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SCRS Releases Commentary on Farmers New COD DRP Agreement Controversy Recently, industry trade publications, including Autobody News (June, 2011) have reported on the concern voiced from repair facilities across the country over intrusive elements of Farmers Insurance new COD agreement. The Society of Collision Repair Specialists (SCRS) reviewed the content, and believe that it is in the best interest of the industry to make the agreement available for public review. Insurance carriers have continued to increase pressure over repair shops to obtain the quickest/cheapest repair, while interjecting themselves further into the oversight and management of repair businesses. The industry is often disadvantaged by restriction of commu-
nication from participants of these programs, and it is important for the industry to rely on factual review of documents, rather than anecdotal musings. If we wish for business conditions to improve, it is important that our industry finds the voice to express our concerns openly and honestly without fear of being transparent. To that purpose, SCRS has highlighted some areas of interest. All recipients of this communication are notified that the materials presented are not to be construed as direction or suggestion, and is intended simply to better inform individuals acting within their own judgment, making sound business deciSee Farmers COD DRP, Page 33
Allstate to Open Electronic Communication with Non-DRP Shops by John Yoswick
Allstate Insurance will soon roll-out technology that will enable shops that are not part of the insurer’s direct repair program to communicate electronically with the insurer, much as its DRP shops do. Dan Risley, a project manager for Allstate at the company’s Illinois home office, said this new “Transactional Non-DRP” system will enable any shop to upload estimates and digital images to Allstate, receive insurerwritten estimates from Allstate, etc. “We realize not all customers use a network shop, and we want to make
it easier to do business for those shops and for our customers,” Risley said. Risley’s discussion of the forthcoming change was just one of recent news items related to insurance companies that will likely be of interest to shops. Here’s a wrap-up of some of this Dan Risley news. Insureds are shopping. Consumers shopped and switched auto insurers more aggressively in 2010 than they have for 14 years, according to preSee Allstate, Page 30
VOL. 29 ISSUE 7 JULY 2011
Two Louisiana Insurance Department Investigators Killed by Insurance Agent Two fraud investigators with the state Department of Insurance were shot and killed June 7 while trying to get information from an agent. Rhett Jeansonne, an investigator since 2006, and Kim Sledge, an 11-year employee of the inRhett Jeansonne surance department, were shot and killed by insurance agent John Melvin Lavergne. In the past, Lavergne had been cited for fraud and ordered to stop operations, Louisiana Insurance Commissioner Jim Donelon confirmed in an emotional news conference. The insurance agent had previously faced criminal charges and civil sanctions,
according to police and the insurance office. “My deepest sympathies go out to the loved ones of our two departed colleagues, in particular, the surviving spouses and children of these brave individuals,” Donelon said in a statement. Police in Ville Platte, about 50 miles north of Lafayette, got a call of shots fired Kim Sledge at Lavergne Insurance about 1 p.m., said Trooper Stephen Hammons, spokesman for Louisiana State Police. The two investigators were
REGIONAL ARTICLES in this issue...
See LA Insurance, Page 8
OK Commissioner Questions Increased Driving Record Fee . . .p. 4 Family-Owned Glass Doctor Franchise Opens in Louisiana . . . .p. 6 GM to Add 110 Jobs, $331M in Upgrades at Arlington, TX, Plant .p. 6 Joplin, MO, GM Dealer Supports Community After Tornado . . . .p. 12 CCAR Announces ‘GreenLink Shop’ Awards for TX Facility . . . .p .13 Texas Pushes Back on Federal Emissions Laws . . . . . . . . . . . . .p .13 Jackie Cooper Imports Grand Reopening in Tulsa . . . . . . . . . . . .p .14 Texas Shop Makes its Own Light Inspection Tunnel . . . . . . . . . .p. 31
NATIONAL ARTICLES in this issue...
Eileen Sottile, Quality Parts Coalition Legislative Update . . . . . . p. 10 Former GMAC, Delays IPO Due to Market Conditions . . . . . . . . .p. 18 Toyota to Face First US Sudden-Acceleration Test Trial in 2013 .p. 20 Hyundai, Kia Face South Korean Fair Trade Antitrust Probe . . . .p. 34
COLUMNS in this issue...
Attanasio — Body Shops and Yelp: It’s a Love-Hate Relationship .p. 16 Weaver — A Homemade Air Bag Light—Brilliant Stupidity . . . . .p. 21 Williams — Real Opponent in the Wholesale Parts Business . . .p. 23 Insurance Insider — The “Neutral Information Provider” . . . . . .p. 24 Danalevich — Business Financial Security Preventive Maintenance .p. 28 Franklin — How to Survive a Summer Slump . . . . . . . . . . . . . . . .p. 32 Cheney — Auto Recyclers Host Collision Panel . . . . . . . . . . . . . .p. 37
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The New Laser Welding Technology ● Two Pennsylvania Collision Associations ● NHTSA: A Car is Not a Social Networking Device
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Contents Communication with Non-DRP Shops . . 1
CCAR Announces ‘GreenLink Shop’ Awards
Attanasio - Body Shops and Yelp: It’s a
Certificates of Insurance Bill Passes
Chaney - Auto Recyclers Host Prominent
Georgia Auto Repair Tax Bill Still Alive
Danalevich - Business Financial Security
GM Shreveport Marks 30th Year of
Franklin - How to Survive a Summer
Group 1 Automotive Buys Ford, GM
Insurance Insider - Telling the Tale of the
Inspector Gadget—Making a Light Inspection
Schroeder - Chatham Parkway Collision
Legislature, Heads to Governor in TX . . . 9 in House . . . . . . . . . . . . . . . . . . . . . . . 29 Production Amid Looming Shut-Down . 15
Dealerships in El Paso, Texas . . . . . . . . 14
Tunnel to Find Paint Defects . . . . . . . . . 31
Jackie Cooper Imports Hosts Grand
Love-Hate Relationship . . . . . . . . . . . . 16
Collision Repairers in Panel Discussion . 37 Preventive Maintenance . . . . . . . . . . . . 28
Slump . . . . . . . . . . . . . . . . . . . . . . . . . 32 “Neutral Information Provider” . . . . . . . 24
Center in Savannah, GA, is All About
Dealer Partnerships . . . . . . . . . . . . . . . 26
Reopening in Tulsa, OK . . . . . . . . . . . . 14
Sisk - Nigro’s in Philadelphia Exemplifies
Community & Employees After Tornado. 12
Weaver - A Homemade Air Bag Light—
Georgia Plant . . . . . . . . . . . . . . . . . . . . 32
Williams - Apathy, the Real Opponent in
Joplin, MO, Dealer Works to Bolster
Kia To Boost Capacity At West Point,
Nissan Leaf Production Could Be Delayed
at Smyrna Plant . . . . . . . . . . . . . . . . . . 19
OK Loses 26 Auto Dealers Since 2009. . . . 6 Prevalent Airbag Fraud Prompts Increased
Penalties in New California Law . . . . . . . 8
Staged Crash Investigation Leads to LA
Arrests . . . . . . . . . . . . . . . . . . . . . . . . 15
Texas Loops Emails, IMs in With New Ban
the City’s Brotherly Love Motto . . . . . . . . 36 Brilliant Stupidity . . . . . . . . . . . . . . . . . 21 the Wholesale Parts Business . . . . . . . 23
NATIONAL
Auto Lender Ally, Formerly GMAC, Delays
IPO Due to Market Conditions . . . . . . . 18
CARSTAR Auto Body Repair Experts Hold
Third Annual Soaps It Up! Car Wash for
Make-A-Wish Foundation . . . . . . . . . . . 38
on Texting While Driving. . . . . . . . . . . . . 9
Eileen Sottile and the Quality Parts Coalition
Laws . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Hyundai, Kia Face Fair Trade Commission
TX Officials Push Back on Federal Emissions TX Senate Votes to Beef Up Texas Insurance
Department . . . . . . . . . . . . . . . . . . . . . . 9
Offer Legislative Update . . . . . . . . . . . . 10
Antitrust Probe on Auto Parts Pricing
After Allegations . . . . . . . . . . . . . . . . . 34
Use of Credit-based Insurance Scores
School Uses Nanotechnology to Convert
Volkswagen Opens Chattanooga,
SUVs Now Safer Than Compact Cars in
Upheld in Texas . . . . . . . . . . . . . . . . . . 10
Tennessee Plant. . . . . . . . . . . . . . . . . . 19
COLUMNISTS
Yoswick - Allstate to Open Electronic
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Exhaust Heat into Electricity . . . . . . . . . 20
an Accident, IIHS Report Says . . . . . . . 22
Toyota to Face First US Sudden-Acceleration
Test Trial in 2013 . . . . . . . . . . . . . . . . . 20
Southwest
for TX Facility . . . . . . . . . . . . . . . . . . . 13
Indexof Advertisers
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
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Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 14 Audi Wholesale Parts Dealers . . . . 31 Autoland Scientech. . . . . . . . . . . . . 21 BMW Wholesale Parts Dealers . . . . 27 Chevyland . . . . . . . . . . . . . . . . . . . . 29 Chief Automotive. . . . . . . . . . . . . . . . 9 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Dallas Dodge . . . . . . . . . . . . . . . . . 40 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . . 6 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 17 Fowler I-240 Chrysler-Jeep-Dodge. . 7 Garmat USA . . . . . . . . . . . . . . . . . . . 4 Gene Messer Hyundai . . . . . . . . . . 10 Global PDR Solutions . . . . . . . . . . . 15 GM Wholesale Parts Dealers . . . . . 32 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 26 Huffines Hyundai Plano . . . . . . . . . 13 Hyundai Wholesale Parts Dealers . 19
Kia Motors Wholesale Parts Dealers. 25 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 39 Mark’s Casa Mitsubishi. . . . . . . . . . 24 Mazda Wholesale Parts Dealers . . . 33 Mercedes-Benz of Oklahoma . . . . . 23 Mike Calvert Toyota. . . . . . . . . . . . . 16 Mitsubishi Wholesale Parts Dealers. 30 MOPAR Wholesale Parts Dealers . . 11 NACE/CARS 2011 Registration . . . 35 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 33 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 31 Safety Regulations Strategies. . . . . 26 Scoggin-Dickey Buick . . . . . . . . . . 12 Scorpion Coatings . . . . . . . . . . . . . . 8 Suzuki Wholesale Parts Dealers . . . 28 Toyota Wholesale Parts Dealers . . . 34 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 29 Volvo Wholesale Parts Dealers . . . . 34 Young Chevrolet . . . . . . . . . . . . . . . 22
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 3
Ramsay Gillman, Owner of 14 Texas Dealerships, Dies in Houston Texas automotive dealership owner Ramsay Gillman, who built his family business into one of the state’s largest dealer groups, died June 3 at his home in Houston at 67 years old. Gillman was a second-generation owner of the Gillman Cos. Ramsay Gillman has served as Owner/President and Chief Executive Officer of The Gillman Companies and was the Chairman of the Board of The Gillman Companies. In early 2010, he sold 99 percent of the company to his three children— daughter Stacey Gillman-Wimbish and sons Jason and Christopher. “My father was an industry leader,” said Stacey Gillman-Wimbish, 44, to the Houston Chronicle. “He loved to get involved and was not afraid to take the time necessary to affect change.” Ramsay’s father, Frank, started the business when he opened a Pontiac dealership in 1938. Ramsay started his automotive career working in the parts department of his father’s Pontiac dealership. After attending the General Motors Dealer Management Institute and
other vocational schools, he became an authorized dealer in 1967. Ramsay and his brother Martin later took over the business and in 1998 Ramsay was able to buy out Martin.
Late Texas auto dealer Ramsay Gillman (seated) in 2008 with his children (l-r): Stacey Gillman-Wimbish, Christopher Gillman and Jason Gillman
Ramsay Gillman participated in numerous charitable organizations, both on state and national levels. According to his biography, he received the 1996 Sports Illustrated All-Star
OK Commissioner Questions Increased Driving Record Fee
Oklahoma Insurance Commissioner John Doak requested on June 10 that Oklahoma’s attorney general determine whether a 2010 bill that increased the costs of driving records was properly enacted by the state’s Legislature. The bill increased the cost of obtaining a motor vehicle report from the Department of Public Safety from $10 dollars to $25, a 150 percent increase, according to the Oklahoma Insurance Department. SB 1556, introduced in the Senate in 2010, was approved by the Legislature and signed by then Gov. Brad Henry in 2010. As a candidate for office in 2010, Doak sought an injunction to prevent the bill from being implemented and asked the court to nullify the measure. Doak withdrew that petition, which he filed as a citizen, after being elected to office in November of 2010. In his request for an attorney general’s opinion, Doak argues that the bill is a revenue raising measure, noting that all of the fee increase and a portion of the original fee would be allocated to the General Revenue Fund. The new fee, Doak wrote in the letter to the attorney general, “…is so wholly out of proportion to the expenses incurred by the Department of Public Safety in administering Motor
Vehicle Reports that it cannot be considered anything but an attempt to raise revenue.” Doak’s main objection is that was not properly enacted. Article 5, Section 33 of the Oklahoma Constitution requires that revenue raising measure originate in the House, may not become law without a vote of the people unless approved three-quarters of each chamber and may not be passed during the last five days of the session. The bill originated in the Senate, did not receive three-quarters approval in the House and was passed by the Senate in the last four days of the 2010 session and by the House on the final day of the session. “This fee increase impacts everyone and I believe it was not properly implemented,” Doak said according to Insurance Journal. “Hopefully, the attorney general will reach the same conclusion.”
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Dealer Award, presented by the American International Automobile Dealers Association, “for his lifelong contribution to the automotive business and commitment to numerous charitable organizations.” He has also served as President of the Houston Automobile Dealers Association, Vice President of the Texas Automobile Dealers Association, and was appointed Vice Chairman of the Texas Motor Vehicle Commission from 1984 through 1987 by the Governor of Texas. He was currently serving as a director of the Texas Department of Motor Vehicles as appointed by the Governor of Texas and serves though February of 2013. In 1997, the State of Texas House of Representatives passed House Resolution No. 350, officially commending Gillman for his “outstanding achievements” and years of dedication to the State of Texas, the automobile industry, his community, and charitable organizations. Gillman Cos. now controls 14 dealerships in Texas. They include
three groups of eight franchises in metropolitan Houston; Honda, Subaru and Mitsubishi stores in San Antonio; and Chevy, Honda and ChevroletBuick-GMC stores in Harlingen and nearby San Benito, south of Corpus Christi near the Mexican border. The dealership group generated $497 million in revenue in 2010 with new vehicle sales of 10,727 units. He is survived by Stevie Gillman, his wife of 35 years, their three children and four grandchildren. A celebration of Ramsay Gillman’s life was held on June 7 at the George H. Lewis Funeral home in Houston. A memorial service also took place at St. Luke’s United Methodist Church on June 8. The family asks that any donations be directed to the Fort Bend Women’s Center (P.O. Box 183, Richmond, TX 77406), Houston Automobile Dealers Association Scholarship Fund (P.O. Box 16550, Sugar Land, TX 77496-6550), or National Automobile Dealers Charitable Foundation (P.O. Box 9133, Tacoma, WA 984900133).
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Family-Owned Glass Doctor Franchise Opens in LA
The Glass Doctor® of North Central Louisiana franchise owned by Kane Banks is now open and ready to “fix your panes!” Glass Doctor of North Central Louisiana offers mobile residential, automotive and commercial glass services to Lincoln and Ouachita Parishes. The showroom and shop are open 8 am to 5 pm Monday through Friday, 8am to 12 Saturdays and a 24hour emergency service is available. “We’re here for Ruston, Monroe and the surrounding area’s glass needs, including everything from windshield replacements to storefronts to custom glass shower enclosures,” Banks said. Upon purchasing the franchise, Banks attended the most in-depth training in the glass services industry, a 10-day training course on the latest glass repair technology, customer service techniques and marketing methods held at the Glass Doctor University Training Center in Waco, Texas. The Glass Doctor of North Central Louisiana shop is located at 1705 Industrial in Ruston. For more information call (318) 232-3012 or visit http://www.glassrepairmonroela.com.
