be able to devote this night to those individuals who set a positive tone for our profession and serve as an inspiration for us as we move forward,” added SCRS Chairman Aaron Clark. “Their enthusiasm for the industry is infectious, and as a result they motivate us to give our best as well.”
Collision Industry Non-Individual Service Award: Collision Hub This award recognizes contributions to the collision repair industry that originate at a corporate or company level. Collision Hub has served as a catalyst for the explosion of inter-industry dialog upon the national scene. A premier professional networking site for the collision repair industry that deploys a suite of modern communications technologies, including live Web broadcasts of industry meetings, Collision Hub has been extremely effective at helping associations like SCRS expand their message to a greater audience. Collision Hub, and its founder Kristen Felder, are prime examples of service to the industry. In addition to the recognition of individual acheivments, SCRS was fortunate to also honor and thank those that make the association’s efforts throughout the year possible. As a token of appreciation, SCRS provided its long list of Corporate Members with a specific mention of gratitude and a commemorative display to recognize the ongoing support received by these corporations.
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Toyota Wins New York Case over Unintended Acceleration
A federal jury found that Toyota Motor Corp. isn’t responsible for a 2005 crash that the driver blamed on the floor mat or the electronic throttle, in the first case to go to trial since automaker recalled millions of its vehicles, according to reports made by Claims Journal. After 45 minutes of deliberation April 1, the jury found Toyota was not liable for product liability for the Scion’s floor mat or for the absence of a system that allows the brake to override the accelerator when both are pressed. The car’s driver, 59-year-old Long Island physician Amir Sitafalwala, contended that defects in the electronic throttle system or the floor mats caused him to suddenly accelerate and crash into a tree. U.S. Magistrate Judge E. Thomas Boyle ruled out evidence about the car’s electronics earlier this month. Sitafalwala’s 2008 lawsuit was the first to go to trial since Toyota recalled millions of vehicles beginning in 2009. In a written statement, Toyota
called the verdict an “early indicator of the strength of the legal theories behind unintended acceleration claims” against it. “We believe that this case sets an important benchmark for unintended acceleration litigation against Toyota across this country,” the statement said. Toyota has recalled more than 14 million vehicles globally to fix gas pedals and other safety problems, including more than 2 million that were recalled in February to address accelerator pedals that could become entrapped in floor mats or jammed in driver’s side carpeting. The company paid the U.S. government a record $48.8 million in fines for its handling of three recalls. U.S. regulators said earlier this month that electronic flaws were not to blame for reports of sudden, unintended acceleration. Hundreds of claims from around the U.S. related to the recalls have been consolidated under one judge in a U.S. District Court in California.
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Honda Pushes Natural Gas Civic Alternative to E-Cars
Honda is making a push to improve sales of its compressed natural gas powered Civic. Honda cautiously introduced the Civic GX first to government and business fleet owners and then retail customers in a handful of test markets. The nationwide retail launch set for this fall comes as President Obama pushes for wider adoption of fuel-efficient vehicles, including mandating that all federal cars will need to run on alternative, hybrid or electric power by 2015. Potential customers could also be lured by substantial cost savings as oil prices climb and natural gas prices fall in the wake of major newgas discoveries in the United States. The Civic GX enters a crowded field where new plug-in hybrid and fully electric cars such as the Chevy Volt and Nissan Leaf dominate the press and new compact cars offer competitive fuel economy. Honda’s goals are relatively modest -- doubling sales to around 4,000 vehicles in the first year of national sales while Nissan is hoping to hit annual US sales of 20,000 Leafs -- but it still thinks the GX can compete. “We’re asking the GX purchaser to make far fewer sacrifices than any other alternative fuel vehicle,” Eric Rosen-
Ford’s CEO Mulally Says Suppliers Accomodating
Ford CEO Alan Mulally said April 13 that Ford is working with suppliers to minimize the North American production impact of Japanese parts shortages caused by last month’s earthquake and tsunami. The only impact on Ford in North America to date has been limiting vehicle orders in certain paint colors because of interruptions to Japan-supplied paint products. Mulally said Ford has shifted parts from slower-selling to hot-selling vehicles, used scheduled vacation downtime early and taken other actions to keep North American production from being disrupted. He counseled patience to Lincoln brand dealers, asking them to give increased product spending time to yield a broader vehicle lineup in the coming years. Some Lincoln dealers are upset that Ford is pushing them to improve their facilities and begin offering perks such as free car washes and loaner vehicles when the brand’s product lineup is limited.
berg, who heads Honda’s alternative fuel vehicle program in the United States. “When you compare it to the Volt or Leaf, it’s the most affordable, it has the best range and it has the quickest refill.” The GX can drive up to 250 miles (403 kilometers) on a single tank and only takes a few minutes to fill at public or home fueling station. The Leaf has a range of 62 to 138 miles (100 to 222 kilometers) depending on road conditions and takes 30 minutes to partially charge at a quickcharge station and seven to 20 hours using a standard 220 or 110 volt outlet. GM’s Volt can drive 25 to 50 miles (40 to 80 kilometers) on its battery before switching over to a gasoline-powered engine and takes four to ten hours to charge. Honda’s GX is also the cleanest car on the US market, according to the American Council for an Energy-Efficient Economy which looks at a vehicle’s total environmental impact. That’s because natural gas is a clean-burning fuel. It consists primarily of methane and emits about 30 percent less carbon dioxide and 70-90 percent less smog-forming particulates than gasoline.
NHTSA to Review Claim Corolla Air Bag Failed
The National Highway Traffic Safety Administration has agreed to review a petition claiming the frontal air bag of a 2008 Toyota Corolla failed to deploy during a crash. The agency said in a statement on its website that it received a petition that “the frontal air bags in their MY 2008 Corolla failed to deploy during a 55-mph frontal impact with a large animal (a deer). During this crash, neither the driver nor front passenger was seriously injured in the incident.”
Feds Open Probes of Imprezas and Sorrentos
Federal regulators have opened two new auto safety investigations into Subaru Impreza and Kia Sorento vehicles. The National Highway Traffic Safety Administration said it opened an investigation into 50,000 2011 Kia Sorento SUVs. NHTSA said it has received four complaints alleging a loss of power because of a sudden failure of a transmission intermediate driveshaft. Another five complaints allege a loss of power because of transmission failure that could be related to a driveshaft failure.
