Autobody News June 2014 Southwestern Edition by Autobody News

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Louisiana Passes Bill Criminalizing Counterfeit Airbags, Fines to Range to $10,000, Imprisonment Louisiana is the sixth state to approve legislation making it a crime to use counterfeit airbags in auto repairs, as of May 8. The Louisiana Legislature passed Senate Bill 32 (SB32) making it illegal to knowingly manufacture, import, sell, offer for sale, install or reinstall a counterfeit or nonfunctional air bag. Louisiana is the sixth state to pass such a bill joining Alabama, Connecticut, Florida, New York and Ohio. Florida recently passed its bill and it awaits the governor’s signature. Violators who knowingly install or reinstall a counterfeit or nonfunc-

tioning airbag, upon first conviction, could be fined up to $1000, or imprisoned for up to six months. Upon a second conviction, or it the violation results in serious injury or death, violators would face a $2500 fine and imprisonment up to one year. Manufacturing or selling a counterfeit or nonfunctional airbag would result in fines of from $2500 to $10,000 and imprisonment of from up to one year to five years depending upon the dollar value of the airbags sold in violation of the law. The bill will become effective the day after it is signed by the governor.

The Louisiana Collision Industry Association (LaCIA) held a meeting on Thursday, May 22 at the Hilton Garden Inn, located at 400 Mane St, Monroe LA 71291. The group gathered at 6PM for a light dinner, and the meeting began at 6:30. The main goal of the meeting was “to share with everyone the direction the association is taking and what plans we have in store,” Executive Director Alysia Hanks explained. Guest speakers included Attorney General Buddy Caldwell and his assistant, Randy Ishee, who will update attendees on their efforts. “We have received the full attention of our Attorney General’s office, and they have been in touch numerous times with myself and

several of our members regarding certain matters,” Hanks says. “I feel we are very lucky to have the backing of these gentlemen, especially Mr. Ishee who has spent many years working for Ford and has knowledge of what our industry is going through. He isn’t happy with what he has come across so far, and last week, he informed me that, due to the huge amount of information he is gathering, they have brought in another investigator for our cases... I think [our members] will agree that he is very capable and more than willing to handle this.” The meeting began with reintroducing LaCIA’s board and mission, followed by discussions on what

Attorney General Attends LaCIA Meeting on May 22

See Attorney General, Page 19

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Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program Citing Market & Definitions Ruling states aftermarket parts distributor’s amended complaint against General Motors’ “Bump the Competition” price matching program was insufficient to prove antitrust, predatory pricing or conspiracy claims. A federal judge in Louisiana granted the defendants’ motion to dismiss a lawsuit brought by a distributor of non-OEM parts that alleged General Motor’s price matching program was anti-competitive. The suit, Felder’s Collision Parts v. General Motors Company et. al. was originally filed against GM and the Allstar Automotive Group, an OEM dealer. The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-

Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. Court documents describe antitrust, monopoly, and predatory pricing concerns. Felder’s Collision alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business. The suit alleges violations of federal and state antitrust and state consumer protection regulations. As Autobody News reported last June, U.S. District Judge James Brady granted Felder’s motion to file an amended complaint. We incorrectly See Judge Dismisses Suit, Page 10

Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages The series of storms that wreaked havoc across much of the United States in April rank as the first billion-dollar economic loss event of 2014 that can

be attributed to thunderstorms, according to Aon Benfield, the world’s leading reinsurance intermediary’s monthly Global Catastrophe Recap report. At least 40 people were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions. Insured losses due to the multiday outbreak will likely end up in the

hundreds of millions of dollars, Aon Benfield said. Employees of Auto Glass Now in Jackson, MS, escaped serious injury or death just minutes before a tornado leveled the automotive glass company on April 28, according to regional manager John Ketchum. The shop was pretty much a total loss, but the company has already leased a new building and is back in business already, he says. “[Employees at the shop] called me as I was on my way,” Ketchum explains. “They were concerned because the weather was getting bad and tornado alerts were being issued. They were listening to the radio but none of us realized the severity of the storm. When the alarms [warning sirens] went off, I told them to leave. About 20 minutes later the building was gone. All we could salvage was a chair.” The employees are safe and their See Deadly Tornados, Page 18

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COLUMNISTS Attanasio - Five Common Marketing Mistakes Body Shops Make . . . . . . . . . 32 Franklin - What’s In A Name? Possibly The Success Of Your Shop! . . . . . . . . . 26 Luehr - The Process of Winning . . . . . . . . . 4 Service King Collision Adds 2 Locations in Little Rock . . . . . . . . . . . . . . . . . . . . 13 Yoswick - June Retrospective: ASA Position, CAPA, CIC . . . . . . . . . . . . . . . . . . . . . . 28 NATIONAL ABRA Acquires 24 Collision Centers of America Locations. . . . . . . . . . . . . . . . 40 Advance Auto Profit Up 21%, Acquisition Boosts Sales . . . . . . . . . . . . . . . . . . . . 40 AMI Taking Applications for $1,000 High-Octane Award . . . . . . . . . . . . . . . 40 AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution . . . . . . . . . . . . . 45 Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website . 44 Auto Damage Experts Will Perform Inspection and Verification for Assured Performance

Network’s Certified Repair Shops. . . . . 45 Automotive Aftermarket is Expected to Grow 3.4% PY . . . . . . . . . . . . . . . . . . . 44 BASF Recognizes 5 Shops as Shops of the Year . . . . . . . . . . . . . . . . . . . . . . 44 Bloomberg reports Esurance to Take on Advertising Giants . . . . . . . . . . . . . . . . 40 BMW Joint Venture to Triple Carbon Fiber Plant Capacity . . . . . . . . . . . . . . . . . . . 42 CAPA Reaches 15 Year Milestone for Vehicle Test Fits . . . . . . . . . . . . . . . . . . 42 Car-O-Liner Offers Free Value-Added Design Planning. . . . . . . . . . . . . . . . . . 43 Education Foundation Hosts Roadmap Event Aug. 16 . . . . . . . . . . . . . . . . . . . . 8 Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90%. . . . . . . . . . . . . . . . . . . . . . . . . 22 Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150. . 41 Four CARSTAR Shops Were Recognized by Mitchell. . . . . . . . . . . . . . . . . . . . . . 44 Gunder Suit Against State Farm Not Filed As Reported . . . . . . . . . . . . . . . . . . . . . 8 I-CAR Enhances Website, More Improvements Coming. . . . . . . . . . . . . 44 Letter to the Editor: Certified Aftermarket Parts Tracking is Superior . . . . . . . . . . 16 Louisiana Passes Bill Criminalizing Counterfeit Airbags, Fines to Range to $10,000, Imprisonment . . . . . . . . . . . 1 NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens . 46 NSF Certifies 500 Sheet Metal Parts Made by Gordon . . . . . . . . . . . . . . . . . 43 Ohio Senate Bill Extends Registration Requirement to Mechanical Repair Shops, Also Anti-Steering Bill. . . . . . . . 20 OSHA Cracking Down on Isocyanate Exposure . . . . . . . . . . . . . . . . . . . . . . . 42 SCRS Examines Repairer Ability to Control Data . . . . . . . . . . . . . . . . . . . . 38 SCRS Member’s E-Catalog . . . . . . . . . . . 40 SEMA Show Registration Now Open . . . . 19 Sisk - ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates . . 23 Sisk - Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More . . . . . . . . . . . . 30 Sisk - NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry. . . . . . . . . . . . . . . . . 20 SMDI Honors GM for Innovative Use Of Advanced Steel . . . . . . . . . . . . . . . . . . 33 Solera Buys Pittsburgh Glass Works’ Insurance Business . . . . . . . . . . . . . . . 40 South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation . . . . . . . . . . . 38 Stolen Tow Truck Info Sought. . . . . . . . . . . 6 Study Reveals 2/3 of Drivers Are Distracted on the Road. . . . . . . . . . . . . 29 Update on IN Shops’ Accusations of Insurers’ Collusion. . . . . . . . . . . . . . . . 36 US Government Says It Lost $11.2 billion on GM bailout . . . . . . . . . . . . . . . . . . . 42

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www.facebook.com/autobodynews Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

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REGIONAL Attorney General Attends LaCIA Meeting on May 22. . . . . . . . . . . . . . . . . . . . . . . 1 Axalta’s Brilliant Flames Bedazzle Jeff Gordon Pediatric Treatment Room in Austin, TX . 8 Caliber Collision’s 2 New Shops in TX and CA . 9 Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages . . . . . . . . . . . . . . 1 HABA’s 4th Annual Shop Owners and Managers Event. . . . . . . . . . . . . . . . . . . 6 Houston’s Hodges Collision Joins Allstate’s DRP . . . . . . . . . . . . . . . . . . . . 6 Houston’s Westside Collision Named Western Repair Facility of the Year by Farmers Insurance . . . . . . . . . . . . . 16 Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program Citing Market & Definitions. . . . 1 LKQ’s 2014 GetGreen Promotion Winners Announced . . . . . . . . . . . . . . . . . . . . . 30 OK Hail Damage Not as Bad as Previous Storms . . . . . . . . . . . . . . . . . . . . . . . . . 9 Oklahoma Option in Workers’ Compensation Considered Big Improvement . . . . . . . . 14 Repair Jungle Brings Online Repair Service to Austin . . . . . . . . . . . . . . . . . . . . . . . 14 Rio Hondo’s Rita Gonzalez Overcomes Hardships to Go After a Career in Collision Repair . . . . . . . . . . . . . . . . . . 10 Sisk - TIAA and TTDA Host First Annual Tire and Automotive Expo . . . . . . . . . . 12 Standox Customer Fred Haas Toyota World in Spring, TX, Wins Toyota Certified Collision Center of Year Award . . . . . . . 9 State of Oklahoma and City of Dallas Order 321 CNG-Capable Ford F-150 Pickups . . 14 Toyota to Relocate US Headquarters to Plano, TX, could generate $7.2 billion in 10 years for Texas economy . . . . . . 16

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Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

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Absolute Mitsubishi-Hyundai . . . . . 32 Accudraft Paint Booths . . . . . . . . . . 16 BMW Wholesale Parts Dealers . . . . 36 CCC Information Services . . . . . . . . 7 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 21 Chevyland . . . . . . . . . . . . . . . . . . . . 14 Chief Automotive. . . . . . . . . . . . 22, 23 Classic BMW . . . . . . . . . . . . . . . . . . 28 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . 31 Dent Tools Direct USA . . . . . . . . . . 10 Don Carlton Auto Group . . . . . . . . . 13 Equalizer Industries, inc . . . . . . . . . 10 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 39 Fowler Honda . . . . . . . . . . . . . . . . . 34 Freedom Dodge-Chrysler-Jeep-Ram. 11 Gillman Acura . . . . . . . . . . . . . . . . . 38 GM Wholesale Parts Dealers . . . . . 45 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Houston Auto Body Association. . . 43 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . . 6 Huffines Hyundai Plano . . . . . . . . . 30 Hyundai Wholesale Parts Dealers . 43

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mac Haik Ford. . . . . . . . . . . . . . . . . . 9 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mazda Wholesale Parts Dealers . . . 45 Mercedes-Benz . . . . . . . . . . . . . . . . 15 Mike Calvert Toyota. . . . . . . . . . . . . 20 Mitsubishi Wholesale Parts Dealers . 41 MOPAR Wholesale Parts Dealers . . 27 North Freeway Hyundai . . . . . . . . . 22 Rare Parts, Inc. . . . . . . . . . . . . . . . . . 4 Ray Huffines Chevrolet . . . . . . . . . . 33 Reliable Automotive Equipment, Inc . 8 Reliable Chevrolet. . . . . . . . . . . . . . 26 Replica Plastics. . . . . . . . . . . . . . . . 40 SATA Spray Equipment . . . . . . . . . 12 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 18, 19 Scoggin-Dickey Buick . . . . . . . . . . 37 South Pointe Chrysler-Jeep-Dodge. 17 Toyota of Fort Worth . . . . . . . . . . . . 40 Toyota of Laredo . . . . . . . . . . . . . . . 29 Toyota Wholesale Parts Dealers . . . 42 Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 42 Volvo Wholesale Parts Dealers . . . . 44 Young Chevrolet . . . . . . . . . . . . . . . 18

www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 3

Lean Operations

The Process of Winning with David Luehr

In my first article for Autobody News, I’m going to write about winning. That sounds simple, you might think, but there’s a problem: Everything you know about winning is wrong. The moment of triumph, the congratulations, and the final score—those are the basic components of winning? Right? Wrong! If this surprises you, you are not alone. Until I learned the true secret to winning, I thought I knew all about the subject. I was totally wrong. I had a lot to learn. Now I’ve discovered the real sources of success, in both business and sports. Have you ever repaired a picky relative’s vehicle? Let’s say Aunt Patty’s new SUV. If you have, you know that no matter how hard you try to make everything perfect, she’s going to find fault with something. Either the color won’t precisely match, or a taillight will fail to work, and with your very particular Aunt Patty, no job is ever done on time. I’ve never liked working for people I’m close to—relatives, neighbors, or friends. No matter how good the work is, they always seem to want something more, often something that’s indefinable. It’s one of those situations where no one wins. So why is it that the jobs we fuss over the most give us the biggest headaches? Why can’t we win when it counts? Maybe we care too much.

Outcome thoughts vs. Process thoughts I know a little about tennis and a lot about body shops. Sometimes what works in one works in the other. One day my tennis coach told me the chief obstacle to improving my game was the fact that I care too much. “Care too much?” I asked. “Are you serious?” “Yes,” he said, “I am. You care too much about winning. When you start to play, you get so emotional that you can’t look at what you’re doing objectively.” It turned out I was having “outcome thoughts.” As I competed against my opponent on the other side of the net, my mind was on my hoped-for victory. I saw my last shot hitting just out of my opponent’s reach, and imagined him congratulating me at the net with a handshake. My thoughts weren’t fo-

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

cused on what it would take to get there.

Scoreboards Scoreboards aren’t just for fans. They help players too, especially after complicated actions. Once the confusion is over, the scoreboard tells them where things stand. However, if we allow our minds to get too wrapped up in the scoreboard data, we lose sight of the game right in front of us. If we always focus on the results posted on scoreboard, we’re ignoring what we need to do to win. At Nick Saban’s University of Alabama football program, throughout the season the coaching staff and players don’t talk about the National Championship, but they’ve won it three times in the last five years. How? Each Crimson Tide player and coach asks: What do I need to accomplish right now to dominate the competition? They know that you don’t earn the championship on the day of the championship game. You win it through a process of preparation that takes years. When we fail to prepare and execute at the body shop we invite all those hectic Fridays, when everything goes wrong. Why? Because we didn’t properly prepare on Monday and Tuesday. If we had, those Fridays would be easy. In the collision repair business, we hold ourselves accountable, using a system of Key Performance Indicators. These include Profitability, CSI, Cycle Time, Alternative Parts Usage, and many others. A good shop manager understands these metrics. A great manager always executes the tasks required to consistently reach the metrics. This isn’t something you do once in a while. In the collision repair business winning comes from the same basic principles as those found in tennis or football: constant attention to disciplined preparation and following the right process. Scoreboard-based compensation Companies that rely on results-based compensation systems need to examine these carefully. Results-based compensation is popular because it seems fair: workers get paid on the basis of the results they produce. However some companies don’t, won’t, or can’t

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measure results accurately, and sometimes they measure the wrong things, or fail to measure the right ones. This can lead results-based systems that create motivational “silos” that can damage your business globally. For instance, if your company’s “scoreboard” holds people accountable for Alternative Parts Usage, pressure to perform well on that could have a negative impact on Quality, Cycle Time, or CSI. It’s something you must watch out for. What might work better would be a program that rewards consistent quality in employees’ performance as they follow processes designed to ensure that work is done to a high standard. If their work follows a good process, and measures up to the best standards, results will usually take care of themselves.

