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Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry by John Yoswick
PartsTrader proposed state limits on use of non-OEM parts, and challenging the automakers’ patent designs on crash parts were all being discussed when non-OEM parts manufacturers and distributors met recently in Austin, Texas. The Automotive Body Parts Association (ABPA) allowed only members in the room during discussion at its convention of the association’s pending lawsuit challenging the validity of six of Ford’s design patents on collision repair parts. But proposed
federal legislation that would reduce how long automakers can use design patents to prevent other companies from producing replacement crash parts was among the topics discussed at the event by Louisiana tax Cassie Felder lawyer Cassie Felder, who is running for Congress. Felder, a Republican who believes in tax reform and repealing the Affordable Care Act, told attenSee Aftermarket Parts Sellers, Page 16
New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members
See ABAT, Page 8
P.O. BOX 1516, CARLSBAD, CA 92018
The newly formed Auto Body Association of Texas (ABAT) will be holding their Inaugural Meeting on June 18th at the Henderson Civic Center with guest speaker Barrett Smith, President and Founder of Auto Damage Experts Inc. Burl Richards, Acting President of ABAT, took some time to explain how the association is getting started and what they hope to achieve through its development. Several months ago, a local jobber, Chad Neal of Paint Works in Tyler TX, held an educational seminar on estimating which included a number of Eastern TX shop owners.
Neal and Richards had previously discussed the need for a trade association in their area, but when Richards tried to organize an association meeting a year earlier, he garnered little interest and participation. Thus, when Neal held the estiBarrett Smith of mating seminar earADE will be the lier this year, they featured guest saw it as the perfect speaker at ABAT’s Inaugural Meeting opportunity to preson June 18 ent their idea for a new association. Richards believes that a
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by Chasidy Rae Sisk
VOL. 32 ISSUE 7 JULY 2014
LaCIA Hosts Attorney General at May 22 Meeting by Chasidy Rae Sisk
much exceeded my expectations with what he and his staff of lawyers have accomplished so far. I heard the comment ‘blown away’ when I asked others to describe the meeting. Mr. Caldwell
On Thursday, May 22, the Louisiana Collision Industry Association (LaCIA) held a meeting at the Hilton Garden Inn to update members on the direction the association is taking and their upcoming plans. Featured speakers included Attorney General Buddy Caldwell and his assistant AG, Randy Ishee, who updated attendees on their efforts. Executive Director Alysia Hanks notes, “overall, the meeting and turnout was excellent, and I think the Attorney General is Executive Director Alysia Hanks (l) with Attny General on top of things! He was pres- Buddy Caldwell (m) and Randy Ishee (r) from the LA ent with some of his other at- Dept of Justice torneys who are working on our issues, and four other attorneys are now workand they had some great updates to ing non-stop on our issues.” share with us. I don’t think I’m alone The meeting began with Chairman when I say this, but Mr. Caldwell very See LaCIA Meeting, Page 14
Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition Service King Collision Repair Centers has announced that it has finalized the acquisition of Sterling Collision Centers. Service King now operates 175 locations across 20 states. The company says that the acquisition supports Service King’s robust growth strategy and further strengthens its position as the premier provider of high-quality collision repair backed with exceptional customer service. “Acquiring a company like Sterling Collision Centers is about more than expanding our network with bricks and mortar. The strength of our organization lies within our people and we are extremely excited to welcome the very talented Sterling team to the Service King family,” said Chris Abraham, CEO of Service King. “Service King has offered consumers a superior collision repair experience for more than 38 years and we are well positioned to grow that legacy with what I believe is the most capable and experienced team in the industry.”
Sterling’s 62 locations will begin operating as Service King immediately and the rebranding of Sterling stores across the country commences June 3, 2014. “Service King has built a strong reputation in the communities where we do business. We recognize that collision repair is not just about the car, but it’s about the care and the lives we touch every day. This acquisition allows us to expand our footprint and offer more consumers an unparalleled, personal repair experience,” said Jeff McFadden, President of Service King. Service King now employs more than 3,800 technicians and support team members and offers collision repair services in the following states: Arizona, Arkansas, California, Colorado, Georgia, Florida, Illinois, Maryland, Michigan, Mississippi, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia.
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COLUMNISTS Attanasio - How to Market to Millennials. . 38 Franklin - Ding Day–A Marketing Tactic . . 30 Luehr - Using an Outside Expert to Improve your Competitive Position . . . . . . . . . . 26 Yoswick - Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection . . . . . . . . . . . . . . . . . . . 28 NATIONAL AMI to Honor New Managers . . . . . . . . . . 18 ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver. . . . . . . . . . . . . . . . . . 40 Attanasio - Tech Turned Tool Designer Headlines EB-CAA May Meeting. . . . . . 32 Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion . . . . . . 20 AudaExplore Pledges $150K to SkillsUSA in Tool Grants. . . . . . . . . . . . 45 AutoZone Names Dornan Products Vendor of the Year . . . . . . . . . . . . . . . . 46 Body Found After Van Crashes Into KC Body Shop . . . . . . . . . . . . . . . . . . . 31 Caliber Acquires MSOs in Los Angeles and North Carolina. . . . . . . . . . . . . . . . 43 CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever . . . . . . . 40 CARSTAR Sees Record Revenue in 2013, Plans Expansion of HQ in Leawood, KS . 18 CAWA Reports on Status of California Legislation Impacting Industry . . . . . . . 34 Charlotte, NC, Shop Gets Big Pot Package from CA. . . . . . . . . . . . . . . . . . . . . . . . 43
Chrysler Airbag Recall Being Probed by Regulators . . . . . . . . . . . . . . . . . . . 42 Crashes Cost Almost $1T in Costs, Loss of Life, Pain. . . . . . . . . . . . . . . . . 46 Culpeper, VA, Man Charged after Body Shop Standoff. . . . . . . . . . . . . . . 43 Farmers Drops Climate Change Lawsuits in Chicago . . . . . . . . . . . . . . . . . . . . . . 36 Fix Auto Acquires Alaska Shops . . . . . . . . 18 I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS . . . . . . . . . 35 I-CAR® Adds New OEM Segment Development Director, John Bosin . . . . 41 I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014 . . . . . . . . . . 40 I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit . . . . . . . . . . . . . . . . . 44 IL Shop Owner Posts 20-min Video of FPB for Panel Fixes . . . . . . . . . . . . . . . 36 Interactive Advanced Steering and Suspension Systems Damage Analysis Course. . . . . . . . . . . . . . . . . . 41 Letter to the Editor - Why Should Insurers Get Free Estimates When They’re Not Using Adjusters . . . . . . . . . . . . . . . . . . . 3 MERA Joins the Excitement at NACE | CARS 2014. . . . . . . . . . . . . . . 35 MO Shop Porter Steals Car, Joyrides Off-Road, Posts His Fun. . . . . . . . . . . . 45 New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025. . . . . . . . . . . . . . . . . . . . . . . . 44 NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award. . 42 OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm Alleging Systematic Shortpays. . . . . . . 22 Ohio Appeals Court OK’s Line Measurement for Dealership . . . . . . . . 46 Pack Brothers in Belmont NC Wins Short Pay Arbitration . . . . . . . . . . . . . . 43 PartsTrader Integrates Hollander Interchange Codes. . . . . . . . . . . . . . . . 42 Quality Parts Coalition Says Certified Aftermarket Parts Saved $80 Million . . 41 SCRS Open Board Meeting on July 28th in Detroit . . . . . . . . . . . . . . . . . . . . . . . 46 SD Shop Fire Caused by Smoldering Cigarette Butts . . . . . . . . . . . . . . . . . . . 34 SEMA Garage Now Features Photo Cove . 45 Sisk - ASA-Midwest—Take Me Out to the Ballgame!. . . . . . . . . . . . . . . . . . . . 36 Sisk - ASA-NW’s Automotive Training Expo 2014. . . . . . . . . . . . . . . . . . . . . . 39 SWCC Collision Repair Students Win Iowa SkillsUSA Competition . . . . . . . . . . . . . 45 Uninsured Driver Sued By State Farm . . . . 10 VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition . . . . . . . . . . . . . . . 12 Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the ‘Most Influential Women’ Program to WIN . . . . . . . . . . . . . . . . . . 18 Young Technician’s Program to Debut at CARS . . . . . . . . . . . . . . . . . . . . . . . 46
they want us to write the estimate and send up pictures for free! Why do they think my time is worth nothing? My partner and I share the office work and are out in the shop working all day. Our time is valuable. When we are in the office our production time suffers. The insurance companies tell me “Well, you write free estimates don’t you?” My answer is ‘yes, to a prospective customer that I don’t know, or my regular customers,’ but when I have a customer that drops his car off I know I have that job already. The person has picked my shop. Why is it the insurance company feels that I should prepare the estimate for them on my dime? They are saving money by not paying an adjuster, but I feel they should at least pay me some fee for my time and not take advantage of me. Small shops cannot take that kind of abuse and I think it’s taking an extreme advantage of shops and the proprietors. I would like your [readers’] thoughts on how we can combat this abuse. Thanks, Pete Gutierrez, Pete <1redcatz@comcast.net>
Letters to the Editor can be sent to editor@autobodynews.com. They may be edited for length and clarity. See Facebook/autobodynews to respond via comment. Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Southwest
REGIONAL 5W Collision Repair Owners Share Fortunes Via Donations To Charities . . . . . . . . . . . 4 A Note of Appreciation from Leo Kozadinos, HABA President, to Those Supporting HABA . . . . . . . . . . . . . . . . . . . . . . . . . 10 Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry . . . . . . . . . . . . . . . . . . . 1 Annual North Texas Event—Roadmap: Collision Industry & Careers Expo on August 16 in Dallas. . . . . . . . . . . . . . 4 Caliber Collision and NABC Gift Four Recycled Rides for Memorial Day . . . . . 6 Employee, 23, Killed at Baton Rouge Upholstery Shop . . . . . . . . . . . . . . . . . . 6 Fred Haas Toyota World Wins Third Toyota Certified Collision Center of the Year Award . 6 John Borek Takes Aggressive Action, Files Trespassing Complaints Against Argumentative Appraisers . . . . . . . . . . 13 LaCIA Hosts Attorney General at May 22 Meeting. . . . . . . . . . . . . . . . . . . 1 Man’s Auto Insurance was Canceled Before Accident, Sues Title Company As Insurance Agent. . . . . . . . . . . . . . . . . . 10 Motorists Still Filing for Hail Repairs After April’s Dallas-Area Storm. . . . . . . . . . . 10 New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members. . . . . . . . . 1 Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition . . . 1 Thieves Threaten But Don’t End Tulsa Shop Owner’s Dream to Open a New Business . 8
I would like your opinion on something I’m seeing becoming a trend. I am seeing more and more insurance companies making the body shop do the original estimate and send up pictures. We will have one of our customers bring a car to our shop and they want US to do the work. They call their insurance company up and let them know the car is at our shop. Normally, they would send out a insurance adjuster to do the estimate because for years now if we did one it was not good enough for them. They would not want it. They would do their own and in turn we would go over it and make adjustments or add to it from there. They may argue and haggle if repair times were unacceptable. Now, Nugent online uploading of pictures and estimates is available. I’m finding more and more insurance companies telling us to go ahead and use Nugent, upload and send pictures. All of a sudden now our estimates are good enough for them ! Of course they are saving money by not sending out an adjuster! This is what I’m upset about. Before we weren’t good enough to write a estimates now
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Letter to the Editor: Why Should Insurers Get Free Estimates When They’re Not Using Adjusters
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.
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Absolute Mitsubishi-Hyundai . . . . . 27 Accudraft Paint Booths . . . . . . . . . . 18 Automotive ID . . . . . . . . . . . . . . . . . 12 BMW Wholesale Parts Dealers . . . . 31 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Chevyland . . . . . . . . . . . . . . . . . . . . 39 Chief Automotive. . . . . . . . . . . . 20, 21 Classic BMW . . . . . . . . . . . . . . . . . . . 8 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . 11 Dent Tools Direct USA . . . . . . . . . . 14 Don Carlton Auto Group . . . . . . . . . 32 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 37 Fowler Honda . . . . . . . . . . . . . . . . . 26 Freedom Dodge-Chrysler-Jeep-Ram. 19 Gillman Acura . . . . . . . . . . . . . . . . . . 9 GM Wholesale Parts Dealers . . . . . 43 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Houston Auto Body Association. . . 26 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . 13 Huffines Hyundai Plano . . . . . . . . . 20 Hyundai Wholesale Parts Dealers . 40
Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 33 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mac Haik Ford. . . . . . . . . . . . . . . . . 16 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Martech Services Company . . . . . . 10 Mazda Wholesale Parts Dealers . . . 45 Mike Calvert Toyota. . . . . . . . . . . . . 36 Minute Man Wheel Lifts. . . . . . . . . . . 6 Mitsubishi Wholesale Parts Dealers . 35 MOPAR Wholesale Parts Dealers . . 29 North Freeway Hyundai . . . . . . . . . 38 PDR Nation . . . . . . . . . . . . . . . . . . . . 4 Ray Huffines Chevrolet . . . . . . . . . . 30 Reliable Chevrolet. . . . . . . . . . . . . . 34 Replica Plastics. . . . . . . . . . . . . . . . 39 SATA Spray Equipment . . . . . . . . . 17 Scoggin-Dickey Buick . . . . . . . . . . 23 South Pointe Chrysler-Jeep-Dodge. . 7 Toyota of Fort Worth . . . . . . . . . . . . 28 Toyota of Laredo . . . . . . . . . . . . . . . 22 Toyota Wholesale Parts Dealers . . . 41 Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 42 Volvo Wholesale Parts Dealers . . . . 44 Young Chevrolet . . . . . . . . . . . . . . . 14
www.autobodynews.com | JULY 2014 AUTOBODY NEWS 3
5W Collision Repair Owners Share Fortunes Via Donations To Charities In April a seasonal hail storm struck in Denton, Saganaw and Pilot Point, TX, bringing vehicles by the score to local body shops. But even before this body shop bounty, Jason and Brandi Weir had decided business was strong enough at their 5W Collision Repair that they could start donating some of their profits to charity, according to Jenna Duncan, writing in the Denton Record-Chronicle. The shop was interviewed by the local NBC affiliate May 29th which detailed their charity donations. The shop repaired 51 vehicles in April and, based on that productivity, they will present the first of what they hope will be monthly donations. The Weirs decided that for each vehicle the shop repaired, they would donate $50 to a veteran’s organization and $50 to an organization that helps women. Bring Everyone in the Zone, or BEITZ, a veteran support organization based in Killeen, and Denton County Friends of the Family, an organization that helps those impacted by rape, sexual abuse and domestic violence, will each receive checks for $2,550. 5W is located at 1003 Shady Oaks Dr. in Denton and is one of the few aluminum certified shops in the area.
It bills itself as an environmentally friendly veteran owned facility and it appears to be cementing their local reputation.
Owner Jason Weir, front row in green hat, poses with his employees at 5W Collision Repair in Denton
“One day we were slow, and decided we wanted to give back to the community,” Jason Weir said. “Now it’s booming. I went from five employees to 14, and it’s hand-over-fist work, so I couldn’t be happier.” The couple, who live in Denton, opened the shop in December, 2012. One of their children came up with the name 5 Weirs—for the five family members—and Brandi shortened it to 5W Collision Repair. Jason Weir had worked for a larger chain that was sold, and he decided he was ready to start
Annual North Texas Event—Roadmap: Collision Industry & Careers Expo on August 16 in Dallas The entire collision industry is invited to participate in the upcoming “2014 Annual North Texas Event – Roadmap: Collision Industry & Careers Expo” event taking place in Dallas on Saturday, August 16th. The event is focused on elevating awareness for careers in the collision industry by convening marketplace leaders who will showcase today’s dynamic careers available to the next generation of collision industry professionals. Funds raised from this event will benefit the Collision Repair Education Foundation and activities will include an industry trade show, celebrity appearances, National Auto Body Council Recycled Rides vehicle presentation, silent auction/raffle table, product demonstrations, and industry career awareness opportunities for local high school and college collision students. Collision Repair Education Foundation Executive Director Clark Plucinski noted, “The Collision Industry offers incredible opportunities for skilled individuals who are willing to work hard and are seeking a rewarding career. Our industry has an exploding demand for
talent and we must be proactive about attracting the best and brightest in order to keep pace with industry growth. Therefore, I would like to extend an open invitation to all industry members and interested parties to join us this August and take advantage of this special opportunity. We will be bringing together both current and future industry members on a day of raising support and career awareness.” The event will take place from 8 AM–5 PM at Vandergriff Toyota in Arlington, Texas and is open to the collision industry and general public. There is no charge to attend; however those interested in attending are asked to RSVP and companies looking to participate as a sponsor or exhibit should contact Director of Development Brandon Eckenrode at: Brandon.Eckenrode@ ed-foundation.org.
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his own business. “Customers were becoming more numbers than customers, and it was really ‘get a car in and out as fast as you can,’ and my moral compass was having a little fault with that,” he said. Now that the business is making a profit, the couple decided that reinvesting in the business and donating to charity would be the best ways to use their profits, instead of on themselves. Weir, a veteran himself, said he decided on Bring Everyone in the Zone after talking to people across the street at the Texas Workforce Commission. The organization is small and provides education and support to returning veterans and their families, and focuses on post-traumatic stress disorder, traumatic brain injuries and other trauma from war. “We’re a really small nonprofit. We help a lot of people, but we’re very small and rely totally on donations,” said Maureen Jouett, executive director of the group. “I was very pleased and happy that they were able to do this for us.” In the future, the Weirs may change the charities they donate to each month. For example, if a local church decides it wants to do a program for homeless vet-
erans, they would consider making a donation there. They also hope that the trend will catch on with other local businesses and larger companies, Weir said.