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 29
Shop Showcase
Shop Showcase stories feature shop owners who are making a difference in the industry. Contact us at editor@autobodynews.com to tell your story. Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
California Shop Owner Endorses Shop Education and Training with Ed Attanasio
Shawn Saidi, 48, owns Active Auto Body in Sunnyvale, Calif., a highly successful shop whose motto is “Making Friends by Accident.” It might be a catchy slogan, but Saidi has succeeded in the collision industry not by chance or by accident. He’s the current president of the California Autobody Association’s (CAA) Santa Clara chapter, and has enthusiastically embraced the leadership role, because he wants to make this industry better and help other shops in the process.
and meet all our deadlines. We’ll give it back to the customer better than what they were expecting.” After retiring from a successful career in the printing industry, Saidi went into collision repair and opened Active Auto Body in 2002, creating a dream and a new era for his wife Lisa and himself. “We found a location in Mountain View and we figured let’s give it a shot and it and see how it goes. We were there for five years, then we moved to this larger facility in Sunnyvale. We’ve been growing every year, even in this tight economy. Some of the credit goes to our new location. Our former facility was in a ‘body shop row’ area, but now we’re in a nicer part of Sunnyvale. We got the zoning changed in this area. There weren’t any Shawn Saidi and his wife Lisa have operated Active Auto body shops around here. It Body since 2002. This year, Saidi became the president on was zoned for R&D warethe CAA’s Santa Clara chapter houses, but no automotive. Everyone said it’s not going to work Active Auto Body is located in a 13,300 square-foot facility. They fix and we were really worried, but the 75–90 vehicles monthly and have two old customers came back and they say DRP relationships, from which the they like this new location much company derives approximately 25% more.” off their total business. Saidi works Saidi appreciates the two DRPs alongside his wife Lisa, who handles he has, but he’s also happy that they payroll and human resources. The make up just one quarter of his busishop employs 13 people, including ness, saying: “It’s tough, because you Saidi’s niece Desiree, who works partwant them, but you don’t want them, time as a receptionist. if you know what I mean? Some of Saidi’s journey into collision rethem want you to do things that aren’t pair began with his passion for restorright, and those are the ones I have ising classic cars. “I was relying on sues with. Of the two DRPs we have body shops to do the body and the right now, one of them is awesome paint on these older cars, after I had and the other one wants to have a litdone all of the mechanical work,” he tle more control. We try to keep the told Autobody News. customer informed, because in the end “But, I was running into probthe person we want to make happy is lems with the body shops, because the customer. If aftermarket parts are they would tell me ‘three months’ and being put on their car, we let them the car would still be sitting there a know. We tell them that we prefer to year or more later. Then when I got put factory parts on their car, but we the cars back, the work wasn’t right, have to go with what’s in their policy. so I would basically lose interest in the Our hands are tied in that situation.” vehicle and just eventually sell it. It Why did Saidi join the CAA? was very frustrating because it kept “As an outsider looking in, I needed happening over and over. I told my to learn as much as I could about this wife that if I ever go into business for industry fast,” he said. “There are two myself, I’m going to get a body shop, ways to do it—go knock on other and I’ll make sure we do the job right body shops’ doors and start asking
30 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
questions, or join an organization like the CAA. When I first saw the CAA’s motto, Integrity, Honesty and Craftsmanship, I thought I want to be a part of that. Everyone has been absolutely
Active Auto Body is increasing its car count every year, even in recessionary times
great—from the Board of Directors all the way to each and every member. I can go in there and ask them questions like what type of paint booth should I use? What kind of spray guns should I use? How do you control your qual-
ity? These people are my competitors, but they’re more than willing to help me in any way they can.” One of the top concerns of the CAA’s membership involves finding properly trained techs that can carry this industry into the next decade and beyond. “There’s definitely a shortage of good, skilled techs out there. So right now, we’re talking to I-CAR. We’re pleased to see that their curriculum has gotten better and they’ve added more classes. We’re also working in conjunction with Bay Area high schools and junior colleges specifically to get auto body classes in their schools. That way, students can have a head start when they try to pursue this career. We feel that through education, we can get better, hirable techs.” Another issue the CAA is very interested in is the current state of insurance labor rate surveys, Saidi said.
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“This is still a problem, and we’re working on it. We want to know how they come up with some of these num-
bers, because we can’t figure them out. Right now, California is waiting to see
what (our new) Governor Jerry Brown will do, so that we can try to get some type of response. It’s still a huge problem and we want to resolve it.” Steering by certain insurance companies is still also an industrywide problem, Saidi explained. “Oh yes, we still encounter it quite a bit. It occurs when customers want to bring their car here, but the insurance companies tell them, ‘you have to take your car to one of our preferred body shops for the estimate.’ They give them no options. In many cases, the customer has already brought their car to us and we’re in the process of discussing the job with them. This kind of thing makes it so much harder to
get the business and it is definitely (illegal) steering.” Saidi also does a considerable amount of work for customers who don’t want to go through their insurance companies. “We get them in and out quickly, because we value this kind of customer. We’ve learned that these types of jobs can bring us more work than the insurance companies can, through referrals and word of mouth, because it goes a long way.” At the end of the year, Saidi’s term as the CAA Santa Clara Chapter President will expire, so does he have any plans to seek higher office within the organization? “I’ve considered it,” he said.
“When I was at the recent CAA Board of Directors meeting in Sacramento, I started asking myself, what can I do after my term is over? I’ll definitely stay involved in some capacity, one way or another. If I want to go to the state level—fine. Either way, I’ll be working with the CAA, just to make sure that I’m one step ahead of the game, by knowing what’s going on out there. We need our message heard, because the insurance companies have a lot of money and they’re talking to each other all the time. If we only have 100 auto body shops working together, we’re surely not going to overpower them. That’s why we need more members to keep our voices heard.”
The Georgia Collision Industry Association (GCIA) will again conduct a labor rates survey for body shops in the Atlanta area. The purpose of this survey is to provide Georgia collision shop owners with prevailing rates for labor and material charges so all shops can be paid fairly for work performed.
CSi Complete is conducting the survey as a third party. Go to http://www.csicomplete.com/gcia/survey.aspx to complete the survey. Labor rates surveys are a valuable tool for body shops in any area. They help to determine the fair and prevailing rate for work done at a collision shop in a variety of areas including
metalwork, refinishing, painting, etc. They are also an invaluable tool when it comes to Direct Repair Program payment negotiations. Associations in many areas attempt to conduct annual labor rates surveys to keep track of the industry average for posted door rates. Although many insurers conduct
labor rates surveys of their own, the associations usually follow up with their own surveys to make sure the correct average rate is agreed upon.
Painter Javier Espinosa paints roughly 80 cars per month for the growing body shop
Georgia Collision Association’s Labor Rates Survey
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Insurers Will Continue to Serve “Flavor of the Day” to Shops with The Insurance Insider
you guess what the exception is? The Insider offers an unvarnished look at various issues impacting the Okay, it’s actually not just one thing. It collision industry from an insurers’ can be summarized in four words: flawith Chasidy Rae vor Sisk of the day. perspective. Similar to the ice cream shop in In past columns I have explored many your neighborhood, insurance compadifferent perspectives on the value of nies regularly serve shops a flavor of direct repair programs. I believe most the day (or week or month). Insurance DRPs provide value to the vehicle companies have a set of guidelines that owner as well as the shop, although shop must agree to in order to particwith Chasidy Rae aSisk based upon the responses I’ve received ipate in their program. These guidefrom readers, there are a lot of people lines are in writing and allow a shop who disagree with my position. owner to decide whether or not the pro-
Northeast News Shop Showcase
But from my perspective, most vehicle owners reap tremendous value from DRPs. DRPs have raised the bar for body shops; it forces them to provide exemplary customer service and high quality repairs. They also need to continually train their staff and invest in equipment otherwise risk being left behind as technology evolves. As a result, insurance companies don’t want to do business with every shop in the countryand they shouldn’t. They should want the best-in-class repairing their policyholders’ vehicles. But there is one reason why the current DRP models sucks, regardless of insurance carrier. This exception provides absolutely no value to the shopalthough it does provide a lot of value to the insurance company. Can
gram is of value to them. I cautiously use the word guidelines because the literal translation is “concessions.” While I don’t agree with concessions, at least they are in writing. It allows the shop owner to make a business decision as to whether or not the concessions are worth the potential additional work. Unlike the guidelines, however, the “flavor of the day” isn’t in writing. Unlike in the ice cream shop, it isn’t posted or advertised. And it sure the heck doesn’t taste good. What I’m talking about is parts usage, paint labor hours, cycle time, repair times, rental car days and the like…whatever it is that the insurer decides that today is most important to them. There are enough flavors of the day to make Baskin Robbins jealous.
