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VOL. 33 ISSUE 5 MAY 2015
Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller Who Was Killed Overseas
Car Care Clinic Fills a Critical Need for Low-Income Tulsa, OK Residents
Carl and Marsha Mueller, retired body shop owners in Prescott, AZ, recently formed a foundation to help
In the fall of 2002, three men from Southern Hills Baptist Church met on a Saturday morning in the church
by Stacey Phillips, Assistant Editor
Kayla Mueller and her mother Marsha
those in need locally and internationally. The foundation, called Kayla’s Hands, was created in memory of their daughter Kayla, who traveled the world with a goal to end suffering. When Autobody News recently spoke to Carl, the former owner of Preferred Auto Body in Prescott, AZ, he and his wife Marsha were preparing for a trip to Dearborn, MI, to speak at the American Human Rights Council’s convention and accept an award in honor of Kayla. Kayla, a 26-year-old humanitarian aid worker, moved to the TurkishSee Kayla Mueller, Page 26
MS Attorney General Jim Hood asks U.S. for Probe of ‘Steering’ of Customers By Insurers
See MS Atty General, Page 22
P.O. BOX 1516, CARLSBAD, CA 92018
Mississippi Attorney General Jim Hood has asked U.S. Attorney General Eric Holder to investigate allegations that some insurance companies’ are “steering” auto policyholders to certain repair shops and coercing those shops to use inferior replacement parts. The intent of those practices is to pad the insurers’ bottom line, Hood said in the letter dated March 13. Hood’s letter is part of a broad legal challenge to such practices and can be viewed at autobodynews.com. And it comes during an election year in Mississippi in which the incumbent insur-
ance commissioner has a challenger. John Arthur Eaves Jr. of Jackson is the lead attorney representing 17 states thus far and 500 body shops across the nation in cases being adjudicated in the U.S. District Court for Middle Florida. The cases are being tried as multi-district litigation because of their similarities. A Mississippi case, Capitol Body John Eaves Jr. Shop Inc. et al v. file photo State Farm Mutual
Change Service Requested
by Jack Weatherly, msbusiness.com
by Bill Sherman, Tulsa World
Eli Sumrall (r) and Rodney Walker repair a vehicle at the Car Care Clinic at Rivergate Church in Tulsa, Okla., on Saturday, March 21, 2015. The church hosts a charity auto repair event each Saturday where volunteers fix vehicles at no charge. Photo Credit: Matt Barnard/Tulsa World
parking lot to fix cars for single moms and other low-income people in the congregation. That was the beginning of Car Care Clinic, a ministry that now has 60 volunteers at several sites, and last year repaired 500 cars on a budget close to $250,000. For its first nine years, the Car Care Clinic was held two Saturdays a month in the church parking lot, said Lonnie Vaughan, who founded the ministry with his wife, Martha. Vaughan owns and operates The Appliance Warehouse at 2547 E. Admiral Place, buying and selling major appliances. Vaughan said the idea for a carrepair ministry came to him when he was helping start a Hispanic church in See Care Care Clinic, Page 16
Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available by Colin Calvert and Todd Scherwin,
Fisher & Phillips LLP
The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service Advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption under the federal Fair Labor Standards Act (FLSA). It is the first court to have held this way.
“Service Advisor” Status under the FLSA Section 13(b)(10)(A) exempts from the FLSA’s overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm im-
plements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.” Historically, this exemption has been extended to Service Advisors. Beginning in 1973, in the federal appellate decision in Brennan v. Deel Motors, Inc., and continuing to as recently as 2013 in the Montana Supreme Court’s decision in Thompson v. J.C. Billion, Inc., courts have uniformly held that Service Advisors are covered by that exemption. The Department of Labor’s Revision to its Administrative Regulations However, the U.S. Labor Department’s (USDOL) track record in this area has been inconsistent. At some times in the past, it has said that ServSee Advisors Non-Exempt, Page 15
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Attanasio - Tracking Your Success (or Lack of) Using Google Analytics . . . 34 Franklin - Story Power For Shops . . . . . . . 32 Yoswick - Legal Battle That Began with Non-OEM Parts Back in 1997 Still Being Waged Today . . . . . . . . . . . . . . . 30 Yoswick - SCRS Event brings shop associations together to discuss efforts, share ideas . . . . . . . . . . . . . . . 40 Yoswick - State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT . . . . . . . . . . . . . . . . 44 NATIONAL American Honda Launches ProFirst Certified Program . . . . . . . . . . . . . . . . 37 ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress . . . . . . 54 ASA Opposes Tennessee Salvage Legislation. . . . . . . . . . . . . . . . . . . . . . 10 Assured Performance Hires Michael Quinn as Exec. VP . . . . . . . . . . . . . . . . . . . . . 45 Auto Salvage Yards in NC Searchable for Parts Pricing. . . . . . . . . . . . . . . . . . 42 BMW Settles FTC Charges that MINI Illegally Conditioned Warranty Coverage on Use of Its Parts and Service . . . . . . . . . . . . 46 CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes . . . . . . . . . . . . . . . . . . . . . . 18 Car-O-Liner® Names New OEM Account Manager . . . . . . . . . . . . . . . . . . . . . . . 38 Chief Names Richard Perry OEM Liason Sales Manager. . . . . . . . . . . . . . . . . . . 49 CIF Elects Jeff Peavy to Board of Trustees . 54
Consumers Pay Repair Bills with Openbay and Apple Pay . . . . . . . . . . . . 46 ETI Announces Results of Study on New Car Buying Preferences of Consumers . . 8 GM Names BASF 2014 Supplier of the Year. 49 Honda Adds More Recalls on Takata Airbag Flaws . . . . . . . . . . . . . . . . . . . . 45 Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ . . . . . . . . . . 12 Lawyers Picked to Lead Posts in Air Bag Lawsuits . . . . . . . . . . . . . . . . . 36 Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now . . . . . 50 LORD Fusor Joins NABC as Diamond Member. . . . . . . . . . . . . . . . . . . . . . . . 32 Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks. . . . . . . . . . . . . . . . . . . 23 Miller’s Optimized Welding System for Aluminum Repairs . . . . . . . . . . . . . 45 MS Attorney General Jim Hood asks U.S. for Probe of ‘Steering’ of Customers By Insurers . . . . . . . . . . . . . 1 NABC Awards for Distinction and Shop Image, Nominations . . . . . . . . . . 41 NABC Says “It Can Wait” to Students in Grad Season . . . . . . . . . . . . . . . . . . 46 National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles. . . . . . . . . . . . . . . . . . . . . . . . 49 New Data: U.S. Drivers Did 3 Trillion Miles Last Year . . . . . . . . . . . . . . . . . . . . . . . 54 New GM Silverado Engineered for Better Serviceability During Collision Repair . . 36 Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available. . . . . . . . . . . 1 Nissan Expands Recalls Tied to Takata Air Bag Flaws . . . . . . . . . . . . . . . . . . . 45 NWLCRA Meeting Updates Include Announcement that Local Shops May be Contacted About Survey . . . . . 10 PartsTrader Says Integration to Help Dealers Quote Parts . . . . . . . . . . . . . . . 54 Progressive Plans to Charge Risky Snapshot Drivers More . . . . . . . . . . . . 54 Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller . . . . 1 Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ . . . . . . . . . . . . . . . . 38 South of the Square Collision in OH One of 375 Recognized for being in Top 5% in Customer Service by Mitchell . . . . . . . 48 Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager . . . . . . . . . . . . . . . . . . . . . . . 53 Surveys Will Help Shops Better Understand Industry Billing Practices . . . . . . . . . . . . 9 Willets Point Shops Settle Lawsuit, Vacate Queens, NY, to Allow Construction of $3 B Mall. . . . . . . . . . . . . . . . . . . . . 42 WIN Educational Conference May 4–6 in Baltimore. . . . . . . . . . . . . . . . . . . . . . . 53 Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award. . . . . 24
On April 10, a federal court invalidated significant portions of the Environmental Protection Agency’s greenhouse gas rules as unlawful and directed the agency to revoke and revise its regulation. This followed a lawsuit filed by Texas and other petitioners. The Lone Star State's Attorney General Ken Paxton issued the following statement: “From overreaching EPA regulations, to illegal executive amnesty, to the Department of Labor’s attempts to override state law, the Obama Administration’s ongoing pattern of willfully circumventing Congress is intrusive and dangerous to the lives and livelihoods of American citi-
zens. The April 10th decision by a federal court rejecting significant portions of the EPA’s greenhouse gas rules as unlawful represents another step toward reining in an out-of-control federal government. I will continue to defend hardworking Texans from these types of lawless and harmful actions by this administration.” Motor vehicles emit greenhouse gases; mainly carbon dioxide, but also nitrous oxide and methane, which contribute to climate change. Autobody News will be following this case for more information on what aspects of the greenhouse gas rules could affect collision repair.
TX Scam Artist Goes to Prison for Using Deceased MS Man’s Identity to Sell Ford F350
A Texas man was sentenced to five years in prison for pulling off an internet scam that involved selling a non-existent 2003 Ford F350 using a deceased Mississippian’s identity. John Wiggins, 52, of Round Rock, TX pleaded guilty on April 15 in Lafayette County Circuit Court in Mississippi to two counts of Fraudu-
lent Use of Identity involving a Craigslist scam. He was ordered to pay full restitution of $3,500 to the victims of the scam, one a resident of Colorado and the other a resident of Oklahoma. Wiggins was able to obtain money from the victims who were trying to purchase the truck.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Axalta Coating Systems . . . . . . . . . 55 BMW Wholesale Parts Dealers . . . . 41 Bob Howard PDC . . . . . . . . . . . . . . 27 Car-Part.com . . . . . . . . . . . . . . . . . . 12 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 39 Chevyland . . . . . . . . . . . . . . . . . . . . 32 Chicago Pneumatic Compressors . . 6 Chief Automotive. . . . . . . . . . . . 21, 25 Classic BMW . . . . . . . . . . . . . . . . . . 23 Classifieds . . . . . . . . . . . . . . . . . 52-53 Dallas Dodge . . . . . . . . . . . . . . . . . 56 Dent Magic Tools . . . . . . . . . . . . . . . 4 Diamond Standard Parts, Inc . . . . . 17 Don Carlton Auto Group . . . . . . . . . 20 Eco Repair Systems of North America, LLC . . . . . . . . . . . 8 Equalizer Industries, Inc . . . . . . . . . 26 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 51 Fowler Honda . . . . . . . . . . . . . . . . . 10 Freedom Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 11 GlobalJig North America . . . . . . . . 13 GM Wholesale Parts Dealers . . . . . 45 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . 24
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. ©2015 Adamantine Media LLC.
Autobody News
Southwest
REGIONAL ABAT Presents Labor Procedures Survey. . 20 Car Care Clinic Fills a Critical Need for Low-Income Tulsa, OK Residents. . . . . . 1 Collision Works of Oklahoma Launches Jingle Contest . . . . . . . . . . . . . . . . . . . . 6 Federal Court Rejects Significant Portions of EPA’s Emissions Rules Following TX Lawsuit . . . . . . . . . . . . . . . . . . . . . . 3 Hi-Way Auto Parts Named Business of the Month by Early, TX, Chamber of Commerce . . . . . . . . . . . . . . . . . . . . . . 8 Insurance Company Denies OK Man’s Claim After His Car Hit Huge Pothole. . . 4 LaCIA Learns about Storage Fees, OSHA Inspections and Student Needs at 3/24 Meeting . . . . . . . . . . . . . . . . . . . . . . . . . 4 LaCIA’s February 26th Meeting. . . . . . . . . . 6 Owner of El Paso, TX Body Shop Guilty of Deceptive Trade Practices; Ordered to Pay $2,000 to Victims . . . . . . . . . . . . . 10 RDA’s 4th Collision Solutions Training Seminar Held in TX . . . . . . . . . . . . . . . . 9 TX Scam Artist Goes to Prison for Using Deceased MS Man’s Identity to Sell Ford F350 . . . . . . . . . . . . . . . . . . . . . . . 3 TX Service King Hosts Cars, Careers, & Celebrities Expo . . . . . . . . . . . . . . . . . . . 6 TX Driver Sentenced for Possession of 160lbs of Marijuana . . . . . . . . . . . . . 42 TX Worker Sued for $1M After Auto Collision. 9
Federal Court Rejects Significant Portions of EPA’s Emissions Rules Following TX Lawsuit
Indexof Advertisers
Contents
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Huffines Hyundai Plano . . . . . . . . . 40 Hyundai Wholesale Parts Dealers . 44 Kia Motors Wholesale Parts Dealers. 47 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 43 Maaco Franchising LLC . . . . . . . . . . 9 Mac Haik Ford. . . . . . . . . . . . . . . . . 31 Malco. . . . . . . . . . . . . . . . . . . . . . . . 15 Mazda Wholesale Parts Dealers . . . 49 Mike Calvert Toyota. . . . . . . . . . . . . 38 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46 MOPAR Wholesale Parts Dealers . . 33 North Freeway Hyundai . . . . . . . . . 37 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Ray Huffines Chevrolet . . . . . . . . . . 30 Reliable Chevrolet. . . . . . . . . . . . . . 36 SATA Spray Equipment . . . . . . . . . 35 Scoggin-Dickey Buick . . . . . . . . . . 22 South Pointe Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 19 Toyota of Fort Worth . . . . . . . . . . . . 34 Toyota of Laredo . . . . . . . . . . . . . . . 18 Toyota Wholesale Parts Dealers . . . 42 Urethane Supply Company . . . . . . 14 Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 48 Volvo Wholesale Parts Dealers . . . . 50 Young Chevrolet . . . . . . . . . . . . . . . 16
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 3
LaCIA Learns about Storage Fees, OSHA Inspections and Student Needs at 3/24 Meeting by Chasidy Rae Sisk
The Louisiana Collision Industry Association (LaCIA) held a meeting in Metairie on Tuesday, March 24. The agenda covered what amount shops without a storage license can charge for storage fees and recent OSHA inspections in the area, as well as a plea for help for a local college collision repair program. Alysia Hanks, Executive Director of LaCIA, said, “I think the meeting went great! A lot of information was shared, and I think it shows how having a strong association can benefit our industry.” The focal guest speaker of the evening was Sgt. Rueben Auter, LA Region Supervisor of Towing & Recovery, who informed attendees that, though a storage license is not needed to charge for storage in LA, shops still must follow the same procedures as those with a license, including sending out an official report of stored vehicle (ORSV), a first notice and a final notice. He also shared a Hold Harmless Agreement which must be completed if a lien holder chooses to take possession of a vehicle, according to LRS 32:1720.1. Sgt. Auter plans to meet with insurers to notify them of this re-
cent discovery that allows shops to charge for storage without said license. Sgt. Auter also explained the fees under this law allow shops without storage licenses to charge $19 for outside storage, $23.50 for indoor or covered storage, and $38 for oversized vehicles, in addition to a $45 gate fee and a filing
LaCIA members listen attentively
fee of $8 as an administrative fee; shops licensed for storage can charge administrative fees of $25 in state or $30 out of state. He added that if a customer signs a repair authorization stating the shop’s storage fees, this overrides the aforementioned procedures, though it will make it more difficult to take possession of the vehicle if it is abandoned and, as usual, it doesn’t guarantee the insurance company will pay. Hanks concluded, “Shops should be getting a repair authorization prior to any repair in writing either in per-
Insurance Company Denies OK Man’s Claim After His Car Suffers Damage Hitting Huge Pothole
A Tulsa, OK man’s vehicle was severely damaged after he allegedly hit a large pothole in November 2014. Angel Cancel said his wife drove over a massive hole along the road, damaging their car’s strut, reported KFOR-TV & K. Querry.
Angel Cancel tells TV News about the pothole ordeal
“She hit it so hard that the strut went straight up and almost came up through the hood of the car,” Cancel told KJRH. Cancel called USAA to see what he needed to do to get the car repaired, since he has full coverage through the company. He said a representative with the insurance company told him to get a few estimates back in Novem-
ber. A week later, an adjuster arrived to assess the damages, reported KFOR-TV. He received a letter from USAA stating his claim had been denied after months of back and forth with the insurance company. “When you pay full policy, full coverage, you just figure, hey, they’re going to take care of me,” Cancel told KFOR-TV. However, according to Michael Rhoads of the Oklahoma Insurance Department, this is not always the case. “There is a general belief that when you have full coverage, everything is covered. But there are exclusions with every auto policy,” he told KFOR-TV. The exclusion in Cancel’s claim was sited by USAA for electrical or mechanical failure, even though he said there were no issues with his car before it hit the pothole. After reviewing the case, Rhoads agreed and now the Oklahoma Insurance Department is investigating further. A spokeswoman for USAA told KJRH that they will take another look at Cancel’s case.
4 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
son or by fax. No phone authorizations because no one is obligated to pay a repair bill if a repair authorization isn’t signed beforehand.” Chris Robertson of Technical Environmental Services and his brother, a member of LaCIA, spoke next to inform attendees that OSHA is doing shop inspections in the area. OSHA just completed an inspection at their father’s shop, and they shared some tips which Hanks recounts: “Invite them in when they show up. If you turn them away and force them to get a warrant, it may make the process more stressful for everyone. Only answer the questions they ask. Utilize your paint vendors for help in keeping your shop up to date on OSHA regulations.” Hanks said Robertson was very helpful and distributed some informational packets on the subject which is useful since OSHA plans to inspect approximately 40% of shops in their area. Lastly, Mr. Daniel Rusich, Instructor for Delgado Community College’s collision repair program, spoke to association members. Rusich was recently hired to help turn the program around and has reached out to LaCIA for input and help. The school hopes to modernize their current curriculum and has extended an invitation for
shops to visit for a tour or to offer advice on what students should learn to make them more valuable when they graduate. Shops interested in hiring students for work-study or to recruit recent graduates can contact Rusich at 504-671-6139 or drusich@dcc.edu. The school’s program is also in need of donations, both monetary and equipment such as tools, parts and materials. Hanks said, “Remember, these students are part of the future of our industry! The LaCIA will help in any way possible, and I hope you will do the same.” In other news, LaCIA is looking forward to the Southern Automotive Repair Conference in Biloxi on April 17-18. Also, Hanks is coordinating a fundraiser for LA Attorney General Buddy Caldwell which is planned for May. The association’s next class is scheduled for early July and “will be a hands-on class where we bring in some experts and parts and really get into procedures and what we may be missing,” Hanks said.
LaCIA www.la-cia.com
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 5
Collision Works of Oklahoma Launches Jingle Contest Collision Works of Oklahoma, LLC. announced their first ever jingle contest on March 22, giving consumers a chance to share their talent and win an all expenses-paid weekend of fun to Vegas.
The winner and their guest will receive roundtrip airfare and two night’s hotel accommodations in Las Vegas. Additionally, the winner may potentially be featured in an upcoming Collision Works commercial. The contest runs through June 15, 2015; official entry rules and more information about the contest can be found at http://www.collisionworks okc.com/2015/03/09/collision-worksjingle-contest-official-rules-2/ Collision Works is the largest locally-owned collision repair company in the state. Currently, the company has five locations in and around the Oklahoma City metro area with plans to open two more locations this year. Since 1996, Collision Works “has been committed to providing superior quality paint and body repairs. From towing of your car, to getting your car back to its original look and feel, the
company is committed to making the process easy for customers and repairs are backed by a written lifetime guarantee,” according to a company press release. “We are extremely excited to see what sort of entries we receive,” said Meleah Montgomery, Community Relations Director, Collision Works. “We are proud to share the chance for Oklahomans to show of their talent in the Collision Works Jingle Contest. The contest is a fun, inspiring way to engage people from all walks of life in and give them the opportunity to be creative and hopefully win a trip in the process.” Entrants are asked to record their original, never been published jingle, using a video camera or webcam, then visit www.youtube.com to upload the video. Entrants will have to create a free YouTube account in order to publish the video. From there, email the URL of the video link to CONF@collision worksokc.com along with the name and contact information of the person entering. Contest entrants can sing, dance, recite a poem, talk or express their jingle in the most creative and compelling ways possible. Based in Oklahoma, Collision Works provides collision repair to the Newcastle, Oklahoma City, Norman,
LaCIA’s February 26th Meeting
On February 26, the Louisiana Collision Industry Association (LaCIA) held their first meeting of 2015. Topics included the possibility of developing public service announcements (PSAs), a new storage license law, updates from the Attorney General’s office, and the importance of collaboration between shops. Executive Director Alysia Hanks lauds the gathering as a “great meeting.” At the meeting, LaCIA Board Member Brandon Parker shared that he and several other shops have joined together to develop several PSA-style commercials. Attending members agreed that informing the public is imperative and that this could be a great way to spread the message and share costs. Hanks suggests that those interested in participating in this endeavor post in the private forum of the association’s website to alert local shops of their interest. LaCIA also discussed a new storage license law that was uncovered. Though they were originally informed that a license is not needed to charge for storage, new light has been shed on the subject, and LaCIA is planning a follow-up meeting to investigate and decipher this law’s meaning. Randy Ishee and Stacie deBlieux from the Louisiana Attorney General’s office were also present at the meeting.
