June 2020 Southwest Edition

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A Look at the Impact of Driven Brands Purchase of Fix Auto USA & Auto Center Auto Body by Stacey Phillips

With Driven Brands’ purchase of Fix Auto USA and Auto Center Auto Body on April 21, the collision repair industry is experiencing another shift in landscape during a time of accelerating consolidations. FOCUS Advisors, Inc., a full-service mergers and acquisitions (M&A) firm specializing in the automotive aftermarket, announced the completion of the transaction for both parties in a press release to the industry. Autobody News had the opportunity to talk to David Roberts, man-

aging director of FOCUS Advisors, Inc., about the transaction and its impact in the industry.

Q:

tion?

Can you share some of the background of this transac-

A:

Erick Bickett and I have been friends and professional colleagues for nearly 27 years. He and Shelly Bickett have had a huge impact on this industry for a long time and are some of the most sophisticated operators in the country. See Purchase of Fix Auto USA, Page 12

Car Rental Industry Braces for Impact from Coronavirus

38 YEARS

AUTOBODYNEWS.COM Vol. 38 / Issue 6 / June 2020

1,000 GM Workers in TX Tested Automaker’s New COVID-19 Safety Protocols by Jamie L. LaReau, Detroit Free Press

A cacophony of chaos surrounded UAW Local 276 Shop Chairman Ken Hines early April 30 as he rushed to a morning meeting with General Motors’ Arlington Assembly Plant leaders. It’s one of many meetings Hines has had this week as he and plant leaders wrestle with how and when to safely reopen the facility in Texas, where GM builds its highly profitable full-size SUVs. In fact, GM must address that issue at all its U.S. assembly plants,

which GM idled in March amid the growing coronavirus pandemic. “We’re in lockstep with other GM facilities in terms of trying to figure out a date and plan to restart,” Hines told the Free Press. “We’re concerned about [safety] like the rest of America. But we’re trying to figure out now how we can ensure the workforce’s safety.” Hines and other workers at Arlington worry some areas inside the facility are laid out in such a way as to make social distancing nearly impossible for the 5,000 workers at the See 1,000 GM Workers, Page 16

As we move from medical crisis to economic recovery, Autobody News chooses to focus on information detailing how the economy is recovering and how companies are managing that process. Please check Autobodynews.com for the most current information.

by Mark Zinn, News-Press NOW

With a recently estimated reduction of more than 90% of non-essential travel, car rental companies are feeling the ripple effect caused by the coronavirus outbreak. While most local car rental branches remain open, the excess amount of cars on their lots can only mean business is dwindling during a time the car-sharing industry has been hit hard by less demand. “Like others across the travel industry—and countless other companies large and small—we have wit-

NIADA Survey: Independent Dealers Getting Back to Business

Car rentals are down amid the COVID-19 outbreak. Credit: Mark Zinn, News-Press NOW

nessed an impact to our business,” said Lisa Martini, a spokesperson for Missouri-based Enterprise HoldSee Industry Braces for Impact, Page 20

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Employees are coming back to work and vehicles are beginning to sell as independent auto dealers ramp up to get back to business, according to a new survey by the National Independent Automobile Dealers Association. The survey of 846 used vehicle dealers conducted from May 9-14—a follow-up to a survey taken a month earlier—found almost twothirds (63%) of the dealerships that had furloughed or laid off employees a month earlier have begun the process of bringing them back. Overall, 34% of the independent dealers said they are rehiring staff, 20% said they are not and 47% said the question was not applicable, meaning they had remained at full staffing level throughout the COVID-19 pandemic—the same percentage as the previous survey. Thirty-nine percent of those who

are rehiring said they had experienced no problems in doing so, but 31% said their employees were hesitant to come back because they were making more through the government’s

enhanced unemployment benefits than they had made at their jobs, and 19% said fear of the coronavirus was an issue. The survey also showed dealerships opening up again, with 44% doing business as usual (compared to 27% in April), 34% open by appointment only and 10% selling online See NIADA Survey, Page 20

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CONTENTS REGIONAL 1,000 GM Workers in TX Tested Automaker’s

Enterprise Implements Complete Clean Pledge Enterprise Holdings is reinforcing its commitment to maintaining the highest standards of cleanliness in the car rental industry. The company announced the implementation of its Complete Clean Pledge program across the Enterprise RentA-Car, National Car Rental and Alamo Rent A Car brands, as well as its comprehensive portfolio of transportation services. The pledge includes the company’s car rental operations, as well as its truck rental, vanpooling, corporate fleet management, retail car

Yoswick - Finding Some Hopeful Bits of Good News Amid the Pandemic Fallout ���������40

New COVID-19 Safety Protocols ����������������������1

and Resources ����������������������������������������������18 Car Dealers, Repair Shops Look to Future to Make Up for Business Slowdown ����������������8 CARSTAR Locations Across CO Offer Free Vehicle Sanitization Services for Front Line Health Care Workers and First Responders ����10 GEICO Files Another AOB Fraud Lawsuit —This Time in AZ �����������������������������������������19 Half of an Uproar with Hail-Damaged Vehicles in Laurel, OK �����������������������������������22 New Auto Insurance Limits May Be Costly for AZ Drivers ��������������������������������������������������4 OK Auto Shops Lose Business in Face of COVID-19 ��������������������������������������������������11 TX Among Top 10 States with Fewest Coronavirus Restrictions, Study Finds �������������4 VW Chattanooga Delays Restart; Extends Closing ��������������������������������������������11 Waymo Restarting Autonomous Vehicle Testing in Phoenix �������������������������������������������4

NATIONAL 10 Shops Share What They are Doing to Get Work in the Door �������������������������������������43 A Look at the Impact of Driven Brands Purchase of Fix Auto USA & Auto Center Auto Body �������������������������������������������������������1 Axalta Supports CA COVID-19 Response �����������19 Car Rental Industry Braced for Impact, Financing Concerns ����������������������������������������1 Enterprise Implements Complete Clean Pledge ���3 Fix Auto USA and Auto Center Auto Body Sold to Driven Brands �����������������������������������46 Ford CEO on Weathering Coronavirus: ‘Don’t Waste a Crisis’ ������������������������������������42 Ford, 3M Shipping Air-Purifying Respirators ��������4 Ford’s Potentially Devastating F-150 Problem Has Been Solved �������������������������������������������44 Garmat Develops Walk-Up Testing Booth for Virus Abatement ��������������������������������������44 Glass Company Shifts Gears to Make ‘Sneeze Guards’ for Vehicles �������������������������44 Good Sam Insurance Agency Underwriter

COLUMNISTS Anderson - Not Busy? If You’re Leading the Business, You Sure Should Be �����������������������36 Antonelli - Shop in UT Discusses Billing Insurance for Disinfectants, Finds Silver Lining in Uncertain Times ��������������������38 Attanasio - Body Shop Owner Triples Advertising Budget During Pandemic ������������32 Chess - Kool Tools from SEMA 2019 �����������������26 Sisk - Local Associations Discuss Impact of Virus on Members and Organizations ��������34

to Give Refund and $3M Donation to Virus Relief Efforts ����������������������������������������36 Guidance on Reducing COVID-19 Risks �������������42 NIADA Survey: Independent Dealers Getting Back to Business ��������������������������������1 OE Certifications Update 2020—Part 2 of 2 ������30 Scholarship Recipients Announced by WIN ��������46 Tractable Donates to CIF COVID-19 Fund ����������43 Women of the Year Award Nominations Sought ����������������������������������������������������������20

INDEX OF ADVERTISERS

Bates Collision Centers Donates Time

sales, carsharing and vehicle-subscription services. It’s one step in enhancements the company is implementing across the organization to ensure its customers feel safe and confident as they move forward and look to travel again. “Employee and customer safety are our top priority,” said Chrissy Taylor, Enterprise Holdings president and CEO. “Today and every day, we are committed to maintaining the highest standards of cleanliness in the industry.” Source: Enterprise Holdings

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

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

American Icon Automotive Finishes ����������������� 12

Haldon Company �������������������������������������������� 31

Audi South Austin ������������������������������������������� 17

Honda-Acura Wholesale Parts Dealers �������24-25

Audi Wholesale Parts Dealers �������������������������� 41

Hyundai Wholesale Parts Dealers �������������������� 42

AutoMart Mitsubishi ���������������������������������������� 21

Innovative Tools & Technologies ���������������������� 33

AutoNation Chrysler-Jeep-Dodge-Ram

Kia Motors Wholesale Parts Dealers ���������������� 39

of North Phoenix ����������������������������������������� 23

LKQ Corporation ��������������������������������������������� 47

Big Mike Naughton Ford ��������������������������������� 21

Mercedes-Benz of Littleton ����������������������������� 21

Bill Luke Chrysler-Jeep-Dodge-Ram ��������������� 16

Mercedes-Benz Wholesale Parts Dealers �������� 43

BMW of South Austin �������������������������������������� 17

Mitsubishi Wholesale Parts ����������������������������� 38

BMW Wholesale Parts Dealers ������������������������ 34

Montipower Americas ������������������������������������� 11

Bob Howard PDC �������������������������������������������� 37

MOPAR Wholesale Parts Dealers ��������������������� 29

Bob Utter Kia �������������������������������������������������� 32

North Freeway Hyundai ����������������������������������� 27

Car-O-Liner Southwest ������������������������������������� 5

Part of the Club ����������������������������������������������� 21

Certified Automotive Parts Association �������������� 8

Peak Kia ��������������������������������������������������������� 21

Chevyland ������������������������������������������������������� 30

Ray Huffines Chevrolet ������������������������������������ 19

Christopher’s Dodge World ������������������������������ 21

Santa Fe Kia ����������������������������������������������������� 8

Classic BMW ��������������������������������������������������� 18

SATA Dan-Am Company ���������������������������������� 13

Classifieds ������������������������������������������������������ 46

Schmelz Countryside �������������������������������������� 21

Covert Chrysler-Dodge-Jeep-Ram ������������������ 10

Scoggin-Dickey Parts Center ���������������������14-15

Dallas PDC ������������������������������������������������������ 48

Sherwin-Williams Automotive Finishes �����������6-7

Emich Chevrolet ���������������������������������������������� 21

Southern Polyurethanes, Inc ������������������������������ 9

Emich Volkswagen ������������������������������������������ 21

Stevinson Toyota West ������������������������������������ 21

Finnegan Chrysler-Jeep-Dodge ������������������������� 2

Subaru Wholesale Parts Dealers ���������������������� 36

Fisher Acura ��������������������������������������������������� 21

Symach ���������������������������������������������������������� 20

Fisher Honda �������������������������������������������������� 21

Toyota of Laredo ��������������������������������������������� 28

Flatirons Subaru ��������������������������������������������� 21

Toyota Wholesale Parts Dealers ����������������������� 43

Ford Wholesale Parts Dealers �������������������������� 45

Tsunami Compressed Air Solutions ����������������� 22

Fowler Honda ������������������������������������������������� 16

Volkswagen Wholesale Parts Dealers �������������� 43

GM Wholesale Parts Dealers ��������������������������� 35

Young Chevrolet ���������������������������������������������� 26

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New Auto Insurance Limits May Be Costly for AZ Drivers

TX Among Top 10 States with Fewest Coronavirus Restrictions, Study Finds by Mary Claire Patton, KSAT News

A recent study by WalletHub ranked states based on the fewest number of coronavirus restrictions and Texas came in at No. 8. COVID-19, the respiratory disease caused by the new virus, first appeared in late December 2019 in Wuhan, China, but spread around the world in early 2020, causing the World Health Organization to declare a pandemic in March.

Credit: vexels.com

The first case confirmed in the U.S. was in mid-January and the first case confirmed in San Antonio was in mid-February. WalletHub determined the rank-

ing for each state based on a number of factors, including the requirement to wear a face mask in public, travel restrictions, large gathering restrictions, the reopening of restaurants and bars and “shelter in place” orders, among several other factors. The top 10 states with the fewest restrictions based on the study are: 1. South Dakota 2. Utah 3. North Dakota 4. Missouri 5. Idaho 6. Tennessee 7. Montana 8. Texas 9. Florida 10. Iowa The rankings are based on data available as of 11:30 a.m. May 4. Howard Forman, a professor at the Yale School of Medicine, told WalletHub, “if the economy is opened too early, there would be the development of a new wave and a need for a second shutdown.” He added that “social distancing and aggressive testing of contacts are the best ways” to protect the population who are most at risk

while resuming economic activity. Rochester Institute of Technology economics professor Amit Batabyal seemed to echo those sentiments, saying reopening the economy too early would cause “more infections and deaths and a need to impose stringent lockdowns once again with minimal economic activity taking place.” His advice to help people return safely to their normal routines is to “wear a mask in public, maintain social distancing to the extent possible, not mingle in large groups [and] maintain good personal hygiene, including handwashing.” “The major consequence of opening the economy too early is that we will see a comeback of the pandemic and the medical resources of the society will be stretched to beyond its limit,” said University of Washington assistant professor Clair Yang. “The consequence of opening too late, on the other hand, is that it could inflict unrepairable damage on a major contributor to the economy, the small and medium enterprises.” We thank KSAT News for reprint permission.