Three Elements of Winning Big MSO consolidators, like ABRA, Caliber, and Gerber, know that fast,

profitable growth comes from consistent, predictable positive results, one job after another. This is the only way to create secure relationships with insurers and customers. These companies also understand the staffing and training requirements for rapid and sustained growth. What winning principles do these industry giants follow? PROCESS, TRAINING and INSPECT WHAT YOU EXPECT. Their winning ways are based on a written process that produces consistent, predictable results. They train their people to follow the process, then they constantly check to make sure this discipline is followed day after day. Process, alone, isn’t enough. It must be accompanied by periodic testing. Shops that don’t implement PROCESS, TRAINING and INSPECT will struggle; most will fail.

Process If you’ve ever watched the best golfers, See Process of Winning, Page 34

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HABA’s 4th Annual Shop Owners and Managers Event

The Houston Auto Body Association (HABA) will hold their 4th Annual Body Shop Owners and Managers Appreciation Event on Wednesday, May 21st from 7-10PM after Autobody News goes to press this month. The event will be held at the Cadillac Bar and Grill on I-10, located at 1802 Shepherd Drive, Houston TX 77007, and attendees will enjoy a buffet dinner, beer and margaritas as they spend time with their peers in the collision repair industry. HABA President Leo Kozadinos views the annual event “as a fun way for the local industry to get together, network, socialize and relax away from the daily grind of business.” This event benefits the association members and the industry as a whole by offering an informal setting in which these collision repair professionals can “break out of their company shells and bond with colleagues, share ideas and concerns, and just have a good time,” Kozadinos anticipates. As a way of expressing their appreciation for all their hard work, HABA welcomes all collision repair shop owners and managers to attend the event for a chance to get to know one another, and they hope that everyone will meet someone or learn

something new during this exciting networking opportunity. According to Kozadinos, “the more the merrier… we hope that this will allow members, guests and prospective members to socialize and bond in a relaxed, informal social setting over good food and adult beverages in ways that cannot be achieved in the typical monthly business meeting which is always on a tight timeline and agenda.” In addition to shop owners and managers, the event “will also be attended by associate members, including vendors and suppliers, many of which will be providing raffle prizes, so some lucky folks will be taking home some nice stuff!” Kozadinos adds, “Also, the venue has a nice patio so feel free to bring cigars!” HABA 14027 Memorial Drive #378 Houston, TX 77079-6826 www.habaonline.org

Houston’s Hodges Collision Joins Allstate’s DRP

Steve Guinn, owner of all Hodges Collision Centers, has announced that Hodges Collision Center’s Highway 249/1960 West location and its 1488/Magnolia location have both been named members of Allstate’s Good Hands Repair Network. The greater Houston body shops were granted the approval because of their high performance in areas such as staff qualifications/experience, quality of service and level of customer care. “We are pleased that both the 249 and 1488 locations were recognized and accredited by Allstate, an auto insurance industry leader,” said Steve Guinn. “With these two p newest locations, our number of Hodges Collision Center locations has doubled, so we are happy to have our peers affirm that we continue to consistently provide amenities to match our growth.”

Stolen Tow Truck Info Sought

Police say someone stole a tow truck from a Colorado Springs body shop before trashing it and dumping it in eastern El Paso County on or about March 10. The theft was caught on surveillance video. Investigators say that someone entered a locked storage yard at Earl Scheib Auto Body Shop, 3250 E. Platte Avenue, in the early morning hours of March 10, 2014. The thief used the truck to tear down a gate and then drove away. The truck was later found damaged beyond repair. Anyone with information is asked to call Colorado Springs Police at 719-444-7000 or Crime Stoppers at 719-634-STOP (7867). Tips can also be e-mailed to Autotheft@ci.colospgs.co.us

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Gunder Suit Against State Farm Not Filed As Reported

An injunction by Florida shop owner Ray Gunder that aimed to block State Farm Insurance’s rollout of the PartsTrader parts procurement system in Florida was never filed in Polk County, FL, Court as was previously reported by Autobody News and other news outlets. Attorney John Eaves Jr. announced in November at an industry meeting in Florida that an injunction was being filed on behalf of Gunder. The Alliance of Automotive Service Providers of Illinois later issued a release stating that the injunction was filed on Nov. 20. However, it’s now reported that the injunction was never filed as intended. Brent Geohagan, Gunder’s attorney, said that “certain tactical considerations and the potential inclusion of other parties, the lawsuit against State Farm with regard to PartsTrader was and has been put on hold temporarily and has not yet been filed as was otherwise originally intended to be done in November/December of last year.” “There was an avalanche of other parties that wanted to get involved... but we felt, right now, it was better to put it on hold,” Geohagan told a media source.

Education Foundation Hosts Roadmap Event Aug. 16

The Collision Repair Education Foundation invites industry members to participate in the upcoming 2014 Annual North Texas Event— Roadmap: Collision Industry & Careers Expo taking place in Dallas, Texas, on Saturday, Aug. 16. The event focuses on careers available to the next generation of collision industry professionals. Funds raised from this event will benefit the Collision Repair Education Foundation, and activities will include an industry trade show, celebrity appearances, National Auto Body Council Recycled Rides vehicle presentation, silent auction/raffle table, product demonstrations, and industry career awareness opportunities for local high school and college collision students. “The collision industry offers incredible opportunities for skilled individuals who are willing to work hard and are seeking a rewarding career,” said Collision Repair Education Foundation Executive Director Clark Plucinski. “Our industry has an exploding demand for talent, and we must attract the best and brightest in order to keep pace with industry growth.” See www.CollisionEducationFoundation.org/Dallas-Event.

Axalta's Brilliant Flames Bedazzle Jeff Gordon Pediatric Treatment Room in Austin, TX Newly redesigned treatment room at the Children’s Blood and Cancer Center in Austin, TX gets a racey new look

Last week’s ribbon cutting and unveiling of the Jeff Gordon Children’s Foundation’s (JGCF) treatment room at the Children’s Blood and Cancer Center, part of Dell Children’s Medical Center of Central Texas, revealed an Axalta Racing theme. An action shot of the No. 24 pit crew graces a large wall from floor to ceiling. This picture epitomizes teamwork, energy and strength. Not to be outdone, the cabinetry has elements

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that replicate Gordon’s team’s toolboxes. Painted in a fiery red color, the cabinets show off the brilliant, blazing flames that are similar to those on the No. 24 Axalta Chevrolet SS Gordon drives. “We couldn’t be more thrilled with how the room turned out. We support Jeff Gordon on the track when he races each weekend and off the track with the wonderful work his foundation does,” says Lisa Miree-Luke, Axalta Corporate Affairs Leader for North America. “We hope the amazing children who spend time here will enjoy their surroundings.” The funds to sponsor the room were raised by volunteers from the Austin Chapter of the JGCF Promise Circle with a significant contribution made by the Austin office of CBRE Group, Inc. The Promise Circle members work in their communities with leading cancer treatment centers. The mission of the Promise Circle is to serve as advocates for children with cancer and to provide support services to these children and their families.

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Standox Customer Fred Haas Toyota World in Spring, TX, Wins Toyota Certified Collision Center of Year Award For the third year in a row, Standox® is pleased to congratulate Fred Haas Toyota World in Spring, Texas for being named the 2013 Toyota Certified Collision Center Triple Crown winner in the large shop category during the spring ceremony. The awards are presented to the top Toyota Certified Collision Centers in the United States to recognize a shop’s commitment to excellence, repair quality and customer satisfaction. Nationwide, there are more than 1,200 Toyota Dealers and nearly 200 of them

competed in the Toyota Certified Collision Center award program. The criteria used to judge the worthiness of a Collision Center include excellence in standards ranging from

customer satisfaction, business ethics, employee training, shop proficiency, facility, tools and equipment to safety and environmental considerations. “Winning again for the seventh time reinforces our commitment to continue to repair a customer’s car right the first time,” said Jeff Debner, Fred Haas Toyota World Collision Center Manager. Fred Haas Toyota is a proud user of Axalta Coating Systems’ Standoblue® waterborne basecoat system, which is part of the Standox® family. “Year after year, Fred Haas Toyota World Collision Center continues to shine. By combining the Toyota Certified program with innovative equipment and highly trained personnel, Fred Haas continues to be a leader in our industry. We are extremely proud of the entire collision team there, and we are pleased they use Standox paint,” says Matt Robertson, Axalta Coating Systems Refinish Sales Director, North America. For more information about Standox, visit www.standox.us or call 1800-551-9296.

Caliber Collision’s 2 New Shops in TX and CA

Caliber Collision Centers announced that it has opened new locations in the Dallas/Fort Worth area and a new location in the Silicon Valley region. “Today’s opening of a new location in the North Texas region brings our total locations across Texas to 60 while our new location in the Silicon Valley area pushes our total number of California locations to 79” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “As we restore our customers to the rhythm of their lives, we remain committed to adding centers in every Caliber market that provide increased customer choice and industry-leading metrics.” Caliber Collision’s new Arlington South location, with over 20,000 square feet of space, opened for business today at 4720 S. Collins Street, in Arlington, Texas. “Our new Arlington South and Seaside locations brings Caliber Collision’s total number of locations across the western U.S. to 165 as we continue to grow into the collision repair provider of choice in every community we serve,” added Mark Sanders, Caliber Collision Centers’ President and Chief Operating Officer.

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OK Hail Damage Not as Bad as Previous Storms

Oklahoma auto glass shop employees say this series of hail storms hasn’t brought as much damage, or as much business, as the past series of storms. “We haven’t seen anything yet,” says Bill Stoneking, shop foreman for City Glass OKC Inc. in Oklahoma City, OK. “Most of it was in the outlying areas, but there was some weather in Oklahoma City. I don’t know if it’s people having to deal with their insurance companies or what, but we haven’t seen any work from it yet.” A representative for Gene Burk Glass and Mirror in Duncan, OK, also noted that her company hadn’t seen any new work as a result of the storms, but that there may have been other areas in the state that were hit harder by the storms. Some of the work that has come in, however, has been slow. “It’s not exactly in our area but it’s in the rural areas,” says David Porter, owner and operator of Glass Doctor in Lawton, OK. “The work we’re seeing is home, automotive and business … I’d say it’s split 50/50 [between auto and flat glass damage].”

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Continued from Cover

Judge Dismisses Suit

reported that the full complaint had been dismissed. Rather the judge denied the Defendants’ Motion to Dismiss and allowed the suit to proceed. However, in the current order Judge Brady ruled that Felder’s amended complaint failed to adequately plead its case that the defendants violated federal antitrust laws or engaged in predatory pricing. On the antitrust claim, the judge ruled that complaint did not properly define the geographic market. “Felder’s would like this Court to believe that at the heart of this case ‘is a fundamental legal question— whether the All Star Defendants’ practice of selling parts to collision centers and body shops at a price below the cost paid to GM for a particular part constitutes predatory pricing.’ However, what is fundamental to any antitrust analysis is a proper definition of the relevant market and a defendant’s power to detrimentally effect competition therein. Indeed, this inquiry into both market definition and market power is fundamental to prop-

erly evaluating the plausibility of a predatory pricing scheme. The amended complaint only listed portions of Louisiana and Mississippi as the geographic market. Beyond concerns about the geographic market defined in the complaint, the judge also ruled that the amended complaint failed to properly plead a predatory pricing scheme. The ruling states, “After reviewing the Amended Complaint, the Court finds that Felder’s has failed to amend to allege below-cost pricing pursuant to the Fifth Circuit standard as instructed by the Court in its previous ruling. Therefore, even if Felder’s had sufficiently pled the relevant geographic market, it would still have failed to properly plead a predatory pricing scheme.” Representing the Plaintiff is the law firm Sher, Garner, Cahill, Richter, Klein and Herbert LLC of New Orleans.

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Rio Hondo’s Rita Gonzalez Overcomes Hardships to Go After a Career in Collision Repair When Rita Renee Gonzales was faced with the choice of giving up or continuing to fight, the 32-year-old Rio Hondo native opted to fight, according to Eladio Jaimez of the TSTC Staff. Gonzales has overcome health issues, recovered from job layoffs and decided that it is never too late to return to school. Rita Renee Her tenacity has Gonzales paid off, and the Collision Repair Education Foundation recently presented her with a $5,000 scholarship. Gonzales is enrolled in the Automotive Collision Technology (AUB) Program at Texas State Technical College and expects to graduate in Spring 2015. The journey hasn’t been easy for Gonzales. “I don’t know where I’d be without my family,” she said. “They’ve been so loving and supportive throughout this whole situation. They were the only ones

around when I had no one else. Gonzales enrolled in the Automotive Technology (AUT) Program at TSTC and graduated in 2001 with a certificate. She immediately was hired by the Kellog Dealership in San Benito, but was laid off soon after. She then worked as a heavy equipment operator. In 2010, she was laid off again. The layoffs weighed heavy on Gonzales, but the biggest blow came when her health deteriorated quickly. She wasn’t working and had no insurance. That’s where her family stepped in, helping her cope with the setbacks. “My brother and his wife urged me to go back to school,” Gonzales said. “One day I just decided to go back,” she said. I earned all A’s in the fall and this spring.” Gonzales also serves as the vice president of the AUB Club. “I’m optimistic now,” she said. “You learn from your mistakes and you learn from your struggles. You can choose to fold or you can choose to keep going.

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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 11

Southwest Associations

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

TIAA and TTDA Host First Annual Tire and Automotive Expo with Chasidy Rae Sisk

On April 23 through 25, 2014, the Texas Independent Automotive Association (TIAA) and the Texas Tire Dealers Association (TTDA) collaborated to hold their first Annual Tire and Automotive Expo at the Town Square Marriott in Sugar Land, TX. The expo marked the first time these two industries came together for a single event in TX, and Chuck Space, Executive Director of both TIAA and TTDA, believes “it was a great event. Our endeavors proved very successful.” Around 42 exhibitors and sponsors supported the associations’ efforts, and approximately 200 attendees showed up for three days of networking, educational seminars and visiting vendors on the expo floor. Space notes that a lot of emphasis was placed on developing a strong educational program because “it’s important to keep members up-to-date on what’s going on in the industry to help them im-

prove their businesses and be better at what they do.” The event began on Wednesday with a golf tournament which attracted nearly 70 golfers. That evening, TIAA and TTDA held a Welcome Reception which allowed attendees time to socialize and network with their peers. The expo floor opened on Thursday morning as the associations welcomed attendees to the convention, opening with the “Star-Spangled Banner”, sung by Paul Dvorak. The first seminar was a “Texas Legislative Update,” provided by State Representative Rick Miller, followed by “Marketing 101” with Kevin Rohlwings of TIA. Next, Mike Filipek of Bridgestone Firestone USA and Mark Alvarez of ACDelco presented “What’s New In Auto Technology.” At 10:30AM, the women in attendance enjoyed a Ladies’ Special Event at the Turquoise Grill and Pinot’s Palette. The morning’s semi-

12 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

nar concluded with “Labor/Immigration for the Small Business” by Attorney Peter Dawn of Monty & Partners, followed by an “Auto Industry Updated” as presented by Ken Brown, President of TIA. Attendees then took a break for lunch and dessert with exhibitors before gathering for the afternoon’s educational offerings. The educational portion of the conference resumed at 1:30PM with “Is Your Business ‘Fiscally Fit’,” a discussion led by Amy Johnston and Brent Gibson of Cooper Tire and Rubber. At 2:30, seven Rapid Roundtables were held simultaneously on a variety of important industry issues, allowing attendees to choose their topics and rotate between tables. Topics included an Obamacare Updated, National Legislation, Fiscally Fit Business, New Auto Technology for Tires, New Auto Technology for Auto Repair, Labor and Immigration, and Guerrilla Marketing.

