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VOL. 30 ISSUE 7 JULY 2012
Birmingham, AL, Shop Owners Drop State Farm’s Select Service Due to PartsTrader
State Farm PartsTrader Issue Resuscitates Mississippi Collision Repair Association
Several Birmingham, AL auto body shops have dropped State Farm rather than be forced to use its new PartsTrader procurement software within its Select Service Program. Auto body shops in Birmingham are located in one of four test markets where the pilot PartsTrader program, an online parts ordering/bidding software system developed by a New Zealand firm, is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets nationwide: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot.
Anger over the proposed State Farm PartsTrader program revived a sleeping giant in Mississippi, revitalizing the previously dormant Mississippi Collision Repair Association, which met on May 23 for the first time in many years. “Due to many factors, our association as been inactive for almost eight years,” said Chad Smith, treasurer of the Mississippi Collision Repair Association and co- The Mississippi Collision Repair Association met on May owner of Smith Bros. Colli- 23 for the first time in 8 years, with special guest Attorsion Center with two ney General Jim Hood in attendance. locations in Brookhaven and Mc- controversy and negativity surroundSee Mississippi Reacts, Page 33 Comb. “But the new State Farm pro-
by Melanie Anderson
According to a report released by the Automotive Services Association (ASA), 17 Select Service shops in Birmingham, AL, removed themselves from the program prior to any registration or use of the application. “We are in a pilot—a pilot is still a process where you are learning,” said George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years. “We had an unfortunate incident in Birmingham because some repair facilities decided to leave the Select Service program before we even got there. They made that decision before the pilot was even over or without even trying the tool, but that was a decision they felt they needed to make, See Birmingham Reacts, Page 28
gram has re-ignited our association’s fire!” The years may have gone by in comfort and complacency, but the
by Melanie Anderson
Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but Decried by Insurers Insurance companies are pushing for Rhode Island Gov. Lincoln Chafee to veto a bill passed by the General Assembly which is currently on the governor’s desk. The bill would allow auto body shops to directly sue insurers for reasonable reimbursement. Insurers are urging a veto to prevent a flood of law-
suits. The legislation was originally sponsored by the Auto Body Association of Rhode Island (ABARI) and sought by body shop owners, including the father and sister of state Rep. Peter Petrarca. It cleared its final legislative hurdle at 3:00 am on the final day of
Columnist David M. Brown starts a new series of articles on Nationwide Technician Training for Collision Repair Students. Special to Autobody News. see p. 44
the legislative session. Representatives from auto body shops say the bill is about equity. They claim they don’t have a chance to set their own rates because insurance companies refuse to negotiate. “It shouldn’t cost the consumer anything that’s not what it’s about. The
issue is more about getting the insurance companies to actually negotiate as opposed to taking a take it or leave it stance, which some of them currently do,” said Randy Bottella, president of the Auto Body Association of Rhode Island. See Great Consumer Bill, Page 34
We asked BMW North America: What Does it Take to Become a BMW Certified Collision Repair Center? Why there are only 69 in the US... see p. 16
CCC’s Director, Industry Analyst, Susanna E. Gotsch addresses Disruption as the New Normal —Macro Trends in the Industry Special to Autobody News
see p. 40
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COLUMNISTS Attanasio - Matters of the Heart—Body Shop Owner Saves Adjuster’s Life . . . . 14 Evans - Building a Junior Motor Sport Vehicle for 11-Year-Old Driver. . . . . . . . 42 Franklin - Maximizing Referrals to Your Shop . . . . . . . . . . . . . . . . . . . . . . 46 Hey Toby! - Matrix Wand is a Game Changer. . . . . . . . . . . . . . . . . . . 35 Sisk - Al Brodeur’s Auto Body Offers Honesty, Inspires Loyalty . . . . . . . . . . . 30 Weaver - Take it to the Dealer! . . . . . . . . . 27 Yoswick - SCRS Meeting Discusses Insurance Regulation, State Farm . . . . . 10 NATIONAL ‘Back 2 Back’ Joins Calif. Jobber . . . . . . . 18 Arizona and California Schools Preparing for Collision Repair’s Future . . . . . . . . . 44 Battery Maker BYD Probes Electric-Car Crash Fire . . . . . . . . . . . . . . . . . . . . . . 43
Birmingham, AL, Shop Owners Drop State Farm’s Select Service Due to PartsTrader . 1 Body Shop Does Paint Job on Paint Blob . 18 Caliber Collision Refurbishes Vehicle for Student. . . . . . . . . . . . . . . . . . . . . . 46 Disruption Became the New Normal in ‘11. 40 DuPont Unveils New No. 24 Chevrolet Paint Scheme for 20th . . . . . . . . . . . . . 39 Florida Shop Owner Arrested for Impersonating Adjuster . . . . . . . . . . . . 38 Ford Ships New Escapes, Some Have Hail Damage . . . . . . . . . . . . . . . . . . . . 12 Geico Settles Lawsuit with Gunder’s . . . . 31 Hail Damage Claims Prove Value of Comprehensive Insurance Coverage . . 38 Hertz CEO Robert Smalley, Sr. . . . . . . . . . 8 Honda to Add Acura MDX to Alabama Plant for Sales . . . . . . . . . . . . . . . . . . 31 Insurance Regulators Face Budget Cuts, Increased Need . . . . . . . . . . . . . . . . . . 18 International Body Shop Meeting (IBIS) in Spain Addresses Misleading KPIs, Winning Relationships . . . . . . . . . . . . . 33 Mike Causey in NC Runoff . . . . . . . . . . . . . 7 Mississippi Nissan Plant Starts New Altima Model . . . . . . . . . . . . . . . . . . . 31 Mitchell AutocheX Celebrates Top-Performing Shops. . . . . . . . . . . . . 38 NABC Helps Operation Comfort’s Automotivation Secure a New Facility for Disabled Vets . . . . . . . . . . . 12 NHTSA: Safety Improvements Prevented 700,000 Crashes. . . . . . . . . . . . . . . . . . 8 Nissan EVs Tested in New York Amid Standard Debate . . . . . . . . . . . . . . . . . 18 PARTS Patent Bill Gets Three Additional Sponsors. . . . . . . . . . . . . . . . . . . . . . . 12 PCI Claims ABARI Legislation Has Increased Repair Costs Twice National Avg. . . . . . 34 Poll Shows Americans Still Blame Bush for Economy . . . . . . . . . . . . . . . . . . . . 18 Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” Decried by Insurers . . . . . . . . . . . . . . . . . . . . . . 1 SCRS Hosts Repairer Driven Education at SEMA 2012 Featuring “Innovation Forum” . . . . . . . . . . . . . . . . . . . . . . . . 43 Seattle Auto Body Repair Students Give “Billy-the-Kid” Hydroplane a Makeover. 37 Service, Diagnostic and Mechanical News . 26 State Farm PartsTrader Issue Resuscitates Mississippi Collision Repair Association. 1 Storm Chaser Chases Hail-Damaged Cars for Shops . . . . . . . . . . . . . . . . . . . . . . 12 Toyota Donates $32K in Training and Support to CREF in Support of Instructors. . . . . 43 What it Takes for a BMW Dealership to Become a BMW CCRC. . . . . . . . . . . . . 16
ment under the law,” said Parker. “Automotive repair and collision shops owned and operated by new or used car dealerships are taxed at half the rate used to tax the independently owned businesses doing identical work. This is justified in the tax code by classifying dealership sales as ‘retail’ and allowing their service and repair business to be included under that banner. “Furthermore, repair shops operated by tire companies (NTW, Firestone, Goodyear), parts stores (Pep Boys) and mass-merchandisers (Sears, Wal-Mart, Target) are also charged at half the rate paid by independent repair shops. We should not be taxed at a rate different than a business performing an identical service. We should not be denied the true cost of our product by disallowing our skilled labor.” Added Caspersen, “We were very pleased with the number of ASA members who took time away from their businesses to attend the hearing and demonstrate how important it is to change the current franchise tax law in Texas. We ask other shop owners in Texas to take the time to contact their legislators asking them to support ASA’s efforts.”
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson 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, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
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REGIONAL ASA Testifies at Texas Tax Law Hearing . . . 3 Claims Adjusters Given Temporary Licensing. . . . . . . . . . . . . . . . . . . . . . . . 8 Dallas Auto Paint & Body Shops Booked After Latest Hail Storm. . . . . . . . . . . . . 20 Electronic Insurance Proof Bill Clears LA Legislature . . . . . . . . . . . . . . . . . . . . 6 Industry Day Set for July 11 at Louisiana Tech College . . . . . . . . . . . . . . . . . . . . . 6 Kansas Businesses Still Dealing with Spring Storm Damage . . . . . . . . . . . . . 22 Kansas City Teens Drive Electric Car Across America . . . . . . . . . . . . . . . . . . 16 Louisiana State Penitentiary Lifer Makes ASE Triple Master Rank . . . . . . . . . . . . 23 Louisiana Towing Bill Signed by Governor . 7 May Storms Bring Giant Hail, Significant Damage to Oklahoma. . . . . . . . . . . . . . . 4 Memorial Held for Carroll Shelby at College. 8 New Captive Law Will Invite Businesses to Oklahoma . . . . . . . . . . . . . . . . . . . . . 6 New Service King in San Antonio . . . . . . . . 8 Oklahoma Gets Prepared for Summer Road Trips . . . . . . . . . . . . . . . . . . . . . . 17 Rockport, TX, Mechanic Woke Up to Homicide Scene . . . . . . . . . . . . . . . . . . 6 Texas DOI to Hold Hearings on Consumers Bill of Rights . . . . . . . . . . . . . . . . . . . . . 7 Texas Hail Storms Cause High Insured Losses . . . . . . . . . . . . . . . . . . . . . . . . 20 TIAA Hosts Jeff Franco, PartsTrader Discussed . . . . . . . . . . . . . . . . . . . . . . . 7 Wind and Hail Coverage May Lead to Big Losses . . . . . . . . . . . . . . . . . . . . . . 4 Yukon, OK, Student Wins State SkillsUSA Contest . . . . . . . . . . . . . . . . . 7
The Automotive Service Association (ASA) testified before the Ways and Means Commission in Austin, Texas, June 5, regarding what it feels is an inequity in the current Texas Franchise Tax code. Denise Caspersen, ASA’s Collision Division manager; Charles Parker, executive director of ASATexas; John Firm, AAM, president of ASA-Texas and owner of Firm Automotive in Fort Worth; and John Miller, owner of Freedom Automotive in Stafford, were all present at the hearing. ASA members from Texas who testified included Vince Oliva, owner of Vin’s Paint and Body Mid Co. Inc. in Nederland, and Vin’s Paint and Body Inc. in Beaumont; Johnny Bang, owner of Johnny Bangs and Bumps Shop Inc. in Tomball; and Danny Sullivan, owner of Sullivan Advanced Auto Care in Kingwood. If passed, House Bill 429 and its companion, Senate Bill 476, would allow automotive repair shops to be taxed the same amount that dealers, parts stores and tire stores are now taxed. “The independently owned automotive repair and collision businesses in Texas are being denied equal treat-
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ASA Testifies at Texas Tax Law Hearing
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. ©2012 Adamantine Media LLC.
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Accudraft. . . . . . . . . . . . . . . . . . . . . . 7 BMW Wholesale Parts Dealers . . . . 39 CCC Information Services . . . . . . . . 9 Chevyland . . . . . . . . . . . . . . . . . . . . 20 Classic BMW . . . . . . . . . . . . . . . . . . 31 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . . 2 Don Carlton Auto Group . . . . . . . . . . 6 Equalizer Industries . . . . . . . . . . . . . 8 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 19 Fowler I-240 Chrysler-Jeep-Dodge. 11 Garmat USA . . . . . . . . . . . . . . . . . . . 4 Gene Messer Hyundai . . . . . . . . . . 28 GM Wholesale Parts Dealers . . . . . 44 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Hyundai Plano . . . . . . . . . 30 Hyundai Wholesale Parts Dealers . 37 Kia Motors Wholesale Parts Dealers. 29 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mazda Wholesale Parts Dealers . . . 36
Mercedes-Benz of Oklahoma City . 32 Mike Calvert Toyota. . . . . . . . . . . . . 10 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 40 MOPAR Wholesale Parts Dealers . . 21 NACE Registration . . . . . . . . . . . . . 13 North Freeway Hyundai . . . . . . . . . 18 OE Reman. . . . . . . . . . . . . . . . . . . . 17 Ray Huffines Chevrolet . . . . . . . . . . . 5 Reliable Chevrolet. . . . . . . . . . . . . . 14 Replica Plastics. . . . . . . . . . . . . . . . 33 Safety Regulations Strategies. . . . . 12 Scoggin-Dickey Buick . . . . . . . . . . 23 Solution Finish . . . . . . . . . . . . . . . . 42 South Pointe Chrysler-Jeep-Dodge. 15 Star-A-Liner . . . . . . . . . . . . . . . . . . . 16 Toyota of Fort Worth . . . . . . . . . . . . 27 Toyota of Laredo . . . . . . . . . . . . . . . 22 Toyota Wholesale Parts Dealers . . . 41 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 45 Volvo Wholesale Parts Dealers . . . . 38 Young Chevrolet . . . . . . . . . . . . . . . 35
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 3
May Storms Bring Giant Hail, Significant Damage to Oklahoma Numerous severe thunderstorms pummeled Oklahoma in late May, a blessing and a curse for an area which desperately needed some rain, but could have done without the fist-size hail smashing car windows. Hailstones as large as 4.25 inches were reported by the National Weather Service on May 29. Hail damaged the roofs and windows of many homes and broke out car windshields. In Edmond, about 450 cars at Bob Howard Dealership were damaged by the hail.
The storms dropped enormous hail on the Oklahoma City area the evening of May 29. The National Weather Service received reports of softball-sized hail or larger in the Kingfisher area. No deaths were reported but authorities say a handful of people were injured by the large hailstones.
The storms also knocked out power to homes and businesses. A handful of people were injured and wind gusts exceeding 75 mph snapped utility poles, leaving thousands without electricity.
The storm system spawned a weak tornado and hail the size of softballs in northwestern and central Oklahoma. Governor Mary Fallin on May 30 declared a State of Emergency for 35 Oklahoma counties due to straight line winds, hail, flooding and tornadoes. Heavy rain flooded streets in Tulsa. A woman drove her car into high water and was stranded when the engine quit. Other drivers came to her aid and pushed the car out of the water. Hail the size of softballs, high winds and lightning-sparked fires
Wind and Hail Coverage May Lead to Big Losses
The severe weather that hit Oklahoma in late May could lead to Oklahoma insurance companies having to pay an estimated $400 million to cover insured property damage, according to an industry group. At the same time, a major insurer has claimed that the high winds and hail were not considered to be catastrophic. According to the Oklahoma Farm Bureau Insurance vice president of public affairs, John Wiscaver, “From the standpoint of comparing this to the hail event we had a couple of years ago in the spring that was just a massive hailstorm, it is not even close to the magnitude of that event.” He went on to say that it was only the coverage by the media that left the impression that the storms lead to massive damage to property. Wiscaver explained that while there had been some damaging hail in certain isolated parts of the state, it was no means as extensive as was suggested by the media coverage. The preliminary estimate from the Southwestern Insurance Information Service was $400 million. That organization, based in Texas,
felt that this would be the total cost of all of the insured losses, following a survey that it conducted and which included the participation of its members, such as the largest Oklahoma insurance providers. The president of the Southwestern Insurance Information Service, Sandra Helin, did confirm, though, that these numbers were only preliminary and that they are bound to change. She illustrated by saying that for one of its member companies, the number had already doubled from earlier predictions. Helin stated that the storm’s damage claims are quite widespread. She also pointed out that the estimate produced by her organization did not include any of the commercial losses or the lost income from businesses as a result of the damage from the severe weather. Oklahoma insurance company, Group 1 Automotive Inc., a publically traded business which operates eight car dealerships within the area of the state’s capital, had reported that it anticipates a cost of around $1.8 million to $2.3 million after taxes and deductibles as a result of the vehicle damage experienced at seven of its locations.
4 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
destroyed property and left a mess for many Oklahoma City metro area residents. Nearly 100,000 people lost power in the metro area. Downed power lines caused traffic snags, and high water trapped some people in vehicles. Most of the damage across the state was from hail up to the size of softballs and wind gusts that reached as high as 85 miles per hour. Hail smashed roof tiles and stained-glass windows on the south side of Christ the King Catholic Church in Nichols Hills, said Patrick Cullen, church business manager. The damage could exceed $600,000, Cullen said. In 2010, hail caused $1.7 million damage to the church. Emergency Medical Services Authority paramedics responded to 95 calls between 7 and 11 p.m. on May 29 in the Oklahoma City metro area, including injuries from hail, broken glass, flying debris and car accidents. Eight of those calls were for traumatic injuries. Six people were hit by hail, one had a cut hand and one was hit by a loose road sign that fell as
people sought shelter under an overpass. One person was critically injured in a car wreck when she exited her vehicle and was hit by a vehicle that hydroplaned. Medics also responded to 14 wrecks directly attributable to the storms, low visibility, sliding through pooled water or disregarding traffic
laws at intersections where power was off to traffic lights. The Oklahoma City Fire Department also handled several rescues, including four people stuck in kayaks in high waters near SW 15 and Meridian Avenue, and two people trapped in a vehicle in high waters at 400 Ann Arbor.
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Industry Day Set for July 11 at Louisiana Tech College
Tri-State Coatings, Inc. will host an Industry Day on July 11 at Louisiana Technical College, 2010 North Market in Shreveport, LA, from 7 a.m. to 4:30 p.m. Guest speaker is Troy Niles, who will talk about the “State of the Industry.” Classes will include: ● Blending strategies and how to get paid for it ● Buffing black without swirls ● Collision industry jobs ● Keeping customers for life ● Compressed air ● Vehicle dimension measuring ● Waterborne basecoat application demonstration ● Aluminum repair ● Masking strategies ● Squeeze type resistance welding ● Corrosion protection There is a limited seating in each class. Cost is $125 per shop for the first three people; $25 for each additional person. Classes will be 45 minutes to an hour. Pre-registration is highly recommended. Lunch will be served by the Louisiana Technical College Culinary Department. For more information/register, visit Tri-statecoatingsonline.com.
New Captive Law Will Invite Businesses to Oklahoma
Oklahoma Insurance Commissioner John Doak recently announced that a proposed new law paves the way for more insurance companies to do business in Oklahoma. Senate Bill 1617, requested by Oklahoma Insurance Commissioner John Doak, caps the premium tax on captive insurance companies at $100,000. Captive insurance refers to a subsidiary corporation that provides insurance to the parent company and its affiliates. It allows corporations and groups to take financial control and manage risks by underwriting their own insurance rather than paying premiums to thirdparty insurers. Oklahoma has allowed captive insurance companies to operate in the state since 2004, but the law didn’t attract any new business to the market. The Oklahoma Insurance Department (OID) discovered that captive insurance companies were instead choosing to operate in states with a cap in premium tax. In fact, several Oklahoma-based companies are domesticated in Vermont. The OID asked for a change in the law in order to attract new businesses to the state.