The lawsuit is still in federal court, but they assured attendees that it will return to their state, though they aren’t sure exactly when that will happen. In the meantime, complaints can still be filed at www.ag.state.la.us/InsuranceComplaints .aspx. The Attorney General’s office is searching for a totaled vehicle with evidence of a previous bad repair that they can pick up for evidence in their case. Anyone with such a vehicle available should contact deBlieux directly at deblieux@ag.state.la.us. Hanks notes, “An interesting tidbit was shared by one of our members also. He mentioned that the insurers are calling his parts suppliers to find out his discounts and what he paid for certain parts. I strongly advise you to contact your vendors and demand that this information not be shared with others.” “The general theme of that evening was how important it is that we come together and work together to take back an industry that is on the verge of being lost of the insurers.” Hanks added, “One way we can do this is through education, not just for the shops but for the consumers. We can do this!” LaCIA also held a meeting on March 24.
LaCIA. www.la-cia.com
6 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Edmond, and Shawnee areas. Collision Works was named #9 of the Top Places to Work of 2014 by the Oklahoman, and Company President, Jake Nossaman, was among 34 executives recently recognized at The Journal Record’s sixth-annual Oklahoma’s Most Admired CEOs of 2015. For more information, visit www.collisionworksokc.com; Facebook: www.facebook.com/Collision Works; Twitter: www.twitter.com/ collisionworks.
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TX Service King Hosts Cars, Careers, & Celebrities Expo
Service King Collision Repair Centers hosted the Cars, Careers and Celebrities Expo career fair on April 15. The event, sponsored by the Collision Repair Education Foundation and I-CAR, took place at the Service King Collision Repair Center in Richardson at 808 S. Central Expressway in Texas. The event was free to collision repair students and qualified job seekers who each had the opportunity to meet and interact with prospective industry employers, tour the Service King Collision Repair Center and hear from current employees about their personal journey through the industry. “This was an excellent handson opportunity for anyone interested in the collision repair industry,” said Armando Soto, Service King Senior Director of Recruiting. “This event provided a glimpse into the rewarding and lucrative opportunities available in the growing auto repair industry. We believe this is an excellent springboard for career-seekers with a passion for the auto industry.” Along with the professional connections made possible, attendees had the opportunity to interact with several local collision repair schools and students.
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 7
Hi-Way Auto Parts Named Business of the Month by Early Chamber of Commerce Early Chamber of Commerce honored James Cooley, Jr. and Dalton Cooley, owners of Hi-Way Auto Parts, with the Business of the Month award for March 2015. Hi-way Auto Inc. is a dismantling and recycling facility specializing in late model auto parts. Located on Hwy 279 in Brownwood, Texas, Hi-way Auto Parts has over 30,000
tion auto recyclers with over 30 years experience. Junior and Dalton have turned their family-owned recycling business into one of the preferred suppliers of quality recycled auto parts in Central Texas and beyond. Hi-Way Auto Parts started in the late 1940s with three employees and was purchased by James Cooley, Sr. in 1975. Now James Jr. handles the
The staff at Hi-way Auto Parts Inc. celebrating their award in Brownwood, Texas
sq. ft of auto parts in their warehouses and their facilities cover more than 50 acres. Hi-Way Auto offers recycled auto parts to insurance companies, collision repair shops, mechanical shops, and the retail public. Parts can be searched on their website at www.hiwayauto.com. The Cooleys are second genera-
day-to-day operations and Dalton is responsible for purchasing inventory. Hi-Way Auto Parts has grown to more than 30 employees and continuously strives to provide a high standard of excellence in customer service, quality, and competitive prices, according to their press release.
ETI Announces Results of Study on New Car Buying Preferences of Consumers
The Equipment and Tool Institute (ETI) recently launched a series of Market Research Projects. The findings of ETI’s latest study, “The Impact Aftermarket Service Facilities Have on the New Car Buying Preferences of Consumers,” was presented at ToolTech 2015 in Austin, Texas during their Business Meeting on April 13. “We have always been able to answer that the effect is significant and we can produce many anecdotal references to specific instances when a technician has recommended that a loyal customer purchase a particular brand of vehicle over another one for some particular reason or another,” said the institute. ETI conducted two surveys: one of shop owners and technicians and another of consumers. “We ask technicians if they try to influence buying decisions and we ask consumers if they are influenced. We also ask what brands are recommended, how often and why,” said the institute. ETI uses this research to help all segments of the automotive industry provide aftermarket shops
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with better tools, equipment, products and information solutions. Previous Market Research Studies have included J2534 Reprogramming, J2534 Reprogramming Update, TPMS, Telematics, Collision Repair, A/C Service, Hybrid and Battery Service, and Information Access, which are available for purchase on www.etools.org. Founded in 1947, ETI is a trade association of automotive tool and equipment manufacturers and technical information providers. Their mission is to: Advance the vehicle service industry by providing technical data and open dialog between the manufacturers of transportation products, government regulators and the providers of tools, equipment and service information. For more details about ETI programs and activities or if you have an idea for a future Marketing Research Project, contact Jessie Korosec, ETI Marketing Manager, at 248-656-5085 or jessiek@etools .org. More information about the study is available on their website: www.etools.org.
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Surveys to Help Shops with Billing Practices
How does your shop’s billing practices differ from other shops? Are other shops being paid for procedures you’re doing but for which you’re not being compensated? Those questions form the basis of a new series of industry surveys being conducted as a joint project by CollisionAdvice and CRASH Network. “The training and consulting work I do has shown me that many shops aren’t aware of non-included items and operations they are doing but not itemizing on estimates,” Mike Anderson of CollisionAdvice said. “These surveys will help shops understand what these operations are, and whether other shops seek and receive compensation for them – or if they truly are ‘the only one.’” The first of these surveys, which covers refinish-related items and operations, is available online now through April 30. Similar surveys on other aspects of repairs will be conducted later this year. Anderson said the surveys, which will take about 15-30 minutes each, should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment
practices of the largest national insurers. Each individual shop location (whether a stand-alone business or part of a multi-shop operation) may submit one response to the survey. Each shop’s individual responses will be held in the strictest confidence and not released in any way. Only cumulative data will be released through CollisionAdvice and CRASH Network. Participants who choose to provide optional contact information will receive an executive summary of the survey findings. To take the survey, visit: https:// www.surveymonkey.com/s/refinish _survey. CollisionAdvice (www.Collision Advice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and one-on-one in the shop. CRASH Network (www.Crash Network.com) is an independent source of news and information not found anywhere else in the collision repair industry. It offers subscribers a quick-to-read weekly summary of key information and perspectives.
TX Worker Sued for $1M After Auto Collision
A Louisiana woman is seeking more than $1 million in damages for injuries suffered in a collision that took place at the intersection of Avenue H and Fifth Street in Silsbee, TX. Carolyn Bynum filed suit against Earl Davenport of All Star Plumbing and Elisabeth Richard on Oct. 6 in Jefferson County District Court. According to the complaint, Bynum was a passenger in a vehicle driven by Richard on Avenue H in Silsbee on May 14, 2014. When Richard turned left on Fifth Street, Davenport, who was employed by All Star Plumbing, turned left onto Fifth Street and Davenport, ran a red light and slammed directly into the portion of Richard’s vehicle where Bynum was seated. Bynum suffered injuries to her neck, shoulder and body in general. Davenport is accused of gross negligence in running a red light and inattention, while Richard is accused of negligence for making no attempt to avoid the collision. All Star Plumbing is accused of negligent entrustment, hiring, and supervision. Bynum seeks more than $1 million in damages, including medical bills, loss of earning capacity, interest, exemplary damages and costs of court.
RDA’s 4th Collision Solutions Training Seminar Held in TX
RDA held their fourth Collision Solutions Seminar in March in Dallas, TX entitled Game Changer. Mike Jones and the Discover Leadership Training team provided two days of thought-provoking concepts for those in attendance. The team said the challenge to those attending was simple while at the same time difficult. They told attendees about the importance of taking personal responsibility for your actions and stepping out of your comfort zone in order to advance to the NEXT LEVEL, both personally and professionally. RDA/IMPACT is the largest national group of refinish jobbers dedicated to providing quality services and products to their collision shops. RDA has 18 members, representing 188 locations. Members service over 3,800 collision centers throughout the U.S. They represent a cross-section of all major refinish brands and do over $455 million in sales as a group, comprising around 17% of the refinish business nationwide. For info on joining, contact Robert McKenzie, Jr. at 731-2179081 or email at robertemckenzie @me.com. Their website is: www.impactcollisionsolutions.com.
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 9
ASA Opposes Tennessee Salvage Legislation
The Tennessee Legislature is considering salvage legislation, House Bill 443. If implemented, this bill will allow unlicensed buyers to purchase vehicles from salvage pools. ASA believes the legislation will harm both consumers and automotive repairers in Tennessee. Approval of this bill could drive up the costs of auto repair as parts become more limited. Furthermore, vehicles that should be processed for parts could be used for unintended purposes such as resale or criminal activity. In response to the legislation, ASA sent letters to the chairman of the Tennessee House Committee on Transportation as well as the other Committee members, voicing concern regarding House Bill 443. ASA also encourages Tennessee automotive repairers to contact their representatives and explain the harmful effects of this legislation. To view and send an opposition letter for House Bill 443, please visit ASA’s legislative website at www.TakingtheHill.com > Legislation > State > Legislative Alerts and Updates and scroll down to Tennessee.
NWLCRA Meeting Updates Include Announcement that Local Shops May be Contacted About Survey The Northwest Louisiana Collision Repair Association’s (NWLCRA) meeting was held on April 7 at Country Tavern Barbecue. Ken Braswell, President of the local NWLCRA, opened the meeting with a prayer and the reading of the Anti-Trust Law. They are seeking guest speakers for their May and June meetings. Please contact Braswell or Bill Burnside if you have suggestions. Braswell discussed the Southern Automotive Conference held on April 17 and 18. Chris Shepherd, Collision Repair Instructor with the Northwest Louisiana Technical College, spoke about the Louisiana Post Secondary SKILLS USA competition. He had several students that placed in this competition and were headed for the National Post Secondary SKILLS USA competition. The students that placed are as follows: Collision Repair Technology Gold - 1st Place Lance Holt Silver - 2nd Place Raymond Aguon Bronze - 3rd Place Micah Heard
Owner of El Paso, TX Body Shop Guilty of Deceptive Trade Practices; Ordered to Pay $2,000 to Victims
The owner of Formula One Auto Collision in East El Paso, TX, Cesar Lopez, was found guilty of deceptive trade practices on March 17 in a jury trial in county court.
KFOX14 reported that after going to trial on March 23, he pleaded guilty to another charge of deceptive trade practices. He was sentenced to 365 days in jail and ordered to pay $2,000 in restitution to each of the victims. He was also ordered to pay a $3,000 fine that is a suspended sentence. If he fails to pay the victims, he will have to go to jail and pay the fine,
according to KFOX14. The charges stem from a case in 2011, when Lopez owned CRL Collision. In 2011, KFOX14 reported numerous stories where owners claimed Lopez was holding their cars hostage. Some owners said they spotted other people driving their cars around town, reported kfoxtv.com. Lopez had recently been the subject of several KFOX14 investigations after more owners contacted the station with similar problems to those in 2011. Owners have contacted KFOX14 claiming Lopez has had their vehicles for more than six months and in some cases more than a year. Lopez has also been accused of misusing insurance money, forging signatures, and not completing the work he was paid to do.
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10 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Automotive Refinish Technology Gold - 1st Place Antonio Washington Silver - 2nd Place Kenneth Hookfin Bronze - 3rd Place Joshua Jackson
the results of an independent survey. Mark Monroe, Instructor with Bossier Parish School of Technology and Innovative Learning, discussed some changes that are in the process of being determined by the Bossier Parish School Board. He may be contacting area Collision Repair shops for research/input. Thad Greer with SingleSource said he should have the results of the Independent survey by the next meeting. Shepherd, Collision Instructor for Louisiana Technical College, filled in as the guest speaker instead of Trence McCoy. He talked about the 42nd Annual Street Rod Reunion at Boomtown Casino and Resort, April 10-11. The Red River Street Rod Association was formed in 1973 and is the oldest continually operating street rod club in Louisiana. They donate $2,500 annually to deserving students. For information, visit www.redriverstreetrod.com. Shepherd also mentioned the BPCC 100. The event, held on April 25, was the 6th annual BPCC 100 GoKart Race. This year they had a new sponsor, Capital One Bank. All entry fees paid by the participants were tax deductible and the money raised by this fundraiser went to scholarships.
The students had to write an estimate and complete an interview process before moving on to the technical portion. Everyone who placed in Collision Repair were also given Die grinders, donated by Lashley Supply. The winners who placed in Automotive Refinish were given paint guns, also donated by Lashley Supply. Other gifts given to the winners were donated by Snap On and Matco. Burnside and Colormaster donated “goodie bags” to all participants. Burnside provided the current upcoming I-CAR classes in the area for 2015. Chris Shepherd reminded everyone that the new I-CAR policy is that a class not signed up within 48 hours of start time will result in the class being cancelled. There are plans to include this list on the NWLCRA website. Other issues discussed were changes in the Bossier Parish Schools about graduating from the program and
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Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ by Stacey Phillips, Assistant Editor
Seven California auto body repair technicians have filed a lawsuit against G & C Autobody, a medium-sized MSO based in Santa Rosa, CA. The plaintiffs claim they were misclassified as independent contractors by the company and allege a violation of the CA wage and hour laws, unfair competition and unfair business practices. Joseph Lippard and Vaughn Medeiros filed the original complaint in the Superior Court of California County of Sonoma on March 17. They both worked at G & C as automotive technicians at the company’s Santa Rosa location. Since then, an additional five former G & C workers have joined the case, all alleging they were misclassified as independent contractors: Phil Bill, Jeff Edwards, Luis Mata, Jose Sanchez and Scott Steiner. According to the complaint, “Unlawful and unfair business practices included the failure to pay earned wages including overtime wages; the imposition of paycheck deductions and paybacks to Defendant from its workers for routine and ordinary business expenses for its automotive technicians’ shop space, equipment and other overhead costs.” “The case is essentially challenging G&C’s long-standing practice of misclassifying all of their autotechs, the guys who do the body repair work and painting, as independent contractors under the law,” said Jeffrey Beeson of Beeson Terhorst in Santa Rosa, CA, who is the lead attorney for the plaintiffs. “Our position is that they should be classified as employees.” When they were hired, Beeson said his plaintiffs were told they could set up their own businesses; however, their lawyer said there was nothing closely resembling an independent business. “All of the economic realties of the plaintiff’s working relationship with G & C and their continued, ongoing dependence on G & C Auto Body as their sole source of income, demonstrated an employment relationship,” said Beeson. According to the complaint, the plaintiffs only provided automotive repairs for G&C customers, had virtually no contact with them and had no customers of their own. “This is completely contrary to G&C Auto Body’s fiction that plaintiffs
‘ran their own business.’ They had no customers other than those of G&C Auto Body and when they brought in a customer, G&C Auto Body made the assignment of the work, set the labor rate and amount to be charged and collected the payment from that customer. In short all customers were G&C Auto Body customers,” the lawsuit states.” In addition, Beeson said the shop purchased and supplied all of the parts, materials and supplies used in their work, determined which part would be installed on a customer’s car and controlled the details on how the work was performed and when it was completed. “Even though G&C required the plaintiffs pay weekly ‘rent’ for their work stall, G & C prohibited the plaintiffs from performing work for customers other than G & C customers at their workspace at the G & C shop,” said Beeson. The plaintiffs allege that “G&C Auto Body created an elaborate fiction in order to convince the employees they were independent contractors.” Although Lippard and Medeiros acknowledge signing documents saying they were independent contractors, they say they were in fact standardized forms used by the defendant when hiring auto body repair technicians. “…these statements were belied by actual practice,” the complaint states. “In fact, these statements were but thin veneers designed to gain advantage over the worker and gain a significant competitive advantage over other auto body repair shops.” Beeson said that as far as they have determined, G & C is the only repair facility in the area that classifies their technicians and painters as independent contractors. Founded by Gene Crozat in 1972, the family-owned and operated business has nine auto repair facilities in Northern California; Fairfield, Novato, Petaluma, Rohnert Park, San Rafael, Santa Rosa, Ukiah, Vacaville and Windsor. “No one else does it like G & C and its practices are contrary to industry practice,” he said. The plaintiffs claim that the “Defendant intentionally and unlawfully misclassified its automotive repair technicians performing auto body repairs as independent contractors to evade its obligations under California’s employment laws.” According to California Labor Code, any person rendering services for
12 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
another is an employee. Labor Code 3351 states that an employee is “every person in the service of an employer under any appointment or contract of hire or apprenticeship, expressed or implied, oral or written, whether lawfully or unlawfully employed.” Beeson said that by classifying them as independent contractors, the company did not have to take out paycheck deductions, pay business expenses, social security, payroll taxes, Medicare or cover them under workers compensation for any job injuries. They also did not have to pay for overtime, breaks or anything else California law requires of an employer. The plaintiffs said they were required to pay for all of their own mandatory I-CAR training, their own tools and any helpers G & C required they hire, supervise and train. “G & C frequently then hired away these socalled ‘helpers’ after they were trained by the plaintiffs and made them G & C employees or contractors, thereby saving all the hiring and training costs,” said Beeson. He said that by not having to pay overtime, there were enormous cost-
savings for G & C, in the millions of dollars. Scott Steiner, the largest producer at the Santa Rosa shop, worked between 3,393-3,575 hours per year – all for G & C. He and the other plaintiffs averaged 65-70 hours per week, Monday-Saturday, including holidays, 52 weeks a year. “Many worked after suffering onthe-job injuries for which there was no workers’ compensation coverage,” said Beeson. For example, Lippard injured his leg at work and continued working while in a wheelchair. “One G & C manager then told him if he got injured again he would be fired,” said Beeson. “If they had been paid overtime pay as the law required, they would have earned substantially more income.” Beeson said, “the pay appeared great on the surface because lump sums were paid with no tax withheld. Yet once plaintiffs stepped back and looked at their excessive work hours and did some calculations they realized if they had been treated as employees, their compensation and employment conditions would have been significantly enhanced.”
