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The Houston Auto Body Association Hosts Body Shop Owners and Managers at Appreciation Event to Meet New Members The Houston Auto Body Association hosted their first annual Body Shop Owners and Managers Appreciation
Over 150 people attended the Appreciation Event, covering the Cadillac Bar’s dance floor
event at the Cadillac Bar in Houston on May 19 at 7 pm. The event drew about 150 in at-
tendance according to HABA’s President James Brown. HABA decided to host this event in lieu of their monthly members’ meeting this month in order to show prospective members and local industry people more about the organization and their members’ interests (see adjacent story.) The event was such a success that the HABA has decided to conduct the event annually. “The HABA wanted to host this event to show our appreciation to the body shop owners and managers in Houston and the surrounding areas,” said Brown. “We also wanted to provide the opportunity for everyone to see what the HABA was all about in a fun and relaxing atmosphere.”
Allstate Will Buy Esurance and Answer Financial In a bid to capture more business from customers who shop online, Allstate Corp. has agreed to buy two popular online insurance sellers—Esurance and the associated site, Answer Financial. Allstate will pay a total price of about $1 billion– $700 million plus the tangible book value of the two firms acquired at close. Esurance is the third-largest provider of online auto insurance quotes through its website and a 24/7 call center. It sells in 30 states. Over the past five years, Esurance has more
than doubled policies in force and grown premiums on average 20 percent per year, according to the company, which advertises heavily. It also sells other personal lines coverages. Answer Financial provides auto insurance quote comparisons from 20 brand-name auto insurance companies to buyers in all 50 states. The carriers it represents include Esurance, Travelers, Progressive, Safeco, Met Life Auto & Home, Unitrin and The Hartford. In July, it reported having See Allstate Buys Esurance, Page 28
The association also had six new shops sign up for membership after attending the event.
Active HABA member Larry Cernosek enjoys the reception
For more information about the Houton Auto Body Association please visit www.habaonline.org.
SPECIAL INSERT
VOL. 29 ISSUE 6 JUNE 2011
TX Legislative Update from the Houston Auto Body Association
The Houston Auto Body Association (HABA) has been in support of several Senate and House Bills in the state this year. Among them are Senate Bills 944 and 1300, which each had a hearing on April 17 in the state's House of Representatives. SB 944 was introduced by Texas Senator Mike Jackson earlier this year and would create an advisory committee for the Texas Insurance Commissioner that would make recommendations regarding automobile insurance claims. SB 1300 will require more disclosure from insurers about their Direct repair Program policies and requirements. See HABA Legislation, Page 10
Shop and Product SHOWCASE
REGIONAL ARTICLES in this issue...
Body Shop Manager Elected Chairman for TX State Fair . . . . . .p. 4
ASA Testifies at Texas Franchise Tax Law Hearing . . . . . . . . . . .p. 4
NWLCRA May Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 6
OK Attorney General, Commissioner Focus on Fraud . . . . . . . . .p. 9
COLUMNS in this issue...
Schroeder — The Body Shop Garage Opens in Woodward, OK .p. 14
Amaradio — The Good Old Days . . . . . . . . . . . . . . . . . . . . . . . . . .p. 17
Insurance Insider — Allstate Deserves Credit for DRPs . . . . . . .p. 18
Espersen — The Value of Service Repair Information . . . . . . . . .p. 20
Weaver — Shift Happens: The Story of Three Transmissions . . .p. 21 Chess — Getting OSHA-Compliant Part 2 . . . . . . . . . . . . . . . . . . .p. 30
Evans — Repairing a Quarter Panel, Bumper, and Molding . . . .p. 36
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Contents be Gained, Not Given Back. . . . . . . . . . 22
ASA Testifies at Texas Franchise Tax Law
Espersen - The Value of Service Repair
Body Shop Manager Elected Chairman
Evans - Repairing Quarter Panel, Bumper,
CMC to Install Auto Shredder in South
Franklin - Focusing Marketing Efforts on
Hearing. . . . . . . . . . . . . . . . . . . . . . . . . 4 for TX State Fair . . . . . . . . . . . . . . . . . . . 4 Texas. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Gerber Collision and Glass Acquires
Georgia Shop. . . . . . . . . . . . . . . . . . . . 12
Hail Storm Brings Influx of Repairs for
TX Shops . . . . . . . . . . . . . . . . . . . . . . 10
Information . . . . . . . . . . . . . . . . . . . . . 20 and Molding: No Time, No Money . . . . 36
a Narrow Demographic Yields More
Results . . . . . . . . . . . . . . . . . . . . . . . . 26
Insurance Insider - Allstate, Founder of DRPs, Deserves Some Credit for
Improving Repair Industry . . . . . . . . . . 18
LA House Repeals Ban On Impounding
Schroeder - The Body Shop Garage Opens
LA Insurance Agent Sentenced in
Weaver - Shift Happens: The Story of the
Northwest Louisiana Collision Repair
Women’s Industry Network Conference
Fraud Case . . . . . . . . . . . . . . . . . . . . . . 8 Association Hosts Local SkillsUSA
Winning Students, Hertz . . . . . . . . . . . . 6
OK Attorney General and Insurance
Commissioner Announce Joint Focus
on Fraud . . . . . . . . . . . . . . . . . . . . . . . . 9
Oklahoma Insurance Commissioner Doak Urges Passage of Uninsured Motorists
in Woodward, Oklahoma . . . . . . . . . . . 14
Three Transmissions and a Limp KIA . . 21
Held in San Diego . . . . . . . . . . . . . . . . 29
Yoswick - Industry Trends and Changes in
Future Vehicles at WIN Conference. . . . 24
NATIONAL
AASP Awards Grants to NABC and Auto
Education Institute . . . . . . . . . . . . . . . . 35
Protection Bill . . . . . . . . . . . . . . . . . . . 10
Alabama Auto-Scrapping Bill Curtails Auto
Ford/AAA Student Auto Skills Contest
Allstate Will Buy Esurance and Answer
Oklahoma Technical Students Place In
Held in Okmulgee. . . . . . . . . . . . . . . . . . 4
Scrap Industry . . . . . . . . . . . . . . . . . . . 16
Financial . . . . . . . . . . . . . . . . . . . . . . . . 1
Suspicious Fire At Tulsa Auto Body Shop
ASA Announces its 2011 Government
The Houston Auto Body Association Hosts
ASA Announces its Collision Operations
Still Under Investigation . . . . . . . . . . . . . 9 Body Shop Owners and Managers Appreciation Event to Meet New
Members. . . . . . . . . . . . . . . . . . . . . . . . 1
Affairs Committee . . . . . . . . . . . . . . . . 35
2011 Committee . . . . . . . . . . . . . . . . . 35
ASA Discusses New Refinish Regulation
with EPA Officials. . . . . . . . . . . . . . . . . 35
TX Legislative Update from the Houston
Gunder Supporters Release Infinity
West Virginia Insurance Commissioner to
Infinity Insurance Apologizes for Gunder’s
Auto Body Association. . . . . . . . . . . . . . 1
Retire . . . . . . . . . . . . . . . . . . . . . . . . . 12
COLUMNISTS
Amaradio - The Good Old Days . . . . . . . . 17
Chess - Getting OSHA-Compliant on
Signage, Electrical and Power Tools . . . 30
Danalevich - Total Loss Fees Are Profits to
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Indexof Advertisers
Uninsured Cars . . . . . . . . . . . . . . . . . . 19
Insurance’s Voice Recordings . . . . . . . 12
Auto Center Customer Recordings . . . 16
National Average for Body and Paint Labor
Rates Up Only Modestly Since 2006 . . 20
Porsche North America HQ to Leave Sandy Springs, GA, for Nearby Ex-Ford Plant in
Atlanta. . . . . . . . . . . . . . . . . . . . . . . . . 10
Southwest
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
Autobody News
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 19 Audi Wholesale Parts Dealers . . . . 29 Autoland Scientech. . . . . . . . . . . . . 21 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 7 BMW Wholesale Parts Dealers . . . . . 8 Chevyland . . . . . . . . . . . . . . . . . . . . 14 Chief Automotive. . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Dallas Dodge . . . . . . . . . . . . . . . . . 40 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . 26 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 25 Garmat USA . . . . . . . . . . . . . . . . . . . 6 Gene Messer Hyundai . . . . . . . . . . 31 Global PDR Solutions . . . . . . . . . . . 27 GM Wholesale Parts Dealers . . . . . 33 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 37 Huffines Hyundai Plano . . . . . . . . . 10 Hyundai Wholesale Parts Dealers . 22 Kia Motors Wholesale Parts Dealers. 13 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 39
Mark’s Casa Mitsubishi. . . . . . . . . . 12 Mazda Wholesale Parts Dealers . . . 28 Mercedes-Benz of Oklahoma . . . . . 30 Mike Calvert Toyota. . . . . . . . . . . . . 29 Mitsubishi Wholesale Parts Dealers. 35 MOPAR Wholesale Parts Dealers . . 15 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 34 Parkway Family Mazda . . . . . . . . . . 26 Quality Stainless Products . . . . . . . 28 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 33 Safety Regulations Strategies. . . . . . 4 SATA Spray Equipment . . . . . . . . . . 9 Scoggin-Dickey Buick . . . . . . . . . . 18 Scorpion Coatings . . . . . . . . . . . . . 23 Subaru Wholesale Parts Dealers . . 11 Suzuki Wholesale Parts Dealers . . . 38 Toyota Wholesale Parts Dealers . . . 31 VIM Tools. . . . . . . . . . . . . . . . . . . . . 36 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 Volvo Wholesale Parts Dealers . . . . 32 Young Chevrolet . . . . . . . . . . . . . . . 24
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 3
ASA Testifies at Texas Franchise Tax Law Hearing The Automotive Service Association (ASA) has testified before the House Ways and Means Committee of the Texas General Assembly in Austin, Texas, about an inequity in the current Texas Franchise Tax code. In her testimony, Denise Caspersen, ASA’s Collision Division manager, discussed the association’s support for Texas House Bill 429, a bill introduced by Rep. Allen Fletcher, R-130, to reclassify the automotive repair industry as “retail” for purposes of the franchise tax. “Currently, in the Texas Franchise Tax code, automotive repair and collision shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independently owned automotive repair businesses doing identical work,” said Caspersen. “The tax code classifies dealership sales as ‘retail’ and allows their service and repair business to be included under that banner. Texas independent repairers are seeking similar treatment.” ASA members from Texas also spoke in support of the legislation. House Bill 429, if passed, would allow automotive repair shops to be
taxed the same amount that dealers, parts stores and tire stores are now taxed. The Texas Senate has also introduced its version of the bill, Senate Bill 476. ASA is asking Texas repairers to continue to support House Bill 429 and its companion, Senate Bill 476, by contacting their state legislators urging support for the legislation.
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Oklahoma Technical Students Place In Ford/AAA Student Auto Skills Contest Held in Okmulgee 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. The Oklahoma state championships were held in Okmulgee at the end of April, and students from local schools were able to walk away as winners—some with a ride to the national portion of the competition inhand. The competition tests students’ automotive knowledge, workmanship and problem-solving abilities with a written test as well as a race against the clock to diagnose and properly repair intentionally “bugged” vehicles. Each year, Oklahoma State University Institute of Technology in Okmulgee is the host for this statewide contest. This year’s contest brought together juniors and seniors from 10 technology centers across Oklahoma. This year’s first place winning team was from Moore Norman Technology Center in Norman. Students Lathan Springer and Donovan Peters, along with instructor Lee Dow, made up the winning team. They will represent the state in the National
Hands-on Finals in June at Ford Headquarters in Dearborn, Michigan. AAA Oklahoma and Ford Motor Company sponsor the competition to encourage technically-minded young people to pursue careers in the automotive service industry. At stake during the competition are scholarships, prizes and letters of recommendation to future employers. In 2010, 10,500 automotive technology students competed for a share in a record-high $11.5 million in scholarships available through the state and national competitions. The winners of the competition were: • First Place: Lathan Springer, Donovan Peters and instructor Lee Dow from Moore Norman Technology Center in Norman. • Second Place: William Cotton, Payton McCuistion and instructor Shelly Smith from Meridian Technology Center in Stillwater. • Third Place: Cameron Kaiser, Matthew Hart and instructor Darren Barnhill from Indian Capital Technology Center in Muskogee. • Fourth Place: Ray Busby, Daniel Carroll and instructor Stacy Estes from Red River Technology Center
4 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
Body Shop Manager Elected TX State Fair Chairman Alan Walne, Body Shop Manager at Herb’s Paint & Body Shops in Texas, was elected chairman of the board of directors and chairman of the executive committee of the State Fair of Texas during the annual meeting of the board on April 20 at The Women’s Museum in Fair Park. Walne succeeds Ruben Esquivel, who served as chairman from 2007-2011. Esquivel will continue as a member of both the board and executive committee during Walne’s term. Five new members were elected to the board of directors; Sam Burford, Levi Davis, Robert Estrada, Wendy Lopez and Craig Woodcook will serve on the 55member board of State Fair of Texas, Inc., the private, non-profit corporation responsible for presenting the annual exposition. By accepting the responsibilities as chairman, Walne joins a long line of distinguished civic leaders who have provided direction for the State Fair since it was originally chartered in 1886. A board member since 2004, he has served on the Fair’s executive and finance committees. Walne is well known for his commitment to the community. He served as a member of the board of managers at Park-
land Health & Hospital System until February 2011. He served as the district 10 representative on the Dallas City Council, where he served on the Business & Commerce, Finance & Audit, Legislative Affairs, and Transportation & Telecommunications committees. He has also served the city of Dallas in many other ways outside of the City Council. He has been on the board of directors for the SBC Cotton Bowl, White Rock YMCA, Trinity Commons, Dallas Civil Service, and Dallas Parks & Recreation. Walne has been a member of the Texas Natural Resources Conservation Commission, Small Business Advisory Panel of the Texas Natural Resources Conversation Commission, Richardson Chamber of Commerce, Plano Chamber of Commerce, Lake Highlands VOCT Advisory Committee, and the Doctors Hospital Governing Board. He served as Dallas ASA Body Shop chairman, a former member of the Dallas committee of the Inter-Industry Council on Auto Repair, and is a member of the Salesmanship Club of Dallas. He holds a Bachelor of Business Administration Finance from Texas Tech University.
