May 2020 Southwest Edition by Autobody News

S O UTHWESTEDITI ON

AUTOBODY AZ / AR / CO / LA / NM / OK / TX / UT

Trump, Congress Agree on New Stimulus Package by Dan McCaleb, The Center Square

President Donald Trump and congressional leaders have agreed on a new, nearly $500 billion stimulus package to help small businesses im-

pacted by stay-at-home orders in response to the COVID-19 pandemic. The $484 billion deal includes $310 billion for the Paycheck Protection Program so businesses can continue paying employees. It also includes an additional $60 billion for a small business emergency grant and loan program, $75 billion for hospitals and $25 billion for a new coronavirus testing program. “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” Trump wrote See New Stimulus Package, Page 6

Colorado Gov. Polis Outlines Initial Plan for Lifting Some Restrictions The safer-at-home order does ask Coloradans to avoid unnecessary travel, strongly advises wearing face coverings in public, bans gatherings of over 10 people, and requires those who are sick to not work. Many Coloradans will return to work in the next few weeks. Others will continue to work from home, as encouraged by Governor Jared Polis. Gov. Polis announced that his stayat-home order will expire on April 26 but some restrictions will remain in place. There will be a transition period

through May 4 into what the governor called a “safer at home” set of guidelines. Polis compares the stay-at-home period as a sprint and the time ahead as the marathon. He suggests reducing daily encounters, limiting social interactions and continuing social distancing. He is allowing retail to reopen with some restrictions still in place but is extending the closure of bars and restaurants to an undecided date. Gatherings are still limited to less than 10. Offices are now able to See Colorado Gov. Polis, Page 3

PERMIT #288 ANAHEIM, CA

PAID

Change Service Requested P.O. BOX 1516, CARLSBAD, CA 92018

PRESORTED STANDARD U.S. POSTAGE Southwest_Issue_0520.indd 1

38 YEARS

AUTOBODYNEWS.COM Vol. 38 / Issue 5 / May 2020

TX Gov. Greg Abbott Announces Team to Restart the Economy, Loosens Some Restrictions by Patrick Svitek, The Texas Tribune

Gov. Greg Abbott on April 17 announced initial steps to reopen the Texas economy during the coronavirus pandemic, including those that in the next week will loosen surgery restrictions at medical facilities, allow all retail stores to provide product pickups and reopen state parks. Abbott also named a “statewide strike force” devoted to getting the economy going again. Austin banker James Huffines will chair the task force, and veteran lobbyist Mike Toomey will lead its staff.

The group will oversee what Abbott described as a phased reopening, starting April 17 with additional announcements set for April 27 and sometime in May. At the same time, Abbott announced all Texas schools will stay closed through the rest of the academic year. He previously shuttered them until May 4. Abbott made the announcements during a news conference at the Texas Capitol that he began on a note of optimism. “Because of the efforts by evSee TX Gov. Greg Abbott, Page 20

Most Shops Weathering The Storm – So Far by Gary Ledoux

On April 17, 18, and 19, Autobody News used its 19,000 shop email subscribers and also social media channels to conduct a survey of collision shops across the country to see how they were coping with the COVID 19 pandemic. The majority of shops responding were independently owned singe-point shops, those perhaps the most vulnerable to volatile market swings. Despite that, and a wide range of available work, (most shops operating at 25% to 75% capacity) most seem to be faring reasonably well. The majority of shops (59%) have not laid off any workers although 21% have laid off three-quarters of their people. Most shops have taken a number of precautions to protect employees and customers including use of gloves and masks, frequent hand-washing, etc. It is surmised that not many shops think the pandemic situation will last very long because only 19% have taken on work other than traditional collision repair.

The majority of shops have applied for financial assistance through the government’s CARES Act but have not received their funds yet. The sad truth is, those funds may never come because as of this writing, the funds have been exhausted. There are, however, other measures being debated to replenish the program (see related stories.) Wayne Stevens, owner of Stevens Collision in western New York is a single-point shop, certified with FCA, Hyundai, and Kia but with no DRP arrangements. At present he hasn’t laid-off any employees because he has a two-week backlog of work. He says, “My father always told me, ‘Take care of the people that come through your door, no matter what they want, and you’ll build your business.’” Doug Hassell owns Hassell Auto Body on Long Island in New York, another single-point shop that has been in business since 1963, and has enough work to stay busy—so far. The shop has no DRP arrangements and no dealer relationships although they See Body Shop Survey, Page 18

4/21/2020 9:19:30 PM

2 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 2

4/20/2020 7:55:31 PM

Continued from Cover

CONTENTS

Colorado Gov. Polis

REGIONAL

Collision Industry Pandemic and

Colorado Gov. Polis Outlines Initial Plan for

Recovery ��36

Louisiana’s Statewide Stay-at-Home Order May be in Effect Until End of May ��14 OK Lockdown Begins; Essential Services Open ��6 Rare Hail Storm Leaves a Lasting Mark ��12 With Customers Barred from Auto Showrooms, Stevinson Dealerships in CO Cut 336 Workers ��10

Coronavirus Has Dealerships Moving to

Never be the Same ��44 First Funding for Small-Business Loans Depleted, Second Round Just Approved ��42 Ford Teams With GE, 3M to Make Ventilators, Personal Protective Equipment ��22 Ford Tests Social-Distancing Wearables ��46 Glass TEXpo™ ’20 Scheduled for May

COLUMNISTS Anderson - Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ ��35 Chess - A Quick Course on Primers ��26 Phillips - CCG Shares Body Shop Advice & “Best Practices” During Coronavirus Restrictions ��11 Yoswick - Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software ��40

Canceled ��10 Most Shops Weathering The Storm – So Far ��1 Shops Using Downtime Advantageously During COVID-19 Crisis ��32 Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles ��4 Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts ��4 Trump, Congress Agree on New Stimulus Package ��1 Used-Car Sales: Tracking the Good,

NATIONAL AutoNation to Lay Off 7K Employees, Cut Costs Deeply ��22 Business Leaders Share Thoughts About

Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today!

Online Sales—and Car Buying May

the Bad & the Options ��44 Why You Should Keep Advertising During a Major Market Downturn ��46

INDEX OF ADVERTISERS

Lifting Some Restrictions ��1

open at 50% capacity with precautions still being taken. Personal services, such as hair salons and tattoo parlors, will be able to reopen with restrictions in the “safer at home” phase.

Polis discusses being able to live in a sustainable way with precautions and not anxiety. He suggests citizens remain at home if they can and to avoid going out unless absolute necessary. Polis announced allowing Eagle County to reopen and will personally be there as the restrictions are lifted.

AUTOBODY www.autobodynews.com

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Andrew Staicer (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

American Icon Automotive Finishes �� 6

Haldon Company �� 31

Audi South Austin �� 26

Honda-Acura Wholesale Parts Dealers ��24-25

Audi Wholesale Parts Dealers �� 45

Hyundai Wholesale Parts Dealers �� 44

AutoMart Mitsubishi �� 33

Innovative Tools & Technologies �� 37

AutoNation Chrysler-Jeep-Dodge-Ram

Kia Motors America, Inc �� 17

of North Phoenix �� 23

Kia Motors Wholesale Parts Dealers �� 41

Big Mike Naughton Ford �� 33

Malco �� 19

Bill Luke Chrysler-Jeep-Dodge-Ram �� 12

Mercedes-Benz of Littleton �� 33

BMW Wholesale Parts Dealers �� 34

Mercedes-Benz Wholesale Parts Dealers �� 43

Bob Howard PDC �� 39

Mitsubishi Wholesale Parts �� 42

Bob Utter Kia �� 28

Montipower Americas �� 10

Car-O-Liner Southwest �� 5

MOPAR Wholesale Parts Dealers �� 29

Certified Automotive Parts Association �� 16

North Freeway Hyundai �� 38

Chevyland �� 30

Part of the Club �� 33

Christopher’s Dodge World �� 33

Peak Kia �� 33

Classic BMW �� 27

PPG Refinish �� 13

Classifieds �� 46

Ray Huffines Chevrolet �� 22

Covert Chrysler-Dodge-Jeep-Ram �� 18

Santa Fe Kia �� 6

Dallas PDC �� 48

SATA Dan-Am Company �� 7

Eagle Abrasives, Inc �� 15

Scoggin-Dickey Parts Center ��8-9

Emich Chevrolet �� 33

South Pointe Chrysler-Jeep-Dodge �� 14

Emich Volkswagen �� 33

Southern Polyurethanes, Inc �� 21

Equalizer Industries, Inc. �� 30

Spanesi Americas �� 11

Finnegan Chrysler-Jeep-Dodge �� 2

Stevinson Toyota West �� 33

Fisher Acura �� 33

Subaru Wholesale Parts Dealers �� 40

Fisher Honda �� 33

Toyota of Laredo �� 32

Flatirons Subaru �� 33

Toyota Wholesale Parts Dealers �� 43

Ford Wholesale Parts Dealers �� 47

Tsunami Compressed Air Solutions �� 20

Fowler Honda �� 12

Volkswagen Wholesale Parts Dealers �� 43

GM Wholesale Parts Dealers �� 35

Young Chevrolet �� 36

autobodynews.com / MAY 2020 AUTOBODY NEWS 3

Southwest_Issue_0520.indd 3

4/21/2020 9:19:43 PM

Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts by Joey Klender, Teslarati

Tesla released a video highlighting the company’s ventilator manufacturing process, which incorporates parts from its all-electric vehicles.

The video update was shared via Twitter on April 5, and shows a group of masked Tesla employees, including VP of Vehicle Engineering Lars Moravy, working in an engineering lab. Company Engineering Director Joe Mardall outlined the company’s current process of development for the ventilators, which consists of a design using Tesla car parts. The use of parts has allowed Tesla to develop machines that can assist patients in breathing while infected with the virus, while not taking away from the amount of actual ventilator parts that exist right now. The ventilator prototype uses a hospital-grade air supply system that

feeds into a mixing chamber. This combines air and oxygen to create breathable air. The air then is pressurized and fed into tubes, providing a patient with air, which alleviates their breathing issues. COVID-19 is primarily a respiratory virus that attacks a patient's lungs and breathing patterns. Ventilators also have screens that provide medical professionals with information like tidal volume

ﬂow and volume. The shortage of ventilators across the U.S. is due to a low availability of the machines. Medtronic CEO Omar Ishrak said his company has quadrupled the production of ventilators to combat the shortage. While this increased production rate has helped provide hospitals in need with additional machines, there is still a massive shortage of ventilators.

per breath, respiratory rate (usually set by a doctor to give a patient the proper amount of breathable air), and oxygen concentration. These ﬁgures will be displayed on a Model 3 dash screen powered by the vehicle’s infotainment computer and will show air pressure, air-

Tesla plans to build its in-house breathing apparatuses with car parts as a strategy to “help out the medical industry without taking away from their supply.” Mardall said in the video Tesla’s reliable car parts could help solve the shortage of ventilators, as they

are readily available and produced in high volume. As ventilators remain a rarity in some locations of the world, Tesla’s influx of available car parts could solve a big part of the coronavirus issue, as there seems to be no ceiling on how many machines the company will be able to produce. Tesla made plans to help with the production of ventilators in late March after CEO Elon Musk said he had a conversation with Medtronic’s engineering team. Tesla’s team of engineers found their company’s vehicle parts were more than capable of being used in ventilators. After Medtronic’s first Tesla-purchased ventilators arrived in New York City on April 3, the company has shifted its focus to ventilators. Vehicle production has shut down at the company’s Fremont, CA, facility and Tesla’s engineering team has turned its focus to the health care field. Its preparation of the first Tesla ventilator prototype is evidently well under way. We thank Teslarati for reprint permission.

Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles With each new model, Subaru of America, Inc., makes advancements in technology that assist in the operation and safety of our vehicles. These advancements incorporate different sensors, cameras and control units, as well as other components, to assist with the functionality of the vehicle. They are a critical part of vehicle operation and the safety features in each Subaru vehicle. In the event of a collision, these components could incur damage, which may trigger diagnostic trouble codes (DTC), but may not be evident via a warning light on the instrument cluster. Subaru defines a collision as damage that exceeds minor outer body panel cosmetic distortion. During collision repairs, it is critical the proper function of these systems and features be restored back to pre-accident condition and performance. If these components are not evaluated, it could have a direct effect on vehicle operation and safety. For Subaru vehicles from model year 2004 and forward involved in a collision, Subaru collision repair procedure requires pre-repair scanning be performed.

Pre-scanning will reveal DTCs for items not functioning properly in the vehicle. It allows a shop to identify any issues early in the estimate process, allowing a more complete estimate and encompassing repair process. Additionally, Subaru collision repair procedure also requires post-repair scanning be performed on these vehicles. Post-scanning is critical in ensuring the malfunctioning items have been repaired and there are no remaining DTCs. It may also assist in assuring the appropriate calibrations and reinitializations have been performed. To accurately determine whether DTCs are present in a vehicle, Subaru recommends the use of the Subaru SSM4 diagnostic tool. Information regarding the purchase of the Subaru SSM4 diagnostic software application and Denso DST-i interface device can be found in the Subaru Technical Information System (STIS) at https://techinfo.subaru. com/Information/Special Tool Information. If a Subaru SSM4 diagnostic tool is not available, Subaru recommends the use of an asTechTM device. The asTechTM device per-

forms a diagnostic scan remotely using a genuine Subaru scan tool. Information regarding the purchase of the asTechTM tool can be found at https://astech.com/. Subaru does not recommend the use of a generic scanning device as we cannot guarantee the content or accuracy. Always refer to the applicable Subaru Service Manual or Technical Service Bulletin (TSB) for the most up-to-date repair procedures. Some safety and driver assistive systems will require inspections, calibration and/or aiming after collision or other body repairs. Any time a collision repair is performed, always refer to the appropriate Body Repair Manual and Service Manual for the most up-todate repair procedures. All Subaru technical information including Body Repair Manuals, Service Manuals, TSBs and more are available for purchase in STIS at https://techinfo.subaru.com>Log in/ My Account > Purchase a Subscription. Subscription options are listed on the site. If a collision repair is necessary, Subaru strongly recommends any repairs be performed by a Subaru Cer-

tified Collision Center using Subaru Genuine Parts designated for use in the specific Subaru vehicle being repaired, including all mechanical and electrical parts, body panels and structural components. Subaru Genuine Parts are manufactured to the same specifications and tolerances as the parts installed on factory new Subaru models. The use of Subaru Genuine Parts will help ensure the vehicle is restored back to its original pre-collision condition. The use of non-OEM components that may not be manufactured to the same specifications or tolerances as Subaru Genuine Parts could compromise occupant safety in a subsequent collision. The use of any aftermarket or substitute structural, body, mechanical or electrical repair parts is not covered under the Subaru of America, Inc., limited warranty, replacement parts limited warranty or Subaru Added Security (SAS) agreements or contracts. Subaru of America, Inc., is not responsible for any resultant damage caused by the use and/or installation of any aftermarket substitute part(s). Source: Subaru of America, Inc.