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 13
Beeson also said they were never paid for all of their hours worked and “G & C regularly dumped work assignments on the techs for which they got no pay at all.” He said many were left with large tax liabilities they did not anticipate or understand. He said Lippard never had take home pay of $350,000 (see accompanying sidebar p. 10) “This gives them a huge competitive advantage over other auto body shops and we allege in our case we think it’s an unfair business practice in California to engage in these kinds of tactics,” said Beeson, who has covered labor law for 33 years. “We’re seeking to have our clients be given all of the wages and overtime pay, premiums for meal breaks, rest breaks that they weren’t given for four years, which is the statute of limitations,” he said. “We’re seeking to have them classified as employees and then G&C to pay them the money they would have been paid if they had been classified as employees.” According to the complaint, G&C employed approximately 50 workers in 2012 that it classified as independent contractors. There were beSee G&C Responds, Page 37
G&C Attorney Daniel Beck Responds to Charges by Ed Attanasio
Daniel Beck is the attorney defending G & C Auto Body and is the managing partner of Beck Law, P.C. in Santa Rosa, CA. When Ed Attanasio spoke to Beck regarding the charges against G&C Auto Body, Beck said he is confident that the shop can successfully defend this action, as the plaintiffs have not suffered any financial damages as they are alleging in their complaint. “This is a case of unbridled greed. Five former independent contractors claim that they were employees of G&C, although they knew very well that they were independent contractors operating their own businesses. Each one of the plaintiffs/ claimants signed contract agreements each year they were contracting with G&C, stating and confirming that they were independent contractors and not employees. There were no gray areas there, and their roles were spelled out to them time and time again. Their company names were Lippard Enterprises, Vaughn Mederios Auto Body, etc.—and they had the ability to hire people to assist them in the repair jobs, and several of them did. They had individual business licenses that were issued through cities in which they were operating; and they used all of their own tools, materials and equipment in repairing vehicles at G&C Auto Body. They were small businesses operating completely separate from the rest of the company. The plaintiffs are now trying to take advantage of the new trend in litigation; labor cases alleging misclassification and then damages for unpaid breaks and overtime. In the
14 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
case here, the Plaintiffs and claimants should not be allowed to reap the rewards of having their own businesses, and then later claim they are entitled to any unpaid wages, and compensation for missed lunches and breaks. In fact, when they were contracting for G&C Auto Body they were making way more than they would have as an employee of G&C. Joseph Lippard made more than $350,000 annually during several of the years for which he worked with G & C, and the other plaintiffs all made much more than they would have made as employees. The plaintiffs in this case want to get paid twice. They were already paid handsomely for their work and now they want to “double-dip” for money they have already received. Based on the evidence that we have, we’re fairly confident that any judge and jury will be able to see that their case has no merit, there are no damages, and the plaintiffs/claimants are greedy by trying to take advantage of a successful business. Joseph Lippard worked with G&C Auto Body for seven years, and he often bragged to people that being an independent contractor allowed him to make more money, while controlling his hours and income without the restrictions of being an employee, according to Beck. In September 2011, Joseph Lippard provided comments for an article in Auto Body Repair News (ABRN) titled “Outspoken Entrepreneur Succeeds by Stressing Excellence and Value” by James E. Guyette, written about G & C Auto Body and its owner Gene Crozat. In that article, Joseph Lippard See G&C Attorney Responds, Page 37
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Advisors Non-Exempt
ice Advisors could qualify; at other times, it has said that they could not. At one point, USDOL issued an interpretative provision at 29 C.F.R. § 779.372(c)(4) in which it took the position that Service Advisors were not within the exemption. But after several courts nevertheless applied the exemption to them, for many years USDOL said that it would no longer dispute the issue. In April 2011, USDOL deleted Section 779.372(c)(4). In accompanying commentary, it said that the change was made to reflect its view that the exemption is limited “to salesmen who sell vehicles and partsmen and mechanics who service vehicles,” and that Service Advisors did not fall within this description.
The Ninth Circuit’s Ruling In Navarro, Service Advisors challenged the overtime exemption’s application in light of USDOL’s revision and statements. The lower federal court dismissed their claims, finding that they did fall within the Section
13(b)(10)(A) exemption. On appeal, the Ninth Circuit first found Section 13(b)(10)(A) to be ambiguous on the issue. The court said, “It is not clear from the text of the statute whether Congress intended broadly to exempt any salesman who is involved in the servicing of cars or, more narrowly, only those salesmen who are selling the cars themselves.” The Ninth Circuit then evaluated whether it felt that USDOL’s revised administrative interpretations represented a reasonable reading of the exemption. Despite USDOL’s shifting positions, the Ninth Circuit found: Here, the Department of Labor has interpreted the statutory exemption to exclude service advisors by choosing the narrower definition of the term “salesman.” * * * [W]e conclude that the agency has made a permissible choice. The interpretation accords with the presumption that the § 213 exemptions should be construed narrowly. On this basis, the court concluded that the Service Advisors are not exempt under Section 13(b)(10)(A). The Court specifically acknowledged that its holding conflicted with decisions of the Fourth and Fifth Cir-
cuits, of several district courts, and of the Supreme Court of Montana.
Practical Impact of the Court’s Ruling Employers in states outside of the Ninth Circuit should note that its ruling applies only within its jurisdiction. And while in the Ninth Circuit the case undercuts the Section 13(b)(10)(A) overtime exemption where Service Advisors are concerned, even there it does not mean that Service Advisors can never be exempt from FLSA overtime. The FLSA’s Section 7(i) provides another overtime exception for certain employees paid under a bona fide commission pay plan. It applies to an employee:
● Of a “retail or service establishment” (meaning a location 75% of the annual dollar volume of sales of which (i) is not for resale and (ii) is recognized as retail sales in the particular industry); and ● More than half of whose compensation for a “representative period” (of not less than one month) represents commissions on goods or services; and ● Whose regular hourly rate of pay for each overtime workweek is more than
1.5 times the FLSA’s minimum wage.
Of course, an employer must determine whether the applicable overtime laws of a state or another jurisdiction include any exception like Section 7(i), or whether any similar provision is different from Section 7(i) in important ways. Thus, although automobile dealerships in the Ninth Circuit cannot rely upon Section 13(b)(10)(A) for Service Advisors (unless Navarro is later reversed or overruled), it is possible that those employees can be exempt from FLSA overtime under Section 7(i). Those dealers should evaluate whether Section 7(i) provides a viable alternative. For more information, www.labor lawyers.com. Autobody News thanks Fisher & Phillips LLP for permission to reprint their article.
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Continued from Cover
Car Care Clinic
Tulsa. Over and over, he heard stories of families who spiraled into poverty after their car broke down and they could no longer get to work.
Jason Kraus works on a car at Rivergate Church in Tulsa, Okla., on Saturday, March 21, 2015. Photo Credit: Matt Barnard/Tulsa World
He talked to his pastor at Southern Hills, the Rev. Hess Hester, about starting a car-repair ministry in the church parking lot, and Hester gave him a green light, as long they cleaned up the lot and didn’t leave cars overnight. “I’ve seen my volunteers out in the parking lot when it was 10 degrees, coming inside the church to thaw out their fingers, and when it was 110 degrees. These guys were unstoppable,” Vaughan said. Eventually the team got a 20-by36-foot tent to keep them out of the rain, and after that, a trailer to store their tools. “We really thought we were uptown,” he said. “I never looked beyond that parking lot. We were happy there.” But the clinic took a giant step forward in 2011. Vaughan said he had been driving past RiverGate Church at 1439 E. 71st St. for years, and he always felt a prompting to go inside and tell them about the clinic. One day, he did it. Their response was, “Why didn’t
Lonnie Vaughan (r), founder of the Car Care Clinic, talks with State Farm Insurance agent Ed Martinez at the Car Care Clinic at Rivergate Church in Tulsa, Okla., on Saturday, March 21, 2015. Vaughan started the clinic 12 years ago to help the needy with car repair. Photo Credit: Matt Barnard/Tulsa World
you come by sooner?” he said. The church, located in a former Walmart building, gave the Car Care Clinic permission to use its six-bay autorepair facility. The Rev. Joel Budd, RiverGate pastor, said the church had intended for years to use that area for a car-repair ministry. Donors provided three car lifts, a commercial air compressor and four fully stocked Snap-on toolboxes, some $30,000 in equipment. Suddenly the ministry was working inside with quality equipment. Since then, progress has been rapid. Boston Avenue United Methodist Church got involved, setting up a second location at J & E Automotive, 1920 E. Sixth St., a Ponca City site has opened, and a Major Auto Repair Service has been launched to cover repairs like motor or transmission replacement. The ministry has expanded into receiving and repairing donated cars to be given away to needy families, or sold to finance the clinic.
Volunteer mechanics work on vehicles at the Car Care Clinic at Rivergate Church in Tulsa, Okla., on Saturday, March 21, 2015. The clinic offers free labor to help the needy with car repair costs. Photo Credit: Matt Barnard/Tulsa World
The ministry has attracted grants from local foundations, businesses, churches and government, a total of $120,000 this year. One of those grants came in Saturday. At mid-morning, volunteers at the clinic took a short break for a ceremony at which State Farm donated $10,000 to the ministry. State Farm agent Ed Martinez said car repair is not seen as a classic charity, but for many families, a working vehicle is the only thing standing between them and bankruptcy. “That’s the value of what you do. You keep people working,” he said. Vaughan said road safety is a goal shared by the clinic and State Farm. “To me, what this represents is government, businesses, churches and community coming together. We’re setting aside differences and concentrating on what we do have in common. “And what we have in common is the needs of our community,” he said. Angelica Aguirre was at the
16 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
clinic Saturday to get tie rod ends and ball joints replaced on her 2004 Denali. She said the cost of parts was about $200, less than half of what she would have paid for repairs at a commercial repair shop. “It’s a very big help to me,” she said. “I think it’s amazing. It’s definitely a blessing for people who can’t afford to go and get those things done.” Volunteers have been at the heart of the ministry from the beginning. Most clients pay for their parts, and all labor is free. Jason Kraus has been a volunteer mechanic at the clinic for about three years. He works as a business banker at Prosperity Bank. Before that he was a diesel mechanic for eight years. Why does he do it? “We get to minister to people here, and spread God’s love in this ministry, and I’m blessed with the tools and skills and knowledge to do this, and God’s called me to this ministry.” And he enjoys working on cars, he said. Volunteer Steven Diedrich is a retired Army veteran who has been working on cars since he was 12 and has been at the Car Care Clinic since
its early days. He said he does it because he believes that “God gives everybody two different kinds of gifts, spiritual and natural, and we’re supposed to use those gifts for the Body of Christ, and that’s what I’m doing.” “I love it,” he said. “You see a lot of single mothers coming in here, and you can see the desperation on their face when they come in and when
Jason Kraus (foreground left) and Steve Young repair a vehicle at the Car Care Clinic at Rivergate Church in Tulsa, Okla., on Saturday, March 21, 2015. The church hosts a charity auto repair event each Saturday where volunteers fix vehicles at no charge. Photo Credit: Matt Barnard/ Tulsa World
they leave they have a smile on their face, and life is good.” We would like to thank Tulsa World for permission to reprint this article.
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CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes whole boxes of sand paper or gallons of body filler,” and if too much waste is being produced by an employee, the M & M Paint & Body Shop in El Centro began transitioning to a lean shop issue can be corrected in an efficient after attending a Sherwin-Williams Aumanner, explained SWAF sales assotomotive Finishes (SWAF) “Ecolean ciate Hilary Castro. Course” about a year ago. Nuventory, Ross trained co-owner Rosie an inventory management software soMagos on how to most effectively utilution for the collision repair industry, lize her inventory management system. and 3M Automotive, also aided in the “There are visible indicators of shop’s “lean journey,” which started 13 lean and there are also some invisible months ago. The course focused on indicators. Customers who get to see three central tasks that, according to the body or paint department can only SWAF, help increase profitability on see the visible indicators,” explained all fronts: the independent shop’s co-owner, Rosy 1. Making sure everything is put Magos. “In a small town like ours, most away in the correct place after each job. people walking into a body shop expect 2. Ensuring that all workers use to see a dirty place where everyone is an accurate amount of each material tripping over parts, untidy technicians, in order to prevent waste. etc. Our shop has never been that bad, 3. Holding employees account- but focusing on the 5S part of lean has able for their actions. made us prouder to allow customers to see their vehicles during repair. The These three tips fall in line with the 5 shop in general looks like a dealership.” S’s—sort, set in order, shine, stanMagos said her ‘internal cusdardize, and sustain—that were em- tomers’ (employees) are the ones who phasized during the SWAF courses. get to react to the individual indicators, M&M Body Shop now makes a which include a more profitable shop, point to track all paint use back to more money in the tech’s pockets, veeach and every repair order with set hicles driving out in a shorter amount of time than before, and a lot less unhappy customers. “Technicians are now more engaged in what makes them money versus moving around clutter to try and move a car, get a part, or find a part, or worrying about running out of a specific material when you need it the most, etc.,” said Magos. “This translates to less frustration for them and less The lean process puts emphasis on organization and labeling work for me.” profit margin parameters. Magos added that, not only are The California shop adopted and jobs completed a day or two ahead of implemented Nuventory’s Standard the previously scheduled out date, but Operating Procedures (SOP), which profit has increased 27 percent in the allows them to manage their materials, last year. track usage, and streamline ordering to “It took a good three months to “just-in-time” inventory, according to start seeing real results and start callNuventory CEO Leslie Ross. ing ourselves ‘lean,’ but one thing I “Using Nuventory’s technician learned at the Eco-Lean Courses from usage tracking, M & M is able to gain Sherwin-Williams was that this is a visibility on materials per hour and journey and not a destination. Which pinpoint where there might be waste, means…we’re not there yet,” said or needed training,” added Ross. Magos. “We’ve made tremendous With guidance from trusted ven- progress ... but we’ll never arrive to dors, M & M has come up with their perfection. Products keep changing, own SOP to become more efficient. vehicles keep changing, and new ideas Each item can be traced back to the on how to save time, space, materials, person who last used it, to ensure that and money keep popping up in your there is as little waste as possible. minds. Every new job is another chal“There is no need to hand out lenge to pair up the right technician, by Victoria Antonelli, Online Editor
18 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
“M & M has had to rethink how they run their business. The old traditional way of running a collision shop has changed dramatically,” said Castro. “It is more important than ever to utilize trusted vendors that can assist with a shop’s journey.” 3M Account Representative Armando Munguia has helped train each department on OE recommendations for tracking waste with a new program that the company has developed called Performance Analysis Tool (PAT). “Utilizing PAT, we were able to measure and control cost, capitalize on potential revenue opportunities, drive Color-coding helps identify what repairs are needed for productivity, cycle time and each job CSI improvement, explained etc. We keep working at it. Everyone Munguia. “We created an Approved participates in the brainstorming of Product List (APL) based on 3M SOPs new methods, tips, tricks, etc. and we in each department. With the proper keep making progress day-to-day.” training, willingness and ability to make Castro explained that with insurance changes, our goal was to increase salesdemands at an all-time high, as well as reduce cost and improve profitability.” consolidators growing at a rapid pace, it Magos offered the following adis vital for independent shops to become vice to shops looking to begin their as lean as possible. See Increase in Profit, Page 46 with the right tools, using the right materials at the best price, getting the right parts undamaged and on time, the right timing to get to paint, the right time to have it washed and up front for the customer to pick up without disturbing their plans for the day,
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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 19
ABAT Presents Labor Procedures Survey by Chasidy Rae Sisk
The Auto Body Association of Texas (ABAT) recently conducted a survey related to what p-page procedures are billed and collected. The survey was conducted by Ten Point, an independent third-party company, and 54 shops from TX participated, including members of the association as well as nonmembers. Burl Richards, President of ABAT, notes “Ten Point told me that, out of all the surveys they had ever conducted online, this survey had the highest percentage of participation and response.” Richards believes this information will be useful for providing proof that insurance companies’ claims are erroneous. “As shops, we are constantly being told ‘you’re the only one’ when it comes to requesting reimbursement for certain procedures or processes necessary to restore damaged vehicles to their pre-loss condition. When an insurance company says you’re the only one and then says they only have to pay the Prevailing Competitive Practice (PCP), then it becomes their word against ours. Before the survey, we had nothing ‘documented’ to prove their assertion was totally false. Now, we have a survey performed by a third party, non-partial vendor (that also does surveys for insurance companies) that we can provide as proof that we are definitely NOT the only one.” The 2015 ABAT Prevailing Practices Study surveyed 54 collision repair facilities on 15 procedures. For each procedure, ABAT questioned how frequently the facility performs the operation, if the operation is added to their estimate, if they receive compensation from at least one insurer, and if they would request payment for the operation if their business wasn’t adversely affected by the insurance industry. The first procedure on the survey references test driving the vehicle after the repair if damage necessitates, and 51.85% of shops surveyed perform this operation all of the time, 31.48% perform it most of the time, and 16.67 some of the times. Only 3.7% of shop polled bill for this item all of the time, while 59.26% never include this operation on their estimate; 86.79% do not receive compensation from insurers, but 90.57% would bill for their time if not for insurer inter-
ference. When it comes to cleaning the vehicle after the repair, 94.44% do this after each repair, but 38.89% never bill for this, and 42.59% only bill for this some of the time. Insurers pay 40.38% of shops for this operation, and 92.45% of shops in the survey would bill for cleaning the car if the insurance industry didn’t adversely affect their business. Of the shops surveyed, 61.11% ask for additional materials by invoice/calculator when exceeding pre-set thresholds, but all shops perform this at least some of the time. All but 3.7% add this operation to the estimate at times with 59.26% billing all of the time, and insurers pay 94.34% of the shops for this operation, with 71.7% being paid in paint, 1.89% paid in body and 26.42% being paid in both. All of the shops surveyed would like to bill for this item. When questioned about performing labor for feather prime and block of repaired outer panels from the 150 grit level to slick ready for refinish, 88.89% do this all of the time, but only 24.07% always add this operation to their estimate, and 11.11% never do. Insurance companies pay 73.58% of these shops, with 27.45% paid in paint, 29.41% in body and 43.14% in both. All shops would bill for this without adverse effects from insurers. Labor to de-nib and polish trash particles is always performed by 79.63% of surveyed shops with only 33.33% adding it to the estimate all of the time; it is added most of the time by 22.22%, some of the time by 29.63% and never by 14.81%. Of the shops participating, 83.33% receive payment from at least insurance companies, but all shops would bill for this without insurer influence. Although 83.33% of shops said they always cover vehicles to reduce additional damage, 12.96% never bill for this, but 48.15% always add this operation to their estimate, and insurers pay 85.19% of shops. All polled shops would request payment without adverse insurer influence impacting the industry. While only 1.85% of shops never tint paint for a better match and to follow manufacturers, only 16.98% always bill for this, though they receive compensation from insurers 79.63% of the time, and they’d all request payment without insurer influence.