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Northwest Louisiana Collision Repair Association Hosts Local SkillsUSA Winning Students, Hertz Reps Speak
The Northwest Louisiana Collision Repair Association held their monthly meeting in the Collision Repair Classroom at Louisiana Technical College in Shreveport, LA on May 3. The meeting was brought to order by President Chris Fielder by reading the anti-trust statement, which is required to begin every NWLCRA meeting. Also hosting the meeting was Secretary-Treasurer Bill Burnside. The group discussed the recent SkillsUSA Competition and asked for all the local winners that were attending the meeting to stand, introduce themselves and tell a little about themselves. Joshua Taylor is a Senior at Northwood High School and is a Collision Repair student of Caddo Career & Technology Center. Joshua took First Place in the Collision Repair Technology category. He is currently working at Shouse Collision Repair & Frame Center. Jerry Shouse, owner of Shouse Collision Repair & Frame Center, said Joshua is currently working with estimating. Joshua is going to compete at the National Skills competition. Hunter Lyman is a Senior at Captain Shreve High School, and is a Collision Repair student of Caddo Career & Technology Center. Hunter took First Place in the Auto Refinish Technology category. He has been working with Red River Chevrolet while at school and has been offered a full-time permanent position with them after graduation. Next, was Ryan Hickman, a Senior at Airline High School and a student of Bossier Parish Technical School. Ryan took Third Place in the Collision Repair Technology category. He is currently working at Bellevue Paint & Body in Haughton, LA. Lastly was Marquette Tolbert, a Senior at Woodlawn High School and a student at Caddo Career & Technology Center. Marquette took Second Place in the Collision Repair Technology category. He has been working at Moffitt Mazda Porsche Audi Volkswagen Body Shop. He is going to be attending Louisiana College, with future plans to also attend Louisiana Tech University. George Jackson, Instructor for the Collision Repair Program at Caddo Career & Technology Center, and Mark Monroe, Instructor for the
Collision Repair Program at Bossier Parish Technical School were also at the meeting. Jackson praised the efforts of all the students that participated in this statewide competition. He said the students used their Spring Break to prepare for the Skills Competition. He also stated that the students are now preparing for Nationals. He made a request to any Collision Center for help with any type—training, painting, etc.—that would be helpful to a student preparing for the Nationals, to contact him to arrange times. If anyone wants to donate funds, this also would be greatly appreciated and welcomed. If anyone would like to offer help to the students headed to Nationals, please e-mail Bill Burnside at cssi4@hotmail.com Bill Burnside, Secretary-Treasurer for the NWLCRA, stated that the NWLCRA historically has donated funds for the First Place winners that go to Nationals. A motion was made and seconded to pay $100 for each First Place winners in each category of the competition. Congratulations to Joshua Taylor, First Place winner in the Collision Repair Technology category, and Hunter Lyman, First Place winner in the Auto Refinish Technology category. Many of the NWLCRA members that also helped by judging this event were present at this month’s meeting, and were recognized for their continued service to the Collision Repair Industry. Bill went on to discuss an Industry Day meeting that will be held on June 14, 2011. This Industry Day will center around speakers including Chuck Sulkala, a widely recognized speaker and spokesperson for the Collision Repair Industry, and Mike Sprinkle, Texas Business Development Manager for DuPont. There will be four sessions for the NWLCRA sponsored event. Each session will have four classes that will cover Computers, Measuring for Estimating, Parts and Allied Product Tracking. Daniel Wheeler of Software Works Consulting will discuss the computer changes that are going to occur in the next 12 months. Measuring for Estimating will be discussed by Marvin Garcia of Car-O-Liner.
6 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
3M will discuss their upcoming parts program concerning the repair/replace considerations, and managing Allied materials cost. Dupont will have a special class in the morning on Building Customer Pay and an afternoon class on Blueprinting. The Industry Day is going to be limited to the first 100 people that sign up for the seminars in order to keep class sizes small and interactive. The NWLCRA will also be partnering with the National Auto Body Council (NABC) during the Industry Day in order to collect cell phones for the Cell Phones for Soldiers Program. The NWLCRA will have a drop-off area for the phones during the Industry Day and will also be handing out materials to attendees about having a drop-off location at their own businesses. The program collects used cell phones and turns them into cash, which is used to buy calling cards for soldiers to call home with. Bill also discussed the current See NWLCRA, Page 8
CMC to Install Auto Shredder in South Texas
Commercial Metals Co (CMC) of Irving, Texas, has announced plans to install a 3,000-horsepower Harris shredder with an online/offline nonferrous separation system at a new site in Corpus Christi, Texas. According to a press release issued by CMC, the shredder will be built on a 63-acre greenfield site about 5 miles from CMC’s existing scrap processing facility in Corpus Christi. Construction will begin in May with completion anticipated by January 2012, the company says. Joe Alvarado, CMC president and chief operating officer, says, “Installation of this new shredder ensures CMC will continue to meet the recycling needs of the Corpus Christi area and further demonstrates our commitment to grow our CMC Recycling division.” With the announced installation, CMC will operate eight auto shredders in North America.
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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 7
Continued from Page 6
NWLCRA
legislature that’s meeting in Louisiana and the issues before them. Some of the Bills are 338 and 583. Bill 338 is to prohibit the use of handheld cellular devices while driving. Bill 583 is to prohibit the use of after-market high intensity lights. Bill also talked about degweb.org, the Database Enhancement Gateway, developed to help improve the quality and accuracy of collision repair estimates, through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the supply databases for the various estimating products. This month’s guest speakers were Stephanie deCalongne and Caroline Haraguchi from Hertz Local Edition. They were invited to speak by Don Brown of Precision Autobody. deCalongne began by discussing the well-known car rental company and how they have changed over the years. One of the changes has been how they have branches that focus on
the Collision Industry. She said that their location, 2119 Airline Drive, Bossier City, LA, works with the local Collision Industry to provide vehicle rentals for the owners of the vehicles being repaired. They have been working closely with the Collision Repair Industry since 2003. Before this, Hertz made a well-known name by offering vehicle rentals at airports. What makes the Local Edition different than renting at the Airport, is a lower rental charge because they don’t have to charge the Airport Use Tax which is required for all airport rentals. The average savings is around 10% on normal charges. deCalongne stated that they are able to offer a large variety of vehicles because they are able to share fleets with all locations of Hertz. They are able to truck vehicles all over the region to meet the needs of heir customers. Caroline Haraguchi added that they are the first company to offer a lower age to rent a vehicle; they are able to rent to people 20 years of age. They are able to rent one way, with unlimited mileage, no hidden
fees, and direct billing. They can offer a collision repair facility a direct billing for cases such as a redo. In most cases, they are able to offer direct billing to the insurance company, if they are provided with a claim number. Deposits can be waived in some instances for certain insurance companies. Their deposit, when one is required for direct billing, is only $50. State Farm Insurance and Progressive Insurance companies allow Hertz to rent to 20-year olds, and for 18-year olds to drive the rental. Stephanie closed the meeting by passing out flyers that allows NWLCRA members to get a discount when using Hertz. This will give a 20% off weekly/weekday rates, weekend rates starting at $21.49/day, free pickup and return service, and age 20+ renting. Members can visit their Hertz location and mention they are a member of the Northwest Louisiana Collision Repair Association, and provide a CDP number to receive a member discount. Visit www.nwlcra.org for more information.
LA Insurance Agent Sentenced in Fraud Case A Plaquemine, LA, insurance agent has been sentenced to more than four years in federal prison for mail fraud that cost several of his clients nearly $1.4 million. U.S. District Judge Brian A. Jackson ordered 67-year-old William J. Coury to report to federal prison on May 29. Coury will serve an additional two years under the supervision of federal investigators after he completes his 51-month prison term, according to U.S. Attorney Donald J. Cazayoux Jr. The judge also ordered Coury to pay full restitution of $1,375,121.87 to his Jefferson Parish victims, who are listed in court records only by their initials. The former insurance agent admitted he used investment money for personal purposes unbeknownst to six of his clients, who trusted Coury to place it in annuities or other insurance products. In his guilty plea on January 27 Coury said from at least 1996 through 2006, he solicited funds from clients for investment in annuities and other insurance products but instead kept the funds for his own use.
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OK Attorney General and Insurance Commissioner Announce Joint Focus on Fraud
Oklahoma Attorney General Scott Pruitt and Insurance Commissioner John Doak announced plans to revamp how insurance fraud is investigated and prosecuted in Oklahoma. “Our two offices are statutorily bound together when it comes to investigating fraud,” Doak said. “By working together, we can improve the investigation and prosecution of those who perpetrate fraud and better protect insurance ratepayers.” Pruitt and Doak’s offices have begun analyzing how best to coordinate resources and refine the process by which both offices initiate, prepare and complete claimant fraud investigations for prosecution. The Insurance Department intends to focus on higher-level fraud and other insurance crimes committed by agents and company executives that costs Oklahoma’s ratepayers millions of dollars annually. The Attorney General’s Office will expand prosecutions and investigations of claimant fraud. “I want to make Oklahoma a dangerous place to be an insurance crim-
inal,” Doak said. “If you are an agent or a company executive who is violating the trust of Oklahoma’s insurance consumers and the laws of this state, you can expect to be investigated and prosecuted by the Oklahoma Insurance Department and the Attorney General’s Office.” As the cornerstone in building his anti-fraud crime team, the Attorney General has hired former prosecutor Vincent Antonioli to head the Workers’ Compensation and Insurance Fraud Unit, and plans to hire additional investigators and prosecutors to begin vigorously pursuing and prosecuting claimant fraud in workers’ compensation and insurance at large. Michael Copeland has joined the Oklahoma Insurance Department as a fraud attorney. Copeland will develop and direct investigative procedures that deliver on Doak’s promise to better protect Oklahoma consumers from insurance fraud. Copeland previously served as an assistant attorney general and later as special prosecutor for the Republic of Palau, a former United States Protectorate.
“We are confident our plan will result in increased prosecutions of high-level fraud committed by a few bad actors in the industry and reduce everyday fraudulent claims that are driving up the cost of insurance and doing business in our state,” Pruitt said. The Oklahoma Anti-Fraud Unit also employs experienced Council on Law Enforcement Education and Training (CLEET) certified law enforcement officers that conduct investigations of various white-collar crimes related to insurance fraud. The Anti-Fraud Unit works closely with a number of local, state and federal law enforcement agencies and prosecutors to bring offenders to justice. The Anti-Fraud Unit also conducts regulatory investigations of civil violations within the insurance industry. The Anti-Fraud Unit works closely with the OID Legal Division in these administrative proceedings to discipline those entities engaged in wrongdoing. Oklahoma is a “mandatory reporting” state when it comes to sus-
pected or alleged fraud. This means that insurance companies doing business in the State of Oklahoma are required by law to immediately report suspected insurance fraud to the AntiFraud Unit. Report insurance fraud and related white-collar crimes to the AntiFraud Unit by calling (800) 522-0071 or (405) 521-6614.
Suspicious Fire At Tulsa Auto Body Shop Still Under Investigation
The cause of a fire at North Tulsa auto body repair shop remains under investigation after it was sparked at the business on April 20. Tulsa Fire was dispatched to the shop at 1:30 am on April 20 at 46th Street North and Peoria. Firefighters were able to contain the non-injury fire from spreading and most of the damage was to the inside of the shop. A small window had been broken in the building, leading firefighters to believe the cause of the fire may be suspicious.
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 9
Oklahoma Insurance Commissioner Doak Urges Passage of Uninsured Motorists Protection Bill Uninsured motorists involved in a traffic accident would be unable to receive compensation for pain and suffering damages if they are not at fault under a bill approved in the Oklahoma Senate on May 20. The Senate voted 28 to 20 for SB 272 despite the objections of Democrats who say it’s unfair to punish uninsured accident victims who are not at fault. The bill now goes to the House. The measure has the support of Oklahoma Insurance Commissioner John Doak, who urged the House to approve the bill and Gov. Mary Fallin to sign it. Republican Sen. Cliff Aldridge wrote the bill and says uninsured motorists still would be compensated for medical bills, lost wages and damages to their vehicles if they are not at fault. He says motorists who break the law by not carrying insurance should not be rewarded if they’re in an accident. Democratic Sen. Connie Johnson also questioned why Sen. Aldridge, an insurance agent, would carry a bill that benefits the insurance industry and not recuse himself from
voting on it. “Driving is a privilege, not a right,” Commissioner Doak said in an announcement released by the Oklahoma Insurance Department. “In order to exercise that privilege, we require that drivers be of a minimum age, that they understand our traffic laws and that they have liability insurance. This bill reinforces that requirement,” he said. Nearly one in four Oklahoma motorists does not have liability insurance, Doak said. “That is the third highest rate nationally,” Doak noted, “and Oklahomans pay the third highest auto insurance premiums, as well, one study showed. Steps like SB 272 will encourage motorists who might forego liability coverage to obtain it. That will reduce help reduce premiums because no longer will the insured bear the costs of the damage and injuries caused by uninsured motorists.” Similar legislation was vetoed by former Gov. Brad Henry in 2009. Doak, a former insurance agent, has more than 20 years of experience in the insurance industry.