32 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
And unfortunately, sometimes these unwritten rules are weighted more heavily by the insurer than the written ones. Shops are routinely eliminated from a DRP for not adhering to everything that they never agreed to adhere to in writing. Sound fair? Not really. What can a shop do? You can say noand jeopardize your relationship with that carrier. Fair? Not at all. This is what we refer to in the U.S. as the 500-pound gorilla or the bully on the playground. How do these flavors of the day occur? Are they handed down from the insurer’s corporate headquarters? In most instances, no. It’s something that is usually a result of a local or regional claim office. Management in these offices have the autonomy to do whatever is necessary to meet their budgets. Thus the “flavor of the day.” Local or regional management analyzes data and identifies trends while
trying to figure out what number can be manipulated to give them the result they desire. That’s why the flavor is always different and ever-changing. Shops need to find a way to work within the system because you aren’t going to beat it. I’m not encouraging anyone to give into whatever the insurance company wants. Nor am I encouraging fraud. I am encouraging you to play the game. Continue to write complete, consistent estimates. Perform the work you write on the estimate. Document everything. As you know, the flavor of the day changes routinely. If you can hold out for a day or a week, something else will be a priority and today’s flavor can quickly become yesterday’s old ice cream. You can’t change the flavor but you can change what you do and how you react.
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 33
Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Getting OSHA-Compliant on Plans, Protection and Painting with Toby Chess
As I promised in last month’s article, program elements as well as manageI have put together a checklist to help ment of hazard specific to your shop. you get ready for an OSHA inspecA written plan which describes tion. This a not a complete checklist training, labeling, Material Safety and you will probably need some outData Sheet (MSDS) management and side help to help you achieve total other requirements of “Right-tocompliance, but it will help you have Know” must be in place. A good start a better understanding of what is for you and your employees is Iwith David McClune needed to get your facility ready for CAR’s 4-hour WKR 01 (Hazardous an inspection. Materials, Personal Safety, and RefinYou can also call your state ish Safety) class. The class deals with agency and they will come out a give MSDS sheets, personal protection you a courtesy inspection. All violaequipment and a number of hazards tions will need to be corrected, but that are common in the body shop. there is no fine/ticket issued at the A couple of other items that you time of inspection. You should know may want to incorporate into your plan. that they will return to check if the violations have been corrected and you ● A written procedure for handling inwill be on theirwith radar John screen. Yoswick I will house employee complaints regarding need another article to complete this safety and health. checklist, so stay tuned next month. ● An incentive program for reducing To see the OSHA standards, go to work place injuries Google.com and type in 29CFR 1910. ● A formal disciplinary policy relat38. This is the official OSHA web site. ing to safety. I know one shop that will First off, do you have 10 or more write up techs who do not wear their employees? If ‘yes,’ you will need a safety glasses. Second time is a one written Emergency Contingency Plan. day suspension, third write up is 3-day I took this description from the OSHA suspension, and the fourth write up is Manual: termination. Do you have all your current and 1910.38(b) Written and oral with Richard Steffen past MSDS sheets? Are they in a conemergency plans. An emergency action plan must be in writing, kept in spicuous location? Did you know that you must retain all MSDS sheets for the workplace, and available to employees for review. However, employer 30 years after product is no longer being used? After the evacuation plan, with 10 or fewer employees may comthis is a big ticket item with OSHA inmunicate the plan orally to employees. spectors. You can obtain them from An example of an Emergency Exit Plan your jobber, manufacturer’s reps and on-line.
and paint suit. He is being exposed to isocyanates and doesn’t know it. Who is responsible for the Personal Protective Equipment (I will refer to it a PPE) and its use? Well, the employer is responsible for providing the equipment and the training in using it and the employee is responsible for actually using it.
California Autobody Association
Respirators: ● A respirator fit test is requires yearly (29 CFR 1910.134).
● Respirators must be placed a sealed container when not in use (29 CFR 1910.134) ● A program in place for training and proper use of respirators. ● The type of respirator used for specific products will be found in the Preventative Measures of the MSDS sheets. ● Respirator cartridges need to be replaced on a regular basis. 3M P100 cartridges need to be replacing after 40 hours of use or 30 days, whichever comes first. Here are some common questions that are asked about PPE: ● Are approved safety glasses required to be worn at all times in areas where there is a risk of eye injury? ● Are protective goggles provided and worn where there is any danger of flying particles and harmful vapors (isocyanates for example)?
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The refinish tech is mixing paint with no eye protection, gloves, respirator,
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34 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
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● Are protective gloves issued for various toxic exposures? (Again, you can look in the Preventative Measures of the MSDS sheets for specific type of gloves that are necessary for a particular product). ● Do you have an eye-wash station and it is properly maintained? ● Is protective clothing supplied for painting (paint suit for protection against overspray and isocyanates) and welding (jackets and gloves)? ● Is proper hearing protection equipment furnished? Here is an example of an ear muff.
What Gets Most Scrutiny from OSHA? The area that receives the most attention during an OSHA inspection is the paint department. Let’s look at some
of the problem areas that need your attention. The painter is first on my list.
Photo courtesy of SATA spray equipment
All painters should be wearing a paint suit, glove and utilize a fresh-air system. I think that the fresh air system incorporates goggles and respirator into one system. Your painter can wear a half-mask fresh air system or a respirator, but must also wear goggles if used instead of the full fresh air system. (Did you know that the fastest route for hazardous materials to get into the blood stream is through the eyes?) You will also need a CO monitor if you use shop-supplied air. There are systems that use electric pumps that produce no carbon monoxide, oil vapors, or oil mist. The only drawback Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!
is that the painter will need a separate air hose (The SATA unit pictured utilizes one hose. You plug your air line into a unit on a supplied belt and a small hose comes off the unit to the CO monitor and then delivers fresh air to the helmet.) I ask the same questions every time I conduct I-CAR’s WKR 01 class to refinish technicians and helpers. Do you mix paint? Do you clean the guns? When they answer ‘yes,’ I ask them if they wear goggles, respirators, paint suits, and gloves when they perform both task. The majority answer that comes back is they ‘only wear gloves.’ Isocycantes are present in all three operations: mixing, painting, and cleaning. The appropriate PPE must be worn at all times. You need to enforce this rule or you are setting yourself up for a lawsuit. Be forewarned. Here are some other areas in the paint department that need your attention. ● All containers need to have a workplace label. If you mix paint for the day, it is not necessary, but if the paint is not used that day, it will need a label. A piece of masking tape with the paint code is not sufficient.
fire extinguishers in the next article). ● All solvent wastes and flammable liquids must be kept in fire-resistant, covered containers when not in use.
