May 2017 Southwestern Edition

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Texas Bill Demands Independent Survey of Auto Body Labor Rates, Cracks Down on Steering

by Houston Auto Body Association

The latest version of a Texas House bill would determine the state’s prevailing rate through a “transparent and unbiased” third-party labor rate survey.

It also would prevent carriers from using coercion or most incentives—including a guarantee of no out-of-pocket costs—designed to bring customers to the carrier’s network of direct repair shops agreeing to repair the vehicle under certain rates and/or terms.

Labor rates Shops in several states have criticized

the practice of a carrier insisting that the “prevailing rate” for a particular market is a certain dollar amount - but refusing to reveal the data demonstrating how this value was calculated or basing the calcuations on questionable methodology. Lawsuits also have suggested carriers which do not conduct surveys simply base their view of a “prevailing rate” on whatever State Farm’s black box of a survey produces.

The California Department of Insurance recently cited allegations of flawed surveys in mandating that any carrier conducting a survey had to folSee TX Bill Survey, Page 15

Dent Zone’s Jeff Snowden Awarded Lifetime Achievement Award at 2017 International Mobile Tech Expo

Jeff Snowden, one of the been with Dent Zone since its early advocates of paintless inception in 1991. dent repair (PDR) and a long“Jeff’s technical knowltime employee of Dent Zone, edge as well as his relationwas presented the Lifetime ship and networking skills Achievement Award at the Inhave played a role in growternational Mobile Tech Expo ing the industry into a naKevin Halewood, in Orlando recently. Snowden tionally recognized field,” Mobile Tech Expo was recognized for his more said Kevin Halewood, Mothan 25 years of service and Show Director, pre- bile Tech Expo founder and senting Lifetime leadership in the PDR indusshow director. “He has been Achievement try. both a proponent and proAward to Jeff Dent Zone, which is part Snowden at MTE moter, as well as a connector 2017. Credit: of the Nobilis Group, is one of of people.”

Business Wire the pioneering companies in Snowden was an influential paintless dent repair and a leading contributor to the industry from the beprovider for the industry. Snowden has See Jeff Snowden, Page 48

VOL. 35 ISSUE 5 MAY 2017

Collision Shop Owners Share the (Mostly) Pros and (Few) Cons of Getting OEM Certified

Are automaker shop certifications a of pretty much everyone else because of us getting certified, but it’s really potential substitute for collision repair only been to my benefit. An insurer can shops seeking less dependence on intake any [agreement] I have [with surer direct repair programs? them] away, but they can’t take my cerThat was among the questions addressed by a panel of shop owners at tification. The DRPs helped us get to the recent NORTHEAST Automotive the point where we had the money to spend on OEM certification.

Services Show held in SecauBut you get to the point where cus, N.J. James Carvino of you say, ‘Listen, I don’t need RoJo Collision in Brooklyn, you. So if you don’t want to NY, whose shop holds certifipay my rate or do this, you cations from about 10 aucan take the program and go tomakers, said he’s eliminated because now I’m certified. I most of the shop’s DRP reladon’t really need you. You tionships other than two with James Carvino can’t cripple my business.’” insurance companies “that are very understanding.”

Tom Elder of Kompact Cars, “I basically have no issue [with Inc. in Clarksburg, NJ agreed, saying them], and I think they are happy to the 11 DRPs he previously had have someone who, even though my “helped us become better financed estimates may be 400 lines, they can and better equipped,” but that Mersee the car and know I’m doing the cedes-Benz and other OEM certificawork,” Carvino said. “I had to get rid See OEM Certification, Page 16

Northeast Lawmakers Consider Proposed Collision Repair Legislation A number of bills impacting collision repairers have been introduced in state legislatures throughout the Northeast this year.

A Maryland bill (SB 1007), for example, would have required insurers in that state to use either OEM parts or non-OEM crash parts certified by an organization meeting specific requirements; those requirements appeared to allow the use of parts certified by the Certified Automotive Parts Association (CAPA) but not NSF-certified nonOEM parts. A March hearing scheduled on the bill, however, was canceled after the bill received an unfavorable report from a Senate committee and was withdrawn.

A half-dozen industry-related bills have been introduced in New York.

One (AB 1678) would limit the sale of automotive refinish materials labeled “for professional use only” to only

those with a valid state tax and federal EPA identification number, and who meet all local ordinances for the application of such materials.

Two of the New York bills are parts-related bills. The first (AB 6617) would require that vehicle owners provide a written signature consenting to the parts that will be used in the repair of their vehicle; that disclosure form would be required to define each of the types of parts used.

The bill also would require the use of only new OEM parts on vehicles two years old or newer, or for the duration of the manufacturer’s sheet metal warranty on the vehicle, whichever is longer. The bill also would make clear that the insurer is responsible for additional costs for labor or materials if non-OEM parts stipulated for use are found to be “ill-fitting.”

See Northeast Lawmakers, Page 18

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COLUMNISTS Attanasio - Do You Have the Next Great Body Shop Invention? . . . . . . . . . . . . . 36 Attanasio - Everything’s Algood at Mike’s Auto Body in Antioch, CA. . . . . . . . . . . 42 Attanasio - Zenia Amezquita Is Just Starting to Rev Her Engine . . . . . . . . . . 32 Sisk - AASP/NJ Debuts Path to Certification Series and More at 40th NORTHEAST™ Conference & Tradeshow . . . . . . . . . . . 21 Sisk - American Honda Hosts Two ProFirst Training Seminars at NORTHEAST 2017. 28 Sisk - An Introduction to WIN’s 2017 MIW Honorees. . . . . . . . . . . . . . . . . . . 38 Sisk - Mike Anderson Debuts Seminar on 100% Disassembly and Parts Mirror Matching . . . . . . . . . . . . . . . . . . 46 Yoswick - Could that 180-line estimate you just wrote be 179 lines too long?. . 40

NATIONAL 2017 SEMA Board Candidates, Details Available . . . . . . . . . . . . . . . . . . . . . . . 67 AkzoNobel Rejects Another Unsolicited Proposal from PPG . . . . . . . . . . . . . . . 67

AkzoNobel Signs on as Platinum Sponsor for Women’s Industry Network. . . . . . . 58 American Honda Releases New ProFirst Logo for Better Brand Recognition . . . . 58 AMi Offers Online Enterprise Rent-A-Car ARMS® Automotive Suite Training . . . . 64 Apple Applies for and is Granted Driverless Car Testing Permit, But What it’s Testing May Not be a Car. . . . . . . . . . . . . . . . . . 4 Apply for Auto Care Internship Scholarships

by May 1 . . . . . . . . . . . . . . . . . . . . . . . 33 ASA Promotes National Car Care Month . . 63 Automotive Management Institute Honors Class of 2017 . . . . . . . . . . . . . . . . . . . 64 Axalta Launches Imron 8460S Clearcoat for Commercial Transportation Market. . 27 BASF’s VisionPLUS Performance Group Business Conference to Showcase Industry Experts . . . . . . . . . . . . . . . . . . 6 By 2030, 25% of Miles Driven in US Could Be in Shared Self-Driving Electric Cars. . 50 Caliber Collision Sets Challenge to Collect 5 Million Meals for Children This Summer . . . . . . . . . . . . . . . . . . . . . 8 Chief® University Introduces Industry’s First Joining Technologies Class. . . . . . 60 Collision Shop Owners Share the (Mostly) Pros and (Few) Cons of Getting OEM Certified . . . . . . . . . . . . . . . . . . . . . . . . 1 Congress Overturns OSHA Injury/Illness Recordkeeping Rule . . . . . . . . . . . . . . . 56 CREF to Partner with ASE on Cars, Careers & Celebrities Expo Event . . . . . . . . . . . . 3 Driverless Wreck Video . . . . . . . . . . . . . . . 4 Enterprise Holdings Increases Support of SCRS; Established New Corporate Membership . . . . . . . . . . . . . . . . . . . . 63 FCA US Marks Opening of New Mopar Parts Distribution Center in Virginia . . . 59 Global Finishing Solutions Adds to the Refinish Team . . . . . . . . . . . . . . . . . . . 63 GYS Wins Tesla Approval . . . . . . . . . . . . . 60 I-CAR® Honors Chuck Sulkala With Lifetime Contribution Award . . . . . . . . . 62 I-CAR® Offers New Online Cycle Time Course for Appraisers . . . . . . . . . . . . . 60 Learn How to Crush It in the Collision Repair Industry With Newly-Released Book . . . . . . . . . . . . . . . . . . . . . . . . . . 30 NABC Opens Nominations for Awards to Recognize Professionalism and Integrity in the Collision Industry . . . . . . . . . . . . 64 PARTS Act Reintroduced in Congress, Claims Motoring Consumers will Choose Quality, Affordable Crash Parts. . . . . . . 64 Phillips - Owner of Swope Family of Dealerships Receives Prestigious Honor & Attributes Success to Highly-Engaged Employees . . . . . . . . . 54 Registration Opens for AAPEX 2017 in Las Vegas . . . . . . . . . . . . . . . . . . . . 62 The Pre- and Post-Scan Revolution . . . . . 52 Uber Continues Growing Pains, Loses a Top Self-Driving Executive, Legal Battle with Google . . . . . . . . . . . . . . . . . 4 WMABA Opposes West Virginia Parts Bill, Neighboring States’ Efforts Will Be Affected. . . . . . . . . . . . . . . . . . . . . . . . 59 YANG Announces Next Step Program Scholarship Winners . . . . . . . . . . . . . . 62

The Collision Repair Education Foundation (CREF) is partnering with the National Institute for Automotive Service Excellence (ASE) on the Cars, Careers & Celebrities event being held on September 15, 2017.

This is CREF’s third year hosting the event, which last year brought together over 400 high school and college collision students from 10 states.

CREF will work with ASE to open the event up to both collision and automotive repair students. Cars, Careers & Celebrities will take place at Chicagoland Speedway (Joliet, IL) on Friday, September 15th in conjunction with the first race in The Chase for the NASCAR Sprint Cup. Hundreds of students from the Midwest and beyond are anticipated to attend. They will have the opportunity to meet industry employers, view product demonstrations, hold initial/mock interviews, potentially

meet race car drivers, and more in the Chicagoland Speedway’s hospitality village area. There is no charge for high school and college automotive repair and collision students, instructors, and administrators to attend; however, pre-registration is required.

Companies interested in participating in the 2017 event should contact CREF Director of Development Brandon Eckenrode at Brandon .Eckenrode@ed-foundation.org or (847) 463-5244.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor and Copywriter: Deana Cacus Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Digital Marketing Manager: Cass Heckel Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas

Aircat Pneumatic. . . . . . . . . . . . . . . 25 AIRCOM USA, Inc . . . . . . . . . . . . . . 12 Audi South Austin . . . . . . . . . . . . . . 46 Audi Wholesale Parts Dealers . . . . 37 AutoNation Chevrolet . . . . . . . . . . . 54 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . 28 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix. . . . . . . . . . 8 Axalta Coating Systems . . . . . . . . . . 5 Bill Luke Chrysler-Dodge-Jeep-Ram. 16 BMW Wholesale Parts Dealers . . . . 51 Bob Howard PDC . . . . . . . . . . . . . . 53 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 31 ChemSpec USA, LLC . . . . . . . . . . . 18 Chevyland . . . . . . . . . . . . . . . . . . . . 42 Chief Automotive. . . . . . . . . . . . . . . 19 Classic Auto Group. . . . . . . . . . . . . 39 Classic BMW . . . . . . . . . . . . . . . . . . 27 Classifieds. . . . . . . . . . . . . . . . . . . . 66 Dallas Dodge . . . . . . . . . . . . . . . . . 68 Dent Magic Tools . . . . . . . . . . . . . . 10 Diamond Standard Parts, LLC.. . . . 43 DJS Fabrications. . . . . . . . . . . . . . . 38 Don Carlton Auto Group . . . . . . . . . 44 Eco Repair Systems of North America, LLC . . . . . . . . . . 29 ECS Automotive Concepts . . . . . . . 22 Equalizer Industries, Inc . . . . . . . . . 32 Finnegan Chrysler-Jeep-Dodge . . . . 2 Flatirons Subaru . . . . . . . . . . . . . . . 49 Ford Wholesale Parts Dealers . . . . 61 GM Wholesale Parts Dealers . . . . . 65 Greeley Subaru . . . . . . . . . . . . . . . . 36

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Southwest

REGIONAL ABRA Auto Body in Loveland, CO Begins Expansion . . . . . . . . . . . . . . . . . . . . . . 10 Baton Rouge Community College’s New Auto Training Center Promises to Help Fill a Local Shortage of Skilled Technicians . 12 Cambridge Automotive Group Opens new Maaco Location in Kingman, Arizona . . . 8 Dent Zone’s Jeff Snowden Awarded Lifetime Achievement Award at 2017 International Mobile Tech Expo. . . . . . . . . . . . . . . . . . 1 Houston Auto Body Association 7th Annual Collision Industry Appreciation Event . . . 6 Houston Towing Company Under Investigation After Drivers Lodge Complaints . . . . . . 14 Louisiana’s Lawsuit Against State Farm, Filed by Former Attorney General, Lies Dormant . . . . . . . . . . . . . . . . . . . . . . . 10 Man Posing as Worker Steals From Phoenix Auto Shop Owner. . . . . . . . . . . . . . . . . 18 Phillips - OK Body Shop Owner Paints High-Profile Vehicles for Television Series While Running Collision Repair Business. . . . . . . . . . . . . . . . . . 26 Refinish Distributors Alliance Host Spring IMPACT Performance Conference in Austin . . . . . . . . . . . . . . . . . . . . . . . . 6 Single Mother Gets Lift with Car Donation From NABC Members at URG Conference. 9 State Lawmakers Consider Proposed Collision Repair Legislation . . . . . . . . . . 9 TechnaGlass Purchases Ohio and Utah Franchises. . . . . . . . . . . . . . . . . . . . . . 67 Texas Bill Demands Independent Survey of Auto Body Labor Rates, Cracks Down on Steering . . . . . . . . . . . . . . . . . 1 Texas State Technical College Hosts First Auto Tech Day . . . . . . . . . . . . . . . 20 TSTC Auto Collision Program Receives Grant from Nationwide Foundation . . . . . 6 Tucson Veteran Falls on Hard Times, Gets New Car . . . . . . . . . . . . . . . . . . . . 8 Uber Briefly Puts The Brakes on its Self-Driving Fleet After Arizona Car Crash . . . . . . . . . . . . . . . . . . . . . . . 4

CREF to Partner with ASE on Cars, Careers & Celebrities Expo Event

Indexof Advertisers

Contents

GYS Welding USA. . . . . . . . . . . . . . 24 Herkules Equipment Corporation. . 30 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 34-35 Hyundai Wholesale Parts Dealers. . 59 Insta Finish Car Care . . . . . . . . . . . 23 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 57 Killer Tools & Equipment. . . . . . . . . 47 Lancer Insurance Company . . . . . . 15 Lusid Technologies . . . . . . . . . . . . . 17 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mazda Wholesale Parts Dealers . . . 63 Mike Calvert Toyota. . . . . . . . . . . . . 50 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 56 MOPAR Wholesale Parts Dealers . . 41 Nissan Wholesale Parts Dealers. . . 60 North Freeway Hyundai . . . . . . . . . 52 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Ray Huffines Chevrolet . . . . . . . . . . 33 SATA Dan-Am Company . . . . . . . . 11 South Pointe Chrysler-Jeep-Dodge. 20 Spanesi Americas . . . . . . . . . . . . . . 14 Subaru of Little Rock . . . . . . . . . . . 55 Subaru Wholesale Parts Dealers . . 45 Toyota of Laredo . . . . . . . . . . . . . . . 40 Toyota Wholesale Parts Dealers . . . 58 Valspar Automotive . . . . . . . . . . . . . 13 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 62 Wesch Tools . . . . . . . . . . . . . . . . . . . 6 Wizards Products . . . . . . . . . . . . . . 21 Yellow Jacket . . . . . . . . . . . . . . . . . 26 Young Chevrolet . . . . . . . . . . . . . . . 48

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 3

Apple Applies for and is Granted Driverless Car Testing Permit, But What it’s Testing May Not be a Car Apple has formally thrown its name into the driverless car ring. The iPhone manufacturer’s name is plainly listed on the California Department of Motor Vehicles website as an approved autonomous vehicle tester within the state’s borders. Apple stands out on the list, which otherwise constitutes recognizable car companies and tech startups; Nissan, Subaru, Tesla, and Udacity are among them.

That Apple is doing something with autonomous vehicles is one of the worst-kept secrets in Silicon Valley according to Chris Mills, writing in BGR News. Rumors have circulated for years that Apple is planning some kind of car, and now we know for sure that a research group is testing something.

The California DMV awarded Apple a permit to test autonomous vehicles in the state. Apple has not commented on the application for a permit, but a spokesperson instead referred to a previous statement that said Apple continues to invest in autonomous technology, AI, and machine learning.

The obvious point is that you don’t apply for a permit to test au-

tonomous vehicles unless you actually want to test autonomous vehicles. This doesn’t mean that Apple is building an Apple Car, just that it’s working on some kind of driverless technology.

The majority of the companies that are permitted to test in California aren’t trying to build their own vehicle platform. Instead, most companies take an off-the-shelf car and attach some kind of sensor package, which is most likely what Apple’s doing currently.

This is not the first confirmed interest that Apple has had in vehicles.

The company attempted a takeover of McLaren, a British racing car company, late last year. Reports suggested that Apple initially considered making its own fully-electric car to rival Tesla, codenamed Project Titan. It sounds like that project ended, and Apple decided instead to focus on the technology side of car-making.

Uber briefly took its self-driving cars off the streets following a crash involving one of the vehicles on March 24. Tempe police confirmed to CNNTech the selfdriving Uber vehicle involved in the rollover accident was not at fault, and there were no life-threatening injuries.

The self-driving car tests resumed in both cities March 27, after a temporary halt to investigate the accident.

Photos of the accident scene in Tempe, Arizona, showed one of Uber’s Volvo SUVs on its side, while another car nearby appeared pretty beat up.

There were no reports of serious injuries.

Uber’s car, which had engineers in the front two seats and no one in the back, was in self-driving mode at the time of the collision, local cop Josie Montenegro told reporters. She added that the accident occurred when the other car apparently failed to yield to Uber’s vehicle at a left turn.The company’s fleet of 16 self-driving cars had been on the streets of Tempe for just over a month as part of a pilot program.

It confirmed over the weekend that it’s also suspended testing at its two other sites in San Francisco and Pittsburgh

while it continues with investigations into what caused the smash-up.

Uber customers had been able to take rides in the self-driving cars, but anyone nervous about doing so could use the app to opt out of the opportunity. While Uber’s technology doesn’t appear to have been at fault in Saturday’s accident, it’s possible the publicity surrounding the incident will prompt some riders to think twice about hopping into one of Uber’s driverless cars when they return to the streets.

The San Francisco-based ridehailing giant started testing its driverless car technology in Pittsburgh last year before expanding the pilot program to its home city. However, a runin with regulators at the end of 2016 prompted the company to shift testing from San Francisco to Tempe, Arizona.

Uber recently received permission to relaunch testing in the California city.

The Tempe crash certainly isn’t a first for self-driving car companies, with, for example, Google’s own project—now operated by Waymo— having experienced a few incidents up to now.

www.autobodynews.com

Uber Briefly Puts The Brakes on its Self-Driving Fleet After Arizona Car Crash

4 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Driverless Wreck Video

PreFab Ads has just launched “Driverless Wreck,” the latest in a line of humorous TV/Internet collision repair commercials. It is currently available for licensing on an exclusive-by-territory basis for just a fraction of the cost of production.

The spot depicts an autonomous taxi cab tangling with an impatient man driving a Mercedes followed by the line, “Need a body shop?” and the featured body shop’s tag.

The impatient man was played by actor Jeffrey Weissman who has starred in a number of movies including “Back To The Future” II & III where he played George McFly, father of Michael J. Fox’s character.

“Driverless Wreck” has already been licensed by 15 collision repair centers across the US, including Joe Hudson’s Collision Center, AL; North Haven Auto Body, CT; Collision Specialist, TN; Auto Tech, NY; and Fountain Valley Auto Body, CA; Olson Autobody, Casper, WY; Peter’s Body Shop, Fort Wayne, IN; Car Center Collision, Big Rapids, MI; Lefler Collision & Glass, Evansville, IN; AutoTech, NYC; Branson Collision, Branson, MO; Jeffrey’s Auto Body, North Syracuse, NY; and The Professional Touch, Scotts Valley, CA. It marks the 20th collision repair commercial produced by Chuck Jessen of Jessen Productions & PreFab ads over the years. All commercials can be viewed at www.prefabads.com.

To view video, go to: http://prefabads.com/myportfolio/driverless-wreck/

Uber Continues Growing Pains, Loses a Top Self-Driving Executive, Legal Battle with Google Uber has lost yet another executive after its vice president of the self-driving car division resigned. Uber is also is currently fighting a high-profile lawsuit with Google about the autonomous technology.

Sherif Markaby resigned from his position as Uber’s vice president of global vehicle programs a year after he joined the company from Ford, where he had spent 25 years and was director of global electronics and engineering.

Markaby’s departure is the fifth high-profile exit from Uber in recent months, creating doubts about the firm’s ability to bounce back. Markaby’s resignation is one of a number of significant departures among senior Uber figures, including the resignation of its president, two other vice presidents, a well-known security researcher and an engineering executive.

Uber is currently fighting allegations that it stole driverless car technology from Google, while trying to recover from claims of sexual harassment and lack of diversity in its offices. In the UK it is also appealing an employment tribunal’s ruling that its

drivers should be classed as employees, which could undermine its business model there.

Uber said Markaby’s departure is not related to any lawsuit.

“Self-driving is one of the most interesting challenges I’ve worked on in my career, and I’m grateful to have contributed to what will soon be a safer future for everyone,” said Markaby.

A spokesman for Uber said: “[Markaby’s] deep experience and knowledge of the automotive industry that have helped us tremendously in working to make self-driving cars a reality.”

Former president Jeff Jones quit just six months after he was hired to alter the ride-hailing app’s public image over an irreconcilable culture clash.

“The beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber,” said Mr. Jones when he left last month.

Uber’s difficulties in recent weeks have led to suggestions that it would be better off if its chief executive Travis Kalanick were next to go.

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 5

BASF’s VisionPLUS Performance Group Business Conference to Showcase Industry Experts

BASF’s VisionPLUS® Performance Group Business Conference will be held May 10-12, 2017 in Litchfield Park, Arizona. More than 80 BASF collision repair centers will be represented at the meeting, with seven receiving 2017 Shop of the Year designations within their respective groups.

Attendees will discuss best practices, attend training workshops and hear guest speakers and pan-

elists present on industry issues and trends.

Guest speakers include Buddy Hobart, author of “Gen Y Now,” discussing the unprecedented workforce of four generational groups; Dave Roberts of The Romans Group presenting on big data in the aftermarket industry; and Philip Dana from Honors Foundations discussing how to

Houston Auto Body Association 7th Annual Collision Industry Appreciation Event

The Houston Auto Body Association (HABA) would like to thank its supporters and sponsors at their 7th Annual Collision Industry Appreciation Event, open to both member

help veterans acclimate in the private sector and work in the collision repair industry.

In addition, a BASF Advanced Process Solutions (APS) panel will take place, consisting of Performance Group members that have gone through the APS program. There will also be an Original Equipment Manufacturer (OEM) panel, to discuss how their companies will adapt to more certifications and technology, in terms of collision repair.

“The business conference is a time for all Performance Group members to network with some of the bestrun collision repair centers in North America,” said Craig Seelinger, BASF VisionPLUS Program Manager.

“This year’s focus is to help our customers find good talent, provide insight into the future from industry experts and discuss continued improvement of shop KPIs and processes. And it’s a time for celebration to recognize the hard work they have done.”