4 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 4

4/21/2020 9:20:04 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 5

Southwest_Issue_0520.indd 5

4/20/2020 7:55:32 PM

OK Lockdown Begins; Essential Services Open by Keri Thornton, Tahlequah Daily Press

Officials with the City of Tahlequah and Cherokee County in Oklahoma ordered a “shelter-in-place” partial lockdown beginning 11:59 p.m. March 25, after Northeastern Health System confirmed a positive case of COVID-19 on March 24. Oklahoma Gov. Kevin Stitt had ordered all non-essential businesses in counties with confirmed COVID-19 cases to close for 21 days starting at that time. According to the Oklahoma State Department of Health, non-essential businesses are those that provide items or services that are socially driven. Officials said since Cherokee County is home to many government services, the lockdown will not be much more restrictive than the one they ordered last week. “Personal appearance” businesses like hair salons, barbershops, tattoo parlors and body piercing shops are considered to be non-essential. Establishments for entertaining—such as movie theaters bowling alleys, sporting events, bars, clubs and concert venues—will be closed.

The Department of Homeland Security released a guidance list that identified essential critical infrastructure workers. The list encouraged employees to work from home when possible and to delay non-mandatory activities.

Looking over an amended executive order March 25 were, left to right, District 1 Commissioner Doug Hubbard, District 2 Commissioner Mike Brown and District 3 Commissioner Clif Hall. Credit: Keri Thornton

“When continuous remote work is not possible, businesses should enlist strategies to reduce the likelihood of spreading the disease,” the guide said. Workers in health care and public health, law enforcement, public safety, first responders, food and agriculture, energy, water and wastewater, transportation and logistics, public works, critical manufacturing

and financial services are considered essential. So are grocery stores, pharmacies, convenience stores, restaurants (curbside or delivery only), auto repair, services banks, hospitals, walk-in health facilities, veterinarians, research and laboratory services, newspaper/ media, airports and funeral homes. Several area residents asked for specifics about “gray area” services. A swimming pool service, for example, might not fall under the restriction since pools can have therapeutic value, and a service person would be at a private residence. That would also apply to plumbers and HVAC services, as well as electricians. It would further cover lawn care services and other work than can be done by one or two people, at private homes. While auto service repair and tire shops could be deemed essential, auto body detailing would not be. As far as gun and ammo shops, State Rep. Matt Meredith, D-Tahlequah, said he believes those shops can remain open, given they are considered services to augment public safety and personal protection. The Cherokee County commis-

sioners gathered with other officials in a “call of the chair meeting” to discuss COVID-19 on March 25. The courthouse is still on partial lockdown with limited access to the public. District 2 Commissioner Mike Brown said most of Tahlequah is going to remain open, but with very limited access. Day cares and child care facilities are essential and will remain open, but commissioners said if parents are able to work from home, their children need to also be at home so day cares are not overwhelmed. “If you’re supplying a need to an essential employee who has to go to work and who has a child, then that makes you essential to that employee,” said District 3 Commissioner Clif Hall. For a full list of businesses considered essential, visit www.cisa.gov /publication/guidance-essential-critical -infrastructure-workforce. Anyone with questions can contact a member of the task force or the Tahlequah Daily Press, and staffers will try to find the answer. We thank the Tahlequah Daily Press for reprint permission.

Continued from Cover

New Stimulus Package on Twitter Tuesday. “We have a deal, and I believe we will pass it today,” Senate Minority Leader Chuck Schumer told CNN. The U.S. Chamber of Commerce heralded the news in a statement. “We applaud congressional leaders and the administration for reaching a deal to increase desperately needed funding to support America’s small businesses during this difficult time,” said Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce. “Every hour of every day, small businesses across the country are being forced to make difficult decisions due to the significant revenue disruptions caused by the coronavirus.” We thank The Center Square for reprint permission.

SANTA FE Kia

1701 Saint Michael’s Drive Sante Fe, NM 87505

505-982-1957

M-F 7:30am – 5:00pm Sat 8:00am – 12:00pm n n

Wide Delivery Area Competitive Pricing

www.autobodynews.com 6 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 6

4/21/2020 9:20:19 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 7

Southwest_Issue_0520.indd 7

4/20/2020 7:55:32 PM

Call Us First For All Your Parts Scoggin-Dickey Chrysler Dodge Jeep Ram 2483 W. Highway 114 Levelland, TX 79336

Toll Free: 800-888-4251 Local: 806-798-4013 Mon-Fri: 7:30 - 6:30 Sat: 8:30 - 12:30

8 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 8

4/20/2020 7:55:34 PM

Choose Genuine GM Parts

Scoggin-Dickey Chevrolet Buick 5901 Spur 327 › Lubbock, TX 79424 Mon-Fri: 7:30 - 6:30 • Sat: 8:30 - 12:30

Parts Toll Free: 800-888-4251 Parts Local: 806-798-4013

Competitive Wholesale Prices

Scoggin-Dickey ISUZU

Large Inventory of Subaru OEM Parts

Scoggin-Dickey Subaru

5901 Spur 327 › Lubbock, TX 79424 Mon-Fri: 7:30 - 6:30 • Sat: 8:30 - 12:30

Parts Toll Free:

Parts Local: 806-798-4013

800-888-4251

800-888-4251 autobodynews.com / MAY 2020 AUTOBODY NEWS 9

Southwest_Issue_0520.indd 9

4/20/2020 7:55:36 PM

With Customers Barred from Auto Showrooms, Stevinson Dealerships in CO Cut 336 Workers by Aldo Svaldi, The Denver Post

Stevinson Automotive dismissed 336 workers at six dealerships across metro Denver on March 30, according to filings made with the Colorado Department of Labor. They include 93 workers at Stevinson Toyota West in Lakewood; 73 workers at Stevinson Toyota East in Aurora; 71 at Stevinson Lexus of Lakewood; 34 at Stevinson Lexus of Frederick; 33 at Stevinson Chevrolet West in Lakewood; and 32 at Stevinson Imports in Littleton. Those layoff notices, made under the Worker Adjustment and Retraining Act, may represent only the tip of the iceberg in the auto retail industry. Tim Jackson, president of the Colorado Automobile Dealers Association, estimates that between 8,000 to 9,000 auto retail workers are at risk of losing their jobs. “Our sales offices are completely closed down. We can only do online sales with home delivery,” Jackson said. “We can’t use all of the sales people because we can’t have

the showrooms open.” Dealerships can keep service bays and parts departments open, but even those are running at reduced capacity as households hunker down under a statewide shelterin-place order that started on March 26. Stevinson Toyota West, for example, let go of 14 lube techs and four parts drivers. When China shut down its economy to contain the novel coronavirus, auto sales dropped 92% in February, Jackson said. And while restrictions aren’t as extreme in the U.S., auto sales are expected to be down significantly. They were already soft heading into the year, with new vehicle registrations down 2.8% from 2018, the first annual decline in three years, according to CADA. The Coronavirus Aid, Relief and Economic Security or CARES Act passed last week contains something called the Paycheck Protection Program that allows small businesses with 500 or fewer employees to obtain a loan of up to 2.5 times the monthly payroll. Portions of that loan, which

Glass TEXpo™ ’20 Scheduled for May Canceled

carry an interest rate of 4%, can be forgiven if the proceeds are used to keep workers employed. Jackson said Stevinson Automotive had more than 500 employees and didn’t qualify. But his hope is that smaller dealerships will take advantage, allowing them to have staff in place to deal with pent-up demand whenever the economy reopens. Other WARN notices posted March 30 were for the Embassy Suites & Hilton Garden Inn in Boulder, which informed the state it was letting go of 126 workers March 27, and the Holiday Inn Denver East Stapleton, which said it had dismissed two dozen people. Welk Resorts, which operates timeshare properties in Breckenridge and Vail, said it had laid off 29 workers as of March 20. They join a growing list of hotels and resorts the state that have either shut down or trimmed staff significantly due to lower occupancy because of the outbreak.

Glass TEXpo™ ’20, scheduled for May 1-2, in San Antonio, TX, has been canceled due to the current worldwide health emergency surrounding COVID-19. “We are working on alternative dates and will announce them once they are finalized,” said Tina Czar, director of exhibits/events. “We hope to make the transition as easy as possible for all exhibitors and attendees. Health and safety will always be the top priority.” Glass TEXpo is one of the largest regional glass expositions in the country. It is co-sponsored by the Texas Glass Association and USGlass magazine. For additional information on Glass Expos events, visit glassexpos.com and send questions to info@glassexpos.com. We thank glassBYTEs.com for reprint permission.

We thank The Denver Post for reprint permission.

www.autobodynews.com

UPDATED DAILY

10 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 10

4/20/2020 7:55:37 PM

with Stacey Phillips

Tips for Busy Body Shops

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

CCG Shares Body Shop Advice & “Best Practices” During Coronavirus Restrictions When the news first broke about the “CCG was founded on a simple pandemic, the leadership team at Cer- premise established by our founders, tified Collision Group (CCG) recog- to level the playing field for the inwithofStacey Phillips nized the importance finding ways dependent collision repair operator,” to support their network of 446 inde- said Jeff Ingalls, VP of marketing at pendent body shops. CCG. “We do so by partnering with “We quickly realized that the only the best independent repairers, more information we can share, the vendors, insurers and OEs. This alignbetter off we’re all going to be,” said ment and partnership drive value for Marty Evans, COO of CCG. “This all while delivering the ultimate goal is true for our affiliate shops as well of providing the highest quality OE with Victoria Antonelli as the industry as a whole.” Certified repair on behalf of the cus CCG was founded in 2014 by tomer.” four individuals passionate about the Since the onset of the coronacollision repair industry: Marc Se- virus restrictions, Evans said they bastian, CEO of four Blake’s Auto learned early to provide their shops Body shops in Northern California; with as much information as possiBill Lawrence, with owner of 1st Cer- ble. As a result, CCG has regularly Ed12Attanasio tified Collision facilities in Southern sent out online newsletters to all of its California; Luis Alonso, president of affiliates with facts and advice about seven Pan American Collision Cen- the coronavirus as well as tips to help ters in the San Jose, CA, area; and body shops run safely and effectively. “Our goal is to communicate Tom Adams, owner of TAG Market- ing. with them in an authentic, genuine

My SEMA

Shop Strategies

Product Innovation

OE Shop Certification

way so they know we are here for them,” said Ingalls. “We have been providing tangible, pragmatic information in a way that isn’t inundating and flooding their inboxes.” This includes links to many resources, such as the Center for Disease Control and Prevention (CDC); local, state and county health department websites; and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. CCG has created a summary document with CARES Act Highlights. To assist affiliate shops considering applying for a loan, CCG is sharing information about COVID19loans.org. The new service was started by Brad Mewes, owner of Supplement Advisory, to help shops understand the opportunities available and file the required paperwork. Ingalls said these suggestions and tools are aimed to help their affiliates through these trying and demanding

times. “The health and well-being of the shops is something that CCG takes very seriously,” he said. In addition to forwarding communication via email, CCG has also continued the practice of communicating with shops via phone. Rather than the usual weekly call, Evans said they are talking daily to connect. “COVID-19 has changed our normal day-to-day conversations but our staff is still hard at work,” said Evans. He said it’s advantageous for any organization to communicate more frequently at this time, to keep a positive energy and outlook. “If we allow people to truly self-isolate and shut off communication, we all know that it’s a leading indicator to negative results and depression can set in quickly,” he said. See Body Shop Advice, Page 16

with Gary Ledoux

Product Innovation with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

autobodynews.com / MAY 2020 AUTOBODY NEWS 11

Southwest_Issue_0520.indd 11

4/21/2020 9:20:34 PM

Rare Hail Storm Leaves a Lasting Mark by Doug Davison, The Houston Herald

Following the surprise hail storm that dropped huge balls of ice in parts of Texas County on the evening of March 27, almost every resident of the area—whether long-time or new—was in shock over a weather-related event they had never before experienced. And the storm’s aftermath resulted in a lengthy recovery period that’s still in progress. Many area businesses were greatly affected by the calamity caused by the heavy, rock-hard projectiles from the sky, not the least of which are insurance companies, glass companies and automotive dealerships and repair shops. “I’ve never seen hail like that, and I’ll have lived here 58 years in July,” said Rick Dixon, co-owner of Piney River Ford (PRF) in Houston. “I’ve lived through three direct hits by tornadoes, but I don’t think they did as much damage as this hail storm.” All but three of 49 new vehicles on the lot at PRF were damaged, and the three that were spared were indoors in the showroom. Three new vehicles were totaled out by Ford Motor Co. insurance adjusters, and several pre-owned vehicles also received blows. Dixon said the estimated the cost of damage to vehicles was about $400,000. “Out of all the vehicles we have here, only half a dozen windshields didn’t get broken,” he said. “The building also got hit—it broke the windows out of the garage doors and the hail damage unexpectedly created a positive situation for prospective PRF customers. “It’s going to be a really good time to buy a new vehicle for people who aren’t concerned about a few dents or dings,” Dixon said. “They’ll get a lot of money off.” Not surprisingly, the dealership’s body shop is as busy as ever. “We’re just asking people to be patient,” Dixon said. “This won’t be a quick process because there are so many.” “It’s increased business about 100%,” said PRF body shop manager Scott Kohl. “It’s keeping us busy. It’s definitely different.”

Dixon said the public’s reaction immediately after the storm was a pleasant surprise. “We probably had 50 people come up here asking what they could do to help,” he said. “We appreciate that and we’d like to help them back.”

ing counties. He said he truly dislikes having a boost in business caused by other peoples’ hardship. “I stay busy as it is,” he said, “and I take absolutely no pleasure in the circumstances I find myself in profiting from other folks’ disaster. I have been receiving a flood of calls from Seymour to Raymondville, and many of these people don’t have full coverage insurance. “This is very sad, as many folks find themselves out of work because of this coronavirus, and the timing of such an event—although never good—is obviously rather pointed right now— pointed as in a pitchfork or Mike Jones, of Mobile Auto Glass in Simmons, TX, knife.” prepares to replace a windshield on a 2012 Ford Focus Of course, with all the at Piney River Ford in Houston. All but four of the vehicles on the dealership’s lot sustained damage from the major damage to vehicles, buildhail storm that passed through part of the area March 27. ings and other possessions, Credit: Doug Davison local insurance companies Traveling around these days, it’s are bearing a much heavier load than easy to notice vehicles in many loca- usual. Houston State Farm agent Justions with tarps covering the space where their windshields or back win- tin Shelby said as of the middle of dows used to be. Replacing glass in that many vehicles is a daunting task. “I’ve been putting in windshields for 30 years and I’ve seen a lot of hail damage,” said Mike Jones of Mobile Auto Glass, “but I’ve never seen anything as widespread as this.” Jones has worked on several vehicles at Piney River Ford and said he’s doing seven or eight windshield replacements per day. “Trying to keep up with this is like trying to drink from a fire hose,” he said. “It’ll take months to take care of everything.” Sam Wetzel, of Ozark Glass & Mirror in Houston, has also been busier than ever replacing windshields. “It’s pretty much overwhelming,” Wetzel said. “Business was slow because of the coronavirus, and now it’s up more than 250%. It’s crazy, but most people seem to be pretty understanding. “But it makes me wonder if we won’t end up facing a shortage of glass at some point.” Jones typically works all over Texas County and in several surround-

last week, more than 360 new claims had been filed due to the hail. “And we expect that number to keep rising over the next few days and weeks,” Shelby said. “Locally, we haven’t seen a storm like this in many years.” Shelby said State Farm’s National Catastrophe Team was deployed and was in Texas County to assist customers to recover from the historic event. “This is very different for us trying to follow social distancing guidelines due to COVID-19,” Shelby said. “We’re trying to find new ways to help service our customers with virtual inspections and drones to inspect damage. Of course, we are still doing physical in person inspections as well.” During an already abnormal period caused by the coronavirus, the hail simply compounded the disruption in many peoples’ lives. “Most of our customers have never seen anything like this,” Shelby said. “Everyone just seems to want See Rare Hail Storm, Page 14

FOWLER HONDA

955 North Interstate Dr. Norman, OK 73069

866.369.5376 405-573-5719 parts@fowlerhonda.com

M-F 7am-9pm Sat 8am-4pm n n n n

Wide Delivery Area Competitive Pricing Large Inventory Honda Certified Staff

12 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 12

4/20/2020 7:55:37 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 13

Southwest_Issue_0520.indd 13

4/20/2020 7:55:37 PM

Continued from Page 12

Louisiana’s Statewide Stay-at-Home Order in Effect Maybe Until End of May by Charitee Blackmon, KAIT News

The statewide stay-at-home order issued by Louisiana Gov. John Bel Edwards is in effect now. It will be in place perhaps through the end of May. Gov. Edwards issued the order March 22, after showing Louisiana’s statistics of the coronavirus spread.

