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Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time Back on July 11, Allstate Insurance Company announced to its DRP participants that shops will be required to honor completion dates or assume all related costs, expedite estimate and upload completion times, and extend their hours of operation, when necessary, for the convenience of Allstate customers. Now Allstate’s customer service initiative for 2011 has been expanded. The new program requirements were introduced to shops in a series of cycle time web conferences held recently. Those unable to view the web conferences are encouraged by the company to contact their local performance managers.
Allstate is making “several key process changes” within its Good Hands Repair Network that the com-
Tracy Tramm, Allstate Claim Service Manager, announcing process changes via video
pany says are designed to positively impact customer service and cycle time. The announcement comes in the See Allstate Process, Page 38
Shop Owners Share Frustrations Renegotiating Contracts with Information Providers by John Yoswick
The experiences of a number of shop owners around the country serve as a reminder to make sure you always understand the terms of any contract you are signing. Failure to read the fine print—or negotiate clauses for additional rights to end even something as seemingly innocuous as a software contract—have cost some shops tens of thousands of dollars. A shop owner in California, for example, has been disappointed in the response he has received from one of
the Big Three information providers to his requests over the past 18 months to renegotiate his software contract. The shop owner, who asked that his name and the provider’s not be used, said he purchased a complete package—hardware and software—from the provider, but realized shortly after he did so that he did not intend to the use the shop management module of the package. “We’re not a large enough shop to benefit from the time I’d have into using it,” the shop owner said. See Contract Frustration, Page 14
VOL. 29 ISSUE 8 AUGUST 2011
Texas Insurance Commissioner Releases Bulletin Warning Insurers on Steering, etc. Texas Commissioner of Insurance Mike Geeslin has warned auto insurers in a bulletin sent June 20 that some claims settlement practices may be in violation of Texas law. Geeslin’s bulletin says that reports of steering, limiting labor/reimbursement rates, and other potential unfair claim settlement practices continue to be received by his department. In a department bulletin, addressed to insurers writing property casualty insurance for autos, the commissioner repeated his charge that some insurers’ practices may be in violation of the Texas Insurance Code and or the Texas Administrative Code. In a direct address to the issue of steering, Geeslin says that insurers must not “directly or indirectly” re-
quire a claimant to use a specific repair facility or to select a specific facility from a list provided by the insurer. Citing Texas law, Geeslin says suggesting to a consumer that they may be responsible for paying certain repair costs out of pocket if they choose a repair facility that is not on the insurer’s list is an indirect limitation of coverage under their policy and in conflict with the law. The bulletin says that although an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither the prescribed notice to the consumer nor policy language can suggest that the reasonable amount for repairs or parts be based
REGIONAL ARTICLES in this issue...
See Texas Bulletin Page 6
Investigators Donate to Memorial Fund for Slain LA Investigators .p. 6 Shreveport Man Named LA Auto Dealer of the Year . . . . . . . . . . .p. 6
Entergy to Bring Charging Stations to College Campuses in LA .p. 8
CCAR Honors LA Shop with “GreenLink” Title . . . . . . . . . . . . . . .p. 10
Service King Opens New Shop in Houston, TX . . . . . . . . . . . . . . .p .10
Fiat 500s Do Better in Texas Market Than Predicted . . . . . . . . . .p .12
NATIONAL ARTICLES in this issue...
Groupon Offers First New Car Deal With Detroit Auto Dealership .p. 15
Nissan Researching Solar Charging for Batteries in All-Electric Leaf .p. 20
Hyundai and Kia Both Raise 2011 Sales Forecasts . . . . . . . . . . .p. 22
Chevy Cars Get Highest Brand Share in 20 Years, GM Says . . . .p. 22
COLUMNS in this issue...
Schroeder — Carl Owen’s Paint and Body in Tyler, TX . . . . . . . . . .p. 16 Williams — What Makes A Dealership Distinctive? . . . . . . . . . . .p. 17 Attanasio — Prestige Imports, a BASF Waterborne Advocate . .p. 18 Weaver — How to Keep Your Cool With HVAC Diagnostics . . . .p. 21 Yoswick — State and Federal Governments Consider New Insurance Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 28 Insurance Insider — Don’t Become an Insurer’s Puppet . . . . . . .p. 30 Chess — Are Your Repair Methods Ten Years Out of Date? . . . .p. 32 Horn — Devil in the Details: Measuring Metrics Properly . . . . . .p. 36
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2 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
Contents Beaumont Woman Sues Local Insurer
in Tyler, TX, Offers Top Rated Auto,
RV and Truck Repair . . . . . . . . . . . . . . 16
After Collision . . . . . . . . . . . . . . . . . . . . 4
Weaver - How to Keep Your Cool When
“GreenLink” Title . . . . . . . . . . . . . . . . . 10
Williams - What Makes A Dealership
College Campuses in LA . . . . . . . . . . . . 8
Yoswick - State and Federal Governments
CCAR Honors LA Shop with
Entergy to Bring Charging Stations to
Fiat 500s Do Better in Texas Market Than
Predicted . . . . . . . . . . . . . . . . . . . . . . . 12
FL Reinstates Online Driver Permit Tests
for Teens After Ban . . . . . . . . . . . . . . . . 4
Franklin Electric to close plant in
Working With HVAC Diagnostics . . . . . 21
Distinctive? . . . . . . . . . . . . . . . . . . . . . 17 Consider New Insurance Regulations . . 28
NATIONAL
Allstate Announces ‘Process Changes’
Designed to Improve Network Cycle Time. 1
Oklahoma City . . . . . . . . . . . . . . . . . . . . 9
Allstate Shakes Up President's Position,
Members Meeting, Hosts Chuck Sulkala. 35
And You Thought You Knew Ugly Dogs. . . 26
Houston Auto Body Association Holds June
Shares Drop on the News . . . . . . . . . . 38
Investigators Donate to Memorial Fund
Audi Plans to Build Cars in North America,
Katy, TX, Auto Shop Accused of Installing
Automatic Braking, as Implemented by
OSHA Cites Cooper Tire in Mississippi . . . . 4
Chevy Cars Get Highest Brand Share in
Houston, TX. . . . . . . . . . . . . . . . . . . . . 10
Companies Working to Expand Natural
of the Year . . . . . . . . . . . . . . . . . . . . . . . 6
Comprehensive Review of Distracted
Celebrates 85th Anniversary . . . . . . . . . 9
Detroit 3 Meet with UAW on Feds New
Bulletin Warning Insurers on Steering, etc.. 1
GM is Top OEM in Truecar.com June
Houston Business . . . . . . . . . . . . . . . . . 4
Groupon Offers First New Car Deal With
Vehicles Out of Service . . . . . . . . . . . . . 4
Hertz to Acquire Donlen in $930M Transaction. 24
Faulty Brakes . . . . . . . . . . . . . . . . . . . . . 9
Service King Opens New Shop in
Shreveport Man Named LA Auto Dealer Sikes & Stowe Downtown Collision
Texas Insurance Commissioner Releases Transmissions, Aluminum Stolen from TX Takes ‘Roadchecked’ Commercial
Eventually . . . . . . . . . . . . . . . . . . . . . . 26 Volvo, Does Prevent Crashes . . . . . . . . 24
20 Years, GM Says . . . . . . . . . . . . . . . 22
Gas Vehicle Options. . . . . . . . . . . . . . . 20 Driving Research Released. . . . . . . . . . 27
CAFE Standard . . . . . . . . . . . . . . . . . . 31 Performance Scorecard . . . . . . . . . . . . 24
Detroit Auto Dealership . . . . . . . . . . . . 15
Vehicle Inspection Shops Busted by
Hertz Files Premerger Notice with Federal
Walker Automotive Among Largest
Hyundai and Kia Both Raise 2011 Sales
Houston PD . . . . . . . . . . . . . . . . . . . . . 10 US Dealerships . . . . . . . . . . . . . . . . . . . 4
COLUMNISTS
Attanasio, BASF - Prestige Imports is a BASF
Waterborne Advocate in Colorado . . . . 18
Chess - Are Your Repair Methods Ten
Years Out of Date? . . . . . . . . . . . . . . . . 32
Horn - Devil in the Details: Measuring
Antitrust Regulator . . . . . . . . . . . . . . . . 26
Forecasts. . . . . . . . . . . . . . . . . . . . . . . 22
J.D. Power Survey Ranks Ford 23rd out
of 32 Auto Brands, of US Manufacturers
Only Cadillac Makes the Top Ten . . . . . 22
KBB Says Honda & Toyota Challenged
by Hyundai for Tops in Brand Loyalty,
Hyundai Holds Top Spot for Latest
Quarter of 2011. . . . . . . . . . . . . . . . . . 37
Metrics Properly . . . . . . . . . . . . . . . . . 36
Nissan Researching Solar Charging for
Collision Repair . . . . . . . . . . . . . . . . . . 37
Shop Owners Share Frustrations
I-CAR - Thin-Film Technology Comes to Insurance Insider - Hate the Way the
Strings Are Pulled? Don’t Become
an Insurer’s Puppet . . . . . . . . . . . . . . . 30
Schroeder - Carl Owen’s Paint and Body
Batteries in its All-Electric Leaf . . . . . . . 20
Renegotiating Contracts with
Information Providers. . . . . . . . . . . . . . . 1
VW Sales Up 35% in U.S., Could Top
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Indexof Advertisers
for Slain LA Investigators . . . . . . . . . . . . 6
300,000 Units This Year. . . . . . . . . . . . 38
Southwest
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
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Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 16 Audi Wholesale Parts Dealers . . . . 34 Autoland Scientech. . . . . . . . . . . . . 21 BK Listings . . . . . . . . . . . . . . . . . . . . 9 BMW Wholesale Parts Dealers . . . . 28 CertiFit. . . . . . . . . . . . . . . . . . . . . . . . 2 Chevyland . . . . . . . . . . . . . . . . . . . . 12 Chief Automotive. . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Dallas Dodge . . . . . . . . . . . . . . . . . 40 David McDavid . . . . . . . . . . . . . . . . . 7 Equalizer Industries . . . . . . . . . . . . 12 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 25 Fowler I-240 Chrysler-Jeep-Dodge. 13 Garmat USA . . . . . . . . . . . . . . . . . . 15 Gene Messer Hyundai . . . . . . . . . . 24 Global PDR Solutions . . . . . . . . . . . 27 GM Wholesale Parts Dealers . . . . . 35 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 22 Huffines Hyundai Plano . . . . . . . . . 15 Hyundai Wholesale Parts Dealers . 31
Kia Motors Wholesale Parts Dealers. 19 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 39 Mark’s Casa Mitsubishi. . . . . . . . . . 29 Mazda Wholesale Parts Dealers . . . 32 Mercedes-Benz of Oklahoma . . . . . 33 Mike Calvert Toyota. . . . . . . . . . . . . 30 Mitsubishi Wholesale Parts Dealers. 32 MOPAR Wholesale Parts Dealers . . 23 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 Price LeBlanc Toyota . . . . . . . . . . . 11 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 33 Russell & Smith Ford-Mazda . . . . . 10 Safety Regulations Strategies. . . . . . 6 SATA Spray Equipment . . . . . . . . . . 8 Scoggin-Dickey Buick . . . . . . . . . . 14 Scorpion Coatings . . . . . . . . . . . . . 26 Suzuki Wholesale Parts Dealers . . . 29 Toyota Wholesale Parts Dealers . . . 30 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 34 Volvo Wholesale Parts Dealers . . . . 36 Young Chevrolet . . . . . . . . . . . . . . . . 4
www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 3
Walker Automotive Among Largest US Dealerships
For the fifth straight year, Alexandria-based Walker Automotive has made Ward’s Dealer Business magazine’s list of the 500 largest automobile dealerships in the country. Walker was No. 52 on the list, which ranks dealerships based on total revenue. Billy Navarre Chevrolet and Honda in Lake Charles also made the list, at No. 235, the only other Louisiana dealership on the list.
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Transmissions, Aluminum Stolen from Houston Business
The owner of an automotive repair shop in Houston called the Houston Police Department on June 27 to report the theft of three automatic transmissions and 300 pounds of aluminum from behind his business’ building on U.S. 63, according to The Houston Herald. The estimated value of the stolen items is $2,000. The owner said he believed the theft took place on the weekend of June 25-26 and that the aluminum sheets were in 3X3 and 2X4 panels. He also stated that he could identify the aluminum if he saw it.
FL Reinstates Online Driver Permit Tests for Teens After Ban Florida teenagers once again will be allowed to take their learner’s permit tests online, according to Insurance Journal. The Department of Highway Safety and Motor Vehicles pulled the online testing option back in January when they determined that about 40 percent of the test-takers who passed the exam online failed in person. A law signed by Gov. Rick Scott brought back the online testing op-
tion, taking effect July 1. The agency’s legislative affairs administrator, Steven Fiedler, said the new testing system is improved and holds parents more accountable. If a teenager is found to have cheated, the parent’s driver’s license could be suspended. Fiedler said the online testing is driven mostly by customer convenience. About 70,000 teenagers apply for the learner’s permit each year.