GM to Add 110 Jobs, $331M in Upgrades at Arlington, TX, Plant
General Motors Co. said May 27 it will add 110 jobs at its SUV factory in Arlington, Texas and invest $331 million to upgrade the plant. The Detroit-based automaker will upgrade the plant with new equipment and tooling machinery. The investment is part of a broader plan announced by GM earlier this month to spend $2 billion to upgrade 17 US sites in eight states. GM builds four full-size SUV models at the Texas plant: the Chevrolet Tahoe and Suburban, the GMC Yukon and the Cadillac Escalade. The 57-year-old factory employs about 2,400 workers and was last expanded in 2001. “This investment will allow us to continue building award-winning full-size SUVs that offer better fuel efficiency than ever before without sacrificing the features and functionality they’ve come to expect,” GM manufacturing manager Larry Zahner said according to the Detroit News.
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Corpus Christi Police Hold VIN Etching Event
On June 4 Corpus Christi police made it harder for local auto thieves to steal or burglarize cars. On June 4 the department hosted a free vehicle identification number etching event at a local grocery store and a vehicle safety assessment at another. Officers were on hand to inspect how vulnerable each car is, offering tips to make them more secure. “The summer is here and many people will be parking their cars at the beach and leaving valuables inside,” said Julie Garcia, a police spokeswoman. The first auto safety event was from 10 am to 2 pm at H-E-B plus, where officers performed the VIN etching. The second was held 3 to 6 pm at H-E-B plus in Flour Bluff, where each vehicle was given a theft reduction report card. At the first event, officers used acid to etch the VIN number of vehicles into each of its windows, making it harder for thieves to change its identity for sale and easier for police to recognize if stolen, police said. For more information contact the Auto Theft Task Force at 8862872.
OK Has Lost 26 Auto Dealers Since 2009
Chrysler and General Motors’ bankruptcy filings coupled with the recession contributed to the closure of many auto dealerships in the state of Oklahoma. But 10 new dealerships have sprung up in the past few years, including several Hyundai stores, Fowler Volkswagen in Norman and a new Fiat dealership in Edmond. Since 2009, the year Chrysler and General Motors filed for bankruptcy, many dealerships have consolidated, changed brands or closed altogether. Some whose franchises were discontinued switched to selling used cars. According to the National Automobile Dealers Association, the total number of dealers nationwide is 17,700, down from 20,010 two years ago, an 11.5 percent drop. In Oklahoma, there were 26 dealers who did not renew their license with the Motor Vehicle Commission from 2009 to the present. Steve Rankin, president of the Oklahoma Automobile Dealers Association, said he disagreed with General Motors’ and Chrysler’s decision to terminate many dealers, especially those that carried Cadillac, which faces fierce competition from Lexus and BMW, according to The Oklahoman.
6 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Interstate 45 Tops List for Most TX Teen Car Crashes
New data shows the number of crashes involving teen drivers is higher on certain roads and highways in Texas, according to Allstate. Interstate 45 in Harris County had more car crashes involving teen drivers than any other roadway in Texas between 2006 and 2010, according to the data provided to Allstate by the Texas Department of Transportation. Interstate 10, also in Harris County, had the second highest, and Interstate 10 in Bexar County had the third most. Motor Vehicle Crashes by Roadway and County Involving Drivers Age 15-19 from 2006-2010 in Texas: Roadway/County, Total Crashes I-45, Harris County
3,091
I-10, Bexar County
1,727
I-10, Harris County
1,910
I-35, Bexar County
1,668
I-410, Bexar County
1,600
SL1604, Bexar County I-35, Travis County
1,648 1,579
I-635, Dallas County
1,489
FM 1960, Harris County
1,365
US 59, Harris County
1,440
I-45, Montgomery County 1,276
I-10, El Paso County
US 281, Bexar County
I-35 E, Dallas County I-610, Harris County
1,231
1,201
1,162
1,112
The time between Memorial Day and Labor Day is known as the “100 Deadliest Days.” More teens die in car crashes during this period than during any other. “Car crashes are the number one killer of Texas teens,” said Michael Walker, an Allstate agent in Austin. Please visit www.dot.state.tx.us.
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LA Insurance
transported to the hospital, where they were pronounced dead, he said. It was not immediately clear why specifically they had gone to the business. Before turning his gun on himself, Lavergne barricaded himself for hours inside his Ville Platte, LA agency, Lavergne’s Insurance Agency, while police surrounded the building, state police say. “I have personally spoken to members of Ms. Sledge’s and Mr. Jeansonne’s families to express my sympathies over this tragic and unnecessary situation,” Donelon says in a statement. “My deepest sympathies go out to the loved ones of our two departed colleagues, in particular, the surviving spouses and children of these brave individuals.” In November 2009 the Department of Insurance issued Lavergne, then 64, a cease and desist order, six-month license suspension, and a $16,500 fine for allegedly pro-
viding fraudulent proofs of insurance to the Lafayette Department of Motor Vehicles on several occasions. Lavergne was issued a casualty, property and vehicle physical damage license in April 1977 which was valid through April 2011, acording to a statement from the insurance department at the time. Lavergne was also issued a life, accident and health license in May 1973, which was valid through April 2010. Following this series of events, Insurance Commissioner Donelon may make some changes to policies within the Insurance Department. Investigators don’t currently carry weapons but can request that they be accompanied by state police on visits of this nature, Donelon said. “We are seriously considering arming our investigators,” a visibly shaken Donelon said according to Insurance Journal during a news conference in Baton Rouge. Before making any changes the department would first review safety and security procedures, but Donelon didn’t know how long that would take.
8 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Prevalent Airbag Fraud Prompts Increased Penalties in New California Law Consumers must navigate a number of potential dangers when considering a used car. They have to make sure the mileage is accurate, determine if the engine is in reasonable condition, and ensure that the brakes and suspension are in working order, to name just a few. However, even the most conscientious buyer may not think about whether the airbags are in their original condition, especially if the buyer is purchasing a car with a salvage title (a car that had previously been in an accident). Because of this naivety, airbag fraud is becoming increasingly common. National Highway Transportation Administration (NHTSA) issued a report on fatal crashes in 2008 that revealed troubling information about used airbags. In 255 of 1,446 fatal accidents, airbags had not been replaced after a previous crash. In nearly 50 percent of all fatal crashes with non-deployed airbags, these safety devices were defective or simply missing. So while non-deployments are rare, fa-
talities are likely when airbags do not work as intended.
Airbag Fraud: Insurance Fraud and Refund Scams In the abstract, airbag fraud occurs when the original airbag is not replaced or calibrated to its previous condition. Airbags are expensive materials and the replacement process is a delicate exercise. Unscrupulous used car dealers more likely to shirk this process to save time and money in getting cars ready for resale. By reducing the amount of money put into a car, the potential profit increases. Repair shops also engage in this practice for the same reasons. They stand to make more money by purchasing airbag parts very cheaply over the Internet, yet they can charge a customer or insurance company full price for the parts and labor. As such, airbag fraud has two distinct components: insurance fraud, where the airbag cavity is See CA Airbag Law, Page 29
Texas Loops Emails, IMs in With New Ban on Texting While Driving
Texas is set to join numerous other states across the country that have begun cracking down on texting while driving. The Texas House of Representatives has taken action to reduce the number of accidents relating to distractions caused not only by texting, but by sending instant messages and emails while driving. The Texas House approved a bill on June 4 that will place a ban on sending and receiving texts, emails and IMs (instant messages) while driving. This bill is one of the first to deal with the barrage of other distracting actions beyond text messaging that have become available on cellphones with recent technological advancements. Many Texas cities already have their own ordinances banning texting and cellphone usage, such as Austin, El Paso, Dallas and San Antonio. However, according to Gainesville Police Department Public Information Officer Belva McClinton, the city of Gainesville does not have any ordinances of this nature. If Texas Gov. Rick Perry signs the bill into law, it will not take effect until the first of September.
If a bill such as this passes changing the law, McClinton says, “(Gainesville police) usually warn people for a while before issuing citations because some people don’t read or watch the news,” according to The Oklahoman. Gainesville residents had mixed emotions about the bill, ranging from reprieval to cautious scolding, according to reports made by The Oklahoman. Two new Texas distracted driving laws are already in effect, according to the Texas House. One bans teen drivers from using cellphones and the other prohibits drivers from using handheld cellphones in school crossing zones.
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Certificates of Insurance Bill Passes Legislature, Heads to Governor in Texas
The Texas Legislature May 31 passed a measure that requires regulation and approval of property and casualty certificate of insurance forms provided to insureds as proof of coverage. Insurance agents traditionally have been asked to provide the certificates to insureds and interested parties. As a result agents are often brought into disputes over policy terms and coverages because of language contained in the certificates. Under Senate Bill 425 only approved certificate of insurance forms may be issued to an insured. It prohibits a property/casualty insurer and agents issuing certificates of insurance or other documents intended to be used as proof of coverage “if the certificate or document alters, amends, or extends the coverage or terms and conditions provided by the insurance policy referenced on the certificate or document.” Penalties may be determined by the Texas Department of Insurance for noncompliance, and TDI may collect a fee of up $100 for the filing of a new or amended certificate of insurance form.
TX Senate Votes to Beef Up Texas Insurance Department
The Texas Senate voted on May 23 to renew the state Department of Insurance and give it stronger enforcement penalties when companies lose challenges to their rates. Lawmakers are considering competing bills to extend the influence of the agency that regulates the insurance industry. The legislation is required under the Sunset process, under which state agencies are evaluated for effectiveness and necessity every 12 years. The insurance department was technically due to be renewed during the legislative session in 2009, but state lawmakers failed to complete the process. The agency was allowed to continue operating under a temporary measure. Both the House and Senate bills keep the current system that lets companies file rate changes and start collecting before they are approved by the state, but the Senate version gives the agency the ability to hit companies with heavy fines if they challenge state orders to lower rates and lose. The same provision failed two years ago. Differences between the House and Senate version of the bill must still be negotiated.
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 9
Eileen Sottile and the Quality Parts Coalition Offer Their Legislative Update The Quality Parts Coalition (QPC) is a group of about 80 representatives from different companies and associations that focuses on preserving competition of auto repair parts by supporting the availability of lowercost alternative collision repair parts for consumers and insurers. Eileen Sottile, a representative for QPC who has been instrumental in getting legislation together for the organization to present to Congress, gave a legislative update to Eileen Sottile Autobody News on the group’s upcoming endeavors now that there is a new Congress on the hill. QPC came about in response to a 2005 patent infringement suit that Ford brought to the International Trade Commission (ITC) against Keystone, alleging design patent infringement of exterior collision repair parts for the 2005 F-150. It was after this case that coalition members realized they “needed a permanent change to the patent laws,” said Sottile. According to Sottile, up to that point people in the aftermarket crash part industry didn’t think they would have design patent issues on cosmetic parts. Ford brought yet another lawsuit against LKQ/Keystone following the F-150 case, and Sottile said that with-
out a change in the patent laws carmakers can continually come back with lawsuits on a part-by-part basis and bankrupt the aftermarket parts industry. Sottille says QPC was created in response to these issues to try to find a solution. This group represents all aspects of the repair industry, including; insurers, collision shops, seniors, retailers and aftermarket parts companies and manufacturers. Some consumer groups have also voiced their support for QPC’s legislative endeavors, although they are not QPC members. “In most cases we didn’t feel they even deserved a patent,” said Sottile. The cosmetic parts in question are so similar to their aftermarket counterparts that Sottile said that QPC has a hard time seeing how they rose to the standard of getting a design patent. According to Sottile, the car companies currently have a “near monopoly” on the crash parts market with 72% control of the market and these design patents will only increase that holding. QPC is gathering support for legislation the group may introduce in Congress sometime this year. QPC originally introduced a bill into Congress in 2009; it aimed to make the act of providing a part solely for the purpose of repair exempt from design patent infringement. It was based on current laws in Australia and the UK known as “repair clauses.”
Use of Credit-based Insurance Scores Upheld in Texas
The Supreme Court of Texas came to the conclusion that Texas law permits an insurer to use race-neutral factors in credit scoring to price personal lines of insurance. A class action lawsuit over the use of credit scores in pricing insurance coverage brought this issue up from the Ninth Circuit. In Ojo v. Farmers Group, et al, the state Supreme Court clarified that “Texas law prohibits the use of racebased credit scoring, but permits race neutral credit scoring even if it has a racially disparate impact.” The suit was brought by Texas resident Patrick Ojo, an AfricanAmerican, whose home was insured by Farmers, Justice Green wrote in delivering the opinion of the Court. Despite the fact that Ojo had never made a claim on his policy, the insurer raised his rates by 9 percent. “Ojo alleges that Farmers in-
creased the premium as a result of unfavorable credit information acquired though its automated credit-scoring system,” Green said, according to Insurance Journal. Ojo sued Farmers on behalf of himself and other racial minorities whose premiums increased due to Farmers’ use of a credit-scoring system. While Ojo did not assert that he or other minorities were intentionally discriminated against, his complaint alleges that Farmers’ “credit-scoring systems employ several ‘undisclosed factors’ which result in disparate impacts for minorities and violate the federal Fair Housing Act (FHA),” according to Insurance Journal. The Court reject Ojo’s argument as it relates to the FHA, stating that Texas law “provides that ‘[n]o Act of
See Credit Scores, Page13
10 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
That bill did not get voted on by the full Senate and House before their session closed.
QPC is currently working in a bipartisan manner to explore potential legislative solutions to the design patent issue for introduction to the current Congress that is in session. QPC has had several meetings with Congress, including a meeting with the House Intellectual Property Subcommittee and a full Judiciary House meeting. According to Sottile, the support for reforming design patent laws with a repair clause is there, the group is just awaiting reintroduction in Congress. “If a patent is awarded, competition in the secondary market should still be permitted,” said Sottile. Sottile drew the distinction that QPC has no intention of prohibiting the protection a patent provides primary competitors against each other
with the legislation—”but in the secondary market, when the part is only provided for repair, we don’t think it should be subject to design patent enforcement,” said Sottile. For example, QPC believes that design patent laws should prevent BMW’s signature grille from Ford recreating it and using it on their Fiesta, but it should not prevent aftermarket parts companies from recreating the BMW grille for replacement on a damaged BMW vehicle. Sottile also argues that the preservation of competition in the parts market in this manner ultimately allows for the consumer to benefit. “There’s a big cost difference between these parts; about 25 to 60 percent,” said Sottile. “The timing is critical in this economy.” For more information about QPC and their legislative endeavors please visit keepautopartsaffordable.org. The full text of the QPC’s past legislation can also be seen at www.autobodynews.com.