TSTC Auto Collision Program Receives Grant from Nationwide Foundation Texas State Technical College’s Auto Collision and Management Technology program commemorated a $5,000 grant received from the Nationwide Foundation, the

Refinish Distributors Alliance Host Spring IMPACT Performance Conference in Austin

Refinish Distributors Alliance (RDA) held their Spring Membership Meeting March 29th-31st at the Omni Downtown Austin Hotel. The group had record turn out with over one hundred members and manufacturers in attendance. According to organizers, this event was another exceptional RDA experience intended to impact attendees in very positive ways, both personally and professionally.

The three days included round table discussions about today’s version of a “Lean” Delivery Schedule and Alternate Revenue Streams. They had a rodeo which included one-onone meetings with manufacturers and members with great raffle prizes given away throughout the event.

The key note speaker was Matt Tenney, a social entrepreneur and the author of Serve to Be Great. Matt works to develop highly effective leaders who achieve lasting success by focusing on serving and inspiring greatness in the people around them.

Everyone received one of Matt’s personally signed books. Later, the excitement of the casino night, which ended with some awesome raffle prizes, was enjoyed by everyone.

Executive Director Robert McKenzie Jr. said, “We appreciate the support of our members and manufacturers. We would like to thank all of our manufacturers who sponsored this event making it such a success.

We strive to find ways to elevate the content with relevant information and take aways that everyone can benefit from.”

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 over 200 locations. Members service over 4000 collision centers throughout the United States. It represents a cross-section of all major refinish brands and does over $485 million in sales as a group, comprising around 16% of the refinish business nationwide.

Those interested in joining RDA /IMPACT should contact Robert McKenzie, Jr. directly at (731) 2179081 or via email at robertemckenzie @me.com.

For more information, visit www .rda-impact.com

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and non-member shops. Join HABA on May 9th for free food and drinks, prizes, and a great time for all. The event will take place at The Cadillac Bar at 1802 Shepherd Drive in Houston, Texas from 7pm to 9pm CDT. If your company is interested in being 2017 HABA sponsor, please contact Greg Luther at 713533-6226 or bmember1@habaonline.org for more information or visit the Association website at www.habaonline.org.

(l to r) Kevon Kleibrink, lead instructor for the Auto Collision and Management Technology program in Waco; Clint Campbell, statewide Auto Collision and Management Technology chair; and Matt Pietrowicz, a materials damage technical office business consultant for Nationwide Insurance in Columbus, Ohio

philanthropic arm of Ohio-based Nationwide Insurance, on Tuesday, March 28.

Some of the new equipment the program received include three solid rivet kits, three hydraulic pumps, an electronic torque wrench and pliers.

6 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 7

Caliber Collision Sets Challenge to Collect 5 Million Meals for Children This Summer

In its ongoing commitment to fight childhood hunger, Caliber Collision is raising the bar with a goal to collect 5 million meals during its 6th Annual Restoration Food Drive, from April 17 to May 19, benefitting 49 food banks across the country.

As the largest collision repair company in the U.S, Caliber is partnering with its network of teammates, customers, business partners, schools and local communities to increase the number of meals collected in 2017 by 60%%. Caliber’s annual Food Drive is a grassroots effort driven by teammates nationwide who challenge each other in friendly competitions while hosting a wide variety of activities that engage and encourage their local communities to donate cash and food items. Collection centers are set up at each of Caliber’s 488 store locations across 17 states. Cash donations can also be made online at www.CaliberDonations.com.

Caliber Collision has committed to a corporate matching contribution for local food banks based on the amount of cash donations and food items collected by Caliber teammates across each local community.

Tucson Veteran Falls on Hard Times, Gets New Car

by Donald Jordan, KVOA

Cambridge Automotive Group Opens new Maaco Location in Kingman, Arizona

A U.S. Army veteran will receive some much needed help for his daily commutes. Todd Marriner walks and takes multiple buses to work and to his routine medical appointments

Cambridge Automotive Group (CAG), the largest Maaco franchisee in North America, recently opened a new Maaco store in Kingman, AZ. The group co-hosted a ribbon cutting ceremony with the Kingman Chamber of Commerce to celebrate the occasion.

at the VA Hospital. What would be a 10-minute drive usually takes three hours round trip. As a thank you for his service, GEICO and Caliber Collision will be honoring Marriner with a newly-refurbished 2014 Nissan Sentra. It’s part of the National Auto body Council’s Recycled Rides program. Marriner is the second Tucson veteran in recent week to be awarded a vehicle, part of the nationwide Recycled Rides program. Veteran Juan Morales received a 2014 Ford Fusion a few weeks prior. We thank KVOA for reprint permission.

The new Maaco store not only plans to participate in community events and be an active member of the Chamber of Commerce, but will also provide an economic boost to Kingman. This year, the store has already partnered with the Boys and Girls Club of Kingman to be a sponsor for 2017.

“Maaco Kingman is proud to bring jobs to this community and continue to grow and employ even more people,” said Jason Eagar, Director of Operations for CAG. “We are focused

on helping the Kingman economy by buying parts and materials from local businesses. Currently, Maaco Kingman is the only paint and body shop in the area that offers choices to its customers.”

Maaco Kingman plans on offering several specials throughout the year on customer auto body repair and paint needs. Maaco Kingman fixes routine dents and dings, and provides structural repairs as well by its expertly trained technicians to provide high-quality work. Plus, all structural repairs are backed by a lifetime warranty. The Maaco store also provides superb painting services, offering several different packages with varying price points and warranties.

For more information, visit www .Maaco.com or call (928) 263-2508.

www.autobodynews.com C

8 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Single Mother Gets Lift with Car Donation From NABC Members at URG Conference Members of the National Auto Body Council and the United Recyclers Group gave a single mother and her three young children in San Antonio a much-needed lift when they presented the family with a practically brand new car fully loaded with gifts and toys.

refurbished the car, which was presented at the conclusion of the United Recyclers Group’s annual conference in San Antonio.

“This Recycled Rides™ gifting demonstrates the amazing opportunities those of us in the collision industry working together have to change and save lives,” said Chuck Sulkala, NABC Executive Director. “It truly reflected the theme of the URG conference, Together Towards Tomorrow. It was rewarding to see how the collective generosity of Farmers Insurance, Caliber Collision and many parts and supply companies all came together to provide this young mother with the Representatives from Caliber Collision and Farmers unveil gift transportation so she can start a new life for herself the 2014 Ford Fusion presented by the National Auto and her children.”

Body Council at the conclusion of the URG Conference “United Recyclers Group The car donation is part of the was honored and truly humbled by the National Auto Body Council’s Recy- experience of partnering with NABC cled Rides™ program, a collaborative and Recycled Rides™ in this tremeneffort by collision industry companies dous endeavor,” said Don Porter, CEO who team up to repair and donate cars for URG. “When a request was made to individuals in need. for contributions towards a gas fund for The family received a 2014 Ford the recipient, URG conference attenFusion donated by Farmers Insur- dees generously dug into their pockets ance®. Caliber Collision-Cavender to provide additional assistance to the

family. We greatly appreciate NABC for allowing us to be involved.”

The family was nominated for the program by Family Promise of Greater New Braunfels, whose mis-

Dex Dextraze, Farmers National Auto Strategy, congratulates the Recycled Rides recipient

sion is to help support families as they transition from homelessness into independent living.

Since the inception of the National Auto Body Council’s Recycled Rides™ in 2007, NABC members have donated over 1500 vehicles with an estimated value of $20 million across the country.

State Lawmakers Consider Proposed Collision Repair Legislation A number of bills potentially impacting collision repairers have been introduced in state legislatures throughout the Southwest this year.

Current law in Oklahoma allows insurers to determine prevailing labor rates either through market surveys or through competitive bids; the Oklahoma House is considering a bill (HB 1521) that would require insurers using market surveys to provide survey information (including the date of the survey, methodology used, number of respondents, questions asked and resulting data distribution) to any party that requests it.

The Arizona Senate in March voted 18-12 in favor of a bill (SB 1111) that would increase the minimum liability insurance drivers in that state must carry from $10,000 (set in 1972 and the equivalent of more than $58,000 in 2017 dollars) to $25,000 (just $4,300 in 1972 dollars); about 1-in-5 Arizona drivers carry that current minimum coverage, according to the Property Casualty Insurers Association of America, which argued against the bill. And Utah’s Gov. Gary Herbert has signed into law legislation (HB 265) scrapping that state’s vehicle safety inspections next year.

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 9

Louisiana’s Lawsuit Against State Farm, Filed by Former Attorney General, Lies Dormant

by John Severance, Louisiana Record

Nothing has happened for more than a year, but Louisiana’s lawsuit against insurance carrier State Farm is still alive.

The case documents are sitting in an East Baton Rouge Parish court.

The lawsuit has an interesting history.

The suit has to do with State Farm’s alleged insurance claims practices pushing repairs to predetermined shops which then engage in cost-cutting actions, like using old or damaged parts to repair cars.

The original lawsuit came in 2014 and was filed by Republican former Attorney General Buddy Caldwell. It was subsequently dismissed by district judge Donald Johnson in December 2015.

Despite the dismissal, Caldwell received 30 days to refile and revise the case, and that’s what he did in January 2016.

But Caldwell was not going to be around to prosecute the case. He was defeated in the November 2015 election by fellow Republican Jeff Landry in the attorney general race.

The last action on the case came on March 17, 2016, and nothing much has been reported on since.

According to a press release, Landry said the court should not dismiss the case. He was asked if he would proceed with the case against the insurance carrier.

Press secretary Ruth Wisher said in a statement, “All cases and contracts begun in the previous administration are under review to ensure the Department of Justice upholds the rule of law, adheres to the Constitution, and protects the rights of our state and its citizens.”

The original case received some notoriety and was featured on CNN and highlighted by newsman Anderson Cooper.

Like most companies, State Farm does not comment on pending litigation. The insurance carrier’s response, though, is four pages longer in the revised lawsuit than it was when the original suit was filed.

Caldwell’s revised lawsuit revealed that it will be attacking State Farm for being a business that is allegedly affecting another industry and consumers in the state improperly.

Caldwell said in the revised complaint, “This is not an action related to the defendants’ participation in the insurance market. Rather, this is an action related to the defendants’ unlawful

manipulation of the auto body collision repair industry and their attempt to control that influence that industry to the detriment of Louisiana citizens.”

In its 2015 rebuttal, State Farm lawyers wrote, “…(T)his case is about insurance claims practices, and the fact that auto body shops are also involved does not remove it from the insurance commissioner’s jurisdiction.”

And in its request to squash the revised lawsuit in February of last year, the carrier’s lawyers wrote, “The alleged conduct falls squarely within acts and practices ‘in the business of insurance’ as defined by … the Louisiana Insurance Code, and is subject to the jurisdiction of the Insurance commissioner.”

The revised suit said, “This is not an action related to the defendants’ participation in the insurance market.

Rather, this is an action related to the defendants’ unlawful manipulation of

ABRA Auto Body and Glass in eastcentral Loveland broke ground late last month on an expansion that will increase the business’ size by 75 percent and add parking spaces and better landscaping.

A crew from Elevated Excavation works on expanding the ABRA Auto Body and Glass building at 1805 Topaz Drive on April 7.

The expansion will add more parking and almost double the building space. Credit: Logan O’Brien / Loveland Reporter-Herald

ABRA, at 1805 Topaz Drive, will expand its production shop by 5,600 square feet, according to Ken Lanier, market vice president for ABRA, which has 24 locations in Colorado and 356 nationwide. The work should be complete Nov. 8, Lanier said.

Growing customer demand led

to the decision to build onto the shop, he said.

“We need to expand to better meet the needs of the consumers there,” Lanier said. “We’ll have more room to do what we’re already doing... so hopefully instead of scheduling customers a month out, we can schedule them a week out.”

This architectural rendering shows what the ABRA Auto Body and Glass building at 1805 Topaz Drive in east-central Loveland will look like after a 5,600-square-foot addition is complete in November 2017.

(Special to the Reporter-Herald) The auto body shop, managed

by Amos Kelly, has 13 employees and will be adding four more, Lanier said.

ABRA, a national chain based in Minnesota, launched its Loveland location in March 2009, taking over Loveland Auto Body, which was opened by Bob Bowman in 1993.

The shop is open 7:30 a.m. to 5:30 p.m. Monday through Friday and 9 a.m. to noon Saturday.

For more information, call 970669-2207.

We thank Reporter-Herald News for reprint permission.

10 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

We thank Louisiana Record for reprint permission.

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ABRA Auto Body in Loveland, CO Begins Expansion

by Craig Young, Reporter-Herald News

the auto body collision repair industry and their attempt to control … that industry to the detriment of Louisiana citizens.”

And in that revised suit, the state insurance commissioner’s office said it does not have any jurisdiction when it comes to insurer relationships with body shops.

“The office of the commissioner of insurance has repeatedly maintained that the Insurance Code ... provides no basis for the insurance commissioner to exercise jurisdiction over the relationships with auto body repair facilities and the unfair or deceptive acts and practices that stem from those relationships,” Caldwell wrote.

So what’s next?

It’s up to the district court, but no date has been set.

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 11

Baton Rouge Community College’s New Auto Training Center Promises to Help Fill a Local Shortage of Skilled Technicians

by Ryan Broussard, Baton Rouge Business Report

Gerry Lane Enterprises President Eric Lane can’t find enough certified auto repair technicians to keep his four Baton Rouge area dealerships fully staffed. And he knows he’s not alone.

“I don’t think there’s a service department in Baton Rouge who doesn’t need more techs,” says Lane, adding he’s currently looking for at least 11 certified technicians.

The need is even greater for All Star Automotive Group President and CEO Matt McKay. He says he would hire 60 technicians today for his company’s 11 area dealerships if only he could find them. Describing the need as “tremendous,” McKay says dealerships and repair shops all across Louisiana are struggling to find skilled workers.

“You can call any car dealer in the state and ask them if they need technicians,” he says, “and they will say, ‘Yes.’” Lane and McKay are among those hoping the new McKay Automotive Training Center at Baton Rouge Community College—named for John W. McKay Jr., Matt’s late father, who worked for more than 30 years as a teacher, coach and principal in the local school system—will help fill the gap in their industry and make Baton Rouge a destination for auto technician training.

The new 83,000-square-foot center has been a decade in the making and cost roughly $25 million to build.

BRCC contributed $19 million, while the Baton Rouge Area Foundation, East Baton Rouge Redevelopment Authority and BRCC Foundation collectively contributed the other $6 million. A ribbon cutting was held on March 15 to mark completion of the center, for which ground was broken about two years ago.

“We’re creating a strong entrylevel technician,” says Van Guarino, the BRCC automotive department chair and a well-known instructor who previously taught at the Livingston Parish Literacy and Technology Center. “We’re working to supply the demand for now and the future.”

Serving as a centerpiece of the Ardendale mixed-use development that’s under development on a 200-acre tract northeast of BRCC near Florida Boulevard, the auto center features two fully

equipped diesel labs, three industry standard diagnostic/technical labs, six high-tech classrooms and a 100-seat auditorium. It offers students specialized classroom instruction and practical shop experience to prepare them to fill entry level technician jobs immediately after graduation.

gram is about $15,000 per student, which BRCC Chancellor Larrisa Littleton-Steib says is about $30,000 less than other noted automotive training academies in the country. Guarino says the center can accommodate about 300 students at max capacity, and has the ability to accept about 50 new students each spring and fall semester. He’s hopeful he can attain 100% job placement for graduates.

Students who pursue the diesel track degree will gain experience in servicing engines that run big rigs and barges.

Smaller diesel engines, such as the ones auto manufacturers like Cadillac have announced The new McKay Automotive Training Center at Baton they will soon place in some of Rouge Community College measures 83,000 square feet their cars and small trucks, will and includes two fully equipped diesel labs, three industry be covered in the regular autostandard diagnostic/technical labs, six high-tech classmotive track. Lane says the rooms and a 100-seat auditorium. It offers students specialized classroom instruction and practical shop skills garnered from both deexperience to prepare them to fill entry level technician gree tracks should be in high jobs immediately after graduation. Credit: Allie Appel demand for years to come.

Michael Kenney is among the “I see a big increase in diesel comfirst class of students. The 35-year-old ing now that they finally figured a way Baton Rouge resident grew up watch- to have diesel pass the EPA (emissions ing his grandfather fix cars at the old testing),” he says.

Northside Motor Exchange on Scenic Highway and tinker with them during his free time as a favor for friends. He initially took a much different route, gaining certification as a barber and in the air conditioning/refrigeration field.

But when he decided he wanted to change his career path, Kenney remembered his grandfather.

“While you’re working on cars, they’re not talking to you,” he says of the appeal of the auto repair industry.

Kenney and eight other students, including one female, began the twoyear program last fall and were followed by another seven students who started this spring. They will all follow one of two degree tracks, either automotive technology or diesel heavy truck technology, both of which lead to an associate degree in applied science. The course catalog for both tracks follows the guidelines set by the National Automotive Technicians Education Foundation and mirrors the standards of the National Institute for Automotive Service Excellence, commonly known as ASE, which allows for the students to become certified in several areas, such as drivetrain and electrical systems, while working toward their degree.

Total enrollment cost for the pro-

12 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Students start the two-year program by taking basic tool, safety and electrical courses during the first semester, along with general math and social science classes. In the second semester, they continue with their classroom instruction but also begin internships at select dealerships in Baton Rouge, where they learn under mentors three days a week.

“They need somebody to work with who can bring them along,” Lane says of the importance of the internship. “It’s just critical to have a mentor.”

18-year-old Calvin Jarrett, who recently graduated from Southern University Laboratory School and is in his second semester at the auto center, says his internships at All-Star Kia and All-Star Nissan are providing him with the kind of real-world training that he can’t get in the classroom.

“During the week we’re reconditioning cars,” Jarrett says, “so you see all makes and models.”

Getting more local students and graduates into his local dealerships is a welcome change for McKay, who See Baton Rouge, Page 15

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 13

Houston Towing Company Under Investigation After Drivers Lodge Complaints

by Amy Davis, Reporter / Consumer Expert

A towing company with ties to USA Auto Collision Center—a business on Houston’s south side that was shut down after a Channel 2 investigation last year—is accused of similar bad behavior after drivers lodged some complaints.

In May 2016, dozens of victims and countless hours of investigation led to the closure of USA Auto Collision Center and Stan’s Wreckers. Five employees were arrested and charged with stealing from customers.

Piece by piece, our hidden cameras watched as bidders took what was left on the property of USA Auto Collision Center at a private auction in January. Tow trucks, vehicles and office equipment were among those items.

Owner Richard Gonzalez sold it all, from what was once his business on Almeda Genoa Road after the state revoked his towing and storage licenses.

Our investigation culminated in a raid and five arrests. The employees taken into custody were charged with organized criminal activity. They are Richard Gonzalez, Ruben Rendon, Andres Vasquez, Brenda Awawdeh

and Paulita Rodriguez.

The Houston Police Department seized documents and equipment that officers said proved those employees conspired to dupe customers and prevent the victims from calling for help.

Here’s what the scam entailed, according to investigators: When a driver’s car broke down, a worker from USA Auto Collision Center arrived at the scene, telling the driver that the only place he or she could tow the vehicle was to a storage lot that was also owned by the company.

Once the pair arrived there, the Collision Center employee tricked the customer into signing documents to take the car apart at a body shop also owned by the same company. In order for the drivers to get their cars back, they’d have to spend thousands of dollars, officials said.

“They wouldn’t let me have my car,” Jim Robinson said. “They wanted $2,800.”

When asked, “They just took your truck?”

“They stole it,” Arch Yancey told reporter Amy Davis. “They stole it.

That’s all there is to it.”

Nearly one year later, where are the suspects?

Andres Vasquez, who ran the body

14 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

shop, disappeared when he posted bail and left jail. He hasn’t been seen since.

Ruben Rendon, who worked at the body shop, was jailed again three months after his arrest—this time, for failure to stop and provide his information in a hit-and-run crash. He paid bail in that case, but in December, he entered a Target store with a rolling suitcase and filled it with electronics, according to court records.

When security stopped him, Rendon bit the officers, screaming, “I’m not going back to jail!” police said.

Rendon’s bond is now set at $100,000.

He was charged with robbery and bodily injury.

And yet, another USA Auto Collision Center remains open in another part of Texas—in Pharr, in the Valley.

The two businesses have more in common than just their names. This USA Auto Collision Center is owned

by Lorenzo Gonzalez, the father of Richard Gonzalez.

Lorenzo Gonzalez attended a Houston City Council meeting last year, where he pleaded with members not to cancel the city’s towing contract with the local USA Auto Collision Center.

“Allow me to resume control of my business,” he said at the time. “I

will also remove my son and every other employee of the company.”

The council didn’t buy his story, and now, the Texas Department of Licensing and Regulation is trying to get Gonzalez’s license in Pharr revoked as well, citing the same deceptive tactics that were used at the Houston business, officials said.

In Pharr, the Gonzalezes share a limited partnership of the towing company currently under investigation.

If they’re found guilty, the five suspects arrested in the Houston operation face between two and 20 years in prison. The date for a criminal trial has not been set.

We thank Click 2 Houston for reprint permission.

The source for timely information that every body shop needs!

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Continued from Page 12

Baton Rouge

for years has been recruiting graduates from the Houston area. And even though he provided them free housing and tools, the retention rate for out-ofstate workers ended up being about 20%.

“They wanted to go back home,” McKay says. “If we would have gotten a retention rate at 50%, we would have been happy.”

For decades, Baton Rouge auto dealers have looked to schools like the Universal Technical Institute of Texas in Houston, as well as others in Ohio and Tennessee, to hire technicians from certified training centers.

“Many of the companies were actually receiving their employees outside the area,” Littleton-Steib says.

“They were going to other states to recruit.”

Frustration with the situation led local auto industry leaders like McKay to approach BRAF and BRCC about a decade ago to begin discussing potential solutions for future job needs. The new auto center represents a public-private partnership, by which area dealers

like McKay have provided state-of-theart equipment and vehicles.

And though the ribbon cutting was just held earlier this month, the new auto training center is already continuing to grow. A sister facility, the Baton Rouge Community College Collision Center, will be built adjacent to the new center. The 20,000-square-foot facility will feature four labs and four classrooms, and is expected to cost roughly $6.5 million, says BRCC Executive Director of Marketing and Public Relations Kizzy Payton. Ground was recently broken on the collision center, and it should be completed in about a year.

Lane says the painters and body technicians who will eventually graduate from the collision center should also have no trouble finding work in the Baton Rouge area.

“There’s just not as many people going into body repair and paint as it used to be,” he says. “It’s getting really hard to find a good body man and painter.”

We thank Baton Rouge Business Report for reprint permission.

www.autobodynews.com C

Continued from Cover

TX Bill Survey

low a certain standardized template and continue to provide the results to the state. The agency also defined the geographic scope of a market for which a prevailing rate applies.

House Bill 3840, sponsored by Rep. Travis Clardy, R-Nacogdoches, removes the insurers out of the surveying game altogether and states: “Prevailing rate” means the rate identified by a rate survey that is conducted by a third party that is designed to be transparent and unbiased and that is based on the posted retail labor rates and not direct repair program shop rates that operate under a contract with an insurer.

Larry Cernosek, legislative board member of the Houston Auto Body Association and owner of Deer Park Paint & Body, told the House Insurance Committee on Tuesday that the only carrier in Texas that seems to survey labor rates was State Farm.

“They won’t give us the information of how they got that information,” he said.

In an interview April 14, Auto

Body Association of Texas President Burl Richards said his ideal thirdparty surveyor would be National Auto Body Research, which conducts the Variable Rate Surveys of various states’ labor rates.

“That’s who we would love to be able to do the survey,” Richards said.

But Richards said he was open to other neutral parties and said he’s contacted “multiple insurance companies” on the issue.

“Nobody wants to talk about it,” he said.

He said he’d like to have representatives from major Texas auto body groups and carrier representatives come together and determine an equitable survey system.

“That’s the fair way to do it,” he said.