● All hazardous liquids must have a spill containment system
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This is a disaster in the making. e-mail: ● advertising@autobodynews.com All metal flammable containers must be grounded ● www.autobodynews.com A fire extinguisher must be within 10 feet of any inside storage area of flammable liquids (More on
● No smoking signs must be posted in areas of flammable liquid storage ● Paint mixing rooms/areas must publisher@au have explosion proof lights. There are many companies that have these materials (Grainger is an example). Craig Oliveira of Kent Automotive gave me his parent company’s (Lawson Products) Safety Catalogue and I found it tofor be timely exThe source tremely helpful in getting all the ininformation that every formation and products necessary to body shop be in OSHA compliance. It isneeds! free— check with your local Kent AutomoCALL or 800-699-8251 tive Representative other reputable source. NextStart month’s articleFREE will Your focus on the rest of the shop. Stay Mail Subscription. safe.
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Autobody News Website www.autobodynews.com www.autobodynews.com | MAY 2011 AUTOBODY NEWS 35
Hybrids & Electrics Growth Outpaces General Vehicles
The Detroit News is reporting that U.S. sales of hybrid and electric cars rose nearly twice as fast in the first three months of 2011 as the market, according to research firm Edmunds.com. Bolstered by rising gas prices, gaselectric hybrid and electric car sales increased 37 percent in the first quarter to 78,523 vehicles, Edmunds said. Toyota Motor Corp. accounted for more than two-thirds of the total, but the biggest sales gains were recorded by Honda Motor Co., Germany’s BMW AG and General Motors Co., which rolled out the Chevrolet Volt extendedrange electric car late last year. During the first quarter, sales of vehicles with conventional powertrains rose 20 percent. In the budding hybrid and electric vehicle market, Toyota led with 54,609 vehicle sales, up 37 percent. Sales of its flagship gas-electric Prius car rose more than 50 percent. Honda moved into second place after boosting sales 84 percent to 11,354 vehicles, followed by Ford, which recorded a 9 percent rise to 7,704 advanced technology vehicles. Not all hybrids are winners, though, Edmunds
Toyota Warns Dealers that Inventory Could be Short
Toyota is telling U.S. dealers that new vehicles could be in short supply this summer because of production slowdowns in Japan and North America. In a memo to dealers, Toyota’s U.S. general manager Bob Carter said Toyota is producing cars and trucks at reduced levels in April and hasn’t set its production schedule for May through July. Production has been hampered by parts shortages after suppliers were damaged by the March 11 earthquake and tsunami in Japan. cautioned. Sales of Toyota’s premium Lexus HS 250h car declined nearly 80 percent. Americans bought smaller cars and SUVs in March. The trends lifted U.S. sales of new vehicles by 17 percent from a year earlier to 1.25 million, a rate that shows the auto industry’s slow and steady recovery remains on track. The monthly sales pace, adjusted for seasonal differences and projected out for the year, came in at 13.1 million. That’s up from last year, but still far below years when car sales hit 16 million a year.
Collision Hub Launches Repair University
Collision Hub April 18 announces the launch of Repair University, a LIVE educational video series for the collision repairer and insurer, Powered By Chief Automotive Technologies. The first LIVE episode in the 2011 series, Facility Verification & Quality Processes: What It Means to You, will air May 4th at 9:00 AM PST on CollisionHub.com and will feature Mark Olsen of VeriFacts Automotive. The episode will explore “Exposing Your Greatness in Collision Repair”. By the end of this class you will have a better understanding of how minor changes can have a tremendous overall impact on your daily operations. We will cover how internal processes can effect cycle time, profitability and quality. Most importantly, we will cover the benefits of shop verification and the impact that has on your customer, both insurance companies and vehicle owner. With today’s informed customers, this is a MUST attend class. “With the invaluable resources provided by VeriFacts Automotive and the continuing support of Chief Automotive Technologies, Collision Hub is thrilled at the opportunity to provide ongoing educational resources to the collision repair indus-
try as a whole,” said Collision Hub founder and CEO Kristen Felder.
About VeriFacts Automotive Committed to ensuring that collision repairers have the correct information and skills necessary to repair today's diverse and complex vehicles, VeriFacts is recognized as one of the industry's only on-site, hands-on coaching and quality assessment solutions available to collision repair and claims professionals. VeriFacts' repair methodologies, technical competency and professional integrity position it to provide a wide array of valuable services to the collision repair, insurance and manufacturing communities.
About Collision Hub Collision Hub is the premier networking and multi-media marketing website created for the Collision Repair Industry. Collision Hub’s mission is to provide a central network for all participants in collision repair and related industries. The site encourages participation of all parties including: technicians, shop owners, suppliers, insurance companies, auto glass installers, towing companies and rental car agencies. For more information, visit www.collisionhub.com or contact Elizabeth Blackman at Elizabeth@collisionhub.com.
36 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
Ford Surpasses GM in March Monthly Auto Sales
For only the second time since 1998 (the other time was February 2010), Ford surpassed General Motors in total U.S. monthly auto sales. Despite gasoline costs being up 17% since the beginning of the year, truck sales continue to be strong, with Ford seeing truck sales up 24.3% during the month and up 21.7% year to date. For GM, the Silverado saw sales increase 8.9% during the month while sales are up 27.6% for the year. For Chrysler, the Dodge Ram saw sales increase 23% for the month and 39% for the year. Additionally, with respect to Chrysler, the recently re-released Durango should be an area for growth. Chrysler reported the best sales results in nearly three years, while Nissan reported numbers that nearly matched Chrysler’s as a result of heavy incentives. Some automakers (namely Nissan and Ford) had a small level of incentives during the first two months of the year, however, Nissan really ratcheted up the incentives which helped to fuel the monthly sales result. Ford’s incentives on the other hand were down 9.7% year over year according to TrueCar.com; however, compared to the month of Feb-
AASP-NJ to Hold 7th Annual Golf Outing
The Association of Automotive Service Providers of New Jersey will host their 7th annual AASP-NJ Lou Scoras Memorial Golf Outing on May 23 at the Colonia Country Club. Lunch will be served at 11:30 and tee-off time will start at 1:00. The event is dedicated to Lou Scoras of Holmdel Auto Body and part of the proceeds from the outing will go to create a collision industry scholarship fund. The association is still looking for sponsors for this event, please visit www.aaspnj.org for more information.
ruary, incentives were up 7.8%. Incentives were a main culprit for GM’s less than stellar result during the quarter, with incentives being down 16.7% compared to February. Part of the problem with offering heavy incentives is that it pulls forward some future sales.