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www.autobodynews.com | JULY 2011 AUTOBODY NEWS 11
Joplin, MO, Dealer Works to Bolster Community & Employees After Tornado Crossroads Chevrolet-Cadillac in Joplin, MO, served as as a collection point for community donations of clothing, food, water and other supplies for those hit hard by the May 22 tornado. A cluster of General Motors franchise dealers in and near Joplin recently weathered quite a storm and are continuing to pick up the pieces and do the best they can to support their local community in healng. The dealers also recently broke out their checkbooks and more to help the community recover from the single deadliest tornado in national history. Crossroads Chevrolet-Cadillac was spared by the killer twister, but the automaker said the storm’s wicked winds touched the lives of “nearly everyone working there.” Dealership owner Dan Auffenberg explained on Faces of GM blog that on the day after the tornado struck May 22, nine or 10 employees showed up for work. Aufffenberg immediately recognized the severity of the situation and sent them home, saying, “You
don’t need to be here. You need to be home helping your families,” according to Auto Remarketing News. As of that point, five employees of Crossroads had lost their homes to the storm, and the service manager’s wife had lost her mother. “We’re doing everything we can to help the employees of Crossroads Chevrolet come back from this tragic storm,” Auffenberg said according to Auto Remarketing News, adding that he has committed $50,000 to help his employees deal with the storm’s aftermath. Auffenberg said the money is dedicated to making sure his employees “make it through.” Meanwhile, Crossroads Chevrolet-Cadillac also served as a collection point for community donations of clothing, food, water and other supplies for those hit hard by the tornado and its aftermath. “Everywhere you look is rubble, devastation and destruction,” GM officials observed. The town in southwest Missouri saw a death toll of more than 140 peo-
ple, and the tornado destroyed scores of homes and buildings, including the local hospital. “Yet, as you look closer, you see people attempting to clear a patch of land, an American flag snapping in the breeze and a sign of thanks,” GM management highlighted. “At that point, you realize that Joplin, Missouri, is going to survive because of the residents who live here and the assistance from people around the country.” And some of these people from throughout the country include Crossroads’ dealer colleagues from neighboring areas. Chevrolet area sales manager Gabriel Ismaio doesn’t live in Joplin, but it is part of his territory. When he first arrived the day after the tornado hit, Ismaio admitted it was difficult to grasp what he was observing. “When you see it on the news, you only see it for a few seconds, then it goes away. But when you’re here in real life, it hits you pretty hard,” Ismaio said, according to Auto Remarketing News.
So Ismaio and Chevrolet zone manager Ken Sadowski contacted other dealers in their region. “They all stepped up to the plate and they all helped,” said Ismaio, who noted other GM dealers came through with a total of $80,000 for the relief effort. Previously, the GM Foundation provided a $100,000 donation to the American Red Cross, and two fullsized Chevrolet vans were presented to the local YMCA. Built at the Wentzville, MO, plant, these vans were to be used by the Children of the Storm program, which provides a safe place for youngsters to go while their parents rebuild the families’ shattered lives. All told, contributions to the Joplin community from the GM family of dealers, employees and the corporation now total more than $250,000. “We’re here to help moving forward,” Auffenberg said, according to Auto Remarketing News. “It’s going to take a long time to rebuild this community, and we’re here for
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our employees and for the city of Joplin.” Moreover, the National Automobile Dealers Association Charitable Foundation continues to actively assist dealers in recovering from this tornado as well as other devastating weather and flooding. “We’ve been very active,” said Bruce Kelleher, NADA executive vice president. “We’ve already sent checks to dealers in Iowa and Alabama to present to their employees.” Since 1992, the foundation’s Emergency Relief Fund has contributed more than $5 million to nearly 6,500 dealership employees victimized by natural disasters. “In letters and phone calls we’re receiving, dealers and their employees are telling us that they’re so grateful for receiving financial assistance,” Kelleher added. “They’re just so appreciative that the foundation is there to provide some help and relief.” Dealership employees who experience financial hardships caused by natural disasters can contact the foundation at (800) 252-7233 to apply for assistance.
Continued from Page 10
Credit Scores
Congress shall be construed to invalidate, impair, or supersede any law enacted by any State for the purpose of regulating the business of insurance, . . . unless such Act specifically relates to the business of insurance.’” The FHA, the Court said, does not relate specifically to the business of insurance. In addition, the Texas Insurance Code allow the use of credit information to develop rates, except when its use constitutes “unfair discrimination.” While the insurance code does not specifically define the term “unfair discrimination,” Green wrote, it does clarify that rates may not be based on an “individual’s race, color, religion, or national origin.” “This decision will help add clarity regarding the use of insurance scores and the inappropriateness of disparate impact tests for property casualty insurance,” said Joe Woods, vice president for the Property Casualty Insurers Association of America (PCI). With this ruling, the Texas Supreme Court affirms previous con-
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CCAR Announces ‘GreenLink Shop’ Awards for TX Facility
An auto repair facility in Texas was recognized by the Coordinating Committee For Automotive Repair (CCAR) as one of the group's GreenLink Shops for the month of May on June 1. The GreenLink Shop status is an extension of CCAR’s CCAR-GreenLink Environmental Compliance Assistance Center and S/P2 Safety and Pollution Prevention E-learning Program—designed to promote consumer confidence in local automotive repair facilities’ environmental/safety awareness and stewardship. The new GreenLink Shop is; Sterling McCall Nissan Collision Center in Stafford, Texas. “CCAR is proud to recognize these newest members of the GreenLink Shop program and their commitment to best practices in environmental and safety processes,” said Daren Fristoe, CCAR president and chief operating officer. CCAR requires that repair facilities seeking the GreenLink Shop recognition must maintain high standards of excellence in 10 areas. For more information please visit www.ccar-greenlink.org.
TX Officials Push Back on Federal Emissions Laws
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Expanding on the push-and-pull between Washington and Texas on environmental regulations, the state’s attorney general has called federal regulations meant to cut greenhouse gases from automotive tailpipe emissions unlawful, according to the Austin American-Statesman. The federal government is pushing “hastily enacted, cascading regulations” on states and businesses, Attorney General Greg Abbott argued in a brief filed June 3 on behalf of nine states in the US Court of Appeals for the District of Columbia Circuit. Other states signing on to the brief are Alabama, Georgia, Mississippi, Nebraska, North Dakota, South Carolina, South Dakota and Virginia. The tailpipe emission rules, written by the US Environmental Protection Agency and the US Department of Transportation, requires automakers to improve fleetwide fuel economy and reduce fleetwide greenhouse gas emissions approximately 5 percent every year , starting with 2012 model year vehicles. Federal officials have said that the rules will cut foreign oil use and that lower emissions will cut consumers’ costs at the gas pump. The tailpipe rules are among six greenhouse gas-related regulations Texas is challenging.
The underlying argument from Texas on emissions issues: The fundamental finding that greenhouse gases are a public health threat is scientifically flawed. Texas officials have also argued that complying with the regulations will lead businesses to cut jobs as they spend money to comply with the rules. In 2009 , the EPA issued an endangerment finding that carbon dioxide emissions threaten the public health and welfare of current and future generations. The finding, which opened the way to further regulations, including the one on tailpipe emissions, spun out of a 2007 U.S. Supreme Court ruling that the EPA has the authority to regulate greenhouse gases. The Texas brief comes in a case pitting some states and businesses against the EPA, yet the Obama administration appears unlikely to back down, according to the Austin American-Statesman. “EPA’s regulatory actions are of critical importance to the nation, and defending against these challenges will remain one of our highest priorities in 2011,” Ignacia Moreno , assistant attorney general for the US Justice Department’s environment and natural resources division, said in a January speech.
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 13
Group 1 Automotive Buys Ford, GM Dealerships in El Paso, Texas
Automotive retailer Group 1 Automotive Inc said it acquired Ford Motor Company’s and General Motors Co’s dealerships in El Paso, Texas to strengthen its brand portfolio of new and used cars. The Shamaley Ford and Shamaley Buick-GMC dealerships in El Paso are expected to generate $190 million in annual revenues, the Houston-based company said in a statement according to Reuters. “The acquisition of Shamaley Ford and Shamaley Buick-GMC will complement the BMW of El Paso and MINI of El Paso dealerships that Group 1 acquired in April,” Chief Executive Earl Hesterberg said. Group 1 operates 105 dealerships in the U.S. and U.K. that offer 30 brands of automobiles.
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Jackie Cooper Imports Hosts Grand Reopening in Tulsa, OK Jackie Cooper Imports, an Oklahoma dealership specializing in luxury import cars, hosted their grand reopen-
ing celebration on June 16 at the dealership's location in Tulsa, OK. The dealership has been serving the Tulsa market since August of 1991 and hosted this reopening to celebrate the dealership’s remodel and new building addition. The event ran from 6 to 8, and included food and live music from Cynthia Jesseen and the Jambalaya Jass Band. The expanded, remodeled Mercedes-Benz Autohaus now encompasses 8869 square feet. The addition allowed the dealership to expand and add an expanded Mercedes loaner fleet, a larger show-
14 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
room and customer lounge (with more services including media enhancements & refreshments), inside delivery area, expanded service area and scheduling capacity, enlarged service drive, and a full-time concierge. The building’s architecture was designed by Michael Dwyer and came
The theme of the event was “An Evening of Burlesque” and the dealership was able to entertain the over 600 attendees throughout the evening. Guests were welcomed by costumed greeters with party favors (garters and rhinestone necklaces), entertained by a 7-piece band and costumed singers and enjoyed clothing and jewelry fashions presented by Saks Fifth Avenue. The opening coincided with the arrival of the 2012 Mercedes-Benz CLS.
Jackie Cooper Imports left to right: Richard Wasson, Mercedes Sales Manager, Steve Lujan, General Sales Manager, Andy Truman, Porsche Sales Manager, Greg Kach, Managing Partner, Jackie Cooper, Partner
to life through Contractor Stava Construction of Tulsa. The dealership is located on 93rd and Memorial Drive in southeast Tulsa.
Some of the event’s over 600 attendees lined up to watch the 7-piece band
For more information please visit www.jackiecooperimports.com.
GM Shreveport Marks 30th Year of Production Amid Looming Shut-Down GM announced in 2009 that the Shreveport, LA, plant would finally shut down for good no later than June 2012, according to the Shreveport Times. The plant’s work force has shrunk from a high of more than 3,000 people working three shifts around the clock to 800 now, all working one 10hour shift, four days a week. Now as the plant celebrates its 30th year of production in Shreveport, GM held a public open house June 16, in part to remind locals of the plant’s history in the area. “We’ve called northwest Louisiana home for the past 30 years, and we are proud of our rich history in the community,” Plant Manager Michael Dulaney said to the Shreveport Times. “On June 16, we’re opening our doors, so that our friends and neighbors can visit our plant and learn more about our employees and products.” GM spokeswoman Donna McLallen said there has been no change to the shutdown date. GM recently announced, without giving specifics, that some plants
across the country may be restarted or saved from closure, but there has been no indication that Shreveport is one of them. Locals are hoping that the plant will be considered for reopening at some point in the future. Doug Ebey, former president of Local 2166 of the United Auto Workers union, raised the ire of public officials after calling them out in a May 8 guest column in the Shreveport Times. Ebey charged locals to hold public officials accountable for a perceived lack of outcry that the local GM plant is closing. The Caddo Parish Commission responded June 1 with nothing but support for the ailing factory. It recounted the commission’s contributions to and support of the plant since 1978. Ken Epperson, President of the Caddo Parish Commission, said the parish government has done everything it can to secure the future of the local GM plant. To date, the Caddo Parish Commission has given back in rebates to GM a total of $6.5 million, not to mention acres of donated land.
The commission also has joined a work group led by the North Louisiana Economic Partnership that is focused on finding ways to keep the plant open. Additionally, state and local officials have come together several times to meet with GM’s corporate executives. “It’s just so important,” Epperson said of the plant’s economic impact. “The suppliers are going to be hit, too. It’s going to devastate the economy.” GM’s public open house on June 16 included free tours on a first-come, first-served basis from 9:30 am to 4 pm. GM is hosting open houses this year at each of its 54 U.S. facilities as a way to recognize the role automotive manufacturing plays in communities across the United States, a news release states. At its peak, GM Shreveport had more than 3,000 employees and its lineup of products included the Chevy S10, Hummer H3, GMC Colorado and Chevy Canyon. It now produces only the latter two.
In January 1994, 2,500 workers went on strike, barely a month before then-President Bill Clinton came to speak at the plant. The plant was never fully able to rebound from that strike; the good news always coming sandwiched between the increasingly more frequent news of shutdowns and layoffs.
Staged Crash Investigation Leads to La. Arrests
State police say a yearlong investigation led to the arrests of seven people accused of staging vehicle crashes to collect fraudulent property and injury claims in Louisiana. Investigators say they are still looking for an eighth person who took part in the scheme. The arrests made on May 31 stemmed from a federal indictment returned on May 12. In all, investigators say the suspects received more than $400,000 from 2003 through 2010 as a result of the staged crashes. The majority of the staged crashes occurred on a portions of U.S. Highway 90 in Lafayette Parish, LA.
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Body Shops and Yelp: It’s a Love-Hate Relationship with Ed Attanasio
The other day I overheard a woman talking on her cell phone. I couldn’t help it. She was upset and yelling. “Try me, buddy,” she screamed into the phone. “I will Yelp you right out of business!” Wow, I thought. ‘Yelp’ is now a verb (like ‘Google’), and obviously a part of some people’s daily language. If you don’t know about Yelp, it’s a nationwide review site where people post comments about their experiences with particular businesses. It promotes itself with the tagline: Real People. Real Reviews. It’s easy to find at Yelp.com. For many companies, including body shops, Yelp can boost a business with great reviews or damage their bottom lines with snarky comments and low ratings from unhappy customers. The problem is that those ‘unhappy customers’might really be jealous competitors, terminated former employees, or a disgruntled ex-spouse or two.