New Arizona requirements for auto insurance coverage take effect July 1, as a result of Arizona Senate Bill 1087. This legislation increases the required auto insurance coverage limits to $25,000/$50,000/$15,000. Arizona limits are presently set at $15,000/$30,000/$10,000. A coverage increase was needed to help ensure that Arizona drivers have adequate protection, particularly considering the rising costs of medical care, automotive repairs and litigation. However, this increased protection comes at a price, and may result in sticker shock when policies come up for renewal. With those projections in mind, drivers who pay $100 per month now could pay $140 per month when their policies renew after July 1. This change applies to all insurance companies that sell insurance in Arizona. Auto insurance rates vary by carrier and state, so shopping with multiple insurers is key to saving money. Source: RightSure Insurance Group

Ford, 3M Shipping Air-Purifying Respirators

Waymo Restarting Autonomous Vehicle Testing in Phoenix

The first Ford-built powered air-purifying respirators, developed in close collaboration with 3M, are on their way to help protect health care workers fighting COVID-19. Since late March, Ford has been working with 3M to create urgently needed PAPRs, using design guidance from 3M and off-the-shelf parts, like vehicle ventilator fans and power tool batteries. In a separate effort, 500,000 reusable medical gowns distributed by Ford will soon be on their way to the state of New Jersey. 3M is a leading provider of personal protective equipment, including powered air-purifying respirators. Demand for 3M PAPRs is exceeding supply due to the COVID-19 pandemic. Through partnerships with companies like Ford and others, 3M plans to increase capacity of its own PAPRs by ten-fold within the next several months. Source: Ford

Courtesy of the ongoing pandemic, Waymo is going back to the future with its Waymo One autonomous ride service. The company is going to resume sending the vehicles back out on the roads around Phoenix, but with drivers only⸺no passengers. The company suspended drives in March, but starting May 11, a small portion of the company’s fleet of white Chrysler Pacifica minivans will be roaming the roads again, collecting data and implementing new technology the company’s been working on for the last two months. And while the vehicles will be equipped with the latest and greatest updates, they will not carry passengers as state and CDC guidelines don’t allow for that kind of activity yet. Waymo officials are uncertain when the shuttles will be able to take passengers again. Waymo has been working to institute new procedures for its employees for their return to week next week. In addition to making the self-driving minivans eschew passengers⸺beyond the test driver⸺

by Michael Strong, The Detroit Bureau

the company has implemented new rules and protocols designed to keep its employees safe. Employees at the company’s facilities are required to employ social distancing techniques as much as possible.

Waymo will restart its Waymo One autonomous ride service without passengers. It’ll be safety drivers only until circumstances change in Phoenix

The company’s work areas have been spaced 6 feet apart, and the use of common areas has been “redefined.” Waymo also now has placed maximum capacity limits on those spaces. Employees will undergo training in the new protocols when they return, and they will wear face masks while they are in Waymo facilities and vehicles, the company noted. Additionally, the sites have been deep cleaned and, in partnership with AutoNation, will receive multiple daily

cleanings of Waymo vehicles. Not surprisingly, each employee will be screened by an occupational health care provider before starting work. “We’re taking a thoughtful and measured approach towards bringing our driving operations back on the road,” the company noted in a blog post. “We’ll begin driving in other cities in the days and weeks to come, including San Francisco, Detroit and Los Angeles, and the resumption of our driving operations in these locations will similarly be guided by ensuring the safety and health of our team in line with CDC and state and local guidance.” Waymo has had about 1,000 autonomous vehicles testing in cities across the U.S. That number is expected to jump tenfold in the next two years as it and other companies race to be the first to develop a Level 5⸺completely self driving⸺autonomous vehicle. In addition to its Waymo One service, the company started Waymo Via this year for automated trucking and urban deliveries. We thank The Detroit Bureau for reprint permission.

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Car Dealers, Repair Shops Look to Future to Make Up for Business Slowdown in Wake of COVID-19 by Grant D. Crawford, Tahlequah Daily Press

Car dealers and repair shops may have been deemed essential during the COVID-19 crisis, but as traffic patterns slowed in Cherokee County, OK, so did the number of people looking to buy vehicles. “Safer-at-home” protocols means auto dealers haven’t had as many customers lately. For the better part of April, traffic was “way down” at Meredith Auto Group, said GM Cody Tannehill. “With us operating just through online only, that kind of kept traffic down as well,” he said. “Overall, it was a lot slower than normal. I would say through the last week of April and the first week of May, it’s slowly getting back to what we would normally expect.” Essential workers and people needing groceries still need to be able to get around. But the car-buying experience has usually entailed a face-to-face transaction, with potential new owners test-driving and “kicking the tires.” The setting aside of that tradition has presented challenges for dealers as they have to keep their distance from customers and keep the vehicles sanitized. “Definitely keeping the office and the vehicles themselves disinfected was a high priority for us,” said Tannehill. “That’s why we tried to just operate off of appointments; that way we could control traffic that was coming into the store and make sure everything was properly cleaned. It was kind of a different scenario than we’ve faced before, but we’ve been able to handle it pretty well.” Rodney Taylor, of Tommy Nix Auto Group, said business has been down about 25% to 30% since the outbreak occurred. And the need for vehicle service has been the same. There, the staff has also been doing its best to keep the facilities clean and practice social distancing, for the sake of customers and themselves. Car manufacturers nationwide have been shut down for months. Honda was the first company to completely close its plants. General Motors, Ford, Fiat Chrysler Automobiles and many others have also been on hold, with some closures extended indefinitely.

“New cars are certainly going to be affected, because the plants have been shut down for two to three months now,” said Taylor. “Those cars and trucks that would have been produced during that time period are never going to be recovered. It’s eventually going to affect used cars and all of that down the road.”

Paul Williams prepares a vehicle before applying a fresh coat of paint at Port City Body Shop in Tahlequah, OK. Credit: Grant D. Crawford, Daily Press

Parts have been in short supply with manufacturers closed. Although the demand for those items hasn’t been as high lately, many in the trade expect it to become a bigger issue in the coming months. “We purchase vehicles, and some-

times we’ll have to replace various items on them, depending on the vehicle, and we’ll have to order parts for them,” said Tannehill. “I’ve talked to several repair facilities that we use, and they’ve mentioned that some parts, depending on what it is, have been more difficult to get a hold of than others.” Although likely safer, fewer cars on the road means less accidents. Greg Stone, of Port City Body Shop in Tahlequah, said with businesses being shut down and schools closed, the repair shop has seen a decrease in customers. “There’s a lot of accidents going to and from all the schools and school activities,” said Stone. “As far as our industry, obviously we rely on people’s ‘oopses,’ and we take care of people’s ‘oopses.’ Without a lot of people out there, obviously the ‘oopses’ are down.” GM might be in a bigger hole than other manufacturers. In 2019, more than 48,000 GM workers went on strike from Sept. 15 to Oct. 25. Stone said GM was just getting back into the groove of things before it had to shut down its plants due to the virus.

“With them shut down on strike, they depleted their stocks and all your local and surrounding area parts,” he said. “Wrecks kept happening, but there weren’t any more parts to refill the void. Once they were gone, they were gone. So now they’ve done a whole lot of recovery, but if it kind of acts like that again, it will definitely affect everybody. If you can’t get parts, you can’t fix cars.” Like the other businesses, the workers at Port City have been washing their hands, wearing protective gear and keeping the vehicles they service disinfected. They’ve also started offering pick-up and delivery services for customers. Stone said that while business has been slow, they’ve been able to work on other projects that were on the back burner, but he’s ready for things to return to normal. “I anticipate it getting back to being crazy again,” he said. “We’re just trying to maintain and hang on until we can pick back up.” We thank the Tahlequah Daily Press for reprint permission.

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CARSTAR Locations Across CO Offer Free Vehicle Sanitization Services for Front Line Health Care Workers and First Responders As Colorado’s men and women battle on the front lines of the coronavirus as health care workers and first responders, CARSTAR collision repair centers throughout the state are offering free services to help keep them on the road, safe from germs and viruses in their vehicles. “We owe a debt of gratitude to those who are putting their lives on

the line to help face the coronavirus challenge,” said Steve Rigsby, director of business development for the CARSTAR Colorado Business Group. “This is our way of saying ‘thank you’ for their service. We always want to do everything we can to keep drivers safe on the road. Now, it’s even more important that these frontline workers have safe, clean vehicles to get them to work and to take care of their families.” At any of the 10 CARSTAR lo-

cations in the Denver and Colorado Springs areas, first responders and health care workers can receive a free, complete interior and exterior sanitization and disinfectant service for their vehicle. There is no requirement for any additional purchases or repair service with the special offer. Vehicle interiors normally contain many different kinds of surfaces, from leather and metal to rubber and plastic. The virus can spread while sharing air space with an infected person, the surfaces the person touched or even the air space after an infected passenger has left. Some early reports suggest the virus can persist in the air for up to three hours and for two to three days on stainless steel and plastic surfaces. Another study on a related coronavirus that causes SARS found the virus can survive on inanimate surfaces like metal, glass or plastic for up to nine days. To combat this in front line workers’ vehicles, CARSTAR is using a product called Vital Oxide, an

EPA-approved disinfectant and viral sanitizer. The product is commonly used in hospitals, pharmacies, laboratories, ambulances and other virally sensitive environments. The CARSTAR technicians use a process called “fogging” on the vehicle interior with Vital Oxide to ensure total vehicle coverage. The product and process are safe for all vehicle interiors. The procedure also includes: • Fogging all handles, controls and “high touch” areas, both interior and exterior • Physical wipe down of all primary interior controls such as steering wheel, shifter handle, turn signal and wiper controls, window switches or handles, along with any seat adjusters (both front and rear seats) • Final viral treatment wipe down on your vehicle exterior handles, lock cylinders, rear hatch handles and other frequently touched surfaces All CARSTAR team members are

using the EPA and OSHA guidelines for proper Personal Protection Equipment (PPE) including gloves, eyewear, mask and coveralls throughout the process. Health care workers and first responders who want to take advantage of the service should call the preferred location to make an appointment. Participating Colorado locations are available here https:// www.carstar.com/locations/co/ with the exception of Ft. Collins. Participants will need to show their badge or employee ID at time of service. Also, the vehicle must be clean on the interior and free of excessive personal items and debris. The sanitization process takes approximately 30 minutes, and participants can drop off their vehicle for service or wait in the lobby, providing they wear a mask. Source: CARSTAR

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VW Chattanooga Delays Restart; Extends Closing Volkswagen Chattanooga has delayed resuming production scheduled for May 3. Before setting a new start date, Volkswagen will weigh the readiness of the supplier base, as well as market demand and the status of the pandemic. The company will continue the work to start production from an organizational perspective, and refine and strengthen the health and safety measures to safeguard employees.The factory suspended production March 21, prior to stay-at-home mandates from state and local government, out of an abundance of caution. Volkswagen employees and production contractors received full pay and benefits during this time, for a total of three additional weeks of compensation. On April 11, production and maintenance employees were placed on temporary emergency furlough. Furloughed employees continued to receive health care benefits and coverage of premiums during this time. Source: Volkswagen.

OK Auto Shops Lose Business in Face of COVID-19 by Chelsley Oxendine, The Muskogee Phoenix

COVID-19 and social distancing measures have slashed into business at Collision Center of Muskogee in Oklahoma, said shop manager Mel Dyess. “We definitely have been drastically affected by it. Fortunately no health issues, just business itself⸺ we’re getting maybe two phone calls and getting one to three a week versus 10 to 15 a day. Foot traffic has come to a halt,” Dyess said. “Considering our total monthly business, we’re down 85% of what we should be.” Other auto shops reported similar drops in patronage, like Port City Auto Body Shop’s Robert Lawson, who said the shop had lost roughly half of its business. “That’s just due to people staying home like they should, and not driving. That has definitely impacted the amount of jobs and amount of work we have right now,” Lawson said. “We haven’t had to let anybody go at any of the locations.” Mark Wiseman of Discount Tire said recent economic stimulus efforts had slightly bumped his busi-

ness, which had otherwise dropped by 35%. “Since the stimulus money has come out, we’re a lot busier than we were before, so that’s helping out,” Wiseman said. Lawson said the biggest hit might not have been to his patronage but his supply chain, however. “As far as the main thing affecting us, it’s delivery of our parts,” Lawson said. “General Motors is operating at about 25% capacity, so we are struggling getting parts. That’s probably the main thing that I’ve found as far as being able to do our jobs.” All three shops reported taking distancing measures to keep their customers and their employees as safe as possible amid the COVID-19 outbreak. “We’re now a closed, touchfree facility. Everything’s done over the phone. Before we move a car, period, it is disinfected on the spot,” Dyess said. “When we’re finished with the vehicle, we go through and disinfect it again. We’ve got sanitizing and disinfectant everywhere. We’re wiping down multiple surfaces a day.”

Wiseman said the measures meant customers didn’t even get out of their cars sometimes for fear of catching the virus. “We’ve got our distancing deal going and we’ve got our waiting room chairs spread way apart. We’ve got our bed covers in front of our counters so people stay back while we’re waiting on them,” Wiseman said. “We use a lot of hand sanitizer, too. After we handle the money we try to use hand sanitizer, and after we drive cars we use hand sanitizer, so we don’t spread it. Our computer and cash registers are cleaner than they’ve ever been.” Even the paperwork at Port City Auto Body shops has gone digital, Lawson said. “The office doors are locked, and so we are encouraging people to call for estimates. We do not come in contact with the customer at all,” Lawson said. “Once we go inside and write the estimate, we’ll email or call with it. We’re not exchanging paperwork back and forth.” We thank the Muskogee Phoenix for reprint permission.