At 3:30PM, attendees enjoyed Happy Hour at the Tire and Auto Expo, followed by an evening of fun, food, fellowship and prizes at dinner and during Casino Night. Friday morning began with private demos and scheduled meetings with clients in the expo area, followed by a buffett breakfast. At 8:30AM, TTDA held their annual membership meeting where they presented their 2014 Scholarship Awarda and held officer elections. At the same time, TIAA held their annual member meeting and also elected officers for their association. At 9:30AM, Garrison Wynn, nationally recognized and revered keynote speaker, presented “Survive and Thrive,” a seminar meant to motivate and provide valuable insight for small business owners. Space notes that the agenda for the expo was full of business topics because “small business owners wear a lot of hats, and it’s difficult to watch

everything so we tried to focus on topics to help them monitor important benchmarks so they can improve their businesses.” The feedback from attendees has been positive. David Bipper of Lone Star Radiator Co, Inc. in San Antonio said “the 2014 Texas Tire & Automotive EXPO was a great success. The event was held at very comfortable and visitor friendly facility. The EXPO had a perfect mix of educational and informative speakers along with an array of events to socialize. The seminars were jointly informative to both groups attending the EXPO. I enjoyed the event due to coming back with information to implement into my business and the opportunity to network with fellow business owners and vendors. I look forward to next year’s event and will encourage others in our association to attend and enjoy themselves.” “Attending the TIAA Convention was a wise decision once again for me,” says Mike Koebke of GusMann Automotive. “Being able to take advantage of the training classes and also being able to network with other leaders in our industry is a huge advantage for the continued growth of my business. Other automotive busi-

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nesses that do not make the time to learn and grow by attending events like this will be left behind as our industry continues to change rapidly.” Gary and Darla Pundt from Alamo Heights Garage contributed, “there were many great things about the TIAA convention and Tire & Automotive EXPO this year. Speakers, location, social events and casino night was a blast. If I had to pin it down to the most valuable things I took away from it for my business, I would have to say the keynote speaker talking about our perceptions and expectations when dealing with the younger generation. It really brought out our own flaws in our way of thinking and dealing with customers and employees who grew up with very different life experiences. We can’t try to mold them into understanding and being productive the way “we” would necessarily do it. I’ve already witnessed that truth a dozen times since we have been back between customers, our employees and even our own families. The second thing was Kudos to the vendors who came out to support TIAA. We were in need of some new equipment and David Burch with Carquest was there with just what we

needed in addition to offering a trade show special. They allowed us to demo it in our shop when we got back and made a pretty sizable sale. I think the marrying of TIAA with the Texas Tire Dealers Association for the event worked great. We met new people who deal with a lot of the same issues that we do and are looking forward to it next year.” With 2014 being the first Tire and Automotive Expo in TX, Space feels it was very successful with a great group of attendees, including many of the most successful operators in TX. Louie Sirianni, President of TIAA, praised the expo as being “very professional and well organized. The speakers shared great business information and were entertaining. It was well worth the time, and I will be there next year. My wife had a great time at the ladies’ event.” Of course, the goal is always to do better and increase attendance next year. Space says “we’re only going to see it get bigger and better, and we hope to see significant growth next year!”

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Service King Collision Adds 2 Locations in Little Rock

Service King Collision Repair Centers (Service King), a multi-state operator of high-quality collision repair facilities and one of the fastest growing collision repair companies nationwide, announced it has acquired two new locations in Little Rock, Arkansas, effective immediately. “This is a terrific opportunity for both Service King as well as our current and future customers in Little Rock, “ said Mike Abbott, Service King Market Vice President. “This two-shop addition combined with our two current locations really gives us a great footprint across all of Little Rock to serve the community.” These Little Rock locations will allow Service King to provide exceptional collision repair services to an additional 200 customers a month, doubling the current workload capacity. Service King now has more than 170 collision repair facilities across the country.

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www.doncarltonhonda.com www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 13

Oklahoma Option in Workers’ Compensation Considered Big Improvement

Prior to 2013, the Oklahoma workers’ compensation system has been troubled for years. ● Ranks 5th highest in workers’ compensation claims cost (2011 NCCI Report). ● Ranks 6th highest in workers’ compensation premiums in the United States (2012 Oregon Workers’ Compensation Premium Rate Ranking Summary). ● Ranks 47th worst in 2012 workers’ compensation costs (American Legislative Exchange). ● Received a “D” for the effectiveness of its workers’ compensation system in 2012 (Work Loss Data Institute). As a result of the less-than-stellar workers’ comp system grades, state officials recognized that improvements are needed to better care for injured workers and employers. A new Oklahoma workers’ compensation system, as well as an alternative to Oklahoma workers’ comp, has been in the works since April 2013. SB 1062 passed legislative hurdles and was approved and then signed into law on May 6, 2013, with an effective implementation date of February 1, 2014. The Oklahoma Option is a coor-

dinated approach to improving the relationship between the employee and employer in the event of workplace injuries. It focuses on immediate and outcome-based medical care that facilitates maximum recovery and less overhead. This focus reduces the largest part of the medical only and lost-time claim costs currently within the workers’ compensation system. This system is attractive to both employers and employees and, hopefully, will eliminate the negative press that Oklahoma received in recent previous years. SB 1062 has been incorporated into Title 85A of the Oklahoma statutes as the Administrative Workers’ Compensation Act and the Oklahoma Employee Injury Benefit Act. The law was not without challenges to its constitutionality, but courts later determined that it did not violate the constitutional ban on multiple subjects in a single bill. SB1062 allows for employer choice between using the reformed workers’ compensation system or opting for an alternative system for all on-the-job injuries. By choosing the “Oklahoma Option,” the employer is not abandoning any responsibilities for the injured employees. The Option

State of Oklahoma and City of Dallas Order 321 CNG-Capable Ford F-150 Pickups

The state of Oklahoma, its agencies and the city of Dallas have ordered a total of 321 Ford F-150 pickups that can run on compressed natural gas. “For fleet customers in Oklahoma, Texas and other states, a CNG F-150 really makes sense” Since 2010, Ford CNG-prepped truck sales have increased more than 250 percent, said Jon Coleman, Ford fleet sales manager. Cumulative sales are expected to exceed 50,000 trucks by the end of the year, and Ford expects demand for CNG-prepped vehicles to continue growing as more fleet customers recognize the economic and environmental benefits of this clean-burning fuel. CNG-powered trucks lower costs and offer emissions benefits, and the alternative fuel is domestically produced, Coleman explained. Operating costs can be as low as one third that of conventional vehicles. Typically, the fuel savings cover the cost of conversion within three years. “For fleet customers in Oklahoma, Texas and other states, a CNG F-150 really makes sense,” Coleman said. “The fuel is more affordable and widely available, and it reduces greenhouse gases and pollutants that

cause smog.” The 2014 F-150 is available with a gaseous-fuel prep option for the 3.7liter V6 that can run on CNG or liquefied petroleum gas. CNG/LPG engine prep from the factory costs $315. The customer then chooses a Ford Qualified Vehicle Modifier to supply fuel tanks, fuel lines and unique fuel injectors. Upfits run approximately $6,000 to $9,500, depending on tank capacity. For fleet managers, CNG conversions can provide stability against fluctuating fuel prices, lower vehicle operating costs and reduce pollutants. CNG sells for a national average $2.11 per gallon of gasoline equivalent, and is as low as $1 in parts of the country. By comparison, the national average for unleaded regular gas is $3.67 per gallon. Customers can also accelerate the payback period by taking advantage of a growing number of incentives issued by states such as Oklahoma.

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14 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

uses minimum workers’ compensation benefit levels, employee accountability and a free market approach to medical management— all key cost drivers in the workers’ compensation system. Additionally, the Oklahoma Option benefit plan document may broaden some benefits from the workers’ compensation minimum benefit standards. The employer plan document forms the basis of the employer/employee partnership and reinforces their commitment to achieve better medical outcomes based on physician judgment and more immediate medical care. Both the employee and employer are working together in this process to ensure excellent results. An additional area where the law does duplicate workers’ compensation is “exclusive remedy.” Only employees in Oklahoma can participate in an Oklahoma Option injury benefit plan. If an employer has out-of-state operations, it will have to secure coverage for those out-of-state employees.

Repair Jungle Brings Online Repair Service to Austin Repair Jungle has launched in Austin to help connect car owners with the best local auto repair shops. Repair Jungle is a free online service that lets car owners receive competing quotes on their auto repairs from Austin mechanics and auto body shops. To receive quotes from Austin auto repair shops, car owners visit http://www.repairjungle.com and enter their location and what they need repaired. Repair Jungle’s network of mechanics and auto body shops then submit offers for the repair through Repair Jungle’s website. Car owners select the best offer based on price, location and reviews. There is no cost to the consumer for using Repair Jungle, and submitting a request takes a few minutes. “Consumers value their time and are looking for ways to minimize time and energy spent on daily tasks. Car repair can be time consuming and a source of anxiety for many drivers. Repair Jungle’s service brings efficiency and transparency to auto repair in Austin,” said Repair Jungle founder Zlatan Beca.

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Houston’s Westside Collision Named Western Repair Facility of the Year by Farmers Insurance

Westside Collision Inc. of Houston, Texas, was recently awarded Repair Facility of the Year for the Western Division by Farmers Insurance Circle of Dependability. This is Westside Collision Inc.’s third such award by Farmers Insurance in five years – the shop also won the award in 2009 and Left to right: Owner Mike Matejek, Farmers Area 2010. Each year, Farmers Insurance Manager John Summerford, Shop Estimator identifies shops that have achieved Chris Gates, Shop Supervisor Drew Johnston, exceptional cycle time and quality Farmers COD Supervisor Mike McClusky, Shop workmanship while enhancing a Estimator Melvin Baum, Owner Ronnie Johnston positive image through service to pervisor Mike Mcklusky. “Westside their customers, community and in- Collision Inc. is unique in that they dustry. encourage and invite other shops to “Westside Collision Inc. visit and learn from their facility so demonstrated all of the criteria and that the industry as a whole can be much more,” said Farmers COD Su- successful.”

Letter to the Editor: Certified Aftermarket Parts Tracking is Superior

As I read your story entitled “East Coast Resolution Forum and Leadership Meeting at Northeast 2014” written by Chasidy Rae Sisk and published in the April 2014 Mid-month newsletter, the following caught my eye: ‘Another conversation ensued about the fact that recalls on aftermarket parts aren’t as closely monitored as OEM recalls, creating a safety issue when shops are unable to locate vehicles that have been fitted with recalled aftermarket parts. Ferraiolo circled back to the importance of educating consumers so they can fight their own battles, mentioning the current ABAC campaign to educate consumers.’ While I am sure Ms. Sisk captured the conversation correctly, I would like to comment on the issue raised during the conversation, an issue which is of particular interest in view of the recent GM ignition switch problem. I wanted to call your attention to an article which came to my attention recently. I’m sending it as an FYI, background, if you wish, since the issue of an aftermarket part recall has come up in Autobody News’s coverage of the East Coast Resolution Forum. The March 26, 2014 Reuters by Ben Klaymen, Marilyn Thompson and Julia Edwards article (link below) clearly outlines the impossibility of, in this case, GM to track a part. The OEMs have no mechanism to identify the channel of distribution of their parts sold into the aftermar-

ket. In fact, it appears as if they are not even sure which new vehicles were built with the faulty part. h t t p : / / w w w. re u t e r s . c o m / a r t i cle/2014/03/26/us-gm-recall-aftermarket-idUSBREA2P21620140326 While the article refers to the current recall involving a GM mechanical part and not a cosmetic external body part, the fact is that, unlike GM or other OEMs, the collision repair aftermarket has a mechanism for addressing recalls. Every certified aftermarket part, whether certified by CAPA or NSF, is clearly designated so that it can be tracked by the manufacturer to the distributor. NSF certified distributors can track the parts to the exact collision repair shop. I believe that some distributors can also track to the vehicle, if the shop has provided the R.O. or claim number, but I don’t know how common that ability is. In any event, the distributor can definitely track the part to the shop, if not to the exact job. Ironically, while shops often erroneously allege that aftermarket parts cannot be recalled, as is reported to have happened at the Forum, the fact is the breakdown in the certified aftermarket part recall process, is between the shop and the vehicle owner. As you can see, based on the information in the Reuters article, the recall process for certified aftermarket parts is far superior to that of the OEMs. Karen Fierst kfierst@kerenorconsultants.com

16 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

Toyota to Relocate US Headquarters to Plano, TX, could generate $7.2 billion in 10 years for Texas economy Toyota Motor Corp.’s relocation of its U.S. headquarters to Plano, Texas, may bring $7.2 billion of economic activity to the area over 10 years, according to an analysis for the city. The figure includes $4.2 billion from payroll, along with direct and indirect spending, and sales and property tax revenue, according to the analysis by Grant Thornton LLP, a Chicago-based audit, tax and advisory company. The report was released May 12, when the city, a Dallas suburb, approved incentives for the company. The world’s largest carmaker said last month that it would consolidate U.S. sales, engineering and finance operations to Texas, moving jobs from California, New York and Kentucky. By 2018, the company could have 3,650 full-time workers in Plano at an average salary of $104,000, according to the report. Plano approved $6.75 million of grants for the company, along with discounts on property taxes. The state is offering $40 million of incentives. Carly Schaffner, a Toyota spokeswoman, said in an e-mail that the company appreciates support from

Plano and its residents. The company is “committed to being a model corporate citizen,” Schaffner said. Toyota North America CEO Jim Lentz said “When I was made CEO of North America, Akio made it quite clear that he wants North America to be self-reliant. He wanted me to reflect on whether we are ready to be self-reliant and whether we are structured in such a way to take that responsibility. It became clear to me that, although the four-affiliate structure worked in the past, it was going to get into our way in the future. I wanted to get sales, manufacturing and corporate operations in one location to be more efficient, and to put more resources against engineering and design. Nissan North America lost roughly 60 percent of its 1,300 Los Angeles headquarters staffers when it relocated to Nashville. Toyota concedes that some personnel loss is unavoidable. Corporate relocation consultants say Nissan’s loss rate was not unusual. A survey reported that the average relocation saw 54 percent of employees decline to move, and that number has decreased slightly in recent years.