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Electronic Insurance Proof Bill Clears LA Legislature
A proposal in Louisiana allowing authorities to accept electronic forms of insurance proof was approved in its final round through the Legislature. HB 1130 permits policyholders to use a “mobile electronic device” to display original or photocopied images of their policy to police during traffic stops that show they have the coverage required to operate a vehicle. The legislation was adopted in the state House with a 98-0 vote after agreement over minor, language-oriented amendments from the state Senate. It now heads to Gov. Bobby Jindal for further consideration and likely approval. The bill defines a mobile device as “any small, hand-held computing or communications device that has a display screen with touch input or a miniature keyboard.” Strong support from Louisiana legislators sped HB 1130 quickly through both the state House and Senate, which approved the proposal with a 94-0 vote on April 25 and 390 vote on May 16, respectively.
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Rockport, TX, Mechanic Woke Up to Homicide Scene
A Rockport, Texas mechanic woke up June 4 to find the body of 26-year-old Matthew James Chipps outside his shop. Investigators have named 42year-old Lewis Scholten Jr. as a suspect in this murder. Authorities say he is considered armed and dangerous and was last seen driving a green Saturn. Investigators searched Monkey Road looking for clues to help them figure out what led to the death of Chipps early on June 4. Neighbors say the business owner at Jerry’s Auto Service found the man’s body on his front porch, covered in blood. “When I looked out the window, there was police everywhere and there was a body and I got sick,” said neighbor Lou Collins. She and her husband live right between the crime scene and the auto shop. Collins found a trail of blood from the street and through her front yard, all the way to the auto shop next door. “He was stabbed in the neck and they hit his artery and he bled out. That’s why all the blood is everywhere. I guess he was trying to find a safe place,” she said. Aransas County Sheriff’s Deputies could not confirm if the man had indeed been stabbed.
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TIAA Hosts Jeff Franco, PartsTrader Discussed Approximately 40 members of the Texas Independent Automotive Association met May 23 at Pompeii Italian Grill in San Antonio. The two-hour collision-specific meeting hosted guest speaker Jeff Franco, president of Elite Sales and Marketing Group, Inc., based out of Scottsdale, AZ and past president of the Arizona Collision Association. Franco spoke to the group of shops and vendors about how being a member of an association can be beneficial to shops and promote a positive future for the collision industry. This meeting marked the first gathering that was focused specifically for collision shops. “The meeting was based upon my passion and the importance of belonging to an auto body association,” said Franco. “Some of the highlights that were discussed included state legislation representation and voicing opinions on issues like the State Farm PartsTrader Program. Working in Texas, I quickly saw that there was very little unity within the collision shops and their frustrations with dealing day-to-day with insurance companies. I saw what the TIAA had accomplished for the mechanical shops and saw the need for a collision association in the
entire state. Myself, along with TIAA, look forward to also opening up chapters in Austin, Dallas and Houston.”
About Jeff Franco Franco was very involved with the California Autobody Association, Ontario Chapter and helped start the Palm Springs Chapter in the early 1990s. In 1993, he moved to Scottsdale, AZ to work for Raintree Autobody as a marketing professional. He was also vice president of Coast Automotive Group. In 1993, he was elected membership director of the Arizona Collision Craftsman’s Association and set up chapters in Tucson and Flagstaff. In 1996, the Phoenix chapter became the State Board and he was asked to run for state president to oversee all chapters. He was the state president 1996–1998. As the current president of Elite Sales and Marketing Group, he has opened offices in Dallas, Austin, San Antonio and Houston. The company represents over 60 new car dealer parts departments in Texas for collision shops and mechanical shops promoting the use of OEM parts. For more information, contact Jeff at (602) 577-6520 or visit www.elite-dealers.com.
Texas DOI to Hold Hearings on Consumers Bill of Rights
The Texas Department of Insurance will hold a hearing June 26 on proposed amendments to its “Consumer Bill of Rights” for auto and home insurance policyholders. The document spells out consumers’ rights to choose both the shop and parts used for repair of their vehicle. The Houston Auto Body Association hopes to clarify this section to define the ‘reasonable amount’ for replacement parts as “based on the suggested list pricing provided by vehicle manufacturers.”
Mike Causey in NC Runoff
Mike Causey, former Autobody News columnist and a former lobbyist for the Independent Auto Body Association, finished a close second in a 3-way Republican primary for state insurance commissioner in North Carolina. Causey received 35.1 percent of the vote, and will now be in a July 17 runoff election against Richard Morgan, a former state legislator who received 37 percent of votes in the primary. Causey’s columns can be read at autobodynews.com, select Columnists/Causey, Mike from the menu.
Louisiana Towing Bill Signed by Governor
A bill that allows police to tow cars of drivers lacking insurance coverage on a first offense was signed by Gov. Bobby Jindal on June 5 and goes into effect on August 1, 2012. HB 1053 repeals current law that prohibits officers from towing cars of first–time violators of the compulsory insurance law and allows towing only on second and subsequent offenses. State senators passed the bill on May 24 with a 28–3 vote. The state House passed the bill by an 82–7 vote on April 25. After the bill’s approval by senators, Speaker of the House Chuck Kleckley signed off on the latest version agreed upon by the state House and Senate, before sendings the legislation to Gov. Bobby Jindal for final consideration. The bill, supported by the Louisiana State Police, aims to help bring down the number of uninsured drivers in the state by returning to harsher enforcement of the law, according to Rep. Ray Garafalo (RMeraux), who authored the legislation.
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Memorial Held for Carroll Shelby at College
Car enthusiasts from near and far gathered at Northeast Texas Community College May 30 to say goodbye to automotive legend Carroll Shelby. The event was hosted by NTCC in conjunction with Team Shelby Texas. The evening began with car lovers gathering on the north side of Mount Pleasant for a memorial run. More than 45 Shelby vehicles participated in the memorial ride that included a drive by Mr. Shelby’s home in Pittsburg. “It was a powerful sight to see that many fans gathered together to remember Carroll. I like to think he was looking down on us smiling that night,” Dr. Jonathan McCullough, NTCC vice president for advancement said. The run ended on the NTCC campus, where the cars were put on display and local fans gathered to visit and pay their respects to Mr. Shelby. At 8:55 p.m. there was a 30 second ceremonial “revving of the engines.” “I can’t think of anything that would have honored his memory better than that moment. Mr. Shelby lived a big life and we are just thrilled that NTCC got the chance to know this great man,” Dr. Brad Johnson, NTCC president, said. At 9 p.m. the event moved into the Student Union Building for a live
New Service King in San Antonio
Service King Collision Repair Centers is expanding its presence in the San Antonio area with the purchase of Bordelon Collision in Spring Branch, north of San Antonio. The acquisition, which is expected to close June 29, would give Service King nine centers in the San Antonio area to go with 40 others in Houston, Dallas-Fort Worth and Austin. It exploded into the San Antonio marketplace last year with the purchase of Alamo Body and Paint and its eight San Antonio locations. The new acquisition is located at 5371 U.S. 281 North and has been open for two years serving the growing market around that freeway and Texas 46. Max Bordelon, the company’s current owner, said he was excited by the acquisition and was confident Service King would “take care of our employees and customers for years to come.”
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simulcast of the memorial service being held in Los Angeles, CA. Personal friends of Mr. Shelby, including Jay Leno, Dan Gurney, Edsel Ford and Lee Iacocca, eulogized Mr. Shelby in both touching and amusing tributes. Following the simulcast, the event gathered at the NTCC Carroll Shelby Automotive Technology building and raised a toast his memory. Approximately 150 people were in attendance. Mr. Shelby, a native of Leesburg, became a benefactor of the NTCC Automotive Program in 2008. In addition to lending his name and influence to the program, Shelby has provided scholarships that have allowed many students to achieve their college dreams. “We at the college always understood that he could have started his program anywhere. Bigger schools in larger and more high-profile communities would have done anything to partner with him. But Mr. Shelby never forgot his roots and chose to invest here in Northeast Texas,” Dr. Johnson said. To learn more about the Shelby Automotive Technology program at NTCC,visit www.shelbyautotech.com or contact Keith Fennimore at 903434-8159.
NHTSA: Safety Improvements Prevented 700,000 Crashes
A new report from the National Highway Traffic Safety Administration finds that vehicle safety improvements made since model year 2000 have prevented 700,000 crashes. The likelihood of crashing in 100,000 miles of driving, the report indicates, has dropped from 30% in a 2000 model year car to just 25% in a 2008 model year car.
Hertz CEO Robert Smalley, Sr.
Robert Smalley Sr., former CEO of Hertz Corp., died May 28 in Flat Rock, NC. He was 88. Smalley began his career in Miami at his grandfather's company, Couture Rent-A-Car. He moved to Hertz when it acquired the family business in 1958 and held a number of jobs in Chicago and New York before getting the top job in 1968. In the early 1970s, after leaving Hertz, he founded an RV rental company in Florida called Cruise America. The headquarters later moved to Arizona and is still run by the family.
8 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
Claims Adjusters Given Temporary Licensing
After damaging storms hit Oklahoma in late May, state Insurance Commissioner John D. Doak cleared the way for insurance companies to bring in additional claims adjusters. Doak’s emergency declaration enables emergency claims adjusters to be licensed temporarily to expedite the insurance claims process and provide immediate assistance. The move, Doak said, is designed “to help storm victims get the help they need quickly.” Strong winds, hail and several tornadoes left damage across much of the state. Insurance officials had no preliminary estimate of the insured losses. Doak urged Oklahomans to be cautious in their response to damaged property. “First and foremost, make sure you and your family are safe,” Doak said. “Don’t make a bad situation worse by putting yourself in danger while assessing damage. Be especially careful of downed power lines, broken glass, exposed nails and other debris.” State Attorney General Scott Pruitt warned residents in areas damaged by severe storms to be on guard for home repair schemes and charity fraud that typically follow in the wake of weather damage.
“We know from past experience that this type of damage attracts criminals looking for ways to take advantage of Oklahomans,” Pruitt said. “We’re getting the message out now so people can be aware of such quick-fix schemes and spread the word to neighbors and family members before they become victims.” • Call your insurance company or agent with your policy number and all relevant information as soon as possible. Ask what forms, documents and information you will need to provide to process your claim. • Take photos or video of the damage. • Make necessary repairs to prevent further damage to the property (for instance, covering broken windows, leaking roofs and damaged walls), but do not have permanent repairs made until your insurance company has inspected the property and you have reached an agreement with them on the cost of appropriate repairs. • Save receipts, including those from temporary repairs that might be covered by your insurance policy. • If your home is uninhabitable, ask your insurance provider if you have coverage for living expenses incurred while repairs are being made. Save all receipts to document those costs.
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 9
Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
SCRS Meeting Discusses Insurance Regulation, State Farm with John Yoswick
State Farm’s PartsTrader program, the use of shops’ estimating and other data, and how one state regulator oversees auto insurers, were among the topics at a recent board meeting of the Society of Collision Repair Specialists (SCRS). A number of participants at the meeting held on April 24 in Oklahoma City, OK, wore large buttons opposing “data mining” by the “Big Three” information providers, indicating they wanted the ability to “opt out” of having their shop estimating data aggregated and used or sold. The buttons were part of the follow-up to a joint statement that SCRS and two other trade associations sent in January to CCC Information Services, Mitchell and Audatex, voicing concern about collection and use of shop data. SCRS Executive Director Aaron Schulenburg said that as of late April, only CCC had provided a formal response to the associations’ request. “The response addressed that they have a mutual concern in protection of data, but didn’t really address the questions that we’d asked relative to an opt-out policy or discontinuation of collecting the data,” Schulenburg said. He said it is his understanding Mitchell and Audatex are working on their responses, which he said the associations intend to share with the industry. One aspect of data privacy concerns that Schulenburg said the association has looked into were reports of vehicle accident histories showing up on CARFAX reports—instances in which the vehicle owner presumed the information could only have been obtained through the collision repair shop that prepared an estimate on (or repaired) the vehicle. In two of the three cases of this type of situation that SCRS looked into, Schulenburg said, the CARFAX data actually had been sourced though local police accident reports. In a third instance, a woman seeking to trade-in a vehicle was upset that a CARFAX report indicated that her vehicle had had structural damage repair, when
she knew this wasn’t the case. She contacted the shop shown on the CARFAX report as having done the repairs. SCRS worked with CARFAX and determined the report was in error, incorrectly linking collision damage on one vehicle to the VIN of another. CARFAX was able to correct the error, Schulenburg reported. He also said that SCRS held a meeting in late April with I-CAR and representatives of many of the top automakers to discuss increasing the amount and availability of published OEM repair procedures. The meeting was the result of another joint statement by SCRS and other trade associations last November recognizing published automaker repair procedures as the “official industry-recognized repair standards for collision repair.” The associations also asked ICAR to create an industry council “to identify gaps in existing OEM procedures and develop processes to close (those) gaps.” The need for training and standards was illustrated in a presentation by SCRS board member Paul Val, who brought to the Oklahoma City meeting a quarter panel his Arizona shop had removed from a poorly-repaired vehicle brought into his shop because of a water leak in the trunk. Val said the MIG welds used to “attach” the quarter panel didn’t penetrate, and no weld-through primer or corrosion protection had been applied. “You could literally just pull the quarter off,” Val said. He said his shop had to do $3,000 in re-repairs to the vehicle. He said the shop that had done the original work under an insurer direct repair program paid his shop for the rework with a credit card – and remains on the direct repair program. “Someone is going to get killed in one of these cars,” Val said. Also at the meeting, a presentation by representatives of the Oklahoma Department of Insurance was probably both heartening and disheartening at times for collision repairers. On the upside, Michael Copeland of the Department’s anti-fraud unit
10 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
confirmed the regulator is now focused more on fraud against consumers by insurers, rather than consumer insurance fraud, which had been its priority under some previous Insurance Commissioners. Copeland also said he’d like to partner more with the Oklahoma Auto Body Association to address issues of concern. On the other hand, Jason Johnston, a senior claims processor and reviewer for the Department, seemed to acknowledge the state’s anti-steering law is being interpreted loosely. The law prohibits insurers from making shop referrals unless requested by the vehicle owner. “But we’ve determined the insurance company can say, ‘Do you have a place in mind, or we can offer a repair place,’” Johnston said. “We give (insurers) that option.” He said he’s probably had only a half dozen complaints related to steering, and they are difficult to address
because it’s usually a shop’s word against the insurer’s. He said an audio recording or affidavits - enough to show a pattern - could help. But he was also asked how a shop can combat some of the subtle but perceived as unfair “steering” techniques used, such as an insurer telling a customer the process could be slower at the non-DRP shop and thus could result in the customer having to pay some of their own rental car costs (even if the customer has 30 days of rental coverage on their policy). Johnston’s only suggestion: Perhaps the non-DRP shop can offer something to better compete for that customer’s business, such as a free rental car. State Farm’s PartsTrader program had been the focus of a closed session of SCRS’ board meeting, but during the open session, Schulenburg asked State Farm’s George Avery if the insurer would move forward with PartSee SCRS Meeting, Page 20
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Storm Chaser Chases Hail-Damaged Cars for Shops
Steve Shapiro is the kind of storm chaser who goes after the damages, not the spectacle. For 21 years he’s traveled the world offering his services as a specialist in auto body damage caused by hail. “This is a severe storm,” Shapiro said as he worked on a damaged Honda at Bodies By Jay in Moreau, NY. Shapiro is in good company locally, as local body repair shops rely on tradesmen with skills like Shapiro’s to help motorists recover from severe weather. Shapiro works for North American Paintless Dent Repair. While he lives near Boston, he figures he’ll be in the Glens Falls, NY, area until the flood of hail-damaged vehicles subsides. The paintless dent repair techniques allow him to remove medium and small hail dents without the need for conventional body work and painting. “I just came in to deal with the major part of it,” Shapiro said, adding there are a lot of cars in the area that sustained damage requiring more drastic repairs. Jay Cardinale, who owns Bodies by Jay, said he’s seen his business double since the recent storm, which dropped golf-ball-sized hail in parts of Lake George and Bolton. The recent
storm resulted in the first widespread automobile hail damage Cardinale’s seen in four years, though the 2008 storm wasn’t as bad as this one, he said. Cardinale said damage bills for vehicles he’s fixed have been as high as $10,000. Rich Tanchyk, vice president of H&V Collision Center on Quaker Road in Queensbury, NY, has turned his business into a storm recovery center of sorts. He said his business, which also has locations in Saratoga Springs, Troy and Colonie, has about a dozen paintless dent repair specialists helping out with repairs. “We also have our own teams that move where the damage is,” said Tanchyk. He estimated his business had handled claims on hundreds of cars so far. He has also gathered insurance claims representatives at his Quaker Road location to help motorists file the paperwork needed to claim the damage on their vehicles.
The National Auto Body Council (NABC) announced it has received board approval to help Operation Comfort’s Automotivation program secure a new facility in which it can continue to help disabled U.S. service members and their families through the instruction and practice of proper collision repair. Located in San Antonio, Texas, Operation Comfort complements the rehabilitation efforts carried out by the U.S. Army at the Brooke Army Medical Center (BAMC). As a form of occupational therapy, the organization runs the Automotivation program through which disabled veterans, in many cases those that have lost one or more limbs, are rehabilitated through automotive-related activities such as rebuilding and restoring cars, trucks, and motorcycles. The property Automotivation used for training is being sold, a development made even more disheartening because Operation Comfort used the facility without a rent or utility obligation. Now, a newer, larger building much closer to the hospital is being offered for sale to Operation Comfort and the National Auto Body Council intends to raise the funds for purchas-
ing and renovating the new building. Though fund-raising details are still being finalized, the National Auto Body Council will work with the Collision Industry Foundation, a recognized 501(c)(3) charity. Because the Foundation will be the entity through which money will be raised, those wishing to support Operation Comfort will have the option to make their donation tax deductible. A fundraising committee is being created to seek out contributions at several different levels: corporate donations for vendors, insurers and other interested businesses, as well as body shop level and individual contributions. Matching grants are also being considered in order that businesses and employees, vendors and customers, and other partners can be invited to match funds. “Our battle-tested veterans have given more of themselves for their country than most of us can even imagine,” stated NABC Executive Director Chuck Sulkala. Those interested in making donations for the new Automotivation facility should contact Chuck Sulkala at 888-66-PRIDE or e-mail: chuck@autobodycouncil.org.
Autobody News is pleased to announce our
Great Lakes Edition will publish in September!
NABC Helps Operation Comfort’s Automotivation Secure a New Facility for Disabled Vets
12 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
Ford Ships New Escapes, Some Have Hail Damage
Ford began shipping the new Escape to dealers several weeks ago even as hail damaged thousands of units near a Louisville assembly plant. The Louisville Courier-Journal reported that 3,500 Escapes were damaged by hail during an April 28 storm, while awaiting shipment last month at Ford Motor Co.’s Louisville, Ky., assembly plant, but the incident won’t delay the launch of the all-new crossover. Ford spokesman Todd Nissen said the company is inspecting the plant’s shipment lot to assess damage. He said affected SUVs will not be sold to new-car buyers. “We haven’t determined what we will do with them yet, but they will not be shipped to dealers as new,” Nissen said. “We’ll be able to recover, over time, our production volume as we go through the launch of the vehicle and as the plant continues to ramp up,” Nissen said. This year through May 26, Ford has built 11,000 new Escapes. The company spent $600 million to retool the Louisville plant, shifting production of the Escape from the company’s Kansas City, Mo., factory. The move created about 1,800 jobs.