San Francisco Attorney Martin Zurada is putting together a suit against Yelp on behalf of G&C Autobody, contending that the website is manipulating customer reviews to generate revenue for the startup
Yelp is currently getting unfavorable reviews from a lot of body shops throughout the country due to their policies on editing the reviews that are posted. Some shops are suing the San Francisco startup or considering doing so. They allege that the website manipulates customer reviews while the company claims that their system is done by computers, not people with an agenda, such as Yelp advertising salespeople, for example. Martin Zurada, a San Francisco attorney who has represented several
collision repair companies in different capacities over the years, is currently in the process of putting together a civil suit on behalf of Gene Crozat, owner of G&C Auto Body, with seven locations in Northern California. Zurada has been watching the Yelp situation for quite some time and he believes the website is manipulating its review system to benefit itself and generate increased revenues as a result. “As a business owner, the Internet has a lot of power, obviously, because people are Googling, Yahooing and Yelping all the time and looking at your business online,” Zurada said. “We know that people are going to read the reviews, but the business owners are rarely given an opportunity to respond to any of the reviews or comments being posted, or at least test these claims online.” Zurada questions the accountability of a site that allows anyone to post reviews without offering a chance to question their reasons. “The motives of these customers are never discussed in these reviews. For example, you might have a disgruntled vendor who is upset with you because you didn’t pay them on time, and so now they’re writing bad reviews on Yelp. An angry customer will write a negative review and it could potentially be there forever. You can’t respond to the validity of these claims, so the only way a business owner can get satisfaction is via the legal route. But, it’s a long and expensive process to take them to court and collecting is even more difficult.” Suing Yelp successfully is a tricky proposition for many reasons, Zurada explained. “Some businesses have tried to sue them, but the problem is that the content provider is merely posting what someone else is saying. They have a certain degree of immunity based on basic Internet laws, so Yelp is not directly liable for items posted on their website. If everything online was contested, of course, there would be no Internet, so they have to be protected to a certain degree. If they’re posting someone else’s claims, we have no issue with that. But, with Yelp passively accept-
16 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
ing, organizing, and indexing these opinions from the community, what they’re doing is essentially manipulating content in such a way to make
body shops, have encountered a situation where Yelp will call them or visit their business and tell them if you sign up, we will help you. It just seems like businesses who don’t sign up with them have more bad reviews appearing more often while positive reviews seem to disappear.” Zurada has encountered this scenario more than once, he said. “With G&C, we’ve seen it happen— favorable reviews of Crozat’s shops fall off CAA Santa Clara Chapter President Shawn Saidi and his wife Lisa have very mixed feelings. They’ve encountered some after 30 days, while a questionable practices by Yelp, yet they realize they receive a small handful of unfavorfair amount of new business from the website able reviews are still listed there from 2008, for example. I money. At that point, they’re no longer a passive content provider. don’t know what Yelp’s secret algoNow they’re actively disparaging your rithm is, but it allegedly detects rebusiness. Many companies, including views that are real vs. fake ones. It
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seems that companies who won’t sign up with Yelp have more bad reviews and when good ones are posted, they identify them as fake. Good reviews are suppressed and bad ones stay there forever. That’s our main issue with Yelp. Yelp denies it and says they’re neutral, but there has been some considerable litigation against them already along this vein.” Zurada is in the process of researching former civil suits that have been filed against Yelp, in order to devise the best strategy, he said. “We’re in the process of analyzing these other suits, to see how they were approached and what was either successful or not in pursuing Yelp. “Of course, Yelp has gotten very good at defending these cases, so it’s not an easy task. How do you prove damages? Yelp defends itself by saying, hey, we don’t know how these reviews actually affected your business, because you can’t prove who stayed away based on bad reviews or not. Potential customers might not choose your shop, because they don’t like the photos of your facility or any of a hundred other reasons. It’s a lawsuit of some definite complexity, but Yelp is not immune to being sued and if they are manipulating this data to make profit, they’re liable for it and body shops need to be remunerated for their damaged revenues.” Recently, a group of 66 business owners filed a lawsuit against Yelp, alleging that the website has been running an “extortion scheme” and has “unscrupulous sales practices” in place to generate revenue. They claim that Yelp’s representatives regularly call businesses demanding monthly payments in the guise of advertising con-
tracts, in exchange for removing or modifying negative reviews. The companies involved in the litigation contend that Yelp informed them that bad reviews would disappear by signing an advertisement agreement with the site. One of the plaintiffs in this current law suit against Yelp is John Mercurio, the owner of Wheel Techniques, a 25year-old company that repairs and does in-house cleaning, polishing and custom painting of wheels in Santa Clara, California. It all started with a phone call, Mercurio explained. “The people at Yelp contacted me and told me if I purchased an advertising plan with them, they’d help me to get rid of the bad reviews or at least get them knocked down the list,” he said. “But, when I told them no way, they immediately removed a total of roughly 50 5-star reviews off my page. We were looking at Yelp.com while we were talking to them, and within a few minutes the positive review that was formerly at the top was gone and a one-star review suddenly appeared in its place” Mercurio felt used and was very upset at what he saw as a kind of extortion. “It was pretty obvious to us that they’re in control and what can we do? In my opinion, the laws haven’t caught up to the Internet yet, and that’s why it’s hard to sue them and even tougher to win. “We’ve got a ton of proof, because we’ve been documenting everything along the way and I pull reports from Yelp twice per week. They filter my reviews so that my overall rating sits at 2.5 stars. One week, I received three reviews that were all at 5 stars, yet my rating remained at 2.5, because
I won’t buy advertising from them. The 5-star rankings are taken off all the time without any reason, and these are 100% legitimate customer reviews. We need to prove that Yelp’s so-called automated system is bogus, and we have evidence that some of these reviews were done manually. They wanted $1,000 per month, which is ridiculous. Yelp has cost me a lot of business, up to a one third, I estimate. I know for a fact that a lot of people look at our Yelp reviews every month, so it has hurt my business in more ways than we can ever know.” Shawn Saidi owns Active Auto Body in Sunnyvale, Calif., a highly successful shop located in a 13,300 square-foot facility and fixing 75–90 vehicles monthly. He is also the current president for the Santa Clara Chapter of the California Autobody Association. Saidi says Yelp brings him customers, but he is also wary of the site, for several reasons. “They actually generate a lot of business for us. Customers tell us that they see us on Yelp all the time. Most of our reviews on their site are excellent, but we have a few that are really bad. One was from a customer who brought his car to us around five years ago. About three months ago he wrote a lengthy review that reads like a novel. When you read his review, you can see that we tried to do literally everything we could to make him happy. But, five years later, he’s still not satisfied. A few months ago, we let an employee go and right after that, we got a bad review that was obviously written by this vengeful former employee. It contains a bunch of false information, but there it sits for all to see.”
Saidi isn’t a social media expert, but he can clearly see that something is peculiar in the way his reviews are managed by Yelp, he said. “I don’t know how their system works, but we’ve had more than 100 positive reviews taken off. One of our customers called me and told me that they put his positive reviews aside. This is a legitimate customer and we’ve repaired two of his vehicles, so why are his comments deleted? So, we contacted Yelp and asked them why. They told us that their system goes through the reviews to analyze them for authenticity. If it’s a 5-star review and the user has never posted before, it gets set aside. Then, they tried to sell me advertising— again!” The anonymity of the reviews on Yelp protects the users, but it also creates a situation fostering unaccountability, Saidi, he explained. “If one of my customers has an issue with one of our repairs, we can sit down and rectify it. I’m not going to email the person, sharing comments back and forth—I’d prefer to sit down with them and handle it properly person-to-person. We always do whatever we can to make it right and we’re proud of our work, but if they’re only commenting online and won’t bring their vehicle back, we can’t help them.” Yelp was invited to respond to this story but declined to do so. Next month: How can you defend your reputation when it’s been disparaged online?
Ally Financial Inc. has decided to delay an initial public offering (IPO) because of weak market conditions, two people briefed on the matter said to the Detroit News on June 10. The mortgage and auto lender and bank holding company was expected to launch a road show ahead of an IPO planned before the July 4th holiday. The IPO could come in late July or early August, or be pushed until after the Labor Day holiday, when much of Wall Street returns from vacation, said the officials on June 9. They asked for anonymity because the information had not been made pub-
lic.
shares. Treasury has received about $4.9 billion in returns from Ally to date, including $2.2 billion in dividends and interest. The company reported a $1.1 billion profit in 2010. Citi, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley are all advising Ally on its initial public offering. With more than $172 billion in assets as of Dec. 31, 2010, Ally operates as a bank holding company. Ally also has operations in mortgage and commercial finance, and the company's subsidiary, Ally Bank, of-
fers retail banking products through its online arm. Ally, which was known as GMAC Inc. until last year, was founded by GM more than 90 years ago as its in-house finance arm. It sold a 51 percent stake in the company in 2006 to Cerberus Capital Management LP in a $7.4 billion deal. Ally said it raised its percentage of new car lending to 9.9 percent in 2010, up from 6.1 percent, to jump from third highest to the leading auto lender. Bad market conditions may also delay other planned IPOs, including Troy-based Delphi.
Law Offices of Martin Zurada 785 Market Street, Floor 16 San Francisco, CA 94103 (415) 637-8483
Auto Lender Ally, Formerly GMAC, Delays IPO Due to Market Conditions The US Treasury Department plans to raise $5 billion as part of a $6 billion offering when Ally goes public. The Treasury Department owns a controlling 74 percent stake in Ally as part of the $17.2 billion bailout during the financial crisis. Ally filed the paperwork March 31 in order to launch an IPO. Ally declined to comment on June 9. The Treasury is expected to sell some shares. Other owners such as General Motors Co., which holds a 9.9 percent stake in Ally, and Cerberus Capital Management LP, which holds a 9 percent stake, do not plan to sell
18 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Nissan Leaf Production Could Be Delayed at Smyrna Plant The March disasters in Japan continues to take its toll on worldwide automotive production; the end-result of the disaster yet to be fully realized on a global scale. On June 14, Nissan announced that the natural disasters could affect the timetable for building the company’s electric Leaf in the US, according to Ward’s Automotive. Nissan’s Smyrna, TN, assembly plant, where the Altima, Maxima and Nissan’s SUVs are built, is undergoing some remodeling that will let the car company build roughly 150,000 Leafs in the US each year. The plant was scheduled to start full-scale production in late 2012, but now Nissan is reigning in those expectations. “The earthquake is putting [the Smyrna plant] in a very difficult situation, but we are not giving up yet. Is there potential to delay it? There may be. We’re assessing right now,” Hideaki Watanabe, Nissan’s vice president of zero-emissions vehicles, told Ward’s. Until the US plant is ready to manufacture the electric vehicle, Leaf production will be limited to a sole factory in Japan. That factory has the capacity to build 50,000 Leafs a year,
which would be shared between American, Japanese and European buyers. For the US, Nissan had promised a nationwide rollout of the Leaf by 2012, but Watanabe now says a nationwide rollout will depend on consumer demand and dealer readiness, according to Ward’s. All of these delays are further aggravating already annoyed customers who pre-ordered the Leaf, according to Ward’s. Some are reporting that the automaker has bumped them off the waiting list and asked them to reapply. Others complain that the expected-delivery date for their EV has fluctuated dramatically. Nissan expects to deliver about 6,000 to 7,000 Leaf cars to the US by the end of summer. In May, deliveries for the EV increased dramatically to 1,142 units, which is up nearly 100% over April sales. Despite the increase, the automaker had hoped to deliver 20,000 Leafs to customers in the US by summer’s end.
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Volkswagen Opens Chattanooga, Tennessee Plant Volkswagen is jumping into the U.S. auto market by opening a new plant in Chattanooga, TN. At the grand opening of the plant on May 24, the German automaker presented the 2012 Passat as the key to building U.S. sales to 1 million units by 2018. The $1 billion plant has been producing cars since April. The new Passat will go on sale in Q3 of 2011 for $20,000 a car. That’s about $7,000 cheaper than current models built in Germany and close to the prices of such competitors’ models as the Ford Fusion, the Toyota Camry, the Honda Accord and the Hyundai Sonata. Jonathan Browning, president and chief executive officer of Volkswagen Group of America, said the automaker wants to make German engineering more accessible to North American buyers. “The Passats produced here in Chattanooga will be a key enabler to our growth, allowing us to compete in the core of the midsize sedan segment,” Browning told reporters before the unveiling of the plant, according to the Associated Press. Volkswagen intends to produce 150,000 sedans annually at Chattanooga for the American market, a
big jump for a car that has only hit a peak of 80,000 units annually sold in the U.S. in its history. “Das auto is finally back in the States,” declared Martin Winterkorn, chairman of the board of management for Volkswagen AG, the parent company of Volkswagen, according to the Associated Press. The plant itself has energy-efficient design measures including LED lighting and rainwater recycling. Frank Fischer, who heads VW’s Chattanooga plant, told the Associated Press that the complex uses 35 percent less energy than a standard automotive plant. When Volkswagen selected Chattanooga as the site of their new American plant, they knew that the only way to make a dent in the US car market was producing American cars, said Fischer. “You have to be a local producer to also be in the market,” said Fischer.
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School Uses Nanotechnology to Convert Exhaust Heat into Electricity Autobody News
July 2011
TEXAS • OKLAHOMA • LOUISIANA • NEW MEXICO
No one is happy about rising gas prices, and to make matters worse, up to 60 percent of each $4 gallon is wasted, lost as heat that pours out of the exhaust pipe. But what if some of that heat could be collected and converted back into electricity that can recharge the battery that powers the lights, wipers, power steering, or even the electric motor in a hybrid vehicle? The technology to do just that exists, but it’s still a work in progress. The solution lies in thermoelectric devices, and engineers at the A. James Clark School of Engineering, University of Maryland, are challenging previous assumptions about the behavior of the nanoscale materials used to build them. Create better materials, they say, and cars will make much better use of that expensive fossil fuel. But contrary to the common assumption in nanotechnology, “better” in this case may not always mean “smaller.” That realization may change the way engineers develop future thermoelectric devices. A material whose response to a change in temperature generates electric potential, or vice versa, exhibits what is known as the thermoelectric effect. Thermoelectric devices can generate electricity when heated by
an external source, or quickly cool or heat their environment when powered with electricity. So why doesn’t every car have a thermoelectric power generator? “The reason thermoelectric devices have so far been limited to niche markets is that their efficiency is still too low,” said graduate student Jane Cornett (Department of Materials Science and Engineering). “The goal of our work is to design thermoelectric materials that convert energy from one form to another more efficiently so we can promote the widespread use of products that recycle waste heat and effectively reduce our consumption of fossil fuels.” For example, cars manufactured or retrofitted with a thermoelectric device placed around the exhaust pipe can use waste heat to generate electricity, improving their overall miles per gallon, especially when a powerdraining system like the air conditioning is in use. If the device is too bulky and inefficient, however, it will consume more energy than it contributes. To tackle the problem, Cornett and her advisor, Professor Oded Rabin (Department of Materials Science and Engineering and Institute for Research in Electronics and Applied Physics), had to challenge some popular theories.
“Previous models told us that the use of nanomaterials at small dimensions would lead to an improvement in power generation efficiency,” said Cornett. “The models also predicted that the smaller the nanostructure, the more significant the improvement would be. In practice, people weren’t seeing the gains they thought they should when they designed thermoelectric devices with nanoscale components, which indicated to us that there might be an issue with the interpretation of the original models.” Cornett and Rabin have presented a revised thermoelectric performance model that confirms that smaller is not always better. Using advanced computer modeling to investigate the potential of thermoelectric nanowires only 100 to 1000 atoms thick (about 1000 times smaller than a human hair), they demonstrate that in the set of the tiniest nanowires, measuring 17 nanometers or less in radius, decreasing their radii does result in the increased thermoelectric performance previous models predict. In nanowires above 17 nanometers in radius, however, an improvement is seen as the radius increases. “The surprising behavior in the larger size range demonstrates that a different physical mechanism, which was overlooked in previous models,
is dominant,” said Cornett. “People were looking for solutions in the wrong places,” said Rabin. “We’ve created a better understanding of how to search for the best new materials.” Thermoelectric devices are currently used in a few consumer products, including refrigerators and CPU coolers in computers. They could eliminate the need for fluorocarbon refrigerants, giving rise to fluid- and compressor-free cooling systems that pose fewer health and environmental hazards. Cornett and Rabin’s research is supported in part by the Minta Martin Foundation and the ARCS Foundation. For More Information: See “Thermoelectric figure of merit calculations for semiconducting nanowires.” Jane E. Cornett and Oded Rabin. Applied Physics Letters 98(1), 182104 (2011) or visit http://apl.aip.org/resource/1/applab/v98/i18/p182104_s1. The Clark School of Engineering, situated on the rolling, 1,500-acre University of Maryland campus in College Park, Md., is one of the premier engineering schools in the US, with graduate and undergraduate education programs ranked in or near the Top 20. The Clark School garnered research awards of $171 million in the last year.
Toyota Motor Corp. will face the first test trial in February 2013 of lawsuits combined in federal court that claim a defect causes the company’s vehicles to speed up uncontrollably, a judge said according to Bloomberg News. U.S. District Judge James V. Selna in Santa Ana, California, said in a “tentative order” that the first bellwether trial would be of claims by the families of two people killed in a Nov. 5, 2010, crash in Utah. Paul Van
Alfen died when his 2008 Toyota Camry crashed into a wall. Passenger Charlene Lloyd died the next day. Toyota, the world’s largest automaker, recalled millions of U.S. vehicles starting in 2009, after claims of defects and incidents involving sudden unintended acceleration. The recalls set off hundreds of economic-loss suits and claims of injuries and deaths. “The conduct of a trial in the first quarter of 2013 will markedly ad-
vance these proceedings,” said Selna, who is overseeing most of the federal suits. A bellwether case is used by the court and lawyers for both sides to test evidence and liability theories before moving on to other trials or limiting future litigation. Selna picked the Van Alfen case from six submitted by lawyers for the company and plaintiffs. In February, the National Highway Traffic Safety Adminis-
tration said their probe of possible electronic defects found no causes for unintended acceleration other than sticking accelerator pedals and floor mats that jammed the pedals. “We are pleased that the initial bellwether will address plaintiffs’ central allegation of an unnamed, unproven defect in Toyota vehicles,” Celeste Migliore, a Toyota spokeswoman, said in a statement.
