June 2023 Southwest Edition

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S OU T HWEST E DI T I O N AZ / AR / CO / LA / NM / OK / TX / UT

Parents Sue Kia After Teens Killed in Stolen Crashed SUV By David A. Wood CarComplaints.com

A New York Kia Sportage crash that killed four teens and injured two others was allegedly caused by Kia even though the 2021 Kia Sportage was stolen and traveling 100 mph when it crashed into a wall.

column and using a USB cable to bypass the security system. It’s believed the first class action lawsuit was filed in 2021 for Wisconsin customers where the problem allegedly first began. The online videos show exactly how to steal the Hyundai or Kia vehicle, and then to make the theft a “challenge,”

41 YEARS

AUTOBODYNEWS.COM

Vol. 41 / Issue 6 / June 2023 REGIONAL NEWS

Panasonic Considering New EV Battery Plant in Oklahoma By Joey Klender Teslarati

Panasonic may build a new battery production facility in the U.S. to help address the increasing demand for electric vehicles. The new plant could be built in Oklahoma, Panasonic said in a statement to Reuters. The battery maker has already entered into an agreement with the state, outlining both eligibility and terms of potential incentives the Japanese company could receive as a part of the state’s Large-scale Economic Activity and Development (LEAD) Act. This would give Panasonic access to nearly $700 million in capital investment rebates.

Nothing else has been agreed upon currently, but according to another report from The Oklahoman, Panasonic is requesting an additional $245 million for community and infrastructure upgrades, Oklahoma Gov. Kevin Stitt said. These upgrades would include anything from daycares to fire stations and other additions that would likely put the deal “over the finish line.” Panasonic is considering building the new $5 billion, 5-million-squarefoot facility in Pryor, OK. The plant is set to supplement several companies in the U.S. hoping to take advantage of the Inflation Reduction Act that incentivizes companies to use U.S.-built battery packs and structure EV production l CONTINUED ON PAGE 4

REGIONAL NEWS The wrongful death lawsuit was filed by two mothers of two of the deceased teens who claim the crash would not have occurred if Kia would have installed engine immobilizers in the Sportage. According to the lawsuit: “An engine immobilizer is a critical piece of electronic security technology that serves as a crucial tool in minimizing the risk of vehicle theft. Immobilizers prevent vehicles from being started unless a unique code is transmitted from the vehicle’s key.” In 2021, criminals began posting videos online about how to steal Hyundai and Kia vehicles by breaking into the vehicle, removing the steering

criminals are encouraged to post their own videos showing how they stole the vehicles. The lawsuit said, “numerous countries have adopted legislation requiring immobilizers as standard equipment for new automobiles.” But what the lawsuit doesn’t mention is the U.S. isn’t one of those countries, as engine immobilizers are not required by U.S. laws. The Kia Sportage Crash The New York Kia Sportage crash occurred Oct. 24, 2022, after a 16-yearold boy drove the stolen Kia into a wall at 100 mph, killing four teens: Marcus Webster, 19, Swazine Swindle, 17, l CONTINUED ON PAGE 11

ATMC Annual Conference Highlighted by Release of Training Benchmarks Survey Results The annual conference of the ASE Training Managers Council (ATMC) was recently held in Grapevine, TX. Featuring several presentations and roundtable discussions focused on training and manager development, conference attendees were also updated with the latest findings of the ATMC training benchmarks survey. “We had a terrific turnout at this year’s ATMC conference with representatives from the OE, aftermarket, trucking, fleet and collision segments of the industry,” said Matt Shepanek, president of

ATMC. “The feedback received was very positive and attendees said that the presentations and breakout sessions were very informative. The panel discussion on EV training solutions was especially well received and because of the need for training in this area, we plan to expand on that topic in the future.” Sponsored by Advance Auto Parts, ATech Training, Bridgestone, Hayes Automotive Group, Snap-on, Toyota, Worldpac and Worldpac Training Institute, l CONTINUED ON PAGE 10

INSIDE THIS ISSUE 18

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Columnist Mike Anderson: Calculating the ROI in ‘Growing’ Your Own

New Body Techs

Columnist Abby Andrews: WIN Hosts Annual Educational

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Columnist Ed Attanasio: Karleigh Johnson Has Her Eyes on SkillsUSA

National Gold

Columnist John Yoswick: Shifting Customer Preferences, Tech, Staffing Issues Inspire Changes in Shops

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Contents

COLUMNISTS Mike Anderson Calculating the ROI in ‘Growing’ Your Own New Body Techs ����������������������������������������� 18

REGIONAL NEWS Arizona Moves $50 Million to Highway Road Repair ������������������������������������������ 27 Art City Auto Body in Utah Joins 1Collision ���������������������������������������������� 19 ATMC Annual Conference Highlighted by Release of Training Benchmarks Survey Results ��������������������������������������� 1 CARSTAR Shanafelt Opens in Texas ���������������������������������������������������������������� 23 CARSTAR UCF Collision Pflugerville

Abby Andrews WIN Hosts Annual Educational Conference �������������������������������������������������� 26

Cole Strandberg EVs: Opportunities Outweigh Challenges for Collision Repair Shops ������������������������ 20

GM Robotaxi Unit Announces Major Expansion in Texas ������������������������������ 30

Ed Attanasio Fully Restored Porsche 914/6 Stays in Family for More than 50 Years ����������������� 22

John Yoswick Estimating Systems Expected to Make Changes Based on Paint Blend Study ����� 6

Louisiana Woman Sentenced for Staged Auto Collision Scheme ��������� 28

Karleigh Johnson Has Her Eyes on SkillsUSA National Gold ���������������������������� 14

Shifting Customer Preferences, Technology, Staffing Issues Inspire Changes in Collision Repair Shops ��������� 12

Opens in Texas ��������������������������������������� 4 Crash Champions Donates Restored Vehicle to Fort Collins, CO, Family ��� 10

Panasonic Considering New EV Battery Plant in Oklahoma ������������������� 1

Index of Advertisers

NATIONAL NEWS 1Collision Offers SCRS Membership �� 42 42.3 Million Americans Expected to Travel for Memorial Day Weekend ���� 40 ASE Announces New EV Standards, Certification ������������������������������������������ 34 ASE Now Has 2,200+ World Class Technicians �������������������������������������������� 39 Auto Insurance Shopping, Switch Rates Reach New Highs as Premiums Surge ������������������������������������������������������� 35 Average Age of Vehicles on U.S. Roads Hits Record High 12.5 Years �������������� 32 Catalytic Converter Thefts Nationwide Surge More Than 200% ���������������������� 39 Ford Super Duty Roof-Crush Lawsuits Consolidated ����������������������������������������� 27 Former GM President, First to Champion EVs, Dies ���������������������������� 42 Gas Prices Fall Again ��������������������������� 46 Hyundai, Kia Resolve Class Action Lawsuit Brought in Response to Vehicle Thefts ��������������������������������������� 43

American Icon Automotive Finishes �������� 22

Hyundai Wholesale Parts Dealers ����������� 44

Audi Wholesale Parts Dealers ����������������� 43

Kia Motors Wholesale Parts Dealers ������� 41

Auto Data Labels ��������������������������������������� 7

Larry H. Miller Ford Mesa ������������������������ 34

Frigid Conditions ���������������������������������� 40

BMW Wholesale Parts Dealers ��������������� 42

Mac Haik Ford-Lincoln ����������������������������� 29

Rivian R1T Fender Bender Lands

Bob Howard Parts Distribution Center ����� 21

Mazda Wholesale Parts Dealers �������������� 28

Bob Utter Kia ������������������������������������������� 34

Mitsubishi Wholesale Parts ��������������������� 40

Brent Brown Toyota ��������������������������������� 14

MOPAR Wholesale Parts Dealers ������������ 35

Increases ������������������������������������������������ 31

Certified Automotive Parts Association ��� 26

NOROO Paint & Coatings, Ltd ������������������ 13

Security Fix Doing Little to Slow Down

Christopher’s Dodge-Ram ����������������� 18, 33

NorthAmerican Bancard �������������������������� 11

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

North Freeway Hyundai ��������������������������� 32

Cool Boss A Division of BendPak Inc ������� 15

Northside Chevrolet ��������������������������������� 23

Courtesy Chevrolet ���������������������������������� 19

Part of the Club ���������������������������������������� 33

Mercedes, Toyota Least ���������������������� 28

Eagle Abrasives ����������������������������������������� 2

Peak Kia ��������������������������������������������������� 33

Tesla Sudden Unintended Acceleration

Emich Chevrolet ��������������������������������� 31, 33

Quality Buick-GMC ���������������������������������� 44

Fisher Acura �������������������������������������������� 33

Santa Fe Kia ��������������������������������������������� 28

Fisher Honda �������������������������������������������� 33

SATA Dan-Am Company ��������������������������� 5

Five Star Subaru �������������������������������������� 10

Schomp Mazda ���������������������������������������� 36

Flatirons Subaru ��������������������������������� 33, 37

Scoggin-Dickey Parts Center ������������������ 8-9

Ford Wholesale Parts Dealers ����������������� 47

Stevinson Toyota West ���������������������������� 33

Fowler Honda ������������������������������������������ 28

Subaru Wholesale Parts Dealers ������������� 39

Freeman Mazda ��������������������������������������� 30

Sunmight USA ����������������������������������������� 48

Garcia Honda ������������������������������������������� 20

Town East Ford ������������������������������������������ 4

GM Wholesale Parts Dealers ������������������� 45

Toyota of Laredo �������������������������������������� 27

Honda-Acura Wholesale Parts Dealers 24-25

Toyota Wholesale Parts Dealers �������������� 38

Horne Kia ������������������������������������������������� 30

Volkswagen Wholesale Parts Dealers ����� 42

Parents Sue Kia After Teens Killed in Stolen Crashed SUV �������������������������������1 Researchers Discover Electrolyte for EV Batteries That Performs Well in

Owner $42,000 Repair Bill ����������������� 30 Roadway Fatalities Appear to Remain Flat in 2022 After 2 Years of Dramatic

Hyundai, Kia Theft Rates �������������������� 34 Shrinking Selection, Fewer Affordable Options in Used Vehicle Market �������� 36 Tesla Most Recalled Car Brand;

Causes Federal Petition ���������������������� 38 Topics Announced for ASE Training

NABC Announces 2 New Team Members ������������������������������������������������ 19

Conference �������������������������������������������� 23

Nearly 15% of Consumers Allow Auto Insurance Coverage to Lapse ������������ 44

U.S. Seeing Historic 1-Year Drop in Gas Prices ���������������������������������������������������������4

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Stacey Phillips Rivian Expands its Certified Collision Network as Production Increases on Adventure Evs ��������������������������������������������� 16

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autobodynews.com / AUTOBODY NEWS JUNE 2023 3


l CONTINUED FROM COVER

CARSTAR UCF Collision Pflugerville Opens in Texas CARSTAR announced the opening of CARSTAR UCF Collision Pflugerville, located at 4674 Priem Lane Suite 206, Pflugerville, TX 78660. Sam Naimat, owner of CARSTAR UCF Collision Pflugerville, is an experienced business developer

Naimat takes great pride in his team’s ability to not only meet but exceed the goals they set. “I joined CARSTAR for one reason and one reason only,” said Naimat. “Everyone I have met has been absolutely stellar. To be a part of this network of high-performing

with a proven track record of establishing multiple MercedesBenz dealerships across Florida. Naimat is laser-focused on healthy ROI, maintaining production levels, controlling costs, building loyal clientele and maintaining a positive work culture. His team attributes his success to his strong organizational and leadership skills.

stores and to have extremely knowledgeable resources just a phone call away is truly unmatched.” The new facility measures more than 50,000 square feet and is operated by a hardworking team of more than 10 members. This location features a vast amount of parking space to maximize convenience for consumers in

Panasonic Considering

the area. CARSTAR UCF Collision Pflugerville is I-CAR Gold certified and the team is eager to pursue additional OEM certifications. “Sam Naimat and his positive attitude and willingness to help others are exactly what we look for when growing our franchisee network,” said Damien Reyna, COO, U.S. collision, Driven Brands. “His people-focused approach will undoubtedly bring success and growth to the Pflugerville area.” Naimat and his team look forward to growing their relationships with CARSTAR’s network of vendors and have expressed interest in participating in the National Auto Body Council’s Recycled Rides program. “Most importantly, I want to thank everyone who has been involved in this journey from the partners, investors, associates, vendors and more,” added Naimat. “I am excited to be a valued partner to the community and to do some good in the world.” For more information on CARSTAR visit CARSTAR.com. Source: CARSTAR

domestically. BMW and Stellantis have had discussions with Panasnoic about potential facilities in the U.S. Panasonic also relies on the EV companies reaching out to potentially make deals for a battery supply deal. In February, the company said it would cut its 2023 outlook by 12.5% after missing earnings expectations, and detailed how it would lean on automotive supply deals to help regain its footing. A presentation during the company’s earnings call earlier this year said Panasonic would “focus on North America market where we can leverage advantages (high capacity) with established strong business foundation; achieve profit growth by expanding sales of 2170 cells and commercializing 4680 cells.” Strong partnerships with automotive companies are a key factor in Panasonic’s growth moving forward. Its long-standing relationship with Tesla indicates it can handle large EV supply contracts and be a stable partner for companies looking to ramp up EV production. Panasonic said last July it will build an EV battery plant in Kansas to help supply cells to Tesla as it grows electric vehicle manufacturing in North America.

U.S. Seeing Historic 1-Year Drop in Gas Prices By Tom Gantert The Center Square

The U.S. is witnessing a historic drop in the price of gas at the pump due to the war in Ukraine, according to an industry analyst. AAA had the price per gallon dropping from $4.48 a gallon a year ago to $3.53 as of May 16. Patrick De Haan, an energy analysis with GasBuddy, said on Twitter there have only been only four times in history, including now, when the U.S. experienced such a dramatic drop in gas prices. He said the other times were the 2008-2009 recession ($3.04 Jan. 2008 to $1.79 Jan. 2009); when OPEC increased its production of oil in 2015 ($3.31 Jan. 2014 to $2.12 Jan. 2015); during the COVID pandemic in 2020 ($2.86 May 2019 to $1.87 May 2020). Gas prices listed are from the U.S. Energy Information Administration. De Haan posted on Twitter: “ ... the entire reason for the $1/gal drop is basically the worst fears after Russia’s

invasion didn’t play out, plus economic headwinds limiting consumption.” Andrew Gross, energy analyst for AAA, said the oil market took an “overly negative” view of how the war would impact the oil market and that’s why gas prices were so high a year ago. “Now, they are, ‘Oh. Wait. Russian oil is still getting out,’” Gross said. The trend of lower gas prices should continue, barring unforeseen circumstances, De Haan told The Center Square. “That’s typical for summer,” he said. “A peak in price before the summer starts due to the transition to summer gasoline and refinery maintenance, but once the transition is done and refineries are back, supply builds and prices ease.” The next challenge will be the hurricane season, which starts in the middle of June and lasts until the end of September. Gross said that could have a big impact on the cost of gas going forward.

