July 2020 Southwest Edition by Autobody News

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Hundreds of Individuals in the Industry Get Much-Appreciated Help from Foundation by John Yoswick

Bryan Kim’s collision and mechanical repair business, like many others, was struggling this spring as the COVID-19 virus and economic shutdown hit the Catonsville, MD, area. Sales at ASE Auto Center were down as much as 50% some months, not enough to cover rent and payroll. “We started bleeding money a little than some shops, that actually shut down for a week or two, but once we started, we bled a lot of money,” said Kim, who has owned the nine-employee business for seven years.

Adding to the challenge: Kim’s fiancé and his shop manager’s wife both contracted COVID-19, forcing Kim and his manager to each stay away from the shop for several weeks. “I didn’t want to bring it to the facility, and luckily no one who works here got sick,” he said. The situation was made a little bit easier, he said, because of some assistance from the Collision Industry Foundation, the nonprofit dedicated to providing emergency financial help or other assistance to members See Help from Foundation, Page 12

8 Things to Know in the Wake of Civil Disorders by Patricia L. Harman, PropertyCasualty360

Following days of riots and protests in cities and towns across the country in the wake of George Floyd’s death, there are many questions concerning insurance coverage, how to manage the risks and what other factors business and property owners should address in the aftermath. According to the Insurance Information Institute website, there is a cost to these events. Before the riots in Minneapolis and other areas—for which numbers are not yet available—the most expensive civil disorder events occurred from April

29 through May 4, 1992, in Los Angeles, following the acquittal of the police officers involved with the arrest and beating of Rodney King. Property Claims Services (PCS), a unit of Verisk Analytics, found the riots and looting caused $775 million in insured losses. More recently, there were $24 million in insured losses following the civil unrest that occurred in Baltimore, MD, in 2015 following the death of Freddie Gray, who died while in police custody after he suffered a spinal cord injury. Here are eight factors to considSee 8 Things to Know, Page 40

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How CIF Assistance Has Benefited Collision Repair Professionals in Time of Need by Stacey Phillips

When the coronavirus restrictions were first put into place, the Collision Industry Foundation (CIF) recognized the challenges being faced by the industry. As a result, the nonprofit organization set up a special COVID-19 fund to support collision repair professionals impacted by the pandemic. “Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have

been impacted by natural disasters or other catastrophic events,” said Michael Quinn, CIF board president and SVP of business development at AirPro Diagnostics. “The donations we received for the COVID-19 fund were vital to help repairers across the country.” CIF established the fund with $100,000 raised previously, and CCC Information Services matched that amount. Other industry organizations and individuals then donated to the fund, including AirPro Diagnostics, Guy Bargnes, Colette See CIF Assistance, Page 18

CarParts.com to Open Cutting-Edge TX Distribution Center U.S. Auto Parts Network, Inc., one of the largest online providers of automotive aftermarket parts and accessories, announced June 1 it would open a new 210,000-square foot distribution center in Grand Prairie, TX. The distribution center, slated to begin operations in late 2020, will create a minimum of 150 new jobs and $10 million in economic impact in its first 18 months alone. When operational, the facility will deliver new parts to customers across the South and Southwest, servicing all of the brands U.S. Auto Parts Network has to offer, including CarParts.com and JC Whitney. “CarParts.com has been experiencing exponential growth, and we needed to build this distribution center to stay ahead of demand,” said U.S. Auto Parts Network CEO Lev Peker. “We expect this trend to accelerate as customers become ever more comfortable buying car parts online. For so many of our customers, getting a part quickly is not optional―it is essential to keeping their

vehicle on the road and helping them get to work. Thanks to this distribution center, we will be able to reach 64% of the country in one day or less. “Everything is bigger in Texas, physical distances included,” he continued. “If we want to get our Texan customers their parts quickly, we had to build a distribution center here!” The facility will include a “will call” window where local residents who have ordered online can pick up their parts on-site. Grand Prairie Mayor Ron Jensen was happy to welcome the new members of the community. “We are proud to be working closely with companies like U.S. Auto Parts Network to bring jobs to Texas,” he said. “Texas has seen far too many job losses recently, so we are humbled to see a growing company like U.S. Auto Parts Network put down roots and create jobs here in Grand Prairie.” For David Meniane, U.S. Auto See TX Distribution Center, Page 6

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CONTENTS As TX Businesses Reopen, Short-Lived Coronavirus Safety Net is Dismantled ��16 Coronavirus in Texas: Bars, Bowling Alleys and Other Businesses Can Begin Reopening May 22 ��10 LA Legislators Approve Legal Changes Supporters Say Will Lead to Cheaper Auto Insurance ��8 Lincoln Educational Services Re-Opens Denver Campus ��10 The Tesla Dilemma: Texas or Tulsa ��13 TX Governor Says Almost All Businesses Allowed to Open at 50% Capacity ��22

Distribution Center ��1 CCC Reports Growth of Photo Estimate, AI-Supported Claims ��34 CIC Goes Virtual for July Conference ��46 CREF Announces Online Virtual Golf Fundraiser ��38 Ford Cautions Against the Use of Aftermarket Glass ��34

Anderson - Determining Whether—and How—to Charge for OEM Research ��22 Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings ��26 Yoswick - Shops Share More Ideas on How to Get Work In the Door ��38

Racial Justice ��38 GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van ��44 Honda Suffering Production Issues Due to Possible Cyber Attack ��47

Repair Professionals in Time of Need ��1 Hundreds of Individuals in the Industry Get Much-Appreciated Help from Foundation ��1 Kinderhook Acquires Original One Parts ��34 NY Body Shop Owner and Landlord Forgives Rent for 200 Tenants ��42 Postponed NORTHEAST 2020 Now Canceled ��39 Riots in Wake of Floyd’s Death Could Become Most Costly Civil Disorder for Insurers ��44

NATIONAL 8 Things to Know in the Wake of Civil Disorders ��1 AkzoNobel Announces New Sikkens Website for U.S. ��3 All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications ��30 ATI Shares Five-Step Rapid Recovery Plan for Automotive and Collision Repair Shops for Beyond COVID ��36 Bipartisan PPP Flexibility Act Sails

Self-Driving Vehicles Could Struggle to Eliminate Most Crashes ��4 Silicon Valley Tech School Pushes Through Pandemic ��28 Tesla Is Now Worth More Than GM, Ford, FCA Combined ��4 Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus ��47 The Auto Industry’s Response to Black Lives Matter Protests ��32 Volkswagen Activates ‘Sign Anywhere’

Through Senate ��46

Across Network ��47

Carma Project Rewarding Replacing Airbags ��39

Women in Auto Care Accepting Entries ��44

CarParts.com to Open Cutting-Edge TX

any device. Navigation has been improved to bring visitors the information they need quickly, with minimum clicks. AkzoNobel’s color leadership is strongly featured on the new website, with a prominent focus on color tools such as the Automatchic and MIXIT. The website also features information on the robust “beyond paint” offering available to Sikkens customers in the U.S. Source: AkzoNobel

GM Designates $10M for Inclusion,

How CIF Assistance Has Benefited Collision COLUMNISTS

AkzoNobel Vehicle Refinishes announced it has launched a Sikkens Vehicle Refinishes website specific to the U.S. market. The new website (www.sikkens vr.com/en-us) features a clean look and easy navigation to information about premium Sikkens products available in the U.S. In addition to the improved look and feel, the website is equipped with intuitive and responsive functionality that will enhance the user experience on

INDEX OF ADVERTISERS

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AkzoNobel Announces New Sikkens Website for U.S.

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

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes �� 6

Ford Wholesale Parts Dealers �� 45

Audi South Austin �� 29

Fowler Honda �� 6

Audi Wholesale Parts Dealers �� 43

GM Wholesale Parts Dealers �� 31

AutoMart Mitsubishi �� 21

Haldon Company �� 33

AutoNation Chrysler-Jeep-Dodge-Ram

Honda-Acura Wholesale Parts Dealers ��24-25

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of North Phoenix �� 19

Hyundai Wholesale Parts Dealers �� 47

Big Mike Naughton Ford �� 21

Innovative Tools & Technologies �� 35

Bill Luke Chrysler-Jeep-Dodge-Ram �� 8

Kia Motors Wholesale Parts Dealers �� 41

BMW of South Austin �� 29

Matrix Automotive Finishes �� 7

BMW Wholesale Parts Dealers �� 32

Mercedes-Benz Wholesale Parts Dealers �� 42

Bob Howard PDC �� 37

Mitsubishi Wholesale Parts �� 34

Bob Utter Kia �� 10

MOPAR Wholesale Parts Dealers �� 27

Car-O-Liner �� 17

North Freeway Hyundai �� 30

Certified Collision Group (CCG) �� 11

Part of the Club �� 21

Chevyland �� 16

Peak Kia �� 21

Christopher’s Dodge World �� 21

PPG Refinish �� 9

Classic BMW �� 22

RGI Spray Booth Company �� 13

Classifieds �� 46

Santa Fe Kia �� 8

Dallas PDC �� 48

SATA Dan-Am Company �� 5

Eagle Abrasives, Inc �� 18

Schmelz Countryside �� 21

Eckler’s Automotive �� 12

Scoggin-Dickey Parts Center ��14-15

Emich Chevrolet �� 21

Spanesi Americas �� 23

Emich Volkswagen �� 21

Stevinson Toyota West �� 21

Equalizer Industries, Inc �� 20

Subaru Wholesale Parts Dealers �� 38

Finnegan Chrysler-Jeep-Dodge �� 2

Toyota of Laredo �� 26

Fisher Acura �� 21

Toyota Wholesale Parts Dealers �� 39

Fisher Honda �� 21

Volkswagen Wholesale Parts Dealers �� 42

Flatirons Subaru �� 21

Young Chevrolet �� 28

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Self-Driving Vehicles Could Struggle to Eliminate Most Crashes Driver mistakes play a role in virtually all crashes. That’s why automation has been held up as a potential game changer for safety. But autonomous vehicles might prevent only around a third of all crashes if automated systems drive too much like people, according to a new study from the Insurance Institute for Highway Safety. “It’s likely that fully self-driving cars will eventually identify hazards better than people, but we found that this alone would not prevent the bulk of crashes,” said Jessica Cicchino, IIHS vice president for research and a coauthor of the study. Conventional thinking has it that self-driving vehicles could one day make crashes a thing of the past. The reality is not that simple. According to a national survey of police-reported crashes, driver error is the final failure in the chain of events leading to more than nine out of 10 crashes. But the Institute’s analysis suggests only about a third of those crashes were the result of mistakes that automated vehicles would be expected to avoid simply because they have more accurate perception than human drivers and aren’t vulnerable to incapacitation. To avoid the other two-thirds, they would need to be specifically programmed to prioritize safety over speed and convenience. “Building self-driving cars that drive as well as people do is a big challenge in itself,” said IIHS Research Scientist Alexandra Mueller, lead author of the study. “But they’d actually need to be better than that to deliver on the promises we’ve all heard.”

for the road conditions, driving aggressively or leaving too little following distance from the vehicle ahead. • “Execution and performance” errors included inadequate or incorrect evasive maneuvers, overcompensation and other mistakes in controlling the vehicle. • “Incapacitation” involved impairment due to alcohol or drug use, medical problems or falling asleep at the wheel. The researchers also determined some crashes were unavoidable, such as those caused by a vehicle failure like a blowout or broken axle. For the study, the researchers imagined a future in which all the vehicles on the road are self-driving. They assumed these future vehicles would prevent those crashes Will autonomous vehicles be better than humans at caused exclusively by perpredicting, planning and execution? ception errors or involved an towed away, and emergency medical incapacitated driver. That’s because cameras and sensors of fully autonservices were called to the scene. The IIHS team reviewed the omous vehicles could be expected case files and separated the driver-re- to monitor the roadway and identify lated factors that contributed to the potential hazards better than a human driver and be incapable of distraction crashes into five categories: • “Sensing and perceiving” er- or incapacitation. rors included things like driver dis- Crashes due to only sensing traction, impeded visibility and fail- and perceiving errors accounted for ing to recognize hazards before it was 24% of the total, and incapacitation too late. accounted for 10%. Those crashes • “Predicting” errors occurred might be avoided if all vehicles on when drivers misjudged a gap in traf- the road were self-driving―though fic, incorrectly estimated how fast it would require sensors that worked another vehicle was going or made perfectly and systems that never an incorrect assumption about what malfunctioned. The remaining twoanother road user was going to do. thirds might still occur unless auton • “Planning and deciding” errors omous vehicles are also specifically included driving too fast or too slow programmed to avoid other types of To estimate how many crashes might continue to occur if self-driving cars are designed to make the same decisions about risk humans do, IIHS researchers examined more than 5,000 police-reported crashes from the National Motor Vehicle Crash Causation Survey. Collected by the National Highway Traffic Safety Administration, this sample is representative of crashes across the U.S. in which at least one vehicle was

predicting, decision-making and performance errors. Consider the crash of an Uber test vehicle that killed a pedestrian in Tempe, AZ, in March 2018. Its automated driving system initially struggled to correctly identify 49-year-old Elaine Herzberg on the side of the road. But once it did, it still was not able to predict she would cross in front of the vehicle, and it failed to execute the correct evasive maneuver to avoid striking her when she did so. Planning and deciding errors, such as speeding and illegal maneuvers, were contributing factors in about 40% of crashes in the study sample. The fact deliberate decisions made by drivers can lead to crashes indicates that rider preferences might sometimes conflict with the safety priorities of autonomous vehicles. For self-driving vehicles to live up to their promise of eliminating most crashes, they will have to be designed to focus on safety rather than rider preference when those two are at odds. Self-driving vehicles will need not only to obey traffic laws, but also adapt to road conditions and implement driving strategies that account for uncertainty about what other road users will do, such as driving more slowly than a human driver would in areas with high pedestrian traffic or in low-visibility conditions. “Our analysis shows that it will be crucial for designers to prioritize safety over rider preferences if autonomous vehicles are to live up to their promise to be safer than human drivers,” Mueller says. We thank IIHS for reprint permission.