Continued from Front Page
HABA Legislation
According to Larry Cernosek with the HABA the Texas House left both of these bills pending in committee following the hearing. For more information please visit www.habaonline.org. To view the full text of both of these bills please visit www.autobodynews.com.
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Hail Storm Brings Influx of Repairs for TX Shops Although hail that came through central Texas in late April was much appreciated by firefighters fighting fires throughout the state, local auto body repair shops were unexpectedly inundated with work following the storm. Lines started forming early April 25 at auto repair shops, as thousands of cars in Abilene got hammered with hail on April 23 and 24. Reports ranged from pea to softball sized hail in the part of the state west of Dallas. Abilene fireman J. Sanders reported the damage done to his station’s SUV to Abilene’s KTXS News, including a cracked window, cracked paint, several large dents and it even hit the GPS antenna. “I parked it under a mesquite tree,” Sander told KTXS News, “but the tree is half gone.” Wade Keeling told KTXS News he had already been waiting 4 hours to get broken windows fixed on his truck with no guarantee he would be seen, “It’s very frustrating.” Abilene Auto Glass, one of many repair shops in town, estimated they would see more than 400 cars the week following the storm.
Porsche North America HQ to Leave Sandy Springs, GA, for Nearby Ex-Ford Plant in Atlanta Porsche is expected to move its North American headquarters, and hundreds of jobs the plant provides the northern Georgia suburb it currently calls home, from Sandy Springs to the old Ford plant site near the Hartsfield-Atlanta International Airport in Atlanta. Porsche is expected to build offices where the plant was demolished and a test track similar to its Porsche Silverstone facility in England. Fulton County Commissioner William “Bill” Edwards said Hapeville’s mayor and city council have been working hard to fill the plant site and it makes good economic sense for Porsche, with the site’s proximity to the airport and interstate. “This is just the first step,” Edwards said to the Atlanta Journal-Constitution. “South Fulton has always been misrepresented as a bunch of poor black folks and poor white folks. Other people are finding out that it’s a diamond in the rough.” The move does have its downsides; Porsche will be leaving the Central Perimeter business district that has several MARTA rail stops and is close to neighborhoods favored for housing and schools by employees. The former Ford plant site, which was closed in 2006, currently is not
served by a direct MARTA rail stop, though the city has mentioned arranging a stop from either a future commuter rail line or the airport’s people mover system. Porsche’s move is likely to take several years, as the office building and track would be built from scratch. The company’s current lease in Sandy Springs is set to expire in 2013. Porsche has been a major tenant of Lakeside Commons, a 14-story tower in Sandy Springs built in 1998, where the automaker is currently headquartered. Porsche occupies about 2-1/2 floors of that building and would empty about 10 percent of the building if it moves. Currently, the building is 85 percent occupied. The track would emulate Porche’s three-year-old Silverstone facility in England, which offers coaching for drivers on a track imitating realistic driving conditions. A Porsche-themed restaurant and special events space accompanies the track. Jacoby Development bought the ex-Ford plot in 2008 and has finished removing contaminated buildings and soil from years of industrial use.
10 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 11
Gunder Supporters Release Infinity Insurance’s Voice Recordings Barrett Smith, with Autodamage Experts, has released a voice recording of a call made by a representative of Infinity Insurance to one of Ray Gunder’s customers. Listen for yourself by downloading the WAV file at www.autobodynews.com. The recordings have been widely quoted in the appealed case which was recently resolved in favor of State Farm. Smith comments: “This type of underhanded practice goes on more often than most are aware or would like to believe and needs to be curtailed, and one sure way is for it to be exposed to the masses and for those who conduct themselves in this way to fear exposure. “For those of you who know Ray Gunder and the manner in which Gunder’s Auto Center operates, listening to this recording will likely make your blood boil... it did mine. This “supposed” claim professional is trying their best to interfere with and undermine the relationship between Gunder’s and at least one of its customers. Who knows how many times this takes place? Continues Smith, “One has to ask themselves, what type of person has the lack of conscience and nerve to lie to a customer about a shop in which this claim-person has never dealt with or have first hand information to support what they say? “The simple fact is she doesn’t and it is apparent she is merely doing as told and reading from a prepared word track intended and designed to disparage Gunder’s good name and destroy the confidence the customer had in selecting Gunder’s. A selection based upon their experience in having their vehicles repaired at Gunder’s more than once in years past, and have earned their respect! “This so-called claim professional likely considers herself to be a
honest and ethical person who cares for her family and attends church on Sunday; but on Monday, goes to work and does things that she is told….regardless if right or wrong and does so despite her personal, ethical or moral convictions, just as a mercenary or a paid assassin would go about their business, hiding behind the Corporate Infinity Badge. So one has to ask why a large insurance company would do this? Simple, because they have an agenda to control the collision industry and they have done so without being held accountable and have reaped huge profits. Profits that were once the collision repairers. “The very scary part; they and others who chose to conduct business in this manner will continue to do so to discourage any repairers who choose to step up and say no to underpayments for necessary processes and materials needed to properly serve their clients.” Ray Gunder adds: “Know this and take serious heed: As long as the rewards outweigh the risks, like a child sneaking cookies, insurers will continue to increase their efforts to profit off the backs of others’ hard work and sweat while avoiding the liabilities that come with underpaid repairs. And if you don’t merely submit and allow them free reign over your business, you too will become a victim of this vile and unethical practice of lies and deceit about you and your business. “Just as slapping the child’s hand for taking too many cookies, or punching the bully in the nose when he comes to take your lunch money, it’s only when the risks begin to outweigh the rewards that bad behaviors will change. “Each repair professional out there needs to make a conscientious choice to either become a part of the solution or remain part of the problem.
The choice is yours…use it wisely. “As for Gunder’s; we will continue to do our part to instill accountability and deter insurers from harming us and our customers. There is strength in numbers and together we con conquer these types of practices in a short time frame…regardless, you can be assured I’ll continue to “Pound That Rock.” The person or persons responsible for these slanderous, outrageous lies (Lisa Whitehurst being one of them) will be held personally accountable. I have to wonder if she knows the effect her hurtful lies could have the twentyfive families dependent on work at Gunder’s Auto Center, all of which are honest, hardworking, ethical people. Is it okay to hide behind her “Infinity Corporate Badge” and attack anyone she’s told by management to suppress their voice? Opinions welcome.” Ray Gunder Gunder’s Auto Center (863) 688-7897
See page 16 for Infinity Insurance’s response to these recordings.
Gerber Collision and Glass Acquires Georgia Shop
The Boyd Group announced the opening of a new repair center in McDonough, Georgia, on May 3. The center, previously known as McDonough Collision, was recently acquired by the Boyd Group and now operates under the Gerber Collision & Glass trade name. The new facility is approximately 26,000 square feet in size, with 24,000 square feet of production space. With this addition, the Boyd Group is now able to serve consumers and insurance clients in the county seat of Henry County, 30 miles south of Atlanta. The Boyd Group now owns and operates 12 repair centers in Georgia and a total of 99 in the U.S., including 37 repair centers that operate under the True2Form trade name. “We continue to execute on our strategy of expanding into select markets and growing our network of repair centers across North America,” said Tim O’Day, President and COO of the Boyd Group’s U.S. Operations. “The new McDonough repair center helps us introduce the Gerber Collision & Glass brand to an additional Georgia market and we are very pleased to be able to serve new customers in this location.”
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West Virginia Insurance Commissioner to Retire West Virginia Insurance Commissioner Jane L. Cline will step down from her post on June 30. Acting Gov. Earl Ray Tomblin announced Cline’s retirement on May 18. He did not name a successor at that time. Cline says she is retiring after 30 years in state government. She has served as insurance commissioner for the past decade. Cline was appointed insurance commissioner in 2001 by then-Gov. Bob Wise.
She also served as Division of Motor Vehicles commissioner during the 1990s. During her tenure Cline oversaw the privatization of West Virginia’s workers’compensation program and addressed medical malpractice and other insurance issues.
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Shop Showcase
Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
The Body Shop Garage Opens in Woodward, Oklahoma with Erica Schroeder
Kevin Ham looks at his shop—The Body Shop Garage—in rural Woodward, OK, and sees a lifelong dream coming true. While it took almost four years for the 45-year-old body man to get his own shop running, it’s some-
repair shops in the area, so buzz that Ham was trying to own his own shop soon started to circulate the town. One year ago, Ham bought the building connected to the one he was restoring to make his shop space big-
The front of The Body Shop Garage building in 1946
The front of The Body Shop Garage today
ger. Then after almost four years of refinishing the place, the small business loan he applied for went through and he was able to finally get his place running. “Since it’s been going I’ve hardly stopped,” said Ham, “It doesn’t even seem real.” The business now sits at about 6,100 square-feet, although Ham is also eyeing another adjacent building and may expand there in the near future. Ham, one other full-time repair man and one part-time repair man, have seen 6–8 cars each week since the shop opened in the first week of March. Ham’s son Kurt also helps with the shop work. Ham projects that the business will be able to gross about $500,000 per year, based on two years of estimates and invoices of his own work he saved while working at another shop. Ham wanted to estimate how much work he could produce by himself while finding out if owning his own shop would be fiThe inside of the shop floor area; the Coca-Cola sign on the nancially feasible. left wall was in the building originally and Ham has decided “I’m really an to restore it to preserve some of the buildings history ‘Owner/Operator’ —the During the 3 years it took Ham to business depends on my production refinish the shop he continued to work too,” said Ham. for another shop in the area and built The business has really taken off custom hot rods out of the shop-in- since it opened, and Ham has decided progress. that he won’t be taking any DRP conWoodward is a small town of tracts in his shop. “I’ve really resisted about 10,000 with only 3 competing that [DRPs]; there’s supposed to be no thing that he’s wanted to accomplish since he was 16. “I’ve just always known I wanted to have my own shop,” said Ham. Ham has worked for other body shops in the area for the duration of his career and really began making steps towards having his own business in 2007. He bought a building on the end of Main Street from his cousin’s wife’s grandfather and began the lengthy process of getting the shop ready for his business. Ham rewired the entire place, installed better lighting, sandblasted brick pillars and repainted.
14 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
steering but as far as I’m concerned abilities and his work as well as his that’s what it is,” said Ham. ability to get work into his shop. Ham feels as though DRP programs put the insurance adjuster’s job on the body shop, and that the quality of his work is all he needs to rely on to bring plenty of work into his shop. Ham also feels that the ‘benefits’ of a DRP for a shop—the supposed increase in business from insurance companies driving customers to their DRP shops—isn’t all it’s (l-r) Body man Steven Ferguson, Body man Hunter Wellman, Kurt Ham and owner Kevin Ham all wore Marines T-shirts to cracked up to be. pay tribute to our armed forces “How do they know I wouldn’t get 80% of the business “I’ve already got so much going they’re supposedly driving to my shop on, I can’t do the adjusters’ job for on my own?” asks Ham. them too,” said Ham. See Body Shop Garage, Page 16 Ham says he is confident in his
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Ham grew up in Woodward and met a lot of industry people while working for nearby shops over the years, making finding new customers and vendors for his own shop much easier. Ham relied on English Color and Supply (see Autobody News May 2011) to supply him with all his paint needs, but they went above and beyond what was expected. “They’re people that will really stand behind you,” said Ham. Ham buys his paint—BASF brand—as well as a spray booth and a
used frame machine from English Color. They also supplied him with some items he needed on consignment; a new paint bank, cabinet, scale, a computer and paint shaker. Ham thought they were going to provide these materials used but they came through with all new supplies for the shop. The biggest obstacles Ham ran into while getting his business started mostly had to do with securing a small business loan. He applied for the loan in May and was not approved until November. “I really wanted to get this thing started in the summer because I knew the winter would slow things down,”
said Ham. But with the bank loan taking so long Ham had no choice but to start getting the business running in the winter. Starting in the winter slowed a lot of the supply deliveries Ham needed and made some of the final building renovations difficult. Capital improvements like pouring new concrete and laying a new roof were put on hold because they are temperaturesensitive tasks. Ham also found a lot of the local and state coding enforcement to be a hurdle for opening the business, but ever since it’s been open Ham has had a steady stream of work. “There’s just been this buzz,”
said Ham, “I never thought I could do it—and now I’m getting to do it.” Ham’s hot rod business has not stopped either. Although he’s been trying to focus more on the commercial, body shop end of the business he’s still been getting calls and requests for his hot rod services—the chief reason for his desire to purchase a third connected building and further expand his business. “I can’t turn off the hot rod business,” said Ham, “It’s part of me.”