Credit: Vexels.com

Louisiana has the fastest growth rate of the coronavirus in any state or country in the world. The number of cases in Louisiana is now 1,172, resulting in 34 deaths. The virus has spread to 41

of 64 parishes. In Northwest Louisiana, only seven parishes have confirmed patients, however, there are zero deaths reported. “We have taken aggressive measures to mitigate the spread of COVID-19 and flatten the curve; however, this is not enough. As our number of cases continues to grow, I am directing all Louisianans to stay at home unless it is absolutely necessary for you to leave,” said Edwards. The stay-at-home order does not include essential workers. The following information is from the governor’s website. Examples of Essential Worker Functions under the Cybersecurity & Infrastructure Security Agency (CISA) guidelines include: ‣ Healthcare workers and caregivers ‣ Mental health and social service workers ‣ Pharmacy employees ‣ Workers supporting groceries, pharmacies and other retail sales of food and beverage products ‣ Restaurant carryout and quick-

serve food operations and food delivery employees ‣ Farm workers ‣ Electricity and utility industry employees ‣ Critical manufacturing employees (medical supply chains, energy, transportation, food, chemicals) ‣ Petroleum, natural and propane gas workers ‣ Transportation and logistics workers ‣ Communications and information technology employees ‣ Financial services and banking industry employees View the proclamation here http:// media.graytvinc.com/documents/ JBE-33-2020.pdf There is no curfew put in place at this time as Edwards left it up to local government officials. Edwards also noted Louisiana borders are not closed. We thank KAIT News for reprint permission.

www.autobodynews.com

Rare Hail Storm things to go back to normal as soon as possible. Our catastrophe team is doing everything we can to get our customers vehicles, homes and businesses repaired as soon as possible.” Shelby recommends care and caution in choosing contractors and repair facilities. “There are many companies coming from out of town or even out of state,” he said. “While they may do good work, if they’re not a local company it could be hard to get them to come back and stand behind their work.” We thank The Houston Herald for reprint permission.

LIKE US ON

FACEBOOK: Autobody News

14 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 14

4/21/2020 9:31:07 PM

soon m is our busible.â&#x20AC;? and and

nies n out may a loo get hind for

autobodynews.com / MAY 2020 AUTOBODY NEWS 15

Southwest_Issue_0520.indd 15

4/20/2020 7:55:38 PM

currently with a dealer service manager,” said Reichen. “More than ever, safety is in the forefront of everyone’s mind. That said, we should segue our Rather than have employees rely conversations from how we are proon the local news for information, tecting our clients’ vehicles before and he recommends letting them know after drop-off to prevent the virus to where the shop owner stands, what how important a certified repair prothe expectations are at the workplace tects the clients’ safety for the years and the potential impacts. ahead.” “Communication is huge and Sean Guthrie, director of opertransparency is key,” said Evans. ations at Car Crafters in New Mexi“Nothing is worse than a surprise. co—another CCG affiliate—said his family was born and raised in Albuquerque and considers it their home. The company is partnering with local restaurants to serve lunch to their team, which he said helps support the local community and other mom-andpop businesses. “We feel now, more than ever, supporting those who Car Crafters in New Mexico is serving lunch to their team make our home special is critin all six of their shops, which helps support the local ical,” said Guthrie. “United community together, we will get through Talk to them early and communicate these hard times.” with them often. Everyone has a per- “Through this experience, we sonal choice on how they are going to are becoming much better communideal with any adversity, and I would cators within our shops and the entire consider this to be significant adversi- repair community,” said Sebastian, ty.” co-founder of CCG. “In the immedi Evans said he is aware of only a ate, this is not about profit; it is about handful of businesses that have volun- keeping our team employed, feeling tarily closed since the stay-at-home valued and keeping our economy runorders were announced. Some fa- ning. We can do it. It starts through cilities are now instituting split consistent, daily, caring communicashifts, where half the staff works tion with our team, our customers, our in the morning and the remainder partners and even the competition. Toworks in the afternoon. gether we will emerge better, stronger, “Instead of furloughing and laying and more connected … in that I am off people, we’re seeing shops finding confident.” a way to share the work as equitably “At the end of the day, we have as possible,” said Evans. to get through it together as an indus He recommends shop owners try,” said Evans. “We’re all going to and managers stay as calm as possi- be facing similar challenges. Let’s ble and leave every conversation on find a way to share best practices and a positive note. protect our industry as a whole.” “It may not be a positive message, but let’s leave with a positive 14 COVID-19 Best Practices from thought.” the CCG team: Ron Reichen, owner of Preci- 1. Appoint a coronavirus action sion Paint & Body, a CCG affiliate in plan coordinator who will dissemiOregon, agrees. nate updated virus information, pro “I was just discussing how to tocols and policies to everyone in the stay positive and see the opportunities business. Continued from Page 11

Body Shop Advice

2. Post CDC, state and/or county information regarding the virus to educate teammates. Remember to use bilingual posts as necessary. 3. Source all products and supplies required to properly disinfect objects, buildings and vehicles, including disinfectants, hand sanitizer, bleach, soap, rags, gloves, masks, etc. 4. Be sensitive to those who are in high-risk categories and explore remote work options. 5. Require associates to stay home if they exhibit signs of the virus—fever, cough and respiratory problems—or any contagious illness such as a cold or the flu. 6. Maintain appropriate social distancing at all times. The recommendation is 6 feet. CCG’s Social Distancing in Your Shops flyer has additional information. 7. Require shop uniforms to remain at the workplace and ensure they are cleaned every day. Have employees store personal clothing in their vehicles and encourage hand washing before retrieving them. 8. Expand photo estimating capabilities, which can provide remote work for qualified writers.

9. Institute curbside drop-off and delivery and set up a secure area where customers can call or text when they arrive. Use phone, text or email for all discussions, authorizations and approvals. Consider disbanding customer pick-up and home delivery service. CCG provided a sample front door sign explaining the temporary policy. 10. Thoroughly disinfect all vehicles prior to any associate touching or entering them and all vehicles post-repair before delivering them to customers. 11. Eliminate group lunches at the shop, stagger lunch breaks and refrain from having self-serve food and beverages in the front office and break rooms. 12. Show compassion and offer assistance if an employee becomes infected. CCG sample protocol to follow. 13. Research the small business emergency loans available. 14. Share best practices with other body shops and vendor partners. For more information about CCG and to share best practices, email Jeff Ingalls at jingalls@certifiedcg.com.

FREE 4x Monthly E-Newsletter. Subscribe Today! AUTOBODY

www.autobodynews.com

16 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 16

4/21/2020 9:20:51 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 17

Southwest_Issue_0520.indd 17

4/20/2020 7:55:38 PM

Continued from the Cover

AUTOBODY are certified by FCA, Honda, Nissan, Lexus and a few others. Hassell writes, “In our shop, we work for the customer. Our customers are our friends, and we make things right for them.” When asked how he was handling his employee situation, Hassell replied, “We had one guy that was getting ready to retire, so he took this opportunity

Analysis of the Body Shop Survey

to do just that, and gave a younger guy a chance to stay on. That was very gracious of him. Other people were in a financial situation that would allow them to take a couple of weeks off without pay so that worked out. Plus, we have shifted hours around for some people and gone to a no-overtime policy. So, it’s all worked out.” Hassell not-

100%

Independently operated single-point shop Independently operated with two or more locations

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

87.2%

9.5%

MSO (Caliber, CARSTAR, Service King, etc.)

3.1%

No Response(s)

100%

TOTALS:

restoration work for the brands they usually handle—mainly Porsche and BMW. And one shop in a snow-belt area has taken on more rust-repair jobs to keep busy. Read Autobody News on-line at autobodynews.com and in-print to keep up with the industry’s latest developments.

2. Given the current pandemic situation, to what degree is your shop operating? (Choose one)

1. What is your type of shop? (Choose one) ANSWER:

ed that in his area of Long Island there is a heavy concentration of shops. Some are busy, some are dead. One shop in northern California noted that their DRP work had all but dried up so they were knocking on doors of businesses that were still open to find work. One highend shop in Utah has taken on some

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

100%-plus (backlog of work)

5.3%

100% - 75%

17.0%

75% - 50%

22.3%

50% - 25%

27.6%

25% - 5%

21.2%

We’re temporarily closed

6.3%

No Response(s)

100%

TOTALS:

18 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 18

4/21/2020 9:21:17 PM

3. Have you had any layoffs due to work changes? (Choose one) ANSWER:

100%

Yes - Laid off a quarter of my staff

4. What changes have you implemented in your workplace? (Choose all that apply)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

12.7%

Closed front office

29.6%

Pickup / deliver customer cars

54.9%

100%

Yes - Laid off half of my staff

6.3%

Yes - Laid off three-quarters of my staff

21.2%

Sanitation stations / enforce social distancing

78.0%

No - Have not had to lay off anyone

59.5%

Use face masks and rubber gloves regardless of the shop operation

56.0%

Other

16.4%

100%

No Response(s)

TOTALS:

5. Have you taken on any other type of work such as restoration or custom work?

TOTALS:

6. Have you applied for assistance under the CARES Act just passed by Congress? (Choose one)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

Yes

19.1%

73.4%

If yes, what type of work? Comment below

7.4%

No Response(s)

100%

ANSWER:

100%

TOTALS:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

Yes - I have submitted a application but have not yet received the funds

62.7%

Yes - I have submitted a application and have already received the funds

10.6%

8.5%

11.7%

6.3%

100%

No - But I plan to at a later time No - I do not intend to use CARES funds No - I have not heard of the CARES Act

TOTALS:

autobodynews.com / MAY 2020 AUTOBODY NEWS 19

Southwest_Issue_0520.indd 19

4/20/2020 7:55:39 PM

Continued from Cover

TX Gov. Greg Abbott eryone to slow the spread, we’re now beginning to see glimmers that the worst of COVID-19 may soon be behind us,” Abbott said, noting the number of infections is “beginning to level off” and the death toll, while tragic, has “not come close to the early, dire predictions.” “We have demonstrated that we can corral the coronavirus,” Abbott added. In recent days, Abbott has faced pressure from some in his own party to reopen the state’s economy, while Democrats have argued Texas is nowhere near ready to do so, citing the state’s low testing level. Abbott insisted at the news conference Texas was preparing to dramatically increase its testing capacity, but he did not provide details beyond suggesting a timeline of “late April or early May.” After the news conference, state Rep. Chris Turner, chair of the House Democratic Caucus, issued a statement saying Abbott has failed to “provide a clear plan for how Texas will increase testing.” Abbott’s news conference April 17 came a day after President Donald Trump announced guidelines for states to begin lifting restrictions. Trump has agitated for a reopening of the U.S. economy, and Lt. Gov. Dan Patrick has echoed him at the state level, naming his own task force to restart the economy 10 days. Patrick said April 17 his task force will be “working together” with Abbott’s. Abbott said his task force will include fellow state leaders such as Patrick and Texas House Speaker Dennis Bonnen, as well as top medical experts, including state health Commissioner John Hellerstedt and Mark McClellan, former commissioner of the U.S. Food and Drug Administration. The medical advisers will focus on developing a strategy to “comprehensively test and trace COVID-19 that will enable Texas to gradually and safely” begin returning to normal, Abbott said. The task force will be rounded out by an advisory group of business leaders, Abbott said, naming prominent entrepreneurs including Kendra Scott and Michael Dell. The first phase came in a series

of executive orders issued April 17. One order allows for product pickup at retail stores—what Abbott described as “retail-to-go”—that will begin April 24. Outlets will be allowed to bring orders straight to customers’ cars in a manner similar to how many restaurants are offering curbside pickup. Another order, which goes into effect at 11:59 p.m. April 21, will allow a limited amount of nonessential surgeries at hospitals, as long as those surgeries don’t deplete the hospitals’ supplies of personal protective equipment and allow the facilities to keep at least 25% of their capacity available for the treatment of patients with COVID-19, the illness caused by the new coronavirus. Abbott’s previous executive order banning all elective procedures quickly sparked a legal battle because it resulted in a ban on most abortions. Abbott said April 17 the courts will eventually settle the matter but that abortions are “not part” of his latest order on surgeries. A third order will allow state parks to open April 20. Visitors to parks will be required to wear masks, stay 6 ft. away from people who are not in their party and limit gatherings to five people or fewer. Additional openings will be announced April 27 “after further input from medical staff,” Abbott said. Abbott repeatedly pointed to April 27 as the next date on which he could announce additional steps to reopen the economy, as long as Texas is continuing to make progress in slowing the spread of the virus. Previewing that date, Abbott said, “One of the things that we will consider is the elimination of the stay-at-home policy,” which he announced late last month and expires April 30. “If the data continues to show a flatlining and then a decline” in positive tests, “that is a signal that we can begin the process of opening up some businesses that adhere to the strictest strategies that will reduce the spread of the coronavirus,” he said. One thing that could delay the broader reopening of the economy is the availability of testing. The number of tests done in Texas is 169,536, according to state figures. That continues to amount to a tiny fraction of Texas’ nearly 29 million people, fueling concerns about how state

leaders can track the virus or know the full extent of the outbreak. Citing recent talks with the White House, Abbott said Texas would be seeing a “dramatic increase” in testing—”not just testing those who may show symptoms, but also being able to test entire communities so that we have better information.” Pressed on specific numbers and a timeline, Abbott said Texans can expect a “massive amount of testing capability coming to Texas by late April or early May.” Democrats said they are tired of waiting for Abbott’s promises of more testing to come to fruition. During a conference call after Abbott’s news conference, U.S. Rep. Joaquin Castro, D-San Antonio, told reporters it is hard to “flatten the curve when our leaders have been so far behind it,” accusing Abbott of first relying on local leaders to address the coronavirus response before finally taking statewide action. “We’re concerned about the life and the livelihood of Texans,” Castro said. “Throughout the response, Abbott has said, ‘More tests are coming,’ but they still haven’t come.” Democrats were also

quick to note that Abbott’s task force does not include any local officials, whom Abbott had initially deferred to in enacting policies to contain the coronavirus. One of those officials, Dallas County Judge Clay Jenkins, responded to Abbott’s news conference with a statement urging local, state and federal officials to work together to restore the economy in a responsible way. “Several of the things mentioned by the governor today were already being discussed by our team in Dallas County, such as loosening the restrictions on some surgeries and ‘retail to go,’” Jenkins said. “Others, like opening movie theaters and restaurants are not businesses we contemplate being in the first group of businesses to be opened for in person experience.” In naming the leaders of the task force, Abbott turned to two men with deep experience in and around business and state government. Huffines, the chair, previously served as Central and South Texas chairman of PlainsCapital Bank in Austin. From 2003-10, he served See TX Gov. Greg Abbott, Page 22