4 JUNE 2023 AUTOBODY NEWS / autobodynews.com

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Estimating Systems Expected To Make Changes Based on Paint Blend Study By John Yoswick Autobody News

During an open board meeting of the Society of Collision Repair Specialists (SCRS) in mid-April, the association’s leaders discussed what changes might occur within the estimating systems based on the blend study SCRS conducted last year. “The research, the work, resulted in positive movement for the industry, and we’re excited to identify what the end result looks like,” said Aaron Schulenburg, executive director of the association. Less than three weeks later, users of CCC Intelligent Solutions’ estimating system learned that by the end of the year, they will have the option to input their own refinish blend time or set their own default blend value. MOTOR Information Systems, developer of the underlying

SCRS’ Aaron Schulenburg, right, introduces state insurance commissioners Mike Causey, left, and Scott White, center, before their presentations at the association’s open board meeting

database used by CCC, said it “reviewed information from multiple sources and has concluded that the current formula reflects an estimate for one particular scenario but does not necessarily reflect the many variations encountered with modern vehicle finishes and design.” Blend times, the company’s statement about the change reads, should be based on “the judgment of an estimator or appraiser following an on-the-spot evaluation of the specific vehicle and refinish requirements in question.” “This is a great example of an action that we had previously requested prior to the study, that is now only taking place because of the study results and the industry support that followed,” Schulenburg said in response to MOTOR’s announced change. SCRS believes its study last year demonstrated blending takes more time than a full panel refinish, rather than the 50% less time allocated in the three estimating systems. Schulenburg said SCRS is having “similar conversations” with the other estimating system providers as well.

Autatex, he said during April’s meeting, is “still looking at how they are going to address it,” but in the interim has showed how its system allows a user to make changes to the blend calculation. “That’s great to have those tools, but the question still needs to be addressed because it is still our belief that the formulas aren’t representative of the tasks that are actually being performed today,” Schulenburg said. He said the blending process also may be different than it was 30 years ago when the blend formulas were established. He said Mitchell noted two of the five paint companies in the SCRS study applied sealer on the blend edge—something called for in those companies’ training materials. “There’s nothing in [Mitchell’s Complete Estimating Guide] that says applying sealer on the blend edge isn’t considered a blend,” Schulenburg said. “If [Mitchell] is not considering it a blend operation [when that step is done], that means they haven’t factored that operation into the times they’ve applied for blend. So it’s either not a blend, or the times need to be adjusted.”

User Agreement Opens Scan Tool Data to China Also during the SCRS meeting, held in April in Richmond, VA, Schulenburg showed under the terms of the licensing agreement of at least one aftermarket scan tool, the user is agreeing to allow the data collected through the tool to be transferred to the company in China, “subject to China laws, including those governing the privacy and security of your information.” The shop user is also agreeing to notify and acquire consent for such

“The research, the work, resulted in positive movement for the industry, and we’re excited to identify what the end result looks like.” — AARON SCHULENBURG AEXECUTIVE DIRECTOR, SCRS

collection and transfer of vehicle data “from each customer or prospective customer,” and to the use of the information by the scan tool company “and third parties.” Schulenburg said he’s turned the issue over to the Collision Industry Conference committee on data privacy and security. He said shops need to be aware of such enduser licensing agreements they

6 JUNE 2023 AUTOBODY NEWS / autobodynews.com

are subject to, particularly in light of privacy agreements they may have with other entities, including insurance companies. “Think of a USAA, that insures [four]-star generals. Think of a GEICO that insures government employees,” Schulenburg said. “What are their expectations of shops within their network to maintain the privacy of those individuals? Would they want that information shared in this manner under the jurisdiction of the People’s Republic of China? I don’t know. But it seems like it’s worth talking about as an industry.”

Insurance Commissioners Address the Industry Issues related to “prevailing rate” were among the topics two state insurance commissioners discussed in their presentation at the SCRS meeting. Michael Bradshaw, vice chairman of the SCRS board and operations manager for his family’s North Carolina body shop, told them most insurers in his state don’t conduct labor rate surveys, and when asked, insurance company representatives tend to say they are told the prevailing rate by their supervisor, or say, “We go into shops, and that’s the rate they will take.”

Scott White, Virginia’s insurance commissioner, said his department gets few complaints related to collision repair claims

“It’s not a survey. There’s no statistical data,” Bradshaw said. “That’s the biggest frustration within this industry.” Scott White, commissioner of insurance for Virginia since 2018, acknowledged it was a topic he discussed with his staff prior to speaking at the SCRS meeting. “I did ask this question because I didn’t know, and I was told the prevailing rate is the [DRP] network rate,” White said. “That seems pretty easy to find out. But maybe there’s a difference in how we’re looking at it.” He pointed to what he sees as a similar situation in the health care industry, where providers and insurers may disagree on what is the “commercial reasonable rate.” But

Bradshaw pointed to what he sees as a key difference. “The only thing I would say about the medical industry is that they are licensed professionals,” he said. “Even bad doctors have had a lot of education, a lot of ongoing training. In our industry, in [most] states, there’s no licensure requirement. There’s no equipment or training requirements. So the difference among body shops is vast,” yet they are all told there’s one “prevailing rate.” One reason White may not be familiar with the issue came out in his opening comments. “A question I framed to my team was: Do we get a lot of complaints that involve collision repair shops either directly or indirectly,” White said. “The answer I got was ‘No, not really.’ Not as many as you might expect.”

North Carolina Commissioner of Insurance Mike Causey said some insurers pay claims quickly while others are “terrible.”

He said that was true both in absolute terms—the actual number received—and as a trend, with the department receiving “a lot more” complaints five or 10 years ago. “Which kind of surprised me,” White said. “It may not be an accurate reflection of what’s going on out there. The caveat is we aren’t seeing all the problems that are probably out there.” North Carolina Commissioner of Insurance Mike Causey, on the other hand, said his department gets “a large volume of complaints, all kinds, and I’d say auto insurance [complaints] are a majority over homeowners’.” Causey said he, like shops, sees differences among insurance companies as well. “Some do a really good job of handling claims, paying claims quickly. Others are terrible,” Causey said. “The consumer certainly has to shop around. But again, anything you bring to the attention of regulators, if you give it to our office and say, ‘We’ve noticed this, this is the documentation we have,” we’ll get our folks on it and investigate it and try to get to the bottom of it.”


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Crash Champions Donates Restored Vehicle To Fort Collins, CO, Family The Crash Champions Collision Repair Team, together with Family Promise of Greater Denver, Allstate and local partners, transformed the lives of a deserving Fort Collins, CO, family by handing over keys to a fully restored vehicle. The celebratory NABC Recycled Rides® giveaway took place May 10

at Crash Champions’ Fort Collins repair center, where Jetta Graham and her family of six drove home with the fully restored Nissan Pathfinder. “I could not be more excited to receive this generous gift,” said Graham, a mother of four. “Having

a safe and reliable vehicle is truly a blessing, and I cannot begin to tell you the difference it will make in our lives. I am forever grateful to the NABC, Crash Champions, Allstate and all the sponsors involved in this wonderful program.” Certified collision repair technicians from Crash Champions’ Fort Collins repair center volunteered their time and expertise to restore and donate the vehicle in time for the giveaway. As a participant in the Family Promise of Greater Denver program, Graham and her family are in the process of overcoming homelessness. The vehicle now provides her family with the freedom to transport their four kids to school and doctors’ appointments. “At Crash Champions, we believe in putting people first, always,” said Matt Ebert, founder and CEO of Crash Champions. “The NABC

Recycled Rides program is just one way that our team lives out that principle. It’s our sincere hope that this vehicle makes a positive impact in the lives of Ms. Graham and her deserving family.” Crash Champions has taken part in 10 NABC Recycled Rides giveaways this year and is a Level One partner with the organization. NABC Recycled Rides is a transformative program that unites several areas of the automotive collision repair industry in pursuit of restoring and donating vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 3,000 vehicles valued at $42 million. Crash Champions is a leading provider of high-quality collision repair service, serving customers and business partners at more than 600 repair centers across 36 states. Source: Crash Champions

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l CONTINUED FROM COVER

ATMC Annual Conference the ATMC conference culminated with a presentation of the annual ATMC training benchmarks survey results where critical areas of how ATMC’s training consumers view its training offerings, as well as industry technical statistics, were shared with the group. The ATMC training benchmarks survey is conducted annually within the automotive and heavy-duty vehicle service and repair industry. The survey is designed to establish a series of metrics to help the industry recognize trends, provide a comparison standard and align the offerings of training providers with the needs of training consumers. In this year’s survey, among collision technician respondents, the largest age group was 35-44 (28.1% of respondents), followed by 25-34 (21.9%), 55-64 (18.8%) and 65+ (15.6%.) Three quarters of collision technician respondents said they worked in an independent shop; 16% worked for a fleet, and 9% for a dealership. Collision technicians said they most need training in hybrid/EV systems (48.2%) and ADAS (47%.) To view all of the ATMC training benchmarks survey results, visit ATMC.org. Source: ASE


l CONTINUED FROM COVER

Parents Sue Kia Kevin Payne Jr., 16, and Ahjanae Harper, 14. The teens who died were ejected from the Sportage. The 16-year-old driver suffered minor injuries and was released from the hospital. At the time he was charged with criminal possession of stolen property and unauthorized use of a vehicle, then released to later appear in court. Currently he is facing much more serious charges, including four counts of second-degree manslaughter. Another occupant of the stolen Sportage was a 14-year-old girl who was hospitalized and later released. The Kia theft lawsuit was filed by the mothers of Kevin Payne Jr. and Swazine Swindle, and both mothers claim the only reason their children are dead is because the Kia Sportage was not equipped with an immobilizer. The lawsuit alleges the teens lost their lives “because of the reckless and negligent behavior of Kia” which “caused their beloved sons’ premature deaths.” Hyundai and Kia Theft Lawsuits Since the Hyundai and Kia theft videos began appearing online in 2021,

more than 200 lawsuits, mostly class actions, have been filed against the automakers blaming them for the thefts and resulting damage, injuries and deaths. Those lawsuits allege all 2011-2021 Hyundai and Kia models are defective, and at least 17 state attorneys general have joined the bruhaha and told Hyundai and Kia to recall all the vehicles. In addition, multiple insurance companies have also sued the automakers. However, federal safety defect recalls are issued for safety defects, not because criminals break into vehicles and steal them. Furthermore, numerous cities have filed lawsuits against the automakers by alleging it isn’t the fault of teenage criminals in their cities that have caused the thefts. Those cities claim Hyundai and Kia caused the problem because non-mandated engine immobilizers were not included on the stolen vehicles. One of those cities that sued is Buffalo, where the four New York teens died in the stolen Kia Sportage. Although multiple cities and states blame Hyundai and Kia for the thefts, some of the teens involved in the thefts have been arrested, but they were immediately released from custody. In one incident which occurred in New York, two boys, ages 15 and 16, stole a Kia, crashed the vehicle then fled the scene. Police later found the

two teens and took them into custody. However, they were only issued appearance tickets and released. This was after the 16-year-old had already been issued an earlier appearance ticket and released after stealing a Hyundai vehicle two weeks before. And days ago, Chicago teens stole a Hyundai which crashed into a vehicle carrying a family in a Ford truck. Chicago police said two boys, ages 17 and 14, face one misdemeanor count of criminal trespassing. The crash killed a 6-month old child. Most Stolen Vehicles in 2021 More than 200 lawsuits and other actions claim the thefts and crashes were caused by a lack of engine immobilizers in all 2011-2021 Hyundai and Kia models. If the problem is due to a lack of engine immobilizers, then it follows model year 2011-2021 Hyundai and Kia vehicles would be on the top of the list for most stolen models. However, in 2021 before teenage criminals were being influenced by online videos, no Hyundai or Kia model made the top 10 most-stolen vehicle list in 2021 based on data from the National Insurance Crime Bureau (NICB). Top 10 Stolen Vehicles For 2021 1. Chevrolet Pick-Up (Full Size) 2. Ford Pick-Up (Full Size)

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3. Honda Civic 4. Honda Accord 5. Toyota Camry 6. GMC Pick-Up (Full Size) 7. Nissan Altima 8. Honda CR-V 9. Jeep Cherokee/Grand Cherokee 10. Toyota Corolla The research doesn’t track how many of those stolen vehicles were equipped with engine immobilizers. Additionally, lawyers haven’t announced if the above automakers will be sued because criminals broke into and stole the vehicles. Hyundai and Kia have always insisted teenagers are causing the problems, not a lack of immobilizers. The automakers say all the vehicles meet federal safety standards, but because of all the heat poured on them, Hyundai and Kia are taking action to make it more difficult to steal the vehicles. The Kia theft lawsuit was filed in the U.S. District Court for the Western District of New York: Sherisse Payne, Individually, and as the Proposed Administrator of the Estate of Kevin Payne, Jr., and Tysheen Daniels, Individually, and as the Proposed Administrator of the Estate of Swazine Swindle, vs. Kia Corporation, et al. The plaintiffs are represented by MLG Attorneys At Law, APLC, and Richmond Vona, LLC.

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Shifting Customer Preferences, Technology, Staffing Issues Inspire Changes in Collision Repair Shops By John Yoswick Autobody News

A Greek philosopher once said the only constant in life is change, and that certainly applies to the life of a collision repair business owner. Six shop owners shared what changes they’ve recently made within their business. Tom Ricci, owner of Body & Paint Center in Hudson, MA, pointed to two such changes at his 21-employee business. “I have had multiple problems with our last four or five bookkeepers. They just never seem to work out,” he said. “So I outsourced bookkeeping. It’s been almost a year now and it’s worked out, between cleaning up the last two or three years that other people made a mess of, and really making it simple moving forward. I don’t need an in-house bookkeeper anymore. It’s been a breath of fresh hair having this outsourced help.” Ricci said he also began doing more ADAS work in-house as of last December. “I got quite comfortable with the training and utilizing it the way we should have been utilizing it earlier,” he said. “We’re doing it now for any cars that need it, in-house. I was surprised by how much space it really does take, but we do have the space for it. We have 15,000 square feet, and not all of it was being 100% used all of the time. We started out with two managers learning how to do it. Now the production manager is training a lower-level tech that has been with us for about three years. We had moved him a couple different places in the shop, but this really struck a chord with him. He got real excited about learning how to do it.”

