Southwest June 2010 Autobody News by Autobody News

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House Passes Financial Stability Act, Includes Office of National Insurance The U.S. Senate passed the “Restoring American Financial Stability Act of 2010” May 20. S. 3217, authored by Sen. Christopher Dodd, D-Conn., chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, aims to promote financial stability by improving accountability and transparency in the financial system, to end “too big to fail,” to protect the American taxpayer by ending bailouts, and to protect consumers from abusive financial services practices. S. 3217, which has been amended since originally passing the Senate Banking Committee, establishes an Office of National Insurance within the U.S. Department of the Treasury. The office will be headed by a director who is to be appointed by the secretary of the treasury.

The office’s main functions will be: • to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system; • to recommend to the Financial Stability Oversight Council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as a nonbank financial company supervised by the Board of Governors pursuant to Title I of the Restoring American Financial Stability Act of 2010; • to assist the secretary in administering the Terrorism Insurance Program established in the Department of the Treasury under the Terrorism Risk Insur-

by John Yoswick Special to Autobody News

place. The demonstrations have led at least four insurers to pull back from asking shops to use certain non-OEM parts, and has led to new testing and certification efforts related to such parts. Chess’ Eileen Sottille of QPC latest presentation on such parts at CIC in April was halted at the last minute after he said he was threatened with a lawsuit by LKQ Corporation, parent company of Keystone Automotive.

See House Passes Act Page 34

ABPA Conference Airs Aftermarket Parts Certification Issues Again The fallout in recent months from concerns raised about non-OEM bumper and structural parts raised by industry trainer Toby Chess was clearly on the minds of the parts manufacturers and distributors gathered in Indianapolis, Ind., this spring for the Automotive Body Parts Association’s 30th annual meeting. At the Collision Industry Conference (CIC) this past November and January, Chess demonstrated key differences between some non-OEM structural parts and the OEM parts they are being sold to re-

See ABPA Conference, Page 18

VOL. 28 ISSUE 6 JUNE 2010

Storms Across N. Texas and Oklahoma Leave Floods, Power Outages and Millions in Damages

Storms across Texas and Oklahoma The auto repair business is still reeling wreaked havoc on the states with tornadoes from the slew of hail storms that continue to and large hail; damages are still being cal- hit the state. culated. Fierce winds and heavy rain caused thousands of power outages across the Texas Metroplex area Friday May 14. While the May 10 tornadoes in Oklahoma produced insured losses in the tens of millions of dollars, the May 16 hail storms caused monumental damage to windshields and struc- A car’s back windhsield was completely broken out by hail in Oklahoma tures across the state. “Tornadoes are kind of hit and miss,” said Jerry Johns, president Body Works Inc., a mobile auto glass of the Southwest Insurance Information repairer in Oklahoma City, told customers Service in Austin, Texas. “With a hail- to wrap damaged car windows in plastic bestorm, it’s a very concentrated weather cause it could be a couple weeks before event that affects block after block after they'd get to them. block.” “We’re not scheduling at this point, we Phones at the weather service office in just have a waiting list and are calling peoFort Worth were “ringing off the hook” Fri- ple from that,” said Chris Donnelly. day afternoon with reports of storm damage, A second hail storm rained down golf said Dan Shoemaker, meteorologist. ball to baseball-sized hail on Sunday May 16, Shoemaker reported that roads had to causing further delays in windshield repairs. be barricaded in the Wise County commu“It just peppered everything in sight,” nity of Chico and in Mineral Wells. Shingles said Chris Donnelly, “it is absolutely blowwere blown from a roof in Saginaw, he said. ing us up.” The weather service posted a flash flood watch through Saturday morning because thunderstorms and possible runoff remained in the forecast. Preliminary claims figures from the May 10 tornadoes in Oklahoma project losses in the millions, said Marc Young, Oklahoma assistant insurance com- Hail caused baseball-sized dent in the roof of this vehicle missioner. Johns believes the initial storm will produce losses in the Body Works is seeing a lot of complete “tens of millions of dollars.” windshield replacements and paint less dent Johns said the two storms likely will repairs, but about 50% of cars coming in are be the second- most expensive in the 25 being totaled. years he has been in the insurance busiAt Eskridge Lexus, tents made to withness in Oklahoma. Johns, who tracks stand hail stones protected some of the the insurance industry in Oklahoma and newest cars on the lot. But about 200 other Texas, said the storms probably will be vehicles had cracked windshields and dents. topped only by the destruction of Hur“Our plans are to repair everything and ricane Ike, which ripped through Galve- then disclose that to customers,” said genston and Houston in 2008. eral sales manager Doug Berryhill.

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Contents

‘Old Chrysler’ Repays $1.9B, Treasury Loses Rest . . . 33 2009 Historic Loss in Vehicle Population . . . . . . . . . . 19 ABPA Conference Airs Aftermarket Issues Again . . . . . 1 AkzoNobel Honors Most Influential Women . . . . . . . . . 7 AkzoNobel Honors Top Independent Distributors . . . . 10 ASA Fly-in Meets to Ask for McCarran-Ferguson Repeal . 4 ASA Offers Year-round and Nationwide Education . . . . 21 Auto Supplier Plasman Wants Fort Payne, AL, Plant. . 39 Automotive Aftermarket Industry Objects to What it Calls ‘Misleading Public Relations Initiative’ by AutoMD . . . . 5 AWRS and Ride-On Form Strategic Alliance. . . . . . . . . 19 Beating a Dead Horse- Amaradio . . . . . . . . . . . . . . . . . 32 Building a Custom Trophy for ‘School of the Year’- Evans . 24 California Shop Credits Mitchell’s Ultramate and RepairCenter for Managing Growth- Attanasio . . . . 15 CARQUEST Returns to CARS 2010 as Exhibitor . . . . . . 21 Chrysler CEO Says IPO May Come in 2011 . . . . . . . . 33 Chrysler Gets More Arbitration Wins . . . . . . . . . . . . . . 16 Dallas DA Insurance Fraud Indictments Net 29 . . . . . . . . 8 Equipment and Tool Institute Presents Founder’s Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Experts: Gulf Coast Oil Spill Won't Affect Gas prices. . 30 Ford Fiesta Now in the 40 mpg Category . . . . . . . . . . . . 19 Ford Promotes Favorable Repair and Insurance Cost Data and Leads in Perceived Quality Gain. . . . . . . . 38 Gerber Collision’s New Collision Repair Center in OK . . 8 Gunder’s Case Not Over—Court Mediation Ordered. . 37 High Schoolers Compete to be Top Auto Technician . . 30 House Passes Financial Stability Act, Includes Office of National Insurance. . . . . . . . . . . . . . . . . . . . . . . . 1 Hurricanes and Oil Spills are Bad Combination, or Not? 30 I-CAR Industry Conference Registration Now Open . . . . 33 Insure.com Figures Least Expensive to Insure. . . . . . . . . 9 LKQ Says Wheel Reconditioning by Transwheel Passes All Testing . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Lo Jack Device Credited with $45K Recovery in LA . . . 5 Matrix System Teams with Miller Electric to Sponsor Jet Dragster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Missippi Supreme Court to Hear Katrina Insurer Appeal 30 MIT Prints Solar Cells on Paper; Could It Work as

Car Paint? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Mitchell International and CCC Crash Course Highlight 2010 Industry Changes . . . . . . . . . . . . . . . . . . . . . 20 MO Auto Dealer Pleads Guilty to Helping Al-Qaida . . . . 4 Mr. Gorillalilla- Weaver. . . . . . . . . . . . . . . . . . . . . . . . 20 Nissan Says There will Be Leaf Shortage . . . . . . . . . . . . 36 Northwestern Louisiana Collision Repair Association Offers Estimating Courses . . . . . . . . . . . . . . . . . . . 12 Okla. Price Gouging Law Takes Effect in 56 Counties . 37 Okla. City Staged Car Wrecks . . . . . . . . . . . . . . . . . . . 37 Open Clearcoat Blends- Gesterkamp . . . . . . . . . . . . . . 10 Parts for Profit 3—Increasing Sales. . . . . . . . . . . . . . 27 PBE Jobber: Friend or Ally?- Arnold . . . . . . . . . . . . . . 17 PPG Says 10,000 Techs Converted . . . . . . . . . . . . . . . 9 Randy A. Harris, Collision Student at Ohio Tech College Wins Flying Tiger Design Contest. . . . . . . . . . . . . . 25 Rouse Named ABRA President . . . . . . . . . . . . . . . . . . 9 Save Marketing Money By ‘Piggybacking’- Franklin . . 16 Shreveport, Louisiana’s Caddo School Named ‘2010 School of the Year’ . . . . . . . . . . . . . . . . . . . . . . . . 14 Silsbee Texas Gets New Fasulo’s Paint and Body Shop- Schroeder. . . . . . . . . . . . . . . . . . . . . . . . . . . 31 So. Cal Shop Goes to DuPont™ Cromax® Pro for One-Coat Coverage- Attanasio. . . . . . . . . . . . . . . . . . 26 Spray Gun Repair Inc. Helps Customers Get Full Value from their Guns . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 State Farm Gets 9.9% Home Rate Hike in Louisiana . . 37 Sterling Autobody Earns BBB A+ . . . . . . . . . . . . . . . . 9 Storms Across N. Texas and Oklahoma Leave Floods, Power Outages and Millions in Damages . . . . . . . . . 1 Students Apply For Craftsman Tool Grant From I-CAR in Record Numbers . . . . . . . . . . . . . . . . . . . . . . . 36 Study Pokes Holes in Air Bag Standards But No Explanation Provided to Why Belts Not an Advantage . 6 Texas Automotive Purchasing Group Earns Dividend . 37 The Autoholics: A New TV Show Concept . . . . . . . . . 23 Toyota Makes $2.2B Annual Profit . . . . . . . . . . . . . . . . 9 Toyota President: ‘03 Turning Point in Quality Decline . 4 Was this Noise Caused by the Repair?- Espersen . . . 22 West Leads Country in Stolen Vehicle Statistics . . . . . . 8

Southwest

Indexof Advertisers

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Stefan Gesterkamp, Rich Evans Advertising Sales: Joe Momber, Christina Shubert (800) 699-8251 Advertising Sales Assistant: Stephanie Bowling Art Director: Rodolfo Garcia

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Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.

Autobody News

Box 1400, Oceanside, CA 92051 (800) 699-8251 (214) 371-6626 Fax www.autobodynews.com Email: news@autobodynews.com Aegis Tools . . . . . . . . . . . . . . . . . . . . . . 16

Mercedes-Benz of Oklahoma . . . . . . . . . 3

Autoland Scientech. . . . . . . . . . . . . . . . 21

Mitsubishi Wholesale Parts Dealers . . . 38

Allen Samuels Dodge Katy . . . . . . . . . . . 5

BMW Wholesale Parts Dealers . . . . . . . 34

Chacon Suzuki . . . . . . . . . . . . . . . . . . . . 4

Chassis Liner. . . . . . . . . . . . . . . . . . . . . 14

Chevyland . . . . . . . . . . . . . . . . . . . . . . . 10

Classifieds . . . . . . . . . . . . . . . . . . . . . . . 39

David McDavid . . . . . . . . . . . . . . . . . . . 35 Ford Wholesale Parts Dealers

TX, OK, LA, NM . . . . . . . . . . . . . . . . . 11

Fredy Kia . . . . . . . . . . . . . . . . . . . . . . . . . 9

GM Wholesale Parts Dealers . . . . . . . . 12 Honda/Acura Wholesale Parts Dealers 36

Huffines Hyundai McKinney . . . . . . . . . 12

Huffines Hyundai Plano . . . . . . . . . . . . 12 Hyundai Wholesale Parts Dealers . . . . 37 Kia Motors Wholesale Parts Dealers . . . 29

LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Mazda Wholesale Parts Dealers . . . . . . 36

Mike Calvert Toyota. . . . . . . . . . . . . . . . 31 Mobile Lift Jack . . . . . . . . . . . . . . . . . . . 17 MOPAR Wholesale Parts Dealers . . . . . . 6

Nissan/Infiniti Wholesale Parts Dealers . . . 38

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Northstar Dodge-Chrysler-Jeep . . . . . . . 8

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Ray Huffines Chevrolet . . . . . . . . . . . . . . 7

Mercedes-Benz of Oklahoma City

Park Place Lexus. . . . . . . . . . . . . . . . . . . 4

Replica Plastics . . . . . . . . . . . . . . . . . . . . 9

Shoot Suits . . . . . . . . . . . . . . . . . . . . . . 24

SCA Appraisal Company . . . . . . . . . . . . 8

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Subaru Wholesale Parts Dealers . . . . . . 2

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Soft-Sanders from Style-Line, Corp . . . 25

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Suzuki Wholesale Parts Dealers . . . . . . 32

Spray Gun Repair . . . . . . . . . . . . . . . . . 13

Toyota Wholesale Parts Dealers . . . . . . 30 Volkswagen Wholesale Parts Dealers . . . 33

Volvo Wholesale Parts Dealers . . . . . . . 33

Young Chevrolet . . . . . . . . . . . . . . . . . . 30

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 3

MO Auto Dealer Pleads Guilty to Helping Al-Qaida According to reports from Associated Press and Reuters, a used car dealer in Kansas City, Missouri, pleaded guilty on May 21 to providing support to al Qaeda by sending about $23,500 to the militant group, the U.S. Justice Department said. Khalid Ouazzani, 32, a naturalized U.S. citizen from Morocco, was accused of swearing allegiance to alQaida in 2008 and using money from a commercial loan to give to the group in 2007, prosecutors said. Ouazzani admitted Khalid Ouazzani he sent $23,500 to al-Qaida between August 2007 and mid2008. Prosecutors said Ouazzani provided false information to obtain a $175,000 line-of-credit commercial loan in April

2007 to run his business, Truman Used Auto Parts. The business opened in 2006 and specialized in the retail business of buying and selling of used auto parts and used cars. Ouazzani submitted a “borrowing base certificate” in May 2007 substantially overstating the amount of business inventory Truman Auto Parts had, claiming that the business inventory totaled over $680,000. It was a further part of the scheme to defraud Union Bank that in April 2007, Ouazzani caused Union Bank to make a $175,000 commercial loan line of credit from Union Bank to Hafssa LLC, dba Truman Used Auto Parts for “working capital” based on material false and fraudulent financial information Ouazzani submitted. A sentencing date has not been set. Ouazzani waived his right to a grand jury; the charges against him had been sealed since February 3.

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ASA Fly-in Meets to Ask for McCarran-Ferguson Repeal

Independent automotive repairers nationwide met recently with their U.S. representatives and senators to discuss a full repeal of the McCarran-FergusonAct. The meetings were held as part of the Automotive ServiceAssociation's “Taking the Hill” Fly-In and AMI Leadership Conference in Washington, D.C., May 11–12. Since 1945, insurance companies have had a “limited” exemption from federal antitrust laws that apply to most other industries assured to them through an act of Congress. The McCarran-FergusonAct provides that federal antitrust law applies to the “business of insurance” only to the extent that such business is not regulated by state law. The anti-competitive consequences of McCarran-Ferguson impact both consumers and small businesses that have to deal with insurers. The Senate is considering Senate Bill 3217, theAmerican Financial Stability Act of 2010, which overhauls the nation's financial regulations. U.S. Sen. Patrick Leahy, D-Vt., Senate Judiciary Committee chairman, is considering offering an amendment on the bill to repeal the McCarran-Ferguson Act for health insurers only. Leahy has been the leading Senate advocate for a repeal of McCarran. The U.S. House of Representatives passed a repeal of McCarran earlier for health insurers only.ASAsupports a full repeal of the McCarran-Ferguson Act.

Toyota President Says 2003 Was the Turning Point in Quality Decline

The president of Toyota told Automotive News that 2003 was the turning point for the automaker’s decline in quality. The company was unable to follow “The Toyota Way,” the production system that put Toyota among world’s most respected automakers. Akio Toyoda said in the interview: “In 2003, we surpassed the 6 million sales mark, and after that the rate of increase kept growing... We look at that as the turning point... When we hit the 6 million mark, we maybe couldn’t apply the Toyota Way as thoroughly as we should have.” Toyoda says getting too big wasn’t Toyota’s only problem: He blamed the company’s inability to communicate with itself around the world for part of the problem, which makes it look like Toyota has tried to hide its troubles. “Toyota doesn’t go about hiding things and trying to deceive people,” said Toyoda. “But if you are looking from the outside, and we are taking a long time to give a response or do something, they come to the conclusion that maybe we are hiding something.” Toyota needs to wean itself off sales incentives in the U.S. and revive the sagging Scion youth brand, said Toyoda. The Scion brand will get special attention in trying to turn around Toyota.

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Automotive Aftermarket Industry Objects to What it Calls ‘Misleading Public Relations Initiative’ by AutoMD The following is a joint statement by the Automotive Service Association (ASA) and Automotive Service Councils of California (ASCCA). The organizations are national and statewide membership organizations, respectively, of aftermarket service repair facilities and represent thousands of small business owners. “Recent public relations initiatives by AutoMD, a division of US Auto Parts Network, warrant a strong and clear response from the automotive repair and service industry. The company’s recent activities include a press release ranking U.S. cities according to the “honesty” of auto repair facilities in each city, as well as a television segment on the CBS Early Show. In both of these PR efforts the company makes several claims and promotes a set of conclusions that are inaccurate and based on flawed logic and biased methods. We take particular issue with two of AutoMD’s efforts: 1) In a press release (Feb. 24, 2010), the company reported that it had “conducted a fairness check of over 600 shops in the top-50 DMAs” (including a range of dealers, independent shops, and franchises like Pep Boys)” to create a “Re-

pair Shop Fairness Report” that ranked the “best and worst cities for auto repair.” A company that distributes auto parts knows better than anyone that parts quality and price varies substantially by brand, often 100% or more, and no mention of parts brand or quality was included in the survey. It also failed to account for differences in technician training, warranties included with the parts used, quality of equipment used and level of service provided by each type of facility. Furthermore, in each of the 50 cities included in their survey there are thousands of dealers, independent shops and chain stores. Their survey included an average of 12 shops per city, a number not anywhere close to what is needed to get an accurate or representative sample. Using biased methods allows US Auto Parts to reach whatever conclusions it desires. 2) In a segment on the CBS Early Show (April 14, 2010), the company brought its specially prepared vehicles to shops and dealerships in several states, asking for quotes on a front brake pad replacement at several shops. The CEO, Shane Evangelist, claimed the job should cost “about $180” and stated emphatically that mechanics were ripping off consumers by charging more than

$180. One mechanic that offered to do the job for $169 was widely praised for his honesty. Once again, no mention of parts quality, technician training or the quality of the equipment used in the facility was ever made, especially since quotes were being compared across multiple cities, each with different labor rates. More important, at no time during the broadcast was it revealed that AutoMD is owned by US Auto Parts, and according to its CEO during investor presentations, is using AutoMD as a lead generation platform for selling its parts. Taking the auto repair industry to task for its lack of transparency while failing to disclose its own self-serving motives is misleading. Overall, US Auto Parts’ publicity campaigns are misleading to consumers and undermine our longstanding efforts to educate the motoring public and continually improve the professionalism of the industry. They perpetuate consumer mistrust of automotive professionals, devalue the development of expertise through ongoing training and education, ignore best practices and promote a race to the bottom. US Auto Parts’ attacks put repairers in a bad light and undermine the work of honest and reputable automotive service shops.”