On a broader philosophical level, there’s the issue of if the notion of a “prevailing rate” is irrelevant. Given that a carrier can just total a car if the repair bill gets too high—thereby keeping labor rates in check—is another state-sanctioned price control even needed? Does this monkey with a customer’s right to choose their own shop?

However, an insurer policy might See TX Bill Survey, Page 45

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 15

shops, such as what specific equipment is mandatory.

“It’s different than from a pricing matrix, but make no mistake about it: tions have allowed him to drop all but A lot of the OEM certification requirements are very similar to a DRP,” Dorn a couple. said. “It’s different, but still, they want “I use the adage: If you let me fix this, that want that. There’s no grey the car to manufacturers standards, use all OEM parts and charge you a area.”

Certified shops, he said, still find fair rate and get the car done quickly themselves in a position of needing to for the customer, I’ll do business with explain the necessary costs you,” Elder said. “Other than involved in proper repairs to that, forget it. I’m not going adjustors and insurers. They to be dictated to by an inmay understand the costs insurer that comes in looking volved for the equipment, for for second-rate work that example, but generally don’t would reduce our reputation grasp the costs involved for or injure our customers. It’s training beyond the fees and worked well. I’ve seen some Tom Elder travel expenses. drop-off in volume. But the “It’s the number of people we have drop-off has been filled in by all those gone in a given month, training somegive-aways that [are part of] direct rewhere,” Dorn said. “These are not your pair, like storage, administrative fees lower-end folks. These are your higherand other things.”

Rick Starbard of Rick’s Auto end folks who aren’t producing labor [while they are away at training]. Your Collision in Revere, MA was the only painters aren’t producing one of the speakers on the paint labor because they’re panel who has never had renot getting those cars that [the ferral or contract agreements body technicians away at with insurers. He said he training)] would be producthinks it’s easier to build up ing. So it’s not just that techthe financing for the training nician; it’s everyone else he’s and equipment OEM certifiassociated with and what he cations require “by not havRick Starbard generates for every other deing those relationships.” He partment. That’s gone. That is sales said automakers’ increasing ability [revenue] that you cannot get back.” through vehicle telematics to know That said, the panelists agreed about collisions in real-time and be that customers can be strongly influable to influence customers’ shop choice at the accident scene will make enced by dealer or automaker referrals and the concept of a shop being certiOEM shop certifications increasingly fied to repair their particular vehicle valuable. make or model.

“I think that gives us an idea of “When you have a customer where the industry is going and how come to you because you’re a Merthe OEMs are going to start driving cedes-Benz certified shop, in our ex[business],” Starbard said.

But Barry Dorn of Dorn’s Body perience, they don’t want to hear what & Paint in Mechanicsville, VA, a shop an insurance company has to say that has earned shop certifications [about other shops],” Carvino said.

“They want to take their vehicle to a from Porsche, Audi, Tesla and JaguarLand Rover, cautioned that although certified shop.”

Elder agreed that such referrals OEM certification programs are different from DRPs, they similarly place are “a done deal, a sold ticket.”

“It does a great job for us,” he said. non-negotiable requirements on Continued from Cover

OEM Certification

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The panel was asked how OEM certifications have led to changes in how they prepare estimate or “blueprint” jobs.

“I don’t think you write an estimate on this monitor without having vehicle information up on this [other] monitor [next to it],” Starbard said.

“They go hand-in-hand now.”

Carvino said automakers have good reason for emphasizing the need to print-out the OEM procedures every time, even if the shop has previously done a similar repair on a particular make and model of vehicle, and it’s not just because automakers check for those print-outs in certified shops’ files when conducting audits.

He said when one particular Mercedes-Benz model first came out, the OEM procedure for replacing the quarter panel required replacing the roof as well.

“Maybe a month or two later, we did the same car, and found there’s now a sectioning procedure, you don’t have to lose the roof,” he said. “So the first thing is to always pull the OEM procedures.”

Does OEM certification influence shops’ choice of parts? They all agreed they use little in the way of

used or non-OEM parts.

“If you want to be a certified shop, I don’t see why you’d even want to consider alternative parts,” Carvino said. “Other than maybe if you have a 2016 car with the door ripped off and missing, you might want a [used] door from another 2016 or 2017 car so you don’t have to build that whole door completely.”

Elder said increasing vehicle technology is doing as much to make new OEM parts the best choice for any shop, certified or not. Mercedes headlamps, for example, must be synched with the vehicle’s computer system.

“We had one example where a major insurer wrote ‘opt-OE’ headlights for a new Mercedes,” Elder said. “I got the car after another shop repaired the car, because the car went nuts. Nothing worked. I saw the Mercedes star on the headlight, and I didn’t understand it. The car was totally confused. So I gave the part number to the parts department, and found out the headlight was...for a Canadian [version of the] car that had some sort of different circuitry in it. It cost Allstate Insurance $7,500 to figure that out and put two real headlights back in the car.”

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 17

Man Posing as Worker Steals From Phoenix Auto Shop Owner

The homeless man and his the goodness of his heart tells him to wife were also missing. still help those in need.

A Phoenix auto shop owner says a “It was taken apart homeless man that he put to work took getting ready for advantage of his goodwill by stealing paint. He put it back his tools and a customer’s truck. together and drove it “I helped you out, and you turned off,” said Luna. around and backstabbed me,” said The couple left Maick Luna, owner of Truck Star Auseveral bags of items tobody. behind. In one of In March, Luna says a man that them, Luna found a One morning, Luna arrived to work to find $2,000 in claimed he was a homeless veteran apmedical bracelet that tools and a customer’s 2003 Chevy Silverado worth proached him at his shop located near belonged to the man $8,000 gone. Credit: 3TV/CBS 5 10th Avenue and Hatcher Road and with his information “It was taken apart getting ready for paint. He put it asked for work. on it. It was turned back together and drove it off,” said Luna. Credit: back on your feet,’” said Luna.

3TV/CBS 5 “He talked about how he needed Luna agreed to pay the man up to over to Phoenix Police. help because his wife was living on the $400 a week for his work.

“They need [to] respect [that] you “Not all people are bad people. street, so I told the guy, ‘You know A week later, when the Valley don’t bite the hand that feeds you,” said Sometimes, you just pick the wrong what, if you know how to use a sander, was hit with rain, Luna says the man Joseph De La Cruz, who works at the ones to trust,” he said.

I can help you out just until you can get asked if he and his wife could stay at St. Vincent De Paul building down the We thank KPHO/KTVK for reprint permission. the shop overnight to stay dry. street.

De La Cruz says, unfortunately, Since the man was a good and prompt worker, Luna re- incidents like this happen.

“The majority of my clients are luctantly agreed.

“This guy looked like he very well-mannered and respectful, but wanted to do something dif- there are more than a few bad apples in ferent, get back up on his feet, a bunch that will ruin it for everybody,” so I tried helping the guy,” said De La Cruz.

“It’s a mistake I made, obviously, said Luna. : One morning, Luna arrived but it’s not going to stop me from helpto work to find $2,000 in tools ing people in the future,” said Luna.

Even though the theft is a big setand a customer’s 2003 Chevy Luna agreed to pay the man up to $400 a week for his Silverado worth $8,000 gone. back for his small business, Luna says work. Credit: 3TV/CBS 5

by Zahid Arab, KPHO/KTVK

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Continued from Cover

Northeast Lawmakers

The other New York parts-related bill (AB 6861) would prohibit an insurer from requiring a repair facility to “use a specific vendor or process for the procurement of parts or other materials.”

Another New York bill (AB 414) would prohibit an insurer from limiting payment based on pricing caps for labor, parts, paint or materials; it also would require that if an insurer-recommended repair facility fails to return a vehicle to pre-accident condition, the insurer will, at no additional cost to the vehicle owner, return the vehicle to pre-accident condition at a repair facility of the vehicle owner’s choice.

Bills (SB 2959, AB 2612) introduced in both the New Jersey Senate and General Assembly would require dealers to give new-car buyers a written statement noting that federal legislation makes it illegal for automakers or dealers to “void a motor vehicle warranty or deny coverage under the motor vehicle warranty simply because an aftermarket

or recycled part was installed on the vehicle, or simply because someone other than the dealer performed service on the vehicle.”

Lawmakers in Massachusetts are considering a bill (HB 479) that would allow shops to demand arbitration in the event an agreement cannot be reached as to the amount of a loss; current law requires that such a request come from the insured.

Three other Massachusetts bills (HB 494, SB 599, HB 546), similar to those introduced in previous years, would require that a minimum labor rate be established by the Massachusetts Insurance Commissioner based on the average rates paid by insurers in surrounding states (Connecticut, New York, New Hampshire, Rhode Island and Vermont).

A bill (HB 5896) introduced in Rhode Island in March would add two new requirements to the state’s existing law requiring insurers to survey shops in order to determine prevailing labor rates. The first change would require an insurer’s labor rate survey report to the state be signed by “an authorized representative executed under the penalty of perjury.”

See Northeast Lawmakers, Page 20

18 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 19

Continued from Page 18

Northeast Lawmakers

The second change would prevent smaller insurers (which are exempted from conducting the surveys based on their market share) from simply adopting the labor rates of another insurer. Those smaller insurers, the bill proposes, would either have to negotiate with each individual shop, or voluntarily conduct a labor rate survey of their own.

The Automotive Service Association is opposing two proposed bills in Maine that would either require vehicle safety inspections only every other year rather than annually (HB 439), or scrap the program entirely (HB 567).

Your leading source for SOUTHWESTERN Collision Repair News! southwestern.autobodynews.com

Texas State Technical College Hosts First Auto Tech Day school,” said TSTC Manager of Dual Enrollment for West Texas Rene RolLocal high school students had the ston. opportunity to work side-by-side with Students at the event were treated Texas State Technical College Auto- to breakfast and got to hear from TSTC motive Technology students during West Texas Campus Provost Eliska the college’s first Auto Tech Day. Smith, TSTC Automotive Instructor The event was focused on re- Henry Ortega, TSTC Automotive Dicruiting students to TSTC’s Automo- vision Director Mark Koslan and TSTC Automotive Advisory Board member and owner of J&M Automotive in Sweetwater Josh Waldon.

After presentations, the high school students were paired with TSTC students to get hands-on experience in areas such as air conditioning, diagnostics, brake repair and engine maintenance and repair.

“When choosing a career path, it’s important to know Colorado City High School student works closely with what you’re getting into,” TSTC Automotive Technology student to get hands-on said Rolston. “And there’s experience in diagnostics no better way than having tive Maintenance and Repair dual an event dedicated to exposing students enrollment pathway - an educational to a field and giving them an opportuinitiative that allows high school stu- nity to experience it hands on.” dents to take college courses.

Rolston said she hopes this event “We want to make sure students will encourage students to pursue this are aware of the college opportunities pathway because there are benefits to available to them while still in high enrolling in dual enrollment courses.

by Amanda Sotelo, TSTC

20 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

“When a student enrolls in dual enrollment they are saving themselves time and money in the future,” she said.

“When they complete the pathway they have one semester under their belt.”

TSTC currently has 43 school districts that are utilizing the dual enrollment pathway for its junior and senior high school students in Sweetwater and surrounding counties, including nine online pathways for those who are too far to travel to campus.

Dual enrollment classes are typically offered Monday through Thursday from 8 a.m. to 10 a.m. on the TSTC campus.

“We have students as far as 250 miles away taking dual enrollment courses through TSTC,” said Rolston.

“So our online pathways make dual enrollment a reality with us when students live too far but want to take advantage of this great partnership.”

For more information on the dual enrollment Automotive Technology pathway call 325-235-7319 or go online at tstc.edu.

AASP/NJ Debuts Path to Certification Series and More at 40th NORTHEAST™ Conference & Tradeshow

by Chasidy Rae Sisk

AASP/NJ’s 40th Annual NORTHEAST™ Conference and Tradeshow, held at the Meadowlands Exposition Center on March 17–19, was bigger and better than ever with a handful of first-of-a-kinds.

AASP/NJ hosted a four-part Path to Certification panel series and presented the first James Moy Memorial Award for Dedication to the Automotive Repair Industry. Additionally, this was the first agenda to include presentations from Superare Marketing, and Mike Anderson of Collision Advice presented a brand new seminar on the importance of disassembly.

According to AASP/NJ Executive Director Charles Bryant, “The 2017 NORTHEAST Automotive Tradeshow was once again a great success. These are not just my words; this is what I constantly heard from people at the show and from people that attended the show who have called to comment after the show. There was something for everyone at the NORTHEAST Tradeshow, from the most informative seminars to the most modern tools and

equipment available in the industry.

Every year, the Northeast Tradeshow seems to get better and better, making it a must-attend event for the members of the industry. Congratulations to all

discussion moderated by Gary Wano of GW & Son Auto Body Shop, which featured Tom Elder of Compact Kars Inc, James Carvino from Rojo Collision, Rick Starbard of Rick’s Auto

Panel on Shop Perspectives: (l to r) Gary Wano (GW & Son Auto Body Shop), Tom Elder (Compact Kars Inc.), James Carvino (Rojo Collision), Rick Starbard (Rick’s Auto Collision & Repair) & Barry Dorn (Dorn’s Body & Paint)

that played a part in making the Northeast Tradeshow available to the many members of the automotive industry.”

On Friday afternoon, AASP/NJ and SCRS co-hosted the annual East Coast Resolution Forum and Leadership Meeting. This closed session offered industry leaders an opportunity to discuss collision repair concerns and brainstorm solutions as a group.

Friday evening’s seminars began with AASP/NJ’s Path to Certification: The Shop Owner’s Perspective, a panel

Collision & Repair, and Barry Dorn from Dorn’s Body and Paint. All of these shops are certified by a variety of OEMs, and they shared their experiences during this session.

When questioned about how they got involved with the certification process, responses varied from being approached by the OEM, the shop pursuing the certification, or being dealership driven, depending on the manufacturer.

The transition to becoming certified includes audits from the OEM to view the

shop setup, equipment requirements and training standards.

Carvino noted, “You have to look at every aspect of how you run the business slightly differently because the scope of work changes,” and Dorn added, “You have to change the way you and your team think. It’s a culture shift so you really need your team to buy in, and it can be a challenge, but like all challenges, the reward is there when you get through the process; you sleep well knowing that you’re doing the right thing.”

Considering which technicians to send for the OEM required training is also an important step since it can be such an expensive process. A lot of the OEMs require I-CAR Gold training, but some require additional courses and education. Elder admitted, “It takes a lot of time, effort and pride to make it work.”

Dorn contributed, “You have to choose someone who’s passionate because you want to have every possible advantage to pass.” The overall consensus among the panel participants was that OEM certification requires diligent shop owners who are willing to

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 21

obtain the training necessary to properly repair specific vehicles.

The panel discussed customer expectations for certified shops, the challenges inherent in technological advancements, and the importance of blueprinting. Dorn stressed, “There are procedures that change weekly, so you have to pull the OEM specs on every single repair. Keep in mind that consumers are relying on this technology, and if it’s not properly calibrated, it can cause major issues and be extremely dangerous!”

A useful benefit of OEM certification, according to the panel, is that they’ve found it easier to justify the use of OE parts to the insurers since the manufacturers’ requirements necessitate their utilization. Dorn noted, “OEs are demanding like insurers, so we need the carriers to understand the differences between original and aftermarket parts. There’s a learning curve to get them to understand the real cost behind what we do; the certification process is very stressful but worth the effort.”

Since obtaining their OEM certifications, some of the shop owners reported reducing the number of DRP relationships they’d previously had, but most of the panel members still participate in some DRPs. According to Elder, “Our price is our price, and that’s what we charge. We got rid of the DRPs that require substandard parts and processes, but I don’t have a problem with the others as long as they let me follow OE requirements, charge a fair rate, and perform a proper repair for the consumer.”

Regarding how customers react to the OEs referring them to certified shops, Carvino shared, “Customers want certified shops and really get behind us because they want to feel confident that their car is being taken care of.”

Taking the money, time and resources required into consideration, Wano asked if the shops would go through the certification process again, and the response was a resounding “yes!” Elder “wouldn’t do it any other way,” and Carvino stated, “It’s meaningful to see that certification.” Starbard insisted, “With all cars becoming so high-tech, you need to step your game up,” while Dorn added, “OEM certification takes your shop to the next level, and the sense of pride you see in your team makes it worthwhile.”

Friday night’s offerings also included “Ford High Voltage Vehicles Components and Operations,” pre-

sented by Mike Brabble, Ford Motorcraft Technical Trainer, and facilitated

by Flemington Car & Truck Country.

Recommended for all aftermarket service technicians interested in high voltage vehicle technology, the course provided some of the latest information on advanced automotive technology.

Ford Service Engineer Gerry Bonnani provided examples of the improved repair elements of the aluminum F-150 in “Aluminum F-Series Collision Repair Information,” and Collision Advice’s Mike Anderson shared “Who Pays for What? Survey Results” in a presentation sponsored by Axalta Coating Systems.

Also on Friday evening, Jim Saeli of Management Success shared tips to “Supercharge Your Profits.” Beginning by telling attendees that some shops aren’t getting paid like they should, Saeli encouraged them to take a look at what isn’t working well enough so they can fix the real problem. “Too often, shop owners work harder than anyone and make less money. You should be paid well for all you do!”

The process begins by watching your numbers and connecting the dots.

Shops may have plenty of work, but they need to get it out the door in a timely manner. Saeli warned, “Owners often get stuck on one thing and miss the big picture. You have to track your numbers, not go by your gut or rely on emotions. A common fixation is that a shop needs more cars or better marketing, but I often find that you’re trying to fix something that isn’t broken. The most frequent issue is that shops don’t have anyone up front who can sell. Your sales guys should be doing 80% or better. You need to make time for estimates and invest in a real sales department.”

Saeli continued, “Making money comes from efficient problem-solving and then getting paid well for the skills and solutions your team provides. Without evaluating your key numbers, you’re running blind, but your vision improves once you start tracking those numbers. You need statistics for each step of the process. You will make money if your numbers are where they should be, and then your customers do your marketing for you.”

Shops must track numbers for each person in the business to ensure they are producing, and putting those numbers into graphs paints a picture and helps easily identify problem areas by revealing what needs to be fixed and what strengths to focus on. “It gives you better control and understanding so you

22 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

can start making the money you always thought you should,” Saeli emphasized.

Noting that the people working at a shop are the number one thing to make or break a business, Saeli turned to recruiting which should be a fulltime endeavor. He dropped a “truth bomb:” “You can’t hire great employees, but you can hire great potential employees. It’s management’s job to cultivate that potential and to create a great working environment.”

Basic marketing techniques are required to recruit a prospective employee, it begins by knowing what employees are looking for in a business: well-equipped, good environment, location and benefits; money is not a driving factor, but showing appreciation makes a huge difference. Business owners need to sell recruits on joining their team and look for people with the right attitude.

Pointing out that people (not cars) have problems, Saeli stated that employees should be friendly, observant, and enjoy helping customers solve their problems. After discussing efficiency expectations for technicians, Saeli noted that expenses should consist of these percentages: 18% technician pay, 30% cost of parts, 8% front office, 24%

overhead, and 20% owner pay, but “If you’re still working in your shop, you should be pulling in more than 20%.”

He added, “Treat your employees right because they are as important as your customers—they’re your most valuable asset!”

On Saturday morning, Jerry McNee and John Niechwiadowicz hosted an interactive workshop designed to help shops explore ways to become more efficient, productive and profitable, entitled “Open Your Eyes... and You WILL Become a Game Changer.” They delivered an encore presentation on Saturday afternoon. At the same time, Peter Fryzel and Michael Bonsanto taught I-CAR Vehicle Technology Trends and Diagnostics Overview (VT117L01) off-site at the Embassy Suites, located next door to the Meadowlands.

Also on Saturday morning, Larry Montanez of P & L Consultants held “Proper and Accurate Blueprinting with Pre-Scan and Pre-Measure,” with assistance from asTech’s Jake Rodenroth and Metropolitan Car-O-Liner’s Anthony Cetani. The trio explored two specific and important procedures for preparing a vehicle for repair, measuring and scanning. James Meyer, Senior

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 23

Collision Training Administrator for Toyota, presented “Toyota OE Resources: Get Connected” on Saturday morning and again Sunday afternoon.

The Women’s Industry Network (WIN) also held a seminar on “Engaging Women in Collision Repair.”

Beginning at 11AM, the Assured Performance Network’s Aaron Clark moderated AASP/NJ’s Path to Certification: The OEM Perspective (NonLuxury Brands) with a panel consisting of Ford’s Mark Mandl, Dave Pyle from Toyota, Gary Ledoux of American Honda, and FCA’s Brian Wayne. The OEM representatives discussed their specific eligibility requirements, all of which are based on training, tools, knowledge and the facility itself. In addition to their own training requirements, all of the OEMs present require I-CAR Gold status, except Toyota which uses its own benchmarks, but Honda will accept VQ status through VeriFacts in lieu of the I-CAR classification.

Discussing the role of certification in the shop’s relationship with insurance companies, Wayne mentioned the ability to leverage improved CSI, and Mandl stressed that how the shop is promoted to the insurers is critical. Pyle encouraged shops to educate consumers on the difference between OE and aftermarket parts so the customer can have an educated conversation with their insurance carrier.

While the OEMs do not generally have parts restrictions, FCA and Honda both have restrictions for certain models, and they all prefer the use of original parts. Although MSOs continue to be an industry trend, the manufacturers’ requirements for certification are exactly the same for independent shops and MSOs. When it comes to consumer awareness, each OEM does its best to teach consumers that they can choose the shop that repairs their vehicle, and they all deliver messages about the benefit of going to a certified facility. Wayne noted, “We want to add the right shops to our program, and we try to drive consumers to our certified shops so their vehicle is repaired properly the first time. In 60% of re-repairs, the customer switches cars within 12 months, and 62% of them change brands. We don’t want to lose customers due to a poor repair.”

The OEMs determine their coverage needs for any given area based on the number of their vehicles driven in that area, and while the manufacturers’ certification requires that the shop possess the tools and information for

proper procedures, Clark reminded attendees that it is ultimately up to the shop to adhere to those guides and perform the repair properly and safely.

Summarizing the OEMs’ goal in certifying shops, Mandl said, “We are trying to set standards in the industry with the consumer at the center because we want to make sure their vehicle has been repaired properly. OEs, shops and insurers have the same customer, and we all want to do right by the consumer.

Certification is a great way to do that.”

From 12:30–2PM, “2020 - The Future of Staffing: Where Will You Be?” was presented by Mike Lanza of Sherwin-Williams as he used analysis, statistics and trends to forecast the next few years and discussed how to attract, train and retain the industry’s best employees. In the demo area, Michael Finazzo from Absolute Perfection Media discussed “Shifting Your Online Marketing into High Gear for 2017;” an encore presentation was scheduled on Sunday morning.

On Saturday afternoon, Collision Hub’s Kristen Felder moderated AASP/NJ’s Path to Certification: Tooling and Equipment Considerations, a panel which included David Gruskos from Reliable Automotive Equipment, Frank Ponte of Car-O-Liner, and Prospot’s Ron Olsson. These tool company representatives described the extensive research and testing that OEs do before certifying a tool, and they also stressed the importance of following OEM procedures in order to safely restore a vehicle to its pre-loss condition.

Gruskos explained, “The OEM has a financial interest in ensuring a proper repair. Certain procedures require specialized equipment, and the manufacturers want to develop a list that’s economically feasible for the shop, but the safety of the consumer and the technician is the most important consideration. A lot is driven by safety—do it right or don’t do it at all!”

Ponte added, “The manufacturers test and retest the equipment to ensure it performs to the expected standards.

They know they are asking shops to make an investment so they want it to be a good, long-term investment with ROI, and they also verify that the necessary product support is available.”

The panel discussed the variety of challenges posed by advancing technology and the multitude of metals and alloys. Olsson noted, “We try to build the best possible equipment to accommodate the different metals, and the quality of the equipment you buy becomes ob-

24 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

vious through use. It’s imperative that the technicians learn how to use the equipment; you have to commit to training and knowing what you’re doing.”