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Deadly Tornados

homes were not damaged, Ketchum added, but one manager lost both family vehicles. “Basically, I got there and saw all the damage. I gathered everybody together and assured them they still have a job with us and they aren’t going anywhere. I was lucky to find the building. I called the owner [Tony Hakimian] and told him the extent of the damage. He said to tell everybody we were taking care of their pay for the week. We did not want them worrying. I took the employees out to dinner and Tony bought these guys new tools,” he explains. Ketchum and the owner were able to find a new building and sign a new lease quickly. “We are so fortunate that we found these people a new home for the business. In about an hour we had a new lease signed,” he says. “The next day the employees were back to work. We’re waiting for the phones to be hooked up and we are almost ready to do mobile repair and replacements. We have vehicles being delivered today,”

with 5 in Iowa, 4 in Kansas, 3 in Nebraska and one each in Louisiana, Missouri and Oklahoma. People in the path of the system were on edge as the National Weather Service posted tornado watches and warnings around Mississippi, Tennessee, Alabama and Georgia. Forecasters said the system was the latest onslaught of severe weather that triggered deadly tornadoes in Arkansas, Oklahoma and Iowa on Sunday, killing at least 40 people. Arkansas was the hardestMichael Harrell, left, of J&J Towing holds up a tow cable hit state on the first day of the before attaching it to a flooded car that was swept off tornado outbreak, and an EF4 Fairfield Avenue by torrential rains and deposited in a ditch as fellow employee Charles Thomas assists from tornado roared through an inflatable boat in Pensacola, FL, on April 30, 2014. Mayflower, Vilonia and other (Photo: G.M. Andrews) nearby towns. At least three tornados smashed The storm was so huge it was vishomes and businesses, flipped trucks ible from space, photographed by over on highways and injured a still unweather satellites that showed tumulknown number of people in Missistuous clouds arcing across much of the sippi and Alabama as the massive South. storm system passed over several states The Florida Panhandle was hit in the South, also threatening to unwith up to two feet of rain in a 24 hour leash severe thunderstorms, damaging period causing widespread flooding, hail and flash floods. washing away roads, and requiring helFEMA reported that 15 of the 30 icopter and boat rescues. Florida Gov. tornadoes on April 27 struck Arkansas, Rick Scott said that officials received Ketchum says. The tornado that leveled the facility was part of a larger storm system that caused widespread destruction in the state.

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around 300 calls for rescue from stranded residents. A 10-mile stretch of I-10 was closed due to flooding, leaving people stranded for hours. Gov. Rick Scott declared a state of emergency for the panhandle due to the impacts. Aon Benfield also attributed economic losses of $950 million to a large hailstorm that hit the Denton, Texas metro area in April, an event that generated insured losses of about $650 million. That storm also caused widespread damage in parts of the Plains, Midwest and Mississippi Valley. According to remarks made in February by Insurance Information Institute president Robert Hartwig, 80% of U.S. natural disaster related insurance claims’ payouts in 2013 was attributable to tornadoes and severe thunderstorms, accounting for $10.27 billion. Oklahoma incurred the most damages due to tornadoes last year, Hartwig said, with nearly $2 billion in payouts, many of which were from a series of tornadoes in May 2013.

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Attorney General

they’ve accomplished so far and what’s on their agenda going forward. Hanks was also trying to get a trainer from Audatex to present during the meeting before ending with time for the Attorney General to talk and answer questions. In closing, LaCIA asked some individuals update everyone on lawsuits and other things in that regard, but Hanks stresses, “the association is trying to keep away from promoting the lawsuits in anyway. We have felt a lot of pressure to make this association a lot of different things for a lot of different people. It’s my and the Board’s

decision to stay away from taking an official stance on the lawsuits, but we understand they have shops who may want to join or obtain updates, so we are trying to bring a lot of information to our meetings to make a large group of individuals happy. We want to show them what our association can provide them with and that we stand behind our mission to be an association of education above all else. It is our goal to provide useful informative meetings based on more than the lawsuits going on around the country; if we only focused on that, I don’t think our association would survive very long.” LaCIA’s next meeting is tentatively scheduled for June or July in the Lafayette area. www.la-cia.com

SEMA Show Registration Now Open

As of May 12, 2014, you can now register to attend the 2014 SEMA Show at www.SEMAShow.com/register. The annual trade show for the automotive accessories market is set for Tuesday–Friday, November 4–7, 2014, in Las Vegas, NV. You can register as an attendee, exhibitor, and media member: Attendees: Distributors, retailers, installers, and buyers who will be meeting with exhibitors at the SEMA Show should register as an attendee. Applicants may be required to submit proof of employment in the industry. During registration, attendees will be able to sign up for special events and seminars, including those offered by the

Society of Collision & Repair Specialists (SCRS), Tire Industry Association (TIA), and more. Approved attendees who register before the early deadline in October 2014 will receive their badges in the mail. Exhibitors: The exhibitor category is for company personnel working in the booths of exhibiting companies. To secure an exhibitor badge, individuals will need to have the unique password and user id that was provided, via email, to the primary contact at the exhibiting company. The primary contact may register the entire staff at one time quickly and easily. Exhibitor badges are not to be used for non-employees, including contest winners, contractors, and vendors. During registration, exhibitors will also be able to order complimentary tickets to the SEMA Industry Awards Banquet. Tickets to the banquet, which is attended by 3,000 attendees and considered by many to be the industry’s premier celebration, sell for $50 each. Media members: Editors and journalists covering the SEMA Show can register for complimentary media credentials. Applicants may need to supply proof of media affiliation, such as bylined articles or business cards. All approved media will be able to pick up their credentials onsite in the SEMA Show Media Center, which includes exclusive services and amenities to assist with reporting from the event. During registration, media are able to secure a ticket to the LTAA Media Preview—a brand-new event that will give media exclusive early access to new products on Monday, November 3, 2014, the day before the SEMA Show officially opens. “There are many advantages to registering early for the SEMA Show,” said Peter MacGillivray, SEMA vice president of events and communications. “Early application expedites the registration process, which is the first step to developing a personal plan for the show. Whether you’re an exhibitor, buyer, or media, having a plan in advance of the event is the best way to ensure success.” Complete details about the SEMA Show and registration are available at www.semashow.com.

@autobodynews Accept no Substitutes! www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 19

National Associations with Chasidy Rae Sisk

NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry On Wednesday, April 30 and Thursday, May 1, the National Auto Body Council (NABC) held several meetings at I-CAR’s Corporate Offices in Hoffman Estates, IL. Their Strategy Session was held at 8AM on Wednesday, and on Thursday, their 8AM Committee Meeting preceded their 10AM Board Meeting. This series of meetings was scheduled as part of the NABC’s ongoing efforts to build on their three-year strategic plan to continually enhance initiatives that present a positive image of the collision repair industry in local communities. Nick Notte, NABC Board President, explains “as an organization, we continually review and consider ways we can reach more collision repairers who could benefit from the community initiatives we have developed. One of our goals is to partner and develop a synergy with other industry groups which collectively benefits all of us in the collision industry.”

As such, key topics at these meetings included finding ways to increase collaboration with other industry organizations and to reach a broader audience of collision repair professionals through the use of targeted industry segmentation data. NABC’s efforts to collaborate with other industry organizations can be seen in the upcoming Collision Industry Breakfast which will be held at the Skills USA competition in Kansas City in June; the breakfast is being jointly sponsored by the NABC, the Collision Repair Education Foundation (CREF) and ICAR. In regards to their second effort discussed at the meetings, the NABC hopes to utilize industry segmentation data to ensure the organization is reaching the broadest possible audience of collision repairers with a focus on all classes of facilities, including everything from small independent shops to larger multi-shop operations.

In November 2013, state Sen. Joe Uecker (R-14) introduced Ohio Senate Bill 232, a bill to level the playing field for mechanical automotive repair shops. S.B. 232 extends the jurisdiction of the Motor Vehicle Repair Board (MVRB) to anyone who performs mechanical repairs on motor vehicles, requires motor vehicle repair facilities to register with the board, creates the Motor Vehicle Repair Operator Vendor’s License Suspension Fund and makes changes to the Motor Vehicle Repair and Window Tint Operator Law. The Automotive Service Association (ASA) supports S.B. 232. Under current law, only collision repair facilities are required to register with the MVRB. This loophole for mechanical repairs has allowed “backyard” operators to undercut legitimate businesses by avoiding compliance with OSHA laws and Ohio’s environmental standards. Because many of these “backyard” shops do not pay taxes or workers’ benefits, there is a considerable price difference

between these operators and law-abiding shop owners. S.B. 232 would ensure that all automotive repair professionals are adhering to a uniform set of service and safety standards. ASA has been supportive of this bill since its inception. ASA-Ohio worked with Uecker and the mechanical repair industry in Ohio to create the legislation that is currently before the Ohio Senate chamber. It is important to note that S.B. 232 does not require additional licensure, it simply ensures that legitimate businesses face fair competition. It also provides more information to the consumer, protecting them from unfair business practices. ASA encourages Ohio’s mechanical repairers to go to the ASA legislative website, www.TakingTheHill .com, to send a letter to the Ohio legislature in support of S.B. 232.

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The NABC has also engaged in a concerted effort to develop ways by which to further define and enhance the value propositions provided to their members. Notte notes, “since January, we have had a record number of new members join the NABC as well as many who have renewed their commitment.” Recycled Rides also continues to be one of the NABC’s main initiatives, and they plan to hold presentations about this and other core efforts at upcoming industry events, including June’s Skills USA as well as in July when they attend NACE in Detroit. Notte says, “NABC’s signature initiative, Recycled Rides, has gained significant traction in communities nationwide, and we are enthusiastic about our goal to donate 300 vehicles this year. We are energized and want to capitalize on this positive, collaborative momentum in our mission to promote a positive image of our colli-

sion industry.”

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Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90% On April 28 the Florida House and Senate voted to pass Senate Bill 754 (SB 754) making it a second-degree felony “... for any person to knowingly import, manufacture, purchase, sell, offer for sale, or install, or reinstall on a vehicle a fake airbag or junk-filled airbag compartment.” The bill defines a fake airbag to include both counterfeit and nonfunctioning airbags and specifically includes airbag covers. SB 754 also revises the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to obtain a certificate of destruction under certain circumstances; providing a criminal penalty, etc.

The process for applying for a salvage certificate of title (salvage title) or a certificate of destruction (COD) on a total loss motor vehicle. The bill also requires the Florida Department of Highway Safety and Motor Vehicles (DHSMV) to visually inspect rebuilt vehicles and issue an affidavit-of-compliance if repairs are needed before issuing a certificate of title. The DHSMV would charge $40 for each rebuilt vehicle inspection. In Florida, a rebuildable vehicle carries a Salvage Title, and an unrebuildable vehicle is issued a certificate of destruction. Under existing law, if the cost of repairing a vehicle exceeded 80 percent of the vehicle’s value, the owner was required to obtain a COD. The bill raises the 80 percent repair-to-value COD threshold to 90 percent, and limits its application to late model vehicles, seven years old or new, with a value of at least $7,500 just prior to sustaining the damage resulting in total loss. Vehicles worth less than 1,500 retail are specifically excluded. The new language added to section 319.30 of the Florida Statute

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reads: If a motor vehicle or mobile home is damaged, wrecked, or burned to the extent that the only residual value of the motor vehicle or mobile home is as a source of parts or scrap metal, or if the motor vehicle or mobile home comes into this state under a title or other ownership document that indicates that the motor vehicle or mobile home is not repairable, is junked, or is for parts or dismantling only, the owner or insurance company that pays money as compensation for total loss of a motor vehicle or mobile home shall obtain a certificate of destruction... SB the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to ob-

tain a certificate of destruction under certain circumstances; providing a criminal penalty, etc. Given the increase in the threshold more salvage motor vehicle titles are expected to be issued than under current law, allowing for more of those vehicles to be rebuilt and permitted back on the roads. Auto insurers would benefit from possible higher prices for salvage vehicles versus those receiving CODS. Conversely, the bill will result in fewer CODs being issued, reducing the number of vehicles available to dismantlers and recyclers. The bill also directs the department, on or before December 31, 2015, to assess and provide a summary report to the Governor, Senate President, and Speaker of the House of their findings regarding certificates of title and affidavits-of-compliance process. The legislation now goes to Governor to sign or veto the bill. As the legislature adjourns today, the Governor must sign or veto legislation within 15 days of transmittal, or it becomes law without signature. The bill would take effect July 1, 2014.

Northeast Associations with Chasidy Rae Sisk

ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates An alarmingly more prevalent concern in the collision repair industry is insurers’ use of camera phone photos for writing estimates. Rather than having licensed physical property damage appraisers physically inspect a vehicle after a collision, many insurance companies, including Allstate, State Farm and MetLife, are asking their customers to submit camera phone pictures of the damage, and they are using these photos to write their estimates. Attorney John Parese, who acts as legal counsel for the Auto Body Association of Connecticut (ABAC), believes “the growing trend of using camera phone pictures prior to getting a repair professional involved is illegal, unethical, and most importantly, harmful to consumers.” Furthermore, Parese notes that this practice violates the CT Unfair Insurance Practices Act (CUIPA) and potentially other consumer protection laws. As such, Parese has written to the CT Insurance Department outlining his

concerns on behalf of the ABAC, in addition to writing an article for ABAC’s member newsletter which emphasizes the possible dangers of this new habit and why he believes it should be declared unlawful. In his letter to the Insurance Department, Parese highlights portions of CUIPA that define unfair insurer practices as misrepresentations of facts and compelling insureds to settle a claim for less than the value of the repair. Though the benefits for insurers to write estimates based on camera phone photos are obvious, it creates the hazard of such estimates only capturing a fraction of the actual damage and thus encompassing only a portion of the cost to restore the vehicle to its preloss condition, and this is especially dangerous when claimants pocket the check instead of paying for the repairs, a common practice that is certain to increase when consumers believe the damage is purely cosmetic. Parese’s

concern is that “many of these vehicles are not safe to be put back on the road, and the safety of a vehicle often cannot be assessed from a camera phone picture.” Because claims are being paid based on claimant-taken photos which cannot possibly depict the full extent of damages, Parese sees this practice as “a fundamental misrepresentation of policy or third-party rights and benefits... Insurers have a legal and often fiduciary responsibility to make fair and complete payments for covered losses. This system is plainly designed to save insurers money on its own labor costs (ie. less paid appraisers) and on the amount it ultimately pays on claims (ie. calculated underpayment of claims). These savings come at the expense of consumer safety and complete reimbursement.” In his article for ABAC’s newsletter, Parese argues that using camera phone pictures to write an estimate be-

fore involving a repair professional in the process appears unethical and illegal based on CT’s unfair insurance practices law. In addition to safety and legal concerns, Parese also acknowledges that collision repair facilities suffer from this practice because they are losing work on these needed repairs that insurers are arbitrarily dismissing through the practice of writing estimates based on photos which can only capture cosmetic damages. Parese hopes that the issues he has raised will convince the CT Insurance Department to prohibit insurers from engaging in this unethical practice in his state. Unfortunately, his battle only encompasses the state of CT, and though he is unfamiliar with the laws in other states, he encourages trade associations across the country to investigate how this trend violates their state laws and to join the battle to protect consumers and the integrity of the collision repair industry.

www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 23

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On Creative Marketing

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

What’s In A Name? Possibly The Success Of Your Shop! with Thomas Franklin

Recently the president of the local Autobody Association Chapter renamed his shop. It had been J & L Body Shop for many years, but he chose to rename it Fix Auto, Sun Valley. Obviously he chose this name to reflect a relatively new relationship with the Fix Auto organization. But there may have been a deeper reason for the renaming. When all a prospective customer has to judge a shop is the name, a name like J & L really says nothing about the nature or quality of the shop. And this shop name is typical of many shop names that just reflect the owner’s name or names. But even those shops that intend to convey some degree of quality in their name -- like Elite Auto Body, Precision Auto Body, Superior Auto Body, Supreme Auto Body, Ace Auto Body, etc. -- are so commonplace they are no longer noticed. The effect can be the exact opposite of what was intended. Ideally you need to create a name with a trademark image that no one can ever mistake as someone else’s! And that image has to convey quality and uniqueness at a single glance -- not an easy task. First of all, recognize your own uniqueness. Every human is different. We have unique fingerprints and voiceprints. Your shop also has at least one unique characteristic. There is at least one thing that your shop does a little different (and hopefully a little better) than most shops around you. Find a way to emphasize that. You don’t necessarily need to change the name of your business, but you do need a sub-title, a slogan that strongly announces some specialty that is uniquely yours. Some shops specialize in a particular make of vehicle.