Toyota to Face First US Sudden-Acceleration Test Trial in 2013
20 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
A Homemade Air Bag Light—Brilliant Stupidity with Gonzo Weaver
Sometimes I wonder if the things I find wrong with some cars are there for me to find out how ridiculous some people can be. I’ve got to question the thought process and not-sobrilliant ideas that some people have, just before total stupidity takes over. I gotta ask … “What were you thinking?” The other day I had a late 90’s GM in the shop. The owner had recently bought it from a small car lot, and had no idea of the history of the vehicle. It was one of those “great deals” that he couldn’t pass up. Why is it these great deals always have some sort of catch to them? Maybe it would be a good idea to have it checked out before you buy it. After looking at it, I might tell you to “pass it up.” Honestly, I’ll never understand why someone will buy a used car when they know nothing about it, or decide after they buy it to finally have
it checked out … but they do. This particular creation had some strange problems. It had a strange battery drain. At first glance all the instrument cluster warning lights, interior lights, and all the electrical functions seemed to be working correctly, but there was a drain strong enough to drain the battery in a day or so. Finding the solution was going to lead to an even bigger problem. Narrowing it down by watching the amp meter for the parasitic draw value, and pulling fuses till the numbers dropped back into factory specs was the next procedure. Of all things, it ended up back to a crossed up circuit between the air bag system and the charging system. I decided to check the air bag system for codes. This was interesting, it was offline. No communication with the crash box. Hmmm, I’m a little confused, because I know I saw the air
bag light come on and go off when I pulled it into the shop. Turning the key off, and then restarting the car didn’t help me much, because the air bag light was on and then off. But then again, maybe it did help. Like I said, the light came on, and then went off … Hey, wait a minute isn’t there supposed to be a few seconds before it goes off? Isn’t this how it verifies its systems are functioning properly? So, what’s going on here? As a technician I’m trying to follow the codes, the diagnostic charts, and the operating description of the system I’m working on. This particular problem wasn’t following any typical scenarios. Take into account this whole thing started off because of a battery drain … I’m really starting to scratch my head over this one. I had a lot of different ways to go with this one. I could try and follow the draw a little further, or I could
chase the problem from the air bag side of it. Maybe, it will all lead to the same problem. I think I’ll work on it from the air bag side of the problem. The air bag fuses were all good, and the light did come on in the dash. So, I decided to pull the air bag diagnostic module out and pin check the leads to see if that would go anywhere. My first check on any system is the positive signals and then the grounds. Why? Because a loss of ground can be seen as an open lead, and if the positive signals are there, you’ll actually find a voltage signal on the open ground. That’s what electricity wants to do: find ground, and take the shortest path back to the source of the voltage. In this case they were all there, but when I checked the leads to the instrument cluster the voltage was coming towards the crash box rather than See Airbag Light, Page 27
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 21
SUVs Now Safer Than Compact Cars in an Accident, IIHS Report Says Sport utility vehicles are now safer than cars of the same weight, thanks to anti-rollover technology, according to a recent study. The Insurance Institute for Highway Safety said in a report issued June 9 SUVs in the 2006-09 model years had a driver fatality rate half that of cars. “The rollover risk in SUVs used to outweigh their size/weight advantage, but that’s no longer the case,” thanks to electronic stability control, said Anne McCartt, the institute’s senior vice president for research, according to the Detroit News. “Pound for pound, SUVs have lower death rates.” In assessing risk, the study counts the number of years that each model has been on the road and multiplies that by the number of that model’s vehicles. SUV driver deaths totaled 28 per million registered vehicle years, compared to 52 for trucks and 56 for cars. Among all vehicles, minivans again had the lowest driver fatality rate: 25 per million registered vehicle years, according to the new report. The last time the institute conducted a similar study, in 2007, large minivans had 66 deaths per 1 million vehicle years, while very large ones had 39, the lowest overall fatality rates among mainstream vehicles. Researchers say minivans tend to have the lowest fatality rates in part because drivers are more likely to be carrying young children and are more careful. The relative risk of different types of vehicles has changed, as automakers have worked to make SUVs more stable and less prone to rollovers. When the insurance institute conducted its 2007 study, for 2002-05 models, car death rates were lower than SUVs in every weight class but one. In the latest study SUVs in all weight classes had a lower driver death rate. In 2007, the National Highway Traffic Safety Administration required all vehicles to be equipped with electronic stability control, or ESC, by the 2012 model year. By the 2008 model year, ESC already was standard on 65 percent of cars, 96 percent of SUVs and 11 percent of pickups. The technology helps avoid skidding, as well as maintain control when drivers swerve.
ESC senses when a driver may lose control and automatically applies brakes to individual wheels to help stabilize the vehicle and avoid a rollover. Motorists often have no idea ESC has kicked in to protect them. The Alliance of Automobile Manufacturers, the trade association that represents Detroit’s Big Three, Toyota Motor Corp. and eight other automakers, said the new study shows that ESC has become extremely valuable. “As automakers, safety and innovation are two of our most important values, and our actions back that up: Automakers were introducing ESC before the government rulemaking on it,” alliance spokesman Wade Newton said to the Detroit News. “ESC is considered so effective that NHTSA has previously estimated that the technology can potentially prevent 71 percent of passenger car rollovers and 84 percent of SUV rollovers.” NHTSA estimated the cost to the automotive industry of adding ESC will total $985 million, $111 per vehicle with antilock brakes and $479 for those without ABS. But the benefits far outweigh the costs, according to NHTSA. “Thanks to this technology, we anticipate the number of rollover fatalities to drop by thousands every single year,” NHTSA Administrator David Strickland said in a statement. Rollover crashes, he said, are the deadliest of all wrecks. When it adopted the ESC regulation in 2007, NHTSA predicted the technology could reduce rollovers by 84 percent, preventing between 5,300 and 9,600 deaths and as many as 238,000 injuries a year. Rollovers, which had exceeded 10,000 for years, fell to under 8,300 in 2009. The insurance institute study said ESC reduces the risk of a fatality in a single-vehicle crash by 49 percent and 20 percent in multiple-vehicle crashes. It also lowers the risk of a deadly crash by 33 percent overall, and cuts the risk of a fatal single-vehicle rollover by 73 percent. Federal rules require ESC systems to prevent oversteer and understeer. In January, NHTSA issued additional regulations intended to protect motorists in rollover wrecks. Those rules, to reduce the number of people partially or completely
22 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
ejected through side windows during rollover crashes, will begin phasing in during 2013. NHTSA issued new rules in April 2009 to toughen roof strength during rollovers. Rollovers account for less than 2 percent of all crashes, but 40 percent of all fatalities. The rules doubled the roof strength requirements for vehicles to 6,000 pounds. Heavier vehicles from 6,000 to 10,000 pounds, which have never been regulated, must now meet roof strength standards. The phase-in schedule, which begins in September, will be completed for all affected vehicles by the 2017 model year.
Least Deadly Vehicles (Driver deaths per million vehicles) • Audi A6 four-door 4WD (0) • Mercedes E-Class four-door 4WD (0) • Toyota Sienna (0) • Ford Edge 4WD (0) • Nissan Armada 4WD (0) • Land Rover Range Rover Sport (0)
• Land Rover LR3 (0) • Honda CR-V 4WD (7) • Jeep Grand Cherokee 4WD (11) • Acura MDX (11) • Mercedes E-Class four-door (12) • Lexus RX 400h (12) • Lexus GX 470 (13) • Mercedes M-Class (14) • Saab 9-3 four-door (16)
Most Deadly Vehicles (Driver deaths per million vehicles) • Nissan 350Z (143) • Nissan Titan crew cab 2WD (126) • Chevrolet Aveo (119) • Chevrolet Cobalt (117) • Nissan Titan extended cab 2WD (111) • Kia Spectra5 (102) • Chevrolet Malibu Classic (99) • Hyundai Tiburon (96) • Nissan Versa (96) • Chevrolet Colorado extended cab 2WD (93) • Nissan Titan crew cab 4WD (92) • Kia Rio (89) • Kia Spectra (87) • Mazda Miata MX-5 (83) • Subaru Legacy (83)
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Parts Profiles
Apathy, the Real Opponent in the Wholesale Parts Business with Larry Williams
APATHY – absence of passion, emotion, or excitement. I hate to say this, but this word seems best to describe the attitude of many parts managers I have spoken to. It’s not their fault, just their response to their daily input of negative information. Every day they get another dose of pressure, criticism, and doom. They worry about the dealership’s future, loss of customers, rising costs and falling profits. All this on top of the daily stress of filling orders, creates the natural response, “please just let me survive.” They exist on a short term basis, hour by hour, day by day, and month by month. This is how it has been for over three years, since the start of the last economic crash. We have lost 15% of our dealerships. The weak have perished, and the strong have survived. Here is the good news… things seem to be get-
ting better. According to the L.A. Times, we’ve had a 20% increase in auto sales so far this year! This is the start of a new growth cycle. Smart survivors are taking this opportunity to shed their fears and expand their operations. I say smart because this is the best time to get aggressive and go after new business. The survivors have less competition, and should see steadily increasing sales. We will always have a minimum level of business. Our customer’s lifestyle demands transportation. Our communities are designed with separate living and commercial areas, and walking between them is not an option. We must have our cars! Maintaining and repairing a modern automobile requires trained technicians and expensive equipment. Very little work can be done by the average owner. Money for maintenance is still short, but repairs are a necessity. That
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means steady work for all of us. Now is the time to be positive. Shake off that dull, negative attitude. Aggressive solicitation of new customers will pay off for those dealers that move now. Take some time and visit your best customers. Congratulate them for their tenacity and tell them you will be with them for the good times ahead. Partners who survive hard times always find their bonds stronger. Keep an eye out for customer opportunities that you may have overlooked. Be ready to serve the new customers that will be calling you. There is another major negative assumption to overcome. Several parts managers have told me of their loss of interest in the wholesale market. The main reason for this is the lack of profit. It seems that there is constant pressure to reduce costs, starting at the corporate level. I am talking about the insurance companies that cover most of today’s repair costs. In a never-ending search for investor earnings, quality, care, workmanship, and pride are considered to be unnecessary. The only thing that matters to these corporations is their bottom line. They constantly push the repair shop to reduce the cost of the repairs. The shops cannot reduce their labor cost any lower; employees are already at the poverty level. The only place to cut is the cost of materials. The solution for some shops is the use of cheaper parts. These shops adopt the practices of the corporations, and consider only the cost of materials. Save a dollar, no matter what method you use. We need to fight back! Quality in both parts and service needs to be worth more than a 5% discount. For example, sheet metal has been a center of concern for several years. Cheap replacement imported metal has found customers, at the cost of quality. Numerous organizations have come out to support the use of original parts only. We all agree on the value of quality in this area. How about the rest of the operation? How about quality of service? I have never advocated sacrificing service and quality for cost. I be-
lieve if you pay less, you get less. There is a minimum everyone must pay for quality service. The competition should be for better service, not cheaper prices. I believe that servicing the wholesale market is still a rewarding job. Our final goal, happy customers, is a worthy goal and customer satisfaction brings us our own happiness. Autobody News has always supported quality in our industry, promoting the best products, materials, and service, never “less for less.” In keeping with this philosophy, I would like to offer an opportunity for those dealers who believe in the quality of their service to speak out. I would like to promote those dealers who still believe in customer satisfaction. Strong, optimistic leaders deserve recognition and support. Any of you that believe as I do, and want to spread their message of quality service; contact me at ljoew2@gmail.com. I will include you in my column, and promote you as a truly distinctive dealership, a good partner in the auto body repair industry. Take an active, aggressive role now in your local community. Attend as many local business meetings of the auto industry as possible. Take a stand for quality service above all else. Our customers deserve our best efforts, and our best efforts will bring us more customers. This is an opportunity for a “win-win” for all.
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www.autobodynews.com | JULY 2011 AUTOBODY NEWS 23
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Telling the Tale of the “Neutral Information Provider” with The Insurance Insider
In the Middle Ages, civilians didn’t have computers, television, radio, Pong, or even ping-pong. So what did they do for entertainment? One tradition was story-telling. The great thing about telling such tales was that you were forced to use your imagination. Although it’s important to note that you weren’t expected to believe everything that was being said. Fairy tales often have a happy ending and tell us about a world where
anything is possible. The tale I’m about to tell you is about the “neutral information provider.” This tale begins in the 1980s, around the time of the first electronic estimating system. For decades prior to the advent of electronic estimating, shop and insurers slaved away preparing handwritten estimates. Along came a brilliant man named Maximillion. He believed that there was a faster and more accurate way to prepare an estimate. He thought he could equally help body shops and insurance companies through the use of technology. Because this new idea would benefit both parties, he thought he would be able to sell this new product to two different customers. In fact, he could charge the same amount to each. It was the beginning of the now over-used term “win-win.” All he had to do was find a way to take the data from printed estimating books and put it in an electronic format. In a matter of three weeks, he created a robust software application. He spent the next few months selling his product to insurers and repairers
alike. Everyone in the country adored him. He was a hero living the American dream. He was making far more money than he ever dreamed possible. Life was grand. Who would have imagined that putting a book into a computer could make so many people so happy? If we were in Medieval Times, our story would have ended there and the hero would ride off into the sunset with a beautiful maiden on the back of his horse. But because we’ve witnessed computers, television, radio, Pong and pingpong (and even Beer Pong, a newer non-technology-driven version of Pong fueled by alcohol), we have something else they didn’t have in the Middle Ages: “reality.” It’s difficult to use your imagination and dream big when you know it’s virtually impossible to have a happy ending with an information provider. Our story resumes with our superhero Maximillion looking to expand his very profitable business. The challenge is that he now has competition. As a result, he is losing customers. Max is faced with making his first big decision since deciding to go into business. Does he sell his product one at a time to 60,000 body shops spread all across this free and beautiful country, or does he sell it to a handful of insurance companies? I think we all know which route Max took—the path of least resistance, of course. The insurance companies purchased the estimating system and required shops to buy the program as a prerequisite to be on their direct repair programs. Maximillion’s profits soared and so did the insurance company’s leverage. Here the fairy tale ends and the nightmare begins for the shops. Maximillion is trying to serve two masters. Unfortunately, it’s not possible. Shops
24 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
and insurance companies have different interests and needs. The once-neutral information provider is being pulled in two different directions. I think everyone knows who prevailed. Maximillion could lose millions if he chooses to side with the shops. Right or wrong, he is heavily influenced by the insurance companies. Although he attempts to remain neutral, it’s nearly impossible in a world where cost drives most decisions. Now let’s use our imagination as to what happens next. Over the next 30 years, the strong influence of the insurance companies is evident in all three major estimating systems. We’ve witnessed and experienced the so-called enhancements to the systems, enhancements that were clearly designed for one purpose—to appease the demands and suggestions of insurance companies.
This isn’t a fairy tale. It’s the reality of what has transpired. Shops should be outraged. They should be sending a strong message back the information providers and take action where appropriate. For the information providers, being neutral should not be a choice but a requirement. Shops and insurers alike pay a lot of money to the information providers. The estimating software should not be influenced by any one group or groups. These companies should provide information—not a service where the highest bidder decides what’s added or modified to the database or system.