Additional topics included maintaining the equipment, the importance of training and education, and the need for each shop to evaluate its own business needs. Ponte urged shop owners to do their research before purchasing equipment to be confident they’re making a wise investment: “Your responsibility is to find out what you actually need based on OEM requirements and the vehicles you repair. You should be prepared to buy the best. I’ve never had a customer complain about buying the best, but if you base your decision on price, you may regret it down the road.”

Felder left the audience with an important reminder: “There will be some vehicles you can’t repair, not because you don’t have the skills, but because you simply cannot afford every [necessary] piece of equipment... Even if you’re not interested in OEM certification, you still need to make sure you’re using the right equipment if you’re repairing that brand.”

On Saturday afternoon, Peter Fryzel and Michael Bonsanto shared information on I-CAR’s joining process

training in “I-CAR Certification and Technical Hour.” During Larry Montanez’s “Take Back Your Business from the Rekey Process,” Montanez took a moment to honor his friend and industry legend, James Moy, as he presented Barry Roopnarine with AASP/NJ’s first annual James Moy Memorial Award for Dedication to the Automotive Repair Industry.

The penultimate educational session on Saturday was AASP/NJ’s Path to Certification: The OEM Perspective (Luxury Brands) which was again moderated by the Assured Performance Network’s Aaron Clark. Audi’s Mark Allen and Benito Cid of Mercedes-Benz participated in this panel, discussing their tool and training requirements as well as the need to be sponsored by a dealership to be considered for certification and the costs of enrolling in the program.

Talking about how OEM certification impacts shops’ relationships with insurers, Cid pointed out that it’s important to stay updated since repair procedures change constantly, and he encouraged the education of insurance appraisers so they can understand why shops ask for certain items. “It’s actually the repair procedure that needs to See Northeast, Page 45

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Shop Strategies

Stacey Phillips is a freelance writer and editor for the automotive industry.

She has 20 years of experience writing for a variety of publications.

She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

OK Body Shop Owner Paints High-Profile Vehicles for Television Series While Running Collision Repair Business In Edmond, Oklahoma, Dave Foster recalls growing up in the 1990s during the mini truck era, learning about vehicles while shaving door handles and disassembling trucks. The owner of Foster Auto Body specializes in collision repair and custom paint jobs. He is known for the work he has done on

the Street Outlaws television series, which gives an insider’s look at street racing. Autobody News talked to the body shop owner, who refers to himself as a one-man show.

What is it like to work on your Q: own and what is your main area of focus?

Foster worked on Varley’s 1980 Ford Mustang, “The Gold Car” for the Street Outlaws series

I come in, turn on my A: music and go to work. I do everything… talk to cus-

tomers, write estimates, body work/paint the cars, wash the cars, sweep the floor, etc.

I mainly focus on collision repair. That’s where you make the most money. However, I also focus on custom paint (candy, airbrush art, etc.). I build all kinds of show cars from low riders to classics. I also work on custom motorcycles. Over the years, I’ve done

26 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

just about everything—I’ve painted boats, a couple of party buses—even some airplane parts!

I noticed that you have a large Facebook following. What do you attribute that to and how does it benefit your business?

Q:

I have over 11,000 folA: lowers on my shop’s Facebook page. It really blew

asked about doing all the paint and body work on the new car he was building, a Chevy Nova named Goliath. He brought the car to my shop and I went to work on it. He shared my shop page on the “Daddy Dave” Facebook page, which also helped my Facebook following.

up after working on the cars for the Street Outlaws television series on the Discovery channel. I think I had less than 200 likes when I first met with Daddy Dave’s Chevy Nova named Goliath 1.0 I do get a lot of work from social Varley (aka Wayne D. Varley), a racing legend in Oklahoma City. Varley media. It’s nice because people can acasked me to work on his 1980 Ford tually see some of your work and read Mustang, “The Gold Car.” After that, your reviews to get a feel for the shop he shared my shop page on “The Gold before they call.

Car” Facebook page.

On an interview you had with A few months later, I met with Mean Streets earlier this year Daddy Dave (aka David Comstock), the show’s reigning “King of the Streets.” He you talked about “The Gold Car.” Can

Q:

you tell us about this vehicle featured on “Street Outlaws?”

I painted the car with House of A: Kolor Goldmine and a pagan candy clear over it. I had an old hood

in the shop that I used as a test panel for our ideas until we found something that Wayne “Varley” liked. We ultimately decided to airbrush fire on the hood of the car. The day I painted it, I put in a 24-hour day. I was in the paint booth for 12 hours.

Was Street Outlaws filmed at Q: your shop?

My shop was featured on the A: show in 2015 during season 6, episode 5. The episode was called

“Daddy Dave and Goliath VS the 405.” They filmed here in the shop when Dave was coming to pick up his vehicle—Goliath—from my shop.

Unfortunately, the car got totaled a few months later in a drag race in Amarillo. After Dave had recuperated, he found another car and we went to work to build Goliath 2.0.

How did you get started in the Q: industry?

I always enjoyed sketching. I After being in business nearly A: Q: remember drawing on the back seven years, what advice can of my homework pages at school. you share with others just starting out

When I was 18, I landed my first job at a small body shop named Custom Colors in Choctaw, Oklahoma. I worked there for Donnie Dukes as a painter’s helper and swept the floors and cleaned

in the industry?

A:

The advice I would give from my experience is that you have to really want it because it’s survival of the fittest. Never give up! If you get knocked down nine times, get up 10 times. I’ve put in some long nights, especially when I first started out in the business. I remember only taking time off during Thanksgiving and Christmas.

I also didn’t have good credit when I started so I had to work extra hard to make it happen Foster also worked on the “Terror Nova” for Goteebo Racing without any help from a bank. the shop. I learned a lot from Donnie Now I work seven days a week, but I who is now retired. He is knowledgelove what I do. able when it comes to auto body work.

What I enjoy most is taking someAfter that, I worked for several differthing wrecked and making it look new ent shops in the Oklahoma City area again or taking something old and rusty including Bodyworks, Fox Collision, and then finding out it has received an OKC Auto Works and Flair. award during a car show. I love a chalI opened my shop in 2010 and lenge. I’m that guy when people say it work alone for the most part. I’ve tried can’t be done, I do it. to hire a few people over the years and For more information, contact it has just never really worked out. I 405-239-0499 or visit facebook.com think I just do better by myself. /fosterautobody.

Axalta Launches Imron 8460S Clearcoat for Commercial Transportation Market

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Northeast News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

American Honda Hosts Two ProFirst Training Seminars at NORTHEAST 2017 with Chasidy Rae Sisk

During AASP/NJ’s 40th Annual NORTHEAST Conference and Tradeshow, American Honda held two unique educational opportunities for the shops on their ProFirst certification program. The first, held Saturday from 8-10AM, was “Honda Technology and Emerging Industry Trends,” presented by American Honda’s Chris Tobie and Susanna Gotsch of CCC In-

Susanna Gotsch of CCC Information Services

formation Services. Sunday morning’s Honda OEM panel discussion, “Information for Innovation,” was co-hosted by Axalta Coating Systems and was mediated by Axalta’s Livia Guarneri. The panel included Gotsch, Collision Advice’s Mike Anderson, Andy MacDonald from VeriFacts, Caliber Collision’s Jeff Brewer, and from American Honda: Leigh Guarnieri and Gary Ledoux.

On Saturday morning, the room filled with ProFirst shops who indulged in the breakfast burritos provided by American Honda as Gary Ledoux, ProFirst Administrator, welcomed attendees. Noting American Honda’s goal to bring value to their certified shops, Ledoux announced that the OE is in the process of revamping its ProFirst logo to assist with brand recognition and that they will also be providing a short advertisement that certified shops can personalize and use as a marketing tool. He stated, “We have 975 certified shops, and our goal is 1200. About 50% of the shops that apply for certification don’t make it, so you all are the elite!”

American Honda’s Chris Tobie then began the “Honda Technology” session with a Honda and Acura body repair update. Mentioning that Honda vehicles’ body structures have seen some minor model changes and alterations in the locations of the ultra high-strength steel used, he warned,

“Looks can be deceiving. You need to look at the OEM specifications for the specific model you are repairing, or you may unknowingly repair the vehicle unsafely. You always have to go to the information to know what you’re working with because it’s not possible to memorize all of this.”

Looking at the 2017 CR-V, Tobie noted it’s a completely different car as it has a front floor center tunnel with 1500 MPa rear frame rails. While shops have to follow manual procedures, specific areas of the rear frame can be sectioned.

Tobie then turned to the 2017 Clarity fuel cell which has all bolt-on exterior panels and front bumper beams constructed of aluminum which was driven by safety regulations and fuel efficiency requirements. The 980 MPa front frame rails and center floor tunnel permit no sectioning, and the laser brazed roof panel is serviced by boltedon brackets and a panel bond adhesive.

It also comes with Honda’s standard sensing suite of advanced driver assistance technology. Tobie hinted, “These are things you’re likely to see more in the future, so you should start thinking about the tools you’ll need if you aren’t already prepared.”

Chris Tobie of American Honda

Tobie informed attendees that 95% of Honda and Acura questions can be answered with published information and encouraged shops to call Honda’s technology line whenever they need support. He pointed out, “Every improper repair begins with the best intentions and a lack of information. You don’t know what you don’t know.”

Honda’s new diagnostic scanning and calibration position statement applies to all Honda and Acura models. It

28 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

requires pre and post repair diagnostic scans and provides the background, reasons and guidelines for these requirements to explain how to do it, why and how to get paid. The OE’s Warranty Paint Refinish Requirements

Gary Ledoux of American Honda

Service Bulletin announced the need to use approved paint vendors and specific lines with many requiring hardener in the basecoat to meet Honda’s standards. Tobie encouraged the audience to utilize their Body Repair News Publications for free industry support: “They don’t replace the manual, but they highlight things that can trip you up. Use them for repair planning - it all

starts at the estimate.”

After mentioning I-CAR’s Hands on Mig Brazing Course (BRZ02), Tobie demonstrated how to access the Service Express information from the ProFirst website, and he discussed some of the diagnostic tools that are useful for repairing Honda vehicles.

He closed with “Even if you can’t be a ProFirst shop, this information is available to aid safe repairs. There aren’t enough ProFirst shops to repair all our vehicles, but Honda provides the resources, and it’s up to the shop to market itself as ProFirst.”

Moving on to the “Industry Trends” portion of the morning, Susanna Gotsch, Industry Analyst for CCC Information Services, began by noting that miles driven, collision frequency, and collision severity (average cost) have all increased over the past few quarters. Data compiled by the National Safety Council indicates that more people are driving during peak time and in congested areas,

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 29

and as a result, an increasing number of vehicles are being equipped with safety features.

Each year since 2013, the population of vehicles in the US has grown by an average of 2% so more people are driving, and there are more cars on the road. Additionally, higher speed limits have resulted in an 8% increase in fatality rates on interstates and highways for every 5mph increase. People are also distracted with 40-50% of surveyed drivers admitting to texting while behind the wheel.

Vehicle sales show continued growth which is setting records, though growth has begun to stabilize. The average age of vehicles in the US is 11 years old with more owners of each vehicle and an increasing demand for used cars.

This means insurance companies have to pay the value of the vehicle more often as repair costs are more likely to exceed the value. Historically, 15% of vehicles were totaled, and this number has increased to closer to 20% for non-comprehensive claims. Gotsch noted, “More older vehicles mean more total losses, and this translates to fewer repairs.”

Gotsch explained how estimates are uploaded to CCC and how this information is disseminated to insurance companies as well as the difference between how CCC and insurers use this data and apply it to scorecards. She predicted, “The industry is shifting towards a more holistic view of performance.”

Claim costs are rising steadily with repair costs for newer vehicles increasing the fastest; the average repair cost rose 4.5% last year. Assuming similar shifts, Gotsch anticipates a 2.6% increase in 2017. She discussed the distribution of repair costs, noting an increase in labor hours, labor rates and calibration costs. Technological advances have led to repair complexities and newer vehicles require more replacement parts than in the past.

“Due to complexity, cycle time has also increased by nearly half a day industrywide for the actual repair, but pre and post repair days remain stable,” Gotsch said. Noting OEs’ increase in safety components, Gotsch predicted, “Frequency will begin to taper due to safety features, and we anticipate a 12% reduction with 80% penetration by 2033.

With vehicles becoming more complex and more miles being driven, we can expect an increase in repair costs and total loss frequency to remain elevated.”

At Sunday morning’s “Information for Innovation” OEM panel, cohosted by American Honda and Axalta Coating Systems, Ledoux introduced the event moderator, Livia Guarnieri from Axalta, and the panel of experts which included Gotsch, Collision Advice’s Mike Anderson, Andy MacDonald of VeriFacts and Caliber Collision’s Jeff Brewer, while Leigh Guarnieri and Ledoux represented Honda.

The discussion began with an exploration of how autonomous cars will impact the collision repair industry.

The panel agreed that autonomous technology is exciting and should be embraced by the industry, but they also noted that it’s not an immediate concern since they need to work out details such as improving GPS accuracy and determining when the driver needs to take control of the vehicle.

Mentioning the rising number of fatalities, Anderson informed attendees that OEMs’ current focus is on collision avoidance systems. In regard to avoidance systems, it will be necessary for shops to acquire the training and equipment needed. Leigh predicted, “Shops will need to become more mechanical. All of these vehicles can’t be taken to the dealers, so shops will need to learn how to use repair information as it’s made available.”

Discussions about the future of vehicle ownership turned to ride sharing and the importance of shops managing

Learn How to Crush It in the Collision Repair Industry With Newly-Released Book

Discover the six secrets used by America’s greatest body shops in a newly-released book written by Dave Luehr and Stacey Phillips: The Secrets of America’s Greatest Body Shops. Throughout the book, the authors share insightful lessons along with real-world stories of actual collision repairers who have discovered the secrets that have propelled them to a much higher level than their competitors. Both Luehr and Phillips

are regular contributors to Autobody News magazine.

Luehr and Phillips encourage shops to join the Body Shop Secrets community, where they will receive ongoing resources, helpful tips and other information specifically designed to keep collision repair businesses highly successful. More information is available on the Body Shop Secrets website: www.bodyshopsecrets.com.

30 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

online reviews. Brewer observed, “Technological changes make repairs more challenging, and the universal repair approach is in its dying days.

Shops need to focus on technology and the customer. First and foremost for the OEs is protecting the customer experience, and we are likely to see a lot of segmentation in the near future.

The primary reason for certification is access to information to ensure we’re repairing these cars correctly, the car has to go to the right place for the right reasons, and certification helps define that.”

Livia added, “The way the vehicle is repaired, based on the information available to the shops, is ultimately what drives lifetime customer loyalty.”

Returning to the topic of collision mitigation systems, the panel was asked if the vehicle owner is responsible for insuring the car or if it’s the manufacturer’s responsibility to insure the technology. Gotsch noted that there is still a lot to be determined about who owns the digital copyrights to the electronic control modules data and anticipates a lot more discussion around personal and product liability. MacDonald quipped, “The attorneys will benefit the most until this all gets figured out.”

Talking about recalls, the panel emphasized the shops’ role in helping inform customers of recalled parts and the difficulty for OEMs to locate vehicles with recalled parts given the frequency with which cars are resold.

When the audience was invited to ask the panel questions, topics ranged from the value of OE certification to how certification is managed by MSOs, and the necessity of technicians’ involvement in the process.

OEMs are now holding regular roundtables to discuss the direction the industry is taking and to better serve their customers, and all members of the panel agreed that communication is key. Anderson predicted that OEMs will monitor KPIs more closely to ensure certified shops are performing to their standard, but he insisted that there is a lot of value in OE certification.

Brewer contributed, “You have to have the right training and equipment to safely repair today’s vehicles. Training is the most critical component of certification, and certification is the cornerstone of the relationship between you and the dealer.” MacDonald agreed, adding “Program involvement brings more value and helps improve your shop and your employees’ skills.”

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 31

Day Job/Night Job Zenia Amezquita Is Just Starting to Rev Her Engine with Ed Attanasio

Five days a week and sometimes on Saturdays, Zenia Amezquita, 32, works at Cali Style Auto Body in Hemet, CA as the office manager. But when she isn’t processing claims and meeting with customers, she spends much of her free time pursuing her passion for car racing. She loves working on her family’s shop, but what really gets Zenia going is driving fast in a powerful car. She’s taken it from drift racing to road racing and is also a driving coach at The Porsche Experience in Carson, CA. Cali Style Auto Body was started

by Zenia’s father, Javier, in 1997, so the collision industry has been in her life as long as she can remember. “I tell people I was born in it,” Amezquita said. “I was helping my father doing side jobs when I was 10. I remember him handing me sand paper to keep me busy and entertained. I had my Quinceañera here at the shop and now I work here with my mother and father and my brother, so it’s nice.”

Zenia operates the front office at Cali Style Auto Body, but she isn’t afraid to jump in and get dirty if needed. “I have zero problems getting in there and if everyone else is busy, I will tear down a car,” she said. “My

Originally an amateur drifting racer, now Zenia Amezquita is all-in when it comes to road racing

mother even tears down cars, so we’re not afraid to do whatever it takes to get the job done. In a small shop, everyone has to contribute. We’ve realized after all these years that working together is the only way it’s going to work and it’s

32 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

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

really nice. Some people find it hard to believe that a family can work well together every day, but we love it. We have breakfast and lunch together every day and I value the time that I get to spend with my family here at the shop.”

Zenia couldn’t wait to start driving when the time came. “I got my driver’s license at age 15, before the California law changed to 16,” she said. “My first car was a 1997 Honda Civic that my father bought from an auction and we worked on it together.

It needed a new front end and we painted it and he sent me on my way.

I didn’t know how to drive stick shift, but he told me I’d figure it out.”

Zenia started racing as soon as she could, but it wasn’t exactly the legal kind. “My brother Francisco is two years older than me, so he was already street racing when I was 14, so I would tag along, “ she said. “So when I got my car, I thought, ‘Wow, I can street

race now.’ That’s how it started, racing with my brother and his friends.”

Zenia isn’t proud of that period in her life, but she wouldn’t change it for anything either. “I admit that we did some racing in some places where it was very illegal” she said. “I was a wild child back then and as a result, I did get a lot of tickets, but I haven’t gotten one in a long, long time. I’m a very safe driver now; I drive real slow.

Kids go speeding past my house now and I yell at them-’Slow down!’ So it’s funny how much my life has changed.”

To pursue a new rush (and avoid more tickets), Zenia found drift racing, or maybe it found her. “I had no idea what drifting was, but when I discovered it, I loved it,” she said. “I got my drifting vehicle back in 2003 and I still use it today. It’s a 1985 Toyota Corolla and perfect for drifting. It looks crazy and chaotic while I’m out there, but it’s actually very safe when you compare it to other types of racing. A drifter has

never been killed during an event.”

If you’re not familiar with drifting, it’s a driving technique where the driver intentionally oversteers, loses traction in the rear wheels or all tires, and does it all while maintaining control and driving the car through the entirety of a corner. Drifting competitions were first popularized in the 1970s in Japan and today they are held worldwide and judged according to the speed, angle, showmanship and the line taken through a corner or set of corners, according to www.everything drift.com.

As an amateur drifter, Zenia kept busy competing in a lot of amateur

of Porsche Motorsport North America. “I am a driving coach, for people who want to try the newer Porsches and learn about what the car can do and how it handles—it’s pretty neat. The other day, one of my students was the actress By leveraging her racing experience, Zenia now coaches Lisa Kudrow (Friends) and it people how to drive Porsches at the Porsche Experience was pretty exciting. It’s a Center in Los Angeles, CA great gig!”

In addition, Zenia is events throughout California. “I have been doing this for 14 years, so I have working in the Ford Driving School probably been in 140 competitions at for Life program in southern Califorplaces like Thunder Hill and Angels nia, where she helps young drivers to Stadium in Anaheim,” she said. “My be safe and better drivers. “It’s funny best finish was 16th out of a field of 54, because I used to race illegally mybut for the last three years, I self and now I am showing these kids have been focusing more on how to be safe and make smart decisions on the road. Wow, my life has road racing rather than drifting. In every race I’m in, I am changed a lot, and it’s all for the betusually the only woman and ter.”

Still single, Zenia said she’s marsome people look twice when they see me out there, but ried to racing at least for now. She loves working with her family at the they’re always very nice.”

Most recently, Zenia has shop and hopes to become a profestaken her passion for race sional racer in road racing. “My father driving to another level by will probably be retiring at some point, landing a coveted job at the so my brother and I have discussed takZenia is the office manager at Cali Style Auto Body in ing it over,” she said. “And I want to The Porsche Experience CenHemet, CA where she works with her family every day. get a seat in professional road racing, ter, a 53-acre venue in Carson, (l to r) her brother, Francisco; her father, Javier; Zenia and her mother, Angelica CA that is also the new home because that is my ultimate goal.”

Apply for Auto Care Internship Scholarships by May 1

Applications for the Auto Care Careers Internship Scholarship program are due by May 1, 2017. The scholarships provide financial support for students that have secured an internship in the auto care industry.

Auto Care Careers Internship Scholarships are valued up to $2,500 and are intended for those enrolled in internship programs with direct application to the auto care industry and working in fields such as engineering, supply chain management, information technology, finance, sales and marketing, and other business functions. The scholarships help ease the financial burden of temporary relocation for interns traveling more than 100 miles from their permanent address to the internship, including the costs of travel, lodging, utilities and meals during the internship period.

To apply for one of the 22 available Auto Care Careers Internship Scholarships, interns should visit the “Get Started” section of the AutoCareCareers.org website.

For information about careers and internships in the auto care industry, visit www.autocarecareers.org or contact Katy McQuiston at katy .mcquiston@autocare.org.

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 35

Do You Have the Next Great Body Shop Invention?

by Ed Attanasio

A body shop owner invents some ingenious software that can make estimators’ lives easier. A former tech develops equipment that can help technicians to work more efficiently.

Brad Weschler, the owner of WeschTools, is the inventor of numerous collision tools, including four currently in development

The son of body shop owner develops an app that goes viral. We read stories like these all the time and they’re always inspiring. Collision professionals who think outside of the box and are willing to chase their dreams have created tools that many body shops use today.

But for every brilliant invention that comes out of the collision repair industry, how many other great ones are left sitting on desks or buried in filing cabinets? And if you think your idea is the “next best thing,” how can you patent it and get it to market without someone stealing it from you or wiping you out financially as you try to develop it?

To find out the ins and outs of patenting and manufacturing collision repair tools, we interviewed Brad Weschler, the founder of WeschTools of Baiting Hollow, NY. While the owner of a small body shop, Weschler’s ideas became sketches, drawings and eventually prototypes before taking each one through the arduous patenting process.

Today, Weschler’s line of auto body repair clamps, chains, hooks and other frame straightening equipment is sold online at CollisionClamps.com and used in over 18,000 body shops worldwide.

The inspiration for any invention can come around anytime or any-

where, Weschler explained. “My first product idea for WeschTools was the Quick Stick that came to me while I was in bed in 1996, so I got up immediately and wrote it down,” he said. “I knew when I woke up, it would be fresh in my mind, and it was. Over a period of time, I came up with new ideas to make the Quick Stick even better. I knew then that I had something special and felt it was important to protect the idea until I could figure out my next steps. But it took two years to develop it and test it and then another two years to get it patented.”

To immediately protect himself and his idea, Weschler did what is known as a “poor man’s patent.” “I knew I had to prove that I was the first with this idea, so I made copies and put the original drawing and notes into a self-addressed envelope, sealed it, and then sent it to myself,” he said.

“When I got it back, I left it sealed and put it away in a safe location. The postmark proves the date of my idea, like a time stamp.”

Now it was time for Weschler to find a good patent attorney, and luckily he found one with an engineering degree who had spent five years in Washington D.C. working as a patent examiner inside the department of patents and trademarks.