20 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Of the shops surveyed, 44.44% always provide additional efforts to pre-fit non-OEM and used parts, but 40.74% never add this operation to their estimate because 62.26% do not receive payment from insurers, though 100% would bill for it if not for adverse insurer influence. When it comes to allotting time for preparation of the estimate and total loss paperwork, 53.7% of shops always do this, while 14.81% never do. This is never added to the estimate for 37.04% of surveyed shops and 35.19% add it only some of the time. More than half of shops (52.83%) receive payment from at least one insurance company for this item, mostly being paid in body (84.85%). Without adverse influence from insurers, 92.16% of shops participating in the ABAT’s survey would require payment for this item. While 74.07% of surveyed shops always perform labor of removal and replacement of structural foam in damaged areas, only 16.98% always add this to their estimate, but 62.96% receive payment from insurers for this operation; all participating shops indi-
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cated they would bill for this item if they didn’t have to worry about adverse effects from insurance companies. Over 57% of shops always create fabrication of templates, inserts and sleeves, but 45.28% never bill for this with only 16.98% of shops always adding this operation to their estimate. At least one insurer pays 45.28% of these shops, but all 55 shops would like to be compensated for the labor and materials involved in this operation. When asked about providing protection of interior components and compartments during welding and grinding work, 96.3% of surveyed shops reported doing this most or all of the time; however, 57.41% never add this item to the estimate, and 72.22% never receive payment from insurers for performing this operation, though 98.08% would like to be paid if not for insurer influence. Of the 55 shops surveyed, 79.63% always provide a handling fee on sublet repairs when they don’t have an agreed DRP arrangement. Over 72% always add this item to their estimate, and at least See ABAT Presents, Page 41
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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 21
Continued from Cover
MS Attorney General
Automobile Insurance Co. et al, faces a Friday deadline to be refiled after Judge Gregory Presnell sent it back “without prejudice,” meaning it could be resubmitted with changes. Eaves noted that in 1963 the Department of Justice entered a consent decree with insurance trade associations to halt the “steering” practice. That point is raised in Hood’s letter to Holder, which also states that “insurers are implementing programs which require the use of after-market parts or re-manufactured parts, without disclosing the use of such to consumers and in spite of the fact that such parts are not of the same like, kind and quality of the original equipment manufacturer. This practice risks both the safety of the consumer, as well as the integrity of any vehicle warranties that the consumer may have otherwise.” For example, Hood said, “body shops have reported to my office that they are pressured into accepting bids from [State Farm’s] . . . online system,” Parts Trader, “which “State Farm
requires its ‘Select Service’ shops to use for obtaining parts. “Body shops have reported to my office that they are pressured into accepting bid from Parts Trader for after-market or remanufactured part that are unsafe and far below the quality of the original equipment manufacturer.” Hood asked Holder to see if such practices not only violate the 1963 consent decree but also federal laws and regulations. Hood said on “Anderson Cooper 360” on CNN last month that insurers that use such practices attempt to “use their economic power to grind down working people.” He said in response to a question that he is “reviewing options” as to which actions he might take. State Farm issued this statement to the Mississippi Business Journal: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service program while at the same time making it clear they can select which shops will do the work.” Meantime, the owner of Clinton Body Shop has the distinction of being a litigant against State Farm and also
Republican candidate for state insurance commissioner. John Mosley is challenging twoterm Commissioner Mike Chaney in the Aug. 4 party primary. There are no Democratic candidates. Mosley would like to see changes in how the department is run, and how campaigns for the office are run. For starters, he said that if he is elected, he would ask the Legislature to prohibit campaign contributions from insurance companies. Turning to auto insurance, he noted that the department website states that “the most an insurance company shall be required to pay for the repair of a John Mosely vehicle . . . is the file photo lowest amount that such vehicle . . . could be properly repaired or replaced . . . within a reasonable geographical or trade area of the insured.” “Most insurance policies actually provide for greater payment than what is statutorily required . . . .” Mosley said in an interview that “you don’t know what a struggle that
is” to find one of those insurers that would pay beyond the minimum. He recommends changing the wording of the guideline and the state law it is based on to include a definition of “properly” by adding language to the effect of “adhering to all manufacturers’ specified repair procedures.” Also, he would like the see the licensing of body shops. Currently shops may voluntarily subscribe to the standards of I-CAR, or the Interindustry Conference on Auto Collision Repair, an international not-for-profit organization. Moving to another area, Mosley said that property and casualty insurance needs more transparency. He supports the latest attempt to pass what has been called the Clarity Act, which would make it easier to determine how insurers received in premiums and how much they pay out in each zip code. The effort was launched after Hurricane Katrina and coastal homeowner’s policyholders felt that they were paying a disproportionate share. He said that Chaney has been reluctant to support the measure till this election year. He said the information is available in the commissioner’s office, but “it’s not an easy task to look and see
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what the losses are by zip code.” “These folks on the coast are still paying higher premiums 10 years after Katrina. And folks in the other parts of the state think their premiums are higher because they think they are subsidizing the Gulf Coast.” Chaney said that he “killed” two earlier versions of the act in the past because using the zip codes would have been too fragmentary. He said he and others started working on the bill last year and reframed measure, which also tracks claims and premiums by county. Gov. Phil Bryant signed House Bill 739 on March 13. If he were to become commissioner, Mosley, 61, acknowledged in response to a question that he could be seen as in a potential conflict of interest of regulating the auto insurance industry while depending on it. He agreed the best thing would be for him to put his business in a blind trust where he would have no dealings with it as long as he held office. Chaney, 71, is the 11th person to hold the position of commissioner since the department was established in 1900, he said. The department benefits from the stability of having a strong continuity,
Chaney said. He said that the body shops have some valid points about what kind of parts they use, “but in many cases the original parts are not as good some of the replacement parts they’re using. You have to worry about the safety of automobiles.” Meantime, the labor rates in Vicksburg, where he lives, are typically $50 to $55 an hour, Chaney said, adding, however, that in some cases department investigators have found that “shops are trying to get $70 to $75 an hour.” Chaney believes that the current outbreak of hostilities between body shops and insurers—at least in Mississippi—was fed by a horrendous hailstorm two years ago. The storm “did $500 million in damage from Vicksburg to Meridian in a band about 15 miles wide. A hundred and 80 million of it was in automobiles in the Jackson metro area. About 20 body shops were making all that money. That’s when our nightmare began with the body shops . . . which were billing without preauthorization” from the insurers.” “It basically was a spitting contest between the body shops and the insur-
ance companies. We didn’t have a lot of complaints from consumers. We were able to take care of them. John [Mosley] made a lot of money during that time.” As for contributions from insurance companies regulated by the state, he said his position is “you’ll still get good government whether you contribute to me or not.” He conceded that it takes a lot of money to run for the office. He’ said he’ll need $300,000 to $400,000 this year. As of Jan. 30, his campaign has received $136,084.13 and had cash on hand of $267,921.99, according to the secretary of state’s office. But in point of fact Chaney said: “We don’t take money from big insurance companies.” Otherwise, “if I see where I have to regulate somebody who has given me money, I’ll refuse it,” Chaney said. Or if someone is offering a campaign contribution to curry favor, “I’ll prosecute ‘em.” Mosley’s campaign was not started till late February, and so his first reporting deadline will be May 8.
Autobody News thanks the staff of msbusiness.com for permission to reprint their article.
Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks Mercedes-Benz has announced two recalls that will see over 33,000 vehicles recalled. The largest of the two involves 30,141 cars that can suffer LED tail light failures. Mercedes-Benz says over 30,000 cars have LED tail lights that may not illuminate on the sides, a violation of U.S. federal safety standards. The automaker says the affected model years include the 2015 CLS 400 and CLS 400 4matic, 2012-2015 CLS 550 and CLS 550 4matic, 2012-2013 CLS 63, 2014 CLS 63 and 2014-2015 CLS 63P. Mercedes first learned of the problem in December 2014 during a routine quality check on CLS-class cars. An investigation found a possible problem with software coding, then a later investigation confirmed inaccurate coding caused the LEDs in both tail lights to fail. Dealers will make sure the LED tail lights keep working by updating the lighting controller software. Over 3,000 model year 2015 Mercedes-Benz C300 4matic and C400 4matic cars are recalled to fix gas leaks that could cause a fire. Mercedes says the fuel delivery module might not be properly attached to the gas tank. In addition, electrical wires used to connect the delivery module might have been pinched between the gas tank and the delivery module.
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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 23
Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award The Women’s Industry Network (WIN®) recently announced the winners of the 2015 Most Influential Women (MIW) in Collision Repair Award. The award recognizes women who have enriched the collision repair industry with their leadership, vision and commitment to excellence. The following four women were selected to receive MIW honors. They will be recognized at a gala dinner celebration held in conjunction with the WIN Educational Conference being held May 4-6 in Baltimore, MD. “The nominees this year showcased a breadth of responsibilities,” stated Russell Long, President of Change Innovations. “I was impressed with their dedication, creativity and accomplishments. The Award recipients reflect well-rounded profiles of achievement in their jobs, in the collision repair industry and in their communities.” Long’s organization, a business consulting and executive coaching group, was contracted as an independent third-party entity to conduct the interviews and select the honorees. “Each year, women from different facets of the collision repair industry are selected for their passion and commitment to progressive and positive evolution of the industry,” stated Denise Caspersen, WIN chair. “There is so much opportunity for women to have rewarding careers—the sky is really the limit for those with skill, creativity and a strong work ethic.” The MIW program’s charter aligns with WIN’s mission to “enhance the role of women in the industry.” For more than 14 years it has recognized more than 80 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. “We are proud of the fact that MIW recipients are active and visible in the industry for years after they received the MIW award,” said Margaret Cheryl Boswell Knell, Director of Corporate Administration at I-CAR, a 2001 MIW Honoree, and Co-Chair of the 2015 MIW Committee. Established in 1999 by AkzoNobel, WIN acquired stewardship of the Most Influential Women program in 2013.
Cheryl Boswell Cheryl Boswell is constantly asking this question, “Can we do it better?” Boswell is the manager partner and CFO of DCR Systems, LLC in Duluth, Georgia, a company that develops outsourced, turnkey accident repair centers based on ‘lean manufacturing’ principles. Boswell provides strategic leadership for DCR Systems, overseeing the company’s financial functions while developing best practices. She is also a recognized Process Improvement (“Kaizen”) leader who has volunteered her time working with repairers and insurers on process improvement in both the United States and Canada in order to foster better relations for the benefit of the consumer. Embedded in the concept of lean is the principle of continuous improvement, which is why she’s always asking, “Can we do it better?” WIN said what is unique about Boswell is that not only does she have the insight to ask the tough questions, she has the ability to explain difficult concepts in a way that resonates for a diverse audience. When asked about what the MIW award means to her, Boswell said, “It means I have an obligation to push myself and ask, “What more can I do for the industry?” She is an active volunteer in her community and in the industry. She has lent her time to the WIN Membership Committee and the Lauren Fix Collision Industry Foundation (CIF), where she has served on the Board of Trustees since 2013 and also serves as the organization’s treasurer. In March, she was elected to the WIN board of directors. Said Petra Schroeder, a fellow CIF Trustee and WIN board member, “Cheryl is a doer—someone who makes things happen. Coming up with new and better ways to get things done, seems to be second nature to her. I have great admiration for her.” Lauren Fix Lauren Fix, President of Automotive Aspects Inc. in Lancaster, NY, said that she wants to educate drivers across America… and she’s doing it. Fix comes from a long line of automotive professionals and began working on cars at the age of 10. It wasn’t
24 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
long before she was immersed in the car culture, restoring and driving her own beloved rides. Fix soon realized that she might be able to share her “I can do that” enthusiasm to motivate others to think differently about vehicle maintenance and safety. Working as The Car Coach, Fix has become a nationally recognized automotive expert, author, spokesperson, media guest, keynote speaker, television car host, race car driver and ASE certified technician. A trusted car expert, Fix is a top woman in the automotive world and provides an insider’s perspective on a wide range of automotive topics and safety issues. In the past several years, Fix has expanded her audience across the country in person, print, and on-air to educate people about a wide-range of automotive topics and issues. Highlights of 2014 include multiple national Lisa Siembab appearances (CNN, Fox Business News, NewsMax TV, Arise America, HLN, Al Jazeera Amer-
ica, and Inside Edition) covering the latest trends in automotive technology, and information for consumers on proper car maintenance, travel and repairs. WIN said that Fix stands out among other automotive professionals because of her high visibility in the public spotlight, her strong drive to educate others and her unique role as a liRuth Weniger aison between the repair shop, the automotive boardroom, and the average driver’s home garage. A recipient of multiple industry awards and recognitions, she said she is most proud of her credibility with consumers. Her contributions bridge the growing gap between specialized technology and the average driver. Fix said that she lives the saying posted over her desk: “Do what you love, love what you do. Lisa Siembab Lisa Siembab, Owner of CARSTAR Berlin in Berlin, Connecticut, said See WIN 2015 Winners, Page 38
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 25
Continued from Cover
Kayla Mueller
Syrian border in 2012 to work with Syrian refugees. She was abducted in 2013 after leaving a hospital and held captive by the terrorist group Islamic State of Iraq and Syria (ISIS) aka Is-
When Kayla returned from the refugee camps in Turkey in May 2013, she told the Prescott Kiwanis Club, “As long as I live I will not let this kind of suffering be normal, something we just accept.” Carl said his daughter was a prolific writer and kept daily journals from the time she was a senior in high
Kayla visited Carl regularly at his Prescott body shop. She washed cars, ran errands and helped out wherever she was needed.
lamic State in Iraq and the Levant (ISIL). The Islamic State claimed she was killed by Jordanian bombers. Her family confirmed her death on Feb. 10 of this year, without commenting on the cause. Kayla grew up in Prescott. An active volunteer, she often helped at women’s shelters, local needs clinics and worked with youth. From the time she attended middle school, she volunteered for local Kiwanis Club events and homeless shelters. When she was a senior in high school, she received the 2007 Gold Presidential Volunteer Service Award for her work with groups such as Americorps and Big Brothers Big Sisters. In college, she set up the student chapter of Amnesty International at Northern Arizona University and organized a rally to raise awareness about genocide in Sudan. “She always had the heart to help and I always told her she had a gift from God and that she should use it,” said her dad Carl. “She was literally tormented by the suffering of mankind.” Considered by family and friends alike as a devoted humanitarian and activist, Kayla had previously worked with refugees overseas including Tibetans in India, Africans in Israel, and Palestinians in the Occupied Territories.
school. “One of her quotes was that she’s known for quite some time now what her life’s work is – using her hands to relieve suffering,” said Carl.That was what inspired her parents to name the foundation Kayla’s Hands. “What Marsha and I intend to do now is to move forward and do the things that Kayla couldn’t do on her own … without support and money,” said Carl. “We’re going to try to establish the foundation and fill the endowment so we can do the things that she gave her life to try to get done.” Their plans include traveling throughout the U.S. and abroad to spread the word about Kayla’s Hands. Last month, Carl attended a Kiwanis meeting in Farmington, NM, to thank the organization for its tremendous support. Carl is a past president of the Prescott Kiwanis Club. He and Marsha traveled to Madrid, Spain in mid-April to speak at a religious conference. “Everyone seems to be very interested in learning about Kayla so we’re going to try to introduce them to Kayla and thank them for the award,” said Carl. “… and promote Kayla’s Hands as much as we can so we can do the work that she was so desperate to have done.” Up until recently Carl and Mar-
26 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
sha ran Preferred Auto Body in Prescott. They sold it to Cameron Snow and his wife Erika in January 2014. Carl said the new owners have been very supportive of the Mueller family and are doing a great job with the business they ran for so many years. Carl said his first introduction to the auto body industry came in 1967 during his junior year of high school. He participated in a work program where he attended school for half the day and worked at a Ford dealership in Champaign, IL, for the remainder. He started out sweeping floors and keeping the paint room clean and eventually helped in the shop sanding and painting. He credits much of his learning from his peers. In 1981, he said business was slow due to the poor economy. Carl and the painter in the shop, Tom Gordon, decided to start out on their own and opened Preferred Auto Body. After renting a facility for three years, they purchased property in Prescott and relocated their shop. Tom sold his half of the business to Carl in 1998, which he ran with his wife and six employees until 2014. Now retired,
Carl and his wife can devote more time to Kayla’s Hands. “Our foundation is basically going to help suffering people, not just in the United States, but all over the world.” On the website created by her friends (www.forkayla.org) Kayla was quoted as saying, “It’s important to stop and realize what we have, why we have it and how privileged we are. And from that place, start caring and get a lot done.” There is an upcoming fundraising event being held in Tucson, AZ, on May 2: Celebration of Life and Fundraiser benefitting Kayla’s Hands. For more information call 520225-9786. There is also a Newsboys concert being held in Flagstaff, AZ, on May 24 to raise money for the foundation. For more information about Kayla’s Hands, email: carlmarsha muellerfamily@gmail.com or visit: www.kaylashands.org
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What are crash parts? p Take a closer look. Your insurance coverage. g Choosing th he right bod dy sh hop. A All parts are not created equal. equal Co ollissio on 101. What’s a Great Info for Shops DRP and whyy sho sho ould I caare? re? Where Where d do o aairbag irbags come come ffro rom? m? C Counterfeit ounterfeit ai airbags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insuraance coverage. Ch hoosing the right body shop. Helpiin ng you through the colllision repair pro oce ess. Collision 101. What’s a DRP and d why should I care? Where do airbags co ome from? Counterfeit airbags - what you need to know. Take a closerr lookk. What are crash parts? Your righttss as a consumer. Your insurance cove erag ge. Choosing the right body shop. Whatt are crash parts? Your riights as a co onsumer. Your insurance coverage e. Choosiing www.collision.honda.com th he riigh ht bod dy sh hop. All paarts t are not created equal. Take a closse ser look. Collision 101. What’s a DRP and w why should I care? Where do airbag gs come from? Counterffeit airbags - wh hat you need to know. Take a closse er look. What are crash parts? Your rights t as a consumer. Your insurance coverage. Choosing the right body shop. o Helping you through the colliission repair process. Collision 101. What’ss a DRP and why should I care? Wh he ere do airbags come from? Counter feit airbags - what you need to know. Takke a closer look. W What hat are are crash crash parts parts? You ur rights as a consumer. Your insurance coverage. Choosing the right bo ody shop. What are www.airbagaware.com crash parts? Yourr rights as a consumer. Your insurance coverage. v Choosing the right body sh ho op. All parts are not created equal. Take a closer look. Collision 101. What’’ss a DRP and why should I care? Where do d airbags come from? Counterfeiitt airbags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insurance ccoverage. Choosing the right bod dy shop. Helping you through the collisio on repair process. Collision 101. Wh haat’ss a DRP and why shoulld I care? Where do airbags come from? Counterfe eiit aiirbags - what you ne eed to know. Take a closer look. What are crash pa parts?? Your righ hts as a consumer. Your in nsu urance coverage. www.crashrepairinfo.com Choosing tthe he e rrig ig gh ht b ht body ody sshop. hop. Y Your our rights rights as as a cons consum consumer.. W What haat are crash parts? You ur in nsuran nce coverage. g Choo sing the right body sh hop. All parts Great Info for Consumers are not created equal. Helping you through the collision repair process. 28 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. HO N DA T EX AS
TE XAS
LOU IS IA NA
TEX AS
Bankston Honda
Honda of Frisco
Wholesale Parts Direct
Lewis v il l e
F ri s co
A us t i n
A l ex a n d r i a
800-344-8611 972-219-0021
866-442-2711 972-731-3176
800-234-4441 512-458-2910
318-448-8255 318-445-6677
Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com
Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com
Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com
Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com
Benson Honda
Honda of San Marcos
San A nt on io
Sa n M a rco s
800-727-8705 210-340-0831
866-392-1313 512-392-1313
Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com
Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com
Cleo Bay Honda
Howdy Honda
K il le e n
Au s t i n
877-253-6229 254-699-2478
877-941-6513 512-443-4300
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com
Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com
Fenton Honda of Longview
Russell & Smith Honda
Lo n gv ie w
800-228-1910 903-753-5921 Dept. Hours: M-F 7:30-6; Sat 8-4 victor.ortega@fentonmotors.com
Honda Cars of McKinney M cK in ne y
972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com
H o us t o n
800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 rnarvaez@russellsmith.com
Rusty Wallis Honda D a ll a s
OKLAHOM A
Walker Honda
N EW MEX I CO
Don Carlton Honda Tu l s a
800-722-2379 918-622-9670 Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com
Garcia Honda A l b u q u e rq u e
800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
Fowler Honda N o r ma n
888-715-3197 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com LOU IS IA NA
Superior Honda H a r v ey
800-943-4227 504-368-5687 Dept. Hours: M-F 7-5:30 parts@superiorhonda.net
877-466-3272 214-328-3891 Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com
AC U RA T EX AS
TE XAS
OKLAHOM A
L OU IS I AN A
Don Carlton Acura of Tulsa
Walker Acura
Tu l s a
800-359-8555 504-465-8555
Autonation Acura
Mac Churchill Acura
Leag ue C it y
F o rt Wo rt h
800-749-6227 713-371-4700
888-824-9634 817-806-0571
Dept. Hours: M-F 7-6; Sat 7-5 hoehns@autonation.com
Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com
David McDavid Acura
Sterling McCall Acura
A u stin
H o us t o n
800-575-3553 512-401-5976
713-596-2337 713-596-2338
Acura of Baton Rouge
Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com
Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com
866-733-2861 225-756-6166
David McDavid Acura Pl a no
888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
M e t a ir ie
Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com
LOU IS IA NA
B at on Ro ug e
Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
972-964-6044 Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 29
—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.
Industry Insight
Legal Battle That Began with Non-OEM Parts Back in 1997 Still Being Waged Today with John Yoswick
Back in 1999, a court decision in a class action lawsuit resulted in a $1.2 billion judgment against State Farm – at the time one of the largest judgLloyd Karmeier ments ever levied against an insurer. The ruling changed the way many insurance companies dealt with non-OEM parts for years, and despite the fact that the judgment was later nullified, the “Avery vs State Farm” lawsuit even today is seen as the basis for State Farm’s limited use of such parts. But now, 18 years after that lawsuit began, the lawyers who represented the vehicle-owners in the Avery lawsuit are still fighting against the overturning of that judgment by the Illinois Supreme Court. The amount they are seeking from State Farm this time is considerably larger: triple the
damages of the Avery case plus more than a decade of interest, all adding up to more than $8 billion. Though a portion of that money would still go to the vehicle-owners who sued back in the late 1990s, the current lawsuit has nothing to do with parts and everything to do with political influence. The suit alleges that State Farm played a pivotal role in the successful 2004 election campaign of a judge to the Illinois Supreme Court – a judge that the next year became the fourth vote on that court to overturn the Avery decision and nullify the judgment against State Farm.
Some quick background The original Avery lawsuit on behalf of about 4.5 million drivers who had non-OEM parts installed on their vehicles as part of their State Farm claim alleged that the parts were inferior to OEM, and thus the insurer breached its contract to return those cars to
“pre-loss condition.” A jury in 1999 agreed, finding also that State Farm had defrauded consumers by concealing known problems with the parts. In 2001 in response to an appeal by State Farm, an appellate court affirmed the decision but lowered the damage award to $1.05 billion. State Farm then filed an appeal with the Illinois Supreme Court. In 2004, Judge Lloyd Karmeier was elected to his first 10-year term on the Illinois Supreme Court. At that time, lawyers for the plaintiffs in the Avery case sought to have Karmeier recuse himself from participating in the Avery decision because they claimed his election campaign had received significant campaign contributions from State Farm. But Karmeier did not recuse himself. The next year, four of the six Justices on the Court—including Karmeier— voted to overturn the Avery ruling. The court ruled that the case should
RAY HUFFINES
not have been approved as a national class action because State Farm uses different policy language in different states and even within the same state. The Court found no breach of contract under any of the three different policy wordings related to the use of parts. It ruled that the plaintiffs in the case failed to demonstrate damages. And the court pointed out that plaintiffs did not contend that non-OEM parts are defective, only that they are all not as good as OEM parts. The decision emboldened insurers, some of which had curtailed calling for the use of non-OEM parts for some years after the 1999 Avery judgment, to return to pushing shops to use the parts.