Brandon Minze, 5W’s Newest Service Advisor
“In our business, there’s a good bit of profit and I want to give back to the community,” he said. “As long as my wife and I own our company, we’re going to give back to the community.”
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Caliber Collision and NABC Gift Four Recycled Rides for Memorial Day Recipients Freddie Nash and Daniel Escamilla (nominated by Allies In Service), Diana Cuesta (nominated by Attitudes and Attire) and Cathy Weeks, Farmers district manager in front of the Recycled Ride vehicles. Caliber Collision presented four Dallas-area veterans with vehicles through its Recycled Rides program over Memorial Day weekend. The vehicle presentations were part of opening and closing ceremonies at the annual Carry The Load Memorial Marches in Burnet and Dallas, Texas. Caliber Collision’s Recycled Rides is part of a nationwide program by the National Auto Body Council in which insurance companies partner with collision repair facilities to repair and donate vehicles to individuals in need. Farmers Insurance provided the vehicles in Dallas and Austin, which were refurbished by Caliber Collision associates who volunteered personal time to repair the vehicles. This is the second year that Caliber Collision has partnered with Carry The Load to help ease the burden for veterans by donating vehicles. In addition to the technicians who donated time to repair the vehicles, Caliber Collision associates from corporate offices and 34 centers
throughout the Dallas-Fort Worth and Austin areas also raised funds for the Carry The Load’s Memorial March. Caliber Collision raised more than $25,000 in contributions to support Carry The Load programs and activities in 2014.
The four veterans who received vehicles are: ■ Eric McNary, an ex-Army financial management technician who has had difficulties adjusting to civilian life and finding employment. He received a 2009 Toyota Camry, which will help his commute to a new job at Bank of America. ■ Diana Cuesta, a former Air Force sergeant, did not expect to be a single parent, homeless, with five children. She has now found employment and a home, and with a 2010 Kia Forte from Caliber Collision’s Recycled Rides, will be able to better provide for her family. ■ Freddie Nash, a former U.S. Navy seaman, had a steady career as a plumber until an injury left him struggling financially. He received a 2008 Lincoln MKZ, which will help expand his employment opportunities. ■ Daniel Escamilla, a former Air Force traffic controller, was comfort-
ably providing for his family until his employer of 15 years sold the company and left him unemployed. With just one vehicle, his wife often waits up to four hours after work for a ride. Their Recycled Ride gift, a 2001 Infiniti OX4, will help ease transportation challenges for Daniel, his wife and nine grandchildren. This year’s recipients were nominated by Allies In Service and Attitudes & Attire, two local Dallas/Fort Worth veteran support organizations. “Having access to reliable transportation is often the single most important resource many families need to get back on the road to financial stability,” said Steve Grimshaw, CEO of Caliber Collision. “Through our Recycled Rides program and gifting at the 2014 Carry The Load event, we have the opportunity to restore the meaning of Memorial Day while providing four military veterans in need with vehicles that can help restore them to the rhythm of their lives.” Since starting its Recycled Rides program in 2012, Caliber Collision has donated more than 30 vehicles to military veterans and others in need. The company plans to donate more than 20 vehicles in 2014.
Employee, 23, Killed at Baton Rouge Upholstery Shop A talented young automotive audio tech was gunned down the night of June 1 at the auto body shop where he worked on Greenwell Springs Road, leaving friends, family and detectives searching for answers. Nicholas Brumfield, 23, was shot and killed about 10 p.m. at Red’s Auto Upholstery, where he installed car audio systems. Baton Rouge police found Brumfield inside the business. He had been shot multiple times, said Cpl. Don Coppola. Police do not have a motive or suspect in the shooting, Coppola said. Coppola said he could not disclose how many times Brumfield was shot, but friends and co-workers standing outside the business said Brumfield had been shot about seven times, including several times in the head. The owner of Red’s Auto Upholstery, who did not provide his name, said he along with a few other people were at the shop when Brumfield was shot, but he was in the back of the building and Brumfield was in the front when the shooting occurred. Baton Rouge Police have asked the public to contact them with information at 225-389-3948.
Fred Haas Toyota World Wins Third Toyota Certified Collision Center of the Year Award
For the third year in a row, Standox® is pleased to congratulate Fred Haas Toyota World in Spring, Texas, for being named the 2013 Toyota Certified Collision Center Triple Crown winner in the large shop category during the spring ceremony.
from customer satisfaction, business ethics, employee training, shop proficiency, facility, tools and equipment to safety and environmental considerations. “Winning again for the seventh time reinforces our commitment to continue to repair a customer’s car right the first time,” said Jeff Debner, Fred Haas Toyota World Collision Center Manager. Fred Haas Toyota is a proud user of Axalta Coating Systems’ Standoblue® waterborne basecoat system, which is part of the Standox® family. “Year after year, Fred Haas Toyota World Collision CenStandox Congratulates Fred Haas Toyota World ter continues to shine. By The awards are presented to the combining the Toyota Certified program top Toyota Certified Collision Centers with innovative equipment and highly in the United States to recognize a trained personnel, Fred Haas continues shop’s commitment to excellence, re- to be a leader in our industry. We are expair quality and customer satisfaction. tremely proud of the entire collision Nationwide, there are more than 1,200 team there, and we are pleased they use Toyota Dealers and nearly 200 of Standox paint,” says Matt Robertson, them competed in the Toyota Certified Axalta Coating Systems Refinish Sales Collision Center award program. Director, North America. The criteria used to judge the For more information about Stanworthiness of a Collision Center in- dox, visit www.standox.us or call 1-800clude excellence in standards ranging 551-9296. 6 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 7
Thieves Threaten But Don’t End Tulsa Shop Owner’s Dream to Open a New Business Robert Rentie has been trying to open his own paint and body custom shop on Admiral Place near Harvard, but a burglar has tried to steal that dream. The sidewalk outside Rentie’s shop was covered in glass, where someone busted through the window to get inside his fledgling body shop. “You know, I haven’t even got the shop yet and everything broken into, everything stolen. All the copper wire in this building, gone. No electricity,” Rentie said. With glass shattered and the shop in disarray, Rentie knew someone had broken in; leaving behind a bike, backpacks and batteries. It took a second look for him to realize that all of the building’s copper wiring was also missing. Now he can’t get power. “Trying to make ends meet and can’t even survive out here. Everybody’s stealing your stuff,” he said. Tulsa police say the burglar took
about $5,000 worth of tools and copper. Rentie says the theft won’t slow him down.
“I’ve been doing these cars for 10 to 15 years. My family started out with a salvage yard and I been in the paint and body and custom cars for a long time,” said Rentie. “You can’t hold a good man down. So I’m going to keep trying.” Police told Rentie several other businesses along the street have been broken into. Copper was also taken from those buildings.
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ABAT
contributing factor to the positive reception they received this time around was “the fact that PartsTrader had begun to be implemented, and these local shops were truly beginning to see that we had better join together or the insurance companies were going to continue to control more and more of our businesses… [Neal and I] basically capitalized on the opportunity that presented itself with shops from all over East Texas being present.” For the past three months, Richards has been working with his local attorney to set up the Corporate Filings for the new association, yet a handful of shop owners have contributed to organizing ABAT. “This would not be happening if not for the enthusiasm and excitement shared throughout our region. Everyone has been more than willing to assist and contribute when asked. It’s really been more about spreading the word, and once others hear about what is happening, they know that they are not alone and begin to realize that together we can truly take back our busi-
ness for the best interest of our customers and the industry as a whole,” Richards states. Richards and those involved with organizing ABAT are also grateful to John Mosley of Clinton Body Shop and Doug White of Capitol Auto Body for donating their personal time and funds to travel from MS to TX to address shops about the benefits of an organized auto body association in a second meeting held to gauge interest in ABAT. According to Richards, “their presence, being from an outside area, really motivated others to get involved.” Though ABAT was originally going to be called the East Texas Auto Body Association, they were unable to obtain the name, opting instead for ABAT which Richards feels “was just meant to be… [it has been] fitting as we have received interest from shops and vendors throughout the state. We welcome members from all over Texas.” While ABAT is still in development, Richards notes that their main goal thus far is to “take back our shops. We repair vehicles, and insurance companies sell insurance; it’s that simple! Who knows better and is more quali-
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fied to make these repairs than us? We work for the customer, so it is our responsibility to properly repair and restore their vehicle to pre-accident condition.” ABAT will also strive to provide more education, both from a technical standpoint and as it pertains to shops’ rights without solely relying on what insurers mandate. Along with that, ABAT plans to investigate legislation that will promote beneficial change for the consumer, rather than the insurance companies whose focus is on saving money. Richards add, “we will address more concerns legislatively as we progress as an association and begin identifying specific issues. For example, profit margins have decreased over the years, and we must become more profitable in order to provide the training and equipment necessary to perform repairs to the ever-changing technological advancements on today’s vehicles – and that can honestly be accomplished by being compensated for all repairs and processes that must be performed (not just the hand-picked operations that insurers want to pay for).” Since their initial meeting early this year, Richards has been very
pleased with the number of repair professionals who have expressed interest in ABAT. “The response that we have received has been more than I could have imagined. Going back to just six months ago, I felt like I was on an island by myself, and now I have more faith and excitement about the future of our industry than ever. We will put the customer first, and everything else will take care of itself; good things are about to happen!” Smith also took time to speak about the upcoming meeting, and he is excited to speak at ABAT’s meeting with the “intent to generate excitement and to enlighten and edify Texas repairers in several areas.” Smith plans to discuss three main topics, including Federal Antitrust Laws, Procedures and Labor Rate Surveys. To begin with, he explains that o Federal Antitrust Laws “are fairly simple, yet often misunderstood, and have been used in the past to stifle conversation between repairers out of fear of punishment. I will be giving a layman’s overview of the true nature of the laws, why they exist and how to avoid breaching them regarding what can and cannot be discussed. Federal antitrust laws exist to promote and pro-
tect competition. They are to govern the activities of businesses in our country and are designed to be safeguards against activities that may be harmful to the consumer, business competition and the economy.” “Procedures are also an important topic because many required repair processes and necessary materials go unpaid, and these overlooked and often omitted processes and create significant liability issues for the repairer that need not occur.” Smith plans to highlight these important aspects of the business operation and how to avoid these unnecessary liabilities. He will also be introducing the Variable Rate Survey (VRS) program offered by the National AutoBody Research, Inc. which “provides a viable and labor rate survey to show repairers, consumers and insurers the range of labor rates based upon the individual rates and allowances of participating repairers in a given area. Ranges of labor rates from an area comprised of repairers within mere miles to participating repairers across the country. The VRS not only provides participants the labor rates of repairers within various markets, the program shows them in real-time and can change
based upon a repairer’s change in rates, training, certifications, equipment and such. This defeats those socalled surveys which lump all repairers together and provides the same labor rates for the best of the worst to the worst of the best!” As the President and Founder of Auto Damage Experts, Inc., Smith believes that one of the most valuable services his company offers is Repairer Consulting and Coaching for those who offer high quality workmanship and services. He states, “regardless of their size, all ADE consulting/coaching clients have the same fundamental characteristics in common: integrity and the courage and conviction to do the right thing for the right reasons. What we do is to help them to step outside the box that is often built around them by ‘interested third-parties’ and to see things in a more common sensical and pragmatic manner. This enables them to modify their business acumen and methods of conducting business which is found to be much more profitable and enjoyable.” Smith hopes to share his experience in this area at ABAT’s meeting in order to aid this developing association and its members.
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A Note of Appreciation from Leo Kozadinos, HABA President, to Those Supporting HABA Dear Friends,
On behalf of the Houston Auto Body Association, I want to thank everyone who attended our 4th Annual Appreciation Event and hope you all had at least as much fun attending as we did putting it on! I especially want to thank our event sponsors, TASCO Auto Color, Enterprise Rent A Car and FinishMaster, without which this event would not have been possible. Now, it's back to business and, as always, there is never a dull moment as we forge ahead with new challenges materializing daily. Juggling ever-increasing customer, employee and insurance expectations as vehicles continue to evolve and qualified staff becomes harder to find,
one thing remains crystal-clear; our association will become more important than ever in helping us meet these challenges head on. Remember, any organization is only as good as the people that show up to participate. I challenge you to become or remain an active member of our association and help shape it into the best trade association and consumer advocacy group it can be. Our next meeting will be held on July 8th. We will let everyone know once the location and time have been determined. Sincerely,
Leo Kozadinos Houston Auto Body Association President
Man’s Auto Insurance was Canceled Before Accident, Sues Title Company As Insurance Agent An auto title company and one of its employees are being sued by a customer for allegedly failing to transmit payments he was making to them to his auto insurance agency, which resulted in his policy being canceled before he was involved in a hit and run accident. Enrique Rico Almanza filed suit against Karen Rosales and Latino Auto Title LLC in the 24th Judicial District Court on May 6. Almanza alleges that he visited Rosales and Latino Auto Title to purchase auto insurance during which time he paid $202 to Rosales, a portion of which she used to pay for an insurance policy from LIFCO. The plaintiff claims the next month he gave another $202 to Rosales, part of which was to go towards his insurance premium, however, his policy was canceled for non-payment a few
days later. On Aug. 5, 2013 Almanza asserts he paid another $202 to Rosales and that almost two weeks later his truck was damaged in a hit and run accident. The plaintiff alleges that when he made a claim to his insurer it was denied because the policy had been canceled. Almanza claims Rosales and Latino Auto Title had an obligation to place his insurance order and to notify him if the insurance could not be obtained. The defendant is accused of breach of contract. An unspecified amount in damages is sought for penalties, attorney fees, legal costs and legal interest. Almanza is represented by attorney Larue Haigler III of New Orleans. The case has been assigned to Division M Judge Henry G. Sullivan Jr.
Uninsured Driver Sued By State Farm
State Farm Mutual Automobile Insurance Company is suing an uninsured driver who allegedly caused a serious auto accident with one of its customers who then tried to flee the scene and responding law enforcement officers. State Farm, as subrogee of Paul Simmons Jr., filed suit against Nancy M. Davis in the 24th Judicial District Court on May 1. State Farm claims that on April 17, 2012 its customer Simmons was driving his 1988 Chevrolet Caprice at the intersection of Lapalco Boulevard in Marrero when he was broadsided by Davis who was driving
a 1996 Dodge Dakota. State Farm asserts that a passenger in the Simmons’ vehicle was injured and needed medical treatment after the accident. The defendant is accused of operating her vehicle in a careless and reckless manner, failing to maintain proper control of her vehicle, failing to see what should have been seen and failing to maintain a proper lookout. An unspecified amount in damages is sought for an injury settlement. State Farm is represented by attorney Charles S. Green Jr. of New Orleans. The case has been assigned to Division H Judge Glenn B. Ansardi.
10 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
Motorists Still Filing for Hail Repairs After April’s Dallas-Area Storm April’s hail storm that hit mostly the northern suburbs of Dallas may seem a distant memory, but many drivers are still paying the price.
Driver’s are still seeking repairs after April storm
“We can definitely see our ‘in process’ [repairs] pick up,” Dan Michaelis of Service King Collision Repair, with dozens of locations across D/FW. “On an average, we’re running about a million dollars more in revenue per month because of the hail. We can attribute that directly to the hail.” The storm back April 3, 2014, lasted a few hours. Torrential rains accompanied heavy, painful hail that poured right through skylights at a Wal-Mart. Those caught in the storm ran for cover, left to watch one car after another get slammed
by hail. Insurance claims for the dented-up vehicles continue to add up. The Insurance Council of Texas has put a half-a-billion dollar price tag on hail damage, with 45,000 claims filed in the past two months. “We have been very busy. My office, personally, was overwhelmed that first morning and has continued to see multiple claims every day regarding these claims,” said Stephanie South, an insurance agent for State Farm. She expects the number of claims to continue to grow with many insurance companies giving policy holders more than a year to file a damage claim. “It will take, I would say a year, for us to see the full magnitude of what we have on our hands,” South told local news.