$15,000 for that first patent. Over time and with continued product development, I received an additional seven patents covering this single product which increased the cost by an additional $25,000.”

Once you get your official patent number (upper right) you can start making your product and changing the collision industry one tool at a time

After everything is submitted, it’s a long waiting game, Weschler ex-

plained. “Once my application has been filed at the patent and trademark office in Washington D.C., my product is declared “patent pending” and secured with a patent serial number.

Patent pending allowed me to move to immediate manufacturing, marketing and selling my first of many products.

In my case, I received some great advice and suggestions that I applied to the product which improved on my original idea. In my case, with no additional disputes or conflicts, I was granted my first of 13 patents.”

Now the successful inventor of numerous collision tools and with four more currently in development, was all of the hard work worth it, we asked Weschler? “Absolutely, because I have the satisfaction of knowing that I invented a patented product [that is] unique and unlike anything else out there,” he said. “I’m proud to know that this product will save my fellow body collision shop owners’ time and money while increasing profits. That first patent provided me the template that made future patent applications easier and less stressful, and that alSee Body Shop Invention?, Page 44

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After many years of hard work and patience, Weschler finally received his formal patent document

“My attorney first sent me a full disclosure form to complete and return to him as soon as possible to protect me from potential theft of my idea,” Weschler said. “His initial fee was $1,200 to begin the search process to find out if other patented products that resembled mine in any way existed. In the end, it cost me

36 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Charles Luera, Parts Manager cluera@greeleysubaru.com 4720 W. 24th St. // Greeley, CO 80634

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 37

An Introduction to WIN’s 2017 MIW Honorees

by Chasidy Rae Sisk

The Women’s Industry Network (WIN®) introduced its 2017 Most Influential Women (MIW) honorees on March 3. This award is designed to recognize women whose leadership, vision and commitment to excellence have enriched the collision repair industry. This year’s honorees, to be recognized at WIN’s MIW Gala and Awards ceremony during the association’s May conference in Denver, are Cristina Fronzaglia-Murray, Manager of Marketing Communications for PPG’s Automotive Refinish Division; Renee Ricciotti, Sales and Marketing Manager for 3M Automotive Aftermarket; and Elizabeth Stein, Vice President of Business Development and Marketing for the Assured Performance Network.

WIN Chair Petra Schroeder stated, “Having been with WIN since its inception in 2006, it is wonderful to see firsthand how the MIW program has evolved and grown and how perfectly it aligns with WIN’s mission to ‘enhance the role of women in the industry.’ Every year, I am truly amazed by the diversity of every nominee’s talent and industry involvement. It is my honor to extend heartfelt congratulations to Cristina, Renee and Liz for winning this prestigious award.”

This year’s three honorees graciously agreed to take time from their hectic schedules to chat with Autobody News about some of their accomplishments and what this award means to them. Words like “shocked,” “humbled,” and “respected” were reiterated throughout each interview.

Fronzaglia-Murray had no thoughts of the collision repair industry 23 years ago when, as a recent college graduate, she started working for PPG as a light industrial sales representative in a newly emerging segment for PPG. A decade later, she began working more directly in the automotive refinish division and ultimately took over the communications side of the business, becoming more directly involved with the collision repair industry. Fronzaglia-Murray observed, “There are so many opportunities in this industry – it’s been an awesome ride the whole time!”

Feeling fortunate to work in different roles at PPG, including being the Director of Communications and Marketing, Fronzaglia-Murray has also been afforded the opportunity to host

PPG’s SEMA booth each year, and she won a SEMA award for her groundbreaking work—the Athena Champion award—in 2014. Fronzaglia-Murray also sits on PPG’s diversity committee, and she has assumed a mentorship role at PPG. “I get to do the most fun job at PPG every day,” she explained. “And it provides more opportunities to be seen and heard in this field.”

Ricciotti had no intention of entering the automotive industry either. Her father worked for 3M, but as she was interested in sales and marketing, she worked at the Four Seasons Hotel after college until she interviewed for 3M’s automotive aftermarket department in 1994. Ricciotti confessed, “I knew nothing about vehicles. The only thing I knew was that I liked expensive cars.”

Things have definitely changed since then. Ricciotti is proud to have been the first female in many of her roles within 3M, including marketing, business development, and sales leadership positions. Being the first female sales manager at the 100-year-old company is one great example of how Ricciotti has made history within the organization. She was also selected as 3M’s Business Leader to Villanova, representing the company as they recruit positions and serving as a mentor.

Ricciotti was previously a board member for the Collision Repair Education Foundation (CREF), and she currently serves on the National Auto Body Council’s (NABC) board and executive committee.

Like her peers, Stein ended up in the industry by accident. She began her career as an entertainment publicist, but finding that industry to be inauthentic, she interviewed for a marketing manager position at Fix Auto in 2003. Stein recalled, “Something just clicked, and I fell in love with it. The people in the collision repair industry are some of the most sincere, hard-working people there are.”

For nearly nine years, Stein worked for Fix Auto, learning as she went and jumping in as needed until she earned the position of Director of Marketing and Membership, and eventually, she helped the company divide into two organizations. In 2011, Scott Biggs, CEO of the

38 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Assured Performance Network, aploted the program with 25 vehicles. proached Stein and offered her a job as The organization just facilitated the Executive Director, promoting her to 1400th vehicle donation through RecyVice President of Industry Relations cled Rides, and Stein expressed admiwithin two years. ration for how far the program has According to Stein, “I get to work come despite being an all-volunteer orwith some of the same shops I’d come ganization. to know, and it’s been great for my famFronzaglia-Murray first became ily. Our management team is like family, aware of WIN because she was involved allowing us to be candid with each other. with paying the sponsorship bill for a It’s amazing how much we’ve number of PPG ladies who atgrown through the team aptended the conference. Curious proach, becoming the largest about WIN, she researched the certification network in just organization, and she deterfive years. Certification is mined, “WIN was a wonderful based on criteria that helps reopportunity for females to get move the politics; it’s about more involved in this industry. proper requirements and enI felt we needed to get invested Cristina Fronzagliasuring the consumer’s value in order to become more diMurray and safety. I enjoy helping verse, and it’s great for women consumers find the right shop and helpto receive support and be around people ing shop owners improve their busiwho understand what we’re going nesses. The ability to help change an through.” industry and see that change is just aweWhen she learned that she had some.” been nominated as a MIW, FronzagliaStein has also served on the Murray was shocked. She had sugNABC board for the past nine years, gested that PPG nominate someone after being recruited at 8.5 months and was disappointed that they missed pregnant, and helped build the Recythe deadline and an opportunity to excled Rides guide shortly after they’d pipose a wonderful woman. She recalled,

“I wasn’t looking internally, so I almost “I’ve worked hard, and this award died when WIN informed me that I is part of the legacy I can leave for othwas nominated. I was floored and feel ers in the industry and for my 13-yearso humbled to be placed in the same catold daughter,” Ricciotti shared. “It’s like egory as these women. I’m so proud that I’ve won the big one – this is a huge deal. my work has made a difference and is If I can win this, I can do anything!” being recognized. You don’t really think For Stein, involvement in WIN is about what you’re doing and why until about personal development and besomeone points it out. We women tend coming more knowledgeable about the to hold ourselves to a different stancollision repair industry. She attended dard, but it just becomes a part of who her first conference in 2010 and left you are. It’s great to see the feeling energized and emnumber of bold women compowered. “I got so much from ing into this industry and takthe conference,” she said. ing charge!”

“WIN includes a great group Ricciotti’s first WIN of women who are there to conference was in 2007 after provide kinship and advice.

Stacee Royce recommended People don’t remember what it as a growth opportunity, you say, but they remember Elizabeth Stein and she has attended every how you made them feel, and conference since. Describing her feelI’ll never forget how great I felt after ings about being honored as one of that first conference.”

WIN’s 2017 MIWs, Ricciotti said, “I Stein was amazed when she learned truly feel like a WINner! I’m humbled of her MIW nomination. “We all do to be recognized with past and current things where we don’t realize the posiMIW recipients and grateful that WIN, tive impact we’re making on people’s as an all-volunteer organization, has lives, and when they reach out in apprebeen able to continue this award. I feel ciation, it validates that you’re doing the respected by my peers honoring me right thing. I am so humbled by all the and grateful for 3M’s support. I feel insupport I’ve received, and I am shocked spired, unstoppable and fearless, and I because I didn’t expect this tremendous just can’t stop smiling.” honor. I’ve always looked up to my WIN

predecessors who’ve broken down bar“Everyone is more productive when riers, and we continue to break them you have more than one kind of voice. down for the next generation.”

It’s good for businesses to have multiLooking at the importance of feple perspectives, and it gives us a great males entering the collision repair inadvantage to bring something unique to dustry, Fronzaglia-Murray recounted the table. The collision repair industry her mentor, David Chapman, thwartis truly a great place to be if you want to ing her fears and excuses when she first be unique, but it takes a special indibegan working for him. “I was scared vidual who is comfortable with growth, to talk to the men in the industrial segrapid changes, and a challenging enviment because they had more experience ronment – it’s never boring! This is the and knew so much more, but industry for you if you’re inDave told me, ‘It’ll make you spired and challenged by tougher. I’m not asking you to change.” know what they know – I’m Stein added, “It’s all about looking for a different perwho’s qualified and who is spective because we need that best for the position. I never to grow the business.’ He was want a position I didn’t earn. right; we need different peoBeing a well-rounded busiRenee Ricciotti ple to bring different mindsets ness requires a holistic apbecause if we stick to the same opinproach. Women get that, and we add a ions, none of us grow and flourish. little something because we offer a dif“I had so many excuses, but Dave ferent perspective.” wouldn’t let me fail. He was positive All three MIWs offer similar adand encouraging. You have to thank the vice to young ladies who are interested people who have challenged you along in pursuing a career in the automotive the way. You may do things differently, industry. “Do it!” Fronzaglia-Murray but that doesn’t mean it’s wrong.” encouraged. “It’s a great industry with Ricciotti and Stein both agree that great opportunities and room for diversity of perspective is the most imgrowth. Don’t try to be like anyone portant reason for women to join the auelse – just be the best you and bring tomotive industry. Ricciotti observed, See MIW Honorees, Page 51

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Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Could that 180-line Estimate You Just Wrote be 179 Lines Too Long?

20 years ago in the collision repair industry (May 1997) Rick Tuuri of [estimating system provider] ADP said the company has no plans to change its current system of allowing the user to options to use a clearcoat “cap.” He did say, however, that the wording of the disclaimer printed on estimates calculated using the user-defined maximum value will change.

“We’re changing the term to ‘threshold,’” Tuuri said. “We’re printing on the estimate that the estimate has been calculated using the threshold value, and that further approvals may be required.

In 1997, Rick Tuuri was with ADP, whose estimating system was later sold and evolved in the AudaExplore system today

– As reported in Autobody News.

ADP’s estimating system was later sold, eventually becoming the AudaExplore system used today. Tuuri retired from AudaExplore last year.

15 years ago in the collision repair industry (May 2002) Caliber Collision Center’s Costs Mesa, CA, location was closed for a week by the California Bureau of Automotive Repair (BAR) as part of a settlement agreement reached by Caliber following allegations by the BAR of fraud, gross negligence, faulty record-keeping, and failure to comply with the regulations of the Automotive Repair Act. Caliber, the nation’s largest collision repair consolidator, with 62 shops in California and Texas, has come under increased scrutiny lately since it accepted a financial investment from the Inter-Insurance Exchange, which operates Auto Club insurance in California and Texas. A bill was recently introduced in the California Senate that would make such investment unlawful.

The BAR’s complaint alleged numerous failures to comply with state regulations, including invoicing for parts not actually provided; the use unclear abbreviations on invoices; failure to states clearly if a part was new, used, rebuilt or reconditioned; failure to identify all crash parts used as OEM or non-OEM; failure to obtain a vehicle owner’s permission before repairing the vehicle; and failure to properly annotate a repair order when a change to the original estimate was authorized verbally by a customer.

To settle the complaint, Caliber admitted to the truth of all the charges except for the fraud allegations, which it denied. The company agreed to pay the BAR $8,000 as partial cost recovery for the investigation, close its Costa Mesa shop for five days, and prominently post a sign indicating the reason for suspension. The shop will remain on probation for three years, subject to random inspections by BAR personnel.

– As reported in Autobody News.

Caliber remains the largest U.S. consolidator, with more than 400 shops in 18 states. The California legislation to prohibit insurer-owned shops was not passed, but similar legislation was enacted in Texas, leading the Inter-Insurance Exchange to sell off its interest in Caliber.

10 years ago in the collision repair industry (May 2007) Could that 180-line estimate you just wrote be 179 lines too long?

During a recent Collision Industry Conference (CIC) held in Atlanta, one participant at the meeting posed this question to insurers: Could you accept an estimate that didn’t include the line-by-line breakdown but instead just the total repair cost?

Scott Biggs, CEO of the Assured Performance Network of collision repair shops, said decades ago, estimates were as simple as, “Fix car, $300.”

“Now you have 180 lines and insurers saying, ‘No, we don’t pay for that, and we need to cap this,’” Biggs said. “What if repairers stopped itemizing the estimate? Just think abut it for a minute. It doesn’t matter how you got to that number at the bottom. You

40 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

can use whatever means. But how do you debate when there are no lines?

How do you argue about the door rate when there are no lines?”

George Avery, a claims consultant with State Farm, said there are several factors that can necessitate the need for more detail on estimates. Some states, most notably California, have strict guidelines for what must be specified on the estimate for the consumer.

But Avery said that given that nearly two-thirds of estimates for State Farm work are written by shops in the company’s Service First / Select Service programs, there could be potentially less need for a detailed estimate up-front if other such obligations could be met.

“It could be as simple as the repairer saying, ‘I just want to let you know I have this car here. There are no issues associated with appearance allowance, betterment or depreciation, and I don’t have any recycled or af-

termarket parts on this car,’” Avery said. “I could be in a position where I would say, go ahead. You’re going to have an obligation eventually in your final repair bill to explain what you did to the car. So I think this is one of those things that we could talk about.”

Roger Wright, manager of material damage and direct repair programs for AIG, said he had virtually such a program in place a dozen years ago when he was with another insurance company.

“I built a partnership with a collision repair shop group and I said, ‘Fix the car and send me a bill, and fix the car like you are fixing it for your mother using your money,’” Wright said. “I felt very comfortable with that, and it worked great. Now we had some arm’s length auditing to manage it. And we had some outliers who wouldn’t behave well. But I didn’t have to have 100 people on the street; I only had to have 12.”

See 179 Lines Too Long?, Page 48

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Shop Showcase Everything’s Algood at Mike’s Auto Body in Antioch, CA with Ed Attanasio

When Lorenzo Algood recently became the second member of his family to graduate from the Mike’s Auto Body Metal Tech Training Program, it made the celebration a family affair.

This is the second class to graduate from the intensive five-month course at Mike’s Auto Body’s training facility in Antioch, CA. With three generations of body technicians spanning a century in the collision repair industry, the Algood family is all-in when it comes to fix-

ing at the corporate Concord location for Mike’s and I began working with a few trainees there,” Lupe said. “Dave Wedding and Dane Dearlove approached me and asked me if I was interested in being an instructor for the company’s training program and I said yes. I was already an I-CAR instructor and I enjoy teaching, so it was an easy decision.”

Lupe’s father is a retired body technician and hopefully soon, Lupe Jr., age 16, might be entering the in-

Mike’s Auto Body’s second in-house graduating class produced four new collision professionals, including Lorenzo Algood, (third from right), whose father Lupe (second from right) is one of the program's instructors

ing cars. Lupe Algood, 40, has been a body technician at Mike’s Auto Body for the past five years and is also an instructor for the company’s in-house training program that kicked off in 2016 and is already considered a success.

In addition, Lupe’s two sons, Ronnie and Lorenzo, are now entering the collision repair industry and onboard with Mike’s Auto Body. Ronnie recently graduated from the company’s training program and Lorenzo is currently enrolled.

Lupe Algood is a proud father, a passionate teacher and a highlyskilled metal technician who still repairs vehicles when he isn’t teaching or mentoring the collision professionals of the future.

How did he become an instructor for Mike’s Auto Body? “I was work-

dustry as well. “I tell young people that if they learn their skills and are dedicated to this craft, they can have long, lucrative careers in collision repair. There is a huge demand for technicians right now, so get your training and the jobs will be there.”

Lupe’s son Ronnie is one of the program’s first graduates and is delighted to be working in the collision repair industry as a fledgling metal technician for Mike’s Auto Body. “It is a great opportunity for me and it’s an awesome time to be in this industry,” Ronnie said. “My goal is to become a journeyman within 18 months or so. I know I can do it, because I have a lot of support here at Mike’s Auto Body and they want me to succeed.”

In order to complete this comprehensive training program, students re-

42 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

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

ceive classroom instruction along with performing hands-on repairs of metal, plastic, panel removal and vehicle construction on salvaged vehicles at the company’s ADAC facility in Antioch, CA. Students are trained in vehicle disassembly, panel repair, plastic welding, frame and instructional analysis and welded panel removal. In addition, upon graduation, the students will have already achieved I-CAR Training Pro Level 1 and will be fully Car-OLiner certified.

David Wedding, a business development manager at Mike’s Auto Body, who oversees the training program and teaches classes as well, is happy to announce that the first program’s graduates are working at Mike’s Auto Body’s various locations under the tutelage of mentors that have been carefully selected.

“We can already see that this program is going to benefit the company in many ways, and Ronnie Algood is a

good example of that,” Wedding said.

“He is currently working at our Richmond location and getting better by learning new skills and working with several of our more veteran technicians. Now, Lupe’s other son Lorenzo is in our training program and [is] doing well.”

Currently, the second training class, including Lorenzo Algood, is progressing well and those students will be graduating early next year with the third class entering in the spring of 2017.

If you know someone or have a member of your family that might be interested in pursuing a career in collision repair either as a tech or an estimator for Mike’s Auto Body, contact the Program at internship@mikesauto body.com.

Further information about the training program and an online application is available at www.mikesautobody .com/metaltechnicianinternship.

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 43

News From Collision Repair Education Foundation Collision Students’ Tuition Debt Erased through CREF’s Lon Baudoux Legacy Scholarship Fund Destiny Potter, a 2016 Lon Baudoux Legacy $2,000 Scholarship recipient, attended the recent I-CAR Volunteer & Instructor Conference in San Diego to highlight how significantly financial support has assisted in her technical education. At the end of her presentation, Potter was surprised with the announcement that to recognize her continued efforts in gaining part-time industry employment while finishing her remaining year at Lincoln College of Technology in Indianapolis, her 2017 student debt would

be “erased” through the Baudoux Legacy fund. In total, over $10,000 in student debt will be paid for Potter, who is on track to graduate from Lincoln Tech this October.

Potter, currently employed parttime with ABRA Auto Body & Glass, noted, “Being on stage in front of hundreds of people and to talk about the Lon Baudox Scholarship I won in 2016 was tremendous enough. But then for the Collision Repair Education Foundation to announce that they were paying my tuition just left me incredibly speechless. This means ‘no debt’ and ‘no stress.’ On a personal note, this also means that I am noticed, I am supported, and I am believed in. Who knew that something like this would happen to me?”

“It’s incredible to see the real impact of the foundation in the lives of individual students,” said Peterson Santos, regional vice president at ABRA Auto Body & Glass. “We are Continued from Page 36

Body Shop Invention?

lowed me to take more of my ideas to fruition.”

For that technician, painter, estimator or body shop owner with a great idea for a tool that can change the industry, what last piece of advice would Weschler offer them? “Invest

honored to have Ms. Potter on our team and are especially grateful for the mentorship ABRA team member Rebecca Stultz has provided her throughout her journey. Ms. Potter’s future is bright and we are certain she will enjoy a long and successful career in the industry.”

Nationwide Insurance Awards $50,000 to Six Collision School Grants CREF has announced that Nationwide Insurance has made a $50,000 donation to assist the Education Foundation’s support of high school and college collision school programs across the country through school grants.

Six schools were supported through these Nationwide school grants. The schools applied for the Education Foundation’s 2016 Ultimate Collision Education Makeover school grant and these funds will help fulfill the schools collision program’s wish list of needed tools, equipment, and supplies. The Nationwide Insurance school grant recipients include: ■

■ ■

■

(Wilmington, NC)

“Nationwide recognizes the growing need for highly trained repair technicians,” said Patrick Burnett, Associate Vice President of Claims at Nationwide.

“That’s why we’re proud to support organizations dedicated to training and developing tomorrow’s collision repair professionals.”

CREF Recognizes 121 Career Programs With Collision School Career Readiness Benchmark CREF announced it has recognized 121 schools with its new designation program called the “Collision School Career Readiness Benchmark,” which was launched in 2016.

Under the new program developed by the Foundation, schools were classified into three tiers: • Tier 1: Advanced, • Tier 2: Proficient, or • Tier 3: Developing.

The designation was determined by the Foundation based upon information provided by schools about the capabil-

Don Carlton ACURA OF TULSA

ities of their program on the Collision Repair Education Makeover grant application.

Last year, due to expanded financial and in-kind support from the industry, every school that completed an application received a grant to help them move to the next Tier or increase their capabilities. The program is currently accepting applications for 2017.

In 2016, nine schools received a Tier 1 designation, 80 schools achieved Tier 2 and 31 schools achieved Tier 3.

Schools are recognized at different levels based upon criteria that focus around the number of hours of instruction and curriculum in place along with the tools, equipment, and supplies a school uses to prepare their students for employment in the collision industry.

Participation in the Makeover grant program provides schools with necessary items to help them advance to higher levels and expand their programs to best serve students and the industry.

The goal is to help every school acquire the resources to eventually achieve a Tier 1: Advanced school designation.

For more information, visit www .collisioneducationfoundation.org.

Don Carlton

HONDA OF TULSA

$25,000 - Eastfield College (Mesquite, TX)

$10,000 - Tidewater Community College (Chesapeake, VA)

$5,000 - Texas State Technical College (Waco, TX) North Idaho College (Coeur d’A lene, ID)

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your time to find the patent attorney that will represent you and your idea in the very best way possible and then trust him. Don’t expect your attorney or others to clearly know the features and benefits the way you do, so take the time to communicate and provide detailed explanations. And maybe most importantly, don’t wait. You never know when that next million dollar idea will present itself.”

44 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

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Northeast

be done to restore the vehicle per manufacturer specifications.”

Neither Audi nor Mercedes-Benz restrict access to information about repairing their vehicles, but they both restrict repairs on certain aluminum structures due to the complexity, and Audi also restricts the repair of certain carbon fiber components. The time it takes to acquire certification varies greatly based on the shop with the OEM representatives reporting ranges from several weeks up to eight months.

Both manufacturers encourage customers to have their vehicles repaired at certified shops and offer a variety of logos and signage to help shops advertise their certification.

Allen noted, “We understand our requirements are different because we manufacture high-end vehicles, but we expect other OEMs to start having similar requirements. We recommend business owners start thinking about it.

Shops must meet our expectations, and sometimes cultural differences mean they just aren’t a good fit for certification.”

Saturday’s conference ended with a brand new presentation by Mike Anderson of Collision Advice: “100% Disassembly and Parts Mirror Matching.” Anderson debuted this seminar to a packed room.

Sunday morning featured educational seminars presented by Tony Lombardozzi and Peter Abdelmaseh of Superare Marketing. In “Stop Playing by the Appraiser’s Rules,” they explained their approach to dealing with insurance appraisers, and the dynamic duo shared strategies for setting legally binding prices in “Set Your Prices and Make Them Stick.”

Over 100 exhibitors participated in the 2017 NORTHEAST Tradeshow, and this year’s booths were bigger and better than ever with multiple vehicles on display, representatives from the largest paint and supply companies, and vendors representing every segment of the industry. The tradeshow was open on Friday night at 5–10 PM, followed by the Exhibitor Appreciation AfterParty. The tradeshow continued from 10AM to 5PM and 10AM–3PM on Sunday.