Lo Jack Device Credited with $45K Recovery in Louisiana

Louisiana State reported that information from Lo Jack Inc. related to a stolen 2006 Suzuki Hayabusa motorcycle in the LaPlace area aided in the recovery of $45,000 worth of stolen property. The Suzuki was reported stolen from Shreveport, La. By using the Lo Jack tracking device, Troopers located a Ford F-150 and a Haulmark motorcycle trailer parked in the Home Depot parking lot in LaPlace. Troopers obtained a search warrant for the F-150 and trailer. Inside the trailer, Troopers found the stolen Suzuki and two other motorcycles (2006 Kawasaki Ninja and 2004 Yamaha R1) that were also reported stolen from Shreveport on April 29. The F-150 was stolen from Lafayette, La., on April 10 and the Haulmark trailer was stolen from Pass Christian, Miss., on Feb. 15, 2010. The recovered property is valued at approximately $45,000. No arrests have been made and the investigation is ongoing. Lo Jack is a stolen vehicle recovery system that consists of a small radio frequency transceiver hidden in the vehicle. The transceiver has a unique code specifically tied to that vehicle's VIN number. When Lo Jack is activated, the transceiver sends out an inaudible signal that is automatically traced in Lo Jack equipped police units.

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 5

Study Pokes Holes in Air Bag Standards But No Explanation Provided to Why Belts Not an Advantage New research into front air bags in automobiles is raising troubling questions about their effectiveness for drivers wearing seat belts. About 80% of all drivers buckle up, but air bag standards are intended to maximize protection for unbelted drivers. In fact, the effectiveness of driver’s side air bags may actually be lower when you’re wearing a seat belt, according to a report from the Insurance Institute for Highway Safety. The research suggests that when compared with the versions they replaced, the newest air bags, required in all vehicles beginning in 2008, may place belted drivers at greater risk of death. Government standards for air bags are intended to maximize protection for unbelted drivers, a holdover from years ago when very few drivers buckled up. According to the IIHS research, male drivers not wearing seat belts in cars with advanced features had a 38% lower death rate than drivers strapped into cars that didn’t have advanced features. However, buckled-up drivers in cars with the special features and met the newest certification standards had a 21% higher risk of death

than drivers in cars with air bags that met older certification standards. These findings weren’t replicated for passengers. The newer air bag problems could be because supposedly “smart” sensors aren’t prompting cars to respond correctly to specific conditions. For instance, sensors that detect a short driver might not actually trigger the airbag to deploy or react fast enough, leading to more risk than protection. But despite the recent findings, safety officials still advise that drivers and passengers all wear seat belts. The finding has surprised carmakers, which were required to install the so-called smart bags in response to concerns that older versions were injuring drivers and passengers. The carmakers, along with federal safety regulators, are now trying to determine if there is cause for alarm. The research conducted by IIHS will be published this year in The Annals of

LKQ Says Wheel Reconditioning by Transwheel Passes All Testing

Keystone Automotive Industries and Transwheel Corp., subsidiaries of LKQ Corp., said a recent series of tests confirmed their wheel reconditioning technologies. All of the wheels tested met or exceeded the SAE J2530 and SAE J175 Technical Standards for dynamic radial and dynamic cornering fatigue, and impact testing. Keystone and Transwheel employ Independent Test Services (ITS) to monitor their wheel reconditioning capabilities. The reconditioned wheels of Keystone and Transwheel are analyzed by ITS under conditions that are more extreme than those specified by SAE International. All three fatigue and impact tests are performed on each wheel, and at double the required rotation levels for the dynamic cornering fatigue test. Frequent testing enables the subsidiaries of LKQ to ensure their production processes meet or exceed the industry’s technical standards. “We stand behind the quality of our wheel reconditioning program,” stated Jim Devlin, vice president of manufacturing for LKQ Corp. “We want installers and auto insurers to feel confident that they are using the highest quality wheels to repair their customers’ vehicles. Our wheels are reconditioned using production processes validated to meet SAE’s demanding testing requirements.” SAE Technical Standards serve as the common design requirements for the wheel manufacturing industry. Independent Test Services (www.wheeltest.com) has been providing testing services to Transwheel since 2000. 6 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

Epidemiology. Safety experts agree that wearing a seat belt is the most effective way to prevent death or serious injury in a crash. Air bags, meanwhile, have been credited with saving more than 25,000 lives, according to federal estimates. But the new research, based on a statistical analysis of more than 3,600 deaths of drivers and front-seat passengers in frontal crashes, seems to turn some of that conventional wisdom on its head, suggesting the newest air bags are helping unbelted people more than belted people. A 21 percent greater chance of belted drivers dying in cars equipped with the latest model of air bags, than those in vehicles with the previous model, is more than statistically significant, especially when the risk for unbelted drivers was unchanged. Within the auto industry, the research is heightening objections to the federal

safety standards that require carmakers to protect unbelted drivers. The study offers no explanation for the increased risk to belted drivers, but safety experts say that several factors could be at play: the complex new air bag systems must assess a number of conditions before determining whether to deploy, new crash-test requirements may have altered when and with how much force the bags deploy and changes to vehicle design may be increasing the amount of life-threatening force that occupants absorb during crashes. For manufacturers, protecting unbelted drivers adds a layer of complexity to air bag design, since the systems must detect whether an occupant is belted or unbelted and deploy with an appropriate amount of force, or suppress deployment, depending on the person’s size and proximity to the air bag.

AkzoNobel Honors Most Influential Women in Collision Repair Industry at Eleventh Annual Celebration

Six industry leaders were honored at the eleventh annual Most Influential Women in the Collision Repair Industry awards program held at the High Museum of Art in Atlanta on Wednesday, April 14, 2010. Janet Chaney, Stevensville, Montana; Erica Eversman, Bath, Ohio; Kimberly Hicks, Highland Park, Michigan; Beth Ann Meckel, Glen Burnie, Maryland; Linda Sommerhauser, Kansas City, Missouri; and Marcy Tieger, Irvine, California, were honored as the 2010 Most Influential Women in the Collision Repair Industry. The awards ceremony marked the eleventh anniversary of the Most Influential Women in Collision Repair. “In the spirit of sustainability, AkzoNobel is proud to honor an exceptional group of leaders who are working for the betterment of our industry and our global communities and to provide opportunities for future leaders through the

“As the Most Influential Women program begins its second decade, we continue to recognize the outstanding accomplishments of women in a traditionally male-dominated industry,” Loden notes. “The program has helped to establish collision repair as an industry that respects diversity and Left to right in the photo are: Marcy Tieger, Irvine, CA; Kimberly Hicks, Highland Park, MI; Janet Chaney, Stevensville, MT; Linda Sommerhauser, Kansas City, recognizes contribuMO; Erica Eversman, Bath, OH; and Beth Meckel, Glen Burnie, MD tions despite gender.” The Most Influential I-CAR Education Scholarship Fund,” said Women in Collision Repair 2010 represent AkzoNobel Car Refinishes Americas Direc- the leadership and influence of women tor of Marketing, Tim Loden. throughout the industry, including collision

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repair shops, industry associations, manufacturers, distributors and public affairs. The winners are as follows: ● Janet Chaney, owner of Cave Creek Business Development, brings a variety of experiences in the collision repair industry to her work with collision repair shops, state associations, and a group of auto recyclers. Chaney is secretary of the National Auto Body Council and co-chair of the PRIDE award. ● Erica Eversman is founder and chief counsel of Vehicle Information Services, Inc., a company that provides information on diminished value of automobiles to insurance companies, financial institutions, government agencies, and consumers. Eversman is a nationally recognized industry advocate and an expert on the legal rights and responsibilities of the collision repair professional. ● As president of Micro Rim, Kimberly Hicks manages the only U.S. owned manufacturer of automotive replacement bumpers, and she oversees more than 100 employees at two plants. Active in promoting quality aftermarket parts, she serves as a board member of the Automotive Body Parts Association and Overseas Automotive Council, as well as other industry groups. ● Beth Meckel, body shop manager for Mile One Collision Center in Glen Burnie, Maryland, has helped to increase the shop’s business with her professional knowledge and outstanding management skills.As a craft advisor at area vocational/technical schools and segment leader and judge for Maryland’s Skills USA competition, she is committed to training and mentoring young students to prepare them for successful careers. ● Linda Sommerhauser, owner of Autobody Color Company, Inc., manages a successful auto paint business with four locations. Her influence is felt nationwide as a founding member of Society of Collision Repair Specialists (SCRS) and the first woman to serve on the board of Automotive Service Industry Association. A member of the Women’s Industry Network, she is personally involved in bringing young women into the industry. ● Marcy Tieger, managing director of Symphony Advisors, LLC, consults with collision repair shops, suppliers, and insurance claims organizations. A former attorney, Tieger frequently lectures and contributes articles to industry publications. She is a founding member and board member of the Women’s Industry Network (WIN), a trustee and officer of the Collision Industry Foundation, and a member of the Collision Industry Conference (CIC), Industry Relations Committee. Akzo Nobel continued its awarding of a scholarship of $25,000 in the name of the Most Influential Women to the I-CAR Education Foundation. The funds will be used for prospective female students pursuing a career in the collision repair industry.

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 7

Gerber Collision’s New Collision Repair Center in OK The Boyd Group Inc. announced the opening of its new repair center in

Owasso, Oklahoma at 11440 E 81st Street, North Owasso. The repair center, previously known as the Collision Center of Owasso, Inc., was recently acquired by Boyd Group and now operates under the Gerber Collision & Glass trade name. The new location is approximately 17,500 square feet, with nearly 16,000 square feet of production space. With this addition, Gerber Collision & Glass now operates three repair centers in Oklahoma and 54 overall in the U.S.

“We continue to execute our growth strategy of expanding our network of repair centers in the U.S. Our latest acquisition in Owasso allows Gerber Collision & Glass to serve consumers and insurance clients in the fast-growing suburbs of Tulsa.” said Tim O’Day, President and COO of the Boyd Group’s U.S. Operations. The Boyd Group is continuously looking to add new collision repair locations to its existing network in the U.S. and Canada. Interested collision repair center owners are asked to contact Kim Allen, Business Development Manager for Gerber Collision & Glass, for more information.

West Leads Country in Stolen Vehicle Statistics

Although auto theft rates have declined for six straight years, some cities in the West had the highest stolen car rates in the nation last year, the National Insurance Crime Bureau has reported. The city with the highest auto theft rate in the nation is the border town of Laredo, Texas, and it’s followed by other small- to mid-size Western cities. It isn’t until you hit No. 7 on the list until the country’s larger cities start showing up, and they, too, are in the West. The ranking: 1. Laredo, TX 2. Modesto, CA 3. Bakersfield, CA 4. Stockton, CA 5. Fresno, CA 6. Yakima, WA 7.SanFrancisco/Oakland/Fremont,CA 8. Visalia/Porterville, CA 9. Las Vegas/Paradise, NV 10. Albuquerque, NM NICB’s Hot Spots report examines vehicle theft data obtained from the National Crime Information Center for each of the nation’s metropolitan areas. Of the 366 metropolitan areas within the U.S., 304, or 83%, reported lower thefts in 2009 than 2008. The bureau says in the FBI’s 2009 preliminary semi-annual crime report, published last December, that vehicle theft may drop by as much as 18 percent from 2008’s numbers.

Dallas DA Insurance Fraud Indictments Net 29

The Texas Department of Insurance (TDI), through its partnership with the Dallas County District Attorney’s (DA) office, has obtained indictments of 29 individuals for insurance fraud, with eight cases still pending before the Dallas County Grand Jury. The indictments involve approximately $1.25 million in losses to insurers and consumers. The fraud offenses that prompted the investigations and indictments primarily involve the submission of fraudulent insurance claims. The offenses include worker’s compensation fraud, staged slip and fall accidents, disability insurance fraud, health insurance fraud, and false reports of vehicle theft by owners, in addition to cases of premium theft and fraud by agents against insurance companies and consumers. Under the Texas Penal Code, it is a crime to file a false insurance claim with an insurance company and claim amounts of more than $1,500 constitute a felony. The Texas Insurance Code also defines criminal acts by insurance agents including application fraud and the misappropriation or conversion of money belonging to an insurer or insured. TDI began an anti-fraud initiative six years ago. Since 2005, TDI has employed a prosecutor who is assigned to the DA’s Specialized Crime Division to focus on insurance fraud cases in Dallas County.

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Toyota Makes $2.2B Annual Profit

Rouse Named ABRA President

Sterling Autobody Earns BBB A+

PPG Says 10,000 Techs Converted

In a fiscal year marred with recalls and lawsuits, Toyota still managed to report a substantial profit these last 12 months and expects to earn even more in the coming fiscal year. Toyota reported a $2.2 billion annual profit, up from a $4.4 billion loss the previous year. This $6.6 billion swing happened despite the recall of nearly 10 million cars and a 7.7% dip in global sales. Toyota is still the world’s most profitable car company and expects its net profit to increase by 48% to $3.3 billion in the fiscal year that ends in March 2011.

Sterling Autobody Centers has earned the highest possible rating of A+ for its network of 62 stores repairing over 79,000 cars a year from BBB. Businesses are rated on 17 elements including the length of time in operation, overall complaint history with the BBB, and whether consumer complaints have been resolved in a timely manner and in good faith. Said Nick Notte, Sterling Autobody President, “It is a great honor and privilege to lead a team of over 1200 employees who keep customer service and operational excellence at the forefront of all they do.”

ABRA Auto Body & Glass announced March 17 the appointment of Duane Rouse, currently Executive Vice President & Chief Financial Officer, to the position of President & Chief Financial Officer. Rouse joined ABRA in 1996 as Vice President of Finance, Chief Financial Officer & Treasurer. In 1998 he was promoted to Executive Vice President, Chief Financial Officer, Secretary and Treasurer. Rouse is a Certified Public Accountant with a degree in accounting from the University of Wisconsin at LaCrosse. He was employed by Price Waterhouse and held senior management positions in several companies prior to joining ABRA.

More than 10,000 technicians across the United States and Canada have attended the PPG “Convert with Confidence” training program to help their transition to waterborne basecoat. PPG began the Convert with Confidence program in 2007 to provide shop owners, managers, and technicians with training and support before, during and after the conversions. Low VOC basecoats will also be mandated for twelve northeastern states and the District of Columbia as early as 2012. It is only a matter of time until waterborne systems will be recommended or required throughout the country.

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Insure.com Figures Least Expensive to Insure Back in March, Insure.com released a study that revealed the top 20 most- and least-expensive vehicles to insure in America. Now, more research has determined the top 10 least-expensive vehicles to insure by class, and Insure.com is naming the least-expensive vehicles to insure in America today by class. The Mazda Tribute I SUV is the least-expensive vehicle to insure in the U.S. today when configured with a fourcylinder engine a FWD only. All told, it will cost you an average of $1070.25 to insure annually, just $25.01 than the runner-up Honda Odyssey LX. Splurging on AWD won't hurt you much, as the fourcylinder Tribute I with AWD is just $1103.29 per year on average and ranks third. Interestingly enough, the top 20 least-expensive vehicles to insure are all vans and SUVs. Naturally, the Tribute also earns the distinction of being the least-expensive SUV to insure as well as the least-expensive vehicle to insure overall. In the Car category, the boxy Dodge Caliber takes the win, costing just $1196.27 per year on average. The Buick LaCrosse CX and Toyota Yaris hatch trail closely behind in second and third place respectively. As noted above, the Honda Odyssey LX came in second overall, costing just $1095.26 per year on average. That ensures it a victory in the Van category as

well. It's followed by a one-two punch from Chrysler with the Chrysler Town & Country LX and Dodge Grand Caravan SE in second and third respectively. Like the Car category, the winner of the Truck category didn't land in the top five overall, or even the top 10. But while the Dodge Caliber didn't even make the top 20, the Truck category winner just sneaked in at number 20 and it's the GMC Canyon Work Truck. When configured as a regular cab model with the four-cylinder engine and RWD only, it'll run you just $1152.39 per year on average in insurance costs. Coming in second and third are the two-door, RWD Toyota Tacoma and the four-door, RWD Chevrolet Colorado Work Truck. Insure.com hired pollster Quadrant Information Services to calculate the average insurance premiums for a single, 40-year-old male driver who commutes 12 miles to work. This fictional driver has good credit, a clean record, a $500 deductible on collision and comprehensive coverage and carries a typical coverage plan consisting of uninsured motorist coverage, $100,000 of injury liability coverage for one person, $300,000 of coverage for all injuries and $50,000 of coverage for property damage. Averages were drawn from rates offered by six major insurance companies for 10 zip codes in each of the 50 states.

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Paint Management

Open Clearcoat Blends with Stefan Gesterkamp

Although I know better than being surprised about issues that never seem to go away, it still puzzles me how we can hold on to some for as long as we do. Open clearcoat blends have been attempted and discussed for many years and not once since the departure of lacquer type technology has anybody with technical knowledge decided that they are a really good idea. Granted, from a non-technical, purely financial point of view, they appear worth exploring. Fewer products applied should theoretically lower the cost of the repair, but the reality is quiet the opposite. Let’s pretend, for the sake of conversation, that an open clearcoat blend within a panel would actually be durable enough to last. Prepping the panel for a successful spot repair is far more involved and labor intensive than a complete refinish of the surface. As a result, it eats up more expenses in labor cost than the additional clearcoat would ever be worth. Let’s take a closer look into the prep requirement to make this repair happen. After you thoroughly clean the surface and remove any wax or grease, the body tech must repair the damage very carefully. It’s critical to not unnecessarily disturb any paint film surrounding the repair. I know that it is frequently underestimated, but keeping a repair small requires a better trained technician and a higher skill level. It also takes more time to keep it small. The next step is key for this type of repair to stand a chance of success. It requires the shop to pre-polish the paint surface that you are going to blend your clear over with a heavy duty compound. This is followed of course by another round of surface cleaning.