Tesla Is Now Worth More Than GM, Ford, FCA Combined by Brad Bergan, Interesting Engineering

Toyota is no longer the most valuable automaker in the world. Tesla has ascended to the top position, worth more than Ford, GM, and FCA combined, according to a handy fan-made spreadsheet. With a market capitalization valued at roughly $185 billion, Tesla is now worth more than Volkswagen Group, Daimler, Toyota, Honda and Daimler. The fan-made spreadsheet was made using Yahoo and Google data

to track automaker valuation, and it showed Tesla surging to first place on June 10. As of writing, Tesla’s stock is sitting at roughly $1,014 per share, after a rise of roughly $72 from June 9. This places more valuation distance between Tesla and other U.S. rivals Ford, GM, and FCA. As of June 10, GM’s worth was roughly $41 billion, with Ford at $27 billion and FCA sitting at roughly $20 billion. For a long time, Tesla’s market valuation was more than all three, but then the stock continued its upward motion until the all-electric au-

tomaker cemented a major milestone, according to CNET. The all-electric automaker has seen consistent market value growth, which gave CEO Elon Musk a payday of roughly $700 million earlier in 2020. Musk doesn’t take a salary as CEO of the company, but he still earns stock options at a low price to sell at market rate whenever he chooses. However, there’s little data available to explain the recent jump in valuation, but Wedbush Securities lifted its target share price to $1,000 on June 10. The investment

firm pointed to “game-changing” developments as a reason behind the lift in target price. Skeptics of Tesla’s valuation have surrounded the all-electric automaker for years. In January, Bank of America analysts forecasted a 12-month average stock price of only $350 for Tesla. While the company’s stock value did fall near to that level in March, it has since made an impressive comeback. We thank Interesting Engineering for reprint permission.

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TX Governor Says Almost All Businesses Allowed to Open at 50% Capacity by Patrick Svitek, The Texas Tribune

Gov. Greg Abbott announced his third phase June 3 of reopening Texas businesses during the coronavirus pandemic, allowing virtually all of them to operate at 50% capacity. That is effective immediately, and there are “very limited exceptions,” Abbott’s office said. Restaurants were already permitted to be open at 50% capacity. Abbott is allowing them to immediately increase their table size from six people to 10, and on June 12, they can ramp up their capacities to 75%. Abbott’s latest order also brings news for professional and college sports that are played outdoors, letting the former shift from 25% capacity to 50% capacity at their stadiums and allowing the latter to resume for the first time, also at 50%. “The people of Texas continue to prove that we can safely and responsibly open our state for business while containing COVID-19 and keeping our state safe,” Abbott said in a statement. While the number of cases con-

tinues to rise in Texas, Abbott emphasized the new cases are “largely the result of isolated hot spots in nursing homes, jails and meatpacking plants.” Those places made up more than 45% of the new cases over about the last week, according to his office. The state’s focus on those hot spots has contributed to some of the largest daily case counts over the past week. “On June 1, Texas saw its highest seven-day average of new cases since the pandemic began,” state Rep. Chris Turner of Grand Prairie, who chairs the House Democratic Caucus, tweeted after Abbott unveiled the third phase June 3. “The data are clear―unfortunately, COVID-19 cases are moving in the wrong direction right now and we need to tap the brakes, not step on the gas.” As of June 3, there are 68,271 cases in 232 counties. The average number of cases reported over the past seven days shows how the situation has changed over time by de-emphasizing daily swings. The number of new cases reported drops on weekends, when labs are less likely to report new data to the state.

There is fine print to Abbott’s latest announcement. Amusement parks and carnivals are among the business allowed to immediately operate at 50% capacity—but only if they are in counties with fewer than 1,000 cases. Amusements parks and carnivals in counties with more than 1,000 cases can scale up to 50% capacity June 19. And bars, which were previously capped at 25% capacity, can immediately go up to 50% as long as customers remain seated. As he has done before, Abbott gives the state’s smallest counties permission to move more quickly in his latest reopening announcement. On June 12, any business in a county with 10 or fewer active cases that was previously open at 50% capacity can increase to 75%. Texas has now had 68,271 coronavirus cases, including 1,734 deaths, according to the latest data June 3 from the Department of State Health Services. More than 90% of the state’s 254 counties have reported cases. As of June 3, there had been 1,150,868 tests conducted in Texas,

the DSHS figures show. While testing has gone up, it is still regularly falling short of the 30,000 tests per day Abbott had set for reopening the state. Abbott has also focused on the positivity rate, or the ratio of confirmed cases to total tests. That figure, presented by the state as a seven-day rolling average, dropped from a high of 13.86% in mid-April to between 4% and 6% for most of May. In recent days, however, the figure has been on an upward trend, hitting 8.22% on June 3. Abbott has said in recent weeks Texans should anticipate temporary increases in the positivity rate as the state dispatches its surge response teams to the three kinds of hot spots: prisons and jails, nursing homes and meatpacking plants. Another statistic Abbott has prioritized is the daily number of hospitalizations due to the virus. That trend has not seen any major fluctuations in recent weeks, with the figure ranging between 1,400 and 1,800 most days. It was 1,487 on June 3. We thank The Texas Tribune for reprint permission.

Continued from Cover

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LA Legislators Approve Legal Changes Supporters Say Will Lead to Cheaper Auto Insurance by David Jacobs, The Center Square

The Louisiana House of Representatives on May 30 approved a bill proposing several changes to how the state’s legal system handles automobile accident claims. The changes are supposed to lead to lower automobile insurance rates, though there is no guarantee that would happen. The cost of auto insurance in Louisiana is among the highest, if not the highest, in the nation. Supporters say bringing Louisiana’s system more in line with other states will discourage frivolous lawsuits that increase insurance companies’ costs and lead to higher rates. Critics say the legislation would unfairly tilt the legal system to favor the insurers. For many Republicans and business lobbyists, Senate Bill 418 by River Ridge Republican Sen. Kirk Talbot is the session’s top priority not related to the COVID-19 pandemic. The vote was 72-28, enough of a margin to override a veto if Democratic Gov. John Bel Edwards rejects the bill. The Senate already approved the measure, also with a veto-proof majority. But before it gets to Edwards, the bill returns to the upper chamber for concurrence on amendments. The legislation would lower the amount of money at stake that establishes the right to a jury trial from a lawsuit worth at least $50,000—by far the highest threshold in the nation—to $5,000 for tort cases such as auto accident injury claims and $35,000 for other types of civil actions. A defendant with, for example, a $40,000 case who doesn’t think the judge will give them a fair shake would be able to take their chances with a jury, supporters say. Critics say the change could clog the courts while favoring insurance companies that can more easily afford the costs of a jury trial. The legislation in most cases

would take away the right to sue an insurance company directly, rather than the driver that caused the accident. Supporters say courts may be biased against the “big, bad insurance company.” The bill also seeks to extend the amount of time to file a lawsuit from one year to two, in hopes of giving the parties more time to work out a settlement rather than going to trial. It would let courts consider how much

“It’s still not a guarantee,” noted Rep. Ted James, a Baton Rouge Democrat. Rep. Ray Garofalo, the Chalmette Republican who carried the bill in the House, conceded the bill does not guarantee rate reductions, but said numerous experts have assured him lower rates would be the net result. “We will see a minimum 10% reduction, and possibly much greater,” he said. “This isn’t coming from me or Sen. Talbot, this is coming from the insurance industry.” There is no reduction provision for commercial auto insurance, although trucking company owners have said skyrocketing rates are threatening to put them out of business. Garofalo State Sen. Kirk Talbot, R-River Ridge, talks with Sen. Jay said only two companies Morris, R-Monroes, as the Senate convenes May 4 in write commercial truckers the Senate chamber in Baton Rouge, LA. Credit: Gerald in the state, and the indusHerbert/AP try doesn’t want to scare was actually paid for the plaintiff’s either insurer away with a mandate. medical bills, as opposed to the “stick- But he said he was confident comer price” of a procedure, and allow courts to know whether the plaintiff was wearing a seat belt. Rep. Greg Miller, the Norco Republican who chairs the House Committee on Civil Law and Procedure, raised concerns when the bill was in his committee about juries being able to review the plaintiff’s health insurance but not the defendant’s liability insurance. Rep. Sam Jenkins, a Shreveport Democrat, said the bill changes several different aspects of the law, violating the constitutional requirement that a bill have a single objective. Insurers would be required to 1701 Saint Michael’s Drive reduce rates for personal policies by Sante Fe, NM 87505 at least 10%, but there’s a potential loophole. Companies could opt out 505-982-1957 if they convince Commissioner of Insurance Jim Donelon they can’t M-F 7:30am – 5:00pm afford to do so. Donelon, a Republican who Sat 8:00am – 12:00pm supports the legislation, says drivers could save 25% or more.

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mercial auto insurance rates would fall as well. Daniel Erspamer, CEO of the Pelican Institute for Public Policy, hailed the vote. “The Pelican Institute applauds the legislature on its overwhelming support for these critical reforms, which will rein in lawsuit abuse and Get Louisiana Working,” Erspamer said. “For far too long, Louisianans have felt the personal financial pain of lawsuit abuse, as well as its damaging effects to our state’s economy. SB 418 will help to make Louisiana a place that creates and encourages the growth of jobs and opportunity rather than the stagnation brought on by approaches of the past.” Rep. Robby Carter, an Amite Democrat, said legislators who voted for the bill should take responsibility if it doesn’t lead to lower rates. “I want everybody who thinks this is a good bill to be a co-author,” Carter said. “I want everybody to wear it.” We thank The Center Square for reprint permission.

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Lincoln Educational Services Re-Opens Denver Campus Lincoln Educational Services Corporation, a national leader in specialized technical training, including automotive technology, the skilled trades, health care, IT, culinary and cosmetology, announced it has reopened its Denver, CO, campus and resumed on-site instruction on a limited basis. “On March 17, in accordance with local and federal guidelines, we transitioned our campus’ classroom instruction to remote distance learning due to the impact of the COVID-19 pandemic,” said Scott Shaw, Lincoln Tech’s president and CEO. “We have worked closely with our regulators and local authorities to develop a re-opening plan, with our primary objective being the health and safety of our students and staff. “Initially we will be bringing back students in select programs and those nearing graduation who need the hands-on skills training to complete their education. We will gradually transition to full scale operations as is practical and allowed.” The company has approximately 722 students currently enrolled at its Denver campus, located at 11194

East 45th Ave. Currently, nearly 89% of those students are training for careers the U.S. Department of Homeland Security (DHS) deems essential. “We want to thank our faculty, staff and especially our students for the way they’ve handled the transition to remote leaning over the last two months,” said Dr. Kelly Moore, president of the Denver campus.

“It’s been inspiring to see how committed our students have remained to their career readiness” — Dr. Kelly Moore “It’s been inspiring to see how committed our students have remained to their career readiness. Now it’s time to welcome them back to campus so they can complete the handson work they need to graduate and enter the workforce. Colorado and the nation will need these skilled professionals as we recover from this unprecedented shutdown.” The campus has been a mainstay in Colorado’s capital for more than 55 years, providing hands-on career training in the automotive and skilled trades industries. Leading

Coronavirus in Texas: Bars, Bowling Alleys and Other Businesses Can Begin Reopening May 22 by Texas Tribune staff

As part of Gov. Greg Abbott’s attempt to begin reviving the economy, myriad Texas businesses can reopen May 22. That includes bars, bowling alleys and aquariums at limited capacity. Restaurants can also operate at 50% capacity; they’ve been permitted to operate at 25% capacity since May 1. At bars, dancing and other close-contact interactions are discouraged, and customers should be seated at tables. For bowling alleys, bingo halls and roller skating rinks, customers must be kept 6 feet apart, including between bowling lanes and people playing bingo. Here is a full guide https:// www.texastribune.org/2020/05/19/ open-texas-bars-day-cares-reopening/ to the businesses that can reopen and the guidelines they must follow. — Clare Proctor The state’s April jobless rate was 12.8%—Texas’ worst monthly tally on record. Previously, the state’s worst-ever monthly unem-

employers like Bridgestone Firestone and Chrysler have chosen the campus to provide partnership training programs that increase career opportunities for graduates. Certificate, diploma and degree-granting program options are available, and on-campus career fairs attract some of the best-known companies to its campus to meet,

ployment rate was 9.2% in November 1986, as Texas reeled from the last big oil bust. Although businesses are reopening, Abbott’s attempts to revive the economy will be hampered by the ongoing pandemic, experts say. “The health thing is driving the economics,” said Keith Phillips, a senior economist at the Federal Reserve Bank of Dallas. In explaining his rationale for allowing businesses to reopen, Abbott has zeroed in on two figures. One is the ratio of positive cases to tests conducted. The other is the hospitalization rate—the proportion of infected Texans who are requiring hospitalization. Both those numbers have trended down over several weeks, but Texas is still often seeing 1,000 or more people test positive for the virus each day.— Mitchell Ferman

interview and recruit Lincoln Tech graduates. The Denver campus has an amazing history of graduating successful technicians in programs such as: Automotive Technology—More than 14,000 auto technicians are projected to be hired across Colorado, and 740,000 nationwide, by 2028*. Collision Repair and Refinishing Technology—A convenient blended learning format lets students complete some of their coursework online from home so they can spend more time on campus painting, air-

brushing and performing hands-on auto body repairs. Colorado projects hundreds of collision repair job openings by 2028*. Diesel and Truck Technology—In addition to a traditional diesel technology program, the campus also offers an alternate fuels component that focuses on “green” technology and the future of the diesel industry. Colorado is projected to have the country’s third-fastest career growth rate (23%) in this field by 2028*. HVAC―With a projected growth rate of 38%, Colorado ranks third in the nation for this career field. More than 8,000 job HVAC opportunities are projected in Colorado, and more than 420,000 nationwide, by 2028*. Welding and Metal Fabrication Technology—More than 6,700 welders are projected to be hired across Colorado, and 488,000 nationwide, by 2028*. * Career growth projections can be found at careeronestop.org for the years 2016-2026. Data is current as of April 30. Source: Lincoln Educational Services Corporation