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
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Shop Showcase
Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
Chatham Parkway Collision Center in Savannah, GA, is All About Dealer Partnerships with Erica Schroeder
is owned by the nearby Chatham Parkway Subaru/Lexus/Toyota/Scion dealership but is run independently so they are able to service all makes and models. The body shop partners with Chatham Parkway Collision Center on Park of Commerce the dealership, taking in cusBlvd. tomers that have been referred to them for service. Chatham Parkway Collision Center “We get a lot of business that has been serving Savannah, GA, for the last seven years. The body shop way, but we do all makes and mod-
The whole crew at Chatham stands outside the building
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els,” said Joanie Iaco, Body Shop Manager. Chatham is able to see an average of 180 cars per month. Chatham employs 16 people in their 11,000 square-foot space including; 5 body men, 5 painters, 3 estimators, one office manager, one body shop manager and one porter who assist technicians on the shop floor. Chatham is also a Toyota Certified Collision Center, meaning they have to meet certain Toyota benchmarks and standards in 10 different areas, including training and shop materials. Body shops must qualify annually for this certification. “From a customer’s point of view it’s great—they know all the technicians have been trained to Toyota factory standards as well as ASE and I-CAR,” said Iaco. Part of the requirements for the certification are for the body shop to have the most cutting edge equipment,
including welders, spray booths and lifts. Chatham uses two Blowtherm ultra-mix down-draft spray booths. Iaco said Chatham is the only Toyota Certified Collision Center in
Painter Jeff Cooper
the low-country Savannah area. Their equipment and level of technical knowledge is what sets them apart from their competition. Chatham switched to PPG waterborne paint in 2009. According to Iaco, the paint distributor for PPG made the
change very easy by providing on-site technical support throughout the transition from solvent-based paint. “We always welcome the opportunity to use a “greener” product and improve quality at the same time,” said Chatham’s Fixed Operations Director Tom Ryals. The distributor provided on site technical support for Chatham as long as necessary, accoding to Iaco. The paint technicians really like the new waterborne system. Lead painter Jeff Cooper said “the Body Shop Manager paint match is a lot Joanie Iaco easier than with solvent-base. You don’t get dye back or shrinking like with solvent-based paint.” Painter Bob Emiry added “What you see is what you get—a quality finished product.” “These guys here really love it,” Iaco said of the waterborne paint system, “they had a really easy time making the switch.” Iaco also believes the collison in-
dustry is a great career route for women that is often overlooked; she worked her way up through the ranks at JM Lexus in Margate, FL, for 17 years before moving up to Savannah about 6 months ago. She originally wanted to work as a title clerk for the dealership, but got hired in the body shop instead. “I really enjoy it; this is a great shop, a great area and the technicians are all wonderful,” said Iaco. The technicians work in teams on the shop floor at Chatham, making finishing the heavy work load this shop brings in easier for everyone. “We do a lot of Lexus work here, so that quality just Painter Bob Emiry has to be there,” said Iaco. Chatham focuses on quality and they believe that starts with their technicians. Chatham Parkway Collision Center 41 Park of Commerce Blvd. Savannah, GA 31405 912-443-4443 www.cpbodyshop.com
Continued from Page 21
Airbag Light
to the cluster. What now? (Here it’s helpful to remember: I love my job, I love my job, repeat as necessary.) I guess I better pull the cluster and check the wiring from there back to the crash box and see if that goes anywhere. After pulling the dash it didn’t take a rocket scientist to see what the problem was. On the back of the instrument cluster somebody had cut the circuit board line to the air bag light, and then added a soldered-on wire to the charge light. So when the charge light was on, so was the air bag light. Once the car started (provided the charging system is working correctly) the charge light would go out, and so would the air bag light. Huh??? You can imagine my “mechanical language” was not for the faint of heart when I found out what was going on. It seems some genius didn’t want to replace the air bag module, so they invented their own air bag warning light instead. Brilliant stupidity… I think that’s the best way to explain it. I can’t imagine
somebody went through all the trouble to deceive the buyer of this car for a safety issue such as air bags. It should be a criminal offense and it is in some states (see related story page 8.) After undoing the homemade airbag light, the draw was completely gone. Now the only thing to do was to replace the air bag module to bring it back up to working order. Leave it to some unscrupulous dork out there to try something like this. I’m not saying anybody would have caught the problem at first glance. It was a well thought out deception. If you were not intentionally looking for an air bag light delay, I don’t think you would have caught the problem. But, I still think it is a good idea to have any car checked out prior to buying it. Maybe, just maybe, you can spot problems like this before you own the problem.
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www.autobodynews.com | JULY 2011 AUTOBODY NEWS 27
Shop Strategies for Savings
Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.
Business Financial Security Preventive Maintenance with Walter Danalevich
Earlier this year (Autobody News, February, 2011) I wrote a shop savings article (Credit Card Processing Fees—Dings, Dents, and Crashes at Your Bottom Line) for ABN readers warning about credit card host processing fees which could significantly ding their bottom lines. My February article pointed out that these fees can be very substantial for body shops. If you missed the article, you can read it along with my other columns in my column section www.autobodynews.com/columnists/danalevichwalter.html. Now I would like to re-emphasize the importance of taking extreme caution with authorizing Credit Card hosting agreements and specifically their cancellation fees. A body shop owner contacted me to share his story involving a nightmarish experience pertaining to a cancellation fee he got sucked into compliments of his prior Merchant Credit Card processing Host. This body shop owner read my ABN article and phoned me to express his frustration during the past five months as a result of his shop cancelling a merchant credit card host service. His shop had recently signed a service agreement, based on the credit card host’s friendly telemarketing sales pitch: “we will give you the lowest credit card processing fee rates on Earth.” Here’s what happened. The shop’s bookkeeper was continuously aggravated by the credit card host’s customer service department. When she called with questions they were consistently tossed back and forth between service reps. None could provide adequate explanations of the reason for transaction fee deductions from their business checking account. Soon afterward, the owner and bookkeeper accepted an offer from another Credit Card host, who also offered “the lowest processing fee rates on earth.” The new credit card host sweetened the deal by agreeing to pay the cancellation fee up to $400. Sounds good, right? The shop owner proceeded to send an e-mail to his existing credit card host giving written notice for cancellation of service. A couple of
months later the bookkeeper performing account reconciliation noticed an unfamiliar automatic withdrawal on their business checking account and informed the shop manager. He assumed the fee was taken by the prior credit card host which he had cancelled months ago. The shop owner inquired with the Credit Card Host and was told they have not received a cancellation notice and were continuing to actively withdraw monthly minimum usage fees as per the user agreement. The shop owner had fortunately kept a hard copy of the cancellation email and read it to the credit card customer service rep. The credit card rep made it sound as if fault was with the body shop and not the credit card host, and wanted the shop to send a “signed letter” of cancellation of services. Shop manager complied and sent the same e-mail letter previously sent and attached his signature. About a month later the shop manager received a phone call from the fast talking credit card host representative indicating that a new cancellation fee of nearly $1,000 was due. The shop owner told him he was crazy (using some colorful language) and that he wasn’t responsible for their inadequate customer service. The credit card host rep acknowledged that customer service changes had taken place. The manager requested a breakdown of the proposed cancellation fee charges and was told he would receive them that very same day. No cancellation fee invoice was received that day. A couple of days later the shop received a copy of the initial service agreement, signed by the manager, which stated in tiny size 6 print that there was a $900 minimal cancellation fee if service was terminated before three years had elapsed. There was also a cancellation fee of $250 disclosed in the terms and conditions manual. This was the fee the shop was planning on forwarding to the new credit card host for reimbursement. Also received was a cancellation form invoice for $1,235 which had absolutely no explanation attached. By now the shop owner was not feeling any love for the self-pro-
28 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
claimed “lowest credit card processing fee on Earth” company. He was worried that the credit card host had possession of his business checking account bank routing number and knowing the credit card host could easily insert a large “dent” into his business checking account balance at any time. The body shop owner had a meeting with his bank manager to discuss the best solution and some peace of mind. The bank manager said a stop payment could be placed that would prevent any future unauthorized withdrawals. However he cautioned that there are common ways the credit card host can easily get around this security tool. The bank manager recommended that the body shop owner permanently close his bank account and open a new account. The shop owner followed his bank manager’s advice and now sleeps without the
worry of having automatic withdrawals made to his account without his authorization. This story is a cautionary tale for avoiding crashes to your bottom line and a reminder for us all to be careful who we allow access to our banking and other financial information. Oh yeah, watch out for the #6 or smaller size print before you sign anything.
Ed—Anyone considering a new credit card processing provider should start with a review website comparing fees like that at credit-cardprocessing-review.toptenreviews.com and proceed with due diligence from there. Your mileage may vary.
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Continued from Page 8
CA Airbag Law
stuffed with concealable materials such as rags, foam or paper towels while the insurance company is billed for actual airbag parts; and refund scams, where a body shop actually orders a new airbag for a customer but never installs it. Instead, the shop bills the customer for the part and returns the airbag to the manufacturer. Unfortunately, there are no hard statistics detailing the prevalence of airbag fraud, but insurance officials are concerned about the warning signs driving this trend. Jim Quiggle, Director of Communications for the Coalition Against Insurance Fraud says, “Airbag fraud is a black hole for data,” and, “Nobody knows how widespread it is, but the warning signals are everywhere.” The coalition’s executive director, Dennis Jay, is concerned with online sites selling nonconforming airbag parts in violation of state law. He explains that there are enough instances for consumers buying used
cars to be concerned, because there is a potential for a vehicle to not have a functioning airbag.
California Passes Automotive Repair Act, Doubling Fraud Penalties To address this growing concern, the California Senate recently passed the Automotive Repair Act (Senate Bill 869), which established the Bureau of Automotive Repair. Among the many regulations the Bureau will enforce, auto repair shops would now be required to return airbags to their original operating condition when replaced during collision repair. Under the new statute, a repair shop or dealer who prepares a written estimate for the replacement of a deployed airbag, and who fails to repair and fully restore it, is guilty of a misdemeanor that is punishable by a $5,000 fine, by one year imprisonment in a county jail, or by both that fine and imprisonment. A number of automakers, including Honda, Mitsubishi, Hyundai and Toyota, applauded the legislation. They found it clarifies repair shops’ responsibilities, reduces fraud, and promotes driver safety.
Check the Vehicle History Even with the new law in place, drivers should take the following steps to make sure that airbag repairs are properly completed. For used car buyers, checking a vehicle’s Carfax or Autochex history is an important step. This report will indicate whether a car has been in an accident, which would lead buyers to do a VIN number check on each of the car’s airbags. A technician could even check the airbags to see whether the same airbags are still in the vehicle. For owners having cars repaired, checking the airbag indicator is essential. When the car starts, an airbag indicator should appear instantly and then go out. A continuous flashing light may indicate an airbag system malfunction. If the light never turns on, the airbag may be missing. Consumers who believe they are victims of airbag fraud should contact an experienced attorney to learn more about their rights and options. Information in this article was provided by the Venardi Law Firm. Visit www.vefirm.com.
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Georgia Auto Repair Tax Bill Still Alive in House
Georgia House Bill 388, which aims to create a sales tax on services of many small businesses including auto repair shops, is still alive in the Georgia Legislature. If passed, the bill could have negative repercussions on the automotive service industry. The Automotive Service Association (ASA) and the Georgia Collision Industry Association (GCIA) oppose this legislation. Despite the fact that no action was taken on Georgia H.B. 388 before the Georgia Legislature adjourned, the legislation could be considered during the special session later this summer. The ASA and GCIA are asking Georgia independent automotive repairers and consumers to contact their respective representatives in opposition to the legislation. Visit gacollisionindustry.wordpress.com or www.takingthehill.com for more information.
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Continued from Front Page
Allstate
liminary survey findings from McKinsey & Co. The survey analysis authors told Auto Insurance Report that the percentage of consumers who got a quote from another insurer was up 23 percent last year, and the percentage of those who actually changed to another insurer was up 56 percent. Only 48 percent of consumers have been with the same insurer for six or more years, down from 53 percent in 2008. The economy is certainly prompting some of this trend. Many people are looking to shave household costs, and may be willing to switch for far less in savings than it may have taken them to bother just a few years ago. But another reason for the shopping may be that auto insurance advertising soared 22.6 percent to a record-high $5 billion last year, according to analysis by Dowling and Partners Securities. That reversed a 4.2 percent decline in advertising in 2009. Prior to 2009, the industry had increased advertising spending for seven straight years. In the past decade, insurance industry advertising —the vast majority of which focuses on auto insurance—has grown 211 percent from $1.6 billion in 2001. The biggest jump in advertising last year was by Farmers Insurance, which spent $505 million, up 125 percent from the previous year. Insureds are confused. Although motorists may be shopping for insurance, they don’t necessarily know what they are buying. More than onethird of U.S. drivers who have read at least part of their auto insurance policies have had trouble making sense of them, according to an online Harris Interactive poll commissioned by InsuranceQuotes.com. About 87 percent of the 2,079 insured drivers surveyed said they had read at least some portion of their policies, but 36 percent of those drivers said those policies were somewhat or very difficult to understand. Insurance rates outpace labor rates. Increases in auto shop rates are not quite keeping up with overall inflation—but pricing for auto insurance is rising faster. The national average for body and paint labor rates has risen only modestly year-over-year since 2006, according to figures from CCC Infor-
mation Services. The average body labor rate rose from $41.42 in 2006 to $44.67 in 2010, up an average of 2.1 percent per year (paint labor rates rose similarly). The national average hourly rate for paint materials rose slightly faster, from $22.26 in 2006 to $25.37 in 2010, an average increase of 3.5 percent per year. Overall, according to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for autobody work rose an average of 3.44 percent per year for that 5-year period. By comparison, the CPI for all products rose an average of 2.2 percent per year. The CPI for auto insurance rose an average of 2.6 percent per year, and the CPI for vehicle parts and equipment (other than tires) rose an average of 3.92 percent per year. But data for the first four months of 2011 tells a different story. The overall CPI seems to be rising faster than that for autobody work, and the CPI for auto insurance is staying even above that. State lawmakers consider insurance-related bills. As legislative sessions wrap-up for the year in many states, bills regulating insurers in ways that impact shops continue to be passed, considered or rejected. A bill approved by the Nevada Assembly to establish a program to help low-income drivers get low-cost auto insurance coverage died in that state’s legislature in late May because it failed to come up for a vote in the Senate within 110 days of introduction. North Carolina Insurance Commissioner Wayne Goodwin is urging motorists to oppose three bills in that state that would strip his office of its ability to cap auto insurance rates. “We hear the insurance companies calling it auto rate modernization,” Goodwin said. “Well, if making your rates skyrocket is modern, then you can just call me old-fashioned.” Wisconsin Gov. Scott Walker has signed a law cutting the minimum property damage coverage that drivers in that state must carry from $15,000 to $10,000. And in appointing insurance company executive Kevin Clinton as the new insurance commissioner of Michigan this spring, Gov. Rick Snyder made clear his priorities for Clinton. Snyder, a Republican, said Clinton must “make sure consumers are protected by making sure financial institutions are sound,” and will “lead our effort to eliminate burdensome
30 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
regulations that are preventing the (financial) industry from growing.” More federal oversight coming. The U.S. Department of the Treasury in May announced plans to create a Federal Advisory Committee on Insurance to provide guidance to the new Federal Insurance Office created as part of federal Wall Street reforms. Half of the committee’s members will be reserved for state and tribal insurance regulators; other members will be chosen from the various insurance industries, the agent and broker community, public advocates and academia. Allstate looks to change a downward trend. Allstate’s acquisition of Esurance (and Answer Financial, an insurance quote service) from White Mountains Insurance Group is widely viewed as a good move for the insurer, which has seen its marketshare drop the past two years. The buy should help Allstate, as the country’s secondlargest auto insurer, better compete with No. 3 GEICO and No. 4 Progressive which, like Esurance, sell directly online and which have been gaining marketshare ground as Allstate has faltered. GEICO’s 5 percent growth in total premiums last year
puts it on track to catch Allstate (if Allstate’s rate of decline in recent years continued) by 2013. Esurance, founded in 2005, sells policies in 30 states and has seen its total premiums grow on average by 20 percent a year for the past five years. Anti-texting effort continues. With Indiana recently becoming the 32nd state to approve insurer-supported bans on texting-while-driving (Pennsylvania lawmakers are considering a similar ban), State Farm offers a free widget for the Android phone that it hopes will help drivers avoid the urge to read or send a text while behind the wheel. The “On the Move” widget allows users to compose and reload customized messages—such as, “I can’t respond right now because I’m driving”—that are sent as automatic responses to incoming text messages. Collision repairers needn’t be overly considered with such efforts, however. Research by the Highway Loss Data Institute showed last year that accident rates aren’t reduced by laws prohibiting drivers from texting or from using hand-held cell phones.