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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 11
VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition unique vehicle, but while it’s easy to match these labels to a specific vehicle Whether you’ve struggled with the on the production line, manufacturers need to replace automotive VIN and are not equipped to replace a single safety labels or if you’ve never given custom label after the car leaves their them a second thought, the fact re- plant. That’s where AutomotiveID mains that federal law mandates these comes in! Automotive ID launched in 2007 labels be permanently affixed to every to fill this need within the collision repair industry. One-of-a-kind VIN and safety labels were not being replaced and, at best, were being cut out and stuffed in the glove box. The company’s sole business is the production of these unique Installing a replacement Tire & Load label will ensure your VIN and Safety certification customers know how to maintain their vehicles and conlabels, and AutomotiveID tribute to their overall safety supplies collision repair favehicle, yet they’re the part least cilities in every state in the U.S. as likely to be fixed during a repair! well as throughout Canada. Manufacturers rely on both the safety As a provider of aftermarket aucertification label and the tire-and- tomotive labels to the collision repair load label to convey important safety industry, AutomotiveID produces information to drivers. These labels high-quality labels for all makes and are customized with the VIN and models of cars and light trucks, almonth/year of manufacture for each lowing their replacement to go from by Chasidy Rae Sisk
12 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
nearly impossible to one of the easiest tom VIN and Safety certification laparts to replace. Beyond the simple bels. Besides the safety factors menneed to restore a vehicle to its pre-loss tioned, AutomotiveID’s labels also condition, replacing these labels is im- help consumers maintain the value of perative because they instruct drivers their vehicles as appraisers typically on how to handle and maintain their vehicles, including tire inflation recommendations and load limits, both of which are extremely important since ignoring these ratings can lead to dangerous wrecks; this is why the National Highway Transportation Safety Administration (NHTSA) insists the information contained on these labels AutomotiveID’s replacement BMW certification label contains the same information as the manufacturer's original is critical to public safety. For collision repair facilities, the discount trade-ins with missing labels since the absence of these labels limit benefits of restoring a vehicle to its their knowledge of the vehicle. pre-loss condition by using AutomoAutomotiveID’s replacement lativeID’s labels is obvious, but because insurance companies also recognize bels fulfill many needs to the benefit of the benefit of maintaining the safety all vested parties. In addition to providof their customer’s vehicle and the ing federal regulation compliance of repaired vehicles, these labels preserve value of their own insurable interest, the value of the vehicles, provide necshops can finally get paid for doing essary tracking information, and supply the right thing and replacing these cus-
the repair facility with incremental revenue and compensation on work for which they haven’t traditionally received payment. Each party in the collision repair industry has different, yet valid, reasons for recognizing the importance of replacing vehicle labels, but the predominant concern relates to public safety, and AutomotiveID’s services undeniably contribute to this factor. AutomotiveID offers a complete line of automotive labels, including certification, service parts, tire and loading, emission control, paint and trim, anti-theft and all other aftermarket labels that are typically difficult to find. All of their replacement labels meet the standards set forth by the NHTSA, and AutomotiveID enters all information by hand to ensure accuracy as part of their thorough process of quality control and independent verification procedures. So how do you order replacement labels from AutomotiveID? Easily because it’s all done online! Simply visit their secure website, complete the order form, and upload a photograph of the original label. AutomotiveID will enter the necessary information and print a new label which you can receive as early as the
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John Borek Takes Aggressive Action, Files Trespassing Complaints Against Argumentative Appraisers by Alicia Basteri
John Borek, general manager of Autocraft Bodywerks Inc. in Austin, TX, has resorted to filing four criminal trespassing complaints against insurance appraisers. On average, about four insurance appraisers come into his shop every day. Occasionally, an appraiser will find fault with the logic behind certain repair estimates. Borek said that he usually John Borek points out the manufacturer’s specifications when this happens and prints them out for the appraiser on the spot, which tends to mollify their concerns. However, he sometimes gets an appraiser who still wants to argue. According to Borek, most of the appraisers who want to argue are young and have never worked on a car in their life. Having worked on cars for over 30 years himself, this can be frustrating, to say the least—not to
mention a waste of time. So, when he gets a particularly argumentative appraiser, he calls his manager after the third incidence. If it happens again, he files a criminal trespassing charge. Once the appraiser has been served papers, he’s not allowed on the property. If he violates the order, he could be arrested and fined. Borek hasn’t had to have an appraiser arrested, although he said they did serve papers to the wrong guy once—a father with the same name as the son who worked at the same insurance company. Now, it costs money to file a criminal trespassing charge, he has to hire a lawyer, etc. This isn’t something that he wants to do—it’s a last resort. And it’s a last resort that he’s only implemented four times in 30 years. This strategy has worked for them. Borek told Autobody News that he has received calls from body shop employees all over the country saying that they ‘wished they’d thought of that, way to go, etc.’ Maybe his self-proclaimed out-of-box thinking is setting precedents in the industry.
www.autobodynews.com | JULY 2014 AUTOBODY NEWS 13
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LaCIA Meeting
Lynn Lejeune welcoming attendees and leading the group in prayer, followed by Vice Chairman Derek Stubbs who introduced LaCIA’s Board of Directors and discussed some of the association’s goals and accomplishments. When Caldwell was introduced, he assured the group that he and his team are working diligently on resolving the collision repair industry’s issues, and he provided an update on their progress thus far. Because State Farm is the largest insurance company in LA and all other insurers follow their lead, he first set his sights on this insurance giant, learning that they did put up the money for PartsTrader. His office has also begun a Civil Investigation Demand where the Attorney General orders the insurance companies to produce documents which they would not ordinarily produce in a regular deposition, such as surveys and internal policies; he also pointed out his finding that insurers aren’t even attempting to hide the fact that they are steering their customers to DRP facilities! Although his office is still in the discovery stages of the process, the At-
torney General’s influence in itself is beneficial to legislative initiatives since politicians are less apt to ignore their pleas for help. They also plan to produce some ad campaigns to advise consumers to read their insurance policies and encourage them to understand their rights during the repair process. Attorney
several matters, beginning with the fact that he cannot comprehend why any repair facility would willingly join a DRP since he can find nothing in those agreements that benefits the shops whatsoever; his feelings about PartsTrader are the same. He noted that by signing those agreements, it was like relinquishing
LaCIA’s Board of Directors meet with their guests (l to r): Chris Medine, Randy McLachlin, Alysia Hanks, Derek Stubbs, AG Buddy Caldwell, Lynn Lejuene, Asst. AG Randy Ishee & Pat Graham
Stacy noted that the Attorney General’s office may also look into possible tax evasion on the part of the insurance companies. Despite this progress, Hanks cautions “it will take a while to get this situation we find ourselves in today resolved, or even to see any movement on it. We did not get into this situation overnight, and it won’t go away that fast either. We need to have patience.” Next, Ishee updated attendees on
ownership of the shop to the insurance company. Furthermore, Ishee emphasized that the repair professionals are responsible for properly fixing their customers’ vehicles, plus if a shop has a signed work authorization from the customer and the insurer sends their vehicle to another facility, that is a breach of contract for which they can be sued. The Louisiana Attorney General’s office is working with several other At-
torney Generals throughout the South, and they have also reached out to their state’s Insurance Commissioner’s office to inform them that they will be pursuing State Farm, with or without the Commissioner’s support. Hanks recalls, “they wanted to make it clear what their main objectives were, and that was to attempt to get rid of DRPs, to get things changed through legislation, and to make sure everyone knows the law on both sides. They want insurers to stick to what they do, which is writing policies, and let the body shops do what they do, which is fixing cars. They believe the insurers shouldn’t have their hands in our businesses.” After the Attorney General’s presentation concluded, several additional speakers provided updates on some industry trends. Abel Cantrell of Advantage Collision Center in Houma LA spoke about who really owns your shop, you or the insurance company, and he also distributed instructions on “How to Use Twitter” so no one has an excuse not to get connected to other shops. Ray Gunder of Gunder’s Auto Repair in Lakeland FL discussed how insurers pushed him to the edge and why he started suing them to get things done, See LaCIA Meeting, Page 17
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Aftermarket Parts Sellers
dees at the ABPA event that having grown up in her parent’s Baton Rouge business, Felder’s Collision Parts, she has a good understanding of the issues facing the non-OEM parts industry. “This industry hasn’t had a real friend in Congress,” Felder said. “For many of you who have been to the legislature, who’ve been up there trying to get some of these bills passed, fighting against some of the things that affect you, there aren’t a lot of real friends to the industry there, not a lot of people there who really understand this industry. And so it’s really important for you to pay attention to this race, and I’m asking for your support in this race.” One of the issues Felder mentioned she would go to Congress understanding is the “PARTS Act,” an ABPA-supported bill that would slash automaker design patent protection from 14 years to just 30 months. Felder also discussed the “devastating” impact that automaker parts price-matching programs have had on her parent’s business and others in the
non-OEM parts industry. She said she drafted the lawsuit that Felder’s Collision Parts filed in 2012 against General Motors, alleging that General Motor’s “Bump the Competition” price-matching program was an illegal predatory pricing scheme designed to drive nonOEM parts distributors out of business. (A U.S. District Court judge dismissed the case in April, but Felder’s Collision Parts has filed an appeal of that decision. See Autobody News June 2014 issue.) Felder asked ABPA members to support her campaign to represent Louisiana’s 6th Congressional District. She is seeking financial contributions (www.cassiefelder.com) both from individuals and through business political action committees. “Obviously there are a lot of issues that are going to be affecting my district,” Felder said. “But this industry has been so important to me and my family, that this was absolutely one of the industries I wanted to target.”
State Legislation Discussed State legislation related to non-OEM parts was also the focus of another presentation at the ABPA convention in Austin. Ray Colas, director of gov-
ernment affairs for LKQ Corporation, told the non-OEM parts suppliers that the body shop industry seems reinvigorated. “PartsTrader is something that has motivated them, not only through legislation but also litigation,” Colas said. “With that momentum, they’re throwing us under the bus as well.” In the past, Colas said, most of the legislative challenges to aftermarket parts came from automakers. “But the body shops have really taken it over,” he said. “Now the automakers are supporting the body shop association initiatives.” Colas talked about a number of bills his company successfully lobbied against, including one introduced in Maryland last year that would have prohibited the manufacture, sale or installation of a counterfeit or substandard airbag. “Some of you may wonder: Why are we concerned about airbags? There are no aftermarket airbags,” Colas said. “Well, that’s true today. That doesn’t mean that in the future they may not exist. So we want to protect that market today in case in the future there is an opportunity for that. We don’t want to be restricted from
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selling any alternative part.” Colas said after a “long, drawnout fight” and “a very, very close call,” aftermarket parts supporters were able to convince Maryland lawmakers this year not to pass a bill that would require insurers to pay for new OEM parts for repairs to vehicles manufactured within the previous three years. “Jordan Hendler (executive director of the Washington Metropolitan Auto Body Association, which backed the Maryland legislation) has done a great job educating these legislators, meeting with them year after year,” Colas said. “It’s something we really want to keep an eye on.” A lawmaker in Iowa also needed to be “re-educated” about the aftermarket parts industry, Colas said, after he introduced at the behest of body shops a bill that included a provision similar to the one in Maryland. Colas said that lawmaker’s district includes an LKQ facility. “We got there and told him, ‘Hey, you’re really going to affect our business,’ ” Colas said. “This is how many jobs we have in your district.” Colas said the Iowa bill also included provisions prohibiting an insurer from recommending a shop without
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also telling the customer they aren’t required to use a recommended shop, and from requiring a shop “to use a specific vendor or process for the procurement of parts or other materials.” Colas said those provisions will likely be included in a future piece of legislation. “There will be a bill that’s reintroduced, but it will not include the aftermarket parts restriction,” Colas said.
PartsTrader addresses questions Ken Weiss, director of business development for PartsTrader, also spoke at the ABPA convention, just days after his company completed national roll-out of its system, now reportedly used by more than 7,500 body shops and 8.500 parts suppliers. Weiss said that by the end of this past April, parts lists from more than 700,000 estimates had been put out for quote through PartsTrader, and more than 1.25 million orders totaling more than $450 million had been placed through the system. Weiss said although State Farm “is a little bit restrictive with regard to aftermarket parts,” he expects nonOEM parts orders through the system to increase as shops use PartsTrader for non-State Farm jobs.
He cited a number of benefits that PartsTrader offers suppliers, including “increased sales opportunities and fewer parts returns.” However not everyone at the ABPA convention agreed with Weiss on this last point. “We have not noticed a lower return rate on (parts ordered through) Ken Weiss PartsTrader versus phone calls versus faxes versus anything,” Bob Petty of Collins Collision Products in Loveland, CO, told Weiss. “Our return rate is higher than it’s ever been in the history of the company.” Petty also asked if returned parts are taken into account in the fees PartsTrader charges to suppliers, which are based on average monthly sales. Weiss said they are, provided that parts purchased through the PartsTrader system are also returned though the system.
“We all know the games today where repairers will buy multiple parts, sometimes just to get a receipt that they can show somebody else, and then return the part,” Weiss said. “With the PartsTrader system, you can only buy a part once unless you return it. Then you can buy the part again from another supplier. So we think that will avoid some of the games and will help bring down the returns.” Weiss was asked if there’s a way for a shop to bypass the system to return a part. “Only if you let them,” Weiss told the parts distributors. “If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return.’ If they don’t want to return it through the system, then, I hate to say it, but they are probably up to no good.”
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Continued from Page 14
LaCIA Meeting
nothing he has not lost a case because “right is right!” Next, Mike Parker of Parker Auto Body in West Monroe LA shared the measures he has taken to maintain control of his business which includes installing video and audio surveillance in and around his shop as well as a module to record every call made to or from his business. LaCIA’s Board of Directors is very grateful to all of their guests who spoke at the meeting. Vice Chairman Derek Stubbs stated “we have to be excited about the turnout and have to keep the momentum we are establishing going in a positive direction and not let it slip away.” Board member Pat Graham believes the Attorney General and his staff “had a very positive vibe that I think was felt by everyone.” All in all, Hanks believes the meeting “was an incredible success! We are taking back the industry ladies and gentlemen!” LaCIA will hold their next meeting on July 8 in Lafayette. www.la-cia.com
www.autobodynews.com | JULY 2014 AUTOBODY NEWS 17
Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the ‘Most Influential Women’ Program to WIN The prestigious Most Influential Women in Collision Repair (MIW) Awards were presented to three women during a celebratory dinner in San Diego during the Women’s Industry Network (WIN) Conference. The MIW Awards recognize women who have enriched the collision repair industry with their leadership, vision, and commitment to excellence. Doug Holmberg, representing AkzoNobel, formally transitioned the MIW program to Margaret Knell, Chair of WIN, by giving WIN a framed issue of AkzoNobel’s Profit Magazine with a commemorative note officially marking the transition. Profit Magazine has highlighted Most Influential Women honorees since inception of the award. This year’s honorees were Frederica Carter, President of F. Carter Events, LLC; Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association; and Leanne Jefferies, Director of Collision Programs at AIA Canada. Each honoree was introduced by an industry peer and former MIW who nominated them for the award. In a welcome message, Knell thanked those being honored as well as award recipients from prior years, “for your visibility and ongoing
example of most influential women in the collision repair industry by your leadership, vision, and commitment to excellence—both in your professions and in your communities.” She then recognized AkzoNobel for their vision
Margaret Knell and Doug Holmberg
and elevation of the societal issue of the advancement of women in the collision repair industry. The recognition program's charter aligns with WIN’s mission to ‘enhance the role of women in the industry’ and has recognized more than 75 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. Honorees have held positions in every facet of the collision repair industry, as shop owners, body and paint technicians, man-
CARSTAR Sees Record Revenue in 2013, Plans Expansion of HQ in Leawood, KS CARSTAR brought in a company record $641 million in revenue in 2013, an increase from its $603 million in revenue in 2012. CEO David Byers said the company's 2013 same-store sales were up by 17 percent from 2012 and Carstar added 45 more locations to its multishop operator network in the United States and Canada. Byers said the unusually poor winter weather, which lasted well into 2014, and the increasing complexity and cost of repairs to automobiles buoyed the company in 2013. He expects the company's strong same-store sales to drive the company to record revenue and store additions in 2014. “We expect to break the records from last year again in 2014,” Byers said. “Based on the fact that we're seeing that 17 percent same-store sales number, that's an indication that the business and the industry is performing extremely well and we have no reason to believe that that is going to subside in the second half of the year.” With increased revenue, Carstar is looking to add new senior staff. Byers said the company is recruiting a new chief information officer and a
new vice president of business development. It is also looking to add new technical resources at its new headquarters at the Pinnacle IV building in Leawood. It relocated from Overland Park in December 2013. Byers said Carstar chose to locate its call center in existing Canadian operation instead of building a new call center in the Kansas City area. Byers said the continuing consolidation of the collision repair industry positions his company well for long-term growth. Over the last decade, Byers said, the number of independently-owned collision repair centers dropped to 35,000 from 80,000. He said the flow of private equity money—Carstar is owned by San Francisco-based private equity management firm Champlain Capital Partners LP—encourages independent shops to sell or join a larger franchising company. “(Independent shops) have two choices: they can sell to one of the consolidators or ... they can join a franchise network like us. Those are really the only two choices they have,” Byers said. “We find we're in a very good growth position because, as the industry continues to contract and consolidate.”
18 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
agers, wholesalers, lobbyists, suppliers, insurance adjusters, consultants, educators, editors and writers, and industry association directors. Established in 1999 by AkzoNobel, WIN assumed management of the MIW program in 2013. The Most Influential Women program has supported the industry by funding scholarships for prospective female students interested in pursuing a career in collision repair. “The Women’s Industry Network has, in a very short period of time, become a pillar association within the North American collision repair market,” said Doug Holmberg, Director of Vehicle Refinishes for AkzoNobel Automotive & Aerospace Coatings North America. “It was both a pleasure and honor for AkzoNobel to be part of the 2014 WIN Conference and formally transition the Most Influential Women in the Collision Repair Industry program from our stewardship to WIN for their continued mentoring. WIN will be able to advance MIW and create sustainable resources to the full benefit of the entire collision repair industry.” To learn more about WIN and the MIW Awards, or to see a list of past recipients, visit http://thewomensindustrynetwork.ning.com.
Fix Auto Acquires Alaska Shops
Fix Auto USA continues expansion in the Western United States with the introduction of five locations in Alaska, bringing the total number of Fix Auto franchises to 59. This marks the first time Fix Auto has ventured into the Alaskan market. “We’re ecstatic to join this elite and exclusive brand of high caliber operators as we adapt to shifting market dynamics,” said Tony Stanley, who along with his wife Mel are the owners of the Fix Auto Alaskan franchise group, formerly Driven Auto Body.