New findings, new lawsuit But in 2011, lawyers for the plaintiffs in the Avery case filed a lawsuit claiming they had new evidence of State Farm’s involvement in the recruitment of Karmeier as a candidate and in fi-
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nancing the campaign that lead to his election to the Illinois Supreme Court. That campaign shattered state and national spending records for a judicial seat, with the two candidates spending more than $9 million combined. The current lawsuit argues that State Farm “delivered ‘tremendous’ financial support (at least $2.5 million and as much as $4 million) to Justice Karmeier’s campaign.” The plaintiffs’ attorneys argue, for example that State Farm attorney and lobbyist William Shepherd was on the executive committee of the Illinois Civil Justice League (ICJL), which recruited and endorsed Karmeier as a candidate for the seat on the court, and was involved with weekly conference calls with Karmeier’s campaign manager (the head of the ICJL). The money trail described in the court filings to date is a bit convoluted, indicating that the contributions largely came through intermediary organizations being influenced by State Farm. The ICJL, for example, through its political action committee made $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, the lawsuit argues, State Farm CEO Ed Rust was
part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated over $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign. Attorneys say the new evidence should lead the court to reinstate the judgment against State Farm, or alternatively redecide the case without Karmeier’s involvement. State Farm has argued that overturning the Avery ruling would be “disruptive in the extreme” to the Illinois legal system because the ruling has been cited in more than 200 subsequent court opinions. The insurer argues the contributions to Karmeier’s campaign from State Farm employees and others connected with the insurer were “quite modest,” estimated to be about $350,000. And it says the notion of “State Farm-influenced contributions” relies on an unsubstantiated argument that the insurer controls such organizations as the U.S. Chamber and the ICJL.
Deposition of a Supreme Court Justice The most recent argument in the ongoing legal battle has been over whether Karmeier can be questioned under oath. A deposition of a sitting justice on a state supreme court is extraordinarily rate. A magistrate judge earlier this year ruled the attorneys suing State Farm could submit 20 questions to Karmeier in writing, but that Karmeier could not be subjected to a formal deposition. But in a dramatic turn-about in March, U.S. District Court Judge David Herndon overturned that ruling, saying that having Karmeier give testimony is the only way to give both sides a fair opportunity to “explore the facts, and for the public, in the face of such allegation, to learn the truth.” Judge Herndon said Karmeier can be questioned about all aspects of his election campaign but not about his deliberations in any case while on the Supreme Court. In addition, he ruled that the plaintiffs’ attorneys also may depose State Farm vice president Robert Shultz about his involvement in Karmeier’s election. Shultz served on the Illinois State Bar Association committee that evaluated Karmeier and his opponent prior to the 2004 election.
PARTS PHONE: E!FAX: OF GEORGETOWN
The attorneys argue that Shultz should have recused himself from that evaluation committee given the Supreme Court’s pending review of the “Avery” lawsuit. But Schultz did not recuse himself, and the committee rated Karmeier as “highly qualified,” while rating his opponent, Gordon Maag, as only “qualified.” Why might State Farm have preferred Karmeier’s election over Maag’s? One possible reason: Prior to unsuccessfully running against Karmeier in 2004, Maag was one of the five appellate judges who in 2001 had affirmed the judgment against State Farm in the Avery non-OEM parts lawsuit. Judge Herndon said the deposition of Schultz could explore “whether he made any attempt to persuade his fellow committee members in any way, and if so what his motives in doing so were, and whether he was encouraged to do so by anyone acting on behalf of State Farm.” No doubt many such interim legal skirmishes will be waged before next January when an actual trial in the case is tentatively scheduled to begin. The legal battle that began over non-OEM parts back in 1997 has still not seen its final chapter.
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Mon-Fri: 7am-7pm Sat.: 7am-3pm www.autobodynews.com | MAY 2015 AUTOBODY NEWS 31
On Creative Marketing
Story Power For Shops
with Thomas Franklin
Most people think they know what “P.R.” means when they see it. Movies, TV, recorded music and other forms of entertainment rely heavily on promotion and most people think that P.R. is just a synonym for “promotion.” But the fact is P.R. stands for “public relations,” a very distinct aspect of marketing. The dictionary tells us “public relations” consists of “methods and means by which a person or an organization seeks to promote a favorable relationship with the public.” It is often confused with “publicity” which is the effort to get favorable mention is media and the press. Some shops create favorable public relations by holding events, sponsoring schools, sports teams and family oriented activities that will reflect well on the concerns and generosity of the shop. Very few are successful in obtaining broad media, publicity, and press coverage of their P.R. activities. The heart and soul of good publicity is the attention-grabbing story. Children, pets and traumatic experiences are some of the favorite subjects of publicity stories. This is where a typical shop could excel at adding powerful publicity to its spectrum of marketing tactics. Day in and day out shop estimators are presented with stories of accidents and driver and passenger trauma. Probably the majority of these stories are uninterestingly similar, but the occasional oddball story can be just what is needed to put a spark of life and interest into the shop’s marketing messages.
It’s well known that attracting repeated, ongoing visits to one’s website, will require regular updating with content that is attention-grabbing. A shop’s site that is heavily into promoting its state-of-the-art equipment and technical knowledge may be of interest to insurance executives looking for a DRP shop, or a dealership principal choosing an authorized collision shop, but few average drivers will pay much attention to this technical detail. But adding an additional dimension to the site with newsworthy stories of accidents, drivers and events could bring new, regular traffic to the site. There is a problem in getting a goal like this realized in most shops. Estimators are focused on getting the necessary information needed to present the estimate, capture the job, collect the keys, and then get the job in process. Adding a requirement to draw out the accident story could be regarded as interference with their job or just a waste of time. The entire process has to be made painless and trouble free. Fortunately today’s smart phones all have a memo-recording feature. All the estimator need do when the conversation begins is switch on the memo-recording feature on his or her smart phone. If desired, the customer can be asked to listen back to check for any errors in understanding. Or the story can be forwarded to the shop’s marketing person to see if the story really has P.R. potential and to clear it with the customer for use on the shop’s site and other media. Customers that don’t ob-
LORD Fusor Joins NABC as Diamond Member
The National Auto Body Council (NABC) announced the addition of LORD Corporation, manufacturer of aftermarket repair adhesives, to its top-tier Diamond level membership. LORD Fusor joins 31 Diamond members and nearly 300 total National Auto Body Council members across the country who donate time and resources for community service programs that help change lives and impact thousands of individuals. “We enthusiastically support the National Auto Body Council’s vision and mission. They are a perfect complement to our company’s core beliefs and
citizenship initiatives to contribute positively in the communities where we work and live,” said Tim Jackson, Regional Manager/I-CAR Liaison at LORD Fusor. “We look forward to collaborating with our colleagues to promote the positive impact our industry makes in local communities nationwide.” NABC members represent companies from all facets of the collision industry—independent body shops, MSOs, insurance companies, rental car companies, parts and material suppliers and manufacturers, and industry consultants.
32 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
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
ject to the use of their story may also be willing to provide photos, or allow shop photos of their vehicle along with the story. At this point the entire story may be appropriate for YouTube, Facebook and other media. While the customer stories can provide good update content for media, weekly or monthly, another story has great potential to build customer loyalty. Most shops were started by one person or siblings or by an entire family. Very often that story is one of overcoming difficulties and possibly even hardships to arrive at the thriving, stable enterprise it is today. It is often a story of help received, from family, friends, suppliers and even potential customers. People are drawn to stories of perseverance and deeply felt caring. An effective story can make the viewer feel he or she is a participant in the struggle and trauma that evolved into the customer friendly business that it has become. I recall one shop that had
photos of three generations that built the business posted in the waiting area. Naturally these photos on the website and related media will add great depth to the story. Of course this story should have a special, permanent place on the shop’s site, but it can have even more P.R. value if it is told to audiences whose members’ vehicles could one day become jobs. Owners who belong to chambers of commerce, civic government or social groups, or other organizations that meet regularly, could have an opportunity to tell their growth and development stories. Especially young people with an entrepreneurial bent can be inspired by speakers willing to talk about their struggles to get where they are today. The purpose of P.R. is to promote a favorable relationship with the public. There’s no better way to create a favorable impression than telling an inspiring or entertaining story.
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 33
Social Media for Shops Tracking Your Success (or Lack of) Using Google Analytics with Ed Attanasio
Body shop owners as a rule are adept at studying and interpreting all kinds of numbers and statistics, and that’s why the successful ones are very good at tracking their performance. They calculate each minute that goes into every vehicle and what exactly their profit will be at the end of each day. They know how to read Excel sheets and decipher the numbers and use them to refine their processes. It’s in their DNA and in a fast-moving, highproduction environment having useful numbers at your disposal is vital. So, when it comes to online marketing, website development and SEO, the average body shop out there wants to know where their money is going and how many customers they are engaging through the Web and other online endeavors. They want to know where the buck starts and ends, in clear terms and with data they can use. “I have been doing a blog now for eight months, but I have no idea whose reading it,” one shop owner told me recently. “People tell us they visit our website all the time, but how much time do they spend there and is it leading to new customers?” is another question pretty much anyone in the collision repair industry would want answers to. Body shop owners and managers have 1,600 different things going on every day, so worrying about their results through their online marketing efforts is probably issue #1,601. But, even if they’re making good money and the shop is full of cars, they’re always keeping both eyes on the bottom line. The worst thing for a body shop owner is to think he or she is not getting good value for his or her money. And that’s why Google Analytics can placate the troubled minds of collision repairers all over the world, because it provides real, concrete and undeniable numbers that can tell you whether you’re succeeding or floundering online. What exactly is Google Analytics? Google Analytics is a free web analytics tool that generates detailed statistics about activity on a website. On its website, Google explains that the system “helps you analyze visitor
traffic and paint a complete picture of your audience and their needs, wherever they are along the path to purchase.” As the world’s most popular web analytics tool, Google Analytics is currently installed on over 10 million websites, including 60% of the top 10,000 websites on the planet and 50% of the top 1 million websites in the world. Website owners use the service for two main reasons—it’s 100% free to use and also highly reliable. Another plus is the fact that Google made it as simple as possible, so that body shop people that are on the lower-tech side can quickly use it and make it a part of their overall online marketing package. To learn how to use it, there are a ton of very useful videos on YouTube. David Moore, owner of Collision Websites in Tulsa, OK, has been using Google Analytics for all of his body shop clients since day one and has used it as an invaluable tool for their success online. “When I show shops how it works, the light goes on,” Moore said. “It is a tool and if you really learn how to use it, you can do some great things with it. For instance, many of my clients use it to track the results of some of their marketing efforts, such as e-mail marketing, online ads and other promotions. By referring to Google Analytics right after sending out 2,000 email newsletters, for example, you can see if it works or not. If your traffic does not increase, then obviously you have to come up with a new approach. Maybe the graphics didn’t draw people in or maybe the timing of the newsletter was poor. Google Analytics can help you to re-calibrate your marketing, based on real results.” The reports you’ll receive from Google Analytics are many, but here are the main measurable factors that you will surely want to know and refer to often: ● A graph showing the daily traffic the website receives. ● The number of visitors who came to the site during a specific time period. ● The average number of pages that visitors viewed while on the site. (The industry average is approximately 1.8
34 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
pages.) ● Bounce rate: What a visitor does once they land on the homepage. If they leave the homepage without looking at any other pages, that’s considered a “bounce.” ● The average amount of time a visitor spends on the site ● Depicted in a pie chart, Google Analytics will tell you how much “Direct Traffic” you’re getting. This means that the user knew the URL, typed it in and hit “Enter.” ● Content View shows what pages visitors are visiting. Watch this section to measure how many people are doing what you want them to do, such as clicking on pages like “Locations,” “Map,” or “Blog.”
caught up in how many visits their site is getting and I tell them they should be more concerned about the quality of the visits,” he said. “When someone visits your site or your blog, how many pages are they looking at and how long are they staying on each page? If people are looking at your site for less than a minute and only visiting one page, maybe you need to re-design your site, so that people will stay for a while.” So, if information is key and the numbers tell the story, sign up for Google Analytics today and start knowing rather than guessing when it comes to your success (or lack of) online.
We asked Moore, What are the most significant numbers to be looking for when studying monthly Google Analytics reports? “Some body shop owners get all
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New GM Silverado Engineered for Better Serviceability During Collision Repair by Stacey Phillips, Assistant Editor
When General Motors initiated the redesign of the Chevy Silverado 1500 full-size pickup truck several years ago, an important aspect of the project was to incorporate features to reduce the time, cost and complexity during the collision repair process. “When we design trucks, we don’t only consider what features our consumers demand from a full size-truck,” said Mark Szlachta, Advanced Service Design Engineer for General Motors. “We also approach the process
as a service engineer was to look at the project from a body repair perspective. “I’m looking at the vehicle from the perspective not how it’s going to look when it’s done, or how it’s going to be built, but how it will fare in the event of a crash. How we are going to take it apart, how we’re going to put it together and try to make sure that at the very least we don’t lose any serviceability,” said Szlachta, who has a background in collision repair. “In fact, our job is to always improve serviceability.”
Tom Wilkinson, communications manager for Chevy Trucks, said, “The other thing that continually evolves are safety standards and crash testing, such as new roof crush standards and new offset front impact
The 2015 Chevrolet Silverado truck
standards. We have to do a lot of reengineering to make sure that you’re doing well in those tests.” The new Silverado is constructed using significant amounts of highstrength steel, particularly in the frame and cab structure. He said this makes the truck stronger and more rigid for improved safety, ride and vibration control, and helps reduce mass for improved fuel economy. When Autobody News asked
Wilkinson if there were any plans to change the Silverado’s body components to aluminum during this midcycle update, he said there are no plans to do so. “We already use aluminum hoods on full-size and midsize trucks,” said Wilkinson. “Given the ongoing wave of new, refreshed and redesigned vehicles being introduced each year, it’s more important than ever that automakers focus on design for affordable reparability,” said John Van Alstyne, President and CEO of I-CAR, the Inter-Industry Conference on Auto Collision Repair. “Understanding and adapting to the issues and opportunities associated with advanced materials and technologies is not only a key consideration in the early stages of the design and engineering process, but the impact on repair must also be considered upfront to ensure complete, safe and quality, and affordable repairs throughout a vehicle’s total lifecycle.” The 2015 Silverado is currently being sold by Chevrolet. For more information, visit Chevrolet.com
Find Your GM Parts Here! • Highly Competitive Discounts • Genuine GM Parts • Se Habla Español • Free Delivery Please call or fax your inquiries today! Engineers incorporated several features into the new Chevrolet Silverado’s body structure in order to help reduce the time, complexity, and cost involved with body repair
with our technician hat on, ensuring we engineer a truck that is straightforward and cost-effective to repair.” When Autobody News asked Szlachta the various requirements that went in to redesigning the truck, he said that one of his primary goals
Szlachta said a full-size pickup truck is typically re-engineered every five to seven years. “The reason why we change is because technology changes,” he said. These new technologies help make the truck quieter, stronger, lighter and more fuel efficient.
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Lawyers Picked to Lead Posts in Air Bag Lawsuits Two South Florida attorneys and a lawyer who represented former Vice President Al Gore in the 2000 election recount have been chosen for leadership posts in lawsuits over defective auto air bags. U.S. District Judge Federico Moreno is presiding over dozens of lawsuits consolidated in Miami federal court. The lawsuits seek unspecified economic and personal injury damages against air bag maker Takata Corp. and numerous
auto makers. South Florida attorney Peter Prieto of the Podhurst Orseck firm will be chief counsel for all plaintiffs. Curtis Miner, of the Coral Gables firm Colson Hicks Eidsen, was named lead counsel for the personal injury plaintiffs. David Boies of New York, who represented Gore, was picked colead counsel for plaintiffs seeking economic damages along with Todd A. Smith of Chicago.
36 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
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American Honda Launches ProFirst Certified Program by Victoria Antonelli and Stacey Phillips
After more than two years of research and development, American Honda Motor Co. announced the launch of the ProFirst Certified body shop program in March. “Today’s vehicles are more complicated and more sophisticated with a higher degree of technology than ever before in the way they are designed, built and the materials used,” said Gary Ledoux, Assistant National Manager for American Honda Motor Co. “Honda and Acura are no exception.” Ledoux said collision technicans cannot repair “tomorrow-tech” vehicles with “yester-tech” knowledge, training, tools and equipment. “That’s what ProFirst Certified is all about—proper, complete and safe repair of Honda and Acura vehicles through proper training, repair information and equipment.” The program is open to independent and dealer-owned collision shops. To qualify, shops must be either an I-CAR Gold Class shop or a VeriFacts VQ or Medallion shop. In addition, shops must complete Honda/Acura-specific training hosted by I-CAR, meet tool and equipment requirements, meet facility requirements, and have a CSI system in place. “I think this is going to help raise the bar for all shops inasmuch as the quality of the repair they provide,” said
Ledoux. “With the advent of the unibody car in the early 1980s, technology changed dramatically and shops had to change to keep up.” He said the same thing is happening today. “But the person who will benefit the most, is the person who should benefit the most—the Honda and Acura owner when their car is repaired by a ProFirst Certified shop.” He added that car-building technoloogy is not going to stand still. He predicts that “Ten years... or maybe even five years from now, we may be driving cars that use a technology that hasn’t even been invented yet. ProFirst Certified will change and adapt with the collision industry and business needs of American Honda to help bring value to participating shops, and proper repairs for Honda and Acura owners.” “No brand earns more Top Safety Pick awards than Honda,” said Steve Osborne, Assistant VP of the Parts, Service & Technical Division. “It is only logical that we support safe and proper collision repair of our customers’ vehicles and that we identify repair shops that are certified to possess the necessary skills, training and equipment to perform those repairs.” During its development, the ProFirst Certified program involved people and departments with American Honda including parts marketing, service training, service engineering, and service publica-
tions. The company worked with several of their business partners, including Axalta Coatings, I-CAR and VeriFacts. I-CAR worked with Honda several years ago with the initial launch of the Honda ProFirst program. Gold Class was, and still is, the principle training requirement for body shops looking to get ProFirst Certified. “Partnering with Honda to bring a portfolio of training modules to the industry, and recognizing Gold Class designated businesses as a path to the ProFirst program builds upon what they have already been doing to help assure the total capability of a repair shop to perform complete, safe and quality repairs,” said John Bosin, I-CAR Director of OEM Segment Development. “Honda is one of the earliest and most significant contributors to I-CAR’s Repairability Technical Support (RTS) Portal and they continuously work with ICAR to ensure their information on the ‘RTS Portal’ is comprehensive and a valuable resource to the industry.” Verifacts shops are also eligible. “VeriFacts is excited and honored to be a preferred program partner for the Honda ProFirst Certified Program,” said Nancy Fiorino, the National Director of Sales for VeriFacts Automotive. “Honda clearly shares our passion for excellence, earning IIHS recognition as 2015 Top Safety Picks in virtually all vehicle categories. Continued from Page 14
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G&C Responds
tween 15-20 automotive technicians at its Santa Rosa location, some as independent contractors and others as employees. Beeson said that over the years the company has arbitrarily changed its classification of automotive technicians from employees to independent contractors and independent contractors to employee status with no changes in their job duties, work location or working conditions. “For example, Medeiros was at one time categorized as an emContinued from Page 14
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confirms he is an independent contractor and that he is the owner of Lippard Enterprises. Lippard has had as many as six people working for him within the facility, where he rents two stalls. Some crews work day and night on big jobs. According to Lippard, he was very happy as an independent contractor, and he claimed “I never want to work hourly again,” acknowledging that he
“Similarly, VeriFacts VQ Medallion and VQ facilities are recognized by Honda and consumers alike for their sustained excellence in collision repair. These exceptional repair facilities open their shops to independent thirdparty verification, giving the vehicle owner complete peace-of-mind that their vehicle was repaired using the latest repair methods, technology and procedures—tested and backed by Honda and industry best practices.” She added that the program will help ensure a safe, smart and transparent repair process. Some of the benefits include a plaque for display plus free online access to all Honda and Acura service and repair information and parts catalogs. The shop’s contact information will be placed on the American Honda body shop locator website. Qualified shops will receive exterior signage, collateral promotional materials, and free access to a collision tech-line for help via telephone. The cost of the program will be $2,700 annually. A limited number of shops will be awarded ProFirst Certified status in select U.S. metro areas. Axalta Coating Systems will provide inspection services to audit shops initially and then on an annual basis to confirm consistent compliance with program requirements. For info, contact profirst@ahm.honda .com.
ployee and then was re-categorized as an independent contractor with no change in his essential work duties,” said the complaint. “Bigger shops like G&C are taking over the mom and pop smaller shops. This is all part of it. They save millions of dollars by not having to pay all of the compliance requirements for employment law that all of their competitors do,” said Beeson. “They should be treated as employees and given all of the protections of employees under California law.” The case is set for trial September 15, 2015. Autobody News will continue to report on its developments. grosses $4,000 to $6,000 a week in the ABRN article. On April 14, 2012 Joseph Lippard posted on Facebook: “…Another Saturday at the shop!!! I love having free reign to work as much as I can!!!” Actual damages are paid for actual losses, but these plaintiffs lost nothing. In fact, they made many times more than what they could have possibly made as employees of G&C, and they enjoyed the lifestyle that came with owning and operating their own businesses.”