TX Takes ‘Roadchecked’ Commercial Vehicles Out of Service
During the recent 72-hour Roadcheck 2011 program, the Texas Department of Public Safety and other Texas law enforcement agencies inspected 7,993 commercial vehicles. Of the vehicles inspected, 26.5 percent were placed out of service for safety violations, the DPS reported. Throughout Roadcheck, DPS Commercial Vehicle Enforcement troopers, noncommissioned inspectors, and specially trained Highway Patrol troopers and officers from other agencies inspected safety equipment and checked driver log books, driver licenses and endorsements. They also looked for possible drug or alcohol use. Officers placed 212 of the drivers (2.6 percent) out of service for reasons ranging from not properly tracking their hours of service to suspended, expired or cancelled driver licenses, according to Insurance Journal. Four drivers were placed out of service for drug or alcohol infrac-
tions. Troopers issued 17 tickets for seat belt violations. Of the vehicles that were inspected, 26.5 percent were placed out of service because they were found to have serious enough safety violations to be removed from service until repairs could be made, including issues with the braking systems, tires, lights and safe loading. The annual Roadcheck program, which stretches from Mexico to Canada, is designed to reduce commercial vehicle highway fatalities through increased vehicle safety. The Commercial Vehicle Safety Alliance (CVSA), which sponsors Roadcheck, reports a significant decrease in the commercial vehicle crash rate in North America since the program’s start in 1988. Vehicles passing inspection received a CVSA decal exempting the vehicle from inspection for a 90-day period, unless they have an obvious safety defect. Troopers issued 2,515 decals during Roadcheck 2011.
Beaumont Woman Sues Local Insurer After Collision
A Beaumont woman claims an insurance company refuses to pay her for the full amount of damages she claims she sustained in an automobile collision in the Texas suburb, according to the Southeast Texas Record. Sonya Briscoe filed a lawsuit June 14 in Jefferson County District Court against Texas Farm Bureau Casualty Insurance Companies, Texas Farm Bureau Mutual Insurance Companies and Milton Overstreet. In her complaint, Briscoe claims she rode in a vehicle Valencia Aplon drove on Park Street on June 17, 2009, when Robert Griffin failed to yield the right-of-way at a stop sign and slammed into their vehicle. Because of the collision, Briscoe sustained serious injuries, according to the complaint. At the time of the crash, Aplon had an insurance policy with Texas Farm Bureau, which should have provided protection against a collision with uninsured motorists, the suit states. Griffin had no insurance at the time, so Briscoe attempted to collect full policy limits under Aplon’s insurance coverage, the complaint says. However, Texas Farm Bureau and its agent, Milton Overstreet, refused to consider some of the medical
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OSHA Cites Cooper Tire in Mississippi
Cooper Tire & Rubber Co. will challenge charges by the Occupational Safety and Health Administration that the company committed safety violations at its plant in Tupelo, MS. OSHA recommended the tire maker, along with two of its maintenance contractors, pay a $254,900 fine for 25 violations. The Tupelo plant was cited following an inspection at Cooper Tire’s Findlay plant, which was fined for violations. OSHA said the allegations are associated with combustible dust.
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bills Briscoe submitted, she claims. Because of the defendants’ actions, Briscoe has experienced mental anguish, according to her complaint. In her complaint, Briscoe seeks statutory, actual and punitive damages, plus pre- and post-judgment interest at the highest legal rate, treble damages, attorney’s fees, costs and other relief the court deems just. Jonathan C. Juhan of Beaumont will be representing her. Judge Milton Shuffield, 136th District Court, has been assigned to the case.
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Investigators Donate to Memorial Fund for Slain LA Investigators
The nation’s largest association of insurer fraud investigators has contributed $10,000 to a memorial fund honoring two Louisiana investigators who were killed in the line of duty on June 7, according to Insurance Journal. The board of directors of the International Association of Special Investigation Units authorized the donation to the fund created by the Louisiana Insurance Department in the wake of the murders of Rhett Jeansonne and Kim Sledge last month. The insurance department investigators were shot by an agent they were seeking to interview in Ville Platte, La. “They were members of IASIU and dedicated professionals. IASIU appreciates the support of the Louisiana insurance department over the years. The senseless murder of our fellow IASIU members is unimaginable,” IASIU president Dave Rioux, of Erie Insurance, wrote to Louisiana Commissioner Jim Donelon on behalf of the IASIU members. The fund will be used to purchase and place a permanent memorial on the insurance department’s grounds in Baton Rouge. Any remain-
ing money will go to the estates of Jeansonne and Sledge. “Kim and Rhett were true Louisiana heroes who lost their lives protecting our citizens and we hope to memorialize their efforts in an appropriate manner. Know that the outpouring of support from our colleagues has been invaluable,” Donelon said to Insurance Journal.
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Texas Bulletin
on the amounts charged by a limited number of DRP facilities. “The Department continues to have concerns that setting reimbursement rates artificially low for specific motor vehicle repairs and parts that are used to make the repairs may lead to substandard repairs, which may also impact vehicle warranties,” Geeslin says in the bulletin. “It is an unfair claim settlement practice for an insurer to pay a claimant [an amount] that is not a reasonable amount for repairing or replacing the property with other of like kind and quality, or is not sufficient to make the repairs necessary for the manufacturer to honor the vehicle warranty.” Geeslin’s bulletin adds, “The Department will enforce the provisions of
the Texas Insurance Code and Texas Administrative Code to make certain that insurers are in compliance and are not engaging in unfair claim settlement practices. “The Department takes all allegations of unfair claims settlement practices seriously and will investigate in the context of both individual cases and general business practices. The Department will investigate such allegations through complaint handling, market conduct exams and other reviews deemed necessary, taking appropriate enforcement action when evidence of unfair claim settlement practices or other statutory violations are demonstrated,” the bulletin concludes. The current bulletin and last year’s bulletin can be viewed at autobodynews.com. Search ‘Texas Insurance Commissioner.’
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Shreveport Man Named LA Auto Dealer of the Year
Marshall Hebert, dealer-owner of Hebert’s Town & Country DodgeChrysler-Jeep in Shreveport and Hebert’s Town & Country Ford in Minden was named 2011 Dealer of the Year for the State of Louisiana by the Louisiana Automobile Dealer’s Association at their annual convention, according to the Bossier PressTribune. The event was held at the Greenbrier Resort in White Sulphur Springs, West Virginia June 19-22. Last year’s recipient, Adrian Harris of Baton Rouge and LADA Executive Director Robert Israel, made the joint announcement. Hebert was a popular choice of the 200 plus dealers and family members in attendance. He was described as “Mr. Everything” to the LADA and his service record is proof positive. He is a Past Chairman of the Board of the LADA and was a founding Trustee of LADA Health Insurance Trust, founding Trustee of LADA Workers Compensation Trust and has served as Louisiana’s National Auto Dealers representative for 18 years. He is an active member of the Shreveport-Bossier New Car Dealers Association, the National Dealer
Continued from Page 1
Council and is Past Chairman of Chrysler National Advertising and President of the Chrysler Zone Advertising Association. He began his automobile experience in 1964 with RBW Motors before leaving for the GM position at Bob Post Chrysler Plymouth in 1975. In 1982, he took over as owner of the Shreveport store and stayed there for 17 more years before moving to the Shreveport Auto Mall and renaming the store Hebert’s Town & Country. Marshall Hebert is very active in the Shreveport-Bossier Community and participates in a leadership capacity for many organizations. He and son Mark oversee the day-to-day operations of the Hebert family businesses and they were recently joined by grandson’s Chris, Beau and Drew. LADA Executive Director, Robert Israel said, “Rarely do we get an opportunity to honor someone who truly exceeds our expectations. Marshall Hebert offers us that chance. His long service is much appreciated and we look forward to his continued involvement. He simply gets better with time.”
6 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
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www.davidmcdavid.com www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 7
Entergy to Bring Charging Stations to College Campuses in LA Entergy Corporation announced it is working with Coulomb Technologies to fund and donate 16 electric vehicle charging stations at college campuses in and around Entergy’s four-state service area. The first two Entergy-funded charging stations were unveiled during a special event at Louisiana State University as Entergy and LSU launched one of the state’s first major forays into the electric vehicle market. The event featured Dr. Michael Martin, LSU Chancellor; Bill Mohl, president and chief executive officer, Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C.; and Allan G. Pulsipher, executive director, LSU Center for Energy Studies. “Electric vehicles are gaining widespread attention and being embraced as an important technology solution for the nation’s energy future. We know that the infrastructure must be in place to support the evolution of the technology, and we hope Entergy’s donation of EV chargers to LSU will help start that process for the southern region,” said Mohl. “This program is
part of our deeper commitment to support technologies that foster environmental sustainability and provide for clean, efficient and affordable power for today and tomorrow.” The charging stations were donated to LSU through a $160,000 grant by Entergy’s Environmental Initiatives Fund. Entergy is currently working with other universities in Arkansas, Mississippi, Louisiana and Texas to donate additional electric vehicle charging stations throughout the region. “As the state’s flagship university, it’s fitting that we are the leader in accepting and installing Entergy’s gift in the company’s four-state service territory,” said Martin. “This partnership will go a long way to establishing a cleaner environment and a cleaner way to travel for our citizens.” The LSU charging stations, which are free to use by all LSU faculty, staff and students, are among the first in the nation to be installed on a university campus for the sole purpose of providing free charges to electric car owners and for research purposes.
8 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
“Collecting usage data will allow Entergy and LSU to conduct critical research about EV chargers,” said Brent Dorsey, director of corporate environmental programs for Entergy. “The goal is to determine the impacts and opportunities of EV charging, including length to charge, consumer charging profiles, time of day for charging, impacts on electric facilities and other consumer behavior and preferences.” The charging stations were manufactured by Coulomb Technologies and are part of Coulomb’s ChargePoint® Network, the largest EV driver network in the world. Coulomb specializes in EV charging systems and operates in 14 countries. The charging station data collection is enabled by the ChargePoint® Network, which provides online access to the data including detailed usage reports, greenhouse gas and gasoline savings. Installation of the charging stations was completed by Verdek, Coulomb’s south central regional distributor.
“We are proud to play a part in expanding the ChargePoint Network into the south central region,” said Guy Mannino, CEO of Verdek. “As more zero-emission vehicles become available in the region, providing easy and convenient ways to charge is essential for consumer adoption of this new form of transportation.” Entergy’s Environmental Initiatives Fund was established as a mechanism to reduce greenhouse gas emissions through innovative, promising projects and is part of the company’s ongoing efforts to seek sustainable environmental solutions to its business. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 15,000 employees. For more information about Entergy visit www.entergy.com.
Franklin Electric to Close Plant in Oklahoma City
Franklin Electric Co. Inc. said it plans to close an Oklahoma City factory and move the equivalent of 125 jobs, primarily to a facility in Linares, Mexico. Franklin Electric, which makes systems and components used to move water and automotive fuels, said it will move some of the 260,000 annual man-hours of work to another Oklahoma City facility. The moves should be completed by the end of the first quarter of 2012. Franklin Electric said it expects to record pretax charges of $2.6 million to $5.2 million in 2011 and 2012 because of these and other actions—including writing down assets at its Siloam Springs, Ark., facility, which also is closing. Of that total, $1.2 million to $3.5 million will be related to the most recently announced closing.
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Sikes & Stowe Downtown Collision in Jax, FL, Marks 85th Anniversary
Sikes & Stowe Downtown Collision, the oldest independent, familyowned body shop in downtown Jacksonville, FL, is currently celebrating its 85th anniversary.
Founder John E. Sikes Sr. started the business in 1926, his son John E. Sikes Jr. took over in the 1960s until his death in 1999 and grandson, John E. “Bud” Sikes III is the current owner. The Owners have always credited their loyal customer base throughout the years for their longevity of success, and are, as always, committed to the growth and development of downtown Jacksonville. For more information please visit www.sikesandstowejax.com.
Katy, TX, Auto Shop Accused of Installing Faulty Brakes
A Harris County resident is suing over her claim that a Katy-area auto repair shop’s shoddy work caused her to wreck her car. Heidi Price filed a lawsuit on July 7 in Harris County District Court against Katy-area Kwik Kar Lube and Tune, citing violations of the Texas Deceptive Trade Practices Act, negligence, gross negligence and breach of contract. Price said that on Feb. 17, Kwik Kar Lube and Tune serviced her car’s brakes, but the brakes continued to cause her problems. On March 10, she sought a second opinion from National Tires Battery. According to the brief, she went back to Kwik Kar on March 11, informing mechanics that the brakes needed work, but they did not want to honor the warranty at first. When they finally did, she said they improperly repaired them. The suit alleges that Kwik Kar’s faulty repairs caused Price to have an automobile accident on March 13. Price is seeking damages, attorney’s fees and court costs. She is being represented in the case by Houston attorney Christopher Demerson. Harris County District Court Case No. 2011-40515.
This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.