AMI to Honor New Managers
The Automotive Management Institute (AMI) will honor its 20th class of Accredited Automotive Managers (AAMs) with a formal cap and gown ceremony on Aug. 1 during the new Industry Week 2014 July 28-Aug. 2 at the COBO Center in Detroit. The AAM designation is awarded after they successfully complete coursework and earn 120 credits of management education. More than 1,700 individuals have earned the AAM designation and approximately 100 new graduates are added each year. For more go to www.AMIonline.org.
www.autobodynews.com | JULY 2014 AUTOBODY NEWS 19
Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion by Ed Attanasio
Kevin Walli has been the lobbyist for the Alliance of Automotive Service Providers (AASP-MN) for the past 20 years. He is a shareholder in the law firm of Fryberger, Buchanan, Smith and Frederick in St. Paul, MN. We got in touch recently to discuss the recent history of legislation that has impacted the collision industry in Minnesota in the past five years.
Q: How did you become the lobbyist for the AASP-MN? KW: I’ve been representing the collision industry in Minnesota for 20 years now, after working in government affairs for many years prior to that. A friend of a friend knew someone at the AASP-MN and told me they were looking for some representation and more support at the Capitol. Over the years, we’ve been working hard to provide more balance between the interests of the collision industry and the insurance industry, because there’s an ongoing tug-of-war there obviously. I believe that there has been a constructive approach by the two industries to try and
communicate with one and other. So, what we’ve done for several years running is that we sit down usually a few times per year to air out our issues and sometimes there’s a response from the insurance companies that indicates Kevin Walli, Esq. that maybe we can has been the lobbyaddress some of ist for the Alliance these issues ourof Automotive Service Providers selves. But in other (AASP-MN) for the cases, we end up past 20 years, so saying let’s agree to he’s seen the ongodisagree and arm ing tug-of-war bewrestle it out at the tween shops and insurers from the Capitol. Capitol’s front row
Q: You’ve dealt with legislation regarding steering? KW: Yes, and we’ve had some success with legislation concerning steering. We’ve been able to find more clarity on the laws dealing with steering, so that we can understand what steering is and provide some direction in the law. The purpose of the language is obviously to protect con-
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sumers from being steered and we’ve had some success with that. Steering has always been an issue and it still is in many ways, so we’ve developed legislation to address that. We sought language a few years ago to prevent an insured or claimant from being required to take their vehicle to a particular drive-in claims center and we were able to get that changed. We also added a section that restricts an insurer from specifying the use of particular vendors for the procurement of parts or other materials necessary to perform a satisfactory repair. Now this very issue is still being contested.
Q: There’s been a battle in Minnesota between the insurance companies and the body shops, because the insurers want the shops to use certain parts, products and management platforms, correct? KW: Yes, we had some legislation this year that we did not succeed with (House File 2690/Senate File 2542the Auto Repair Claims Processing Bill) that would have prevented insurance companies from dictating certain business practices at repair shops. I
think there’s a sense with the body shop owners in Minnesota that there are more and more situations in which insurers are dictating what estimating systems and materials they should use. And we’re concerned that it’s a slippery slope where the insurance companies will take away the autonomy of the collision repair shop owner. We had some proposed legislation that would have restricted insurance companies from specifying or requiring that repair shops have to utilize specific vendors, manufacturers, suppliers, business platforms or internal processes and we got the bill introduced and some great authors for the bill both in the House and in the Senate. But ultimately, we couldn’t get movement for the bill on the Senate side. The Chairperson there (Senator Jim Metzen, who was also a co-author of the bill) was uncomfortable with the onslaught of input he received from the insurance industry. Some of what they had to say was legitimate, and some was not, but that’s not unusual. When we proposed the legislation and it was circulating at the Capitol, the insurance industry came
forward and said that they hadn’t heard of this bill. They said “Hey—we’ve had this practice for several years of discussing legislative proposals with the collision industry in advance of the Legislative Session.” They argued that they hadn’t had such a discussion on this proposal. In addition, this year’s Legislative Session was shorter with very tight deadlines for getting bills heard, so that also played a role in the death of the bill. But, we’re going to bring it back in a new form, after getting some valuable feedback from the insurance side. They said that we were trying to kill the DRP system, which was never our intention at all. So, we have to address that issue and re-work some of the language the next time around, so that it’s clear we’re not trying to change the fundamental relationship that exists between body shops and insurance companies. Q: I imagine you haven’t been supportive of programs like PartsTrader? KW: Exactly, because our concern has always been that if a body shop is required to use a particular parts vendor, the shop doesn’t have a relationship or
a history with that vendor. As a result, parts that aren’t appropriate for the vehicle can enter the picture, because the communication between the shop and the vendor is not present. Shops spend a lot of time and effort to developed business relationships with particular parts vendors and then all of this goes out the door when they are forced to work with someone else they don’t know anything about. In addition, we have had an ongoing dialog with the Department of Commerce regarding its enforcement and there is an investigation that’s open in this matter and the Department of Commerce is continually gathering information about how PartsTrader system is working or not. We were hoping that the statute would provide enough guidance for enforcement action. But now they’re gathering information and studying the marketplace and as an industry we’re trying to provide information for the Department of Commerce in this matter. Some time ago, we also added language to the same statute that “prohibits an insurer from unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system…” This means, if you’re
using an estimating system that you and the insurance company have both agreed that it’s acceptable to use, then they can’t deny the repair operation and cost without some clear justification. This kind of shifts the burden to them and it’s now their responsibility to prove the repair practice should not be recognized.
Q: What other issues have you’ve tackled on behalf of the members of AASP-MN? KW: We had to deal with some tax provisions in recent years. There was a sales state tax on paint and supplies for shops when they were purchased at wholesale. But, we were able to shift the point of imposition on the tax from the wholesale to the retail level. That way, shops are able to pass that tax onto the consumer. The repair shops were eating that tax cost before. Most of the other states were already doing it this way and Minnesota was kind of an island in that regard, so the legislation was much-needed.
Q: You have an annual Legislative Day where shop owners can meet with their legislators, right? KW: We’ve been doing a Day at the
Capitol on occasion, where we meet with our members and give them an orientation of how things work at the State Capitol. Then, we ask them to talk with their Representatives and Senators and walk the halls to discuss the legislation we’re working on. The insurance industry is extremely wellrepresented and they have a lot very smart people working for them, both in-house people as well as consultants that they’ve retained. The sheer numbers can be rather daunting at times, to be honest. So having the shop owners converging at the Capitol and meeting with their Legislators puts a practical perspective on our issues--so it’s been a very positive thing. Plus, it helps me to do a better job for the AASP-MN, because after these Senators, for example, have met with one of their constituents, we can follow up to emphasize the point made by the shop owners.
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OH’s Three-C Body Shops Has Filed Over 100 Shortpay Lawsuits Against State Farm by Chasidy Rae Sisk
Three-C Body Shops, a four-facility, multi-shop operation in the Columbus OH, area, has filed multiple lawsuits against State Farm Insurance Company in an effort to recover alleged shortpay losses. Since November 2012, Three-C has filed 104 suits against the insurer, all of which accuse
Three-C Battles State Farm Over Estimate Discrepancies on Total Losses
State Farm of engaging in “repeated underpayments for services generally rendered and charged to their customers when their vehicles have been deemed total losses.” Currently, owner Bob Juniper is seeking $405,000 in recovery, including legal
fees and court costs, of which State Farm previously agreed to pay $31,565.03. Juniper notes that he rarely has problems with insurers refusing to pay the full cost of repairs because “we negotiate with them pretty well. We spend a little time with their adjusters and can generally get to where we need to be. We may not always get the full amount of our estimate, but we get close by compromising until we come to terms we can both agree on.” In fact, Juniper hasn’t experienced difficulty from State Farm in paying for repairs either. Three-C’s shortpay lawsuits are associated with costs related to vehicles that are deemed total losses which the insurer objects to paying. Juniper provides the following example: if the shop writes a $10,000 estimate on a car valued at $11,000 and the insurer’s adjuster estimates $4000 in damages, the shop has to perform many additional steps as part of the process of writing a thorough estimate. Moving the disabled vehicle, disassembly, taking inventory of parts, recycling hazardous waste, and performing a comprehensive
safety check to test for damages are just a few of the many steps needed in order to document the car as a total loss; however, when the adjuster returns to discuss the estimate and declares the vehicles to be a total loss, State Farm only wants to pay the cost of storage and a few minimal charges, though all of these processes are required. Other processes which Juniper feels shops should be aware that they can charge for include suspension checks, rough access, preparing the pack-totaled vehicle, glass clean-up, and labor. Meanwhile, Three-C has time associated with the estimate for which they expect (and deserve) to be compensated since they’ve lost time being involved with a job they aren’t being paid for, yet State Farm wants to pay only the minimum charges. Juniper explains, “our charges are necessary to offset our lost opportunity. When we’re working on these total losses, that’s time we can’t work on jobs where we could make money, but the insurer does not want to understand that—that’s why we have to sue them. Other shops also have to perform
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these steps, and they should ask why they’re not getting paid for all of their time and hard work!” Over the past three decades, Juniper has been an active voice in the industry, speaking out against insurers and their attempts to exert control over the repair process. “Insurers have been beating on body shops for many years. They used to just pay the bill, but over the years, they’ve decided that they don’t want to pay the labor times and rates. Instead, they want to argue about which steps are necessary because they are trying to control the repair itself. This industry has been beat down so far that many shops are going out of business; insurers have found the bottom on pricing and can’t push anymore because there’s nothing left. We have to charge them for our time because we can’t afford to work for free!” Though Juniper admits that his relationship with State Farm is currently less than perfect due to the pending lawsuits, he hopes that will change after matters are settled. He also believes that he is taking a necessary step towards preventing short-
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pays in the future. “Nationally, there are over 70 body shops with pending shortpay lawsuits right now, and we
Three-C Body Shops has specific areas to interact with and educate customers
need to win these battles to change things. With enough victories, maybe the insurers will change their behavior.” Three-C Body Shops asks their customers to sign documents, such as the Authorization to Repair and Assignment of Proceeds, to enable them to pursue proper compensation when the need arises. Juniper explains that they “involve the vehicle owner instead of dealing with the insurance company directly because the insurer is bound by a contract with the insured, but the problem is that many consumers don’t know the laws. Some
are savvy, but others don’t understand or want to be involved; that’s what the insurers take advantage of and the reason that lawsuits are necessary… It’s not convenient, but this still has to happen. I don’t see any other alternative.” A family-owned business since opening in 1956, Three-C Body Shops works on around 250 vehicles monthly, yielding $700,000 to $800,000 in sales. They have never participated in DRPs because when the insurers introduced these programs in the early 1990s, Juniper foresaw the negative aspects associated with them, predicting that they would start off good and get worse over time. Though he spoke out against DRPs, the industry moved forward, and he believes “most DRP shops now wish they’d never gotten involved, but we weren’t loud enough with our objections. DRPs have caused many body shops to go out of business. Once you’re dependent on them, you can’t afford to lose them—you’re unable to walk away because you’ve become reliant on the insurance companies.” Now, Juniper fears that insurers are using parts procurement systems, such as PartsTrader, to exert even more control over repairs, and he wor-
ries that insurers will take over parts distribution also, leaving shops as labor providers only and inhibiting them from supplementing their incomes with the price of parts. Because of this, many shops will be unable to pay some of their personnel, such as office staff, customer service teams and detailers, whose salaries aren’t paid by the estimates but by parts profits. “If the insurers absorb this discount, we won’t be able to afford these employees, so customer service will decline, and that will be the beginning of the next big problem for our industry,” Juniper predicts. Juniper notes that the industry did not stand up for themselves when
DRPs were developed and they have since regretted it; he believes the industry will really regret it if they do not step up to inhibit parts procurement as it will lead to poor customer service in the collision repair industry, forcing repairers into a position where they are not making any money and may be unable to pay their bills. He asks “when and where does the collision industry say no? Because it’s time!” A State Farm spokesman was invited to comment on these charges but declined due to unfamiliarity with the specifics of the cases. Autobody News will continue to invite comment on this story for future issues.
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Lean Operations
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Using an Outside Expert to Improve your Competitive Position with David Luehr
I received a call last month from a dear friend of mine on the West Coast. I’ll call him Paul here, but that’s not his real name. His voice was shaky and he was clearly upset. Paul told me that one of the big MSOs had recently acquired a shop just down the street from him and at first he wasn’t too concerned, but now he was extremely concerned. My friend has always ran a very good shop, so I asked him what he was so worried about to which he replied, “I hate to admit it, but these guys are better than I thought and I am losing business to them!” You see Paul’s biggest DRP provider put his new big MSO neighbor on the same program even though they are only a block apart! What’s more, Paul was told by his DRP coordinator that unless his shop improved its KPIs, his new neighbor was going to be receiving the lion’s share of the business. Paul’s story is not an isolated one. Knowing Paul, he will figure out
Welcome to the ALL NEW
a way to compete and win, but he is going to need some help. Everyone in the collision repair industry knows how challenging it has become. DRPs are demanding more, Consolidators are growing faster than ever, and profits are shrinking. The shops that are serious about competing in this game need to quickly improve their position in the marketplace by performing at unprecedented levels. This document is intended to show the reader that many of the advantages provided to large MSOs can be afforded to any shop serious about transforming their business through using an outside firm to provide many of the services. Organizations like Service King, ABRA, Boyd Group, etc. have systems in place that give them a very strong presence in many major markets in this country. These systems allow for consistent and predictable results in quality and customer serv-
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ice. These systems when combined with the footprint of the consolidators, gives them a very lucrative “seat at the table” with all major insurance carriers. While each MSO is slightly different in their approach to centralized resources, this is a generalized list of advantages that large MSOs have over the rest of us… ■ Assurance of DRP affiliation when opening new locations ■ Centralized Human Resource Departments ■ Centralized Accounting ■ Centralized Customer Call Center ■ Centralized Load Leveling ■ Centralized Management of I-CAR Gold Class ■ On-line training, Learning Management Systems, and testing ■ Self-managed DRP with centralized audit teams ■ Marketing Teams ■ Safety and Environmental Compli-
ance Teams ■ Proven workflow systems and accountability to make them work ■ Mass advertising and name recognition ■ Ability for employees to help other locations when needed ■ Stability and benefits are attractive to potential new-hires ■ Buying power Most small collision repair businesses must attempt to perform many of these functions, but are rarely able to perform all of them well, if at all. To remain profitable typical shop owner/managers must perform many of the functions that shop managers at large MSOs don’t have to deal with. The time that a typical shop manager would spend performing many of these functions is spared to the large MSO shop manager thereby providing them time to ensure that processes are being followed, quality and cycle time standards are being met and in
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many ways acts as an “auditor.” With these disciplines in place, it becomes very difficult to compete with these guys. In order to perform all these functions that are required, you would need to hire people that are experts in Insurance DRP Relations, HR, Accounting, Customer Relations, I-CAR Gold Class, Marketing and Advertising, Safety and Environmental Compliance, Admin Workflow Systems, Change Management, Lean, etc., etc., etc. I would bet in most collision repair businesses, at least one or more highly paid people would need to be hired to perform all of these functions which are currently not being performed well or at all. That could equate to $5,000 - $15,000 a month, plus benefits to hire who is needed to get all this stuff done! This of course would be considerably more if you have multiple locations needing these services. Solutions can be provided by an outside firm at a substantially lower price and be performed by experts that will ensure these functions are performed precisely. So in other words, you could get many of these functions at your shop performed both better
and cheaper than trying to do it yourself in-house.
A look at ROI Is it actually costing you money by not using an outside firm? In many cases, yes! Training & Coaching has been proven to increase a shop’s Key Performance Indicators substantially. Coaching and Training provided by qualified outside sources can have an immediate positive impact on both KPIs and return on financial investment. Even a modest 5% increase in productivity at a shop producing $100,000 in revenue can yield an additional $2,000 in gross revenue which in many cases is enough to pay for the outside services. There are many cases of shops experiencing significant gains in productivity and profitability that never would have been possible with the assistance of outside experts. Don’t expect quality outside services to be cheap, but look at it as an investment with a favorable ROI. Do your homework when hiring a business coach or any kind of outside service, these folks in many ways become a reflection of your business and will have an impact either positive or negative. You must be able to trust
them much as you would a new employee, so don’t feel you need to hire the first one that comes along. The old saying that the “Definition of Insanity is doing the same thing over and over and expecting a different result” is exactly what many shop leaders continually do. It doesn’t have to be this way. Quality of life for stakeholders at body shops doesn’t have to be so bad. We all need help, and there are resources available to provide support.
Resources Available: Business Coaching & Consultants ● General Business Consulting ● Admin Workflow Processes & Implementation ● Learning Management System ● Leadership Coaching ● Training Clinics
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If you would like more information, or a referral to a capable service in your area, feel free to contact me at dluehr@msn.com
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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 27
Historical Snapshot with John Yoswick
—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.
Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection 20 years ago in the collision repair industry (July 1994) If the collision repair industry does not get clearly focused on what the mission is, it will be doomed to dance to whatever tune the insurance industry wants. Probably something like that old AC/DC hit, “Highway to Hell.” Bill Clinton was elected president of the United States because he kept the country focused on the economy. (His slogan, “It’s the economy, stupid,” became famous. To win in their ongoing economic struggle with the insurance industry, collision repairers have to concentrate on the car owner. “It’s the car owner, stupid.” Collision repairers are too busy tripping over their own swords to realize that pleasing the car owner every time is a key to survival. Instead, many are more worried about pleasing the insurance companies. They claim that since it’s the insurance companies who are writing the checks, it’s the insurance companies they should be satisfying. Ultimately, though, it’s the car owners who write the checks. They, after all, pay the insurance premiums. I predict that in another 10 year, the American public is going to wake up and realize how monstrous a financial institution the insurance industry has become. – excerpted from editorial by Sheila Loftus, editor of Hammer & Dolly published by the Washington (D.C.) Metropolitan Auto Body Association, July 1994
15 years ago in the collision repair industry (July 1999) CIC’s “Research and Development Committee” is continuing its exploration of a ”new body shop operating model” to improve customer service and “cycle time” – the length of time between the accident and the time repairs are completed and the insurance file is closed. At the meeting in July, committee chairman Randy Stabler said the average repair claims process is 10 days – including four or five days before repairs begin. His committee, he said, is looking into ways to reduce the inefficiencies before repairs actually begin, including the current estimating process. “All of the things that are bottle-
necks in the repair process are a derivative of an inaccurate estimating system,” Stabler said. “The back-end repair process is never going to be efficient and accurate if we don’t start out with an accurate blueprint.” Among his committee’s initial recommendations are: - Improve the estimating systems so that they create that “blueprint for repair” in plain language easily understood by technicians and vehicle owners. “If the estimate is more than just an accounting of what we’re going to charge or pay to fix the car, I think we’re going to have faster cycle times, happier consumers and lower overall costs for everyone,” Stabler said. - Reduce inconsistency in parts names and labor terminology used by the estimating systems and vehicle manufacturers. - Eliminate confusion and inefficiencies by having insurers distribute their pricing guidelines. - Stop insurer “micro-management” of each individual repair charge. “Can you imagine someone going in for surgery, and the doctors finding something else that needed to be done but not doing it because they had to stop and call for authorization?” Stabler said. “That’s not an efficient model. ‘Pull it and we’ll come back and see the damage after it’s pulled’ is a flawed notion. That in the long run does not save the insurer or consumer money.” – As reported in The Golden Eagle. It was at least five years before the “blueprinting” aspect of “lean processing” was being widely discussed in the industry, and still 15 years later it is far from universally adopted by shops.
10 years ago in the collision repair industry (July 2004) The Collision Industry Conference (CIC) “Information Technology Committee” reported that rekeying estimates that shops could be receiving electronically from insurers is costing the industry an estimated $17 million or more each year. Based on a survey of 44 shop owners at a previous CIC meeting, the committee believes that about 28 percent of the 9 million auto claims require rekeying of estimates, which takes an average
28 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
of 21 to 33 minutes per estimate. Assuming a wage of $20 per hour for the shop employees rekeying the estimates, “that basically says there are 2.52 million estimates that are rekeyed each year by body shops, costing a minimum of $17.64 million,” Cindy Schnier, cochairman of the committee, said. –As reported in Autobody News, July 2004. In 2013, CCC Information Services and Mitchell International launched services that enable a participating insurer to enable shops not on that insurer’s DRP to download the insurer’s prepared estimate, eliminating the need for the shop to rekey the initial estimate.
5 years ago in the collision repair industry (July 2009) Shop owner response was mixed last week to the announcement by State Farm that it was no longer requiring its Select Service shops in California and Indiana to use OEConnection for electronic parts ordering.
Debbie Moore of Diamond Collision Services in Avon, Ind., said that despite some glitches with the system over the past year, it has eventually worked well for the shop. “We’ve been using it on all our orders, not just State Farm jobs, and will continue to do so at least for now,” she said. But a Southern California shop owner who asked not to be identified said State Farm’s decision came at an ideal time; his shop’s server had just crashed and he now wouldn’t have to reload the OEConnection parts ordering software on the replacement computer. “It’s kind of been a pain, and some of my dealers really didn’t want to mess with it,” he said of the parts ordering system. “You almost always had to do follow-up phone calls (to the dealer) with it, so if I have to do that anyway, I can do without it.” State Farm’s George Avery said See Historical Snapshot, Page 31
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On Creative Marketing Ding Day–A Marketing Tactic with Thomas Franklin
Shop owners with a shop in a metropolitan area see many vehicles with minor dings, dents, scratches and more, all around the city. Many of these drivers have tolerated these imperfections on their vehicle for weeks, months and possibly even years. Why haven’t they done something about these eyesores? Maybe the discomfort of driving around with these flaws simply hasn’t been great enough to motivate them to fix them. Or maybe they imagine the cost, not only in terms of money, but also in considering the inconvenience of being without the vehicle while it’s being fixed, is too great to bother. If a shop mainly relies on insurance or dealerships for work, this may not be an interesting marketing move. But if a shop seeks to bring in new customers and add to a database of marketing targets, this could be a real opportunity to increase the shop’s volume and potential volume of business.
In general advertising a collision repair shop is mainly done to make a shop’s name, location and reputation broadly known. When viewers of the ad may not have an accident for three or more years in the future, getting an immediate response is only a peripheral intent of the ad. But the advertising campaign I’m proposing here, aimed at a great many drivers with minor body damage, could produce an immediate volume of responses if handled right. The proposed ad should offer a “Ding Day Special.” The two vital aspects of the ad must be that it will be low cost, and with very little time commitment. For the bold shop owner, the ad could also offer “No risk—your money back if not completely satisfied.” Some owners might hesitate on this one, but statistically the no risk offer increases responses significantly. An additional attraction to be offered by the tech-savvy shop would be an
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
on-line inquiry and approximate estimate for potential customers. The prospective customer simply uploads a photo of the damage and the shop gets back to him or her with an approximate repair time and cost. To make the “Ding Day” routine work well, a shop must commit significant resources to getting vehicles completed and out quickly at reasonable cost. The real profit should not be in the limited scope of the minor repair. Instead it should be viewed as a sales opportunity. This is a chance to collect many customer information forms filled in with vital marketing information. It has to collect information on all vehicles owned by the customer’s family and employer and any other vehicles in need of repair. It should have his or her insurance agent and possibly organizations the customer belongs to that could be marketing targets. Filling in of the form can’t be simply handing it to the vehi-
RAY HUFFINES
cle owner, leaving him or her to omit many important marketing bits of information. The estimator or a welltrained front desk person should make certain most of the requested information is captured. And this is just step one in capturing this vital sales opportunity. While it may be possible to talk the prospect into bringing in another vehicle that needs repair right then and there, this could be shortsighted. In order to keep the turn-around time short, it could be better to solicit work on other vehicles with followup calls. If the customer was pleased with a quick turn-around, the estimator should get a welcome response when making the follow-up call. This call would also be an appropriate time to ask for permission to call the customer’s business and social organization connections to make the shop known to them. This tactic has worked well with Amway
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and Avon solicitors and builds an ever-expanding network of related individuals for marketing purposes. When there is reluctance to pass along phone numbers, these days asking for an e-mail address or even Facebook connection could get an easier response. Perhaps the greatest difficulty getting this tactic to work is the problem of where to advertise and how to reach the greatest number of prospective customers. Today print ads have limited value as people turn away from printed newspapers and get their news on-line. TV ads are generally too expensive, but radio ads could be a real possibility in some areas. Online ads are essential.The ad has to be direct and simple. It should start with the key question: “Are you tired of living with that ugly dent, ding or scratch on your vehicle? For a limited time we are offering a very low-cost, fast turn-around repair to restore your vehicle to its original beauty. And we’re located close enough for you to drop your vehicle off in the morning and pick it up, possibly as early as noon. Call us or e-mail a quick photo of your damage and we’ll give you an approximate estimate immediately.”
Body Found After Van Crashes Into KC Body Shop
Police in Kansas City, KS, are investigating the death of a man inside an auto body shop where a van crashed through a wall. WDAF-TV reports that police believe the conversion van smashed partway into Calvert’s Express Auto Service sometime early June 10. But it wasn’t until a tow truck arrived several hours later to remove the van that the body was found underneath it. It’s not clear why the man was in the shop, and his name has not been released. Police are treating the death as suspicious and asking the public for any information while they also review surveillance video from nearby businesses.
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Historical Snapshot
although the insurer was “suspending” the requirement to use electronic parts ordering and had no plans to roll
Cindy Schnier, co-chairman of the CIC Information Technology Committee in 1999, said her committee’s research indicated that rekeying of insurer estimates by shops was costing the industry more than $17 million a year in wasted labor
such a program out nationally, State Farm saw the test as valuable because it demonstrated electronic parts ordering “has value.” He noted the Select Service agreement still gives the insurer the right to require electronic
parts ordering. “We encourage the repairers to use it if they would like,” he said. “It works. It has advantages. Now that the test is done, we know moving forward that we have already tested that functionality.” State Farm began the test of electronic parts ordering in two markets in 2007, with a half dozen automakers offering the insurer parts discounts through the program. The program was rolled-out in 2008 to all Select Service shops in the two states, but the number of automakers offering discounts continued to decline until State Farm halted the discount portion of the test earlier this year. – As reported in CRASH Network (www.CrashNetwork.com), July 20, 2009. State Farm subsequently said it seemed inappropriate to seek OEM parts discounts at a time when automakers were struggling economically and in some cases filing bankruptcy. But it saw enough potential benefits to electronic parts ordering that it sough proposals from companies to develop an electronic parts ordering system – which led to the launch of State Farm’s mandated use of PartsTrader in 2012.
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Tech Turned Tool Designer Headlines EB-CAA May Meeting with Ed Attanasio
Francesco’s Italian Restaurant in Oakland, CA was the place to be on May 20, especially if you were a member of the East Bay Chapter of the California Autobody Association (EB-CAA). It was the association’s spring dinner meeting and featured a program with three speakers discussing three distinct segments of the collision industry. Tim Brusher from Honda’s ProFirst Program discussed the importance of OE certifications in today’s collision industry while reviewing Assured Performance Network’s Certification Program; Karl Kirschenman from Alldata made a presentation entitled “Creating Customers for Life” and Tim Gerhards, a former body tech turned tool designer presented his line of collision repair
Tim Gerhards, a former body tech turned tool designer presented his line of collision repair tools during a presentation at the East Bay Chapter of the California Autobody Association’s May dinner meeting
tools during a presentation he called “Tool Time with Tim.” More than 30 collision professionals attended the meeting as they dined on Italian cuisine and networked with fellow body shop owners, local vendors and prospective EB-CAA members. Gerhards’ story will resonate with anyone looking to make a better mousetrap, or in this case, an improved way of skinning a car door. Many great inventors started out the same way as Gerhards did. In fact, Thomas Edison was a salesman before inventing the phonograph and the light bulb and Henry Ford was a machinist before he founded Ford Motor Co. Both saw a
burning need and found solutions by inventing tools that can make our lives easier. And that’s why Tim Gerhards embarked on a journey that eventually led this collision repair veteran to his first invention and six other tools that he subsequently designed—all of which are currently being used for a wide range of applications worldwide. It all began one day when Gerhards was skinning a door while working at B & J Body Shop in Rancho Cordova, CA back in 2001, he explained. “This procedure normally requires lots of hammering and dollying and walking around the entire door frame and beating this metal over and over until you get what you need. It puts a ton of wear and tear on your hands and it’s time consuming. I kept asking myself ‘how does the factory do this?’ and I just began experimenting with a better way of doing it.” So one day Gerhards picked up a piece of wood and shaped it into a crude tool that would enable him to bend the door’s flange over and flatten it out at the same time. After testing it and tweaking it a little, Gerhards realized that it worked and named it the Skin Zipper. “I realized wow—I need to patent this thing,” he said. “This tool takes a two-hour repair and cuts it down to about 10 minutes with a hammer, so I thought shops are going to love this thing.” After more than 40 months, Gerhards received his patent and jumped into the inventor’s world with both feet. “I immediately joined a local inventors’ group and was advised to market the tool at a trade show. So I went to NACE in 2009 and showed the Skin Zipper to everyone I could find. Steck Manufacturing called me back after NACE was over and showed some interest in manufacturing and distributing the tool. It was a great moment, because all of the work I had done on designing it and developing it were finally paying off.” Since inventing the Skin Zipper, Gerhards and Steck Manufacturing in Dayton, OH started working together on more tools, he explained. “The people at Steck must have been pleased with the Skin Zipper, because they were interested in pursuing patents for anything else I could think of, Ger-
32 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
hards said. “Those products include a MIG Light, Panel Shaper, Workstand Clamp, E-Z II Strip Molding Tool and a Handipull Kit that consists of a series of eyebolts that screw into weldedon nuts to allow for light pulls all around a vehicle. Once I get into that inventor’s mindset, the ideas just kept coming. As a tech, I was encountering difficulties all the time during repairs, so I started asking myself, how can I make a tool to solve these problems?” Gerhards’ success with Steck has inspired him to create his own company, TG Products, to manufacture and market other inventions on his own. TG’s first product is The Rail Saver, a system that repairs damaged side members and frame rails. Last year, Gerhards was able to finally step away from his job as a body tech to pursue his dreams as a tool designer and inventor full-time. He strongly believes that the collision repair industry is primed for new exciting tools, to be made by people who actu-
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ally make the repairs, just like him. “Many collision repairers have the skill sets to build their own prototypes, because they already know how to weld, shape metal and build prototypes,” he said. “In this business, we’re all constantly encountering situations where there is no tool. So, I know I’m not the first person to ever rig something to get the job done and I surely won’t be the last. One of the biggest problems is that people are reluctant to show their inventions to anyone, because they’re afraid of them getting stolen. Or they think it’s worth more than it really is and think they’re going to be millionaires overnight, which is totally unrealistic.” Gerhards advises aspiring inventors not to go to invention submission companies. Instead, he says they should join a local inventor’s organization at the United Inventors Association or www.uiausa.org. For more information about any of his tools, visit his web site at: www.therailsaver.com.
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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 33
CAWA Reports on Status of California Legislation Impacting Industry
As the California Legislature comes to the middle of its legislative session, CAWA’s Legislative team reports the status of three legislative proposals impacting the automotive aftermarket industry and CAWA members specifically. CAWA is currently tracking approximately 40 legislative proposals that could have an impact on the aftermarket industry, however the following bills have been the main priority of the association and its government affairs team.
AB 1735 (Hall) – Nitrous Oxide: Dispensing and Distributing CAWA POSITION: OPPOSE UNLESS AMENDED This bill would make it a misdemeanor to dispense or distribute nitrous oxide to a person, knowing or having reason to believe that the person is going to use the nitrous oxide with the intent to breathe, inhale, or ingest for the purpose of causing intoxication, euphoria, dizziness, etc. and that person proximately causes great bodily injury or death to himself, herself, or another person, punishable by imprisonment in a county jail not to exceed 6 months, or by a fine not to exceed $1,000, or by both that fine and imprisonment. Additionally, the bill would require any person who dispenses or distributes nitrous oxide to record each transaction in a written or electronic document and would require the person to make the document available for inspection, upon
presentation of a duly authorized search warrant, to the California State Board of Pharmacy or other law enforcement agencies. The bill would require the purchaser to sign the document and provide a governmentissued photo identification and residential address. Status: Currently working with author’s office to craft amendments to remove impact on CAWA members that sell or distribute nitrous oxide.
SB 916 (Correa) – Biosynthetic Lubricants: Procurement/Sale CAWA POSITION: OPPOSE Effective January 1, 2016, this bill would have required state agencies and state contractors to purchase lubricating oil that meets minimal standards and certifications, and bans the sale of lubricating oil in California after January 1, 2017 unless it meets these minimal standards for biosynthetic lubricants. Status: Died in Committee
SB 994 (Monning) – Telematics Legislation CAWA POSITION: NEUTRAL SB 994 would have created the Consumer Car Information and Choice Act by requiring manufacturers that generate or collect vehicle information through telematics technology to make disclosures to the owner about that information, provide the owner with access to the information for transmission to a 3rd party, and would prohibit a manufacturer from limiting
SD Shop Fire Caused by Smoldering Cigarette Butts
Watertown Fire Rescue responded to a fire at Auto Body Solutions, 1500 10th Ave SE, in Watertown, SD, the night of May 20. Drawing a big crowd of spectators, radio traffic indicated that there were no injuries. At 7:45 p.m., crews reported having the blaze knocked down to hot spots and areas in the rafters. Chip Premus, Watertown Fire Rescue Fire Investigator, issued a news release as to the cause of the fire. According to Premus: ‘The fire started on the outside of the structure in the area of a smoking receptacle used for discarded cigarette butts. The fire service has seen an increase in fires that start on the outside of a building from plastic smoking receptacles and plants with potting soil in
plastic pots. This type of fire smolders for a long period of time. If you walk by and notice smoke coming from cigarette butt receptacles or potted plants, please help out and notify the business owner.’
‘This is a public safety message to all businesses and residents of Watertown that any smoking pole, bucket, or container made of plastic used for discarded cigarettes should be replaced with an all metal or concrete container.’
34 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
or restricting the owner from accessing their vehicle information. Status: Died in Committee
“CAWA is at the forefront of protecting its members from legislation and government regulations that adversely impact the automotive aftermarket industry each year. This California legislative session proves to be a busy year for us as we are defending the aftermarket from a number of attacks on our ability to provide parts and service to motorists”, stated Rodney K. Pierini, CAWA President & CEO. In addition, CAWA in its effort to promote the National Be Car Care Aware Campaign was successful in securing a California Senate Resolution recognizing April 2014 as “National Car Care Month” in California. The measure, SCR 112 by Senator Tom Berryhill, urges all California residents to be “Car Care Aware” and inspect and perform all maintenance necessary to ensure their vehicle is operating in a safe, efficient and clean manner. “CAWA remains committed to protecting the business and industry interests of its members in the three states
we represent, Arizona, Nevada, and California”, continued Pierini. “While we waited with great anticipation the telematics legislation that was introduced by AAA, CAWA took a neutral position on the measure due to a number of concerns that were not resolved in the bill. CAWA commits to continuing to engage in constructive dialogue with AAA to add the aftermarket perspective should AAA decide to take the bill up again next year.” CAWA is a regional automotive aftermarket trade association, which represents auto parts jobbers, warehouse distributors, retailers, manufacturers, manufacturer representatives and program groups. The Association provides education, legislative, regulatory and business support to the industry and its membership. It is one of the largest trade associations of its kind in the United States and recognized as a leader in the automotive aftermarket industry. For more information about the California Legislative session contact California Legislative Advocate Gary Conover at gary@garyconover.com or 916-233-9655.