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just a couple months later I’d be putting some of my employees in contact with the foundation to help them out,” Garcia said. of the industry in need. The timing of the pandemic and “I really appreciated that help,” economic shutdown was particularKim said. “It wasn’t a crazy amount ly tough for Garcia’s business. In of money, but it was more the idea January, he purchased three new of this being an industry that helps CMC spray booths to install, along each other. It’s great being a part of with an area dedicated to ADAS an industry that does that.” calibrations, in a 6,000-square foot addition under construction at the shop. Then, like many shops, he saw about a 70% drop in his $1-million-a-month business in late March and early April. Some employee layoffs were a painful reality, Garcia said. An evening reception and silent auction in January in Palm One employee he had to Springs, CA, helped the Collision Industry Foundation raise lay off had just been hired some of the funds now in its COVID-19 Fund less than a month previous Carl Garcia, the owner of Carl’s ly. Another had some recent health Collision Center in Fall River, MA, issues. Some faced challenges in said he was among the shop owners getting unemployment claims going and industry vendors at an evening because the state system was overreception and silent auction in Palm whelmed. So Garcia is thankful he Springs, CA, that serves as an annual could point them to the foundation, fundraiser for the foundation. which provided some financial as “I never would have thought that sistance to about a half-dozen of his Continued from Cover

Help from Foundation

laid-off employees. laid off because of the pandemic. “It was great to be able to offer “This money helped put food on this option to employees who truly their table, helped pay rent or mortneeded it,” Garcia said. “It was actu- gages or utility bills, the basic necesally amazing how quickly [the Foun- sities that are needed when you are dation was] able to process it and get impacted financially after suddenly them some money. It went to people who really needed it.” Garcia said he remembers the foundation over the years raising funds to help individuals in the industry facing challenges because of Hurricane Katrina, the 2018 wildfires in California and major flooding in 2016 in Missouri and West Virginia. “To have my own staff Petra Schroeder, who serves on the board of trustees of be the recipient of that same the Collision Industry Foundation, speaks with California shop owner David Mello at the foundation’s fundraising type of support, I don’t think event in January I’ll ever forget,” Garcia said. “Once we are back on our feet, I look being laid off,” Horvat said. “To have forward to making contributions so an organization that steps up and others get the help that they were able helps our collision repair profesto give my people.” sionals during times of hardship and Tammy Horvat, manager of crisis is another reason I admire our Fred Martin Collision Center in Bar- collision community.” berton, OH, had similar praise for the Maryland shop owner Kim foundation, which provided assis- voiced similar appreciation for the See Help from Foundation, Page 34 tance to four of the shop’s technicians

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The Tesla Dilemma: Texas or Tulsa by Joey Klender, Teslarati

When news broke that Tesla had announced the finalists for its next Gigafactory, which actually could be called a Terafactory based on the expected cell production output, comparisons between Austin, TX, and Tulsa, OK, were rampant across social media. Each location has its own distinct advantage and disadvantage, which I’ll explore. I will start with Austin, because of the location’s notoriety as the “favorite” of the two locations. Also, it is fairly evident CEO Elon Musk seems to think highly of the Lone Star State based on his Tweets and also the presence of his SpaceX business there. Texas has a lot of available land, and it’s very cheap. Houses and businesses can get the same amount of land in Texas they can in California at a significantly cheaper price. Tesla could save a lot of money on the purchase price of the land and it could be using Tulsa as leverage to get an even better deal on the Texas property.

One of my favorite reasons for a Texas factory is the fact the state has long been the heart of oil and gas. The world’s largest electric automaker in the same region is hysterical to me. I feel that Tesla establishing its largest and most dominant production facility in that area would be a big “middle finger” to the pollution-causing gas and oil drillers who, for a long time, have called Texas home. Texas also has a hearty history of automotive manufacturing and is ranked fourth of U.S. states in the sector. Also, Tesla could provide a stable economic boost to the state. While this also applies to Tulsa, Texas already has a strong presence in automotive manufacturing, which could ease regulations and transition time in the state. Texas is also home to SpaceX’s Boca Chica Launch Facility. This statement solidifies Musk’s presence in the state and makes it an already familiar option for the CEO’s other company. However, Tulsa has its own array of advantages, a lot of which are similar to Texas but in a slightly

different way. Tulsa also offers a sizeable amount of affordable land that Tesla could use for its next production facility. Although the company has roots in Texas and not in Tulsa, local authorities are ready to make a strong push for Tesla, knowing the electric automaker could provide a substantial positive economic injection into the state’s employment rate. Tulsa is also slightly more centralized than Austin, as it is closer to the geographical center of the country. While it may not provide much of an advantage as far as location goes, it is slightly more centralized than Austin. I also feel like Tulsa may want the factory a little bit more than Austin. I could be wrong here, because what city wouldn’t want a manufacturing plant that will provide 12,000+ jobs and a positive economic impact? But Tulsa took a statue of an oil driller and put Tesla’s logo on it, and I feel like that is pretty special in itself considering the city’s rich roots in oil drilling. It is especially impressive

the local figures in Tulsa are willing to sit there and modify a very notable statue in the area to woo Tesla in their direction. Simply enough, it’s pretty obvious Texas is the favored choice. At least it is for me. While Tulsa does have its advantages, it just doesn’t seem like it would provide enough benefits that make it a clear favorite over Texas. Musk has also mentioned Texas on numerous occasions like I previously mentioned, and really, economically, I think it provides more benefits to Tesla as a company. What do you think? I’d also like to add there were plenty of great emails last week that I received after sending out the Fremont piece. Thanks for being sure to send me messages. I really appreciate the feedback and I love the fact that whether you agree or disagree, you’re telling me your thoughts. Thanks again! We thank Teslarati for reprint permission.

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As TX Businesses Reopen, Short-Lived Coronavirus Safety Net is Dismantled by Emma Platoff, The Texas Tribune

This spring, as a global pandemic promised historic suffering and economic ruin, Texas officials reached for unfamiliar tools. They wove together some protections for the vulnerable, expanding unemployment benefits and child care subsidies, limiting evictions, utility shutoffs and debt collections. As summer approaches with no cure for the virus and Texas businesses reopen to diminished profits, many of the threads in that makeshift safety net are being snipped. The dead top 1,600; the jobless exceed 2 million. The state craves a return to normal. But the ongoing human and economic trauma has touched off a debate between those who believe the pandemic is disrupting a sustainable economic order and those who think it clarifies the fault lines in the system. “We’ve already seen that the institutional framework works―look how low the unemployment rate was before this,” said Vance Ginn, who recently rejoined the conservative Texas Public Policy Foundation as chief economist after a stint in the Trump administration. “I don’t think we’ll see Texans change their mentality of independence. ... I hope we would head in the direction of more markets and not more government.” Others, largely on the left, say the coronavirus’ economic fallout shows Texans need more support from their government, including expanded health care benefits and protections like paid sick leave. “Texas, with all of its success and all of the wealth, was in a situation where it had at least the perception that its affluence allowed it to look away from certain things, to ignore certain types of issues and problems,” said Kirk Watson, a longtime Democrat in the Texas Senate who now serves as founding dean of the University of Houston’s Hobby School of Public Affairs. “Now we have gone through an enormous economic shock. That economic shock put a real light on the fact that there were weaknesses in that system.” It was mid-March when Texas marked its first coronavirus-related

death, and the cancellation of major events like Austin’s SXSW Festival and the Houston Rodeo hinted at mounting economic damage. On March 13, Gov. Greg Abbott declared a statewide emergency. Within the week, the Texas Supreme Court halted evictions, and the Texas Workforce Commission waived the requirement that people be actively seeking work to receive unemployment benefits. By the end of the month, the Public Utility Commission banned residential utility shutoffs in the markets it regulates and the TWC announced it would distribute an additional $40 million to fund child care. And the U.S. Congress passed the CARES Act, which expanded eligibility for unemployment benefits, in addition to sending anyone earning less than $99,000 annually a check of up to $1,200. The temporary public benefits were a welcome surprise in a state as parsimonious as Texas. Still, the needs outstripped the new support systems. At the TWC, phone lines were jammed and servers swamped. The state has now marked its highest unemployment rate on record, 12.8%. And some things never changed. On health care, Texas remained opposed to expanding Medicaid, and the state that has long boasted the highest rate of uninsured residents will add an estimated 1 million more. Texas’ eligibility requirements for Medicaid remain the strictest in the country. Though the state made it logistically easier to receive federal aid to buy groceries through the Supplemental Nutrition Assistance Program—axing an interview requirement, for example—it did not expand eligibility. That means even Texans with no income could be ineligible if they owned any valuable assets, like a $15,000 car. In April 2020, 417,468 Texans applied for federal aid to buy groceries—more than three times as many as applied in April 2019. Between the protections that never were and the protections that are no longer gape holes wide enough to swallow millions of needy Texans. Eviction proceedings have resumed, enough that legal aid attor-

neys anticipate a crush of work. Debt collections can start again, freezing struggling Texans’ bank accounts. Extra child care subsidies offered to struggling families at the start of the pandemic will be discontinued. And those who are out of work will again have to prove they are searching for a job in a dangerous new world in order to receive unemployment benefits, though the state has not yet confirmed a timeline. As businesses reopen at limited capacity, state leaders say getting struggling Texans back to work is the most important strategy. Asked about individuals who lost their health insurance when they lost their jobs, Abbott has said the best way to help is to return them to the workforce. “The best thing we can do is to continue to open up,” Abbott said at a recent press conference. Others counter that an economy still in recovery itself can’t support the millions of Texans who continue to struggle. There’s a “presumption that well, we’re allowing businesses to

be open, so these things no longer need to be in place,” said Jonathan Lewis, an analyst with Every Texan, the liberal-leaning Austin think tank formerly known as the Center for Public Policy Priorities. “I don’t think now is the time to start reducing the response. If anything it’s time to keep thinking about how we can go further in this,” he said. “If we’re not thoughtful about how we respond to the needs of Texans right now, we’re only going to end up making our problems worse in the long run.” Advocates are particularly concerned about evictions. The Texas Supreme Court halted evictions during the height of shelter-at-home orders, but allowed them to resume in late May as the economy reopened in stages. Chief Justice Nathan Hecht told the Austin-American Statesman that “the pandemic hit like a tornado, and we thought a statewide standstill would allow landlords and tenants to stop and take a breath.” See TX Businesses, Page 39

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Continued from Cover

CIF Assistance Bruce, Chris Caris, Benjamin Cupelli, Dave’s Collision Center/Halethorpe, Kelli Dewberry, Jeff Hendler, Kurt Lammon, Timothy Morgan, Partstrader, Clark Plucinski, Petra Schroeder, Sean Carey Consultants, Spanesi Americas, Tanya Sweetland, Tractable and John Yoswick. Funds were also contributed from monthly donors Meredith Bradshaw and Bill Enross. “We are once again grateful to belong to an industry that believes in supporting their own,” said Quinn. “We thank our generous donors and the industry for allowing CIF volunteers to deliver aid to collision repair professionals and their families in need.” CIF has received more than 630 individual applications since March, the majority of which met the organization’s established criteria and were funded. Although the application period ended May 31 and the COVID-19 fund is now exhausted, CIF is still trying to assist collision repairers

and encouraging general donations from the industry. “I was inspired to join the CIF Board of Trustees in early 2019 when I realized just how unique the organization is,” said Ann Gonzalez, CIF board vice president and VP of strategic development for I-CAR. “The support that CIF receives from across the collision repair industry that allows us to then provide assistance back to collision repair individuals in need is exceptional, and something I have never seen in other industries. I am proud to be part of this generous community that, time and time again, steps up in times of need to help our own.” Autobody News talked to three body shop owners from across the

country to find out how CIF support has helped their employees.

Dalton Collision Nearly 30 years ago, Jerry Dalton opened Dalton Collision, a 13,000-square foot body shop in Blaine, TN. Since then, he and his team of 39 employees have focused on providing excellent service, and safety and peace of mind for customers. As the business expanded over the years, Dalton opened a second location in Knoxville last year. The facility is approximately 24,000 square feet and serves the north, central and eastern parts of Knoxville, as well as the surrounding counties. They first learned about CIF last year during the SEMA Show in Las Vegas, when Dalton watched CIF Board President Michael Quinn give a presentation about the organization. Dalton was impressed with the way CIF helped body shop employees at the time in California when they were dealing with The team at Dalton Collision prior to the pandemic wildfires.