20 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 20

4/20/2020 7:55:39 PM

orce ials, rred n the ials, kins, nferocal, work in a

menwere eam ning eries said. aters sses first d for

the two and ernousTexBank rved

autobodynews.com / MAY 2020 AUTOBODY NEWS 21

Southwest_Issue_0520.indd 21

4/20/2020 7:55:39 PM

Continued from Page 20

AutoNation to Lay Off 7K Employees, Cut Costs Deeply

Ford Teams With GE, 3M to Make Ventilators, Personal Protective Equipment

by Clark Schultz, Seeking Alpha

by Dave Herndon, Press & Guide

AutoNation said April 3 it's taking dramatic measures after seeing significant declines in new and used vehicle unit sales, including a yearover-year decline of approximately 50% during the last two weeks. The retailer is placing 7,000 employees on unpaid leave, implementing temporary base pay reductions for associates and freezing all new hiring. Widespread spending cuts are also being initiated. On the financial front, AutoNation discloses it had borrowings outstanding of approximately $790 million on March 31 under its revolving credit facility and about $140 million under its commercial paper program. “Based on those borrowings and the maximum leverage ratio contained in our amended and restated credit agreement, we had approximately $1.1 billion of liquidity, including over $400 million of cash and approximately $700 million of availability under our revolving credit facility,” AutoNation said. We thank Seeking Alpha for reprint permission.

Ford Motor Co. announced March 24 it will produce ventilators, face masks and more in conjunction with 3M and GE Healthcare to help fill shortages during the coronavirus pandemic. “By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis,” Executive Chairman Bill Ford said on a conference call with the media. According to the companies, Ford will start to manufacture 3M’s new respirator that uses a blower, instead of a person’s lungs to draw air through a filter. GE Healthcare officials said a “simplified” version of the machine will be manufactured in an expedited fashion. Ford said his company jumped into action after the U.S. government requested help. The equipment will be produced in at least one of the company’s Michigan plants, but didn’t say which plant or plants at this time. The company said its U.S. design team is also creating and starting

to test transparent full-face shields for medical workers and first responders to pair with N95 masks. The first 1,000 face shields will be tested this week at Detroit Mercy, Henry Ford Health Systems and Detroit Medical Center Sinai-Grace Hospitals.

Ford Motor Company employee Dave Jacek wears a prototype of a 3D-printed medical face shield. Credit: Charlotte Smith, Ford Motor Co.

The company said it will employ UAW workers to assemble more than 100,000 of the plastic face shields every week at a Ford manufacturing site to help medical professionals, factory workers and store clerks. We thank the Press & Guide for reprint permission.

TX Gov. Greg Abbott on the University of Texas System Board of Regents, including two stints as chair. Toomey, who will be the top full-time staffer for the group, is best known as a close adviser to former Gov. Rick Perry, for whom he was chief of staff. Toomey, a former state representative, also was chief of staff to ex-Gov. Bill Clements. Toomey is a partner at Texas Lobby Group, though Abbott spokesman John Wittman said Toomey has deregistered as a lobbyist to join the task force. Abbott’s news conference came as the number of coronavirus cases in Texas climbed to at least 17,371, including 428 deaths, according to the latest numbers from the Texas Department of State Health Services. Out of Texas’ 254 counties, 192 are reporting cases. Alex Samuels contributed reporting. We thank The Texas Tribune for reprint permission.

GM PARTS CENTER • We “Meet or Beat” Aftermarket Pricing • Over $2 Million Genuine GM Parts • Free Delivery within Texas • 10 Delivery Trucks

WATS:

800-955-6282

PARTS DIRECT:

972-202-2300

RAY HUFFINES

PLANO, TX

HOURS: MON - FRI 7 TO 7; SAT FROM 8 TO 5

www.rayhuffineschev.com

22 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 22

4/21/2020 9:21:06 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 23

Southwest_Issue_0520.indd 23

4/20/2020 7:55:43 PM

HON

COL

rick

LOU

ACU

ARIZ

COL

24 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 24

4/20/2020 7:55:43 PM

Please contact these dealers for your Honda or Acura Genuine parts needs. HONDA COLORADO

NEW MEXICO

TEXAS

Mike Maroone Honda

Garcia Honda

Honda of Frisco

Rusty Wallis Honda

888-431-0294 719-785-5045

800-677-6632 505-260-5002

866-442-2711 972-731-3176

877-466-3272 214-328-3891

Colorado Springs

Dept. Hours: M-F 7-6; Sat 7-5 rick.williams@mikemarooneauto.com

Mile High Honda Denver

800-548-4730 303-369-7800

Dept. Hours: M-S 7-6 lhoover@autotree.net LOUISIANA

Albuquerque

Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com TEXAS

Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Northside Honda

800-943-4227 504-368-5687

800-727-8705 210-340-0831

Dept. Hours: M-F 8-5; Sat 8-5 hondaparts@mynshonda.com

Walker Honda

Honda Cars of McKinney

318-448-8255 318-445-6677

972-569-4276 972-569-4222

Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com

Honda of San Marcos

Wholesale Parts Direct

866-392-1313 512-392-1313

800-234-4441 512-458-2910

San Marcos

Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com

Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com

Odessa

844-453-5594 432-334-6632

Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

McDavid Honda Irving Irving

800-492-4464 972-790-6003

McKinney

Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com

Austin

Kelly Grimsley Honda

San Antonio

Dept. Hours: M-F 7-5:30 parts@superiorhonda.net

Alexandria

Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com

Lewisville

800-344-8611 972-219-0021

Dallas

Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

Bankston Honda

Superior Honda Harvey

Frisco

Dept. Hours: M-F 8-6 srichardson@mcdavid.com

ACURA ARIZONA

LOUISIANA

TEXAS

UTAH

Acura of Peoria

Acura of Baton Rouge

David McDavid Acura

Jody Wilkinson Acura

866-347-4507 623-792-2559

866-733-2861 225-756-6166

800-575-3553 512-401-5976

800-234-0875 801-323-0492

Peoria

Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com

Baton Rouge

Dept. Hours: M-F 7-7; Sat 8-5 mkratky@mcdavid.com

Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com

Walker Acura

David McDavid Acura

Mike Hale Acura

800-359-8555 504-465-8555

972-964-6044

800-292-4595 801-263-0202

Metairie

Mile High Acura Denver

Dept. Hours: M-S 7-6 lhoover@autotree.net

Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com

Autonation Acura

800-456-9568 719-955-1715

800-749-6227 713-371-4700

Dept. Hours: M-F 7-6; Sat 8-4 joe_benson@pikespeakacura.com

Plano

Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

Sterling McCall Acura

Murray

Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com

Houston

TEXAS

Pikes Peak Acura Colorado Springs

Salt Lake City

Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com

COLORADO

800-548-4730 303-369-7800

Austin

League City

713-596-2337 713-596-2338

Dept. Hours: M-F 7:30-7; Sat 7:30-4 jlambert@sterlingmccallacura.com

Dept. Hours: M-F 7-7; Sat 8-5 CarranzaB1@autonation.com

autobodynews.com / MAY 2020 AUTOBODY NEWS 25

Southwest_Issue_0520.indd 25

4/20/2020 7:55:44 PM

Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

A Quick Course on Primers Recently, I received a call from a glass blew out, and did not deflect friend who owns a high-end colli- the bag onto a passenger. I hate to sion repair facility in the Los Ange- think about the consequences. les area. I was called to come and look at In June 2019, a 2017 Ford Rap- the truck. tor was repaired at his shop. The I asked the painter how he shop replaced the A-pillar on the prepped the vehicle prior to painting. passenger’s sidewith of the David vehicle. McClune Last He said the body technician sanded December, it rained in L.A. for three the bare aluminum with 180 grit sanddays straight, and the vehicle devel- paper and primed it with epoxy primoped a water leak at the windshield. er. The vehicle was returned to the shop First problem: you cannot just and the glass company that installed sand bare aluminum and think it is the new windshield was called to ready for paint. You need to clean come back and reseal the glass. the bare metal with a stainless steel Everyone was surprised when brush. I use the small “toothbrush” the glass on the passenger’s side post types because they do a better job of did not stick to the A-pillar. What removing the aluminum oxide from Johnfailure. Yoswick we have here iswith an adhesive bare aluminum (See Fig. 1) compared In other words, the adhesive did not with the larger traditional brush. stick to the substrate. Let’s take a look at aluminum Imagine if the vehicle were in- oxide. volved in another accident and the Aluminum oxide (Al2O3) is a airbag struck the windshield and the naturally-forming compound on bare

aluminum. Metallic aluminum is very reactive with atmospheric oxygen and moisture, and a 4-nm passivation layer of aluminum oxide forms on any exposed aluminum surface in a matter of hundreds of a second. This layer protects the metal from further oxidation. The melting point of aluminum is 1,221 degrees Fahrenheit, compared to aluminum oxide, which melts at approximately 3,700 degrees. This oxide layer is much harder than the aluminum and helps the material resist corrosion and abrasion. However, it also acts as an insulator that can create issues during welding, like porosity, as well as during the repair process—body filler adhesion, adhesive adhesion and certain types of primers and finish coats will not stick to it. In the case of the shop’s problem with the windshield, the aluminum oxide and phosphoric acid caused the

adhesive to degrade and not stick to the pillar.

California Autobody Association

Year in Quotes

Fig. 1

Remember, use a stainless steel brush rather than a steel brush to prevent galvanic corrosion (See Fig. 2).

Fig. 2

Collision Repair Association of CA. with Richard Steffen

Audi Genuine Parts make your repair easier • Delivery to Austin, Kyle, Buda

and San Marcos areas. • You can count on our customer service.

Transition Planning

• Professional experienced staﬀ.

with John Yoswick

Audi South Austin 4738 IH-35 l Austin, TX 78745 Phone: 888.703.4305 Fax: 512.660.5388 Hours: Mon.-Fri. 7am-6pm Sat. 9am-5pm with Karyn Hendricks audisouthaustinparts@hendrickauto.com www.audisouthaustin.com

Shop Showcase

26 MAY 2020 AUTOBODY NEWS / autobodynews.com

with David M. Brown Southwest_Issue_0520.indd 26

4/20/2020 7:55:46 PM

As a best practice, clean the area with a good wax and grease remover like Kent Automotive’s Acrysol (Fig. 3).

tached to the vehicle (Fig. 7). Note the strip of gray epoxy primer where the windshield will be attached. After seeing what happened at my friend’s shop, I taught his staff about the various types of primers used in the repair process. It would be beneficial to give the same information here so repairs are done properly, reducing the chance of a comeback or catastrophic failure.

Self etch primer (Fig. 4) uses phosphoric acid to etch the metal. If the acid has not fully dissipated, it will attack the adhesive, which will lead to an adhesive failure. The only recommend primer to be used in this repair is epoxy primer (Fig. 5).

Fig. 3

Fig. 6

I asked the painter to bring over the epoxy primer he was using. It turned out to be self etch primer. Fig. 5

Fig. 4

After cleaning the part with the brush and Acrysol, I brushed on a coat of epoxy primer with a foam brush (Fig. 6 showing the process, but not the vehicle in this article) After a 30-minute dry time, the vehicle was ready to be primed and painted. The epoxy primer on the windshield flange is the only coating where the windshield will be at-

Fig. 8

Fig. 7

Here is a quick course on primers, starting with weld-through primers (WTP.) There are three major types of WTPs—copper-based, zinc-based and self etch (Fig. 8).

Call us for all your parts needs. We stock almost $2 million dollars worth of Original BMW Parts. Our parts team has 350+ years of collective experience with 200+ of those BMW specific. Original BMW Parts & Accessories.

Classic BMW 6800 Dallas Pkwy., Plano TX 75024 www.classicbmw.com

Parts Hours M-F 7am - 7pm No Deliveries on Saturday

NEED PARTS? ORIGINAL BMW PARTS AND ACCESSORIES.

Parts Dept.: 214.778.2689 214.778.2814 Fax Habla Españ Español

Mitch Mitchell Sandy Priesmeyer Miguel Rosas

Southwest_Issue_0520.indd 27

4/20/2020 7:55:48 PM

WTPs are primarily used when MIG or spot welding together two or more panels. The coatings on the inner flanges are removed and the WTP is applied to the bare metal. Allow it to dry prior to welding. It should be noted the primer is cleaned from the hole when MIG plug welding. Also, Fiat Chrysler does not recommend the use of WTPs, preferring spot welding through the E-coat. Remember, E-coat is not electrically conductive, so a shut clamp will be necessary for the first weld (See Fig. 9).

welding, but not when MIG welding. Audi and Ford recommend their WTP and Honda/Acura recommends Kent’s Self Etch WTP. The next category of primers is Direct to Metal Primers (DTM), because they contain an acid that etches into the metal. Self etch primer (Fig. 10) comes in a spray can or quart container that can be sprayed. This primer contains phosphoric acid, which etches the surface, and zinc for corrosion protection. This primer is used over bare metal to provide a solid base for high-build primers and paints. Self etch primers are not used under body fillers, on plastic parts or under seam sealers. To use it prior to applying seam sealer, first allow it to thoroughly dry—the acid needs to be totally evaporated—and follow with some sort of sealer.

Fig. 9

Some vehicle manufacturers do not recommend copper WTPs because in the past, some paint manufacturers were selling the primer, but it did not contain any zinc and would dissolve when cavity wax was applied to mating surfaces. Most of the copper WTPs have been reformulated with zinc added. The zinc WTPs are the most common. Any excess zinc primer on any surface to be painted needs to be removed—paint does not like to stick to zinc. The self-etch WTP uses phosphoric acid to etch the metal and has zinc for corrosion protection. Once completely dry, paint can be applied directly to metal that may have gotten some of the primer. Nearly all OEMs require WTPs. Honda recommends WTP when spot

Fig. 10

Fig. 11

Whereas regular self etch primer is not sanded, this product is sandable. The same rules apply to this primer as with self etch primers. Another type of self etch primers is DTM primers. Similar to regular self etch primer, these primers are color coded to match the inner structural panels (rails, aprons, etc. Fig. 13) of a vehicle. You should follow the same rules of use as the self etch primers. The last of the DTM primers is epoxy primer (Fig. 5). Electrodeposition primer is applied to a manufactured vehicle by submerging the vehicle in a container or vessel holding the coating bath or solution and applying direct current electricity through the EPD bath using electrodes. The object to be coated is one of the electrodes, and a set of “counter-electrodes” are used to complete the circuit.