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House Rejects Changes to Bill Banning EPA and Calif. from Regulating Emissions The House late Wednesday rejected Democratic attempts to soften a bill to bar the Environmental Protection Agency and California from regulating tailpipe emissions but delayed a final vote until April 7, according to the Detroit News Washington Bureau. The legislation, co-sponsored by Rep. Fred Upton, R-St. Joseph, chairman of the House Energy and Commerce Committee, and Sen. James Inhofe, R-Okla., would block the EPA and California from issuing new regulations limiting tailpipe emissions — and other sources of greenhouse gases. “I’m from Michigan. I know what a struggling economy looks like. And I think it is a travesty that this government is deliberately imposing policies that will harm job creators and working families,” Upton said on the House floor April 6. After debating the bill, the House rejected a series of Democratic amendments on a mostly party-line vote. The Upton-Inhofe measure would overturn a 2007 Supreme Court
decision giving the EPA authority to regulate tailpipe emissions as a danger to public health under the Clean Air Act. That ruling allowed California to impose its own tailpipe emissions limits. The prospect of a patchwork of separate state and federal emissions limits has been harshly criticized by automakers. Although the House is expected the pass the measure, it faces an uphill battle in the Senate, which on April 6 rejected a measure similar to the House plan. That measure was tacked to a small business bill sponsored by Sen. Minority Leader Mitch McConnell, R-Kentucky. The amendment was defeated on a 50-50 vote — 10 votes less than necessary to end debate in the Senate. Other similar amendments to delay EPA rules, including one by Sen. Debbie Stabenow, D-Michigan, also were voted down. White House Press Secretary Jay Carney hailed the Senate vote
to defend the EPA’s “ability to protect public health under the Clean Air Act.” “The Senate also rejected an approach that would have increased the nation’s dependence on oil, contradicted the scientific consensus on global warming, and jeopardized America’s ability to lead the world in the clean energy economy,” he said. Automakers have stayed neutral on the Upton-Inhofe bill. The United Auto Workers and other major unions have opposed the bill. Rep. Ted Poe, R-Texas, said on the floor that EPA regulators “drink their lattes” and work in “marble palaces” as they write tailpipe emissions regulations. “The EPA is on a mission to destroy American industry,” Poe said. In the wake of the Supreme Court decision, the Obama administration reached a deal with California and automakers in May 2009 to set nationwide fuel efficiency standards for the 2012-16 model years, hiking
fleetwide efficiency to 34.1 mpg by 2016. The deal essentially extended California’s proposed standards nationwide, but gave automakers additional flexibility early on. The pact will cost the auto industry about $52 billion over five years, but save 1.8 billion barrels of fuel over the life of the vehicles. The Obama administration says it would save $3,000 per vehicle in gas over the life of the vehicles. The House measure would bar the EPA and California from taking part in the 2017-25 tailpipe emissions limits. The National Highway Traffic Safety Administration, however, could go forward with fuel efficiency standards for the same period.
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www.autobodynews.com | MAY 2011 AUTOBODY NEWS 37
Revisiting Paint by Numbers: A Deep Dive into Refinish Data by Greg Horn, VP Mitchell
Recently, I published an article on refinish times broken down by vehicle type, age and origin in the Q1 Mitchell Industry Trends Report (ITR). I wanted to see if all vehicles received the same treatment in the refinish process regardless of these factors. “Paint by Numbers: A Deep Dive Into Refinish Data,” drilled down into the refinish data for a year’s worth of appraisals and compared these elements to determine if there were significant differences in the refinish process. At the outset, I want to state clearly that this article examines the data only and is not intended to be construed as advocating or refuting any OEM refinish procedure or recommendation. I firmly believe that every damaged vehicle is unique and the proper repair procedure must be done on an individual basis. This determination should include the vehicle’s design, age, condition, finish, location and extent of damage, automaker and paint company recommended procedures, and last but certainly not least, the customer’s expectations. Our data immediately pointed out that there are in fact differences in the refinish process appearing on the appraisals. According to the data domestic made vehicles, including trucks/SUVs and older vehicles, received slightly fewer additional paint operations. Trucks and SUVs have slightly fewer hours added for blending into adjacent panels, averaging 1.35 hours of blend vs. 1.4 on average for passenger cars on estimates where a blend was specified. Surprising? That’s one way to put it. The original ITR article spurred a great deal of discussion in the collision repair industry. Many expressed that the data didn’t represent what was truly indicative of the operations required; rather they felt it was representative of what insurers paid for. In fact, the data does reflect what was written and accepted for the repair because the estimates were “aged,” meaning at least 90 days had elapsed before we queried the data. Note, I said accepted because these repairs reflect that an appraisal was written, a claim was made and presumably the repairs were done in accordance with the appraisal.
I also received many questions about the difference in allotted hours for blend into adjacent panel time vs. full refinish operations and believe it is important to clearly state the differences between the two in the Mitchell Procedure Pages.
The largest portion of not included time is for flash time between coats. The blend formula is to be used in conjunction with refinishing an additional panel on the vehicle and therefore would not allow for the already included flash times on the original panel.
occurring. It is important to note that when we looked at blending within the panel, we did not evaluate how many refinish hours were specified on the appraisal for a specific panel vs. full refinish time. It is very likely that the full base and clear coat were spec-
1.46
Avg Blend Hrs Only Ests w/Blend 1.44
1.42
1.4
1.38
1.36
1.34
1.32
1.3
1.28 Asia
Domestic Asia
Domestic
In order to explain the differences we need to clarify our refinish labor time premises. The steps for refinishing a new undamaged E-Coated panel include:
* Solvent wash * Scuff panel and clean * Mask adjacent panels * Prime or seal as required * Final Sanding and clean * Mix materials * Adjust spray equipment * Apply color * Clean equipment
Mitchell refinish labor times also allow for flash times between coats. When blending a panel the reduction in labor time is due to not having to perform the following steps:
* Prime or seal as required * Final Sanding and clean * Mix materials * Adjust spray equipment * Clean equipment
38 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
Europe Europe
1 yr or Less 1 yr or Less
1 yr to 5 yrs 1 yr to 5 yrs
5 yrs or older 5 yrs or older
Were vehicle owners charged for the additional operations that were not approved for reimbursement by insurers? While this occasionally does happen, and is not a great customer experience for the vehicle owner, it is safe to assume that this practice does not occur on every estimate where additional paint operations are performed but not reflected in the uploaded estimate. Again, the fact that calling for a blend on a truck or SUV is less frequent than on smaller passenger cars points to the fact that with the larger panel areas found on trucks and SUVs there is more of an opportunity to blend within the damaged panel. Some may object to this conclusion and say cost shifting was involved, meaning that the additional costs were spread into other areas of the appraisal so that a shop could be compensated for what was truly required. Unfortunately, that may be the case and there is no way in the data to isolate instances where cost shifting is
Car
Car
Truck/SUV
Truck/SUV
ified in the damaged panel, however, that data is nearly impossible to separate in a data pool of several million estimates. We focused on the blend operation as called out in the appraisal. In looking at the results of the original refinish study, I did not fully explore the question of geography in the initial finding. Does the area of the country affect how many hours of blend time are reported? Herein lies the key; areas in the Midwest and South had fewer hours of blend time, and they also have the largest population of trucks/SUVs as well as more domestic vehicles than foreign. When broken out by West Coast, Midwest, Southern and Eastern states, the blend time is lower in states where there are higher volumes of trucks and SUVs being repaired. We can conclude that in today’s collision repair environment, older vehicles, domestic vehicles and trucks and SUVs receive fewer blend hours in part because the
panel is being blended within the panel and in part because of the geography of where the vehicle is located. The focus on refinish operations is particularly important as we see dramatic increases in the cost of a barrel of oil. As Mideast turmoil adversely impacts the cost of oil, Americans are shifting towards smaller vehicles. Increases in paint costs because of rising oil costs will soon follow. While refinish operations have been an area of contention between some collision shops and insurers, when the price of oil rises, so does the frequency of contention and the volume of questions our editorial department receives related to refinishing. Looking towards the future, as we start the shift away from large SUVs, the increasing number of smaller vehicles on the road will increase the necessity of blending into adjacent panels. Statements and opinions expressed in this article are solely those of the author. They are not offered as and do not constitute legal advice or opinion of Mitchell International, Inc.