At this point the paint department would prep and prime the repaired area and, again, spend extra time in the process of keeping it small. After the primer is cured, the surface is being prepped for the paint and blending process. This process requires the painter to step the sanding grid down in size as you get further out into the surrounding surface. The surface preparation also requires the technician to know exactly where his final blend is going to be. The clearcoat blend has to be over a sanded surface to give it a remote chance of durability, but it must be fine enough to be able to be buffed easily, without burning the edge. A successful paint application for this type of repair also requires a higher skill level on the painter’s part and actually more time to get it done right. The color match has to be closer; there is not much room to really effectively blend out a questionable color. Keeping the surface clean during paint application is also more critical and time consuming. The very thin, solvent-blended clearcoat edge is not giving you much product to work with when it comes to buffing out any particles. Now, after you have successfully overcome all these hurdles, it is back to polishing the panel for the second time. In all honesty, clients everywhere have expressed to me that it is sometimes hard to get properly paid for color-sand and buff the way it is, what are your chances to get paid twice? If you really take a close look into what it takes to perform an open clear blend within a panel, common sense would dictate that you simply abandon this type of procedure. The second part of the equation is that most major paint manufacturers will not

AkzoNobel Honors Top Independent Distributors

Accolades for the top 2009 AkzoNobel distributors were given during the closing ceremonies at the 2010 AkzoNobel Independent Wholesalers Conference. The Roosevelt Hotel in New Orleans, Louisiana was the location for the two day program which focused on market trends and business growth opportunities. Awards were given in the following three key categories:

Outstanding in Winning New Customers: Color and Equipment – Pelham, AL, PF3 Paint Supply – Wixom, MI, Hyman’s Specialty Paint – Chicago, IL, Automotive Color Inc. - Jackson, MS, Metro Automotive Paint – Miami, FL, Grinstead Group, Inc. – Louisville, KY Outstanding CSI Achievement: Tri-State Coatings – Shreveport, LA, Ohio

Automotive Supply – Findlay, OH, C & D Supply – Bridgeview, IL

Outstanding Overall Sales Growth: PF3 Paint Supply – Wixom, MI, Professional Automotive Paint – Atascadero, CA, Cajun Color Supply – Broussard, LA, TriState Coatings – Shreveport, LA, Automotive Color Inc. – Jackson, MS

“2009 marked one of the most challenging years in the history of our industry,” noted Doug Holmberg, Director of Sales for AkzoNobel Car Refinishes North America. “Each of the businesses recognized excelled due to a high level of knowledge, integrity and professionalism that are mainstays of their businesses.”

10 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

warranty an open clearcoat blend. The failure rate on this is too high. The more sun exposure a blend edge will get, the faster the deterioration of the edge. We have all seen the clearcoat blends on sail panels breaking down. Car manufacturers like Toyota and others clearly express their opinions on this subject and require full-panel clear coating on all of their vehicles. If you start thinking about it, it makes good sense to avoid open blends for more then one reason. Besides the obvious culprits, UV-ray-exposure and chemical fallout, that continuously deteriorate the paint’s surface, do you even know what type of clear is on a vehicle you are trying to repair? If you are not sure if the clear coated surface of the car is either a pre-flexed, anti scratch, self healing, powder coated or nano technology type clear, then how can you determine the proper technique or product choice? Different clearcoat technologies have different properties and they may require

customized solutions. Let’s just take a look at one of those properties that is unique and directly related to the specific paint technology on the vehicle. It is the expansion and contraction ratio of the paint film itself. This ratio can greatly impact the blends durability. If the OEM clearcoat expansion and contraction ratio differs during weather related heat-up and cool-down from that of the refinish product, the super thin transition between both coatings will not stand a chance to overcome the ongoing physical stress. By the way, these differences are not a problem for surfaces that are going to be completely clear coated! And even if you would know the exact expansion and contraction ratios, making this type of repair consistently work for you will be challenging. Insurers and shops alike say that they want the best possible repair and pre-accident conditions for their clients’ vehicles. If this is the case, then why are we still playing with the idea of sub-standard repairs?

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Make us your one-stop shop today! www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 11

Northwestern Louisiana Collision Repair Association Offers Estimating Courses

The Northwestern Louisiana Collision Repair Association (NWLCRA) held several estimating courses May 11, 12 and 13 at the Louisiana Technical School Collision in Shreveport, LA.

Two Best Practices beginners’ courses were taught for free as well as an Advanced Estimating course which carried a $25 fee. Bill Burnside, NWLCRA past pres-

The computers at the school are in the class so shop owners who use Mitchell Estimating tools can help Doug, displaying a common goal that you seldom see anywhere: (L to R) Kevin Adams, Krystal Auto Collision, Butch Naar, Moffitt VW; Chris Fielder, Fielder Paint & Body; Doug England, Doug’s Paint & Body Shop, Doug Revit, Shouse Collision (photo credit: Debbie Hooge)

(L to R): Bill Burnside of Tri-State Coatings (past president of association and coordinator of the event; Chris Fielder of Fielder Paint & Body, current President of association; Chris Shepherd, Louisiana Technical College which hosted the event and immediate past president of association; Dave Gauthier, who has 50 years in the industry (photo credit: Debbie Hooge)

Mitchell International sponsored the courses which were taught by Dave Gauthier and provided basic as well as advanced techniques in the collision repair estimation field.

ident and coordinator of this event, said, “It went fairly well, we had a good turnout.” He also said that the association would not object to holding the courses again in the future if interest was ex-

pressed from industry people in the area. The Northwestern Louisiana Collision Repair Association helps to promote the automotive collision industry as a whole as well as educating the public and people in the industry about proper repairs. The association also tackles industry issues and news during their meetings to inform members. The NWLCRA meets monthly to talk about news events

and learn from industry speakers. More information can be found on their website at www.nwlcra.org.

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Spray Gun Repair Inc. Helps Customers Get Full Value from their Guns

Paul Masters, the owner of Spray Gun Repair Inc. of 344 Chase Rd in Thompson, Connecticut, has been rebuilding and cleaning Spray Guns since 1976. At that time, he was working at his family-owned business, Masters Auto Body Supplies, where he learned to rebuild and properly clean spray guns to meet customer needs and to extend the useful life of their automotive paint spray guns. Masters has heard the same stories from spray gun users in applications as different as furniture and cabinet refinishers to auto painters. He knows the prevailing attitude is “When my spray gun stops working properly, I toss it under my bench and buy a new one.” This he knows to be a senseless waste of time and money. He’s identified four basic levels of spray gun maintainance: daily lubrication, periodic maintainance (best performed at the end of the work week), thorough cleaning (if the periodic maintainance doesn’t prevent the problem), and eventually rebuilding the spray gun (replacing all the gaskets, seals, and packings). Masters views his business as both lean and green, in the same way a shop would view any more efficient, cost effective process. But he sees even greater demands now given the new EPA regulations

for efficient transfer, whether a shop is spraying waterborne or solvent, or both. Replacing a good gun that only needs correct service is both expensive and wasteful. You can recondition a gun for a fraction of the cost of replacing it.

cility, Paul Masters of Spray Gun Repair Inc. is known throughout the industry as the place to send your guns to be repaired.

Evolution of The Company Spray Gun Repair Inc. has been in business since February 1995, and the company has literally exploded in size. Starting with only a few customers, Spray Gun Re-

State of The Art Service With the requirements of the customer increasing, and speedy service a big part of those requirements, the company has adapted to the demands of its customers. With the introduction of computers and state-of-the-art software, Spray Gun Repair Inc. can handle any sort of request

pair now has well over 2200 customers that request Paul Masters’ services on a regular basis. The great majority of those customers are jobbers and warehouses that need a good and reliable high quality cleaning facility that Spray Gun Repair Inc. provides. With his numerous skilled employees and state of the art cleaning and repair fa-

with the professionalism and respect the customer is looking for. The advanced computer and diagnostic network systems employed at Spray Gun Repair Inc. can help the customer realize full value from his or her investment in the equipment. Not unlike a comfortable pair of shoes which fit better in the latter half of their life than when they’re being broken

in, a good and familiar spray gun performs better and more consistently than an unfamiliar one, regardless of the new ones’ quality. With multiple workstations and start of the art shipping software, the company can record when the spray gun was repaired, shipped to, received by whom and what parts were utilized. This gives the customer a tremendous amount of information and the assurance that his or her company will receive the spray gun on time and in good condition. If future repairs need to be made, this data is helpful in diagnosing and forestalling any new repairs. Over the years, Paul Masters has shared his knowledge of spray guns in many ways. He has been featured in a video called How to Master your Spray Gun which is an informative demonstration of how to rebuild various Models/ Brands of spray guns. Produced by Spray Gun Solutions Inc. of Arvada, CO, and available at his website: www.spraygunrepair.com. Below is Masters’ recommended procedure for periodic maintainance. To read a more complete version of “The ABCs of Spray Gun Maintainance” contact Paul Masters at his website, or call toll free: 888-452-1095.

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Step-1. Start by brushing the outside of the air cap using the GP brush.

Step-2. Locate the needle in your seven piece needle set that fits the air holes in the face of the air cap and make sure they are open.

Step-3. Locate the appropriate brush in the five-piece mini brush kit and clean the center hole of the air cap (fluid passage).

Step-4. Using the same kit, clean the air horns of the cap (front and back).

Step-5. Use the 3/16-in. end brush to clean the inside of the fluid tip.

Step-6. Using the five-piece mini brush kit, clean the needle seat (center hole) of the fluid tip.

Step-7. The same kit is used for cleaning all the air holes in the fluid tip.

Step-8 and 9. A brush in the same kit is also used to clean all the air holes in the baffle (front and back). Wipe your needle and lubricate. Be sure to lubricate the needle packing, air valve and trigger stud. The best time for this procedure is a Friday afternoon so your equipment is ready for use at the start of the next week.

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www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 13

Shreveport, Louisiana’s Caddo School Named ‘2010 School of the Year’

14 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

Caddo Career & Technology Center, a vocational high school in Shreveport, LA, was named the Tomorrow’s Technician/Chicago Pneumatic 2010 School of the Year. Students’ training begins outside the classroom, where instructor Mike Falkner and other instructors greet them at the door with a firm handshake and a good morning. Shirts must be tucked in, name tags must be visible and they’re reminded to look people in the eye when they speak.

“They really want this program to work, and it has gotten better every year,” said Bobby Frugé, assistant service manager at Chevyland on Youree Drive. The dealership recruits and hires interns from the program every year, said Frugé, who meets quarterly with nearly local 20 service managers to discuss ways to improve the training program. Students interview with local dealerships and are selected for summer internships that often lead to full-time jobs. Strong

“We run our class just as though they were going to work,” said Gary Weese, who with Falkner teaches students about everything under a car from bumper to bumper. On hand to present the award and tools to the school were representatives from Tomorrow’s Technician, program sponsors Chicago Pneumatic and WIX Filters and custom hot-rod designer, builder and painter Rich Evans of Huntington Beach Bodyworks. More than 300 applications from secondary and community colleges were submitted for the contest, which recognizes the top automotive technical schools and instructors throughout the country. This was the first time a high school has won the award. Stevens said the selection committee received a four-inch binder full of heartfelt recommendations from students, teachers, parents and community members about the school’s program. Studentteacher ratio, graduation rates and awards and recognitions also were considered. “It’s impossible to get a job at a dealership without this (program),” said senior Jacob Miller. His internship at Mansfield Auto World will transition into a full-time job next month as an automotive technician. About 80 students are in the automotive technology program and, yes, there are a few girls.

relationships with the business community has led to more than $400,000 worth of equipment and cars being donated to the school. The program was the first in the state to receive the National Automotive Technician Education Foundation certification, and students have competed and placed in various tournaments, including the Ford AAA in Alexandria and the National Automotive Technology Competition in New York. Besides the bragging rights of being named the nation’s best automotive school, CC&TC will also receive: $10,000 in Chicago Pneumatic Tools; $5,000 in WIX Filters; one-day WIX Filtration Learning Experience at the school; a trip for 4 to Charlotte, NC; one-day WIX Institute of Filtration Technology and WIX Factory Tour; Joe Gibbs Racing Tour and Chicago Pneumatic tool demonstration; and Chicago Pneumatic and WIX Filters gear. See also Rich Evans’ column this issue.

www.autobodynews.com CHECK IT OUT!

Shop and Product Showcase

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

with Ed Attanasio

California Shop Credits Mitchell’s Ultramate and RepairCenter for Managing Growth

Precision Body Shop & Detail, with two locations in Colma and San Rafael, CA, has grown rapidly, with more and more cars coming through every month. Having lots of work can be a blessing or a curse, because organizational and production bottlenecks can arise in minutes within a busy work environment. Precision has not only survived, but thrived during a recession. They give a lot of credit to Mitchell International Inc. and the decision to adopt their market-leading business management systems. Precision Body Shop & Detail was started 10 years ago with just three employees detailing cars primarily for new car dealerships throughout the Bay Area. In 2004, Precision’s dealerships started inquiring about doing minor body work on their fleets and the company jumped at the opportunity. “We started out doing primarily paint, panel and hanging bumpers to go with our detailing for dealerships,” Caprini said. “Then, we realized we should do it all. So, starting in ’06, we began pursuing all forms of collision repair and it’s been a great business model for us.” Caprini and his partner Lou Hanhan have tapped into their complementary skills to create a company that makes a profit and is poised for expansion.

jacent 6,000-sq.-ft of space within the year. Precision’s relationship with Mitchell has been highly beneficial for controlling and monitoring the company’s production flow.

wanted to incorporate, it proved to be a wise decision. Caprini feels that the RepairCenter is indispensible to his operation. “It’s been a huge part of everything we’re doing here,” Caprini said. “I look at

Precision’s Body Prep Techs (from left) Robert Lucero, Manuel Lucero and Alejandro Perez.

“You can’t store 120 cars every month in your head. You’re going to lose track of where each vehicle is in the repair process, if you can’t accurately keep this information in one location that you can access and alter easily. That’s what the Mitchell’s RepairCenter brought to our business and it’s proven to be invaluable,” Caprini said. Precision initially purchased the Ultramate Estimate program then added RepairCenter last year, and the shop has already seen some significant improvement on several fronts. “We’ve used their RepairCenter now for about seven months and it’s been a great experience. They help us manage the entire day-to-day repair process and give us real-time control and analysis of everything we do. It’s quickly become a big part of our lives around here and it’s provided us with a shop’s single integrated access point. That’s maybe the most important thing. Every tech, painter and estimator accesses identical updated information, so we’re Precision Body Shop & Detail Co-owners Anthony Caprini (left) and his partner Lou Hanhan attribute improved proall on the same page all the time,” he duction to adopting Mitchell’s RepairCenter system. said. According to Mitchell, “The “I’m more of a numbers person and a RepairCenter is the collision repair inproduction process guy and Lou is very dustry’s first single shop workspace to connected to the car dealerships in this manage the repair, the customer and the area, so we make a very effective team. On business—and just about everything in top of that, we have an excellent crew. between. RepairCenter’s repair and opThey’ve definitely played a major role in portunity management capabilities help our success,” Caprini said. shops to capture more business, identify Today, Precision does nearly $4 mil- workflow bottlenecks and improve funclion in sales annually and employs 59 tionality.” people working out of two locations toWhen Precision added Mitchell Retaling 22,000-sq.-ft. The Colma location pairCenter in order to access all of the prowill be expanding with an additional ad- gram’s additional features the shop

it a minimum of 6–10 times every day. It’s our lifeline and we love it because it’s always on. The most important things it does for us are by acting as a virtual realtime whiteboard; the parts management

to help us and that’s so important.” A series of how-to videos produced by Mitchell also provided Precision with valuable ongoing education. “Their videos are excellent. You can get a grasp of what they’re doing quickly and easily. We refer them to them all the time and our estimator and office manager don’t have to deal with that whiteboard ever again, because everything is right there on the RepairCenter. Their lives are easier now thanks to Mitchell,” he said. Three months ago, Precision also added Mitchell’s Shop Clock, adding further track ability to its shop. “Now we’re able to see how long it takes take to do each job. If a repair takes 10 hours, for example, I can see where we’re at right there on the computer screen. If we’re ahead or behind on any repair, we can make changes on the fly, because the Shop Clock feature keeps us current and allows us to anticipate what we need to do to get it done within the allotted hours.”