AASP/NJ’s 2018 NORTHEAST Conference and Tradeshow will take place on March 16-18, 2018.

Continued from Page 15

TX Bill Survey

already require a customer to pay more than the prevailing rate out-of-pocket.

That means both customers and shops have an interest in the state producing a fair, transparent and standardized means of determining a prevailing rate rather than letting a carrier declare “The prevailing rate is $X. We’re not going to show you how we came up with that number, but trust us, it’s right.”

Steering A large part of the House Insurance Committee hearing dealt with the bill’s anti-steering provisions, which include a ban on “limiting the beneficiary of the policy from selecting a repair person or facility to repair damage to the vehicle to the vehicle ‘s condition before the damage occurred in order for the beneficiary to obtain the repair without owing any out-of-pocket cost other than the deductible.”

It also nixes any “incentive or inducement, other than a warranty issued by a repair person or facility, for the beneficiary to use a particular repair person or facility” and changes a ban ARIZONA

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on forcing claimants to travel “an unreasonable” distance for a repair to a ban on travel “considered inconvenient” by the claimant.

Cernosek said carriers will even try to convince a customer to move their vehicle after it’s been brought to his shop, and he criticized suggestions by carriers that only direct repair network shop repairs will receive a lifetime warranty.

“We all give the same warranty,” he said.

Paul Martin, National Association of Mutual Insurance Commissioners Southwest state affairs director, said carriers see shops as “partners” in resolving a claim.

“We all have the same goal in mind,” he said.

Referring to an initial draft of the bill, Martin said that under Texas Insurance Code Chapter 542 and Texas Administrative Code 28§21.203, “many of the behaviors that are referenced in the bill are already prohibited.”

“If you’re already supposed to do it, then there shouldn’t be a problem codifying it,” said Committee Chairman Larry Phillips, R-Sherman.

See TX Bill Survey, Page 51

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 45

Northeast News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Mike Anderson Debuts Seminar on 100% Disassembly and Parts Mirror Matching with Chasidy Rae Sisk

During AASP/NJ’s 2017 NORTHEAST Conference and Tradeshow, Mike Anderson of Collision Advice presented a seminar on “100% Disassembly and Parts Mirror Matching” for the first time ever. Designed as a four-hour class, Anderson’s brand new session was condensed to just over an hour. Despite it being the last session of the day, the presenter began with the energy and enthusiasm that have come to be synonymous with the name “Mike Anderson.”

Noting that “shops say they are doing 100% disassembly, but they really only do about 80%,” Anderson dove into the benefits of 100% disassembly.

Locating all damage and parts in the beginning means one estimate and one parts order, thus minimizing the stress and chaos caused by repeatedly starting and stopping the repair process.

In addition to reducing last minute rush orders and accompanying fees, the benefits of 100% disassembly include minimizing supplements, improving CSI, ensuring on-time delivery, and enhancing the efficiency of the mirror matching process. Anderson pointed out, “It costs $100 in manpower each time you have to order parts. It’s cheaper to do it right the first time.”

By performing 100% disassembly at the beginning of the repair process, shops can identify all critical parts and ensure they arrive before the repair begins. This eliminates the stop and start process which makes technicians inefficient, and it can also improve a shop’s sales per technician. It’s also a great way to get paid easier because the part has already been removed when the insurance adjuster comes out, showing the validity of your R&I item on the estimate.

Sharing some tips for implementing 100% disassembly, Anderson stressed that it begins by working with your technicians to determine why they would R&I something. He stressed the need to be respectful during this conversation and to create mutual understanding.

Next, shop owners should make a list and check it twice to ensure they’ve R&I’d everything for access to control points for measuring, to restore corrosion protection, to set up and measure, and to perform the repair. Anderson

confirmed that shops who’ve implemented 100% disassembly have seen improved performance and reduced cycle time. “We made the difference by evoking a thought process, developing a culture they could buy into, and starting a discussion with shop employees. That discussion was valuable because it created an ‘a-ha moment.’ My goal today is to create an ‘a-ha moment’ for each of you that you can share with your teams.”

Defining the need to R&I for access to repair a vehicle, Anderson noted, “It is not uncommon to have to remove a vehicle component to gain access to perform a repair on a damaged panel.”

Some of the examples provided included R&I a door to repair the door when the door post is damaged, R&I a wheel to gain access to remove the splash shield, and R&I the trunk trim to perform a repair from inside the quarter panel.

Anderson continued to identify the R&Is needed for access to install jigs and fixtures, to anchor a vehicle for measuring and structural pulls, for access to control points and reference points for the structural diagnosis/measuring process, to inspect for hidden damage, and for discovery of nonreusable and/or broken parts, also describing the symbols each manufacturer uses to identify non-reusable parts that must be replaced during the repair process.

Looking at R&I for safety, Anderson pointed out, “There are several components that may need to be removed during the repair process as they are safety related components. Most, if not all, OEMs state that you should not perform any welding, grinding, heating, vibrating, hammering or any task that may cause an impact in the vicinity of safety parts.” He discussed why technicians can’t weld near electrical components and why seatbelts may need to be removed. He also noted that it may be necessary to remove speakers to avoid attracting metal shavings since speakers have magnetic components.

Anderson emphasized, “Make sure your estimate reflects what you are actually doing to the vehicle and list everything you R&I on your estimate, adding notes to explain the reason. If you don’t do 100% disassembly, you’re leaving things off the estimate.”

46 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

As he concluded the portion of the seminar focused on disassembly, Anderson identified reasons for R&I’ing components for external paint and refinish purposes, for internal paint and refinish, for access to dress welds, for protection during the repair process, and for access to reset/reprogram electronic components. It may also be necessary to R&I a part to gain access to another part, to access the battery, or for cleaning and removal of prior molding and decal adhesive.

Moving on to Parts Mirror Matching, Anderson observed, “It has been proven that the best time to determine if an incorrect part has been received or if the new part has been damaged is when that part actually arrives on-site and is received. Too often, a technician will be ready to perform the repairs only to discover that the part is incorrect or damaged. Thus, repair delays are incurred.

Therefore, it is important that all parts are mirror matched (comparing the old

part to the new part) immediately upon arrival and receipt of the part. In order for the parts department to do this in a timely and efficient manner, it is critical to have all of the damaged parts in ONE common place. Technicians cannot mirror match unless you do 100% disassembly. It’s not rocket science — it’s setting your technicians up to win!”

Shops should set up a receiving area with a parts mirror matching table with damaged parts sitting on rolling racks by repair order. Non-damaged parts can be separately stored on a cart or in a tub, and when critical parts are received, they should be compared to the original damaged parts.

Assuming $50,000 per month in sales per technician and a gross profit of 43% results in $21,500 per month in gross profit per technician.

If a technician works 180 hours in a month, the gross profit per technician is $119.44 per hour. Anderson See Mike Anderson, Page 48

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urged shop owners to include line notes on their estimate as to why R&I was performed, taking and labeling photos to match each line. He also stressed the importance of using correct terminology to avoid being told “work billed, not performed.”

In his call to action, Anderson urged attendees to do this WITH their teams, not TO their teams. Work with technicians to ensure that they R&I for everything, and audit them to ensure it is being done correctly. It takes 30 days to create a habit, but creating as habit takes up to 80 days if employees don’t work weekends. Anderson also emphasized how critical it is for shops to research OEM procedures in every repair.

In closing, Anderson noted, “There are times when you can’t R&I, but that should be the exception, not the rule.

This system works, regardless of shop size - I’ve never found a shop that wasn’t more successful with 100% disassembly and parts mirror matching.”

For more information about Mike Anderson and his informational seminars, visit www.collisionadvice.com.

Others at CIC pointed out that the initial estimate is needed for the customer to know what will be done for the car, and to generate the work order that is given to the technicians.

Mike Anderson

Continued from Cover

Jeff Snowden

ginning. He began his career as one of the first technicians in the Dallas-Fort Worth area, fixing hail damage through paintless dent repair. In the early 1990s, he met Troy Good, President and CEO of Dent Zone, and they began their business partnership in the PDR marketplace.

Snowden was instrumental in developing Dent Zone’s national network of mobile fulfillment technicians. That network was a key factor in the company’s successful introduction of the industry’s first PDR service contract in 1999 and the subsequent launch of PDR LINX Hail Group in 2006. Snowden recruited and trained teams of certified repair technicians across the country, especially in the hail damage market, as Dent Zone developed the largest network in the industry.

“Jeff displayed a commitment and determination that created a paradigm for PDR that resulted in its wide acceptance as a superior method over conventional dent repair practices. He has had such a positive impact on the industry as

179 Lines Too Long?

In 2007, Scott Biggs of Assured Performance suggested that detailed estimates were not necessarily something insurers and shops needed to negotiate ahead of repairs

But Biggs countered that today’s estimates are so full of abbreviations and “gibberish” that the average consumer can’t read them anyway, nor are they always complete and accurate enough to give technicians all the information they need.

“The estimate is a negotiating item, and we’re lying to ourselves if we a mentor and teacher to the hundreds of technicians he has trained and influenced over the years,” says Good. “Not only did he embrace this non-traditional practice, he saw its limitless potential.”

Snowden still works within the Dent Zone family, serving as Senior Director of Agent Development for AutoBodyGuard. He has taken the experience gained in building a national fulfillment network and programs to AutoBodyGuard, which has expanded its F&I product portfolio to encompass interior and exterior appearance protection, tire and wheel, windshield and dent protection offerings.

During his tenure at Dent Zone, Snowden has twice beaten cancer, including a successful recovery from a potentially devastating Stage 4 diagnosis in 2015. Snowden credits his faith, his family and the company he helped build with the success he has experienced both personally and professionally.

“The ability to start a business and grow it while surrounding yourself with good people is something I’m proud of,” explains Snowden. “And what’s more important is that I have had the support of my wife and kids and made hundreds See Jeff Snowden, Page 58

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say that (it) is an exact blueprint for repairs,” Biggs said. “And I’m not suggesting that you... replace the databases and arbitrarily pick $300 or $3,000 out of the air. But we could get there faster, easier and less expensively and then have less minutia to argue about and get to the job of fixing cars. You can’t say, ‘We don’t pay for that,’ if there isn’t ‘that’ on the estimate.”

– As reported in Autobody News.

Wright is now an independent consultant in the industry. Avery retired from State Farm last year.

5 years ago in the collision repair industry (May 2012) State Farm has rolled out mandatory use of its PartsTrader parts ordering system for its Select Service shops in four markets: Tucson, AZ; Grand Rapids, MI; Charlottesville, NC; and Birmingham, AL. Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) said the association’s board met with State Farm executives in late April and PartsTrader was clearly “an issue we’re not going to see eye-toeye on.” Schulenburg questioned State Farm’s contention that the system improves efficiency.

“Having an outside entity tell you what processes you’re required to do, and who you must do them through and how, is the furthest thing from ‘lean,’” Schulenburg said during the board meeting. “A process that requires you to review your vendors, especially ones you’ve built very strong relationships with and that provide excellent service, is far from lean as well.”

Schulenburg also questioned whether the system would be voluntarily adopted by the industry given that other electronic parts ordering systems are struggling to gain acceptance. He asked State Farm’s George Avery if the insurer would move forward with PartsTrader if shops, dealers and other parts vendors are resistant to it.

“At this point, we are moving forward,” Avery said. “We are moving through our test. We’re obviously gathering information, making adjustments along the way. But I can tell you that State Farm is moving forward with this. We think it is in the best interest of our customer.”

– As reported in CRASH Network (www.CrashNetwork.com), May 7, 2012. By late 2014, State Farm had rolled out mandatory use of PartsTrader nationwide.

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By 2030, 25% of Miles Driven in US Could Be in Shared Self-Driving Electric Cars By 2030, around a quarter of all miles driven in the US could be in shared autonomous electric vehicles, which will offer consumers in large cities the lowest-cost, most convenient form of transportation, according to new research by The Boston Consulting Group (BCG).

BCG’s key insight is that the convergence of three trends—ride sharing (services such as Uber and Lyft), autonomous driving, and vehicle electrification—create a far more compelling economic case than any of these forces alone. Due to their ability to cut travel costs by 60%, shared autonomous electric vehicles (SAEVs) could shift about 25% of miles traveled from private automobiles, creating enormous benefits for consumers as well as causing major disruption to the automotive industry. While total vehicle demand will only be affected slightly, by 2030, more than five million conventional cars per year could be replaced by a combination of fully autonomous electric vehicles for urban fleets and partially autonomous cars for personal use. Cities will benefit from less congestion and cleaner air, but could be disadvantaged by falling ridership on public transit, fear of which could result in some cities proactively trying to regulate the number of SAEVs on the road.

“Such an evolution in mobility is no longer a fantasy. The technology exists and our research shows that many consumers will embrace it,” said Brian Collie, a Chicago-based partner who leads BCG’s automotive practice in North America. “Yet, few players are taking the bold steps needed to position themselves to thrive in this nottoo-distant future. The time to act is now.”

SAEV is an apt acronym for these vehicles, as fleets would save time, money, and lives. By using SAEVs, a typical Chicagoan who owns a car and drives 10,000 miles a year could cut the cost of travel from around $1.20 per mile to around 50 cents per mile.

Over the course of a year, that could put more than $7,000 in that driver’s pocket, effectively doubling consumer discretionary income.

Unlike most industry studies, which look at trends such as autonomous driving and powertrain electrification in isolation, BCG’s research aims to provide an integrated view of the future of mobility in the US. The

consultants combine insights from a variety of sources—including a proprietary survey of more than 6,000 US consumers; detailed modeling and analysis of traffic patterns and population density in over 100 cities of varying sizes; economic forecasting; past BCG studies; and interviews

iences and benefits of private vehicle ownership.

Shift Will Have Massive Impact Moving up to a quarter of all miles driven would have massive impact, not only on household economics and lifestyles, but also on society as a

“Such an evolution in mobility is no longer a fantasy. The technology exists and our research shows that many consumers will embrace it” — Brian Collie

with a wide range of industry experts.

The results focus on implications for automobile and parts manufacturers, car dealers, service providers, and city governments, as well as other key stakeholders, such as energy and insurance companies.

Radical Shift Will Be Concentrated in Large Cities BCG’s conservative estimate is that 23% to 26% of miles driven in the United States, or about 800 billion to 925 billion miles, could be traveled in SAEVs by 2030. The shift to SAEVs, which would be gradual and would begin by the early 2020s, would likely occur in cities with more than 1 million people, where there is sufficient demand to keep fleet utilization high and there are significant pain points associated with private vehicle ownership (expensive insurance, difficulty finding parking, and congestion).

Adoption could be even faster and more widespread if innovations in technology and pricing models reduce costs further for consumers. Innovations could include radically different vehicle designs (such as driverless pods), new tailored services (such as pooled ride sharing), and new revenue streams (such as in-vehicle advertising). At a lower price point, SAEV service might be attractive in more mid-size cities (with populations of 500,000 to 1 million).

Nonetheless, significant hurdles remain. Major technical and infrastructure challenges must be solved. For example, BCG concludes that SAEVs are unlikely to be economically viable in small cities and rural areas. And even in larger cities, their survey findings suggest that many consumers remain skeptical of the technology or are unwilling to give up the many conven-

50 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

whole, urban planning, the automotive industry, and key supporting industries such as energy, finance, and insurance. ● Automakers and parts suppliers would face the most profound challenge to their business models in a century. While total vehicle demand isn’t likely to change materially, the types of cars required will be vastly different. BCG estimates that in 2030, a total of 4.7 million autonomous electric vehicles will replace 5.1 million conventional autos sold in the US. This

shift undermines the current industry business model, with its focus on engine technology and its long product cycles, and opens the market to a range of new competitors. Hundreds of billions of dollars worth of industry assets could turn into liabilities. Dealers will be less relevant as fleets make up a much bigger portion of sales. Current aftermarket businesses will take a hit because SAEVs will require less maintenance and have fewer accidents. But at the same time, whole new businesses will develop to manage large urban fleets and service them daily. ● The new model would also have important implications for cities.

In addition to benefits such as less congestion, fewer traffic deaths, cleaner air, and reduced need for parking space, cities may also face financial hardship because of the impact on public transit. The economics of shared autonomous electric vehicles makes them competitive with public transportation for short trips—and more convenient (no schedules, door-to-door service).

According to BCG analysis of traffic patterns and “pain points” of mass transit riders in Chicago, as many as 20%

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of public transit miles could shift to the new transportation mode. This could leave cities in the position of maintaining aging transit infrastructure with reduced ridership and fare income. However, cities can plan for the loss of transit income by finding other sources of tax revenue, such as fees on SAEV fleets and trips. They could even consider investing in publicly owned fleets. ● Additional effects would include a sharp drop in fuel demand— an impact looked at in depth in an upcoming comprehensive powertrain study by BCG. And the sharp reduction of traffic accidents and related injuries from autonomous and semiautonomous vehicles could reshape the auto insurance business. Tech companies, data providers, and electric utilities would benefit.

The Next Car You Own May Be Your Last “The age of shared autonomous electric vehicles is upon us and now is the time for automakers, suppliers, and cities to begin taking the bold steps necessary to thrive in this rapidly changing world,” said Justin Rose, a Chicago-based partner who leads

BCG’s digital efforts for industrial goods companies. “Companies need to deconstruct and rebuild business models, develop new capabilities, create new sources of sustainable advantage, and shift assets and talent to new purposes—or risk becoming irrelevant. As with any great disruption, this transition will be risky and extremely challenging, particularly in the face of near-term investor expectations of customer demands.”

To help navigate this turbulent period of transition and uncertainty, the authors have developed a roadmap to guide automakers, cities, and regulators in preparing for this profound change, with a set of recommended actions for each.

“The automotive industry is on the brink of a major transformation, and it’ll be here faster than people realize,” added Rose. “For millions of Americans living in large cities, the next vehicle they purchase may be the last car they ever own.”

A formal report with further details on the study—the first in a multipart series on the reinvention of the automotive industry—will be published in the coming weeks on www .bcg.com.

Continued from Page 45

TX Bill Survey

Martin said that the current laws should be used instead. He argued that the bill was really a debate over direct repair programs, and when carriers offer the benefits of a DRP, “that’s somehow steering.”

“We would submit that the current statute is the better way to regulate that,” he said.

Continued from Page 39

MIW Honorees

your different opinions and views to the table. Don’t be afraid of failure, but learn from your mistakes. Be yourself.”

Stein’s advice is “Don’t be afraid to be a student. Ask questions, and instead of fearing failure, take on challenges outside the scope of what you know. I wouldn’t be in my current position if I didn’t take risks, and criticism has made me a better professional because results are what matter at the end of the day. Women set their own limita-

“The challenge of this is, how do you define steering?” Martin later said, though the bill doesn’t try to define it.

Rather, it attacks the issue from another angle, setting a level playing field between DRP and non-DRP shops in terms of incentives. It essentially says that while a carrier can recommend shops, it can’t offer a customer perks for using them, other than a warranty provided by the DRP shop itself.

(Which, as Cernosek noted, many nonDRP shops have as well.) tions, but there are so many options in this industry. We have a deficit of and a need for talented people, regardless of gender.”

Ricciotti added, “Invite yourself instead of waiting to be invited, and never give up. Seek companies that look at your capabilities, not your gender; it’s comforting to know that the way people treat you is due to your skills, not because you’re a woman.

There will always be challenges, so find a mentor and a great support system like WIN. I never thought I was any different, but I’ve always believed that achieving success is the only option.”

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The Pre- and Post-Scan Revolution

by Gene Bilobram

Last year, a number of major automakers issued position statements on diagnostic scanning in the collision repair of their respective nameplates.

With officials from both Honda and Nissan pounding the table recently with terms like “mandatory” and “100% mandatory,” this is a revolution. Only instead of taking back a country, this revolution is about collision repair shops taking back the customer. Collision repairers must protect the interest and safety of the customer by meeting the requirements promulgated by the vehicle manufacturers.

Post-collision diagnostic scanning is now a matter of compliance. What is better than a compliance matter that a shop can actually get paid for and turn a profit?

In the never ending struggle between shops and insurers over new and non-included procedures, many shops have become battle fatigued. These mandated scan procedures by automakers are being shrugged off by some as just the latest allowance shops will ask for only to be quickly denied.

Not so; this time it really is different.

This isn’t fighting over things like color tint or prime and block that are often viewed as overkill or procedures which are included in the labor times despite what the P-pages say. Even if the shop is not properly reimbursed, those ancillary procedures are likely being done anyway.

For instance, if tint color is disallowed, a shop would not purposely mismatch the paint and damage the customer relationship along with the shop’s reputation. That would be cutting off one’s own nose to spite their face. Although some brave shops out there will bill the customer on these additional costs over the deductible, most will suck it up as the alternative, asking the customer for more money, is about as desirable as scheduling a colonoscopy.

Many of the previous struggles with certain insurers relate to differences of opinion on what is necessary to restore the appearance of the vehicle. This time it is about safety. A collision shop is tasked with not only restoring the appearance of a vehicle following a collision but the repairer is responsible for restoring the vehicle’s functionality. Automakers recognize this and so do insurers.

Insurers are providing allowances to meet or exceed the recent automaker scan positions. The trick is, you have to ask! And if the responsible insurance company refuses to make the proper allowance, the collision repairer

scanning or calibrations would be always identified by a trouble code. clearly on the shoulders of the shop Repairers cannot afford to meet these that chooses not to perform these op- automaker safety protocols only half erations. Following some unforeseen way as some shops are doing. If a colevent, an insurer would likely say, lision repair shop wishes to reduce “We would have paid for it, but the their liability and be properly compensated, the value of complete comshop never asked.”

The shops already leading pliance with the automaker position the charge may have faced should be delivered to the consumer.

Ignoring the post-repair scan is some early resistance as the local field appraiser had no not without its consequences. One prior knowledge of this situ- shop I’ve worked with had a vehicle ation. Appropriate communi- they worked on find its way to the cation with the insurer and OEM dealership once the owner had it back. The dealership service departcustomer is crucial in overcoming objections. Proper ment diagnosed an issue with the documentation of the proce- Blind Spot Monitor (BSM) and disdural work performed can covered an unplugged connector. Not also overcome insurer resist- only that, the dealer inspected the collision repair and cited welding and ance.

Some shops feel entitled workmanship issues that were put in (l to r) Dalila Martinez and Gene Bilobram at Collision to payment by virtue of the the written narrative of the invoice.

Diagnostic Service’s booth at the 40th Annual AASP/NJ OBDII cable pins making Had the shop followed the OEM scan NORTHEAST® Automotive Services Show in March contact with the OBDII port mandate, they could have been paid to is duty bound to ask the vehicle owner. in the vehicle. However, scanning and scan the vehicle and able to catch the The automaker mandates apply to non- clearing codes is only a portion of BSM issue beforehand. Now the shop insurance, customer pay repairs as what is required. There is real techni- is paying the dealer bill of almost well. They are not somehow negated cian work involved on the pre- and $300 as there is no way they will subin these instances even though some post-scans and requisite safety sys- mit that invoice to the insurer showrepairers have convinced themselves tems inspections and calibrations not See Scan Revolution, Page 55 of that. The repairer has an implied obligation to inform the consumer regardless of the source or method of payment.

Automakers have confirmed that the dashboard light is an insufficient diThe right part makes the difference. agnostic tool and numerous trouble codes plus potentially compromised vehicle systems may exist with no outward warnings on the instrument panel.

A small number of insurers may be resistant by only paying for diagnostic scanning in the presence of a dashboard indicator or air bag deployment.

Any shop that accepts the “no light = no scan” policy without informing the vehicle owner with the option to pay is setting themselves up for trouble.

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Owner of Swope Family of Dealerships Receives Prestigious Honor & Attributes Success to Highly-Engaged Employees was on stage being recognized as one of the 49 nominees that I learned that Earlier this year, Carl Swope learned the University of Michigan School of he received the 2017 Time Dealer of the Business had selected me!