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helping them strategize and put totheir package, they were able to Purchase of Fix Auto USA gether go to market with a coherent approach to potential buyers. I believe that’s one Some time ago, Erick, Paul and of the reasons they got the deal done, I started talking about their invest- even though we went from being in ment in Fix Auto USA and the best collision repair envithe way in which Fix USA ronment to maybe one of the was gaining momentum. worst. While Fix USA was deIt’s something we feel livering great value to its very proud of, but also at the franchisees, many of them end of the day, we are helpwere looking for additioning people who have investDavid Roberts, al capital or ultimately an ed a lifetime of effort buildexit strategy. Erick and managing director of ing a wonderful business and FOCUS Advisors, Inc. Paul saw an opportunity to now they get to realize some provide financing solutions to those of their rewards. franchisees through external capital sources. With so much uncertainty goDuring this time, Fix USA coning on in the world and the tinued to be regarded as a real class collision repair industry due to the act in the industry. Since its incep- pandemic, how does a deal of this tion, they invested in excellent sys- magnitude get accomplished? tems, leadership and helping shops upgrade their operations. Insurance We are all in the midst of this companies really trusted them. completely unforeseen, unWhen Paul, Erick and Shelly be- precedented time. However, we have gan to evaluate outside capital options, demonstrated that a good transacthey engaged us to represent them. We tion can actually get done. In fact, wrote a business plan and identified our belief is that things aren’t totally possible capital sources. After ap- collapsing at least for a big segment proaching a number of potential in- of the economy and certainly for vestors, Roark [Capital] and Driven our industry. We are very pleased to Brands showed the most interest and have a successful transaction for our eventually decided they wanted to client. own the entire firm. But no transaction is ever done What will the future hold for until the day it closes, and in this case, an independent shop owner? the day it closed was April 21, 2020. Currently, there are thousands Please tell us about FOCUS of single shops and small MSOs Advisors and your involve- across the country. They operate in ment in the transaction. different communities in unique situations, and have built prominent FOCUS Advisors serves au- businesses in their respective areas. tomotive aftermarket owners Many of these business owners want who are looking for advice and rep- to continue operating because they resentation about their future pos- are very successful and love what sibilities. We advise our clients about they do. growth and sale options and then repreAt the same time, everybody recsent them in mergers and acquisitions ognizes the need to be better at what or capital formation transactions. Over they do and one of the ways to do this the last five years, as managing direc- is getting together with other successtor of FOCUS and a prior firm, we’ve ful business owners. completed more than 22 collision and It doesn’t necessarily mean you paint distribution transactions. have to sell out. You can be part of What we do is help our clients a group and still stay independent. figure out what they really want and For example, franchise systems work with them to achieve that goal enable independent operators the in a really organized and well-docu- opportunity to participate in an ormented, well-articulated fashion. ganization larger than themselves, In this case, having known Er- while still maintaining their indeick and Shelly and Paul for years and pendent ownership. Continued from Cover

Q:

A:

Q:

Q:

In a changing landscape, how can independent shop owner compete?

A:

I have tremendous admiration for the people in this industry. They are some of the smartest, most creative and successful entrepreneurs that I know. But the landscape is constantly changing and getting tougher and tougher for small independents. The reality is that a two-shop operator who is competing against Caliber Collision, Gerber and Service King is going to have a tougher time unless they get more specialized, or closer to insurers, dealers or focus on particular brands. The alternative is to join other folks and get bigger yourself. We have clients around the country who have literally gone from a two-shop $10 million operation to an eight-shop $40 million operation in the last four or five years. They are figuring out how to do it on their own through retained earnings, paint rebates and some borrowing. As a result, they are getting bigger and more sophisticated and are delivering better service. They are not the only ones finding unique ways to

grow and stay relevant.

Q: A:

Do you have any concluding thoughts?

As an industry, we will recover. But it will change how we do business in ways we cannot now foresee. So stay safe, keep your family safe, conserve cash, take care of your customers, your referral sources and your staff. This is a condensed version of the full article, which can be found online at www.autobodynews.com. For more information about FOCUS Advisors, visit https://focus advisors.com/ or email David Roberts at david.roberts@focusadvisors. com. For more information about Driven Brands, visit https://www.driven brands.com/.

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Q: A:

A:

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Continued from Cover

1,000 GM Workers plant. GM shares those safety concerns, admitting it has been difficult to redesign some areas in its facilities to allow for social distancing. “There are areas there, and in all our plants, that have challenges,” said Kent Eaton, GM’s North American manufacturing workplace safety boss. “But the safest place I felt in Arlington, was at the plant. I wish all those people at Meijer’s would follow the rules. But, I had no concerns at Arlington or about what we’re doing in any of the plants.” Eaton would know. He is part of GM’s Global Safety Organization and he spent two weeks at Arlington testing and tweaking safety processes to adopt when GM restarts production. Since implementing those processes starting in late March, the Arlington workers, mostly volunteers and contract workers, have been healthy. GM spokesman David Barnas said GM had “a small number of coronavirus cases [at Arlington] before its current extensive safety protocols were fully implemented, including face masks.” On April 30, GM made public its 48-page Global Safety Playbook. The book was written by Eaton and the team in GM’s Global Safety Organization. The playbook will help plant leaders prepare to return to work even though GM has not declared a restart date for its plants. The playbook is a training guide relying on procedures GM used in its plants in China and at its current medical face mask production facility in Warren, MI, and critical-care ventilator production plant in Kokomo, IN. It also contains some best practices Eaton learned in Arlington. When GM, along with Fiat Chrysler Automobiles and Ford Motor Co., said it would idle U.S. plants March 23, GM’s Arlington did not shutter until early April. The plant, located between Dallas and Fort Worth, ran for a couple of weeks, on a paid-volunteer basis so it could finish building the previous generation GMC Yukon, Chevrolet Tahoe and Cadillac Escalade

SUVs. Then, contract workers and GM skilled trades employees came in and have been retooling the facility to start building the redesigned 2021 models of those vehicles. Meanwhile, Texas’ stay-at-home order expired April 30, allowing all retail stores, restaurants, movie theaters and malls to reopen, allowing in 25% of their listed occupancy. Michigan’s order is due to expire May 15. That had some workers worried, because if GM restarts Arlington in the next few weeks, it won’t be retooled and redesigned for social distancing. “They have a new body shop and a new paint shop, so in those areas it’s more spacious,” said an assembly line worker at Arlington who asked to not be named for fear of losing his job for talking to the media. This worker said the plant is being updated in sections with some areas more suitable to social distancing than others. “But in the trim and chassis area, there’s no way you can do 6 ft.,” the worker said. “The jobs are so close in proximity and you’re walking back and forth in front of each other.” Eaton boarded a private flight in Detroit on March 23 with 10 GM engineers. They headed to Arlington to oversee the final production of the previous-model SUVs and to start the retooling process to build the redesigned 2021 vehicles. Eaton had another motive: He wanted to test GM’s early initiatives to protect workers from COVID-19. “My thought going to Arlington was that I wanted to see them in action,” Eaton told the Free Press. Roughly 1,000 workers had raised their hands to finish the SUV production, a far cry from the plant’s usual 5,000-man workforce, but enough to see whether protocols such as body-temperature screening, face masks, health screening questions, new cleaning process, limited job rotations and social distancing would work. “We could witness them working versus us trying to envision how they would work,” said Eaton, who met with the union’s Hines every few days during his two-week visit. “We looked at the high-contact areas of where people would gather when Arlington is at full speed and

has 5,000 people in the plant and asked, ‘Can we get them in and out safely?’” Eaton said. The initiatives are modeled in part after GM’s Kokomo, IN, plant where workers hand sanitize upon entering, have their temperature scanned, review health screening questions all before entering work to make ventilators. Once inside Arlington, each worker was responsible for cleaning their work area and tools at the start of their shift. A formal and informal validation process helps keep workers following safety initiatives, Eaton said. Therefore, managers walked the floor at Arlington, reminding people to keep their masks on or hand-sanitize. “The biggest challenge was when people weren’t working,” Eaton said. “Human beings tend to come together. If the line went down for a few minutes, we’d find six or eight people who work 30 or 40 feet from each other, come together. Or I’d watch people in the parking lot congregate.” It will mean a lot of coaching, reminding and educating, which GM

will do through direct mailings to workers, social media and training on the job when the factories restart, he said. “We know people will take off their masks, they have to eat and drink; that’s when we exercise the other protocols,” Eaton said. “So 6-ft. distancing is more critical then and washing your hands when you’re going to eat—that becomes more critical.” Also critical was that employees know when common areas have been cleaned, so GM started putting up signs in restrooms and break rooms that said the time the area was last disinfected. “You’ve got to address people’s concerns. You’ve got to demonstrate,” Eaton said. “If you do all your cleaning on the third shift and the first shift doesn’t know about it, it doesn’t do any good.” One of the biggest lessons came in improving how GM was implementing the safety steps. For example, the distribution of face masks to employees. “We’d put together a great process and were high-fiving each other

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that ‘we’ve got this,’” Eaton said. “Then we had 900 people report to work at once and we realized we didn’t have it down.” Eaton got more people to distribute masks and now has a “Kleenex-like dispenser where a mask pops up.” Beyond the actual safety protocols, Dr. Jeffrey Hess, GM’s corporate medical director, researched the virus itself and will educate workers on its true risks. “This virus is mainly airborne,” said Hess. “So most likely it’s contagious when people come into close contact with another and share the same air space and inhale it.” Catching the coronavirus by touching something someone else touched, say a vehicle traveling down an assembly line, is possible, but not likely, especially if workers regularly wash their hands and avoid touching their face, Hess said. “This isn’t absorbed through the skin,” Hess said. “The real risk is what’s coming through the air.” That is why wearing face masks and social distancing are the best ways to combat it. Hess said GM’s

plants in South Korea have been running throughout the pandemic and “we never had a case there yet.” But he said all workers in South Korea wear face masks and they wash their hands consistently. Still, the UAW has said early May is too soon to safely restart factories. UAW President Rory Gamble has said the only litmus test that should matter is whether a person would feel confident sending their child or family in to the plant. Hess said he’s done just that. “My son went to Kokomo. He’s an engineer for GM. He called me and asked if I was concerned he was going and asked what he should do to protect himself,” Hess said. “I told him all the protocols we put in place. I would never want anything to happen to him, but I was very comfortable with him going there.” But for local union boss Hines, caution still rules and the meetings will carry on. “We’re looking at the proposals and the CDC guidelines,” Hines said. “Then, we’ll go from there.” We thank the Detroit Free Press for reprint permission.

Bates Collision Centers Donates Time and Resources Bates Collision Centers, the collision repair center of “choice” in the Bay Area of Texas with locations in Baytown and Channelview, is helping support and protect local

shops in an effort to keep their customers and team members safe and healthy. Bates Collision Centers was founded in 1990 by Lee and Leila Bates, and is dedicated to making a difference in the lives of others by being a proud supporter of the communities and individuals it serves (www.BatesCC.com). Source: Bates Collision Centers.

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GEICO Files Another AOB Fraud Lawsuit—This Time in AZ by Emmariah Holcomb, glassBYTEs.com

Government Employees Insurance Co., GEICO Indemnity Co., GEICO General Insurance Company and GEICO Casualty Co. (collectively GEICO) filed a complaint in Arizona Federal Court against defendants Auto Glass Express (AGE) and its owners and managers, Danielle Dean and Saxton Lafasto, for an alleged fraudulent scheme. The insurance company claimed the defendants “improperly obtained $950,000 from GEICO through the submission of thousands of fraudulent or otherwise non-reimbursable insurance claims.” According to the complaint, GEICO sought to be reimbursed for windshield replacement services that were allegedly provided to its insured customers. GEICO wants to recover financial damages under the civil Racketeer Influenced and Corrupt Organizations Act statutes. In addition to money damages, GEICO is seeking a declaration that it is not legally obligated to pay reimbursement of more than $45,000 in outstanding claims for windshield

replacement services that have been submitted by the defendants through AGE, according to GEICO’s complaint. GEICO provided the following rationale as to why AGE’s auto glass claims should be seen as fraudulent: The case involves charges for illusory windshield replacement services that were never legitimately performed or provided; and Services were non-reimbursable because AGE never obtained assignments of benefits (AOB) from insureds. The alleged fraudulent scheme began in 2018 and continues to the present day, according to GEICO’s complaint. “The defendants do not now have—and never had—any right to be compensated for the windshield replacement services that they billed through AGE to GEICO,” a portion of the complaint reads. AGE and its owners, Dean and Lafasto, responded to GEICO’s complaint. “Defendants admit only that GEICO seeks to recover more than $950,000 and oppose the request and deny the remaining allegations,”

a portion of the defendant’s response reads. In addition to denying the fraudulent allegations, the defendants filed a counter lawsuit against the auto insurance company, alleging it “has a preferential relationship with Safelite Group, Inc. (Safelite) and attempts to direct its insureds to Safelite for windshield replacement services.” Dean and Lafasto are looking to recover financial damages, according to their response to GEICO’s complaint. The presiding judge ordered a telephonic case management conference for the ongoing lawsuit. The conference is set for June 3, where GEICO “shall initiate the conference call by arranging for the presence of all other attorneys,” according to court documents. Following the conference’s conclusion, both parties will have developed a joint case management report. Look to a future edition of glass BYTEs for continued coverage of the suit. We thank glassBYTEs.com for reprint permission.