Alabama state laws have scrap yard owner David Hickman dealing with frustrated customers when he tells them that he can’t take their junk cars without a valid title. “Lots of times customers want to argue with us when we tell them they have to have it,” he said to al.com. “But that’s the law, we can’t take a car without a title.” As of 2010, people selling cars to scrap have had to have the title in order to sell. This has caused some friction as owners of junk cars often
don’t have an official title in their name, either because it’s been lost or because the car was signed over to them by a previous owner, Hickman said. The requirement has all but killed the auto recycling part of the scrap business, according to Hickman. Hickman isn't the only one feeling the pain; the law has affected every link in the recycling food chain. Materials from junk cars feed low-level parts dealers and car crushers, which feed auto-shredding opera-
tions like Hickman’s. Scrap metal generated by the shredders also feeds mills and manufacturers like SSAB in north Mobile County and Huron Valley Steel Corp. in Anniston. The title requirement law took a bite out of all of those industries, said Graham Champion, a lobbyist for the Alabama Recycling Association, a lobbying association. The recyclers
are pushing a bill in the Legislature that would ease the title requirement to make it easier for scrap dealers to buy junk cars. The would hopefully increase business for recyclers and bring more scrap metal into the state. Efforts of the recyclers, however, have pitted them against local law enforcement officials, who say the new
Continued from Page 14
Body Shop Garage
The Body Shop Garage 518 Main St Woodward, OK 73801 (580) 334-4071
Alabama Auto-Scrapping Bill Curtails Auto Scrap Industry
Infinity Insurance Apologizes for Gunder’s Auto Center Customer Recordings
On May 3, Infinity Insurance’s Regional Claims Manager, Tim Waldron, called and spoke to Ray Gunder of Gunder’s Auto Center in Lakeland, FL, and repeatedly apologized for the recent comments made by an Infinity claims person to one of Gunder’s customers who captured it on a recorder. The voice heard is that of Infinity Insurance Claim Person, Lisa Whitehurst saying the following word track to one of Gunder’s Auto Center’s customers: “I spoke with our re-inspector, who went out and re-inspected the vehicle at the body shop,” Whitehurst said in the message. “He said that this body shop has been known to give us issues in the past with other vehicles that they’ve repaired and apparently they are known for overcharging a great deal for the amount of damages and trying to add things that aren’t relevant to, you know, the repairs. They’re also known for holding the vehicle hostage until all the payment is made.”
As a result of the egregious statements made by Infinity’s representative, Ray Gunder immediately contacted his legal counsel, Brent Geohagan, who promptly sent a letter placing the insurer’s claims manager on notice and demanding that Infinity Insurance agree and confirm, in writing within 10 days, that such wrongful conduct on behalf of any Infinity Insurance representative will cease and desist immediately with no re-occurrences. In response, Tim Waldron, Infinity Insurance Company’s Regional Claims Manager, called and spoke to Ray Gunder personally and repeatedly apologized for the recent comments and conduct of the claims person and her manager and advised Ray that this was an isolated incident and further assured him that the matter would be addressed and that no such conduct would take place in the future with Gunder’s nor any other repairers stating: “this is not the way Infinity conducts its business”.
16 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
See AL Auto Scrap, Page 38
Action Counts The Good Old Days with Lee Amaradio Jr.
The danger in focusing on the past is that we sometimes forget to deal with the present in a productive manner. By this I mean that we want everything to be as is was and keep thinking that things soon will return to the way they were pre-recession. I’m not trying to say things won’t return to our past prosperity but we cannot let it control our actions today. I took a look at my shop recently and realized that I was putting off necessary maintenance on almost everything. My mindset was ‘as soon as we get the extra money I will get that done’ or ‘I will buy that extra piece of equipment.’ Without realizing it, I had put everything on hold. I was also unconsciously sending a message to my staff that things were much worse that they actually were. This in turn created a trickle down effect that affected the morale of the entire shop. I didn’t realize any of this
until I heard some rumors that we were in financial trouble. People had begun to draw their own conclusions because we had tightened up so much. Yes, we needed to adjust and tighten things up, but we were far from any financial trouble. Other than complaining about my credit lines getting cut nothing I said ever implied that we were in any financial trouble. But simply because we had begun to watch everything and make everyone accountable people drew their own conclusions. The danger is that perception can become reality, to many people, so to say, “don’t worry, we are fine” didn’t seem to boost my staff’s confidence. I had an employee meeting to try to kill any rumors. That seemed to help but there was still a sense of uneasiness amongst my staff. This was amazing because what concerned them the most was something that I hadn’t even
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
thought about, which was their future employment. As a leader, I was so focused on tightening up that every time anyone ask to spend money on anything I just complained and said ‘no.’ So the result of my attitude created insecurity among those I employed. The attitude I had taken to belt tightening gave them the feeling that they may be my next cut, which was not the case at all. This doesn’t mean that I wouldn’t terminate a deadbeat employee but unconsiously I was making everyone nervous and this was not my intention. I was adding additional stress to my crew and I was neither a good leader nor helping them produce, as they should. I’ve realized now that even though times are different they are really better than any of us want to admit. What I mean is that things could be much, much, worse. Everything comes down to how we look at things. The
message we send our employees with our attitude as owners can really change how they see things. I started doing some much-needed maintenance and purchased some more key pieces of equipment. I haven’t thrown caution to the wind because we need everything we have done or purchased but I let employees know it was happening. The payoff is already evident because I am watching my staff’s attitude become more focused and more relaxed. I am seeing that no matter how often told them ‘everything is fine’ they needed to see action to feel comfortable about their future with me. I was sending the wrong message by not moving ahead because I was looking back all too often. Now, all of my plans are for the future and where we are heading. Because the “good old days” will only be the “good old days” as long as we allow them to be. Look to the “Good New Days” Ahead…
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 17
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Inside Insurance with The Insurance Insider
Allstate, Founder of DRPs, Deserves Some Credit for Improving Repair Industry “The Insider” is an auto insurance company executive who wishes to remain anonymous in order to speak freely. This column offers an unvarnished look at various issues impacting the collision industry from the insurance perspective—Ed. Who benefits the most from direct repair programs? Insurers will tell you the consumer. Repairers will say the insurance company. The consumer has no idea and doesn’t care. They just want their car fixed correctly and quickly. In my humble opinion, the shop receives the biggest benefit. The insurance company does benefit but not more than the shops on the program. Yes, many insurance companies report millions in profit every quarter, but do you really think they make their money by not paying for things such as block, prime, and fill or for OEM parts? If you believe that, you
should do some research before you say it. A wise man once said, “Better to keep your mouth shut and let everyone assume you’re stupid, rather than open your mouth and remove all doubt.” Insurers aren’t raking in doubledigit profits on the backs of the body shops. Insurance companies capitalize on a marketplace that has shops willing to provide discounts for volume. You wouldn’t do anything different if in a similar position. Do insurance companies profit from insureds using the direct repair program? Of course they do. Insurers benefit from the reduction in severity and rental car expense, for example. If insurance companies weren’t making money, DRPs wouldn’t exist. Do the shops make money from participating in a given DRP? You bet. If shops weren’t making money participating in direct repair programs,
they wouldn’t be working with that carrier.
For every shop owner I see struggling to keep their doors open, I can provide a secondary list of those that are very well-heeled. Don’t misinterpret what I’m saying: I don’t begrudge anyone financial success and independence. But I don’t have the patience or desire to listen to a shop owner complain about losing money as he or she drives to the airport in a new Mercedes for their vacation in the Bahamas.
Even though insurance companies make a lot of mistakes, DRPs aren’t one of them. DRPs took an archaic body shop trade and transformed it into the collision repair industry. For decades, the body shop trade didn’t change. In fact, it has been suggested that the early caveman provided the same level of service that customers received from shops preDRP. I was unable to validate that, but it’s difficult to argue a lack of differences between the caveman and the 1970s shop owner. For those who are long in the tooth, it seemed like yesterday that the body shop trade with rife with uneducated technicians running their own businesses. There was a “mom and pop” body shop on every corner. The training you received as a body man was from the old guy coughing up a lung as he sanded a 10-foot-long quarterpanel that was supposed to be re-
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placed, according to the handwritten, illegible estimate. Insert DRP here. That’s when the industry was transformed. In other words, every shop owner in this country should personally thank Allstate for starting what is largely viewed as the industry’s first nationwide DRP. DRPs have done more to change and improve this industry than any other single factor. You may dispute it, but shops without DRPs are like Sonny without Cher or the Patriots without Tom Brady. Okay, I’m being a little overdramatic. But the fact remains that if you had a toolbox and a cave, before DRPs you too could be a shop owner. DRPs caused the body shop trade to grow into a legitimate business and industry. You had to change the way you did business or you couldn’t compete. Insurance companies were looking for professional, well-maintained shops. Most shops, for example, purchased an electronic estimating system because it was required as part of a DRP. Why purchase the equipment and software to upload electronic images of the damaged vehicle? If you
guessed that an insurance company required it, you are right. Hopefully, you are starting to see a pattern. The collision repair industry doesn’t change very quickly, especially when there is an associated cost. Unless an insurance requires something as part of a DRP, most body shops won’t do it. Before anyone drops to their knees to praise Allstate, I should state that the advent of DRPs also spawned a monster called the unethical adjuster. That probably warrants an article itself. I guess you need to take the good with the bad, but to me, the good that DRPs brought significantly outweighs the negative impact caused by the unethical or immoral behavior of some. The point of this article was to make you think about one thing: Who has benefited the most from the direct repair programs that some shops swear were the demise of this great industry? The answer is obvious: Body shops. Collision repairers would still be using a hammer and chisel if it wasn’t for insurers demanding a quality, cost-effective repair.
LA House Repeals Ban On Impounding Uninsured Cars The House repealed a law with a 806 vote May 23; the law prohibits an uninsured vehicle from being impounded when stopped by an officer. House Bill 190 by Rep. Major Thibaut, D-New Roads, now goes to the Senate, where it could run into opposition from Sen. Joe McPherson, D-Woodworth, who originally sponsored the law Thibaut is trying to repeal. McPherson got lawmakers to adopt a bill last year that banned a police officer from ordering the towing of an uninsured vehicle unless the driver or the vehicle presents “an imminent danger to the public.” “It is an uninsured vehicle and state law requires drivers to have insurance,” Thibaut said to nola.com. Rep. Barbara Norton, DShreveport, tried to amend the bill to require the police officer to either call the driver’s insurance company to verify the status of the auto insurance policy and take other measures before ordering the vehicle towed and impounded. Her amendment failed. The House also ordered that bright headlights on vehicles be toned down by approving, 78-14, House Bill 583 by Rep. Tom Willmott, RKenner.
Willmott’s bill is an attempt to prohibit the installation of the bright lamps that can be ordered on the Internet and installed with a kit. The bill would not ban the high-intensity lights on vehicles that are factory installed. Willmott said the non-manufacturer-installed lights do not match the power output of the vehicle and are too bright, according to nola.com. “It becomes an unsafe lighting system,” Willmott said. “Most of these are after-market conversion kits that try to convert halogen lights to high-intensity lights. The lights can temporarily blind oncoming other drivers, cause headaches and result in accidents, he said. Willmott said his bill would prohibit a state inspector from issuing an inspection sticker or brake tag to a vehicle with the lights. It also would allow a police officer to issue a ticket for a violation. The first offense would result in a fine of $50 and each subsequent violation would increase the previous fine by $25. Willmott’s bill will go up in front of the Senate for debate in June.
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 19
Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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ALL OEM Information
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 35 years of experience split between the collision industry and in the mechanical automotive industry.
The Value of Service Repair Information with Dan Espersen
With the ever changing complexity of today’s vehicles that confront you and your team on a daily basis, access to manufacturer’s repair information is and will be one of the most important tools you will utilize on a daily basis. Whether you are an Estimator, Manager, Insurance Adjuster, Technician or part of the Production Team, proper repair procedures from the manufacturer will allow you to identify, negotiate and explain key repair plan thought processes. It will also assist and manage critical business Indicators such as cycle times, hours per day, sublet repairs, technician efficiencies, overall productivity and profits. Many considerations arise when preparing a repair plan for your customers whether they are your Insurance Partners, everyday customers, or Technicians. Issues such as minimal supplements, factory recommendations correct documentation, customer satisfaction and a cost effective repair are only a few issues that one needs to consider. Questions such as these will confront you or your staff daily. ● Should I section this or replace the entire panel? ● How do I handle this Hybrid? ● What SRS parts do I need to replace after the accident? ● Can we reset the Tire Pressure Monitoring System? ● Does my Technician know how to remove the trim panel on this vehicle?
The national average for body and paint labor rates has risen only modestly year-over-year since 2006, according to figures from CCC Information Services.