Changing Customer Communication Rosann Kramer of Runway Auto in South Burlington, VT, spent 16 years working for one of the automotive paint companies before buying the shop in 2014. She said a three-month backlog of work and continued challenges with getting parts has led to some changes in customer communications. “We are spending way more time talking to customers, explaining how long they are waiting to get their car fixed, the parts issues that everybody has, explaining rental car coverage,” Kramer said. “Previously we always told customers, ‘If possible, go through your own insurance because they’re advocating for you.’ Now it’s

the opposite. If they’re a claimant, we tell them, ‘File with the other [party’s] insurer because you could be in a rental car for three to six months.’ “Another change: I used to call customers and leave them a voicemail. But a lot of people never answer their phone, don’t have voicemail set up or it’s full,” Kramer continued. “So now we do email. I let them know when they drop off their vehicle that unless something

and more. I probably use the word ‘empathy’ about 10 times a day right now. Just listen to them, understand, tell them you’re on their side and that we’re doing everything we can.”

Technology-Focused Changes Frank Rinaudo of Frank’s Accurate Body Shop in Slidell, LA, said his shop repairs 20 to 25 EVs a month, about a third of the company’s overall monthly car count.

doesn’t feel like we have enough to accomplish all the tasks we need to do daily.” Silva said she’s trying to bring in new technology to help. “We’re using RepairLogic now to source [repair] procedures a little more efficiently,” she said. “All our technicians have a Gmail account, and we can send the link [from RepairLogic] to them and they can click on that and all the procedures are right there on their laptop. And we can attach that link into CCC. We’re no longer printing out 100 pages and rescanning those into CCC.” Another change: “We’re also doing a lot of paint invoicing now because those paint material rates just do not cover what we’re spending,” Silva said.

Recruiting Changes

Melanie Allan of Craftsman Collision in Long Beach, CA, said her shop no longer leaves voicemails because customers don’t listen to them. They send texts instead

changes, I will email them once a week with an update. That does seem to be working. But it’s just a lot more time spent on the education process.” On the opposite side of the country, Melanie Allan of Craftsman Collision in Long Beach, CA, also pointed to changes in customer communication. “I told a customer yesterday that we left them a detailed voicemail, and got back, ‘Oh, I don’t listen to those,’” Allan said. “So we are texting everybody everything. It seems to work.” Allan learned the business working at her father’s collision repair shop in Vancouver, Canada, first as a bookkeeper, then moving into operations, marketing and management. She now oversees a shop that employs 22 people. She said she also is working to address other changes she’s seeing in customers. “As much as you try to educate them, tell them that parts are often a question mark, some customers are unreasonable, even when we try to set their expectations,” she said. “We tell them there are variables. They just hit the roof. We’re seeing that more

12 JUNE 2023 AUTOBODY NEWS / autobodynews.com

“Our processes on intaking those vehicles has changed, and is still changing,” he said. “We got some photos and information from other shops about electric cars that arrived and looked fine one day but by the next day they were a burnt mess because of thermal runaway. Even cars that didn’t look damaged that

“We’re also doing a lot of paint invoicing now because those paint material rates just do not cover what we’re spending.” — TIFFANY SILVA

OWNER, ACCURATE AUTO BODY, RICHMOND, CA

badly. So it’s really important that we protect ourselves. We bought a thermal imaging camera so we can detect heat in the battery and monitor that in a quarantine to validate if we’re seeing an increase.” Second-generation shop owner Tiffany Silva of Accurate Auto Body in Richmond, CA, said they have increased staffing the past three years to keep up with demand, but even with 25 employees, “it still

Mark Probst, owner of two Probst Auto Body shops in rural towns in Illinois, said he’s changed how he hires new technicians. “We haven’t hired an experienced technician in, gosh, seven or eight years,” Probst said. “We decided we were going to grow them ourselves, in-house. We’ve been fairly successful at it. Right now between the two locations I think I have four full-time techs in their 20s. I’ve got two kids still in school working here part-time.” Probst has also been able to regularly hire students from a community college about 40 miles from his shops.

“I’ve been real happy, and at this point, there would be a lot of considerations before I would hire an experienced tech anymore,” he said. “We’ve had really good luck growing our own.” He said he believes in getting the idea of working in the collision repair industry into students’ minds early on. “We have kindergarteners come to our shop for field trips every year,” he said. “Last year, I talked to a class of fourth-graders. Last week, one of my managers went to talk to junior high students. I don’t think we can plant those seeds early enough. I have three teenagers at home, and so I know that many kids don’t know what they want to do. I don’t think there’s any time too early to plant those seeds.”


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Karleigh Johnson Has Her Eyes on SkillsUSA National Gold By Ed Attanasio

entered SkillsUSA and performed admirably, though he wasn’t able to get past the state level. He told High school senior Karleigh Johnson himself one day he would get a at Ratteree Career Development student to take the whole thing. One Center (RCDC) in Irving, TX, is a of his students, Hector Martinez, SkillsUSA star. She took the gold won the state competition his first medal at the SkillsUSA district year, but a technicality kept him from competition in February, held in going to nationals. The next year, Waco, TX, and then captured first Martinez finished second in the state, place at the state finals in Corpus just like Cano. Christi, TX. And then in 2000, Cano finally found his collision star, a student named Geronimo Medrano, who won nationals under Cano’s tutelage. “He was a special kid and now he is doing well out in the industry, which is so satisfying,” Cano said. For the past 23 years, Cano has been looking for his second champion, and Johnson may be the answer. SkillsUSA is a national membership association serving high school, college and middle school students who are preparing for careers in trade, technical and skilled service occupations, including collision repair. It’s is a partnership of students, teachers and industry working together to ensure America has a skilled workforce. SkillsUSA helps Karleigh Johnson, left, a student at Rateree Career each student excel. Development Center, with her teacher, Felix Cano, at More than 340,000 SkillsUSA Regionals students and advisors join SkillsUSA each year, Johnson was the sole female organized into more than 19,000 participant in the collision repair local chapters and 52 state and technician competition at state territorial associations. In 2017and now is headed for SkillsUSA 18, 19,500 teachers served Nationals, June 19-23 in Atlanta, GA. as professional members and Johnson’s instructor at RCDC, SkillsUSA advisors. Combining Felix Cano, is proud of his prize pupil. alumni membership, the total She is his only student to reach the number reached annually is more national competition this year, of five than 421,000. SkillsUSA has served who competed at the district level. more than 13.5 million members Cano has 52 students in his collision since its founding in 1965. repair program at RCDC, five of More than 600 business, industry whom are young women. and labor organizations actively The SkillsUSA Nationals are support SkillsUSA at the national like the Super Bowl of high school level through financial aid, in-kind collision repair, and Cano is a wellcontributions and involvement known top teacher and coach. He of their people in SkillsUSA is competitive himself, so whenever activities. Many more work directly Cano has a contender like Johnson, with state associations and local he’s thrilled. He is delighted with chapters. Commitment by industry Johnson’s presentation to date, and to the annual national SkillsUSA anticipates a strong performance in Championships is valued at more the nationals. than $36 million. When she isn’t in class, Johnson The initial meeting between works at Toyota of Irving as a Cano and Johnson was random and technician, where they are also wonderful. enamored with her work. “She was watching us weld and When he was a tech student, Cano doing body work during the third Autobody News

14 JUNE 2023 AUTOBODY NEWS / autobodynews.com

week of the class,” Cano said. “She asked ‘Could I be in your class?’ and I asked why. She said, ‘I know how to do mechanical already, and I want to learn collision repair now.’ She was direct and very respectful and I had a sense that she would be a good student. She is smart and wants to

“I have been training for this for so long and learned so much along the way. Winning the SkillsUSA Nationals would help me in college and lead to other opportunities—so I am definitely excited!” — KARLEIGH JOHNSON

COLLISION REPAIR TECH STUDENT

learn—everything you could want in a student.” Cano sensed something with Johnson that intrigued him immediately, he said. “Some students don’t want to compete, but Karleigh has those killer eyes,” Cano said. “When she decides to solve a problem or take on a challenge, she will succeed. That’s why I thought she would do well in the

SkillsUSA competition, because she is a competitor and comes prepared.” Cano always trains his students to compete, on top of the knowledge and skills he shares with every student about fixing and painting cars. “Karleigh is already doing the same things professionally at Toyota of Irving, so it’s not going to be that much different,” he said. “I always tell all of my SkillsUSA students to focus carefully on every detail; get everything done right the first time and take what I have taught you into practice.” There will be a bigger crowd at nationals, but Johnson does not seem to be nervous when she thinks about her upcoming trip to Atlanta. “When I get up there, I have the ability to stay calm,” she said. “I don’t get hyped up and I go with the flow. Mr. Cano tells me to stay cool and do my best.” Hopefully her best will bring her the gold, she said. “I have been training for this for so long and learned so much along the way,” Johnson said. “Winning the SkillsUSA Nationals would help me in college and lead to other opportunities—so I am definitely excited!”

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autobodynews.com / AUTOBODY NEWS JUNE 2023 15


Rivian Expands its Certified Collision Network as Production Increases on Adventure EVs By Stacey Phillips Autobody News

Since the first collision repair facility joined Rivian’s Certified Collision Network (RCCN) in Oregon in July 2020, more than 30,000 Rivian electric adventure vehicles have been manufactured and 135 shops are part of the RCCN program. Frank Phillips, senior manager, certified collision North America at Rivian, discussed the OEM’s certified collision network program during the AkzoNobel ACOAT Selected North American Performance Group (NAPG) event in Florida earlier this year.

Rivian’s flagship R1T was ranked “Best EV Ownership Experience among premium Battery Electric Vehicles” by J.D. Power in 2023.

Rivian was founded in 2009 as Mainstream Motors by Robert “RJ” Scaringe and later renamed Rivian, a wordplay on the Indian River in Florida, where Scaringe grew up. The company, headquartered in Irvine, CA, began focusing on autonomous and electric vehicles (EVs) to create products and services that help the planet transition to carbon-neutral energy and transportation. Today, Rivians are built in the U.S. at the company’s approximate 4 millionsquare-foot manufacturing facility in Normal, IL, a former Mitsubishi factory. Currently, three products are being produced. The OEM’s flagship R1T, introduced in September 2021, was ranked “Best EV Ownership Experience among premium Battery Electric Vehicles” by J.D. Power in 2023. The company also manufactures a seven-passenger SUV, the R1S, which received the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK+ for the 2023 model year. In addition, Rivian has been contracted to develop and manufacture 100,000 electric delivery vans (EDVs) for Amazon. Currently, Rivians can be purchased online. As part of owning one, the auto manufacturer offers insurance policies to customers in 48 states through Rivian Insurance Services, LLC. The agency provides auto, homeowners, renters, umbrella

and more. Phillips said the OEM has created a unique culture with a personalized customer experience. “We have loyal customers who have stood in line for four years in some cases—when the Rivian was launched in 2018—to get their vehicle,” said Phillips. “We still have several others patiently waiting to get theirs. It’s important to us to create an experience that returns that loyalty.” Rivian has established a similar experience and culture with its certified network program. “We believe it is really going to disrupt what many of the OEM programs around the country have done traditionally when it comes to certification,” said Phillips. “We want to make sure that shops are properly trained, educated and equipped to fix the Rivian safely and properly.” He said Rivian’s approach is to revolutionize the industry by creating an efficient and highly trained collision repair network. “That’s our focus every day,” he said. “When we wake up and come to work, we start thinking about how we are going to help our collision certified network become better and continue to improve.” The certified network consists of four programs, one for its passenger vehicle line, another for the OEM’s commercial line, which allows facilities to repair Amazon EDVs, and a third for the business-to-business segment. In addition, a new program is being introduced this year for diagnostic certification focused on calibration. In addition to Phillips’ counterpart in Amsterdam, Hank Berkhof, the team is led by Kelly Logan, senior manager of collision repair, and his engineering team, which includes Dan Black, manager of service engineering; David Sosa, manager of the R&D workshop; Brandon Chittenden, manager of service vehicle data; and Taylor Jozwiak, technical collision repair operations manager. Phillips said they are all experienced technicians who have worked in body shops in different capacities. “They’ve all been boots on the ground in that difficult situation that you guys find yourselves in every day, and that’s fixing the car that has been wrecked,” he said. The team regularly visits its network shops to offer support and ensure their success. In addition, Rivian has a vendor program geared toward business-to-business relationships. Rivian’s service engineering department uses CAD to determine how to repair cars safely and properly

16 JUNE 2023 AUTOBODY NEWS / autobodynews.com

and then develops clear, effective and efficient repair and calibration procedures, ensuring compliance. The procedures are then sent to the collision research and development workshop, where a hands-on validation of the repair procedures, tools and equipment is performed at the OEM’s collision center to ensure accuracy and quality.

Rivian has been contracted to develop and manufacture 100,000 electric delivery vans (EDVs) for Amazon

“We do everything from paint to structural repairs,” explained Phillips. “It’s important that we make sure our paint color matches the availability of formulas.” Collision centers that are part of Rivian’s certified repair network are then provided with the vehicles’ repair methods and procedures. “Independent collision centers have made the commitment to partner with Rivian and we want to provide the tools and information needed to deliver an excellent customer experience,” he said. The company’s data is housed at CCI Global Technologies, Rivian’s data aggregation partner, along with ITAS, the management tool used by network members. “It allows shop owners to manage all of the things required for the program in a very interactive way,” Phillips explained. Since joining the company in 2020, Phillips has visited more than 1,000 body shops, evaluating locations to qualify them for certification. Rivian is actively seeking additional facilities to take part in the program. “To become certified, centers must meet specific requirements such as being up to date on training, having the specialty tools necessary to perform repairs and being conveniently located,” he explained. Phillips said the OEM has high standards for those interested in joining. “If you’re a well-equipped shop and you’re currently working on modern vehicles, you’re going to have the majority of the things required to be on the program,” noted Phillips. A key element of the program is based on relationships. These include the relationships Rivian has

with its certified network and facilities have with customers. “It’s about ascertaining that are you committed to working with a customer who is in a bad situation and you’re going to deliver the same type of experience Rivian provides its customers,” explained Phillips. “I’ve got to know without a shadow of a doubt that you’re going to stand beside me shoulder to shoulder as we venture into this new car business.” Those interested in being part of the network must go through a credit check and sign a participation agreement. After getting set up with the required tooling and equipment, collision repairers are provided training. Once the equipment is onsite and training is complete, a facility goes through a final validation before working on Rivian EVs.

Frank Phillips, manager, certified collision North America at Rivian.

Shops can also expect postcertification actions where team members conduct a quality assessment to ensure the proper equipment is used and OEM procedures are followed. “It’s really focused on the customer and repair quality is how we deliver the best outcomes,” said Phillips. Rivian manufactures its batteries and drive units in-house, as well as many of the components. Currently, only certified collision centers have access to Rivian parts. In the future, the auto manufacturer expects to offer unrestricted parts to non-certified collision centers for structural components, such as fenders and bumpers. However, with the car’s sensors and cameras, Phillips said almost every repair on a Rivian EV will require calibration. As a result, facilities must have access to a diagnostic capability. This can be an in-house operation or as of 2023, a partnership with a Rivian Certified Diagnostic Center (RCDC), a new certification added to the certified network to better support this repair requirement. “We want to ensure the vehicles are fixed safely and properly, but also deliver that customer experience that we all expect,” he said.