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Continued from Cover

Women of the Year Award Nominations Sought

Industry Braces for Impact

Women in Auto Care, a community of the Auto Care Association, announced it is accepting nominations for the 2020 Women of the Year Awards. The Women of the Year Awards include “Auto Care Woman of the Year”, “Female Shop Owner of the Year” and “Auto Care Woman of Excellence,” and highlight women who have made a significant impact in the auto care industry. Award recipients will be honored at the Women in Auto Care press conference and reception during the 2020 Automotive Aftermarket Products Expo (AAPEX), taking place Nov. 3-5 in Las Vegas, NV. The deadline to submit nominations is June 26. For more information, including full entry requirements, visit autocare.org/women-in-autocare and click on the “Awards” tab. Source: ACA

ings. “This includes a decrease in reservations as travel has come to a standstill.” That standstill in reservations is highest at rental locations based at airports, said an industry expert. “Our business is down somewhere between 50% and 75% on average at the airport locations,” said Greg Scott, with the American Car Rental Association. Scott said neighborhood branch locations are seeing a decline in customers, but not at a rate as high as what the industry is seeing at airport branches. “There are people who are in accidents and need an insurance replacement vehicle,” he said. “And there are always people who don’t have a car and need one.” Scott estimated that a typical day for a branch would be having roughly 70% of available cars out for rent. “If 90% of them or 80% of them are are not out on rental, all of a sudden you’ve got a huge parking prob-

Continued from Cover

NIADA Survey only. Just 11% remain closed temporarily—down from 27%—and one percent reported they have closed permanently. “I am encouraged that the COVID-19 pandemic hasn’t put more dealers out of business permanently, as was originally feared,” NIADA CEO Steve Jordan said. “Recovery and signs of life are showing, as 88% of dealers are open for business, with almost half open for ‘business as usual.’ “Unfortunately, open for business as usual doesn’t always mean sales have returned.” Indeed, sales remain below preCOVID levels for most dealers—53% of the respondents said their sales were down 50% or more for the previous two weeks. Twelve percent of dealers said their sales were back to normal levels and 6% said sales were actually better than before the pandemic. Rebuilding sales and customer

lem,” Scott said in an interview with News-Press NOW. “That’s been reported by a variety of media sources.” With an excess supply and a decrease in demand, car rental giants have announced massive layoffs and furloughs. Late last month, Hertz said it plans to lay off some 10,000 employees in North America. Meanwhile, the world’s largest fleet of rental vehicles, Enterprise Holdings, also announced a series of furloughs and layoffs. Enterprise Holdings is a privately held company that owns the rental brands Enterprise, Alamo and National Car Rental. Enterprise realized the layoffs were necessary because of the extension of some local shutdowns and recent extension of federal guidelines on social distancing, the company said. Some layoffs began March 23 while others began last week. The layoffs will affect Missouri employees in several jobs and locations, including at company headquarters in Clayton, MO. It wasn’t clear if either Enterprise, Hertz or Avis-Budget was laying off any St. Joseph employees.

Regardless of the uncertainty the car rental market faces, the industry has been deemed as essential by the U.S. Department of Homeland Security and remains open for business. “We remain open and are committed to helping serve these critical transportation infrastructure needs during this challenging time,” Martini said in a statement to News-Press NOW. “While we remain open for business, we have modified our offerings at some locations for the benefit and well-being of both employees and customers. Part of these temporary operational changes, include curbside rental transactions at our open branch locations, as well as delivery, to promote social distancing.” There are an estimated 1.3 million rental cars currently in circulation in the U.S., according to Scott. The Associated Press contributed to this report. We thank News-Press NOW for reprint permission.

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traffic is by far the greatest challenge currently faced by independent dealers, cited by 38% of respondents. That’s twice as many as the second choice, access to inventory at 19%, which was followed by funding and access to capital at 17%. The funding issue has been lessened for some dealers by government relief programs such as loans from the Small Business Administration’s Paycheck Protection Program. The survey found 64% of dealers have received some sort of federal or state government funding. Of those who have not, 28% have applied and 4% have been approved. Another 8% said they were approved but told there was no money available. To view the complete results of the NIADA COVID-19 Dealer Impact Survey, visit covid19.niada.com. Source: NIADA

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Half of an Uproar with Hail-Damaged Vehicles in Laurel, OK by Mark Thornton, Laurel Leader-Call

The mayor and safety officer of Laurel, OK, are unfairly taking a beating for their handling of getting repairs to hail-damaged city vehicles, Chief Tommy Cox of the Laurel Police Department and other city officials are saying. He said the company that was used, Oklahoma City-based Hail Star Paintless Dent Repair, was significantly cheaper and faster than the estimates of local auto body shops. For two brand-new LPD vehicles that were seriously damaged in the March 4 hailstorm, the cost was going to be $5,000 more each, Cox said. And because of the volume of vehicles that were damaged across the county, repairs were going to take more than a month, Cox said. Hail Star PDR, set up near the intersection of Highways 84 and 15, guaranteed to have vehicles repaired within two weeks. “Everybody would rather use local,” Cox said, “but a lot of them were overrun and it was going to take too much time. We needed our vehicles back in a timely manner. “If we spent an extra $5,000 per vehicle, people would say we didn’t spend the taxpayers’ money right. We have to balance shopping local with what we can afford.” Harold Russell, head of the city inspection department, responded on Facebook that his department’s vehicles were taken to a local shop in the county, but it couldn’t compete with the out-of-town professionals. “You have to embrace that the City got the work done at the most competitive price,” Russell wrote, noting that all of the out-of-state companies “bought privilege license(s) just like the local folks.” Russell also wrote a man whose business is in the county was “raising sand that he didn’t get a chance at the business but the vehicles were taken to local businesses first.”

Thomas Rogers, owner of Roy Rogers Body Shop, just outside the city limits, said his company was not contacted by city officials. He said he checked with 10 local shops and only three had looked at or written estimates on any city vehicles. None repaired any city vehicles, he said. Most major insurance companies were not accepting body shop estimates because they were writing their own damage reports and telling shops to use those to start repairs, he said. “I was told that the person who brought the city vehicles for estimates refused to disclose the insurance damage report,” Rogers said. Mayor Johnny Magee was contacted after the Leader-Call got complaints about local companies not getting a chance to bid on the work. In a story published April 30, he responded he was out of office at the time of the storm after having back surgery. City Safety Officer Sandra Hadley hired the company, saying it could save the city thousands of dollars, and he OK’d it, he said, admitting he didn’t recall the conversation because he was on physician-administered pain drugs at the time. Magee said he had no reason to doubt Hadley’s recollection of events. Hadley sent city vehicles to two local companies first and their quotes ranged from $2,000 to $5,000 more than the insurance company issued. With 31 vehicles damaged in the hailstorm, that would have been “almost or over $100,000 that the city would’ve had to come up with in order to use the locals,” she wrote in a Facebook message. That’s when she decided to check into a couple of the half-dozen or so out-of-town companies that had come to her office wanting the job. Hail Star PDR “accepted what the insurance company gave and the city didn’t have to pay not one dime,” Hadley wrote. She also pointed out the local

companies were going to take “a few months … to complete the job” and the company she chose took two weeks. “I got the work done at a more competitive price, tax dollars stayed in the city, and the work was OUTSTANDING,” she concluded. Russell agreed, writing he went over his city vehicle “with a fine tooth comb and it appeared to have never been hit with a single hail strike. The inside was detailed to look showroom floor new. I was impressed with the quality of work.” Leslie Hicks, with Hail Stars PDR, said she was impressed with Hadley and the time and care she put into “making sure she made the correct choice” for the city. “I thought it was unfair for the Mayor and this article to throw her under the bus when she worried so long about making sure the City vehicles and the City was taken care of,” Hicks wrote. “We were chosen because of our ability to do the repairs correctly, quickly, and to not cost the City any extra money.”

Hicks also noted that her out-oftown company is using a local detail shop, a local glass company and local auto dealerships to buy parts while spending money for housing and food while they’re working here. “We hired local companies and local people, keeping money in the city,” Hicks wrote. “We are here to help the community after a catastrophe, because that is what we specialize in.” Rogers said the 10 or so local shops could’ve “spread out” the repairs and that money would have gone to the 100-plus owners, employees and their families who live and shop in Laurel and Jones County. He also asked what the city will do if issues arise with the repairs, such as cracked paint, dents that were overlooked or rust that may appear where holes were drilled. “Who will the city go to for these possible problems?” he asked. “The out-of-state vendors will be gone with our taxpayer money.” We thank The Laurel Leader-Call for reprint permission.

Call or Email Now for Rates: AUTOBODY ltedesco@autobodynews.com

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

NEW MEXICO

TEXAS

Mike Maroone Honda

Garcia Honda

Honda of Frisco

Rusty Wallis Honda

888-431-0294 719-785-5045

800-677-6632 505-260-5002

866-442-2711 972-731-3176

877-466-3272 214-328-3891

Colorado Springs

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

Mile High Honda Denver

800-548-4730 303-369-7800

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

Albuquerque

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

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

Northside Honda

800-943-4227 504-368-5687

800-727-8705 210-340-0831

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

Walker Honda

Honda Cars of McKinney

318-448-8255 318-445-6677

972-569-4276 972-569-4222

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

Honda of San Marcos

Wholesale Parts Direct

866-392-1313 512-392-1313

800-234-4441 512-458-2910

San Marcos

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

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

Odessa

844-453-5594 432-334-6632

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

McDavid Honda Irving Irving

800-492-4464 972-790-6003

McKinney

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

Austin

Kelly Grimsley Honda

San Antonio

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

Alexandria

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

Lewisville

800-344-8611 972-219-0021

Dallas

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

Bankston Honda

Superior Honda Harvey

Frisco

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

ACURA ARIZONA

LOUISIANA

TEXAS

UTAH

Acura of Peoria

Acura of Baton Rouge

David McDavid Acura

Jody Wilkinson Acura

866-347-4507 623-792-2559

866-733-2861 225-756-6166

800-575-3553 512-401-5976

800-234-0875 801-323-0492

Peoria

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

Baton Rouge

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

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

Walker Acura

David McDavid Acura

Mike Hale Acura

800-359-8555 504-465-8555

972-964-6044

800-292-4595 801-263-0202

Metairie

Mile High Acura Denver

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

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

Autonation Acura

800-456-9568 719-955-1715

800-749-6227 713-371-4700

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

Plano

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

Sterling McCall Acura

Murray

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

Houston

TEXAS

Pikes Peak Acura Colorado Springs

Salt Lake City

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

COLORADO

800-548-4730 303-369-7800

Austin

League City

713-596-2337 713-596-2338

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

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

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Hey Toby! with Toby Chess

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

Kool Tools from SEMA 2019 your compressed shop air into an endless supply of both regulated & high pressure nitrogen. PLUS you can also fill your customer’s tires with beneficial nitrogen and/or safeguard the internals of your pneumatic tools by powering them with nitrogen from the EZ Nitro Generator! The next item we found was stand-alone measuring system, from Accuvison 3D.

It is that time of the year again for was from Reliable Automotive EquipKool Tools of SEMA (6th edition). ment. Kye Yeung, Amber Alley and I walked the floor of SEMA (2019) to find more Kool Tools. As in the past, we found some interesting and unique tools that can save your and your shop with time and money. The David first itemMcClune we found was from Time Shaver.

California Autobody Association Fig. 3 - www.raeservice.com

The MEC600 pneumatic milling cutter tool has been designed to open welding seams for easy removal of the outer panels. The adjustable guide of the cutter allows the MEC600 to be easily adjusted to different anguFig. 1 - www.TimeShaverTools.com with John Yoswick lar positions of the metal sheets and They have a fantastic set of sand- no damages by preventing the cutter ing blocks. You cut up 4 sheets of from slipping off the edge. You can sand paper from 9”x 11” and attach all vary the depth of cut so that it does 4 sheets. As the top sheet becomes not damage parts under the part that worn, all you have to do is tear it is being cut. There are no spark and off and a fresh sheet is available. can move around tight spaces such as All metal parts are constructed from the tail lamp pocket. I would highly stainless steel, which will not rust. recommend that you go the RAE web They are contoured to fit your hand site and watch the demo. The forth and they come in 4 colors to fit dif- item we found (Kye purchased this Steffen ferent grit sandwith paper.Richard Finally, the tool) was from Glasbot Quarter Masspring locking device cuts end waste ter. by nearly 40%. The next product is from Evercoat.