Continued from Page 16
Gunder’s Loses
Ray Gunder, the founder of Polk County’s Gunder’s Auto Center, a 43 year-old auto collision repair and mechanical shop, made the following statement after the judgment was delivered: “Last night, after getting the court’s decision, I re-read it and just sat in disbelief just staring at it for hours. Is it really possible in this country for a huge conglomerate like State Farm to attack my small business with what are known to be outrageous lies and be considered legally privileged? “As I understand it, the legal rule is that the so-called ‘privilege’ is forfeited if derogatory and defamatory comments re made with ‘Express Malice.’ “To be considered ‘Express Malice’ one would need to reach the level of calling me and/or my family murderers and rapists. “State Farm came after us in 2004 in an attempt to silence my voice by attacking our company’s reputation in our community and their attempt to financially destroy our business by steering customers away with totally
untrue and outrageous lies… and that, according to the court, at least in my case… is legal!? This ruling is justice? “It’s important to understand that if this ruling stays; every honest and ethical shop owner in the industry is in jeopardy of similar efforts against them if they don’t fall in line and do as they’re told by this megalith insurer and other insurers who may chose to follow suit! Continued Gunder, “This ruling is scary for all of us. Although this is but one ‘leg’ of my legal journey to correct the harmful and predatory practices of some insurers, it’s a very bitter pill to swallow! “Know this; I’ve been knocked down but I’m not knocked out. I’m going to continue to “pound that rock” and find the justice that I believe exists in our legal system! While I’m not a poker player, the term ‘I’m all in’ is indeed applicable as I’m too far invested in time and finances to quit now and I’ve never been one to see a wrong and not try to make it right and with the best legal representation one could hope for, we will continue to move on. “What one doesn’t find in this decision is one of the most important parts;
State Farm speaking improperly and slandering Gunder’s “once” is privileged in the courts opinion, but speaking lies “over” and “over” again knowing they are lies is indeed “Express Malice”! “We will prove that State Farm has continuously committed Slander with Express Malice and have done so regularly with an evil intent. “I believe with right there’s might and Gunder’s will press on and we will begin by giving serious consideration to submitting a request for a review and appeal with the United State’s Supreme Court.” A copy of the court’s ruling may be found at: http://www.courtlistener.com/ca11/26Fy/gunders-autocenter-v-state-farm/ In another lawsuit the shop has pending against the insurer in Polk County Court, a judge has granted the shop's request to compel State Farm to make documents and a number of witnesses available to the shop's attorney as part of the discovery process. Among those that shop attorney A. Brent Geohagan seeks to depose in the case are representatives of at least eight repair shops that serve State Farm insureds in Polk County.
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Trust your order to the collision parts specialists at these fine Dealers www.autobodynews.com | MAY 2011 AUTOBODY NEWS 39
Florida Autobody Collision Alliance (FACA) Hosts 1st Annual First-Responder Extrication Training including Fire Department personnel from the areas of Lakeland, Auburndale and Winter Haven on April 13. I-Car certified instructor; Steve Laszlo, was on hand to assist in the training and provided information on current vehicle construction technology and related materials. Training forcused on avoiding areas on newer vehicles where airbags or electrical components could pose a potential risk. Newer hybrid and allTraining Instructor Steve Laszlo electric vehicles can be dangerous for The Mid-State Chapter of the emergency personnel unfamiliar with Florida Autobody Collision Alliance the cars mechanics. (FACA) provided hands-on training to Activities took place at 6:30 pm at Central Florida area First-Responders All Pro Used Auto Parts, 1425 Old Dixie Highway Auburndale, FL 33823-9505. All Pro Used Auto Parts provided the example vehicles for the training. Food and beverage served to participants was also provided by Gunder’s Auto Center and Subs and Such of Certified first responders and firemen learn electrical and airbag Lakeland. ‘hot spots’ to avoid on newer vehicles
The Florida Autobody Collision Alliance is a State-wide association of collision repairers and is committed to the future of the collision repair industry. FACA’s mission is to provide the leadership needed to raise the professional image of the industry and to develop new industry leaders. FACA’s goal is to educate, inform and represent the collision repair professional in all aspects of the industry. For more information on FACA please visit: www.FACAFL.com or contact Ms. Cathy Mills, Executive Director via email at: cathy@facafl.com or by phone at (904) 994-6516.
In February this year, California Senhearing, whenever the commissioner ator Noreen Evans introduced legislafinds that there has been a violation tion expanding the Insurance of an applicable insurance proviCommissioner’s restitution authority sion.” which at present is only allowed in “The status quo allows insurance limited circumstances. Simply put, SB companies to violate the law and then 631 would grant explicit authority to simply nudge consumers away from the state Insurance Commissioner to regaining the monetary losses they exorder restitution as part of an adminisperienced,” said Senator Evans. trative enforcement action against an “Restitution-granting authority alinsurance company. The new powers ready exists in several other state decould be used to punish broker-agents partments. Senate Bill 631extends this and other licensees in all instances same authority to the Insurance Comwhere the Commissioner finds any vimissioner and simultaneously proolation of the California Insurance vides built-in safeguard for all Code. parties.” The expanded authority would Evans said the bill also provides protect consumers from what Senator safeguards for insurers should they Evans described as the “David and disagree with the restitution order by Goliath” dynamics that can occur the Insurance Commissioner, because when a consumer seeks repayment of under SB 631 insurers may still seek monetary losses or out-of-pocket costs a judicial appeal and go to court. associated with wrongful insurance Should a consumer wish to directly company conduct. pursue judicial action against an inSB 631 would allow the Com- surer, rather than receiving restitution Give ustoyour opinion affecting the industry. missioner “impose upon on an matters in- through the Insurance Commissioner, surer, licensee, or other entity or the bill still allows them to do so, she person subject to the commissioner’s added. authority specified remedies, either “The Department of Insurance is publisher@autobodynews.com by way of settlement or following a required by law to protect consumers
against misconduct from insurers,” Insurance Commissioner Dave Jones has said. “However, the Insurance Commissioner does not have the authority to order insurers to restore outof-pocket expenses or money wrongfully obtained due to insurer misconduct. This needs to change, and it needs to change now.” Senator Evans’ office issued an SB 631 Fact Sheet that provides further information on the proposed legislation. According to the Fact Sheet, insurance consumers occasionally suffer monetary losses at the hands of their insurance providers, for example, when they receive less money than they are entitled to on a claim. Currently, when an insurer breaks the law and causes monetary damages to a consumer, the only path to remedy for consumers is to sue insurers in court, which is time-consuming, ex-
The proper equipment used in real-life scenarios was used during the training
Firefighters were able to put the information learned to work right away with vehicles from All Pro Used Auto Parts
CA Bill Would Give Insurance Commissioner Stronger Penalty Powers
write us!