● Can we repair this suspension here at our shop? ● How can I provide my customers
June 2011
detailed repair documentation if they require it? Documentation will be the most critical link you will have when determining a repair strategy. So when is the best time to access or source this valuable repair information? Pre-Production or During the Production phase of repair? The answer to both of these is ‘yes,’ based on your collision operation and processes. Accessing Manufacturer repair information during the Pre-Production phase or at the time of the repair plan is an effective way of properly identifying critical repair decisions. You noticed I said “repair plan” and not estimate? Often times a certain repair procedure may be available and if you don’t know it, the vehicle can halt in production due to supplements, authorizations, parts orders, or sublet repairs. Whenever a vehicle is stopped or delayed during the production process, cycle times will increase, efficiencies decline and
overall shop profitability is affected. If thought was given to proper repair techniques, locations and practices during the repair plan or prior to production, these critical performance indicators would ultimately benefit. For example: You are developing an estimate on a 2007 vehicle that has structural damage to the front. Do you know if the structural component can be repaired or should it be replaced? If you have to replace it, can it be sectioned and where? Without the correct repair procedure, you may develop your estimate based on prior experience, here say, Industry accepted practices or the ever popular guess. As the vehicle moves into production, parts have been ordered, the estimate has been sent or uploaded and approved and the technician is diligently disassembling it. Upon further examination after disassembly, your technician states that the damaged structural component cannot be repaired with the method on the estimate due to the fact that he or she thinks the component is made of advanced high strength steel. Production stops, a supplement is generated, approval for additional repairs are pending and parts are re-ordered. If the proper repair and identification procedures were accessed from the Manufacturer at the time of the repair plan, this scenario could have been avoided. Now ask yourself, “How much time are you now spending reacting to the estimate that was
prepared incorrectly utilizing the prior scenario” and would you ultimately generate less work for yourself if you performed repair research prior to production or when developing a repair plan? During the production phase, a technician ultimately benefits by being efficient or keeping his hands on the vehicle. Locations of components, testing procedures, disabling operations, material identification and overall proper repair procedures are only a small portion of what today’s collision technicians face day in and day out. By providing them with access to Manufacturer’s information, can they increase their overall productivity and efficiencies? Ask yourself this question the next time that your technician cannot locate a component or remove a certain part without instructions. If they had access to the procedures would they limit or eliminate these time consuming scenarios? In summary, vehicle complexity is changing at a rapid pace and in order to be current with all of the complexities, we need to utilize the latest repair strategies and procedures that are available to us. A proactive approach, a proper repair plan and an awareness and utilization of published procedures from the manufacturer are effective ways to manage our time and your team. This will ultimately provide a safe and accurate repair to our valued customers. Isn’t this what we are all in business for?
The average body labor rate rose from $41.42 in 2006 to $44.67 in 2010, up an average of 2.1 percent per year. The national average hourly rate for paint materials rose slightly faster,
from $22.26 in 2006 to $25.37 in 2010, an average increase of 3.5 percent per year. Overall, according to the U.S. Bureau of Labor Statistics, the Consumer Price Index for auto-
body work rose an average of 3.44 percent per year for that 5-year period. By comparison, the CPI for all products rose an average of 2.2 percent per year.
National Average for Body and Paint Labor Rates Up Only Modestly Since 2006
20 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
Shift Happens: The Story of Three Transmissions and a Limp Kia SUV with Gonzo Weaver
Jo was a new customer referred by an old-time regular. Her little Kia SUV had a transmission problem that seemed to be getting the best of the transmission shop. The story goes that the Kia was constantly in limp mode, and would never shift properly—ever. As always seems to be the case when a simple problem can’t be solved simply, somebody started the diagnostics off in the wrong direction. Little did I know this was a simple problem. But, as I see it, each and every type of diagnostic work that you do requires a certain step by step procedure that you must follow. Missing a step, or completely overlooking a step, usually means you’re going to miss that simple problem all together. This was no exception. From what information I could gather the person who diagnosed it at the transmission shop wasn’t the
same person who installed it. So after the tech put the last bolt in the transmission, he set the car out front, and told the front office, “Got the transmission in that Kia.” The front office considered it done, and the call went out for Jo to pick it up. She didn’t make it around the block before she was back at the front counter in a “not-so” pleasant mood. You can just imagine the situation at the counter, not happy I’m sure. After some deliberation, and very little diagnostics the transmission shop came to the conclusion that it must be a bad transmission. Luckily, the ride that had brought Jo there was still in the parking lot, so she left the Kia for them to re-do the whole job. A week later, it was supposedly done. This time a different tech had installed the second transmission. Un-
fortunately, he made the same mistake as the first tech. When Jo came to pick up her car the shop owner took her for a ride to be sure that the repairs were made to her satisfaction. It was a short drive. This time, the owner said he was going to pay for the transmission, and would even purchase one from the dealership just to be sure it wasn’t their mistake in rebuilding it. But even the dealer transmission failed to shift properly. The tranny shop was at a loss, they decided to make a few calls for some help, and that’s when my phone rang. Now, I’m not one to diagnose anything over the phone. I just don’t think it’s a smart way of taking care of such problems, because you never quite know what you’re getting into. But the tranny shop owner sounded desperate, and now the repair costs were coming out of his pocket.
From his frantic explanations of no codes, no shift, and no idea of the problem, he kind of put me on the spot, so … I suggested a computer. Heck, why not… ya changed the tranny three times for Pete’s sake, obviously that ain’t it. I probably shouldn’t have done that, but I think he wanted to try and save as much money as possible without resorting to taking it to another shop. Well, a new TCM didn’t work either. Now, the car is finally coming my way. Jo was a little unsure whether or not there was anyone out there who could find the problem, but her friend told her that it couldn’t hurt to let me see what I could do for her. I’ll give it a try. When the car showed up at the shop I took it around the block once to verify the condition, and then put it up on the lift. While it was on the lift See Three Transmissions, Page 23
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 21
Shop Strategies for Savings
Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.
Total Loss Fees Are Profits to be Gained, Not Given Back with Walter Danalevich
As an auto body shop owner for over 30 years, I understand total loss vehicles are a part our industry’s day to day business. With the addition of more and more electronic gadgets, gizmos, and the installation of additional air bags it is not unusual to have an insurance company choose to total a vehicle, and retain the auction salvage, rather than roll the dice on the possibility of a multi-thousand dollar supplement and being held responsible for other liability issues. This is usually the standard insurance game plan unless you come across a naive insurance appraiser who does not value his job. Recently our body shop in Santa Barbara, California, was involved in an insurance claim involving a customer’s 2005 limited edition Scion XB which accidentally ran into a shopping center wall while exiting a shopping mall parking structure. The
driver must have experienced one heck of a distraction to cause so much damage to the right front of his vehicle. Upon closer inspection we discovered the right front frame was kinked enough to require replacement of the frame rail. The engine would need to be removed to install the frame rail which resulted in additional labor placing the car in the total loss category. While the appraiser was leaving our repair facility he commented his insurance company is very attracted to low mileage fuel-efficient compact vehicles such as this one. Later that day, I went out to the Scion and noticed there was a tag on the windshield stating the vehicle now belonged to the insurance company. I asked myself how this could be when the vehicle owner has not been notified or given information on his options of retain-
ing the vehicle or accepting full retail value from his insurance company. Even more intriguing, the next day I received a phone call from the Insurance Salvage Auction company requesting to pick up the Scion. I was surprised at what felt like a decision to essentially steal the low mileage Scion instead of getting notification from the owner on what he has decided. Soon after receiving the 24-hour is-the-vehicle-released call from the salvage auction company, I contacted our customer and reported the aggressive efforts by his insurance company who seemed to have overlooked providing us with a completed itemized repair estimate. Neither did they make a reasonable offer of retail value settlement to their insured. The customer responded he would prefer having his car repaired. I advised him to request a copy of their repair estimate. I also
recommended he do his homework in obtaining some comps on the value of his low-mileage vehicle. I advised him not to be “intimidated” or feel rushed by the insurance company who had already sent him an e-mail declaring they will “limit their storage fees to only two days.” A couple days later, the customer received the insurance repair estimate and forwarded the attachment to our shop where we confirmed the vehicle as a total loss. Vehicle valuation #1 was also sent to the insured who asked if I would assist in the settlement process. Upon reviewing the valuation report I noted there were several listed comps, which were not from our area, resulting in a lowering the settlement value offered to the insured. Another major item, to the insurance company’s advantage, was there was no mileage posted on any of the
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vehicles reported. This alone can significantly reduce the value of the insurance company’s settlement offer. I reviewed the posted locations and values with five of the proposed comparable listings and discovered four vehicles had significantly higher mileage and sold for almost $1,000 more than what was reported in their #1 valuation report. This got the attention of our customer and he proceeded with his own follow-up on the posted listings. I recommended he speak to the insurance company, report his findings, and declare several of their valuations not valid. A second valuation was soon received allowing for a $1,500 buy back from his final settlement cost to retain the vehicle. The customer e-mailed the insurance company creating a paper trail of their inaccurate comps and requested valuation #3. About four days later the customer forwarded me a copy of a new valuation which provided an increase of over $500 from the first valuation which the insurance company insinuated he accepts. Here’s something to think about, calculate how much would result if each insurance
company total loss claim was shorted by $500—Gee, what a nice investment fund that would create. The customer was still undecided about accepting the full insurance settlement offer or go with a ‘buy back.” After a few days he came to a decision to let his baby go to the “Auto Auction Heaven” and accept the increased settlement offer. This month’s article savings message is about assisting your customer in their time of crises and not being intimidated by the insurance “SCREW U CUSTOMER CARE HOTLINE.” You have now gained a customer for life while adding to your bottom line for teardown, labor, and storage fees.
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Continued from Page 21
Three Transmissions
I decided to drop it into gear and check it against the scanner. To my surprise, it shifted perfectly. I’m not kidding—absolutely perfect. I dropped it back on the ground, and went for a ride again. I didn’t even make it around the first corner before it got stuck in limp mode just as it was before, this dang thing can’t pull itself out of a pot hole. Back up on the lift, and wouldn’t ya know it, shifts perfectly—AGAIN! What’s the deal here? I did it several times, just so I could be sure of the results I was getting. After a few trips I checked the wiring to the transmission while it was on the ground. Uh-oh, the main ground to the TCM wasn’t there. How in the world was it there when it was in the air? Ah-ha! It’s moving the wire! Yes, it was moving the wire all right, and a few more than just the TCM ground lead. The locator page showed the TCM ground wire was bundled with several other ground leads that were
all attached to the main chassis ground, which wasn’t attached to a thing, but was dangling by the battery box. Turns out the whole problem started when she had her battery changed at a department store repair shop, and they didn’t have the right size to fit the car. They disconnected the chassis ground wire, so the taller battery would fit. When I told Jo what I found, the two of us pieced together the how and why it happened. Her only comment was, “Well, shift happens.” All said and done with, the transmission shop paid for the entire repair, and gave her back what she spent with them. Everyone involved was glad to have the problem solved, and the car back on the road as good as new. I like this gal, she’s become a regular at the shop these days. What a card! Always has some sarcastic comment for me, but at the same time a very understanding nature and takes life in stride. I’d love to have a couple of dozen customers just like her. As she always tells me… “If you can’t live on the bright side of life… start polishing the dull one.”
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 23
Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Industry Trends and Changes in Future Vehicles at WIN Conference
Current industry trends—and a look ahead at the electric, fuel-efficient and Chinese vehicles that could be showing up in collision shops in the coming years—were the focus of one speaker’s presentation at the recent Women’s Industry Network (WIN) conference. Greg Horn, vice president of industry relations for Mitchell International, told about 160 attendees at the WIN event in San Diego, that one positive trend for collision repairers had been the rebound through early this year in the total miles driven by U.S. motorists. “But we’re starting to see the effect of gas prices impact the miles we drive,” Horn cautioned. He said that MasterCard SpendingPulse, which tracks gas purchases at hundreds of U.S. locations, reported in early May that the 4-week average of retail gas demand had dropped for the sixth consecutive time. “So we’re potentially in for a pretty significant impact as we get to early summer in the reduction of accidents and repairable cars,” Horn said. He said insurer data indicated an uptick in claims in the third- and fourth-quarters of last year, boosted in part by some extensive hail and storm damage in several regions of the country. Shops also have benefited from a sizable rise in the value of used vehicles, which allows for higher repair costs before a vehicle reaches the total loss threshold. Horn said the average vehicle appraised in the first quarter of 2011, for example, had an actual cash value of $12,772, up from the same quarter a year earlier even though the average age of the vehicles appraised in 2011 was almost a year older than that in 2010. “So a car is older but worth more in value,” Horn said. “That’s a good thing for us in the collision repair business because that means we have more opportunity to repair the cars. We’ll put more in the repair column than we will the total loss column.” The percentage of vehicles declared a total loss dipped slightly in 2010, and Horn and others expect that trend to continue this year. Higher gas
prices and the vehicle production disruption caused by the earthquake and tsunami in Japan continue to buoy demand and prices for used vehicles, he pointed out. “That 3-year-old Honda Accord is 20 percent more valuable than it was last September, and the 3-year-old (Nissan) Sentra is up 12 percent,” Horn cited as examples. Horn also discussed the impact that increases to federal fuel economy standards are having on automakers. In late 2009, the Corporate Average Fuel Economy (CAFE) requirements were changed to require Greg Horn, each automaker by Mitchell VP, 2016 (rather than Industrial Relations by 2020, as earlier established) to sell a fleet that averages 35.5 miles per gallon. “That is an ambitious goal,” Horn said. “A lot of auto manufacturers for whom it takes four years to get from the drawing board to the showroom floor, are in a state of panic.” Global automakers, Horn said, are looking at the most fuel-efficient cars they sell elsewhere in order to bring those vehicles into the U.S. market. Though its late summer debut has been delayed indefinitely by the situation in Japan, the Scion IQ is one ex-
ScionIQ, a new microcar was to have sold in the US in late summer, has nine airbags
ample of new micro-cars coming to U.S. streets. The tiny vehicle, powered by a 90-horsepower, 1.3-liter 4-cylinder engine, will be sold as a 4-passenger vehicle even though the headrests for those in the backseats butt up against the back glass. Horn said to help the vehicle meet federal safety standards, it has nine airbags.