PARTS Patent Bill Gets Three Additional Sponsors
Three more members of Congress have signed on as co-sponsors of federal legislation (HR 3889) that would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Reps. Bill Cassidy (RLA), Walter Jones (R-NC) and Dennis Ross (R-FL) are now supporting the bill, backed by insurers and nonOEM parts manufacturers and distributors, that would reduce patent protection for OEM parts from 14 years to just 2.5 years. Supporting the bill are numerous aftermarket organizations, including the Quality Parts Coalition who issued a statement saying, in part: “American drivers currently have access to alternative auto replacement parts that can save them between 26–50% when repairing their cars after an accident. But car companies are trying to force consumers to buy their parts only and eliminate the competition. Car companies have been acquiring U.S. design patents on exterior auto repair parts—such as hoods, bumper covers and mirrors—and enforcing them against independent suppliers who have been selling these more affordable and quality alternative parts for more than 60 years.”
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 13
Matters of the Heart—Body Shop Owner Saves Adjuster’s Life by Ed Attanasio
Fixing cars is rarely a life-and-death situation. But, on a hot summer day last year, a body shop owner had to act quickly to save the life of an insurance adjuster who was experiencing a serious heart attack at his facility. If Bob McSherry, owner of North Haven Auto Body in North Haven, Connecticut had not acted quickly and definitively when Mike Vitale, an adjuster for GEICO, experienced a serious heart attack in his rear parking lot, there is a very good chance he would no longer be alive. It started out as a typical hot, humid summer morning, but quickly became a life-changing experience for at least two people. “It was one of those days in Connecticut where you’re sweating heavily by 11 a.m.,” McSherry explained. “Mike had a long day ahead of him, and he used to be kind of high-strung back then anyway. Now, since the heart attack, he has slowed down quite a bit. But, he was a little wound up that morning because he was behind schedule.” Vitale’s itinerary then changed radically, McSherry continued. “So, Mike was out there in our back parking lot writing up a vehicle when suddenly he collapsed between two cars. A couple of my techs saw him go down, which was lucky. One of them ran into the office and said, ‘The guy from GEICO is down and we don’t know what happened to him!’” Vitale was fortunate to be at North Haven Auto Body because McSherry is an EMT and a volunteer fireman. “I got out there pretty quick and Mike was not breathing at all,” McSherry said. “After establishing that he had no pulse, I started doing CPR on him, and, luckily, the fire department was here within three or four minutes. The firehouse is about a mile from here and they were Johnny-on-the-spot. They gave him a shock here and then another one on the way to the hospital, and by the time he got there he had a heartbeat and was breathing.” Unfortunately, Vitale wasn’t quite out of the woods yet, McSherry said. “They put him in a medically-induced coma for next three days because they were obviously concerned about brain damage. The people at the hospital told Mike’s family that they were lucky because we acted quickly,
but they weren’t sure what his condition was. When they took him out of the coma three days later, he was 100%, talking and being Mike again.”
A series of fortunate events led to cerned with aren’t as important anyVitale’s life being saved, he explained. more. Now when I become 65, I will “Thank God there was a guy working seriously be thinking about retireon the asphalt in the parking lot. I col- ment.” lapsed between two Vitale thanked everyone who cars, so if that guy helped save his life, including the guy hadn’t been there, I fixing the asphalt, Bob McSherry and doubt that anyone the local fire department. “Gratitude would have found is the word I can use. The first chance me until it was way I had, I went around to let everyone too late. He notified involved know that I am truly apprea tech and he ran ciative and indebted forever. Bob Mcinto the office to Sherry and I have always had a good tell everyone I was relationship, but now I can say withd o w n . A n o t h e r out hesitation that he is my very best lucky thing was the friend.” Body shop owner Bob McSherry (left) acted quickly to save a life fact that I had the Another valuable piece of adwhen Mike Vitale, a GEICO adjuster, had a heart attack in the auto attack at Bob Mcvice from Vitale is visit the doctor body shop parking lot last summer Sherry’s shop and regularly, whether you need to or As a volunteer fireman for almost the fire station was so close by. It was not. “I talked to the doctor after the 30 years, McSherry was well-pre- a combination of things and without incident and they told me that they pared and trained to act without hesi- them, I would probably not be here to probably would have seen some pretation. “Most people hear about CPR, talk to you right now.” cursors of the heart attack, especially but they rarely see it done in person. Vitale, 61, is now seeing life from the high blood pressure I wasn’t It’s a mind-blower and not for the a different perspective after the nearaware of. I used to be one of those faint-of-heart, that’s for sure. After death experience, he said. “I have so people that would never go to the Mike went down in the parking lot, much more to accomplish and now I doctor, even when I was sick. But, more than a few of my employees can. I have a granddaughter and I quit now for obvious reasons, I have came to me and asked about learning smoking, so life is good now. Some of changed my mind about going to the CPR. We agreed Mike was very lucky the things that I used to be so condoctor.” that day, but I asked my guys, ‘If someone had a heart attack at your house, for example, wouldn’t you want to help them?’ My employees said we should do some training and I • Highly Competitive Discounts • Genuine GM Parts agreed.” • Se Habla Español • Free Delivery McSherry set up a CPR training day for his staff and paid for the exPlease call or fax your inquiries today! Parts Department Hours: pense. “This way, the entire shop will Mon. - Fri. 7:30am - 6:30pm be ready if anything like that happens Sat. 8am - 5pm Fax: 972.952.8151 again. We hired a local fireman who 800 N. Central Expy. does CPR training and it took about Richardson, TX 75080 eight hours to do it, but after you complete it, you’re pretty much an expert on how to administer it. We did the training right here at the shop, and we’re also in the process of installing a defibrillator, which some people call ‘the paddles.’ It costs roughly $2,700, but in the end it’s worth every penny. I hope one day they don’t have to use it on me,” he laughed. “They’re easy to use, and with all of the illustrations on the device, anyone can do it.” Vitale is happy to be lucky, in the www.reliableGMparts.com right place and most importantly, alive and well. “I went to the shop to look at a car, and the next thing, I was waking up at the hospital. There were no warnings. My diet is usually pretty good and my weight is ideal, so it THE NORTH TEXAS CHEVY STORE came as quite a surprise.”
14 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
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What it Takes for a BMW Dealership to Become a BMW CCRC
Some recent controversy about who is a BMW certified training center and why, prompted us to look into exactly what the requirements are for dealerships to gain certification. There are no “authorized” repair centers and only dealerships can become BMW Certified Collision Repair Center (CCRC). At present there are only 69 CCRCs in the US, and only nine in California. The entity that owns the BMW Center must be the same entity and must have the same level of ownership in the applicable collision repair facility. Here you will find a condensed version of the key steps and requirements for a facility to become a BMW Certified Collision Repair Center. BMW requires each and every CCRC in the program to follow these stringent criteria and follow these guidelines. BMW CCRC’s are expected to repair BMW vehicles back to BMW specifications using only Original Parts and following the repair procedures stated by BMW. With general technician training, technicians are recognized for attend-
ing the training courses by BMW North America but they are not [necessarily] BMW Certified Technicians. They have a recognition plaque of all the training courses they have attained but it is not a Certification plaque. If the technician goes from a CCRC to another repair center it does not mean that shop will now have BMW Certified Technicians. The only time the word “Certified” is used is when the facility becomes part of the BMW Certified Collision Repair Center program. That means that the BMW CCRC has met all the requirements and goes through an annual Re-certification process.
2011 BMW Certified Collision Repair Center Program The BMW Certified Collision Repair Center Program is a voluntary, no fee program developed to ensure that BMW clients receive a first -class customer experience. The Certified Collision Repair Center (CCRC) Program is designed to enable BMW Center-owned collision repair centers to:
16 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
● Focus on achieving a high level of profitability; ● Operate more efficiently; ● Ensure vehicles are repaired to BMW specifications (as outlined in the Technical Information System, or ISIS/ISTA); and ● Ensure vehicles are repaired using only BMW original parts, approved paint, materials, tools, and equipment.
CCRC Program Benefits During initial certification (and throughout the certification and recertification process) BMW NA’s vendor, Summit Consulting, Inc. (“Summit”) provides several types of 100% BMW-funded support to help a CCRC enhance its collision repair business. The objectives of this support include: ● Identifying market opportunities to generate revenue; ● Establishing the CCRC’s current collision revenue performance; ● Closing the financial gap between the CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; and
● Identifying required tools / equipment needs, while assisting CCRCs to project the recommended capital investment levels.
Annual CCRC Managers’ Meeting The CCRC management should actively participate in the Annual BMW CCRC Managers’ Meeting. By attending this event, a CCRC manager benefits by: ● Receiving the latest BMW branded collision repair business tools; ● Reviewing the trend of CCRCs’ collision process and profitability performances; ● Learning and sharing key collision repair service strategies focused on improving profitability; ● On-going professional training; ● Management Roundtable Discussions—These facilitator-led group discussions are designed to allow CCRC participants to share proven techniques and best practices to grow the collision business both in parts sales and repair revenue; ● 4 Stage Market Network Development Financial Analysis Tool—This four stage tool provides enrolled
CCRC managers access to: ▬ Identify market opportunities to generate revenue; ▬ Establish the CCRC’s current collision revenue performance; ▬ Close the financial gap between CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; ▬ Identify recommended capital investment levels and required tools and equipment needs.
nual re-certification endorsement slugs; ● CCRC Customer Creed plaque; ● BMW branded marketing materials; ● BMW NA approval to use official CCRC signage.
Additional CCRC Benefits In addition to the benefits outlined above, CCRC Program Benefits include: ● Accessing & using customized BMW CCRC marketing materials; ● Utilizing BMW approved collision repair tools and equipment; ● Making use of the latest BMW branded collision repair business tools; ● Participating in body & paint technical and non-technical training courses; ● Efficiency improvement by using BMW repair specifications (ISIS/ISTA), the flat rate manual (KSD), and electronic parts catalog (EPC) for repairs; ● Utilizing an approved refinishing system of the BMW Group; ● Participating in the 2011 Profiles In Achievement (PIA), which includes an incentive program for CCRC managers; and
Collision Repair Parts Incentive Program All BMW Centers have the opportunity to open a BMW CCRC. BMW NA offers all CCRCs the opportunity to participate in the monthly Collision Repair Parts Incentive Program. Eligible BMW CCRCs can earn a 2% rebate on the dealer cost of all original BMW parts purchased from BMW NA and used by the CCRC for nonwarranty or non-maintenance collision repairs. The BMW CCRC is eligible for the rebate only if the CCRC remains compliant with the CCRC Program.
CCRC Promotional Material ● BMW NA CCRC plaque and an-
● CCRC’s premium access to Roadside Assistance.
Program Participants Successful results in the CCRC Program rely heavily upon the CCRC’s professionals and the culture in which they operate. These individuals are responsible for adopting the processes necessary to: order and install original BMW parts, follow BMW Repair Specifications and use only BMW NA approved paint, materials, tools, and equipment for every BMW collision repair.
CCRC Certification and Re-certification Process Initial Certification Visit The first visit by BMW’s vendor, Summit, will focus on ensuring basic compliance and review of the approved center’s collision repair facility’s core processes to profitably repair vehicles per BMW repair specifications (ISIS/ISTA.) A CCRC’s use of BMW NA approved paint, materials, tools, and equipment is also reviewed. Following the initial visit, the CCRC’s management team and Summit will develop specific on-site action plans for technical and
ColorSystem training to ensure that these mutually agreed upon business goals are met by the CCRC.
Re-certification Visit If the CCRC continues to comply with the CCRC Program requirements, the CCRC receives an annual re-certification visit and follow-up by Summit. Following the re-certification visit, the CCRC’s management team and Summit will review specific onsite training and action plans to ensure that these mutually agreed upon business goals are met by the CCRC.
Certification Program Elements Technical and Non-Technical Training Requirements To ensure premium quality collision repairs, body and paint technicians will meet the training requirements listed in Appendix A. Each CCRC must have a designated individual who is accountable for approving staff training and determining the training path for each individual of the CCRC’s staff. The amount of training required is based on the CCRC’s body and See BMW CCRC, Page 32
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Nissan EVs Tested in New York Amid Standard Debate Nissan is supplying New York City with fuel-efficient cabs, including six electric cars for testing, but acknowledged uncertainties about an ongoing “debate” over charging standards for electric vehicles. The battle in fast-charging stations, the equivalent of gasoline stands for electric vehicles, is threatening to turn into a futuristic replay of other major platform wars like VHS of Panasonic vs. Sony’s Beta in video. Nissan Executive Vice President Andy Palmer said the debate was still going on, and it was unknown whether nations will adopt the CHAdeMo used by Nissan, or the competing one called Combo backed by General Motors Co. and European automakers. The standards use different plugs and aren’t compatible. Palmer said Nissan as a leader in electric vehicles must persuade others that its standard is the best. “The disadvantage is that we are setting the standard,” he said, adding that Nissan was “engaged in that debate” over charging standards. CHAdeMo, which comes from the words “charge” and “move,” and sounds like Japanese for “Care for some tea?” is also backed by Mitsubishi Motors. Nissan said its gas-engine NV200
vehicle, painted yellow, is set to start running as New York taxis in October 2013, and six Leaf electric vehicles will be part of a pilot program this year. But it is still unclear whether New York will opt for CHAdeMo. Electric vehicles’ limited cruise range means they can be used only for short trips, or towns must invest in building charging stations. “If we can get the combination right, the EV is very viable,” said Palmer. At least one electric-car competitor has proposed using replacement batteries for electric vehicles so they can keep running, rather than using charging stations, Palmer said. Although charging stations would not be needed, service stations would have to pick up the used batteries. Electric vehicles can also be recharged from regular home sockets, but that takes longer. Growing concerns over global warming and pollution are major boosts for the zero-emission electric car.
Insurance Regulators Face Budget Cuts, Increased Need
Poll Shows Americans Still Blame Bush for Economy
The NAIC released the first volume of the 25th edition of the Insurance Department Resources Report (IDRR) to help state insurance departments assess their resources in comparison to other states. State insurance departments received more than 283,000 official complaints against insurers last year, and fielded more 2.1 million inquiries. But with many of these departments already facing budget and staffing shortages, the report found the departments expect their total budgets for 2013 will be $1.3 billion, a 3.2 percent decline from this year.
‘Back 2 Back’ Joins Calif. Jobber
St. Louis-based Back 2 Basics Marketing LLC has partnered with California Color Source Inc., a supplier for the collision repair industry in the San Francisco Bay area, to be the official marketing agency for that California company’s clients.
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Americans still blame the country’s economic ills more on former President George W. Bush than on President Obama, a Gallup poll released June 14 indicated. Sixty-eight percent of Americans still blame the Bush White House while 52 percent said Obama was at fault, results indicated. The relative economic blame ascribed to Bush over Obama in the latest poll is virtually the same as it was in September, the Princeton, NJ, polling agency said. Gallup first began assessing blame in July 2009, six months after Obama became president. Then, 80 percent of Americans indicated they gave Bush a great deal or a moderate amount of blame for the bad economy compared with 32 percent who ascribed the same level of blame to Obama. Results are based on nationwide telephone interviews with 1,004 adults conducted June 7-10. The margin of error is four percentage points.
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18 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
Body Shop Does Paint Job on Paint Blob
On Broad Street in Philadelphia, next to the Pennsylvania Academy of the Fine Arts, a giant orange paint glob sits on the sidewalk underneath the paint torch. The dollop is positioned to appear as if it was dropped from the top of the brush of Claes Oldenburg’s “Paint Torch,” which towers several stories above. Few have probably noticed, though, that the blob is now backwards. When the sculpture was originally installed, the paintdrop’s peak was on the brush side. Pennsylvania Now it rises toacademy of ward Broad Street. the fine arts Skateboarders have made a habit of detouring from the sidewalk to skip off the glob, scratching and marking its surface, said Harry Philbrick, museum director at the Pennsylvania Academy of the Fine Arts. So the damaged drop got shipped via tow truck to an Edgemont autobody shop, Keenan Auto Body West. “The whole thing was covered with marks,” shop manager Max Sorensen said of the glob. “We polished the whole entire piece with a
buffer and rubbing compound.” Gouges in the fiberglass had to be filled with clear resin, because the tip glows at night, thanks to a light inside. The brush atop “The Paint Torch” also shines nocturnally. After sanding, the piece was sprayed with a clear sealer, then orange base coat, followed by a new, stronger ceramic clear coat. “It’s basically like the paint that’s on a Mercedez-Benz,” Sorensen said. As for cost, he’d only say, imagine a car getting a first-class paint job. On May 30, the piece was reinstalled on Broad Street, surrounded by a moat of uneven paving stones, a kind of rumble strip for skateboards. It was also turned 180 degrees. On purpose. Matching, it turns out, the sculptor’s original design. The hope was that, with the most upright side toward the sidewalk, skateboarders would be less tempted. A few days later, though, the dollop already had a few new scuff marks. The piece is tougher to scratch, so chances are good the marks can be harmlessly removed with rubbing compound, Sorensen said. Under a new City Council proposal, those skateboarding, bicycling or roller-blading on public art or monuments could be jailed for 90 days and fined $2,000.
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Make us your one-stop shop today! www.autobodynews.com | JULY 2012 AUTOBODY NEWS 19
Dallas Auto Paint & Body Shops Booked After Latest Hail Storm Vehicles were one of the biggest victims of a hail storm that hit Dallas on June 13. The next day, damaged cars started rolling into auto body and repair shops. Manager Bobby Lee of Hance Paint and Body spent much of his day on the phone talking to people trying to get their vehicles into his shop. “It’s been non-stop. Yeah, it’s been non-stop,” said Lee. The small, independent shop had seven cars dropped off by midday with dozens more already scheduled. “We have probably 30 cars in progress right now and we’ll keep 30
cars in the shop every day for the rest of the summer I’m sure now,” Lee said. The hail damaged vehicles came on top of the full load already in the shop. “We stay really busy. We average a lot of money every month and it’s been here so long, we stay really busy, but when something like this comes along, we have to hire extra help and it’s almost overwhelming,” said Lee. At the much larger Service King Park Cities, they didn’t have any room to park all the damaged vehicles. “A madhouse. Controlled chaos,” said manager Patrick Matthews.
The body shop posted on the front doors that appointments had to be made before vehicles were dropped off. Many of the cars in the shop had to be crash wrapped and returned to their owners. “We’re trying to get all of the customers that have back glasses blown out, vacuum the glass out, crash wrap them and at least try to get them to where they are in a drivable state,” Matthews said. Matthews said once someone got an appointment, it might be a while before their car is returned to its old self.
“We were already scheduled out through September from the hail storm that hit April. So now we are going to be scheduling all the way through October, November probably,” he said. Dallas resident Coury Jacocks had to watch his truck, which was his backup vehicle, get slammed with hail. His first car was already in the shop because of hail and it might be months before his truck got repaired. “I hope that’s not going to be me. Again, it’s a backup vehicle, hopefully going to get mine back soon, but I don’t doubt it,” said Jacocks.