The detailing crew at Precision processes approximately 300 vehicles per month.

and vendor management aspects are also very important, because it helps us to effectively order, receive and track parts. By making our daily lives easier, Mitchell has allowed us to concentrate on other things—like acquiring new business and cutting our cycle times.” One of the main benefits Caprini appreciates about Mitchell includes the training his shop received when they converted to RepairCenter. “Mitchell’s trainer came here for three full days and made an extremely professional presentation. He was easy to work with as he trained our entire front office staff. He answered all our questions while he was here on-site, and was available for follow-up questions for several weeks afterward. We can call them anytime and they’re quick to get back to us. If we ever have an issue, they’re right there

“Our cycle times are much improved and we’re able to better manage our shop overall. We’re doing 25% more work, yet we haven’t had to hire anyone new. Our efficiency is up and our productivity is the best it’s been. So, we’re feeling more confident about pursuing more business, because we know we can do it and do it well. Instead of spending all our time dealing with problems, we’re producing great work and Mitchell has played a significant role in our success.” Precision Body Shop & Detail 245 Collins Avenue Colma, California 94014

2nd location: 623 Irwin Street San Rafael, California 94901 (650) 992-9775

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 15

On Creative Marketing with Thomas Franklin

Tom Franklin has been a sales and marketing consultant for forty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tomâ&#x20AC;&#x2122;s columns at www.autobodynews.com under Columnists > Franklin

Save Marketing Money By â&#x20AC;&#x2DC;Piggybackingâ&#x20AC;&#x2122;

A local collision shop recently set up a table at a Volvo dealerâ&#x20AC;&#x2122;s Customer Car Care Clinic on a Saturday. While not the exclusive authorized repair facility for the Volvo dealer, the shop does a fair amount of repair work for the dealershipâ&#x20AC;&#x2122;s customers. The cost for the body shop for piggybacking on the Volvo dealerâ&#x20AC;&#x2122;s event was very little. Two people attended to pass out T-shirts, pens, and other specialty items. They also prompted questions from attendees on the condition of their vehicleâ&#x20AC;&#x2122;s autobody, and offered a free diagnosis for paint wear, structural problems and more. Several potential jobs came out of these discussions. With business volume and profits down these days, shops need to look for ways to cut costs and this includes marketing. Generally when business is slow the last expense a shop should cut is marketing, but piggybacking is a great way to stretch those marketing dollars. This same shop took advantage of another opportunity to share in an inexpensive event at a local high school. The school held a driver awareness day sponsored by the Department of Motor Vehicles, the Auto Club and a local TV station. A personal connection enabled the shop to set up an information table during the event. Since schools in this state no longer offer

driver training programs, there is a good opportunity for collision shops to promote opportunities for events like this in local high schools. An insurance partner is likely to participate, and it shouldnâ&#x20AC;&#x2122;t be too difficult to recruit a local driving school and possibly even a towing company to join in. Another shop has capitalized on a strong relationship with the ownerâ&#x20AC;&#x2122;s church congregation. The church has a high school and the shop provided free repairs on a school bus as a contribution that resulted in an invitation to share in a churchâ&#x20AC;&#x2122;s community event and to be listed in the church bulletin. Other local community events like parades and family fair days can provide a shop with an opportunity to have an information booth and to be listed in any event literature. Most of the costs of attracting attendees to these events have been covered by the hosting organization, and these are the biggest costs in putting on any event. I know of one dealership where about $10,000 was spent on a one-day open house. The cost of catering was far less that the promotional costs. The shop piggybacking on such events incurs practically no costs by comparison. Another way to do an inexpensive event is to put on a co-op event with an-

Chrysler Gets More Arbitration Wins, Only Two Have Won

More favorable news for Chrysler Group on the dealer arbitration front rolled in last week, with the automaker announcing it won three cases and three others were dismissed. Chrysler revealed late last week that the arbitrator ruled in Chrysler's favor in cases involving Hinckley Dodge in Utah, Tenafly Chrysler Jeep in New Jersey and Midway Motors in Massachusetts. The cases involving Ganley Chrysler, Ganley Dodge and Ganly East in Ohio were dismissed. Thus far in the process, only two dealershipsâ&#x20AC;&#x201D;Deland Dodge in Florida and Crain Chrysler Dodge Jeep in Arkansasâ&#x20AC;&#x201D; have won their arbitration

cases, Chrysler spokesperson Mike Palese told Auto Remarketing. "Chrysler Group is pleased the arbitrators agreed with the difficult dealer decisions made during the bankruptcy proceedings," officials said in a statement. "Chrysler presented evidence during the arbitration hearings that demonstrated the Company employed sound business judgment in restructuring its dealer network. They added: "Chrysler is confident the difficult decisions made during bankruptcy will continue to position the company for sustainable success and, ultimately, will enable the company to repay the U.S. taxpayer in a timely manner."

other vendor with a similar customer base. This might be a tire dealer, a glass vendor or an accessory shop, or it might include three or four vendors. The costsaving advantages are many but most valuable of all is the breadth of the combined databases for promoting the event. A typical tire shop probably has a database of several thousand prior customers and the body shop easily has as many if not more. As long as the vendors are not in competition with one another, a single mailing piece can include every business participating. Bulk mail can keep mailing costs down and if the businesses have been collecting e-mail addresses, promoting the event can be much cheaper. While piggybacking and co-op events are by far the least expensive way to approach marketing events, a shop shouldnâ&#x20AC;&#x2122;t overlook the advantages to putting on its own event. At the Volvo Customer Car Care Clinic many of the problems customers asked Volvo techs to address were issues easily addressed at a collision center. Headlight alignment,

windshield wiper fixes, tire adjustments and other problems with the carâ&#x20AC;&#x2122;s body rather than the motor or mechanical parts were most frequently requested. A body shop putting on a Customer Car Care Clinic could actually expand to include protective coatings, upholstery fixes, dash repairs and other elements generally addressed during autobody repair and refinishing. As the number of collisions diminishes and other elements reduce the volume of straight repair and refinish work coming to many shops, a shop owner might be wise to begin to create an image of the shop as more than just a place for autobody paint and repair. Automotive shops press customers to come in for an annual mechanical checkup. A forward looking autobody shop owner could make a good case for customers coming in for an annual vehicle interior and exterior finish evaluation, and with a little creative sales effort turn those evaluations into some added annual revenue.

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Jobber Journal with Richard Arnold

PBE Jobber: Friend or Ally?

This month we begin a new column in Autobody News which we’re calling Jobber Journal. Our first columnist/contributor is Richard Arnold. In future months we’ll bring you additional opinions and invite contributions from readers.

In my many years of working with a major PBE Jobber in the Southeast, I have observed that many of their shop customers undervalue them. Granted, a small minority of their customers totally understood the value jobbers brought to their shop. Over time I watched how this small minority of shops communicated with the Jobber sales reps and tech reps and used their knowledge and experience to grow their businesses. All the while the large majority of customers just kept on doing the same bad things over and over and getting the same poor results. Albert Einstein called insanity the act of “Doing the same thing over and over again and expecting different results.” I’m no Einstein, but I have to agree on his definition. I believe a good PBE Jobber is a

Richard Arnold is owner of Key Concept Services, a marketing firm based in Millerville, AL. He has provided marketing services to the collision industry since 1994 and served as the Marketing Director for Auto Color, Inc., now Finishmaster, in Atlanta, GA. He may be reached at keycon@centurytel.net or 256.276.9389.

friend and ally. A PBE Jobber can be a shop’s best friend or vendor partner. I don’t mean “friend” because they give you the biggest discount on paint and materials. I mean “friend” in the true sense of the word. A true friend wants to see you succeed, prosper and be happy. The best PBE Jobbers want to see all of their customers succeed, prosper and be happy. When their shop customers do well, they do well. Make your Jobber your ally and partner. The collision repair industry is changing at a faster pace now than ever before. New metals, waterborne coatings, lean production process, and multi-media marketing, just to name a few changes. A good relationship with your Jobber can pay big dividends. Consider them a member of your board of business advisors. Ask them for their thoughts and advice. Their answers may surprise and benefit you. What if your shop could get one more repair job out per week or even increase the output by just one more RO per month? More work should equate to more profit. A good PBE Jobber team can help

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you increase your business. So instead of beating him up for more discounts, listen to what he is telling you about how to increase your business and productivity. A good PBE Jobber has many valueadded programs to help their shop customers succeed. Many programs are in coordination with the paint manufacturer(s) they represent and some are straight from their own minds and experience. Most Jobbers are staffed by experienced and knowledgeable personnel who have worked in and around the collision repair industry for years. The one I worked for had a total combined work experience of over 1000 years. Why not tap that resource to your advantage? Just about any question you have related to your shop operation can usually be answered by your Jobber. If they don’t know the answer right away, a good Jobber will get the answer back to you. They know how a shop operates and want to help you cut operating expenses and increase productivity. You just have to let them help you. Ask questions. My dad always told me: the dumbest question is the one not asked. And yes, ask for your discount on paint and materials, but don’t make this the main issue. If you utilize your Jobber properly, the discount will be the last thing on your mind when you see the improved bottom line numbers. According to the latest 2009 industry data, collision shops (including both DRP & non-DRP) spend on average $2500 per month just on paint. The average ticket (RO) is right at $2300. The average shop writes 19 estimates per week, converts 67% of them to actual jobs and performs 12 jobs per week. What if a Jobber can show you how to go from 12 to 13 jobs per week? Or help you increase the closing percentage from 67% to 70% or higher? And what about upselling? How much could you increase your sales and profits if someone showed you the many different ways to increase each RO just by asking the customer the right questions? A good PBE Jobber can do all of this and more. As the marketing guy for the Jobber I worked with, I often went on sales calls when a shop showed interest in improving their marketing efforts. As we all know, marketing for the majority of collision shops consists of an ad in the Yellow Pages. We also know the world is moving faster than a big, thick paper book is now. According to the latest data, shops report that 77% of their business comes from word-of-mouth advertising and only 45%

from their DRP. OK, I already admitted I’m no Einstein, nor brain surgeon, nor rocket scientist, but this statistic tells me a lot. When it comes to advertising, there is nothing better than a word-of-mouth recommendation from a satisfied customer. And you know something else? A good PBE Jobber can provide you with access to seminars and training that will show you how to improve your overall marketing strategy to increase word-of-mouth advertising which will in turn increase your sales and profits. The average busy shop will see his Jobber sales representative about once a week and if you’re a really busy shop, probably more often. These visits from your Jobber are your (and your staff’s) opportunity to ask questions and tap this valuable resource. Anything you want to know about new products, new and better procedures, technical questions and more. And the Jobber sales rep can help in the front office, too. From improving your sales and marketing efforts to increasing your closing ratio and improving insurance relations; your Jobber can help your shop be the best at what it does. We’re into baseball season now and I love my Atlanta Braves. Just as a major league baseball team tries to put together the best talent in spring training to hit the field in April to win it all, you’re always trying to make sure you have the best team possible at your shop to win, too. And when the owners/managers of a baseball team see they have a deficiency, they go out seeking additional talent to shore up where they are weak. Think of your Jobber as a free agent talent just waiting to be called upon to help your team. Whether your shop is weak in production, painting, front-end office, sales, marketing or other areas, your Jobber has the experience and knowledge to help improve your team. Just like any great free agent in baseball, that talent does not come at a big discount. But, just like a big slugger or dominant closer will draw more fans to the ballpark and increase revenues for the baseball team, your Jobber is compensated by your increased purchases because your shop is growing and improving its bottom line profits. So the next time your Jobber sales rep visits your shop, look at him like the ace hurler you picked up to be your closing pitcher. Make him feel welcomed in your clubhouse because you know he’s going to help you win. Utilize his talent and experience to the fullest. The Jobber is your friend and he can help make your shop a winner.

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 17

Autobody News to Walk the Walk Autobody News has been reporting for years on what shops are doing, plan to do and need to do to be both “Lean and Green.” Can a modern shop really be one without the other? We are about to walk the walk, not just the talk, in our upcoming issues. Starting next month, Autobody News will be doing special country-wide coverage on the “lean and green” issues that shops are implementing both now and in the future. Our summer theme is “what does it mean to be lean and green?” and we will explore the business consequences of what we see as the new norm in collision repair and in business in general. Future cars will be more sensitive to repair procedures both in efficiency, safety, and performance aspects. Safety will involve both the owner-customer and the shop employees. More attention will be required on how to make your shop operate at peak efficiency. To keep up and make a profitable business operate, will be a challenge and an opportunity for shop owners and managers. As Green as we can be To reinforce our shared commitment with the industry we’re going to do the newpaper equivalent of going waterborne for our next two issues, July and August. All 21,000 shops and related businesses will be getting an ultragreen copy of our papers in the mail. We’re going to change our newsprint to the highest practical recycled content and make corresponding changes in the printing inks we use. No penguins, seals, or additional trees will be harmed in the process. That’s the green phase, not the lean, and it’s not permanent because we have a better long term solution.

Lean and Green In September 2010 (our 29th anniversary) we will be making a more permanent change to Autobody News’ print editions which may make us look like more of a newsmagazine than a newspaper. We’re not reducing the regional coverage we offer—quite the opposite, we want more regional emphasis. We’re just changing the way it is printed. At the same time we will adjust our design to take advantage of a newer, higher tech printing process. We’re going to a slightly smaller format with a glossier paper stock to make the paper lighter and brighter. Come September Autobody News will be a bit smaller in its page area (trim size). It’s still going to be environmentally friendly but we want to take advantage of new technology to make photos and advertising graphics crisper and higher resolution. Because the paper stock will be lighter in weight we will be able to offer more pages, and more news items to our readers. Truth be told, we’re also responding to our own regulators—in our case the U.S. Post Office—which is making “required recommendations” (a phrase only a government agency could coin) to the kinds of publications that go through the main mail channels. Mailing our current editions’ format is eventually not going to be in compliance with the Post Office’s guidelines so we are facing our expected future now. We are making our changes in a coordinated way so that readers, advertisers, mail carriers and—yes, business owners—can coexist profitably. We want you, our readers, to share in the benefits of a brighter publication.

AUTOBODY NEWS SPECIAL ISSUES What does it and

to be ?

(July (J J l &A August) ugust) Promote how your products and services are helping body shops do business and prosper in this new Green environment.

NACE & SEMA issues (September, October, November & December) Exhibiting at NACE, NACE SEMA SEMA, CARS or AAPEX? They are in our backyard! Make sure body shops know where to find you. Advertise in the leading regional collision repair publication, and be seen in the show issues — Free copies distributed at each show.

rent board members winning reelection. “I don’t care if you like LKQ “... none of us can look at these parts Like Wagman, ABPA Treasurer Jim or not, but what they did in quietand make an informed decision about Smith, a consultant in the non-OEM parts ing Toby Chess was absolutely whether or not they will perform the industry who was reelected at the meeting necessary for our industry,” Smith In an unsuccessful bid for a seat on to his position on the association’s board, said. “While you may want to same as car company brand parts” the ABPA board, Rob Wagman, of LKQ told those at the ABPA meeting that the kick them in the butt when they’re —Jack Gillis of CAPA Corporation, told attendees if elected he non-OEM parts industry is under attack doing things in your market that would push ABPA to be more proactive on like at no time since the State Farm parts make you scratch your head, you need to uing attacks against the aftermarket parts lawsuit a decade ago. pat them on the back when they spend the industry?” such issues. Gillis said CAPA began testing nonSmith pointed to the Automo- money to do the things that make your “of all the things that could happen to our OEM bumpers over a year ago and pretive Service Association’s meet- business survive,” Smith said. sented to its board “data showing significant ing this spring with senior industry, being regulated by the governinconsistency between car company brand officials from the National CAPA’s Gillis addresses distributors ment has to be right there at the bottom” Highway Traffic Safety Admin- Also speaking at the meeting, Jack Gillis parts and aftermarket bumper parts.” He said —Jim Smith of ABPA istration (NHTSA) at which of the Certified Automotive Parts Associ“the majority of parts we reviewed did not ASA reiterated its request that ation (CAPA) said he titled his remarks, compare favorably to “I reached out to the association in the agency regulate non-OEM crash parts. “Coulda, Woulda, Shoulda.” He said the the car company “Of all the things that can happen to current controversy over non-OEM strucNovember after the first CIC demonstrabrand parts,” even tion, and quite frankly, I didn’t think ABPA our industry, being regulated by the gov- tural parts could have been avoided if dissome non-OEM parts did enough to get out in front of this thing,” ernment has to be right there at the bottom,” tributors had refused to accept anything that appeared visually Wagman told the 150 people attending the Smith said. “It’s a shame that ASA would but quality parts. to match the OEM. “Imagine the position you would be ABPA event. “I think on the board I would try to take our industry in that direction.” “The bottom Smith also said the non-OEM parts in right now if 10 or 15 years ago, you simpush to get the association out there, deline is that none of us ply said to your vendors that fending its membership and really getting Jack Gillis of CAPA “what they did in quieting Toby Chess was can look at these you wanted only CAPA-certiin front of these guys who are coming after absolutely necessary for our industry” fied parts,” Gillis said. He said parts and make an informed decision about the industry. If we don’t act soon, I think we’re in a lot of trouble as an industry. If I —Jim Smith of ABPA complaints by manufacturers whether or not they will perform the same that getting a part certified by as car company brand parts,” he said. was on the board, I’d want to make sure... Gillis said that as CAPA finalizes its that everyone knows we’re a quality in- industry—even those that sometimes re- CAPA is too time-consuming and expennew certification standard for non-OEM dustry that’s trying to help the [rest of the] sent LKQ/Keystone for its dominant posi- sive are unfounded. tion in the market—owes the company “What has it cost you that you haven’t bumper parts, it is working with the Insurindustry and not bring it down.” Wagman and another potential new thanks for its actions in preventing Chess’ insisted on CAPA certification?” Gillis ance Institute for Highway Safety (IIHS) ABPA board member were defeated in the planned demonstration at CIC about prob- asked distributors in his address. “What is to perform low- and high-speed crash tests See ABPA Conference, Page 28 the expense to this industry of the continelection for three open board seats by cur- lems with non-OEM hood latches. Continued from Page 1

ABPA Conference

18 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

Service, Service, Diagnostic Diiagnostic D gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

www.autobodynews.com

2009 Historic Loss in Vehicle Population Autobody News

Three forces combined to reduce the number or cars and light trucks in the U.S. last year. First, new vehicle 2008 and 2009 volume dropped more than 25% from 2007. Second, Cash-for-Clunkers mandated the crushing of over 700,000 vehicles and eliminated hundreds of thousands of cars and trucks that would have remained in operation for many years. Finally, the light vehicle scrappage rate is near record-high levels. As a result, U.S. vehicles suffered their first peace-time decline during 2009, and prospects are strong for a further drop this year.

The dramatic 3.4% drop in 2008 mileage was recorded despite a 0.5% gain in cars and light trucks on U.S. roads. Last year, as the light vehicle population suffered its first decline in more than 65 years, mileage by all types of vehicles increased a razor-thin 0.2%. Prospects for mileage growth are not strong for 2010, given stubbornly-high unemployment rates, low consumer confidence, and the likelihood that cars and light trucks in operation will recede further during the year. Through March 2010, year-to-date mileage by all types of vehicles sank 0.7%.

Vehicle Mileage Struggles Even with rising numbers of cars and light trucks on U.S. roads, annual mileage struggled for growth over the past three years. Notwithstanding the 1.6% increase in car and light truck population during 2007, mileage by all types of vehicles in the U.S. inched-up only 0.5%.

Age Growth Fueled by New Vehicle Drop The average age of cars and light trucks in the U.S. is soaring. Light vehicles of all types reached record-high age levels at the beginning of 2010. Domestic car age is skyrocketing, driven by new domestic car sales plunging almost 40% during 2008 and 2009.

Ford Fiesta Now in the 40 mpg Category

AWRS and Ride-On Form Strategic Alliance

The 2011 Ford Fiesta, with its the sixspeed automatic transmission, has been certified by the EPA at 40 mpg highway and 29 mpg city. The five-speed manual transmission model is rated 23 city and 37 highway. Ford is projecting a price of $13,995 when Fiesta hits showrooms this summer. At 40 mpg, Ford says Fiesta is five miles a gallon better than Honda Fit and four miles a gallon better than Toyota Yaris. “The new Fiesta is yet another car in Ford’s lineup that delivers class-leading fuel economy,” said Barb Samardzich, Ford’s vice president of global powertrain engineering. The Mexican-built Fiesta has a 1.6-liter Duratec engine with with variable camshaft timing, good for 120 horsepower and that impressive mpg. Others in the 40-mpg club are Audi A3 diesel, Ford Fusion Hybrid, Honda Civic, Honda Insight, Mercury Milan Hybrid, Smart ForTwo, Toyota Prius, Volkswagen Golf diesel and Volkswagen Golf diesel. All get at least 40 mpg on the highway.