Year in Quotes

Fig. 5 - www.dentfix.com

gen plastic welders sit a corner collecting dust. One of the biggest reasons is that there is no Nitrogen gas available. Well, the problem of getting a full tank of gas has been solved by Dentfix. Upgrade most brands of Plastic Welder with the DF-EZG1 EZ Nitro Generator and “Ditch the Bottle”, Never Run out of Nitrogen AGAIN! Dent Fix’s revolutionary Dual Chamber Separating System transforms

Fig. 6 - www.accuvision-3d.com

The system easily measures upper and lower body as well as openings

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Transition Planning with John Yoswick Fig. 2 - www.evercoat.com

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Optex Super Build 4:1 Primer Glassbot® QuarterMaster Anchor highlights dents, low spots, scratches, one end of cutting element to body of and other surface imperfections while QuarterMaster, insert the other end of at the same time eliminating the need the cutting element into the throughfor messy carbon black powdered bore in shaft. Attach Tip Extension to guide coats. This 4:1 primer sprays shaft and rotate the shaft to remove the on pink and turnswith gray asKaryn it is sanded, window. You can even save the plastic Hendricks revealing high spots while low spots locating pins that always break when and scratches remain pink. It does take using other removal tools. Next up is a a little longer to dry than conventional Nitrogen generator from Dent Fix. primer (It was tested by Kye’s per- As I go into a number of shops on sonnel). The next product we found a daily basis, I notice that their Nitro-

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26 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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such as door, window, trunk, etc. No additional accessories or adaptors are required to assemble for Upper-body measurements. Simply point and measure with the hand held pointer in 3D. No inconvenient rulers/gauges or tape measures. The system consists of only 2 units: Pointer and Measuring beam (stereo camera). There are no complicated mechanical assemblies, no gauges, no adaptors, no sensors, no magnets etc. You don’t need to spend precious time for installation and calibration of the system. Cameras track the position of the pointer and immediately indicate exact coordinates of the measured point and its deviation from the database. Camera and stand can be moved easily as needed to measure for an estimate or repair. Just tilt on its back wheels and move the system to where you need it. The database includes schematic and pictorial information about control points for upper and lower body of any vehicle found in the Mitchell database. Once you measure, results can be displayed in red (out of spec) or green (within spec) points with direction and magnitude of pull for correction. A table of XYZ axis on the

side of screen shows the variances in mm against the database. The results can be saved in PDF format, emailed or printed. Moving on, the next item was an adjustable wrench from Irega.

Fig. 7 - www.angloamericantools.com

This wrench is made in Europe and works like no American made adjustable wrench. A Reversible Jaw with Xtra Capacity allows working with bigger diameter nuts and pipes with the same adjustable wrench.

Fig. 9 - www.csishine.com

Fig. 8

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

Phone:

Remove the adjustable arm and reverse it and now you have a pipe wrench. I tried it on a 1 inch pipe first tightening the fitting with two pipe wrenches and loosening the fitting with one pipe wrench and this tool. The wrench has two scales— metric on one side and inches on the other and there is no “slop” with this tool when compared the rest of the adjustable wrenches on the market. I have been using the wrench as a go to tool first in my home shop. Next up, a one product cutting and polishing product from CSI Ceram-X.

866-645-4986 866-645-4986

• Helpful Staff • 30+ Years Experience

Kye turned me on to this product while we were walking the show. The company had a booth way off the beaten track at SEMA. I watched the demo and it was interesting, but I had reservations about it. First, you only need on product for cutting and polishing (Traditional method, 3 products, 3000 grit sand paper and three pads). Right!!! The owner sanded a black hood with 600 grit sand paper (owner recommends 1500 grit paper) and was able to remove the sand scratches with the wool pad. He followed up with the same product and a foam pad. When it was done, I was amazed that there were no swirl marks and the shine was fantastic. I followed up with him at a

shop in Southern California and tried it myself and it works as advertised. The end result is 40 percent reduction in time and materials. Going forward on our quest for new products, we found an aluminum hot box from Beteg. It has always been a challenge to repair aluminum panels due to its material characteristics using any type of repair method. The Alu T-Hotbox is using the material characteristics to its advantage and makes the reparability very simple. The extreme thermal expansion characteristics of the material and activating it locally makes the repairs fast and easy. In the first stage the tool measures the resonance frequency of the tool in resonance with the material. Every aluminum panel has its own and different frequency. Than it adjusts itself to the optimal frequency and activates the material. This activation allows the material to realign itself. To get the most out this piece of equipment, I highly recommend their training course. My next product found at SEMA is Hot Box from Solderweld.

Fax:

832-442-5174 832-442-5174

Fig. 11 - www.Solderweld.us

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

Fig. 10 - www.beteginnovation.com

As a non-toxic, heat absorbing putty, Hot Block will block direct and conductive heat transfers of all types of surfaces and metals. Stops all transfer of heat down from 3000 degrees and one half inch from heat source. It is perfect for stopping warping when

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welding on flat panels and body work. Best of all, it is 100 percent reusable. I used this on a sail section of a quarter panel and there was not warpage when I was finished welding. Moving on to the next Kool Tools was from Vampire Tool Company.

Fig. 14 - www.djsfabrication.com

& Clean Tool makes it faster and easier to clean any glass surface. Imagine having an extra 14 inches of reach – that’s exactly what the Reach & Clean

Fig. 12 - www.vampiretools.com

Have you ever had a Philips screw strip out when trying to remove it? We all have. What do you do? Vampire tool has the answer. There first tool is a Philips screw extractor kit. The number one bit will extract most damaged screws, but if it does not work, then the number two bit will most likely work.

Fig. 15 - www.amazon.com

Tool gives you! The long handle and pivoting cleaning head gives you easy access to the far corners of your windshield or back window. Amber’s second pick was from SATA.

a new pulling device for creases. Wide Pass-Through Adapters - create twice

Schulenburg (SCRS Board member and Executive Director respectfully) added more items and placed the 1000 item list on the SCRS web site and it

Fig. 17 - www.kecotabs.com

Fig. 18 - www.SCRS.com

the lifting power spread evenly across tabs. Adjustable Precision Crease Pull Plates - hold metal down while focusing lifting and reducing time spent on corrective blending and knockdown sessions. Dead Center 7mm Centipede Crease Tabs - targets smaller creases without sticking and over pulling the crown. I actually used this on an aluminum hood and repaired the crease with very little effort. Great add on tool from Keco. My last Kool Tools of SEMA 2019 is from the Society of Collision Repair Specialist (SCRS). Twenty years ago my friend, the late March Taylor, and I put together a 600 item list of non-included operations for the collision repair process. We shared with our friends and two gentlemen, Barry Dorn and Aaron

was free for anyone in the collision industry. SCRS and NuGen It collaborated last year to take the non-included list and have it open up on an estimate to show all these items on a pop up. It has the ability to be added to the estimate as separate line items. The program immediately identifies overlooked repair operations and dollar amounts. Finally, the tool received the SEMA New Product Award and 2020 SEMA Global Media Award. Pretty KOOL! Well that’s it for the Kool Tools SEMA 2019. Visit these companies’ web sites for videos on their products. You will find them informative and a better understanding how they work. The three of us are looking forward to walking the SEMA floor for more Kool Tools in 2020.

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Fig. 13

The extraction/linemen’s pliers have a unique set of grooves on the jaws that allow you to grab virtually any type of screw head (won’t work on counter sunk screws) for easy removal. I bought of them and they really work. Going forward, Kye found an add on to the DJS Fabrication’s car dolly. DJS Fabrication added a “link adapter” to car dolly system. The link adapter adds stability to their system, which in turn allows for easier movement of the disabled vehicle. The next two items were found by Amber. The Stoner Invisible Glass Reach

Fig. 16 - www.sata.com

SATA has introduced the Ladies Pro-Series Women’s paint suit, the first paint suit tailor-made for women in the paint industry. This new paint suit was first showcased in the SATA booth at the 2019 SEMA Show. Next on my list is the crease killer from Keco Tabs. We featured the Keco Tab hot glue dent pulling system in Kool Tools of SEMA-2018 and they added

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OE Certifications Update 2020—Part 2 of 2 by Gary Ledoux

In last month’s edition of Autobody News, we began looking at OE shop certification programs, with three shops participating in several different programs for some time, and two consultants involved with many certified shops, fully familiar with the concept and with a broad view of the industry. We continue that conversation here. Do you think the OEMs need to do a better job helping certified shops promote themselves as such, and drive more customers of that brand to the certified shops? Chad Eldridge of Majestic Auto Body in Idaho said the OEs should do a better job of promoting their certified shops, especially when the shop first becomes certified, to help get them started. Terry Mostul of Artistic Auto Body in Oregon noted, “All the programs have a shop locator, which is fine—but there’s more that they could do.” “There are two things OEs should do,” said Mark Olson of Vehicle Collision Experts. “The first is receiving the first notice of loss. This way, they could give the customer a choice of OE certified shops, so the job gets done right and the brand is protected. “The second thing is to restrict certain repair parts to only certified shops. This will add validity to those shops and again, ensure a proper repair.” “From a shop’s perspective, especially in a DRP world, they pay to be on a certification program, or invest and qualify, the expectation is to get work driven to the shop’s door,” said Ron Kuehn of Collision Business Solutions. “I truly believe the OEs will eventually be able to help get the vehicles to the network. “However, the network needs to be properly trained, equipped, and have a culture to actually repair vehicles to the required OE standards. The OEs have to be able to monitor the network to make sure that the certified shops are actually doing what they’ve been entrusted to do,” Kuehn continued. “In my opinion, promoting the OE certified network will happen. The primary focus for both

the OEs and the shops [should be] to get the vehicles repaired safely and properly for the vehicle owners and their families.” If you could get all the OE certification program managers in a room at the same time, what would you tell them, or what would you ask for? Eldridge favors online training for body shop technicians. “In-person training is fine for managers or shop owners,” he said. “But to send a tech to school is very expensive when you figure not only travel cost but productivity loss. Online training is the way to go for techs.” “We need better communication between the shops and the OE,” Mostul said. “Honda does a good job with this because they have their own field people.” “I would ask where will they go next?” said Josh Fuller of Fuller Auto Body in Massachusetts. “How can we focus our efforts?” Both Olson and Kuehn agreed OE dealers need to be better informed on the technology of ADAS systems, and the concept and focus of OE certification programs and how they affect the OE brand. “I would ask them to educate their dealers, including service managers and technicians, on ADAS repair and what it takes to do it right,” Olson said. “We constantly hear of body shops subletting ADAS work to a dealership who either has no idea what they are talking about, or tells the body shop the recalibration procedures, or other post-repair safety procedures are not necessary.” “If I could tell them one thing, it would be to aggregate their information, including OE site usage, scanning info, parts usage, training participation, etc.,” Kuehn said. “I would ask for an expanded and stronger communication to the industry in regard to a focus on safe and proper repairs. The industry culture today recognizes the importance of structural repairs. It has been developed over decades. Today, electronics on vehicles is the ’structural’ of the future.” What do you think is the future of OE certification programs? “The programs will continue to evolve,” Mostul said. “Advancing technology will dictate that shops

work on a limited number of vehicle makes.” “OE certification is going to grow, and specialization of certain makes will become necessary,” Kuehn agreed. “The days of a shop capably repairing all makes and models are over.” “In the future, the OE will control the market, but shops will choose between being either an OE certified shop or a DRP shop,” Eldridge said. Fuller felt OE programs will continue to evolve, but there will continue to be a place for both DRP and OE certified shops. “Both OE certification programs and DRP programs will still be around, but the shrewd shops will choose them strategically,” Olson said. “The smart choice would be a mix of DRP arrangements and OE certifications.” “There is no doubt that OE certifications are necessary,” Kuehn said. “The connected vehicles of today and in the future have capabilities of first notice of loss/damage, which will help the vehicles end up in capable hands [OE certified shops] for repairs.” Ron Kuehn summed things up.

“A percentage of shops go above and beyond to learn the technology of their vehicles and become the best independent representative of their brand,” Kuehn said. “As for the others, I believe most shops are not intentionally repairing vehicles improperly. However, many do not know what they don’t know and improper repairs still result.” While OE certifications have come a long way, it will take just as much if not more political and cultural effort on the part of the OEs to bring certifications to the next level. Likewise, shops will need to adopt a culture of proper repair and aggressive promotion to get to their next level. As technology advances, so too must the OEs and shops.

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Body Shop Owner Triples Advertising Budget During Pandemic Bob Juniper, owner of Three-C Body DRPs, Juniper focuses on consumer Shop, Inc. in Columbus, OH, has al- advertising, primarily via radio ads and ways been a strong believer in marke- billboards. with Stacey Phillips In a crowded market with one ting and advertising. While many shops all over the body shop per every 7,000 peopcountry are abandoning much of its le, Juniper takes the high road and marketing during these uncertain won’t ever take the easy way to protimes, Juniper is tripling his bud- fit, he said. “There are some shops get from 5% to a full 15%. Stacey Phillips here who advertise the fact That’s right—hewith is spending that they will pay people›s an unprecedented amount of deductibles, which is bad for money on advertising even all of us. Every dollar we put with an uncertain immediate into our marketing adds vafuture for his shop and his lue to our business at least crew. equal to that, so it’s one of History often repeats itwith StaceyBob Phillips Juniper, the self and Juniper knows this owner of Three-C the smart investments we can all too well. In 2008 when Body Shop, Inc. in take.” Columbus, OH, is Juniper has captured more the economy imploded, most tripling his advertisshops scaled down marketing ing and marketing than 70% of the market when and advertising, but not Juni- during the pandemic it came to outdoor advertising in Columbus. per. He saw the opportunity and seized it, andwith when Stacey everythingPhillips re- “I own 95 billboard locations turned back to normal approximately here in town, so if you drive more 18 months later, he had captured more than five minutes in every direction, you will see us,” he said. “They aren’t of the market in Columbus. When the pandemic hit in March, all in ideal locations, but by buying in Juniper called his advertising vendors volume, the average price is low. We and told them it was go-time. The rotate 10 different themes and focus on educational topics like antiprices were rightwith and the market was Victoria Antonelli steering, safety, anti-texting and we also promote our community efforts, our car certifications and our app. “We have used literally a hundred different meswith Ed Attanasio sages over the years and In addition to an aggressive radio ad campaign, Juniper we’ve become well-known owns the lion’s share of every billboard location available from our billboards. People in town come up to me all the time wide open, so Juniper starting nego- and mention our most recent billtiating a series of unprecedented long- board.” In addition to being a master marterm deals. with Gary Ledoux “No one else is advertising, espe- keteer, Juniper is also an inventor. In cially body shops,” he said. “It feels 2012, he created the Pink Button aclike I’m stealing, because they are cident-help app with Leo Daugherty discounting everything. When all of III, the owner of Rampart Hosting, this is over, I will still have these ama- Inc. Currently, he has 1,500 people zing rates. I am saving an enormous using it and it brings him four to five cars every week. amount of money.” witharea—home Stacey Phillips The formula Juniper uses to de The Columbus of The Ohio State University—is highly termine how much money he should competitive, with more than 130 body spend on marketing and advertising shops all vying for the top spot. Since during non-pandemic times is fairly he has chosen not to work with any simple, he said.