Continued from Page 10
ward with this. We think it is in the best interest of our customer. I know we don’t have agreement, and that is fine, and I carry that information back. (And) something could happen that I can’t predict. But I can tell you that, right now, that we are moving forward with the process with our Select Service providers.” Schulenburg said SCRS also had worked with State Farm on an issue related to shops in several markets
being asked by the insurer to attempt repairs before replacing a part, but if replacement eventually proved necessary, local State Farm claims staff were telling the shop they could only pay for one or the other, but not both. Schulenburg said State Farm was able to communicate to their staff that “if it’s legitimate to have attempted repair and then it’s necessary to replace, that certainly there is no (company) policy prohibiting (pay-
ing for) that.” Avery said advance communication between the shop and the insurer is the key. “We had cases where it really boiled down to there being no agreement up front,” Avery said. “So that’s what we communicated. Please have communication with the repairer up front and say ‘Look, if we decide to pull this and it doesn’t work, what are we talking about?’”
SCRS Meeting
sTrader if shops, dealers and other parts vendors are resistant to it. “At this point, we are moving forward,” Avery said. “We are moving through our test. We’re obviously gathering information, making adjustments along the way. But I can tell you that State Farm is moving for-
Texas Hail Storms Cause High Insured Losses
It does not make drivers in Texas happy when they just get their car back from an auto body shop after getting repairs from the latest hail storm, only to have it damaged again as more baseball-size pieces of ice fall from the sky. Such is the case for some unlucky drivers in the Dallas area as two storm systems pummeled several cities in the area with hail ranging in size from a golf ball to a baseball. “We’ve had enough,” says Mark Hanna, spokesman for the Insurance Council of Texas (ICT). “Here we go with another high-loss event.” In April more than a dozen tornadoes ripped through the Dallas-Fort Worth area. ICT says insured losses from the tornadoes are estimated at $400 million. But the hail and wind storms on June 13 could produce higher insured losses. State Farm says it has already received 3,800 auto claims and expects that number to increase. “You’re talking about two systems with large hail hitting heavilypopulated areas,” Hanna says. “Everything got hit. The price of roofs hasn’t gotten any cheaper and neither have car repairs.” State Farm agent Stephanie South of Richardson, Texas says the
morning after the hail storm was the busiest she has ever had. “When I got in, every line was ringing,” she says. Most claims are for heavily-damaged vehicles with shattered windows. Other policyholders are calling to seek advice about their home roofs. South says she is telling policyholders to mitigate future damages, especially for cars without windows, by putting the car in the garage or placing a tarp over the car. Hail the size of baseballs traveling at a high rate of speed from the sky is enough to break windshields and compromise the roofs of homes, leaving them susceptible to leaks. Vehicles traveling on the city’s highways when the hail started falling scrambled to find shelter under overpasses, which became crowded quickly, or on the sides of tractor-trailers, at least to shield some of the falling ice. “Other than that, you pull over and take your lumps,” Hanna says. Insurers have classified the June 13 storm as a catastrophe, meaning insurance adjusters from throughout the state are returning to Dallas to help with claims. “If they were headed home from the last storm, they’re headed back now,” Hanna says.
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Kansas Businesses Still Dealing with Spring Storm Damage Hail damage from last month’s storm in Sedgwick County will keep many local businesses busy for a year. Roofers, sheet metal workers, auto body shops and insurance adjusters were still busy from the April tornado that swept through south Wichita when the May 30 storm hit, bringing 70 mile-an-hour winds and golf-ball size hail. In fact, Mother Nature has been a boon to those businesses since the recession. Storms inflicted a record $1 billion in losses in Kansas in 2011, according to the Kansas Insurance Department. In three of the past four years, storm losses in Kansas were 30 percent above previous records. And the storms have kept up a furious pace so far in 2012. No fewer than 29 hail storms have pounded the state since February, including six in Sedgwick County. “Basically, this is God’s stimulus package,” said Mike Heiland, of Heiland Roofing. There was enough damage to prompt large insurance companies to send help, and to keep local businesses busy.
A week after the storm, Larry Greider, owner of Auto Masters Service Center, 2222 N. Hoover, said 10 to 12 insurance adjusters were at his store writing up an average of eight to 10 vehicles every 30 minutes. Auto Masters was taking care of 15 cars a day. “It’s crazy right now. It’s probably the busiest I’ve ever seen it,” Greider said. Auto dealerships on the east side of Wichita were hit by hail, but not severely. Dawson Grimsley, president of Davis-Moore Auto Group, said his cars on that side of town were struck, but not badly damaged. “It shouldn’t be any big deal fixing the cars and making them look all brand new again,” he said Some of the larger insurance companies, such as State Farm, Allstate and Progressive, sent outside claims representatives to Wichita after the storm. Jim Camoriano, State Farm spokesman, said 13-20 State Farm claims representatives from a national team that deploys to sites of catastrophes are still in Wichita. Within a week of the storm, State
Farm customers statewide had submitted 1,302 homeowner claims and 3,282 auto claims, he said. The decision whether to file a claim isn’t always easy in cases where damage isn’t severe. “It’s a little bit like being sick and trying to decide whether to go to the doctor,” said Bob Tomlinson, assistant state insurance commissioner. He advised people to contact their insurance companies if there is damage. On the other hand, he said, they should be aware that insurance companies keep track of the number of claims a customer files. “If you call them after every storm, they will very quickly drop your coverage because they are going to know that if you ever do have damage, you are going to file a claim at the least little amount, and they’re going to know your house is prone to such things,” he said. “Like the doctor, you do not want to go if you can possibly avoid it.” A person’s insurance rates won’t go up simply for filing a claim, Tomlinson said. But rates could go up based on an insurer’s overall losses
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within that person’s community, as well as a host of other factors, such as type of insurance policy, age of the home, which fire department covers them, and theft and vandalism rates in the area. But insurance companies have to file rate increases with the state, and, by law, they can’t raise rates more than 12 percent without being scrutinized by the state insurance department. For people who suffered loss or damage from a storm and contacted their insurance agents, the state insurance department recommends keeping a record of conversations with agent or company, making a list and taking photographs of damaged property, and getting instructions from the insurance company’s adjuster before hiring someone to repair or replace damaged property. The department also recommends that people be present when an adjuster inspects the property, be leery of an adjuster who charges a fee, be aware of questionable or unfamiliar contractors and get more than one bid for repairs.
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Louisiana State Penitentiary Lifer Makes ASE Triple Master Rank A Louisiana State Penitentiary inmate serving a life sentence for murder is making a name for himself for his self-taught achievement in the field of automotive mechanics. Shelby J. Arabie, 49, was one of 12 people this year to qualify through the Institute of Automotive Service Excellence as a Triple Master in auto, truck and collision repair, with advanced certifications in gasoline and diesel engines. About a dozen people each year qualify as Triple Masters, said Tony Molla, ASE vice president for communications. The institute sets certification standards for automotive service technicians. Arabie also is among 16 people worldwide who hold all 51 certifications the institute offers, Molla said. Molla said Arabie qualified for world class technician status this year, and he will be honored in 2013 by ASE and the Automotive Aftermarket Industry Association. As part of that honor, his name will be listed in a book housed at the Automotive Hall of Fame. “Shelby is a member of a very small and elite group of technicians
whose achievement is impressive, to say the least,” Molla said. “That man is worth a fortune to this prison,” Angola Warden Burl Cain said. “The dollars he’s saved us and will save us in the future will be in the millions.” In June 2010, Arabie assisted prison officials in designing Angola’s re-entry program, which offers pre-release training to short-term prisoners sentenced in Orleans Parish. The program aims to offer prisoners job skills in auto repair, auto paint and body work and welding. Carefully selected inmates serving longer sentences, including life terms, teach the courses. Arabie got a machine shop up and running at Angola with the help of 20th Judicial District Court Judge Hal Ware. Also, Arabie and two other ASE master technicians, Dana Parker and Freddie Wilbert, are scheduled to start a school for industrial generator repair. “He’s kind of like the school superintendent. He goes around to all the schools checking on things,” Cain said. Arabie killed Bennie Posey, 29, of Meridian, Miss., in 1984, after Ara-
bie and a friend agreed to sell Posey and another man 10 pounds of marijuana. Posey and his friends, however, pulled a fake holdup and took the marijuana, leaving Arabie and his friend tied up on the side of the road. Arabie and his partner got loose and chased Posey and his accomplices to Baton Rouge, where Arabie shot Posey when the victim’s van stalled and he jumped out of it. After a rocky start in the prison system, including an escape from the State Police Barracks, Arabie began using his skills to better himself. In the aftermath of Hurricane Katrina, he was transferred to New Orleans to help law enforcement officers maintain a local jail, and to repair generators, air conditioning and electrical systems and help Amtrak officials get a locomotive running. In 2008, he helped restore electrical power to Angola and Avoyelles Correctional Center after Hurricane Gustav. Last year, the state Pardon Board unanimously recommended commuting Arabie’s life sentence to 45 years,
which would make him eligible for parole. The recommendation awaits action by Gov. Bobby Jindal. Posey’s daughter, Ashley Posey, appeared at the hearing to speak in favor of Arabie’s application for clemency. “That was pretty generous of her,” Arabie said. “I always felt bad about it. When I killed her father, I didn’t realize it back then, I was young myself, 21 years old, she was put in foster care and basically raised by the state of Mississippi. I don’t suspect she had a lot of real favorable experiences growing up, but she got through it anyway. “When you think about it, somebody doing something like that, coming to testify on my behalf, after I did that to her father…” Arabie said, his voice trailing off. Arabie said he now hopes the governor will consider his accomplishments when he acts on the Pardon Board’s recommendation.
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866-733-2861 225-756-6166
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Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com www.autobodynews.com | JULY 2012 AUTOBODY NEWS 25
Service, Service, Diagnostic D Diiagnostic and an d Mechanical M eec ch aniccal al NEWS nd Mec Mech ech hanical ca
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Malibu Ecos, More Acura TLs Face Recall
GM has said it is recalling 4,304 of the 2013 Chevrolet Malibu Ecos to reprogram a part that controls the deployment of air bags. Honda Motor Co. said it is recalling 52,615 of the 2007-08 Acura TL vehicles because of fire risks from leaking power steering hoses. GM said no crashes or injuries have been reported due to the problem with the Malibu Eco, but it authorized the recall after it found the problem during a development test in which the vehicle was performing “extreme maneuvers,” according to a GM statement. After hard braking, a module may reset. If that happens during aggressive turning and the vehicle senses a potential rollover, the roof rail air bag may unintentionally deploy, according to the National Highway Traffic Safety Administration. Also, the air bags or seat belt pretensioners may not deploy during a crash, increasing risk of injury. The Malibus were manufactured from Oct. 24, 2011, through March 31. The recall follows a customer satisfaction program GM launched about a month ago on about 10,000
Malibu Ecos that had the module issue, GM spokesman Alan Adler said. In that program, affected customers were sent letters advising them to have their module reprogrammed by a certain date to qualify for a free repair. Dealers also fixed the software issue on many cars before they were sold to the public, Adler said. The 4,304 Malibu Ecos under recall are the remaining vehicles that haven’t had the module reprogrammed, Adler said. Customers will receive letters after June 1 with instructions on how to contact their dealer to have the issue fixed for free. In the Acura TL recall, Honda said the power steering hose may fail, causing fluid to leak onto the hot catalytic converter, the Japanese automaker told NHTSA. In total, Honda has now recalled more than 370,000 vehicles to address the problem in three separate recalls. In November 2007, Honda recalled 43,200 2005-08 Acura RL vehicles to address the same problem. In February 2008, Honda recalled 273,000 2004-08 Acura TLs. The new recall adds the 2008 TL base model and 2007-08 Type-S.
Toyota, Honda and General Motors have confirmed they plan to integrate Siri, Apple Inc.’s voice control technology used on the iPhone, into connectivity systems of upcoming vehicles. Spokespersons from the three companies confirmed the plans to Automotive News after announcements made by Apple at its Worldwide Developers Conference in San Francisco. In essence, vehicles compatible with the Siri service will allow drivers to make calls, dictate text messages, look up directions and use
other Siri functions by plugging their iPhone into a USB cable in the car. Pressing a button on the steering wheel will activate Siri, and drivers can speak commands to their phone hands-free. A new Siri feature, called “Eyes Free,” will help drivers use their iPhones while keeping their eyes on the road by allowing iPhone owners to control more of the device’s functions with Siri with the screen off to mitigate distracted driving. The Eyes Free feature will be released as part of Apple’s latest version of its mobile operating software due out this fall.
The Lexus GX SUV, first introduced in 2003, has always been marketed as a luxury SUV but is based on the rugged body-on-frame platform un-
derpinning more serious off-roaders like the Toyota 4Runner and FJ Cruiser. Despite this, the vehicle has en-
Toyota, Honda and GM Will Use Siri Voice Technology
3rd Generation Lexus GX Could Lose its SUV Look
26 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
July 2012
2012 Chevy Cruze Added to NHTSA Probe The National Highway Traffic Safety Administration has widened its investigation of engine fires in the Chevrolet Cruze to include the 2012 model year. In April, the agency announced it was probing about 177,000 2011 Cruzes after reports of two fires that engulfed and destroyed two vehicles. In documents posted on its Web site this week, NHTSA said it’s now also investigating the 2012 model. GM spokesman Alan Adler said 370,000 vehicles are now included in the investigation. In an April 4 letter to GM, NHTSA requested data from the automaker by May 11. Adler said GM responded to 10 of NHTSA’s 12 questions, and got an extension on the other two. No documentation of GM’s response was available on NHTSA’s website. Though the Cruze hasn’t been recalled, these types of NHTSA investigations can lead to vehicle recalls. There have been no reported injuries or accidents resulting from the fires being investigated, and Adler said GM is also investigating several fires, but wouldn’t comment on the number being investigated. On April 29, according to a complaint to NHTSA, a driver reported
Malibu Eco recall Separately, GM said it is recalling 4,304 Chevrolet Malibu Eco cars sold in the United States to reprogram a module that controls airbag deployments. GM said in what it described as rare cases under extremely aggressive turning, the roof rail airbags in some 2013 model year Malibu Ecos might inflate. It also said in another scenario it described as rarer that the airbags and safety belt pretensioners might not deploy. GM said no crashes or injuries have been reported related to this issue. GM said it discovered the problem during a development test in which one of the cars was performing extreme maneuvers. It said letters will be mailed to car owners on June 1 with instructions to have the reprogramming done at no cost at a dealer.
Chrysler has expanded a recall regarding corrosion on Jeep Liberty SUVs to include the 2006 and 2007 model years after recalling the 2004 and 2005 model years in March, U.S. safety regulators and Chrysler said today. The action brings the total number of Jeep Liberty vehicles recalled in the four model years to about 410,000. Most of those vehicles, about 347,000, are in the United States. The two additional years add 137,176 U.S. vehicles to the recall. The recall affects vehicles in
cold-weather areas that can sustain a rear suspension lower control arm fracture due to excessive conditions because of salt on roads in winter, according to a filing with the U.S. National Highway Transportation Safety Administration. Such a break could lead to loss of vehicle control and a crash, NHTSA said. Chrysler said it was not aware of any injuries or accidents related to the issue. Chrysler will pay to replace rear lower control arms in the affected vehicles.
Chrysler Expands Recall
joyed a reasonable level of sales and in 2010 spawned a second-generation model. For the third-generation of its
that flames burst through the front of a 2012 Cruze while traveling at about 45 miles per hour. GM sold 18,205 Cruzes in April, down 28 percent from the same month last year. It sold 75,288 of the vehicles through the first four months of 2012, down slightly from sales of 75,365 during the same period last year.
GX, Lexus is considering adopting a car-like unibody platform, which would make the GX more a crossover than a true SUV.
Gonzo’s Toolbox
Take it to the Dealer! with Gonzo Weaver
Everyone has a reason why they use a dealer repair shop vs. an independent shop… These are a few of those reasons I’ve run into over my decades of independent service work. Customers come in a wide range of styles. There are my regular customers, occasional customers, price shoppers,referrals, and friends of the family. Some don’t bother to tell me how they happened to be at the shop; maybe they’ve read an advertisement, saw a billboard somewhere, or they’ve checked out one of those websites that evaluate businesses by way of customer responses. Perhaps they’ve heard of the shop through the grapevine, or they might have just driven by to check it out. But I’ve never heard of anyone refer to themselves as a “dealer customer.” It could be there are some differences between what people think of the various different types of repair shops, or what they are used to deal-
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.
ing with. Whatever the case may be, once they are at your front counter you want to try and make them a customer of your own. Then again, do you really want to take on every job that comes in the door? I certainly don’t. There’s times someone will bring in something that I’m not qualified to work on, or it’s something that is so far gone it can’t be taken care of without an exorbitant amount of cash to repair it. Then there are those proverbial “basket cases”, oh yeah... actual “basket cases” dragged in to the service bays. (And “YES” they do come in baskets, crates, and/or boxes. All the nuts, bolts, electrical parts, and components scattered in hap-hazard piles of the owner’s greatest intentions gone wrong.) Of course, there are the strange or unusual customer responses that keep you on your toes. I sometimes stand behind the counter wondering
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what in the world these people are thinking... how am I going to get through the usual monologue in the front office and still have enough sanity left to repair the car? Some of these requests and explanations are just too bizarre to be real. “Hi, I’m here because of my brother-in-law sent me,” (I’m thinking to myself... alright! this is a good start), he said you could fix my car,” the new arrival to the shop tells me. “What seems to be the problem?” I’ll ask. “He changed the “autovalve” and he said you would know what to do about it.” “I’m afraid I don’t know what an “autovalve” is. (So much for a good start...) Could you describe what’s wrong with the car, and then maybe I can sort out what part you’re actually talking about.” “Apparently you’re not as good as my brother-in-law said you were. You should know what one is. Obviously you don’t know how to fix my car then... I’m taking it to the dealer,” the now aggravated customer tells me, “Oh, and don’t worry I’ll tell my brother-in-law about this.” You know, there are times I don’t want to even ask another question, or want to take the time to get to the bottom of some of these wacky explanations. I’d rather see this kind of problem just vanish with the goofy owner and their explanations. If they think they need something done to their autovalve I’m more than happy to let the dealer take care of it. Off you go to the dealer little lady... they’ll love to talk to you, and I’m sure they have plenty of autovalves over there. At times, I pity the poor service writers at the dealerships. Because as it seems to be in these cases, the dealership is primarily the last stop in this long line of relatives with wrenches, repair facilities, and parts store geniuses trying to help out the customer. The service writer really doesn’t have much choice but to deal with them. Let’s face it...... they are the “deal-ership” The phone rings again, the caller tells me, “Well, I don’t know if you
can do this kind of work or not. I probably ought to just take it to the dealership.” “What seems to be the problem, sir?” “It’s my electric window, I think it’s the switch because my window is stuck halfway down. Probably bent a bracket you know.” (Self-inflicted-diagnostics … I can tell...) “Sir, any decent independent shop can handle anything the dealerships can do. A window problem is no big deal. I take it you were referred here?” “Yes, a couple of my friends told me about you.” (Apparently, his friends neglected to tell him that we actually make the repairs too. I suppose he thinks his neighbors just come by the shop and chat about car repair.) I find it rather confusing when a customer calls and tells me their car is at the dealership. They’ll tell me that the problem has already been diagnosed, and then tell me that all their friends recommended that they take their car to my shop for repair... but, instead they are sitting in a service bay at the dealership. After the usual phone introductions they’ll soon get to the real reason for their phone call: “They want $947.53 cents to fix my car... do you think that’s too high?” I guess at this point, I’m supposed to justify the cost or give them some outrageously lower price. I really don’t know how I can do that, when I haven’t even seen the car yet, or even what problems they’re having with it! “You’re there already ma’am. If they have done their job correctly, and diagnosed the car properly then the price is their price.” “They want a diagnostic charge if I take it out of their shop right now.” “Ma’am, you’ll pay another diagnostic charge at the next shop, so I would advise you… since you’re there... let them take care of the problem as they see fit. Unless you feel uncomfortable with their results or diagnosis, I would suggest you let them take care of it.” See Take it to the Dealer, Page 36
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 27
Continued from Cover
Birmingham Reacts
so we certainly have to respect that. We were disappointed they left the program, they were obviously high performers. We continue doing the test, we had more than (those 17 shops) in the market area,” Avery said. Tim Crawford, who has owned and operated Hwy 280 Paint and Body at 19360 Hwy 280 in Birmingham, for 40 years, was one of those shops. He recently dropped State Farm after a long and beneficial relationship, opting to remove his shop from State Farm’s Select Service program than be forced to use the PartsTrader software. “I have been on the State Farm Select Service program since the very beginning, a long time. We’ve had a very good relationship with State Farm,” said Crawford. “But through the years, we have realized that they have started controlling different parts of my business, from labor rates and labor times ... to this new PartsTrader program, which has really taken the last aspect of my business out of my control. At that point, State Farm has total control over my business, and that’s not what I went into business for. When they start dictating things to the point that it takes all of my profit away, I’m gonna have to take a stand and take my business back.” Crawford’s three main objections to the PartsTrader program are 1) being forced to use only the vendors who sign up with PartsTrader, 2) losing parts profits and 3) waiting on parts through the bidding process which could delay jobs getting starting and causing a “clerical nightmare.” According to the ASA fact-finding report released in early June, the time frame for “parts pricing” is set at two hours as a default and can be adjusted to one hour by the repairer, or the repairer can set a custom close time greater than one hour. Pricing remains open for the allotted time, and during this process, shops are unable to execute on the estimate. In addition, “the PartsTrader program would take me from the vendors I normally use, which was going to take my business out of the Birmingham area, and make me use vendors I have no relationship with,” Crawford said, adding that none of the Birmingham vendors he uses opted to sign up with PartsTrader.