Alloy Wheel Repair Specialists, Inc. (AWRS), the world’s largest mobile wheel repair company, and Inovex Industries, Inc, the manufacturer of the only proven high-speed tire sealant, Ride-On Tire Protection System, announced their strategic alliance giving AWRS the exclusive rights to introduce Ride-On into the automotive dealership market place. The company will also distribute to the retail tire, quick lube, and mass merchandiser market segments. “The automotive retail market place represents an enormous opportunity for sales growth,” says Mark Farkhan, CEO of Inovex, “and due to the vast nature of this marketplace and the resources required to penetrate it, we decided that it was in the best interest of our company to form a strategic alliance with another company that already has sales, marketing, and distribution channels established. We are extremely excited that we were able to form a partnership with a company as committed to providing quality service and cutting edge technology as AWRS to help expand Ride-On’s reach into this $2.4 billion dollar market segment.”

June 2010

At the beginning of 2010, average age of domestic cars in the U.S. topped 12 years, up one-fifth since 2000. Rapid growth of vehicles 12 years and older is generating high rates of vehicle scrappage, which is exerting downward pressure on the light vehicle population.

Foreign and Domestic Vehicle Mix As the average age of cars and light trucks in the U.S. increases, the age gap between foreign and domestic models continues to grow, reflecting the expanding foreign vehicle share (imports and transplants) of new car and light truck sales. While domestic vehicles (not including transplants) currently comprise only 45% of 2010 new vehicle sales through April, domestic cars and light trucks represent over 75% of vehicles in the highest age groups. Just as vehicle-crushing mandated by Cash-for-Clunkers claimed a much higher percentage of domestic than foreign models, a disproportionate share of vehicles

currently being scrapped are domestic cars and light trucks.

More Miles on Older Vehicles While the possibility of fewer vehicles on U.S. roads during 2010 will create challenges for car and light truck aftermarket product growth, more miles accumulating on older vehicles will help boost light vehicle 2010 product volume. 'From Aftermarket Insight™ by Jim Lang, President of Lang Marketing Resources, Inc., www.langmarketing.com.'

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Matrix System Teams with Miller Electric to Sponsor Jet Dragster Matrix System Automotive Finishes announced its shared sponsorship of the jet dragster with Miller Electric and Larsen Motorsports. The vehicle was unveiled on May 10, 2010 and is expected to draw the attention of the racing community for its vibrant colors and intricate details. Elaine Larsen, the highly regarded jet car driver, has been a part of the drag racing community for over a decade. She began racing jet dragsters in 2004 and hasn’t looked back since. She is one of only a few women in the world who currently drive jet dragsters for a living. Regarded as one of the nation’s leaders in turbine-powered race vehicles, Elaine and Larsen Motorsports are among the most requested exhibition jet dragster teams in North America. The Miller Jet Dragster features a General Electric Model J-85 engine that generates 2,500 horsepower and a Larsen Motor Sports custom designed afterburner that adds another 2,500 horsepower. The biofuel-powered jet dragster will make its debut May 15 – 18, 2010 at the Cavalcade of Stars located in Norwalk, OH. This Miller Electric dragster was custom designed by Larsen Motor

Sports, fabricated by Worthy Motorsports, and custom painted by Matrix System Automotive Finishes. Overall, the dragster will appear in 11 Regional Race Events and 4 National Events. According to the Matrix System Technical Department, they could not wait to start spraying its waterborne basecoat, Aqualution, on the Miller dragster. As Chris Butler, Technical Advisor stated, “If Matrix System products can be put to the test to withstand 5,000 horsepower along with speeds over 300MPH in less than 5 seconds our products can handle anything.” This experience has been one that we will all remember for a long time.

About Matrix System Matrix System Automotive Finishes, headquartered in Walled Lake, MI, has grown to become one of the industry’s most successful aftermarket manufacturers of high quality clear coats, primers, hardeners, and reducers. With an excellent product line, Matrix System has been able to convince body shops once loyal to a particular brand to convert and experience huge cost savings.

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 19

Gonzo’s Toolbox

Mr. Gorillalilla

with Gonzo Weaver

Excerpted from Scott “Gonzo” Weaver's Book, “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Scott Weaver at Gonzosae@aol.com and see his website at www.gonzostoolbox.com.

With all the talk about the cars with push button starting systems and the runaway acceleration problems it made me think of what everyone has been talking about as the best method to safely stop a vehicle in these instances. Most everyone will agree that turning off the ignition is NOT the best solution, however, not everyone can agree on whether or not a driver in a panic situation will remember to put the car in neutral instead of reaching for key, or that they shouldn’t turn the key back to the “steering” lock position. And for those vehicles with push-tostart, would an operator remember that you have to hold the “start” button down for several seconds before the car will shut off unless it’s in park position. So a lot of these conversations I’m involved in cycle back to the steering lock mechanism, which, in a panic situation is the deadly “lose control” factor. Let’s not forget that during this so-called emergency situation you might be traveling at close to 100 miles per hour, which could be scary enough without having to worry about shutting the car off. The conversations I get involved in usually end up with whether or not the “general public” will remember and follow the procedures each and every time they are in an emergency situation. This made me think of a situation I had with a customer a few years ago. Let’s call him “Mr. Gorillalilla.” Gorillalilla is a nice

guy and all, but he was a huge muscular dude and as strong as an ox. His mid-80’s Jeep CJ was equipped with a key and lock setup that allowed you to turn the key off without it going all the way to the steering lock position. There was a lever that had to be pushed down in order to rotate the key back to the off position. You could then remove the key from the ignition lock. Mr. Gorillalilla had brought his CJ in because he couldn’t get the key out of the ignition lock. Examining the problem led to the linkage arms inside the steering column that had been bent, which allowed the key and tumbler to rotate around the lock-out mechanism. No parts were really needed; I just had to take it apart and straighten the bent section of the mechanism, then reinstall everything. He was relieved that the problem was nothing major and was soon off on his way. The very next day he was back, but this time he wasn’t a very happy rock crawler like he was the first time. “It’s doing the same thing,” he angrily yelled back to me. “Hmm, I wonder how that could be,” I said, curious as to how it left in perfect working order but now it’s back they way it was. “Let me get it into the shop and check it out.” Once I had pulled the steering column back down to where I was the day before I noticed the same parts were bent in the same manner as they were when I first seen

them. Now how can that be? Not knowing the whole story I went ahead and put everything back to working order again. “Here ya go, I haven’t a clue how in the world that happened sir, sorry about that,” I said. Mr. Gorillalilla thanked me for my time and proceeded to leave. Before he left the parking lot he tried it several times to make sure it was working. It wasn’t long before he was back through the door yelling at me again. “What do I have to do to get you guys to fix this right?” he shouted at me. I was totally taken by surprise. I went out to the parking lot and looked at his problem again. This time he followed me out to his car. Just a few minutes ago I had personally seen the switch move just like it was supposed to and I tried it myself several times. This time, I’m not moving the car. I went back into the shop and grabbed my tools. Right there in the parking lot I pulled it down as he watched me perform the operation on his steering column. I tried it several times myself before I let him try it. As soon as Gorillalilla got behind the wheel and grabbed the key, I knew right away what the problem was. He wasn’t using the lever to release the key mechanism!… Somehow, someway his vice grip hands were strong enough to rotate the key over the lever mechanism and that was what was causing all the problems. The astonishing thing was he couldn’t see that he was the cause of the problem and

insisted that it was a defect in the column. After all the debating I told him that I could remove the “safety” and then he could turn the key off without using the lever anymore. That was fine with him. I tore into the column for a fourth time and removed the latching arm that was attached to the outside release lever. Now I want to complain, but complaining about it doesn’t do any good. This big brute had such strong hands he could pull the tumbler back across the stops. The whole thing could have been avoided if the vehicle operator was even slightly aware of how to operate his vehicle correctly. It seems no matter how many times I run across a problem like this I’m the one that ends up putting the labor hours in even though the whole time the problem wasn’t my workmanship but this Gorilla’s brute strength. My point about this whole affair? This was a personal experience of a safety system that failed because the owner didn’t follow the procedures, and didn’t seem to notice that the key might feel a tad hard to turn. This wasn’t even a panic situation. I’m glad I’m not the engineer because I don’t know how I would solve these issues we are having with these latest designs and technologies (drive by wire). But, when it comes to adding or changing the systems in the cars to alleviate problems from the driver’s seat, I hope they go all the way and make the designs and procedures “Gorilla” proof.

Mitchell International and CCC Crash Course both produced industry updates in May and both comment on the impact of the declining economy on the insurance industry, among other issues. In Mitchell International’s second quarter 2010 edition of its Industry Trends Report (ITR), Mitchell's Vice President of Industry Relations, Greg Horn, delves into insurance deductible data from 2003 through 2009 for collision and comprehensive (excluding glassonly) losses. “Let’s face it, many of us reason with ourselves that we really don’t think we’ll file a claim to justify increasing our deductibles because of the concrete benefit we can see in a lower insurance premium,” said Horn. Mitchell’s analysis shows that the trend to light-comprehensive deductibles is rising at a 160 percent faster rate than collision deductibles.

In CCC Crash Course’s report more general economic terms over the last decade are drawn upon for analysis. During the first eight years of the last decade, the average repair cost for collision losses had always increased at a higher rate than that for liability according to CCC Crash Course. That changed in 2008 and 2009, when liability repair costs increased at a higher rate than collision in 2008, and declined less in 2009 than collision. These differences may imply that during a recession, a consumer whose vehicle was damaged during an accident where another driver was at fault may opt to handle his/her claim through the other insurer versus their own. How consumers are marketed to by insurers, shop for auto insurance, purchase it, and experience the claims process have changed over the last decade as insurers compete for market share. The last decade has also posed significant challenges for the collision repair in-

dustry. Declining accident frequency, more total losses and lower dollar repair orders have meant fewer dollars coming in. The introduction of new materials, technologies and regulation has required significant investment in new equipment and training. The recession has further impacted miles driven, and more consumers are opting to own and/or insure fewer vehicles. Despite the potential for rising employment numbers to increase miles driven, claim frequency declined early in the last decade while miles driven were still increasing, suggests the industry will not see much if any increase in claim frequency in the coming decade. Automakers introduced numerous new technologies in areas such as telematics, crash avoidance, materials, fuel economy and ‘green’ technologies recently. Most of these technologies have been positive contributions to the driving experience, although some are being blamed for

driver distraction and increasing the cost of vehicle repair. As for vehicle sales during the recent economic recession, a total of 10.4 million new vehicles were sold in the U.S. in 2009. The $3 billion government sponsored program ‘Cash for Clunkers’ gave a much needed boost to new vehicle sales in August, with consumers exhausting the funds in a matter of weeks. Auto analysts believe the program led to 346,000 additional sales that otherwise would not have happened in 2009. Also, last year was the first in which more vehicles were scrapped than sold. Assuming new vehicle sales in 2010 will reach 12 million analysts predict, and if the scrappage rate stays steady or drops slightly, we may see scrapped vehicle counts exceed sales for a second year. The latest Industry Trends Report may be downloaded for free by visiting www.mitchell.com or www.ccc.cccis.com.

Mitchell International and CCC Crash Course Highlight 2010 Industry Changes

20 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

CARQUEST Returns to CARS 2010 as Exhibitor

CARQUEST returns as a CARS 2010 exhibitor, having not exhibited since 2007. In keeping with the CARQUEST philosophy of being committed to helping professional technicians stay on top of the latest trends, components, techniques, skills and tools—CARS provides the perfect platform. Along with 400 square feet of exhibit space, CARQUEST will be presenting two technical training sessions within the CARS Conference Program. These courses will focus on Domestic Vehicle Security System Diagnosis and Electronically Controlled Transmission Diagnosis. “We are excited to once again support our customers by providing a quality learning experience at CARS,” said Chris Chesney, Director, CARQUEST Technical Institute. “Events such as CARS give the industry the chance to experience the value that CARQUEST Technical Institute delivers on behalf of our CARQUEST Auto Parts Stores. We will also be showcasing our TECH-NET Professional and CARQUEST eServices programs as well as CARQUEST Virtual Vehicle.” Bill Haas, ASA vice president, education and training, added, “It is always a pleasure to work with Chris Chesney at CARQUEST Technical Institute. Chris and his team have a reputation for developing technical training designed to solve problems technicians are confronted with in the service bay. CTI instructors some-

how always manage to make complex systems simple enough for everyone to understand. The addition of CTI technical classes to the ASRW conference will be a great value for the attendees.” The ASRW 2010 events will take place Oct. 10–13 at the Mandalay Bay Convention Center in Las Vegas (no longer during AAIW). ASRW is a stand-alone event specifically created for all automotive service and repair professionals, enabling even more industry segments to join under the umbrella. The high-quality educational program is scheduled Oct. 10–13, a Sunday through Wednesday day pattern; and the comprehensive exhibits will be open from Oct. 11–13, Monday through Wednesday. ASRW currently features the International Autobody Congress & Exposition (NACE), sponsored by the Automotive Service Association (ASA), the only event of its kind designed for the collision repair professional, and the Congress of Automotive Repair & Service (CARS), also sponsored by ASA, the premier event for automotive service professionals. Many new show features and industry forums are currently in development for ASRW 2010. Online registration is scheduled to open in May and will offer various package options starting at $210 and Expo registration available for just $15 until the August 17 early cut-off. Online housing will open in early-May for low hotel rates.

ASA Offers Year-round and Nationwide Education

Education opportunities provided by the Automotive Service Association (ASA) are delivered to repair professionals at the national, regional and local level. With its affiliate and chapter groups, ASA is the leading provider of education among associations of its kind. To help members and nonmembers alike stay informed about ASA-hosted education offerings in their area or nationwide, ASA has enhanced the education section at www.ASAshop.org /smart. Student information, a directory of ASA educational members, shop owner/technician information, a calendar of educational events and a list of ASA sponsored benefit providers who provide education and training products and services to ASA members are just a few of the enhancements made to the education section of the ASA website. The May issue of AutoInc., the official publication of ASA, contains a sneak-peek of the many education sessions scheduled to be offered at the association’s annual trade shows—NACE and CARS—which will be held during Automotive Service and Repair Week (ASRW) Oct. 10–13, 2010, at the Mandalay Bay Convention Center in Las Vegas. Additional information about ASRW events will be available soon. “ASA delivers more education and training to automotive service and repair

Equipment and Tool Institute Presents Founder’s Award

Greg Potter, of Dearborn Group Technology, has been awarded ETI’s 16th Founder’s Award at this year’s ToolTech 2010 in Napa Valley, California. The ETI Founder’s Award was established to honor those individuals who have made numerous contributions to the Institute. As with most trade associations ETI thrives on volunteerism from its members as well as its business partners. Greg Potter has demonstrated unselfish dedication to the principles that drive ETI since he began his involvement with ETI over 16 years ago. Potter is currently on ETI’s Board of Director’s and Chairs ETI’s Scan Tool Vertical Group. He has also served as President of ETI’s Board of Directors. professionals than any other organization in the industry,” said Ron Pyle, ASA president. “We understand that it can often be taken for granted, but as vehicles become increasingly more complex and the business model becomes more challenging, the need for training and education resources will continue to grow.” The ASA Web site also includes consumer tips, shop locator, and the new ASA Marketplace, the association’s member benefits portfolio. Visit www.ASAshop.org or (800) 272-7467, ext. 295.

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 21

ALL OEM Information

Was this Noise Caused by the Repair? with Dan Espersen

Almost everyone in the collision industry has experienced this scenario: You repair a vehicle – in this case, a Chevrolet® Suburban® – to the highest standard possible. The owner takes delivery and drives off smiling. A few days later, he brings it back with a noise that he insists was not present before the repair. He describes a buzzing noise from the right-hand fender. What do you do? If you have OE information, including technical service bulletins (TSBs) available to you, you do a little research. Technical service bulletins are published by automobile manufacturers primarily to identify factory defects, safety related problems and recognized issues for which the manufacturer has published a solution. As it turns out, the General Motors® had already issued a TSB describing the exact situation I just described.

Body - Buzz/Rattle From R/H Front Fender on Acceleration Subject Loud Buzz or Rattle Noise from Right Front Fender Area on Moderate to Hard Acceleration and/or Braking Torquing Around 1800-2000 RPMs or Before 1-2 or 2-3 Shift (Install Closed Cell Foam to Right Front Fender) Models: 2007-2008 Cadillac® Escalade®, Escalade ESV®, Escalade EXT® 2007-2008 Chevrolet® Avalanche®, Silverado®, Suburban®, Tahoe® 2007-2008 GMC® Sierra®, Yukon®, Yukon Denali® Condition Some customers may comment on a buzz or rattle noise from the right front fender area on moderate to hard acceleration and/or brake torquing around 1800-2000 RPMs or just before the 1-2 or 2-3 shift. Cause The radiator surge tank and/or the inner wheelhouse liner may be contacting the right fender. Correction Always refer to ALLDATA® Collision for safety procedures, identification of material types, recommended refinish materials, and removal and installation procedures. Always refer to the vehicle manufacturer for questions relating to applicable or non-applicable warranty repair information. Install closed cell foam to the right front fender using the steps below: Verify the condition. Open the hood.

Remove the air cleaner assembly. Remove the four bolts from the air cleaner adapter bracket.

Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 17 years of experience in the collision industry and 17 years of experience in the automotive industry.

move the nut and bolt from the radiator surge tank. Do Not disconnect any hoses or drain the coolant. Remove the radiator surge tank from the fender retaining slot by pulling upward. Reposition the radiator surge tank away from the fender. Cut three pieces of closed cell foam, P/N P4615, to 50 mm (2 in) lengths. Clean the area above the marks on the right front fender with glass cleaner.

Remove the air cleaner adapter bracket. Remove the plastic retainer (1) from the right front center inner wheelhouse liner (Figure 1). Cut a piece of closed cell foam, P/N P46510, to 32 mm (1-1/4 in) length. Make a hole in the center of the foam with a 6 mm (1/4 in) drill bit by hand. Install the piece of foam between the wheelhouse liner and the fender from inside the engine compartment at the removed retainer location.

Tip: Line up the hole in the foam with the hole in the fender and wheelhouse liner. Install the plastic retainer into the right front wheelhouse liner, foam (1) and the fender (Figure 2).

PA R T S I N F O R M AT I O N

Start by installing the center piece of foam vertically at the hole (1) in the fender 20 mm (3/4 in) above the right fender retaining slot (Figure 4). When attaching the foam, try to keep the foam uniform and even across the top for appearance purposes.