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Vehicle Inspection Shops Busted by Houston PD
Houston police arrested two men accused of selling Texas state inspection stickers at a grossly inflated price to drivers whose vehicles would not pass the inspection, according to KHOU 11 News Houston. Those drivers are usually declined either because they don’t have insurance or their vehicle won’t pass the emissions test. This month the Houston Police Department’s Major Offenders Division has been focusing on shops where vehicles are inspected. Ziyad Ebrahimi was arrested June 28 and Jose Jesus Garcia was arrested July 4, police said. Both were charged with tampering with government records, which is a second-degree felony. HPD said this type of fraud is rampant and it can be found in all parts of the city. State inspections cost 39.75, but at a shop in the 12,800 block of the East Freeway Garcia allegedly told the undercover officer he could pass his car without insurance for $125. In the 9500 Block of the North Freeway the price was also $125. Police said Garcia and Ebrahimi, are both licensed by the state to inspect vehicles and the stickers they were
putting on vehicles were real. Sifting through six months of court documents we found hundreds of Harris County residents who have been charged with displaying counterfeit stickers. It’s even a bigger problem and because of it the state says there are hundreds of thousands of unsafe uninsured motorists on the streets.
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Service King Opens New Shop in Houston, TX
Service King Collision Repair Centers recently opened a new facility in the uptown Houston area. The 32,000square-foot shop’s offices are located on a redeveloped former restaurant site and the repair center is behind it. Service King says the new facility has the ability to repair 450 to 500 vehicles per month and offers a concierge service, continuing education centers for insurance partners, an Enterprise Rent-A-Car location and offices for insurance adjusters. “We are thrilled to be opening a location in the Galleria area,” said Chris Abraham, vice president of Service King’s Houston market. “This is a prime location for us and we were glad that we were able to use and redevelop an existing vacated building in the area. We really enjoy our customers and partners in the Houston market and we believe this is a great fit for Service King.” Steve Feltner is the manager at the new facility, Service King’s tenth in the Houston area. Another location is set to open in July. Founded 35 years ago, Service King has grown to 41 shops in Houston, Dallas-Fort Worth and San Antonio. For more information, go to serviceking.com.
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CCAR Honors LA Shop with “GreenLink” Title
The Coordinating Committee for Automotive Repair (CCAR) recognized a Slidell, LA, collision repair shop with its “GreenLink Shop” status on June 29. The shop that received the recognition was Frank’s Accurate Body Shop. The “GreenLink Shop” status promotes consumer confidence in local automotive repair facilities’ environmental and safety awareness and implementation, according to CCAR. Repair facilities pursuing “GreenLink Shop” recognition must maintain high standards of excellence in environmental, health and safety practices in four categories. The CCAR initiative recognizes auto service facilities and collision repair shops with separate criteria established for each type of business. For more information visit ccargreenlink.org.
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Fiat 500s Do Better in Texas Market Than Predicted When the Fiat 500 product program was being drafted, Laura Soave, the brand’s top executive in North America, dismissed doubters within the company and insisted on adding a high-performance Abarth version of the minicar, according to Ward’s Automotive. The change was made and now dealers are chomping at the bit for the car’s first-quarter 2012 rollout. “I told them not to, but they’re taking deposits,” Soave said. On the eve of the 500’s fourth full month on sale in the U.S., another Soave bet appears to be paying off. “Texas is still kickin’ (butt) even though everybody didn’t think they would be,” she tells Ward’s. Bucking still more skepticism, Soave insisted on heavy penetration in Texas. So Chrysler approved 10 franchises for the Lone Star State, a total second only to California and tied with New York and Florida. “People misunderstand Texas,” she says, suggesting the market’s affinity for pickup trucks represents just one of its dimensions.
Recently released 2010 census figures show a steady migration to urban centers from rural areas as Houston, with 2.1 million residents, maintains its long-held position as the fourth-largest U.S. city. And while Dallas dropped to ninth place from eighth, with 1.2 million residents, San Antonio leapfrogged to seventh from ninth with 1.3 million residents, making Texas the only state besides California to place three cities in the nation’s top 10. When suburban populations are factored into the tallies, Texas is the only state with two communities in the top 10 – Dallas-Fort Worth-Arlington and Houston-Sugar LandBaytown, with resident totals of 6.4 million and 5.6 million, respectively. Ed Paez, Fiat studio director at Northside Fiat in The Woodlands, just north of Houston, reminds that the state’s population has a distinct cosmopolitan flair to match its increasingly high-tech economy.
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“You have people that have been brought in to work in the energy field and the computer field,” Paez tells Ward’s Automotive. Factor in urban sprawl and commuting becomes an integral part of daily life. “And Houston does not have a rail system like you find in many urban areas,” he says, adding a car such as the 500 represents a stylish, sensible solution to the daily grind. Similarly, the 500c—the cabrio version of the car—is proving more popular than projected. “I can’t keep them in stock,” Soave says, adding dealers are reporting turn rates of five or six days. “We’re looking to shift more (production) to cabrio.” Current demand suggests a mix in the range of 15% to 20%. “We had
originally anticipated 10%,” says Soave, who attributes the higher-thanexpected popularity to the novelty factor. There now are 70 Fiat dealers in the U.S. The brand plans to have 130. The car has been on sale in the U.S. since March. Through May—its best month with 1,759 deliveries, according to Ward’s data—Chrysler has recorded 3,141 sales. Based on this curve, Ward’s expects 2011 deliveries will range between 30,000 and 35,000. Chrysler’s plant in Toluca, Mexico—sole source of 500 production for the Americas—has annual capacity for 100,000 units. A national advertising push touting the 500 is set to launch July 4.
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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 13
Continued from Front Page
Contract Frustration
While he wants to continue using the company’s estimating system, as his shop has for more than 15 years, the information provider has refused to accept any changes to the 40-plus months that remain on the shop management module contract. “I’ve never have even had the program turned on,” the shop owner said. “They already have a year-and-ahalf of my money. I said they can keep the amount I’ve paid but just cancel it from there on. But they want it all. I know if I ran my business like that I would be out of business.”
Stuck in contract after DRP changes Steve Schaefer is only too familiar with being locked into a contract with an information provider. Schaefer is the president of Schaefer Autobody Centers, which operates six shops in the St. Louis, Missouri, area. Four years ago, he said, the company joined an insurer’s direct repair program that necessitated that he add a particular estimating system, signing a 4-year
contract with that system provider for three of his shop locations. “Having been burned before, a clause was added to the agreement such that if I ever ceased to participate in that specific insurer’s DRP program, the contract could be terminated,” Schaefer said. However, a few months later, the insurer switched to a new information provider, requiring its DRP shops to use a different system than the one the insurer had previously required. Schaefer said he was among the similarly-situated shops that asked the first information provider for some sort of release or relief from the contract for the system they no longer needed or wanted. “I was told I was bound to the full term of the contract Steve Schaefer since I was still participating in the insurer’s DRP program, despite the fact that the insurer was no longer using (that system),” Schaefer said. “I understood that they had some up-front implementation costs that had to be covered, but a 4-year contract for
a product I wasn’t using was ridiculous. Their excuse was they had stockholders to protect. My thought was: How about your customers and this industry?” Today, almost $42,000 later, Schaefer said, he is almost done paying off that obligation. “It’s a shame when these companies don’t respond with the same reasonable ethical business practices we expect of ourselves and business partners in general,” Schaefer said.
Beware of automatic renewals Scott Johnson of Greensboro Body Company in Greensboro, NC, said shop owners should remain keenly aware of when any software contracts end. Such contracts, he said, often include automatic renewal clauses, and if you make even one payment beyond the term of the original contract, it automatically renews for another year or more. John Hackleman of Hackleman Auto Collision Repair, in Danville, Ind., concurred. He switched shop management systems last year, and told the previous system provider he no longer needed the support he was paying for every month.
“I found out that although we were well beyond our original contract, it renews automatically in one-year increments,” Hackleman said. “I discovered this at my anniversary month but had not given them the 30-days’ notice to stop as required in the contract. So I was required to pay for an additional year and was not able to change their mind.” Another Indiana shop owner, who also asked not to be identified, said he actually had some success in renegotiating a contract with an information provider. Like Schaefer, he had signed the agreement for an estimating system—even though his shop already had another one—in order to participate in a particular DRP. When he decided to part ways with that DRP, he called the information provider to say he no longer wanted that second system, only —like Johnson and Hackleman—to find out he was several months into an automatic renewal period. “The only answer I could get was, ‘Sorry about your luck,’and information on what page in the contract that was so I could get my magnifying glass out to look at the clause,” the shop owner said. He now considers himself lucky that the information provider soon up-
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graded to a new system. When representatives of the company contacted his shop to see why it hadn’t converted over, the shop owner told them he wasn’t using it and didn’t want it. “The next day a lady called and said she could not get me out of the contract but could put me into a less expensive alternative,” the shop owner said. “I am now paying about a third of what I had been paying.” His recommendation: First thing upon signing a new contract, take the low-tech approach to knowing when you are able to get out of it. “I now have it on every calendar in the office to cancel the contract by sending them a letter 90 days, 60 days and 30 days before the end of this contract,” he said. John Yoswick is a freelance automotive writer who has a body shop in the family in Portland, Oregon. He has been writing about the industry since 1988. He is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact John by email at jyoswick@SpiritOne.com.
Groupon Offers First New Car Deal With Detroit Auto Dealership Groupon Inc offered its first car coupon on July 12, a sign the largest online daily deal company is expanding into bigger-ticket items, according to reports made by Reuters. Groupon offered a $199 deal good for $500 off the purchase or lease of a new or pre-owned vehicle at LaFontaine Auto dealership in Detroit. Unfortunately for the companies involved, only four consumers agreed to pay $200 for the $500 discount voucher. Groupon and LaFontaine had set 10 as the minimum required for the vouchers to be issued. In an effort to turn things around, the dealership and Groupon extended the offer from the original two days to four and considered lowering the number of consumers needed. But the lukewarm response showed that the online coupon craze isn’t a natural fit with auto retailing. Groupon, the group-oriented coupon site that specializes in daily deals, has more than 80 million members, usually offers discounts on
smaller items—such as restaurants and spa visits. The company typically takes 50 percent of revenue generated by deals. Branching out into bigger purchases means that 50 percent cut will be bigger in dollar terms. “The prospect of opening up markets like new cars and leases is attractive,” said Ben Edelman, an associate professor at Harvard Business School who has been critical of Groupon. “To the extent they can still take 50 percent revenue share that’s more money.” Groupon has done some other big-ticket deals recently, such as $500 off closing costs for real estate purchases, Edelman noted. The car offering may be more problematic, he added. “This voucher is for a very small portion of the cost of a car or lease, so it’s basically an agreement to buy or lease a car from LaFontaine,” Edelman said. “That’s poor negotiating because the dealer could take advantage of that by offering the same car for more money.”
In many Groupon offers, like restaurants and spas, prices are posted already, so customers know what they are getting, Edelman noted. In the case of the car voucher, it may not be clear what the discount will be applied to, he explained. “They need to fix that before this part of the model can take off,” Edelman said. Groupon filed to sell shares to the public last month, saying it hoped to raise at least $750 million. The company has been called into question by critics who say its business—essentially a coupon service—can be easily replicated both by startups and existing Web powerhouses. Google Inc has already begun such a service and Amazon.com Inc started a similar effort called AmazonLocal this month. The company has also garnered a lot of criticism for the percentage of profits they take from a businesses’ sales made through deals on their website.
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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 15
Shop Showcase with Erica Schroeder
Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
Carl Owen’s Paint and Body in Tyler, TX, Offers Top Rated Auto, RV and Truck Repair Carl Owen’s Paint and Body in Tyler, TX, is a family run business that has grown into a business with two area shops; one specializing in auto body work and one in RV and truck work.
RV and Truck Collision Center Manager Andy Wood
Carl Owens Paint and Body has been a family-run business for over 40 years; Carl Owens Sr. opened the Erwin Street shop in 1965 and had all operations running out of one shop for decades. Carl Owens Jr. took over management in 1981 and was able to open a second location dedicated to just auto repair about 5 years ago. Carl
Owens Jr. currently oversees all management operations at both shops. “This business was started in 1965 by Carl Owens Sr. and it was passed down to Carl Jr. in 1981 who still runs the business today,” said Andy Wood, Manager of Carl Owens RV and Truck Collision Center. The truck shop is a 9 acre facility and employs about 40 people. The auto shop is a 2 acre facility and employs about 20 people. Between both shops the business sees around 120 cars and various trucks per month and is able to pull in $600,000 gross per month. “We’re the biggest shop within about a 100 mile radius, from Dallas to Shreveport,” said Wood. Between both locations Carl Owen’s is able to service all sorts of different vehicles. According to Wood both shops are outfitted with the latest state of the art equipment. The truck shop has some custom equipment pieces most
16 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
body shops would not normally see because Carl Owen’s deal with trucks, trailers, RVs and field equipment. Both shops use a laser alignment machine and 2 downdraft spray booths. The truck shop is outfitted with a 50 ton car grabber frame machine and a 35 foot, 60 foot and 65 foot truck booth. The truck equipment enables technicians to repair vehicles that most shops would be unable to work Auto Collision Center Manager with. This ranges Johnny Nipper from big rigs to trailers to tractor equipment used by area farmers. Both shops are using PPG paints for their auto and truck painting needs. The auto shop is using PPG Deltron DBC acrylic paints and the truck shop is using PPG Dell Fleet paints.