The ASA report notes that participation in the Select Service program is a collision shop decision, but that participation in the PartsTrader program is a supplier decision. “Their agreement with us has a provision that they (repair shops) are required to use the tool, and that has been in our agreement for a long time,” said Avery. “We have a tool that we believe meets the need of the customer. Our goal is to have a win-win for everybody, but there could be a repairer who doesn’t feels that way and chooses to leave the Select Service program because they don’t feel it is in their best interest and that is something they need to decide. But our goal is to get information from all the stakeholders, which would include the repairers and the suppliers, to have a win for everybody. The goal is to improve across the board for our shared customer.” Three weeks after dropping State Farm, Crawford says business is booming. “I am encouraged by the amount of work I have not having State Farm. They were probably 50% of my business, but I have not found any reduction in my business by leaving them,” Crawford said. “Of course, my customers came to me for what we do for them, not because I was a State Farm shop. They come because of the type of work we do, our customer service, and the quality of our work. I am not really worried about State Farm sending me work or not.” He added, “I feel that State Farm does not have enough good shops left in Birmingham to handle their business. In the Birmingham area, they lost close to approximately 40% of their quality shops that did close to 70% of their work.” Don Meadows has been the body shop manager for 23 years with Jim Burke Automotive, a new car dealership that sells seven lines and has been in business since 1945. They are located at 517 14th St. North in Birmingham. The high volume dealership does $450,000 a month in business. They aren’t sure yet how much business they’ve lost after being dropped by Select Service due to their refusal to try PartsTrader. According to Meadows, the dealership didn’t want to try the PartsTrader software because they didn’t like the idea of having all parts purchases going through a third-party vendor. “We were told if we did not use PartsTrader, we would be taken off Select Service, and we were the day the
28 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
PartsTrader program started,” Meadows said, adding that their customers are being affected by having to wait one to three days for State Farm to inspect their vehicles for estimates and supplements. “I have called several shops that are using PartsTrader and none have had anything good to say about the program,” Meadows said. He feels State Farm is implementing PartsTrader because “they want complete control of the repair process.” John Fagan, owner of Fagan Collision Repair in Moody, AL., has been in business for 15 years and also opted out of Select Service rather than get on board with PartsTrader. He doesn’t like the idea of having to use the lowest price bid on parts or the fact that State Farm “threw the LKQ (like and kind quality) parts and aftermarket parts into the same mix. It if was just a parts locater for used parts, it might have been OK.” But, mainly, he said, he is concerned about “the uncertainty of the LKQ parts they want you to buy.” He reported he hadn’t lost any business in the first few weeks after dropping State Farm. Donnie Burgett, owner of Donnie’s Paint & Body, which has been in business for 22 years in Trussville, AL.,
also opted to drop out of State Farm’s Select Service rather than use PartsTrader. He feels that if he had gone on the PartsTrader program, he’d be working more than the 10-11 hours a day he was already working handling State Farm clients and claims. The PartsTrader program would bring additional administrative work, less money and a reduction in profits, he said. “I decided to bail out of the program after several years because I didn’t see any benefit for my company or myself in any way whatsoever,” Burgett said. “PartsTrader was going to create discounts and maybe even ill feelings with my vendors because they were going to have to bid on parts and I felt like parts would be coming in from every direction on one job, instead of from one direction. It’s all about discounts for State Farm, and I don’t have a problem with discounts, except when it is going to cost me money. Being on the program would cause me extra work, an extra two hours per claim on my part, to save State Farm money and cost me money and reduce my profits.” (To read the rest of this story, please see www.autobodynews.com.)
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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 29
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.
Al Brodeur’s Auto Body Offers Honesty, Inspires Loyalty with Chasidy Rae Sisk
Al Brodeur’s Auto Body, Inc. in Marlborough, MA, offers their customers peace of mind in knowing that every step of their repair is being handled in a professional manner. The shop facilitates the claim from start to finish as they strive to make the repair process as fluid as possible. According to Molly Brodeur, Chief Operating Officer and daughter of owner Al Brodeur, “Al has always operated an honest shop, and as a result, our customer base is large and very loyal.” Since Al Brodeur opened his shop in 1970 in a small rented space down the street from his current operation,
COO Molly Brodeur with Owner Al Brodeur
he has been very involved with the local auto body associations. He served as Treasurer and Director of the Central Massachusetts Auto Rebuilders Association, which has now merged with AASP-MA, for over 25 years. Molly is currently the Treasurer for AASP-MA as well as the President of the Midstate Chapter of AASP-MA. Molly notes, “Being so involved at the association level has put us in a unique position to always be at the front line and directly impact legislation and regulations that affect our industry every day. In late March 2012, AASP-MA was successful in killing a DRP bill and an anti-fraud bill that were positioned to move out of Committee. Both would have been extremely detrimental to our industry here in Massachusetts.” Beyond their involvement with the collision industry, Al Brodeur’s Auto Body is a member of both the Marlborough Chamber of Commerce and the Rotary Club of Marlborough for over 20 years. They have also sponsored multiple youth sports programs and participated in various community fundraising events. Re-
garding environmental concerns, the motto at Al Brodeur’s Auto Body is borrowed from a Native American proverb: “We do not inherit the Earth from our Ancestors, we borrow it from our Children.” Everyone at Al Brodeur’s Auto Body understands the impact that the collision industry has on the environment, so they strive to reduce that impact as much as possible. Al Brodeur’s Auto Body ensures that their painters are certified sprayers of DuPont advanced waterborne paint repair systems. They also use SATA high volume-low pressure spray gun technology, and their DeVilbiss spray booth is equipped with superior filtration systems rated at 99% efficiency, exceeding ASHRAE and EPA requirements. Additionally, they comply with all EPA regulations regarding how to properly handle hazardous waste by participating in hazardous waste recycling programs, and their recycling efforts extend to include the recycling of used parts, sheet metal and cardboard. The shop uses Spies Hecker paints, and while their customers own a mixture of older and newer model vehicles, they have recently noticed an increase in older model vehicles, 2007 model and older. Due to this, they have also seen more total losses in the past year due to the vehicles’ age and mileage. Luckily, Al Brodeur’s Auto Body rarely has issues with matching paint, even on older vehicles, due to their experience refinish technicians and the sophisticated paint matching systems that they use. Al Brodeur’s Auto Body is housed in a 6,800-square-foot shop with 14 employees. They complete repairs on approximately 90 to 100 cars monthly. In addition to standard lifts, welders, the shop utilizes Car-O-Liner frame equipment and a DeVilbiss Downdraft Spray Booth. In addition, they upgraded their management software in 2010, and it has completely changed the way they operate by enhancing every facet of their business. All of the technicians employed by Al Brodeur’s Auto Body are I-CAR certified platinum, and their refinish technicians are DuPont certified in
30 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
waterborne paint applications. Though direct repair programs are illegal in Massachusetts, Al Brodeur’s Auto Body negotiates repairs with all insur-
Al Brodeur’s Auto Body in Marlborough, MA
ers operating in the state in order to best serve their customers. They sublet towing, storage, paintless dent repair and rentals to other local vendors. In discussing current trends in the collision repair industry, Molly Brodeur notes that it is inspiring to see news about shops who have successfully filed lawsuits against insurers for
short pays by utilizing the Assignment of Rights form. “It’s encouraging to see shops taking advantage of the mechanisms available to be properly reimbursed for repairs.” She also notes that steering continues to be an issue in the Massachusetts market as does the labor rate compensation from insurers as Massachusetts has the lowest reimbursement rate in the country. In regards to the future of this industry, Molly says. “Our industry will continue to strive to meet whatever challenges lie ahead. We are a resilient bunch and will always work hard to rise above any roadblocks. Relationships with customers, insurers and employees will always remain our focus.” Al Brodeur’s Auto Body, Inc. 87 Mill Street Central Marlborough, MA 01752 508-485-1082 www.albrodeur.com
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Mississippi Nissan Plant Starts New Altima Model
The Canton Nissan plant in Mississipi began making the Altima back in 2004, and now its employees will work on the new, fifth-generation model, as the 2013 model year car has begun rolling off the line. The Canton plant, which also builds body-on-frame trucks, has put full priority on the 2013 Altima, building it in three shifts. The new 2013 model year midsize sedan is actually based on the old model’s platform, but it has been heavily restyled and modified. The base 2013 Altima comes with a 2.5-liter 182hp inline-four, starting at $21,500 and the top-of-the line model gets a 3.5-liter V6, in SL trim, it will grab just over $30,000. “Today’s successful start of production of the Nissan Altima, our top-selling vehicle, only can happen because of the support of our dedicated workforce in Canton,” said Bill Krueger, vice chairman, Nissan Americas. “The Canton team builds among the highest-quality vehicles in the industry, and we are looking forward to bringing their production expertise to the next generation of this award-winning car.”
Honda to Add Acura MDX to Alabama Plant for Sales
Honda is adding the Acura MDX sport utility to the production lineup in Alabama next year, and the move will open up a new export market for the Lincoln plant’s products. Some of the MDX vehicles made at the plant will be shipped to China, said Tom Shoupe, head of Honda’s Alabama operations. A small percentage of the plant’s vehicles, now Odyssey minivans, Pilot SUVs and Ridgeline pickups, are exported each year to markets including the Middle East, South America and Central America. Pilots are also shipped to Russia. The MDX, now produced at a Honda plant in Canada, has been exported to China for several years in small numbers, so that will continue after the production switch. Last year, 485 MDX vehicles were shipped to China, Honda spokesman Ed Miller said. The SUV is sold in the United States. The MDX move will give Honda more room in Canada to build the popular CR-V SUV. Acura is Honda’s luxury vehicle division, and the MDX will be the first Acura product built in Alabama.
Geico Settles Lawsuit with Gunder’s
Gunder’s Auto Center announced that GEICO has elected to settle a lawsuit Gunder’s filed on behalf of their customer rather than concede to deposition of their claims representatives. Upon deeming the customer’s vehicle a total loss and disputing Gunder’s billing for incurred charges (including a parts return fee), GEICO elected to post what is referred to as a “bond” through the county courts in the amount of Gunder’s billing ($972), which allowed GEICO to then take possession of the customer’s vehicle. As required, GEICO provided full payment of the disputed amount to the Clerk of Courts and was issued a “bond,” which legally required Gunder’s Auto Center to relinquish the vehicle along with their possessory lien on that vehicle. Gunder’s, according to stipulations in the bond statutes, was then confronted with having to file a lawsuit against the vehicle owner as the only means to exercise their right of recovery. If Gunder’s failed to file a lawsuit within 60 days, they would have then forfeited their right of collection, and the monies would have been refunded to GEICO, with Gunder’s receiving nothing. Ray Gunder, owner of Gunder’s, proceeded to file the lawsuit
against his customer, who he says understood the issues and did not dispute any portion of their billing. Gunder also claims that the customer was not aware of the bonding of his vehicle, claiming he would testify that he had not even been aware of GEICO taking possession of his vehicle until it had been removed. In the process of arranging the depositions of GEICO’s claims manager and the field claims rep who bonded the vehicle, GEICO elected to avoid the depositions by paying Gunder’s their full billing as well as all legal fees and costs of $2,621.09 for a total amount of $3,593.09. “I surely hope this sets precedence that handling returned parts, with all the administrative efforts, costs and assumed liabilities involved, is not merely a ‘cost of doing business,’” said Ray Gunder. “As I have learned from my good friend and business consultant Barrett Smith of Auto Damage Experts, performing such activities for free could very well be ‘the cost of going out of business.’ After setting this legal precedence, I hope to resume a respectful relationship with GEICO for the benefit of our mutual customers and our respective companies.”
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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 31
Continued from Page 17
BMW CCRC
paint market penetration, the size of the collision center staff, and the CORA Job Classification of the associates at the collision center. Training requirements are reviewed and adjusted on an annual basis. As the collision repair facility’s staff and market penetration grow, so will their training requirements.
Collision Repair Facility Requirements The physical location of the CCRC must be within the BMW Center’s PMA.
Facility Criteria In support of the BMW brand, each CCRC may use BMW NA approved CCRC signage only if the facility consistently complies with the BMW NA recommended BMW facility guidelines. This applies whether the facility is on or off site in relation to approved certified center’s location.
Usage of Original BMW Parts Criteria The CCRC Program prohibits the installation of imitation, aftermarket, non-BMW remanufactured, and/or salvage (allegedly Like Kind and Quality) parts, including glass, on any year or model BMW passenger car or SAV. Failure to comply with this requirement qualifies for automatic decertification from the CCRC Program for at least the remainder of the calendar year in which these non-approved parts were installed.
Tools and Equipment A CCRC is required to have an on-site location for all approved tools and equipment necessary to properly repair BMW vehicles. The BMW approved tools, equipment, and materials are listed in Appendix C. Required tools, equipment, and materials are subject to change based on technology, required new tools, and special tool changes relating to new models.
2011 BMW CCRC Training Determining the number of technicians and estimators that must complete training to meet CCRC Requirements: ● 100% of the collision center staff dedicated to BMW repairs based on the technician’s Dealer Enrollment Management System (DEMS) job classification will be required to meet
the training standards established by BMW NA. The total number of dedicated and trained BMW technicians requiring training will be adjusted to take into account the CCRC’s BMW repair volume (in dollars) as a percent of its total repair volume. This same formula will also be taken into account for body shop estimators.
● Only those courses completed by associates or technicians who are regularly involved as part of their job description with physically performing body and paint repairs to BMW vehicles will count towards meeting the skill level requirements ● Technical training courses completed by managers, production coordinators, advisors, or other support staff members will not count towards certification requirements. ● Combination technicians will be treated as both body and paint technicians. ● Training completed by non-productive or support staff will not count towards certification requirements. Technician training course requirements are based on CORA job titles, which will be used to determine training requirements. It is imperative, then, that management lists the correct CORA job titles for associates and that Interactive Career Pathways (ICP)/ Dealer Enrollment Management System (DEMS) is updated on a regular basis. Please consult with your Regional Aftersales Development Manager (RADM) for more guidance. Improperly classifying technicians can severely impact a CCRC’s training requirements. It also affects an associate’s ability to log into CenterNet and DCSnet to research and obtain the most current repair information. It is in the CCRC’s best interest to regularly review and update its ICP/RUA staff roster and make sure that associates have appropriate access to the BMW website. The CCRC’s training plan will be developed each year. A CCRC must then complete its training plan during the same calendar year (no later than December 31st). Adjustments to training plans may occur during the calendar year due to newly introduced training programs and/or changes to the CCRC’s technician count. Newly certified centers will receive a training plan at the on-site certification visit that will be pro-rated based on their certification date. A
32 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
center’s progress towards completing their training plan is monitored regularly.
2011 BMW CCRC Program Tool, Equipment, and Materials Requirements Information Technology Requirements High speed internet service CenterNet access ICP administrative access ISIS/ISTA access on all terminals Separate computer terminal(s) for ISIS/ISTA access with printer located in or convenient to technicians that work in the metal shop Computerized estimating system Frame/Unibody Alignment and Dimensioning System Any one of the following systems: Car Bench with dedicated or universal fixtures Car-O-Liner bench with Car-OTronic/Vision electronic measuring system with either EVO 1,2,3 or CarO-Flex universal fixture system, B66 or B76-77 side supports Celette bench with dedicated fixtures or NAJA electronic measuring system along with positioning tool NA.1000 Welding and Riveting Equipment
Any one of the following Compression Resistance Spot Welders: Car-O-Liner CR600 Celette MIDIspot QSVM 9000 Elektron MI100 Control MIDIspot QSVM 1200 T
Paint Shop Requirements Refinish Materials New CCRCs agree to purchase and use ColorSystem products for all repairs and refinish work performed on BMW Group vehicles at its collision repair location. As a reminder, any CCRC enrolled in the CCRC Program before October 10, 2007 has the opportunity to utilize Glasurit, Spies Hecker, or Standox in lieu of ColorSystem until their pre-existing paint contracts dated before October 10, 2007 expire. Once qualifying pre-existing paint contracts have expired, conversion to ColorSystem must then occur to remain a part of the CCRC Program.
Thanks to Kenny Tran, BMW of North America, LLC, Body & Paint Technical Business Assistant and to Kevin Miller, BMW Concord Collision Center Manager for information herein.