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I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS
NACE | CARS, held at COBO Center in Detroit July 30-Aug. 2, will offer special recognition to attendees who have a proven commitment to collision repair training demonstrated through
achievement of I-CAR Gold Class recognition or ASE Blue Seal certification. Collision and Service Repair facility personnel that belong to an I-CAR Gold Class business or hold the ASE Blue Seal certification will receive a 50 percent discount on the training and conference sessions at NACE | CARS
2014. In addition, any individual that is currently I-CAR Platinum or an ASE Master Technician will be entitled to the same 50 percent discount. This discount includes individual sessions through the Super Pass that covers sessions during the entire conference. “We want those who have achieved the highest levels of industry-recognized training and certification to be rewarded for their achievements,” stated Dan Risley, ASA president and executive director. “This is a great way to highlight an elite group and to encourage their ongoing technical and business education.” “As technology advancements dictate a necessary evolution in repairability, more collision repair businesses than ever are adopting a learning culture to ensure that they are able to per-
form safe and quality repairs,” stressed John Van Alstyne, I-CAR CEO and president. “I applaud NACE and CARS for recognizing this commitment to education and knowledge by giving back to the businesses and individuals who train.”
“ASE’s relationship with NACE and CARS goes back to the very beginning of the event, and we are pleased to once again be a part of this significant educational opportunity for the industry,” said Tony Molla, ASE vice presi-
MERA Joins the Excitement at NACE | CARS 2014 The Motor Equipment Remanufacturers Association (MERA) has joined a growing coalition of leading organizations supporting NACE | CARS 2014 Industry Week in Detroit this summer. MERA will host a Remanufacturing Technology Expo on Thursday, July 31, from 10:00 am-4:00 pm in the Ambassador Ball-
room in the COBO Convention Center. Dan Risley, ASA president and executive director, stated, “We are excited to have MERA join us in Detroit. This is a very important organization in the automotive market and their participation, content, and attendance is beneficial to Industry Week. The overriding purpose
dent of communications. “We also salute the efforts to encourage professionalism with this generous discount program for our ASE certified professionals and the businesses that employ them.” Registration is now open for NACE | CARS and hotel reservations can be made via the Travel section of the website, www.NACEexpo.com or www.CARSevent.com for the week of July 27 and all events taking place during “Industry Week” in Detroit. Now in its 32nd year, NACE|CARS will feature numerous opportunities for technical training, business education, demonstrations, networking and technology showcases for stakeholders, owners, managers and technicians in the collision and service repair industries.
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of the event is to bring the industry together, and MERA’s involvement further solidifies our goal of deeper market coverage.” “Remanufactured parts offer likenew quality and real value that technicians and end users can trust,” said John Chalifoux, president and COO, MERA. “Dur-
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Midwest Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-Midwest—Take Me Out to the Ballgame!
On Tuesday, June 10, the Springfield come an annual outing for the Spring- of strikes and hopefully a few homeruns Chapter of ASA-Midwest held their field Chapter, and we look forward to at the Iowa Cubs’ stadium. it in coming years.” Hamilton believes that hosting fun Annual Industry with Night atChasidy the Ballpark Raecontinuing Sisk Other chapters of ASA-Midwest events for association members is with over 30 association members and their families visiting Hammons Field have followed suit and begun holding nearly as important as providing eduto root for the Springfield Cardinals. similar events. Their St. Louis Chapter cation to the industry. “In addition to held their own Industry Night at the Ballbringing our members great training The evening of baseball included a networking picnic at the ballpark, game tickets and a Springfield Cardinals with Chasidy Rae Sisk baseball cap. Sheri Hamilton, Executive Director of the association, notes “ASA-Midwest was very pleased with the outcome of the event. We had an impressive turnout, our members had a great time, and the home team won!” Hamilton explains “we Attanasio organize with Ed the baseball outings to bring the automotive service community together for a fun night out. There is time for ASA-MW's St. Louis Chapter Enjoys a Night at the Ballpark networking, but it is also a setting conducive to a relaxed, enjoyable evening park on June 2nd when they cheered on opportunities, we place a high imporfor shop owners, employees and their the St. Louis Cardinals, and the Des tance on networking and bringing the Attanasio families. We hadwith a greatEd response to Moines Chapter will also be holding a automotive service community tothis event with positive feedback from similar event, their first Ballpark Night, gether for fun and interactive activities those who attended. This event has be- on July 12th in order to enjoy an evening outside of their shop. This not only
National Associations
Northwest Associations Shop Showcase
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Farmers Drops Climate IL Shop Owner Posts 20-min Change Lawsuits with inEdChicago Attanasio Video of FPB for Panel Fixes
gives our members the opportunity to meet other professionals in their area, but it also allows for idea swapping, relationship building and a time to relax with their team. We believe these types of events are important to the strength of our membership and organization – plus we always have a great time!” ASA-Midwest recently launched several new chapters throughout the Midwest, including Tulsa OK, Oklahoma City OK, Little Rock AR and Lincoln NE. Hamilton states “we are very excited for this new growth and the opportunity to reach new members. We will be releasing a new schedule of events for all our ASAMidwest chapters for the Fall which will include engaging training and numerous networking opportunities for our members.” ASA-Midwest www.asa-midwest.org 816-781-5801
Associations Assembling
Farmers Insurance Group has dropped Russ Hoernis of Hoernis Auto Body in lawsuits against 200 Chicago-area Belleville, IL, has created a 20-minute communities, reports the Chicago video and posted it on YouTube to Tribune. The insurer claimed the comdemonstrate all of the steps in the munities did not do enough to prevent feather, prime and block procedure that widespread flooding in the areas in must be performed to bring a repair April 2013. panel back to a new, undamaged one. with Thomas The class-action suits soughtFranklin “Feather, prime and block is a reto make the local governments refinish operation that for years has been imburse Farmers for claims it paid snubbed by the insurance industry as eiout to more than 600 property ther an included operation in repair times, owners in the communities. The or they have just been unwilling to cominsurer argued that public agencies pensate shops for the work and materishould have taken more preventaals utilized. I have researched the CCC, tive measures to avert damage Audatex and Mitchell manuals, and each Ed Attanasio estimating system has independently caused by thewith record-breaking floods, such as emptying reservoirs stated that feather, prime and block is a before the rains hit, says the Tribnecessary operation that must be perune. formed to bring a repaired part back to a But now, less than two months new, undamaged panel. Each manual after the suit was filed, Farmers has also clearly states that published refinish withdrawn it. “We believe our lawtimes are for new, undamaged panels.” suit brought important to the Rae SiskAfter documenting the entire opwith issues Chasidy attention of the respective cities and eration, Hoernis goes over the labor counties, and that our policyholders’ and materials used and ultimately calinterestes will be protected by the culates that not getting paid for this relocal governments going forward,” sults in roughly $50,000 per year in says Trent Frager, a spokesperson lost revenue to his shop. for Farmers, in a statement. Hoernis concludes the video by Frager says the company does saying, “I hope for whoever is watchnot intend to with refile the suits, saysFranklin ing that this clarifies some of the isThomas the Tribune. sues we are up against.”
Association Meetings
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Social Media for Shops How to Market to Millennials with Ed Attanasio
We’ve all heard the term but what ex- and devise ways to appeal to these 20actly is a Millennial? Born between somethings. I recently took a two-day 1981 and 1996, Millennials are repre- seminar about social media and most sented by 86 million people, which of it was dedicated to advertising and with Ed Attanasio means they’ve outpopulated the Baby marketing to Millennials. The class Boomer generation by seven percent. was taught by a Millennial, so the inThere are more 22-year-olds than 53- formation was both pertinent and useyear-olds on the planet right now and ful. by 2018 it is estimated that the MilMore and more companies are lennials will be outspending the Baby recognizing the value of marketing to Boomers by a large margin. Millennials. By using these five tips to My stepdaughter is staying with re-calibrate your marketing, public reus this summer, so I am getting a first- lations and advertising efforts, you’ll hand view of how these Millennials be able to tap into this increasingly live. One thing I noticed is that they powerful generation. eat a lot and text a lot and ignore me with a passion. They’re also very in 1. Don’t Talk Down to Them tune with all of the latest technology I was talking to a Millennial one day and social media and are extremely about a world without personal comadept at rolling their eyes and saying puters or the Internet and he looked at things like “whatever” and “it is what me like I had just emerged from a it is.” cave. As the most educated and savvy Some find them to be entitled and consumer group in the world, Millendownright rude, but no matter what nials know what they want and are your opinion of them is, Millennials very skilled at finding it all by themare a very significant segment of the selves. Now, collision repair is obvimarket, and that’s why any consumer ously not an impulse buy and the business should be at least remotely Millennials will treat it as an unnecesinterested in what they’re up to. So, sary expense, like Obamacare or parkwhy should the collision industry care ing tickets. But, in the end they don’t about this age group? Because they like to be corralled into doing somehave money, they drive nice cars and thing, so branding and advertising to just like everyone else—they get into this group may be more important accidents. than ever. They’re not the type that is After years of studying Millenni- going to just blindly pick one body als, marketers and ad agencies all over shop from the list their insurance comthe world know full well that the Mil- pany shows them. They will want to lennial generation isn’t just a bunch of do their due diligence and ask around, entitled kids with smart phones snap- as well as referring to the shop’s web ping selfies and chasing down the lat- site, Yelp page and other assorted soest Groupon deal. In fact, businesses cial media. that aren’t pursuing Millennials will soon be missing out on a major con- 2. Don’t Camouflage Your Message sumer opportunity from a generation “Be real,” is something the Millenniwith an expected $2.45 trillion annual als want to tell their parents and the spending power by 2015. Body shops new word I keep seeing everywhere is should be marketing to Millennials “transparency.” (Back in the old days, right now, because they’re the con- if you called somebody “transparent,” sumers of the world’s, both today and it meant they were not genuine, but tomorrow. now I guess it means exactly the opThe problem is that most owners posite.) My stepdaughter has seen the of leading ad agencies and marketmedia change and evolve and has been ing/pr companies are in their 40s and bombarded by literally millions of ads 50s and they’re still trying to use tech- during her 20 years on the planet, so niques that worked back in the Mad- she can’t be fooled, cajoled or directed men days. But, in order to cater to the by advertising. The Millennials want Millennials, the powers-that-be have the facts now and don’t want to sit to re-invent themselves once again through your long descriptions or
SEMA Show Goes On
38 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
veiled messages. Their time is limited and they’re juggling 1,500 things simultaneously and that’s why studies show that Millennials will value honesty and a straightforward approach when it comes to advertising.
3. Strengthen Your Presence Online Millennials are comfortable buying things online and that’s why brick and mortar businesses are moving toward the Internet more all the time. Unfortunately, you can’t get a fender bender repaired via the computer, but much of the groundwork can likely happen there. And that’s why it is important to have a good web site and some presence on Facebook and Instagram, for example, because these Millennials care about it and may use one or more to make their buying decisions.
4. Millennials Communicate All the Time…with Each Other This generation is more connected
than any group in history, because they have so many ways to do it. They also rarely live alone and have numerous roommates in many cases, so word-of-mouth (or text or video or photo bomb) is more valuable to advertisers who understand this. The old days of creating a “buzz” is always beneficial, but now it’s more concentrated and it all moves so much more quickly. Come up with a shorter, more concise message, so that the Millennials can grasp it fast and disseminate it to their friends and associates seamlessly. It’s called “going viral” and if you can get achieve it, you’ll be a success—Millennially speaking.
5. Quality is Still King (or Queen) With today’s technology, bad service and poor quality can’t be swept under the carpet anymore. Anyone can find your competitors online within milliseconds and we all know that bad See Millennials, Page 41
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Northwest Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-NW’s Automotive Training Expo 2014 tinues, we will pay the entire investOn March 21 through 23, ASA-Northwest held their 6th Annual Automotive ment of sending six people to ATE Training Expo (ATE) at the Doubletree back in three months just off of that, Hilton in Seattle,with WA. With over 600 not including what the Techs learned!” Ed Attanasio attendees and 83 exhibitors, the 2014 “This was a premier event that alATE marked the first year the event lowed my team and I to increase our has been sold out. The goal of the knowledge in all facets of our busievent was to provide training for the ness as well as an amazing team buildautomotive industry, including owners, ing experience. It’s a no-brainer that managers and technicians, and ATE we will be back next year, and I think withwith Ed62Attanasio 2014 really delivered training every shop should attend.” “ATE sessions, six of which were I-CAR teaches you to be better at your job.” courses, taught by industry-leading “ATE is a great way for Automotive educators to get updated on current reprofessionals. Attendees raved about ATE 2014, pair information. Attending is always and some of the feedback that ASA- a positive experience.” Jeff Lovell, President and ExecuNorthwest has received so far inwith Ed Attanasio cluded the following: “2014 was the tive Director of ASA-Northwest, notes best ATE ever; my production team all “this year, our sixth year, was sold out brought back valuable information and exceeded our expectations. We they could use the first day back to have grown this event from the first work, and my service advisors made year of 173 attendees to over 600 atsubtle changes in how they function tendees going to training classes with 12,430 hours of training. We also had and brought up with ARO and GP the first Thomas Franklin week back. If this improvement con- 83 exhibitors participate in our expo,
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both Friday and Saturday evening. The expo floor was sold out three months in advance!” On Thursday, the National Automotive Service Task Force (NASTF) joined ATE to host their Spring 2014 General Meeting, and over 100 participants attended to discuss the topic of J-2534 Reprogramming. At breakfast on Saturday, renowned trainer Gary Smith presented “Success or Struggle,” and during lunch, Bryan Dodge taught attendees “How to Have Your Best Year Ever.” Throughout the event, ATE offered an impressive trade expo with exhibitors displaying automotive parts, repair equipment, shop management services, and specialty products. ATE attendees also had the chance to win a variety of door prizes which were distributed throughout the weekend. Lovell believes these types of association-sponsored events are important for members and the industry because it “brings our membership to-
gether to discuss issues affecting our industry, such as getting new technicians into the industry, environmental issues, legislative issues and networking. It is so gratifying to have ATE grow each year and that it has established itself as the West Coast’s premier training event. Our staff and volunteers help make this an exceptional event that provides quality training to all levels of the service and repair industry. In addition to ASA-Northwest, sponsors for ATE included the Northwest Tire Dealers Association, Auto Shop Solutions (the official social media sponsor), and “Parts & People Northwest” who was the official media sponsor of the event. ATE 2015 will be held on March 20-22nd at the Doubletree Hilton in Seattle, WA. www.asanorthwest.com 253-473-6970
Old School Know How with Ed Attanasio
Old School Know How with Chasidy Rae Sisk
Western Associations with Thomas Franklin
Media Matters with Ed Attanasio
www.autobodynews.com | JULY 2014 AUTOBODY NEWS 39
CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever This year’s CARS will be held July 30Aug. 2 in Detroit and for the first time, the focus will be on younger techs. There will be a two-day, intensive program called the “Young Technician’s Symposium.” Donny Seyfer, chairmanelect of the Automotive Service Association, which sponsors CARS, reports the program will be “powered” by Bosch. “It’s the brainchild of Bob Pattengale,” said Seyfer, “and will feature cuttingedge learning techniques and thorough introductions to the electronic systems that control modern cars. Targeting the two- to three-year tech, Bosch’s trainers will use hands-on techniques mixed with classroom training to move young techs from maintenance service and light repair to adding routine diagnostic skills to their toolbox.” Each program at CARS this year has been handpicked with an eye to-
ward making your shop better, said Seyfer. Management sessions will be limited so that the “meeting after the meeting” networking opportunities will be enhanced. Seyfer said the “crown jewel” of the CARS lineup will be Friday’s Telematics & Technology Forum sponsored by the Alliance of Automobile Manufacturers. “We will bring you face-to-face with the future,” said Seyfer. “Learn about what cars are doing today and tomorrow from the engineers who build them. How does the independent repair shop fit into this world? You will only know if you attend CARS and attend this session.” Business has changed, said Seyfer, “and things that were effective a few years ago are no longer working.” To help bring attendees up-to-date, ASA is enlisting the aid of notables such as Vin
I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014
I-CAR®, in partnership with the National vendors and others collaborate to repair Auto Body Council (NABC), has an- and donate vehicles to deserving indinounced it will pilot a membership dis- viduals and service organizations in local count program for I-CAR Gold Class® communities throughout the country. businesses. The promotional offer inNABC Executive Director, Chuck cludes a 30 percent discount toward Sulkala explained, “In addition to helpNABC Bronze Membership through ing make a difference in someone’s life, December 31, 2014. participation in NABC initiatives such as “I-CAR and NABC have compli- Recycled Rides, provides many intangimentary goals of encouraging profes- ble benefits. Within a business, it creates sionalism and promoting a positive rewarding experiences, excitement and image of our industry,” explained Jeff pride in and for your team, plus has a Peevy, I-CAR Senior Director of Field very positive impact on the community. Operations and Segment Development. The enhanced recognition of our mem“I believe all of us within the collision ber’s businesses in their community as a to this Southwest Edition? repair industry have an obligation to result of gifting a Recycled Rides vehicle promote a positive image of it. And one is an added benefit of membership.” of the best ways to achieve this is to Over 800 vehicles worth in exsupport and enable the growth of an or- cess of $10 million have been donated autobodynews.com ganization designed for this purpose.” through the NABC’s Recycled Rides NABC membership provides busi- program since its inception in 2007. nesses with an array of opportunities for “Collaborating with an industry members to reinforce their leadership powerhouse like I-CAR really helps the ness role with business withto enroll our industry to evanwithin thePromote industry andyour community, NABC and foster goodwill throughout those featuring gelize about just how good it is for othfeaturing an exclusive article communities. The NABC also imple- ers to rub elbows with all of us,” said services. your products ments community-based programsor likeservices. Nick Notte, NABC president. “We at Recycled Rides, Distracted Driving Ini- the NABC are delighted that I-CAR has tiative and First Responders Emergency embraced our vision and is so willing to Extrication, while recognizing those in help NABC reach out to even more our industry who epitomize the funda- quality individuals and businesses.” mental goodness which existsfor in the colGold Class businesses are enor details! Call details! lision repair world. couraged to take advantage of this speRecycled Rides is a widely-known cial promotion. To learn more about 251and unique 800-699-8251 program in which insurers, the NABC or Recycled Rides, visit collision repairers, paint suppliers, parts nationalautobodycouncil.org.