Mark the two locations on the right fender where the radiator surge tank mounting tabs contact the fender, (Figure 3). Re-

22 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

the radiator surge tank (Figure 6). Install the radiator surge tank plastic tab into the matching retaining slot inside the right inner fender. Install the air cleaner adapter bracket while aligning and centering the front mounting hole for the radiator surge tank. Install the four bolts for the air cleaner adapter bracket and tighten. Tighten the bolts to 10 N.m (89 lb in). Install the nut and bolt securing the radiator surge tank. Tighten the nut and bolt. Tighten the nut and bolt to 10 N.m (89 lb in). Install the air cleaner assembly. Close the hood. Verify that the condition has been corrected.

Attach the other two pieces of foam vertically with no gaps to the left side and right side of the center piece of foam as shown above (Figure 5). Tip: Use a plastic putty scraper to help prevent the rolling of the foam when installing

Part Number P46515 P46510

Description

Adhesive Back Shim Stock (25 mm x 30 ft roll) [15 mm (9/16 in) thickness] Adhesive Back Shim Stock (25 mm x 30 ft roll) [8 mm (5/16 in) thickness]

Written by Dan Espersen, ALLDATA Collision Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 17 years of experience in the collision industry and 17 years of experience in the automotive industry. ©2010 ALLDATA LLC. All rights reserved. All technical information, images and specifications are from ALLDATA Collision. ALLDATA is a registered trademark and ALLDATA Collision is a mark of ALLDATA LLC. All other marks are the property of their respective holders. General Motors, Cadillac, Escalade, Escalade ESV, Escalade EXT, Chevrolet, Avalanche, Silverado, Suburban, Tahoe, GMC Sierra, Yukon and Yukon Denali are registered trademark names and model designations of General Motors. All trademark names and model designations are being used solely for reference and application purposes.

The Autoholics: A New TV Show Concept that might be Addictive

by Ed Attanasio Special to Autobody News

Get ready for the craziest, most outrageous highly addictive automotive show on television. That’s if and when the pilot for The Autoholics hits the air in the near future. Crash Element Entertainment, in Los Angeles, the producers of the new show, is touting The Autoholics as a combination of the “Best Damn Sports Show” meets “Martha Stewart,” and is preparing to pitch it to the major TV networks, Creator, CoProducer, and Co-Host Diggity Dave told Autobody News. “We think this show would fit very nicely on Saturday right after the automotive racing. We think it’s worthy to be on one of the major networks where it can hit its prime audience every week. We feel this would be a perfect time of the weekend for automotive fans to watch The Autoholics.” Each week, The Autoholics will feature a panel consisting of some top names in the automotive and entertainment field, including Diggity Dave (credits include Pimp My Ride, Battleground Earth); Rich Evans (Chop Cut Rebuild, Monster Garage); Comic Billy Gardell (King of Queens, My Name is Earl); Bo Butner (NHRA world champion driver), and “Flames” (Host of Ford Motors Mustang Alley/Gilpin Auto Sports). This assemblage of automotive expertise will hold court every week on their new and amazing set at Huntington Beach Bodyworks, Rich Evans’ shop, that’s been transformed into a rock ‘n roll romper room. Co-producer Joe Burk has co-created a show designed to entertain, inform, and instruct its viewers. “Passion for anything automotive can become addictive and this show will provide an array of subjects—from new cars on the market, to celebrity car junkies, aftermarket gadgets, to bargain hunting for cars and car parts and accessories—and all the way to focusing on the best dealerships in the country. We want to offer information that car enthusiasts can use and bring value to their car building projects,” Burk said. Crash Element Entertainment believes this show is both different and groundbreaking. “As a production company, we try to approach things from a fresh perspective and coming from Pimp My Ride, I’ve always been looking out there for something that hasn’t been done yet. Joe and I are major car guys and we’ve always been trying to find a way to explore the idea of a show that hasn’t been there before. Plus, we both agree that the moment is right for a show like this. The car industry is grow-

ment, Dumpster the end result is amazing. My goal with Driving with this show is to use the small screen to help Diggity Dave, people with their projects and that’s what Diggity digs we’ve achieved with this show,” Evans deeply into the said. subject of highThe process producing the pilot has quality car parts been a three-month journey, but both Burk found cheaply. and Diggity Dave are very happy with the S p o k e s p e r- nearly-finished product. son/model “We’re just coming to the finish Daniela Pane line right now. This is the biggest thing will also host a Crash Element Entertainment has ever segment called done as a company. But we wanted to House of Pane, create a show that’s filled with useful where she’ll information, so that people can watch present a unique The Autoholics and learn something that female perspec- they didn’t know before. Implementing The Autoholics discussion panel includes (from left) Flames, Rich Evans, Diggity tive on the auto- those two worlds—educational and enDave, comedian Billy Gardell and NHRA world champion driver Bo Butner motive world. tertaining at the same time—that’s a lit“We know tle tricky. We strived to make a show ing despite the recession and there will al- that a lot of women out there are into cars, containing aspects that are balanced and ways be an interest in cars, in the after- so we want to help them and educate them will appeal to a wide range demomarket and in tricking out cars. So we whenever we can. Imagine being a soccer graphic.” planted a seed and now it’s grown into this mom and learning how to show.” do your own basic oil The format of the show opens with a change? We’ll teach them spirited roundtable discussion called “Rat- on this show. The ladies tle Off.” represent a significant part “We kick around topical news bits of our market and we recand talk about how we feel about things ognize their role in the inlike the Toyota recall, for example,” Dig- dustry,” Diggity Dave gity Dave said. “Everyone has their own observed. opinion on the issues of the day, and we’ll The show will enterbe tackling the automotive news in a big tain, but teaching its viewway that’s also fun.” ers how to do vehicle After the opening back-and-forth, the customizations and revealshow will bring out its VIP guest star to ing the tricks of the trade is A 1964 Lincoln Convertible was built during the pilot of The Autoholics discuss his or her automotive career or his- a main theme of the show. tory as a car aficionado. “We’ll also build a different car on every episode. It will be the A big complement to the show will be ultimate do-it-yourself project each and a robust Autoholics web site. every week. We’ll be teaching our viewers “Viewers will be flocking to the site, on how to do every aspect of body work because all of the behind-the-scenes and upholstery. This show will cover it videos will be there, along with the proceall,” Diggity said. dures for building these cars. It will be Crash Element Entertainment was complementary aspect of the show, so thrilled to get Rich Evans involved in The we’re going to be using all of the technology available to us, with a Web site that Autoholics. “Rich Evans is the hottest thing out will attract car fans from all over the there right now. He’s like a new Chip world,” Burk said. Foose and we’re really happy to be workStay tuned for The Autoholics. It ing with Rich. Doing the show at his shop should be appearing very soon on a staprovides a setting that’s ideal for what we tion near you, according to some of the want and working with Rich is a no- most engaging names in the automotive brainer,” said Burk. industry. If Autoholics need a different Evans is understandably enthused kind of program to get into, and a netabout the concept of the show. work distributor steps up, this show “Autoholics will be a success, I be- might be exactly what the public is lieve, because it has a great storyline and revved up for. offers a ton of useful information that the During each episode of The Autoholics, a car will audience can implement right away,” said be built from start to finish Evans. Other segments featured in The Auto“We built a 1964 Lincoln Convertible holics will include Billy Knows Bling, in while filming the pilot over eight days. A which the show’s guest star interacts with lot of people told me that they couldn’t do www.autobodynews.com Billy Gardell to explore the coolest car it, because it’s a very involved and exCHECK IT OUT! gadgets out on the market and another seg- tremely difficult build, but we did it and www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 23

Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Building a Custom Trophy for ‘The School of the Year’ with Rich Evans

This month we’re going to cover a little different category than repair steps and procedures or building hot rods or repairing vehicles We’re going to talk about getting creative and using your mind to build with car parts. I wrote a column in Autobody News (Sept. 09) about building a trophy for a Long Beach car show which was a big charity event last year. Ed Sunkin, an editor from Tomorrow’s Technician (a Babcox company), contacted me saying “I read that article on that trophy you built. We’ve got this school of the year award coming up and we wanted to know if you want to build a trophy?” I said “You know what, I’m into it. I dig stepping away from everyday routine and trying out something different. I actually had fun when I built the trophy for the Long Beach Car show.”

Rich gets a grip on Caddo Career and Tech Center’s School of the Year award

I started wrapping my head around it and with help from Chicago Pneumatics and Tomorrow Technician, also WIX had joined us for this, our third year into this event and contest. This year there were more than 300 applications nominating more than 163 schools, the four finalists were Arapahoe Community College, Littleton, CO; Caddo Career and Technical Center, Shreveport, LA; Spokane Community College, Spokane, WA; and Carroll County Career & Technology Center, Westminster, MD. We wanted to build something cool as a trophy so instead of something made out of plastic, we used car parts; parts that are junk and ready to throw away. I just looked around the shop, found a couple pistons laying around, found a brake shoe, found some cut coils, scavenged up some sparkplugs, and then had a traditional Rich Evans logo, or Huntington Beach Bodyworks shield, cut out of metal that hypertherm had cut out at a previous SEMA show. I found an old generator that was stripped out, has the pulley on it and the pulley is made out of cast so I had to think

‘how am I going to weld that?’ Then I scrounged up a few drill bits and headed over to a local metal material shop and bought a metal ball and some design metal stamp feather-looking leaves that would look good in a trophy. Then hunted in my garage to see what kind of toy cars that I had laying around, had a ‘51 Merck. I also had a Chicago Pneumatics 7740 impact wrench and I called John from Ray Ward and asked him to get a hold of a WIX filter. I wanted to incorporate that into the trophy as well as the traditional logo for Tomorrow’s Technician School of the Year/Chicago Pneumatics and so I got a copy of the artwork and a piece of stainless steel. I blew up the photo of the artwork and got it symmetrically proportioned for the size of the trophy I was going to build and cut a half-inch piece of stainless steel to weld it to the trophy. Obviously I would need to weld it to the trophy before I could paint on the face of it so that’s the last step of the project. So accumulating all these parts, I’ve got to figure out what my base is going to be, and when I did the other build for the Long Beach car show I used the pistons. I didn’t want to make the same trophy, but I liked the platform and I incorporated the two pistons for the back part of the trophy so it would be the base, and also incorporated the pulley with the generator/alternator hardware—so that it would spin. I had a few obstacles to figure out. I knew I wanted the trophy to spin at the top, right above the leaf spring but I had nothing to weld onto the pulleys so what I did is I drilled some holes in the pulley, found some bolts that I could weld to and found the positions where I needed to weld to stabilize everything. I took the logos, welded them to the bolts so it was the facing of the of the trophy and then I was able to take two half-inch drill bits and weld them to the other two bolts that I drilled through the pulley and use that to stabilize the base to the pistons. Then I used a brake shoe to wrap around the back to stabilize the two pistons, so it kind of anchored them together. Then I welded the coil spring to the additional pulley that I had on top, and brought a half of a circle which I covered the top of the coil spring with. I took four spark plugs; I thought it was cool to incorporate those on the inside of the coil spring, welded those in, and from that top I took a piece of fence decorative metal and use that to gain a little bit more height. I placed the ball on top of that, welded it, secured it, saw another place for the other spark plug which would be a single one that would go between that decorated piece of metal.

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Then I made a stand for the ‘51 Merc and placed that using two mounting points. I took a piece of stainless steel, mounted it to the car and then took a piece of stainless steel round tubing tacked it, then took the plate back off the car, re-welded it. The

The finished trophy ready to ship

Phone: (360) 687-3451

model car is plastic on the bottom so if you weld it, it’s going to heat it up and cause your mounting bolts to melt. Then you won’t have a secure base to mount to. So after going back and forth with tha,t I took these feathers, which only come one way so I twisted them to complement the car and centered them in front of the car after mounting the car on the top of the trophy. One’s a little lower than the other, but they’re both centered, if you look at it sideby-side. They kind of complemented the car and made it look more trophy-ish. Then I searched and found a lug nut from a semi-truck where the washer turns, so I thought I wanna see the WIX filter be able to be manually turned and so I welded the base of the head of the lug nut to half of the metal ball and welded the washer portion to the filter first so that it would have a pivot so you could move it. I took the Chicago Pneumatics 7740 and welded that to the ball so it displayed. What this trophy represents is Chicago Pneumatics, and WIX. I welded my stainless steel plate to the front of the trophy. I painted the face

of that logo black. I used my plotter to cut out the art and basically I just had to use white and I used a little bit of red for the CP logo. I shot two coats of clear over that and added my name and logo for Rich Evans Designs. Then I did a little bit of work with the CP engraver and engraved “Building for Life” on the front of the trophy and signed it. At this point I had a three-and-ahalf-foot trophy. Looking back on it, it doesn’t take a lot of time but it’s the creativity you put behind it. It tells a story without words. I’d like to see some of you guys get out there and gather up some scraps, some old car parts and create your own trophy and submit them to me. Email photos to R.Evans@huntingtonbchBodyworks.com. The first two people that send me photos of a trophy they attempted will receive a traditional billet Huntington Beach Bodyworks logo, which you can place as a grill or pretty much anywhere. I’m sure you’ve seen it on the front of my vehicles, It’s worth over 100 dollars. I will present this to you as a contest of creativity of you putting your efforts in and taking the time to build something cool. I just want you guys try it and just to set aside all work and just have fun with it. I’m interested in seeing you guys get creative and also having fun doing it. I had

a blast, you know I’ve put maybe three hours into this trophy, counting an extra hour for the art, but you don’t have to go to that extent. Just gather up some old parts, tools, whatever and create something. I want to see you guys get creative. I’d like to write about it in one of my upcoming columns. It’s a good way to get a little recognition for yourself and a good way to have fun at doing something besides just fixing cars or building hot rods and just kind of think outside the box. I’m looking forward to seeing couple guys step up. Hopefully I get more than a few, and I’ll be more than glad to display any trophies that that have been built by any individual out there on my website and also in one of my future columns. The best part is that this was shipped out to the school of the year winner, Caddo Career and Technology Center in Shreveport, Louisiana. Caddo Career and Technology Center took home $10,000 worth of Chicago Pneumatic Tools as the winner of the 2010 School of the Year competition. Caddo is a high school and this is the first time a high school has won the award. When I went out there I was very, very impressed with the setup that they had and their instructors. I told these guys that they’re definitely one step ahead of the next high school I’m aware of and

that’s due to having a well-organized facility. Gary Weese and Mike Falkner are the instructors and they founded the program at the Caddo center. They built the foundation of their award-winning program on real-life experience which is which is phenomenal and that is what everybody needs. So hats off to you guys. They’re not a college. They’re a high school and I’m very impressed with everything they’ve going over there. The kids there are definitely very fortunate to be one step ahead

of going to college and getting all this reallife experience. I had to build a crate to ship it off to the school. I flew back there on the 27th of April for a one-day visit and enjoyed myself.

Any schools or colleges that are not familiar with the school of the year go to Chicagopneumatics.com and then look for the school year or get yourself Tomorrow’s Technician magazine and that will give you all the details about it. I’d like to see more students sign up for that. It’s a very good program. You get to get out and see all the different schools and colleges and what they’re doing and be involved with the colleges as well. Next week we will be back to steps and procedures of repairing or hot-rod. I think we’ll get back on the Thunderbird. I should finalize that project so you guys can see the final repair, completed project. I’d like to thank my sponsors, Chicago Pneumatics, MicroFlex, all the guys who give me the tools I need to do and create safely. 3M is a big part of my daily routine. Everybody picks up a 3M product almost every day so I’m thanking the companies out there for putting better products in our hands and saving us time. Time is money. Take Care.

Randy A. Harris, Collision Student at Ohio Tech College Wins Flying Tiger Design Contest

Writes Randy: “I was born in Cleveland Ohio, and grew up in a small city called Wickliffe where four siblings, a nephew and I were raised by my single mother. Since I can remember I’ve had a pencil in my hand, drawing. I couldn’t get enough of it and had a passion for cars.

Nothing can beat old American Muscle cars: Camaros, Cudas, Mustangs, etc. While looking for a way to implement both of my passions into one for a career, I found OTC. Here is where I developed these passions through the collision and repair and custom paint courses. One day my class was told about a contest to design a picture for a tiger statue for the 2010 Year of The Tiger Celebration. The Year of The Tiger public art project celebrates Cleveland’s Asian Town community. St. Clair Superior’s blossoming arts district and its thriving business community. The project is in

commemoration of the Chinese Year of the Tiger which began with the new moon February 14, 2010. I knew I wanted to do something noble, strong. A protector. The tiger statue was given to me where the first thing I started ground off the main under the jaw. The second thing was laying out my design. Third, start sculpting the armor out of a material called magic sculpt. This product gets rock hard and needs to be sanded. The wings have a metal frame that is welded together and actually sit over the tiger’s shoulders like a saddle and then I put magic sculpt over the frame. And fourth, I painted and cleared it and the finished product is what you see here.