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Continued from Cover
Mississippi Reacts
ing the State Farm Proposed Parts Procurement Program within its Select Service Program changed all that. More than 100 MCRA members, as well as Mississippi Attorney General Jim Hood and John Wells of the Mississippi Department of Insurance, came together in Pearl, Miss. to hear what body shop owners from Birmingham, AL had to say about the PartsTrader program. Birmingham is one of the four national test markets where the PartsTrader program is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot. The Mississippi Collision Repair Association invited auto body and repair shop owners from Birmingham to come to their meeting to discuss their experiences with PartsTrader. “We wanted to know what the
gram is what we read in the trade publications and the short video produced by State Farm. My personal interpretation of the video leaves me knowing the program is real and they plan to roll it out nationwide. The shops will have no choice but to participate in PartsTrader if they remain on the DRP and our choice of parts suppliers will be limited and the profit on parts will definitely go down.” Even though he hasn’t tried it, Mosley declared he isn’t interested in the electronic parts ordering application program and his answer to State Farm will be a resounding “NO!” if PartsTrader is a requirement to continue with the Select Service program. Mosley wants to stay with the Select Service program beJohn Mosley addressing the Mississippi Collision Repair cause it helps shops by savAssociation ing time waiting on association. appraisers and allows the shop to de“No one from State Farm has termine what type of part and which called, visited or made any attempt to supplier would serve to properly reexplain anything about the Part- pair the vehicle in the least amount of sTrader program to our shops or to our time. However, he is willing to give local industry,” Mosley said. “The up Select Service if it becomes tied to only knowledge we have of this pro- PartsTrader. program is and what it will do to our industry, and the Birmingham group had nothing positive to say about the PartsTrader program,” said John Mosley, who owns and operates Clinton Body Shop Inc. and Clinton Body Shop of Richland in Central Mississippi. Mosley is a past president and one of the founding members of the
Mosley is one of several Mississippi auto body shop owners who opposes the PartsTrader program because, he says, it forces shops to wait for the software program to gather bids on parts. Supplements or a big repair job could create an administrative nightmare, Mosley said, adding that body shops would need to hire an additional employee to sit at the computer all day monitoring the bid process. Bill Fowler, who owns Bill Fowler’s Bodyworks in Southaven, Miss., couldn’t agree more. “The concept that adding additional steps and wait times will increase efficiency and cost effectiveness flies in the face of logic,” he said. “The fact that neither State Farm nor PartsTrader executives can offer any tangible evidence that it does expedite the process, but instead answer direct questions with halftruths, evasiveness and outright misrepresentations gives great cause for concern and raises the suspicion that there are underlying ulterior motives to reduce profitability for collision repair shops. It is insulting for State Farm to suggest that shop owners/operators don’t have the good sense to See Mississippi Reacts, Page 37
International Body Shop Meeting (IBIS) in Spain Addresses Misleading KPIs, Winning Relationships
The recent International Bodyshop Industry Symposium (IBIS) saw 371 delegates from around the world gather in Barcelona, Spain, for a threeday global summit on the hottest industry topics. The theme was winning relationships, pulling together the twoday conference program of interactive presentations, interviews and head-tohead sessions. Forging lasting, meaningful and mutually profitable relationships was top of the agenda this year, as was avoiding divorce, both of which everyone agreed made financial sense. Kicking off day one was keynote speaker, Kelly McDonald, president of McDonald Marketing, who spoke about achieving winning relationships. Kelly’s overview of the ‘dramatic changes in the way we do business,’ included insights into doing business in the ‘relationship era’ where connections to brands and companies is key to success. Kelly identified eight characteristics of winning relationships: ‘authenticity, value alignment, collaboration, trust, responsibility, focus, nurturing and profitability’. “Businesses need to earn trust,” said Kelly, “and employees are ambassadors of trust. It’s created between
people, not companies.” Andrew Marsh from Auto Industry Consulting provided a technical perspective and futurologist-style insight into the industry over the next 10 years. His message to IBIS delegates was “build for a global market,” illustrated by examples of working alliances between Renault/Nissan, Fiat/Chrysler and Ford/Volvo, plus a heads-up on Volkswagen’s accident repair-friendly MQB platform. “Collaboration is the future,” said Marsh. “There’s an opportunity for body shops to acquire other businesses, especially electronic companies. Are you ready?” he asked. For the final session of IBIS 2012, George Avery of State Farm welcomed one of his repairers, Mike LeVasseur from Keenan Auto Body, for a highly honest overview of insurer/repairer relations. Mike is just one of State Farm’s 1,003 approved repairers, yet his influence and feedback is clearly valued. Attendees took home two key messages from this presentation. First, KPIs are misleading when taken in isolation. Second, the most important thing to do in any business relationship is to listen. For more on IBIS 2012, see ibisworldwide.com.
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 33
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Great Consumer Bill
“This bill doesn’t benefit consumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. In a letter to policy holders, Robert A. DiMuccio, chairman and CEO of Amica Mutual Insurance, said the legislation that just passed “allows shops to set inflated prices for labor and repairs and [use] the threat of lawsuits to charge these exorbitant repair costs.” Until now, if a shop felt that it had been unfairly reimbursed, it could take the insurer to court, but only using an assignment of proceeds case where the shop would legally seek reimbursement representing the consumer. “This is a great consumer bill,” said Jina Petrarca-Karampetsos, who testified in support of the measure prior to the Senate vote. “This is a great bill. It’s a fair bill. This doesn’t require insurers to set a rate for every shop. This just says to every shop, ‘Hey, if you feel you are not getting a fair rate, then go ahead and prove your position in court.’” PCI New England Vice President and Regional Manager Frank O’Brien was actively posting messages on Twitter as the Senate Judiciary Committee debated the bill on June 12. O’Brien said the bill was bad for consumers and called the measure “the worst auto body bill ever.” He said insurers described the bill as “unprecedented” and the “most one-sided they’ve ever seen.” “This bill doesn’t benefit con-
sumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. AIA believes H.B. 7782A allows for nationally unprecedented private rights of action for auto body shops directly against insurers and is "poor public policy." “No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third-party payers under threat of litigation,” said Gary Henning, AIA Northeast region vice president. “This legislation represents poor public policy which could lead to an explosion of litigation. It should be vetoed when it reaches the governor’s desk.” AIA says that Rhode Island is one of the most expensive states in the nation for auto body repairs. Currently, drivers pay the sixth highest collision insurance premiums in the nation due in large part to higher-than-average claim costs, including labor costs which exceed the national average by 26.7 percent. The bill also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The bill passed the Senate 24-11 and is now on the Governor’s desk, provides access to small claims court for shops who feel they must sue to be fairly reimbursed. Current law would require a shop to take these types of issues before a Superior or District Court, with proper legal representation. “If this bill passes, a shop can represent themselves in small claims court for a filing fee of $80,” said PetrarcaKarampetsos, speaking on behalf of the Auto Body Association of Rhode Is-
land (ABARI). The measure, originally sponsored by ABARI, also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The insurers testifying against the bill argued that the bill forces them to accept whatever a shop demands under the threat of being sued, but that is not so, according to Petrarca-Karampetsos. “This isn’t a name your price bill, this is a bill that requires a shop to prove before a court that their price is a fair one, that their charges are reasonable.” “The bill doesn’t say that insurers have to reach an agreement. It just says that they have to negotiate in good faith, and if you can’t reach an agreement, the insurer may pay whatever it determines. If the shop doesn’t feel that’s fair, the burden is on them to prove it in court.” “This actually removes a lot of the hassle and delay for consumers,” Petrarca-Karampetsos said. “If the shop and insurer don’t agree, this bill says to the insurer, ‘Just pay the claim on your number, whatever number you think is fair, write the check, leave it with the shop, and let them worry about it.’ This eliminates all the delays of the past. But perhaps more importantly, the customer is not involved. It leaves them out of it.” “This law is a simple, fair solution. It doesn’t require regulation. It gives insurers a chance to challenge everything we say, and it does so without a sweeping mandate,” says Petrarca-Karampetsos. But that isn’t the only new law this bill would create. The measure also makes changes to how total losses are handled in Rhode Island. Unless Governor Lin-
paid $782 per car. If following years also saw a similar 26.5 percent increase in costs, drivers would have had to pay even higher average vehicle damage premiums of $989 and $1,252 per car in 2010 and 2011, respectively. “Residents in Rhode Island already pay among the highest auto repair bills in the nation and unless something is done, the rapid growth is likely to continue,” said Frank O’Brien, PCI vice president. “We are urging Gov. Chafee to take the first step in addressing these out of control costs by vetoing HB 7782 A. Without him taking action this cost trend could
become even worse.” House Bill 7782 A, which passed in the final hours of the 2012 legislative session, could make it more expensive for vehicles to be repaired following an accident by forcing more cars with severe damage to be repaired instead of totaled. In addition it would allow body shops to charge an inflated amount for repairs and force insurance companies to pay these prices or face the possibility of a lawsuit. “In the midst of a struggling economy and not satisfied with having some of the fastest increasing costs in the country, the Auto Body
coln Chafee vetoes the bill, insurers will no longer be permitted to declare a vehicle a total loss if the cost to restore the vehicle to pre-accident condition is below 75 percent of the fair market value of the car. “This part of the bill is a real win for consumers,” said Petrarca-Karampetsos. “Today, it doesn’t matter how much a customer might beg and plead with their insurer to fix their car, if they don’t want it totaled. If their insurer got a high bid on the salvage, and can save money even by totaling their car at 50 percent or less, they total the car, no matter what their customer wants.” In addition, the bill sets forth a new definition of fair market value in the case of total losses. According to the bill, “Fair market value” means the retail value of a motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values commonly used by the automotive industry to establish values of motor vehicles. The new definition, according to Petrarca-Karampetsos, would preclude the use of products developed exclusively for the insurance industry, such as the Audatex, CCC, and Mitchell systems, and require the use of guides like the NADA book used by car dealers. The Property Casualty Insurers Association of America (PCI) and the American Insurance Association (AIA) are both opposed to the bill. AIA, in a press release on June 13, described the bill as “reckless” and called on Governor Chafee to veto the measure. The association said the law would unleash a flood of lawsuits against insurance companies. The bill would take effect upon passage. Download the text of the legislation at autobodynews.com.
PCI Claims ABARI Legislation Has Increased Repair Costs Twice National Avg.
According the Property Casualty Insurers Association of America (PCI), auto body repair costs in Rhode Island have skyrocketed since 2003 and if legislation (HB 7782A) passed by the state Legislature is signed into law by Governor Lincoln Chafee, consumers may face the prospects of even higher costs, Based on an analysis of the provisions in HB 7782A, had it passed in 2008 the result would have been a 26.5 percent increase in the vehicle damage insurance premium in 2009. Instead of Rhode Island drivers paying $618 per car for vehicle damage coverage in 2009, they would have
34 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
Association of Rhode Island (ABARI) continues to push a legislative agenda that drives up the costs of auto body repair,” said O’Brien. “Since 2003 ABARI sponsored legislation has caused the average repair cost to accelerate at a rate more than twice the national average.” In 2011, Rhode Island had the 4th highest overall labor costs in the nation with the average total labor cost in this state being 26.7 percent higher than the countrywide average. Additionally, the high cost of auto body repairs is one of the main reasons Rhode Islanders pay among the highest rates in the nation for auto insurance.
Hey Toby! Matrix Wand is a Game Changer with Toby Chess
Question: How would you like to be able to measure body structure, vehicle sub-frame movement, damaged suspension components and used BOF frame for damage or damaged parts in 20 minutes with a printout and the time of tear down? OK, how about the added advantage of doing it anywhere in the shop? We’re not using any frame-measuring equipment, by the way. Let’s throw in another parameter and do all of these tasks and more with a camera. You say impossible? Up until recently you’d be right but it’s not only possible, it’s here. It’s called the Matrix Wand and it’s a game changer. I was invited to a presentation at the April CIC meeting in Oklahoma City by Jan Srack on the Matrix Wand. It was an interesting presentation, but being the skeptical person that I am, I really questioned this technology. Gary Wano, Jr., owner of GW & Son Collision in Oklahoma
Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@yahoo.com
City, arranged for a hands on demo. He had a 2009 BMW 3 Series BMW that took a high hit. Both grilles, headlamps, upper portion of the front bumper and hood were damaged. The vehicle nose-dived under a bumper at less than 10 miles per hour. We inspected the bumper absorber and reinforcement for damage and there wasn’t any. We all concluded that the damage was isolated to the upper structure and there was no lower structural damage. Rob Bailey (from Matrix) took a picture and imported it into his computer and 10 minutes later his results showed that the left lower rail had a sway out 5 mm and sag down of 6 mm. Yeah, that’s what the picture stated, but did the rail move? Gary placed the vehicle on a Celette Bench the next day, and sure enough the rail had moved. Pretty impressive, but I still was not convinced, so I asked if they were doing any other presentations and I was invited to their
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office in Kansas. I spent two days with Rob Bailey, Tom Srack and Ron Chiles (national sales manager) measuring a number of cars. One of the vehicles was a 2010 Ford Escape. We found that the core support was asymmetrical. In other words, the driver’s side of the upper tie bar is 10 mm forward of the passenger’s side. Mitchell data says that length of the upper tie bar is the same. Who was right? I check with Chief and their measurement data also had 10 mm difference on the upper tie bar. I think that Mitchell better re-measure the vehicle and change their date. I told Jan that I would write an article on the equipment, but I would have to use it by myself to validate their claims of ease and accuracy. She loaned me a unit and I took it to Hawaii last month (I conducted a welding workshop and spoke to the Hawaiian Autobody Association) to check it out. What follows is what happened. Monday, the first vehicle I measured was a 2011 Honda Accord with damage to the left rail and left upper reinforcement area. The vehicle was on Global Bench System with the jigs in place.
The left rail was 8 mm back (circle).
The left rail had a sway over 25 mm and sag of 6 mm.
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More damage noted by the measuring system. I took a picture with the matrix system and this is what I found (see next page). I am going to use points 5/6, 9/10, and 13/14 on the distance table. Point 6-13 is 1237 mm and point 5-14 is 1212 mm. Point 5-10 is 1076 mm and Point 6-9 is 1080 mm. You can go to Mitchell data and verify any point-toSee Matrix Wand, Page 36
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 35
Continued from Page 35
Matrix Wand
point measurements and compare with the vehicle being photographed. When I went into the XYZ comparison, I found that the length was 8mm short, height was 5 mm down and width had moved 25mm and this was done with a picture. Dale Matsumoto, the owner of Autobody Hawaii, timed me and it took
me 20 minutes from the time I took the picture until I gave him a print out. The vehicle was pulled and here are the pictures: As you can see, the vehicle has been returned to its correct width, length and height. I proceeded to take another ‘after picture’ and measure. I am going to use points 13-14, 56 and 7-8. Points 13-8 is 1225 mm and points 14-7 is 1224 mm. Point 13-6 is 1077 and points 14-5 are 1076 mm. To verify that these measurements are accurate, I measured points 13-14 with
a tram gauge and found the distance to be 1026 mm. I went into Mitchell and their measurement was 1026 mm. Looking at the distance table in the picture, it read 1026 mm. All I can say is pretty remarkable. The only way that you can appreciate this revolutionary piece of equipment is to see it in operation at your shop. Either call me at 310-995-7909 or email me at tcspeedster@yahoo.com and I will set up a demo for you, either personally or through the company. You will be amazed!
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Continued from Page 27
Take it to the Dealer
“I didn’t know where else to take it... but when I talked to my neighbors they told me about your shop,” the caller said. How about asking around first? You might even learn a little something about your neighbors; hey they’re probably quite friendly; maybe you’ll actually learn all of their kid’s names, too. So what’s the problem between the independent and dealer repair shops? It could be from previous dealings in the past, and the customer didn’t like the results. It could be size of the shop or the location... the real reasons are hard to pin down. I’m not
knocking the quality of work performed at a dealer repair shop, no... quite the opposite. I would say I’ve also seen an increase in the quality of the independent shops in my area as well. There’s fewer wrench slinging grease monkeys out there than in years past. It really takes a different type of “mechanic” than it did even ten or twenty years ago, and that’s not just for the independent shops... that goes for the dealer technicians as well. Locate a shop you like, find a technician who you feel comfortable with. If your search ends up with that individual at an independent shop… that’s fantastic! If you can’t find the service you’re happy with anywhere except at the dealership… well then, there’s only one thing to do… take it to the dealer.
36 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
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Seattle Auto Body Repair Students Give “Billy-the-Kid” Hydroplane a Makeover Students in South Seattle Community College’s Automotive Collision Repair program will have the opportunity to see their work making waves in the waters of Lake Washington this summer, after they finish their makeover of the Schumacher Racing unlimited hydroplane. The No. 37 hydroplane currently housed at the college in West Seattle is owned by legendary Billy Schumacher (“Billy the Kid”), the former unlimited champion driver who won 17 races from 1967-1976, and is perhaps best known for his unprecedented string of wins with the Miss Bardahl team. Schumacher Racing pays a shop fee and materials costs for the project. The newly-painted and refinished boat will carry the South Seattle Com-
Continued from Page 33
Mississippi Reacts
procure parts in an expeditious manner and they have a better way that involves foisting considerably more administrative time onto parts suppliers and shop owners, with no cost or consequence to themselves. Regarding State Farm’s real motivation in demanding that this program be implemented—I believe insurance
munity College name and logo on its side, as it competes throughout the U.S. and in Qatar during the 2012 racing season.