40 MAY 2011 AUTOBODY NEWS | www.autobodynews.com
pensive, and further burdens the courts. Insurance advocacy group Insurance Brokers and Agents of the West (IBA West), representing some 14,000 agents and brokers, said it is concerned because persons entitled to receive restitution are defined so broadly as to include insurance companies—meaning broker or agents could conceivably be required to pay restitution to their own insurers in the event of even minor violations of Insurance Code or regulatory provisions. The association also is concerned that the bill lacks “meaningful” limits on the Commissioner’s ability to impose financially devastating punishments. The bill was most recently amended on March 24 and a hearing in the Senate Insurance Committee has been scheduled for April 27.
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32-year-old N.J. Body Shop Embraces PPG’s Envirobase® HP Waterborne Basecoat by Ed Attanasio
The conversion to waterborne paint in states like New Jersey is a reality for body shops throughout the Northeast, because by 2012 regulations will likely mandate the use of the new paint. While some collision businesses are not enamored with the idea of changing the way they’ve been painting cars for decades, many are happy to say ‘goodbye’ to solvent and ‘hello’ to waterborne. Proactive shops that see the value in making the changeover before they’re forced to do so by law are jumping on the waterborne bandwagon right now. One of these proactive shops is Andrews Auto Body in Brick, New Jersey; a shop that has embraced PPG Envirobase® High Performance waterborne paint in a big way. If you live in or around Brick, you know the name Andrews. This second-generation body shop has been around since 1979, when Rich Andrews, Sr. started his small body shop and built a substantial customer base, many, many years before waterborne paint was even something to consider. But growth dictates new procedures. In August of 2009, Rich, Sr., and his whole family moved to a new, 6,000 square-foot facility. I say they all “moved” there because the entire family works for the business. Mom (Linda) is the front office manager, her oldest son Keith, 36, is the shop’s manager; Rich Jr., 31, is the shop’s lead painter and their sister, Jennifer, is the shop’s assistant office manager. And dad is still there, watching his sons as they take their shop to a new level—which includes waterborne. Since the move, Andrews has purchased a towing company and does a lot of work for the town of Brick, Keith Andrews said, which has provided a new source of revenue for the shop. Simultaneously, Andrews Auto Body made the changeover to PPG Envirobase® HP basecoat in their new, larger facility. The moves have paid off in a big way, because the shop is hitting better numbers than ever. “We’ve tripled our revenue since moving here and now we’re repairing 50–60 vehicles per month,” Keith said. “Switching to the PPG waterborne paint has played a big part of it. This year, we’re on track to do $1.4 million, which is very encouraging news, especially since we’re still in a recession and all the snow this winter didn’t help us either. We switched
SHOP & PRODUCT SHOWCASE Andrews Auto Body Location: Brick, NJ
Telephone: 732-920-3692 www.????.com Company At A Glance... Type: Collision Repair
Facility Employees: Nine In Business Since: 1979 DRP Programs: Four
Number of Locations: One
Combined Production Space: 6,000 square feet
It’s a family affair at Andrews Auto Body in Brick, New Jersey. From left, Rich, Jr. is the shop’s lead painter; his sister Jennifer is the assistant office manager; Rich, Sr. started the shop 32 years ago; his wife Linda runs the front office; and Keith Andrews manages the shop
over to waterborne to stay ahead of the game. We know we don’t have to do it until 2012, but we decided— since we’re moving—why not use the opportunity to do it now? The PPG rep convinced me that their Envirobase® HP waterborne would be a better way of doing things, so we made the move and we haven’t looked back. PPG Envirobase® HP is a great product and we’re happy with it for several reasons.” As lead painter it was particularly important that Rich Andrews, Jr. was 100% onboard with the switchover to PPG waterborne, because he is the shop’s only painter and runs the company’s paint department from the mixing station all the way to the paint booth. The whole changeover started with the training provided by PPG, both on-site and through their training center in Maryland. Rich, Jr. explained, “They trained me on the waterborne system in shop and then they sent me to Maryland for further training. Scott Pearson, from PPG was great and he made the transition painless. Our paint jobber, Albert Kemperle Paint and Body Equipment Inc., played a big role too. The PPG people were here several times and they stayed with us until we were totally comfortable with the paint and procedures. They walked us through the process until the result was perfect. We’d been using solvent since 1979, so this was a significant change, obviously. “It was a huge change, so I admit I was a little reluctant at first,” Rich, Jr. said. “But I didn’t have to re-
do one single car, to be completely honest. The color matches are spoton and the finished product is better than solvent. There was a very small learning curve, but once I got into the groove on how to spray it and dry it, it was a pretty smooth transition. Keith Andrews knows that PPG has been instrumental in improving his production system and he continues to be pleased by the company’s top-notch customer service. “PPG has done a great job in helping us be more productive in general,” said Keith. “Everyone with PPG has been excellent in every aspect of what they do for us. If I ask them or Albert Kemperle, my PPG jobber, I get it. They respond to me almost immediately in every case, which is great. That’s all you can ask from a paint company. PPG has played a very integral part in getting us to where we are now, so it’s been a great relationship.” Now that he’s been using the waterborne basecoat for almost 18 months on a daily basis, what does Rich, Jr. think of waterborne in general? “It may slow you down for a few minutes, but in the end you won’t be re-doing jobs, because the color matches are perfect. With Envirobase® HP, the finished product is better, with zero comebacks or complaints. They make the simple matches so simple and it has pretty much eliminated spray outs. I’m now doing 3–4 cars a day, and I don’t have to do even one single spray out. I’ve reached a point where I can just trust it.”
Lead Painter Rich Andrews, Jr. doesn’t have to re-do jobs by using PPG Envirobase® HP waterborne paint, he said, because the color matches are on the money 100% of the time
It may take a few more minutes to paint a car with waterborne vs. the old solvent days, Rich Andrews, Jr., said, but the finished product is superior in every way.
PPG Automotive Refinish Company Contact: Cindy Piazza Phone: 440-572-2800 email: piazza@ppg.com website: www.ppgrefinish.com
www.autobodynews.com | MAY 2011 AUTOBODY NEWS 41
GCIA Meeting Hosts OSHA Safety and Environmental Compliance Management Presentation The Georgia Collision Industry Association (GCIA) held their first monthly meeting of the spring on April 14th at 6:30 PM at the Crowne Plaza Atlanta Perimeter.