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 37
Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ NASCAR® and Sherwin-Williams, the nation’s largest specialty retailer of paint and paint supplies, announced a three-year extension to their Official Partnership. The newly signed extension will designate Sherwin-Williams as the “Official Paint of NASCAR” through 2017. “Our continued partnership with Sherwin-Williams is another example of FORTUNE 500 brands successfully using NASCAR as an integral part of their marketing mix,” said Norris Scott, Vice President Partnership Marketing. “Sherwin-Williams’ integrated approach using our intellectual property, both at track and at retail has proven highly effective. We look forward to expanding the Sherwin-Williams relationship across its multiple business divisions.” By continuing as an Official NASCAR Partner, Sherwin-Williams will also retain its designation in the “Official Automotive Paint of NASCAR” and the “Official Transportation Finishes of NASCAR” categories. Sherwin-Williams Automotive Finishes division will further expand its visibility as one of the leading product innovators and servicers to the collision repair and original equipment industries. Sherwin-Williams is the
Continued from Page 24
WIN 2015 Winners
she likes to “fight the status quo.” Eight years ago, dismayed with the friction and contentiousness of other collision repair groups in her state, she founded and served as Executive Director of the Connecticut Collision Repair Specialists (CCRS) Organization, with the goal of bringing all constituents of the industry together in a more cooperative environment. Recently, CCRS became ASA Connecticut. Siembab entered the industry 20 years ago as a marketing professional with the CARSTAR organization, ultimately becoming Marketing Director for CARSTAR Corporate for over 225 locations. In 2008, she was drawn back to the shop environment, and is now overseeing day-to-day operations at the CARSTAR Berlin location in Berlin, Connecticut. “I’ve known Lisa for over 10 years,” said Dan Young, Senior Vice President of CARSTAR. “If I’m choosing sides for a team and I want to win, I’m picking Lisa. She’s professional. She’s competitive. She per-
only direct distribution automotive refinish manufacturer and provides service to its collision repair and OEM customers through nearly 200 company stores in the U.S. and Canada. “We’re extremely excited and honored to continue and expand our role as the ‘Official Automotive Paint of NASCAR,’” said Adam Chafe, Vice President of Marketing for SherwinWilliams Automotive Finishes. “Since 2000, some of the biggest names in motorsports have trusted their vehicles’ finish to Sherwin-Williams. We aim to help teams cross the finish line and ensure that their cars and sponsors always look their best on the track; that also holds true with every repair and repaint our collision repair center customers provide for their end customers.” The designation as the “Official Transportation Finishes of NASCAR” will also help Sherwin-Williams further expand its visibility as one of the leading product innovators and servicers to the fleet refinishing, heavy truck and bus, aerospace and commercial manufacturing industries. “More than a dozen NASCAR teams currently use Sherwin-Williams Automotive Finishes,” said Bobby Moody, Director of Motorsports for
severes through tough times and can be as compassionate as any person I know.” WIN said her compassion is shown in the volunteer work she does to benefit the collision community and her local community. Siembab said she believes strongly in helping those who are often overlooked, especially where language may be the barrier. To this end, she volunteers at Literacy Volunteers of Greater Hartford, a non-profit organization providing adult literary services to the Greater Hartford Community, and teaches for English for Speakers of Other Languages (ESOL), a program that focuses on literacy and speaking skills to assist the student in entering the workforce. Siembab said she loves working with her students and providing them with the skills that will enable them to thrive and compete in the workforce. She has also served on the National Auto Body Council’s In-Language Committee, which focused on translating a glossary of collision industry terminology and translating it from English to Spanish. See WIN 2015 Winners, Page 48
38 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
Sherwin-Williams. “The 30-plus drivers who now use Sherwin-Williams have more than 200 NASCAR Sprint Cup Series victories between them and make up a virtual ‘who’s who’ of NASCAR’s finest finishers.” Through its renewal, SherwinWilliams maintains its role as a Contingency Sponsor in the NASCAR Sprint Cup Series™ and NASCAR Touring & Weekly Series. As part of the Contingency Program, Sherwin-Williams will be title sponsor of the Fastest Lap Award in the NASCAR Sprint Cup Series.In addition, Sherwin-Williams continues as a Proud Partner of the International Motor Sports Association™ (IMSA®), extending a partnership that began in 2013. For more information about Sherwin-Williams Automotive Finishes, or the brand’s motorsports program, visit www.sherwin-automotive.com or call 1-800-798-5872.
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Car-O-Liner® Names New OEM Account Manager
Car-O-Liner® announced it has hired Mark Weinmann as an OEM Account Manager on March 18. In his new role, Mark will work with Peter Richardson, Director of National Accounts, and interact closely with Car-O-Liner OEM partners across North America. “We are excited that Mark is joining the Car-O-Liner organization. He is a great addition to our team,” said Richardson. “Establishing a strategic partnership with our customers is of high importance to us. Mark’s knowledge of the industry is an asset to reinforce our relationships with key OEM partners.” Weinmann joins Car-O-Liner after 12 years at Shure Manufacturing where he served as the National Sales Manager responsible for sales and customer service for both Distribution and OEM sales channels. He has worked closely with the automotive OEM equipment programs to promote sales growth and develop OEM brand-specific products for automotive dealership initiatives. He also spent 10 years with Center Oil Company as a Petroleum Trader in St. Louis, MO.
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Industry Insight
—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.
SCRS Event Brings Shop Associations Together to Discuss Efforts, Share Ideas with John Yoswick
Collision repair association leaders from around the country met in Secaucus, NJ, in mid-March to share ideas and discuss state legislative or regulatory successes and efforts. The “2015 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASPNew Jersey’s NORTHEAST™ 2015 trade show. Ed Kizenberger, executive director of the New York State Auto Collision Technicians’ Association (NYSACTA), moderated the meeting and told attendees about the legislation his association is supporting that would prohibit insurers from requiring repair shops to use specific vendors or processes for the procurement of parts or other necessary materials. The bill (SB 1207) is similar to one introduced in New York in 2013, and to bills introduced this year in Illinois and Minnesota as well. Kizenberger also shared a letter he wrote to New York Attorney General Eric Schneiderman, asking him to view the February 11 “Anderson Cooper 360” segment on CNN examining insurer involvement in the collision repair industry. He urged Schneiderman to join other state attorneys general in either filing a lawsuit against insurers regarding some of their practices, or to join Sen. Richard Blumenthal (D-Conn.) in urging U.S. Attorney General Eric Holder to examine consumer steering and other insurer practices. Such efforts can pay off, Oklahoma shop owner Gary Wano said at the meeting. He said he was among a handful of repairers who met with representatives of his state’s Attorney General’s office last fall to discuss several issues, including “steering.” The timing, he said, was fortuitous. “The Assistant Attorney General looked at us and said, ‘Wow, that just happened to me,’” Wano said. “Her son had just been involved in an accident, and GEICO Insurance told her to go to a shop 20 miles away from her home, after she already said she had a particular repair facility she liked to
use in her neighborhood.” The information from the shops led Oklahoma Attorney General Scott Pruitt to issue a warning to consumers about steering, and to a subsequent public service announcement on the topic produced by the state insurance department. The phone number listed in the public service announcement connects consumers with a taskforce that can take verbal as well as written complaints from consumers. “This is the most action we’ve seen in Oklahoma since the early 1990s,” Wano said. SCRS’ Aaron Schulenburg said such efforts help those in other states as well; the Oklahoma public service announcement, for example, helped prompt a nearly identically-worded one in Montana. Legislation is a big focus of the Alliance of Automotive Service Providers (AASP) of Massachusetts. House Bill 857 would change two currently-required consumer disclosures. Under the bill, the current disclosure on any estimate that includes nonOEM parts would have to be in at least 12-point type rather than at least 10-point type; it would also be extended to say that use of such parts may void existing warranties, and would have to include notice of the consumer’s right to use the shop of their choice. The second change would require any insurer recommending shops to also tell the consumer verbally or in writing that, “Under Massachusetts law, you have the right to choose a registered repair shop of your choice. All registered repair shops must guarantee their repairs.” Another Massachusetts bill (HB 883), similar to one introduced two years ago, would require the state’s insurance commissioner to establish a minimum labor rate insurers must pay to shops based on the average of the hourly rates paid by insurers in five surrounding states (where labor rates are as much as $10 higher). The commissioner would have to review the minimum hourly rate once every three years. AASP-Massachusetts is also backing two other bills that will
40 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
make changes to the state’s Auto Damage Appraiser Licensing Board (ADALB). One bill would shift oversight of the board from the Division of Insurance to the Division of Professional Licensure. Jillian Zywien, executive director of AASP-MA, said all other state licensing boards are under that division, and the association believes the ADALB should be as well. The second bill (H 816) would add two additional members to the 5member ADALB. The board currently includes two representatives affiliated with the body shop industry, two affiliated with insurance companies, and a chairman (appointed by the commissioner of insurance) who is not affiliated with either industry. Under the proposed legislation, the state attorney general would appoint two additional board members, one representing the attorney general’s office and one representing consumers.
“The ADALB oversees all licensed appraisers in Massachusetts and is a place where repairers and consumers can seek remedy for improper repair appraisal negotiations,” Molly Brodeur, president of AASP-MA, said. “The Board’s current configuration has eroded its mission. There is also undue influence from the Division of Insurance, which further complicates the ADALB’s ability to act. Our legislative and regulatory agenda is focused on bringing order and functionality back to the ADALB.” Representatives from Connecticut at the meeting discussed the awaited decision in The Hartford’s appeal of the $34 million dollar judgment against the insurer in a class action lawsuit brought by the Auto Body Association of Connecticut (ABAC) and several shops in the state. The two sides in the case squared off before the Connecticut Supreme Court in January, with The
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Hartford appealing the 2013 judgment that awarded repairers millions in compensatory and punitive damages after a jury agreed The Hartford suppressed labor rates through unfair trade practices. “There’s no specific timeframe, but my sense is probably within the next three to six months we’ll have a decision,” said attorney John Parese, though he is not personally involved in the case. With interest, a ruling in the shops’ favor would probably result in a net award of close to $40 million. Tony Ferraiolo, the president of ABAC, was asked at the meeting if he feels that’s enough to change the insurer’s behavior. “It’s taken 14 years since we filed the case to get to the final decision on this thing,” Ferraiolo said. “Even if they do have to pay that amount, can you imagine what they made by not having to change the way they do business for the 14 years?” Ferraiolo said the association also is supporting legislation (5655), introduced on behalf of a jobber in the state, that calls for clarification of state sales tax regulations on automotive paint. Ferraiolo said his state is
one of five with a “double-taxation issue, where we are paying tax to the jobber on paint-related materials, and then charging customers a tax on it on the other end.” Tony Passwater of the Indiana Auto Body Association said he has created a website (www.iHaveBeenSteered.com) and a toll-free phone number (855-No-2-STEERing) to allow consumers to decribe their interactions with an insurer related to shop choice. Passwater said consumers who may be hesitant to fill out a “complaint form” may be more apt to “share what their experience has been.” He said sharing the CNN story as well as others on social media is helping build consumer awareness. “I think we’re making some inroads with consumers, which is what we’ve never been able to do very well in the past because it’s hard to reach consumers,” Passwater said. “I really believe that social media is our equalizer.”
NABC Awards for Distinction and Shop Image, Nominations
Do you know of an auto body shop that had a great facility makeover last year? Or an individual in the collision industry whose selfless actions were for the benefit of others? NABC is seeking nominations for its two industry awards: the Award of Distinction and the Body Shop Image Award. NABC’s awards program recognizes individuals and collision industry facilities that have made a beneficial impact in their communities and in the industry. As part of its 2015 recognition program, the National Auto Body Council plans to publicize, highlight and call attention throughout the year to outstanding individuals and body shops and their extraordinary efforts. “The NABC industry awards program celebrates businesses and individuals whose efforts exemplify the professionalism and integrity of our collision industry,” said Marie Peevy, Chair of NABC’s 2015 Awards Program. Online nominations and more information for both awards are available at www.NationalAutoBodyCouncil.org. Contact Marie Peevy, Awards Program Chair, at marie.peevy@auto motivetrainingcoordinators.com or call 630.881.7945.
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one insurer pays 83.33% of these shops. Performing clean-up of LKQ parts is always done by 74.07% of polled shops, but only 52.83% usually or always bill for their time. Twothirds of the shops receive payment from an insurer, with 80% being paid in body and the remaining 20% in body and paint. When non-OEM parts don’t fit properly, 60.38% always provide additional labor and materials, but only a quarter of those shops (15.69%) always add it to their estimate. Insurers do not compensate 60.78% of surveyed shops, but 98% would request payment if not for adverse influence from the insurance industry. Richards hopes that “other shops can utilize this survey as well in order to receive compensation for procedures they have had to do for FREE because it had to be done, yet insurers refused to pay. We plan on using this survey to get paid for procedures and processes that MUST be done.”
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Willets Point Shops Settle Lawsuit, Vacate Queens, NY, to Allow Construction of $3 B Mall by Autobody News Staff, Wire Stories
The final 50 or so business holdouts in Queens who resisted a $3 billion mixeduse development planned for a site west of Citi Field, have settled a lawsuit with the city and the project’s developers, paving the way for the first phase of construction of the massive facility. The impacted businesses filed a lawsuit on Feb. 4 against the city and the developers, Sterling Equities and Related Companies, alleging they were unlawfully forced out by the project, which will be partially built on city parkland. The businesses, known as the Sunrise Cooperative, have agreed to vacate Willets Point by June 1, though many have already left. Under the agreement, dated March 19, all litigation was dropped and a $5.8 million escrow fund was created to aid in the businesses’ move to the Bronx. In return, the city will pay a total of $4.8 million into the escrow fund, while the development team of the Related Companies and Sterling Equities will contribute $960,000. The cooperative, a collection of nearly 50 businesses that have operated along the unpaved streets in a part of Corona, will also be required to contribute $143,000 to the fund.
“Sunrise is happy that they got to an agreement,” said the Urban Justice Center’s Harvey Epstein, who represented the group in court. “We look forward to building a large auto co-op, and to everyone in New York starting to use it.” The cash can also be used by Sunrise to pay rent to the site’s landlord. The group plans to convert the one-story property into an auto mall with stalls for each of the businesses within six months, and will also borrow $550,000 from the city to cover some of those costs. “The relocation of the Sunrise Cooperative represents a critical step in the advancement of the Willets Point development, which will bring thousands of jobs, units of housing and square feet of retail space to northern Queens,” said Economic Development Corp. President Kyle Kimball. Related and Sterling are spending $3 billion to build a 1.4 million squarefoot mall to the west of Citi Field, along with retail and about 2,500 apartments on about 22 acres to the east of the stadium in Willets Point. But in February 2014, Sunrise filed suit in state Supreme Court, alleging that the displacement of the businesses violated several laws. It was unclear exactly how many more businesses need to be relocated,
but the city estimated that nearly twothirds of the 130 shops have now received some form of compensation. “There were many layers of negotiation that needed to take place,” said City Councilwoman Julissa Ferreras, who represents the area and helped hash out the agreement. Their planned move across the East River is perfectly legal, but now it’s Bronx residents who are getting stirred up, worrying the influx could spark a resurgence in violence and auto thefts in Hunts Point. “The increased competition could make people desperate,” said Josephine Infante, president of the Hunts Point Economic Development Corp. “The people here don’t want their bread and butter taken right out of their mouths.” “We don’t have any other choice,” said Marco Neira, the Sunrise president. “We’d rather stay in Queens, but there was nothing big enough.” Neira said the city’s Economic Development Corp. pledged more than $2 million to cover moving costs, security deposits and two years of rent for the 37 members of the co-op. Neira denied the incoming shops
would be a threat because of the unique, one-stop automotive emporium the warehouse layout will afford. But Hunts Point is already deluged in auto-related businesses, a cluster of shops that line Southern Blvd. and Hunts Point Ave. Bronx residents say the deal raises traffic, safety and environmental concerns that they believe should have been vetted and addressed. Bronx Community Board 2, which covers the area, voted to formally request the city Economic Development Corp. to conduct environmental and traffic-impact studies of the site. The board also wants the city to repurpose $5 million of the funds earmarked for the remediation of contamination at Willets Point to assess the situation. But officials say the city is not responsible for any impact the influx may have on the Bronx, even though it is essentially footing the bill. “The relocation of the Sunrise Co-op to their new facility is an as-ofright transaction between two private parties,” a spokeswoman for the Economic Development Corp. said.
Auto Salvage Yards in NC Searchable for Parts Pricing
The state of North Carolina is one of the largest areas in the country to find second hand automobile parts retailers. Auto salvage yards in NC can now be searched by used parts buyers on the web through the Locate Car Parts website at http://locatecarparts.com/autosalvage-yards-in-nc. The parts location tool is expected to open up a different method of finding domestic or foreign components for sale. Those who enter the state searchable system select a part as well as a vehicle year that will be used by NC yards to calculate prices. All salvage yards participating in the search system distribute price
quotations. “Both North and South Carolina yards can be found while using our dedicated system to help auto parts buyers find good pricing and better selections of inventory,” said a LocateCarParts. com representative. Because salvage dealers differ from a regular junk yard, parts research can be more specific. A salvaged motor vehicle is often purchased through insurance companies or at auto auctions in order to obtain the best quality components. The locator tool can be used by auto body mechanics, consumers or third-party retailers of vehicle components.
TX Driver Sentenced for Possession of 160lbs of Marijuana
A woman who was found to have more than 160 pounds of marijuana in her rental car on Christmas Day 2013, was sentenced on April 2 to 24 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas. Christini Lynn Brashear, 45, of Rocklin, California, pleaded guilty in November 2014 to an indictment charging one count of possession
with intent to distribute marijuana. on April 2, Judge Cummings ordered that she surrender to the Bureau of Prisons on May 8, 2015. According to documents filed in the case, on December 25, 2013, the Abilene Police Department received multiple calls regarding a small sport utility vehicle that was on Interstate 20 traveling east at approximately five miles per hour.
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Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT with John Yoswick
20 years ago in the collision repair industry (April 1995) Members of the Automotive Service Association (ASA) Collision Operations Committee are optimistic about “Service First,” an enhanced claims handling program introduced by State Farm. According to a State Farm news release, the pilot program was scheduled to be introduced in several states by mid-May. It would streamline auto damage claim handling and repair processes, allowing customers to go directly to qualified facilities for inspections and estimates without visiting State Farm drive-in claim service centers. The news release states that the program would also allow repair facilities who discover damages after the initial estimate to make repairs without reinspection by State Farm claims staff. “We don’t think another inspection is automatically required when the work is being performed by a well-qualified expert with whom we have a solid business relationship,” said Bill Hardt, State Farm assistant vice president of claims. “We see this as a very progressive and much needed addition to the process to provide quality repairs for the consumer, and believe it supports the historical focus of all honest and ethical repair facilities,” said ASA’s Collision Division Director Russ Verona of East Rockford Collision Center in Rockford, IL. – As reported in Collision Expert. State Farm continued the “Service First” program for about a decade, but by 2001 had already begun rolling out “Select Service,” the program that eventually succeeded “Service First.” Verona died in 2006 at the age of 73.