When his business began to slow down, Dalton reached out to CIF for assistance. The human resources director at Dalton Collision applied for support on behalf of the employees at both locations. When they received the checks from CIF, Dalton said it reminded him of winning the Publisher’s Clearing House sweepstakes. “It was awesome,” said Dalton. “It sure helped out our employees. They were really appreciative.” He is very grateful for the support from CIF and encourages other collision repair facilities to reach out when disaster strikes. Recently, Dalton said many of the restrictions have been lifted in Tennessee and business is beginning to ramp up. “There are more cars on road, which means more car wrecks,” said Dalton. “We’re starting to see business getting back to where it was. It’s still not where it was but it is getting a little better each week.” As business returns to normal, Dalton’s goal is to increase sales to $1 million a month. He attributes his success to repairing vehicles correct-

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ly the way the manufacturer intended them to be and providing good quality customer service for the local community. Fix Auto Portland East & Fix Auto Gladstone Since the stay-at-home orders were first put into effect, Camille Eber said many heart-wrenching decisions have been made to save her two collision repair locations in Oregon, Fix Auto Portland East and Fix Auto Gladstone. This includes laying off some of the 23 employees to reduce overhead. “I’ve never been an extreme penny-pincher, and now we are analyzing nearly every dollar going out the door,” said Eber, co-owner of both locations. The southeast Portland shop, originally called Roth & Miller, was founded by Chet Roth and C.E. Miller in 1946. Eber’s parents, Jim and Doris, purchased the business in 1963, and Eber took over operations in 1989. Three years after joining Fix Auto Network in 2009, Eber’s nephew, William Bray, became a partner. They acquired their Gladstone location in 2013 and currently focus on repairing late-model vehicles. Eber learned about CIF’s COVID assistance from CRASH Network, a weekly online news digest, and for-

Seven of Eber’s staff received financial assistance from the organization. “What CIF did was above anything I would have imagined,” said Eber. “All business owners know the challenges of managing our businesses, so managing a non-profit like CIF by volunteers generous with their time, and supported by donors generous with their money, is nothing short of remarkable.” Eber is greatly appreciative of CIF’s assistance and encourages the industry to support its ongoing efforts. “Organizations such as CIF can be a safety net to a few or many— any filled need is better than none,” she said. “I want to send an enormous thank you to each person who has touched CIF over the years, including those responsible for the original idea, those giving of themselves to operate it, and the many folks who have sent funds in the past and during these tremendously gut-tighteningly hard times.” Fuller Auto Body In Auburn, MA, Joshua Fuller grew up helping at his family business, Fuller Automotive. Established in 1914, the brand consists of five related companies and has a total of 60 employees, 42 of whom are in collision repair. Since becoming co-owner in 2003, the fourth-generation body

perform the necessary services that our customers are in demand of?” The goal was to maintain some sense of normalcy while providing the ideal situation for employees. Ultimately, they had to scale down operations and furlough 11 people. As a result, they instituted a work shift

At Fuller Automotive, a large tent in the parking lot provides customers a makeshift waiting room

program where employees were provided 20 hours of work and could file for unemployment for an additional 20 hours. Fuller encouraged employees to apply for CIF assistance, and all 17 of those who filled out the application received funds. “They were ecstatic,” said Fuller. “CIF made it very easy to apply. When they started to receive funds,

they thought it was phenomenal.” He said everybody is feeling some type of pain right now and he is grateful CIF could provide support. “I was impressed by how they were able to come in and help so many of our stakeholders beyond what we could do. Every little bit helps,” said Fuller. “We were very fortunate to take advantage of it and so are our people. It’s definitely a welcome contribution.” Since the coronavirus restrictions, Fuller has recognized his employees’ dedication. They have kept busy, cleaning and painting the facility as well as making additional improvements. They also established a reopening committee to plan how to best operate when the business begins to ramp up. Currently, they set up large tents in the parking lot to provide customers a makeshift waiting room. “At the end of the day, we really want to make it welcoming for people,” said Fuller. Fuller said initiatives like these help them focus on moving forward and staying positive. “We want to keep our identity as a brand and provide superior service See CIF Assistance, Page 39

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“Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have been impacted by natural disasters or other catastrophic events,” — Michael Quinn warded the information to the employees who had been laid off. Although she and Bray provided them benefits for a period of time, they were looking for additional assistance. “We wanted to show our employees that there was more support that they may be able to receive if they acted on behalf of themselves and did so quickly,” said Eber. “We also wanted to show that our industry is a giving one.” ‘Collisionista’ Petra Schroeder contacted Eber on a Saturday to verify the employees who had been laid off. “I am very thankful to her for doing the work for these people in need, and appreciate the tremendous support she continues to give to our industry,” said Eber.

shop owner has been passionate about growing the company and increasing industry awareness. As an active volunteer, Fuller has been part of the AASP-MA board directors and chaired the I-CAR volunteer committee for Massachusetts since 2014, and also participates in Collision Repair Education Foundation (CREF) fundraising events. Since the beginning of the COVID-19 situation, Fuller has looked for ways to maintain the safety of employees and customers. “I got into protective mode,” said Fuller. “As an owner, every day you walk in the front door and that is No. 1 on your mind: how do I make sure our people are safe and protected and can

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Determining Whether—and How—to Charge for OEM Research I get a lot of questions from shops regarding billing for the process of researching OEM repair procedures. Obviously, I can’t tell anyone whether to charge for this, nor how much to charge, but I can point to some things you may want to consider as you make that decision for your business. First, I can tell you what our “Who Pays for What?” surveys (www .crashnetwork.com/collisionadvice) indicate about what’s happening in the industry related to billing for OEM procedure research. The surveys definitely show a growing number of shops are charging an administrative fee for this work. Back in 2015, three in four shops said they’d never sought to be paid such a fee. Last year, just shy of half (49 %) said they had. Among those seeking to be paid, about half said the largest eight insurance companies weren’t paying the fee, but

16% said otherwise, saying they were being paid “always” or “most of the time” for OEM research. That was up from just 6% five years ago. Next, I can tell you the two aspects to keep in mind as you deter-

but most charge a subscription fee. If you’re working on a type of vehicle you rarely repair, you might just pay for a day or two of access to that automaker’s procedures, and your receipt for that can serve as part of

A “Who Pays for What?” survey last fall found more than two in five shops at least sometimes include a line item charge to cover their subscription fees to OEM repair information

mine whether and what to charge for OEM research. First, consider what you’re spending to access the OEM procedures. A few automakers make access to the information available at no charge,

the justification for your charge. But maybe you buy annual subscriptions to some automakers’ procedures because you use them regularly. A “Who Pays for What?” survey last year, for example, found more than

25% of shops have an annual subscription to the Honda/Acura repair information website, and even more have one to the Nissan/Infiniti website. In that situation, you might consider calculating a per-vehicle cost for that access. Say you pay $400 a year to access one automaker’s information, and you repaired 100 of that automaker’s vehicles last year. Then that access averaged $4 a vehicle. Whether you bill for it—marked-up or not—is another business decision for you to make. Our surveys last year asked whether shops charge a separate line item specifically to cover the access fees they pay for OEM information. Almost one in four (23 %) say they always or almost always do, and another 20% said they do when using an OEM site for which they don’t have an annual subscription.

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The second thing to consider as you determine whether and what to charge for OEM research is the labor time involved. That consists of the time to find all the needed information within the OEM system, read it, print it and distribute or review it as needed with technicians. As many of you are likely well aware, that can be a time-consum-

el. You need to know, for example, what’s involved in removing and reinstalling the bumper cover. You need to know, if removing and reinstalling a door is involved, whether you need to reinitialize the pinch protection on the window. You need to know what steps are required after reconnecting the battery if disconnected for welding. You need to

el and may change over time. It also can involve digging for needed information other than the first place on the OEM website where you might assume you’d find it. I was contacted by a shop that had researched the OEM procedures for replacing a rocker panel on a specific vehicle. Because no sectioning procedure was shown, the shop re-

Among nearly 500 shops responding to a “Who Pays for What?” survey last summer, about half of shops acknowledged never seeking to be paid for the research of OEM repair procedures they do, yet among those who do charge, 16% say they are paid for it regularly

ing task. One of my teammates, Josh Kuehn, recently wrote an estimate to replace a quarter panel on an Acura MDX. He had to pull more than 90 pages of OEM repair procedures. It’s not a matter of just pulling the procedures for the quarter pan-

look up all the corrosion protection steps involved. Some might argue that Josh should know some of what’s included in those procedures. But you can’t take anything for granted, because procedures vary from model to mod-

placed the entire rocker panel. The insurance company involved refused to pay because there was a sectioning procedure. It just was included under the door post section of the OEM website. So sometimes you have to think

outside the box and look in other areas as you do the research. All of the OEM websites are organized differently. I had a similar experience to Josh’s when I recently wrote an estimate to replace a quarter panel on a Toyota Camry; more than 90 pages of documents were involved. I by no means claim to the best at researching OEM procedures, but I believe I’m above average. Yet I easily had five hours into researching the OEM procedures and writing the estimate. Now obviously, the more OEM research you do, the better and faster you will get at it. Repetition breeds efficiency. That’s why a few shops— our surveys indicate about one in 20—designate a particular person to do all the OEM research. There are third-party solutions that standardize the organization of the OEM information, which is great, though I still am a proponent of accessing the OEM information directly. But in any case, this is definitely not a five-minute task. I know there are efforts under way by automakers, estimating sysSee OEM Research, Page 42

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Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings Then, in October 2011, Attanasio was presented with a binder filled with Ed Attanasio started our Day Job/ all the drawings he created during his Night Job column here at Autobody rehab: an eclectic collection of baseNews in 2017, writing stories about ball and football players, gangsters, people in the collision repair indus- dinosaurs, dogs, birds, monsters and try who have amazing sidelines and aliens. second careers as musicians, artists, “All of the peculiar-looking ilauthors, performers—even a techni- lustrations that emerged from my stroke-scrambled brain were all tocian with a world-class Frisbee dog. Attanasio has interviewed a wide gether and ready for something…but range of creative people in different what?” he said. “Could this be more capacities within the collision repair than just a hobby or a distraction?” industry, and now Autobody News is The answer turned out to be yes. covering him and his dynamic art ca- Attanasio sold his first piece, “Bushers,” consisting of 48 fictional reer. baseball players, for $3,000 at a gallery in San Francisco. It also led to a graphic novel based on the image and gallery shows throughout the Bay Area. In April, Ed began looking around for something he could do to bring joy to people during the COVID-19 ABN Writer Ed Attanasio started a thing called the pandemic. Pandemic Pet Project to use his art to create goodwill One day, a few friends during these uncertain times. Credit: Ed Attanasio asked him to draw their pets, Attanasio started sketching as and when they saw what he created, a form of rehab after he had a mini he said they either smiled or cried stroke in 2009. Little did he know that tears. So, he reached out to all of his eventually, his illustrations would lead friends on Facebook and Instagram to a career as an artist, surprising art and started the Pandemic Pet Project critics, gallery owners, his friends and (PPP) to draw abstract images of peoples’ pets for free. In return, Attanasio even himself. Attanasio’s stroke didn’t hamper his motor skills, but it did affect his brain to the point where he was forced to take a break from his job at Autobody News. To occupy his time, he began drawing a series of illustrations on Post-It notes for hours and hours during his 14-month recovery. Attanasio said he drew these characters only as part of his therapy and nothing more at first. “I never thought anyone would see them, and I surely never imagined I could sell them. My friends He is creating four images daily, with more than 200 completed and 150 still left to draw always seemed to enjoy the characters, but eventually [the Post-It notes] asked them to pay it forward by dowould migrate down to our refriger- nating as much as they could afford ator door and after a while, they’d to their local pet rescue organization. disappear,” Attanasio said. “I figured What started out as a favor to they were getting tossed, but I wasn’t friends soon gained momentum and concerned, because I could see that I turned into something much bigger. was steadily improving and knew the “I thought maybe half a dozen people would respond, but on the first art was playing a role.” by Autobody News Staff

day, I had 30 requests and more than 50 by day two, and it’s still growing!” he said. Attanasio added the total to date is 350 illustrations requested and more than 200 completed.

Many people take photos of their pets with the art and post them on the Pandemic Pet Project page on Facebook

Attanasio’s art project has attracted media attention from outlets such as the San Jose Mercury News, KNTV, KGO, East Bay Times and the Associated Press of Taiwan, among others. As far as methods go, Attanasio said, “I get the colors and image in

my head right before I draw. I never sketch first; I just dive in.” A writer for Autobody News since 2008, Attanasio said, “I love writing about all of the philanthropy in this industry and interviewing interesting people like the late Gene Crozat, Michael Anderson and Todd Tracy, the attorney in the John Eagle Honda case. I’m known for writing feel-good features highlighting all of the positive things in this industry.” To learn more about The Pandemic Pet Project, check out the Facebook page: www.facebook.com/ pandemicpetproject/?modal=admin _todo_tour Would you trust your pets with Attanasio? If so, submit photos of your cat, dog, bird, lizard, goat or horse along with your mailing address to him via Facebook Messenger and get ready for a small piece of original art to arrive on your doorstep. Limit two per person. “If I cut off an ear, maybe these will be worth something one day,” he joked.