24 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
“The good news is you’re going to survive the crash. You’ll suffocate afterwards, but you’ll survive the crash,” Horn joked. Similarly, Chevrolet is introducing the Sonic, a less-well-equipped version of the Aveo, Horn said, and Nissan is introducing the $9,000 Micra (on which the radio and air conditioning are options). Chrysler will bring in the Fiat 500, which is four inches shorter than a Mini Cooper, and Mini is showing a concept vehicle that is a foot shorter than its existing vehicles. The problem with many such vehicles for collision repairers, Horn said, is their low values will tend to put them into the total loss category even with only minor damage. The Ford Fiesta is coming back into the U.S. market at about $14,000, Horn cited as one example. One of the vehicle’s distinctive features are its long
Xenon headlights, which stretch much of the length of the fender and, as Horn said, “are about half an inch from the edge of the front bumper cover.” Replacements sell for $480 each.
Ford Fiesta’s replacement headlights cost $480 each
“In a couple years when those cars are valued at about $10,000, rearending someone and having the bags blow and the windshield and both of those headlights go? You’re not going to be fixing a lot of those Ford FiesSee Trends and Changes, Page 27
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On Creative Marketing with Thomas Franklin
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Focusing Marketing Efforts on a Narrow Demographic Yields More Results
Many years ago I went through a training program offered by a company called Expansion Consultants, Inc. One of my instructors offered the hypothesis that “any unwanted situation can be resolved with sufficient communication.” He used the expression “universal solvent” to describe how communication can dissolve problems. I’ve often tested this idea, especially in marketing. At one point I came up with the idea that “any failure to thrive is a combination of not reaching out widely enough, frequently enough or cleverly enough.” Then one day I spoke to a body shop owner who disproved at least one part of my idea. He had reached out as widely as anyone could in his area. He sent out a piece of promotional literature to 10,000 homes in his area. But he said he had not gotten even one job from that mailing.
Today marketing professionals are focusing on a narrow demographic rather than a wide one. By tracking customer purchases, website searches, and publications read, advertisers target very specific types of prospects. A collision repair center following this approach would avoid a vast general mailing to all prior customers, and instead focus on specific types like senior citizens, young drivers, parents with children who drive, women who drive specific makes of vehicles, and more. Another narrow approach used by marketing professionals is a season and time focus. Mothers Day promotion for adult women, Labor Day promotion for working men, and also start-of-school-year promotions for parents. For collision shops, collecting information on customers’ teen-agers can
be valuable. Young drivers cause a high percentage of accidents. For shops getting involved in the new cosmetic car upgrade market, a Valentines Day promotion could be effective. Self-caused minor damage may be overlooked until a time comes to travel. A pre-vacation Memorial Day promotion could bring in those vehicles. The Internet has become so much a part of our lives these days, we may sometimes forget that most of that “free” information we get on-line is paid for by advertisers. If you watch carefully, you’ll notice how the ads on websites change with the time of year. You may also notice how companies that track your on-line searches are able to send you e-mail ads that reflect your personal interests. How might you use this approach to creating more effective promotional reaches out to your customer and prospect base? It all comes back
to your effectiveness at collecting and using customer information. Collision repair shops are generally high velocity workplaces. Estimators are in a hurry to get the keys and get the car in the shop to begin work. The vehicle driver may be in a hurry to drop off the car and get to work or back with the kids. A better time to collect information may be when the customer is picking up the repaired vehicle and pleased with the quality of the repair. If these don’t net information about the customer’s job, family, organizational ties and personal interests, an on-line or phone survey may get what is needed to do targeted promotions. Shop owners are justified in wanting to minimize the number of front office employees and related costs. But a careful analysis of how many additional vehicles a good data collection person could bring in should reveal
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that the benefits could greatly outweigh the costs. The days of waiting for repair customers to drive in are long gone. These days the certainty of sufficient insurance referrals is diminishing. It’s time for shop owners to catch up with the times and begin using professional marketing tools to bring in new business. Take a look at the variety of ads aimed at you. You may sometimes wonder why you are the target of a particular ad. Advertisers are just guessing what will interest you, but obviously they guess right often enough to justify the cost of the ads. It’s time for you to become more creative with your promotion. Who have you not reached out to? Who have you considered not worth reaching out to? Who have you given up on reaching out to? (If no response, try something else). Don’t set limits. Everyone can be reached with some message. If you collect enough information up front, the odds are good that you’ll connect with your prospects a large percentage of the time and that will more than pay for your time and trouble.
Continued from Page 24
Trends and Changes
tas,” Horn told the audience at the WIN conference. Automakers also will continue to try to shed weight from vehicles in an effort to meet tougher fuel economy standards, Horn said. That’s why shops are already seeing increased use of exotic alloys, titanium and aluminum. BMW cut 50 pounds from its 5-series by making the engine cradle out of plastic, Horn said. “This is going to change how we put cars back together,” Horn cautioned. “The B-pillar for the Volkswagen Passat comes from the factory laser-welded in. Most techs would open the doors, look at the number of welds, drill out the welds and try to weld it back in. Volkswagen does not allow for that. In the collision repair environment, their requirement is that you use adhesive bonding to put the two pieces, the inner and outer B-pillar, back together. Because it’s a boron-alloy steel, if you weld it back in and you apply too much heat to it in the MIG welding process, you can actually weaken the structure of that
metal, throw off the pillar airbag sensors, and potentially cause some severe harm to the passengers in a subsequent collision.” Horn closed his presentation with a look at some of the vehicles that Chinese automakers—a number of which have plans to enter the U.S. market— currently produce. Horn said Great Wall Motors is predicting a U.S. launch in 2015, following the model used by Kia some years ago, with sales in several states and entry into the rental fleet. The company will use feedback from that limited launch to make improvements before selling on a broader scale. Horn said the expected low cost of early Chinese vehicles in this country will likely lead to more totals than repaired vehicles. But the success of any of the Chinese automakers here will largely be dependent on their ability to set up the replacement parts infrastructure that is needed, Horn said. Sterling Motors and Daihatsu, he said, failed largely because a lack of parts availability led to repair delays and total losses. “The folks that have the best infrastructure for supporting their brand will be the Chinese brands that survive going forward,” Horn said.
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Continued from Page 1
Allstate Buys Esurance
324,000 policies in force. Alltstate is buying the firms from White Mountains Insurance Group, Ltd., a Bermuda-domiciled financial services holding company with interests in property/ casualty insurance and reinsurance, including OneBeacon. Allstate, which has seen its personal lines business shrink, said the deal lets it expand its service to consumers who prefer to buy direct online rather than through personal agents. It allows it to compete with Progressive and Geico, which have strong web insurance shopping sites. “Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” said Thomas J. Wilson, Allstate’s president, chairman and chief executive officer. He said Allstate agencies do “an outstanding job of serving customers who want a local personal touch and prefer
to purchase a branded product.” But Esurance will expand the company’s ability to serve customers who are “more self-directed but still prefer a branded product.” He said Answer Financial will strengthen Allstate’s offering to individuals who want to be offered a choice between insurance carriers and are brand-neutral. The move has some Allstate agents concerned. “Many Allstate agents are viewing the proposed acquisition suspiciously. The company has been hell-bent on growing its direct channel for years, but only recently has it had any success,” said Jim Fish, executive director of the National Association of Professional Allstate Agents, Inc. “Who knows, the success of the Esurance business model and technology platform could ultimately improve and transform Allstate’s direct channel into a powerhouse. Should this come to pass, Allstate agents would feel more expendable than ever.” According to Fish, Allstate is shedding seasoned agencies in favor of larger agencies with more staff. “[S]o adding this acquisition to the agents’
woes, can only create more angst. Without a doubt, the agents want Allstate to be successful – but not at their expense,” he said. Allstate said Esurance and Answer Financial will retain their brand names. Esurance has some 1,7000 employees and 14 regional offices. Wilson said Allstate would now be the only company serving all of these consumer segments with unique insurance offerings. “This transaction is also attractive for our shareholders. Association with Allstate will improve Esurance’s marketing effectiveness and it can leverage our world-class pricing and claim capabilities. This also offers us two additional sources of growth and an immediate increase in customer relationships,” Wilson said. Premiums for policies sold by both Esurance and Answer Financial were $1.2 billion in 2010. Gross premiums written by Esurance were $839 million for the year. Esurance had 839,000 policies-in-force, including 328,000 policyholders at Answer Financial. The Esurance segment added approximately 65,000 policies-in-force
during 2010, an increase of 8 percent, according to the company. The transaction has been approved by both companies’ boards of directors and is expected to close in fall 2011. The transaction is subject to regulatory and other customary closing conditions, including review by antitrust authorities and state regulators. White Mountains Chairman and CEO Raymond Barrette said the online insurance operation Allstate is acquiring has grown from a start-up to rank among the top online insurers in 10 years. “We have happily invested significant capital in what we believed was a unique business. Allstate agrees and can now take it to a new level,“ Barrette said.
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Women’s Industry Network Conference Held in San Diego
The Women’s Industry Network (WIN) held their 5th Annual Conference May 1–3 at the Westin Gaslamp Hotel in San Diego. WIN was organized to enhance the collision repair industry—and the role of women within it—through education, networking, and sharing of resources.
sistant Editor, Erica Schroeder, and Barbara Davies, General Manager and Co-owner. Speakers discussed a variety of topics designed to enhance business and personal skills as a whole. “We are proud to offer sessions that will spark new ways of thinking, better performance, and greater understanding of industry issues,” said White. In the opening session White also thanked the current board for their work this year including the organizations first, and very successful, booth at the International Autobody Exposition and Congress (NACE) in 2010.
The Westin Hotel Gaslamp
Attendance for this year’s conference was up 30–40 percent, according to Chairwoman Kim White. The event attracted over 150 attendees and featured speeches from motivational and industry experts as well as break out sessions where attendees could receive detailed, personalized tips for their businesses. The event was attended by Autobody News’ As-
Keynote speaker Jennifer Sertl and ‘Miss Anthony’ award winner Amanda Shelley
MIKE CALVERT TOYOTA www.mikecalverttoyota.com
The organization was able to increase their membership and exposure with the booth as well as their Women’s Track Classes that they offered during NACE.
Executive Coach Jennifer Sertl The information sessions started with keynote speaker Jennifer Sertl discussing Business Strategy and Leadership in the 21st Century. Sertl is president and founder of Agility3R, an organizational effectiveness company which focuses upon the optimization of customer value by aligning corporate objectives with the indiJennifer Sertl viduals responsible for delivering results. The co-author of Strategy, Leadership, and the Soul gave her thoughts on business strategy in a male-dominated arena. Sertl gave copies of her book to everyone attending the keynote and awarded audience member, Amanda Shelly of Saint-Gobain Abrasives,
with the ‘Ms. Anthony’ award, represented by a contemporary version of Susan B. Anthony’s trademark alligator bag. Sertl had spoken about Anthony’s influence on her life and the lives of women everywhere during her speech. She supports the Susan B. Anthony House in her hometown of Rochester, NY.
Mitchell’s Greg Horn Greg Horn, from Mitchell International, gave an Industry Trends update following Sertl’s keynote. Horn began by giving some statistics about our driving habits over the last few years. Accidents are at their lowest rate since 1950 and that Americans have been driving less as gas prices continue to soar—two factors that will no doubt effect the collision repair industry. Horn gained nods and chuckles from the predominantly female audience when he compared statistics on male driving habits vs female driving habits. Male drivers are more reckless and cause the vast majority of accidents. Horn also recounted that the disSee WIN Conference, Page 32
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Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Getting OSHA-Compliant on Signage, Electrical and Power Tools with Toby Chess
The other day I was teaching I-CAR’s workers protection program and I had the techs show me their blowers. (I’m referring to the nozzle blowers on air hoses here, not hand-held dryers.) I found 3 illegal ones. I asked the question “How much is the OSHA fine for these blowers?” and the production manager said it was $7000. I was in Arizona, not California, at the time. I inquired if the shop had been fined and his reply was “I read your article and I am in the process of getting OSHA approved blowers.” It made me feel that all this work is worthwhile. Let’s get started on the second installment of the article.
Electrical • Check all extension cords for damage (repaired with electrical tape and broken grounds are a big no no). • All high voltage boxes labeled with a DANGER Sign? • All outlet covers installed? • Are all energized parts of electrical circuits and equipment guarded against accidental contact by approved cabinets or enclosures? • Make sure there is a 3 foot barrier marked around all electrical boxes.
• Do you have a spill containment container (absorbent material in a small garbage can works, but it must be marked and placed in accessible area.) Safety & Signage
• Do you have an OSHA approved first aid kit?
WHOLESALE COLLISION PARTS
Walkways • Make sure that all in ground pulling pots are flush with surface when not in use. Most of the time the covers are Pictured:
2006 SL600 Roadster
bent and they are out on the floor, which creates a tripping hazard.