Both Carl Owens shops also offers a lifetime warranty on any of the work done at either shop. This warranty covers anything that may happen as a result of the shops work and includes any body or mechanical repair work. Technicians at both shops are also I-CAR Certified. The business offers free estimates and rental cars in order to better serve Carl Owens’ customers every need when having their car repaired at either facility. More information can be found at www.carlowenspaint.com. Carl Owens Auto Collision Center 10145 Hwy. 64 East Tyler, Texas 75707 (903)566-5300
Carl Owens RV and Truck Collision Center 2415 E. Erwin Tyler, Texas 75702 (903)597-2628
Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com
What Makes A Dealership Selling Wholesale Parts Distinctive? with Larry Williams
What makes a dealership distinctive? By my definition, that dealership must have a greater image of integrity, service, and loyalty than their competition. They have the greatest number of regular customers, and the best word-ofmouth reputation. Even their smallest customers know that their business is appreciated. I offer you an example, an organization that has not just survived, but has grown steadily based on their customer service. Lasher Auto Group in Elk Grove, CA is an excellent example of the rewards of good service. AJ Killian, the parts manager, was determined to stay active even when others were cutting back or even closing. He now offers eight full time delivery vehicles covering the greater Sacramento area. This is no sudden success; it has come slowly over the last eight years. Steady, reliable service enabled AJ
and his partner customers to grow even in the hardest times. He talked to me about his operation, and I pass along some of his ideas here. Quicker loading of his delivery trucks happens with a drive-through system that avoids congestion. AJ handles all the stocking orders, but delegates the customer orders for better service. VW, Honda, and Chrysler programs assist him when Insurance Company demands create excessive use of non-OEM parts. Hopefully other manufacturers will follow their lead, and also help their dealer body to compete. Separate inventories, approaching 1.5 Million, but with combined facilities, for more efficiency. Expanding when necessary, watching driver over-time for clues, and always having a spare delivery vehicle available. Trucks routinely deliver within
35 miles, and a scheduled delivery even goes 125 miles for some very special customers. AJ has two full time parts representatives, and visits his customers whenever he can. AJ belongs to the California Autobody Association, and attends their meetings. All of these ideas have one thing in common, they all relate to customer service. All the dealers who failed their customers, several in this area, are now closed. I believe that the continuing increase in this dealers business is due to overall attitude. Positive attitudes will create positive results. If you are in the southern Sacramento area, and need parts for a VW, Audi, Subaru, Isuzu, Suzuki, Dodge, Chrysler, Acura, or Jeep, I wholeheartedly recommend Lasher Auto Group. I have no doubt that you will be pleased with their service.
I invite other parts managers to contact me, and tell me their own stories of success. Wholesale relationships, quality personnel, always striving to be better, these philosophies deserve rewards. I will be happy to add you to my list of distinctive dealerships. Larry Williams is a former parts manager and consultant with national awards and over 30 years of experience in creating profitable departments. He can be reached at ljoew2@gmail.com.
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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 17
Prestige Imports is a BASF Waterborne Advocate in Colorado by Ed Attanasio
When his customers are spending big money on vehicles costing more than $50,000 and sometimes well into six figures, Jim Frost, the manager at Prestige Imports Collision Center in Lakewood, Colorado, knows his paint jobs have to be top-tier every single time. That’s why he’s enthused on several levels about his conversion to waterborne paint. Frost is pleased about the performance and the finished product he’s getting with Glasurit 90-Line, BASF’s waterborne product, and Prestige is proud to be a Colorado waterborne pioneer—the very first body shop in the Centennial State to adopt the green approach nearly three years ago. Frost, 41, started working for his father’s shop at age 15. Now his collision center serves three Colorado dealerships: Prestige Imports Porsche Audi, MercedesBenz of Littleton and Mile High Honda Acura Mitsubishi. Prestige Imports Collision Center will repair any type of vehicle, but primarily focuses on the European brands its dealership sells, as well as Ferraris, Bentleys, Maseratis and Lotuses, among others. With 19 employees, this 19,000 square-ft. facility has an average repair ticket of approximately $3,300 and at any given point it’s likely that the shop will have more than a dozen repair orders in-house averaging more than $20,000 each. Frost conducted an in-depth study before he chose BASF as his paint vendor, he told Autobody News. “We decided to change to waterborne and adopt all of the California laws even before they went into effect there. We analyzed all of the waterborne paint lines that were out there starting a little more than three years ago. We discovered that BASF offered an ideal solution for us in our environment. Many of the cars we repair were originally painted with BASF waterborne from the factory. We liked the product and appreciate their support, so that was a big part of the decision.” Becoming familiar with BASF Glasurit 90-Line involved watching other shops using it, Frost explained. “I went out to Southern California with my painting team to their training facility there and BASF took us around to local body shops that were using the BASF waterborne product. At that point, we went through some training and when we came back here, we felt as though we were
SHOP & PRODUCT SHOWCASE Prestige Imports Collision Center Location: Lakewood, CO
Telephone: 303-238-7391 www.prestigeimports.com www.????.com Company At A Glance... Type: Collision Repair
Facility Employees: 19
In Business Since: 1974 DRP Programs: Zero
Number of Locations: One All of the equipment and systems at Prestige have to be top-notch, because they work on the world’s most expensive cars
ready to roll. FinishMaster, our local jobber, assembled all of the necessary materials and we came in one Saturday and switched over to water.” It was a challenge for his paint crew during the first month or so, but Prestige didn’t have a single comeback and the learning curve flattened out quickly. “Change is never easy, but we’re always looking to make ourselves better,” Frost said. “We decided to push the envelope and make a definitive move. After 30 days of saying this is the way we’re painting cars and we’re not looking back, the painting staff accepted it. And now I can guarantee that they would never go back.” What was the biggest issue to converting to BASF Glasurit 90Line? “The main challenge for us is our climate here in Colorado,” Frost said. “The humidity swings and the temperature changes here all the time, so we had to start what I call “cocktailing our mixes” to make them correct. Once we were able to solve that, it was seamless. We retrofitted the booths and we installed more fans and that was essentially it. A lot of people were telling us that we had to buy a lot of other equipment, but we determined it wasn’t actually necessary.” Frost also uses BASF’s paint inventory system and values it for its ease-of-use. “We have incorporated their SmarTools inventory control and management system, and we like it. Every week, I get an accurate report, so I know what to order and exactly what I have at any given time. I also credit that to an increase in profitability, because we don’t run
18 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
out or ever buy too much of the product.” Even without any pending legislation on the horizon in Colorado, body shops are flocking toward the waterborne solution statewide, Frost said. “Since we switched over in 2008, roughly 35 shops have converted and we always invite other shops here so they can see how we’re doing it. We’ve even had other shops sending their painters here, pulling the triggers alongside our crew to learn the product and tell them “hey, it’s not so hard. You don’t need to be afraid of it.” We tell other shops to try the BASF Glasurit 90Line and make your own call. There is no substitute for doing it yourself. Some of these shops are competing with us, but we have no problem with sharing information this important. In the end, we should all be stewards of the land, and if I can help to get one guy over his apprehension using this product, then so this is definitely a win for everyone.” Business life is a series of tradeoffs, but switching to waterborne was a win-win for Prestige, Frost says. “The product costs slightly more, but the coverage is superior. The color matches are more accurate and we have experienced an increase in our overall material gross profits since we made the change. We’re very environmentally-minded here in Colorado and we participate in the Environmental Leadership Program sponsored by the state. They’ve recognized us for our green practices from a recycling perspective and they awarded us with their silver certificate for the changes that we’ve made here.”
Combined Production Space: 19,000 square feet
Prestige was the very first collision facility in Colorado to make the green move to waterborne paint, when they embraced BASF Glasurit 90Line in 2008
Prestige is pleased to report that their color matches are dead-on with BASF Glasurit 90Line
BASF Company Contact: David Brez Strategic Initiatives Manager Phone: 951-315-1395 (Mobile) email: dave.brez@basf.com website: www.basfrefinish.com
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Nissan Researching Solar Charging for Batteries in its All-Electric Leaf Autobody News
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Japanese automaker Nissan is testing an easier and greener way to recharge its Leaf electric vehicle by using solar power, part of a broader drive to improve electricity storage systems, the Associated Press reported. Nissan’s Leaf went on sale late last year, but the automaker is looking ahead to about five years time when aging Leaf vehicles may offer alternative business opportunities in using their lithium-ion batteries as a storage place for electricity. Nissan Motor Corp. acknowledges that, once the Leaf catches on, a flood of used batteries could result as the life span of a battery is longer than an electric vehicle’s. Electricity generation and storage are drawing attention in Japan after the March 11 earthquake and tsunami caused massive blackouts in
the country’s northeast. A nuclear power plant that went into meltdown, Fukushima Dai-ichi, after backup generators were destroyed by the tsunami, is also renewing fears about a power crunch. In the new charging system, demonstrated to reporters earlier this month, electricity is generated through 488 solar cells installed on the roof of the Nissan headquarters building in Yokohama, southwest of Tokyo. Four batteries from the Leaf had been placed in a box in a cellar-like part of the building, and store the electricity generated from the solar cells, which is enough to fully charge 1,800 Leaf vehicles a year, according to Nissan. Although interest is growing in renewable energy such as solar and
wind power, a major challenge is the storage of electricity, which remains expensive without a breakthrough in battery technology. Such interest is likely to keep growing in Japan because of fears about the safety of nuclear power. The Hamaoka nuclear plant is being shut down because of such concerns, and more may follow. Other Japanese automakers, such as Toyota Motor Corp. and Honda Motor Co., are working on similar projects, such as linking hybrids with solar-equipped homes as part of energy-efficient communities called “smart grids.” Electric vehicles produce no pollution or global-warming gases but need electricity, whose production mostly relies on polluting oil or gas. Even after a Leaf is ready to be
scrapped, its battery is likely to have 80 percent of its capacity. On the plus side, the Leaf with its high-capacity battery can store the equivalent of two days of household electricity use, Nissan said. “What’s important for Nissan is to show solutions through EVs, step by step,” said Corporate Vice President Hideaki Watanabe. A joint venture with Sumitomo Corp. called 4R Energy Corp. plans to offer eletricity storage systems like the one at Nissan headquarters for business and public facilities as a commercial product by 2016. Nissan also hopes to start selling such storage systems for regular homes by the fiscal year starting in April 2012. It will carry out field tests starting in December, 4R Energy President Takashi Sakagami said.
Vehicle owners who opt to convert vehicles to run on compressed natural gas have a new refueling option, according to the Detroit News. Michigan Consolidated Gas Co. on July 14 unveiled a new, four-pump compressed natural gas station— complete with a credit card reader for the public. It is one of 13 such stations in Michigan that are open to the public. The natural gas utility is hoping the alternative fuel’s lower emissions and lower cost per equivalent gallon of gasoline will propel more companies that use heavy vehicles such as trucks or low-gas-mileage vans to consider making the switch to compressed natural gas. “As you make it more convenient for people and there are more options for refueling, it makes it a more attractive alternative,” said John Austerberry, a spokesman for DTE Energy, the parent company of MichCon.
In 2009, MichCon was awarded $5.4 million in federal money through the nonprofit Clean Energy Coalition to boost the number of natural-gas fueling stations in Michigan and convert 173 new Ford Econoline vans to operate on natural gas. DTE Energy is investing $6.8 million toward buying the new vans and refurbishing more than 10 other natural gas stations it operates across Michigan. Jerry Norcia, MichCon president and chief operating officer, said he personally bought a Ford F-150 Harley-Davidson model this year and converted it to run on natural gas. “Especially at $1.94 a gallon (equivalent to gasoline), it makes me feel good every time I jump in that truck and drive it,” he said. The cost to convert a regular gas vehicle to natural gas, though, is a barrier that prevents some companies and others from making the switch. Conversions can range from
$11,000 to $20,000, depending on factors such as the natural gas tank size, said Ken Baranski, director of sales for Suburban Ford of Sterling Height’s fleet division. The dealership sold the vans to MichCon and contracted with National Fleet Services of Michigan for the conversions. “I’ve already saved about $1,000 in fuel,” Norcia said, after filling 2.9 gallons of compressed natural gas into his truck for $5.67. The U.S. Energy Information Administration estimated in 2009 that 645 vehicles were running on compressed natural gas in Michigan, up from 518 in 2008. The 2009 numbers are the most recent available. Nationally, more than 114,000 natural-gas powered vehicles are on U.S. roadways, according to the federal government. About 1,000 natural-gas fueling stations are available across the nation, about half of which are publicly
available, says National Gas Vehicles for America, a Washington D.C.based trade association representing the natural gas vehicle industry. Refueling infrastructure and the range of a natural-gas vehicle are among other barriers to more adoption, said Sean Reed, executive director of the Ann Arbor-based Clean Energy Coalition. Although these barriers will potentially exist for any new vehicle technology. The coalition, through its $15 million federally funded Green Fleets initiative, works with other Michigan entities to deploy clean-fueled vehicles, such as those running on natural gas and liquefied petroleum gas, and build infrastructure to support them. “If they don’t know anybody who has a vehicle like this, it makes it seem like a challenging thing to do because of the unknown,” Reed said. “When people see more of them around, it gives people a greater comfort level.”