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Silicon Valley Tech School Pushes Through Pandemic by Ed Attanasio

The pandemic has impacted tech schools throughout the country as they adapt to a whole new world. Online classrooms, drive-by graduations and online testing have become the norm, and many administrators are saying that some of these changes will stick long after the virus has passed. Nathan Chukes is the auto body refinishing instructor at Silicon Valley Career Technical Education (SVCTE) in San Jose, CA, with

Nathan Chukes has been teaching at SCVTE for 18 years and is known for being tough but fair

three decades of industry experience and 18 years as a teacher there. He runs the program with another instructor, Robert McTaggart. Chukes is well-known in the world of collision repair instruction for being a tough instructor who commands excellence, but many of his former students say only wonderful things about him. It’s been a new road to travel for Chukes and his students, but by adapting and changing his approach, things are working. “This year with the pandemic it has been very challenging and difficult for high school students throughout our country,” he said. “For me, as an instructor, I faced similar challenges, but I had to find a way to deliver instruction to my students. With only a quarter of a semester left of our school year, all hands-on and shop instruction was halted, due to the virus. At that point all instruction became viral with Zoom lessons and audio lectures.” Every year, Chukes gives awards to his star pupils, he said. “In the two classes I teach daily, there were four students in my program that stood out above all,” he said. “They never gave up, never

complained and never doubted that they had enough skills and knowledge to continue forward to graduate and prepare for the next chapter in their lives.” Chukes gives excellence awards every semester and seems to be a pretty good judge of talent, because several past recipients have gone on to be body shop owners, gifted painters and top technicians over the years, he said. This year’s award winners are: Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refinishing Class Senior Manuel Soto from Prospect High School in Saratoga, CA, received the award for Outstanding Student in Chukes’s PM Refinishing class Senior Jose Gonzalez from San Jose High School in San Jose, CA, received the Achievement award in Chukes’s AM Refinishing class Senior Manuel Madera from Andrew Hill High School in San Jose, CA, received the Achievement award in Chukes’s PM Refinishing class Every year, the school has an awards ceremony, but because of the pandemic, Chukes delivered the plaques to the winners at their homes, accompanied by signs to signify the moment. “It was of great pleasure to hand-deliver these custom signs to the homes of my award winners for the 2019-20 school year,” he said. “These four students deserved these awards, so I was going to do anything I could to get them in their hands.” By teaching high school-level students the latest technological changes in the industry and working with local body shops and vendors, Chukes is making all the right moves, and receiving unprecedented industry support as a result. Chukes was a journeyman painter for many years before he was hired at SVCTE. He has ASE certifications in both structural and non-structural repair and continually refines his classes to accommodate the industry as repair processes, tools and equipment change at a frenetic rate. Formerly known as the Central County Occupational Center (CCOC) before changing its name eight years

ago, SVCTE currently offers a two-semester program for high school students from six school districts in the South Bay Area interested in careers in the collision repair industry. After teaching for so many years, Chukes said this is no longer a job and more like a calling.

Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refinishing class

“I have been doing this so long that it’s in my DNA,” he said. “We have seen so many first semester students who have come here with very little knowledge and just two years later, they’re totally employable and have developed some confidence. “At here, they get to work on actual vehicles and they’re using the

identical tools that they will be using at a shop. Our goal here is to duplicate the real world out there as much as we possibly can, so teach them only OE procedures and always focus on safety and working in an organized way. “We also make sure to teach them life skills that they are going to need out in the working world, such as being punctual and communicating clearly. We want them to have the skills, but we also want them to be successful as people too.” Once the students have completed the program after one or two years, depending on what they choose to learn, Chukes and McTaggert will assist them in finding internships and jobs at local body shops. “We are constantly reaching out to the body shops, and many of them are willing to help us with old parts that the students can practice on, for example,” Chukes said. “When we see a graduate that is working at a local shop and we get good feedback about their performance and attitude, that is very satisfying.”

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All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications by Chasidy Rae Sisk

Now that the world has been dealing with the COVID-19 pandemic for a couple months, things are slowly starting to reopen, leading people to talk about the new normal and what life will be like post-corona. Bogi Lateiner, of All Girls Garage, dove into the topic of “Post Corona Customer Care and Communication” during a recent installment of a collaborative series of technical and management classes focused on necessary topics for navigating business operations during the COVID-19 pandemic. The series is hosted by the Carquest Technical Institute and Worldpac Training Institute (CTI+WTI.) Charlie Sanville, most commonly known as the Humble Mechanic from YouTube, introduced Lateiner, who began by posing several questions: “How much has changed, will these changes be permanent and, if not, how long will they last? “We’ve all been forced to find ways to carry on with many aspects of our lives, including auto repair,” Lateiner said. “Here’s my suggestion: What if corona isn’t really a game changer at all? What if it’s a game elevator? Maybe, the pandemic is giving us a clearer view of what has to change within our world and within our industry and challenging us to change our perception of things.” “Very little has changed on a deep and fundamental level,” Lateiner insisted. “But this affords us a unique opportunity to examine what we, as an industry, are doing to care for our teams and our customers. Do we have the things in place that it’ll take to move into the future? “The automotive and collision industries have been in the process of revamping how we serve customers and compete for some time. We don’t know the outcome of COVID-19 since it’s still happening, but this is the time to ask ourselves the hard questions and hopefully come up with new innovations.” Although the outbreak has devastated countless businesses, that is the case with any other major disruption as well, so shop owners should

focus on what it means to run a successful shop in a turbulent world, regardless of the current disruption. “How you handle it will determine whether you succeed or not; disruptions are weathered by businesses that are willing to question, adapt and grow,” Lateiner said. “We’ve seen shops go out of business, but other shops are thriving because they are embracing change. If you’re not in a

Bogi Lateiner of All Girls Garage

state of growth, you’re in a state of decay. This is a natural process, but right now, it’s moving as an unprecedented rate.” The COVID-19 pandemic is a huge disrupter, but Lateiner believes the bigger issue is not being customer-centric. “Not focusing on your customers will be more detrimental than the pandemic itself. We’re in the business of customer service, and we need to re-evaluate what being ‘of service’ looks like,” she said. “The most dangerous phrase you can utter is ‘We’ve always done it this way,’ because the same thinking leads to the same results. If we dig in our heels, we’re not going to survive—being self-righteous isn’t going to serve us, but being customer-focused will.” Lateiner pointed out that customers’ increased concern for cleanliness, desire for digital appointments and tendency to drive fewer miles are all things that have been trending in that direction. “Coronavirus isn’t changing anything—it’s just exacerbating and accelerating things,” she stressed. “How we do things might change, but the why shouldn’t change. If you’re just in business to make money, that’s not going to cut it, but that was never enough. “We’re in this business because we want to be people’s heroes,”

Lateiner continued. “We keep them safe and treat them respectfully. That’s how we compete with dealerships; we care so much about our customers, and that shouldn’t have changed even though COVID has raised the stakes and the stress level.” Because most people are under increased stress, Lateiner emphasized the importance of ensuring service skills are well-honed. She reminded attendees customers have never been excited to come to the shop. “People are scared of being taken advantage of. They come to you with baggage from past experiences and stereotypes about the industry, but with less financial security in the current crisis, people are even more stressed, so you need to approach them with empathy and realize they are experiencing a whole range of emotions that you can’t predict,” she said. “We never knew what was going on for our customers, but now, everything is exaggerated.” Lateiner said the only opinion that matters is that of the custom-

ers. People are divided on believing the pandemic is real or a hoax, but a shop owner’s job is to recognize this divide and adapt their business practices to accommodate those customers who are terrified for their lives. “Your opinion doesn’t matter,” she said. “It’s not about you, it’s about your customer. Your customer’s perception is your reality.” Despite the changes caused by the pandemic, the essentials of communication haven’t changed. It’s important to carefully choose words and monitor tone to build trust. “During high stress, listening skills are non-existent,” Lateiner explained. “A stressed customer isn’t thinking clearly, which increases the chance for missed communication, which is the cause of 99% of customer problems. “All customers have one thing in common: their humanity. They need help solving a problem, but they come to you with thoughts and feelings of their own. People want respect and appreciation, to be valued and heard, so it’s more important than ever that

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you are present, listening actively and suspending judgment.” Communication begins being 100% present to completely hear what the customer is saying and pick up on any non-verbal cues. Next, practice active listening, encouraging customers to fully express their needs. Finally, suspect judgement. “Judging a person doesn’t define who they are; it defines who you are. People don’t feel heard when they feel judged,” Lateiner said. “You don’t know what’s motivating their decisions, but you need to respect them.” Shops should get creative in their communication, employing ways to make customers feel comfortable. Adopt new policies as needed, then communicate how the shop is taking care of its customers. Communicate alternatives to avoid person-to-person contact, but with fewer customer interactions, it’s important to make each one count. Social media is a great way to demonstrate all of these items. Dealerships have the advantage because they’ve had processes in place to meet customers’ current needs for a long time, but independent

shops can compete by playing on their own strengths, which is building relationships. “If you don’t get creative in how we do that, the advantages of going to a small shop gets eroded. We’ve got to step up our game to keep from becoming a commodity,” Lateiner urged. Addressing how to deal with challenging customers, Lateiner reminded everyone of customers’ stress levels in the current situation and pointed out that an upset customer wants to feel heard, be acknowledged and know the perceived wrong will not happen again. “Remember it’s not about you. It’s not a personal attack, even though it often feels that way—unless you’re being intentionally obnoxious and awful, this just isn’t about you. You have to be kind and empathetic, even when they’re not being kind to you. “You cannot argue with feelings,” Lateiner added. “The accuracy of the complaint is 100% irrelevant because you can’t control their perception. The reality is they’re upset, and we’re not dealing with the complaint, we’re dealing with their feelings. You can’t tell them what they’re

allowed to feel, and feelings of lost power, fear, sadness and more often comes out as anger because anger is more socially acceptable. You can’t meet anger with anger, though. You have to meet them where they’re at and work together to resolve the problem.” Lateiner also advised it’s best to let an angry customer get their feelings off their chest since they are physically unable to listen to you until they’ve released their anger. “When they’re done, you can start the rest of the process, but if you start talking before they’re done, you aren’t going to get anywhere. You just have to shut up.” Mistakes made should be owned, using the five-part apology. Thank the customer for bringing the issue to your attention, use empathy, acknowledge them, offer a genuine apology and then work with them to come up with a solution. Lateiner also recommended practicing self-care. “It’s a priority and a necessity, not a luxury. If you have a really rough customer, take a walk or watch a video to make your heart happy and

fill you back up. Otherwise, you’ll take that bad experience to your next customer and wind up with a whole days’ worth of unhappy customers. “Don’t get stuck, get excited about this and make it an opportunity,” Lateiner encouraged attendees. “Get excited about growth and challenge. Use it as inspiration to innovate and ensure that, in the thinning of the herd, your shop is one that not only survives but thrives because many shops are truly thriving right now, despite the challenges and obstacles.” “We don’t know what the world looks like after COVID-19, but we know that what comes next, the future of our industry, is up to us. Let’s choose collectively to make this be the thing that launches our industry into positive growth. Let’s leverage this to show the world how great this opportunity is, and let’s see it as an opportunity to better ourselves and our industry, and to take better care of our customers in the future.” A complete webinar schedule for this series is available here http:// worldpac.com/training/classes/online/ or here https://ctionline.com/

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The Auto Industry’s Response to Black Lives Matter Protests by Morgan Pritchett, The News Wheel

zations that money would go to.

Over the last two weeks, the nation has come together in protest of police brutality against black individuals following the death of George Floyd. While some automakers are adamantly speaking up in support of the Black Lives Matter movement, many are staying silent. Let’s take a look at which brands are standing up for justice.

Mercedes: Before posting a black square on Blackout Tuesday, Mercedes-Benz published a statement on Twitter about standing up for racial inequality: “When injustice occurs, people have a responsibility to speak out. Companies have a responsibility to take action. We’re making a donation

Donations and statements BMW: After participating in Blackout Tuesday, BMW tweeted the following: “BMW Group stands with those who demand a more inclusive, equal and just society, that’s why we will be making a donation to the @ naacp_ldf in support of the Black community, #wesupportblacklives” with a link to the organization’s website. The amount of the donation was not disclosed and, after reaching out for comment, the automaker did not go into details on the amount. General Motors: CEO Mary Barra, in a message to employees, wrote: “I am both impatient and disgusted by the fact that as a nation, we seem to be placated by the passive discussion of ‘why.’ There comes a time when we are compelled to stop diagnosing what is wrong and start advocating for what is right.” Barra also said she would commission an inclusion advisory board of internal and external leaders, including herself. The company announced June 5 it would be donating $10 million to organizations promoting inclusion and racial justice. Inﬁniti: On the automaker’s Facebook and Instagram profiles, Infiniti took a stand against racism in the form of a post stating, “Life should be a right, not a luxury. Black lives matter.” Another post stated, “Having a social platform is a luxury. We will use ours for change,” along with a caption that included, “Our first step to doing our part is to halt our advertising, to make more space for Black voices on social media. We’ll be dedicating our social media to organizations we are supporting and donating to, in hopes that you will join us.” There was no follow-up about the donation amount(s) or which organi-

Protestors have been making their voices heard worldwide� Credit: Taymaz Valley via CC

to the NAACP Legal Defense Fund and invite you to join us.” There was no mention of the donation amount. Statements Ford: CEO Jim Hackett and Executive Chairman Bill Ford told employees the company would “lead from the front” and “we know that systemic racism still exists despite progress that has been made. We cannot turn a blind eye to it or accept some sense of ‘order’ that’s based on oppression.” There was no mention of any sort of donation in the full statement and I have yet to hear back after reaching out for comment. FCA: According to the Detroit Free Press, CEO Mike Manley wrote the following in a letter to employees: “On behalf of everyone at the company, I emphatically reject the hatred and prejudice that still tears at the fabric of our society and which led to the death of George Floyd and so many before him. Although we are seeing the rawness of this issue exposed in the United States, the scourge of racism and discrimination has no respect for international boundaries. As employees of one of the largest companies in the world, we absolutely have the individual and collective power to make a difference. Starting from how we treat each other at work through to creating opportunities for everyone to fulfill their potential, FCA can be a powerful and meaningful force for change.” A rep for the brand told

me that the company does not have any plans for a donation announcement at this time. Honda: The Honda Twitter account retweeted the Honda Inclusion account and said, “After listening and reflecting during this painful time, Honda is putting its beliefs and values into action,” with a link to the Honda media site. In the lengthy press release, which was sent directly to all Honda employees, the automaker discussed the importance of inclusion and diversity. It then went on to list ways the company is taking steps to help the black community, as well as ways others can chip in. While there was no confirmed solitary donation mentioned, Honda has a history of supporting HBCUs and minority-owned businesses through its many charity organizations. Lexus: Along with postponing the world premiere of the new IS out of respect, Lexus took to its social profiles to announce it was against racism and asked for ways it could help.