A characteristic feature of this process is the primer particles are

Fig. 12

suspended in a liquid medium, migrate under the influence of an electric field (electrophoresis) and are deposited onto an electrode, or in this case, the metal of the vehicle. The final step is to rinse and bake the vehicle, resulting in a smooth finish. We in the collision industry do not have the ability to replace the E-coat the OEM has, but we have a product that comes very close—epoxy primer. Epoxy primer is known as a 2K primer, consisting of the primer and hardener. It can be applied to any rigid metal surface (steel, aluminum, SMC, fiberglass, etc.) It can be applied as a high build primer or reduced to be sprayed on as primer-sealer.

I have my shops mix it up the epoxy primer in a 4:1 cup in the morning (it has an eight-hour pot life) and, depending on the job, I tell the body tech to brush it on with a foam brush as a first option. Dry time is about 30 minutes. For example, let’s say you are replacing upper fender reinforcement on a vehicle, the attached part is welded into place and now the bare metal needs to be coated with primer. In this case, the body tech does it in his stall with the foam brush.

Fig. 13

Note: do not mask the vehicle for primer, and the car does not need to be moved to the paint department.

Bob Utter Kia Mon-Fri 7:30am-6pm l Sat 7:30am-1pm

903.892.5967 903.891.7304 24hr Fax

2433 Texoma Parkway Sherman, TX 75090

ALL the Genuine Kia Parts You Need Dedicated Wholesale Staff Competitive Prices Perfect Fit Everytime Fast Free Delivery Large Inventory Extended Warranty www.bobutterkia.com b b ki

28 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 28

4/20/2020 7:55:51 PM

e epornhour g on tech oam Dry s. you nder icle, lded metal r. In n his

e for d to nt.

autobodynews.com / MAY 2020 AUTOBODY NEWS 29

Southwest_Issue_0520.indd 29

4/20/2020 7:55:51 PM

After about 30 minutes drying time, the vehicle can have seam sealer applied to the welded joints. The tech does not need to go to the paint

department and seal it. (See Figs. 14 & 15) Moreover, Honda released a bulletin in March saying “never apply seam sealers to bare metal and apply 2K epoxy primer to the bare metal.” Toyota states in Collision Repair Information Bulletin (CRIB) #63 to “apply epoxy primer or wash primer over bare metal. Do not apply body filler over bare metal.”

color or clear coat.” Ford, GM and Audi recommend in their repair manuals epoxy primer on bare metal glass bonding surfaces. Finally, Honda said in its March repair news “2K epoxy is to be applied to all bare metal surfaces prior to applying seam sealer, body filler or other refinishing products.”

Fig. 18

Fig. 14 Fig. 17

Fig. 16

Fig. 15

In CRIB #127, it says “body fillers should not be applied to bond surfaces. Epoxy primer applied directly to properly prepared bond surfaces should NOT be refinished with

particular primer has a flex agent added, making it ideal for small plastic bumper repairs.

Furthermore, primer can be applied using a foam or standard brush, small roller or dobber as well as being sprayed on. The last primer is specialty high build primer. A few paint manufacturers have a high build primer (Fig. 16) in a handy spray can for small areas. This

In Fig. 17, the bumper repaired area was sanded and two coats of high build primer were applied in the body department. This primer works great with a short wave infrared light (Fig. 18). The primer was completely dry from the top to the base in less than two minutes, and the total repair was done by the body repair technician. Think of the time saved. I hope this article is helpful to you and your staff.

FREE

4x Monthly E-Newsletter.

www.autobodynews.com

Toll Free:

800-551-8189

Parts Direct: 318-425-3417 3 4 55-334 7 Fax: Fax: 318-425-1705 318 8 5

Electronicc Catalog a og Available ilabl Online! n

Yooour Best So Your Y Source ource rcee ffor orr G Genuin uine ne G GM M Genuine P Part Pa artts, t Powertr ower ertra rtrrain ain in n Parts, Powertrain Engines Eng ngiines nes and and Transm ansm sm misssions s Transmissions

• Fa Fast, Fasst, Next-Day Ne Delivery ery • Millions Mi ions in Inventoryy •W Wee also sellll tires! tire 7500 0 Yo Youree Drive Shreveport, ep LA 71105 cchevyland.com

with

30 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 30

4/20/2020 7:56:01 PM

gent plas-

ired s of n the orks light

dry than was cian.

ul to

autobodynews.com / MAY 2020 AUTOBODY NEWS 31

Southwest_Issue_0520.indd 31

4/20/2020 7:56:02 PM

Shops Using Downtime Advantageously During COVID-19 Crisis by Chasidy Rae Sisk

As the U.S. strives to prevent the spread of COVID-19, most states have instituted some version of a shelter-in-place order. Many businesses are experiencing a decrease in workload, including collision repair shops and related businesses. While furloughs are happening, experts advise against it, especially in light of aid offered by the U.S. government, including the Paycheck Protection Program (PPP), which provides small businesses with forgivable loans to keep employees paid. Most shop owners are doing everything they can to maintain their employees, including pursuing less traditional schedules and duties. Industry leaders agree that looking for the opportunities within the current situation will help collision repair professionals maintain a more positive outlook and come out in a good position on the other side. “No one wants to face declining car counts and repair volume, but if there is a silver lining to all of this, it does provide an opportunity to focus on how you can improve your business during the downtime,” VeriFacts CEO Farzam Afshar recently said. Improving the business can take a variety of forms, including maintenance, financial and training opportunities. During this period, many shops are using the extra time to clean and sanitize their entire facility. Deep clean the paint booth, change filters, service or upgrade equipment, power wash the building and reorganize to enhance efficiencies to prepare for the day the work starts coming back in the door. Kevin Anderson of Elite Auto Body in Gambrills, MD, has his team gutting the shop, purging junk and painting the floor and walls. At Downingtown Collision in Downingtown, PA, Tim Hedrick is “working because I’m trying to make sure my guys can collect a real paycheck and not unemployment. I’m paying them to do maintenance and sweep and other stuff around the shop.” At Parks Royal Body Works in

Boise, ID, the technicians are still processing their current workload, but after that, Matt Thornton has plans to deep clean the building, convert the booths to LED lighting and replace office carpet. “That should keep them busy for a couple of weeks. We are taking it day by day and keep adjusting our ideas and finances as needed,” Thornton said. “We applied for the PPP, which will really help.” The team at Cocoa Auto Salvage in Cocoa, FL, is employed on special projects like resetting the yard, maintenance and auditing as well. Owner Shan McMillon is also using the downtime to evaluate her inventory and update settings in her electronic platforms. “I have more time to work on my business, instead of in my business, and I’m trying to take full advantage of that,” McMillon said. DCR Systems LLC is processing paperwork and accounts receivables during the lighter supply of vehicles, according to Marketing Specialist Pam Giarrizzo. “The team is working on ways to communicate with the insurance companies and the customer to try to lessen or eliminate short pays. It just takes more communication with both parties,” she said. “Develop your fully reopen checklist and get to work. ‘Fill the potholes,’ meaning go take care of the little things in your systems and processes that you just always seemed too busy to take the time needed and fix,” said John Hill of The Autotrends in Greensboro, NC. “If your building needs a little paint, it’s the perfect time to freshen things up.” On a recent CIECAst, Mike Anderson of Collision Advice recommended shops analyze their financials to look at areas they can reduce or eliminate. Closing out repair orders, chasing receivables and establishing new accounts may be worth a look, as well as audits and associate reviews, which often get deferred due to workload. With the reduction in work, many shops may be tempted to reduce or even eliminate marketing efforts, but successful shop owners disagree with

that approach. “If your shops are slow, use this opportunity to put yourself in front of your customers,” said Brian Shaw from Sudden Impact Auto Body & Paint in Salisbury, NC. “I’m not a very good speaker and don’t do well on camera, but right now, at least in North Carolina, our customers are sitting at home scrolling Facebook. Try to have fun and stay positive!” At Body Works Plus in Charlotte, NC, Brian Davies has been sending email blasts to previous customers, which generate a 55% return ratio; the day after he sent the first blast, he received a job. He contracted a local marketing company to set up a free valet for customers to have their vehicles picked up and dropped off, sans contact. “We amped up our budget for marketing and started promoting our business on two new radio stations. Last week, I did a Facebook Live about a special we’re offering, and that went really well,” Davies said.

“If things slow down, we’ve taken on a project to repair a veteran’s truck, and if it comes to it, we’ll paint the floors and perform maintenance.” “Do not stop marketing. If anything, increase it,” Hill said, recommending shops keep an eye on the future throughout this crisis. “Everyone is a startup now, and it’s a great time to adjust those pay plans you were too timid to address. Get help wanted ads out. We all knew the labor market was too tight with everyone employed, and now, we can get and retain some quality applicants. “It’s going to be a real-life game of musical chairs when people get back to work,” Hill said. “Plan now so you can get the right people lined up for the right chairs. The hysteria is going to end, and while it may be a little jagged getting to the new normal, I believe that many of us will like it better, ultimately.” Preparing for the future by ordering parts ahead of time, especially in light of staggered deliveries, can be helpful, Anderson recommended.

Your One-Stop Shop for

Dept. Hours VOICE Parts ! 7:30am - 6pm - Fri: IN EVERY CIEN TOMon W Sat: 8:30am - 5pm N CHABob IS A6324 Bullock Loop / Laredo, TX 78041

Be d l u o You C WINNER! ext N r u O GENUINE TOYOTA COLLISION PARTS Toll Free

877-892-4570

956-718-4200 local 956-718-4259 fax

32 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 32

4/20/2020 7:56:05 PM

CONG R

1st Q ATULA Gerb uarter WTIONS! er La i kewonner Ceda od r

CUSTOMER APPRECIATION

D R AW I N G !

Parts: (303) 590-7040 Toll -Free: (800) 426-6032

Parts: (303) 443-3883

Parts: (303) 415-1528

Phone: (303) 904-7820

R! Parts: (720) 343-2490

EVERY E INVOICNCE HA IS A C N! WI TO

Every qualifying April and May invoice from any Part of the Club dealership with a completed entry card will be entered into our next drawing held in June. The winning card will be drawn at random and the winning shop will receive a free catered lunch by Elleâ&#x20AC;&#x2122;s Catering Un-Limited on us!

Parts: (303) 343-1396

Ask your Part of the Club delivery drivers or parts departments for entry cards!

Denise Wells (303) 726-3575 partoftheclub@live.com Club Number: (303) 245-6439

Parts: (877) 292-2125

Parts: (303) 703-2270

Enter once for each unique invoice by returning completed cards with any of our parts drivers.

ld Be R! u o C You WINNE ext N r u O

Parts: (303) 986-2245

Parts: (303) 443-2919

Parts: (855) 529-5152

autobodynews.com / MAY 2020 AUTOBODY NEWS 33

Southwest_Issue_0520.indd 33

4/20/2020 7:56:06 PM

Paul Morro of Morrobuilt in Raleigh, NC, agreed. “Because I work on 40- to 50-year-old British cars, parts supply is critical, and when I received an email from my next-day supplier that they were temporarily shutting down operations, I placed a large hard parts stock order from a different supplier that is still in operation to ensure I can satisfy future customer vehicle repairs,” Morro said. “I normally order as needed, but I wanted to be certain that I’d prepared for whatever the future holds.” Another common practice among shops is revising their employees’ work schedules in some way. “We’re still open five days each week, but our techs have gone to a four-day workweek, reducing payroll by approximately 20%,” said Stan Creech, from Creech Import Repair Inc. in Raleigh, NC. “During idle time, we clean the shop, paint, update equipment and perform maintenance.” R&N Motor Company, Inc. in Sanford, NC, has emailed its customer base to offer vehicle pickup and drop-off, is focused on saniti-

zation and has begun preparing for equipment updates. “We lost a tech to a government job, but it couldn’t have happened at a better time,” Manager Robert Crawford said. “There’s still enough work coming in to keep two techs going. If we get caught up, they leave an hour or two early, but we still pay them to make up for the lack in billable hours. We are making plans to hire a new tech.” In Little Egg Harbor, NJ, one of the areas of the country hardest hit by COVID-19, John Molinaro of Streamline Auto Body erred on the side of caution. When New Jersey Gov. Phil Murphy implemented a stay-at-home order, Molinaro instructed employees to follow the order, “although we are essential,” he said. “They have received full pay for the time they are out, and my rent will be paid on time,” Molinaro said. “My customers were supportive in our decision with regards to delays in completing their vehicles, as well as our scheduled customers understanding our decision.” Molinaro didn’t pay his techs

without assigning them some work, though. “We used this time to review SOPs and learn new procedures and technology from the products and tools we use,” he said. “Each employee is asked to view two hours of training videos each day, and Collision Hub has been amazing in having videos in one place for my techs to view, offering over 850 videos on YouTube.” Anderson recommended shops take advantage of downtime by reviewing repair guides from the manufacturers they repair and investing in training. Crawford, Davies, Creech and Thornton all have plans to train their teams as well. Often, shops complain training causes delays in the repair process, but with a lack of workload, this is the perfect opportunity to take advantage of the many virtual training opportunities available. Due to the current situation, many associations and industry supporting companies are providing free resources and training opportunities online. Here are just a few websites offering free or discounted webinars:

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Texas

BMW of Dallas

Dallas 800-245-7269 972-241-3953 Fax

BMW of Houston North Houston 888-215-7431 281-875-4021 Fax

BMW of San Antonio San Antonio 210-732-7121 800-880-1430

Classic BMW

Oklahoma

CollisionHub.com FordHarrison.com ShopMarketingPros.com business.spanesi-americas.com/ youtube.com/user/SCRSCollision youtube.com/user/ButlerCollision rts.i-car.com worldpac.com/training/classes/online/ thepowerofa.org/coronavirusadvocacy/ nada.org/coronavirus/resources/ sema.org/corona-updates/ tstseminars.org/ elitebodyshopsolutions.com/ Although there are many challenges ahead, there are plenty of ideas to help shops keep employees working with a little creativity and positivity. Good luck, and stay safe.

AUTOBODY Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! www.autobodynews.com

Original BMW Parts & Accessories.

BMW of Tulsa

Tulsa 800-331-3996 918-665-1360 Fax

Plano 214-778-2673 Direct Wholesale 214-778-2674 Direct Wholesale 214-778-2814 Fax

When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation.