Identifying their specialty is easy. They can announce: “We are masters of Jaguar repair” or “Porshe repair” or “Volvo repair.” Others may focus on being “Paint Matching Specialists” or “Excelling in Perfect Restoration.” Shops that are already successful may not need much more, but those with no recognizable image need to be doubly creative. While actually changing the name of your body shop may be a more radical move than is necessary, it could also be a very powerful marketing action if a name with exceptional drawing power is selected. A few body shops in the Los Angeles area have names that suggest certain characteristics. One shop, for example, is named “Car-tique,” an obvious adaptation of “boutique” which suggests a small but elite type of shop. Another body shop was named “Picasso,” obviously a reference to the famous painter and an implication that this shop specializes in fine paint work. One shop in the Marina area was called the “Insurance Collision Center,” a direct reference to their primary source of work. “Country Club Auto Body” in Mission Hills would seem to be catering to affluent customers (or “wanna be” affluent customers). A shop that emphasizes service might want to choose a name like “Red Carpet Auto Body,” that says to a prospect, “Come to our shop and we’ll roll out the red carpet for you.” A name of this kind also provides some immediate ideas for decor. In his “The Guerrilla Marketing Handbook,” Jay Levinson has a number of good suggestions on name selection that might apply to body shops. For openers he discourages seeking advice from friends, family and other casual

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bystanders. He notes that names selected by committees are “usually losers.” He suggests instead making a list of the qualities your business emphasizes, with an eye to incorporating a key quality in the name of your shop. Some examples might include “Speedy,” “Reliable,” “Fearless,” “Flawless,” “Professional,” or “Jiffy.” Jay also cautions against the word “International,” a name is so frequently used, it gets lost in the shuffle. It takes up six full columns in one Business White Pages alone! Some marketing research done many years ago turned up the fact that people were unusually attracted to the word “Apple” in a business name. After that survey, there was a rash of new businesses with the word “Apple” in the name. These ranged from “Apple One Employment Agency” to “The Apple Farm” restaurant, “Apple School” and, most famous of all, “Apple Computers.” In New York I wouldn’t be sur-

prised to see a shop called “Big Apple Auto Body,” but elsewhere it may be wiser to come up with a different approach. After all is said and done, if a shop’s name is “Superior Auto Body” and the work isn’t “superior,” or even competent, no amount of namechanging is going to compensate for that liability. And if a shop’s name is “Mediocrity Plus” but the work is excellent, the name will be only a small liability. A good name or slogan is an essential part of a good “First impressions marketing strategy,” but once a prospective customer is in your shop and has experienced your fine quality of work, it will no longer matter what you call your shop. When you’ve chosen well and communicated it well, your “trademark image” will be indelibly branded on the minds of both customers and prospective customers and will quietly contribute to your continuing prosperity.

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Historical Snapshot

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

June Retrospective: ASA Position, CAPA, CIC with John Yoswick

20 years ago in the collision repair industry (June 1994) The association representatives at the (Society of Collision Repair Specialists’ Leadership Conference) meeting were in unanimous agreement on one issue: insurer involvement in parts purchasing. A resolution, passed unanimously, recognized the right of insurers to pursue programs they view as cost-saving, but called for the insurance industry to consider repair industry concerts when developing any such program. The resolution listed some of the industry’s concerns regarding insurer involvement in the ordering or purchasing of parts, specifically: • that insurers will use such program to force or intimidate a shop to use parts suppliers with which the shop does not want to do business; • that the programs would substantially reduce shop profits; • that inefficiencies could result

from delays caused by such problems as inaccurate parts numbers used in the electronic process; • that return of parts might be more complicated (because of the distance of the participating supplier, for example); and, • that the quality of service provided by parts suppliers may suffer if the choice of suppliers is limited by such a program. —as reported in Collision Expert

15 years ago in the collision repair industry (June 1999) How much more money can the insurance industry squeeze from collision repairers? Try $2 billion to $4 billion. That’s the figure presented in an article called “Achieving World-Class Claims Performance Using Innovative Supply Chain Management” in McKinsey’s Property-Casualty Insurance Annual. How could the insurance industry realize this savings? By creating

super direct repair programs. “In general,” the report said, “channeling more repair volume to fewer network participants leads to better prices and other concessions.”

Solera’s Tony Aquila, speaking at an international collision repair conference in 2009, said businesses should focus on ‘value’ rather than price, “because cheap sucks.”

David Friedman, one of the authors of the report, amplified the point. “Let’s say State Farm says to their DRP providers, ‘We think you’re the best of the best and we’ve got a new higher-grade program where we’ll

channel even more work to you and we’ll have less inspection.” —As reported in The Golden Eagle. By mid-2000, State Farm was piloting a “Select Service” program with Sterling Collision shops (prior to that chain being owned by Allstate) in several markets; the program eventually replaced the insurer’s “Service First” program, significantly reducing the number of participating shops. 10 years ago in the collision repair industry (June 2004) Tom McGee would like everyone in the collision industry to ask themselves two questions: What led you to get into this industry, and did you ever expect when you started out to be doing what you’re doing now? McGee, the CEO of I-CAR, posed those questions to about 60 people attending an I-CAR “industry forum” in Chicago as a way to introduce his con-

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cept for some websites to help attract more young people into the industry. “Nobody ever explains the career opportunities,” said McGee, who said he’s now the head of an international training organization but started out in the autobody “hobby class” in his high school. “I use the example of touring the DuPoint lab and looking at people who used to be technicians now working in the chemistry area in product analysis. Guys who worked in the stall next to me at my first job out of college now work for GM and Daimler-Chrysler. Did I expect them to go there or me to go here? No. But we don’t show parents what these opportunities are to allow them to understand that kids can make a good career and living in this industry.” McGee, drawing on his own experience as the father of three kids, ages 7 to 12, suggested that I-CAR develop age-based websites that would include such interactive activities as racing and other games, drag-anddrop customizing of vehicles, trivia and printable coloring books that would give kids reasons to visit the sites…The sites would let kids tinker with cars “virtually,” and also help them see that collision repair skills

can lead to rewarding careers not only within shops, but also with paint companies, information providers and insurers. —As reported in Autobody News. I-CAR launched two such websites in 2005. CollisionCareers.org is still live, though it is fairly static and offers little in the way of career path “stories” as it did in the early days. CollisionKids.org is no longer an active site. McGee left I-CAR in 2008 and is now with the Automotive Training Institute.

5 years ago in the collision repair industry (June 2009) Tony Aquila, CEO of Solera, Inc. (the parent company of AudaExplore) told the 250 IBIS attendees (shops, insurers and vendors from about two dozen countries) that businesses moving forward can take one of two roads. “I think you can just focus on ‘faster, better, cheaper,’ but to me, that’s a dead-end,” he said. “It really doesn’t take you anywhere, because eventually, you can’t make it that much cheaper, and you start to erode your profitability, then you start to lose your enthusiasm and vision, and everything kind of unravels. Or you can focus on

what we believe, which is ‘faster, better, more valuable.’ Focus on highvalue things that allow you the opportunity to innovate. Because then price is not the issue. It’s about the value you are delivering. We make no bones about it: When we do something, we want to get paid for it because we’re doing something high-value.” Aquila was asked how his company’s shop customers can use that concept when they feel continually squeezed by insurers. “If the customer is saying they want cheaper, then I would argue to my people that we’re not doing a good enough job providing more value,” Aquila said. “When you focus on just price, the value curve is out of the equation. That means innovation is not happening. You’re not giving them more services. When customers say to me, ‘We need it cheaper,’ then I immediately think: What do I have to do to add more value so they stop talking about cheap. Because cheap sucks. It’s not good for any of us. What we need to concentrate on is how do we get the waste out of the process.” —as reported in CRASH Network (www.CrashNetwork.com), June 29, 2009.

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Study Reveals 2/3 of Drivers Are Distracted on the Road

A new Plymouth Rock Assurance study reveals that nearly two-thirds of drivers engage in distracted driving behavior on a daily basis. The study, which consists of data surveys of 3,300 consumers, shows that texting and driving is one of the biggest distracted driving habit among drivers. More than 50 percent witnessed a driver texting with at least one adult passenger in the car, and nearly 40 percent witnessed a driver texting with at least one child in the car. The study’s findings further underscore Plymouth Rock’s push for distracted driving awareness through their campaign launched in August 2013. Encouraging drivers to join the fight against distracted driving, and in lieu of Distracted Driving Awareness Month, Plymouth Rock urges all drivers to sign the Pledge Against Distracted Driving. The Pledge is a commitment to refrain from cell phone usage and any other form of distracted driving, and always stay focus on the road. Drivers can access the pledge and learn more by visiting FightDistractedDriving.com.

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Southeast Associations with Chasidy Rae Sisk

Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More On Thursday, May 1, the Washington Metropolitan Auto Body Association (WMABA) hosted industry speaker Mike Anderson for a full-day educational seminar on “The Encyclopedia of Estimating Practices” at the LKQ Training Center in Linthicum Heights, MD. In addition to providing a State of the Industry update, Anderson’s seminar also touched on parts procurement, the future of DRPs, cycle time and many other topics. Jordan Hendler, Executive Director of WMABA, describes the seminar: “With his usual boisterous and ‘take-me-as-I-come-orleave-me’ personality, Mike gave attendees more than they bargained for. Safety is his number one priority, and he wants every pair of ears to hear how vehicle technology is changing everything we know about collision repair processes.” Through his passionate approach, Anderson’s goal was to stress that, despite the importance of focusing on cycle time, safety is an even more pressing concern for collision repairers because the consumer is trusting their repair facility to look out for their best interests and ensure that their car is restored to its pre-loss condition properly. “A lot of people aren’t aware of what it

takes to fix a car properly. I don’t mean that disrespectfully; it’s just that the industry is changing so fast that it takes a lot to keep up on things today. You really have to spend time on training,” Anderson emphasizes. In discussing the impact that a proper repair estimate has on cycle time, Anderson explained, “when you pass on an estimate that’s really incomplete and another technician finds more damage, you’re just creating inefficiency in your process… Speed is the name of the game. It’s not just about writing an accurate blueprint to fix the car right...Even if you’re not a DRP, you have to get [better] at turning cars quicker just because there is less profit on a job and you have to turn more cars just to get to the breakeven point quicker. We really tried to focus [in the class] on just how the estimate is really the basis for getting the right part the first time and the basis for communicating properly with a customer.” Anderson discussed everything from receiving proper reimbursement from insurers to lean processes, reducing stress in the shop environment and the demands that new technology places on repairers. “We really have to

LKQ’s 2014 GetGreen Promotion Winners Announced

The 2014 LKQ Get Green promotion started in February 2014, and ended April 17, 2014. The nationwide promotion offered thousands of instantwin prizes along with a sweepstakes promotion for a chance to win a 2014 Honda Accord. Overall, there was one grand prize winner, five first place winners, two second place winners, five third place winners, and thousands of instant-prize winners. The grand prize winner is John Avila, owner of John’s Auto Center in Corpus Christi, TX. Avila will receive the 2014 Green Car of the Year, a Honda Accord. “I have been a customer with LKQ for many years, beginning in the Greenleaf days,” says Avila. “I feel unbelievable and overwhelmed that I won a car. Something you think will never happen, then it happens to you, I feel thankful and blessed,” stated Avila. John’s Auto Center participated in the LKQ Get Green promotion

through LKQ Central Texas located in New Braunfels, TX. The 17-acre location services the Austin, San Antonio, McAllen, and Corpus Christi markets with quality recycled auto parts. “John’s Auto Center has been a valuable customer of ours for over eight years. They have been using the same sales representative for those eight years, and John the owner is a great long-term shop owner and very deserving of this grand prize,” stated Tchad Taormina, LKQ Central Texas plant manager. The first place winners each will receive Raleigh bicycles, the second place winners each will receive a $200 LKQ gift card, and the third place winners each will receive a solar backpack. The instant-win prizes included 10,000 trees being planted through the Arbor Day Foundation, digital music downloads, limited edition LKQ Get Green t-shirts, LKQ gift cards, and iPads.

30 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

understand that with all this new technology with accident avoidance systems, lane departure systems and autonomous braking that you can’t just go through [the vehicle] like in the old days and say, ‘I’m just going to check out all the lights and door locks.’ ” You have to have a scan tool to actually take and check a lot of these things during an output test and [make] sure they’re working properly.” Rather than suggesting quick fixes, Anderson provides tools and methods for learning, focusing on the long-term solution of studentinitiated learning and adaptation. As part of this initiative, Anderson provided attendees with a list of websites where they can acquire this type of necessary knowledge: www.DEGweb.org, www.CollisionAdvice.com, www.EstimateScrubber.com, www.PartsVoice.com, and www.Estify.com.

Anderson was pleased with participants’ responses to his seminar: “Everybody was interactive and had lots of great questions. One of things I found really refreshing was there were a lot of young people in the class, particularly young females. It’s really nice to see more and more women represented in the industry. It’s always nice to see young people. With what we do with regards to computers and technology, young people are more open to [this industry].” As a recurring speaker at WMABA meetings, Anderson praises the association and explains why he is always willing to visit the East Coast to teach the association’s members. “I get the privilege of working with a lot of different trade associations across the country, and I don’t think a lot of people realize what they have in Jordan Hendler as executive director. She is truly one of the most passionate people you can ever meet in the industry.”

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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 31

Social Media for Shops

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

Five Common Marketing Mistakes Body Shops Make with Ed Attanasio

1) Too Many Hats. Too Little Bandwidth You’re the owner, estimator, painter, front office person, receptionist, marketing director, technician and detailer. Oh, and I also forgot janitor, psychiatrist and a shoulder to cry on. As a marketing person, I wouldn’t know how to write an estimate or paint a fender, so why do you insist on trying to do it all when it comes to your marketing, public relations and advertising? Wearing too many hats means you’re doing too much and marketing should be the first hat to remove from your busy life as soon as you possibly can.

Solution: Empower and Delegate In some cases, you may already have someone in your crew that can help you in your marketing efforts. Maybe one of your estimators or front office people can play a role in your marketing scheme. One body shop took a newbie office assistant and turned her

into a confident and extremely efficient marketing professional and now she does all of their e-mail marketing, blogging, social media and online advertising. All it took was one day of training and she was up and running and ready to take on the world.

2) Too Late to the Party Without a strategized plan and an annual marketing budget, you’re shooting in the dark and the first casualty could be your business. Too many body shops get fat and happy when the cash flows in, but all of a sudden--wow, the competition comes to town or they lose a DRP and jump into panic mode. One body shop owner freaked out when three MSOs moved into his city, so he borrowed $50,000 and asked me where should he spend it? Use it for your retirement, I said, because marketing is something you do all the time—not just in emergency mode.

Solution: Make It a Priority Marketing moves quickly and if your competitor is working faster and harder than you are, they will obviously capture more market share. There are only so many car accidents in your area every year, so why is the shop down the street fixing 150 vehicles monthly while you’re doing half that? Maybe because they’ve made their marketing a priority while many of your marketing projects are sitting in a constant state of limbo. “We’ll get to that next week…next month…next year,” and then it never happens. Marketing is not a part-time thing reserved for evenings and weekends, it’s fastpaced and ever-changing and that’s why it needs to be full-time and on the front burner.