You will also need the proper signage. Speaking of signage, here are
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• Does the facility have enough fire extinguishers as per city ordinances? • Are all fire extinguishers charged and are properly tagged (you also have someone in the some of the more common ones that are needed in the body shop.
Flammable and Combustible Materials • Is proper storage practiced to minimize the risk of fire including spontaneous combustion? • Are all hazardous drums with flammable materials grounded? • Are all flammable liquids kept in closed containers when not in use? • Are stored oxygen tanks separated by 25 feet from flammable stored gas cylinders?
any inside storage area of flammable materials?
Power Tools • Are portable fans provided with full guards or screens having openings of ½ inch or less? • Do all power tools have grounded cords?
sheets and safety programs that are necessary for OSHA compliance.
Batteries • Are batteries stored on a spill containment tray? The next article will deal with MSDS
shop check and sign the tags once a month)? • Do you have a class D fire extinguisher for a magnesium fire?
Here is a chart of the symbols on the fire extinguisher and what materials it can be used. • Are all fire extinguishers free from obstruction? • Is a fire extinguisher mounted within 10 feet of
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2011 Award for her contributions in 2010, but was also honored as one of the departing board along with Kim White, Jeanne Silver and Geri Kottschade. ruption for Japanese automakers The 2011–2012 Executive Comcaused by the earthquake and tsunami mittee was named as follows; Victoria in March could result in more than Jankowski, Chair, Jennifer Justicejust scattered and short-term parts Haley, Vice-Chair, Margaret Knell, shortages. The most popular Japanese Administrative Vice-Chair, Denise sedans are assembled in U.S. plants Caspersen, Secretary, and Teresa using locally sourced parts, Horn said, Bolton, Treasurer. Other Board Membut parts shortages are more likely for bers for 2011 will be announced shortly. The goals for the 2011–2012 Board will be to grow the network, build a sustainable funding base and align and build an infrastructure to support WIN’s vision. The six students who won scholarships to attend WIN All 2011 scholarship winners lined up at the Opening Session this year were also the higher-end brands, such as Lexus, acknowledged; Ozarks Technical Comand for smaller vehicles such as the munity College’s Hannah Nickles, Honda Fit and Toyota Prius, which are Southeast Community College’s Kendy still built and imported from Japan. Maddox, Center of Applied TechnolBut Japan also is the third-largest proogy North’s Rickia Mines, College of ducer of automotive-grade steel, and Western Idaho’s Jessica Crowley, exports 43 million tons of it a year. Green River Community College’s JesDecreases in output from those sica Gauthier, and Southeast Commufactories (all Japanese companies nity College’s Mollee Lunkwitz. have been asked to reduce their elecStudent Jessica Crowley also won trical use by 25 percent) are raising the Cornerstone Scholarship Award, an steel prices globally, Horn said. That award presented by Teresa Bolton that will likely affect pricing for all sheet consists of a financial contribution metal parts, OEM and non-OEM, and as those prices rise, prices for used parts likely will rise as well. “So you’re going to see this event’s impact stretch well into next year,” Horn said. “We’ll have to wait and see what the final tally is, but we’re going to see inflation overall in average repair severity because of rising parts prices.” He also talked about the viability of alternative-fueled vehicles in the Jessica Rose Crowley (L) receiving the coming years due to a federally manCornerstone Scholarship Recipient Award dated mpg average of 35.5 by 2016 from Teresa Bolton (ASA) and Mary Kunz (R) for all new cars and trucks. This will change the way cars are repaired and from WIN to continue school. the cost of repairs due to new technol“Being awarded the Cornerstone ogy and materials used in new vehiScholarship is a gift. I plan to use this cles to make them meet these gift to give back to others,” said standards, said Horn. Crowley. “I aspire to emulate each and WIN then held their Annual every woman that I came in contact Membership Meeting during lunch on with at the 2011 WIN Conference.” May 2, where they acknowledged the Two Instructor Scholarships to work done by their separate commit- attend WIN were given this year to tees this year and announced their new Michele Charlebois-Didreckson board for 2011-2012. with Ozarks Community College and Current Board Member Mary Rodney Bolton with The Center of Kunz not only won the Cornerstone Applied Technology North. Continued from Page 29
WIN Conference
32 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
Two additional scholarships were given to collision repair center employees to attend WIN, winners were Tona Haywood with Gautier’s Auto Body and Glass, Inc. in King George, VA, and Teresa Super with TGIF Body Shop in Fremont, CA. Day two of the conference began with the Annual Scholarship Walk Presented by Enterprise; over 100 women attending the conference participated in the walk and were able to raise over $5,000 through individual and corporate donations. On the last day, keynote speaker Lauren Fix opened with a discussion entitled ‘Using Your Female Force for Good Car-Ma.’ Fix is an automotive writer (Guide to Loving Your Car, The Car Coach) as well as a former race car driver, mechanic, and driving instructor, known for many media Lauren Fix appearances. Fix focused on ‘what comes around, goes around’ and that women in a male dominated industry need to focus on empowering themselves.
“The glass ceiling is only there if you put it there,” said Fix. Fix said she was impressed with WIN and the conference itself, she had excellent feedback from attendees after her speech and said the group really represented all different aspects of the industry. “I’d never heard of the group [WIN] before being asked to speak at the conference—but I was thoroughly impressed,” said Fix.
Napping is a Good Thing The last keynote speaker of the conference was Dr. Sara Mednick, Dr. Mednick is an Assistant Professor of Psychiatry at UC San Diego, who reviewed research on sleep deprivation and naps. Eliciting chuckles from the audience when she announced she would be discussing ‘napping,’ Mednick explained the link between adequate REM sleep and productivity and creativity. Showing that adequate sleep drastically affects their workforce’s productivity had the audience taking the topic a bit more seriously by the speech’s close. Mednick showed charts from her research showing that REM sleep dur-
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ing a daytime nap can make up for sleep deprivation at night, and encouraged businesses to allow appropriate rest breaks, including napping. With more productivity demanded by businesses, Mednick showed that getting adequate REM sleep is not only Dr. Sara Mednick critical, but is a much more permanent solution then downing a cup of coffee. More information about Dr. Mednick’s research can be found at www.takeanap.info. The conference also consisted of networking breakfasts and activities designed for members to get to know each other better as well as several one-hour break out sessions in 5 topic areas.
Leadership From the Inside Out Keynote speaker Jennifer Sertl spoke in a breakout session using the metaphor of a light bulb’s wattage to describe how to ‘separate your focus.’ She told everyone to decide a ‘wattage’ of focus they have in a given increment of time (weeks or months) and to sep-
arate that wattage into a certain portion for each category including internal relationships, external relationships, organization, implementation, industry education and reflection. Sertl also encouraged attendees to make a list of 18 people they hope to meet in their lifetime. This list is not so much about meeting the person, but about knowing how to handle the situation if you were to meet the person. “You can’t admire a quality in someone without having that quality or the potential for that quality in yourself,” said Sertl.
Social Media Social Media guru Helen Todd gave a basic overview of how a business’ social networking presence can reach more clientele if used correctly. She gave tips on how often to post on social media pages, what to post and other advertising options within social media that can garner attention for your business. Todd favored social media giant Facebook during the presentation, citing that most of the conference attendees used Facebook above other social networking mediums to pro-
mote their businesses. She also favored a social media presence over a traditional website chiefly due to the fact that a website is really a ‘brochure’ about your services and business while a social media page is interactive and allows users to create a conversation about your services and business—a marketing tool that cannot be quantified. Social media questions can be directed to helen@socialitysquared.com You Are Your Business Card Ann Fulton presented a lively discussion about how important it is to dress appropriately for your own professional, age and lifestyle and how to important your own personal coloring is in selecting clothes and accessories. Ann is the owner of Never Pay Retail in Denver, CO.
Lean in the Front Office Emphasis has been placed on focusing on lean processes in body shops however going lean also applies to processes and organization in the front desk area of any business. There is a large amount of paperwork involved in any repair shop, and assuring that the
paperwork is flowing quickly and correctly throughout the job is essential. Eliminating redundancy and clutter and accurately labeling all supplies is a quick way to get started. The quickest, most efficent way paperwork can flow is the path it should take.
Hot Button Employment Issues Jim Webber, an experienced employment lawyer and human resources manager from Washington state, led this session focused on legal requirements for employers. The session covered harassment issues and prevention, workplace ethics, and tips for supervisors. Webber pointed out that investigating harassment and discrimination complaints can be stressful and frightening. The outcome of an investigation provides the basis for critical employment decisions and a prompt, thorough and unbiased review is an essential part of both preventing liability and maintaining a healthy workplace. Webber created the blog Evil Skippy at Work to provide an entertaining view of what makes workplaces great and not-so-great. See this blog at www. evilskippyatwork.com and also at www.jimwebber.net.
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Tornadoes Devastate South, Halting Automakers’ Plants, Inundating Insurers Tornadoes ripped across the southeast portion of the US brought destruction in April and May. States hardest hit were Alabama, Mississippi, Tennessee, Georgia, Virginia and Arkansas, and now Missouri. Alabama was the hardest hit in April with over half of the fatalities. As of end of April 28 the confirmed death toll was at least 250, but that will rise as of the May 22 Joplin monster tornado. “It looked like it was probably a mile wide,” Birmingham, AL, Mayor William Bell said of the funnel cloud to CNN. Tuscaloosa, AL, mayor Wal-
The front of the building after the storm
damage to the shop. “Even though the building has been condemned and is now gone, we are blessed,” said Co-Owner Tana Malerba, “No one was in the building at the time that the tornado hit. We also found a temporary location six miles down the road from where we were located while we rebuild.” The front of Coats’ Raleigh location before the storm hit The tornado took off the entire roof of Coats brick buildter Maddox predicted it would take ing and both side walls of the building months for the town to recover. collapsed. The bays and shop floor President Barack Obama had alwere no longer separated from the outready expressed condolences by phone doors after the storm. to Alabama Gov. Robert Bentley when One thing that did survive the he approved his request for emergency storm was the shop’s Garmat spray federal assistance on April 28. booth. The booth did sustain some In Hueytown, AL, shop owner damage, but all mechanical compoJason Wilson was in his business— nents and the attached mixing room Jimmy’s Auto—when he heard the torwere saved despite the all but denado warning sirens. He gathered his
ing out to the state’s property insurers to provide a coordinated response to the storms as soon as possible. “We want to hit the ground running to deliver an effective response to all Alabamians affected by these tragic storms,” he said to Insurance Journal. “As soon as the companies settle on locations for their disaster response headquarters, we will share that information with the public.” State Farm Spokesperson Jim McCullen said that said by April 28 the insurer already had 3,300 claims in Alabama and the count continues to rise, according to Insurance Journal. He said that the company was somewhat fortunate in that it already had teams working in Arkansas in the wake of a series of tornadoes that went through the South Central portion of the country in early April and a quick response should ensue. The dangerous conditions also halted production at the Toyota and Mercedes-Benz plants in Alabama as of April 28. A Mercedes plant spokeswoman said April 29 that Mercedes had
family, including his two children, and decided to ride out the storm in the shop. About an hour afterward, Wilson stood in the parking lot, stunned, looking at the roof of the store. The roof had been blown off the building as they huddled inside, he said. “We was fixing to go home and heard the siren,” he said to Alabama website al.com. “We took cover. It’s about all you can do. And then it just blew the roof off.” Wilson, his wife, his father and his two children escaped without a scratch. Coats Auto Body and Paint in Raleigh, NC, experienced an intense tornado on April 16 that caused major
Inside after the storm
stroyed building that housed the booth. Between Coats’ employees and local vendors, Coats was able to move their business to neighboring Garner, NC, within eight days. Malerba said the business is just waiting on some outside vendors to complete their work before the shop will be back running at 100%. The Garner location will be a temporary home for the business until they can rebuild their original Raleigh location. Insurers also began the daunting task of tallying the home and auto damages of their clients on April 29. Alabama Insurance Commissioner Jim Riding said that he is reach-
34 JUNE 2011 AUTOBODY NEWS | www.autobodynews.com
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Inside Coats’ Raleigh location before the storm hit
halted operations because suppliers were unable to deliver parts due to the storms, according to the Tuscaloosa News. A spokeswoman for the automaker also told Automotive News the plant would remain down until May 2 following the tornado. Toyota spokesman Mike Goss said the engine plant stopped work April 27 when it lost power. He said the power could be out at least through May 1. Other automotive factories in the region, including Hyundai Motor Manufacturing Alabama in Montgomery, and Honda of Alabama Manufacturing in Lincoln, reported no direct damage from the tornadoes. However, representatives for Honda said the automaker is evaluating the storms impact on their suppliers all across Alabama, which may affect the company’s output later this spring.
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ASA Discusses New Refinish Regulation with EPA Officials
ASA collision leaders met recently with top EPA Office of Compliance officials to discuss the EPA automotive refinishing regulation. ASA members also briefed members of Congress on the new paint regulation. ASA supports the regulation but has been concerned about some enforcement efforts. Some state agencies oversee enforcement of the regulation while others are leaving compliance to the U.S. EPA. This enforcement diversity has created some issues relative to the regulation. One of the concerns is the regulation exemption for “Coatings applied from a hand-held device with a paint cup capacity that is equal to or less than 3.0 fluid ounces.” ASA worked with the U.S. EPA in preparing background for the auto refinishing regulation. ASA hosted the EPA at its trade show, the International Autobody Congress and Exposition (NACE), and in various ASA member shops around the country to help educate the EPA about shop systems, training and proper equipment. ASA will continue to work with EPA and state agencies on compliance issues for the auto refinishing regulation.