Shop Strategies

“I have figured out over the years how much I save by not giving the insurance companies discounts through DRPs, and I use those funds on marketing. In addition, I retain full

Body Shops Giving Back

Some of Juniper’s billboard messages include anti-steering like the one here

Tips for Busy Body Shops control on each repair and run a steaMy SEMA

dy three-week backlog all the time, so who needs DRPs?” Radio advertising has also been extremely effective for Juniper and Three-C Body Shop, he said. “Thirty years ago, we did our first radio campaign and since then, we’ve produced more than 400 radio spots. We realized that television ad-

Shop Strategies

vertising doesn’t work well anymore for us because people now tape their shows and skip the commercials.” Juniper isn’t afraid to use his image in many of his billboard ads, and he also does all the voiceovers for his radio spots. They also have a catchy jingle that is well-known, he said. “In fact, customers sing it to me all the time.” Back when she was 8 years old, Juniper’s daughter, Jade, got her 15 minutes of fame as a local radio spokesperson. “We put her on the air and she was fantastic,” he said. “Listeners like the fact that we are a family business and these commercials reinforce it. Jade picked up all of the lingo quickly and now she is 19 and she still does an ad for us whenever she can. She is now in her third year of college and looking at a major in business.”

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32 JUNE 2020 AUTOBODY NEWS / autobodynews.com

with Mike Anderson Southwest_Issue_0620.indd 32

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

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@gmail.com.

Local Associations Discuss Impact of Virus on Members and Organizations

Southeast News

Collision repair industry associa- tinual basis, or possible layoffs due tions around the country may take to the reduction in business,” said different stanceswith on various matters, Burl Richards, president of the Auto Chasidy Rae Sisk but one shared commonality is the Body Association of Texas (ABAT.) intent of improving the businesses “This is a life-changing event that no of their members. one was prepared for.” The global pandemic is impacting Jeff Oldenettel, president of various communities and even individ- the Kansas Auto Body Associaual businesses in different ways. Sev- tion (KABA), pointed out shops Chasidy Rae Sisk eral associationwith leaders graciously are contending with different chalagreed to discuss some of the chal- lenges than before. lenges they’ve seen, as well as some “Instead of needing techs, shops of the solutions they’ve presented, are worried about workload and while helping member shops navi- if they’ll lose their techs if they’re gate the current situation to the best forced to lay them off,” Oldenettel of their ability. with Chasidy Rae Sisk said. “That’s one of the biggest fears Addressing the impact that I’ve heard. It all comes down to shop COVID-19 has had on shops so far, culture. No one is truly knowledgethe consensus appears to be there is able about this situation because it’s no consensus. so new. We’re all struggling through Some shopswith are experiencing some new realities.” ChasidysigRae Sisk nificant reductions in workload, while Many shops have engaged in others have seen increases, and still new ways of communicating with others have shut their doors. customers and offering curbside op“While all shops have been im- tions to enhance customers’ comfort pacted, the severity ranges quite a bit,” level. said Amanda Henry, direcwithexecutive Chasidy Rae Sisk“Shops have taken extra meator of AASP-PA. “Some shops have sures to offer touchless services such combated the effects of the impact as drive up estimates, drop off and of the virus by shortening their work pick up services. I have heard of shops week, changing their hours or laying arranging add-on sublet services, such off employees. All have ramped up as chip repairs and glass replacement, their marketing with offers, Chasidy some in rather so the customer doesn’t have to go to Rae Sisk creative ways, including offering to multiple places,” said Shelly Jones, run errands for their customers while president of Women in Automotive and they are servicing their vehicles.” Collision (WAC.) “The business impact on the inThe associations have also gotdustry has certainly not been insig- ten creative in response to social Chasidy Rae Sisk nificant, and it’swith created a financial distancing mandates, rescheduling strain on members,” said AASP-MN in-person events and taking advanExecutive Director Judell Ander- tage of online forums, like Zoom son. “Despite the workforce short- and Facebook Live, to provide netage, they’ve found ways to keep their working and educational opportunivalued employees on the payroll and ties to members. Most association with Chasidy Rae Sisk to provide safe, innovative service to personnel are working remotely, and the motoring public while restrictions some associations have been forced are in place. Like any other challenge, to reduce staff. those who have positioned their busiThey are all striving to answer ness strategically for the long term members’ questions and concerns and will survive, although probably with are distributing information by email a few battle scars.” with Ed Attanasio to keep members updated on the var“Everyone has had to change ious financial relief options available, some aspects of the way they do busi- and they’ve also updated their webness, whether it be meeting custom- sites to ensure the information is easiers outside, disinfecting vehicles and ly accessible. their working environment on a con“We want to make sure they

Western Associations

Southwest Associations Southeast Associations Northeast Associations

know we’re a resource they can turn to for important information,” ASA Northwest President and Executive Director Jeff Lovell said. “There’s a lot of great free training out there right now, and we’re encouraging our members to take advantage of that as well.” “Many suppliers, trainers and other companies within the collision repair industry are offering tons of free webinars,” said James Rodis, vice chair of the Nebraska Auto Body Association (NABA.) “Collision Hub’s courses have been great, and I don’t care how smart you think you are— you can always learn something new! Take the time to clean your shops and prepare to reopen, and get all your training done now!” ARA and CAWA have provided a template letter for essential employees, and both groups have been actively advocating to ensure that the

government considers their members’ businesses to be essential. “ARA also established a COVID -19 Relief Fund, which has already raised over $60,000 to benefit ARA direct members who struggle due to the pandemic,” said Sandy Blalock, executive director of ARA. CAWA has been “encouraging members to join the YANG effort to financially support the Automotive Aftermarket Charitable Foundation that assists aftermarket associates in time of crisis and need,” President and CEO Rodney Pierini said. When asked to offer advice for struggling shops, association leaders were quick to point out the opportunities that exist within this crisis. “Hang in there; we all need you. Once the floodgates open, I’m sure we’ll all be back in full swing and celebrating,” said Cathi Webb, executive director of the Northwest Auto-

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34 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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motive Trades Association (NATA.) “Lean on vendors, industry peers and members of organizations that you belong to,” Jones encouraged. “Tap into your network and connections to find resources and brainstorm ideas.” “While none of us have ever seen anything like this before, we’ve all weathered bad storms before and together we can get through this as well,” Henry pointed out. “One thing I’ve learned working in this industry is that shop owners are a strong, creative bunch, and the relationships built through the years are what will get us all through this as well. Lean on those relationships now—reach out and help one another if you can, even if it’s just to listen and commiserate.” Oldenettel suggested this is a great time to remodel and prepare for the future. “Work on your business so you’re ready when things start to calm down—it’s not all gloom and doom. There will be an end to this. As an industry, we need to see this as an opportune time to accelerate into the rest of this year. It’s an opportunity

if you just view it that way.” “Take the time to do all the things you have been putting off for years because you never have time to do it,” said Josh Kent, executive director of the Carolinas Collision Association (CCA.) “Educate your shop during this time. This industry needs to start taking back control

side and out. It’s time to plan for your future. We want to come out of this stronger, smarter, better and more educated than when we went in. “Ask yourself what you’re going to do differently. What do you need to do to survive? Your business won’t fix itself, so you need to determine the best way to run your business.”

“Shops have taken extra measures to offer touchless services such as drive up estimates, drop off and pick up services. I have heard of shops arranging add-on sublet services, such as chip repairs and glass replacement, so the customer doesn’t have to go to multiple places,” — Shelly Jones through education. It’s time to implement change and take that leap of faith to support state associations because we’re here to help everyone. The more change we can help create, the better it is for every shop and all of our customers.” “This is an eye opener for all of us,” said AASP/NJ President Jerry McNee. “It’s time to re-evaluate our business. Relearn your business in-

Association leaders also expressed a lot of respect for shops going out of their way to help their employees and communities during this health and economic crisis. “Shops are very grateful to be considered an essential business during this time and are doing everything they can to keep their employees and hold on until the pandemic is over,” said Ricki Garrett, executive

director of the Mississippi Collision Repair Association (MSCRA.) “Some are also helping their communities by providing extra masks, ventilators and sanitizer to their local hospitals.” “I’m impressed with the generosity, resourcefulness, business acumen and commitment that our members have demonstrated during this crisis. It’s going to be rough for a while, and the industry will emerge changed but stronger than ever,” Anderson added. “There’s a reason that auto and collision repair were deemed ‘essential’ businesses, and that’s because they are! The fundamental need for consumers to have their vehicles maintained and repaired has not changed and will continue after this crisis has passed—perhaps at even greater levels than ever before. “This industry has always been resilient, whether adapting to changing vehicle technologies or a shifting regulatory environment. If shops stay informed, take advantage of the resources available to them and adjust accordingly, they can weather the storm and come out wiser and stronger on the other side.”

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Not Busy? If You’re Leading the Business, You Sure Should Be When work slows down, shop owners need to get busy. Now isn’t the time to think there’s nothing you can do to respond to the current situation. Here are some positive steps you should consider taking. Close out those repair orders (ROs.) I’ve been preaching for years that ROs should be ready to close the day the car leaves, but I know that often doesn’t happen. Now is the time, however, to get any outstanding ROs closed and billed, and then recommit yourself to not getting behind on supplements and paperwork. Don’t put off knowing your options. Now may be a good time to get your bank or landlord on the phone and find out what your options are if you’re struggling to make a full payment. They might be willing to let you skip some or all of a month or two and tack that money on later, over time. Have those conversations before you really need them, so you’re prepared. Manage your credit. Hopefully you have a good credit line established before now with a bank that’s a good partner for your business. But if not, start those conversations. Follow up. I mentioned this in

a previous column about improving your “capture rate.” When a DRP assignment comes in, start contacting that potential customer immediately through multiple means. Go back through estimates you’ve written in the past six months to follow up with customers who didn’t schedule in the work. These are things that are easy to let slide a little when you’re busy, but now is a time to make them a priority. Get them committed. Consider asking a customer scheduling a repair for a small deposit to help ensure they don’t back out. Tell them parts can sometimes be a little harder to come by quickly, but for, say, a 10% deposit, you can start the parts order immediately to help ensure they are there when the car arrives. Chase your money. If you have parts to return, that’s like money gathering dust on your shelves. And get after your receivables; that’s actual money of yours sitting out there. Look at your expenses line-byline. There are “must-have” expenses and there are “nice-to-have” expenses. Your estimating software subscription and business insurance are “musthaves.” But office cleaning services or

Good Sam Insurance Agency Underwriter to Give Refund and $3M Donation to Virus Relief Efforts Good Sam Insurance Agency underwriter National General Insurance announced a 15% credit on all applicable April premiums for auto, RV and motorcycle insurance policyholders, as well as a commitment from National General to donate $3M toward COVID-19 relief efforts. The credit will automatically apply to auto, RV and motorcycle insurance customers with an active policy through April 30, subject to state regulatory approvals. This credit is in addition to other substantial billing relief efforts currently in place in response to COVID-related hardships and may vary in different states. “We’re in this together, which is why we want to help our customers as much as possible and ease some of the financial hardship they may be experiencing,” said

Ben Harrison, vice president of business development for National General Insurance. “Through our relationship with The Good Sam Insurance Agency, helping our customers get outside has always been at the core of our business. “In times like these, it’s difficult to not be able to experience the outdoors fully, but as soon as it’s safe to explore again, National General and Good Sam Insurance will be here.” National General has also committed $3M toward various COVID-19 relief efforts. These efforts include, but are not limited to, donations to select charitable organizations that support communities in which our employees and policyholders live and work. Source: Good Sam Insurance Agency

landscaping services may be “nice-tohaves” but things you could be doing in-house. Don’t stop marketing. One expense I would not cut out is marketing. Now more than ever, your name has to be out there, top of people’s minds when they need you. Reduce staff only as a last resort. I’m not a fan of furloughing or laying off staff unless you have little choice. There are some shops that may have gotten “a little fat” before this in terms of office stuff. But in any case, if you have to do it, make your choice judiciously. Consider who are the people you could always count on to be willing to stay late or come in during a weekend to help a customer or get a car out. Hang on to the people who are really going to help you and your business. If you must cut hours, do it fairly. If you’re trying to reduce the econom-

ic hit by spreading a reduction in work time for all of your hourly employees, try to find ways to do it equitably. I had one shop tell me they needed to temporarily have each of the company’s five office staff take one day off a week. Each week, they drew names out of a hat to determine, for the next week, who was staying at home each day, so everyone took the same cut, and the choice was random and fair. Keep them busy. The last thing you want is people standing around with nothing to do but get negative or scared. If there’s no work, have employees take online training, or do maintenance and repair of equipment and the facility. Or offer them free use of the shop, by letting them bring in family members’ vehicles to change the oil or brakes. Keep them busy. This is no time for those leading a business to sit idle and just wait for things to change.