Rich congratulates the winner, Randy A. Harris

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 25

Shop and Product Showcase with Ed Attanasio

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

So. Cal Shop Goes to DuPont™ Cromax® Pro for One-Coat Coverage

Doug Albin, owner of Body Works Collision Center in Murietta, California, knows paint. He’s been painting cars since he was in high school and has owned a body shop for nearly a decade, so he knows what he’s talking about when it comes to paint and painting systems. Body Works Collision Center operates out of a 5,000-square-foot shop, generates $250,000 per month in sales, and performs 65–70 repairs monthly. The company employs 12–15 people depending on workload and seasonal spikes in business. Body Works specializes in repairing Toyotas, Hondas, Acuras and Mazdas, but they’ll work on any non-exotic vehicle on the road. Albin, 41, has been in the body shop business for his entire life, as a master tech and a painter. He’s a second-generation shop owner who worked every summer with his father’s body shop while in high school and also completed training to be a master painter shortly thereafter.

that’s undoubtedly been a big part of our success.” After working with the same paint vendor for nine years, Albin made a change to DuPont™ Cromax Pro® when he ran into problems with his long-standing paint vendor during his switchover to waterborne last year. DuPont stepped in to deliver a system featuring their Cromax Pro® waterborne product. And the results are exemplary, Albin said. He’s saving money, matching every color, reducing waste, and producing more vehicles in less time than ever before. Albin was almost instantly enamored with Cromax Pro’s exceptional coverage ability. “When our conversion to waterborne began, there was an issue with our original paint company, so we inquired about other vendors and DuPont stood out in a big way. They came to the shop and sprayed a car and we were instantly impressed. Our original vendor’s paint was requiring 3–4 coats per vehicle and it was taking us way too long. With Cro-

Body Works Collision Center is a second-generation shop that stresses quality and customer service

“My dad’s shop was called Albin’s Classic Cars in Newport Beach, and he worked restoring high-end expensive cars,” Albin said. “It was a great education, because I was allowed to step in and work on different types of vehicles. Some people are born to follow their parents’ career path and I gravitated toward the body business from day one.” By doing rather than simply delegating every aspect of collision repair over the years, Albin has a unique and invaluable perspective of how to run a body shop from top-to-bottom and front-toback. “I know how to hang a bumper and paint a car, so I know what’s expected. Natural progression in this industry doesn’t really exist anymore. Many body shop operators don’t have those abilities. As a result, there’s a growing separation between the front office and the back shop in a lot of shop environments. I’ve learned every aspect of this business hands-on and

max Pro, we can paint a car in a maximum of two coats without a flash and in many cases we’re doing the job with just one coat. Their wet-on-wet procedure makes our lives so much easier,” said Albin. “With DuPont’s waterborne product, we quickly discovered that every color has one-coat coverage capability and that’s never happened before ever in this industry, I believe. They told us it would happen and we were a bit skeptical. Then they showed us they were right and we were very impressed. I went from painting three cars daily to 12 vehicles with the change to Cromax Pro®.” Albin says he has saved a significant amount of money and time since he signed on with DuPont, but the overall quality of the finished product is what he values over everything else. “We’re producing more finished cars more quickly now since we switched to DuPont. The products, their system and

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the support people who helped us so much—they offered us the complete package and we’re happy we made the move. It’s costing us less now, but it’s not all about the money. The performance of the paint system is more critical and the quality of the finished product is the top priority.” Increased productivity is one of the major reasons why Albin’s so enthused about DuPont’s Cromax Pro®. “Time is money in any business and anything that will save time is invaluable

means that the vehicle is returned back to the manufacturers’ standards and nothing less,” he said. “We don’t cut corners; we never take short cuts and we avoid comebacks as a result.” DuPont’s New Accounts Specialist Kevin Harrington was pleased when Albin adopted Cromax Pro®, after been working with another vendor for several years. “Doug is what I call a raving fan for Cromax Pro® . He went from doing 3–4

Body Works Collision Center operates out of a 5,000-square-foot shop, generates $250,000 per month in sales and performs 65–70 repairs monthly

to my operation. I have one painter who works with four helpers and they get all of the cars done fast and efficiently, with a perfect uniform paint color and optimum coverage every time without fail.” Another one of the benefits Albin cited about Cromax Pro® is the accuracy of the computerized color-matching system. “It’s incredible. Color matching was always an issue with our former system. It didn’t provide matching for

coats per car to approximately 1.5–2 coats, without a flash when he switched. He saw a spike in his productivity right away and he was using less paint, so the savings were immediately evident.” Harrington has converted hundreds of body shops to the DuPont Cromax Pro® system throughout Southern California during the rush to change to waterborne last year, and he normally witnesses a rapid learning curve when shops are first exposed to his products and his system.

Body Works is now painting more vehicles in less time since adopting DuPont’s Cromax Pro and its matching system (right)

certain types of vehicles, but DuPont climbed to the top of our list when we got a chance to use it. It’s extremely user-friendly and my crew adapted to it right away.” Albin’s customer service approach is fairly simple. “Our main customer service goal is to do the repair right the first time, which

“It’s a relatively simple process and most painters can adapt quickly,” Harrington said. “We didn’t have to re-educate Doug very much, because he’s a painter and his staff was onboard all the way. Embracing the new system with waterborne wasn’t easy with every shop I worked with, but See Body Works Collision, Page 39

Parts for Profit 3—Increasing Sales by Larry Williams

This is Part 3 of a series of articles for parts managers directly managing employees handling both mechanical and collision parts. The Larry Williams same principles apply to parts management in a body shop. To read Parts 1 and 2, see Autobody News, April and May 2010 editions or go online: www.autobodynews.com, Menu: Content > Distinctive Dealerships > Special Interest Articles.

By now, you should have accomplished nearly everything I suggested in order to create the most efficient parts department possible. Your bins are spaced and numbered for fast access; and the bins closest to your front and back counters hold your fastest moving parts. You have no obsolete or unnecessary inventory; since you have cleared out the “trash.” You have a neat shipping/receiving area, and a holding area for cores and returns. All “hot” incoming parts for service and wholesale accounts have their own locations. Inventory counts have verified the location and quantities for all of your parts on hand. Your people are working in the locations and jobs that are best suited for them. All of your employees are knowledgeable in all aspects of paper flow and controls. Your training schedule assures full certification. Every work station is fully equipped, and set up to cover every need. You have created a parts department that will return profits of 50% or more, and with proper leadership, it will be a happy workplace. This should be the goal of every parts manager. These guidelines apply to all automotive dealerships. Your next area of focus should be to increase your sales. You have four areas in which to do this: Retail sales, internal sales, the service department, and wholesale customers. Retail sales are made directly to the owners of your automotive brand. Very few owners work on their own cars anymore. New car technology has gone far beyond the mechanical expertise of your average vehicle owner. Therefore, you must concentrate on selling your accessories. Your front counter is your display area, or “showroom.” Take the time to walk in the front door. Does what you see have eye appeal? You must be proud of what you see. Pride of ownership is what you are selling. Your customers want to let others know about their cars. Everything needs to have your logo on it. You will be amazed at what people will buy if it has a logo. Stay away from the ordinary. You don’t want to look

like every other parts house; you want to look your best, because you offer the best! Use a retention or bonus plan to reward customers for returning to buy from you. (Possibly a “permanent customer discount card,” can be given to them when they buy a new or used car, with their name and VIN for easy identification). Use your customers for referrals, and give them “Friend of Mine” cards good for bird-dog rewards. Use all good ideas from any source, and read Carl Sewell’s “Customers for Life,” for tried-and-true examples. Remember, the more positive contacts a customer has, the less likely any negative experiences or de-

tive product. Whatever you say must imply however, were the best, and always gave that their situation is unique and unantici- their customers quality service. Sales per pated, and that you will obtain whatever is customer will be greatest with body shops; needed for them as quickly as possible. and an average of $5,000 per customer per These three areas are common to all month can be easily obtained. I would want automotive dealerships, and if you work a minimum market of $100K available to hard for a short while, and lay the proper me before making the investment required groundwork, you will find profitability and of any good wholesale operation. a happy workplace is the natural result. For Second, you should check out your a few dealerships, however, there is an- competition. There are some manufacturers other opportunity to increase your profits: who support large dealers with volume disWholesale marketing. counts. Trying to compete with these large In my opinion, the parts department has ad- warehouse operations will be very difficult. vantages over every other department. They have a pricing advantage that you canYour parts department is the only not overcome. A high volume operation will sales area that does be impossible. You will be successful here Take a look at your available market. You must not require customers only if you have customers who value servhave a minimum of twenty customers within a ten to actually come to ice above price. You will be giving unthe dealership; and matched service, and that will be your edge. mile radius of your dealership, and most of your repeat sales can be Third, you must expand your invencustomers need to be body shops made with greater tory. This is where the dealer principle must lays will affect his relationship with you. frequency than any other department. make an investment and temporarily accept Internal sales are often neglected. The These two facts make yours the only reduced profits. You must be able to supassumption here is that you have no con- department which can increase sales signif- ply your customers with same day service trol of this area. I have increased sales in icantly; in a relatively short period of time. on some body parts. These parts will not this area by convincing sales managers Not every automotive dealership can meet your normal stocking criteria, but you that accessories will increase their own successfully sustain a major wholesale op- must have them available. I use a “12-inch” profits. Make up some promotional pack- eration. Yes, every dealer can sell parts at a rule for these parts. Any part inside the first ages. Dress up one vehicle and display it discount. This results in sales, but seldom and last foot of the body of the car needs to on the showroom floor. The eye-candy will any profits that will exceed your expenses. A be available on your shelf. These parts will appeal to the ego-motivated buyer. It is dif- profitable wholesale venture requires an ef- be used for “quick repairs,” that take only ferent. It’s special! This also allows the fort that goes above Next, check out your competition. Trying to comsales department to discount from the new and beyond the norm. car total without affecting their original Wholesale marketing pete with manufacturer’s discounts for very large profit margin. Include your sales depart- requires a financial dealers is difficult. They have a pricing advantage. ment in all of your promotions, and give commitment from the small gifts to all new car customers when dealer principle, and patience from the en- one day. Damage beyond one foot will rethey are brought into your department. tire management team. The parts department quire more than one day to repair, allowing Service sales are the backbone of is essential to the operation of service and you to order those parts and still meet your every parts department. You must give your sales. A shift of effort into wholesale mar- customer’s needs. service department and body shop priority keting will occasionally require other deYour survey is complete. Everything in all of your decisions. Your most impor- partments to wait, while outside customers looks good. You have enough customers, tant job is to provide service technicians are served. If properly presented, this idea there is little competition, and you have a with the parts they need in the quickest and should not cause any resentment within your basic inventory. Now you need motivation. most cost efficient manner possible. Every organization. Your dealer principle is reThe best tool for motivating your peoeffort should be made for same day service sponsible for keeping the peace between all ple is their pay plan. for all needed parts. However, it is nearly of the departments. Everyone should realize A pay plan is not just a means of comimpossible to anticipate every need. that in order to survive, they must be able to pensating your employees. A pay plan will A suggestion for a busy service de- adapt to changing situations. With everyone influence attitudes and help you accompartment, when your customers do not working together, every department con- plish your goals. Remember, it is human leave their vehicles, would be to schedule tributes its share to the overall profit margin. nature for your staff to use any pay plan to all service customers for one week from Reliable information is a must for their own advantage. I have found that my the original date of the order. You might successful planning. There are procedures personnel work more effectively when suppose that if the customer is in your to follow in order to create a successful they have all been told about our departshop on a Tuesday, then the following ment goals, and are reTo compete you need to expand your inventory. Tuesday might also be convenient for him. warded for their Alert your service department only to any performance in keeping Dealer principle must make an investment and parts backordered. With fill rates of 90%, those goals. In order to temporarily accept reduced profits this system reduces your necessary cuskeep your employees tomer calls nine fold, allowing you to wholesale operation. working as a team, devise your pay plans spend more of your time with any dissatFirst, take a look at your available so that everyone shares in the profits. A isfied or unhappy customers, and process market. You must have a minimum of plan that rewards individuals only in one the bulk of your customers with your reg- twenty customers within a ten mile radius area of sales will isolate your employees ular business. Instruct the service advisors of your dealership, and most of your cus- and keep them from helping one another. to never, ever, tell any customer that their tomers need to be body shops. I have found Keep your pay plan focused on what parts are “out of stock.” This phrase im- only a few independent mechanical shops your employees can control. You should be plies a poor level of service, and a defec- that use only factory parts. These shops, paid on your department’s net profit, but www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 27

your staff should be paid on gross profits. When you pay your counter help on gross profits, their pay is based on sales from the areas where they have the most control. Use bonus plans to reward performance in defined areas. For wholesale profits above a certain amount, reward with increased percentages on further sales. Use an increasing percentage plan which is based on increased profits. Example: $1–$10,000 = 10%, $10,001–$20,000 = 15%, $20,001– $30,000 = 20%, etc. Notice that this rewards all increases, without encouraging reduced efforts. Warning: Do not use exact figures for specified goals. For example; a bonus of $1,000 for sales of $20,000, results in employees working to attain that particular goal, and then “taking it easy,” because any further effort has no future reward. Also, do not pay your employees on sales if you want to make any real profits, since salesbased pay plans encourage deep discounts, placing volume ahead of profit. Your next area of focus should be your attitude, and it needs to be serious. To function efficiently, any group of employees must have faith in their leader.

Business is war! War may be Hell… but it’s good in business. When you decide to expand into the wholesale market, you must realize that you are declaring war on all of your fellow dealers. You must prepare as if it were a war; a war with no quarter given, no prisoners taken, and only complete victory your goal. Every one of your troops must be trained and equipped to the best of your ability. Only then, with your victory assured, do you go into battle. If you follow this philosophy, you cannot fail. You will gain the hearts and minds of not only your employees, but those of your customers as well. Ninety percent of any business transaction is selling yourself. You only have one chance to get that special customer. If you fail, he will not give you another opportunity to gain his trust. The only way to achieve this goal is with service. Your service should not just be head and shoulders, but miles above everyone else! First impressions, being the longest lasting, are of the utmost importance. Your Continued from Page 18

ABPA Conference

on non-OEM bumper parts. The testing, he said, will include angle-barrier tests to determine whether such parts “impact on keeping the two frame rails together.” Gillis said the involvement of the IIHS is an indication of insurer’s interest in the issue. “The bottom line is: If these bumpers do not protect occupants or

key to this success is to exceed any expectations on the very first call. You must not just be better than your competition, you must destroy them. After your customer’s first experience with you, he should never consider your opponents again. You need not only impress him; you must change his perception and alter his world. Every one of your troops, and every contact with your customers, must rise above the level of your enemies. Your aim is to win every battle, and be the obvious victor in the war for your customer’s consideration. When your customers think of your brand name, they must think of you. You have prepared yourself. You have adhered to your plan. Your inventory is or-

perience will get those customers, and keep them calling back. Your service is more than just the initial phone calls, however. Your inventory and your delivery must back up your sales. Everything needs to work in harmony, to give your customers an experience that is unmatched, anywhere else. Build on your existing customer base. Research shows that keeping your old customers happy is the best way to increase overall sales. A major reason for my success was keeping down customer “churn”. In a year-and-a-half, I only lost one customer; and that individual valued his cost over my service. Service should your selling point, not price, since no matter how low your price might be they can always find it somewhere else cheaper. GivNinety percent of any business transaction is ing away your product is selling yourself. You only have one chance to not the way to increase profits. get that special customer... The only way to Stay in touch with all of acheive this goal is with service. your customers. Use a ganized, and your personnel are well customer contact plan that suits your custrained. You and your staff are motivated, tomer’s needs. Remember, your typical inand eager to generate more business. Sales dependent garage or body shop is busiest can now be made to those extra customers; in the morning and late afternoon; at the bethe ones who never see you. These are your ginning and end of each day’s work. Time wholesale garage and body shop accounts. your calls so that you don’t interrupt your Here is my secret for increasing those sales: customer’s day. Call every customer you Ask for their business! have not heard from in over two weeks. Tell him you are calling to make sure he’s You can increase this area of your completely satisfied. He will appreciate business just by asking for it! Almost any your consideration and your concern. program of phone calls, post cards, or dropIt’s useless to try to plan for the unexby visits will be successful, if you just keep pected, so well-trained and motivated emat it. Unless a shop is completely satisfied ployees are essential! Reliable information with their current supplier, they will give is a must. Given the opportunity, your base you a chance. In my experience, very few of loyal customers will expand beyond shops were completely happy with all of your wildest imagination. I know this for a their suppliers. The reason for this is that fact, since that was how I became the nummost automotive dealers do not have a very ber one wholesaler in the nation, for one good wholesale attitude. Your competition manufacturer. will be, by comparison; lazy, untrained, and basically unappreciative of most of their How we did it… customers. Most of these shops will be I want to tell you the story of Don Valdez; willing to give you a chance. But remem- possibly the best salesman I have ever had ber, you cannot disappoint new customers the pleasure of working with. When I first and expect them to come back to you for discovered Don, he was attempting (as best any repeat business. You must be ready for as he could), to fill in for a dealership that had their business before you ask for it. lost its parts manager. Don absolutely hated In most cases your only contact with organization, and was the best example of a these customers is over the phone. Your “free spirit” that I have ever seen. He was “best” counterman must be the one who an- positively ecstatic when I came along; and swers their calls. A smile in his voice, freed him of the burden of administrative duknowledge of his inventory, and years of ex- ties and paperwork. In the beginning, I had

(allow) more damage to vehicles, it’s insurers that are going to pick up the cost of either the personal injury associated with the problems, or the additional damage associated with poor-performing bumpers in low-speed collisions,” Gillis said.

Fighting OEM patent protection Also speaking at the meeting was Eileen Sottile of the Quality Parts Coalition (QPC). She said that organization has amassed $713,000 to use in its effort to

28 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

enact federal legislation (HR 3059) that would nullify design patent protections on automotive and other repair parts. The coalition, made up primarily of insurers and non-OEM parts manufacturers and distributors, says automakers are increasingly seeking design patents on crash parts to prevent non-OEM versions of the parts from being produced and sold. Dan Morrissey, a consultant in the non-OEM parts industry and co-chairman

no idea what the results would be when I put him in charge of our retail and wholesale sales. However, it did not take long for me to realize that Don was a “natural.” He just loved to sell, and enjoyed talking to all of his customers. Free of time-consuming housekeeping tasks, he devoted all of his energy to producing more sales. I soon installed a direct telephone line, (just for his use), and only months later, a second line. We started with one part-time driver, and soon added more drivers, and more trucks; as our volume of deliveries grew. Eighteen months later I learned that we were our manufacturer’s leading wholesaler, in the nation! This happened as the result of Don’s inner drive, and because of his joy in selling. It didn’t come without a price, however. Don’s aversion to organization controlled his workspace. An unbelievable pile of mismatched paper and notes filled every available surface, nook and cranny. He was also uncompromising with his delivery men; driving them to be fast, faster, fastest! I hired two additional men; in order to help him, and told them ahead of time that Don was the only employee I allowed to work in such a mess. In fact, I asked them to help me clean up after him. He never ceased to amaze, however, when asked about a particular order, to be able to reach into that haphazard “nest” of his, and pull out the correct note. His drivers were warned ahead of time of the pressure he would place on them, and that they could always come to me when things got to be just too much. Eventually, all of my staff came to realize that Don never drove anyone harder than he drove himself. I never had to light a fire under him, because he had his own fire, within. And I knew we would never have experienced the results we were able to achieve, without him. I hope you have as much good fortune as I have had, and the pleasure of creating and managing a profitable parts department. I hope you too will find those people who will make your job easier, and reward all of your efforts with success.

Larry Williams is a former parts manager and consultant with national awards and over 40 years of experience in creating profitable departments. He can be reached for consultation at ljoew2@gmail.com. of the QPC, told distributors at the ABPA annual meeting that as of late April only 14 businesses had contributed to the fund. The QPC, he said, now is asking more distributors for a $50 donation for every shipping container they import into the United States. “I hope everyone realizes this is a life or death issue for the aftermarket,” Morrissey said at the meeting, “If the OEMs are successful in patenting parts, it could be the end of our industry.”

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www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 29

Hurricanes and Oil Spills are a Bad Combination, or Not?