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autobodynews.com / AUTOBODY NEWS JUNE 2023 17


Mike Anderson — From the Desk of Mike Anderson

Calculating the ROI in ‘Growing’ Your Own New Body Techs More collision repair shops are recognizing they’ll never be able to find all the experienced body technicians they will need, and they instead will need to develop one—or more—themselves. So they are hiring an apprentice, and either training them in-house or sending them to training while they work part-time in the shop.

It’s that model of schooling coupled with work experience that makes me a huge supporter of the Collision Engineering Program (www. beacollisionengineer.com). Now in place at seven post-secondary schools—and growing—around the country, the Collision Engineering Program puts students through a two-year training regimen in which they rotate eight weeks at school, then eight weeks working within a shop. I see many of my client shops doing the math and realizing they can receive a good return on their investment in helping a student complete a training program at a school that’s part of the Collision Engineering Program, or at one of the other quality collision repair training programs around the country. In some cases, these shops are telling these prospective apprentices: If you successfully complete the program, in addition to your other pay and benefits, we’ll pay your monthly student loan payments as long as you’re working within our business. So how does that pencil out? Obviously, the cost of a student’s training can vary based on the school’s tuition, and on whether the student is attending a local school or needing room and board to attend a program elsewhere. But just for the purpose of this article, let’s say the cost the shop is committing to is $40,000. In this example, that covers two years of tuition and room and board while the student is spending each eight-week

period at the school. The student also finishes the program with a starter tool box and I-CAR credits. How long will it take the shop to recoup its investment in that student and start generating a return? Let’s work through the math. Prior to the pandemic, we were seeing the average body technician generating about $53,000 to $63,000 a month in gross sales. That number has risen in the last few years as the average number of parts per job— as well as ADAS-related steps—have increased overall repair costs. And I’ve seen technicians at shops with great estimators, particularly if they are working on higherend vehicles in markets with higher labor rates, producing as much as $75,000 or $80,000 per month in sales. But again, for purposes of this exercise, let’s say the body technician you’re investing in is able to produce $60,000 a month in gross sales. Now, say your shop is making a 43% gross profit. That’s unloaded without taking employee benefits into account. I know some shops making less than that, and some making more. But let’s stick with 43%. If you calculate 43% of $60,000, that technician is generating $25,800 in gross profit per month for that shop. For technicians reading this article, understand that is gross profit. That’s not net profit for the shop owner. Out of that gross profit, the shop has to pay its rent and utilities, pay its taxes and pay for its administrative staff, pay for training and the estimating system costs, etc. So now let’s divide that $25,800 by the 180 clock hours the technician in this example works in a month (four weeks of 45 hours each). That technician is producing $143.33 in gross profit per hour. Again, this is just for the purposes of this article; some technicians produce more, others less. Let’s just say your apprentice is able to produce $100 an hour in gross profit. It will take 10 weeks, at 40 hours per week, for that technician to generate gross profit equal to the $40,000 you invested in their education. Again, that doesn’t take into account a lot of things, like the cost

of health insurance you provide, uniforms, vacation pay, workers’ compensation insurance premiums, etc. But even if you calculate it will take twice that long, 20 weeks, that’s still not a particularly long period for your investment to start providing a return.

“How long will it take the shop to recoup its investment in that student and start generating a return? Let’s work through the math.” — MIKE ANDERSON

Aside from that, think of the loyalty you’re building in that technician who knows his or her student debt is being paid by the business as long as they work there. I know with most shops being extremely busy these days, owners often hate the idea of sending

technicians to OEM or other ongoing training. But if that training improves their productivity or efficiency, the exercise we just walked through can show you the potential return on that investment. It’s also a good calculation to perform when you think of anything that pulls that technician away from working steadily on vehicles. Every time that technician has to go look for a part or a tool, every time that technician is writing their own supplement notes or having to walk to the office for something, that’s costing your shop the equivalent of $100+ per hour in gross profit. That’s one of the reasons I’m a huge proponent of having an estimator/ repair planner working out in the shop, to help ensure the technicians are able to stay on task. In any case, I think we all have to start thinking a little out of the box in terms of recruiting and retaining technicians, and making an investment into “growing your own” can have a significant return.

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18 JUNE 2023 AUTOBODY NEWS / autobodynews.com

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10/27/22 12:55 PM


NABC Announces 2 New Team Members

Art City Auto Body in Utah Joins 1Collision 1Collision is excited to announce the addition of Art City Auto Body in Springville, UT. The business is owned by Daniel Arce and prides itself on caring about its customers and the community. “We love to help people and offer superior service,” said Arce. “Our goal is to offer the same service we would offer our mother.” Established in 1995, Arce purchased the shop two years ago from William Rathigan. To help operate the business, Arce hired his two younger brothers. Ben Arce is an estimator and runs production and John Arce manages the parts department.“Daniel is fairly new in the industry; however, in a short period of time, he has made his business flourish like owners that have been in the industry a long time,” said John Hollingsworth, 1Collision’s director of new location development. “He is always looking for ways to improve and that’s why partnering with us made sense. We’re looking forward to supporting him reach his next level.” After learning about 1Collision, Arce felt the network was a good fit

to help grow the business. “What I like about 1Collision is it still seems small and intimate where you can gain a relationship with some of the people you’re working with and talking to your team,” said Arce. “1Collision has a robust and smart team, and I’m excited to work with them.” Arce worked at Art City Auto Body as a teenager, sweeping floors and cleaning and detailing cars. Over time, he learned body work and how to paint. He was employed as an estimator at different shops over the years. Eventually, he was hired as a facility manager where he worked for nearly a decade helping keep track of KPIs, implementing processes and becoming more efficient. Arce said that Art City Auto Body is the “go-to” body shop in Springville. He attributes this to the business’s long-term support of the community. This includes participating in events like the annual car show held during Springville’s Art City Days. Arce said Springville is known as “Art City” due to its strong development of the arts. “That’s

how the shop got its name,” he explained. Since purchasing the shop, Arce and the team have quadrupled business and currently have 20 employees. Arce said it’s not uncommon right now to have a vehicle in the shop for a month due to parts shortages. As a result, the business is backlogged. Currently, they are adding another building next door that will triple the size of the shop and help them become more efficient. “That’s our No. 1 goal,” said Arce. “We want to create an efficient machine where we can produce and bring cars back to pre-accident condition and do a good job, providing a quality product.” Arce is looking forward to having 1Collision help with the scalability of the company and they are in talks to acquire another location in the future. “That might not be for another few years down the road, but I’m really hoping that it’s something 1Collision can assist us with,” said Arce. Source: 1Collision

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The National Auto Body Council announced April 19 it has welcomed two new team members to the organization, Alison Ilg and Katy Schaan, to support the its growing membership, national programs and operations. Ilg will handle public relations and marketing for the NABC, its premiere programs and its members. Ilg has spent her career helping businesses create and implement results-oriented national and trade media relations, internal communications and social media programs. From mid-sized companies to Fortune 500 corporations, her expertise focuses on B2B and B2C initiatives, as well as internal communications. Schaan joins NABC as the executive administrator, bringing years of experience in bookkeeping, payroll, administrative support and business operations through her company, Haven Street Consulting. She has served as the VP of operations for a small Midwest-based real estate investment company, overseen payroll integrations with external vendors, and led multiple functional areas for a technology company. Source: NABC

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Cole Strandberg

EVs: Opportunities Outweigh Challenges for Collision Repair Shops As the automotive industry continues to shift towards electric vehicles (EVs), collision repair businesses have a significant opportunity to stand out by investing in the training and equipment necessary to repair EVs properly. While EVs offer many benefits, including reduced emissions and lower operating costs, they do

present unique challenges when it comes to collision repair. One of the main differences between repairing an EV and an internal combustion engine (ICE) vehicle is the safety considerations. In an ICE vehicle, the primary safety concern is fuel, while in an EV, it’s the high-voltage battery system. Highvoltage batteries require specialized knowledge and equipment to disconnect and remove them safely from the vehicle during repair. Collision repair businesses must invest in safety equipment and ensure their technicians are properly trained in handling and disposing damaged batteries. Another challenge for collision repair businesses is the need for specialized diagnostic equipment to identify and repair faults in the electrical system. EVs have complex electrical systems that require specialized diagnostic equipment to interface with the car’s computer systems and determine the extent of the damage. This diagnostic equipment can be expensive, and not all repair businesses may have the resources to invest in it. However, this investment can pay off in the long run, as it allows technicians to accurately identify the damage and ensure the vehicle is fully repaired to its original standards. Additionally, this investment serves as a moat, of sorts, against the competition. For shops willing to invest, the growth opportunities provided by EVs are immense.

EVs also have unique structural components that require specialized knowledge and training to repair. For example, many EVs have aluminum or carbon fiber bodies that require specialized welding techniques. Repair businesses must have the necessary training and certification to perform these repairs properly. Failure to do so can result in additional damage to the vehicle or even compromise its safety. This, among other reasons, will likely force collision repairers to specialize. While this evolution toward specialization among collision repairers is already underway, this process will likely only continue to speed up as cars continue to become more advanced and parts become even more difficult to obtain. Investing in the training and equipment required to repair EVs properly can also represent a significant opportunity for collision repair businesses. As more consumers choose EVs over ICE vehicles, the demand for skilled technicians to repair these vehicles is only going to increase. By positioning themselves as experts in the field, collision repair businesses can set themselves apart from their competitors and capitalize on this growing demand. Moreover, manufacturers are now providing more support to collision repair businesses that wish to invest in training and equipment to repair EVs properly. For example, Tesla has developed a collision repair program that provides collision repair businesses with access to specialized training and equipment to repair its vehicles. Rivian offers a helpline for shops within their collision program, providing real-time assistance from a real person for any technical questions or issues shops might have. In addition, some manufacturers are also providing repair businesses with access to online resources and support to help them repair EVs properly. These resources can include technical manuals, repair procedures and diagnostic tools, all of which can help repair businesses accurately diagnose and repair damage to EVs. Finally, investing in the training and equipment necessary to repair EVs properly can also help repair businesses attract new customers. As more consumers become aware

20 JUNE 2023 AUTOBODY NEWS / autobodynews.com

of the benefits of EVs, many will be looking for repair businesses that have the skills and expertise to repair their vehicles properly. By investing in training and equipment, repair businesses can position themselves as leaders in a rapidly evolving

“As the automotive industry shifts towards EVs, collision repair businesses have an opportunity to stand out by investing in the training and equipment necessary to repair them properly.” — COLE STRANDBERG

industry and attract new customers who are looking for quality repair services. In conclusion, as the automotive industry shifts towards electric vehicles, collision repair businesses have a significant opportunity

to stand out by investing in the training and equipment necessary to repair EVs properly. While this investment can be challenging, it can also pay off in the long run by positioning businesses as experts in the field, attracting new customers and benefiting from the growing demand for skilled technicians to repair EVs. With the right investment in training and equipment, collision repair businesses can remain competitive and grow their business in an increasingly electrified transportation sector. If you’re interested in the world of EVs and their impact on the collision repair industry, be sure to check out The Collision Vision, Autobody News’ collision business-focused podcast. In Episode 6, we feature Kelly Logan, senior manager for Rivian’s collision repair program. We’ll have more EV-focused content coming soon. You can find information about The Collision Vision at www. autobodynews.com/podcasts.

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2/10/23 8:29 AM


Fully Restored Porsche 914/6 Stays in Family for More than 50 Years By Ed Attanasio Autobody News

Brent Maxwell, 37, manager of the national accounts team for TRANSTAR, shared a story about a classic Porsche 914/6 in his family since 1970. His father, Jack, bought it while serving in the U.S. Army in Germany and it has been in the family ever since.

Q:

Why is this vehicle considered so rare and coveted by collectors?

A:

Basically, the difference is the six cylinders. 118,978 914s were made, and only 3,332 had six cylinders. The Porsche 914 was a joint development between Porsche and Volkswagen and was the new Porsche entrylevel model in 1970. The two-seater, also known as the “VW Porsche,” was a mid-engine sports car. Striking design features included the very long wheelbase for the vehicle length, short overhangs, the removable roof center panel made from glass fiber-reinforced plastic as well as the wide safety bar. The 914 also featured pop-up headlights.

ordered it before he left the U.S. without seeing a picture, but knew it was a mid-engine two-seater. When he first got to Germany, he was driving a little Volkswagen Bug until it was ready. He had it delivered to Belgium because there was no sales tax, and then rode the train down and picked it up and drove it back into Germany. This two-seater, also known as the “VW Porsche,” was a mid-engine sports car.

“In 2005…it was my first paint job that I’d ever done outside of what we learned in class on a few panels.” — BRENT MAXWELL

The 914/6 obviously is the rarest of the 914s. It’s a first year but then it’s also a U.S. spec Euro delivery car. He knew he was going to bring it back to the States, so he ordered the U.S. version. But they actually delivered it in Europe, which is pretty uncommon. I think he’s probably the longest original owner of a 914/6. He has all the original paperwork and title. We are trying to find out if he is surely the longest original owner.

The 914/6 has been in the family since 1970.

At the time of its launch, the 914 was available with two engines. 914 had a 1.7-liter flat-four engine with 80 hp from Volkswagen. The 914/6 had a 2.0-liter flat-six engine with 110 hp from the Porsche 911 T. In the six-cylinder models, the ignition lock was located to the left of the steering wheel, where it is typically found in Porsche vehicles. The wheels of the 914/6 are 14-inch Fuchs mounted with five wheel nuts, and the car was built by Porsche at the main plant in StuttgartZuffenhausen.

Q: A:

How did your father Jack acquire the car?

Yes, he was an Army captain at that time and ran a motor pool over in Germany. He special

Q:

Did he drive the car a lot in Europe before bringing it

home?

A:

Yes, he was really into Formula 1. He drove the car all over Holland, England, Germany, Belgium and went to many of the different Formula 1 races back then. So, the first original 40,000 miles of the car is all in Europe, a lot of that on the Autobahn and just going around to different races. He brought it back here in 1973 and had it delivered by boat to Florida. He drove it straight from there to New Mexico where he lived at that time. And then he packed up everything in New Mexico and moved to Tulsa, OK, where we live now. I think the car was originally taken apart sometime in the 1980s. It sat

22 JUNE 2023 AUTOBODY NEWS / autobodynews.com

disassembled for a long time. I mean, it was at that time the cars weren’t as valuable as they are now. The shop that ended up doing some of the restoration work was Huber Restorations in Tulsa, OK. They are known for their work on Porsche, Mercedes, German cars, etc. and do amazing work.

Q: A:

You were able to paint the vehicle while in tech school?