3) Too Many Unrealistic Expectations If a marketing company says that they’ll get you ranked #1 on Google within one month’s time, listen to

what your father used to tell you—“If it looks too good to be true, well…” Some so-called marketing agencies can get you involved in what they call “black hat tactics” while promising you the world, which can lead to Google sanctioning you and shutting down your web site. If any company promises you anything—get it in writing and don’t pay them until they deliver.

Solution: Devise a Plan and Stick to It Too many business owners (not just body shops) develop a “checked box” mentality when it comes to their marketing efforts. “We updated our web site, created a blog and did some SEO, so we’re good.” Well, maybe you’re good right now, but how about three months from now? Just by checking things off on your marketing to-do list doesn’t mean you can stop or slow down. New content should be added to your site all the time to enhance

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SEO. Your blog needs new articles, photos, etc. on an ongoing basis. I hate to see a collision blog that hasn’t been updated since 2012, for example. Marketing, advertising and public relations is not a start-and-stop thing and that’s why you should never even look at the finish line.

4) Too Dependent on DRPs You have some nice cozy DRPs that bring you tons of business, but if they make up more than 80% of your total revenue, you’ve got too many eggs in one basket. What happens if you fumble a couple repairs and suddenly you’re no longer the insurance company’s flavor of the week? A healthy balance between DRPs and non-DRP business should be close to 50-50, but too many shops don’t get it, until they get the axe. By continually hammering away at the big three—marketing, public relations and advertising—one DRP won’t be able to make or break you.

Solution: Seek Your Independence If you’re DRP dependent, you might want to do more consumer marketing and advertising, such as radio and TV broadcast, outdoor advertising, direct

mail, online advertising and social media. You can continue relying on your DRPs, but when times change and the DRPs are harder to attain, you’ll be in a better place and more prepared for a life with fewer DRPs. Plus, it all works together to brand your business, so that when consumers do have a choice, you’re on their radar.

5) Too Much Micromanagement Perform your due diligence and talk to a lot of marketing experts before choosing which way to go. But once you find the right company or individual, let them do their job and step aside. Too many body shops owners listen to everyone about marketing— p their wives, girlfriends, the postman and the guy at the deli down the street. Hire the right people and let them perform. Sit down with them every 3-6 months to check the results of their work and re-assess things at that point, but don’t jump the gun when you don’t see instant results. Marketing takes time, like fine wine—but in the end you’ll start seeing positive results, because solid marketing is an investment and not an expense.

Solution: Become a Sponge Learn as much as you can about marketing, advertising and public relations and then pass it on to the people who will actually be doing the heavy lifting. If you’re knowledgeable, you won’t have to take advice from people who read something somewhere and aren’t afraid to share it with you. You need to be the final arbiter when it comes to your marketing. You may not have the time to do it yourself, but at least you’ll know what’s going on. The paint companies, professional organizations and marketing firms offer classes, training sessions and seminars all the time and many of them are free, so be a sponge and suck up as much of this information as you can, because knowledge is power.

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SMDI Honors GM for Innovative Use Of Advanced Steel

For its use of advanced highstrength steel (AHSS), the Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI), awarded the General Motors Co. (GM) Chevrolet Silverado and GMC Sierra 1500 design team with the 2014 Automotive Excellence Award. The team was recognized on May 14, 2014, during the 13th annual Great Designs in Steel (GDIS) seminar in Livonia, MI. Thomas Grabowski, design release engineer, accepted the award on behalf of the GM design team. “The GM design team has done an outstanding job redesigning the Chevrolet Silverado and GMC Sierra 1500 models with consumer-focused improvements in safety, performance, and fuel efficiency,” said Ron Krupitzer, vice president, automotive market, SMDI. “Their use of advanced high-strength steel stampings contribute to the vehicles’ mass efficiency, fuel economy, and safety performance ratings, all essential criteria for consumers in today’s market.”

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Continued from Page 4

Process of Winning

you’ve seen them go through their “routines” just before hitting the ball. This routine is settling, and helps the golfer build confidence. Doing it every time also encourages a player’s consistency. Most start behind the ball, lining up the shot. Many golfers take a few practice swings. This is followed by visualization, and finally execution without tension or hesitation. One thing this does is to keep the golfer from allowing emotions to rule. The golfer has a strategy, and a proven process. The golfer who does this every time will avoid choking, and will live up to his or her potential. Almost everything in life is a process. Most of us have a morning routine: getting up, eating breakfast, going out the door. It gets us to work on time. Fixing cars is no different. Every shop has a process, whether they know it or not—but some have very poor processes. Many processes are outmoded, while others were flawed from the start. Many shops have good processes, but don’t consistently follow them. I’ve worked with organizations that had stale old policies created for situations that no longer existed—yet the policies went on and on. Such “sacred cows” must be slaughtered! In lean thinking circles, many of us have been involved in Value Stream Mapping. This is a detailed analysis, and “mapping out,” of a shop’s current processes. It looks at what goes into a process, how it works, and the value of the result. It forces the shop leadership to examine each task and method to see if these provide customers with the value they are willing to pay for. Value Stream Mapping should help the shop’s staff identify those tasks and methods necessary for a good process. Most shops I’ve worked with had fragmented processes, each for a different area. These betray a lack of unity and direction. They often conflict with one another. This creates a disconnect between the administrative processes of the business, and the work processes used on the shop floor. This leads to poor communication, unnecessary delays, poor quality and upset customers. Any good administrative workflow process begins with the proper flow of dependent events in the system. Quality control must be built into the process, so, at each stage, the recipients

get a product that meets all quality standards. A good process should: 1. Produce consistent, predictable results every time. 2. Have simple, clear instructions, written out and accessible to everyone. 3. Flow well from resource to resource, without unnecessary delays. 4. Identify who does what. 5. Be visual—both in the operating manual and on the shop floor. 6. Be comprehensive, well-planned, and free of waste and inefficiency— and no sacred cows! 7. Be based on proven methods or best practices. 8. Be created with the customer’s, and the employee’s happiness in mind. 9. Be created with the input and buy-in of the entire organization.

Training In business and in sports, you may know the process, without knowing how to use it. Great athletes spend endless hours practicing, and perfecting their craft. These athletes know without the right preparation, they won’t be able to win. But they also know they must execute. If they can’t apply all that preparation to the game itself, then what good is it? This is also true when dealing with collision repair customers. Though you may know how to prepare an estimate, can you sell the job to the customer? Do the people on the floor know how to apply the process to the work? Have they been trained to do this? Remember, just because you give someone has an SOP manual, doesn’t mean he or she will be able to do every job in it. They might need a few lessons! These lessons come in various forms: I-CAR and other outside training services, in-house or on-the-job training, videos, workshops etc. Make sure your people have a deep understanding of how the processes work, and give them all the tools they need to execute successfully.

Inspect What You Expect Testing and auditing are the “secret sauce” that brings it all together. I’ve seen many improvement initiatives fail, even in some organizations that had great people. Despite the dedication and effort that went into them, in most cases these initiatives failed, partially or fully, within a few months. Most often they fail because they neglect proper testing and inspection procedures.

34 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

Testing and auditing isn’t a complicated task. It requires leadership, discipline, and a written test. It only takes an hour or two to type out a test. I prefer about twenty questions, some true-or-false, and some multiplechoice. Of the various auditing methods, I prefer this: 1. Identify the process’s most important elements. 2. Write an auditing form asking: “Is this critical task or process being followed consistently? Yes or No?” Your form may have as few as ten items, or it might have over a hundred, but all should be noted and answered in the course of an audit. I recommend frequent auditing, especially whenever new processes are being implemented. In a more stable system this should still be done at least every quarter. Those who are engaged in the auditing process should see it as an ongoing coaching opportunity.

Summary Finally, the Process of Winning is this: 1. Create good processes that are aligned with the entire organization. 2. Slaughter the “sacred cows.” 3. Focus on process, not outcomes. 4. Be careful how you measure people,

Welcome to the ALL NEW

and how you define success. 5. While it’s okay to look at the scoreboard once in awhile, don’t focus on it! 6. Don’t get emotional. When the pressure is on, stick to the process. 7. Training, training, training. 8. Testing, testing, testing. 9. Inspect What You Expect. 10. Most importantly, be disciplined… and don’t ever give up! Body shop people are some of the smartest, hardest-working folks on the planet. They shouldn’t suffer from the diminishing returns so typical in today’s ultra-competitive and everchallenging marketplace. It’s not so much that they “care too much,” but they often work in hurried environments, where they aren’t given time to direct their passions sensibly. Care about the task at hand, and don’t worry about Aunt Patty’s smile. You might improve your repair process as much as I improved my tennis game. Once I learned to love the rewards of each step in the journey, I found my first trophy at the end. You can too!

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Update on IN Shops’ Accusations of Insurers’ Collusion Collision repairers from six states are pursuing legal action against insurers for alleged antitrust violations, collusion by making deals with preferred body shops to reduce labor costs, and interfering with body shops’ business by dictating how they do repairs. There are also allegations that shops are being forced to use substandard repair parts. The body shops are seeking damages from the suits that could amount to damages in the billions. See Autobody News May edition for more details. In the federal lawsuit, 14 Indiana shops and others have accused State Farm Insurance and competitors of extracting “unreasonable and onerous” concessions on vehicle repair costs. When a shop doesn’t comply with price ceilings, the insurers dissuade policyholders from choosing that shop for repairs by telling them it has quality issues or gets lots of complaints, the shops allege in the suit filed April 2. The 34-page suit alleges insurers have violated the federal Sherman Act, both in price-fixing and through boycotting tactics. Insurance company dictates are “placing the driving public at harm,”

says the lawsuit. (Other defendants include Allstate, American Family, Auto-Owners, Erie Insurance, Indiana Farmers Mutual, Liberty Mutual, Nationwide, Shelter General and Zurich American.) Pat Johnson, a Martinsville, IN, shop owner of Brothers Body & Paint next to IN 39, was cut from State Farm’s Select Service Program last November, unable to live with the its requirement that he buy vehicle parts through the online PartsTrader site instead of using his own longtime suppliers. Now Johnson says he is feeling the pain of losing business from State Farm. Revenue at Brothers Body & Paint has fallen by $100,000 so far this year from his former $2 million annual gross on repairing about 60 vehicles a month. Johnson has said he may need to cut his 12-person staff, but he’s adamant about not letting State Farm dictate his parts-buying. “They’re a force to be reckoned with. You don’t want to argue with them. But sometimes you have to stand your ground,” he said. “They trusted me for 20 years, and now I’m nothing,” Johnson said

of State Farm. Johnson has repaired cars in Martinsville since 1982, said insurers are continually expanding their lists of work they won’t fully pay for. That included no longer paying full cost for installing corrosion protection inside a bumper and doing fine sanding on body panel paint jobs, he said. “They don’t tell you not to (perform certain routine repair tasks),” Johnson said. “They just don’t pay for it. If they went to Wal-Mart, they’d pick up 10 things and they’d pay for six. That’s the way they operate,” said Johnson, who has joined the Indiana lawsuit against the insurance companies. When insurers don’t cover the full cost of repairs, “it’s such a difficult thing to pass on to a customer,” said Kevin Wells, who operates Quality Collision Inc. in Bloomington and is a plaintiff in the suit. Wells said he often just eats the cost the insurance company won’t pay. “I’m taking it in the shorts by about $6 an hour for every job I do,” Wells said. Johnson said he’d be happy if insurance companies dropped their ap-

proved-shop lists and repair mandates and paid for claims without dictating through reimbursements how body shops like his should do their job. “I don’t tell them how to sell insurance,” he said. “All I want to do is fix cars.”

Surveys Also Point of Contention Body shops say State Farm conducts surveys of the going labor rate shops charge in a given area. The data and methodology are not disclosed, shops complain. “Shops are simply required to blindly accept State Farm’s pronouncements regarding these matters.” The insurer attempts to prohibit shops from discussing the labor rates they provide as part of the surveys, “asserting any discussion may constitute illegal price fixing.” Shops that complain the labor rate is inadequate are often told they are the only body shop in the area to say so and that they don’t conform to the “market rate.” In fact, “State Farm knew multiple shops had attempted to raise their labor rates and advised State Farm of

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such,” the suit alleges. The shops allege insurers have failed to abide by industry standards for auto repairs and repair-estimating databases. At the same time, many insurers pressure shops to reduce costs by using recycled parts. But used parts like doors can require hours of additional labor to be made to fit properly and to be reconditioned. Ultimately, shops are required to either make “less than quality” repairs or suffer a financial loss. Taking shortcuts raises the specter of safety issues, but once a vehicle is repaired, it’s not easy to spot problems such as improper welds that might be hidden by seam sealer. “The guys can’t make it. It’s not that they are bad businesspeople,” said Scott Blake, of Blake’s Carstar Collision Center in LaPorte and president of the IABA.

Insurers Respond The insurance companies have responded in kind in the media, defending their DRP programs as a key way to keep premiums on auto policies under control. “These lawsuits are another attempt to undermine programs insurers

have put together” to hold down vehicle repair costs, said Bob Passmore, a spokesman for the Property Casualty Insurers Association of America, which represents insurance companies. “The programs have been around 20-plus years, and they are timetested. People like them. They achieve desired results” to get vehicles repaired quickly by repair shops vetted by the insurer and at reasonable cost, he said. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” said Missy Dundov, a spokeswoman for State Farm. Dundov said State Farm built its Select Service network by listing body shops that provide warranties on their work and meet performance standards set by State Farm. But a State Farm customer is “free to choose the repair shop of his or her choice,” even if it’s not on the Select Service list, she said. When it comes to parts, Dundov said, State Farm’s “current business practice” is to pay for non-factory-made parts only in uses that don’t play a role in crash protection—unless a customer requests otherwise. If a body

shop is told to install a used part, “we rely on the repairer to inspect the part and ensure that it is of sufficient quality to repair the vehicle properly,” she said. Dundov said PartsTrader “creates a consistent approach to parts ordering,” she said, and does so “at a competitive price, as quickly as possible.” Body shops overall have had a “quite positive” reaction to the online ordering system, Dundov said. As for allegations in the lawsuit that State Farm steers customers to body shops in its Select Service network, Dundov said it’s up to customers to decide what body shop to use. A spokesman for Progressive, Jeff Sibel, said, “We are aware of the new litigation against us and believe that we can demonstrate the fairness in our claims practices at the appropriate time.” A GEICO spokeswoman, Christine Tasher, said the company won’t comment on pending litigation. “There’s going to be a battle,” says Tony Passwater, executive director of the Indiana Auto Body Association, the lead plaintiff. Passwater says that on average, insurers won’t

reimburse for $550 to $750 worth of work on a typical repair job of $3,500, leaving it up to the body shop to pick up the unpaid costs. That $550 to $750 estimate of unreimbursed costs will likely be used by the body shops’ attorneys in figuring their damage claims against the insurers. Passwater said the state once had about 2,000 shops; there are now 800 to 1,000. Passwater has been promoting the lawsuit among auto body shops around the state and expects that the 24 current plaintiffs will swell by 15 to 20 in the next several months. But some shop owners, he said, are reluctant to join because “they’re concerned about any retribution the insurance companies might do.” Plaintiff’s Attorney Eaves said he thinks the numerous lawsuits he and co-counsel are filing could eventually be consolidated in one court. He said he expects to present testimony from “whistle-blowers” who worked for insurance companies and will give evidence of collusion among companies in their business tactics. See Update, Page 38

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South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation The owners of Coastal Collision Works, David and Susan Montanaro, filed suit on March 6 against State Farm in the SC Court of Common Pleas for defamation, unfair trade practices, breach of contract with their insureds and breach of agreement with Coastal Collision. The shop is located at 2543 Savannah Hwy, Charleston, SC, 29414. Becky Snelgrove and Steve Fields are named in the suit as State Farm representatives. Coastal Collision Works accuses State Farm of engaging in a course of action to artificially depress the price for the repair of damaged automobiles in the Charleston, SC, area. In addition it accuses State Farm of: ● Attempting to persuade Coastal Collision Works and other Charleston body shops to agree to repair automobiles for an amount less than they ordinarily charge in exchange for prompt adjustment of losses; for referral of business; and for being listed by State Farm as a “preferred” shop.