Waterhouse, Rissy Sutherland, Danny Sanchez and Margie Seyfer, all experts in their respective fields. Always a concern are employee issues, including successfully integrating new employees into the business. Bill Haas, industry consultant and trainer, has a new class that will provide shop owners the tools they need to help new employees fit right in. On the technical side, since CARS 2014 will be in the Motor City, representatives from Chrysler, Ford and General Motors will all be presenting classes. Pete Meier will help you bring those lab scopes back out to aid you in diagnosis for a new generation of cars. “Speaking of diagnosis,” said Seyfer, “we are going to push the boundaries of your diagnostic techniques and understanding with presentations by Mark Warren and Chris Chesney— both
technical wizards. They will bring new programs that will take your diagnosticians to areas many of them will find completely new.” Seyfer said ASA’s board of directors and members of the association’s Mechanical Operations Committee “are excited” to present a different approach to training at CARS this year. “We surveyed members, asking what their biggest challenges were in running their business and repairing cars, and we took the dominant responses and sought out trainers to provide insight and new skills to solve those problems.” Said Seyfer, CARS is built for shop owners. “It’s built for your technicians and it is built for your sales staff,” he said. “ASA puts on a few ‘must attend’ programs each year. This year, CARS will be at the top of that list. See you in detroit!”
ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver
On Wednesday, July 9, ASA-CO will host a Pinnacol Safety meeting entitled “Managing Safety Through Good Hiring Practices” at Pinnacol Assurance, located at 7501 E. Lowry Blvd in Denver, CO. The event will take place from 11:30AM until 1:00PM
and includes lunch. ASA-CO is hosting this event for all ASA Safety Group Members, totaling around 50 policyholders, and they expect around 15 to 20 attendees. For more information, call 303-2025231 or go to www.asacolorado.org
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Interactive Advanced Steering and Suspension Systems Damage Analysis Course
Continued from Page 38
Millennials
news travels faster than good news. Companies that take the time to provide convenient, Millennial-friendly services and quality products will be continually rewarded with positive recommendations, via the spoken word, smartphones or laptops. Either way, Millennials are demanding better service and higher quality while possessing the power to influence others, so listen to what they’re saying and start concentrating on this demographic more. Whether you’re www.autobodynews.com enamored or not with their attitudes or behavior, they’re huge market CHECK IT aOUT! and you can’t deny it any longer.
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I-CAR® announced that its new interac- compromised.” He continued, “Retive Advanced Steering and Suspension pairers can apply knowledge learned Systems Damage Analysis (DAM15) in this course throughout the repair course is now available. This course process.” provides detailed information on the The course features a series of inconsiderations for inspecting steering teractive classroom activities and proband suspension systems and provides lem-solving scenarios designed to knowledge that can lead to increased ef- engage the student and enrich their ficiency and a positive customer expe- learning experience in order to further rience. prepare them to apply their knowledge Josh McFarlin, I-CAR Director on the job. Toward the end of the course, of Curriculum & Product Develop- the student will engage in a “damage ment stated, “Advanced steering and discovery” activity where he/she will suspension systems are common in simulate the estimating process. Give vehicles us your on mattersThis affecting the industry. today’s andopinion if not repaired instructor-led, Live 3-credit properly, other vehicle systems can be hour course meets training require-
write us!
I-CAR® Adds New OEM Segment Development Director, John Bosin publisher@autobodynews.com
I-CAR® announced that John Bosin has joined I-CAR in the role of Director, Segment Development– OEM. John will oversee all business development and strategic activity for ICAR in the OEM segment including refinement of strategies better serve The sourcetofor timely the OEM segment, as well as I-CAR information that every activity with OEMs related to Collibody shop needs! sion Repair Network (CRN) programs that rely on I-CAR’s training and Gold ClassCALL program, I-CAR® Welding 800-699-8251 Training & Certification™ initiatives,
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ments for Estimators, Auto Physical Damage Appraisers and Electrical/Mechanical Technicians in I-CAR’s Professional Development Program™ (PDP). DAM15 has replaced Electronically Controlled Steering and Suspension Systems (STE05). If STE05 has been completed, training credit earned will not be lost. To register for Advanced Steering and Suspension Systems Damage Analysis (DAM15), visit the I-CAR website at www.i-car.com or contact ICAR Customer Care at 1-800-I-CARWant toClasses Contribute USA (800-422-7872). are being added to the schedule regularly.
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and contract training. He will also addition to our team, and with his joinwork closely with I-CAR’s Industry ing, I-CAR is more firmly positioned Technical Relations team to advance to create more Promote positive impact the yourinbusiness I-CAR’s Reparability Technical Sup- OEM segment and across the board.” anI-CAR exclusive article feat port (RTS) program as I-CAR works Bosin joins with signifito develop and mature the portfolio of cant experience in the OEM segment your products or servi Tobenefit advertise RTS services for the of OEMs through his extensive and diverse call Joe John Momber at: roles in the Collision Repair industry. and the Inter-Industry. Van Alstyne, I-CAR CEO & President stated, 800-699-8251 Most recently, John was with Ak“Segment focused sales and market- zoNobel as OEM Aftermarket Mane-mail: have ager, and earlier with Fix Auto USA, ing, and strategic alignment, Joe Momber been keyjmomber@autobodynews.com to I-CAR’s progress over the ICI AutocolorCALL: and DuPont. John is for de past three years. John Bosin is a great also a Lean Six Sigma Sensei.
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Quality Parts Coalition Says Certified Aftermarket Parts Saved Million Register Your Email $80 for Our
A new report released May 29, 2014 patent law to limit access to alternarevealed a dramatic price gap between tive collision repair parts, forcing conoriginal equipment manufacturer sumers to pay car companies more to (OEM) and aftermarket or alternative fix their vehicles. at www.autobodynews.com versions of the top 20 most commonly Bipartisan legislation has been insold certified auto collision repair troduced in both the U.S. House and parts from 2009-2014. Senate that would fix this loophole and The study, compiled by the Quality safeguard consumers against price Parts Coalition (QPC), found that the gouging. The Promoting Automotive top 20 aftermarket parts that were tested Repair, Trade, and Sales (PARTS) Act by the Certified Automotive Parts Asof 2013 (H.R. 1663 and S. 780) would sociation were priced up to 50 percent ensure consumer choice for auto colless than OEM versions of the parts. Aflision repair parts is preserved and protermarket versions of all of the top 20 tect 60 years of competition that has were priced lower than the OEM verexisted in the auto repair parts market. sions; the average was 29 percent less “It is simply not fair to saddle expensive. These price differences have consumers with higher repair and inled to more than $80 million in consurance costs as a result of car compasumer savings since 2009. nies seeking to eliminate competition “This report reinforces the imporand charge monopolistic prices,” said tance of consumers having a choice Jack Gillis, director of public affairs when making collision repairs to their for the Consumer Federation of Amercars,” said Ed Salamy, Executive Diica. “This report highlights the exrector of the QPC. “Without competitraordinary consumer savings inherent tion, auto manufacturers would be free in a competitive marketplace and the to charge inflated prices, and conneed for Congress to pass the PARTS sumers would have no other options.” Act without delay. Consumers need to In recent years, automakers have make their voices heard to ensure that begun exploiting a loophole in design happens.”
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Chrysler Airbag Recall Being Probed by Regulators The automaker says 6 fixed SUVs from 2012 recall had inadvertent airbag deployments. Chrysler Group may be facing a recall do-over after the fix it initiated to stop inadvertent airbag deployments in older Jeep Libertys and Grand Cherokees failed in at least six instances to fix the problem, says a report in Automotive News. The National Highway Traffic Safety Administration said in documents filed on Monday that it had opened a query into the 2012 recall 744,822 Jeep Liberty SUVs from model years 2002 and 2003, and Jeep Grand Cherokee SUVs from model years 2002 through 2004. NHTSA said it plans to study the effectiveness of the nearly 2-year-old recall, which Chrysler launched on Nov. 7, 2012. Chrysler acknowledged in a statement that it had notified NHTSA of a half-dozen instances in which the SUV’s airbags deployed inadvertently while the vehicles were in operation after they had allegedly been fixed. “Chrysler Group LLC advised the National Highway Traffic Ad-
ministration of the six reports and, in accordance with the company’s longstanding practice, is cooperating fully with the resulting investigation. Customer safety is paramount at Chrysler Group,” the company said in a written statement. In 2012, Chrysler addressed the problem by installing an in-line jumper harness with an integrated electrical filter to eliminate electrical spikes that the company believed were causing the problem, according to the NHTSA documents. The safety agency had previously opened an investigation of the issue in October 2011 and three months later upgraded the probe. In the latest six cases in the NHTSA documents, no crashes were reported, but injuries consisting of cuts and burns were alleged. At the time of the recall in 2012, another 174,723 SUVs were affected in Canada, Mexico and outside of North America. The probe found 215 cases of inadvertent airbag deployments that resulted in 81 minor injuries in the United States but no crashes.
PartsTrader Integrates Hollander Interchange Codes
PartsTrader announced that it has in- cler whenever that code is available tegrated Hollander Interchange codes for the parts or assemblies required. within the PartsTrader application to The new functionality has been assist suppliers when they are quot- previewed in Illinois and New Jering recycled parts. sey, and is now available to PartThe Hollander Interchange is a sTrader users nationwide. 75-year old numbering system that “The repairers and recyclers indexes which parts are interchange- who have been using this feature in ableSouthwest among vehicles. For example, our preview areas have been pleased to this Edition? the timing cover for a 1976 GMC with the efficiencies it has delivered Truck also fits a 1969 Corvette. Hol- to them,” said Dale Sailer, Partlander Interchange Manuals cover sTrader’s vice president of business most foreign and domestic cars and development. “Our development autobodynews.com light trucks from the 1920s to the team has worked diligently on askpresent. The manuals cover more ing the right questions of repairers, than 150 mechanical and body parts and to display the Hollander codes and assemblies. in an easy-to-use manner for any ness with For information Promoteonyour business with quoting recycled parts. how to use supplier the Interchange, go to http://hollanPartsTrader’s goal is to continually featuring an exclusive article featuring derinterchange.net/How_To_In- improve our solution so that it reservices. structions.pdf.your products or services. duces the risk of getting the wrong In the PartsTrader system a col- parts and creates efficiencies for lision repair estimator will be asked, both the repairer and the supplier.” when appropriate, clarifying vehicle Said Rob Cooper, CEO of Partoption questions prior to sending out sTrader, “In meeting with recyclers a quote request for Call their specific part across the country, we’ve heard the or details! for details! needs. The estimator’s answers to need for integration with Hollander trigger Part- Interchange loud and clear, and it’s ex251 these questions will 800-699-8251 sTrader to display the appropriate citing to be able to respond to the marHollander code to the quoting recy- ket’s needs in such a positive way.”
NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award The Automotive Division of ASQ (American Society for Quality) recently awarded Bob Frayer of NSF International its prestigious Quality Leader of the Year Award for his leadership and NSF International’s commitment to testing and certifying aftermarket automotive parts. The ASQAutomotive Division Quality Leader of the Year Award recBob Frayer ognizes leaders in the automotive industry who exemplify outstanding dedication to quality. Over the past four years, Frayer (NSF International Global Managing Director Automotive) has significantly increased the number of certified automotive collision replacement parts available in the market, now covering more than 20,000 vehicle applications including models from all major auto companies. As background, NSF International is a global organization with 70 years of certification and testing experience. Frayer oversees NSF Interna-
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tional’s Automotive Collision Certification Program, which includes parts certification through which he and other NSF engineers independently evaluate and compare the form, fit and function of aftermarket parts to original equipment (OE) parts. The program helps ensure that collision parts meet quality, safety and performance standards through rigorous facility audits and parts testing. He also oversees the Automotive Collision Parts Distributor Certification Program which certifies distributors who sell automotive collision parts. “We are honored to recognize the achievements of Bob Frayer and NSF International for their dedication to continually advance the quality and safety of the aftermarket automotive parts industry,” said Jd Marhevko, ASQ Fellow and ASQ Automotive Division council member. “It is an honor to receive this award on behalf of NSF International from the ASQ. NSF International and ASQ are committed to quality improvement and standards, and to helping ensure that the safety and performance of auto parts contributes to that mission,” said Frayer.
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Charlotte, NC, Shop Gets Big Pot Package from CA
Police in Charlotte, N.C., say that 500 pounds of marijuana are off the street thanks to a delivery mix up and a honest businessman. Miguel Garcia, 35, is a car lover and the owner of Boom Boom Car and Audio, was confused when he received a big package from California at his business. “The description said chrome accessories and dash kits and that’s basically what we sell. So my first thought was maybe a vendor had sent it to me to resell it,” he told WCNC. Instead, Garcia found 500 pounds of marijuana, with a listed value of over $250,000. His sister immediately called police. “We never had that thought in our head to keep it. It’s one of those things, you have to have do the right thing,” Garcia said. There was so much that it took officers about an hour to stack up the pot and haul it away. Police think the shipper never intended that the package be delivered because the instructions left a phone number.
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Pack Brothers in Belmont NC Wins Short Pay Arbitration
Caliber Acquires MSOs in Los Angeles and North Carolina
Caliber has acquired two multiple colPack Brothers Collision Center in lision repair shop operators with a total Belmont, N.C., has won a short-pay of nine locations—four in Los Angeles arbitration case in a North Carolina and five in Raleigh, NC. The North court against Allstate. Carolina acquisition is the first location On May 27, a Lincoln County for Caliber in the eastern U.S. judge ruled in favor of awarding a Pack Caliber Collision Centers anBrothers customer $891.72, which was nounced that it acquired Classic Colliowed to the body shop for collision resion Center, Inc., with four locations in pairs that the insurer refused to pay after greater Los Angeles: (Los Angeles, the insured’s car was fixed. The shortPasadena, Tujunga, and La Crescenta), pay litigation was filed by Ronnie Pack, and Haddock Collision, a dominant reowner of Pack Brothers, on behalf of pairer with five locations in the Raleigh, his customer using a Power of Attorney. North Carolina market (Raleigh, WakeAccording to the insured cusfield, Cary-Crossroads, Cary-Maynard, tomer’s policy, Allstate is obligated and Fuquay-Varina.) to pay for necessary and proper reClassic Collision was founded in pairs of his vehicle. The total amount 1980 and Haddock in 1972. charged for repair of the vehicle was www.autobodynews.com Caliber Collision CentersSteve $3,445.27, but the insurer only paid Grimshaw, Collision Chief ExCHECKCaliber IT OUT! $2,503.55 for the damages. ecutive Officer commented, “Our acquiThe customer is entitled to the sition of Classic Collision Center, Inc. full amount of $891.72 owed to Pack continues to offer more customer choices Brothers plus interest accrued since in the Southern California market. After his accident, attorney fees and any spending time with Classic Collision’s other punitive damages. management team, it was obvious that Classic Collision aligns perfectly with To by advertise Caliber delivering industry-leading callcustomer Advertising Sales at: satisfaction across all four Los Give us your opinion on matters affecting the industry. Follow us on Twitter: Angeles locations.” 800-699-8251 “We are proud that Classic Collie-mail: sion Center is now a part of the nation’s advertising@autobodynews.com leading collision repair provider,” said Accept no Substitutes! publisher@autobodynews.com Majic Berenji, Classic Collision Presiwww.autobodynews.com dent. “This combination will allow the company to continue to grow, while
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providing Classic Collision’s customers with even higher standards of quality and personal service that has become our trademark. It will also provide Classic Collision’s staff and their families’ new advancement opportunities and a secure future in the dynamic collision repair industry.” “Our acquisition of Haddock Collision Centers in North Carolina represents our first of many acquisitions to come in the eastern U.S. I am very excited to have Todd McGowan, and the entire Haddock Collision organization, join forces with Caliber,” Give us your opinion on matters said Grimshaw. With these acquisitions Caliber now operates 177 collision repair facilities in Arizona, California, Colorado, Nevada, New Mexico, North Carolina, publisher@autobody Oklahoma, and Texas.