AASP Awards Grants to NABC and Auto Education Institute
The Alliance of Automotive Service Providers (AASP) has awarded Industry Improvement Grants to the National Auto Body Council (NABC) and the Automotive Education & Policy Institute (AEPI). The grants were approved at the AASP’s national board of directors meeting in Raleigh, NC in April. The NABC grant will go toward helping create a Spanish-language glossary of collision repair terms for Spanish-speaking shop employees and customers. The money for the AEPI will assist in creating a Web-based collection of legal decisions made in favor of collision repairers. The AASP also voted to participate in the Society of Collision Repair Specialists’ Repair Driven Education (RDE) series at SEMA in Las Vegas in November. “After experiencing last year’s RDE first hand, I was impressed with the caliber of the content provided,” said AASP President Rick Starbard. “It was great to be able to experience educational seminars that are truly repairer driven, and our association is proud to be a part of that experience in 2011.”
ASA Announces its Collision Operations 2011 Committee
ASA has announced its 2011 Collision Division Operations Committee. Dan Stander, Fix Auto Highlands Ranch, Littleton, CO, continues his two-year term as Collision Division director. As such, Stander serves on ASA’s board of directors and is chairman of the ASA Collision Division Operations Committee. Additional members of the operations committee announced by ASA’s board of directors include Ronald Scott Benavidez, Mr. B’s Paint & Body Shop Inc., Albuquerque, NM, who is serving as assistant division director; Stacy Bartnik, CARSTAR Franchise Systems Inc., Overland Park, KS; Jeff Brunz, Master Europa Paint & Collision, Fort Worth, TX; Tommy Clayton, Tommy’s Dent Service, Gibsonville, NC; Virginia Duncan, AAM, Duncan’s Collision Inc., Boardman, OH; Dustin Eckhart, AAM, Hernandez Collision Center, Hinesville, GA; Mike LeVasseur, Keenan Auto Body Inc., Clifton Heights, PA; and Steve Tomaszewski, Alpine Collision Center, Grand Rapids, MI. Members of ASA’s Collision Division Operations Committee represent shops of varying sizes from across the United States. The committee works on behalf of all ASA collision members.
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ASA Announces its 2011 Government Affairs Cmte
ASA has announced its 2011 Government Affairs Committee (GAC). Members of the GAC include Roy Schnepper, AAM, board representative and committee chairman, Butler’s Collision Inc., Roseville, MI; David Lanspeary, AAM, affiliate representative, Dave’s Auto Repair, Youngtown, AZ; April Hernandez Miller, AAM, collision division representative, Hernandez Collision Center, Savannah, GA; Douglass Kirchdorfer, AAM, mechanical division representative, Downing Street Garage, Denver, CO; and Charles Elder, AAM, member at large, Ray Gordon Brake Service, Tallahassee, FL. Members assumed their positions at the close of ASA’s annual business meeting May 9–11 in the Washington, DC, area. ASA’s board of directors established the Government Affairs Committee to assist in developing state and national legislative objectives on an annual basis. The committee works closely with Bob Redding, ASA’s Washington, DC, representative. For more information about ASA’s legislative objectives and activities, see www.TakingTheHill.com.
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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
Repairing Quarter Panel, Bumper, and Molding: No Time, No Money with Rich Evans
Challenges—they seem like they’re always coming up. Since I did the Car Warriors TV show, where we were always fighting the clock with only 72 hours to build a complete car, it seems like everybody wants to hit me with a time challenge. My buddy, Diggity Dave, you might know him from the
the quarter panel still had a spot weld holding it to the inner structure. This way when I come in with the slide hammer the quarter panel is still going to move, because otherwise I’ll have to put this up on the frame rack and pull it. I needed to avoid all that because of the time constraints.
then you’ve got to watch the rest of the metal. If you see it start to suck in, get your nail gun and pull out your low areas. Every time you weld it, check it. This will save you a lot of time and a lot of Bondo™. A lot of guys want to slap Bondo™ over it but try to outsmart the metal. That gives you more seat
because I don’t have a lot of time to metal finish it completely with a file. So I shape it with a skim coat. I usually never skim coat anything any more than twice—once just to get the 36 grit scratches out and any pinholes. Using the 3M Dynamic Mixing System is key for me. Ever
This actually worked out pretty Pimp My Ride TV show, called me up to throw out a challenge. well. I got my window in there, cut Dave backed his 2002 with DickEscalade Strom out the damaged piece of metal. Now into a brick wall and ripped about a I can flatten out the piece that I cut out three inch tear down the right quarter to use as a pattern. I get another piece panel. He also hit the rear bumper and of metal, I use the break and bend it. I tore the right molding. Here’s the real clamp the piece I cut out of the metal problem: Dave’s got to have his SUV on there, scribe it, come back, cut it back the following day, which is exactly out. I actually keep them both together 24 hours, because he’s got a big meetand use the nibbler to follow around it ing for a new movie he’s doing and he as close as I can get it and then follow can’t show up with his ride damaged. up with the grinder. That means it’s Now he’s asking to get this fixed exactly the shape and size I need. in 24 hours (seemingly impossible, If you’re putting your template on right?) so I’m thinking how to create a the outside, you’re going to be a little with Lee Amaradio Jr. process that can make this happen in bit smaller on the inside because where 24 hours. I’ve got to replace the quarthat break is. It’s actually going to ter panel, the rear bumper and the cause you to be a 20 gauge short so molding. To top it off, he says, ‘I’ve make sure you keep the length at the got zero budget’ so this is a ‘bro deal.’ end if you’re coming from the inside. I’ve got to do what I’ve got to do and If you want to use the pattern on the inuse what I have on the table. side then you’ll be an 1/8th inch longer Here are the steps and the because you want this piece to fit. processes that I used to beat the clock. So you can either TIG weld it or You can judge if I was successful. The MIG weld it. You’ve got to take your first thing I decide is ‘no parts,’ we’ve time either way. I’m going to TIG weld got to fix everything. I see that I need to it. I’ll actually put it in with the MIG with Sheila Loftus cut a window—try to keep everything welder just to get it set where I need it as small as possible—especially to cut and then come back with the TIG and replace a piece with another piece welder but before that I need to shape of metal. The metal was actually 20 the metal with the English Wheel and gauge, so I checked the gauge of metal flatten it all out. To get it the right shape to make sure I was replacing it exactly. you’re going to need to fit it a couple I cut a piece out of the quarter times, go back and forth, fit it until panel, then cut the ripped area out of you’ve got your contour right. that so I can flatten the panel. I was As soon as it’s fitting as close as able to get inside it and get the struc- you can get it, you’re ready to tack it in. ture part of it straight using a slide Take your time as you weld it. Weld hammer. When I cut my panel I made very small areas, keep heat control besure that the top and the lower part of cause you don’t want it to warp and
time under your belt to where you can utilize this process on another project. So after getting it welded in, I have a little metal finishing to do. I’ll do a skim coat of mud over it just to true it in, get some of those low spots
since I started using it I don’t have any pinholes. I don’t have to mix Bondo™, I don’t have to worry about the mixture, don’t have to worry about air making the pinholes. If you don’t know about the 3M Dynamic Mixing
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System, check it out. It’s a big time saver and gives you better quality results, less waste, more productivity. It’s everything you need in one gun. Once I get the body work done, I’m come back in with some PCL Primer. I’m going to load the primer up and hit it with some 80 grit, 3M longboard. Then I’m going to come back and get rid of the 80 grit scratches with 150. Then I guide coat it again, come back with 400 wet. Now I’m ready for paint. I’m going to apply the sealer, the base coat and the clear coat. Whatever
this stuff. Every day I find a new use for it. This stuff sands really well, it dries and hardens really true, and it’s flexible—so I’m using it as a plastic repair product. It usually takes 24 hours to cure but if you hit it with a heat lamp you can get it to cure within an hour or two. I know a lot of guys use it for putting quarter panels on, which is a better process, less welding, less work. It’s a better repair at the end of the day because when you’re priming each side of the panel and the inner structure of the quarter panel then it’s taking the place of corrosion
apply it. I’m usually feeling pretty spoiled by 3M, they’re definitely the go-to for me when it comes to new products, anything and everything. 3M just about carries it all. Getting back to the body work, I lay the panel bonding adhesive on the damage area—the bumper—instead of using Bondo™. This is going to adhere and it’s not going to shrink. I sand it with 80 grit on the plastic. I shape it just like the Bondo™. You want to heat these panels first, shape it, get its best shape, take all the low areas out, file it down with some 80.
you get into a time constraint or even if you want to save a few bucks if you’re doing this for a friend or family or somebody that doesn’t have the money to fix it or if you owe a favor to somebody, this is a good way to utilize the money because this job would run about $4,000 maybe $4,500 by the time you got done buying the rear bumper, quarter panel, tail light, molding, and all the materials involved in it. So Diggity Dave came up $4,500 to the good. He owes me a favor now so I’ll hit him up when I’m ready for
system you guys are using in your shop, go with that. I still have the bumper and the side molding to fix. I don’t know how many guys are using the 08115—the panel bonding adhesive—but I love
protection, less welding, less sparks, less interior that has to come apart. It’s actually a stronger bond then a weld. This stuff is amazing. Technology is changing and you’ve got to change with it. The gun makes it a lot easier to
Come back for the cracks and any low areas, and fill it with the panel bonding adhesive. I sand it with 80, feather everything with 150, then 320 around that. Then back with the PCL flexible primer. It’s more a flexible, durable product for anything moving. You want to make sure you use the right products, especially on a project like this where I don’t have any extra room to breathe. I can’t take any chances of something messing up on me. Next is getting into the paint booth, getting my color on, come back in with my Transtar clear with the HT hardener, zap that on there. I didn’t use a two-hour clear which is a bit more yellowish. I apply my three coats as I always do. Now we’re down to about three hours before Diggity comes to pick this vehicle up and that gives me just enough time to put the bumper and the bumper sensors on, apply the molding, and get the tail light back in. That’s another project, another clock, another challenge under my belt. Diggity comes and is just blown away that I ‘pulled another rabbit out of the hat’ as he put it. I tell people ‘never think negative, always go with the positive.’ Think “hey, I can do that,” put yourself to the challenge. Make sure you keep your quality because that’s everything. Make sure you do your fits, stay at your level, ask questions. I’m glad I was able to help a good buddy out, Diggity Dave from Pimp My Ride. Hopefully, this will help some of you guys in similar situations when
my favor and maybe I’ll have to put him through the same test he put me through. A challenge on the table, race against the clock, at the end of the day, his car’s done in 24 hours and I’m on to the next one—that’s what I live for. Live, breathe and eat building cars, fixing them—never too good to work on anything.
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Rich shows Diggity Dave the cutouts he did to repair the quarter panel
My daily focus is waking up and having something else to work on and always trying to get the cooler projects. If you don’t use it you lose it, that’s the key to my game. I’m never too good to do something and I expect you guys to be the same way, always try to better yourself at what you do, everyday try to learn something new. I want to thank 3M for their products, especially what I call the ‘Bondo gun’: the 3M Dynamic Mixing System, and the panel bonding adhesive. Tune into Car Warriors every Wednesday night on Speed channel, go to my Facebook fan page, Rich Evans Designs, and stay up with me on my daily challenges and projects. We’ll talk to you next month!
www.autobodynews.com | JUNE 2011 AUTOBODY NEWS 37
Continued from Page 16
AL Auto Scrap
rules would lead to increased car theft. “They basically want to legalize a fencing operation,” said Deputy Chief James Barber of the Mobile Police Department to al.com. “This legislation is outrageous and only serves to increase crime in our communities for the benefit of the scrap and salvage industries at the expense of Alabama citizens.” Prior to the enforcement of the title law, thieves with tow trucks were scooping up broken down cars off of the street and bringing them directly to the scrap dealers, said Sgt. Michael Womack, who polices the scrap yards in Mobile. When the police department began enforcing the title requirement, car thefts fell by 20 percent, basically overnight, Barber said. The percentage of stolen cars that police were able to recover also improved, he said. Requiring a title for a car before it is scrapped allows for better tracking of vehicles coming into recycler's yards.
Officials from the Mobile County Sheriff’s Office, the Mobile County District Attorney’s Office and the Police Department have been lobbying against the proposed law for the past several weeks. Supporters of the bill say the law enforcement officials aren’t taking into account all the safety measures built into the legislation. The bill would only remove the title requirement for cars more than 12 model years old and worth less than $1,000, said Philip Bryan, chief of staff for Sen. Del Marsh, who is sponsoring the bill in the Senate. The bill would also create an everify system to track what cars are being scrapped at the point of sale. Before shredding or crushing the vehicle, scrap dealers would have to give the Vehicle Identification Number (VIN) to the state Department of Revenue, which would check to see if it had been reported stolen. The seller would also have to sign an affidavit swearing that he was the vehicle’s legal owner. Womack said the safeguards in the bill are inadequate. By the time a car is reported stolen and entered
into the national database, it could already be reduced to an untraceable scrap.
Customers heading to Mississippi Prior to the title rule, Alabama recycled about 200,000 to 300,000 cars every year, now many of those cars are simply going to neighboring states that have less laws relating to scrapping vehicles.
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