● Attempting to persuade Coastal Collision Works and other Charleston body shops to repair automobiles on the basis of the State Farm estimate of damage instead of performing an independent evaluation of damage. ● Attempting to persuade Coastal Collision Works and other Charleston body shops to not use new parts but to substitute parts of an inferior quality; to repair instead of replace parts requiring replacement; and to ignore damages that might not be recognizable by the customer. ● Arbitrarily refusing to pay reasonable costs associated with needed repairs. ● Refusing to pay the fair market price of parts, insisting that any body shop doing State Farm repairs order from a specific parts supplier and then refusing to reimburse the body shops for the extra time involved in ordering parts from the specified parts supplier. ● Refusing to pay for certain repairs and operations necessary in the

repair of damaged vehicles. In addition, the shop says State Farm falsely accused the owners of charging noncompetive prices and of performing work not reasonably necessary for a proper repair, which has damaged the shop’s reputation and caused it monetary damages. According to the plaintiffs, State Farm violated the South Carolina Unfair Trade Practices Act by steering customers to competitors, citing the State Farm Select Service Program. The plaintiffs have requested triple damages from the court. A State Farm spokesman had not responded to a request for comment at press time.

being accessed and collected, and inquiring if repair facility end-users have options to restrict non-required data from being collected, accessed, or shared. As a result of that research, SCRS issued an article outlining the resulting responses from each of the technology organizations. The article concludes that: Technology has increased the ability to communicate information amongst businesses; however, the increase of applications that indiscriminately extract data in the background for unknown or unintended purposes is a concern for repairers who have obligations to protect data generated by their business. There are advancements being made, or already in place, from some estimating system providers that allow collision repair facilities to maintain better control over the data files being exported from the estimating systems to other data collection sources. The solutions and options for each estimating system vary, so it is important to compare capabilities of the software programs relative to features that allow greater control over unwanted data transfer, and to make any necessary profile changes in line with individual business practices. Read the full article at: http://scrs.com/data/uploads//2014april-scrs-examines-repairer-abilityto-control-data-flow.pdf.

38 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

Update

But the litigation could be fierce, Eaves said.”We’re anticipating extensive pushback. They’re making billions of dollars by these practices and they’re not willing to give it up easily.” Even so, Eaves said, several insurance companies have approached him to ask about settling the claims to avoid lengthy litigation and a possible high-stakes jury trial. “We are already in discussion with three insurance companies that are willing to discuss resolving it. I was kind of shocked. I never had a case where somebody came so quickly and wanted out.”

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SCRS Examines Repairer Ability to Control Data

Many repairers are unaware of the breadth of data being extracted from their servers, where it is being extracted from, what settings they could employ to better control the flow of information, or even how that information may be used beyond its intended purpose. For years, the Society of Collision Repair Specialists (SCRS) has alerted its members about the potential risk and liability associated with inadequate control over estimate data and business information. For example, SCRS was notified of growing concerns relative to the collection of data through participation in the PartsTrader parts procurement program. As the program rolled out across the nation, more questions began to arise when end-users noticed key identifying information from nonState Farm estimate files populating their PartsTrader dashboard. The repairer concern surrounds the amount of non-voluntary information being provided through the data collection process, which could offer valuable information surrounding market volume and shop volume, raising further concerns over the potential of violating agreements with non-involved carriers by sharing information with an unrelated third-party. SCRS researched the issue with PartsTrader, and each of the estimating system providers to identify the means and extent in which the data is

Continued from Page 37

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AMI Taking Applications for $1,000 High-Octane Award

ABRA Acquires 24 Collision Centers of America Locations

ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced the purchase of all 24 Collision Centers of America repair centers in Chicago, Illinois, the surrounding communities, and Northwest Indiana. Terms of the deal were not disclosed. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and top-quality workmanship they have enjoyed with us over the years.” ABRA is one of the largest and fastest growing multi shop repair operators in the country. Today’s transaction boosts its nationwide portfolio to 218 collision repair centers in 17 states. “ABRA is one of the most iconic brands in the collision repair industry,” said David Mulder Sr., founder and president of Collision Centers of America. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and topquality workmanship they have enjoyed with us over the years.”

The Automotive Management Institute (AMI) is accepting applications for the $1,000 Arrowhead Specialty Markets "High Octane" Scholarship. The scholarship, which is awarded to an Automotive Service Association (ASA) Mechanical Division member who strives to be, or is presently working in a management capacity. The scholarship will be applied toward the recipient's expenses to attend the 2014 Congress of Automotive Repair and Service (CARS) in Detroit, July 31–Aug. 2. CARS is sponsored by ASA and offers an educational lineup of AMI seminars, technical training courses and industry sessions, an exposition and the opportunity to network with other automotive service professionals. To be eligible, applicants must work in the mechanical repair industry; must demonstrate an interest in self-improvement through education and training; must own or work for a business that is an ASA member in good standing; and, if the applicant is not the business owner, must be recommended by the owner. To request a scholarship application, call AMI at (800) 272-7467, ext. 101.

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Bloomberg reports Esurance to Take on Advertising Giants

Solera Buys Pittsburgh Glass Works’ Insurance Business

Advance Auto Profit Up 21%, Acquisition Boosts Sales

SCRS Member’s E-Catalog

Allstate Corp., the largest publicly traded home and auto insurer, hired Alan Gellman from Wells Fargo & Co. to oversee marketing at its Esurance unit. Gellman will be chief marketing officer, reporting to Esurance Chief Executive Officer Gary Tolman in San Francisco. He held marketing roles for the past 10 years at Wells Fargo, the auto insurer said. Allstate has ramped up advertising spending to win customers from big spending rivals such as GEICO and Progressive Corp.

Auto parts retailer Advance Auto Parts Inc reported a 21 percent rise in quarterly profit, helped by the acquisition of the biggest operator of the Carquest chain of auto repair shops and car parts stores. Advance Auto completed the acquisition of General Parts International Inc in January, making the company the largest auto parts retailer by sales in the United States. Advance Auto's net income as reported rose to $147.7 million in the first quarter ended April 19 from $121.8 million a year earlier.

Solera Holdings Inc. says it is buying the insurance and services division of private equity-owned Pittsburgh Glass Works LLC for $280 million, expanding the Texas-based insurance software company's business to include automobile repair and claims management services. Solera's acquisition of the insurance division, which is expected to close by the end of June, will be paid for entirely with cash, the company said. Pittsburgh Glass Works is owned by NY-based private equity firm Kohlberg & Co. LLC. The Society of Collision Repair Specialists (SCRS) Member Services E-Catalog was created to help SCRS members do business with other members. If you are a repair facility, share it with your friends and colleagues; if you are with an association, pass it along to your membership. If you are a corporate or company member, share it with your customer base or post to your social media account. View the catalog at: http://scrs.com/index.php?id=ecatalog.

Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150

According to Ford, 850 Ford dealerFord sold 763,402 F-series trucks When aluminum is bent or bro- more than 3,000 dealerships have ships have enrolled technicians in in 2013. It doesn’t report sales of the ken, it behaves differently than steel. body shops; the rest outsource the training courses to learn how to do F-150 separately from the rest of the F Aluminum does not have the “metal work to other dealerships or to indecollision repairsthe on industry. the 2015 alu- series, but Ford production statistics memory” to resume its original shape, pendent collision repair shops. Ford matters affecting Want to Contribute to this Southwest Edition? said it has enrolled about 420 indeminum F-150 pickup. Ford said the show that 69 percent of all F-series as steel does. number exceeds its goal of having 750 production was F-150 in 2013. Ford strongly recommends col- pendent shops and hopes to enroll 750 dealerships enrolled in the courses by 2-part course lision shops set up separate areas by year end. the end of 2014. The I-CAR training course will for working on aluminum because Technicians aren’t the only ones utobodynews.com The training courses will be be divided into twopublisher@autobodynews.com segments. The of steel-aluminum contamination is- who need a better understanding of taught by instructors from I-CAR. first teaches general aluminum repair sues. Galvanic corrosion, similar to the aluminum repair process: InsurJason Bartanen, I-CAR director of techniques, including aluminum weld- rust, can occur when the metals ance adjusters do, too. industry technical relations, calls it ing and the operation of rivet guns. touch each other. Combustion can Said Bartanen: “This training one of the biggest technical training The second concentrates particular occur when the two metals will with be open to the insurance industry Promote on your businessalso with Promote your business programs of its kind ever. So far, I- design elements of the 2015 F-150 it- mix. so insurance adjusters will know what an exclusive article featuring exclusive article featuring CAR has scheduled about 700 classes self. Among thean training requirements to do and can write more accurate in locations around the country. DealFord has offered to pay the or costservices. will be a weld test in which technidamage assessments.” your products your products or services. advertise ership training To begins this month. of one technician per dealership for cians will be asked to perform six I-CAR and Ford experts also will y callindependent Joe Momber at: the training course, which takes about welds from two positions. I-CAR offer lectures and demonstrations on Training for collision ry shops and insurance estimators begins two days and costs about $1,000. welding experts will travel to dealer- repairing the new F-150 at the Inter800-699-8251 in June. Dealerships that want to have more ships and repair shops to be sure that national Autobody Congress & Expoe-mail: “Because of the magnitude and than one trained technician will pay they have acquired the proper alu- sition (NACE) July 30-Aug. 2 in CALL: JoetoMomber Call for jmomber@autobodynews.com of this vehicle, I think we’re the additional expense send extrafor details! minum-handling equipment and details! that Detroit. 51 volume going to see a fantastic response to technicians. it is installed properly, Bartanen said. The 2015 F-150 is scheduled to www.autobodynews.com this course,” he said. To work on 800-699-8251 aluminum, Ford Independent shops 800-699-8251 arrive in dealerships in the fourth Ford’s shift from steel to alu- recommends that dealerships with Roughly 20 percent of Ford’s quarter. n. minum on its biggest-selling vehicle body shops and independent repair is an enormous industrial undertaking shops buy new tools, including speand affects everyone from the factory cialized rivet guns, MIG (metal inert floor to the collision repair shop. FordEmail gas) welders and specialized vacuum Register Your for Our Register Your Email for Our wants to be sure collision repair spe- systems. Ford has estimated dealercialists know what they’re doing the ships can buy the equipment they first time a damaged aluminum need to get started for $30,000 to pickup rolls into a shop. $50,000.

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BMW Joint Venture to Triple Carbon Fiber Plant Capacity

BMW Group’s joint venture with SGL Group will spend $200 million to triple the capacity of its carbon fiber products plant in Moses Lake, WA. The factory will become the world’s largest producer of carbon fiber, with an annual output of 9,000 tons by 2015 when the expansion is completed. The plant provides carbon fiber reinforced plastics for BMW’s family of i electric and plugin hybrid cars—the i3 electric compact car and the i8 plug-in hybrid sports car. The i3 has just been released in the US and the i8 is to launch in August. The carbon fiber has been used to produce 5,000 i3 cars at BMW’s factory in Leipzig, Germany, which has a daily output of 100 vehicles. With the expansion, BMW said it will be able to use the carbon fiber for other models “at competitive costs and in large quantities.” The redesigned 7-series flagship sedan due in two years is expected to make extensive use of carbon fiber. The joint venture, SGL Automotive Carbon Fibers, is 49 percent owned by BMW. The partners have spent $100 million on the plant, which has 80 employees. The expansion will create 120 additional jobs.

US Government Says It Lost $11.2 billion on GM bailout

The U.S. government lost $11.2 billion on its bailout of General Motors, more than the $10.3 billion Treasury estimated when it sold its remaining GM shares in December. The $11.2 billion loss includes a write-off in March of the government's remaining $826 million investment in "old" GM. The U.S. government spent about $50 billion to bail out GM. During the company's 2009 bankruptcy, the government's investment was converted to a 61% equity stake in the automaker, plus preferred shares and a loan. The US bailout of GM and Chrysler saved 1.5 million jobs in the United States, according to the Center for Automotive Research in Ann Arbor, MI. GM just posted its 17th consecutive profitable quarter. Earnings, however, were hurt by a $1.3 billion charge for the costs of various recalls, including for faulty ignition switches on 2.6 million cars. GM is under investigation by the Justice Department, U.S. auto safety regulators and Congress over its failure to detect the faulty ignition switch for over a decade. The U.S. Securities and Exchange Commission is also investigating GM.

OSHA Cracking Down on Isocyanate Exposure

A representative of GMG Envirosafe warned attendees of the Collision Industry Conference held April 9–10 that OSHA is cracking down on body shops to ensure workers are protected from isocyanate exposure. Brandon Thomas, chief operations officer of GMG, a company that offers OSHA, EPA and DOT compliance solutions, said a study done by OSHA’s counterpart in Britain found that painters in a body shop environment have 80 times the risk of occupational asthma from isocyanates than industrial workers. It’s precisely for that reason, Thomas said, that OSHA is targeting the collision industry more aggressively than others. According to Thomas, OSHA has fined body shops $1.6 million over the last three years. OSHA’s enforcement division has increased inspections 25 percent over the last four years because they have a bigger budget, and there is an average of 4.33 citations per inspection. OSHA’s goal, Thomas said, is to eliminate isocyanate exposure altogether in two ways: engineering controls (spraybooth, mixing rooms, ventilation, gun washers, etc.) and administrative controls (PPE training and processes).

CAPA Reaches 15 Year Milestone for Vehicle Test Fits

The Certified Automotive Parts Association (CAPA) incorporated its Vehicle Test Fit (VTF) program in 1999 and since then, CAPA has performed more than 10,000 VTFs to ensure that the gap, flush and fit of CAPA parts rival those of OE parts. Since then, there has been a dramatic increase in the quality of the aftermarket parts submitted for testing under CAPA’s rigorous certification standards. CAPA says its program was so successful that after it was initiated, the Collision Industry Conference (CIC) performed blind test fits to compare CAPA Certified parts to OE service parts. CIC participants selected the CAPA Certified part five out of eight times. “While today CAPA’s unique vehicle test fit process has become the industry-accepted standard for test fitting aftermarket parts, it was entirely innovative when we introduced it,” said Debbie Klouser, CAPA’s director of operations. “Considering all of CAPA’s extensive certification requirements, the VTF has played the single most critical role in today’s acceptance of CAPA Certified parts as the best way to contain repair costs without compromising quality.”

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NSF Certifies 500 Sheet Metal Parts Made by Gordon NSF International has certified 500 different sheet metal hoods and fenders from Gordon Auto Body Parts Co., Ltd. via the NSF Automotive Collision Replacement Parts Certification Program. The NSF certification of 500 unique sheet metal parts includes more than 700 different models from all major auto companies. NSF certified parts now cover more than 20,000 vehicle applications and represent a significant increase in the number of sheet metal certified parts available in the market. This 500 parts certification complements Gordon’s already certified steel bumpers and bumper brackets. To earn certification, Gordon automotive parts were independently reviewed and tested against OE service parts and all hoods and fenders were fitted to vehicles to ensure proper fit. NSF International also regularly audits Gordon’s OE-ready manufacturing facilities and quality systems to ensure that they meet or exceed each of NSF’s stringent requirements. “Achieving this important certification from NSF International is essential as it underscores the quality and integrity of our automotive parts in terms of fit, form and function. We look forward to certifying more auto parts in the near future,” said Richard Wang, Gordon Auto Body Parts Co.