15 years ago in the collision repair industry (April 2000) On the same evening that ABC’s “20/20” news program was blasting the collision repair industry for consumer deception and insurance fraud, a Kansas City family received the keys to a new home built by industry volunteers. In a presentation during a Collision Concepts reception, Massachu-
setts shop owner Chuck Sulkala said the project, coordinated by the National Auto Body Council (NABC) and Habitat for Humanity, was a public demonstration of the many positive
ingly passed a bill that requires insurchoice.” ers to admit any qualified collision re– As reported in Auto Body Repair shop into their direct repair pair News. Interviewed three years program (DRP). Senate Bill 388, later, Montana shops said the state’s which was signed by the governor, is unique law was working. “We can’t intended to help ensure that change the [DRP] criteria, but we non-DRP shops can compete have the right to see it and decide if with DRP shops for cus- we want to meet it,” Donna Fastenau tomers, and is in some ways of Hank’s Body Shop in Billings, MT, an anti-steering law because said. “The companies that had previit will remove barriers that ously removed us…had to open the can develop from DRP rela- door and let us back on,” agreed Max tionships. Yates of Yates Body Shop in Butte, “I think it will go a long MT, who said his shop had been reway toward leveling the play- moved from multiple DRPs because ing field,” said Gene Dziza, of his insistence on including necesChuck Sulkala led a National Auto Body Council (NABC) owner of Collision Craft in sary procedures on his final bills that project in 2000 to build a Habitat for Humanity home for a Kalispell, MT, who pushed other shops may not. family in need. The NABC raised $67,000 in donations for the project, and more than 300 volunteers from the indusfor the bill for six years. “I try helped build the Kansas City home from the ground up think that in our industry, it’s 5 years ago in the collision over the course of 10 days a really good idea to have us repair industry (May 2010) efforts undertaken by members of the going back to open competition based Connecticut Attorney General industry. on the merits of the service you proRichard Blumenthal has voiced supThe NABC needed to raise vide, not who you are affiliated with. port for a court injunction being $50,000 to fund the project, but more It will give our customers a lot more sought by the Auto Body Association than $67,000 in contributions had been received as of last month, Sulkala said. More than 300 volunteers— from shops, insurers and industry suppliers—helped build the home from the ground up over the course of about 10 days. Sulkala admitted the project got off to a rocky start because the foundation for the home—poured by contractors prior to the arrival of industry volunteers—was more than five inches out of square. See these Hyundai dealers below for all your collision parts needs! “The key word is ‘was,’” Sulkala said. “We fixed it. It’s the same thing TEXAS we do in our businesses every day Allen Samuels Hub Hyundai when we take a wrecked car and put it HOUSTON Hyundai back into the shape that it needs to be. 19300 Northw est FWY NO RT H RICHL AND HI L L S 77 24 No rth E a st L o op 8 20 That’s what we did to a foundation that 800-856-2212 was off. That set us back by a day or 800-888-2079 281-955-2311 Fax Mon-Fri 7:30am - 6pm 817-589-7882 Fax two. But that house is a solid, quality Sat 8am - 3pm Mon-Fri 7am - 7pm house, and the woman who’s moving hubparts290@hubhouston.com Sat 7am - 4pm in there with her three kids is abwww.hubhyundaiofhouston.com areed@asag.net solutely thrilled and delighted about it.” – As reported in Autobody News. Van Hyundai The NABC went on to even larger CARROL LTON 13 0 1 I-3 5 Fr o n ta g e R d projects, including raising $500,000 in 2003 for a medical facility at a camp 972-512-4200 972-512-4202 Fax in Montana for children with cancer.
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
10 years ago in the collision repair industry (May 2005) The Montana legislature overwhelm-
44 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
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of Connecticut (ABAC) to halt The Hartford’s unfair use of in-house appraisers. Last November, a Connecticut Superior Court jury found The Hartford had engaged in unfair trade practices, and awarded nearly $15 million to shops in an ABAC-led lawsuit brought against the insurer. The association subsequently filed for punitive damages and for a court injunction to end The Hartford’s exclusive use of in-house appraisers, which the association says excludes independent appraisers and forces shops to accept artificially low labor rates. In Blumenthal’s filing with the court, he said “the state has an interest in preventing the unfair suppression of labor rates that significantly harms the state’s economy and results in extreme economic hardship for independent automobile body repair shops.” A spokesman for The Hartford, which has denied any wrong-doing and has said it will appeal the jury award, told The Hartford Courant newspaper that the insurer was “disappointed that the attorney general has chosen to support a position that the body shop owners admit is intended to increase costs for Connecticut con-
sumers,” and that it “is important to us that our customers have access to a repair program that provides great service at a fair price.” – As reported in CRASH Network (www.CrashNetwork.com), May 1, 2010. A final decision in The Hartford’s appeal of the lawsuit is expected later this year from the Connecticut Supreme Court. At stake are: $14.7 million in compensatory damages the jury awarded to the shops; $20 million in punitive damages against The Hartford added by the judge; interest that could bring the total to close to $40 million; and the injunctive relief that Blumenthal was supporting. Following his election to the U.S. Senate in 2010, Blumenthal became largely silent on auto insurance issues, until earlier this year when he announced that he is urging the U.S. Department of Justice to investigate whether insurers are directing consumers to collision repair shops that have agreed “to use cheaper and possibly more dangerous parts.”
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Honda Adds More Recalls on Takata Airbag Flaws
Bloomberg News has reported that Honda Motor Co. added about 100,000 vehicles in the U.S. to existing recalls for flawed airbags made by Takata Corp. after discovering it hadn’t properly identified these models as being produced for the market. The new recalls cover 104,871 units of the 2008 Honda Pilot SUV, 2001 Accord and 2004 Civic sedans, according to a filing posted on the website of the National Highway Traffic Safety Administration. The additions were made after the automaker identified the batches hadn’t been properly identified as being produced for the U.S. Honda’s latest recall comes after its U.S. advertising campaign on March 16 urging owners to immediately replace potentially lethal airbags. The automaker is trying to ensure car owners take action to prevent more fatalities and injuries after a rupturing airbag in a Honda car claimed a fifth victim in January. Takata bags can fail during deployment and propel metal shards at passengers, a flaw that has led to millions of vehicle recalls by at least 10 automakers. About 25 million vehicles with Takata airbags have been recalled worldwide since 2008, Reuters has reported. See related story this page.
Miller’s Optimized Welding System for AL Repairs
The new Millermatic® 350P auto body aluminum repair system provides all the equipment, from the power source to the gun and wire, to make quality aluminum auto body repairs. Miller Electric Mfg. Co. has introduced the new Millermatic® 350P auto body aluminum repair system. The company said it was designed to provide high weld quality and simplify repairs on aluminum auto body panels and beds, such as found in the 2015 Ford F-150 truck. It was also created specifically to address the challenges posed by welding thin gauge aluminum, such as warping, distortion and burn-through. It builds on the Miller® Millermatic 350P MIG power source and can also be used to Pulse weld with silicon bronze, steel and stainless steel wires. Miller aimed to simplify the process of aluminum welding, particularly for welding operators who may not be as familiar with this material or the challenges it can pose. The Millermatic 350P system features the components necessary to meet the specifications set forth by Ford and the Assurance Performance Network for completing weld repairs on the Ford F-150 aluminum-body truck. For more, visit www.MillerWelds.com.
Nissan Expands Recalls Tied to Takata Air Bag Flaws
Bloomberg News has reported that Nissan Motor Co. plans to expand a regional U.S. recall of cars with potentially defective Takata Corp. air bags after a woman said she was injured last month by shrapnel from the device in her 2006 Sentra sedan. Nissan will file an incident report with the U.S. National Highway Traffic Safety Administration to expand its recall, a company spokesman, Steve Yaeger, said in an interview. The expansion will cover Sentras from the 2004 to 2006 model years that weren’t part the earlier regional recall, Yaeger said. “Before that accident we didn’t have enough data to recall,” Yaeger said. “We’re moving as quickly as we can to expand the recalls.” Regulators are investigating airbag inflators that may malfunction, deploying with so much force that the part breaks and hurls metal shrapnel at the car’s occupants. At least five fatalities in the U.S. and more than 100 injuries have been reported industrywide. Lawyers for 20-year-old Sabra Wilson, who suffered cuts, burns and partial hearing loss in a March 21 accident in Louisiana, filed a lawsuit alleging the Sentra’s passenger-side air bag deployed even though no one was in the seat. See related story this page.
Assured Performance Hires Michael Quinn as Exec. VP
Assured Performance announced on April 6 the appointment of Michael Quinn as Executive Vice President. Quinn will assume responsibility for the general business operations at Assured Performance including sales, marketing, and business development. Quinn has more than 25 years industry experience. He cofounded a 7-shop collision repair business in Arizona & Nevada. Quinn worked for Caliber Collision for 2 years before assuming the role of President at UParts Inc. Quinn served as Collision Industry Conference (CIC) Chairman for two years (2010- 2011) after having led several of its committees. He has also been an active board member on the National Auto Body Council (NABC) for more than 11 years. There he chaired the Katrina Relief program to serve those displaced by hurricanes Katrina & Rita. Quinn also initiated and chaired the Recycled Rides and the First Responder Emergency Extrication (FREE) programs. Quinn is the recipient of numerous industry awards, including the Hall of Eagles, NABC Pride Award, and ASA/SCRS Humanitarian award.
www.autobodynews.com | MAY 2015 AUTOBODY NEWS 45
BMW Settles FTC Charges that MINI Illegally Conditioned Warranty Coverage on Use of Its Parts and Service
BMW of North America LLC has agreed to settle Federal Trade Commission charges that its MINI Division violated the Magnuson-Moss Warranty Act by telling consumers that BMW would void their warranty unless they used MINI parts and MINI dealers to perform maintenance and repair work. In an administrative complaint, the FTC alleged that BMW, through its MINI Division, violated a provision in the Warranty Act that prohibits companies from requiring that consumers—in order to maintain their warranties—use specific brands of parts or specified service centers (unless the part or service is provided to the consumer without charge). Continued from Page 18
Increase in Profit
lean process: ■ Inquire where to get the training. Your paint rep should be able to connect you to lean seminars offered all over the country. We were approached by Hillary Castro, our paint rep, regarding attending Eco-Lean I Seminar. We were very glad we did. In fact, we were so excited about the whole concept of “lean” (not just the 5S
NABC Says “It Can Wait” to Students in Grad Season
With grad season comes the excitement of sharing photos, videos and texts with friends and family. But it also means elevated risk for teen drivers, particularly when they are sharing those photos and texts while driving. The National Auto Body Council (NABC) is teaming up with its members nationwide in the collision industry to help reduce this danger on the road by partnering with AT&T to support its It Can Wait® campaign. “The collision repair industry sees firsthand the negative consequences of distracted driving and want to help people reduce their risk of being in an accident,” said Dan Young, Senior Vice President of CARSTAR and Chair of the NABC’s Distracted Driving Initiative. “Through the It Can Wait campaign, we can educate drivers about the dangers of texting and driving, and engage drivers, their families and friends in putting down the phone and focusing on the road.” Tips are: Take and share your photos and videos before you get in the car; Designate someone who isn’t driving to manage the GPS; Drivers should install an app that silences incoming texts and notifications.
“It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As a result of this order, BMW will change its practices and give MINI owners information about their rights.” The proposed order settling the FTC’s complaint prohibits BMW from violating the Warranty Act and the FTC Act in connection with any MINI Division good or service. The settlement also: ● bars BMW, in connection with the sale of any MINI Division good or service, from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have
part), that for the Eco-Lean II we also took with us our Production Manager and our Parts Manager all the way from California to Florida. The investment was well worth the cost. ■ Put your seat belt on and be ready for a rough ride. But if you concentrate on the PRIZE instead of the PRICE, the rough ride will be more bearable. Tough times don’t last, tough people do. ■ Be patient and persistent. The hardest thing is changing habits. If it’s hard to change your own habits, try chang-
Consumers Pay Repair Bills with Openbay and Apple Pay
Openbay, an online car repair marketplace, has announced that its mobile app can now be integrated with Apple Pay to pay for vehicle fixes and maintenance. The company says its offering is also good news for the car dealerships, independent shops and mobile mechanics who provide services via Openbay, as it lowers their risk of responsibility for fraudulent charges. “Openbay remains the only nationwide mobile and Web app for consumers to search for, compare mechanics, book an appointment and pay for auto repair,” said Openbay’s founder and CEO Rob Infantino in a statement. “With Apple Pay, we continue to innovate and maintain a first-mover advantage for vehicle repair.” Openbay outlined the benefits on both the consumer and serviceprovider sides. Consumers will receive convenience and security, as well as the ability to minimize costs by comparing multiple offers, the company said. Users will also be able to earn Openbay Rewards with every completed automotive service. Automotive service-providers, for their part, will experience the cost benefit of not having to invest in EMV and NFC point-of-sale terminals.
46 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
routine maintenance performed only by MINI dealers or MINI centers, unless the representation is true and BMW can substantiate it with reliable scientific evidence; and ● requires BMW to provide affected MINI owners with information about their right to use third-party parts and service without voiding warranty coverage, unless BMW provides such parts or services for free. The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject
ing all your team at once. Be very patient. As the saying goes, “A swift sea never made a skillful sailor.” Magos concluded, “I went about this the hardest way. I knew I wouldn’t get a buy-in from the techs until they started noticing that there was any benefit for them; the typical ‘What’s in it for me’ mentality. As John Maxwell stated, ‘A manager says: ‘go,’ a leader says: ‘let’s go.’ I led the way by making many changes until there were measurable results, and then they bought
to public comment for 30 days, beginning today and continuing through April 20, 2015, after which the Commission will decide whether to issue the order on a final basis. Interested parties can submit written comments electronically.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
into the concept. I’ve heard of shops doing this in a weekend. I don’t see how that would have been possible for us. Maybe just the 5S part, but the habit forming and the total buy-in takes time, patience, focus, a true love for what you’re doing and your people and perseverance.” M & M Paint & Body Shop is located at 503 E Main St, El Centro, CA 92243. To learn more about the shop, visit their website at: http://mmbodyshop.com/.
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South of the Square Collision in OH One of 375 Recognized for being in Top Five Percent in Customer Service by Mitchell by Stacey Phillips, Assistant Editor
South of the Square Collision, owned by Rick and Susan Stickland, recently received Mitchell’s 2014 AutocheX Premier Achiever Awards for exemplary customer service. The family-owned business, based in Ohio, was one of 375 collision repair facilities across North America that was honored. “This is an important measure for shops in helping to make sure they are delivering a good experience to their customers,” Jim O’Leary, Mitchell’s Vice President of Product Management, recently told Autobody News. The company’s 13th annual Premier Achiever Awards honored repairers that consistently earned customer satisfaction scores in the top five percent of their programs measured by AutocheX. “One really important part of Mitchell’s AutocheX program is having a baseline of the same data collected so that we can compare one shop’s results to another and one insurance company’s results to another so they can benchmark themselves against the industry,” he said. The Sticklands opened South of the Square Collision in Medina in November 1999. Their newest location in Continued from Page 38
WIN 2015 Winners
Ruth Weniger When Ruth Weniger was asked, “What does it mean to be named a Most Influential Woman?” she answered, “I hope it means I’m leaving something good behind?” For those who have worked with Ruth Weniger, her influence is unquestionable. Said Denise Caspersen, WIN’s Chairwoman, “Working with Ruth is an opportunity to learn from a mentor, a professional coach, and an outstanding leader with great integrity, composure and diligence. Ruth’s attention and dedication to what she believes in is beyond measure.” Weniger is the CEO of Airbag Solutions in Ivins, Utah, the leading restraint system resource in the country and an early adopter of all on-line information delivery for the collision industry. The company regularly donates subscriptions of their content to technical schools and colleges around the country. She has also become a recognized presenter in the industry on such topics as personal development planning tools for CEOs and time management.
North Ridgeville was opened in March 2013. There are 34 full-time employees between the two facilities. South of the Square Collision has been using AutocheX while on the
achieve a high level of satisfaction!” Mitchell, a provider of technology, connectivity and information solutions to the Property & Casualty claims and collision repair industries, conducted
Rick and Susan Stickland of South of the Square Collision in OH
DRP programs with Allstate, Farmers and Nationwide Insurance companies. “It’s a great tool to give feedback to us as business owners and our employees to see where we excel and sometimes where we may need some work,” said Susan. “CSI drives our business and it is our goal to be on top every year. We’re always excited to hear when we
Weniger has been a tireless volunteer for WIN who has taken an active role in the Conference Committee and Communications Committee for several years, serving as the Chair of the Communications Committee since 2011. She has also been a member of the WIN board of directors since 2011. In her various roles within WIN, she is viewed as someone who knows how to lead without pushing others aside, and who has also raised the level of professionalism within the organization by being herself. She also serves on the Collision Repair Education Foundation (CREF) Scholarship Selection Committee. A woman of many professional accomplishments with exposure to influential leaders within the industry, she said she is inspired most by those who persevere, even in the face of adversity. As a long-time volunteer with organizations that assist victims of domestic violence and rape, she is moved by the spirit and accomplishments of the people who are served by these organizations. For more information about WIN and the 2015 WIN Educational Conference, visit www.womensindustry network.com.
48 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
the surveys by phone and on the web. O’Leary said, “There is one question that we believe is most indicative of the consumer’s experience with the repair; ‘Would you refer this shop to a friend or family member on a scale of one to 10?’” Based on the results of the surveys, Mitchell selected the award recipients,
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which represent 41 states and provinces across the United States and Canada. They range in size from small, familyrun businesses to large consolidators. In addition to the recognition, the recipients receive a trophy, signage for their shops and access to a website that provides promotional materials and congratulatory messages from industry leaders. Nearly 4,000 Premier Achiever Awards have been presented since the program was launched in 2002. O’Leary said that 7,500 shops currently participate in AutoCheX. He said that some of the main advantages of the program include improved communication and loyalty with customers as well as maximizing repeat and referral business. “The benefit is providing them with very actionable, timely feedback that helps them to improve their operations,” said O’Leary. “It’s also valuable to the shops to have an objective third-party measuring their results and then use those results to make a case for receiving more business from their insurance partners.” For more information about Mitchell and the AutocheX program, visit: www.mitchell.com
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National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles
Members of the National Auto Body Council (NABC) teamed up in 2014 to donate nearly $3 million in refurbished vehicles, positively changing the lives of 200 individuals and their families through the organization’s Recycled Rides™ program. Progressive Insurance led the effort in 2014, partnering with NABC shops across the country to donate vehicles to 117 military service members and veterans. GEICO, Allstate, State Farm, Esurance, Farmers and Insurance Auto Auctions each donated at least 10 vehicles, with the additional vehicle contributions from Hertz, Enterprise Rent-a-Car and Copart. Caliber Collision team members led the effort on the repairer side, volunteering personal time to refurbish 20 Recycled Rides vehicles. Service King, CARSTAR, ABRA Auto Body & Glass, Gerber Collision & Glass, the Van Tuyl Group and many more independent body shops all contributed to the success of the 2014 Recycled Rides effort. A future generation of collision repair professionals also had the opportunity to participate in community service projects through the Recycled Rides program while learning their craft at
Washburn Institute of Technology, Manhattan Area Technical College, Western Nevada College, Pennsylvania College of Technology, and Technical College High School–Brandywine. “Recycled Rides is a life-changing experience not just for the recipients but for everyone who participated and contributed to the event,” said Nick Notte, NABC Chairman. “We are very proud that through Recycled Rides, members of the National Auto Body Council are able to make an impact in their local communities as well as showcase the professionalism and integrity of our collision industry.” According to Rick Tuuri, NABC’s Recycled Rides Program Chair, the momentum and successful efforts from Recycled Rides in 2014 have carried through into 2015. To date, 79 Recycled Rides vehicles have already been donated or are in the process of completion. Chuck Sulkala, NABC Executive Director, urged industry members to step up in 2015 to donate more vehicles and sign up to host Recycled Rides events. “We have many more yet unfulfilled requests from nonprofit organizations seeking transportation on behalf of their clients,” said Sulkala. “Our in-
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dustry is in the unique position to make a difference in the lives of these individuals by providing reliable transportation so they find and maintain jobs, take care of their families, and rebuild their lives.” The National Auto body Council’s mission is to develop, implement and promote community-based initiatives that exemplify the professionalism and integrity of the collision repair industry. In addition to Recycled Rides, the National Auto Body Council’s community initiatives include: ● First Responder Emergency Extrication—One-of-a-kind vehicle extrication program that provides local firefighters and/or first responders with the opportunity to practice hands-on, life-saving techniques on late model vehicles and the challenges they present from advanced metals to multiple restraint systems.
● Distracted Driving Initiative –NABC partners with national organizations, such as AT&T on the “It Can Wait” campaign, to provide resources to implement local community efforts that help save lives by educating drivers of all ages about the dangers of inattentive and distracted driving.