On Twitter, it said, “Use our comments section to tell us how we can do more to raise awareness in an effort to end unacceptable bigotry and societal issues of violence, killings and racism.” It’s not the most proactive method of helping and certainly speaks to the lack of diversity in the company, but at least it’s looking for ways to help. We’ll see if it follows through with some sort of diversity training or donation. The Lexus media rep has not yet replied to my inquiry regarding a donation. Mitsubishi: Before reaching out to Mitsubishi, the brand had yet to post anything about the nationwide protests. After reaching out, I received an email the next morning, June 9, stating the company would be releasing statements on all social platforms. The post included the acronym RESPECT, which stands for Respect, Embrace uniqueness, Share best practices, Personal commitment through self-awareness, Educate every employee, Commit to corSee Black Lives Matter, Page 40

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Ford Cautions Against the Use of Aftermarket Glass Ford Motor Company issued a statement outlining what it says is the need for OEM glass to be used in replacement on the company’s vehicles.

The statement says the “[w] indshield and side glass play an integral role in the performance and functionality” of some of the passenger safety features and “it is critical that the vehicle be restored to proper operating condition” when it comes to glass removal and replacement. “The original glass used on Ford Motor Company vehicles is designed and built to provide optimum fit, function, safety and structural integrity. The quality, performance and safety of aftermarket replacement windshield and side glass may not meet Ford Motor

Company’s exacting specifications, and can result in key safety features not functioning properly and reduced customer satisfaction in the performance of their vehicle,” Ford says in the statement. “For these reasons, Ford Motor Company does not approve the use of aftermarket windshield or side replacement glass. Only by using Ford Original Equipment Carlite replacement glass can you be assured of the fit, function, safety and structural integrity of the repair.” The company goes on to list the specific links between glass and the technology in their cars. Some windshields have cameras and integrated camera brackets for use in different Advanced Driver Assistance Systems (ADAS), and Ford says these cannot be replicated on aftermarket windshields, some of which, the company indicates, “often contain distortion that adversely affects the cameras operation, which can result in improper ADAS operation.” Head Up Display (HUD) windshields are specifically designed and manufactured to elim-

CCC Reports Growth of Photo Estimate, AI-Supported Claims

Kinderhook Acquires Original One Parts

CCC Information Services Inc. (CCC) reported May 28 that photo estimates and AI-supported claims have expanded at a record pace exceeding double-digit growth since the beginning of the year. The rapid adoption of digital technology is in direct response to social distancing and work-from-home protocols initiated to combat COVID-19. CCC industry data shows the insurance industry recently surpassed 3 million estimates initiated leveraging photo technology, since tracking began in 2018. The company also reports the percentage of claims processed through CCC® Quick Estimate, the company’s mobile photo estimating solution, has more than doubled from January to April, as carriers are accelerating use and adoption of digital tools in response to COVID-19. CCC also reports a similar trend in estimates written using CCC® Smart Estimate, the world’s first AI-guided estimating solution. Smart Estimate applies AI and estimating logic to photos captured with Quick Estimate. Source: CCC

Kinderhook Industries, LLC, announced June 4 the acquisition of The Original One Auto Parts LLC. Financial terms of the transaction were not disclosed. This represents Kinderhook’s 86th acquisition in the automotive aftermarket. Headquartered in Dallas, TX, Original One Parts is a leading provider of recycled and refinished certified original equipment manufacturer (OEM) auto parts for use in both collision and mechanical repairs. It serves independent collision repair shops, dealership service centers, multishop locations and other customers. Original One Parts’ management team will be led by industry veterans Wade Hilburn and Jerry Sullivan. Kirkland & Ellis LP served as legal counsel to Kinderhook. Source: Kinderhook

inate secondary HUD images, and SoundScreen® acoustic windshield and side glass are engineered with acoustic dampening technology

within the glass layers to reduce road, wind and other exterior noise to maintain the quiet interior ride of the vehicle, none of which, Ford says, can be duplicated to the same degree by aftermarket glass. “Aftermarket glass often does not meet the same stringent specifications as genuine Ford glass and can result in poor quality HUD performance,” according to the statement. We thank glassBYTEs.com for reprint permission.

Help from Foundation foundation. “I’m going to keep this in the back of my mind, and whenever they ask for what they need, I’m going to try to respond.” The foundation’s COVID-19 Fund received more than $260,000 in donations. To donate, visit: https:// www.flipcause.com/secure/cause_ pdetails/Nzg3MTk= To apply for assistance, visit: https://www.flipcause.com/secure/ your_details_more_info/Nzg3NTQ =/49150 Petra Schroeder, an industry consultant who serves on the board of trustees for the foundation, said its COVID-19 Fund has received more than 560 applications for assistance, though that includes some from people outside the industry, who were denied since they did not meet the foundation’s criteria). By late May, more than 350 valid applicants—70%—have already received funds, with the rest in some stage of the verification process.

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ATI Shares Five-Step Rapid Recovery Plan for Automotive and Collision Repair Shops for Beyond COVID by Chasidy Rae Sisk

The Automotive Training Institute (ATI) on May 19 shared valuable information related to the current situation and how to survive the pandemic in “Beyond COVID: A 5-Step Rapid Recovery Plan for Auto Shops.”

ATI Senior Instructor and Coach Chris Brower discussed how to build customer trust and comfort, adjust marketing plans for today’s business environment, restore car count, build cash flow and “prepare to hit the ground running at the outbreak winds down.” “It’s going to be a while before we return to normalcy, and when we do, there will be new norms,” Brower began. “We need to understand that and stayed focused on our goals and our vision. We can’t allow COVID-19 to be something that prevents us from moving forward; we can’t let it distract us from what we ultimately want out of our business. “You need to be profitable because it takes money to do the things you want, so we need to get back to some of the basics.” Most shop owners have goals that include more free time, retiring with financial security, finding quality employees, keeping employees happy and making more money, but all those goals begin with having more money. “Shops sell parts and labor, and that should be a 50/50 mix,” Brower explained. “Anything you make money on has to be a cost of goods sold on your income statement. Producing sales, managing the cost of goods sold and then making changes as possible is the most basic way to run a successful shop.” When gross profit is equal to a shop’s fixed expenses, that’s the break-even point. Before a shop owner even opens the door to customers,

the shop starts in a deficit where a certain amount of money is needed just to get back to zero. Plus, money must be made on top of that to cover operating costs. “It costs money to operate every day,” Brower pointed out, explaining how to calculate the true cost of technicians, including wages, taxes and benefits. “You need to evaluate this cost for every team member to see who’s pulling their weight, but you also want to look at this as a team number to determine how much the team needs to produce,” Brower said. “It takes money to provide your team’s benefits, and the better the benefits you offer, the better you’ll be at attracting, hiring and retaining the right people. “There are too many things in our business that slow us down and are out of our control. That’s why establishing your shops effective labor rate is so important,” Brower said. “Your shop's effective labor rate is what your team needs to produce per hour to hold the desired 60% labor margin to remain profitable. “Margins make you profitable, but dollars pay your bills and allow you to accomplish the things you need and want to do.” Brower reminded attendees they need to make enough money to cover their expenses and have sufficient funds to live on. He recommended shops hold around 50% to 55% on general parts margins and charge around 8% of parts and labor sales for shop supplies, reminding everyone shops lose 3% of their total sales from shop supplies. These are parts or items used in the repair but don’t necessarily go on the car, including protective materials, cleaners, wires, lubes and adhesives. Brower also explained how to sell value to justify the shop’s pricing on parts, knowing the customer can buy the part cheaper then what the shop is selling it for. When ATI helps a shop build a “Road Map to Success,” it begins by working backwards to examine how much overhead the shop has, what investments are needed for the business and for retirement and how

much the shop owner makes, to determine the total gross profit needed. “The shop owner is typically the lowest paid person in the shop, and that’s wrong,” Brower said. “We work from the bottom up to make sure you achieve your goals, starting by determining how much gross profit you need. Then, we work backwards to build you a road map. “Have the right mindset, a positive mindset,” Brower encouraged. “You’re an essential business for a reason. Sanitation and cleanliness are the new norm and aren’t going away; people are always going to expect

tain a couple extra cars each week. “Your messaging should be sincere and supportive—not pushy or promotional,” Brower noted. “Let people know you’re there but not desperate. Don’t try to force them to come in. People still need their cars. Make sure you’re doing the things you tell them you’ll do to sanitize their vehicles and keep them safe.” When it comes to warm calls, shops should prioritize the most unsafe items first, then the items that will become unsafe over time, ending with repairs that keep the vehicle healthy but aren’t unsafe.

“We need to stand out in times like this. Build your brand, and make it stronger.” — Chris Brower this. Remain proactive. Stay on top of things as they change. Make this a daily cadence in your business. “We will get through it. This too shall pass, and when the outbreak is over, you’ll need to hit the ground running.” Rather than cutting marketing, Brower advised shops to adjust marketing, because there is now greater accessibility to a captive audience, essential workers still need reliable transportation to get to work and non-essential workers fear losing transportation for high-priority errands, medical emergencies and the ability to commute to work once they are re-employed. “Adjust your marketing, don’t cut it,” he urged. “We need to stand out in times like this. Build your brand, and make it stronger.” Exploring ways to adjust marketing, Brower suggested offering pickup and drop-off services and goodwill discounts. Notify customers the shop is open, and educate them about the precautions being taken to keep them safe. Shops should determine how many more cars they need to offset the car count deficit, and then reach out to customers through warm calling, email marketing, text messaging and social media. Brower also discussed how using call forwarding during the hours the shop is closed can help ob-

“This helps you refill the pipeline and survive. You miss 100% of the opportunities you don’t take,” Brower said. Text messaging can be used for appointments and other reminders because it’s quick, engaging, affordable and opt-in so customers are agreeing to this form of communication. In fact, most customers prefer text messages, though email can also be an effective marketing tool. According to Brower, effective emails only include useful content, are easy to skim and are concise, though the return rate on texts is higher. Using social media to disseminate pictures and videos of the shop, processes and community outreach creates goodwill. “This is how to build your brand in a time like this,” Brower said. To schedule a phone consultation with ATI, including a free business health check, visit autotraining. net/register

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with Erica Schroeder

Industry Insight with John Yoswick

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

Shops Share More Ideas on How to Get Work In the Door

Shop Showcase

Shops’ backlog of work dried up this on marketing and radio ads, includspring, with one national survey of ing advertising for restoration work, 500 shops finding that even in April, which we have not done in more with Ed Attanasio more than three in four could sched- than 20 years,” he said. ule any new work within one week Another New Hampshire shop or less. owner said he’s halted ads “slamming So what steps are shops taking insurance companies,” and is instead to try to get more work in the door? “projecting a positive attitude that we Massachusetts shop owner Carl are all in this together and we all will Garcia said being a LINE-X fran- pull through, and that my business with Ed Attanasio chise has helped, as Carl’s Collision will be here to help out the community Center has seen an influx of custom- in any way.” ers putting some money—including Gigi Walker of Walker’s Auto federal stimulus funds—into fixing Body in Concord, CA, is calling her up their pick-ups. shop’s regular fleet accounts to ask if “We’ve gotten very big into RVs, they have “any clean-up work we can fixing a lot more of them than ever do on any of their fleet vehicles.” She with Ed Attanasio before,” Garcia said. “I think we’re said the shop is offering free detailing going to have to have an open mind for each vehicle that comes in, and is about doing different types of work to “doing work for the food bank fleet at no cost to keep them on the road.” survive in the future.” Michael Berounsky of Ben’s Auto Jeanne Silver of CARSTAR MunBody in Portsmouth, NH, agreed. delein in Illinois said they are pursuing with Ed Attanasio “We’re spending more money more fleet work as well, and is having

Social Media for Shops

SEMA Show Goes On

the shop’s marketing manager “contact local agents on a regular basis to let them know we are open.” The shop has been getting a lot of customer engagement with “Guess the Estimate” contests, in which the shop posts photos of a damaged vehicle on its Facebook page and offers gift cards to local restaurants to those whose guesses come closest to the actual repair costs. A shop in North Carolina installed a large sign in front of the shop to honor students graduating this spring; anyone who posts a photo of themselves in front of the sign on Facebook is being entered into a drawing for three cash prizes, totaling $800. John Quinonez of Kidd Collision in Garden City, NY, said he has started a business referral program through Alignable.com. A Pennsylvania shop is marketing that it is prioritizing “fast track”

Media and Publicity for Shops

GM Designates $10M for Inclusion, Racial Justice

CREF Announces Online Virtual Golf Fundraiser

Shop Strategies

General Motors announced JunePhillipsGolfing and online game enthusiwith Stacey asts around the globe are invited 5 it has designated $10 million to to join the Collision Repair Educasupport organizations that protion Foundation (CREF) “fore” its mote inclusion and racial justice. first virtual golf fundraiser, Satur An initial $1 million will go day, July 25. to the NAACP Legal Defense and The online event will take the Educational Fund. Recipients of place of the annual CREF summer additional funding will be deterwith Stacey Phillipsgolf outing, which was scheduled mined with input from GM’s Emin Philadelphia along with other ployee Resource Groups (ERGs) industry meetings. and the recently announced GM Through a $25 donation, Inclusion Advisory Board (IAB.) players will take part in golfing GM’s IAB will consist of 18 holes using TopGolf’s online leaders from inside and outside the game, and the first 150 to register company, with the goal of making Stacey GM the most with inclusive companyPhillipswill receive a CREF attendee bag with promotional items. in the world. GM Chairman and Thousands of dollars in CEO Mary Barra will chair the prizes and promotional giveaways IAB. will be randomly awarded to play The GM program includes ers throughout the day of the event. the opportunity for employees Funds raised through the event to give to organizations, and will support CREF’s efforts to asa corporate matching of those with Stacey Phillipssist high school and college colliemployee contributions. The sion programs across the country. employee contributions and the Register online now through GM matching funds are part of CREF, www.collisioneducation the $10 million. Program details foundation.org will be distributed to employees when finalized. Source: CREF Source: GM

Body Shops Giving Back Tips for Busy Body Shops My SEMA

Shop Strategies

repairs for any first responders. Old Dominion Collision in Eugene, OR, is sprucing up the “curb appeal” of the facility. “We are keeping everyone busy— using our PPP loan money—making lots of needed updates to the shop: painting, concrete resurfacing, front of building facelift, etc.,” shop owner Dustin Caldwell said. He said the company is also adjusting some of its social media and online marketing strategies, such as halting its location-specific geo-fencing, which shows ads to those within a specific geographic boundary, such as another body shop. “We are finding that not many people are shopping around, and are just picking a shop and going there,” Caldwell said. “It just didn’t make sense targeting our competitors when they are seeing such a reduction in traffic as well.”