In 2005, I was in the Tulsa Technology Collision Repair Program with Mr. Brian Buford and we brought the car in and it was my first paint job that I’d ever done outside of what we learned in class on a few panels. So that was whenever we got it painted and finished what had been done

by the previous restoration shop. I had some friends of mine that were students who helped me paint it. In 2016, I repainted the exterior at Straightline Auto Restoration, after my dad rebuilt the motor, and it was finally roadworthy and what it looks like now, as far as having the interior done and everything else like that completed on the vehicle.

Q: A:

Does the car get used on a regular basis?

Yes, it’s fun to drive. It’s been in a few different shows. My dad takes it out to the cruise nights that are here in Tulsa. I’ve already threatened my 8-year-old son Jack that he’s not allowed to sell the car and it’s going to stay in the family!


Topics Announced For ASE Training Conference

CARSTAR Shanafelt Opens in Texas CARSTAR announced the opening of CARSTAR Shanafelt, located at 955 W. Kingsbury St., Seguin, TX 78155. Eddie Donhauser, owner of CARSTAR Shanafelt, has spent his whole life in the collision repair industry. From an early age, Donhauser was exposed to the industry as his father spent his entire career in the collision repair industry. His father played a large role in influencing Donhauser’s career path, but also his brother’s. Both brothers now own their own collision repair facilities. Family continues to be a primary focus for Donhauser, who runs CARSTAR Shanafelt with his wife, Shannah, and recently helped his daughter open a facility of her own. “I have managed shops my entire life with small, nimble crews, but CARSTAR represented so much more,” said Donhauser. “CARSTAR has given me superior management and guidance throughout the entire onboarding process. The rebates available, training, growth opportunities and positive relationships with vendors created an opportunity that was

too bright to ignore!” The new facility measures approximately 22,000 square feet and is operated by a robust group of 18 team members. CARSTAR Shanafelt is I-CAR Gold certified and holds various OEM certifications, a testament to its continued effort to provide the Shanafelt community the highest level of service they can. “Most importantly, I want to extend a ‘thank you’ to the Seguin community,” said Shannah Donhauser, co-owner of CARSTAR Shanafelt. “It has been an exciting journey already and we are passionate about continuing our growth to meet the needs of our customers.” The Donhausers take great pride in supporting their community, leading to this facility earning Seguin Gazette’s Best of the Best 2023 award for the second year in a row. The team often lends their time and resources to support causes like youth organizations, local schools, the county fair and are looking forward to extending their support to programs CARSTAR participates in, like NABC Recycled

Rides®, a nationwide community service project that teams up to donate vehicles to families and service organizations in need. “The CARSTAR Shanafelt team is an exemplary representation of what it means to be a part of the CARSTAR family,” said Damien Reyna, COO, U.S. collision, Driven Brands. “I look forward to watching Eddie and Shannah bring the highest standard of collision repair to the Seguin community.” Please join the network in welcoming CARSTAR Shanafelt to the CARSTAR family. For more information on CARSTAR, visit CARSTAR.com.

The upcoming ASE Instructor Training Conference will feature speakers from leading transportation industry organizations. Hosted by the ASE Education Foundation, the premier training event will be held July 17-20 in Concord, NC, and will be attended by high school and college instructors from auto, truck and collision repair programs nationwide. The 2023 ASE Instructor Training Conference will include presentations on changes in brake service; heavy duty lubricants, fuels and coolants; digital multi meter features and training; combining testing techniques, diagnostic tooling and service information to solve dilemmas; unlocking the power of discussion; TPMS system types and how they operate; and parts needed to do an engine swap. For more information and to register, visit www.eventsquid. com/event.cfm?id=19408

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WIN Hosts Annual Educational Conference By Abby Andrews

Hiring and Retaining Employees Panel Discussion the second day, Jamie The Women’s Industry Network On (WIN) held its annual Educational Shackleford of Caliber moderated Conference, May 1-3 in San Antonio, a panel discussion on “Hiring and TX, themed “Reimagining Tomorrow,” Retaining Good People,” joined by offering a three-day chance for Jennifer Mayer of the TechForce women in the collision repair industry Foundation, Keith Schaefer of Universal Technical Institute, Sullivan to connect, learn and celebrate. This was the second year the of GM, Mica Carawan of USAA, Olivia Peterson of Gerber Collision and conference offered attendees the Glass, and Yohanna Peet of Caliber. choice to attend in person or virtually. The panelists talked about how to market the industry to Gen Z’ers aging into the workforce, cast a wider net when “fishing” for talent and retain good employees. Petersen said the industry should be looking for people with Jamie Shackleford, far right, of Caliber moderated a panel any hands-on discussion on hiring and retaining employees, which included panelists, far left to right, Jennifer Mayer of the TechForce skills, to “find Foundation, Keith Schaefer of UTI, Megan Sullivan of GM, Mica ways to translate Carawan of USAA, Olivia Peterson of Gerber Collision and Glass skills that may and Yohanna Peet of Caliber. seem completely unrelated into In her opening remarks May 1, something they can do in collision WIN Board Chair Tanya Sweetland repair.” “Anyone is a [job] candidate,” Peet thanked everyone for taking the time said. out of their schedules to invest in “The pond is pretty darn dry,” Mayer themselves and their futures. She said. “We need to talk about how to said WIN recently hit a new record number of members—800, more stock the pond and bring people into than half of whom represent sponsor the industry. Less than 3% of techs are women, so if you want to solve the organizations. The three-day event featured tech shortage, welcome women.” Mayer also said Gen Z is socially many inspiring speakers, including Gina Schaefer, founder and CEO conscious and wants to have a positive impact, so it’s important the of a chain of Ace Hardware stores in Washington, D.C.; Patricia Walsh, collision industry tells them why what they’d be doing matters. an engineer, Paralympian and Gen Z also wants to know why world record holder in the 140-mile they should learn a skill, how they will paratriathlon distance; Shayla Rivera, a NASA aerospace engineer who be able to put it to use even if they is now a corporate trainer, speaker, change careers, what pay and career comedian, writer and professor; advancements they can expect and Maysoon Zayid, a comedian, actress, how they can achieve an acceptable writer and disability advocate; and work-life balance. “People fall into the insurance and Megan Sullivan, collision program collision industries,” Carawan added. manager for GM. Also packed into the event were an “We don’t do enough to talk about NABC Recycled Rides presentation how exciting this career is.” To retain employees, Sullivan said, to two U.S. military veterans, a recognition of WIN scholarship help them see their path forward. “A college grad is not just looking at winners and a gala awards ceremony, to recognize this year’s Most Influential the data analyst job [GM] is offering them, but looking at the lifelong Women winners. Attendees also had two career they could have with your opportunities to give back, making company,” she said. Petersen said when an employee no-sew blankets and writing cards for the troops via the nonprofit Soldier’s has the drive to improve, employers Angels, and participating in a walk should do whatever they can to help to raise money for WIN’s scholarship them. She suggested compensating for training, to keep employees “at the fund. Autobody News

26 JUNE 2023 AUTOBODY NEWS / autobodynews.com

top of their game when repairing these extremely sophisticated vehicles rolling out today.” Schaefer said the industry has to “stop using economics to repair cars” and pay employees more. “We have to compensate them if we’re going to keep young people in the industry,” he said. “They have to buy tools to build more skills, to buy more tools, etc. That is something that’s aggravated me forever. They don’t see an end.” Embracing New Technology On the third day, Charlotte Creech, executive director for innovation for USAA, presented “The Future is Now,” in which she discussed how embracing advancing technology— rather than fearing it—can create unlimited opportunities amidst the unprecedented headwinds currently faced by the collision repair industry. “There are real opportunities for us to serve our customers well while running our businesses more efficiently, by reducing friction and pain points during the repair cycle,” Creech said. Creech gave examples of technology USAA is working with, “to help spark some interest to see what the future might look like.” 3D printing could speed up

prototype development, augment the aftermarket repair supply chain and allow for the customization of parts, providing the “ultimate personalization opportunity.” Connected data—telemetry—is already transforming how USAA and its customers do business, as it can be used to write usage-based policies and get the repair process started immediately after sensing a collision. That same data could help collision repairers by enabling virtual estimations and streamline parts ordering. USAA is using digital learning modules, which offer more flexibility and immersive, hands-on training for new claims adjusters. The same can work for collision repairers, Creech said. Porsche dealership technicians are already using smart glasses to link to the OEM’s tech support, allowing them to see in real time what the technician is seeing and help them troubleshoot issues. “We can’t implement everything overnight; we have to plan for the long term,” Creech said. WIN Conference Committee cochairs Yolanda Sandor and Blair Womble announced next year’s conference is set for May 6-8, 2024, in Newport Beach, CA. Registration will open in late 2023.

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Arizona Moves $50 Million To Highway Road Repair

Ford Super Duty Roof-Crush Lawsuits Consolidated

By Cameron Arcand

CarComplaints.com

The Center Square

The Arizona Department of Transportation announced a $50.5 million allocation toward repairs on several highways in the state. “I’m proud to announce an over $50 million investment in fixing our roads,” Gov. Katie Hobbs said in a statement. “For too long, Arizona has failed to invest the money we need to protect our highways and ensure a brighter future for all Arizonans. Snow and rain this winter exposed the lack of upkeep and I’m grateful to the State Transportation Board for identifying these projects and approving these critical investments.” The repairs include work on the I-40, I-17, I-10, SR-260, US 60 and SR 77, which primarily impacts the northern part of the state, according to the news release. ADOT said the money is coming from “savings on other projects.” A major focus is on wear and tear of pavement, particularly if there has been weather-related damage

By David A. Wood

causing issues such as potholes. The timeline for these 23 projects is to start in mid-May and June, according to ADOT. In the April 24 statement, the department recommended an additional $40 million investment for its “2024-2029 Five-Year Construction Program.” “ADOT’s goal is to deliver the safest and most reliable highway system possible with the funding we have to make improvements around the state,” Greg Byres, ADOT state engineer and deputy director for transportation, said in the statement. “We know these projects to improve pavement conditions are much needed, and we will move forward as quickly as possible,” Byres added. Besides road repairs, there’s also been a major push for other infrastructure changes in the state, such as an expansion of the I-10 between Phoenix and Tucson, but expansion for any highway is not covered in this specific investment.

Ford truck roof class action lawsuits are being consolidated in a Michigan federal court under the case name, In re Ford Super Duty Roof-Crush Litigation.

Class action attorneys began filing Ford truck roof lawsuits following a $1.7 billion jury verdict against Ford in the wrongful deaths of Melvin Hill, 74, and his wife, Voncile Hill, 62. The deaths occurred in a 2014 Georgia rollover crash of a 2002 Ford F-250 Super Duty truck. The crash was allegedly caused by a blown tire installed by a Pep Boys service center, which installed the wrong size tire.

The jury was told the Ford Super Duty roofs were too weak, and the jury decided about 5 million 1999-2016 Ford Super Duty trucks were sold with defective roofs. The first Ford roof class action lawsuit was filed weeks after the $1.7 billion jury verdict in the Hill case, and now those class actions will be consolidated into one. In October 2022, Judge Paul Borman consolidated Beck v. Ford with a related case called Rhodes v. Ford. The latest action saw Judge F. Kay Behm consolidate Ryan Scott v. Ford, Steven Beck v. Ford, and Curtis Bright v. Ford into the single class action lawsuit, In re Ford Super Duty Roof-Crush Litigation. The plaintiffs will file a consolidated Ford truck roof class action lawsuit in the Eastern District of Michigan. A separate wrongful death Ford truck roof lawsuit was recently dismissed in the death of 2001 Ford F-350 driver Mikyley Rae Reitz.

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Tesla Most Recalled Car Brand; Mercedes, Toyota Least By Steven Loveday InsideEVs

According to a recent study by iSeeCars, Tesla is the most recalled car brand. In fact, the publication said, the Model 3, Model Y, Model S and Model X secure four out of the top five spots for most recalled models. Porsche also has four of the most recalled models. Brands including Lexus, Mercedes-Benz and Toyota show up the least on the list of recalls. iSeeCars consulted the National Highway Traffic Safety Administration’s (NHTSA) list of recalls from 2014 to 2023 to put together its list. The goal was to learn which of today’s cars are expected to have the most and least recalls over the course of a 30-year lifespan. “Looking through NHTSA’s recall data confirmed a wide spectrum of recall activity between the most and least recalled models,” said iSeeCars’ Executive Analyst Karl Brauer. “A car like the Lexus NX 300h or Nissan 370Z is projected to have less than one recall over a 30-year lifespan. Conversely, the most recalled cars, including all

four Tesla models, a Porsche and two Volkswagens, are projected to have between 20 and 62 recalls.” The study showed cars with the fewest recalls have “one or fewer predicted recalls” over a 30-year lifespan, while the most recalled models are predicted have at least 10 during the same lifespan—something new car buyers should consider as they shop for a vehicle. iSeeCars noted the average car is recalled four times over its projected 30-year lifespan. However, a car like the Tesla Model Y is expected to accumulate 62 recalls. iSeeCars pointed out Tesla has the ability to address many recalls via over-the-air software updates. Tesla has a handful of recalls right now that do require a service visit, but an onslaught of recalls over the last year or so have been software updates, which are still considered recalls. Just because the car doesn’t have to go into the shop doesn’t mean there’s not a problem that could pose a safety issue. The fix may just happen to be easier on the customer.

Louisiana Woman Sentenced For Staged Auto Collision Scheme Lois Russell, 63, of Gibson, LA, was sentenced April 20 after previously pleading guilty to conspiracy to commit mail fraud, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans, U.S. Attorney Duane A. Evans announced. According to court documents, on March 27, 2017, Russell conspired with Tanya Givens, John Diggs and James “Curtis” Williams to stage an accident with a tractor-trailer at the intersection of Chef Menteur Highway and Downman Road. Damien Labeaud and Roderick Hickman, who have already pleaded guilty to staging other accidents, also participated in this accident. Hickman, while driving Russell’s car, intentionally struck the 18-wheeler and then fled the scene with Labeaud. Russell advised NOPD she was the driver. Thereafter, Russell, along with Givens, Williams and Diggs,

made claims for personal injuries. In total, the victim trucking and insurance companies paid out $272,500 for these fraudulent claims. U.S. District Judge Lance M. Africk sentenced Russell to five years’ probation and imposed a mandatory special assessment fee of $100. The U.S. Attorney’s Office would also like to acknowledge the assistance of the FBI, Louisiana State Police and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorneys Edward J. Rivera, Maria Carboni and Brandon Long of the Financial Crimes Unit, as well as Assistant U.S. Attorney Brian M. Klebba, chief of the Financial Crimes Unit. Source: U.S. Attorney’s Office, Eastern District of Louisiana

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Rivian R1T Fender Bender Lands Owner $42,000 Repair Bill By Iulian Dnistran InsideEVs

A Rivian R1T owner from Ohio was involved in a fender bender that ended up costing about half the price of the truck to repair. Chris Apfelstadt posted his story on the Rivian Electric Vehicle Discussion page on Facebook, where he said he was rear-ended in his red R1T in early February, but the airbags didn’t deploy and the collision happened at a relatively low speed. He exchanged insurance information with the driver who hit his truck and got a check for $1,600 from the other driver’s insurance company for the repairs to his pickup. But as he later found out, it was nowhere near enough. Apfelstadt contacted Rivian, which instructed him to go to one of the three certified body shops in Ohio. He chose K-Ceps which, according to him, has a 70,000-square-foot facility dedicated to EV repairs. The shop mechanics were and meticulously thorough with the repair process, documenting each step with photographs, but

for some undisclosed reason, they disassembled most of the R1T’s rear section, including removing the rear window. In the end, the repair bill was more than $42,000. This led some commenters to say something fishy was going on. “This is 100% insurance fraud on behalf of this authorized repair facility,” one commenter said. “Clearly they are taking advantage of the fact this is an extremely new platform to justify egregious costs. Unless it takes 300 hours to remove the bed and rear glass (for no reason at all it would seem) and reassemble how in the world is this a 42k dollar repair? I’ve seen [Lamborghini] Aventadors have entire rear carbon sections repaired and repainted for less than that…” The owner of the damaged Rivian said the body shop did “an incredible job” and his R1T “looks as nice as the day it was shipped.” He concluded his post by saying he’ll try to fight the other driver’s insurance company to cover his losses, adding the insurance policy maxes out at $50,000, which is very close to the final expense sheet, considering he also had a rental car during the repair.