Companies Working to Expand Natural Gas Vehicle Options
20 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
How to Keep Your Cool When Working With HVAC Diagnostics with Gonzo Weaver
Leave it to the manufacturers to take a simple thing like heat and air conditioning and turn it into an electronic jungle of wiring, sensors, and computer components. HVAC units have come a long way from when I started in the business. Not that I want to dwell on the past, but it might be a good idea to make sure we understand the basics before diving into the problem of today’s systems. I always feel that if I understand a system fully before doing any repair work I’m more likely to get it right the first time. Diagnostics procedures vary from car to car and from year to year. I’m finding more and more these days it’s a lot easier to diagnose the HVAC system with a scanner rather than with a print and test light. With the advent of the electronic door motors and the crazy locations on some of
these components I would definitely try to use a scanner when possible. An interesting fact: even on some of the aftermarket scanners there is a wealth of information on HVAC systems. Before purchasing a scanner I would ask whether or not it covers HVAC units and which years, which models, and how thorough it is. The more information you can have before you have to get your hands dirty the better. One of the more common repairs I’ve see on both domestic and imports is connections. The manufacturers (in my opinion) have gone to the point of making these connection just barely survivable, but, not for the length of time that consumers are stretching their vehicles useable years on the road. The other item of concern is the control sensors, i.e. high pressure sensor, low pressure sensor, sun load,
etc., for the most part I wouldn’t drag out that test light and start stabbing the wires. They may look like a sensor, they may have wires like sensors, but there’s a good possibility that it’s not a positive or negative signal at the sensor. In some cases the sensor maybe reading a digital type signal (wave form voltage) that would be easier read on a scanner screen instead of that 12v test light. These values are then sent to the PCM to be interpreted and used to determine the actual A/C clutch engagement or door positions. There again, a scanner is the proper tool of choice, not the test light. Assuming we don’t have a component failure and that the entire problem is a connection somewhere—let’s say at the blower switch—which in some cases is also the “ON” switch for the entire system. If the plastic housing has been melted
and the physical “metal” connector is skewed out of place chances are that no matter how much manipulating you do to “re-fit” the metal tab back into place it’s still going to end up back where it started at and your customer will be back at your door with the same problem. I would locate a replacement connector either from the dealer or the local parts store. (I’ve had next to no luck getting a connector from the salvage yards, most of the connectors that come from the salvage yard are just as bad as the one I already have in the car. But, you might get lucky.) The advantage of using a scanner to see certain sensor values and door positions also has one extra quality to the diagnostic process. Codes; codes for the HVAC system are valuable information for you as the tech. See HVAC Diagnostics, Page 22
www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 21
Chevy Cars Get Highest Brand Share in 20 Years, GM Says
U.S. Chevrolet car sales in the first half of the year are set to reach their highest share for the brand in 20 years, outselling trucks in June for the third straight month. Chevy cars accounted for just above 50 percent of the brand's total U.S. sales for June—the third consecutive month in the majority—and 47 percent for the first six months of 2011, said Alan Batey, vice president of sales and service for Chevrolet. He declined to disclose GM's expected total results for June, which the company reported on July 1. Through May, Chevy sold 385,257 cars and 362,443 trucks— with total brand U.S. sales rising 17 percent in an overall market that improved 14 percent. "You'll see continued strength in passenger cars, particularly in the compact and mid-car segments," Batey said. Citing gas prices that are still about $1 a gallon higher than a year ago, GM pointed out that 46 percent of Chevy's retail buyers in the first six months chose a more fuel-efficient four-cylinder engine in their vehicles, double the rate of five years ago. Continued from Page 21
HVAC Diagnostics
However, a code is not the answer, a code is a starting point or a direction for repair. So many times I see vehicles come in with new parts bolted in because the last place that had it read a code and assumed that meant replace the part. A perfect example of this was a 2002 VW Beetle that came in with a brand new compressor and fan controller on it. There was a code stored for poor compressor performance at idle, which was exactly what it was doing. If the car was at an idle the A/C was off, rev the engine just slightly and the compressor would turn on and work perfectly. Bring it back to an idle and the compressor would shut back off. Checking into it a little further, I found the real culprit to be the charging system. At an idle the alternator couldn’t develop enough output to maintain all the systems in the car. The PCM would shut down the A/C trying to maintain a voltage level that was acceptable but never got to the point of causing the charge indi-
Hyundai and Kia Both Raise 2011 Sales Forecasts
Hyundai Motor Co. raised its 2011 U.S. sales forecast to 624,000 units, representing a 16 percent gain from last year, the Korean automaker said June 30. Last year, the Hyundai brand's U.S. sales rose 24 percent to a record 538,228. Sales through May are up 29 percent to 263,588 vehicles. Reuters reported June 29 that Kia Motors Corp. also hiked its 2011 U.S. sales forecast to 433,000 units. That would be a 21.5 percent increase from the 356,268 vehicles the brand sold in the United States last year. Through May, Kia's sales are up 45 percent to 200,060 units from the year-ago period. Hyundai credited robust demand for current and upcoming vehicles for the higher sales target. Recent vehicle debuts include the redesigned Elantra compact, the 2012 Accent subcompact and a freshened 2012 Genesis luxury sedan. The new 2012 Veloster sports coupe and an updated Equus full-sized luxury car will debut by year end. In January, Hyundai Motor America said production constraints would limit U.S. sales to around 600,000.
cator to come on during this whole process (Cars are getting too smart these days). The best thing I can tell you about diagnosing HVAC systems is to consider the year and make of the car, find out whether or not a scanner can code, read values, and or give you some information on the condition of the components before you start changing things. If there isn’t an access by way of a scanner, then I would suggest a wiring diagram and a description page that will inform you of how each component works in that given system. If you keep your cool I’m sure you can get it diagnosed and repaired before your customer gets too hot.
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22 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
J.D. Power Survey Ranks Ford 23rd out of 32 Auto Brands, of US Manufacturers Only Cadillac Makes the Top Ten For the first time since Ford CEO Alan Mulally took charge of the automaker, its initial quality scores have fallen below the industry average. The J.D. Power & Associates 2011 Initial Quality Rankings put Ford in 23rd place among 32 auto brands ranked by consumers. Ford fell 18 spots from #5 last year, with the latest survey showing Ford registering 116 problems per 100 cars. The industry average (107 problems per 100 vehicles) improved slightly from last year’s IQS rankings with Lexus topping the list this year with 73 problems per 100. The top 10 in the J.D. Power IQS Rankings. #1 Lexus, #2 Honda, #3 Acura, #4 Mercedes-Benz, #5 Mazda, #6 Porsche, #7 Toyota, #8 Infiniti, #9 Cadillac, #10 GMC The other American brands all came in below the industry average. #14 Chevrolet, #16 Chrysler, #17 Lincoln, #20 Buick, #22 Ram, #23 Ford, #32 Dodge With Ford, car and truck buyers have been complaining of technical and electronic features not working as
they should. In January, Consumer Reports called the new MyFord and MyLincoln Touch systems a distraction, summarizing the frustration some new Ford buyers are feeling. There have been reports of Ford buyers complaining the system struggles to respond to voice commands or that it’s simply too confusing. For Ford, this latest ranking shows the downside of trying to ride the tech advantage it’s had for last couple of years with the Sync system. Sync was a game changer that not only helped drive sales with higher transaction prices, it changed the image of Ford. MyFord Touch was supposed to be the next generation that would extend Fords lead when it comes to incar technology and communications. Overall, Ford is still doing very well, and the quality of its new cars and trucks are much better than a few years ago.
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Automatic Braking, as Implemented by Volvo, Does Prevent Crashes Collision Week has reported that a new study of insurance claims data by the Highway Loss Data Institute (HLDI) finds that Volvo’s City Safety collision avoidance system is working well in real world situations, and may be preventing as many as one in four lowspeed rear-end crashes that happen in everyday commuter traffic. The study found that Volvo XC60 midsize SUVs outfitted with the standard collision avoidance feature are far less likely to be involved in lowspeed crashes than comparable vehicles without the system. In fact, HLDI found that claims under property damage liability coverage were filed 27 percent less often for the XC60 than other midsize luxury SUVs. The implications for the future collision repair market could be enormous. This system is designed to avoid typical low-speed (read repairable) rear-end crashes. Each time the system successfully avoids a collision, it avoids a single crash, but as in many rear-end collisions, the system eliminates two repair jobs, and sometimes more. City Safety, an automatic braking system based on forward scanning laser, is designed to help a driver
Hertz to Acquire Donlen in $930M Transaction
Hertz Global Holdings and Donlen Corp. announced July 18 they have signed a definitive agreement for Hertz to acquire Donlen. The transaction has been approved by the boards of directors of both companies and by the stockholders of Donlen. The transaction is expected to be completed in the third quarter of 2011, subject to the satisfaction of customary closing conditions, including regulatory approvals. Mark Frissora, the chairman and chief executive officer of Hertz, said, “The acquisition of Donlen expands our portfolio of transportation solutions by giving Hertz an immediate leadership position in long-term car, truck and equipment leasing and fleet management for corporate customers who need scale and sophisticated fleet management services. This range of solutions from a single provider will make Hertz unique among its peers.” Frissora added, “The integration of Donlen gives Hertz a yearly and multiyear offering that complements our hourly, daily and monthly car sharing and car rental options for customers, giving us a more stable revenue stream and new adjacent markets to leverage our existing business model.
avoid rear-ending another vehicle in slow-moving, heavy traffic. In the event of an impending collision, City Safety automatically brakes when traveling at speeds of about 2 to 19 mph. It detects and reacts to other vehicles within 18 feet of the front bumper. If the speed difference between vehicles is less than 9 mph, City Safety helps avoid some crashes altogether. If the difference is between 9 and 19 mph, the feature may not prevent the crash but will reduce the severity. It’s not designed to work at speeds faster than 19 mph. HLDI analysts compared claim frequency and claim severity for the 2010 XC60 with 2 groups: other 2009-10 midsize luxury SUVs and other 2009-10 Volvo models. Researchers examined claim frequency and payouts under three types of auto insurance coverage: property damage liability, bodily injury liability, and collision. Claim frequency rates for the XC60, the only Volvo with the automatic braking feature in the study, were lower than all other midsize luxury SUVs combined, as well as other Volvos, under all three types of insurance coverage.
GM is Top OEM in Truecar.com June Performance Scorecard
Truecar.com, the pricing-analysis website, has determined the top manufacturer on the June scorecards was General Motors, followed by Porsche and Hyundai. Near the bottom of the list were Saab and Mazda. TrueCar.com says the brands that received the highest grades were Chevrolet, Audi and Porsche, and the brands with the lowest grades were Saab, Mazda, Chrysler and Infiniti. The site recapped the Performance Scorecards grades each manufacturer and brand on eight different measurements including pricing, sales, incentives, customer loyalty, market share and days in inventory data. “General Motors had a great sales month in June and a big drop in their discounts which propelled them to have the highest grade,” said a Truecar.com spokesman.“The Japanese automakers continued to be on the bottom of the scorecards due to low inventory, leading to low retail sales change and a decrease in market share change.” The biggest gainers among manufacturers from May to June were GM moving from a A– to an A+, and VW moving from a B to an A–.
24 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
Adrian Lund, president of HLDI, said, “The pattern of results strongly indicates that City Safety is preventing low-speed crashes and reducing insurance costs. XC60s in the study had fewer claims, but when owners did seek payment under property damage liability, the average claim cost of $3,058 was higher than for vehicles in either control group, 10 percent higher than for other midsize luxury SUVs and 27 percent higher than for other Volvos. “Although it may seem counterintuitive, higher payouts for property damage liability are a sign that City Safety works,” says Matthew Moore, HLDI vice president and director of the study. Because the feature is preventing the kinds of fender-benders drivers get into on busy roads, XC60 owners aren’t filing as many low-cost claims (those less than $1,500) as people who drive other midsize luxury SUVs. The frequency of high-severity claims ($7,000 and higher) was about the same for the XC60 as it was for the control vehicles.
City Safety has been standard on XC60s since the 2010 model year and is standard on 2011-12 S60 sedans and 2012 model S80 sedans and XC70 wagons. HLDI is working with several automakers to similarly evaluate the loss experience of other crash avoidance systems technologies as the features make their way into more vehicles.