According to instructor Steve Ford, the project couldn’t have come at a better time. His spring quarter cur-
riculum focuses on painting and refinishing, and he has grouped students into three teams that work on fabrication, prep, and paint. Their assignments all serve as final performance tests on problem solving and critical skills. “The beauty is that this gives students the chance to work on something other than fixing fenders on a car, and shows them there’s more variety in the field,” he explained. “It also gives everyone the chance to be involved in some aspect of the project.” Long-time racer Schumacher said he is delighted to be able to provide a new medium for the South Seattle Community College students to paint, noting, “This will be a good opportunity for them to see how much team
companies view shop profits as money they left on the table. They won’t be satisfied until they have it all,” Fowler said. Fowler said he won’t participate in the program either. “I think this PartsTrader debacle has caused many a shop owner to drag out the Select Service agreement they signed and revisit just exactly all the things they agreed to,” said Fowler. “They are coming to a collective real-
ization that all the language, terms and conditions contained in that agreement aren’t just words to fill space. Each and every one of those conditions will eventually come to fruition and many are reconsidering if it is worth it. As far as me giving the program a try, I have been quoted as saying, ‘If you put a s#!t sandwich in front of me, I don’t have to take a bite to tell you I don’t like it.’ So, no, there is no chance I will participate in the
work it takes to paint such a large race boat.” The students were given direction, but have had to work and decide as a team how to best accomplish the tasks. One group has fabricated metal stands, braces, and brackets to support and hold many of the individual parts of the hydroplane that have to be painted. Another group has been repairing, sanding, cleaning, masking and painting the individual parts for the hydroplane. The third group, which includes advanced students who graduating this quarter, is responsible for spraying three color coats on the 14-ft by 31-ft hydroplane.
program, either voluntarily or involuntarily.” Mosley also takes issue with the State Farm video released in May. “The State Farm video states this program will increase efficiency in the repair process. My belief is it will decrease efficiency while enabling State Farm to keep more money out of the repair by taking a share of the parts profits. This is a very deceitful act to See Mississippi Reacts, Page 45
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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 37
Hail Damage Claims Prove Value of Comprehensive Insurance Coverage A recent analysis from the Highway Loss Data Institute (HLDI) showed that the frequency of hail-related insurance claim payments rose in 2011 compared with each of the preceding three years, highlighting the importance of comprehensive coverage in a wide range of areas in the U.S. and the potential destructiveness of hailstorms, according to Online Auto Insurance. A total of $797 million in hail-related claim payments were made in 2011, the highest of the past four years. Claim payments totaled $536 million in 2010, $527 million in 2009 and $471 million in 2008. Payments for hail-related car damage account for “a sizable portion” of all comprehensive coverage losses, according to HLDI. The analysis also identified locations that experienced severe hail incurring the highest dollar amounts in claim damage, finding that those storms aren’t exclusive to one place but that when they hit, they can hit hard. One of the most expensive days related to hail damage claims, according to the four-year analysis, was on March 25, 2009, when hailstorms struck Texas and Louisiana. During that storm, Texas’ Williamson and Travis counties produced about 22,000
claims and $81 million in total payments. Policyholders in those areas seeking financial protection can search for Texas car insurance and purchase comprehensive coverage that covers weather-related damage. In fact, policyholders in any area with possible hail may want to consider getting the optional form of coverage so they are not caught unprotected when the unpredictable disasters strike. The HLDI analysis found that, from 2008 to 2011, South Dakota, Oklahoma, Wyoming, Kansas and Nebraska had some of the highest frequencies of hail-related claims. A single hail-involved event can have wide impact. April 9 was the day with the highest number of hail-related insurance claims and payments in 2011, according to the analysis, which found that hailstorms that day raked counties across seven states, including South Carolina, North Carolina, Tennessee, West Virginia and Virginia. The county racking up the highest number of claims was South Carolina’s York County, which saw 6,000 claims and $18 million in payments from hail that day. States that were in the top 10 in claim frequency each of the past four years were South Dakota, Nebraska
and Oklahoma. Recent inclement weather brought softball-sized hail to Oklahoma on May 29, 2012 and caused widespread damage, according to media reports. On the other hand, Alaska, Hawaii, Idaho and Washington have shown consistently low numbers of hail-related claims, according to HLDI. Comprehensive coverage is optional, but is the only type that covers weather-related damages. About 75 percent of policies written by insurers included comprehensive coverage in 2009, according to data from the National Association of Insurance Commissioners (NAIC). NAIC data also show that in 2009 the average premium for comprehensive coverage was about $130. Premiums vary depending on several factors including the vehicle covered and deductible amount. Consumers can raise their deductible to reduce coverage costs if comprehensive coverage's price tag is too high for them, although those consumers subsequently pay larger portions of the claims they file. According to one industry group, raising a deductible from $200 to $500 can cut coverage costs by 15 to 30 percent.
Florida Shop Owner Arrested for Impersonating Adjuster A Florida body shop owner was charged with impersonating an insurance adjuster for three carriers at accident scenes to generate more business for his auto body shop, police say. Vincenzo Gurrera, 43, of Boynton Beach, FL, became the subject of an investigation after numerous complaints were filed against his shop, Collision World, at 610 Industrial Ave, according to the Palm Beach County sheriff’s office and the Sun Sentinel newspaper. Between August 2011 and April, Gurrera allegedly impersonated an adjuster from GEICO, Liberty Mutual or State Farm, giving specific directions to people to take their cars to his shop for repairs. It would often Vincenzo Gurrera take weeks for the companies to find out about Gurrera’s transaction, the sheriff’s office said. The routine allegedly began in
August 2011 and continued to April of this year. Those involved in the crashes told investigators they signed Gurrera’s release forms because they thought Gurrera was a “legitimate insurance representative.” Each victim identified Gurrera in a photo line-up, authorities said. Detectives received four sworn affidavits from the three insurance companies, which stated Gurrera does not currently work, and has never worked, as an insurance adjuster for their companies. The Florida Department of Financial Services confirmed to investigators that Gurrera was not licensed. Anyone who suspects they are being lured into an insurance scam should call the Department of Financial Services at 877-693-5236. According to investigators, Gurrera was possibly receiving accident information from crash scenes and then filing claims based on that information. In Florida, however, accident reports are not released for 60 days after the crash.
38 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
Mitchell AutocheX Celebrates Top-Performing Shops
Mitchell honored collision repair facilities from throughout the U.S. and Canada with the 10th annual AutocheX(TM) Premier Achiever Awards, hosted "virtually" for the first time on the exclusive Premier Achiever Award website. The Premier Achiever Awards recognize topperforming auto body repair shops throughout the U.S. and Canada, celebrating exceptional customer service and satisfaction achievements. The class of 2011 Premier Achievers includes top-performing collision repair facilities of all sizes across the U.S. and Canada. In an industry of nearly 50,000 North American shops, these winning shops qualified among the 400 exclusive Premier Achiever Award recipients. Since the award program was launched in 2002, AutocheX has presented over 3,000 Premier Achiever Awards to industry-leading collision repair facilities. The award is based on customer satisfaction scores as measured by AutocheX, either independently or as part of an insurancesponsored repair program. This year, participating insurance programs included seven of the top 25 carriers in North America.
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DuPont Unveils New No. 24 Chevrolet Paint Scheme for 20th by Chasidy Sisk
Four-time NASCAR Cup Series champion Jeff Gordon helped DuPont unveil a new 20th Anniversary paint scheme on his No. 24 DuPont Chevrolet at the headquarters of DuPont Performance Coatings during the 2012 DuPont NASCAR Day celebration.
Jeff Gordon addresses the event
Gordon, a NASCAR legend, will drive the new Hot Hues™ Cosmic Dust Silver Metallic No. 24 DuPont Chevrolet in the season finale at the Homestead-Miami Speedway in Florida this November marking his famous long-standing partnership with DuPont. Gordon’s historic NASCAR Cup
Series career started 20 years ago at Atlanta Motor Speedway as the young driver burst onto the raciang scene in the rainbow-colored Hendrick Motorsports No. 24 DuPont Chevrolet. The following season, Gordon started to take the motorsports world by storm. Now, 20 years later with four championships and 85 career victories under his belt, Gordon will race the commemorative No. 24 DuPont Chevrolet only one time at the last race of the 2012 season. Gordon, Hendrick Motorsports and DuPont are celebrating their 20th full season together - the longest current running driver/owner/sponsor partnership in NASCAR. “I’m very fortunate to have an incredible sponsor like DuPont that has invested so much in me and this No. 24 Hendrick Motorsports team. To stick with one driver and one team and to still be here with us today celebrating our 20th full season, is really incredible,” said Gordon. DuPont Performance Coatings products have been a constant during the storied career of Gordon and Hendrick Motorsports. The new paint
as DuPont™, Kevlar®, Nomex®, Teflon® and Tyvek®, took a chance on a young, unproven rookie driver to showcase its automotive finishes in brilliant fashion. Over 20 years of sponsorship, Gordon has been recognized by DuPont as a valuable corporate asset and spokesman. “Jeff Gordon has been the ideal ambassador for the DuPont brand for nearly two decades,” said Scott Coleman, chief marketing and sales officer for DuPont. “He is a consummate professional and a true champion both on and off the track.” Gordon has his sights set on one thing when racing the 20th Anniversary paint scheme on the No. 24 Chevrolet later this First Look at 20th Anniversary Car to Commemorate year – winning. NASCAR’s Longest Running Sponsor Partnership “I’m looking forward to said John McCool, president of DuPont hopefully taking this special DuPont Performance Coatings. “Twenty years 20 Years paint scheme to Victory Lane is a unique relationship in NASCAR in November to thank all of the amazand it shows that the business of racing ing DuPont employees and customers has been good business for DuPont and who I’ve come to know like family our customers.” and who have supported me loyally DuPont, a global Fortune 500 over the past two decades,” continued company best known for brands such Gordon.
scheme uses the popular DuPont™ ChromaPremier® Pro high performance paint finishes and was designed by NASCAR’s first officially licensed artist Sam Bass. “We are proud to have our DuPont™ ChromaPremier® Pro paint on the No. 24 DuPont Chevrolet with one of NASCAR’s all-time greats,”
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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 39
Disruption Became the New Normal in 2011 by Susanna E. Gotsch, Director, Industry Analyst CCC Information Services Inc.
The breathtaking speed of advancement in consumer electronics has become the new baseline for companies in terms of speed to market, price, and desirability of product. The most recent recession still drags the global economy, and continues to make consumers acutely aware of their finances, and the danger of living with too much debt. Consumers have become increasingly sensitive not only to price, but also to each individual product or service’s share of wallet. Technology such as smart phones, tablets, and social media has given individuals the ability to have their voice heard loud and clear. The channels for reaching and interacting with consumers have changed. It becomes increasingly difficult for businesses to remain relevant, to get their message heard, and to get the consumer to pay them any attention. Companies must also embrace the new disruptive paradigm where competition will emerge from outside their historic range of competitors. Take for example, Amazon’s emergence as one of the largest providers of cloud computing, and the disruption Apple’s iPhone created in the mobile phone market. Companies should be taking queue from recognized leaders in the consumer products and services area, but also be aware of where start-ups are focusing their efforts. Significant shifts in the demographic makeup of today’s consumer are also a factor driving the disruptive shift in consumer demands. The U.S., like most industrialized countries, has seen its population grow older. The oldest Baby Boomers turned 65 on January 1, 2011. An estimated ten thousand more per day will turn 65 over the next nineteen years, taking the share of 65-year-old-plus individuals to 18% of the U.S. population, versus just 13% today. An aging population has historically led to lower accident frequency as people have historically retired and reduced driving during peak traffic times. The recession however has led many to postpone retirement, so we may see the traditional reduction in frequency push out several years. Generation Y or “Millennials”, individuals born between 1997 and 1990,
accounted for 77.4 million individuals in the U.S. according to the U.S. Census, just slightly above the 76.2 million Baby Boomers. This generation is more ethnically diverse than older adults, and a greater share of them had at least one immigrant parent—11%, versus 7% for Gen X and 5% for Baby Boomers. A 2010 Pew Research Center study looked at the values, attitudes and behaviors of Millennials versus older generations. Among the findings of this study was the Millennials’ greater use of technology. Millennials feel that this is a defining feature of their generation. Millenials were also the first generation to fully embrace the use of technology in their role of a consumer as well. Owning an automobile has historically represented a rite of passage into adulthood and freedom for Baby Boomers (born between 1946 and 1964), a category still accounting for approximately 45 percent of new-car purchases. But there is a growing sentiment that the automobile has been replaced by the Internet and smart phones for those in the Generation Y age group (born between 1978 and 1984); changing the world the same way the automobile did at the turn of the 20th century. One of the areas with perhaps the most potential to directly impact automotive claim severity and frequency is the shift in the population towards urban areas. Results from the 2010 U.S. Census report that 54 percent of the U.S. population resides in its 10 most populated states, with just over 83 percent living in one of the nation’s 366 metro areas (core urban area population of 50,000 or more). During the last decade, the metropolitan areas however saw the largest increase, significantly higher than micropolitan areas or areas outside a core based statistical area. Personal mobility will reach beyond individual vehicle ownership to an integrated mobility approach, incorporating car sharing, public transportation and greater use of technologies such as telematics, smart metering and navigation. These major demographic shifts may ultimately lead to a disruption in the historical trend of vehicle accident frequency and severity. A
40 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
greater share of the population will fall into the youngest and oldest age groups, where driving patterns may result in diverging patterns of frequency and severity. As the population shifts further to urban areas, increased congestion could lead to higher frequency, although increases in use of public transportation would do the direct opposite. Accident severity tends to be lower in traffic accidents occurring in congested urban areas, and the advent of crash avoidance technologies like the Volvo City Safety system have been shown to reduce both the frequency and severity of low-speed accidents. Economic conditions and the technology in vehicles have been shown to lead to decreases in vehicle accident frequency and severity, and will continue to do so in the future. Because each generation’s outlook is shaped by different cultural expectations and experiences, companies must understand these, and incorporate them into the way that they interact with potential and existing customers. The ability to customize communication and marketing into
generational and demographic categories will help companies portray the appropriate image and message and better grow their business. Insurers and repairers that will be successful in this disruptive demographic environment are those that have plans in place to market and serve the different age groups, and have looked at whether their current geographies are positioned to shrink or grow, and have adjusted their growth plans accordingly. While factors such as atmospheric conditions may be difficult to project, understanding employment trends (i.e. time of day people are commuting to work), vehicles purchased in your market (vehicle body type, accident avoidance technology and airbag availability and deployment), and driver age patterns will be critical to assessing market growth opportunity in the future.
The Accident is The Ultimate Disruptor The average consumer today has an auto accident once every seven to 10 years, well behind the average vehicle trade-in cycle of every five years. Due to the nature of the product being sold,
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auto insurers and collision repairers subsequently have very limited interaction with consumers. Insurers certainly interact with their customer at policy issue, at bill time, and sometimes through other services such as banking or games in apps. However, the real moment of truth for the auto insurer and the repairer is at the time of an accident. For the automotive insurance and collision repair industries, the challenge is to take the infrequent and unexpected negative experience of an auto accident and turn it into an experience where the customer is delighted. No one wants to have their vehicle damaged, and few consumers know what to expect in the auto claim and vehicle repair process. However, they come to this experience the same way they come to any other experience—with expectations that you know who they are, that you will fulfill your commitments to them, and that you will create a positive experience. For insurers, the claim is one of the most significant opportunities to retain or lose a customer. For repairers, a positive vehicle repair experience can create a customer that will share their experience with friends
and family, and help your business grow. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also facilitate the delivery of a personalized experience that delights your customer. By combining innovative technologies that improve business processes, with the ability to finetune the messages delivered to customers at the right time, on the right device, businesses can place themselves in a position to meet the expectations of today’s consumer in a way that can provides them value. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also streamline the overall claim and repair processes. For example, companies that have the technology in place to let consumers report the claim via a mobile device can capture a wealth of information on the facts of the loss, including photos. Incorporating this data into predictive analytics tools can help the insurer assign the claim to the best resource equipped to return the customer to pre-accident condition as quickly as possible. The
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ability for a repair technician to send messages to the claims adjuster electronically, versus calling and trading voicemails, can ensure speedier resolution to questions or issues that might otherwise hold up the repair. With customer satisfaction closely tied to the overall time it takes to return their vehicle to pre-accident condition, mobility can play a key role in reducing inefficiencies in the overall process. The recession led to a drop-off in driving, reduction in claim and fatality frequency, and a larger number of consumers opting to cash-out versus actually repair their car. As consumers begin to ramp up new vehicle purchases, and see moderate upticks in employment, the industry will gradually return to an environment that more closely resembles the market pre-recession. Over time this will lead to moderate increases in customers opting to actually repair their vehicles versus living with the damage (i.e. moderate increases in volume of vehicles actually repaired), but the gradual infusion of crash avoidance technologies in new vehicles will likely flatten-out any inflections in accident/claim frequency. With the exception of storm or catastrophe-driven claims activity, it is unlikely the market will see any dramatic change in the current patterns of claim frequency over the next 18 to 24 months. Outside of the increases in comprehensive losses tied to erratic weather patterns and catastrophes, loss costs for liability and collision are returning to their pre-recession pattern of year-over-year increases between one and three percent. Inflation in replacement parts and labor have accelerated slightly as the U.S. emerges from the recession, but still point to overall increases in repair costs of one to three percent. As new vehicle sales grow and ultimately show up in claims, repair costs will see some inherent lift. The juxtaposition of greater vehicle complexity in terms of electronics and materials with greater prevalence of crash avoidance systems may ultimately result in fewer
but more expensive repairs in the future. The average consumer today has an auto accident once every seven to ten years. Auto insurers and collision repairers subsequently have very limited interaction with consumers and few opportunities to show the value of their products and services. The real moment of truth for the auto insurer and the repairer is at the time of an accident. To be successful in today’s environment, companies must tap into the notion of disruption – where companies develop innovative technologies that improve business processes, and fine-tune the messages to customers so they are delivered at the right time, on the right device, with the most customized content, and place themselves in a position to meet the expectations of today’s consumer in a way that delivers value. Susanna Gotsch is Director, Industry Analyst at CCC Information Services Inc. She has been with CCC since July of 1992. Susanna brings twenty-plus years of experience within the automotive claims industry as Director, Industry Analyst. She has authored The Crash Course, CCC’s annual publication on trends impacting collision repair and total loss costs since 1995. This publication has become a key resource for the industry in understanding how broader trends within the economy, new and used vehicle market places, and collision industry are impacting auto claim frequency and costs. She is also responsible for the generation of all trend analyses of the insurance and automotive industries published by CCC since 1995. In 2011, Ms. Gotsch was selected as one of five Most Influential Women in the Collision Repair Industry through the annual industry honorarium established by AkzoNobel Automotive & Aerospace Coatings America (A&AC).
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Custom Corner with Rich Evans
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Building a Junior Motor Sport Vehicle for 11-Year-Old Driver I’ve been very busy the past three width and positioning. We got a Legmonths working on a new project for end vehicle and I stripped the body off Dan Weaver of the Bakersfield area it and I had Brandon’s dad, Dan, look and his 11-year-old son Brandon around and get some bodies. They Weaver, a junior race car driver who looked like miniatures of NASCAR, so we could make is number #1 in California and #3 in a plug. Making the the nation for his class, Bandalero plug means getBandit Division. with Thomas ting the shape and Dan and Brandon wanted me Franklin to design in place build them a junior motor sports vehiand modifying it cle and I’m excited to share this new to look like what project with you. I was pretty pumped Dan wants. Dan up. I’ve built body kits for the MusBrandon Weaver. fell in love with tang, I’ve worked with Mopar, and (From File) my Mustang and built the polyurethane body kits for the Challenger. Now, it’s going from he likes my style of the bodies. Using parts to a complete vehicle—I am all Fiberglass is obviously better than about that. This is a challenge for me. metal at this point because race cars It brings on my creativity and I will be get all banged up, they get wrecked able to learn more in depth what it and then they have to change out the with Dick Strom body. takes to build a complete vehicle. We cut the body in half because I started with a basic foundation and that’s a great way to get a head it was a little long, shortened it up, start. What I decided to do with this got it to fit the wheel base of the Legproject is to build backwards. We end, spliced it together and cut off the started with a Legend body because front end because we’re not going to Brandon is just a little guy, 70–80 be using that front end. I took pre-expounds max. This way I can gain the isting body parts that I’ve made and wheel base and get some ideas about pulled some parts out of molds so I
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can cut them up and modify them to fit this car, which I would call a ‘mini-me’ because it’s a smaller version. Next, we took the splash off a Mustang hood, cut it down, and spliced it in so we can get our hood looking right, and then we got the body secured to the frame. We definitely needed to make accessories, so I came up with the scoop, the rear wing accessory, the left and right quarter scoops and the front fender scoop, and that gives us nine pieces, which means I need to make 9 molds. With all that being said, the proper process of doing this is sculpturing it out and making sure all sides are symmetrical, such as the left rear wheel wells matching the right wheel wells. I am modifying the rear of the car to look more like the Mustang, and the sides I have to modify to
make the lines look more like the Mustang, to give them a Rich Evans designed vehicle. We are using some features to replicate the Mustang. The whole idea is to use the taillights and headlights from a Mustang. We don’t want to have to re-create the wheel
and have to get into tooling expenses by making our own headlights and taillights, so we need to utilize what’s out there. After getting it pretty close, I’m using 80-grit sandpaper. PCL #901 once again has stepped up to the plate. I cannot build any cars without
that product. After shapingt with 36grit and then 80-grit, I’m ready for primer. For the first process of primer, I lay about three gallons of primer on the body. PCL is both a timesaver and saver. I’ll use 80-grit to shape to money this Southwest Edition? it, then guide coat it, and then come back with 150-grit, re-primer it with another gallon or gallon and a half of primer, sand it again with 150-grit autobodynews.com and come back with 400 wet. Then,
months of hard work to get to the molds. I am excited about this project. It’s another challenge. I have to thank my sponsors, PCL, 3M, SATA spray guns, Infratech heat lamps and SofSander, and Brandon and his dad for allowing me and believing in me to do this project. Also, check out my new website, builditwithRichEvans.com. DIY (Doit-yourself) car builders are the root the of American car ness with Promote your business with culture and one that I grew featuring an exclusive article featuring up in. If you guys are buildservices. your products or services. ing cars out in your garage, I could show up at your garage and give you three days of free help with your own do-it-yourself car building project. Fill out an online or details! Call for details! application off my new web251 800-699-8251 site. We’re teaming up with we’re ready for molds and that’s the my sponsors for free products and point where we are at now. Three parts. I want to know your story.