Chief Names Richard Perry OEM Liason Sales Manager
Chief Automotive Technologies has named Richard Perry OEM and strategic account sales manager. Perry previously served as global repair product manager for Chief, and has been with the company since 1996. In his new role, Perry will work side-by-side with OEM engineers to ensure Chief collision repair products work properly with the next generation of vehicles. He will provide OEMs with input about proper collision repair procedures, while also leveraging his knowledge of new vehicle design to grow the Chief product line. Perry will help introduce new collision repair products, technologies and procedures to other key customers. He will continue to serve on the I-CAR International Board of Directors, act as a collision advisor for SkillsUSA, and represent Chief at Collision Industry Conference (CIC) and National Automotive Technicians Education Foundation (NATEF) meetings. “I am excited to have someone of Richard’s caliber on the Chief sales team,” says Bob Holland, director of collision in North and South America for Chief parent company Vehicle Service Group (VSG).
GM Names BASF 2014 Supplier of the Year
BASF received General Motors’ (GM) Supplier of the Year Award for the 10th time in the past 13 years. The award was presented to Joe Schmondiuk, Vice President of Global Accounts
dustry and are pleased that we were able to support them on several key product launches in 2014.” BASF’s Coatings Division supports GM by combining modern paint processes with special effect pigments and technologies. BASF offers a broad array of color solutions and processes that enable car makers to improve productivity and environmental performance. “These companies are the bestof-the-best suppliers, and deserving of special recognition for their outstanding contributions,” said Steve Kiefer. Joe Schmondiuk, BASF Vice President Global GM vice president, Global PurAccounts, OEM Coatings Solutions (center) acchasing and Supply Chain. “We’ve cepts the GM Supplier of the Year Award from had some good ‘wins’ of late, solid (left) Greg Warden, GM Executive Director, sales, strong earnings, and some Body Engineering and (right), Randy Pappal, nice awards, and you should know GM Executive Director, Global Purchasing that we could not have accomBody Group plished any of it without you and BASF Corporation, during GM’s an- your teams, and your hard work.” nual awards ceremony at Cobo Center GM’s Supplier of the Year proin Detroit. gram began in 1992, and each year a “BASF is pleased to have once global team of purchasing, engineeragain earned this recognition from ing, quality, manufacturing and logisGM,” said Schmondiuk. “It demon- tics executives determine the winners strates the great commitment and capa- of the Supplier of the Year Award. bility of our team to offer the innovative Winners represent “World Class” persolutions that GM needs. We view GM formance leaders in the areas of qualas a key partner in the automotive in- ity, technology, price and service. www.autobodynews.com | MAY 2015 AUTOBODY NEWS 49
Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now
When news originally broke that the 2015 F-150 would have an aluminum body, there was speculation that the cost of collision insurance would go up because repairs would be more costly and require special body tools. But Ford has subsidized repair training and new tools for dealers with body shops to help ensure competitive rates. “It’s too soon to tell whether the new F-150 is going to have higher insurance losses than the previous generation model,” Russ Rader, spokesman for the Highway Loss Data Institute affiliate of the Insurance Institute for Highway Safety, said in a January interview with the Detroit News. “We’ll need to have enough of them on the road getting into enough crashes to gather data on repair costs.” Online insurance quotes from two Metro Detroit agencies priced the 2015 F-150 XLT anywhere from $27-$54 higher than a comparable 2014 model over a 6-month period. Of course, insurance rates vary greatly, and depend on a number of factors including age, location, driving history and past driving record, as well as credit ratings. Rader’s office conducted studies comparing aluminum-bodied luxury vehicles like the Audi A8 against their steel-bodied counterparts like a BMW 7 Series and found costs for aluminum vehicles were anywhere from 9 to 20 percent greater. “Since the F-150 is a mass-market, high-selling vehicle, it’s collision claim experience could be different,” Rader said. “As more repair shops become equipped and receive training to handle aluminum, the increased volume could drive costs down. In addition, Ford has stated that they have incorporated modular designs to facility replacement to damaged parts which may save on labor costs.” For now, motorists’ yearly insurance premiums for the 2015 aluminumbodied F-150 are about the same as for the 2014 steel model—good news for Ford, according to Hannah Lutz, writing for Automotive News. But premiums could change once insurance companies study accident repair data for the redesigned pickup. To set rates for 2015 models, insurance companies use the latest data they have—from 2014 model claims. It could take about a year or more to get repair and other data useful to set rates for the 2015 model, insurers say. “The cost to insure the F-150 may
go up, or it may go down,” said Progressive Corp. spokesman Jeff Sibel. “We won’t have [enough] data until we have claims experiences.” Insurance premiums won’t make or break sales of Ford’s highly profitable full-size pickup. They are about 10 percent of an owner’s operating costs in the first five years of ownership, Consumer Reports estimates. Ford is confident that insurance premiums for the new pickup will be similar to those for the steel model, even though some parts costs are higher, aluminum repair techs require special training and special repair equipment is needed. For instance, repairing a front door for the 2015 F-150 Crew XLT costs $1,020.95, a $166.02 increase from the 2014 model, says Consumer Reports. Ford expects insurance premiums for the 2015 model will remain under control, in part because company engineers designed the pickup so that repairs could be made to the aluminum body without replacing entire panels. “The 2015 Ford F-150 is designed so sections of the truck are easier to repair in the event of an accident, significantly reducing time of repair and saving costs,” Ford spokesman Mike Levine said. Spot checks by Automotive News show insurance prices for the 2015 F150 match those of the 2014 model. At Esurance, a unit of Allstate, quotes for 2014 and 2015 F-150 base models were exactly the same: $629.50 for six months for the same Ann Arbor, MI, driver and $649.60 for the same Birmingham, MI, driver. Progressive’s figures differed slightly. The Birmingham driver’s 2015 F-150 would cost $1,044.50 for six months of basic insurance, $39 more than that of the 2014 model. At Allstate, F-150 insurance rates change little from those of the 2014 model, spokesman Justin Herndon said. He agreed that insurers lack sufficient 2015 F-150 claims to provide fully accurate rates. As sales of the 2015 aluminumbodied truck increase, there will be more accidents. The vast majority of F150s being sold still are the previousgeneration steel-bodied pickups. In March, 21 percent of F-150s sold were aluminum, said Ford’s chief sales analyst, Erich Merkle. The number of 2015 pickups that have been built and shipped since production started late last fall is about
50 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
72,000, according to estimates by the Automotive News Data Center. Ford says the 2015 F-150’s insurance premiums will remain steady. Ford’s repair parts program “is going according to plan,” a spokeswoman said. The experiences of vehicles that recently switched to aluminum support Ford’s view. For example, insurance for aluminum-intensive vehicles, such as the 2004 Jaguar XJ, 2013 Range Rover and 2012 Audi A6, saw “no significant change” from the rates for the steelbodied versions of the previous model year, State Farm Insurance spokesman Dick Luedke told Automotive News. “Insurance rates represent only about 11 percent of the average cost of ownership for F-150 customers, while fuel and depreciation costs represent about 68 percent of ownership costs,” Ford said in a statement. “With improved gas mileage and a higher residual value expected from the use of advanced powertrains and high-strength materials, we expect cost of ownership for the all-new F-150 will remain similar to or less than today’s levels. Reduced repair times for certain major collision repairs are ex-
pected to help keep insurance rates competitive as well.” The new truck weighs about 700 pounds less than prior models, and can get up to 26 mpg on the highway — tops among all gas-powered full-size pickups. Because the F-150 is such a highvolume seller—F-Series has been America’s best-selling vehicle for 33 straight years—Ford offered dealers with service shops a voluntary Collision Repair Program that trains workers how to repair the new vehicle. Ford said more than 1,500 dealers have participated in the program as of January, which includes tooling upgrades that will cost between $30,000 and $50,000. Ford will chip in up to $10,000 in rebates to purchase equipment for aluminum repairs to any interested dealer with a service shop. “It is important to note that less than 50% of our dealers have body shops, although we expected that only 20–30 percent of our dealers needed equipment and training due to the larger volume of collision work those dealers do,” spokeswoman Elizabeth Weigandt said in an email to the Detroit News. “The majority of collision work (80 percent) is done by independent shops.”
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Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager
After opening operations in Illinois two years ago, Spanesi Americas recently announced that they have doubled both their warehouse and training space. The expansion project also includes an addition to their existing office building as well as the dock and loading area.
Spanesi Americas recently doubled their warehouse and training space in Illinois
Tim Morgan, Managing Director for Spanesi Americas, said the expansion is a result of an overwhelming response to the company’s products. Morgan began consulting for the company in 2012 and set up their North and South American operations in October of that year. “When I started this project I knew the products Spanesi had to offer were what the US and Canadian collision repair markets were looking for and the response has been extraordinary,” said Morgan. “This has allowed us to be able to expand our facility in
such a short time to meet the needs of our customers.” The family-owned equipment company is based in the small town Padova, Italy near Venice. Spanesi’s product lines are manufactured in Italy and include: Straightening Benches, Multibenches, Touch Electronic Systems, Vacuum Systems, Welding Machines, Infrared Lamps, Lifts, Painting Tools, Spray Booth Equipment, and Manual, Pneumatic, Electric and Hydraulic Tools. The Illinois facility will now have a dedicated warehouse space to store parts for spray booths and measuring systems as well as a single area for product training. Another recent development at Spanesi is the hiring of Tom McGee as Business Development Manager. “Tom’s experience in the collision repair industry will be extremely valuable to our group as we continue to grow and provide exceptional products and service to our customers,” said Morgan. McGee has more than 30 years of experience in the collision repair industry. This includes Collision Director for Automotive Training Institute, Collision Industry Relations Manager for ALLDATA, and nearly 18 years at I-CAR where he held a variety of posi-
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tions including President & CEO and Technical Director. McGee graduated from Ferris State College in Big Rapids, MI, and is an ASE Certified Master Auto Body & Paint Technician and Collision Repair Estimator. McGee, a recognized industry speaker, was also elected into the Collision Industry Hall of Eagles in 2001. “I am very excited to join the Spanesi team,” said McGee. “I have been very impressed with how the Spanesi product line is designed to repair the latest vehicle technology. It is exciting to join an organiTom McGee was zation that has hired as Business such a strong focus Development on the technician Manager at and deploys its reSpanesi search and development to make their jobs easier.” Morgan said Spanesi Americas’ mission is to bring new products and technologies to body shops in the Americas to enable technicians to perform repairs to a high standard of excellence. “The unique feature of Spanesi over
the competitors is that we have our own body shop,” said Morgan. “We offer a full solution for the complete body shop.” Owner Orazio Spanesi started in the collision repair industry when he was 14 years old and in 1969 he opened his own body shop. In 1989, he decided he wanted to try and make better equipment so he traveled the world to find out what was available. “Everything that we design, we design it with the technicians in mind,” said Morgan. “It’s tested by technicians long before it ends up in the hands of end users.” Over the years even as the vehicles have evolved, the majority of what we’ve had in place for years is still the same way, especially with our universal fixturing system, that has been around since 1991. Morgan said with the company’s focus on products that are growing fastest in the market, Spanesi expects to increase overall shipment capacity by nearly 20%, while adding approximately 35 jobs in North America. The company has also increased inventory to enhance their delivery system. For more details, contact Timothy Morgan, 1.224.SPANESI (772.6374) tmorgan@spanesi-americas.com, www.SPANESI.com.
WIN Educational Conference May 4–6 in Baltimore
The Women’s Industry Network (WIN) announced the complete lineup of programming is now set for the 2015 Educational Conference Create and Cultivate, being held May 4–6 at the Baltimore Waterfront Marriott. The schedule of presenters includes some inspiring leaders from around the collision repair industry who have powerful messages to share. Building on Mike Anderson’s keynote address, Choosing Your Destiny, the mainstage program schedule includes: ● Change Makes Me Happy… Or is it the Other Way Around? by Paul Gange, Fix Auto USA ● The Sustainable Competitive Advantage by Jeff Peevy of I-CAR ● What the Future Holds for Our Industry by Susanna Gotsch, CCC Information Services Inc. ● Connected Cars/Connected Claims by Sean Carey of SCG Management Consultants LLC ● Time Management – There’s No Such Thing by Ruth Weniger of Powerful Business Strategies, LLC In addition to these topics, breakout sessions will include: ● Reality Marketing facilitated by Cheryl Senko of Cherly Senko Consulting ● Bridging Silos: Using Marketing
Concepts to Attract, Retain and Grow Talent facilitated by Sandra Herron of MiddleEdge Consulting ● Feedback: Giving and Receiving facilitated by Marianne Godwin & Natalie Lindsey, Mitchell International. “We are extemely proud of the program that has been assembled for the 2015 Educational Conference,” said Jessica Rob, co-chair of the WIN Conference Planning Committee. “This year’s program not only focuses on topics that are most requested by our members, but also showcases a diverse and talented group of individuals from within the collision repair industry.” Rounding out the three days of education will be the celebration of the 2015 Most Influential Women honorees, the Annual Scholarship Walk raising funds for the WIN Scholarship Fund, and the Annual Membership Meeting. Visit http://thewomensindustry network.ning.com/page/2015-confe rence or contact Jessica Rob at jessica.rob@akzonobel.com or Yolanda Sandor at yolanda.sandor @basf.com.
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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 53
CIF Elects Jeff Peavy to Board of Trustees
The Collision Industry Foundation (CIF) recently elected Jeff Peevy with I-CAR to the Board of Trustees to carry on the Foundation’s initiatives throughout the coming years. Jeff Peevy is a well-known speaker and moderator at industry conferences and events across the United States. Peavy is the Senior Director of Field Operations and Segment Development at I-CAR. As a 32 year industry veteran, he has been a technician, shop manager, instructor, National PBE Manager for a large U.S. supplier, and Director of Technical Training and Application Research for an automotive paint manufacturer. Peavy stated, “During hurricane Katrina I saw firsthand how important the CIF mission is and look forward in assisting in its growth and promotion.” Chairman William Shaw commented on Peevy’s appointment, saying, “The CIF Board of Trustees is very excited and honored to have Jeff join our team. His industry experience and credibility is only shadowed by his passion to help others. He will be a key contributor to delivering the CIF’s mission of helping collision industry professionals in need.”
ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress The Automotive Recyclers Association (ARA) held their 2015 Hill Day and State Legislative Summit in Washington, DC on March 16 and 17, and over the course of those two days, association members from across the country had the opportunity to educate Members of Congress and their staff about the industry. Participants also received current information on ARA’s issues and activities as well as enjoying some time networking with their automotive recycling peers from other areas of the U.S. and even other countries. When the State Legislative Summit began on March 16, attendees received information on recent legislative successes and current problems facing auto recyclers by various state legislatures. Attendees identified key issues impacting the automotive recycling industry in a discussion led by Norman Wright, ARA’s Past President and Governmental Affairs Committee Chairman, and Jessica Andrews, ARA’s Director of State Government Affairs. Andrews identifies some of these issues as “access to salvage and end-of-life vehicles, efforts to incorporate NMVTIS reporting and enforcement into state statute, build-
New Data: U.S. Drivers Did 3 Trillion Miles Last Year
New estimates released by the U.S. Department of Transportation’s Federal Highway Administration (FHWA) show that Americans drove nearly 3.02 trillion miles in 2014, the highest point since 2007 and the second-highest since data collection began 79 years ago, fueling calls for greater investment in transportation infrastructure to accommodate growing volumes of traffic. The new data reaffirm projections made by U.S. Transportation Secretary Anthony Foxx in “Beyond Traffic,” his 30-year vision for transportation, which shows significant increases in gridlock nationwide unless changes are made in the near-term. “Americans are driving their cars at near-record levels, and being stuck in traffic is costing drivers an average of nearly five days a year,” said Secretary Foxx. “To ensure this problem doesn’t get worse, greater innovations and investments are needed. We can’t keep treating America’s 21st-century traffic needs with 20th-century solutions.” According to FHWA’s latest “Traffic Volume Trends” report—a monthly estimate of U.S. road travel—Americans drove an estimated 3.015 trillion miles last year, roughly the same distance as 323 round trips from Earth to Pluto.
Drivers in December 2014 logged 251.4 billion miles, the highest level for any December since data collection began in 1939. At 5 percent higher than the previous December, it was the year’s biggest single-month increase and the nation’s tenth consecutive month of VMT growth. Traffic in the South Gulf—a block of eight states including Texas and Kentucky—rose to nearly 49.1 billion vehicle miles traveled (VMT), a gain of 6.4 percent over the previous December and the tenth consecutive month of increased traffic for the region. All states recorded traffic increases in December. At 10.5 percent, Indiana led the nation with the largest single-state traffic increase compared to the same month a year earlier, followed closely by Oklahoma at 9.3 percent and Montana at 8 percent. “Data like these are critical to helping federal and state transportation leaders understand the challenges facing American drivers,” said Deputy Federal Highway Administrator Gregory Nadeau. “The nation’s growing demand on roads and bridges underscores what we have been saying—increased investment is needed if we are to keep our roads from becoming parking lots.”
54 MAY 2015 AUTOBODY NEWS | www.autobodynews.com
ing relationships with industry stakeholders and state governmental agencies, and the importance of keeping an eye on local and city regulations.” This discussion led to a sharing of resources, such as legislative language, past experiences and issue strategies. The group’s ultimate goal, according to Andrews, was “enhancing ARA’s grassroots advocacy structure.” Later that afternoon, Speaker of the U.S. House of Representatives John A. Boehner (R-OH) made a special guest appearance to speak to ARA members about major issues impacting the nation, and he encouraged attendees to recognize the importance of being aware of and staying involved with concerns facing their own businesses and the professional automotive recycling industry as a whole. According to Michael E. Wilson, ARA’s CEO, “Speaker Boehner entertained questions by the very appreciative group for over 30 minutes. It was an historic moment for our industry to be the focus of the Speaker’s remarks, and ARA members now know that their issues are understood at the highest level of the U.S. Congress.”
Progressive Plans to Charge Risky Snapshot Drivers More
Progressive Corp., the fourth-largest U.S. auto insurer, said it will begin increasing rates for some risky customers who participate in a program that allows the company to electronically monitor driving habits. The decision to lift premiums is a shift for Mayfield Village, Ohio-based Progressive, which previously highlighted how customers can agree to a rate and then win discounts for safe behavior. Its Snapshot program rewards customers who drive fewer miles, avoid hard braking and minimize travel from midnight to 4 a.m., according to the company’s website. “In our new program that we just began to roll out, we are affording more customers discounts for their good driving behavior while for the first time, increasing rates for a small number of drivers whose driving behavior justifies such rates,” the company said in its annual report this month. Chief Executive Officer Glenn Renwick has said Snapshot could help the company encourage safer behavior and retain the most valuable customers. He has lamented the reluctance of some potential customers to sign up for the offering.
On March 17, ARA proudly held their annual Hill Day event with members representing 23 states engaging in more than 70 congressional meetings, 25 of which were scheduled with actual Members of Congress. These elected representatives repeatedly stressed the importance of programs like ARA’s Hill Day to help them make informed decisions on policies impacting the automotive recycling industry and the use of recycled OEM parts. According to Wilson, “In addition to ARA members talking with their congressional delegations about the general industry issues and local concerns, they also educated policymakers about the need for auto manufacturers to provide parts data to all stakeholders in the automotive parts supply chain, especially in light of the ongoing and increasing recall campaigns. In the coming weeks, ARA staff will be following up on the relationships that ARA members initiated and cultivated during these events.” ARA www.a-r-a.org
PartsTrader Says Integration to Help Dealers Quote Parts
PartsTrader® has announced that an integration project is in development with DMI Inc., a business unit of CDK Global. The integration is designed to help OEM automobile dealers more efficiently respond to quote requests from collision repair shops. When responding to a quote request PartsTrader will automatically update inventory information and pricing from the dealers own Dealer Management System (DMS). This information will be displayed on the PartsTrader quoting screen so that dealers no longer have to access multiple systems to quote accurately. Prices will be updated automatically based on the dealers settings and allow dealers to better understand the profitability on a part by part basis. For repair shops requesting a quote, the response from dealers using the DMI data services platform will be faster, and have greater accuracy in its quote components. More accurate pricing during the estimating process will reduce estimate supplements benefiting both repairers and insurers. “With this integration with the DMI platform, PartsTrader continues to streamline the quoting process on both sides of the buyer and seller relationship,” said Dale Sailer, VP.
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56 MAY 2015 AUTOBODY NEWS | www.autobodynews.com