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Hertz Files Premerger Notice with Federal Antitrust Regulator
Hertz Global Holdings has pushed back the deadline of its latest offer to acquire Dollar Thrifty Automotive Group, but the proposed Hertz-Dollar Thrifty merger took a major step forward the week of July 10. Hertz says that it gave federal antitrust authorities the premerger notification required by the Hart-ScottRodino Antitrust Improvements Act of 1976, as amended, regarding its offer for DTAG. According to the Federal Trade Commission, Hart-ScottRodino basically created the path by which parties must inform the FTC and Department of Justice about large mergers and acquisitions ahead of time. “The Hart-Scott-Rodino Act established the federal premerger notification program, which provides the FTC and the Department of Justice with information about large mergers and acquisitions before they occur,” the FTC explains on the Bureau of Competition section of its website. The FTC says that deals cannot be closed until the one of the following happens: the specified waiting period ends or the government allows the waiting period to end early.
Audi Plans to Build Cars in North America, Eventually
Automotive News is reporting that Audi AG has decided to build a vehicle assembly plant in North America and is considering an additional engine and transmission plant. Volkswagen Group’s premium brand is completing details of the assembly plant—including models, location and capacity. Audi CEO Rupert Stadler said all decisions will be made within three years. “It is totally clear that we need new production capacity in the U.S.,” Stadler said in an interview. The question is when.” An Audi source said the carmaker is considering building an engine and transmission plant in North America to increase local content. That second plant could be shared with VW division. Inventory is an issue for Audi, which set a sales record in 2010 with 101,629 sales in the United States. Stadler said Audi plans to increase U.S. sales by 10 to 20 percent this year and could surpass 150,000 units by 2015. “Our dealers currently ask for more cars than we can deliver,” he said. “Our delivery times are still too high.”
26 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
And You Thought You Knew Ugly Dogs One of our reporters, Ed Attanasio, recently entered his Chihuahua mix named Ratdog in the 23rd annual World’s Ugliest Dog Contest, held June 24th at the Sonoma-Marin Fair in Petaluma, California.
The first prize was $1,000, which comes with the coveted Ugly Trophy and a year-round modeling contract from House of Dog (which also comes with another $1,000!). Unfortunately for Ratdog, there was one canine deemed even uglier than Ratdog. A real dog from Sacramento, California named Yoda. Ratdog finished 2nd in the Mutt Division, which was a nice performance by this 14-year-old deaf and toothless rescue mutt.
Here’s the winner–a dog named Yoda from Sacramento, California. PHOTO CREDIT: Simone Alexander
ABN reporter Ed Attanasio displayed Ratdog at the 23rd annual World’s Ugliest Dog Contest on June 24th at the Sonoma-Marin Fair in Petaluma, California. PHOTO CREDIT: Simone Alexander
Pictures of Ed and his dog appeared in newspapers worldwide and were interviewed for television news organizations from the U.S., Germany, Israel, Japan and the UK, among others.
Comprehensive Review of Distracted Driving Research Released The Governors Highway Safety Association (GHSA) released the first comprehensive overview summarizing distracted driving research for state officials. The report considered research from more than 350 scientific papers published between 2000 and 2011. GHSA produced the new report—Distracted Driving: What Research Shows and What States Can Do—with a grant from State Farm®. The report summarizes: what distracted driving is, how often drivers are distracted, how distraction impacts driver performance and crash risk, what countermeasures may be most effective and what states can do to reduce distracted driving. “Despite all that has been written about driver distraction, there is still a lot that we do not know,” said GHSA Executive Director Barbara Harsha, who oversaw the report’s development. “Much of the research is incomplete or contradictory. Clearly, more studies need to be done addressing both the scope of the problem and how to effectively address it.”
The report outlines the following certainties: •Distractions affect driving performance. •Drivers frequently are distracted, perhaps as much as half the time. •Drivers adapt to some extent: they pay more attention to driving and reduce their distracting activities in more risky driving situations. •Distractions are estimated to be associated with 15 to 25 percent of crashes at all levels from minor property damage to fatal injury. •Texting likely increases crash risk more than cell phone use. •Cell phone use increases crash risk. Based on the existing research, the report urges states to implement the following countermeasures: •Continue to leverage effective, lowcost roadway countermeasures such as edgeline and centerline rumble strips, which alert motorists when they are drifting out of their driving lane. •Record distracted driving in crash reports to the extent possible, to assist in evaluating distracted driving laws and programs.
•Monitor the impact of existing handheld cell phone bans prior to enacting new laws. States that have not already passed handheld bans should wait until more definitive research and data are available on these laws’ effectiveness. •Evaluate other distracted driving laws and programs. Evaluation will provide the information states need on which countermeasures are effective and which are not. The report also lists countermeasures that states should consider, such as: •Enact a texting ban for all drivers and a complete cell phone ban (both handsfree and hand-held) for novice drivers. •Enforce all existing cell phone and texting laws. •Implement distracted driving communication programs. •Help employers develop and implement distracted driving policies and programs. GHSA Executive Director Barbara Harsha stressed, “While distracted driving is an emotional issue that raises the ire of many on the road, states must take a research-based approach to addressing the problem.
Until more research is conducted, states need to proceed thoughtfully, methodically and objectively.” Harsha also noted that high visibility texting and hand-held cell phone enforcement demonstration projects in New York and Connecticut, funded by the states and the U.S. Department of Transportation and modeled after the Click It or Ticket seat belt program, are proving to be effective in helping to change motorist behavior. “Our report includes the preliminary results of these cell phone crackdowns, which have prompted dramatic declines in hand-held cell phone use and texting behind the wheel. The final results are expected shortly and should be considered as states move forward with education and enforcement initiatives.” Visit www.ghsa.org to view the full report.
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Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
State and Federal Governments Consider New Insurance Regulations From California to Massachusetts, the judicial system and lawmakers are tackling related to the auto insurance that pays for much of the work collision repairers do. The federal government is also considering the role it should play in regulating insurers as well. Here’s a wrap-up of some of the insurance-related news that will likely be of interest to shops. Feds eye more insurance oversight. Federal legislation (HR 1943) that would partially repeal the McCarran-Ferguson exemption from antitrust regulations for insurers has been reintroduced into Congress by Reps. Peter DeFazio (D.-OR) and Louise Slaughter (D.-NY). “No matter what political ideology, most can agree that insurance companies should play by the same rules as virtually every other industry in America,” DeFazio said.
A similar bill, which requires only that health insurers operate under antitrust laws, passed the House during the last Congress but was not acted upon in the Senate. The Automotive Service Association (ASA) has supported such legislation, saying it is a step toward broader repeal of McCarran-Ferguson. Meanwhile, former Illinois Insurance Commissioner Michael McRaith started work in June as the first director of the new Federal Insurance Office. McRaith previously worked in various capacities in connection with the National Association of Insurance Commissioners, and was an attorney in private practice for 15 years in Chicago, representing insurers and other financial institutions. McRaith leads a new federal office with little regulatory power but that will report to Congress next year
on gaps in the existing state-based regulation of insurers. Court decision clears way for lawsuits. A California appeals court ruling in June appears to open the way for policyholders to sue insurers for violations of the state’s anti-steering regulation rather than leaving enforcement of that section of the insurance code up to the Insurance Commissioner. The appeals court reversed a lower court’s dismissal of Chris Hughes’ potential class action suit against Progressive. Hughes sued Progressive claming that the insurer didn’t tell him after a 2005 accident that he had the right to select the shop that would fix his vehicle (and he thus took it to a Progressive DRP shop and was unhappy with the work). California insurance code prohibits insurers from suggesting or requiring use of a particular shop unless
the insured asks for a referral or is notified in writing of the right to use any shop. Hughes’ suit said Progressive has a company-wide practice of using “its position of power over its insured, in the form of incentives and requirements to carry out its program of steering.” Progressive argued that prior court rulings held that suits brought by private parties to enforce the insurance code are not provided for under California law. But the appellate court found that Hughes was not suing over a violation of insurance code but for violation of unfair competition law. Texas again cautions insurers. Texas, too appears to be brewing as a key battleground in the fight over steering. For the second time within a year, the Texas Department of Insurance has issued a bulletin reminding insurers that state law prohibits them from “directly or indirectly” limiting
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auto insurance coverage by limiting policyholders from using a shop of their choice. The bulletin also states that while an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither that nor policy language suggests that the reasonable amount for repairs or parts must be based on the amounts charged by DRP shops. Insurance Commissioner Mike Geeslin said that despite his similar warning last August, his department continues to receive reports of insurers steering and limiting reimbursement rates. Others states pass or consider insurance legislation. Alabama Gov. Robert Bentley has signed a new law to create by 2013 an electronic database to match up cars in that state to valid insurance policies; the system will enable law enforcement officials and DMV officials registering vehicles to verify proof of insurance. Officials estimate that about 22 percent of Alabama drivers lack car insurance. A legislative proposal in Michigan would allow low-income drivers
with clean driving records in Wayne County (which includes Detroit) to purchase reduced personal injury auto insurance coverage for lower rates; data from the Insurance Information Institute indicates Detroit drivers have the highest premiums in the country, 56 percent more than second-place New Orleans. A new law in Nevada raises the penalties for drivers who let their insurance lapse; a single lapse of 30 days or less carries the same $250 penalty that had been in place in the state, but longer or multiple lapses can raise the penalty to as high as $1,250. Rhode Island has passed a budget bill that as of October 1 will require consumers whose vehicle is a total loss to pay sales tax on the full value of a replacement vehicle. Superintendent of Insurance Joseph Torti has issued an advisory saying insurers will have to include sales tax in their settlement calculation on total losses in order to fully compensate the policyholder. Under a legislative proposal in Massachusetts, insurers and lienholders could not mandate that a vehicle owner release of any “black box” data
from a vehicle’s “event data recorder” as a condition of a policy or lease. The bill requires vehicle manufacturers to disclose the presence of such recorders, and designates the vehicle owner as the owner of any such data. Reports on insurance complaints available. Missouri regulators have released the latest report on consumer complaints about auto insurers, showing complaints fell by 14 percent last year to fewer than 3,100. For a copy: http://tinyurl.com/64kp2yf And Wisconsin regulators said they received about 780 complaints against auto insurers last year, about 10 percent of all consumer complaints related to insurance. For a copy: http://tinyurl.com/65dt64a Other insurance-related news. GM will include one year of free auto insurance through MetLife for residents of Oregon or Washington who purchase a new GM vehicle by Sep-
tember 6. Commercial and fleet customers are not eligible. MetLife has the option to cancel the coverage after one year, and GM offers no discounts for those who choose to stick with their current insurer and opt out of the MetLife coverage. The automaker said it may expand the program to other markets if successful. Also in the Northwest, some insurers are clearly keeping an eye on the ranking they are given by shops in an annual surveys similar to one conducted by a number of state associations around the country. Oregon Mutual Insurance, the 14th-largest auto insurer in that state, is including with its policy renewal mailings to its insureds a flier touting the “B+” grade it received (which tied it for the highest grade among 21 insurers) from collision shops in a survey conducted by the Northwest Automotive Trades Association.
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Hate the Way the Strings Are Pulled? Don’t Become an Insurer’s Puppet with The Insurance Insider
Thanks to a suggestion emailed from a reader of this column (J.W.), here are my thoughts and insights on the Farmers Insurance Circle of Dependability (COD) direct repair program agreement requirements. The Society of Collision Repair Specialists (SCRS) recently published the agreement, saying it felt that some of the requirements warranted being made public. As an insurance company executive, I often wonder what the association’s true intent is. My guess is that it’s not because they were trying to foster good relations with insurers. Personally, I think it’s a childish reaction to a big-boy problem. Hopefully, they feel they accomplished their mission. I can assure you that it doesn’t build trust or confidence with any insurance company or organization looking to build common ground with the association.
But enough of that rant. What I’d like to focus on is some critique of the
concerns about the requirements that SCRS raised, and my view of the stupidity surrounding agreements like this one. Suffice it to say, no one shall be spared the rod. SCRS states that insurance carriers have continued to increase pressure over repair shops to obtain the quickest and cheapest repair. Does that really sound like a bad thing? Anyone operating a for-profit business should be doing the exact same thing. Don’t body shop owners pressure their staff and technicians to perform the quickest, most economical repair?