GM Robotaxi Unit Announces Major Expansion in Texas By William Johnson Teslarati

The General Motors robotaxi unit, Cruise, announced it will expand to the Houston and Dallas metro areas in Texas in the coming weeks. Autonomous driving technology is quickly becoming a top development priority for many automakers. GM’s autonomous driving unit, Cruise, not only operates as an in-house testing lab for its upcoming technology, but also as a standalone robotaxi operator, which hopes to take the ride-hailing sector by storm. The announcement of the service expansion was made May 10 by the Cruise CEO on Twitter. It should be noted due to regulatory hurdles, robotaxis, for the time being, will need to have human operators watch over the driving until Cruise can receive the appropriate licensing. According to the Cruise website, the robotaxi operator

already serves three metro areas, including San Francisco, Austin and Phoenix, though San Francisco remains its top market. Despite Cruise establishing itself so quickly in the heart of Silicon Valley, it has not exactly been accepted by the local community and government leaders. City officials in San Francisco have recently slowed their adoption of the service after numerous safety issues plagued the company’s service, including one Cruise vehicle running into a public bus and two other Cruise vehicles getting trapped within an area with downed electric lines. With GM growing the operating area of Cruise, it helps the autonomous vehicle wing work toward profitability and increases the number of testing environments it has access to. Cruise has long been a top incubator for autonomous technology for GM, and with these service expansions, it will be able to deliver more breakthroughs than ever.

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Roadway Fatalities Appear To Remain Flat in 2022 After 2 Years of Dramatic Increases The National Highway Traffic Safety Administration has released its latest projections for traffic fatalities in 2022, estimating 42,795 people died in motor vehicle traffic crashes. This represents a small decrease of about 0.3% as compared to 42,939 fatalities reported for 2021. The estimated fatality rate decreased to 1.35 fatalities per 100 million vehicle miles traveled in 2022, down from 1.37 fatalities per 100 million VMT in 2021. Americans are driving more than they did during the height of the pandemic, almost a 1% increase over 2021. NHTSA also projects fatalities declined in the fourth quarter of 2022. This is the third straight quarterly decline in fatalities after seven consecutive quarters of increases that started in the third quarter of 2020. “We continue to face a national crisis of traffic deaths on our roadways, and everyone has a role to play in reversing the rise that we experienced in recent years,” said U.S. Transportation Secretary Pete Buttigieg. “Through our National Roadway Safety Strategy, we’re strengthening traffic safety across

the country, and working toward a day when these preventable tragedies are a thing of the past.” NHTSA estimates 27 states, the District of Columbia and Puerto Rico are projected to have had decreases in fatalities in 2022 as compared to 2021, while 23 states are projected to have experienced increases.

In January 2022, DOT released the comprehensive National Roadway Safety Strategy, a roadmap to address the national crisis in traffic fatalities and serious injuries. It adopts the Safe System Approach and builds multiple layers of protection with safer roads, safer

people, safer vehicles, safer speeds and better post-crash care. The NRSS is complemented by unprecedented safety funding included in President Joe Biden’s Bipartisan Infrastructure Law, and in February, the department announced more than $800 million in grants to help communities carry out projects that can address high-crash areas. DOT also launched the next phase of the NRSS, its Call to Action campaign, and released a one-year progress report and accompanying data visualizations that highlight the extent and magnitude of the U.S. roadway safety problem.

The department’s other roadway safety actions include:

Produced the Vulnerable Road User Safety Assessment to guide states on required 2023 assessments.

• •

Issued the Complete Streets Report to Congress: Moving to a Complete Streets Design Model. Issued a final rule on rear impact guards. Advanced the Manual on Uniform Traffic Control Devices rulemaking effort, analyzing and resolving the more than 25,000 public comments. Published a Supplemental Advance Notice of Proposed Rulemaking concerning speed limiters with a motor carrierbased approach. Released proposals for upgrades and a “road map” for the New Car Assessment Program—including developing a proposal to add a pedestrian protection program to NCAP. Made significant progress to advance pedestrian automatic emergency braking rulemaking. Issued a Standing General Order to collect more data about crashes that occur when automated driving systems and advanced driver assistance systems are engaged. Source: NHTSA

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Average Age of Vehicles on U.S. Roads Hits Record High 12.5 Years With more than 284 million vehicles in operation (VIO) on U.S. roads, the average age of cars and light trucks in the U.S. has risen again this year to a new record of 12.5 years, up by more than three months over 2022, according to the latest analysis from S&P Global Mobility. The growth is in line with the firm’s prediction from last year that constrained new vehicle sales would continue to impact and put upward pressure on the average age. In addition, the continued rise of light trucks/utilities means the number of passenger cars on the road will fall beneath 100 million for the first time since 1978. This is the sixth straight year of increase in the average vehicle age of the U.S. fleet. It also reflects the highest yearly increase since the 2008-2009 recession, which caused acceleration in average age beyond its traditional rate due to the sharp decline in new-vehicle sales demand. In 2022, the average age experienced upward pressure initially due to supply constraints that caused low levels of new vehicle inventory, and then by slowing demand as interest rates and inflation reduced consumer demand in the second half of the year. The combined effect caused retail and fleet sales of new light vehicles in the U.S. to drop 8% from 2021’s 14.6 million units to 13.9 million units in 2022, the lowest level recorded in over a decade. “We expected the confluence of factors impacting the fleet coming out of 2021 would provide further upward pressure on average vehicle age. But the pressure was amplified in the back half of 2022 as interest rates and inflation began to take their toll,” said Todd Campau, associate director of aftermarket solutions for S&P Global Mobility. Despite economic headwinds, new vehicle sales are projected to surpass 14.5 million units in 2023, according to S&P Global Mobility forecasts, which is expected to curb the rate of average age growth in the coming year. “While pressure will remain on average age in 2023, we expect the curve to begin to flatten this year as we look toward returning to historical norms for new vehicle sales in 2024,” said Campau. Favorable Business Pipeline for the Aftermarket The increased pace of growth of the average light vehicle age benefits the vehicle service industry. An older fleet means vehicles will continue

to need repair work and service to perform correctly. The aftermarket sector trajectory typically follows growth in average vehicle age, as consumers invest more to keep their aging vehicles running, barring some exceptions. As a result, the most recent S&P Global Channel Forecast, conducted

Strong consumer preference for light trucks over cars points to a growing business potential for the vehicle service industry, as light trucks/utilities generally cost more to maintain than cars, and people also tend to keep them longer. The analysis showed within the next 18-24 months, the total volume of

jointly with Auto Care Association and MEMA Aftermarket Suppliers, estimates revenues of the U.S. light duty aftermarket in 2022 have grown to $356.5 billion, up more than 8.5% over 2021. For this year, early indications from the same forecast estimate a potential revenue increase in 2023 of 5% or more, prior to adjustments for inflation and other factors. The newest Channel Forecast is set to be published in June. According to S&P Global Mobility, the volumes of vehicles ages 6-14 will grow by another 10 million units by 2028, adding to an already favorable volume of vehicles in the aftermarket target range. “Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6-11 years of age, but with average age at 12.5 years, the sweet spot for aftermarket repair is growing,” said Campau. “There are almost 122 million vehicles in operation over 12 years old.” In total, vehicles older than six years will account for more than 74% of the vehicle fleet in 2028, according to S&P Global Mobility estimates. These vehicles drive the most repair opportunities, and should serve as a positive trend for the independent aftermarket.

passenger cars—sedans, coupes, wagons, hatchbacks---on the road in the U.S. could drop below 100 million for the first time since 1978. By 2028, it is expected at least 70% of VIO in the U.S. to be light trucks/utilities.

New Vehicle Market Skews Further in Favor of Light Trucks Light truck/utility growth has trended upward for several years, and in 2022, 78% of all new vehicles registered in the U.S. last year were in this category. Given the exponential growth of the sport-utility segment, VIO has shifted as well---with light trucks/utilities representing nearly 63% of the population.

32 JUNE 2023 AUTOBODY NEWS / autobodynews.com

BEV Average Age Remains Under Pressure The average age of battery electric vehicles (BEVs) in the U.S. is 3.6

years this year, down from 3.7 years last year. The average age has been hovering between 3 and 4 years since 2017 and is largely compressed as the new BEV registrations continue to grow. According to S&P Global Mobility estimates, new BEV registrations achieved a 58% gain year over year, to nearly 758,000 units in 2022. However, the average age of BEVs is under pressure as BEVs are leaving the fleet more rapidly than their ICE and diesel counterparts. According to S&P Global Mobility analysis, of the nearly 2.3 million BEVs registered in the U.S. from 2013 to 2022, about 2.12 million are still on the road today—about 6.6% have left the fleet. When it comes to other fuel types excluding BEVs, of the roughly 158 million sold in the same timeframe, are around 149.8 million vehicles on the road today— reflecting that 5.2% have left the fleet over the time horizon. Source: S&P Global Mobility

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Security Fix Doing Little To Slow Down Hyundai, Kia Theft Rates

ASE Announces New EV Standards, Certification

The software Hyundai and Kia released nearly three months ago to prevent vehicles built without engine immobilizers being stolen has so far not made a dent in theft rates, the Associated Press reported May 9. The AP analyzed data from seven U.S. cities, which it said shows the number of thefts is, in fact, still growing. Only Denver reported a decline in the theft rate of Kias and Hyundais compared to 2022—23%—but its rate is still high. Part of the issue is the slow rollout; only about 5% of eligible Kias and 6% of Hyundais have received the update, the AP said. The trend began in 2021, when videos were first shared on social media platforms like YouTube and TikTok, showing how to steal certain Kias and Hyundais, by simply removing the plastic cowl under the steering column and using a USB cable to trick the vehicles, which lacked engine immobilizers, into thinking a key was being used. Engine immobilizers, which

The National Institute for Automotive Service (ASE) announced the creation of EV technician/shop personnel electrical safety standards. The purpose of the standards is to provide guidance, document and establish electrical safety requirements, standards, procedures and safe work practices relating to the development of an electrically safe working area for service professionals in North America working on or around electrified vehicles (xEVs). The intent is to minimize exposure to these hazards and their associated impacts. In addition to the EV Standards, ASE has developed a new testing and certification program for all xEV vehicles including light duty and medium/heavy duty hybrid/ electric vehicles (EV) based on the standards. To learn more about the new standards and program, visit www.ase.com/ev. Source: ASE

prevent vehicles from being started unless a unique code is transmitted from the vehicle’s key, are not required by U.S. law. In February, the automakers, which are owned by the same parent company, started rolling out a software update that

extends the length of the alarm sound from 30 seconds to one minute and requires the key to be in the ignition switch to turn the vehicle on. However, in Minneapolis, 1,899 Kia and Hyundai thefts have been reported, nearly 18

times the number for the same period in 2022. “The scope of the problem is only expanding and is exponentially worse than it has been in the past,” Brian O’Hara, the police chief of Minneapolis, told the AP. “We have some weeks where nearly as many Kias and Hyundais are stolen in a week as had previously been stolen in a year.” In April, 17 state attorneys general sent a letter to the National Highway Traffic Safety Administration calling for a safety recall on the affected models. The same month, the mothers of two teenagers killed in a crash in a stolen Kia SUV in New York filed a wrongful death lawsuit against Kia, claiming the automaker could have prevented the crash by installing an engine immobilizer. In total, the rash of thefts is linked to 14 crashes and eight deaths nationwide.