Executive Assistant to President. “This NSF certification occurs in conjunction with the increase in Gordon’s sheet metal parts inventory so we are prepared to offer these NSF certified parts to ensure inventory levels can meet the anticipated growth in demand.” “Earning NSF certification underscores Gordon’s commitment to ensuring that high-quality collision replacement parts are available so body repairers, insurers and distributors can make more quality repairs using NSF certified hoods, fenders, steel bumpers and bumper brackets,” said Bob Frayer, Director of NSF International’s Automotive Collision Certification Programs. In addition to sheet metal components, the NSF Automotive Collision Replacement Parts Certification Program tests and certifies lamps, bumper fascias, reinforcing beams (rebars), step bumpers, plastic components and absorbers. NSF also offers automotive collision parts distributor certification, which requires distributors to have quality management systems in place that address traceability, service and quality issues. This includes having an effective records system, inventory systems to track orders and parts through the supply chain, and an ISO 9001-certified quality management system.

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

See these Hyundai dealers below for all your collision parts needs!

TEXAS

Absolute Hyundai

HOUSTON

469-221-8018 469-221-8078 Fax

800-856-2212 281-955-2311 Fax

Mon-Fri 7am - 7pm Sat 8am - 5pm www.hyundaiofdallas.com

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

Allen Samuels Hyundai

Van Hyundai

NO RTH R IC HLAN D HI L L S

972-512-4200 972-512-4202 Fax

Mon-Fri 7am - 7pm Sat 7am - 4pm areed@asag.net

Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, offers WorkShop facility design planning for Car-O-Liner equipment placement as a free value-added service through local authorized Car-O-Liner Distributors. Through this service, shops address challenges posed by limited space or awkward building layouts by designing a concept for how Car-O-Liner equipment will best fit to optimize work flow, thereby providing confidence that their equipment investment will maximize both technician productivity and shop profitability.

After consulting on the objectives of the facility, the Car-O-Liner Distributor will work with shop operators and their architects to plan and visualize the most effective layout

from a top view in 2D. The unique footprint of the building is accurately represented to include structural attributes such as garage bay openings as well as doors, windows, lighting,

and more. Equipment can be rotated and moved, in real time, to determine optimal placement with consideration for vehicle flow restrictions, safety, and other requirements of the space. At any time, the design can be viewed in 3D from any angle with the ability to save and print high-resolution drawings and specifications. In addition to 3D renderings, a detailed report of the Car-O-Liner equipment specifications selected for the layout can be printed to quickly and easily make the design a reality. To learn more about how a WorkShop facility design plan can improve your efficiency, contact your local Car-O-Liner Distributor, visit www.car-o-liner.com, or call toll free (844) 833-9419.

miere iation e r P ’ s Texa ody Assoc Auto B

• If you are serious about your business future and plan to have some say in what that future is... then the answer is clear − Become a Member of the HABA.

Hub Hyundai

M E SQ UI TE

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Car-O-Liner Offers Free Value-Added Design Planning

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Mon-Fri 7am - 7pm Sat 8am - 3pm ktaylor@vtaig.com www.vanhyundai.com

• Our mission is to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their safe pre-loss condition.

For more information on becoming a Member, please visit our website at: www.habaonline.org www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 43

BASF Recognizes 5 Shops as Shops of the Year

Automotive Aftermarket is Expected to Grow 3.4% PY

BASF Automotive Refinish recently recognized five collision repair shops as 2013 Performance Group Shops of the Year at its VisionPLUS Business Solutions Performance Group Conference in Clearwater, FL. Collision repair shops that utilize BASF’s VisionPLUS Business Solutions, and participate in the program’s Performance Group meetings, were eligible for the award. The 2013 winning shops are: ● Auto Body Specialties, Springfield, OR, Byron Davis, Owner. ● Crystal Lake Automotive, Lakeville, MN, Jim Siegfried and Karl Drotning, Owners. ● Frank’s Autobody Collision Solutions Network, Vernon, British Columbia, Canada, Matt Brunelle, Jesse Brunelle, Dave Brunelle and Rene Brunelle, Owners. ● LaMettry’s Collision, Richfield, MN, Joanne LaMettry, Owner. ● Center Square Motors, Blue Bell, PA, Chuck Dietch, Owner. The five winners were selected based on criteria including sales improvement; overall gross profit improvement; Vision PLUS Performance Group meeting attendance; and meeting participation and contributions.

The U.S. automotive aftermarket is expected to grow on a compound annual growth rate (CAGR) of 3.4 percent until 2017, according to the “2014 Joint Channel Forecast Model” produced by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. The model predicts that the total aftermarket sales will grow from $238.4 billion in 2013 to $273.4 billion in 2017, an increase of $35 billion over four years. “The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, Auto Care Association president and CEO. “Why? The average age of vehicles is 11.4 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.” Said Bill Long, AASA president and COO, “The forecast model anticipates that growth in population, employment and income will lead to an increase in miles driven and the number of vehicles on the road resulting in long-term aftermarket growth.”

Four CARSTAR Shops Were Recognized by Mitchell

I-CAR Enhances Website, More Improvements Coming

This spring, four CARSTAR Auto Body Repair Experts stores were recognized by Mitchell, as recipients of the 2013 AutocheX™ Solution Premier Achiever Awards. “Repair shops are making a commitment to their customers on a daily basis,” said Jim O’Leary, Vice President of Mitchell Repair Solutions. “It’s important for Mitchell to recognize these efforts and honor those teams that have gone above and beyond to deliver some of the industry’s best service.” The 12th annual Premier Achiever Awards honor collision repair shops that consistently achieve the highest customer satisfaction scores as measured by the AutocheX solution, either independently or as part of an insurance-sponsored repair program. The CARSTAR shops honored this year were: ● Walt’s Autobody CARSTAR – Topeka, KS ● ABC CARSTAR Body & Frame – Prescott, AZ ● Superior Auto Body CARSTAR – Pinellas Park, FL ● Autobody Resurrection CARSTAR – Lakeland, FL

I-CAR® reinforces their ongoing commitment to providing improved services to industry professionals by launching the first of many enhancements to the I-CAR website. These first enhancements are centered around the user registration and tracking portal, myI-CAR.com, with improvements that include more user-friendly, streamlined registration and login pages, along with redesigned, personalized landing pages for faster navigation and ease of class scheduling. Users will see an immediate difference during the login process and find navigation easier as soon as they enter the site. The new landing pages have graphically-focused visual navigation for easy identification of quick links to frequently utilized resources and information. Some of the new highlights include immediate visibility to Gold Class and Platinum recognition status, expiration dates and reports that provide specific details on training required by students and businesses in order to achieve or maintain their Platinum or Gold Class status. Visit www.i-car.com or contact Customer Care at 800-ICAR-USA.

44 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com

Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website Auto body parts are now under new terms of sale at the Auto Pros USA website. All import and domestic parts shippable are receiving new sticker prices for purchasers. Discounts for select types of auto parts can be hard for consumers to locate due to the increase of freight costs for automobile parts shipments. The Auto Pros USA company is now providing a discount for all used auto body parts available for sale at http://autoprosusa.com. The entire inventory of American and imported models of parts that are available for public sale this year has been lowered in retail price. New contracts with agencies offering better prices has helped to configure the current discounts that are found when shopping on the company homepage in 2014. “The vehicle body parts that are offered are in preowned and in aftermarket condition to provide easy selection options for parts purchasers,” an Auto Pros source said. The automobile replacement parts for sale that are marketed on the Auto Pros website to consumers now feature a new phase of warranty coverage. The extension of warranty periods now included for most parts

sales is already calculated in the quoted prices. “American and foreign automaker brands can be found using our search location tool on our homepage to discover all components discounts in place,” confirmed the source. The Auto Pros USA company website now provides consumers with the updated toll-free phone line used to support customers not shopping through the homepage this year. The number at 1-888-230-1731 is now in place for consumers to use for locating company supplied parts. The AutoProsUSA.com company provides discounts for vehicle parts and accessories that can be purchased through its Internet portal. This company has launched a database available to consumers with hundreds of suppliers currently quoting prices before purchase. The AutoProsUSA.com company has a staff of experts contributing to the customer support now available daily. The automotive partners that are found through the company website change periodically as different distributors are included in the North American network.

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AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution AudaExplore(TM), a leading datadriven solution provider to insurance carriers, repairers, dealerships and fleet owners, today announced the launch of MSO Pro(TM), a cloudbased enterprise body shop management (BMS) solution that delivers unmatched capability to manage multiple repair locations and business functions through one experience. Featuring enterprise-level functionality with a dashboard-driven design, MSO Pro is based upon proven technology, which has already processed tens of thousands of repair orders, and millions of dollars in collision repair revenue. The solution is an open architecture design that integrates with estimating platforms from AudaExplore or other technology providers to deliver unique customer moments and increase repairer productivity through the following: ● Predictability: Repairers can make better, more informed decisions that impact customer satisfaction and profitability outcomes through customer satisfaction reporting, predictive production load scheduling and standardizing process across multiple repair locations.

● Scalability: No matter the size or number of locations, from a single shop looking to grow into an MSO to organizations opening their 100th location, the platform combines robust performance analytics and reporting with applications for all business functions including: HR, Sales, Customer Relationship Management and Operations. ● Efficiency: Reducing complex IT integration across business functions and locations with its stable cloud-based accessibility via single sign-on, self-service management of administrator permissions and thorough user adoption training and support. “We’re excited to bring to market a proven and comprehensive enterprise solution--the first of its kind designed for MSOs,” said Gordon Henderson, VP of Collision Repair Solutions, AudaExplore. “MSO Pro breaks new ground in collision repair operations, filling a void in which many MSOs have chosen to either build their own homegrown systems, or deal with the limitations of singleshop or low-volume solutions that require ongoing add-ons to support their multi-shop businesses.”

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Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops

Assured Performance and Auto Damage Experts (ADE) announced at the latest Collision Industry Conference (CIC) that ADE has been chosen to perform the inspection and verification of Assured Performance Certified repair facilities across the country. The Assured Performance certification program provides a thirdparty assessment of a shop’s ability to properly repair today’s complex vehicles back to the manufacturer’s specifications by having the proper tools, equipment, training, and facility. Assured Performance and ADE will work together to deliver an accurate and efficient process to assess the participating shops’ capabilities, providing the consumer with an accurate and credible national network of competent and reliable shops to choose from in the event of a collision. ADE has been long known for its superior vehicle appraisal and valuation services, but ADE also provides a suite of services including, but not limited to: ● Detailed Collision Forensics ● On-Site and Remote Pre-Repair Inspections, ensuring the accuracy of an estimate ● In-Process Repair Monitoring en-

ORIGINAL GM PARTS RTS FOR A

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Ray Huffines Chevrolet

Texas

800-955-6282 PLANO

TEXAS

Ingram Park Mazda

Kinsel Mazda

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Beaumont

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suring the proper processes and materials ● Post-Repair Inspections and Verifications, providing confirmation of an accurate repair ● Training and Assistance in Damage Analysis, equipping shops and adjustors with the most up-to-date information on repair specifications and techniques. ● Assessment of Required Repairs and the manufacturer’s recommended processes and materials ● Coaching/Consulting for day-to-day business operations “Assured Performance has developed a first-class program, which offers significant value and opportunities to its qualified members,” said Barrett Smith, ADE’s Founder and President. “We’re excited and proud to work with Assured Performance in helping quality repairers take advantage of the many benefits of the Certification program, including recognitions from numerous OEMs.” For more information on Assured Performance visit www.assuredperformance.net. For more information on Auto Damage Experts, visit www.AutoDamageExperts.com or e-mail: info@AutoDamageExperts.com.

972-202-2300 972-596-5571 Fax Mon.-Fri. 7-7; Sat. 8-5 Call Us For Your Saturn Parts Also.

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800-477-8603 NEW ORLEANS

504-242-4624 504-253-8490 Fax www.bannerauto.com www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 45

NACE | CARS 2014 Agenda and Online Attendee Registration Opens As of May 6, 2014, both online attendee registration and housing reservations are open for the 32nd annual NACE | CARS 2014 Expo & Conference at: http://www.naceexpo.com/Content/Register/3/. Part of Industry Week, the collision and service repair industry’s premier networking event, the NACE | CARS 2014 Conference will be held July 30– August 2, 2014, and the Expo will be held July 31 and August 1, 2014, at the COBO Convention Center in Detroit, MI. Other Industry Week events include many board and association meetings on July 28, 2014; the Collision Industry Conference (CIC) summer meeting on July 29, 2014; and the I-CAR Conference and Gala 35th Anniversary Networking Event on July 30, 2014. View the Conference Program and Schedule-At-A-Glance at: http://www.naceexpo.com/page.cfm/A ction=Seminar/libID=1/listID=1/t=m/g oSection=5. Expo passes to access the show floor only can be purchased for $35. Individual, 90-minute conference sessions are available for $75 per session or individual three- or four-hour con-

ference sessions are available for $150 per session. A Day Pass is $250, and Saturday Mechanical Sessions are $150. A full-access Super Pass is $315 for members and $365 for non-members. All prices noted reflect early bird pricing, which is in effect through June 14, 2014. I-CAR Add-On Education, the Collision Repair Executive Symposium (CRES)/MSO Symposium, and Technology and Telematics Forum (TTF) events are available at an additional charge. New for 2014, all registration options include the NACE | CARS Show Floor Receptions in the evening on July 31 and August 1; the Opening General Session the morning of July 31, 2014; and The Assembly - Industry Forum in the afternoon on July 30, 2014. Additional details on these events will be released in the near future. Special discount pricing is available for Automotive Service Association (ASA) members, and discounts are also provided for other industry organization members. All NACE | CARS exhibitors will be offering substantially discounted Expo Passes and 10 percent

off any conference purchase (excluding I-CAR Add-On Education). Attendees are encouraged to contact an exhibitor to redeem this discount. For a list of current exhibitors, visit: http://fp37.a2zinc.net/clients/StonefortGroup/NC14/public/eventmap.aspx. In addition, special discounts are available to students and educators focused in the automobile repair industry.

CRES/MSO Agenda Announced NACE has announced the schedule is now available for the Collision Repair Executive Symposium (CRES), formerly the MSO Symposium. The MSO Symposium has been an extremely popular, sold-out event during NACE since it premiered in 2011, drawing attendance from the largest multi-shop operators in the collision repair industry. This all-new CRES business event now caters to a broader group of collision repair executives allowing it to be more inclusive of some of the best, as well as the largest, operators in the marketplace. This year’s event includes key changes in content including a focus

on management, operations and participation from insurance company executives presenting leading information on industry trends. Designed for collision repair multi-shop operators, as well as operators looking for high-growth strategies, mergers and acquisitions, divesting, and operational excellence, CRES is scheduled for Friday, August 1. The NACE | CARS Expo will take place Thursday and Friday, July 31-Aug. 1, with education beginning Wednesday, July 29, at the Cobo Convention Center in Detroit. Registration for CRES is $150 before June 14 and $250 following, and is available online at http://www.NACEexpo.com/Content/Register/3/ for qualified shop owners. This “next generation” CRES event provides information for high-growth shop owners and multiplestore operators that is unparalleled. This year’s CRES includes an Expo Pass, as well as a ticket to the Opening General Session and Welcome Party Thursday, July 31, allowing for multiple networking opportunities for shop owners and MSOs throughout the event.

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