The Gulf continues to brace for what could be the world's biggest ever oil spill the week of May 23. Alabama, Florida, Mississippi and Louisiana are buffered by a string of barrier islands that provide the first line of defense against Gulf storms but heavy tar is washing up on Alabama's Dauphin Island while Mississippi and Louisiana coastal areas are beginning to see more oil coming ashore. It’s natural to fear the upcoming hurricane season, usually June through November. Heavy barriers that ride below the surface are being installed but a tropical storm could negate the anchored oil booms on the floor of Mobile Bay, allowing a storm surge to penetrate to the coast. However, some experts believe the oil could actually help slow the likelihood of a hurricane forming by putting a barrier between the atmosphere and the ocean. “The oil would have the effect of suppressing evaporation of ocean water into the air,” said Dennis Feltgen, meteorologist at the National Hurricane Center. Tropical storms need warm ocean water to fuel their development. But, Feltgen emphasized, the effect would be only in the formation of a storm below 40-mph winds.

Experts: Gulf Coast Oil Spill Won't Affect Gas prices

While the jury’s still out on what the ultimate damage to the Gulf economy will be, experts say the oil spill in the Gulf of Mexico will not affect gas prices. At a rate of 200,000 gallons a day, the spill would take more than 208 years to deplete our nation’s oil supply. In the days after the April 22 oil rig explosion and spill, Tampa Bay saw a slight increase in gas prices. “That’s been a big misperception,” said Jessica Brady of AAA Auto Club South. “When the oil spill occurred, oil prices were increasing but the increase had nothing to do with the oil spill.” In fact, Brady says while the spill is significant, it’s nowhere near large enough to affect oil supply in the U.S. Currently, U.S. oil reserves exceed 362 million barrels. Each barrel contains approximately 42 gallons of oil. That puts U.S. oil reserves at 76,000 times the amount that’s estimated to be spilling into the Gulf each day. “Oil refineries in the U.S. are also only running at 88 percent capacity right now, so supply is not a problem,” Brady said.

High Schoolers Compete to be Top Auto Technician

High school teams from across the state were in Jackson, MS to face off in an automotive challenge to become America’s next top auto technician. Twenty juniors and seniors representing 10 schools competed in the Ford Triple A Student Auto Skills Competition at the trade mart. The Ford/AAA Student Auto Skills is a nationwide automotive technology competition for high school juniors and seniors interested in pursuing careers as automotive service technicians. Each two-member team raced against the clock to correctly identify and fix intentionally installed bugs on identical Ford vehicles. The cars are “bugged” with 10 identical defects. The competition tests the youngster’s abilities to follow a procedure to solve the problems, fixing all ten defects without causing more and without fixing something that wasn’t broken. Teams also had to pass a written and hands-on test before qualifying for the finals in Dearborn, MI. After diagnosing and repairing the problem, teammates drove across the finish line. Stacy Williams and Christopher Cornelius from Clinton High School took first place. They will represent Mississippi at the national finals in Dearborn, MI, June 13–15.

Missippi Supreme Court to Hear Katrina Insurer Appeal

A dispute between an insurance company and a retired Navy admiral over coverage of damages from Hurricane Katrina has made its way to the Mississippi Supreme Court. The case is among dozens the Supreme Court will hear during its MayJune term. The lawsuit involving Admiral James W. Lisanby and his wife, Gladys, and United Services Automobile Association was the first Katrina-related case to go to trial in Jackson County. In 2008, a Jackson County jury returned a $900,000 verdict for the Pascagoula couple. Lisanby had sued USAA, of San Antonio, Texas, for damage to their Pascagoula beach front home, as well as their rental cottage, garage and other losses. They also asked the jury to award an unspecified amount for emotional distress. Circuit Judge Billy G. Bridges declined to allow the jury to consider punitive damages. USAA has appealed the jury award. USAA lawyers argued company did not owe more than the approx. $45,000 it had already paid because the Lisanbys' insurance policy did not cover water, even wind driven water. The Lisanbys' attorney said USAA failed to properly and fully investigate the claim before denying coverage.

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Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.

Shop Showcase

Silsbee Texas Gets New Fasulo’s Paint and Body Shop with Erica Schroeder

Fasulo’s Paint and Body Shop unveiled their second Texas location in Silsbee, TX, 20 miles north of their flagship shop in Beaumont, this April and was able to receive over $70,000 in repair jobs during just their first month. David Fenner, the owner of both locations, couldn’t be happier with the productivity of both shops during this challenging economic period. The Fasulo family originally approached Fenner about buying Fasulo’s Paint and Body a few years ago; Fenner has been renovating and growing the business ever since he purchased it in 2005. Estimator Chris Swan“We’ve actuson at Fasulo’s Beaually been growing in mont location Beaumont as well as in the Silsbee location,” said Fenner. Fenner and his wife, Lisa, have managed to preserve the family-run shop feel

while still growing the business and even opening a second location. “Usually if I’m in one shop, she’s in the other so one of us is always at each location,” said Fenner.

Painter Jimmie O’Brien

The decision to start up another location during a declining economy came easy to Fenner, who said several insurance companies he works with expressed to him a need for a good repair shop to service clients in the Silsbee area. The Beaumont location boasts a 22,000 square-foot facility, employing 18

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people and pulling in about $2 million in revenue per year. The Silsbee location operates out of a 7,500 square-foot air-con-

“We care, we do good work, and we treat the customer right,” said Fenner. Fasulo’s has a lot of great female employees, which is somewhat out of character for a local body shop. Including Fenner’s wife, Lisa, who has been work-

Body Technician Damon Smith at the Beaumont location

ditioned facility and employs 6 people; Fenner hopes this location will be able to draw in about $1 million annually once it gets going.

Pamela Cooper at the Beaumont front desk

ing with both shops’ finances since Fenner bought the company, Fasulo’s also employs two female customer service secretarial employees, Pamela Cooper in Beaumont, who has been with the company for 3 years and Betty Jo Fertitta in

Body Technician Matt McGlothin at the Beaumont location

Both Fasulo’s locations are all about making the customer’s experience easy and enjoyable; including their use of insurance Direct Repair Program (DRP) referrals and trying to keep a neat, clean, organized facility at all

Local

(713) 558-8272

Betty Jo Fertitta at the Silsbee front desk

Silsbee who has been with them for 3 months; Johnna Lea, who has been a parts orderer with Fasulo’s for two-and-ahalf years; and Jimmie O’Brien, an autobody painter who’s been with them for three years. Jimmie and her husband Russell, who also works at Fasulo’s as a body

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times. Fenner said the shop really cares about their repairs and they want to get them done as quickly and precisely as possible to accommodate customer needs. The Beaumont location employs 2 estimators while the Silsbee location employs 1 to better service incoming customers.

Owner David Fenner and estimator Bill Slocum at the Silsbee location.

man, are a husband and wife team and often work together on repair jobs. Fasulo’s has been working with waSee Fasulo’s, Next page

www.autobodynews.com | JUNE 2010 AUTOBODY NEWS 31

Action Counts

Beating a Dead Horse with Lee Amaradio Jr.

I try to write articles to help others out; ar- back, not stab each other in the back. This ticles that try to motivate shop owners and is why things will never change; we are not managers to do a better job. I have come in agreement on anything as an industry. with Lee Amaradio Jr. under attack many times from some in our Here’s what I believe: industry for voicing my opinion and being I believe that DRPs are nothing more the person that is willing to speak up and than a way to process claims and DRPs are say the hard truth. the most efficient way to expedite the repairs. Our industry wants “Change” but no I believe the repair shop is the repair one can agree what that change should be expert and is responsible for the repair or what direction we need to go to get process (not the insurer). Loftus there. I have shopwith owners Sheila that hate me beI believe the repairer carries the entire cause I have DRPs and stand up for those liability for the repair of the customer’s veinsurers that I think are doing a good job. hicle. Some shop owners think we need to hate I believe the vehicle owner is my cusall of the insurers and saying anything less tomer and the repair contract is between than that makes me a hypocrite. the shop and the customer. Some think DRPs are the problem I believe the insurance company is a while others think with they are Sheila fine. SomeLoftus think third party payer and their contract is with the insurance company is our customer the policyholder to perform to the terms of while others think the vehicle owner is the the policy. customer. Some like aftermarket parts I believe that due to the fact that we while others stand against them. Some have a term called “industry standards” think the insurers are responsible for the re- those standards need to be defined as pair process while others think it’s the “OEM collision repair requirements.” shops liability forwith the repair. We cannot I believe that cost should never be the priJanet Chaney even agree on some of the simplest things. mary driver dictating the repair process. The truth is that nothing has changed I believe aftermarket parts defraud the and it never will because we can’t even de- consumer and should never be considered cide what change we want. If I were a in the cost of settling a claim. commanding officer heading to battle and I believe that the vehicle should be reI ordered the troops to go in one direction paired exactly as the final bill states and with Janet Chaney and they just chose to go their own way there should be no cost shifting. and started fighting each other we would I believe that each shop should charge certainly lose any battle we were to fight. whatever they think is necessary to make a To win any battle the troops need to all be fair profit. on the same page and they all need to supI believe that if a shop wants to give port one another and have each other’s concessions it is their business and others

Action Counts Your Turn Your Turn

Shop Showcase

Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com

are under no obligation to offer the same discounts. I believe DRP’s can be good or bad depending on the insurer and or the concessions involved. I believe it is up to each shop owner to negotiate the rates that they expect to get paid. I believe that a lot of shops would be paid a higher rate if they only negotiated for the higher rate and proved why it is necessary. I believe I am the only one responsible for making a profit. It’s my business. Now that I have made some things clear about what I think you will find that a few will agree with me and many will disagree with me. This is exactly my point and this is the reason that nothing will change. If you want to change the industry I suggest that you change the way you do business and let the industry take care of itself. One would think that if enough shops united that they would be able to gather enough support for a major change to follow, not true!

We are in an industry that continues to pass the buck and pass the blame on to others whether it be some shops or the insurers. The sad thing is that because we have always been able to blame someone else we fail to take the necessary actions to make anything different. It’s just easier to blame someone else and say “it’s not my fault”; this thinking dominates our entire industry. Everyone is very quick to complain and very slow to get involved. Take care of your own backyard and watch your own bottom line if you do this you will see the change you have been looking for. If you work with profit as your primary goal you will make a profit. If you work to produce quality you will produce quality. If you negotiate for a higher labor rate you will get a higher labor rate. If you change things will change. If you keep beating a dead horse you will get the status quo, a beaten horse that is no less dead.

Shop Showcase

Industry Overview with Janet Chaney

the switch to teaching high school paint and body courses. He also worked as an insurance claim adjuster shortly before moving in to the shop side of the industry. terborne paints as of late; they decided to Fenner’s diverse background has helped with Janet Chaney make the switch from solvent-based to wa- him to become very knowledgeable in the terborne paint when the new Silsbee loca- industry. tion opened to coincide more with factory paint standards. Fenner said that since factories are with John Yoswick now using waterborne paints when they manufacture cars he wanted to work with it as a repair shop. “It’s just the newest thing, they’re putting it John Yoswick with David Fenner in front of his new Silsbee shop. on all the new cars,” said Fenner. In addition to starting up a new webDavid Fenner has had a diverse auto site for the business in the coming months, background; he graduated from Texas Fenner also said he is planning to shoot a State Technical College and started out commercial to promote Fasulo’s and the working as a technician. Fenner then made new Silsbee shop. Continued from Page 31

Fasulo’s

Industry Overview

Industry Insight Industry Insight

Industry Interview with Janet Chaney

32 JUNE 2010 AUTOBODY NEWS | www.autobodynews.com

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I-CAR Industry Conference Registration Now Open

I-CAR has announced that online registration for the 2010 I-CAR Industry Conference is now open. The half-day conference will be held on July 21 from 8–12 noon at the InterContinental Chicago O’Hare Hotel in Rosemont, IL. This year’s event will coincide with several other industry meetings being held during the same week. During the conference, I-CAR will introduce its redesigned, role-based curriculum structure to the interindustry. “For the past two and a half years, ICAR has been allowed to facilitate an industry-wide conversation on the training needs of the auto collision inter-industry. The industry has told I-CAR what is required of I-CAR to deliver on its vision that every person in the collision industry, current and future, has the necessary knowledge and skills relevant to their position to achieve a complete and safe repair,” said John Edelen, I-CAR President and CEO. “I-CAR has focused on clearly defining industry roles, identifying the knowledge and skills needed to be effective in each role, and developing a training and recognition structure that we believe aligns with the direction of the industry,” he continued. “With the introduction of the role-based curriculum, I-CAR will present the outcome of that effort—a significant reengineering of I-CAR’s training, the or-

Chrysler CEO Says IPO May Come in 2011

Chrysler will "probably" launch its public offering in 2011 and expects that 2010 will be a better year than it originally had forecast, the company's chief executive said on Thursday. Marchionne said that he expects Chrysler to get clearance for U.S. Department of Energy loans for green car manufacturing this year. The Obama administration has set a target of putting 1 million rechargeable cars on the road by 2015. Chrysler recently said it will introduce an all-electric Fiat 500 to the U.S. market in 2012 and drop plans to develop a hybrid version of the 2011 Ram pickup truck.

ganization of its curriculum, its industry recognition programs, and the transition that will take place.” Jeff Peevy, I-CAR Director of Field Operations said, “These changes will provide tremendous value to a broad range of inter-industry segments. The redesigned role-relevant training model provides organization and structure for career development paths, linking training more closely to the performance of an individual’s role.” For registration information and event details, visit www.i-car.com/meetings. Questions regarding registration should be directed to Jolinda Ottum at jolinda.ottum@i-car.com or 847-463-5247.

‘Old Chrysler’ Repays $1.9B, Treasury Loses Rest of $4B The U.S. Treasury Department has received a $1.9B loan repayment from Chrysler Holding, the parent Chrysler company that filed for bankruptcy in 2009. Chrysler Holding is owned by private equity firm Cerberus Capital Management, which bought majority stake in Chrysler from Daimler AG in 2007. Chrysler came so close to running out of money at the end of 2008 that U.S. government stepped in, authorizing $15.5 billion in aid and appointing Fiat SpA to run the new Chrysler after it emerged from bankruptcy protection. The old Chrysler, made up mainly of debt and unprofitable assets, along with its finance arm, became Chrysler Holding. The repayment was “significantly more” than the department expected, the agency said. Treasury had made the $4 billion loan on Jan. 2, 2009, approved by the Bush administration, which went into default when Chrysler LLC was forced into bankruptcy by the Obama administration in April 2009. The original $4 billion loan went into default when Chrysler filed for bankruptcy in April 2009. In June 2009, the assets of old Chrysler were sold to the holding company as part of the bankruptcy court proceedings.When assents of Old Chrysler were sold to the new company in June, the loan was reduced by $500 million, according to the statement. Liquidation of the bankrupt carmaker didn’t result in recovery of the debt.

Chrysler Holding has no ownership stake in Chrysler Group LLC, which isn’t directly affected by the repayment, however Treasury has said it hopes to get another $500 million from Chrysler Group LLC. Treasury said it has received repayments of $3.9 billion to date, including the $1.9 billion repayment and a $1.5 billion loan paid off by Chrysler Financial. Chrysler also assumed $500 million of Old Chrysler's debt, reducing the debt to the government. Under the financing arrangement the U.S. government can own up to 35% of Chrysler Group but officials said that the government had no plans to add to its stake in the new Chrysler. The remainder of the company is now 68 percent owned by a United Auto Workers retiree health care trust, 10 percent by the U.S. government and just over 2 percent by the Canadian government. Treasury also acknowledged another $1.9 billion in potential losses from a separate loan that had been made to Chrysler Holding before it went through bankruptcy proceedings. It indicated slim hopes of recouping much if anything from that separate $1.9 billion loan. Treasury said that as a result of the repayment, Chrysler Holding and Chrysler Financial, the auto financing arm of the company, no longer have outstanding obligations to the $700 billion TARP bailout fund. Chrysler Group LLC still does.

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Continued from Page 1

House Passes Act

ance Act of 2002; • to coordinate federal efforts and develop federal policy on prudential aspects of international insurance matters, including representing the United States, as appropriate, in the International Association of Insurance Supervisors (or a successor entity) and assisting the secretary in negotiating International Insurance Agreements on Prudential Measures; • to determine whether state insurance measures are preempted by International Insurance Agreements on Prudential Measures; • to consult with the states (including state insurance regulators) regarding insurance matters of national importance and prudential insurance matters of international importance; and • to perform such other related duties and authorities as may be assigned to the office by the secretary. The Office of National Insurance is also required to conduct a study within 18 months of enactment and report to the Congress on how to modernize and improve insurance regulation: • In General - Not later than 18 months after the date of enactment of this section,

the director shall conduct a study and sub- lation or federal regulators to eliminate or mit a report to Congress on how to mod- minimize regulatory arbitrage. ernize and improve the system of • The impact that developments in the reginsurance regulation in the United States. ulation of insurance in foreign jurisdictions • Considerations - The study and report might have on the potential federal regushall be based on and guided by the fol- lation of insurance. lowing considerations: • The ability of any potential federal regu• Systemic risk regulation with respect to lation or federal regulator to provide robust insurance. consumer protection for policyholders. • Capital standards and the relationship be- • The potential consequences of subjecting tween capital allocation and liabilities, in- insurance companies to a federal resolucluding standards relating to liquidity and tion authority, including the effects of any duration risk. federal resolution authority • Consumer protection for insurance prod- - on the operation of state insurance guaructs and practices, including gaps in statewww.autobodynews.com anty fund systems, including the loss of regulation. guaranty fund coverage if an insurance CHECK IT OUT! • The degree of national uniformity of state company is subject to a federal resolution insurance regulation. authority; • The regulation of insurance companies - on policyholder protection, including the and affiliates on a consolidated basis. loss of the priority status of policyholder • International coordination of insurance claims over other unsecured general credregulation. itor claims; • Additional Factors - The study and re- - in the case of life insurance companies, the port required under paragraph (1) shall loss ofTo theadvertise special status of separate account also examine the following factors: assets and separate account and call Advertising Sales liabilities; at: • The costs and benefits of potential federal - on the international competitiveness of 800-699-8251 regulation of insurance across various lines insurance companies. of insurance (except health insurance). - such other factors as the director detere-mail: advertising@autobodynews.com • The feasibility of regulating only certain mines necessary or appropriate, consistent lines of insurance at the federal level, with the principles set forth in paragraph (2). while leaving other lines of insurance to bewww.autobodynews.com regulated at the state level. • Required Recommendations - The study • The ability of any potential federal regu- and report required under paragraph (1)

shall also contain any legislative, administrative, or regulatory recommendations, as the director determines appropriate, to carry out or effectuate the findings set forth in such report. • Consultation - With respect to the study and report required under paragraph (1), the director shall consult with the National Association of Insurance Commissioners, consumer organizations, representatives of the insurance industry and policyholders, and other and experts, apGive usorganizations your opinion on as matters a propriate. To view a complete summary of the legislation, along with the full text, visit ASA’s legislative website at publisher@autobodyn www.TakingTheHill.com.

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