Year Award during the National AutoWe’ve regularly attended NADA mobile Dealers Association conventions throughout the (NADA) Convention in New years. Over my lifetime, I’ve Orleans. The owner of the had the privilege of watching Swope Family of Dealerships my father and uncle both being in Elizabethtown, Kentucky, recognized as nominees as said it was an honor and he atwell as my brother Dick, who tributes his success to the great is also an automobile dealer, people who work for him. recognized twice as a nominee.

Carl Swope, owner The 65-year-old com- of the Swope Fam- I was just glad that I got nomipany was started in 1952 by ily of Dealerships, nated. in Elizabethtown, Carl’s father, Bill, and his I have been honored many Kentucky uncle Sam. They opened a times and by many people Chrysler, Dodge, DeSoto dealership and they are all special but I have never in Elizabethtown and established a received an award like this. It’s woncollision center in the late 1950s. The derful to be nominated by your peers, family has a long history of operatin this case, the state of the Kentucky. ing dealerships across Kentucky and To me, that was as good as it gets.

Florida.

Then the unthinkable happened.

Autobody News spoke to Carl What do you attribute your sucabout the award and what makes his cess to? dealerships and independent collision center so successful.

I know several of the other nomWhat is the TIME Dealer of the inees and it could have been any Year Award? one of the other 48. They all have some things in common. First, they are all Some say it is the most presti- passionate dealers. I’ve told people my gious award a new-car dealer whole career that I just don’t love cars, can receive. The program honors new-car dealers in the United States who exhibit exceptional performance in their dealerships and perform distinguished community service.

Every year, 49 out of 50 states nominate a dealer. They are chosen by members of the Automotive Trade Association Executives (ATAE) and the winner is announced during the NADA convention.

The award provides $10,000 to a non-profit selected by our Carl Swope received the 2017 Time Dealer of the Year award during the National Automobile Dealers Association dealership and we chose the (NADA) Convention in New Orleans Community Health Clinic of I love the car business. I turned 60 reHardin & Larue Counties. cently and I was walking into a meeting How did you find out you re- thinking I’ve been doing this a long time and I can’t imagine doing anything else. ceived the award and what was The other thing that these dealers all your reaction? have in common without exception is I found out when I was stand- they have great people who work for ing on stage with the 48 other them and with them. These people are nominees at the NADA convention in not only professionals, but they are New Orleans. It was a huge surprise. I highly engaged at the dealership and the went to the convention thinking the community. The last thing I think is uniwinner probably already knew who he versally true about all of the nominees or she was but literally it wasn’t until I is they come from great communities,

by Stacey Phillips

Q: A:

Q: A:

Q: A:

54 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

some of them from large cities. They are highly engaged in whatever part of that city they identify with. In my case,

some of our Swope dealerships, including Sam Swope Pontiac, Honda and BMW. Later, I ran Toyota of Louisville. I decided to move to Elizabethtown in 1986 and bought the stores from my dad and uncle.

I now own what we call the Swope Family of Dealerships in Elizabethtown, which includes six stores: Nissan, Hyundai, Ford, ToySwope Chrysler, Dodge, Jeep, Ram is one of the six ota, and Chrysler, Dodge, dealerships Jeep and Ram are located on it’s a relatively small market, about Dixie Ave. in Elizabethtown and the 100,000, but all our dealerships are very Mitsubishi and Certified Pre-Owned engaged in the good things going on in dealerships are about 15 miles away the community. on Dixie Blvd. in Radcliff. We also have the Swope Freedom Plan dealCan you tell us how you be- ership in Elizabethtown.

In addition, we have an indecame involved in the industry? pendent collision center with 16 emAfter graduating from Eliza- ployees that is overseen by the general manager of the Chrysler dealership. bethtown High School in 1975, The 11,000-square-foot facility repairs I earned a B.S. in business adminisabout 100 wrecks a month. tration from the Indiana University Bloomington in 1978. I’ve worked in What are some of the commuall phases of the retail automobile nity projects your dealerships business at my family’s stores. The following year I began working at See Swope Family, Page 56

Q: A:

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Continued from Page 52

Scan Revolution

ing a disconnected sensor and harsh criticism on the workmanship. Additionally, the customer will be back to have them correct all of the shortcomings pointed out by the dealership.

I have been out in the field and on the phone with shops locally and in various areas of the country. Sadly, I have found an egregious lack of awareness about the procedures or lack of courage to broach the conversation with insurers, especially with DRP shops. What’s most surprising is some of the dealership shops and OEM certified shops are amongst this group of the unwilling or unaware.

It is time to sit down with the OEM scan position statements and have the necessary dialogue with insurers. Many insurers want to do the right thing by their customers. It is up to you to present the OEM documentation and be clear that the vehicle repairs are not complete until the completion scan, any necessary resets and calibrations and a road test are performed. The outcome of those discussions may pleasantly surprise you.

Resources Abound To assist shops and insurers in this important dialogue, I have created the “OEM Diagnostic Scanning Positions Quick Reference Chart” which is a fantastic tool for shops to use in educating the insurer and customer on the importance of Pre- and Post-Repair Scans in the collision restoration process. Auto body shops certainly would not want a mechanical shop or dealership notifying the customer and identifying trouble codes or procedures which the auto body shop left behind. The chart appeared in the March 2017 edition of Autobody News and is available FREE as a PDF file at the following site: www .oempositions.com “While the Quick Reference OEM Scan chart is no substitute for the complete OEM position statements, it provides a convenient overview with the basic essential information to assist the damage assessment and repair planning process,” said Charles Bryant, Executive Director of AASP/NJ. “This chart may also prove to be a useful tool when negotiating with an insurer for the appropriate allowance of these operations which automakers have deemed an integral part of the collision repair process.”

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For those shops that are just starting to implement the latest automaker pre- and post-scan protocols, I’d recommend Automotive Management Institute’s (AMI) latest online course, “Management’s Guide to Scanning and New Technology.” It is a terrific overview of why post-collision scanning is important and highly effective in getting the process started. The 108minute course is reasonably priced at under $50. AMI is a non-profit where the funds go back to creating more valuable content to help auto repair shops. Even shops with a diagnostic scanning program already in place would stand to benefit from the AMI content. Some insurance companies have taken the cue and are having their personnel take the course. Go to: www .amionline.org Jeff Peevy, president of AMI, recently made a brief appearance with me at asTech™ maker, Collision Diagnostic Service’s booth at the 40th Annual AASP/NJ NORTHEAST® Automotive Services Show in March.

Booth visitors were introduced to the AMI course and also learned how the asTech™ remote diagnostics solution offers numerous benefits to their collision repair business. The AMI course was awarded in hourly drawings, the conversation was lively and the interest in pre- and post-repair scanning seemed strong.

I-CAR® offers new courses on diagnostics, calibration and scan tools as part of its “Vehicle & Technology Specific Training.” Also, the newest edition of its “Vehicle Technology and Trends” course is available. Savings of 10-15% may be had when choosing from multiple course packages options. Go to: www.i-car.com/Vehicle Technology Last Battle Cry Automakers have clearly shifted liability onto the shoulders of the collision repair industry in a move that I anticipated in an article in the insurance press last May. The pre- and post-scan revolution is here. The first shot across the bow was fired by FCA Group, LLC. (formerly Chrysler Group, LLC.) with their position statement, one

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month after my article appeared, in June 2016. Since that time, a half dozen more automakers have joined the fray and issued their own statements.

Collision repairers still on the sidelines should know that this is not the equivalent of ‘bringing a knife to a gunfight.’ Quite the contrary. There are stockpiles of ammunition in the form of automaker position statements with a war chest of educational articles, learning courses and industry pundits to lend battlefield support.

In the midst of this diagnostic scanning revolution, collision repairers must decide whether they are going to take the customer back in the name of safe and proper repairs or take cover and wave the white flag.

Any liability-conscious shop owner out there knows there is only one correct choice to make. Be one of the smart ones and join the Pre- and PostScan Revolution today. Your customers deserve nothing less.

Gene Bilobram has been an automobile physical damage appraiser for over 25 years. His company, Lacey Appraisal Service, Inc. is a physical damage appraisal, consultancy and manufacturers’ rep firm serving the collision repair and insurance industries. He may be reached at (609) 384-8093 or at laceyappraisal@ aol.com to discuss the latest shop tools and solutions in the pre- and post-repair scan revolution. His company is Manufacturer’s Representative for the leaders in post-collision remote vehicle diagnostics and systems calibrations. Gene will personally refund the purchase price of AMI’s scanning course to anyone who takes the course and later purchases any of the post-collision products or services he has to offer. Some restrictions apply. Contact him today for an updated OEM Scan Chart, email alerts, shop diagnostic program assistance and valuable insights into the often challenging process of insurance company reimbursement.

The opinions expressed are that of the author and not necessarily the opinion of any of the companies, individuals or organizations mentioned herein or of this publication.

www.autobodynews.com

www.autobodynews.com | MAY 2017 AUTOBODY NEWS 55

Continued from Page 54

Swope Family

take part in and what is the importance of getting involved?

A:

We take part in various programs that support our community and make it a better place. In the 1990s, we established a local affiliate for Habitat for Humanity and the statewide Kentucky Habitat, and our associates build houses with Habitat for Humanity. It’s so rewarding to have the team work together and help a family in need in our community.

We also participate in a wonderful program through the United Way that fills backpacks with nutritious food for children in need and prepares care packages for deployed soldiers.

Not only do we encourage our associates to get involved, but we facilitate programs that they are interested in.

What is the importance of getting involved for both the emQ: ployees and the community?

tomers. If you can get your associates engaged in the community, they are going to be the kind of engaged employees that please and satisfy customers. That is the success at the end of the day—to please your customers.

I realized how powerful our dealerships can be if I encourage and support all our leadership and associates to get involved. Together, we are making Elizabethtown and the central Kentucky region a better place.

Q:

What sets your dealerships and collision center apart from others in the industry?

I’m blessed to have 290 emA: ployees working at the dealerships and collision center, who are

doing the lion share of the work. My shortest tenure is about 18 years. The longest tenure is 28 years.

We don’t have a lot of turnover and these are not only satisfied employees, but they are also highly engaged employees. That’s true throughout our organization and I think it really sets us apart.

we’re all in business What advice can you offer to A: toObviously, make a living and satisfy cusQ: other businesses in terms of re-

Congress Overturns OSHA Injury/Illness Recordkeeping Rule

by SEMA Washington, D.C. Staff

The U.S. House of Representatives and Senate passed a resolution to overturn a regulation which effectively allowed the Occupational Safety and Health Administration (OSHA) to cite companies that failed to record work-related injuries and illnesses during the five-year retention period. In 2012, a U.S. Court of Appeals ruled in the so-called “Volks” lawsuit that OSHA could not issue citations beyond a six-month statute of limitations set out under law. To get around the court finding, OSHA issued a rule before the Trump Administration took office to “clarify” that an employer had a duty to make and maintain accurate injury/illness records for the entire retention pe-

riod, and that the duty did not end if the employer had failed to create the necessary records during the initial six-month citation period. Trump is expected to sign the resolution into law.

The Congressional Review Act gives Congress the authority to overturn a recently issued federal regulation if a resolution is passed by a simple majority and signed by the President. Congress is currently reviewing a number of regulations issued before President Obama left office. The law has only previously been used on one other occasion, in 2001 when Congress overturned the Clinton Administration’s ergonomic rule.

For more information, contact Stuart Gosswein at stuartg@sema.org.

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56 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

taining employees?

We call ourselves the Swope A: Family of Dealerships. The word family is very important to us.

We really think of each other as fellow associates. Certainly, we have hierarchy, but we buy into this idea that you manage processes and you lead people.

Everybody in our organization is considered a leader. We appreciate what they do, we pay them well and we recognize what they do day in and day out.

I’m very fortunate to have a great organization. I have an office but I’m rarely there. Most of my time is spent in one of the stores with our associates. In addition to being active in the Kentucky Auto Dealers Association (KADA) as a director and officer, I serve on numerous boards of community associations and am a member of a 20 group.

I feel it’s very important to get involved so you can be exposed to new

things, innovative things that are happening. It doesn’t matter if it’s the collision center, sales area or service—if you don’t get yourself out of your box, your box is going to get pretty small.

Can you tell us about the Swope Q: Museum?

Swope’s Cars of Yesteryear MuA: seum is located between the Chrysler dealership and the Nissan deal-

ership. It was started by my father after I purchased the stores from him. He has been collecting vehicles and displaying them in the museum since his retirement 30 years ago. There are currently about 70 vehicles ranging from the early 1900s to the 1960s in a variety of makes and models. About 45-50 are on display at the museum at any given time. Some were restored in the collision center and others were purchased. I encourage anyone in the area to check it out!

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 57

AkzoNobel Signs on as Platinum Sponsor for Women’s Industry Network AkzoNobel, the global decorative paints, coatings and chemicals company, is celebrating Women’s History Month by announcing that it is the Platinum Sponsor for the non-profit Women’s Industry Network (WIN).

nent of our industry and the advancement of diversity within it,” said Holmberg. “Many of WIN’s founders and current leaders were first recognized by AkzoNobel through the Most Influential Women in the Collision Repair Industry program, began in 1999; and, today administered

WIN is dedicated to encouraging, developing and cultivating opportunities to attract women to vehicle collision repair. WIN recognizes excellence, promotes leadership, and fosters a network among women who are shaping the industry.

Doug Holmberg, Vehicle Refinishes Business Director for AkzoNobel in North America, says that he is extremely proud of AkzoNobel’s longstanding relationship with WIN. “AkzoNobel is a strong propo-

under the stewardship of WIN. As a result of this history, we were the first and primary corporate mentor for WIN as it aspired to be the only association in the North America collision repair industry specifically focused on the advancement of women at all strata. This sponsorship demonstrates our appreciation of their work.”

The WIN organization is currently in growth mode, as companies representing every segment of collision repair around the world are be-

American Honda Releases New ProFirst Logo for Better Brand Recognition

by Chasidy Rae Sisk

American Honda released a refreshed logo for its ProFirst certified shops in mid-March to help promote brand recognition. The new design includes the Honda Automobile Division marque and the Acura Division marque on either side of the ProFirst logo. Honda decided to revamp their ProFirst logo after learning that many shops were

not advertising their certified status because consumers didn’t affiliate the design with the manufacturers; the new design will be more easily identifiable to Honda and Acura owners.

According to Leigh Guarnieri, Collision Marketing Manager for American Honda, “This is consistent with the logo design format used by other OEs. This is a positive step for everyone, making the ProFirst shop more recognizable to Honda and Acura owners.” ProFirst program administrator Gary Ledoux adds, “Honda and Acura owners are some of the most loyal followers of a car brand in the industry. They recognize the Honda and Acura marques and know they stand for quality - in the car they drive, the

Honda and Acura dealerships where they have their cars serviced and now at the dealers and independent shops where they have collision damage repaired. ProFirst shops displaying the new logo may have a better chance of attracting Honda and Acura owners needing collision repair work.” Since the new logo may present placement challenges since it is quite long and cannot be altered in any way, the existing logo may also be used to officially signify a ProFirst shop. Both versions of the logo are available in a variety of color combinations. ProFirst shops will have exclusive access to the new logo in digital form to use in marketing materials, and now ProFirst shops will begin receiving their plaques and signs with the new logo in May with current certified shops receiving the updated signage as they renew their certifications. As such, Honda anticipates it will take approximately a year to complete the changeover. The new logo will be available on the CRN website in the near future, but certified ProFirst shops who went to starting using the new logo right away can email profirst@ ahm.honda.com with subject line “logo” to receive the logo in JPG, PDF, EPS or Adobe Illustrator format.

58 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 48

Jeff Snowden

coming members. Susanna Gotsch, chair of WIN’s Sponsorship Committee, says that their growth is made possible through the support of organizations like AkzoNobel.

“We are happy to support such a worthwhile organization,” said North American Marketing Manager for AkzoNobel Vehicle Refinishes Jennifer Solcz when announcing the $25,000 sponsorship. “In addition to providing financial support, AkzoNobel employees are actively involved with WIN. Past employees served on WIN’s founding Board of Directors and we have several current employees working to advance the association through their involvement on various committees.”

“The importance of WIN’s mission to our industry is reaffirmed by the tremendous support we have received from our sponsors,” said Gotsch. “At WIN, we provide a unique industry setting where women can connect with peers in the industry to share different perspectives, challenges and ideas to improve the industry.”

For more information, visit www .akzonobel.com.

of good friends over the last 25 years in this dynamic and competitive industry.”

About Nobilis Group: Nobilis Group, Inc. is a provider of consumer vehicle protection programs to the automotive, recreational vehicle and powersports markets as well as catastrophic repair services for insurers, automotive retailers and company managed fleets. Dent Zone is widely credited with launching the industry’s first paintless dent repair service contract and developing a national network of certified repair technicians to service customer claims. AutoBodyGuard distributes a full line of appearance protection and related programs to automotive, RV and powersports dealers through agents nationwide. Through PDR LINX, the company provides catastrophic repair services, including hail repair, flood and fire mitigation and overspray removal services. Nobilis, headquartered in Irving, Texas, celebrated Dent Zone’s 25th anniversary in business in 2016.

Contacts: Nobilis Group, Inc. Jeff Beaver, 214-393-2198 jbeaver@dentzone.com The source for timely

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WMABA Opposes West Virginia Parts Bill, Neighboring States’ Efforts Will Be Affected In reaction to Senate Bill 544, proposed in West Virginia and reducing the consumer protections related to collision repair parts, the Washington Metropolitan Auto Body Association (WMABA) strongly urges representatives to vote “NO.”

After years of efforts to push forward similar protections in both Maryland and Virginia, the WMABA has utilized the neighboring state of West Virginia as an upstanding example of how a state can protect consumers when it comes to the collision repair

parts used during the collision repair process. Having the majority, if not all, of the warranty period covered, those consumers with newer vehicles do not have to argue with insurers about what is best for their car and can get the Original Equipment Manufacturer (OEM) parts without any out of pocket expense. This is something not afforded their neighbors, who applaud this type of protection and disclosure.

Finding outright fault in the argument that this proposed legislation reduces the deductible charge in any way, the association also urges legislators to check the facts and the other consequences of this bill. The deductible is set by the policy and would not be changed.

Customers will not always know what kind of parts they are getting un-

less they ask. The “fine print” parts disclosure required at the end of each repair estimate or repair order that explains the use of aftermarket parts is also a necessary consumer protection, so that they know what parts are being used in their repair. There is nothing else that would mandate a repairer or insurer educate the customer on the parts types written into the charges. Knowing what kinds of parts are used is a right-toknow that should not be altered.

It appears that Senator Maynard, who proposed the bill, also would take personal interest in this cause, as his own business deals in aftermarket parts for cars. Without doubt, WMABA knows that insurers, aftermarket parts companies, and others will take benefits to this bill through the course of their business. Insurers believe that this will

save on claims amounts, but also push or shift the cost onto the policyholder or claimant by making them pay out of pocket to get what the law already provides. Aftermarket parts suppliers benefit through the additional usage of their parts, which are not covered by the vehicle’s existing warranty, something that consumers often find subpar to their “pre-accident condition” where the warranty is fully intact. They are not made whole to the point of value or condition they were when the accident occurred.

WMABA again urges all West Virginia legislators to carefully review the consequences of these language changes and to vote against changing a consumer protection that needs to stay.

For more information, call (804) 789-9649 or email jordanhendler@ wmaba.com.

FCA US Marks Opening of New Mopar Parts Distribution Center in Virginia FCA US celebrated the official opening today of a new Mopar Parts Distribution Center (PDC) in Winchester, Virginia. The 400,000-plus squarefoot facility represents a $12.2 million investment by FCA US and more than 70 jobs over two shifts. It is also the first of two new Mopar PDCs sched-

uled to open in the U.S. this year.

FCA US and UAW leadership were joined by federal and state government dignitaries and dealership representatives in marking the Winchester PDC grand opening. Ceremony attendees included Pietro Gorlier, Head of Parts and Service (Mopar), FCA –

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Global; Norwood Jewell, UAW Vice President and Director of the Chrysler Department; Mark Bosanac, Director – NAFTA Supply Chain Management and Global Parts Supply Chain Management and Operations; Kevin Farrish, President, Farrish Chrysler Dodge Jeep® Ram; Urooj Mughal, representative for U.S. Senator Tim Kaine; Dave Stegmaier, Director of Community Outreach for U.S. Representative Barbara Comstock; and Hayes Framme, Virginia Deputy Secretary of Commerce and Trade.

“We are celebrating our 80th anniversary in 2017, and throughout the years customer satisfaction has been and continues to be the Mopar brand’s No. 1 priority,” said Pietro Gorlier, Head of Parts and Service (Mopar), FCA - Global. “This new Parts Distribution Center builds upon our mission, allowing us to more quickly and efficiently serve our dealers and customers, delivering the parts they need, when they need them. This is our 22nd PDC in North America and we’ll continue to expand our distribution network as the parts and accessories business keeps growing.”

“Today’s opening adds more than 70 jobs to the Virginia economy and makes the Mopar brand’s delivery of parts to dealers and consumers more efficient. FCA continues to grow, which is a constant reminder that the auto loans were a great investment,” said Jewell.

A framed Congressional Record statement issued by Congresswoman Comstock was presented in honor of the official opening of the PDC. A

special Mopar logo, featuring a commemorative plaque and signed by all event attendees, was also presented to Winchester PDC employees and management during the ceremony.

The new facility will handle more than 50,000 total part numbers distributed to over 200 FCA US dealerships, located primarily in the Mid-Atlantic region. It will ship approximately 9.2 million pieces annually.

FCA US invested $12.2 million in equipment for the Winchester facility.

In addition to the more than 70 jobs created, FCA US is also utilizing local resources for assistance in areas such as janitorial services, facilities management and exterior building maintenance.

The Winchester operation expands the brand’s current distribution network to 22 facilities in North America, with more than 50 PDCs (including joint ventures) in operation worldwide.

The Winchester PDC was launched under FCA World Class Logistics methodology, which establishes a synchronized supply chain that progressively eliminates waste through the contribution of all employees and the rigorous use of methods and standards that promote an approach of continuous improvement.

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 59

Chief® University Introduces Industry’s First Joining Technologies Class Chief University introduces the first all-encompassing, hands-on collision repair class focused on joining technologies. The one-day Chief University Joining Technologies class is designed to provide estimators and ap-

and provides the most hands-on classroom environment we have ever delivered.”

The Joining Technologies course is a combination of classroom and hands-on experiences in several new joining disciplines. Each student will have the opportunity to participate in the following exercises:

Standards. The new Chief University Joining Technologies class is approved for I-CAR credit hours through the I-CAR Industry Training Alliance® program. Cost for the eight-hour class is $395.

■ Perform steel and aluminum welding and brazing, using Chief’s virtual welder.

praisers a thorough understanding of the current welding, riveting and adhesive bonding and removal technologies being used in today’s shops.

“We are constantly updating the training curriculum at Chief University to keep pace with the OEM changes in vehicle design, technology and materials,” said Ken Boylan, global training manager. “Chief is proud to be the first in the industry to offer the opportunity to study and understand the joining technologies OEMs are requiring and want to see implemented in vehicle repair. This class is designed for all skill levels, from first-timers to experienced appraisers and estimators,

■ Install and remove self-piercing rivets and flow-form screws.

■ Install blind rivets.

■ Perform structural weld bonding and debonding.

Chief University introduces the industry’s first Joining Technologies class, covering welding, brazing, riveting, weld bonding and more

■ Perform spot welds with and without adhesive.

■ See a demonstration of carbon fiber repair.

Chief University training is certified by the National Institute for Automotive Service Excellence (ASE) for compliance with the Continuing Automotive Service Education (CASE)

The next Joining Technologies will be offered April 13 in Lewis Center, Ohio. Chief University class offerings are updated frequently. For the most up-to-date schedule, course descriptions and to register, visit www .vsgdover.com/training/ViewAvailable Classes.aspx?PL=2.