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Toyota Donates $32K in Training and Support to CREF in Support of Instructors Toyota Motor Sales, U.S.A. donated $32,000 in collision repair training support for secondary and post-secondary collision instructors through the Collision Repair Education Foundation (CREF). Toyota donated 25 vouchers, valued at $400 each, for their collision repair and refinish training classes held at three training center locations around the country. Additionally, Toyota donated 10 Toyota Techstream Lite devices that include two-year Toyota TIS subscription certificates. These in-kind product donations will be offered to those instructors that have applied for the Education Foundation’s Ultimate Collision Education Makeover school grant in the past and will assist in providing up-to-date technical repair information. John Saia, Technical & Body Training Development Manager at Toyota said, “This donation will go a long way in support of collision repair & refinish training for schools, collision instructors, and students. We can bring instructors up to date with our Collision Repair & Refinish training program, provide repair details and tools that equip collision instructors and students with state of the art diag-
nostic tools, repair procedures and information. In the end, this direct support helps the entire collision repair industry and our customers!” Robb Cowell, Auto Collision Repair & Refinishing Instructor at Colonial High School (Orlando, FL) noted, “Much can be gained by instructors attending these training sessions as I always tell my students about the Lexus refinishing process and how highly regarded the finish of their vehicles is held in the industry.” Robert Winfrey, Auto Body Technologies Instructor at South Piedmont Community College (Polkton, NC), noted, “I would like to express my devoted thanks to Toyota for this opportunity. It is not often that school instructors are able to attend this type of training and bring that technical knowledge back to the classroom for the benefit of the students.” Industry members and companies interested in supporting secondary and post-secondary school’s collision programs through monetary and/or in-kind product donations should contact Associate Director of Development, Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or 847-463-5244.
Battery Maker BYD Probes Electric-Car Crash Fire BYD Co., the Chinese auto maker backed by Warren Buffett, faces a setback in its electric-car business, after one of its e6 vehicles caught fire in a collision that killed three people in the southern Chinese city of Shenzhen. The company’s shares plunged after the accident in Shenzhen and Hong Kong, reflecting investor concern that the crash could highlight safety issues with electric cars as the Chinese government is pushing for their nationwide adoption. The e6 involved in the accident was being used as a taxi and caught fire after being hit by a Nissan GT-R sports car being driven by a drunken driver at 150 to 180 kilometers an hour, or roughly 90 to 110 miles an hour, BYD spokesman Paul Lin said. The driver and two passengers of the e6 died, he said. “We are investigating…we’re trying to help the traffic department with the investigation.” Mr. Lin said it was “too early” to have detailed information about the crash, pending a police investigation. He declined to comment on safety concerns for electric vehicles. Authorities around the world face challenges in promoting the wide adoption of electric cars, following several high-profile incidents that
have raised concerns about the safety of batteries used in such vehicles. General Motors Co.’s Chevrolet Volt battery-powered car faced negative publicity after U.S. safety investigators highlighted the possibility of electric-car batteries catching fire in a collision. In April, an electric-car battery being tested at a GM facility in the U.S. exploded, injuring an employee. Nonetheless, China has given strong support for electric vehicles as it attempts to battle increasing reliance on oil imports and address chronic pollution in its cities amid rising car ownership. The State Council, China’s cabinet, in April said it would expand and speed up policies to boost sales of energy-saving vehicles, including measures to develop electric-vehicle technology and charging infrastructure. China aims to have 500,000 electric and plug-in hybrid vehicles on its roads by 2015, and more than five million by 2020. Yale Zhang, managing director of consulting firm Automotive Foresight, said that while the e6 incident might create a negative impression of electric vehicles in the short term, it won’t be detrimental to the whole industry’s development.
The Repairer Driven Education (RDE) series, presented by the Society of Collision Repair Specialists (SCRS), is returning to the SEMA Show for the third consecutive year. With courses individually selected or crafted by the SCRS, the program includes nearly two dozen sessions taking place during the SEMA Show Tuesday-Friday, October 30–November 2, 2012, in Las Vegas. The headline session, “Game Changers–Innovation Forum,” takes place November 2 and features industry leaders discussing what innovation can look like in the collision repair business and how it’s becoming core to business strategy. Other sessions explore how digital marketing, social media and related tools can increase customer retention and loyalty, and how new metals being used in the construction of today’s vehicles are impacting the repair process. SCRS Executive Director Aaron Schulenburg said, “The RDE series is a tremendous educational opportunity for the collision industry, providing an accessible and affordable education on topics that address issues that truly matter to those working in repair facilities. We were fortunate to be able to present the series at the last two
SEMA Shows, and look forward to expanding the program this coming year.” SCRS partnered with show organizers to present the RDE program at the 2011 SEMA Show. The annual trade show, which saw nearly 30 percent more collision repair attendees compared to the previous year, brings manufacturers of automotive parts and accessories together with industry buyers from all over the world. Manufacturers represent every segment of the automotive specialty equipment market, including restyling, hot rod, trucks and SUVs, and racing and performance. “The SEMA Show features products from every automotive niche, which makes it the ideal venue for buyers to discover new markets,” said Peter MacGillivray, SEMA VP of events and communications. “Because the collision market is so closely related to many of our traditional market segments, it’s become one of the fastest growing areas and is of huge interest to our attendees.” In addition to the SCRS RDE series, the SEMA Show will feature nearly 60 educational seminars throughout the week.
SCRS Hosts Repairer Driven Education at SEMA 2012 Featuring “Innovation Forum”
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 43
Arizona and California Schools Preparing for Collision Repair’s Future by David M. Brown
Two schools in Arizona and California are prepping the future of the industry. In Mesa, AZ., the collision repair program at The East Valley Institute of Technology is the state’s only high school-level coursework certified by the National Automotive Technicians Education Foundation, the independent non-profit based in Leesburg, VA. Since 1983, secondary and post-secondary automotive-training programs in 50 states have been accredited through NATEF standards. And, in Sacramento, the Universal Technical Institute campus offers its Collision Repair & Refinish Technology (CRRT) program, preparing students as collision repair and refinish technicians. Arizona’s first joint technological education district, EVIT, offers occupation training for high school students at 10 school districts in the expanding Phoenix East Valley. The main 65-acre main EVIT campus is at 1601 W. Main Street, and the extended campus, 6625 S. Power Road. The school’s areas of certification include non-structural analysis/damage repair and painting and refinishing. Students in the two-year program develop auto body repair and refinishing skills, learning to perform jobs from detailing to assisting with painting in a contemporary paint booth. The main campus facility includes two frame racks, two downdraft bake spray booths and two downdraft prep stations. The two-year program, with six elective credits toward graduation, teaches students collision and customizing skills, using I-CAR guidelines. The course started in the early 1970s when it was offered at Mesa VoTech, and for more than 20 years EVIT has offered it to aspiring technicians. “The format of their curriculum is exactly like the curriculum used by ICAR to certify technicians already in the industry,” says Instructor Neil Carroll, custom paint instructor and an EVIT teacher for 10 years. “Students learn the basics with emphatic hands-on lab practice.” Formed by the collision industry in 1979, the not-forprofit Inter-Industry Conference on Auto Collision Repair focuses on helping the industry achieve a high level of technical training.
NATEF requires many items, such as a facility and equipment and that teachers must be ASE certified, he
manager, who notes the appreciation as well of Ed Baker, the dealership’s service director. “The industry is in
Collision Repair & Refinish Technology at UTI. Image courtesy UTI
says, noting his Master’s Technician certification through Automotive Service Excellence as well as Automotive Youth Education Systems certification (AYES). For the current school year, Carroll is guiding 71 high school students, divided between morning and afternoon sessions. In addition, an adult collision-repair program in the evenings, through the School of Adult Education, is administered by a different instructor. In Arizona, students compete in the SkillsUSA competition where EVIT wins the majority of the medals annually, Carroll says. Five EVIT students this year competed against 49 students statewide and won gold, silver, top estimator and other awards. Last year, a female student won bronze—the first female medal winner in state competition—and this year a female student won fourth, missing bronze by only 16 points. In 1995, a student won silver and, about four years ago, another student took bronze at National SkillsUSA. In addition, last year 11 students participated in internships, and there are currently 12 on internships this year, nearly double the national average, Carroll says. One of the oldest Ford dealerships in Arizona, Berge Ford in Mesa, employs a number of EVIT students and has been impressed. “They have found a great starting point here,” says Steve Roger, Collision Repair Center
44 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
great need of qualified entry-level personnel.” The Sacramento campus of Universal Technical Institute, founded in Phoenix in 1965, offers a Collision Repair & Refinish Technology Pro-
gram, accredited by NATEF, ACCSC (the Accrediting Commission of Career Schools and Colleges), the State of California Bureau of Private Postsecondary Education and the U.S. Department of Education. The Houston campus of UTI, which opened in 1983, also offers the program. Nationwide, nine UTI locations provide automotive-education courses, and two motorcycle and/or marine technology. “Our program is designed to serve industry need,” says Don Black, education director for the Sacramento campus. “We partner with industry and I-CAR regarding our curriculum, facility, education delivery, training aids and lab activities to ensure that we are providing the most relevant technical training that will allow our students the greatest opportunity for success in the collision-repair industry.” He adds,”It is this focus on industry and partnership with industry that makes Universal Technical Institute the best choice for technical training and how we distinguish ourselves from our competitors.”
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Guided by 11 instructors, the 51week CRRT program guides the students on how to repair and refinish structural and non-structural damage as well as how to prepare cost estimates on all phases of repair and refinishing. Students also learn to repair mechanical and electrical damage. As a result of completing the program, graduates can achieve certifications in DuPont refinishing, 3M plastics repair and Chief Automotive measuring and straightening systems, Black explains. Based on the industry standard, ICAR Live, the course includes five modules of collision repair and refinish training: Nonstructural Repair; Structural Repair; Refinishing; Mechanical & Electrical Repair; and Auto Customizing. Graduates will be Platinum I-CAR certified, preparing them for entry-level collision repair or refinish technician for a dealership, an independent body shop or a fleet repair facility. Success has been continuing since the program started at UTI Sacramento in 2005. One recent example has been with Cooks Collision, a large regional CRRT employer with 20 locations in California. The company had been struggling to find estimators
for the last two years, and UTI thought there might be an opportunity to partner with the business, Black says. “During follow-up meetings with Cooks, UTI learned more about their needs and we were able to connect those needs with the value UTI provided, resulting in a win/win partnership,” he explains. Cooks would create a one-month paid training program on estimating to build on the foundation of the UTI training.
candidates, they hired six, and all but one of them was able to advance through the training program.” That group comprises Justin Abner, William Bakke, Colton Dorman, Carlos Solórzano, and Dylan Burtis, who started working with Cooks Collision in February as junior estimators. They recently returned to UTI to share their experiences and challenge students, telling them to focus on all courses, including estimating, as they didn’t know they would become estimators when starting the UTI program, Black says. “Our estimating training from UTI was a great foundation to build on during our training with Cooks and we wished we would have focused on it more,’ they said,” he reports, adding that UTI Megan Peterson is a student at EVIT taking advantage of will soon be choosing the two new paint mixing systems along with a computer, software, label printer, paint books, tech manuals and a mixing next set of UTI graduates to scale from Leading Edge Auto Refinishes and Riverview be interviewed for an opporCollision in Mesa tunity with Cooks Collision. UTI first identified seven candiAnother recent UTI success is dates. “Our hope was to identify four Colton Hart, who graduated from the hires for the program,” Black says, school in September 2011, accepted a “but after interviewing our seven UTI job a month later working with Sunny
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Mississippi Reacts
perform under the cloak of fairness and efficiency. The only real information we have learned in our area came from shop owners, suppliers and a former State Farm employee from the Birmingham area.” The Birmingham shop owners attending the MCRA meeting who have actually tried the program “withdrew themselves from the Select Service program,” said Mosley. “They stated the program was a nightmare. They said it held up the repair process by gathering bids on parts. According to these shop owners, one by one, they told us we will have to hire more administrative personnel to keep up with the program demands. They echoed what we firmly believe: this program will slow down the repair process, inconvenience the consumer, and cost the shops money in an effort to give State Farm more control of the parts and their costs.” George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years, said about the Birmingham shops:
Stotler in Kalispell, MT., doing custom auto body and refinish repair work. He started out at $15, received a raise in February and then switched to a flat-rate commission of 40 percent of the total job profit. Quickly, he was promoted to Refinish and Restoration Tech/Airbrush Artist for the two-man shop. “He now does all the paint and airbrush work and is continually taking on more of refinishing process,” Black reports. “Sunny reports that they have business lined up for the next two years and the community has become a fan of Colton’s airbrush work, with specific requests for his designs and skills.” Black said, “Colton is doing his dream job and is excited to keep learning and developing under the direction of a veteran in the industry, and UTI is very proud of Colton’s accomplishments and that he is pursuing his dreams.”
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@autobodynews Accept no Substitutes! “They made a business decision. I think a lot of them left before they even used the tool, which we felt was unfortunate, but that was a business decision they needed to make. I just don’t like to see a situation where someone makes a decision based on inaccurate or incomplete information. Info gets passed and sometimes it’s inaccurate and assumptions are made.” In a letter to George Avery, Mosley writes: “This program is now serving as a catalyst to both ignite and unite this industry in a manner I have never experienced in my 58 years....I see no way this program is a benefit to the repair shop or the consumer. The underlying purpose of this program is for State Farm to make a higher profit at the expense of the collision repair industry and the parts industry...How can any program that adds to the administrative process by gathering bids, waiting for those bids before we can begin repairs, only to be waiting again when we have a supplement, add to efficiency? There is no way.” (To view the rest of this article, please see www.autobodynews.com.)
www.autobodynews.com | JULY 2012 AUTOBODY NEWS 45
On Creative Marketing
Tom Franklin has been a shop 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
Maximizing Referrals to Your Shop with Thomas Franklin
During the past 15 years or so, I’ve report from a customer who had been noticed that many body shops spend referred to a shop and found that rea great deal of time and money pro- ferral formed an even closer bond moting to referral sources that never with the customer. In a case like this, send a single job. There is some referrals can be an excellent way to logic to continually dripping on solidify or build business. prospects in the hope that at least a This should be a clear message few of them will send a job or two to a shop owner or manager seeking one day. And if the promotion going to build referral business. Getting the with Dick Strom out isn’t too costly, it can’t hurt. referral source to come to the shop to But what if more effort were ap- see it in action, or better yet to bring plied to reinforcing those sources that his or her own vehicle in for repairs actually do refer jobs? In a busy marwill greatly improve the chances of ket, I know of a shop that promotes to getting referral business. Depending 200 insurance agents a month. Less on the financial capability of the than 10% of those agents ever refer shop, it could even be worthwhile to work to the shop, and even fewer ac- offer to do a free repair to a potentually send work on a regular basis. tially high volume referral source. This particular shop also has a DRP Much depends on a shop carewith an insurance company that has fully identifying who has referred a regular agent meetings and has made job. When a real referral source has Lee Amaradio Jr.identified, it’s time to reinforce the conference with room and area avail- been able for agent and manager meetings that willingness to refer in every way fairly frequently. This has resulted in possible. Many shops send thank you significantly more referrals by agents notes or offer a free car wash as a who attend meetings at the shop. In thank you. Others offer small gifts checking with other shops that market like theater tickets, dinner for two at to agents, I found this was a common a nice restaurant, or a voucher for use occurrence. Once an agent either came at a beauty parlor, local gym or barto a shop, brought his or her vehicle to bershop. Some agents aren’t allowed the shop for repairs, or had a customer to receive gifts, so a more subtle form use that shop with a good result, the of appreciation is in order. Like the agent then did actually refer business shop, agents, car dealers and other rewith Sheila Loftusferral sources are also looking to to the shop. A physician’s Hippocratic oath build their business. Posting their says, “First do no harm.” Someone card or flyers at the shop would be a contemplating a referral to a shop will minimal thing to do, but hosting a have a similar concern: “First, avoid promotional event at the shop could any harm.” An agent or other referral be appropriate for someone who fresource knows that referring a job to a quently referred business. shop that does a bad repair will reflect Some events can be a win-win badly on him or her and may lose that for both the shop and an agent or customer or client. So great caution is dealership promotional person. A exercised in making referrals. On the safe driving event for teenagers can other hand, I’ve spoken with agents bring in parents with insurable and who said they had gotten a glowing repairable vehicles. In a previous ar-
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Shop Showcase with Janet Chaney
Caliber Collision Refurbishes Vehicle for Student
Caliber Collision Centers recently refurbished a 2003 Kia Optima that was donated to a high school graduate in Tucson, AZ. The vehicle donation was made through Project Graduation, a national program designed to promote drug and alcohol free graduation nights and keep high school graduates off the roads. Matthew Tyrrell, a 2012 gradu-
ate of Ironwood High School in Tucson, received the vehicle after being the grand prize winner in a drawing held after the school’s graduation ceremony. Several local businesses also donated services to refurbish the vehicle, including Dent Solutions, Big O Tires, Lefty’s Custom Striping, Mercado Del Rio Car Wash and The Specialist.
Industry Overview with Janet Chaney
46 JULY 2012 AUTOBODY NEWS | www.autobodynews.com
ticle I wrote about a car care clinic for a woman’s professional network group. Promoting a good referral source as a sponsor and co-presenter for such an event would be an especially effective way to reinforce that source of referrals. Happy customer referrals can also be enhanced with recognition. One shop tracked the number of jobs per month and year and awarded a prize to the 10,000th customer. A shop might also create a “Customer Appreciation Day” once a month, and invite all customers who had referred jobs to come in for a fancy lunch and also perhaps a car wash. Unique souvenirs could also be awarded, like a coffee
mug or special hat or T-shirt with the shop’s logo. The key element with individuals who refer business is to create a sense of family and belonging. And when one of these referring customers comes back for repairs on his or her vehicle, the shop might award a surprise rebate. It all comes down to recognizing who actually sends work. Radio, TV and publication ads reach out to the general public. Flyers, mailers, emails and more, target potential (but not yet real) referral sources. But there’s nothing like reinforcing and rewarding those who send the real jobs and provide the funds for reaching out to grow even more.
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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 47