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TX Businesses “But the state’s trying to reopen,” he said, “and we’re all going to have to deal fully with the hard issues that we face.” As is so often the case in Texas, social supports differ across the state. Certain cities, like Dallas and Austin, created their own eviction protections, and federal law protects many tenants through August. That still leaves Texans like Phoenix Morgaine, whose landlord put a “for rent” sign in the yard of her Belton home even before evictions could legally proceed, afraid of being dragged into court and forced to sleep in their cars. Some cities have offered limited rental assistance programs, but those funds dried up quickly and no statewide alternative has materialized. The utility shutoff protections Texas imposed were also a patchwork from the start. Slated to last six months, those protections have already been clipped, and now are only guaranteed

through mid-June. But many Texans were never protected anyway, because the state agency doesn’t regulate all electricity or water providers. Amy Allen, who works in property management, was shocked when Hawley Water Supply, just north of Abilene, shut off her water during the pandemic. Her company hadn’t been evicting tenants; she hadn’t realized anyone would take such drastic action during times as difficult as these. “I called and I said, ‘So how are you legally able to do this?’” she said. “Do they answer to anyone?” She and her husband, a self-employed diesel mechanic who has struggled to find work over the last few months, scraped together $140 in cash, and he drove 15 miles to pay the bill in person. “Thank God for the stimulus check,” she said. Federal dollars have been the driver of many of the supports Texas has offered residents during the past few months. But in some cases, the state has left money on the table. That’s the case with Medicaid expansion, which even with a generous

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federal match has remained politically impossible in Texas. Another federally funded support program was child care, a system advocates say was already disastrous before the pandemic hit. On June 1, the state will stop covering child-care costs that low-income parents pay under typical circumstances, and child-care subsidies for essential workers will be phased out over the next three months. The TWC announced both moves the day after Abbott reopened child care facilities for all parents. Removing these supports offered “early indicators that we will follow the path of least resistance,” Watson said. But the state, he argued, has an unprecedented opportunity to reevaluate what works and doesn’t in its economy. “We cannot squander this opportunity,” he said. “Shame on us—shame on us—if we set aside the revelation of our best sides and our best values to fix flaws in a system that proved not to be as resilient as we thought it might be— and then we just went back.” We thank The Texas Tribune for reprint permission.

Continued from Page 20

CIF Assistance as we’ve always done,” said Fuller. “We’re just trying to weather the storm and know that brighter things are on the other side.” For more information about CIF, visit: http://www.collisionindustryfoundation.org, Facebook https://www.facebook.com/CollisionIndustryFoundation/ or LinkedIn. https://www. linkedin.com/organization-guest/ company/collision-industry-foundation-inc?challengeId=AQFdirMkIKv2vwAAAXKWK8w8XsC9LJ38V4xkntk27UXZlWI8 w c y 8 i 5 T T 0 x N g y Yp G o K W q IsIthEplNdmgWbiYn0dGh2aLtaQBKQ&submissionId=380cc0c5 -edb3-1616-e3da-12703bd1872b To apply for assistance: https:// www.collisionindustryfoundation.org/ disaster-assistance-request-form. html To donate: https://www.collision industryfoundation.org/donate.html

Postponed NORTHEAST 2020 Now Canceled

Carma Project Rewarding Replacing Airbags

The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) made the difficult decision to cancel its 2020 NORTHEAST Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. NORTHEAST 2020, originally scheduled for March 20-22, then postponed to Aug. 21-23, will resume its normal schedule next year, with show dates of March 19-21, 2021. An online NORTHEAST event for the weekend of Aug. 21-23 will allow attendees to enter a virtual floor plan and access exhibitors’ products, videos and information, and even schedule a private meeting. Educational opportunities will also be available. For more information on NORTHEAST, visit www.aasp njnortheast.com.

Carma Project on June 4 announced the launch of a program that pays vehicle owners to get their defective Takata airbag replaced. This program comes at a time when millions of owners continue to drive their vehicles to access essential businesses amid the COVID-19 crisis. This all-new program―which includes the reward of a $50 Amazon gift card―will further help address the recall of deadly Takata airbags. Despite extensive efforts by manufacturers, such as recall letters, public service announcements and dealer interventions, more than 12.5 million defective Takata airbags are still on the road today. Carma Project’s COVID-19 airbag recall program will stay in effect while supplies last. To participate, visit www.carmaproject. com/covid19 to download the Carma Project app and check your car.

Source: AASP/NJ

Source: Carma autobodynews.com / JULY 2020 AUTOBODY NEWS 39

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Continued from Cover

8 Things to Know er or actions to take in the wake of civil disorders. 1. Is there coverage? Generally yes, since riots, civil commotion and vandalism are included as named perils in most first-party property policies, unless there is language specifically excluding them. They are covered perils in commercial property policies, standard homeowners policies and business insurance policies. 2. What is covered? Auto insurance should provide coverage for damaged cars under the comprehensive portion of the policy. Homeowners insurance should cover property damage. Business insurance covers physical damage to a building and its contents, lost income for suspended operations, civil authority covers property loss other than the business location due to closures by the authorities.

Continued from Page 32

Black Lives Matter porate culture change and Trust. The automaker has not made any statement regarding any donations. Nissan: Before participating in Blackout Tuesday on social media, Nissan tweeted about its history of supporting the black community. The post stated, “Our hearts are with the families of Ahmaud Arbery, Breonna Taylor, George Floyd and other victims of racial injustice, and our mission and resolve to be a part of the solution is as strong as it was in 1992.” The statement ended with a hopeful message about the future and then was followed up with another tweet containing a Martin Luther King, Jr. quote. However, there has been no mention of any donation(s) from Nissan or the Nissan Foundation. Toyota: In a post on Twitter and in a press release, Toyota released a long statement that closed with: “So now more than ever, we will encourage a constructive dialog to guide our ac-

3. What should landlords/owners do? Patrick Kelahan, a building consultant with H2M architects + engineers, recommends proving building/property ownership to onsite law enforcement personnel, attending to any injured individuals and stabilizing the building and ensuring it is safe. This can include boarding up windows and doors, securing utilities and capturing witness statements. Code enforcement officials may also need to be contacted. Notify the insurance company and the mortgage-holder of the property of the damage.

If relocation is not necessary, the lease may indicate whether or not there are any rental remedies (e.g., deferred rent or rent forgiveness) while the property is being repaired. Business owners should also look at their business interruption coverage.

4. What should renters do? If the property is leased, the owner should be notified. They should secure any valuable inventory (e.g., jewelry, munitions, medications) either removing it from the property or placing it in a safe on the premises if practical.

6. How do you file a claim? Contact your insurance company to file a claim. Since this can be new territory for business owners, Kelahan recommends keeping a daily journal of who you speak with, what was discussed, commitments agreed to and when to followup. Track any expenses related to the loss, inventory all damaged furniture, fixtures and equipment and sales merchandise, and document the damage. Remove financial and sensitive records from the premises. Stabilize the décor and remove damaged materials.

5. Is moving an option? Kelahan says business interruption insurance would cover incurred costs above normal expenses. Rent for an alternate location and increased operating costs would be included.

7. Who’s responsible for reconstruction? Whoever owns the property is responsible for rebuilding, explains Kelahan. Coordinating adjusting efforts between the building owner and

tions as we continue to improve how we contribute to society, and inspire unity in every aspect of our lives, our business and our communities. Toyota will find additional ways of doing this by working together with our community partners across North America.” On top of this, an employee posted an email screenshot where the company encouraged employees to observe a moment of silence for eight minutes during the work day out of respect for George Floyd. Toyota’s corporate communications manager, when asked for additional info, stated the brand has nothing to announce at this moment.

first inspect its own practices to include more diversity in its workforce. The video ended with, “It’s a time of societal change―change that we, as a company and as a community, have the power to bring about. #DriveBigger.” However, no additional information was shared as to how Volkswagen would make a difference other than its internal training. I have not heard back from VW regarding my inquiry about a possible donation.

Volkswagen: After apologizing for a racist ad just two and a half weeks ago, Volkswagen was sure to make a statement on racial injustice. In a video shared on Facebook and Twitter, the auto brand mentioned the deaths of Ahmaud Arbery, Breonna Taylor and George Floyd. It also noted, “Volkswagen Group of America supports our Black employees and Black communities, who are feeling the pain and devastation of these events.” It went on to state Volkswagen would

Silence After scouring social profiles and press release sites, I reached out to the following automakers to see if they had any plans to make statements or donations. None of them have replied. Hyundai: While Hyundai ambassadors BTS personally donated $1 million to Black Lives Matter, and their fans raised $1 million to match, the automaker has been silent on this topic publicly. Kia: While Kia has recently done quite a bit to help health care workers amid the COVID-19 pandemic, including delivering PPE to hospitals na-

business operator is vital from the time the claim is filed to the final clean up. Coordinating efforts, having a detailed scope of damage and knowing what the estimated cost of repairs will be provides a clear roadmap for everyone. More organized parties will often be the ones repaired first. 8. What about fraud? Carriers should be aware of fraudulent claims arising from the riots. Red flags include damage to contents but no damage to the structure, no video of the damage occurring despite the presence of cameras on or near the property, insured can’t describe what was on the premises before the riot, no police reports are filed, the insured contacts a lawyer before the insurer, a previous claim for the pandemic was denied and the report with the police is filed weeks after the riot. We thank PropertyCasualty360 for reprint permission.

AUTOBODY tionwide, the brand has yet to make any statement regarding the Black Lives Matters movement or the protests. Mazda: As of publication, Mazda has posted nothing on any social platforms or on its press site in regard to the nationwide protests. The last posts, published May 28, were related to supporting health care workers. Subaru: As of publication, Subaru has posted nothing on any social platforms or on its press site in regard to the nationwide protests. The automaker has been notoriously charitable in the past, so it seems out of character for there to be no mention of current events. The brand’s Twitter account has, however, been responding to users calling out inexcusable behavior of racist Subaru employees. Volvo: As of publication, Volvo has posted nothing on any social platforms or on its press site in regard to the nationwide protests. Its latest post was promoting the XC90 via an article posted by Bloomberg. We thank the News Wheel for reprint permission.

40 JULY 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / JULY 2020 AUTOBODY NEWS 41

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Body Shop Owner Forgives Rent for 200 Tenants by Ed Attanasio

A lot of body shop owners end up being landlords, and sometimes it can be a pain in the you-know-what. When you’re trying to fix cars and keep your customers, insurance partners and employees happy, you don’t want to have to worry about late rent or Mrs. Smith’s leaking faucet in apartment 5.

Mario Salerno is a second-generation shop owner whose children, Sal and Mario Jr., will eventually take over the businesses

When this pandemic blindsided many of us, people all over the world started asking about their rent or mortgages. To placate his tenants and take the high road, Mario Salerno, owner of Salerno Auto Body in the heart of Williamsburg in Brooklyn, NY, waived rent for all 200 tenants living in his 18 properties. When Salerno decided to waive the rents for April, he posted the following message in all of his buildings: “Due to the recent pandemic of coronavirus Covid-19 affecting all of us, please note that I am waiving rent for the month of April, 2020.” The Salerno family has three separate businesses, including a service station, a mechanical repair shop and Continued from Page 23

OEM Research tem providers and others to create solutions to these challenges, to help reduce the amount of time it requires to find the correct dozens of pages of documents needed for most repairs.

a body shop. Owned for three generations, Salerno Auto Body opened in 1959, fixing Buicks, Cadillacs and Lincoln Continentals for guys named Nunzio and Carlo. Salerno’s businesses have played an integral role in the neighborhood since Day One, and when Mario retires, his son Sal, 33, will assume the helm. Today, Sal runs the body shop and Mario’s youngest son, Mario Jr., also works in the business on the mechanical side. A collection of colorful locals often convene at the shop until Mario tells everyone it’s time to get back to work. The neighborhood is calling him “Super Mario” and praising him for a gracious act that changed the lives of more than 200 people. All he asked of his tenants is to pay it forward if possible. “If my tenants can help others because of this, that’s what we are looking for,” he said. “A lot of people have told me about charitable things they’ve done after getting help from us and that always makes me smile.” Salerno is currently tapping into more than his allotted 15 minutes of fame, but he’s not about that. When he sees someone in need, he doesn’t hesitate to help them in any way he can. Salerno’s selfless act led to a big story in The New York Times and an appearance on The Ellen Show. He’s pleasantly surprised by all the hoopla, and a little reluctant to receive the praise and acclaim, according to son Sal. “My dad does stuff like this all the time and people don’t know about it,” he said. “He went to Texas But until that happens, you need to keep doing it, and consider whether it is something for which you should charge. And above all, save all the researched documents with the job file, so in case you ever need to do so, you can prove how the automaker called for the vehicle to be repaired at the time you did it.