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with Stacey Phillips

Shop Strategies

Victoria Antonelli is a freelance writer and model, based in Los Angeles. She has been writing for the collision industry since 2013. She can be reached at vantonelli.autobodynews@gmail.com.

with Victoria Antonelli

Shop in UT Discusses Billing Insurance for Disinfectants, Finds Silver Lining in Uncertain Times Have you had to layoff/furlough Autobody News followed up with Sam Plumb, vice president of Alpi- any employees? “Due to the backlog, and our lone Auto Renovation, a single-loca- with Edresponded Attanasio yal customer base, we haven’t had to tion shop in Utah. Plumb on the shop›s behalf to our survey, furlough any employees and we’re «Analysis of the Body Shop,» and not planning to.” volunteered to elaborate further on Have you implemented any changes at your shop, as far as clehis responses. How would you describe your anliness or other safety measures in light of the pandemic? shop? “Our employees wear gloves and Renovation has “Alpine Auto with Gary Ledoux 13 employees and is located in Salt masks when in close proximity, and Lake City, UT. We have one repair we disinfect the front office every time facility, and then a secondary facili- someone arrives and leaves. When ty with overflow space—no repairs, vehicles come in, we take a fresh rag just additional indoor car storage. with rubbing alcohol and go over the seats, center console, steering wheel, gear shifter, trim panels, handles and with Stacey Phillips any other flat surfaces—and we also apply protective covers to the interior of the cars. These covers are then removed, and the vehicle is disinfected again prior to delivery. «We document and bill insurance companies for disinfectant with Mike Anderson supplies used during repairs at intake and delivery. However, we would still take these precautions even if the insurance companies didn’t pay for it, because it’s in line with the CDC Alpine Auto Renovation predominately repairs and state COVID-19 protocols. We BMW and Porsche makes and models, as it is explain to insurance companies that certified by those two manufacturers as an essential business, this protocol When we opened in 1977, we per- ensures the safety of our employees formed both restoration and collisi- and customers. We cannot be expecon repair work, specializing in Euro- ted to continue to repair cars without pean vehicles. Our focus has shifted taking the necessary precautions, and more to collision repair, specifically insurance carriers should cover these BMW and Porsche makes and mo- charges. Many of our customers are dels, as we are a certified for those older than 60 years of age, so it’s important to be safe, rather than sorry.” two manufacturers.” Have you taken on any other type Has the pandemic affected your productivity? How so? Have you been of work such as restoration or custom work? able to stay open? “We have been more inclined to “We had four to five weeks of backlog when the quarantine started, take on restoration projects, which we so we’re still working on scheduled normally have a tough time scheduvehicles. Next week [as of May 5th] ling in when our workload is consistwe’re fully booked—after that, we’re ently high. Some of the high-dollar not sure what will happen as far as collector vehicles can take months additional work and customer sche- to fully restore, depending on the duling. Tow-ins have dropped off al- scope of the project. We have also most completely. We’ve had three in taken on a few cars from a local race the last six weeks and normally it’s team to keep our guys busy. Now is not uncommon to get four or five to- a good time for shops to be networking and reaching out to deawed in each week.”

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lers in their area to let them know they’re still working and would be happy to get their customers taken care of!» Have you applied for assistance under the CARES Act just passed by Congress? If so, what has the response been or lack thereof? “We were very proactive in pursuing the PPP [Payroll Protection Program]. The moment we heard about the PPP, we gathered all of the necessary info and filled out the application. We were able to get approval within two weeks of submitting the completed application. «When and if repair work drops off, we’ll still have plenty of work to do and supplements to catch up on in the front office. We can›t just create work when so many fewer cars are being driven, but the financial wellbeing of our employees will not be affected.

From the Desk of Mike Anderson

«This is a good time for shops to take a look at internal practices and operations, reevaluate them and go back to the drawing board. We don’t often have a lot of time to really look at what changes could be made and what could be added or subtracted. No matter how scary this is, we have to look for the silver lining. I hope most places are taking time to see what they can do to make their business better.” To learn more about how other shops across the country are faring, or find more information on the survey, check out «Most Shops Weathering the Storm—So Far.» https:// www.autobodynews.com/index. php/industry-news/item/19788most-shops-weathering-the-stormso-far.html www.autobodynews.com

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autobodynews.com / JUNE 2020 AUTOBODY NEWS 39

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with Erica Schroeder

Industry Insight with John Yoswick

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

Finding Some Hopeful Bits of Good News Amid the Pandemic Fallout

Shop Showcase

It was a bleak spring for many shops, and charging for the added vehicle but there have been some glimmers cleaning process. of hope for a better summer ahead. “Most insurance companies have with Ed Attanasio Here are some potential bits of good sent out a very nice ‘stay healthy’ bulnews for collision repairers. letin authorizing a charge for disin States are opening back up. fecting customers’ vehicles on arrival Eighteen states began reopening their and before return to the customer,” a economies and public life in early shop manager in an Idaho suburb said. May, and about another half dozen do- Nationwide Insurance sent a ing so in mid-May leaves than memo to its direct repair shops at the with Edfewer Attanasio half of states still shut down or severe- end of March, saying it would pay for ly restricted. Life and business won’t one labor hour and $25 in materials completely be returning to “normal” anywhere for a bit, but with businesses reopening and more people getting out and about, the need for collision repair work should beginEd to Attanasio rebound. with Traffic levels are growing since bottoming out in early April. Passenger vehicle traffic nationwide ticked up slightly April 18-24, the third week-over-week rise in a row. Though it remained just 59% of Ed whatAttanasio it was in with February, it was more than an 11% improvement from a month earlier, when it bottomed out at just 53% of “normal,” according to the traffic analyst firm INRIX. Traffic was up in all 50 states; for “sanitizing the vehicle when it arwith Rhode Island saw theStacey smallest Phillips in- rives and prior to delivery to the cuscrease (less than 1%), but seven states tomer.” No additional documentation (Wyoming, South Dakota, Montana, would be necessary unless charges Nebraska, Iowa, Minnesota and Col- exceed this amount, Nationwide told orado) all saw week-over-week in- its direct repair shops. CARSTAR’s corporate staff told creases of 10% or more April 18-24. also was Personal vehicle its franchise shops in mid-April that withtraffic Stacey Phillips up that week in all 98 of the metro- State Farm had agreed to pay its dipolitan areas INRIX is tracking. The rect repair shops a similar amount for metro areas with the largest week- added vehicle cleaning. over-week improvements April 18- USAA on April 10 also said it 24 were Omaha, NE (up 12%), Den- would pay a “sanitize vehicle” estiver, CO, and Des Moines, IA (each mate line item, but the amount it said with Stacey Phillips up 11%), Colorado Springs, CO (up it would pay—one-half of a labor hour 10%), and Minneapolis, MN (up 9%.) and $15 in materials—was about half Many insurers are paying for of what State Farm and Nationwide COVID-19 cleaning. Added efforts had agreed to pay shops. to clean vehicles as they come in for Shops’ fears about business surrepairs, and before they are returned vival seem to be easing. One industo customers, towith reduce the riskPhillips of try survey in early April found that Stacey COVID-19 transmission has become almost 1 in 4 (23%) said they were a routine “repair operation” for most very (or extremely) concerned about shops, and it’s a procedure more and still being in business even just 30 more shops are now successfully bill- days in the future, but by the secing for as a line item. A survey of ond half of April that level of conmore than 650 shops found almost 3 cern was expressed by just 14% of out of 4 (73%) shops are performing shops.

Social Media for Shops

The percentage of shops that were not very (or not at all) concerned about their businesses surviving the next 30 days increased from 52% in early April to 63% by the end of the month. “We are strong financially due to 20 years of conservative practices and paying off debt,” the owner of a shop in Lubbock, TX, said, for example. Government financial assistance may well have played a role in easing

SEMA Show Goes On

Media and Publicity for Shops Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Shop Strategies with Victoria Antonelli

some shops’ short-term concerns. Surveys indicate about 70% of shops that said they had applied for the Small Business Administration’s pandemic assistance have already received the funds. “The Paycheck Protection Program loan will make it possible to survive,” the office manager of a shop in Tulsa, OK, said. Many shops still voice concerns about their ability to stay in business when asked about longer time frames. But a majority in late April said they had little or no concern about being in business in 90 days or even over the next 12 months. The growth in the number of ADAS-equipped vehicles has slowed. The pandemic’s expected effect on sales of new vehicles could have one minor silver lining for collision repairers: a slow-down in the growth within the vehicle population of vehicles with crash-reducing advanced driver assistance systems. At the start of the year, the National Automobile Dealers Associa-

tion (NADA) was projecting about 16.8 million new vehicles would be sold this year, down somewhat from 17.1 million last year, the fifth year in a row when sales topped 17 million. NADA this spring slashed its projection for how many vehicles dealers will move this year, to between 13 million and 13.5 million. That would make it the slowest year for new car sales since 2011. New vehicle sales benefit collision repairers in that newer cars are generally insured and repaired after accidents, and are less likely to be total losses. On the other hand, robust new car sales also accelerate the percentage of ADAS-equipped vehicles in the U.S. fleet, something that appears to be slowly eroding accident frequency. The Independent Statistical Service (ISS) shows collision claim frequency was down 1.5% in 2018 and then down another 1.8% last year. CCC Information Services points to the growth of ADAS-equipped vehicles as a likely cause of the decline. Earlier this year, CCC stepped up its forecast for the rate of decline in accidents likely attributable to ADAS. CCC said that change was in part because of automakers’ ramped-up adoption of ADAS. Twenty major automakers, for example, had committed in 2016 to equip all new vehicles with frontal crash warning and automatic emergency braking by 2022, but many have done so well ahead of that deadline. “As a result, our projection this year shows a slightly faster increase in the reduction of vehicles in accidents annually,” a CCC report from earlier this year states. Whereas CCC had previously projected about a 5% drop in accidents by 2022, its subsequent forecast was for a decline more than 10%. The 10% decline CCC had projected for 2024 was upped to 15%. But now that decline in claims could become less steep if the significant drop in new car sales during the expected recession ahead slows the pace of ADAS growth in the U.S. vehicle population.

40 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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

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Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

autobodynews.com / JUNE 2020 AUTOBODY NEWS 41

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ACA Joins More Than 100 Business Organizations to Launch America’s Recovery Fund Coalition The Auto Care Association (ACA) announced it has joined America’s Recovery Fund Coalition, an alliance of more than 100 trade associations and business organizations advocating for a grant-based federal assistance program to power the resilience of American enterprise. Together, the coalition’s members span 30 business sectors and employ 45% of the nation’s workforce— more than 58 million workers. “The Auto Care Association is leaving no stone unturned in its continued effort to identify opportunities to help our members, American businesses and American workers to get back on their feet and get back to work,” said Bill Hanvey, president and CEO, ACA. “Joining the coalition is another important step we have taken in order to secure more funding and resources that will be vital to keeping businesses within the auto care industry afloat during this unprecedented crisis.” In a letter sent to President Donald Trump, congressional leaders and the Secretary of the Treasury, the coalition noted:

“Today we are announcing the creation of America’s Recovery Fund Coalition, a group of over 100 organizations advocating for a grant-based federal assistance program to power the resilience of American enterprise. America’s Recovery Fund Coalition includes members representing more than 30 business sectors that together employ 58 million Americans and comprising more than 45% of the private workforce.” The coalition went on: “Existing programs like the Paycheck Protection Program were a well-intentioned effort to help defray the impact of the COVID-19 economic crisis, but we must build upon the current options and address the overwhelming need for additional capital support to businesses. A broad-based, efficient recovery fund that does not pick winners and losers is the best path forward. Without such a fund, our retailers, theatres, restaurants and many other industries will be decimated―and our communities will be poorer both economi-

cally and culturally as a result. “America’s Recovery Fund Coalition believes Congress must urgently create a federal direct assistance fund to provide rapid liquidity to businesses impaired by the COVID-19 national emergency. We believe the fund should be designed to help businesses maintain ongoing capital obligations during the prolonged crisis and the next months of economic healing, enabling employees to continue receiving pay, maintain benefits and helping employers rehire former employees while workplaces get back on their feet and safely reopen to the public.” To see the full list of America’s Recovery Fund Coalition members, click here. https://americasrecoveryfund.org/about-us/ To learn more about America’s Recovery Fund Coalition visit www. AmericasRecoveryFund.org. For more COVID-19 information and resources, visit autocare. org/coronavirus.

The coronavirus pandemic couldn’t have hit Ford at a worse time― midway through a restructuring effort, with several critical vehicle debuts just around the corner. With its factories closed and car demand sharply lower, it’s more important than ever for Ford to get the company back on track quickly so it can weather the storm. But some analysts are worried about what they see as a lack of urgency after Ford posted a $2 billion Q1 loss and predicted it would lose another $5 billion or more this quarter. Pressed during an earnings call about whether Ford would accelerate its restructuring actions in light of the pandemic, CEO James Hackett acknowledged “one truth, right? Don’t waste a crisis.” But he offered no new plans. “While the cash burn dynamics were in-line with what we had modeled, Ford did not appear to have a firm grasp on how it might accelerate restructuring

actions to offset what could be a lower sales environment even post-lockdowns,” Barclays analyst Brian Johnson wrote in a note to clients. Ford has $35 billion in cash after recent borrowings, enough to last through the year if there’s a prolonged crisis, CFO Tim Stone said. So far, none of the Detroit automakers appears to be in need of a bailout. Ford still owes the federal government $1.5 billion for government loans it received during the last crisis in 2009. It’s not clear when Ford will reopen its U.S. manufacturing plants but every day that it’s not producing cars means more red ink. Ford’s European factories are scheduled to gradually resume production starting Monday.