SCRS goes on to further state that to improve business conditions, body shops need to find their voice. I have a suggestion. You don’t need to find your voice. You need to find something else that only males have. I would suggest letting your actions dictate what your voice and mind are saying. If it’s not good business, don’t sign the agreement. Don’t fax, mail or e-mail a response. Silence can be deafening. I would argue that it must not be too bad or else people wouldn’t do it. The trade-offs are apparently worth it to thousands of shops. That doesn’t make one shop better or worse than the other. It simply means that one man’s trash is another man’s treasure. Would you sign that agreement if you had to give up an ownership stake in your business? Complain if you like but ultimately, you decide what you want for your business. Being a
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COD shop wouldn’t be worth giving up even a small portion of your business no matter how small of a percentage. To SCRS’ credit, I agree that there are quite a few undesirable items noted in their press release about the COD agreement. The “most favored customer” clause—which requires the shop to give Farmers the best pricing it offers any other insurer—is a stroke of genius. State Farm struck gold with this one a few years ago. Farmers is trying to ride State Farm’s coattails by including a similar requirement. I think this is a fair clause if you are State Farm and the largest insurance carrier in the United States. Why shouldn’t they expect to receive the best discount you offer? But it’s ridiculous that Farmers assumes they are entitled to the same discount structure. That’s similar to Kohl’s or Sears demanding the same discount structure from their vendors that Wal-Mart receives. You shouldn’t throw around your weight where it doesn’t belong. Clearly, Farmers is leveraging the industry’s inability to unite. Remember that in any relationship, power is given. Body shops have
given insurers the power to make demands. Shops have given insurers the puppet-strings. I’m laughing inside because most of you don’t realize you have the power to change it. If you’ve ever seen ‘The Wizard of Oz,” you know Dorothy had the power to return home any time she wanted. I’m not suggesting you simply need to click your heels and recite, “There’s no place like home,” but it is almost that easy. Obviously, you don’t have any strings attached to you. You aren’t a puppet. You don’t have to jump when the puppet-master pulls your strings. The sooner you realize it, the quicker that ridiculous direct repair agreements become a thing of the past. What makes Farmer’s “most favored customer” clause unique is the requirement that once a quarter you provide a written, I-swear-on-mylife, cross-my-heart-and-hope-to-die statement that you are in compliance with the terms of that provision. Give me a break! I think Farmers would be better served if it took the money it will spend to receive, document and follow-up with their COD shops on this and donate it to a char-
ity instead. It would get more press and accomplish more. Body shops aren’t criminals on parole requiring a weekly or monthly check to ensure they aren’t breaking the law. Farmers should remove this portion of the requirement if for no other reason to show that they trust their COD partners. What happened to the good ol’ days when a man’s word and a handshake was all that was needed? I miss John Wayne and those days. For more information, here is a link to the Farmer’s COD Agreement; http://autoepi.org/uploads/Farmers_COD_Agreement_-_2011.pdf__Adobe_Acrobat_Pro.pdf Also visit: http://www.scrs.com/pdf-news/PR%206-202011%20SCRS%20Releases%20DRP%20 Agreement%20Guidelines%20%20FINAL.pdf for SCRS’s press release about the agreement. The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
Detroit 3 Meet with UAW on Feds New CAFE Standard
Reps from all three Detroit automakers met with the United Auto Workers July 12 to discuss the higher federal fuel-economy standards being proposed by the Obama administration. This was the latest in a series of regular meetings between GM, Ford,. and Chrysler and UAW President Bob King on the issue. The White House is weighing an increase of the Corporate Average Fuel Economy, or CAFE, standards from the current target of 35.5 mpg by 2016 to 56 mpg by 2025. The standards apply to both cars and light trucks. Automakers are lobbying against the stricter standards. The union is also concerned about the impact the increase would have on its members, because they would likely force an even more dramatic shift away from trucks and sport utility vehicles to small cars than the one already under way. A recent poll of 800 likely voters in Michigan found that 78 percent favor higher federal fuel-economy standards.
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Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Hey Toby!
Are Your Repair Methods Ten Years Out of Date? with Toby Chess
The other day I received a report form What was written in the introduction Aaron Schulenberg, the Executive of the study is what I and others have Director of the Society of Collision been preaching for years. Repair Specialists, about a study done “The new materials mean that in Germany on collision repairs. body shops must continuously ensure that they are conversant with the reCrash-test results and analysis of the quirements for new tools, procedures impact of a non-professional repair on and information about the repair the performancewith of the David side structure McClune of a car (VW Passat) by KTI GmbH& processes. New welding machines need to be used, training is required, Co. of Lohfelden, Germany. The study took a late model VW and OEM information has to be acPassat, with ultra high strength steel recessed to make sure that the correct reinforcements in the rocker and “B” pilpair methods will be applied. Without lar, conducted a side impact at about this knowledge it is likely that an inad30mph, detailed all the damage, and equate repair will be the result, potenrebuilt the vehicle using used parts, tially placing the car and its occupants MIG welds, and an older Squeeze at much higher risk in a later crash.” Type Resistance Welder. They did not “In parallel to the introduction of use any OEM with currentJohn replacement new Yoswick materials, single component parts data, but they utilized common acof earlier vehicles have been replaced cepted repair methods used in the colby highly integrated, multi-material lision industry. They referred to those components on more recently designed in the article as “10-year old repair cars. The production of a modern methods.” Body-in-White is characterized by
complex manufacturing processes and bonding techniques. Taken together, the technical progress made by the OEM’s has resulted in corresponding new challenges for the repair shops. Repair shops must ensure they have well trained staff and are equipped with appropriate tools to cope with the techniques needed for professional repairs on today’s cars when they are damaged in an accident. If such techniques and knowledge are not available, a nonprofessional repair may lead to a significant reduction in the safety and quality of these cars.” “Unprofessional repairs may result from of all or any of the following: ● Incorrect method and/or sequence of repair ● Poor assembly of correct/incorrect spare parts, components and sub-systems ● Fitment of low-quality spare parts, components and sub-systems
California Autobody Association
Year in Quotes
● Incorrect assembly and connection of electrical/electronic systems and sub-systems ● Absence of correct, special or custom tools ● Repair of damaged parts when actual replacement is necessary.” Let’s take a look at the study. I going to give you a condensed version for this article, but you may read the entire study at the SCRS website (www.scrs.com) or at autobodynews.com (see my column section). The following scenario, including two high-speed crash tests was carried out, and then analyzed: 1. The car was damaged by a side impact similar to an intrusion by the front of another car into the passenger side of the test vehicle, according to the side-impact tests of Euro NCAP. 2. A repair was carried out as if done in a car body shop or garage with no information about the correct way
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to repair this particular car and without the correct tools or welding machines. The repair conforms to a typical standard carried out about 10 years (two car generations) ago. This would be considered as a non-professional repair by today’s standards. 3. After the repair, this vehicle was involved in a follow-up crash simulation in the same configuration i.e., a side impact on the repaired passenger side, at the same speed. The picture below shows the set up of the side impact test.
“After the side impact the car was severely damaged on the passenger side, as intended. The sill and the floor/undercarriage behind it were particularly distorted. Additionally, the doors and the B-pillar were considerably damaged. There was no damage
to the screen pillar or windscreen glass. The pyrotechnic protection/restraint systems (Front and rear passenger side airbags, front passenger belt pre-tensioner and passenger side curtain airbag) were correctly deployed. Overall the car body structure deformed and behaved as expected. As well as the visual analysis, electronic measurement of the car body was carried out. This showed the maximum intrusion to be 161 mm.” The vehicle was repaired after the test and these were the procedures followed:”
NON-PROFESSIONAL REPAIR The damaged car was repaired with an older spot welding machine with fixed pressure and 6.4 kA maximum current. Note: It is recommended that an Inverter type welding machine is used with 10 kA maximum current and a variable pressure (maximum 10 bar) to join the high strength steel safely. The deformed inner sill, made from ultra high strength steel, was re-shaped and partially replaced on a bench then refitted using a MAG welding process. Note: The “Professional” repair would include complete renewal of the
B-Pillar and other deformed structures with components made from high strength steel. A partial repair of such steels is not acceptable, as the structure and therefore the strength of the material will be severely degraded while welding and reforming.” “After the vehicle was repaired,
MIG Welding instead of Spot welding
Sectioning instead of full panel replacement
the vehicle was crashed again and all the noted areas in the first crash were compared with the second crash. It was immediately evident that there was a substantial difference, with far more comprehensive deformation of the car body after the second impact. The B-pillar had noticeably higher intrusion into the passenger compartment in comparison with the first crash, especially at the lower part at the connection with the sill. Note: Later measurements of the car body confirmed there was 60mm more intrusion after the second test, compared to the first crash. Other differences were noticeable at the cant rail/roof and the transmission tunnel which both displayed severe deformation not seen in the first crash. It seems that the load paths were quite different in the second crash. It was also noted that the top right corner of the windscreen was damaged in the second crash, further indication of changed load paths. These comparisons made it evident that a change of load paths and therefore of the energy dissipation was due to the unprofessional repair. The pyrotechnic protection/restraint systems See Ten Years Old?, Page 34
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arm. This is the reason that by the year 2013, all vehicles sold in the US will have side curtain air bags. Note the great amount of damage
Continued from Page 33
Ten Years Old?
(Front and rear passenger side airbags and the front passenger belt pre-tensioner) were correctly deployed but the passenger side curtain airbag failed to operate.� To make clear the differences be-
Crash Test 1
Crash Test 2
Crash Test 1
tween the two tests, we compared photographs, sequences of high speed crash-movies and electronic measurement of the car body. With the help of the time analysis in the high-speed crash-movies we can for instance compare the time of highest intrusion. The analysis clearly shows higher intrusion at the same moment in time in the second crash test. Note that the side curtain de-
Crash Test 1
ployed in the first crash test, but failed in the second one. I have video showing the effectiveness of side curtains on vehicle occupant safety. In the first 2009 Prius, the side curtain was deployed and measurements of the crash dummies were taken. The result was minor injury to the front and rear pas-
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Crash Test 2
sengers. In the second scenario, the side curtains was disabled and another side crash test was conducted at 35 mph. The result was horrific. The driver’s head was struck by the crashing barrier, which would result in a death. The rear dummy sustained major injuries to the neck, shoulder and left
Crash Test 2
to the rocker and B-pillar in the second crash test. This is very evident by the next set of pictures showing the damage to the passenger seat in the second
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crash test. “After removing all the seats and
As I stated in the beginning of the
Crash Test 1
Crash Test 2
necessary trim, the deformation of the transmission tunnel after the second test was clear to see. The cross-member which supported the front seat had pushed into the transmission tunnel, distorting it severely. In comparison, there were no measurable changes at the transmission tunnel during the first attempt.”
article, the complete test results can be found at the web sites. I strongly urge you (repair owners and managers) to print out the OEM’s recommended repair procedures and give them to your techs and estimators. The liability is too high not to follow OEM procedures. Think about the safety of your customers and what it may mean in a second collision. Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!
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Houston Auto Body Association Holds June Members Meeting, Hosts Chuck Sulkala The Houston Auto Body Association (HABA) held their monthly members meeting on June 28th at the UTI (Universal Technical Institute) in Houston at 7:00 pm. The group of about 35 attendees discussed two main topics at the meeting; the bulletin recently sent out by Texas Insurance Commissioner Mike Geeslin and a presentation by ICAR’s Chuck Sulkala concerning changes to the I-CAR program. Insurance Commissioner Mike Geeslin’s June 20 bulletin warning auto insurers that some claims settlement practices may be in violation of Texas law was the subject of much discussion. Geeslin’s bulletin said that reports of steering, limiting labor/reimbursement rates, and other potential unfair claim settlement practices continue to be received by his department. See adjacent story. I-CAR and the Houston I-CAR Committee hosted a special presentation on June 29 on I-Car’s new Professional Development Program with guest speaker Chuck Sulkala, Exec-
utive Director of the National Auto Body Council and former Chairman of I-CAR. Since I-CAR’s new program was announced in July of 2010, many questions have been raised regarding the new curriculum and the challenges that it presents to the industry. Doug Schlueter, I-CAR South Central Regional Manager, was also be on hand at the Chuck Sulkala presentation to answer any questions regarding I-CAR’s new training curriculum. For more information please visit www.habaonline.org.