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one time to save 63 puppies from being destroyed. We have a friend who owns a pet shelter and when he told my father about it, he hopped in one of our Sprinter vans and drove 50 hours roundtrip. Some of our tenants now own those dogs, so we get to see them all the time. They call them ‘Mario’s dogs.’ “In addition, we close during the holidays and invite all of the local schools here to celebrate Christmas. We get a Santa and go way over the top with decorations and small gifts for the kids.” The body shop portion of the family business repairs 35 to 40 vehicles every month in a hyper-competitive market, where “accident chasers” are a reality. “Here in this area, shops will use their police scanners and then rush over to where the accidents are and try to get the car towed to their shop. We have been around long enough and have a great reputation for being honest,” Salerno said. “So, we don’t have to chase accidents or rely on DRPs for business, because people

know who we are and that we’re not just into this for a quick buck.” Although Salerno does not want to disclose how much money he would lose due to not collecting rent in April, the Times estimated he was

Many of Brooklyn’s most colorful characters stop by Salerno’s to share stories and hang out

likely foregoing more than six figures in rental income. “It’s not about the money,” he said. “These are unique times and we need to work together to make it through this. I learned long ago that money isn’t everything. I thank God every day for being in a position where I can do this.”

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Riots in Wake of Floyd’s Death Could Become Most Costly Civil Disorder for Insurers by Jim Sams, Insurance Journal

Rioting that erupted in cities across the country after peaceful protests mourning the death of George Floyd in Minneapolis may rival the 1992 Los Angeles riots to become the most costly civil disorder for insurers in U.S. history. The civil disturbance in Los Angeles after the videotaped police beating of Rodney King in April and May 1992 caused $775 million in damages―or $1.42 billion in today’s dollars, according to the Insurance Information Institute (III.) Those riots, however, were largely confined to one metropolitan area. Destruction and looting that erupted after Floyd’s death was reported in at least 25 cities, and spread into many suburbs as well. “We expect this to be a significant loss event as the impact is being experienced in large and small markets across the U.S.,” said III spokesman Mark Friedlander. “However, because it is an ongoing event, it is premature to determine the volume of property loss that will be incurred.”

Civil disturbances generally cause modest property losses when compared to natural disasters, data from III shows. Rioting in Los Angeles in August 1965―the second costliest civil disorder―caused $357 million in damages, measured in 2020 dollars. Together, riots in Baltimore, Chicago and New York City in April 1968 caused $231 million in damages in today’s dollars. By comparison, Hurricane Harvey in 2017 caused an estimated $20 billion in damages. Verisk’s Property Claims Service (PCS) over the weekend declared the riots a catastrophe event, which means it projects damages of more than $25 million. PCS hasn’t designated a civil disturbance as a catastrophe since the Baltimore riots in 2015. PCS head Tom Johansmeyer said the riots sparked by Floyd’s death may be the first civil disorder tracked by PCS that includes more than one state. Johansmeyer said “to better understand” potential riots from current rioting, it make sense to look at losses caused by civil unrest last year

in Chile―which grew from protests over an increase in subway fares in Santiago. Rioting there caused insured losses of $2 billion. About a third of that came from property claims from a handful of large retailers. “When you look at the United States, riot and civil disorder may generally look like a sub-US $100 million risk, although with the potential for much greater losses,” Johansmeyer said in an email to Claims Journal. “But, when you add a handful of large national or international companies with losses of more than US $100 million each, you could see a much larger industry loss begin to materialize. The large losses within the catastrophe could change the character of the overall event.” Keefe, Bruyette & Woods analyst Meyer Shields said June 8 that his best guess is losses from the current riots will be “relatively modest.” Nevertheless, the losses will combine with losses related to COVID-19 claims and property damage from a predicted above-average hurricane season to amount to a “capital event” for some reinsurers.

GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van by Joey Klender, Teslarati

General Motors has a plan to take Tesla’s label as the leader of the EV industry away, and it involves taking on a market that the electric car maker has yet to tackle. GM is planning to develop an electric delivery van that would be used by entities like UPS, Amazon or even the U.S. Postal Service, Reuters was told by people familiar with the matter. The plan could put GM into the commercial electric vehicle conversation. However, the project, when combined with Ford, Rivian and other EV makers, is a potentially multi-billion-dollar idea that could help the companies build and deliver a substantial amount of electric cars. It could also help the companies tackle Tesla by targeting a segment the Elon Musk-led company is yet to address. That being said, it should be noted consumer vehicles are much more popular than delivery vans, so there’s not much of a threat for Tesla to be derailed by EVs designed to carry packages.

GM’s plan for a van has not been reported previously. The company, along with Ford, was reportedly advised to keep any plans under wraps. Trucks and commercial vehicles are among the two Detroit-based companies’ most profitable vehicles, and suggestions from suppliers recommended things remain quiet regarding the development of electric vans. They “don’t want to leave the door open for Tesla,” something the

UPS Senior Director of Fleet Maintenance and Engineering Scott Phillippi said the company believes battery-powered vans have the potential to disrupt the commercial market. “It’s going to be similar to what the Model 3 has done for the consumer market,” he said. Even though GM is planning a strong push to develop battery-electric cars within the next few years,

companies both did with consumer passenger vehicles. The GM van is currently recognized under a pseudonym, the BV1. It is set to start production in late 2021 at the automaker’s Detroit-Hamtramck plant, according to sources, and it will share several components with GM’s electric pickups and SUVs. One of these is the Ultium battery system.

there is little evidence its technology will outperform Tesla’s. GM claims it is close to a million-mile battery, a major focal point of Tesla’s battery tech developers for years. But for now, the veteran automaker is yet to prove its EV capabilities in the market. We thank Teslarati for reprint permission

“As always, major losses should subsequently intensify the current hard market, but the ‘pain’―especially for individual (re)insurers exposed to disproportionate losses―would come first,” KBW said. III said riots, civil commotion, vandalism, looting and fire in the U.S. are covered perils under virtually all business owners and commercial insurance property policies. Merchandise stolen by looters will also be covered. III said about 40% of small to mid-sized businesses are also protected by business interruption coverage. “Even if the business was still shut down or operating at limited capacity due to the impacts of the COVID-19 pandemic, most insurers will determine income loss based on a 12-month assessment of the operation’s income,” III said in an email. That coverage may also protect businesses that have to shut down early because of curfews imposed by city governments, III said. We thank the Insurance Journal for reprint permission.

Women in Auto Care Accepting Entries Women in Auto Care, a community of the Auto Care Association, is now accepting entries for the 2020 Automotive Communications Awards. The Automotive Communications Awards are designed to recognize companies and agencies that provide automotive information to consumers and trade professionals through outstanding advertising, marketing, merchandising and effective public relations. A portion of the proceeds from award submissions goes toward providing scholarships to women entering the automotive aftermarket industry. Award winners will be notified in October and will be recognized at this year’s Aftermarket Products Expo (AAPEX) in Las Vegas, NV. For more infomation see the Women in Auto Care web page’s “Awards” tab. No entries will be accepted after Sept. 11. Source: Auto Care Association

44 JULY 2020 AUTOBODY NEWS / autobodynews.com

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CIC Goes Virtual for July Conference

Bipartisan PPP Flexibility Act Sails Through Senate A bipartisan bill that would give small business more time to use the funds from Paycheck Protection Program, as well as other updates to the program, was passed by the Senate in a unanimous voice vote the evening of June 3. The Paycheck Protection Program Flexibility Act, sponsored by U.S. Rep. Chip Roy (R-TX) and U.S. Rep. Dean Phillips (D-MN), had previously been passed by the House of Representatives in a 417-1 vote. It now heads to the White House, where President Donald Trump is expected to sign it into law. The bill addresses concerns with the Small Business Administration’s forgivable PPP loans, which require businesses to use the money within eight weeks of receiving it to be eligible for full forgiveness. Because many businesses were shut down for months by government orders, they didn’t have the time to do what was necessary to have their loans forgiven in that short span. Roy and Phillips said the PPP Flexibility Act is intended to make it more feasible for businesses to qual-

ify for forgiveness. In addition to extending the time in which the loan funds must be used to qualify for full forgiveness from eight weeks to 24 weeks― through Dec. 31―it would also reduce the percentage of PPP funds required to be used from 75% to 60%.

“NIADA is proud and encouraged to see members of both parties in Congress come together and act quickly to solve this problem,” said Steve Jordan, CEO of the National Independent Automobile Dealers Association.

“This bill provides much-needed flexibility to NIADA members and small businesses across the nation as they reopen and rehire staff,” Jordan said. “Economic recovery from a crisis like COVID-19 takes time, and this gives independent dealers the time they need to get their operations back up to full .” Other provisions include eliminating the restriction limiting loan terms to two years, allowing businesses that receive PPP loans to also defer payroll taxes and extending the deadline to rehire employees from June 30 to Dec. 31 to account for the effect of federally enhanced unemployment benefits. The deadline for to receive a PPP loan remains June 30. The PPP, created by the CARES Act in late March, allotted $349 billion in funding for forgivable loans of up to $10 million per borrower to help small businesses weather the COVID-19 crisis. After those funds were distributed in less than two weeks, Congress approved an additional $310 billion on April 21.

In the face of continued restrictions for gathering, the Collision Industry Conference (CIC) will be held as a virtual meeting for the first time in its history. CIC will be held July 22 and July 23 from 11 a.m. to 3 p.m. Eastern Time via Zoom, pre-registration required. As with the live CIC, several committees will make presentations and attendees will have the opportunity to raise their hand and speak during Q&A and open mic times. Organizer Jeff Hendler believes this platform will also give those who have been curious about CIC―or even too busy― the opportunity to experience the unique meeting without the added cost and hassle of traveling. CIC committees have been hard at work throughout the crisis, and plan to bring that work to the industry stage in July. To learn more, visit the schedule page at www.ciclink.com /schedule/ Source: CIC

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Volkswagen Activates ‘Sign Anywhere’ Across Network Volkswagen of America and VW Credit, Inc. announced the availability of remote digital signatures across the Volkswagen dealer network to offer customers and dealers flexibility during the pandemic. Sign Anywhere is remote, digital signature tool powered by CDK Global that allows customers to remotely and securely digitally sign financial documents with their own computer or mobile device without stepping foot in a showroom― providing an online automotive buying experience. While digital signature technology has been in widespread use for some time, it has taken time to adopt this technology to meet the requirements found in the financial services space. Volkswagen is among the first to offer Sign Anywhere at its dealerships through its financial services arm VCI. Source: Volkswagen

Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus by Joey Klender, Teslarati

Shares of Tesla opened June 10 at new highs, crossing $1,000 per share as investors weighed in on rumors of the Tesla Semi’s initial production push. An email from Elon Musk circulated early that morning, indicating Tesla’s focus would be to get the Semi to “volume production.” “It’s time to go all out and bring the Tesla Semi to volume production,” Musk said. “It’s been in limited production so far, which has allowed us to improve many aspects of the design.” Musk indicated in the Q1 2020 Earnings Call Update Letter the Semi would not begin deliveries until 2021. In early January, Tesla’s Truck Team contacted Semi pre-order holders indicating a limited production push would take place in the second half of 2020. The Semi was unveiled in November 2017 and Tesla has been assessing its performance since then. Recently, the commercial vehicle was subjected to cold-weather test-

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ing in Alaska. Tesla’s Model 3 ramp-up in China, along with its developments of a million-mile capable battery, has also convinced Wedbush analyst Dan Ives to raise his price target for the electric automaker from $800 to $1,000. Ives maintained a neutral rating for the stock.

“We believe with demand for Model 3’s ramping stronger than expectations in China heading into summer timeframe…that Tesla’s stock likely has room to run further,” Ives said in a note to investors. “While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year,” he added.

Ives also attributed battery developments that could be potentially “game-changing” for Tesla as another reason for his price target increase. Indicating Tesla’s upcoming “Battery Day” would occur in late June, the company’s Chinese battery supply firm CATL, recently released details on its own million-mile battery assembly. Tesla and CATL signed a two-year contract in early 2020 that pairs the two companies in a partnership from June 2020 to July 2022. In the U.S., speculation continues to indicate Tesla will unveil its own million-mile battery pack that will increase the life span of its electric vehicles by a considerable margin based on current warranty documents. TSLA stock closed at $940.67 on June 9 and is currently trading at $998.25 at the time of writing. We thank Teslarati for reprint permission.

Honda Suffering Production Issues Due to Possible Cyber Attack by Sergiu Tudose, CarScoops

Honda is having to deal with a global computer network disruption, which led to the carmaker cutting some production in North America. The issue could actually be part of a deliberate cyber attack, stated the carmaker’s U.S. sales arm, American Honda Motor Co. Unfortunately, no further details were offered regarding which production plants have cut output, or what other operations might be affected, reports Autonews. While the disruption is still under investigation, the Japanese company has yet to rule out the possibility of this being a direct attack on its computer network. “On Sunday, June 7, Honda experienced a disruption in its computer network that has caused a loss of connectivity, thus impacting our business operations. Our information technology team is working quickly to assess the situation,” said the carmaker in an official statement.

According to British outlet Sky News, these computer issues are also affecting Honda’s networks in Japan as well as Europe and as of June 8 it was unclear whether or not the company was the victim of ransomware―meaning hackers would have had to break into the system and hold Honda hostage until a sum of money was paid. There is precedent for this. In 2017, Honda was a target of the global ransomware attack WannaCry, which affected production at a Japanese assembly plant. That same attack also affected Renault and Nissan’s operations in Japan, Europe and India. Other brands impacted included Dacia, Boeing, Petrobras, O2 and loads more, including several universities. We thank CarScoops for reprint permission.

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