For more information, visit www.chief automotive.com.

GYS Wins Tesla Approval

GYS has announced that their NEOPULSE 300-T2 Pulse MIG Welding machine has been approved

by TESLA for aluminium welding for structural repairs to the vehicle manufacturer’s Model S and Model X cars. The NEOPULSE 300-T2 is a MIG/MAG inverter, offering up to 270A and high duty cycle, pulse in pulse welding. According to the company, a key feature of the machine is that it offers 2 torch operation so can be simultaneously set up to weld 2 metal types. An advanced yet easy to use LCD control panel offers a user-friendly interface. Neil Pulsford, GYS UK Commercial Director commented, “We are delighted to win this approval from Tesla, a company that is moving forward very quickly and is building a body repair network to operate at the highest standards in repairing Aluminium.” The approval follows other recent endorsements for the Neopulse range from Mercedes as well as from Ford Motor Company and Volkswagen Group for other welders in the GYS range. GYS is French family-owned industrial group which manufactures three product families: industrial welding machines, battery maintenance equipment and auto body welding equipment.

I-CAR® Offers New Online Cycle Time Course for Appraisers

In today’s business environment, efficiency is essential to bottomline performance, and reducing cycle time is one of the most powerful ways to increase efficiency in a collision repair facility. I-CAR has launched a new online course

on the topic specifically focused for auto physical damage appraisers (APDAs).

The course, Understanding Cycle Time as an Appraiser (AP05-5E01), was designed specifically to provide APDAs with an understanding of cycle time as it relates to the collision damage repair process.

The development of this course is part of I-CAR’s new approach to place an even greater emphasis on the perspective of each course’s intended audiences. In this case, the course was created with an additional focus on the specific needs of

APDAs. Conveniently offered in a onehour, online format, the course will help the APDA identify how to measure cycle time, identify waste in the repair process, and learn how standard operating procedures can be used to create a consistently high-quality repair process.

The course also presents APDAs with a basic understanding of repair blueprinting and 100 percent teardown, both of which can be beneficial for improving cycle time, as well as information on supplements and their impact on cycle time.

For more information on Understanding Cycle Time as an Appraiser (AP055E01), visit I-CAR.com or call (800) ICAR-USA.

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Registration Opens for AAPEX 2017 in Las Vegas

Online attendee registration for AAPEX 2017 is now open at www .aapexshow.com/news. AAPEX represents the $740 billion global automotive aftermarket industry and will take place Tuesday, October 31 through Thursday, November 2 at the Sands Expo in Las Vegas.

AAPEX online registration is

only $40 (US) through Friday, October 13. Registration includes the expo with more than 2,200 exhibitors displaying new products and technologies to diagnose, service and maintain the nearly 1.2 billion vehicles on the road today. Registration also includes New Product and New Packaging Showcases and awards, a General Session keynote address, Let’s Tech presentations, and AAPEXedu sessions, including a Service Professionals Program and a REMANedu Conference. With an AAPEX badge, buyers have the opportunity to network with 44,000 targeted buyers and visit the SEMA Show, a separate event taking place in Las Vegas

the same week as AAPEX. The fee for registering via fax or mail, instead of online, is $65 (US) through October 13. After that date, online and onsite registration will be $90 (US) and $115 (US) for fax or mail registrations.

Registration for approved and credentialed media is free and can be completed at www.aapexshow.com /media.

In addition to registering early for AAPEX, attendees also should reserve their hotel rooms now for discounted rates at www.aapexshow .com/rooms. Attendees are encouraged to use only onPeak, the official hotel partner of AAPEX, to ensure the lowest rates at conveniently located hotels in Las Vegas.

Approximately 158,000 automotive aftermarket professionals from more than 140 countries are projected to be in Las Vegas during AAPEX and the SEMA Show.

AAPEX is co-owned by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA), the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA).

For more information, visit www .aapexshow.com.

YANG Announces Next Step Program Scholarship Winners

The Young Auto Care Network Group (YANG) has announced the 2017 Auto Care Association Next Step Program honorees. Eleven young industry professionals will receive $1,100 scholarships to attend Auto Care Association Spring Leadership Days, May 3-5 at the Grand Hyatt in San Antonio, Texas.

sociation and various aspects of the industry work. Scholarships are made possible by the support of the Automotive Warehouse Distributors Association (AWDA), the Manufacturers’ Representatives Council and YANG.

The 2017 recipients are:

Erin Anderson, BBB Industries Hunter Brack, Hirsig-Frazier Company Inc. Isabel Burton, The NPD Group Kyle Ryan Byrne, Arnold Motor Supply Chris Castillo, tascosalesreps Jonny Dykstra, Auto-Wares Group of Companies Mario Garza, XL Parts Angela Golden, NGK Spark Plugs Charlotte Grimmett, Aftermarket Auto Parts Alliance, Inc. Sam Pennington, Valvoline Nolan Sponseller, Best One Tire of Upland

The Next Step Program offers future leaders in the auto care industry opportunities to experience how the as-

“These young people are our industry’s future and it is important for them to witness in person how thought leaders come together to discuss strategy and the direction of the auto care industry,” said Bill Hanvey, president and CEO, Auto Care Association. “The Next Step Program allows participants the chance to see the value of volunteering their time and expertise to participate in their industry’s trade association.”

More information about the program can be found at www.autocare .org/yang.

I-CAR® Honors Chuck Sulkala With Lifetime Contribution Award Chuck Sulkala, past chairman of the I- Chairman, Collision Industry ConferCAR International Board of Directors, ence (CIC) and chairman of numerwas awarded the Lifetime ous CIC committees Contribution Award in recogFounder, President and curnition of his years of dedirent Executive Director, cated leadership and service National Auto Body Counto I-CAR, and his passion cil (NABC) and commitment to excelVice-Chairman, I-CAR Edlence in the collision indusucation Foundation, now try. This award was presented the Collision Repair Educaat the recent 2017 I-CAR Voltion Foundation, and curChuck Sulkala unteer and Instructor Conferrent Trustee Emeritus file photo ence held in La Jolla, CA. Collision Division Steering “Chuck is still active on several Committee, Automotive Service AssoBoard Committees for both I-CAR and ciation (ASA) the Collision Repair Education Founda- Board of Directors, Collision Industion,” said I-CAR International Board try Foundation of Directors Chairman Jim Roach.

“His knowledge of the industry, I-CAR As a speaker and consultant, Sulkala and overall governance makes him a has been featured at NACE on more tremendous asset.” than 10 different occasions, and has Since taking over his family- been an educational consultant and owned business 45 years ago, Sulkala speaker for companies as diverse as has held a number of industry leader- 3M, Dawn Enterprises, AKZO Coatship positions, including serving as: ings, CARSTAR Automotive, CCC Information Services, Body Shop Chairman, Inter-Industry Conference Video, DuPont Refinishes, Processon Auto Collision Repair (I-CAR) Claims, Sherwin-Williams AutomoChairman, I-CAR Canada tive, Injury Sciences, CompEst Inc., President, Massachusetts Auto Body Modine Manufacturing, Auto Watch, Association (MABA) Verifacts, Proliance Int., I-CAR, and Chairman, Society of Collision Re- Allstate Insurance. He has conducted pair Specialists (SCRS) over 150 three-day seminars across

62 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

North America in the 3M/ARMS Management Workshop program.

Sulkala has been honored as “Man of the Year” by the Massachusetts Auto Body Association and “Collision Executive of the Year” by BodyShop Business magazine, and received the “Industry Achievement Award” from SCRS. He was also named Honorary Life Member of NABC; a Hall of Eagles recipient; recognized with the ASA 2001 Humanitarian Award, and Automotive Body Repair Network (ABRN) recognized him as one of the Collision Industry’s 25 Movers and Shakers of the 20th Century. He was the first recipient of the Collision Industry Conference Chairman’s Award recognizing a lifetime of service to the collision industry.

In addition, he has also been recognized by both ABRN and SCRS for lifetime achievement awards.

“Chuck has always been willing to go the extra mile for our industry,” said I-CAR CEO & President John Van Alstyne. “He was very involved with our Professional Development Program transition a few years back; bridging the gap between I-CAR and repairers to ensure we got the program right. Chuck’s decades of support for I-CAR and the entire industry have had a tremendous and lasting impact.”

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Global Finishing Solutions Adds to the Refinish Team

Global Finishing Solutions (GFS) is proud to welcome Chassis Liner Supply, Purified Air and Quality Finish Services to the GFS Auto and Truck Refinish distribution team.

These new distributors expand the company’s ability to provide service to automotive and truck refinish customers in Minnesota, southern Texas, western Pennsylvania and Maryland.

Chassis Liner Supply, Purified Air and Quality Finish Services come to GFS with great opportunities for building new customer relationships in their respective markets. Prior to joining the GFS Refinish team, these companies have built a strong customer base and are experienced at supplying and servicing a wide variety of automotive repair equipment.

“GFS is committed to providing the highest level of service and support to our customers through the finest distribution network in the world,” a statement from the company read.

“We are confident that customers in Minnesota, southern Texas, western Pennsylvania and Maryland will benefit greatly from increased access to technical support, parts, filters and a wide range of GFS products. Visit www.globalfinishing.com.

Enterprise Holdings Increases Support of SCRS; Established New Corporate Membership Enterprise Holdings Inc. has been announced as the newest Corporate Member of the Society of Collision Repair Specialists (SCRS), upgrading from a Company Membership which has been in place since 2013. Enter-

prise Holdings, through its regional subsidiaries, operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands and delivers a comprehensive portfolio of transportation solutions, including car rental, car sharing, vanpooling, car sales, truck rental, online ride-matching and affiliated fleet management services.

“Our company was founded on a set of values, and one of those centers around the success we’ve experienced through listening to our customers and always looking for new ways to meet their needs,” said Dan Friedman, Assistant Vice President for Enterprise Holdings’ Insurance Replacement Division (Collision Industry) in North America. “I think collaborating with

a well-connected organization like SCRS provides an amazing opportunity to hear from a wide cross section of customers and, in turn, become a better informed and more valuable industry partner.”

Collaborative work in an effort to create a more informed industry isn’t a new objective for SCRS and Enterprise, but rather an ongoing approach that both groups have worked to cultivate.

“We’ve seen the benefits that come from bringing everyone’s strengths together,” added Friedman.

“We think the industry and our mu-

tual customers benefit even more with increased collaboration among all of the various stakeholders in our industry.”

“It’s always rewarding to have such respected entities within the industry both offer more support to the

ASA Promotes National Car Care Month www.autobodynews.com

The Right Parts. A Perfect Fit.

The Automotive Service Association (ASA) is celebrating April as National Car Care Month by supporting the national “Be Car Care Aware” public service campaign by

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the Car Care Council. The monthlong campaign is a national effort by industry-leading organizations to draw attention to the importance of having consumers get their vehicles professionally checked and serviced in preparation for the summer travel season.

ASA’s support of the campaign includes distributing information in its publications and online media and encouraging its 16 affiliated organizations to promote the campaign in member-shops across the nation.

“National Car Care Month in April is a great opportunity for ASA members to take advantage of the national exposure and reach out to their customers to explain the importance of proper vehicle mainte-

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work we undertake on behalf of our members, as well as actively seek more opportunities to collectively put our unique resources to work,” offered Andy Dingman, SCRS Chairman. “As the challenges the industry faces evolve, having organizations like Enterprise as a highly participatory member opens up the types of constructive dialogue that can take place, and solutions we can explore.

This may present itself in a variety of ways, and we are interested in the potential.”

“Technology is only going to become more complex and more critical to our mutual success in both the near and long term,” added Friedman. “We believe collaborating with SCRS on a variety of fronts has the potential to produce significant upside for the industry, and we are excited at what can be.”

Through its direct members and 40 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles.

Additional information about SCRS including other news releases is available at www.scrs.com.

nance,” said Tony Molla, ASA vice CHECK IT OUT! president.

“The resources available through the Car Care Council can help set up an event providing free check lanes for consumers to have their vehicle inspected for common problems and provide an opportunity to demonstrate the value those businesses provide to their local communities.”

Additional information about To advertise the campaign and the Car Care call Advertising Sales at: Council is available at www.car800-699-8251 care.org, including in-depth vehicle service information and videos. By e-mail: following the Car Care Council on advertising@autobodynews.com Facebook, Twitter and YouTube, motorists will receive quick car care www.autobodynews.com tips and reminders.

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www.autobodynews.com | MAY 2017 AUTOBODY NEWS 63

Automotive Management Institute Honors Class of 2017

The Automotive Management Institute (AMi), the industry’s leading provider of management education for automotive service and collision repair professionals, held its annual graduation ceremony March 4 at the Overland Park Convention Center in Overland Park, Kan.

The ceremony honored the 23rd class of Accredited Automotive Managers (AAMs). The graduating class of 2017 includes 3 automotive service and collision repair professionals who earned the Institute’s prestigious AAM designation by successfully completing AMi courses and accumulating a minimum of 120 credits.

This year’s event also recognized 40 members of its second graduating class of Accredited Master Automotive Manager (AMAM) designation by successfully completing AMi courses and accumulating a minimum of 180 credits.

The Automotive Management Institute collaborates with training providers across the industry aligning training

courses into comprehensive educational curricula, that when completed, results in professional designations and certificates.

The education represented by these programs have proven to make positive impacts on business KPI scores and overall profitability. AMI courses concentrate on seven core areas of business management education: financial management, sales & marketing, operational management, HR and personnel development, IT management, risk management and leadership.

“After 25 years of offering AMiapproved classes at the VISION HiTech Training & Expo event each year, it was truly an honor to host this year’s AMi graduation during the VISION Awards Ceremony”, stated Sheri Hamilton, AMi Chairperson and VISION Conference Manager. “This year’s graduates join an elite group of automotive service professionals that have proven their dedication to improving their knowledge and skills within this industry.”

“It was honor to recognize and celebrate the accomplishments of these two groups of professionals during our graduation ceremony. It is also great to see the growth in the number of graduates again and we look forward to more achieving this level of professional recognition.” said AMi President, Jeff Peevy.

PARTS Act Reintroduced in Congress, Claims Motoring Consumers will Choose Quality, Affordable Crash Parts

Promoting Automotive Repair, Trade and Sales Act of 2017 (PARTS Act), was introduced in Congress April 3.

The bi-partisan, bi-cameral bills (H.R. 1879/S. 812) would expand consumer choice for automotive collision repair parts, cut costs paid by motoring consumers and insurance companies, and increase competition.

Senate sponsors are U.S. Senators Orrin Hatch (R-UT) and Sheldon Whitehouse (D-RI), and lead sponsors U.S. Representatives Darrell Issa (RCA) and Zoe Lofgren (D-CA), with

original cosponsors Reps. Blake Farentold (R-TX), Steve Cohen (D-TN), Scott Perry (R-PA) and Jim Langevin (D-RI).

The PARTS Act would narrowly amend U.S. design patent law to reduce, from 14 years down to 2.5 years, a car manufacturer’s design patent on collision parts.

“According to a study by Microeconomic Consulting & Research Associates, consumers will realize a savings of $1.5 Billion a year by having the ability to purchase high quality, but less expensive, aftermarket collision parts when their vehicles have been involved in an accident,” said Ray Pohlman, president of the Coalition for Auto Repair Equality (CARE). “The automotive aftermarket wishes to thank the House and Senate sponsors for their leadership in doing what’s right for America’s motoring consumers.

“We hope that House Judiciary Chairman Bob Goodlette (R-VA) and Senate Judiciary Chairman Charles Grassley (R-IA) will hold hearings as soon as possible in order to progress the bills for consumers,” concluded Pohlman.

NABC Opens Nominations for Awards to Recognize Professionalism and Integrity in the Collision Industry

The National Auto Body Council has announced that online nominations are now open for its Annual Awards Pro-

gram, which recognizes individuals and businesses that exemplify the professionalism and integrity of the collision industry.

“We have many heroes who work tirelessly and give generously of their time, talent and resources to promote the professionalism and integrity of our collision industry,” said Marie Peevy, Chair of NABC’s Awards Program.

“We want to hear more about these individuals, who they are, hear their stories, so that we can recognize and honor their efforts.”

Winners of the NABC awards will be announced at the Collision Industry Conference during the SEMA Show in November in Las Vegas.

Nominations are being accepted in three award categories: The Award of Distinction recognizes individuals for bravery, philan-

thropy, charity and selfless acts of kindness. It transcends the rigors of daily business to uncover those helping the world around them without a thought of recognition for themselves. Any individual, business organization, or group employed in a collision industry-related segment, such as collision repair facility, vehicle manufacturer, supplier/vendor, educator, insurer, independent appraiser or trade association is eligible to be nominated.

The Body Shop Image Award recognizes the most significant improvements made to a shop’s interior and exterior. Any body shop completing a remodeling during the calendar year 2016 is eligible to be nominated. One winner

AMi Offers Online Enterprise Rent-A-Car ARMS® Automotive Suite Training

The Automotive Management Institute (AMi) has announced a new online course, teaching the proper use of Enterprise Rent-A-Car’s ARMS® Automotive Suite. The new course, developed by Enterprise, is designed for collision repair specialists to teach them how to use the ARMS program or to improve their functional knowledge of it. “The new course is a result

of AMi’s ongoing collaboration commitment to bring relevant administrative training to the industry,” said AMi President Jeff Peevy. “We appreciate Enterprise for its support and interest in working closely with us.”

The new online course offers one AMi credit hour towards the achievement of the institute’s Customer Service Certificate, and professional designa-

64 MAY 2017 AUTOBODY NEWS | www.autobodynews.com

tions: Accredited Automotive Office Manager (AAOM), Accredited Automotive Manager (AAM), Accredited Master Automotive Manager (AMAM) and soon to be released, Accredited Collision-Repair Estimator (ACE) and Accredited Master Collision-Repair Estimator (AMCE).

In 1994, Enterprise created the Automated Rental Management System

and three runners-up will be recognized.

The Excellence in Community Service Award celebrates outstanding charitable efforts and volunteerism by collision industry individuals and businesses. The award recognizes exceptional service initiatives that improve the quality of life for individuals or the community at large.

Online nominations and more information for all three awards are available at www.NationalAutoBodyCouncil .org.

For more information on NABC Awards program, contact Marie Peevy, Awards Program Chair, at marie.peevy @automotivetrainingcoordinators.com or 630-881-7945.

(ARMS®) to help insurance companies simplify the process of managing replacement rental cars for policyholders.

ARMS data helps collision repair centers increase operating efficiencies, enhance customer service and streamline communications with insurance companies and customers.

For more information, visit www .amionline.org.

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AkzoNobel Rejects Another Unsolicited Proposal from PPG AkzoNobel has announced that it has rejected a second unsolicited, non-binding and conditional proposal of 20 March from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of AkzoNobel.

The proposal not only fails to reflect the current and future value of AkzoNobel, it also neglects to address

the significant uncertainties and risks for shareholders and other stakeholders.

The Management Board and Supervisory Board of AkzoNobel, together with their financial and legal advisors, have thoroughly reviewed the second proposal taking into consideration the interests of AkzoNobel’s shareholders, customers, employees and other stakeholders.

The revised proposal represents a

value of €88.72 (adjusted for final dividend) consisting of €56.22 (adjusted for final dividend) in cash and 0.331 PPG shares, as at 20 March 2017, per AkzoNobel share.

The proposal does not address the concerns expressed by the Boards in their initial rejection of 9 March 2017.

The revised proposal:

1. Is not in the best interests of shareholders. It substantially undervalues AkzoNobel and fails to reflect the value creating opportunities of the new strategic direction and focus for both the Specialty Chemicals and the Paints and Coatings businesses, allowing them to build further on their respective leadership positions.

2. Contains significant risks related to the increased stock component and the high leverage of the proposed combined businesses.

3. Would result in a large number of substantial divestitures due to the major geographical and segment overlap of both companies across Decorative Paints and Performance Coatings, bringing into question value leakage.

It does not address the significant risk and uncertainty, including timing, of

TechnaGlass Purchases Ohio and Utah Franchises

TechnaGlass has reported that it has purchased the Cincinnati, Ohio and St. George, Utah franchises of TechnaGlass as part of its strategy to operate and develop company-owned units.

In Ohio, Joe Dills, the former TechnaGlass franchisee, will remain with the company and will oversee sales and marketing as Area Development Manager. The company will retain all employees and continue operations in Milford, Ohio. In St. George, Utah, TechnaGlass will also continue to operate at its current location and with existing staff.

These transactions are part of the company’s strategy to accelerate its growth through the acquisition of existing franchises in addition to rapid, regional corporate expansion.

“These deals allows us to accelerate our plans to open TechnaGlass retail locations throughout the country that are corporate-owned and operated,” said Troy Mason, CEO and Founder of TechnaGlass. “We anticipate opening new locations in Ohio and Kentucky in the near future.”

TechnaGlass provides high quality auto glass repair and replacement services in 11 states and 42 retail locations, along with its fleet of dis-

patched mobile technicians. TechnaGlass has serviced over 2 million customers since its inception in 1991 by providing outstanding customer service and guaranteeing its workmanship.

In addition to a large retail consumer base, TechnaGlass provides services to a diverse commercial account base including auto dealerships, municipalities, school systems, car rental firms, and fleet services companies. TechnaGlass is accredited by every major insurance provider, allowing direct billing and electronic reimbursement of claims, which is hassle-free for consumers.

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For more information, visit www .technaglass.com.

deal completion due to extensive antitrust concerns. These anti-trust issues would have a significant negative impact on employees and customers which will affect the integrity of AkzoNobel.

4. Will lead to significant job cuts.

It includes synergies which can be expected to result in the restructuring of

the combined employee base, leading to job losses. PPG provides no substantive commitments to employees, creating potential uncertainty for thousands of jobs worldwide.

5. Does not address fundamental stakeholder concerns and uncertainties, nor does it substantiate any tangible solutions in relation to, among others, R&D, pensions and employees.

6. Does not meaningfully address our concerns regarding community

contribution and sustainability and the significant culture gap between both companies, including how any issues arising from this would be addressed.

The unsolicited proposal does not warrant AkzoNobel’s engagement with PPG. The Boards unanimously reject PPG’s revised proposal.

Ton Büchner, CEO, AkzoNobel:

“This proposal significantly fails to recognize the value of AkzoNobel. Our Boards do not believe it is in the best interest of AkzoNobel’s stakeholders, including our shareholders, customers and employees. That is why we have rejected it unanimously.

“We are convinced that AkzoNobel is best placed to unlock the value within our company ourselves. We are executing our plan, including the creation of two focused businesses and new cost structure, and believe this gives us a strong platform for continued profitability and long term value creation for all our stakeholders with substantially less execution risks.”

AkzoNobel will provide updated financial guidance and hold an upcoming investor event soon. Details of the event will be announced in due course.

2017 SEMA Board Candidates, Election Details Available

by SEMA Editors

The following is the slate of candidates vying for a seat on the SEMA Board of Directors: Chair-elect Category (one open seat) • Mitch Fogle, president and CEO, Lund International

• Dennis Weese, president, LINE-X

Voting will take place online May 10–24, 2017, and is open to current SEMA-member companies. Votes must be cast by each company’s primary contact. Details with ballots and

• Tim Martin, vice president, K&N Engineering Distributor/Retailer Category (one open seat) • Greg Adler, CEO, Transamerican Auto Parts

• Brian Lounsberry, CEO, Motovicity Distribution Manufacturers Category (one open seat) • James Lawrence, CEO, Power Automedia

• Shahriar “Nick” Niakan, president and CEO, Advanced Flow Engineering Inc. (aFe Power)

The current SEMA Board of Directors led

by Chairman Doug Evans (front center).

links will be sent to the member company’s designated primary contact beginning on April 28. Winners will be announced by May 30 and formally introduced at the SEMA Installation Gala July 28.

For more information about the 2017 SEMA Board of Directors election, contact Susan Alfonso at 909978-6671 or susana@sema.org.

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