Southwest_Issue_0520.indd 34

4/20/2020 7:56:08 PM

on on

line/ acy/

nges help ith a

with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ Even before the coronavirus outbreak, I was telling shops I work with a renewed focus on “capture rate” was increasingly important. Now it’s become critical. Here’s why: Look at any reliable source of claims counts in the U.S. over the last couple of years, and you’ll see they are declining. The increasing number of vehicle on the road with advanced driver assistance systems (ADAS) is reducing accidents. Not by a lot, and it varies a bit by region, but by about 2 to 4% a year overall, most analysts agree. That might not be particularly noticeable—yet. I think it has been masked by shops feeling like their sales increased in recent years, but that’s because severity has been getting higher. The ADAS impact on claims count has also been offset until recently because low unemployment and low gas prices were keeping more

vehicles on the road for more miles. But we’re a little bit like the frog in that old analogy: Put a frog in a pot of boiling water, and it will jump out. But put it in a pot of tepid water and only slowly bring up the temperature, and the frog will boil to death. Similarly, a 2 or 3% decline in claims counts each year might be easy to ignore, but in five or seven years, you’re going to be wondering why the water around you has gotten so hot. So now, and especially in response to this pandemic, we have to get back to the fundamentals, including focusing on capture rate, something most of us did when we were first in business. You need to convert more of your potential customers into actual repair orders. How do you do that? How about following up on estimates written? If a customer gets an estimate but

doesn’t schedule the job, call them the next day, then three days later, then five days after the estimate. One of the major clients I work with said those type of follow-up calls are helping them capture 20% of those jobs that weren’t scheduled at the time of the estimate. That’s a big deal. The pandemic and work slowdown has shops following up like never before. I talked to a shop in late March who told me, “We’re following up on estimates we wrote a year ago.” The reality is all shops should have been doing that type of follow-up all along. Another thing you should be doing: Monitor where your work is coming from. Most management systems can help you do that. Unfortunately, I look at many shops’ “referral” or “source” reports and see just generic categories like “insurer” or “internet”

or “dealer.” That’s not good enough. Capture your source information in detail. Let’s say you’re a direct repair shop for ABC Insurance. If you run the source report and see you repaired about 20 cars a month through DRP claims paid for by ABC, and now you’re only doing 15 a month, you need to get proactive and find out why. You can also track how many claims were paid for by various insurers through a “Body Shop Scorecard” report available through Enterprise. It shows you by insurance company how many of your customers were in an Enterprise rental while their vehicle was in your shop. If you are seeing fewer rentals covered by a particular insurer, find out why. Don’t just list “dealer” as a source; identify which dealer. Again, if you see a decline in those referrals, See ‘Capture Rate’, Page 38

INSIST ON GM GENUINE PARTS ONLY ORIGINAL PARTS PROTECT THE VEHICLE’S VALUE. Call Callll Any Ca Any ny of of These Thes Thes Th esse e Wholesale Wh W hol oles esal ale Parts Pa P arrtts Dealers De D ea alle errs Below Belo Be Belo low Colorado

Louisiana

Texas

Utah

Emich Chevrolet

Banner Chevrolet

Kelly Grimsley Cadillac

Ken Garff Buick GMC

800-274-1127

800-477-8603

855-879-1206

800-821-8797

LAKEWOOD

303-986-2245 303-989-3490 Fax

NEW ORLEANS

504-242-4624 504-253-8490 Fax

ODESSA

432-332-0441 432-337-4807 Fax

M-F 7am - 6pm; Sat 8am - 4pm gmcollision@emichauto.com

www.bannerauto.com

M-F 7:30am - 6pm; Sat 8am - 12pm april@kellygrimsley.com

John Elway Chevrolet

Oklahoma

Ray Huffines Chevrolet

ENGLEWOOD

800-525-5096

303-761-5161 303-789-6737 Fax

M-F 7am - 6pm; Sat 8am - 4pm wholesaleparts@elwaydealers.net

Marc Miller Buick GMC TULSA

800-456-4700

918-828-7050 918-828-7094 Fax

M-F 7:30am - 6pm jerad@marcmillertulsa.com

PLANO

800-995-6282 972-202-2300 972-596-5571 Fax

RIVERDALE

801-627-6762 800-390-1317 Fax M-F 8am - 6pm

GENUINEGMPARTS.COM

M-F 7am - 7pm; Sat 8am - 5pm Call Us For Your Saturn Parts Also.

autobodynews.com / MAY 2020 AUTOBODY NEWS 35

Southwest_Issue_0520.indd 35

4/20/2020 7:56:12 PM

Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery Assured Performance is taking bold the future. mize the risk of the transmission of action to support our certified repair Since this industry is directly im- COVID-19 for both team members Autobody News recently reached out network. pacted by miles driven and employ- and customers alike. to leaders in the collision repair indus- We’ve created a special ment, people NOT driving Following the municipal, provintry to find out how they are best man- subsidy and stimulus proand forced to stay at home cial, state and federal guidelines for aging the inevitable interruptions to gram for our certified repair will be significant and could health and safety that are local to the “business as usual” during the current providers we hope will help be devastating if the shut- repairers remain paramount during coronavirus restrictions. in the short term and actualthis COVID-19 pandemic. Increased down lasts too long. In addition to sharing their insight ly reinvent and turbocharge In the short term, it is a rates of cleaning frequently touched on how this will affect the industry, their businesses for the long great time for shops to im- surfaces, spaces and property is a they offered some advice to business term. plement new systems, train common directive as well as making Dean Fisher owners and employees. staff and refine their sales, hand sanitizers and disinfectant wipes For immediate relief, we have instituted a payment pro- marketing and production processes. more available to both customers and Farzam Afshar, CEO of VeriFacts gram, discount incentives and ac- We can all be far better businesses employees. Automotive celerated rebate redemption for the coming out of this crisis if we do this VeriFacts Automotive is working cost of certification. As a stimulus, well and execute a smart business Jim Keller, President of 1Colllision closely with our customers, insurers we have introduced a new program improvement plan. Network and OEMs to adapt our practices in to help drive sales and re-engineer 1Collision has addressed our locations these challenging times. as a group in regard to safety precaubusiness operations to save money Dean Fisher, President of CARSTAR We are conducting many of our and manpower. The safety of our customers and team tions by issuing bulletins, holding coaching services virtually to ensure Through an agreement with members is always our first priority, group web meetings and conducting we are keeping our team members Bodyshop Booster, certified net- and we are taking steps to protect the discussions with shops about the ways and the shop employees safe. We are work shops can offer consumers health and wellbeing of our team and they are protecting employees and cusfollowing OEM guidelines and their insurers a hands- customers. tomers. on shop certification visits. To help capture traffic to your free estimating and repair We have implemented a num- Also, we’ve shared tips with process that protects the ber of precautions based on the ad- door, educate consumers on the vehicle our customers about how shop employees, the con- vice of the Centers for Disease Con- disinfecting measures they can take, they can enhance their busisumer and the insurers. trol, the World Health Organization as well as the policies and procedures ness practices to ensure shop The new process com- and other health authorities to mini- your repair facility has implemented. cleanliness, follow social bines photo and remote virdistancing rules and provide tual estimating with a fully Farzam Afshar convenient customer service. documented and/or certified While there will be short-term repair. The process eliminates the Parts for Buick, Cadillac, Chevrolet, GMC, Oldsmobile, Pontiac declines in repair volume as fewer need for the consumer or the insurer people are on the road each day, we to come to the shop by using a pickup • 60,000 part numbers • Same day shipping until 5:30 EST will see business return to previous and delivery system, centralized ap• 13 parts pros eager to serve you • Next-day air until 4:30 EST levels as this challenge subsides. • 15 radio-dispatched trucks • 4.2 million inventory pointment setting with an active cal• 97,000 square-foot warehouse We may also see daily driving endar and special tools for the shops’ trends increase, as people may be re- websites. Camaro luctant to return to air travel, trains These combined with full elecand public transportation. tronic visual documentation will en In addition, people may hold on able consumers and insurers to interto their vehicles longer rather than act with shops in a new and far better investing in a new car, which will way of doing business. translate to more repair needs. Programs like this can save re We always advise shop owners pairers hundreds of thousands of and managers to use the good times dollars each year and save insurers to prepare for potential millions. The process is far downturns, and to use the easier for consumers and ofdowntime to productivefers a “hands-free” solution ly plan for the future. This during this time of social is the ideal time to conduct distancing and quarantining. your facility and equipment Consumers do not have to maintenance, participate in come to the shop and they Genuine GM Parts at Genuine GM Prices employee training, complete will have higher confidence parts@youngchevrolet.com Scott Biggs Toll Free: 800-451-0108 your annual financial review than ever before because of www.youngchevrolet.com Main: 214-328-9111, Opt. 5 9301 E. R.L. Thornton Fwy, Dallas, TX and planning and do your employee the repair documentation. reviews. Our certified repairers’ survival Direct: 214-328-8381 is essential to all of us. It may be the Fax (main): 214-328-6675 Scott Biggs, CEO of Assured perfect solution for these uncertain Fax (wholesale): 214-328-0716 Performance times and become the new norm in Compiled by Stacey Phillips

Young Chevrolet

We want your business!

36 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 36

4/20/2020 7:56:13 PM

autobodynews.com / MAY 2020 AUTOBODY NEWS 37

Southwest_Issue_0520.indd 37

4/20/2020 7:56:13 PM

In the sales process, especial- will mean lower WIP (work in progly during a shrinking market, it’s ress) and sales volumes. Parts availabilcritical to educate consumers about ity will likely become a challenge, with making the proper repair facility manufacturer supply chains weakening choice. By using effective sales and internationally and the within the U.S. closing techniques, and writing a Talk to your employees, and most complete and accurate repair plan, it importantly listen to what they are feelwill likely be the difference between ing…be compassionate, and assure them they are being heard and you will breakeven and a respectable profit. On the financial side, I rec- help in any way you can. Always reommend managing your numbers member, without our employees, there is no business. daily; close more sales and Collision business owners manage all costs, especially must be strong, smart, coulabor and parts. rageous and lead their orga With monthly building payments, whether you are nization by taking calculated in a lease or a mortgage, risks. have conversations with the Henry Ford once said, bank or building owner to “The competitor to be feared Jim Keller delay a payment or two to is one who never bothers help weather the storm. Analyzing about you at all, but goes on making all expenses to cut costs and being his own business better all the time.” more efficient is always a good exer- The leader that does nothing will cercise. tainly lead to failure. Also, grant programs are becoming available on both a federal and Aaron Schulenberg, Executive state-by-state basis, that are potential- Director of SCRS The Society of Collision Repair ly beneficial to collision shop owners. The most critical issues I see for Specialists (SCRS) recognizes many shops are the early reports that have collision repairers are being inunindicated lower claims volumes, which dated with emails and information

Continued from Page 35

‘Capture Rate’ you can look into whether there’s been some change at the dealership. Maybe there’s a new general manager or service writer who is sending work to his buddy’s shop down the street. Similarly, don’t use a generic source as “internet.” Indicate whether that customer found you through your social media, your shop website, an OEM shop locator, etc. Another way to monitor and improve capture rate for direct repair shops, or those who receive “open assignments” through an information provider, is tracking the metric of “assignment received to estimate start date.” This report shows you how much time on average passes between when your shop receives an assignment and when you begin to write the estimate. Often when a shop tells me they need more work, we’ll check out their assignment-to-estimate metric and see it shows it’s taking them five or six days after getting an assignment to get that customer’s estimate

started. Those shops don’t need to be attracting more work; they need to be getting on assignments in a more timely manner. Capture rate will also increase in importance if something leads to an increase in the rate at which consumers are shifting to newer cars with more ADAS. That might seem hard to fathom with the slow-down in car sales we’ve seen. But that decline might at some point prompt some sort of “cash for clunkers” federal incentive to attempt to revive new car sales. The good news in such programs for shops is that newer cars are more likely to be insured and thus repaired after an accident. But it could also push a lot more ADAS-equipped cars onto the roads. That could mean the annual decline in claims could jump to 5 or 7 or 10% a year. So we all need right away to start refocusing on basic best practices, like improving capture rate. Because it’s going to be much more competitive for claims. The water around us is going to start heating up, and we can’t wait too long to respond.

surrounding the current events unfolding, and many of our members are reaching out trying to understand what it means to their businesses. As an association, we are largely relying on those with specialized expertise to offer guidance, and then finding ways to share that guidance through our free channels of communications. These include Repairer Driven News www.repairdrivennews .com, and a new resource page we have set up: www.scrs.com/covid19 -resources. The resource page is continually updated with information about workplace preparation and help, as well as financial aid and relief to help small businesses and citizens across the U.S. As essential businesses, we know the critical role collision repairers are playing right now for customers and employees. We’ve seen many examples of businesses taking enhanced precautions against COVID-19, ranging from zero-contact interactions with customers at drop-off and pick-up, that allow for adherence to social distancing policies surrounding personal contact.

We’ve also seen examples of businesses promoting services to “clean,” “sanitize” or “disinfect” customer vehicles. SCRS urges caution with the language used in your promotion of services. For instance, your facility can assure that you “apply disinfectant,” but there is no testing protocol to ensure that you “disinfected” the vehicle. In our interaction with other industries, this has been a repeated caution; describe only what you performed, rather than a promise of what it accomplished. The information is constantly evolving, the situation changing, and the best advice we can offer is to make ample use of the resources available to you to stay abreast of the current events. But most importantly, remain positive. We are an industry that fixes broken, seemingly unfixable incidents every day, as we restore safety and peace of mind after unexpected tragedy. While the conditions are unchartered territory for us all, as an industry we will find our way through to the other side, using our professional experience to serve the motoring public as they turn to us in their time of need.

North Freeway Hyundai Th e right The right part part r makes makes the the difference. diff ffeerence. renc . • N.L.S. Delivery • Genuine Hyundai OEM Parts

Phone:

866-645-4986 866-645-4986

• Helpful Staff • 30+ Years Experience

Fax:

832-442-5174 832-442-5174

HOURS: Mon - Fri 7am - 7pm l Sat 7:30am - 5pm 20440 I-45 North l Spring, TX 77373 www.northfreewayhyundai.com

38 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 38

4/20/2020 7:56:15 PM

UPER INVENTORY NVENTORY | SUPER UPER PEOPLE EOPLE | GENUINE ENUINE OEM PARTS ARTS. SUPER

Bob Howard PDC Dedicated Wholesale Wholesale Staff Staff •• Dedicated Large Inventory Inventory of of Genuine Genuine OEM OEM Parts Parts •• Large Prompt && Dependable Dependable Delivery Delivery •• Prompt

800-888-3827

Hours: Monday Monday -- Friday Friday 8am 8am -- 5:30pm 5:30pm CST CST Hours:

www.bhpdc.com www.bhpdc.com

SMICKL AS C D PDC

A ARD PD WA OW AR HO HO A HO H DBA T DB LET ROLE EVRO CHEV CH

Hours: Monday Monday -- Friday Friday Hours: 8am -- 5:30pm 5:30pm CST CST 8am

800-888-3827 Hours: Hours:

Monday--Friday: Friday:77am am--66pm pm Monday Saturday:88am am--55pm pm Saturday:

8850Grossmont GrossmontBlvd., Blvd., 8850 Mesa,CA CA91942 91942 LaLaMesa,

autobodynews.com / MAY 2020 AUTOBODY NEWS 39

Southwest_Issue_0520.indd 39

4/20/2020 7:56:19 PM

with Erica Schroeder

Industry Insight

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

with John Yoswick

Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software

Shop Showcase

The economic fallout from the coro- er (such as two different part numbers navirus pandemic is likely to be felt on the same package) or that cover worldwide, and that has law enforce- other labels; labels with conflicting with Ed Attanasio ment bracing for almost inevitable information (“made in Thailand” and uptick in crime, including illegal busi- “made in Japan”); or, most commonly, labels with odd misspellings of such ness activity. Shops should take a number of common words as Ford. measure to avoid perpetuating—or Genuine automaker airbags are falling victim to—criminal activity. shipped one per box, with a “Class The Automotive with Anti-CounterEd Attanasio 9” hazardous material label, Pagdifeiting Council (A2C2), a coalition lao said; counterfeiters, however, ofof 11 automakers, is reminding shops ten save money by shipping multiple to avoid counterfeit airbags and other airbags in a single box, or by skipautomotive parts. ping the hazardous material label. Dee Pagdilao, of American Hon- Shops concerned a part they reda, said A2C2 offers a visual guide to ceived may be counterfeit should consome of the mostwith common Edindications Attanasio tact the National Intellectual Property that a part may be counterfeit, includ- Rights Coordination Center (IPRC) ing labels that don’t match one anoth- (www.iprcenter.gov), part of the U.S.