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Inspector Gadget—Making a Custom Light Inspection Tunnel to Find Paint Defects by Janet Cheney
What happens when two brainiacs spend time together? At Autocraft Bodywerks in Austin, Texas the results were a custom Light Inspection Tunnel, used to find defects in the painting process and perfect the standard of their work in this high end collision repair facility. Owner John Borek and his IT guy, Dan McLaughlin, of Next Technologies, designed and built this Light Inspection Tunnel. The Light Inspection Tunnel came about through John Borek’s continual quest for improvement in his business. He believes that if OEM’s are manufacturing automobiles, and collision repairers are in the business of remanufacturing automobiles then certain technology should apply. Borek realized it was becoming more difficult to find imperfections in refinish. He also recognized the challenges for paint buffers to reach the lower half of refinished panels to properly cut and polish cars. He thought through the process; how do the manufacturers build, refinish and examine the cars?
A Light Inspection Tunnel, similar to the OEM’s would work well in this high end collision repair center, helping deliver customer perfection. The information Borek was looking for was not available from the manufacturers, (tunnel lighting technology is not revealed to the public), so he developed a plan. He went to iTunes and downloaded all National Geographic Channel’s ‘Ultimate Factories’ and studied the auto manufacturer seg-
The Light Inspection Tunnel designed by John Borek, Autocraft Bodywerks in Austin, Texas
ments. He joined SAE, the Society of Automotive Engineers, and extensively researched and found several articles on automotive paint defects and
paint inspection lighting. Information from various sources were gleaned to perfect the project. Borek found many articles on the subject, one written by Charles Lloyd, “An Objective Measure of Severity for Small Topographical Defects in Automotive Paint,” who worked with Ford Motor Company. He found Ford has done extensive research on paint inspection lighting and has implemented by managing and measuring through baseline tests. After a careful and long discovery process, The Light Inspection Tunnel at Autocraft Bodywerks started to come together, taking over a year to design and build. Everything was custom designed and built to order. Nova Verta USA built the frame of the inspection tunnel. LDPI Lighting Solutions designed and built the lights, which include mirrors in the lights, delivering the technology for defect free refinish. The Tunnel is controlled by a computerized low voltage touch-screen panel designed by Next Electronics. It also has a 3 foot lift built into the floor to bring the cars to a better position for inspec-
tion, buffing and polishing. The finished product is working well in this shop and is also a handsome piece of engineering and does what it was designed to do—deliver the best product to Autocraft Bodywerks customers. Autocraft Bodywerks is a well established Austin, Texas collision repair center. They specialize in Lexus and Honda, however, work on all models. The quality of repair and customer service at John Borek’s shop is First Class and the distinctive offering of the Light Inspection Tunnel is a tool used to deliver the best repair to his valued customers. The Light Inspection Tunnel is just one of John Borek’s innovative creations. If you drive by his house during the Halloween season you will see a life size flying saucer that looks like it ‘just landed’ and Klatu from ‘The Day The Earth Stood Still’ will be stepping out to join the Trick or Treaters. Borek, who has been in the business since high school in 1984, is an innovator and ongoing student of collision repair, “Everyday I learn something, when you think you know it all is when you need to get out.”
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On Creative Marketing How to Survive a Summer Slump with Thomas Franklin
In my neighborhood, several shops are marketing buck. Today Yellow Page saying they’re having a “summer listings and ads are outrageously exslump.” Maybe it’s the economy. pensive—unless they’re really bringing Maybe people have gone on vacation in customers. One shop did an invenignoring needed repairs. With gas tory of Yellow Page ad responses to see prices sky high people are driving less how many calls actually produced busiand having less accidents. Whatever ness. The largest percentage of calls the case, it can come down to less busiwas from vendors trying to sell the shop ness for the moment. What can a shop some service or product. Hardly any with Dick Strom calls produced even an estimate. This is owner do to survive this down time? Perhaps one bright spot is all of a good place to start cutting costs. this is the fact that with less jobs to do, Another area to examine while you may have more time to improve you have the time is closing ratios. marketing and sales and maybe How many estimates are resulting in squeeze more profits out of the jobs work orders? Are your estimators capyou do get. This could be an ideal time turing every possible job? I recall one to take a closer look at previous esti- shop I visited that often had a potenmates (and estimators) to see if revtial customer walk through some seenue and profits were slipping through lected areas of the shop to look at the cracks. Today we have computer highly precise repair operations like software to go through an estimate to frame measurement and color matchwith Lee Amaradioing.Jr. find missed opportunities for revenue, I was told that a little sales talk on but not every shop uses it, or takes the the superiority of the shop’s expertise time to use it even if it’s available. Peoften convinced the customer that this riodically a wise manager will review was the best place to leave the car for a few estimates to see how his or her repairs. This down time could also be estimators are doing. A summer slump a good time to get a couple of display can be a perfect time to get this done. areas highly polished for customer When business is slow, less money viewing. is coming in. It’s also a good time to Reviewing prior marketing eflook for costs that can be cut without forts may also produce some unexharming the bottom line. Since personpected opportunities. One shop I visit nel pay is usually the largest expense at has repaired police vehicles for years, a shop, laying people is oftenLoftus the but he says when the sergeant in with off Sheila first choice in cost cutting, but it may charge of repairs changes, there is alnot be the wisest. Cutting back on adways a danger of that individual havvertising and marketing during a slow ing his own favorite repair facility. time is not a good idea, but this can be Losing that repair business could be a good time to get more bang for your very costly so he makes it a top prior-
Opinions Count
Action Counts
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
ity to get to know a new sergeant immediately. A change in personnel at any key business source can represent either a danger of loss or an opportunity for gain. During this summer slump there may be time to call on some dealerships, commercial prospects or potential government agencies to get to know the person responsible for outsourcing vehicle repairs. It can be a good time to make change your ally. Another good use of extra time can be checking out your neighborhood for ways to get more visitors to your shop. Schools, churches, health clubs and gyms and other organizations where a substantial number of people come can provide an opportunity to host an event at your shop. One shop offered a teacher at a church school an opportunity to bring her class to the shop for an educational tour to see what collision repair is like.
Many shops have a large open space that isn’t used on a Saturday or Sunday afternoon. Offering a space for a bake sale or group meeting can get local people familiar with the shop and its activities. Most people prefer to patronize a familiar business. Another way to benefit from checking out your neighborhood is noticing what signs are eye-catching. Many business owners are proud of their display efforts and would be willing to share information on what signs and displays have been most effective for bringing in new customers. Although these are reaching customers for a different kind of business, the odds are good that this information may open your eyes to a new way to reach local people. It’s unlikely you would ever try these outreach efforts when business is good, but taking advantage of this time to reach out may help you survive the “summer slump.”
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Kia To Boost Capacity At West Point, Georgia Plant
Kia Motors Corp. said June 2 it will and general assembly shops. increase the production capacity of its The expansion will make room West Point, GA, assembly plant by for the 2012 Optima to join the com20%, to help the company keep up pany’s Sorento crossover utility vehiwith demand for its vehicles, accord- cle which is already built at the plant. ing to the Wall with Street Journal. Janet Chaney Kia and its parent company The Korean car maker says it Hyundai, who have long fought to be will begin expansion projects at its taken seriously by rivals and conGeorgia factory that will raise its total sumers in the US, have hit their stride annual capacity to 360,000 vehicles with efficient attractive and desirable by the beginning of next year. vehicles that appear to be bargains The boost follows an announce- compared with competitors’ products. ment earlier this year at the New York The company has also been able International Auto Show that the au- to step ahead of other foreign automaker would begin producing its tomakers due to the shortages of Optima mid-size sedan at the US plant. Japanese vehicles resulting from the The planned expansion includes March earthquake and tsunami in that the plant’s stamping, welding, paint country.
Shop Showcase
Industry Overview with Janet Chaney
32 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
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Continued from Front Page
Farmers COD DRP
sions, without agreement to take concerted action. Please note that in these excerpts, “Exchange” refers to Farmers Insurance, and “Vendor” refers to the DRP repair facility:
5.2 DISPUTED AMOUNTS. If Exchange in good faith disputes any portion of a Vender invoice (“Disputed Amount”), Exchange will timely pay Vendor for the undisputed amounts of that invoice. Unless otherwise specified by federal or state laws, statutes, codes, rules, or regulations, within thirty (30) days of receipt of an invoice from Vendor on which a Disputed Amount appears, Exchange will (i) notify Vendor in writing of the specific items in dispute; and (ii) describe in detail Exchange’s reason for disputing each such item. Within thirty (30) days of Vendor’s receipt of such notice, the Parties agree to negotiate in good faith to reach settlement on any items that are the subject of such dispute. Vendor will not terminate this agreement on the basis of an
alleged breach involving Exchanges failure to pay a Disputed Amount unless the Disputed Amount exceeds fifteen percent (15%) of the total amount payable under this Agreement or the sum of twenty five thousand dollars ($25,000), whichever amount is greater.
(SCRS Note: DRP facilities would seemingly have agreed that the carrier can dispute their charges 30 days after they are invoiced, and the repair facility can’t terminate their agreement based on a breach of contract if they fail to pay unless it is a $25k short-pay.)
11.4 Vendor shall ensure that its General Liability, Workers Compensation, Garage Liability, Coverage for Garage Operations, and Physical Damage insurance policies allow Vendor to waive its rights of recovery prior to a loss and that the carriers furnishing such insurance policies shall be required to waive all rights of subrogation against Exchange, its officers, agents, employees, and other vendors and subcontractors. To the extent permitted by law, Vendor shall look solely to its insurers and not to Exchange’s insurers for loss or damage arising from Exchange work performed. Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!
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(SCRS Note: How many business carriers will allow their clients to waive their rights in this manner through this agreement? Will a collision repair business still have coverage if they sign this? How many of the shops have taken the time to forward this provision to their carriers to ask if they approve of their unilateral waiver of rights to subrogate against the carrier in question? What if a staff re-inspector injures themselves on the shop property due to their own negligence? It appears plain and simple; the liability falls on the shop for their repair approach and choices.)
12. MOST FAVORED CUSTOMER. During the term of this Agreement, if Vendor enters into a written contractual relationship with an insurance company or organization pursuant to which (a) Vendor provides services substantially similar to those provided to Exchange, and (b) Vendor provides pricing or other commercial terms that are more favorable than the pricing or commercial terms being provided to Exchange for work performed by Vendor, then Vendor shall offer to Exchange in writing, within thirty (30) days of Vendor
entering into such agreement, the same or better pricing and/or commercial terms to Exchange. On a quarterly basis, Vendor shall provide a written certification executed by an officer of Vendor of Vendor’s compliance with this Most Favored Customer provision. (SCRS Note: “Most Favored” pricing language is currently being challenged in the healthcare industry. Is it interesting that the repair industry is constantly asked to be “competitive” and those same parties now want the industry to guarantee pricing given to another party, which by virtue is not competition.)
16. SUBCONTRACTING 16.1 (ii) Sublet repairs reflecting a retail price within the local market should be written without a mark-up. Sublet items reflecting a wholesale price may be considered for a mark-up not to exceed 25% of the sublet charge. All invoice mark-ups combined may not exceed $200 for the entire repair. 17. INSPECTION OF BOOKS AND RECORDS. Vendor agrees to maintain See Farmers COD DRP, Page 34
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Continued from Page 33
Farmers COD DRP
and preserve its books and records in accordance with generally accepted assounting procedures (“GAAP”) for a period of three (3) years or for a longer period if required by applicable law or regulation. Any time prior to the termination of this Agreement and for a period of two (2) years thereafter, Exchange shall have the right to inspect and audit such portions of the Vendor’s books and records as is necessary for purposes of verifying amounts payable to Vendor or its authorized subcontractors and to verify compliance with the terms and conditions of this Agreement. Vendor agrees to make such books and records available for inspection by Exchange, its designee, or any insurance regulatory authority immediately upon request. (SCRS Note: Are business owners, willing to open internal accounting books to a party outside of the business? There are concerns voiced regularly throughout the industry regarding data that is shared through electronic mech-
anisms. Now this program appears to require businesses to open up all their books, P&L statements and proprietary business information to another party.)
27. BACKGROUND CHECKS. 27.2 In no event will Vendor in the performance of this Agreement use the services of an individual who has been convicted of a felony, including but not limited to any convictions involving dishonesty, a breach of trust or moral turpitude.
(SCRS Note: Language in this section is similar to requirements in other programs, requiring complete background checks, and no shop can employ individuals who have ever been convicted of a felony; in some states that may mean a DUI. How many of businesses hire good, decent employees—from detailers, technicians to office staff - who may have made mistakes in the past, but have earned their employers trust and respect for the work they do today? Is it necessary to allow another party to interject who is employed in a privately run business? Is the requirement reciprocal to the representatives who will interface with repair facilities in the
field?) There is lots of information in this agreement. SCRS’ decision to release a link to this document is in no way to be construed as legal or ethical advice or
opinion; however, it is our hope that the industry finds the information useful in making educated business decisions, and discusses the material responsibly. — SCRS Staff
Hyundai, Kia Face South Korean Fair Trade Antitrust Probe on Auto Parts Pricing After Allegations
South Korea’s antitrust regulator has begun a probe into allegations that Hyundai Motor Group forced its auto parts suppliers to lower product prices, a person familiar with the matter said June 9 according to the Detroit News. The Fair Trade Commission this month visited the offices of Hyundai Motor Co., Kia Motors Corp. and Hyundai Mobis Co. after sending the companies, all members of the Hyundai Motor Group, notice of the probe, the person said. It wasn’t clear which auto parts and which suppliers are involved. Hyundai Motor Group, the world’s fifth-largest car maker by sales, declined to comment. Hyundai Motor and Kia Motors usually have price-setting negotiations with around 2,000 subcontractors twice a year. Given their size, Hyundai and other South Korean conglomerates have enormous leverage in setting
prices during negotiations with their subcontractors. Last month, a Seoul court upheld a decision in 2006 by the Fair Trade Commission to fine Hyundai Motor about 1.6 trillion won ($1.48 billion) for forcing its parts suppliers to reduce component prices. The antitrust watchdog’s latest move comes as the government is expected to place more emphasis on supporting small and midsize companies, many of which continue to experience tough times even as the nation’s conglomerates power the country out of the 2007-2008 global financial crisis. With South Korea recovering quickly from the crisis, President Lee Myung-bak, whose five-year single term ends in early 2013, has urged South Korea’s conglomerates to try to share the “warmth of the economic recovery” with their smaller peers and prosper together with them.