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Auto Insurance Shopping, Switch Rates Reach New Highs As Premiums Surge The nation’s auto insurers are locked in a vicious cycle of inflation, rising premiums and steadily increasing customer defection rates. The result, according to the J.D. Power 2023 U.S. Insurance Shopping Study, released April 27, is a sharper focus on saving money as large numbers of auto insurance customers shop for new policies and switch to new carriers, largely based on price. “Auto insurance customers are starting to shop for insurance like they shop for gas,” said Stephen Crewdson, senior director, insurance business intelligence at J.D. Power. “They are taking a much more active stance in seeking out plans that fit their needs and their budgets, which could have a serious longterm effect on carriers that have been working for years to build lifetime value through bundling and other initiatives. In the near term, this shopping trend manifests itself in increased customer interest in usage-based insurance (UBI) plans and some reshuffling of market share among the top carriers.” Following are some key findings of the 2023 study:

Auto insurance shopping increases while customer satisfaction stagnates: Average overall satisfaction among auto insurance shoppers is 861 (on a 1,000-point scale), which is flat from a year ago, even though shopping and switching rates have increased in the same period. The 30-day average shopping rate reached 13.1% in March 2023, the highest rate since June 2021 and well above the 2021 average of 11.4%. The 30-day average switch rate hit 4.1% in March 2023, which compares to an average of 3.4% for all of 2021. Price hikes spur new-policy shopping rates: Auto insurance costs rose 14.5% in February 2023, more than twice the rate of inflation (6%), making auto insurance account for a steadily increasing share of consumer discretionary spending. Accordingly, among those shopping for reasons of price, 44% say they are price checking and 42% say they are being spurred by a rate increase. Similarly, 41% of those shopping because of a rate increase say that their rate increased 20% or more. UBI starts to go mainstream: UBI programs, which use telematics

software to monitor a customer’s driving style and assign rates based on safety and mileage metrics, are now offered to 22% of insurance shoppers and are purchased 18% of the time. Those numbers are up from a 16% offer rate and a 12% purchase rate in 2020. When carriers offer a UBI option, customer satisfaction increases 6 points. Progressive gains market share as GEICO slows: GEICO raised its rates significantly above industry average throughout much of the second half of 2022 while Progressive raised rates in the first quarter of 2022 and then registered lower-than-average increases during the second half of the year. During the same period, Progressive posted a notable gain in market share, becoming the secondlargest auto insurer in the United States, ahead of GEICO and behind State Farm. Study Rankings State Farm ranks highest among large auto insurers in providing a satisfying purchase experience for a third consecutive year, with a score of 877. Liberty Mutual (865) ranks second and Nationwide (861) ranks

third. The segment average is 861. The Hartford ranks highest among midsize auto insurers for a second consecutive year, with a score of 887. Erie Insurance (878) ranks second and Automobile Club of Southern California (AAA) (870) ranks third. The segment average is 863. Large insurers have direct premiums written of $4.5 billion or more in personal lines auto, while midsize insurers have direct premiums written of $1 billion-$4.499 billion in personal lines auto. Now in its 17th year, the U.S. Insurance Shopping Study captures advanced insight into each stage of the shopping funnel and is based on responses from 10,845 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the previous nine months. The study was fielded from March 2022 through January 2023. For more information about the U.S. Insurance Shopping Study, visit https://www.jdpower. com/business/resource/jd-powerus-insurance-shopping-study Source: J.D. Power

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Shrinking Selection, Fewer Affordable Options in Used Vehicle Market Used vehicle prices have slightly cooled from all-time highs, but a number of headwinds continue to create unfavorable buying conditions in the used market for consumers. According to the Q1 2023 Used Vehicle Report released by the car shopping experts at Edmunds, and the data collected by Edmunds’ analysts: • Used car prices remain historically high. The average used vehicle transaction price in Q1 2023 dipped by 6.4% year over year to $28,381, compared to $30,329 in Q1 2022, but is up 44% from Q1 2018’s average used transaction price of $19,657. • The $20,000 used vehicle is becoming harder for car shoppers to find. The share of used vehicles sold for under $20,000 was 30.6% in Q1 2023 compared to 60.5% five years prior. In the new vehicle market, the share of vehicles sold for under $20,000 was less than 1% in Q1 2023. • The supply of used vehicles is being squeezed across the board, which is contributing to increased demand and elevated prices in the market: • Lease volume dropped significantly to 559,000 vehicles in Q1 2023 from 1 million vehicles in Q1 2018. • Trade-in volume declined to 5.5 million vehicles in 2022 from 6.2 million vehicles in 2018. • Off-rental vehicles, which have historically been a steady source for near-new used vehicles, are now much older and pricier. The average off-rental vehicle age climbed to 3.0 years in March 2023 from 1.9 years in 2019, and the average price climbed to $28,916 in March 2023 from $15,829 in 2019. “The good news is that used prices have softened enough in Q1 to offer some relief for consumers getting pushed out of the new market. The not-so-good news is that the used vehicle market continues to be challenging for car shoppers since there are fewer vehicles available and demand is keeping prices historically high,” said Ivan Drury, Edmunds’ director of insights. “Consumers returning to the used market for the first time in years might find conditions a bit shocking: Not long ago, $20,000 was seen as an acceptable amount to spend on a used car to get an optimal blend of miles and age. In today’s market, $20,000 puts consumers into a much older or

much higher-mileage vehicle.” A Positive Note for Vehicle Owners Edmunds’ latest report highlights one bright spot for drivers who have held onto their vehicle the past few years: They’ve virtually driven for free over the last few years due to elevated used car values. For example, in Q1 2023, the average

mileage of a 5-year-old (2018 model year) Toyota Camry was 60,565 miles (a 130% increase compared to an average of 26,288 miles in Q1 of 2020), but instead of a price decline, the average transaction price of the vehicle increased by 8% in Q1 2023 to $21,223 compared to $19,656 in Q1 2020. Strategies for Shoppers Reentering the Used Market To help consumers navigate the challenging dynamics of the used vehicle market, Edmunds experts share three critical car shopping tips: Know your trade-in value. As a used-car owner, extra equity from your trade-in continues to be one of your biggest negotiating tools in today’s market. Before you begin shopping for a vehicle, get a free appraisal for your vehicle on sites like Edmunds so you can factor your trade-in value into your budget. You can also keep tabs on the changing value of your trade-in with this tool on Edmunds. Shop around for preapproved financing as diligently as you’re shopping for an actual vehicle. Interest rates for used vehicles are hovering near record levels and significantly driving up costs for the majority of consumers. Make sure to seek approval from more than one lender to see what you qualify for. With a preapproved loan offer in hand, you can quickly decide whether the finance rate the dealership offers you is the better

36 JUNE 2023 AUTOBODY NEWS / autobodynews.com

deal. Flexibility and thoroughness will be critical. If you’re accustomed to buying near-new (1- to 2-year-old) vehicles, consider shifting your sights to slightly older (3- to 5-year old) vehicles. Just be diligent with this approach: Make sure to buy from a reputable dealer that offers a detailed vehicle history report, consider paying a mechanic to

conduct a pre-purchase inspection, and test-drive the vehicle before your purchase. “Extra diligence, patience and research is more critical now than

ever for used-car shoppers,” said Joseph Yoon, Edmunds’ consumer insights analyst. “With demand and prices still high, shoppers really need to be active in search of the deal they desire and be prepared with an understanding of vehicle availability, financing options and their own budget long before they step into the dealership.” Looking Ahead Edmunds analysts note that used vehicle prices are likely going to stay elevated through the rest of 2023 unless new vehicle sales take a turn. “If new car sales stall out, automakers and dealers could leverage heavier incentives to entice consumers into new purchases, which would in turn place downward pressure on used car values,” said Drury. “But since most automakers have been deliberate in aligning vehicle production and demand to avoid the inventory glut issues they faced prior to the pandemic, consumers probably shouldn’t count on any major bargains or discounts through the rest of the year.” Read Edmunds’ Q1 2023 Used Vehicle Report here. Source: Edmunds

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Tesla Sudden Unintended Acceleration Causes Federal Petition By David A. Wood CarComplaints.com

Tesla sudden unintended acceleration events have caused a Greek resident to file a petition with the National Highway Traffic Safety Administration (NHTSA). According to the petition, the automaker should recall more than 1.6 million vehicles built since 2013. The Tesla petition was submitted by Greek resident Costas Lakafossis, who describes himself as a mechanical and aeronautical engineer as well as an accident investigator. The petitioner alleged all Tesla vehicles should be equipped with an “interlock that requires a brake application by the driver in order to shift from DRIVE to REVERSE to reduce the number of sudden unintended acceleration events.” Tesla Sudden Unintended Acceleration The typical description of “sudden unintended acceleration” is a problem caused not by the driver but by electrical or mechanical

malfunctions of the Tesla vehicle. In cases of investigations and lawsuits regarding alleged Tesla sudden unintended acceleration incidents, acceleration problems may be caused by defects in the vehicles or by software errors that take control away from drivers. A recent Tesla lawsuit dismissal is a good example of what is usually meant by “sudden unintended acceleration.” However, the Tesla petition seems to use the phrase to mean sudden acceleration caused by mistakes made by a driver when the accelerator pedal is applied instead of the brake pedal. Known as “pedal misapplication,” a driver believes they are pressing the brake pedal when they are in fact pressing the accelerator pedal. According to the Tesla petition, pedal misapplication is due to a missing interlock feature and by specific “Autopilot features that contribute to increased likelihood of driver errors.” “Even when driven manually (not in Full Self-Driving mode), all Tesla cars using the Autopilot

software implement various strategies of automatic braking, not only as a safety feature (i.e. to avoid an accident) but also as a feature that takes over some of the workload of the driver e.g. in stop-and-go traffic or when about to park,” the petition said. The petition said one feature provides the ability of the Tesla to stop and shift into reverse gear when the driver is ready to park, all without touching the brake pedal. The petitioner alleged this is a “potentially dangerous ‘party trick’ used for testing related to moving toward full self-driving vehicles.” In other words, the petition alleged, Tesla drivers press the accelerator pedals instead of the brake pedals because the vehicle and automatic braking “encourages drivers to remove their feet from the pedals and enjoy a technologically advanced self-braking car.” In addition, the petitioner said automatic braking (not to be confused with automatic emergency braking) should only

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be used as a safety feature, not as a courtesy to drivers as Tesla allegedly does. NHTSA has investigated more than 200 Tesla sudden unintended acceleration events in the past and found the incidents were caused by drivers pressing the wrong pedals (pedal misapplications). But NHTSA safety regulators also said this about pedal misapplication: “There is also no evidence of a design factor contributing to increased likelihood of pedal misapplication.” The petitioner clearly disagreed and argued Tesla vehicles could be made safer in a way that will prevent or mitigate pedal misapplications. Although the petitioner seeks a Tesla recall, that’s not how NHTSA works. The petition is a “safety defect” petition to determine if the government should open a formal safety defect investigation into the alleged problem. NHTSA will investigate the claims made by the petitioner and either grant or deny the petition to investigate.

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ASE Now Has 2,200+ World Class Technicians With the addition of 44 individuals, there are now 2,224 automotive service professionals who are recognized as World Class Technicians by the National Institute for Automotive Service Excellence (ASE). A joint program of ASE and the Auto Care Association, the ASE World Class Technicians’ program recognizes an exclusive group of highly skilled professional technicians. ASE has added a special section to its website at www.ase. com/worldclass with a roster dating back to the start of the program in 1986. To receive world-class recognition, an automotive service professional must attain 22 specific ASE certifications. Among the estimated 887,000 technicians in the U.S., only 2,224 have earned world class recognition in more than 30 years. Recognition includes a certificate signed by the presidents of ASE and the Auto Care Association, an embroidered shoulder insignia, a personalized plaque and a medallion kit. Source: ASE

Catalytic Converter Thefts Nationwide Surge More Than 200% A new report based on insurance claims data released by the National Insurance Crime Bureau (NICB) shows a surge in catalytic converter thefts across the country. In total, the nation experienced more than 64,000 catalytic converter thefts in 2022—a 207% increase from 2021. Leading the country are California and Texas, which experienced more than 32,000 catalytic converter thefts last year. “This new data is just a snapshot of an underreported crime that affects communities across the nation,” said David J. Glawe, president and CEO of NICB. “While a catalytic converter can be removed in just a few minutes, for vehicle owners, the cost is much more than the replacement parts. Victims must find alternate transportation, schedule necessary repairs, and may face loss of work as a result.” Based on insurance claims, thefts of catalytic converters increased significantly from 2020 through 2022. Insurance claims for these thefts increased 288% from 16,660 claims in 2020 to 64,701 in 2022. Catalytic converter

theft claims had an upward trend trajectory throughout 2020 and 2021 and theft claims in 2022 were significantly higher than in previous years. Mandated in the U.S. since 1975, catalytic converters neutralize harmful gases in engine exhaust that contribute to air pollution and smog and are bolted to the underside of cars or trucks as part of their exhaust system. Catalytic converters contain platinum, rhodium and palladium, rare earth metals that are more valuable than gold. Often metal recyclers pay between $50 to $250 for a catalytic converter and up to $800 for one removed from a hybrid vehicle. Replacing catalytic converters is not cheap. It can cost between $1,000 and $3,500 or more to replace a catalytic converter that is stolen, depending on the type of vehicle. “In addition to law enforcement actions and possible legislative solutions to prevent catalytic converter thefts, vehicle owners can also take important steps to keep their property safe,” Glawe said. “The first is to park in well-

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autobodynews.com / AUTOBODY NEWS JUNE 2023 39


42.3 Million Americans Expected To Travel For Memorial Day Weekend By Aixa Diaz, AAA

AAA projects 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, a 7% increase over 2022. This year, 2.7 million more people will travel for the unofficial start of summer compared to last year, a sign of what’s to come in the months ahead. “This is expected to be the third busiest Memorial Day weekend since 2000, when AAA started tracking holiday travel,” said Paula Twidale, senior vice president of AAA Travel. “More Americans are planning trips and booking them earlier, despite inflation. This summer travel season could be one for the record books, especially at airports.” Nearly 3.4 million travelers are expected to fly to their destinations this Memorial Day, an increase of 11% over last year. Air travel over the holiday weekend is projected to exceed pre-pandemic levels, with 170,000 more passengers—or 5.4% more—than in 2019. Despite high ticket prices, demand for flights is skyrocketing. This Memorial Day

weekend could be the busiest at airports since 2005. Memorial Day road trips are up 6% over last year. 37.1 million Americans will drive to their destinations, an increase of more than 2 million. Gas prices are lower this holiday compared to last year, when the national average was more than $4 a gallon. Despite the lower prices at the pump, car travel this holiday will be shy of pre-pandemic numbers by about 500,000 travelers. More people this holiday are taking other modes of transportation, like buses and trains. These travelers are expected to total 1.85 million, an increase of 20.6% over 2022. Best/Worst Times to Travel and Peak Congestion by Metro INRIX, a provider of transportation data and insights, expects Friday, May 26, to be the busiest day on the roads during the long Memorial Day weekend. The best times to travel by car are in the morning or evening after 6 p.m. The lightest traffic days will be Saturday and Sunday. Major metro areas like Boston, New York, Seattle, and Tampa will likely see

Researchers Discover Electrolyte For EV Batteries That Performs Well in Frigid Conditions Many owners of EVs worry about how effective their battery will be in very cold weather. A new battery chemistry may have solved that problem. In current lithium-ion batteries, the main problem is the electrolyte is a liquid that begins to freeze at sub-zero temperatures. This condition severely limits the effectiveness of charging electric vehicles in cold regions and seasons. To address that problem, a team of scientists from the U.S. Department of Energy’s Argonne and Lawrence Berkeley national laboratories developed a fluorinecontaining electrolyte for subzero temperatures. This antifreeze electrolyte shows promise of working for not only batteries in EVs, but also in energy storage for electric grids and consumer electronics like computers and phones. In testing with laboratory cells, the team’s fluorinated electrolyte retained stable energy storage capacity for 400 chargedischarge cycles at -4 degrees

Fahrenheit. Even at that sub-zero temperature, the capacity was equivalent to that of a cell with a conventional carbonate-based electrolyte at room temperature. The team also determined at the atomic scale why their electrolyte composition worked so well. It depended on the position of the fluorine atoms within the molecules in the electrolyte transporting lithium ions and the number of those atoms. “Our research thus demonstrated how to tailor the atomic structure of electrolyte solvents to design new electrolytes for sub-zero temperatures,” said Zhengcheng (John) Zhang, a senior chemist and group leader in Argonne’s Chemical Sciences and Engineering division. The antifreeze electrolyte has a bonus property. It is much safer than the conventional electrolyte, since it will not catch fire.