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Promote your busines an exclusive article fe Culpeper, VA, Man Charged after Body Shop Standoff See the NEW or serv A Culpeper man involved in a stand- the property. Afteryour aboutproducts two hours of
off at a Madison auto body Cole surrendered. call County Joe Momber at: negotiations, Fr Autobody News Website shop was taken into custody on May Cole, who was an employee at
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800-699-8251 28 and is nowwww.autobodynews.com facing charges. Skyline Restoration, has been According to police, a standoff charged with reckless use of a e-mail: e-mail: started shortly after 7:30 a.m. when firearm. He is currently being evalu- for Joe Momber advertising@autobodynews.com jmomber@autobodynews.com CALL 800-699-8251 David Allen Cole, described as an “ac- ated under anCALL: emergency custody tive shooter,” entered Skyline Restora- order. Police say no one was injured www.autobodynews.com www.autobodynews.com 800-699-825 Start Your FREE tion, an auto body shop on Route 29 in during the standoff, including the susMail Subscription. Madison. Someone working at the shop pect. Those involved credit the teamcalled police. work of a number of law enforcement “According to the caller, one shot agencies for that. Texas advertise hadTo already been fired and a second “It was amazing to see nearly 20 See the NEW Register Your for Our call Sean Hartman at:caller was shot was fired while the on Email organizations come together in a matRay Huffines Chevrolet Reliable Chevrolet the phone with dispatch,” said Erik ter of minutes,” said Ernie Hoch, PLANO RICHARDSON 800-699-8251 Weaver, Madison County Sheriff. Madison County administrator. Madi800-955-6282 866-754-3244 e-mail: Cole, 42, stayed inside the shop son County Schools, located half a 972-202-2300 972-952-8151 Fax shartman@autobodynews.com from 7:30 a.m. untilathiswww.autobodynews.com arrest shortly mile from the scene, were put on www.autobodynews.com 972-596-5571 Fax Mon.-Fri. 7:30-6:30; Sat. 8-5 after 10 a.m. When law enforcement lockdown while the standoff took www.autobodynews.com Mon.-Fri. 7-7; Sat. 8-5 www.reliableGMparts.com first arrived the employees had al- place but the lockdown has now been Call Us For Your Saturn Parts Also. ready left the shop safely and Cole lifted. Police say no students were inwas the only one inside. volved in the standoff. “After several minutes the susPolice were also forced to shut Louisiana pect came to the door displaying the down Route 29 in Madison in both difirearm. The deputies challenged the rections while trying to get the susBanner Chevrolet suspect at which time he pointed the pect in custody. NEW ORLEANS To advertise firearm to his throat,” said Weaver. “The establishment was also 800-477-8603 call Sean Hartman at: Police say Cole had a semiauto- very close to Route 29. We did not 504-242-4624 matic 9 mm gun to his throat the en- want a stray bullet leaving the vicin800-699-8251 504-253-8490 Fax tire time. Authorities also say a total ity and striking vehicles going up and e-mail: www.bannerauto.com of five empty casings were found on down Route 29,” said Weaver. shartman@autobodynews.com 800-699-8251
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New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025 Marketing research firm Ducker Worldwide is predicting that once the 2015 Ford F-150 debuts and works out the bugs with dealerships and the auto repair industry, other truckmakers will likely to follow suit. A study conducted by Ducker Worldwide for the Aluminum Association’s Aluminum Transportation Group (ATG), projects that, by 2025, more than 75 percent of all new pickup trucks produced in North America will be aluminum-bodied. The study surveyed all major automakers and reports Ford, General Motors and Fiat Chrysler will become the biggest users of aluminum sheet in the next decade. It also forecasts that the number of vehicles with complete aluminum body structures will reach 18 percent of North American production, from less than one percent today. Vehicle segments revealed as emerging aluminum content leaders are pickup trucks, sport-utility vehicles (SUVs) and both mid-sized and full-size sedans. The study finds that every leading automaker will have numerous aluminum body and closure programs by 2025. As the material mix for body and closure parts continues to change dramatically in the years to come, use
of aluminum sheet for vehicle bodies will increase to 4 billion pounds by 2025, from 200 million pounds in 2012. “The numbers tell a powerful story of aluminum’s explosive growth across the automotive sector,” said Tom Boney, chairman of the Aluminum Association’s Aluminum Transportation Group and vice president and general manager of automotive for Novelis in North America. “Within the next ten years, seven out of 10 new pickups produced in North America will be aluminum-bodied, and so too will be more than 20 percent of SUVs and full–sized sedans.” The ATG commissioned global consulting and research firm Ducker Worldwide to conduct the 2015 North American Light Vehicle Aluminum Content Study. Through detailed inperson interviews with automotive original equipment manufacturers (OEMs), component suppliers and regulators, Ducker Worldwide maintains a comprehensive material use database to track material and mass of individual components for every vehicle model manufactured in North America. The findings were compiled using data updated and verified between October 2013 and April 2014.
“Aluminum-bodied cars and trucks are coming in a big way, and soon. Consumers won’t visibly notice a different metal under the paint, but they’ll see greater savings at the gas pump and experience better performance and handling at the wheel,” added Boney. Additional findings from the study include: For 2015, pickup trucks will contain the most aluminum at 548.9 lbs. per vehicle, followed closely by E segment sedans at 546.9 lbs., SUVs at 410.3 lbs. and minivans at 396.5 lbs. The average aluminum content in 2015 will be up 44 pounds per vehicle or 13% over 2012. Total North American light vehicle aluminum consumption will increase 28% in 2015 over 2012. Tesla, Mercedes, BMW and Ford will all exceed the average aluminum content and the average aluminum share of curb weight for 2015. By 2025, 26.6% of all the body and closure parts for light vehicles in North America will be made of aluminum. Total North American aluminum content in 2025 will be 10 billion pounds.
I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit
I-CAR® announced that registration is now open for the 2014 I-CAR Conference, which will be held on July 30, 2014 at Cobo Center in Detroit. This year’s Conference picks up I-CAR’s technology advancement discussion started at the company’s 2013 Conference and will provide executives and leaders across the industry further insight into the challenges and opportunities surrounding the Technical Tsunami. John McElroy, host of Autoline Daily and Autoline This Week, will return to moderate this year’s I-CAR Conference. The Conference will feature an expanded lineup of speakers from Ford Motor Company, Oak Ridge National Laboratory, Steel Market Development Institute, Alcoa, University of Michigan, Robert Bosch LLC and more. Key topics will include: • Ford: A high impact session covering OEM strategies related to CAFE, details on the new aluminum F-150, and Ford’s enhanced Collision Repair Service Strategy • Lightweighting: Advancements and trends in Carbon Fiber, Advanced Steels, Aluminum • The Changing DNA of the Ve-
hicle: Reinventing the Automobile • Advanced Electronics, Communications and Safety: Vehicle Wide Driver Safety Systems: V2X Deployment, and how Vehicle Data will reshape our industry I-CAR has also announced new, reduced pricing for this year’s Conference to encourage more of the industry to attend and hear about the important challenges being faced. The admission price is now just $250 for Early Bird registration—a promotion that is running from now through June 14. As an added bonus, all I-CAR Conference attendees will receive a FREE pass to the NACE/CARS expo, also being held at the Cobo Center on July 31 and August 1. In addition to insightful and thought-provoking presentations and panel discussions, the I-CAR Conference also offers numerous networking opportunities, including an evening reception celebrating I-CAR’s 35th Anniversary, complete with live entertainment. For more information and details on how to register, please visit: http:// i-car.cvent.com/2014Conference.
44 JULY 2014 AUTOBODY NEWS | www.autobodynews.com
Aluminum hood penetration will reach 85% and doors will reach 46%; complete bodies will reach 18%, from less than one percent today. Globally, light vehicle aluminum content will approach 35 billion pounds by 2025 making light vehicles the most important global market for aluminum. In a separate analysis, Bank nalyst John Murphy said that Ford’s aluminum F-150 will determine whether consumers are willing to pay a premium for a larger-but-lighter vehicle. The 2015 F-150 could be efficient enough to meet future U.S. fuel economy standards without requiring Ford to offset its performance by selling more small cars, he said. If Detroit auto makers can succeed at slashing weight from their large SUVs and pickups, Murphy said, “you could see an environment where [their sales] perform really well.” Heavy-duty pickups and SUVs are big moneymakers for Detroit auto makers and efforts to make them more fuel efficient would keep the profits flowing.
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SWCC Collision Repair Students Win Iowa SkillsUSA Competition
Southwestern Community College in motive repair programs. The Creston Creston, IA, has announced a pair of based school boasts just one of two Iowa natives have qualified for the programs in Iowa offering students SkillsUSA national auto collision re- ASE and NATEF certification. pair competition. SWCC is the only program in the Zach Mullen of New Market and state to have the I-CAR Gold Class Garrett Hogue of Lenox took home designation. SWCC is one of five first place honors in the Iowa Skill- colleges in the state of Iowa to have sUSA 2014 competition held in Ankeny. The pair will now represent Iowa at the upcoming national competition in Kansas City, June 23-27. Hogue was named gold medalist in collision repair technology and Mullen was named gold medalist in automotive refinishing technology. Hogue and Mullen both received their diplomas in collision repair/refinish in June of Zach Mullen (l) and Garrett Hogue (r) are on their last year and their associate of way to the national SkillsUSA competition applied science degree in auto colli- the I-CAR Training Alliance. This sion repair/refinish last month. allows students to earn Gold Class Hogue, a 2010 graduate of Lenox points during their coursework. High School, is the son of Matt and SWCC’s auto collision repair/refinColeen Hogue of Lenox. Mullen, a ish program is based on the I-CAR 2012 graduate of Clarinda High School, Enhanced Delivery curriculum with is the son of Bill and Diane Mullen of valuable hands-on experiences in the New Market. classroom. Courses are taught by Southwestern is one of 11 com- ASE-certified instructors who have munity colleges in Iowa with auto- platinum level I-CAR designations.
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MO Shop Porter Steals Car, Joyrides Off-Road, Posts His Fun
Police say a Hazelwood auto body worker decided to commute in a car stolen from his employer, Complete Auto Body at 6041 N Lindbergh Blvd, Hazelwood, MO. Over the weekend, a coworker spotted the suspect driving the 2003 Pontiac Bonneville around his neighborhood. His employer checked surveillance, and all the evidence was right there. Complete Auto Body General Manager Kurtis Barks said, “You see a vehicle parked behind our dumpster, watch the guy strategically move the gate, and then take off with our car. Apparently he did this once, got away with it, so he decided he’d just keep the car.” Barks says not only did 41 yearold Ben Taylor take the Pontiac for the weekend, but he documented it on social media: “I came to find out he was actually putting pictures on facebook where he was kind of modeling on the vehicle, and showing off to his friends.” Taylor’s boss, along with Hazelwood Police, presented their evidence to Taylor, but he still denied it, until they showed Taylor his own meal receipts, left in the car. “Eventually, he did come around and admit to it,” says Hazelwood Po-
AudaExplore Pledges $150K to SkillsUSA in Tool Grants
AudaExplore has pledged a threeyear commitment of $75,000 in tool grants that will be awarded to all high school and post-secondary collision repair and refinishing students competing at the national SkillsUSA contest. By working together with industry companies and their student product discounts, the retail value of these tools will exceed $150,000. The tool grants are meant to recognize the students’ outstanding efforts in qualifying to compete at the national SkillsUSA event and help prepare them for careers within the collision industry. “This donation aligns well with our LIFT charitable giving program, which focuses on helping those in need to build sustainable roots for lasting change,” said Rick Tuuri, vice president of industry relations, AudaExplore. “The U.S. Department of Labor projected the employment growth of the automotive body segment to be 13 percent from 2012 to 2022. SkillsUSA and the Collision Repair Education Foundation have done a fantastic job enhancing career opportunities for students to take advantage of this growth, and we are proud to be a part of it.”
lice Lt. Ron Livingston. Ultimately, police say Taylor put 78 miles on the car, and caused $3800 worth of damage. Barks said, “Apparently he decided to go off-roading, and the right front and left front of the vehicle were messed up. We repaired all that, took care of it, we actually bought the car from the customer in order to make up for it, so there was no damage or loss for them.” The Pontiac is now a rental car, and its former owner is now a regular customer. That’s left Taylor, who worked as a porter and car cleaner, fired and behind bars, charged with Stealing a Motor Vehicle, a Class C Felony. Barks adds, “We’re very thankful to have great employees that actually stood up for us, and told us, and we had the right surveillance in place to catch them.” The theft happened back in November, but charges were just filed. That’s because police were investigating a similar crime, in which Taylor was a suspect. However, there was not enough evidence to charge him in that incident.
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SEMA Garage Now Features Photo Cove CHECK IT OUT!
The photo cove in the SEMA Garage—Industry Innovations Center opened for business last month, as celebrity builders Pete Chapouris and To advertise Jimmy Shine of So-Cal Speedat: Shop call Advertising Sales utilized the studio to photograph a cel800-699-8251 ebrated project car they are building for rock guitarist Billy Gibbons. Large e-mail: enough to fit a full-size vehicle and advertising@autobodynews.com complete with a 30”x10” adjustable light box, the photo cove will help www.autobodynews.com SEMA members develop low-cost, professional marketing pieces for their new products. SEMA Garage services include a training facility, an emissions-certification lab and chassis dyno. “The SEMA GarageSee is ablethe to N help SEMA members throughout the entire product development cycle,” said Mike Spagnola, SEMA VP of OEM and Product Development Prowww.autobodyn grams. Spagnola says that members can measure new vehicles for products using a portable coordinate measuring machine (CMM). A prototype can then be developed from SEMA’s 3D printer, before being tested in the dyno and emissions lab. “TheTo SEMA Garage can literadvertise ally cut the entire product developcall Seandown Hartman ment process to six at: weeks,” said Spagnola. 800-699-8251
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Crashes Cost Almost $1T in Costs, Loss of Life, Pain
That includes $277 billion in actual cost, and an estimated $594 billion in “harm from the loss of life and the pain and decreased quality of life due to injuries,” a new U.S. Department of Transportation’s National Highway Traffic Safety Administration report said. Studying crashes in the U.S. in 2010, NHTSA counted up 32,999 fatalities, 3.9 million non-fatal injuries and 24 million damaged vehicles in “The Economic and Societal Impact of Motor Vehicle Crashes 2010.” The sweeping report takes in a lot of ground, particularly in calculating the “quality of life” losses. Among the factors considered in the direct losses of $277 billion, the report said, were $93 billion in lost productivity, $76 billion in property damage, $35 billion in medical expenses, and $28 billion in the costs of traffic-related congestion—like traffic jams and increased air pollution. The report concluded that drunk driving, speeding and “distraction” were key contributors. Drunk driving alone, the report said, accounted for 18% of the total economic loss from motor vehicle crashes, costing the economy as much as $199 billion in direct and quality-of-life losses.
SCRS Open Board Meeting on July 28th in Detroit
On Monday, July 28th, the Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 3:00–5:00pm in Detroit. The meeting, held at the Marriott Renaissance Center located at 400 Renaissance Dr. West, Detroit, will be open to anyone wishing to learn more about the current state of the association's activities and pressing industry topics. The two hour meeting will include updates from SCRS staff and committees outlining current and future work initiatives each group has undertaken on behalf of the membership. It will include a presentation from the SCRS Education Committee who will be providing a detailed presentation surrounding aluminum repair approaches, techniques and considerations. Attendees are not required to be a member of SCRS to participate in this meeting. Anyone interested in learning more about the association, the work it does on behalf of the collision repair industry or interacting with the SCRS Board of Directors is encouraged to attend. Pre-registration is not required. For more information about SCRS, or to join as a member, visit our website at www.scrs.com.
Young Technician’s Program to Debut at CARS
Automotive service and repair shop owners will want their young technicians to attend this unique symposium at this year’s Congress of Automotive Service and Repair (CARS), which will be held in Detroit July 30-Aug. 2. It was designed specifically for young technicians who shop owners believe have the skills to be all-star technicians. The Young Technician’s Symposium is a first time event at CARS and will be powered by Bosch. Targeting the twoto three-year technician, Bosch trainers will use interactive teaching methods to move young technicians to electrical and driveability diagnosis with confidence and speed. ASA is working with Bob Pattengale, training manager for Robert Bosch, to address the challenges young technicians face. Donny Seyfer, chairman-elect of the ASA, which sponsors CARS, said Bosch recently conducted a trial training program with members of ASA-CO. Out of that came a two-day, four-session program that would teach techs with two or more years’ experience real-world diagnostic skills in basic electronics, gas and diesel engine management, sensors and actuators, and electronic brake management, including ABS and vehicle stability systems.
AutoZone Names Dornan Products Vendor of the Year
AutoZone, Inc., a leading distributor of auto parts and accessories, recognized Dorman Products, Inc. as its Vendor of the Year during the company’s annual AutoZone Vendor Summit held in Memphis, Tennessee. “Dorman exemplifies an industry-leading vendor. The Dorman organization is dedicated to innovation, collaboration and speed to market,” said Bill Rhodes, President and CEO of AutoZone. AutoZone also recognized a group of suppliers with the company’s Extra Miler Award.
Ohio Appeals Court OK’s Line Measurement for Dealership
An Ohio appeals court on June 12 upheld a lower court’s ruling in a dispute between two Nissan Motor Co. Ltd. dealerships contesting the proper method of measuring the distance between an established dealership and a proposed one, saying it can be calculated by measuring a straight line between the two spots. The three-judge panel affirmed the trial court’s judgment in favor of M6 Motors Inc., owner of Nissan of Middleburg Heights.
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