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Trust your order to the collision parts specialists at these fine Dealers 34 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
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For the first time in 7 YEARS , the world’s collision event is headed east! Join the automotive service & repair industry at the only event that is specifically designed and created for YOU. As the flagship event of ASRW, NACE constantly evolves with the industry to meet your ever-changing business needs, continues to invest in the industry it serves, and is a must attend event for anyone in the automotive service & repair industry. And this year…
IT’S ALL ROLLED INTO ONE: World class exhibits // Unmatched education & training you won’t find anywhere else Live on-floor demonstrations // Opening general session // Welcome reception // ASRW Town Hall ASRW Industry Forum // Association Leadership Summit // Networking Events Vehicle Display Featuring the Muscle Car Network of Florida Co-Located With: Held During:
ASRW 2011 // ORLANDO, FL USA THE PREMIER EVENT DEDICATED TO THE AUTOMOTIVE SERVICE & REPAIR INDUSTRIES Exhibits: October 6–8 // Conference: 5–8 // Orange County Convention Center
www.ASRWEVENTS.com www.autobodynews.com | JULY 2011 AUTOBODY NEWS 35
Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Nigro’s in Philadelphia Exemplifies the City’s Brotherly Love Motto with Chasidy Rae Sisk
When William Penn gave Philadelphia its motto as the City of Brotherly Love, he wasn’t thinking about auto body shops. It was 1682 after all. But I don’t know of any other business in Philly that has embraced that motto to the degree that Nigro’s Auto Body has. Located at 939 Washington Ave, Nigro’s Auto Body has always felt the importance of giving back and fostering the community that surrounds them. This shop continuously proves its dedication to community by donating time, money and energy to improve the daily lives of their customers,
neighbors and the city in general. Aniello Nigro founded Nigro’s Auto Body in 1983 after working at several local shops and deciding to provide customers with the quality workmanship he had learned while an apprentice at his uncle’s shop in Florence, Italy. He adopted his own motto: “Old World Craftsmanship, New World Technology.” Aniello had an auto body shop at a smaller location for about six months before moving to his current location on Washington Avenue. His son and co-owner of the shop, Domenico Nigro, tries to follow the same code of standards and ethics as his father. His goal is not only to make his customers happy but also to provide them with knowledge about their automotive repairs, including a lifetime guarantee on the work done at his shop. Domenico Nigro explained that the shop’s goal is to help the industry and provide customer satisfaction, and he believes one important way to do this is by helping people and disseminating information to other shops. By showing customers that they care, Nigro’s plans to build their brand by
helping people so customers know they can trust the shop to do what is best for them and their vehicles. By uniting with other shops, even nationwide, difficult situations become surmountable as another shop has encountered it and can share their experience, whether it be a technical, insurance or customer situation. Nigro’s Auto Body is very active in their community in Philadelphia. Besides donating money to many charities, such as the Childrens’ Hospital of Philadelphia (CHOP) and through setting up fundraisers for Holy Spirit Church and their Padre Pio Foundation, they also contribute to Italian-American organizations, churches and rehabilitation centers. One such center is De La Salle Vocational for youths on probation where Nigro’s assists with revitalizing the auto body program in particular as well as participating in the program in general. The family has also established the Nigro Family Foundation which benefits women, children and rehabilitation. Nigro’s takes the consumers needs seriously, becoming one of the first shops with “Green Technology” and most recently, becoming an ‘Ask Patty’-Certified Female Friendly Shop. Recently, Nigro’s Auto Body began selling AutoTex Pink wiper blades which allow customers to follow the shop’s example of giving back as the proceeds benefit the National
AutoTex’s PINK Wiper Blades, on sale at Nigro’s, benefit the National Breast Cancer Foundation. For more information, visit www.autotexpink.com or call (800) 692-3962
Breast Cancer Foundation. The blades also have a motto: “Change A Blade and Change A Life.” The shop participates in fundraisers and charity walks, as well as vari-
36 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
ous food, phone and blood drives. They also are in the process of establishing sponsorship for annual awards for those who help the community and
while driving, responding to incoming calls and texts that the recipient is driving and will return the call when available.
(left to right): Joseph Coulter, Aniello Nigro, Domenico Nigro & Raffaelle Mele
are often underappreciated, such as teachers, firefighters, police, doctors and so forth, in addition to offering scholarships for children’s education. Experts at restoring antique and exotic cars, the shop has also contributed efforts to restoring vehicles for the Simeone Foundation Museum. Additionally, the shop works with a company to install equipment for disabled drivers, and the proceeds of this effort are donated to the Bonnacotti Fund. The shop has received a car seat certificate from Safe Kids so they can teach parents how to properly install their child’s car seat, and they plan to participate in a Child Safety program with CHOP to test car seats as well. They are also involved with the Boy and Girl Scouts, allowing children to earn auto body badges at the shop. Nigro’s hosts an Ask Pattycertified course to teach women about their vehicles, as well as driving safety classes. They are also currently developing three phone applications. The first allows the user to contact medical care, the police and emergency contacts as well as sending information directly to the insurance company to help process their claim and show liability in case of an accident. The other two applications are focused on teen driving safety; the first monitors speed and emails parents speed and location information when the teen exceeds a specified speed limit, and the second blocks teens from texting
Nigro’s also reveals a feeling of responsibility toward the environment. Besides being one of the first shops in the area to go green, they also sell Passchal handbags which are made from recyclable materials, the proceeds of which benefit the United Way, DuPont Hospital and the Nigro Family Foundation. They participate in the effort to preserve nature by recycling everything possible, including metals, plastic and fiberglass. They also use Sikkens waterborne paints, by AkzoNobel, and they are currently in the process of researching how they can adopt solar energy power sources. The shop shows that they care for all aspects of the customer’s wellbeing by offering auto financing and a deductible program to help save money. Additionally, the shop is working on participation in a third-party program called Don’t Pay Us to Fix Your Car which basically allows customers, subject to credit approval, to use their insurance check to pay off high-interest, long-term debt, giving them up to a year to repay the loan without interest for a small upfront fee. Visiting the shop’s website, potential customers can see further evidence that Nigro’s Auto Body truly cares about their needs. The site offers information about their many programs as well as resource articles with useful information such as the steps to See Nigro’s, Page 38
Industry Overview with Janet Chaney
Janet Chaney has been involved in the collision industry as shop owner and business consultant. She serves her clients through Cave Creek Business Development. Contact her at jchaney.cavecreek@gmail.com.
Auto Recyclers Host Prominent Collision Repairers in Panel Discussion URG, the United Recyclers Group, saying that somewhere, somehow, hosted a Body Shop Panel Discussion collision repairers and recyclers quit at their 2011 annual conference in En- effectively communicating. glewood, CO, April 15. A lot of comFacilitator Don Porter, of State mon ground was discovered in this Farm Insurance opened up the discusURG panel discussion, which was ac- sion, asking panelists to introduce knowledged by everyone in the room. themselves and say a little about their The hour-long panel discussion was business. Porter made sure the audiwith John Yoswickence of recyclers was involved, sayeffective in its goal of honest dialogue discussing needs and opportunities be- ing “You don’t have to be nice to tween these two industries. All stake- me—just be nice to these people,” reholders want to do better business and ferring to the collision repairer panthe repairers and recyclers would like elists.
shop and the insurance company. That doesn’t work for anyone.” This statement triggered an ovation from the 300 attendees in the room. There is the beginning of a solution available that could reduce the ‘condition’ problem. The Automotive Recycling Association, in concert with CIECA, has developed a standard set of damage codes to be used by repairers and recyclers. They are established and accepted, through CIECA, by both industries. However, the panel came to the conclusion that no one is using them. The participating panelists, who represent a very large segment of the collision with Janet Chaney industry, reported that they found no one actually using the damage codes and few people knew about them. Repairers noted that condition codes on parts found through United Recyclers Group hosted its first Auto Body Panel Discussion in April: (l-r) Facilitator, Don Porter, State Farm third party locaters had Insurance; Gary Boesel, CARSTAR, Denver, CO; Gary Wano, G.W. and Son, Oklahoma City, OK, Dan Stander, Fix no meaning to them at Auto, Jerry Standers Collision; Bob Jones, RJones BODYPROS, Des Moines, IA; Clark Plucinski, True 2 Form/Gerall. The Damage Code ber; Tim Adelman, COO ABRA Body and Glass information discussion to do business better, together. Over Everyone on the panel shared al- was positive for both groups, recog800 recyclers attended the two-day most the same story about the ‘condi- nizing that they have something to event. tion’ of parts and on-time delivery work towards. “We have grown (our indus- dates. In today’s collision repair marGary Wano, owner/operator of tries) together from mom and pop ket, shops are measured (by insurers) G.W. and Son Auto Body in Oklahoma organizations to the large conglom- by what proportion of alternative parts City, OK, said, “Have a little patience erates we are today,” said Clark they use, cost effectiveness, and most with us please, sometimes our concept Plucinski, Executive Vice-President importantly—cycle time. Cycle time of a usable part may be different than of Sales and Marketing at True 2 was recognized by this panel as the your sales staff’s, but we are working Form—which recently became a most critical component in their busi- on this.” part of the Boyd Group/Gerber col- ness operations today. If a used part is Tim Adelman, Executive Vice lision repair chain. Plucinski re- delivered to a shop that is expecting President of Business Development minded everyone in the room that an undamaged part and they receive a for ABRA Auto Body and Glass, “We are now all inter-connected in part with undisclosed damage, that is shared these first quarter 2011 statisbusiness-to-business relationships.” a significant cost to everybody. tics from 100 ABRA locations. On a In resolving difficulties, Plucinski Bill Abold, of A&P Auto Recy- scale from 1–10, 10 being the highest, asked for patience. “These processes cling in Cicero, New York, shared the measuring overall CSI, OEM scored 9 are working, but it is like pushing a frustration he and other recyclers ex- and Recyclers scored 7.5. For overall rock up a hill [which keeps rolling perience. “We work with our collision quality of parts received, Recyclers: back]. We just have to be patient and customers, train our staff, but when 7.4, Accuracy of the Part, Recyclers: keep doing the same thing.” parts are found electronically and the 8.2 and On-Time Delivery, Recyclers: Gary Boesel, owner and operator price is the lowest common denomi- 6.8. “We survey parts people for supof two CARSTAR collision repair nator, then the shop is going to get that plier improvement opportunities,” excenters in the Denver area, concurred. cheapest part and they are not going plained Adelman. “[Things have evolved] over the years to accept it. We then have to work For the shops on the panel, relaand are different than they used to be,” through the price difference with the tionships with a good quality recycler
Industry Insight
Industry Interview
was the most important criteria. Shops are looking for a good product and want it to be delivered on time. “The goal at our shop is to spend less time on the phone and on email,” said Dan Stander, General Manager of Fix Auto Highlands Ranch. “It is more time effective and we don’t have any confusion about descriptions.” The formal panel ended but dialogue continued throughout the halls most of the day. Bob Jones, owner-operator of R Jones Body Pros, in Des Moines, Iowa, put it succinctly, “You guys want to sell us the correct part and we want to buy the correct part.” The inter-industry communication initiated at the April meeting should help collision repair and auto recycling industries start working for the common goal: better business for everybody. More on the Panelists’ Credentials The credentials of the panelists brought together by the URG was impressive. In 2010, Boesel was selected as Small Business Person of the Year by the Aurora, CO, Chamber of Commerce and he sits on the CARSTAR National Advisory Board. Wano’s family owned business is a Mercedes Benz, Jaguar, and Volvo Certified shop. He is Immediate Past Chair of the Society of Collision Repair Specialists (SCRS) and in 2008 was Body Shop Business’ Executive of the Year. Dan Stander is ASA’s National Collision Division Director. Both Bob Jones and Clark Plucinski are Collision Industry Conference, “Hall of Eagles” members. Jones is a founding member and past Chairman of SCRS. Plucinski serves on numerous Industry Boards and was voted Body Shop Business’ Collision Shop Executive of the Year in 1996. Tim Adelman now leads ABRA’s industry relations and serves on numerous industry advisory boards.
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Nigro’s
take if involved in an automobile accident and how to save money on gas, among others. Adding to the site’s comprehensiveness is the option of translating it into English, Spanish or Italian, the three languages spoken in the shop. Though Nigro’s typically utilizes standardized equipment, such as MIG welders, a Chart frame machine and measuring systems, one unique piece of equipment that they rely on is their handmade downdraft spray booth. Aniello Nigro hand-crafted his booth using a design from his uncle’s shop in Florence, Italy. The inside of the booth is covered with white ceramic tiles, and according to manager Wayne Simmons, their “multi-filter downdraft design provides a perfect airflow, virtually eliminates contaminants, and is heated for baking finishes, basically allowing our painter to create near-flawless finishes.” Nigro’s Auto Body employs six workers and encompasses 3000
square feet where they complete approximately twenty-five cars each month. The shop has been certified ICAR Gold, and by PPG, ASE, ASA, BASF and ADP, in addition to being Esco Institute EPA Certified. In addition to auto body work, Nigro’s also engages in some towing and accidentrelated mechanical repairs. Domenico Nigro concedes that this is one of the toughest times he has seen in all the years of Nigro’s existence. The economy, price of parts, tougher insurance and adjuster relations and regulations, combined with customer demands and the technology of the automobiles all add up to tough times. However, Domenic maintains it does not all have to be doom and gloom. He has compiled several pamphlets specifically for fellow shop owners and is very willing to share them along with other thoughts, ideas, and questions. He urges shop owners to contact him by email at NigroAutoBody@Comcast.net and place Body Shop Magazine Article in the subject line. He regrets that phone calls cannot be handled due to volume.
e-mail:
advertising@autobodynews.com Nigro’s is determined to help unite the body shop industry and share www.autobodynews.com some of the wealth of information they have gleaned from doing business throughout the decades.
led the countdown on washing the car that broke the record. “Over the first two years, the Soaps It Up! Car Wash has been able to unite the CARSTAR family across North America to help thousands of children in need,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “Now, we are ready to continue the tradition and make the “Wash for a Wish” Soaps It Up! Car Wash the biggest and best ever. We want to break our Guinness World Record for world’s largest car wash – and bring even more support for the Make-A-Wish Foundation®.” “We’re grateful that CARSTAR is doing so much to help us improve the quality of life for our wish kids and their families through a wish experience,” said David Williams, Make-A-Wish Foundation of America president and chief executive officer. CARSTAR stores in Canada have been conducting the “Soaps It Up!” Car Wash for the past seven years, and this is the third time the program has been done in the US. The 2009 event was the first attempt for any group to set the record for the largest car wash across multiple locations. For more information on the “Soaps It Up!” Car Wash, visit www.CARSTAR.com.
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CARSTAR Auto Body Repair Experts Hold Third Annual Soaps It Up! Car Wash for Make-A-Wish Foundation
More than 2,000 volunteers at 140 of CARSTAR's stores across the US and Canada washed cars to raise funds for the Make-A-Wish Foundation® and Kids with Cystic Fibrosis. On June 11, thousands of volunteers across the United States and Canada washed vehicles at CARSTAR locations in hopes of breaking the Guinness World Record for “Most Cars Washed – Multiple Venues” the franchise set in 2009 by washing more than 4,000 vehicles in eight hours. In the process, CARSTAR hoped to raise funds to help grant wishes for the Make-AWish Foundation of America and serve children with cystic fibrosis in Canada. Themed “Wash for a Wish”, the third annual Soaps It Up! Car Wash was held on June 11, 2011 and tickets were sold at participating CARSTAR stores in the U.S. for $10, with 100 percent of the ticket purchase benefiting the selected charities. While stores across North America participated, the host for the record-breaking attempt was at CARSTAR Collision Care of Milford, OH, owned by Cincinnati native Keith Foster. The repair facility, located at 731 State Route 28, in Milford, OH, held special events throughout the week in Cincinnati and
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