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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 35
Devil in the Details: Measuring Metrics Properly by Greg Horn, VP Industry Relations, Mitchell International
The Q2 2011 Mitchell Industry Trends Report (ITR) contained a feature I wrote about how repairable estimates can best be executed, “Are You Measuring Your Auto Insurance Claims Metrics Properly?” I argued (persuasively, I hope) that defined metrics and a clear plan can help make your business great, achieving measurably better auto insurance claims processing outcomes in the process. The key is to understand who your competitors are and if you can replicate their performance. Only then can you have an achievable performance improvement goal that allows you to focus on the person, part and process that can be improved. Determining what is great estimating performance, and whether this great performance can be replicated, requires a large sample size to allow for a statistically significant evaluation. In addition, the ability to drill down and segregate vehicles by type, age and country of origin as well as factoring in the geography of the repair estimates are all necessary in order to truly have an accurate comparison. Comparing your performance against the industry average by identifying the best performers isn’t a simple, mindless process, and nor is analyzing the data and setting performance benchmarks. Adding to the complexity is the constantly changing mix of vehicles coming through the repair process. As an example of how specific metrics need to be in order to be meaningful, consider this—there can be more than an hour difference in labor time in Removing and Replacing a used bumper assembly vs. overhauling an existing damaged bumper system. That hour difference can be important in an area with extremely high labor rates. To measure metrics properly, looking at the distribution of the claims by inspection type (sometimes called appraisal channel) can help you let the data help your business. It is quite revealing in terms of distribution of claims severity. Removing the lower dollar estimates alters the overall average paid severity (not sending independent appraisers out on small hits and relying on
claimants to fax in estimates for example), reducing repair vs. replace, paint hours metrics and part use when comparing estimates to appraisal channels that routinely see those smaller hits. Similarly, Direct Repair average paid severity is actually a measure of the completed repair orders and not the average of an appraisal written by a staff appraiser. Why is that? Because some claimants will make a claim and not repair the vehicle, so any hidden damage or price changes would not be reflected in these appraisal totals. Again, no easy task to ensure the data is as close as possible for comparison, and next up is measurement scale: do you want to measure your company performance against the average or the best in class? Both are advisable; measuring merely against the industry average only provides a comparison to the middle, and not the best that can be achieved. Rather, you need to find where the best performers are in your given data subsets, those in the 75th percentile and above. Establishing a bestin-class goal that is achievable because it considers the types of businesses (standard vs. non-standard insurer, vehicle mix, etc.) you are indicating are your closest competitors along with other factors, such as geography, is a worthy goal – one that will help you meet your particular performance goals. All the data means something. The key is identifying what the data means to your business performance. And this brings us to the importance of understanding what to measure. Many industry measurements and metrics are somewhat flawed, and need to be revisited, or refined with a second measurement, in the name of proper measurement and dependable metrics. In addition, many best-inclass metrics are a moving target. There are multiple factors in flux that keep the definition of best performance ever-changing: Americans are moving towards smaller and more fuel-efficient cars, so the repair vs. replacement of panels performance metric will change. Smaller cars, thinner gauge metals, changing metallurgy, and the low cost of alternate parts will reduce repair opportunities. On the topic of changing metrics, currently we see OEMs and their price-matching programs having an
36 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com
interesting impact on market share assessments. OEMs’ price-matching programs help them sell more parts. But lowered OEM parts prices make it look as though OEMs are losing market share to aftermarket and used parts, at a faster rate than measuring the number of OEM parts specified on the average repair. In fact, today the percentage of alternate parts use on estimates is overstated when using the industry standard metric of ‘percentage of parts dollars’. When measuring the number of parts by part type, we see that used parts have remained fairly steady at a little under 1 part per estimate, and aftermarket parts at bit over 1 part per estimate. Looking at parts use in this way gives us another important measure of parts performance and provides better visibility into the performance metrics that matter to your business. The industry needs more complete picture of parts use. I suggest keeping the existing metric and industry standard and then for true insight, add the number of parts on the estimate by parts type. This approach
does go against the prevailing wisdom, but understanding the real metric here is important—because by supplying the majority of parts on a Repair Order, the OEMs are the pivotal parties of cycle time, and shops need to maintain good communication with all of their parts vendors and understand what is in stock and when the delivery will be made. Starting in the third quarter of 2011, the next Mitchell Industry Trends Report will include this new metric, in a bid to help tame the devil in the details and help the industry measure metrics properly. Statements and opinions expressed in this article are solely those of the author. They are not offered as and do not constitute legal advice or opinion of Mitchell International, Inc.
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I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
Thin-Film Technology Comes to Collision Repair If you were asked for a short descrippolymer resin-based, and a solventtion for anti-corrosion compound, the based cleaner. material that is sprayed onto the backside of panels and inside rails after reThin-Film Anti-Corrosion Compound pairs, it is likely that “thin film” and Most anti-corrosion compounds are “fine mist” would not be included in wax-based, and even though applied the wording. However, that is exactly as a fog spray, can quickly build up a the description given to a new type of heavy coating with the consistency of anti-corrosion compound now availhoney. The thin-film technology prodable that uses what is collectively ucts start out thin, and the resulting Lee Amaradio Jr. is thin. This allows the matecalled thin-film with technology. coating Thin-film technology products rial to not only coat the interior surare polymer resin-based, anything faces, but also wick out between the more descriptive than that is propri- welded flanges from the inside. There etary. They're a completely aerosol is a dedicated wand that fits onto the system being distributed by at least aerosol spray can nozzle with a 360° fan pattern tip on the other end (see Figure 2). Like other anti-corrosion compound systems, the wand is for inserting into existing holes or into rails to apply the material onto areas that cannot be easily reached.
the thin film penetrates between the flanges from the outside, wicking around the welds to replace the weld-
Amaradio Explains CRA
Consumer Callout
Figure 1 - The thin-film technology corrosion protection products are all aerosol
two product makers, Bonding Solutions with their Like90 Corrosion ProFigure 2 - The dedicated spray wand for the tection System, and Sherwin Williams anti-corrosion compound is stiff, but flexible to with their Shield Corrosion Protection allow a 360° spray pattern to reach all areas System (see Figure 1). of a cavity The two systems actually come from the same source that has its oriThe thin-film nature of the matewith industry. Dan Espersen gins in the aerospace The rial, combined with its creeping capasame material that's being recom- bility, allows applying it to joint edges mended for spraying inside rails and after welding. On panel applications panel cavities has been used for years where there are no cavities, such as a on aluminum welds and sealing welded radiator core support, the same joints on aircraft. Besides an anti-corcavity compound can be applied to the rosion compound, the line also in- outside of the joints (see Figure 3). cludes a weld-through primer, also Just like it does from the inside,
ALL OEM Information
Figure 3 - On welded joints, the anti-corrosion compound can be sprayed on the outside of the joint after welding to allow it to wick into the joint
through primer that burned away. Excess material is cleaned off with the solvent-based remover, since it is not a good base for painting. There are two anti-corrosion compounds in each system. With the Shield system, there is a clear and a black compound, both identical except for the color. With the Like90 system, there's a dry film compound for sealing the joints after welding. The compound for cavity protection is a wet film that's self healing, similar to conventional anti-corrosion compounds. Product specialists say it’s perfectly OK to apply more coats of the cavity compound inside cavities, and even apply another brand of conventional wax-based anti-corrosion compound over the thin-film technology product, but it's not necessary. Weldable Weld-Through Primer The thin-film technology weldthrough primer differs from other weld-through primers available in that it is not zinc- or copper-based, so it’s
not conductive. This allows the thinfilm technology weld-through primer to be welded through. Our experience showed no problems with porosity when welding GMA (MIG) plug welds without cleaning the material. The instructions say to apply a very light coating on both mating surfaces and wait ten minutes before welding. The primer is still tacky at that point. Any weld-through primer on surfaces that will be refinished is cleaned off with the solvent remover. Future Collision Repair Applications Thin-film technology is also being considered for spraybooth masking and liquid masking applications. Liquid masking was actually the first collision repair application for the technology some years ago. The new plans are to improve that product. The product makers are also showcasing the benefits of thinfilm technology to vehicle makers, though there are no specific recommendations or endorsements as of yet. Thin-film technology products are one of the new offerings for automotive corrosion protection. The polymer resin-based aerosols are being offered as a thin anti-corrosion compound and weld-through primer with some unique qualities. To learn more about different types of corrosion protection materials, repair considerations, and manufacturer processes attend I-CAR’s instructor-led (live) Corrosion Protection (CPS01) course. For information about the Advantage Online, please contact I-CAR at advantage@i-car.com.
KBB Says Honda & Toyota Challenged by Hyundai for Tops in Brand Loyalty, Hyundai Holds Top Spot for Latest Quarter of 2011
The Right Cause the No. 1 spot for an entire quarter.
No longer is either Honda or Toyota holding the No. 1 spot for brand loyMike website. Causey alty on Kelleywith Blue Book’s The top position is still in the possession of a foreign automaker, but Hyundai ousted these traditional mainstays to take headline spot for the second quarter of this year on Kbb.com. Furthermore, site officials mentioned Hyundai not only secured the leading spot in loyalty in February of last year, but Monday’s discovery also marks the first time since Kbb.com began tracking this data that Hyundai has held
Kelley Blue Book believes shoppers’ loyalty to their respective brands has waned during the past year for the majority of nameplates due to the economic downturn and consumers becoming much more aware of issues such as fuel prices, safety recalls, available vehicle options and additional models within their intended price points. While many of the industry's top players have found themselves struggling to retain customers, analysts contend Hyundai has “blazed a new trail”
and preserved its loyal consumer base. They attribute the driving factors behind this retention have been aggressive marketing campaigns combined with innovative product redesigns like the highly successful 2011 Sonata and 2011 Elantra. For the second quarter of this year, KBB determined Hyundai's brand loyalty was at 52.3 percent with Honda following at 49.7 percent and Toyota sliding in third at 47.7 percent. Rounding out the top five for the quarter were Ford in the fourth spot at 45.4 percent and Subaru in fifth at 44.8 percent.
Automaker Actions and Announcements with Janet Chaney
In a time when most brands are losing loyalty, Kelley Blue Book said it’s notable that fellow Korean automaker Kia also is bucking the trend. Analysts found Kia is one of only two brands that are up in brand loyalty yearover-year with the other being Mini. KBB thinks both Kia and Mini are succeeding in retaining loyalty for reasons similar to Hyundai with a combined result of attractive redesigns, additional models within their respective lineups and aggressive marketing campaigns.
www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 37
for Allstate and your facility... as you continue to deliver priority service to our mutual customers. “It goes without saying, that the quicker you reach out to the customer, the sooner they know, they’re in our good hands. I also want to remind you of four key messages and process changes to the network program in early 2011. “Compliance with these items remains a core requirement for your partic-
Continued from Page 1
Allstate Process
form of a video released by the company featuring Tracy Tramm, Allstate Claim Service Manager for the Good Hands® Repair Network. In the video directed at the DRP shops, Tramm says “As you know, reducing auto cycle time is a key component in improving customer satisfaction
Allstate Shakes Up President’s Position, Shares Drop on the News Joseph P. Lacher Jr., president of Allstate Protection, is leaving effective immediately, Allstate Corp. announced July 18. Shares dropped significantly (@5%) on the news. Various presidents as well as claims and product operations executives of the various Allstate Protection units will report directly to Thomas J. Wilson, Allstate’s chief executive. Lacher, who led all of Allstate’s property and casualty offerings as president of Allstate Protection, no longer appears on a list of executives on Allstate’s website. Lacher joined Allstate in November 2009 after having worked at Travelers for more than a decade, eventually becoming chief executive officer of Personal Insurance and executive vice president at the competing insurance firm. At Allstate, Lacher succeeded George Ruebenson, an executive who retired after almost 40 years.
Last month, at an investor conference, Lacher outlined a business plan to grow Allstate’s P&C segments with a new distribution model. The National Association of Professional Allstate Agents did not look upon the plan favorably. Lacher told investors Allstate will be increasing homeowners’ rates and tightening underwriting standards in an effort to achieve a combine ratio in the low 60s, excluding catastrophes, by 2013. In auto, Lacher said Allstate is primarily concentrating on New York and Florida, which account for 20 percent of the carrier’s business. Allstate plans to buy online auto insurer Esurance and independent insurance agency Answer Financial from White Mountains Insurance Group Ltd. for about $1 billion. The transaction is supposed to close this fall.
ipation in Allstate’s direct repair program. “First and foremost, your shop will give priority service to Allstate customers having their vehicles repaired by you. Estimates must be completed and uploaded within 24 hours of your receipt of the vehicle. Third, your facility will be required to commit to a guaranteed completion date for all vehicles repaired under the Network program. Your shop will be responsible for any and all costs
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VW Sales Up 35% in U.S., Could Top 300,000 Units This Year
Sales for the first six months of 2011 are up 22% in the U.S and Volkswagen of America forecasts 2011 sales will break 300,000 units—a threshold not seen since 2003. VW sold 256,830 vehicles last year in the U.S. In 2003, VW sold 302,686 units. www.autobodynews.com “We’ve been able achieve a volume in the first of this year in what CHECK IThalf OUT! took us effectively seven months last year,” Jonathan Browning, CEO of Volkswagen of America, said in a statement. “With Volkswagen’s broad range of fuel-efficient, high-quality vehicles, we expect the momentum to continue into the second-half of the To advertise year.” call Advertising VolkswagenSales said it at: sold 28,444 vehicles in June 2011, a 35 percent in800-699-8251 crease over June 2010. e-mail: Sales through June were 154,152, advertising@autobodynews.com compared with 126,012 a year earlier. Browning said June was VW’s www.autobodynews.com best month in nine years, despite the run-out of the Passat sedan and the
Beetle compact car. June sales were led by the redesigned Jetta, which was up 88 percent in us Juneyour and 66opinion percent foron the first Give matters affecting the six months. Browning estimated that shortages at Japanese competitors because of the March 11 Japan earthquake will publisher@autobodynews.com give VW about 10,000 additional Jetta sales in 2011.
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caused by a failure to meet the guaranteed completion date. And finally, at the customer’s reasonable request, your shop will provide extended hours of operation. Contact your local performance manager to answer questions. You are why it works. Thank you.” The video can be viewed at www.autobodynews.com by searching this story under the “Insurer Actions and Announcements” section.
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