Social Media for Shops

SEMA Show Goes On

Media andTools Publicity for Deciding Which Scan are the Best Fit Ed Attanasio for Yourwith Shop How can a collision repairer know an designed to provide resources and aftermarket scan tool will adequately support for diagnostic technicians, said emulate the OEM tool? aftermarket scan tools in some cases “Well, that’s the big challenge. offer more functionality than OEM tools, You really can’t,” said Donny Seyfer particularly on vehicles that are a few of the National Automotive Service years old. OEM scan tools don’t always with Stacey Phillips Task Force during a panel discussion display data in a format that is most earlier this year at the Collision In- helpful to technicians. dustry Conference. “Until you have it “A lot of times, the aftermarket in your hands and plug it into the car, tool companies listen and end up fixyou don’t know if it works or not.” ing that, providing a way to display Seyfer said he thinks that’s Phillips why the data in a way that (best helps with Stacey the collision industry is largely default- shop technicians find) the diagnostics ing to OEM scan tools (or to using scan- needed,” Brown said. Greg Potter of the Equipment ning service providers that use them.) “I’m not saying that’s necessar- and Tool Institute agreed. “The automakers do a good job ily the right solution, because unless you’re working on (a vehicle) that’s developing diagnostics for next year’s with Phillips really, really new, youStacey have a pretty vehicles, because they have to. That’s good chance that the (aftermarket) their job, their focus,” Potter said. scan tool maker has integrated the “But some of them don’t do test you need,” he said. a real good job in upgrading or en But Seyfer also acknowledged hancing diagnostic software that aftermarket scan tool makers in gen- is a couple of years old. They move eral have focused on the mechanical on to developing stuff for the future. with Stacey Phillips repair segment of the market and But for the aftermarket, that’s their won’t necessarily know what the col- sweet spot. They focus on collecting lision industry needs until the industry information and enhancing software conveys it. as they learn how people are using Scott Brown, a founder of Diag- it, learning what the weaknesses are nostic Network, an online community and correcting those issues.”

Shops

Shop Strategies

Body Shops Giving Back Tips for Busy Body Shops My SEMA

Shop Strategies

Immigration and Customs Enforcement and the U.S. Department of Homeland Security. How can shops best avoid purchasing or installing counterfeit parts? The first step is to know your parts supply chain, Abe Jardines of the IPRC said. “My first job when I was 17 years old was delivering parts to auto shops in New Jersey for a local car dealer,” Jardines said. “Every guy at those body shops knew me by name, and I knew them by name. The next time my mom needed a body shop, I could call that guy up and say my mother is coming in. I knew who I trusted. “That was knowing the supply chain. The internet kind of changed that. As great as the internet is at connecting people that are good, it’s also really good at connecting people who are bad with those who don’t know

the other person is a bad source,” Jardines said. “But at the end of the day, it all comes down to knowing your supply chain. If you can trust your supply chain, if you would put a part (you buy from a source) on your own car, we can’t ask for anything more from you.” Authorities caution parts aren’t the only automaker product subject to pirating. Shops buying an aftermarket scan tool should determine whether the tool maker licensed the needed information from the automaker, or just “reverse-engineered” it by putting an OEM scan tool on a vehicle and using monitoring equipment to determine the diagnostic routines to essentially copy. Greg Potter of the Equipment and Tool Institute said it’s safe to say every manufacturer of aftermarket

Think Genuine Subaru Parts.

See Shops Cautioned, Page 43

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!

We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.

ARIZONA

TEXAS

Subaru Superstore of Chandler

Huffines Subaru

East Valley (877) 443-3239 (480) 268-2402 Local (480) 621-3805 Fax Mon.-Fri. 7-6; Sat. 7-5 WholesaleEast@ShopSubaru.com

Corinth (888) 928-2978 (940) 321-2679 (940) 497-2920 Fax Mon.-Fri. 7-7; Sat. 8-5 les.hickman@huffines.net

Subaru Superstore of Surprise West Valley (844) 378-9875 (623) 232-7202 Local (623) 232-7303 Fax Mon.-Fri. 7-6; Sat. 7-5 WholesaleWest@ShopSubaru.com

with Victoria Antonelli

40 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 40

4/20/2020 7:56:21 PM

Kia.com

Precise fit and finish, easy installation and a limited warranty direct from Kiaâ&#x20AC;&#x201D;all genuine advantages of Genuine Kia Parts. Your local Kia retailer has all the parts you need.

Archer Kia

Houston 1-888-983-1425 (281) 983-1437 Fax

Bob Utter Kia

Sherman 903-892-5967 (903) 891-7304 Fax M-F 7:30am - 6pm Sat 7:30am - 1pm Mike.martin@bobutterford.com www.bobutterford.com

From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need.

Southwest Kia AU

*Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kiaâ&#x20AC;&#x2122;s Replacement Parts and Accessories Limited Warranty for further details.

ARKANSAS Crain Kia

Sherwood 501-542-5230 (501) 542-6133 Fax M-F 7:30am - 6pm timhill@crainteam.net www.crainkia.com

LOUISIANA

All Star Kia of Baton Rouge Baton Rouge 5740 Siegen Lane 225-490-8000 (225) 490-8014 Fax

OKLAHOMA

Ferguson Advantage Imports Broken Arrow 800-880-8815 (918) 317-6280 Fax M-F 7:00am - 6:00pm

TEXAS

Ancira Kia

San Antonio 210-509-2197 (210) 509-2198 Fax M-F 8am-6pm Sat 8am-3pm tstewart@ancira.com www.ancirasa.com

13175 N. US Highway 183 Austin 512-583-1900 (512) 583-1899 Fax M-F 7:30am - 6pm

Central Kia

Plano 972-422-9320 (972) 633-5761 Fax M-F 7:30am - 7pm Sat 8am - 5pm

De Montrond Kia

Houston Wats 1-800-392-6704 (281) 872-3909 (281) 872-3914 Fax

Kelly Grimsley Kia

San Angelo (325) 276-3883 (325) 284-3100 Fax M-F 7:30am - 6pm Sat 8am - Noon april@kellygrimsley.com www.kellygrimsleykia.com

Southwest Kia

Mesquite 214-694-2870 (214) 694-2890 Fax M-F 7am - 7pm m.harris@southwestkia.com www.southwestkiaparts.com

Southwest Kia

39650 LBJ Freeway South Dallas Toll Free 888-544-9249 Direct (972) 616-0069 (972) 421-0294 Fax M-F 7:30am-6pm Sat 8:30am-5pm

UTAH

Findlay Kia

St. George 435-817-4245 (435) 634-1229 Fax M-F 8am - 6pm Sat 8am - Noon

Huffines Kia Corinth

Corinth 940-321-2504 (940) 497-2920 Fax M-F 7am-7pm Sat 8am-5pm Local Delivery Available www.Huffines.net

autobodynews.com / MAY 2020 AUTOBODY NEWS 41

Southwest_Issue_0520.indd 41

4/20/2020 7:56:22 PM

First Funding for Small-Business Loans Depleted, Second Round Just Approved by Rick Barrett, Milwaukee Journal Sentinel

A $349 billion coronavirus loan program for small businesses has run out of money less than two weeks after it was launched, the U.S. Small Business Administration said April 16. An extension was passed April 21. The Paycheck Protection Program, part of the Coronavirus Aid, Relief and Economic Security Act passed by Congress in late March, is aimed at helping businesses meet payroll. As long as they keep their employees—or rehire those laid off —the loan amount covering eight weeks of paychecks can be forgiven. Wisconsin ranks 10th in the nation in both approved PPP loans, 31,702, and approved dollars, nearly $7.3 billion as of Monday, according to the SBA that’s made the federal program available to businesses

Bob Roden combines a field of winter wheat on his family’s farm, Roden Echo Valley LLC, in the West Bend area. They milk 700 cows on any given day and have 1,800 acres of corn, soybeans, winter wheat and alfalfa that they cultivate. Credit: Michael Sears, Milwaukee Journal Sentinel

with fewer than 500 employees. Nationwide, 70% of small businesses surveyed by the National Federation of Independent Businesses said they at least tried to apply for PPP money. However, many applications could not be processed because of overwhelming demand and now the initial round of funding has dried up. On its website, the SBA now says the agency is unable to accept new applications based on a lack of available funding. The Treasury Department says by law it will not be able to issue new PPP loan approvals due to the lapse, putting a pause on the program that’s become a lifeline for millions of businesses. The loans have been dished out

on a first-come, first-served basis. As of Thursday morning, the SBA said it had approved roughly 1.6 million applications for more than $339 billion in loans since the program was launched April 3. “The money running out has been a big fear that drove a lot of people to apply,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. For some businesses, the program was too good to be true. “There was this understanding that the government was going to help any business with eight weeks of payroll. But when you start working through the details, you have to be operating right now with a full, normal payroll … and with the governor’s shelter-at-home order in Wisconsin, it’s effectively closed businesses like bars and hair salons that don’t have a payroll right now,” Poels said. There have been delays in getting the money out and some banks and credit unions haven’t had the closing documents or systems in place to make the transactions. “I liken it to trying to put a firetruck through a garden hose. You literally had, overnight, thousands of lenders who didn’t have access to the SBA system all trying to get access at once,” Poels said. The Trump administration has asked Congress, which set the program’s original ceiling, for another $250 billion, although that request has stalled in the Senate. Late on April 15, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza issued a statement noting the historic demand for loans and pleading for Congress to pass additional funds for the program. “The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time,” they said. “We urge Congress to appropriate additional funds for the Paycheck Protection Program — a critical and overwhelmingly bipartisan program.” Democrats have demanded that in approving more money for the program, Congress should also pass more funds for hospitals and state and local

governments. They also want to bolster food stamp benefits and mandate some of the funds go to businesses owned by women and minorities. Republicans, on the other hand, have pushed for this money to be approved without any additions or mandates, arguing it’s the only program at risk of evaporating thus far. A breakdown of the PPP loans on SBA’s website showed that, as of Monday, the average loan size was $239,152, and 70% of the loans were for $150,000 and under. Construction companies were approved for the largest share, nearly 14%, or $34 billion. In second place were companies that provide professional, scientific and technical services, with 12.3% or $30.35 billion. Manufacturers were in third place with 12.25%, or $30.32 billion. Thousands of businesses are still awaiting word on their loan applications. “There were a lot of technical problems early on. And there have been communication problems. Some individuals applying for money never

knew whether they were approved or not,” Poels said. As word leaked out this week that the PPP funding was nearly gone, one Wisconsin bank had 24 loan processors working through the night processing as many applications as they could, said Eric Skrum, communications manager for Wisconsin Bankers Association. If your application wasn’t submitted before April 15’s cutoff, don’t throw out the paperwork. “I would hold on to it. Then you’re prepared so that if Congress does in fact move forward and fund the program again, you will be that much further ahead,” Skrum said. Still, for a program of this size rolled out quickly, it’s gone quite well, said Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce. “I think the federal government worked with great speed, but with that comes haste and not a perfect delivery system to get this into the economy,” Sheehy said. He likens the PPP loans to the

Genuine Mitsubishi Replacement Crash Parts are close at hand from the following quality dealerships:

ARIZONA

TEXAS

Mark Mitsubishi

West Loop Mitsubishi

PHOENIX

SAN ANTONIO

623-842-8908

800-224-1968

(623) 842-8915 Fax M-F 7:30-6:00 / Sat 8:00-2:00 glendaleparts@markmitsu.com

(210) 681-4583 Fax M-F 7:30-6:00 #1 Volume Dealer in All of Texas. wlparts@lonestar-auto.com

TEXAS

Don Herring Mitsubishi - Irving

866-375-4074

(469) 443-1872 Fax #3 Volume Parts Dept. in the Nation. $600,000 Inventory.

42 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 42

4/21/2020 9:21:36 PM

$1,200 coronavirus checks that should be showing up in the mailboxes of individuals soon, and the $600 in weekly federal unemployment money that is supposed to be coming. “Those individual and business lifelines are critically important … The severity and speed of the COVID-19 impact on the economy is unlike anything we’ve seen,” Sheehy said. Some Wisconsin businesses say the application process went smoothly enough for them. “I thought it was amazingly simple,” said Eric Isbister, CEO of GenMet, a metal fabrication company in Mequon that employs 46 people. “When I bought this business 20 years ago, we had an SBA loan with paperwork that was inches thick. This was much quicker,” he said. Keefe John, president and CEO of Ethoplex, a Germantown internet service provider, said he received approval on a PPP loan in less than a week. It helped, he said, that he already had a relationship with an SBA-approved lender. “We just wanted some extra working capital to help us out during uncertain financial times. We will use

it to retain our employees and give people sick leave if they get the virus. I think small businesses need to do everything they can now to survive and remain competitive,” John said. His company currently employs 10 people. “We are actually looking to hire more now. We’re seeking technicians to do customer installations in southeast Wisconsin,” he said. Bob Roden, a dairy farmer from West Bend, said Wednesday he was waiting to hear whether his PPP loan was approved. He and his family milk about 700 cows and grow corn, beans and wheat on 1,800 acres. They have nine employees.Roden said his milk and grain prices have been sinking, with no bottom in sight as coronavirus wreaks havoc on the global economy. “The loan is going to help, but it’s a band aid not the answer,” Roden said.