Chuck Elliott with KPA presented attendees with OSHA, EPA requirements
The group had Chuck Elliott, District Manager with KPA as their guest presenter. Elliott explained the differences between the recent inspections completed by the Environmental Protection Agency (EPA) related to your waste streams within a body shop versus the typical OSHA inspections which are generally about employee safety and compliance. The night began with a discussion on OSHA and the expectations the organization has when it comes to safety in a colli-
sion repair shop. The requirements for shipping hazardous materials with the Department of Transportation was also discussed. The Environmental Protection Agency (EPA)’s guidelines for environmental compliance were also discussed, along with a summary of common violations by body shops such as throwing away liquids in the trash and the proper disposal of spray cans. KPA is the nation’s compliance expert on safety, environmental, and human resources, serving more than 3,000 clients nationwide. KPA’s on-site, on call, and online environmental and safety services are critical in reducing accidents and associated costs while ensuring the highest level of compliance with EPA and OSHA regulations. Additionally, KPA provides an HR system that screens problem applicants, forces compliance with state and federal regulations and dramatically reduces the risk of lawsuits and administrative costs. Questions can be directed to Chuck Elliott directly at celliott@kpaonline.com or (404) 626-6310. For information can also be found at www.gacollisionindustry.wordpress.com.
Women’s Industry Network Conference, San Diego May 1
The Women’s Industry Network (WIN) will host their 5th annual WIN Conference May 1 through 3 at the Westin Gaslamp Quarter in San Diego. The conference will be led by two keynote speakers; Jennifer Sertl and Lauren Fix. Jennifer Sertl will focus on what it means to be strategic in the 21st century, what it takes to be a leader and how the soul of your business as well as your personal soul will drive your business and personal success in years to come. J e n nifer is founder and president of Lauren Fix Agility3R, an organizational effectiveness company which fosters collective wisdomacross all levels within organizations. Lauren Fix will draw upon her experiences to share tips for success in our day to day interactions with males and females alike. She will address staying connected to those you network with,
both male and female; the glass ceiling as related to networking and advancement; as well as using your “feminine force” for positive change and other things to achieve success in our professional and personal lives. Lauren is the owner of Automotive Aspects Inc., a consulting firm that provides media consulting, broadcast messaging strategy services and motivational seminars. She has been a member of the Society of Automotive Engineers (SAE) since 1980 and is ASE Certified. WIN’s Conference Speakers will include Greg Horn with Mitchell and Helen Todd with Collision Buzz, among others. To register online for this conference please visit: www.regonline.com/2011_WIN_co nference or www.womensindustrynetwork.com.
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SC Offers Amnesty to Drivers with Suspended Licenses
Thousands of South Carolina drivers will be able to legally get back behind the wheel through a oneweek amnesty program for suspended licenses, according to reports made by Insurance Journal. The Department of Motor Vehicles said that the amnesty applies to residents who lost their driving privileges for violations that don’t involve drugs or alcohol. Agency spokeswoman Beth Parks said nearly 10,500 drivers qualify. About 20 percent of those drivers have two suspensions. Their driving privileges will be restored if they pay the required fees and have insurance. Most reinstatement fees are $100. The program will be offered May 16-20 at 17 offices around the state. It was required as part of a sentencing reform measure passed by the Legislature last year.
State Farm to Offer Electronic Parts Ordering to its Own Select Service Shops State Farm has announced that in the coming months it will develop a new electronic parts ordering system for its Select Service shops. The new parts ordering plan was rolled out to the DRP shops through an online video. In the video, claims consultant Gregg McDonald outlines State Farm’s plans, stating that the company will work with repairers, parts suppliers and technology vendors to develop a new electronic ordering solution. To view the video, go to http://www.statefarm.com/landing/b2 b/eparts-ordering.asp. McDonald said the insurer will work with all segments of the industry to develop a system to “reduce the amount of time and effort needed to search for, source and order all part types,” and “to give suppliers a better view of the process, and access to complete parts orders.” McDonald also said that the sys-
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tem will include a review tool to allow shops and vendors to provide feedback on the parts ordering experience, saying “Supplier choice and decisions regarding which parts are best suited for the individual repair will remain in your hands.” In 2009, State Farm ended an electronic parts ordering test it had rolled out in California and Indiana, saying it had no plans to implement such a program nationally, but that it had found that electronic parts ordering “has value”. The Select Service agreement that participating shops must sign gives the insurer the right to require electronic parts ordering. As of yet there is no firm start date for the test. According to George Avery, State Farm claims consultant, the company has yet to work out details about which Select Service shops will participate or what kind of technology will be used. “We don’t have a timeline and we don’t know where we’re going to test it,” Avery said. “Our intent is to give the repairer the choice of the type of
Higher Standard Leads to Coveted Magna Society Award
Rusnak Auto Group With Audi Dealerships in Pasadena and Westlake Offer Customers Outstanding Service, Value and Selection Audi established the Magna Society Award program in order to recognize U.S. dealerships that stand out as the best of the best. To qualify, dealerships can’t just meet or exceed sales targets. They must also demonstrate the ability to maintain a solid financial foundation, merit high customer satisfaction scores and demonstrate that their facilities and staff represent a progressive, Audi culture. The Rusnak Auto Group is proud to announce its two Audi stores, located in Pasadena and Westlake, won the 2010 Audi Magna Society Award. By offering two stores in Southern California, Rusnak Audi is able to offer greater value along with a superior selection. Rusnak Auto Group enjoys a 45-year history as one of the strongest auto retail groups in Los Angeles and sells nine brands of automobiles as well as high-quality Certified Pre-Owned and pre-owned vehicles from 11 locations in Arcadia, Loma Linda, Pasadena and Westlake. Visit Rusnak Auto Group at www.rusnakonline.com.
parts they want to use. We’ll thoroughly test this solution before we roll it out to our shops, like we do all of our projects.” The goal is to improve the efficiency and accuracy of the parts ordering process to minimize returns and potentially increase the speed of repairs. State Farm could potentially benefit through reductions in rental costs and overall repair costs by eliminating supplements and returns. The first electronic parts program, which was designed based on an OE discounting program, ran from 2007 to 2009. “This is just the next step in the process,” Avery said. “We’re taking what we learned and applying that to improve efficiency, get the right parts and possibly fix the car quicker.”
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Ryder Acquires Portfolio of B.I.T. Leasing
Ryder System To completed advertisethe acquisitioncall of the lease, rentalSales and mainteAdvertising at: nance portfolio of B.I.T. Leasing, a 800-699-8251 privately owned, 58-year-old full-service truck leasing and fleet services e-mail: company headquartered in Hayward, advertising@autobodynews.com Calif. www.autobodynews.com The acquisition was completed in two phases: the first phase completed in August 2010 and the final phase completed in March 2011. Ryder acquired BIT’s fleet of approximately 364 full-service lease, See the N 121 rental, and 72 contract maintenance units serving 131 contract customers from BIT’s service locations in Rohnert Park, Hayward, San Jose www.autobodyn and Watsonville. Ryder began operation at BIT’s former Rohnert Park location in December. Customers who were being serviced from BIT’s former locations in Hayward, San Jose and Watsonville will now be served by one of Ryder’s six existing locations in the Bay area. BIT’s existing dealership business will continue to operate as Bayshore International Trucks. The acquisition is expected to add approximately $9 million in annualized operating revenue to Ryder’s Fleet Management Solutions business segment.
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