40 JUNE 2023 AUTOBODY NEWS / autobodynews.com

Source: Argonne National Laboratory

travel times double compared to normal. “With lower fuel prices and more travelers on the road compared to last year, drivers should expect long delays this holiday weekend, especially in and around major metros as commuters mix with Memorial Day travelers,” said Bob Pishue, transportation analyst at INRIX. “Knowing when and where congestion will build can help drivers avoid the stress of sitting in traffic. Our advice is to avoid driving during peak hours or use alternative routes.” Top Destinations AAA booking data for the Memorial Day weekend shows tourist hotspots like Orlando, New York City and Las Vegas are top domestic destinations. Cruise port cities in Florida and Alaska, as well as Seattle, are high on the list given the 50% increase in domestic cruise bookings compared to last year. Other popular U.S. cities this Memorial Day include Denver, Boston, Anaheim and Canton, OH— home of the Pro Football Hall of Fame.

“We are seeing a demand for iconic cities, international vacation packages and cruises with included amenities that provide more value for the price,” Twidale added. Travelers are paying more for Memorial Day trips this year, in large part due to the rising cost of airline tickets. AAA booking data shows a 40% increase in airfare to this year’s Top Destinations. But that’s not stopping travelers from booking flights abroad. International travel is surging with bookings 250% higher this holiday weekend compared to 2022. European cities are the most popular, including Rome, Paris, Dublin, London, Barcelona and Athens. International car rentals are up more than 80% over 2022. AAA reports strong sales for International Driving Permits this year, almost double what they were last year. The passport courier service RushMyPassport is also seeing an unprecedented number of applications for expedited passport and visa services this year. Source: AAA

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autobodynews.com / AUTOBODY NEWS JUNE 2023 41


Former GM President, First To Champion EVs, Dies By Jamie L. LaReau Detroit Free Press

Lloyd Reuss, a former president of General Motors and father of the current GM president, died April 21. Published reports say Reuss was 86. He served as GM’s president in the early 1990s and was the father of GM’s current President Mark Reuss, who is also head of regional and international operations, global product development, quality and design. Mark Reuss has been president since January 2019. GM confirmed Lloyd Reuss’ passing and issued the following statement on April 22 from CEO Mary Barra, “Lloyd Reuss was a talented executive and leader of GM and was also a strong force for good in the community with his service, dedication and tireless efforts on behalf of others.” A cause of death was not released. Corvette collector, GM dealer and NASCAR team owner Rick Hendrick also released a statement April 22 calling Lloyd Reuss a pillar of the auto industry.

1Collision Offers SCRS Membership 1Collision has aligned with the Society of Collision Repair Specialists (SCRS) to make membership available to all businesses in the network. 1Collision’s focus on corporatelevel support to affiliated collision repair centers spans all business areas—business planning, operations and office management, training, purchasing power, industry relations, human resources and recruiting support, marketing, web presence and more—making SCRS a logical partner in delivering resources to network members. The network locations span Arizona, California, Illinois, Indiana, Iowa, Maryland, Michigan, Minnesota, New York, Tennessee, Utah, Virginia, Washington and Wisconsin in the U.S., and in 2020, 1Collision merged with CSN Collision Centres in Canada, expanding the North American footprint. Companies looking to support SCRS through membership can email info@scrs.com or visit www. scrs.com/join-scrs. Source: SCRS

“A true ‘car guy’ and optimist, he was always there to support dealers and stood tall as a champion of General Motors’ auto racing programs,” said Hendrick, CEO of Hendrick Automotive Group and owner of Hendrick Motorsports. “His passion for GM was exceeded only by his love for family and community. I see many of his greatest qualities reflected in Mark.” On Aug. 1, 1990, GM named Lloyd Reuss president. He was an early supporter of the GM Impact, a concept car that debuted at the 1990 Los Angeles Auto Show. It became the GM EV1, the predecessor to today’s electric vehicles, according to GM’s biography on Lloyd Reuss. Reuss began his career at GM in 1957 after a two-year stint in the U.S. Army as a first lieutenant in the Army Corps of Engineers. A mechanical engineer by trade, Reuss worked his way up to jobs such as chief engineer at both Buick and Chevrolet in the 1970s. He also served as the general manager of Buick starting in 1980, leading the division to an

all-time sales record in 1983. He later became the head of GM’s North American passenger car groups. That followed by leading North American operations and worldwide automotive components.

Former GM President Lloyd Reuss, left, his son, GM North America President Mark Reuss, center, and Penske Corp. Chairman Roger Penske, right, at a news conference Oct. 12, 2011. Photo by John F. Martin, Chevrolet. Credit: John F. Martin, Chevrolet

Reuss was demoted from president in 1992 and retired in 1993 at age 56. According to Automotive News, Reuss and then CEO Robert Stempel, who was the first engineer to hold GM’s

top job since the 1950s, were forced out when GM’s board and its director, John Smale, purged the executive ranks. GM’s bio called Reuss “a true GM man” whose family had four generations with ties to the company. His father ran a Chevrolet dealership in Illinois, where Reuss was born. His son, Mark, until recently had occupied his father’s former office as president. Lloyd Reuss’ daughter, Charlene Reuss Grandelius, worked in GM purchasing from 1982 to 1995. His granddaughter, Amanda, has held various positions in GM Communications and Marketing. After retiring, Reuss joined Focus: HOPE, the Detroit nonprofit that fights racism by providing education and training to minority communities. At Focus: HOPE, he helped establish the Center for Advanced Technologies, which led to more than 300 underserved students earning associate’s and bachelor’s degrees in engineering, GM’s bio said.

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42 JUNE 2023 AUTOBODY NEWS / autobodynews.com

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Hyundai, Kia Resolve Class Action Lawsuit Brought in Response To Vehicle Thefts Hyundai Motor America and Kia America, Inc. on May 18 announced they have entered into an agreement to resolve class action litigation with owners of certain Hyundai and Kia vehicles without push-button ignitions and immobilizing anti-theft devices. The agreement, which could be valued at approximately $200 million depending on how many customers elect to participate, will provide cash compensation for customers who incurred theftrelated vehicle losses or damage not covered by insurance, in addition to reimbursement for insurance deductibles, increased insurance premiums and other theft-related losses. As part of this settlement, the software upgrade will be automatically installed in conjunction with any service or maintenance appointment that brings the owner of an eligible vehicle into the dealership. For the subset of customers whose vehicles cannot accommodate the software upgrade, the agreement will provide reimbursement up to $300

for the purchase of various antitheft devices. Hyundai and Kia have also provided consumers with tens of thousands of free steering wheel locks, either through local law enforcement or through direct shipment to impacted owners. The settlement includes approximately 9 million Hyundai and Kia vehicles. The court is expected to review the proposed settlement of the matter for preliminary approval in July. Notices will be sent to individual class members following final approval and pursuant to the terms of the settlement. Background Thefts of Hyundai and Kia vehicles spiked in the summer of 2022 in response to videos posted by car thieves on TikTok and other social media channels in what became known as the “Kia Challenge.” In these videos, thieves documented and promoted a specific method by which to bypass the vehicles’ security features, dismantle their steering columns and create direct access to their ignitions and challenged others to copycat

their crimes. Hyundai and Kia have urged TikTok and others to have the illicit content removed in accordance with the platforms’ terms of service and community standards. Approximately 9 million 20112022 model year Hyundai and Kia vehicles on the road in the U.S. today—primarily “base trim” or entry-level models, which are not equipped with pushbutton ignitions and immobilizing anti-theft devices—are or were susceptible to these social mediapromoted thefts. While Hyundai and Kia believe these vehicles are fully compliant with federal antitheft requirements, Hyundai and Kia have taken action to support the security of customers, and this agreement represents the latest step. Earlier this year, Hyundai and Kia introduced a free anti-theft software upgrade for affected customers. To date, Kia has notified more than 3 million owners and lessees of these vehicle models— covering more than 96% of eligible vehicles—that they are eligible to receive the software upgrade

and expects to notify all upgradeeligible customers by the end of May. Kia owners can find more information at ksupport.kiausa. com/ConsumerAffairs/SWLD. All affected Hyundai vehicles are eligible for the upgrade as of April. Hyundai has notified the majority of these customers, with the remainder to be completed by month-end and is leveraging targeted paid digital media to drive affected customers to HyundaiAntiTheft.com for scheduling and more information. The free anti-theft software upgrade modifies certain vehicle control modules on Hyundai and Kia vehicles equipped with standard “turn-key-to-start” ignition systems to include an “ignition kill” feature so the vehicles cannot be started when subjected to the method of theft popularized on TikTok and other social media channels. All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 43


Nearly 15% of Consumers Allow Auto Insurance Coverage To Lapse Auto and property insurance shopping rates continued to rise in Q1 2023, up 7% and 10%, respectively, compared to Q1 2022. However, as shopping has increased, the number of consumers switching carriers is beginning to decrease, indicating premiums are rising among virtually all insurers. The findings are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which includes trends in the auto and property insurance industries, as well as survey data about consumers’ behaviors and attitudes. The survey found nearly 15% of consumers owned or used a vehicle without valid coverage or had allowed their coverage to lapse within the past six months. This was likely among higher-risk consumers (with a credit-based insurance score between 300 and 500), as that segment’s yearover-year percent change in shopping dropped into negative territory, despite the overall increase in auto insurance shopping. “Insurers have shifted their focus from customer acquisition to profitability and are generally raising their rates,” said Mark McElroy, executive vice president and head of

TransUnion’s insurance business. “As consumers have found it more difficult to find a lower premium through online shopping, they are changing behaviors in response.” An Opportunity for Agents Digitalization has made online shopping for insurance far easier; however, consumers are finding their price options are not very different at the moment. As a result, there was a 25% increase in the number of consumers who say they have reached out to an agent to assist with their insurance shopping. The report noted consumers are seeking out agents for guidance on how to find opportunities for savings through bundling, as well as how to get the most value out of their policies. With the right marketing intelligence support for identifying the consumers most likely to be shopping, insurers can increase proactive outreach with the value proposition of a more comprehensive assessment of a consumer’s insurance needs. More Consumers Pass on Telematics Despite a strong desire to find lower premiums, fewer consumers are

opting for telematics programs. According to the report, the number of consumers who accepted a telematics offer was 12 percentage points lower than a year ago, dropping from 65% to 53%. The report posits a couple possible explanations for the decrease; one being consumers are driving more this year as more employees return to working in the office. Some may be nervous about the increased risk of being penalized for driving mistakes. In addition, the telematics programs have changed, becoming more complex and often delaying discounts until after a trial period has been completed. “Until recently, most telematics programs offered upfront discounts simply for opting in,” said Michelle Jackson, senior director of personal property and casualty insurance in TransUnion’s insurance business. “Many of these programs now require consumers to download an app that tracks their driving behavior and to keep it installed for several months before they are eligible to earn the discount. Given that consumers might still see an increased rate due to their driving behavior, it seems that fewer are willing to risk

an even higher premium.” Homeowners Also Looking to Save Similar to the auto insurance market, property insurance shopping increased in Q1 2023. However, with high mortgage rates and home prices, shopping activity was driven by homeowners looking for lower rates rather than coverage for a new home. The report identifies this trend as a red flag for carriers, as homeowners are likely investing in renovations in lieu of a new home purchase. This can result in a mismatch of coverage, as additions and other significant changes may not be covered in the homeowners’ existing policies. “With consumers increasingly looking to their agents for guidance on savings, right now is an ideal time for outreach,” said Jackson. “Agents can use the conversation to offer insights on how bundling policies may help lower premiums, while finding out if there have been any material changes to insured properties.” For additional insights into the personal lines insurance marketplace, the full report can be accessed here. Source: TransUnion

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autobodynews.com / AUTOBODY NEWS JUNE 2023 45


Gas Prices Fall Again By Andrews Gross Publisher Jeremy Hayhurst

Accounting & HR Manager Heather Priddy

General Manager Barbara Davies

Permissions Editor Randi Scholtes

Editor Abby Andrews Contributing Writers Mike Anderson, Ed Attanasio, Stacey Phillips, Cole Strandberg, John Yoswick Advertising Sales Joe Momber, Norman Morano Office Manager Kelly Cashman Digital Marketing Manager Bryan Malinski Art Director Rodolfo Garcia Senior Designer Vicki Sitarz

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. ©2023 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

AAA

The fear of a global economic recession leading to falling pump prices. The price for oil has dropped nearly $20 per barrel recently to the upper $60s, which has spurred the retreat for gas prices. The national average for a gallon of regular gasoline fell six cents since the previous week to hit $3.57 as of May 4. “The oil market volatility is leading to lower prices,” said Andrew Gross, AAA spokesperson. “And we are also in a pre-summer driving season lull regarding domestic demand. These two factors should keep pump prices drifting lower for now.” According to new data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.51 to 8.62 million b/d over the same week. The drop in demand is more in line with what market observers expected. The estimate could be revised when EIA releases

final demand measurements for May. Meanwhile, total domestic gasoline stocks increased by 1.8 million bbl to 222.9 million bbl. Lower demand, alongside an increase in stocks, has contributed to pushing pump prices lower. If demand remains low, drivers will likely continue to see pump prices decline. The May 4 national average of $3.57 is seven cents more than a month ago but 65 cents less than a year ago. Since April 27, these 10 states have seen the largest decreases in their averages: Texas (-12 cents), Ohio (-11 cents), Michigan (-11 cents), Delaware (-11 cents), Tennessee (-10 cents), Indiana (-10 cents), Maryland (-9 cents), Iowa (-8 cents), Florida (-8 cents) and North Carolina (-8 cents). The nation’s top 10 least expensive markets: Mississippi ($3.05), Texas ($3.11), Louisiana ($3.15), Alabama ($3.16), Arkansas ($3.16), Tennessee ($3.17), South Carolina ($3.21), Oklahoma ($3.26), Georgia ($3.28) and Missouri ($3.29). Source: AAA

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COLORADO

Larry H. Miller Ford Lakewood LAKEWOOD

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

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

OKLAHOMA

Bob Howard Parts OKLAHOMA CITY

800-888-3827 800-946-7278 Fax Hours: M-F 8am - 5:30pm sales@bhpdc.com www.bhpdc.com

United Ford PDC TULSA

WHOLESALE DIRECT

800-800-9001 800-676-8509 Fax

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

NORTH RICHLAND HILLS

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

Helfman Ford STAFFORD

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

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

TEXAS

Tommie Vaughn Motors HOUSTON

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

www.tommievaughnford.com

Town East Ford MESQUITE

972-798-4529 972-682-1290 24 Hr Fax Hours: M-Sat 7-5 jhalcomb@vtaig.com www.towneastford.com

Mac Haik Ford, Lincoln GEORGETOWN/AUSTIN

877-969-3055 512-930-6260 281-598-4370 Fax parts@machaikfl.com

autobodynews.com / AUTOBODY NEWS JUNE 2023 47


48 JUNE 2023 AUTOBODY NEWS / autobodynews.com


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