LIKE US ON

FACEBOOK: Autobody News

Continued from Page 40

Shops Cautioned scan tools reverse-engineers to some degree. “Even if you are given all the great data that you (license from) the OEMs, you still have to implement those features and functions into your aftermarket tool,” Potter said. “You have to validate and verify that that tool is doing what it’s supposed to do. How do you do that? You get the OEM tool, you send a command, you see what the reaction is, you monitor that traffic, and then you take your tool and you do the same thing. “That’s your validation effort, back and forth. That can certainly be called reverse-engineering. You are monitoring the messages from the OEM tool and making sure your tool does the same thing and gets the same responses back.” But Donny Seyfer of National Automotive Service Task Force (NASTF) said it’s not really that type of “professional” reverse-engineering that is a problem. “It’s the, ‘How can we steal the

software off the OEM tool and then sort of implement it into our own tool, and then sell it, in some cases representing it as an OEM tool,’ that’s the problem,” Seyfer said. “In some cases, they’re not even taking the (OEM tool) copyright information off. As you use it, you see that and say, ‘Huh, that’s not even the brand of the tool I’m using.’” Seyfer that type of piracy undermines the companies producing both OEM and legitimate aftermarket tools. “So if you buy those (pirated) tools just to save a few hundred bucks, and those other (legitimate scan tool) companies keep raising the prices because they’re spending all their time going to court (to fight the piracy,) now you’ll understand why,” Seyfer said. “Customs and border patrol snags these things constantly, by the case load. Truck loads in some cases.” Jack Rozint of Mitchell International said his company’s software similarly gets pirated, and he said that the same online sources where that pirated software is being sold also often offers knock-offs of automaker scan tools for sale.

Finish It Like a Masterpiece th Genuine Part with Parts.

LOUISIANA THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS.

Texas

Sterling McCall Toyota HOUSTON

800-231-1440

713-270-3942 Fax M-F 7am-7pm; Sat 7am-4pm

Toyota of Laredo LAREDO

888-818-5176

956-718-4259 Fax

The Dealers Below Are Mercedes-Benz Genuine Parts Specialists:

Louisiana

Price LeBlanc Toyota BATON ROUGE

800-960-1157

225-408-1249 Fax

COLORADO

Mercedes-Benz of Littleton Littleton

Southpoint Volkswagen Baton Rouge

800-291-0032 225-236-6194 Fax: 225-236-6201

M-F 7:30am-6pm brvwpaulj@bellsouth.net

303-703-2270 303-797-0400 Fax M-F 7am - 6pm Sat 8am - 5pm

mbparts@mboflittleton.com www.mercedesoflittleton.com

M-F 7:30am-6pm; Sat 8:30am-5pm www.toyotaoflaredo.com

autobodynews.com / MAY 2020 AUTOBODY NEWS 43

Southwest_Issue_0520.indd 43

4/21/2020 9:22:08 PM

Used-Car Sales: Tracking the Good, the Bad & the Options by Joe Overby, Auto Remarketing

Based on auto industry analyses, a rough March for used-vehicle sales appears to have spilled over into April, and as PureCars says in its latest COVID-19 report, dealers are “facing obvious headwinds” in preowned. But, some silver linings: the dive in used- and new-car sales appear to have hit its trough, according to Cox Automotive. And there are dealers who are realizing “some success” with strategies to shore up their used-car sales, as PureCars outlines in its report. First outlining the challenges, PureCars said in the report, “Aggressive APR offers mean used payments can be higher than new, RO data suggests shoppers are fixing versus trading up or out, auction prices continue to fall and wholesale markets have all but stopped operating as a way to dispose of depreciating used assets.” But there are some remedies dealers are finding that work. PureCars emphasizes some used-vehicle shoppers “are sitting on the sidelines,” so

“aggressive” strategies in pre-owned might not be the best course at the moment. “However, some dealers are gamblers and we’ve seen some success with the following tactics; low-funnel search awareness, social budget reallocations to move ‘up funnel’ to reach broader in-market shoppers to take advantage of falling CPM rates, overlay ORACLE dataset to hyper-target local in-market audiences, aggressively (re)pricing vehicles to drive intent and piggy-backing on OEM CPO program benefits where available,” PureCars said. Here’s how the numbers have shaken out recently in pre-owned. Franchised dealers had a 24% drop in used-car retail sales the week ending April 5, according to J.D. Power Valuation Services, following 32% sequential and nearly 40% year-over-year declines in March. Of the 25 states that provide vehicle sales data to Cross-Sell Interactive (part of Dominion Dealer Solutions), only one shown in a state-by-state comparison graph—

North Dakota, which was up 10%— showed year-over-year growth in combined new- and used-vehicle sales in March. The heaviest decline shown in Cross-Sell’s data set was in Missouri, where combined new and used sales were down 52%. New York was next at 46%. Several others, like Texas (down 28%), Michigan (27%), Indiana (25%) and Colorado (25%), had declines near 30%. Overall, new- and used-vehicle sales fell 19.6% year-over-year, among states in Cross-Sell’s data set. In the 25 states that report data to Cross-Sell, there were 1.91 million used-vehicle sales for March, which was up 9.1% from the 1.75 million used sales in February. However, the picture changes when looking at year-over-year comparisons. Used-car sales in the 25 states were down 21.1% from the 2.42 million sold in March 2019. Total used-vehicle sales in March fell 18.4% year-over-year, according to Cox Automotive, which

Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same by Mark Phelan, Detroit Free Press

The way we buy cars may never be the same, as auto dealers adjust to working under COVID-19 restrictions and customers discover they prefer the new approach, which leans heavily on internet sales and vehicle demos and could include valet-style pickup and delivery service for everything from test drives to oil changes. “This is going to fundamentally change how people view buying a car,” said Rhett Ricart, CEO of Ricart Automotive Group in Columbus, OH, and chairman of the National Auto Dealers Association. “By the end of this year, you’re going to see 80% to 90% of U.S. new car dealers with full e-commerce capability in their shops” to handle everything online but the test drive and—maybe—the final signature, he said. Online deals at Ricart’s domestic dealerships have doubled during the last six weeks, he said. In Michigan, Gov. Gretchen

Whitmer’s extended “stay home” order clears the way for that, after a month when nearly all vehicle sales were prohibited in the state. It allows “workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.” Michigan dealers have been hoping and making plans for just such a change. Deliveries could begin as soon as they work out a process that addresses all the legal documents that are part of buying a vehicle. “We’re seeing a fundamental change in the way cars will be sold,” said Doug North, owner of North Bros. Ford in Westland, MI, and chairman of the North American International Auto Show. “This pandemic is going to create some permanent changes.”

estimated the used-car SAAR for the month at 32 million. It was 39.2 million in March 2019 and 39.8 million in February, Cox said. For retail used (which Cox Automotive defines as sales from either franchised dealers or independent dealers, excluding private-party sales), the SAAR was approximately 17.3 million for March. It was 20.6 million a year ago and 21.2 million in February. In addition to the 18% drop in total used sales for March, Cox Automotive also observed a 38% decline in new-car sales, with the downturn in both picking up as the month went along. A bit of a silver lining though, as Cox Automotive said in an analysis: “The decline in sales bottomed last week, as we’ve seen seven consecutive days of improvement in year-over-year declines of both new and used through Wednesday, April 8.” We thank Auto Remarketing for reprint permission.

www.autobodynews.com

The RIGHT

COLLISION PARTS FOR YOUR COLLISION JOB. Visit these Genuine Hyundai Parts Dealers

Texas AUTONATION HYUNDAI North Richland Hills 7724 North East Loop 820

800-888-2079 817-589-7882 Fax

Mon-Fri 7am - 7pm; Sat 7am - 4pm reeda2@autonation.com

HUB HYUNDAI

Houston 19300 Northwest Fwy.

800-856-2212 281-955-2311 Fax

Mon-Fri 7:30am - 6pm; Sat 8am - 3pm hubparts290@hubhouston.com www.hubhyundaiofhouston.com

We thank the Detroit Free Press for reprint permission.

44 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 44

4/20/2020 7:56:26 PM

Audi Part Professionals are experts on collision parts, replacement components and mechanical items.

Audi dealers strive to make you an Audi Genuine Parts fan. Order Audi Genuine Parts from these select dealers. ARIZONA

TEXAS

Audi Gilbert

Audi Dallas

877.412.2925 480.855.8101 480.346.9201 Fax M-F 7am-6pm Sat 7am-1pm audiparts@audigilbert.com www.audigilbert.com

866.327.2318 214.438.0894 Fax M-F 7am-7pm Sat 9am-5pm larry.elliott@audidallas.com www.audidallas.com

Gilbert

Dallas

Peoria

877.358.8165 623.561.4750 623.561.4703 Fax M-F 7am-6pm Sat 7am-5pm mendozaa4@autonation.com

Austin

512.219.3172 512.219.6214 Fax M-F 7am-6pm Sat 9am-4pm mmitchell@audinorthaustin.com www.audinorthaustin.com

Audi Lafayette Lafayette

337.484.1300 337.284.3032 Fax M-F 7:30am-6pm Sat 7:30am-3pm part@audilafayette.com www.audilafayette.com

214.452.3830 214.452.3855 Fax M-F 7am-7pm Sat 8am-5pm gualotunao@autonation.com www.audiplano.com

877.424.AUDI (2834) 817.553.2252/2258 M-F 7am-6pm Sat 8am-5pm sstallcup@audigrapevine.com cmartinez@audigrapevine.com www.audigrapevine.com

Dallas/Fort Worth

San Juan, TX

956.475.3801 956.475.3817 Fax M-F 8am-6pm Sat 8:30am-5pm davidh@audisanjuan.com www.audisanjuan.com

Audi South Austin Audi Fort Worth

LOUISIANA

Audi Grapevine

Dallas/Fort Worth

Audi San Juan Audi North Austin

Audi Peoria

Audi Plano

Dallas/Fort Worth 817.632.6709 817.632.6747 Fax M-F 7:30am-6pm Sat 8am-3pm omarr@audifortworth.com jasons@audifortworth.com www.audifortworth.com

Austin

888.703.4305 512.660.5388 Fax M-F 7am-6pm Sat 9am-5pm www.audisouthaustin.com

autobodynews.com / MAY 2020 AUTOBODY NEWS 45

Southwest_Issue_0520.indd 45

4/20/2020 7:56:28 PM

Why You Should Keep Advertising During a Major Market Downturn Businesses nationwide are taking a hard hit due to the Covid-19 pandemic, and the print media industry is no exception. Often times during an economic crisis, businesses may end up cutting marketing expenditure in an effort to save money. However, history tells us that cutting advertising budgets during a downturn can actually hurt your business long-term as opposed to helping it. Forbes gives us a list of several different brands who benefitted by maintaining their marketing budget during an economic downturn. Here are their stories. Kellog’s Cereal Brand In the 1920’s, Post Foods Cereal brand was the category leader for ready-to-eat cereal. During the Great Depression, Post cut back on their advertising budget while Kellogg’s Cereal Brand doubled their advertising spend, investing in radio and introducing a new cereal called Rice Krispies, featuring “Snap, Crackle, and Pop.” Kellogg’s profits grew by 30% resulting in the company becoming the

category leader, a position it has maintained to this day. Toyota Corolla The 17-month recession of 19731975 was triggered by the energy crisis. In late 1973, the U.S. government issued its first miles-pergallon report in which Toyota Corolla was second to Honda Civic in fuel efficiency. Since Toyota was experiencing strong sales, when the economic downturn hit, the temptation was to drop their ad budget, which they resisted. By adhering to its long-term strategy, Toyota surpassed Volkswagen as a top imported carmaker in the U.S. by 1976. Taco Bell and Pizza Hut In the 1990-1991 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%. Amazon

Amazon sales grew by 28% in 2009 during the “great recession.” The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products which helped to grow market share. As a result, in the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped consumers. While the temptation now may be to cut back on advertising, you may want to reconsider. Instead, redirect your brands’ message to match the current economic climate but be careful with the type of message you put out there, especially during these fragile times. Covid-19 has impacted many individuals on a personal level, and you don’t want to risk coming off as insensitive or exploitative. Whatever your message may be, it’s best to keep a positive, inspirational and helpful tone. Sources: Forbes – When A Recession Comes, Don’t Stop Advertising, By Brad Adgate

Ford Tests Social-Distancing Wearables by Yoel Minkoff, Seeking Alpha

Ford is experimenting with wristbands that vibrate when employees come within 6 ft. of each other as part of a broader array of new safety protocols.

The devices could be deployed more widely once the carmaker reopens its idled manufacturing plants. Ford is also expected to subject all workers entering a facility to a thermal-imaging scan and will provide staff with masks and, in some cases, plastic face shields. We thank Seeking Alpha for reprint permission.

www.autobodynews.com

AUTOBODY MARKETPLACE

The Secrets of America’s Is noblwe for aila Greatest Body Shops avpurchase!

When all you need to do is move a vehicle, use:

by: Dave Luehr and Stacey Phillips

The Book That Will Challenge Everything You Know About the Collision Repair Business.

> EASY TO USE <

SAVES YOU TIME AND MONEY

Order your copy today and join the Body Shop Secrets community!

Go to www.forkliftwrecker.com and watch our video.

www.bodyshopsecrets.com

877.593.6959

Waterborne Wax and Grease Remover SINCE 1985

CR Y L O P

R CKE

Available from YOUR local Jobber or CALL: 973.335.2828 FAX: 973.402.7222 polycracker@netscape.com

For more information, contact the authors at info@bodyshopsecrets.com

Looking for Good Collision Personnel? •1,262 Collision Techs resumes online •1,295 Painters resumes online •1,177 Estimators & Mgs resumes online •11,256 Mechanical Tech resumes online

ACTautostaffing.com or 727-733-5600

FREE 4x Monthly E-Newsletter. Subscribe Today!

AUTOBODY

www.autobodynews.com

Call or e-mail now for rates: 800-699-8251 or ltedesco@autobodynews.com 46 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 46

4/20/2020 7:56:30 PM

TRUST FORD PARTS

CERTIFIED PARTS WHOLESALING DEALERS

ARIZONA

Earnhardt Ford

Five Star Ford

480-763-6233 480-783-4655 Fax

WHOLESALE DIRECT

CHANDLER

www.earnhardtford.com

COLORADO

NORTH RICHLAND HILLS

800-895-7827 817-577-2781 817-577-0558 Fax www.5starford.com

Larry H. Miller Ford Lakewood

Helfman Ford

800-332-3722 720-481-2460 303-991-4134 Fax

281-240-7628 800-634-8008 281-240-0642 Fax

LAKEWOOD

Hours: M-F 7-8; Sat 8-4 steven.albertson@lhmauto.com

OKLAHOMA

United Ford PDC TULSA

WHOLESALE DIRECT

800-800-9001 800-676-8509 Fax

STAFFORD

TEXAS

Sewell Ford ODESSA

800-592-4762 432-498-0434 Fax

Hours: M-F 7:30-6; Sat 8-5 partswholesale@teamsewell.com

Tommie Vaughn Motors HOUSTON

800-944-4415 713-869-4755 713-293-4309 Fax

www.tommievaughnford.com

parts@helfmanford.com www.fordparts.com/helfman

Mac Haik Ford, Lincoln GEORGETOWN/AUSTIN

800-804-4423 281-598-4370 Fax

parts@machaikfl.com www.machaikfl.com/orderparts

adodson@penskeautomotive.com www.fordparts.com/unitedford www.unitedford.com

autobodynews.com / MAY 2020 AUTOBODY NEWS 47

Southwest_Issue_0520.indd 47

4/20/2020 7:56:33 PM

48 MAY 2020 AUTOBODY NEWS / autobodynews.com

Southwest_Issue_0520.indd 48

4/20/2020 7:56:33 PM