The U.S. Environmental Protection Agency (EPA) and the Center for Disease Control (CDC) have published comprehensive guidance to ensure cleanliness and safety as Americans reopen businesses, schools, homes and public spaces. The guidance walks through how companies should develop, implement and maintain a plan for cleaning and disinfecting workplaces. It includes an EPA list of disinfectant products that can be used against COVID-19, and alternatives if approved disinfectants are unavailable. The guidance reviews social distancing practices and ways to reduce the potential for exposure and includes links to many other related resources. Visit epa.gov/sites/production/files/2020-04/documents/316485-c_reopeningamerica_guidance_4.19_6pm. pdf Source: SEMA

Source: ACA

Ford CEO on Weathering Coronavirus: ‘Don’t Waste a Crisis’ by Joann Muller, Axios

Guidance on Reducing COVID-19 Risks

The RIGHT

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We thank Axios for reprint permission.

www.autobodynews.com

42 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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Tractable Donates to CIF COVID-19 Fund

10 Shops Share What They are Doing to Get Work in the Door by John Yoswick

What steps are shops around the country taking to get work in the door? Here is a quick run-down of 10 ideas from 10 shops. 1. William’s Collision in Eloise, FL, has picked up some revenue by adding spray-in truck bedliners to its list of offerings. 2. “We are offering free pick-up and delivery, mobile estimates, photo estimates through Podium, and utilizing CCC Engage for free,” said Zach DeGroot of Riverbend Body Shop in Grand Rapids, MI. (CCC Information Services is making its CCC Engage photo estimating and CCC Mobile available to its customers at no cost through July.) “We’re also advertising special promotions for first responders and front line workers, like free car washes, vehicle disinfecting services and discounts on deductibles.” 3. A 30-second ad (https://www.youtube.com/watch?v=EenStgoq_YY) posted by Arrowhead Autobody in

Duluth, MN, points to the mobile estimating and pick-up and delivery services the shop is offering customers, along with the added precautions it is taking to sanitize its office, loaner cars and customer vehicles. 4. “We are reaching out to all insurance companies to let them know we are open, and calling friends who are in car clubs to see if they need any clean-up work on collector cars,” said Joe Krebs of K&H Automotive Collision Center in Hamilton, NJ. 5. “We have upgraded our website and we are on Facebook every day,” said Sherry Card, owner of Collision Connection at Brookside in Tulsa, OK. 6. Randy Stabler of Pride Auto Body in Van Nuys, CA, said his company is contacting all past customers to offer discounted pricing on repair of minor damage. 7. Christy Jones of R Jones Collision 1 in Des Moines, IA, said promoting detailing services “has worked to fill in some gaps in our

production.” 8. Sherry Martin, office manager at Pro Collision Center in Orange, VA, said the shop has brought in some complete paint jobs that it normally wouldn’t do. 9. Rosann Kramer of Runway Auto in South Burlington, VT, said she is starting a quarterly email campaign and a YouTube channel for short videos “so people can see who we are as a business.” “We donate a vehicle every year through ‘Recycled Rides,’ and we haven’t used those donations in our marketing in the past, but this year I will be promoting our charitable endeavors,” Kramer said. 10. Many are finding ways to support other businesses in their community, like a “pay-it-forward” campaign started by Ernie’s Auto Body in Hayward, WI. “With any collision repair over $1,000, the customer gets to choose a $30 gift certificate from several local restaurants doing take-out,” shop owner John Magowan said.

Tractable answered the Collision Industry Foundation’s call for help for its COVID-19 relief fund in a very big way―by donating $25,000. Over the past month, more than 500 requests have been submitted by collision repair professionals asking CIF for financial assistance, through the CIF COVID-19 fund established in late March. The initial fund, including early contributions by half a dozen generous donors, had been nearly expired in mid-April, when CIF sent out a request for additional support from the industry. As funds became exhausted, CIF had to close its website to new applications. CIF was able to immediately re-open the website to accept new assistance requests, using Tractable’s donation to continue to provide assistance for new submissions. Source: CIF

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autobodynews.com / JUNE 2020 AUTOBODY NEWS 43

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Garmat Develops Walk-Up Testing Booth for Virus Abatement Garmat USA, a leading U.S.-based manufacturer of paint booths and refinish equipment, has joined the fight to help stop the COVID-19 epidemic, with a new idea that protects the medical provider while saving personal protective equipment (PPE.) The company’s COVID-19 Walk-Up Testing Booth was developed in less than six days by Garmat entrepreneur Johan Huwaert, using expertise in airflow and differential pressure. The core of Garmat’s business is providing a clean environment through containment. The availability of safe and rapid testing is one of the most critical tools in the fight against COVID-19. In the weeks and months ahead, both the number of tests and availability of testing sites will need to grow exponentially. Garmat’s innovative COVID-19 Walk-Up Testing Booth enables a rapid and effective rollout of testing sites. This solution saves PPE and protects the provider, while providing a more efficient way to test masses of individuals.

Current testing methods are flawed when it comes to testing the masses of individuals in the months ahead. For example, in the medical office, when a patient is suspected of having the virus that causes COVID-19, the medical provider must don PPE. Most of these cases come back negative, so the PPE is wasted.

Testing stations in Colorado provide drive-through operations, which are unsafe, time-consuming and not viable for those without access to transportation. South Korea has been very

Ford’s Potentially Devastating F-150 Problem Has Been Solved by Jay Traugott, CarBuzz

The Ford F-150 is critical for the automaker. For years, it has been the best-selling vehicle for the Blue Oval, as well as in America. Without this full-size truck, Ford would be a very different automaker. Last month, a tornado struck the BorgWarner factory in Seneca, SC, severely damaging the facility that produces transfer cases for the F-150 as well as the Ford Explorer and Expedition, and Lincoln Aviator and Navigator. The plant’s roof was ripped off and part of the building itself collapsed. Without this critical transmission component, Ford would have a serious problem―as if the coronavirus pandemic isn’t already enough of a problem. Fortunately, it seems Ford has dodged a bullet on this one. Automotive News reports Ford and plant officials moved fast with a damage assessment and numerous various other efforts and have managed to find a way to get the plant up and running. Within only 12 hours of the

tornado strike, repair teams were on the scene and quickly got to work. The plant’s roof has been temporarily repaired as well as the necessary computer rooms that manage the production line. As a result, Ford reports there will be no production disruption. “I’m extremely confident that when we start up our systems in the U.S. and North America, BorgWarner will support them. The risk is dropping every day,” said Gary Johnson, Ford’s chief manufacturing and labor affairs officer. “The decision was made to help retrofit the plant to make it viable to come back.” BorgWarner added it plans to resume production at the end of the month. And speaking of production, Ford said late last week it intends to restart production at its North American plants the moment the government gives approval. No specific restart dates have been set as of this writing. Meanwhile, Ford’s European plants are scheduled to reopen May 4. We thank CarBuzz for reprint permission.

proactive in testing its citizens for COVID-19, which has led to a lower number of cases and deaths. One hospital in Seoul has set up four walk-up booths outside the hospital for patients to enter for testing. Before the development of these booths, patients were treated in large negative pressure rooms that took a long time to disinfect. The innovation to “individual patient” walk-up phone booth testing made processing 10 times faster, allowing for more patient testing each day. It also reduced the amount of PPE required by health care workers to perform the tests. The patient-centered booth in South Korea has one major drawback―it still requires a fulsome disinfection process after each patient. Brigham & Women’s hospital in Boston designed a three-sided plexiglass version, an improvement over

the South Korea booth, as it placed the health care provider inside, minimizing the surface area and time required for disinfection. Garmat’s latest innovation ad vances Brigham’s version, to provide additional protection for health care workers by fully enclosing the booth and applying positive airflow pressure, forcing contaminants from the interior of the booth. The size and convenience of these walk-up testing booths would allow for testing outside hospitals, urgent care centers, pharmacies, airports, universities and major sporting venues. Garmat has ample production capacity in its Colorado manufacturing facility. Units can be shipped fully assembled on a standard pallet, and install is as simple as placing the unit and plugging into a power source. Garmat USA is America’s leading manufacturer of paint booths serving auto collision repair and industrial refinishing customers. Read more at the Garmat USA website. Source: Garmat

Glass Company Shifts Gears to Make ‘Sneeze Guards’ for Vehicles by Nathan Taylor, OrrilliaMatters.com

An Orillia, Ontario, Canada, company is doing its part to ensure the safety of those who are still on the road during the COVID-19 pandemic. Speedy Glass Orillia has been creating and installing partitions, or “sneeze guards,” for various vehicles. It started a couple of weeks ago, when nearby municipalities contacted the business to see if it would create the partitions for use in some passenger transportation vehicles. Then, word got out to security and waste collection companies as well as local auto dealerships, some of which have purchased the partitions for their shuttle vehicles. “People are staying home and we’re a little bit quieter than normal. We realized this was something we could do to keep us busy,” said Scott Stevens, owner/operator of Speedy Glass Orillia. “It’s good to help the community a little bit.” Those who are interested in purchasing the partitions or learning more about them can call

Speedy Glass Orillia at 705-3253500. The partitions come at a cost, but the company has agreed to donate $20 for each one installed to local food banks and shelters.

Speedy Glass Orillia has been creating and installing these partitions, or sneeze guards, to keep drivers and passengers safe during the COVID-19 pandemic. Credit: Supplied photo

“We know the food banks and shelters are having a hard time right now with more people out of work than usual. We hope this can help out a little bit,” Stevens said. “We’re just trying to keep ourselves busy and benefit organizations and individuals in this unprecedented time we’re in.” We thank OrrilliaMatters.com for reprint permission.

44 JUNE 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / JUNE 2020 AUTOBODY NEWS 45

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Scholarship Recipients Announced by WIN

Fix Auto USA and Auto Center Auto Body Sold to Driven Brands FOCUS Advisors announced the sale of the franchisor 79411, Inc. dba Fix Auto USA and its largest MSO franchisee, Auto Center Auto Body, Inc., to Driven Brands, a portfolio company of Roark Capital. See cover story this issue. With 152 current locations, rapidly growing Fix Auto USA, the U.S. licensee of the Fix Auto brand, is the franchise of choice for premier collision repair operators in the U.S. Auto Center Auto Body, a nine-location MSO in Southern California owned by Erick and Shelly Bickett, is also one of Fix USA’s top performing operations. Driven Brands operates more than 3,100 auto aftermarket locations in seven separate firms, including collision repair franchisors CARSTAR, ABRA and MAACO. David Roberts, managing director of FOCUS, who led the transaction, commented on the impact of this industry realignment and what it foretells. “Together with CARSTAR and their recent ABRA franchise

acquisition, Driven Brands is now positioned as the primary home for operators that want to remain independent in a time of accelerating consolidation,” Roberts said. “Additionally, the acquisition of ACAB positions Driven to begin building its own consolidation platform.” “As a competitor to Driven Brands’ CARSTAR franchise, we’ve been impressed with their increasing professionalism and marketing impact,” said Fix Auto USA CEO Paul Gange. “As an independent brand under the Driven umbrella, we expect to gain access to industry-leading franchise expertise, synergies and capital to accelerate and successfully manage the next phase of Fix USA’s growth.” Erick and Shelly Bickett, co-founders of Fix Auto USA, have been collision industry pioneers since they opened their first Auto Center Auto Body shop in 1984. They also co-founded CEICA in 1995, Cyncast in 2000 and CCI training institute in 2015. Shelly

and Erick Bickett will both continue to advise Driven Brands. “For years, we’ve contemplated how independent operators could continue to do what they do best and still have the opportunity to access capital and exit their businesses when they were ready,” said Erick Bickett. “We have worked with Dave Roberts over many years to help craft our strategy and ultimately represent us in our own exit event. The current climate made the combination more challenging but we are pleased to cement this vital partnership with Driven.” “Erick and I created Fix Auto USA to provide the kind of scale and professional support for smaller MSOs and individual shops that allowed them to effectively compete against the consolidators,” said Shelly Bickett. “With new capital and an expanded team, we expect to continue and expand our competitive position in the California market.”

There are 11 new recipients of the 2020 Women’s Industry Network (WIN) College Student Tuition and Conference Scholarship Award. The scholarhips are presented annually to deserving students enrolled in a post-secondary collision repair technology programs. Each recipient receives a $1,000 scholarship to continue their post-secondary education in collision repair and complimentary registration to attend the 2021 WIN Educational Conference. This year’s winners are Melissa Acosta, Tampa, FL; Taylor Berglund, Beaverton, OR; Jamie Frey, Windsor, CO; Errin Gill, Mount Dora, FL; Katheryn Hasty, Topeka, KS; Brooke Kline, Winona, MN; Breanna Ramirez, Katy, TX; Lilian Reed, Kimberly, ID; Kristina Tedesco, Ridgebury, PA; Nichole Turner, Grand Island, FL; and Elyssa Wilson, Liscomb, NS, Canada.

Source: FOCUS Advisors

Source: WIN

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