Southwest Edition Texas Oklahoma Louisiana New Mexico
30
YEARS
VOL. 30 ISSUE 8 AUGUST 2012
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Mike Causey Wins Republican Nomination for North Carolina Insurance Commissioner Mike Causey, a former Autobody News columnist, advocate and lobbyist for auto body associations in the Southeast, has earned the Republican nomination for North Carolina Insurance Commissioner. Causey ran for the office previously and once served as the Director of Government Affairs for the Independent Auto Body Association (IABA). He was a registered lobbyist in North Carolina for the IABA, the North Carolina Autobody and Glass Association, and the Automotive Service Association of North Carolina. He defeated Richard Morgan in
a July 17 runoff election for the nomination, earning 57 percent of the vote. Causey ran as the Republican nominee against former Democratic Insurance Commissioner Jim Long in 2000. He was defeated when Long captured 57 percent of the vote. In a newspaper interview with the Beaufort Observer in January of this year, Causey said, “One of the main reasons I’m running is that I want to help people who are having problems with insurance companies.” Causey has a website to support his campaign: www.gocausey.com. See his columns at autobodynews.com.
Continuing its rapid expansion, Caliber Collision Centers announced July 20 the acquisition of three new centers in the Oklahoma City area. “Caliber Collision is proud to announce our entry into a new, contiguous market with the acquisition of three new locations in Oklahoma,” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “Our clients continue to request that Caliber expand into new markets like Oklahoma to aid them in delivering greater customer service with the operational consistency they require in today’s competitive insurance market.”
Caliber Collision’s newly acquired 7,000 square foot collision repair facility in northwest Oklahoma City opened for business July 23 at 8020 NW Expressway, Oklahoma City, OK 73162. Caliber Collision’s newly acquired 10,500 square foot facility in Midwest City, Oklahoma will also open for business July 23 at 751 W. Curtis Drive, Midwest City, OK 73110. The newly acquired Edmond location is currently being renovated and is scheduled to open in late October at 3501 South Broadway Extension, Edmond, OK 73013. “Our new Oklahoma locations rep-
Caliber Collision Expands into Oklahoma with Three New Shops in Metro Oklahoma City
See Caliber Collision, Page 33
State Farm and PartsTrader Defend Parts Program, Questioned about Benefits to Shops by John Yoswick
Perhaps the most interesting question at the latest Collision Industry Conference (CIC) came at the end of a 2-hour discussion regarding PartsTrader, the electronic parts ordering system State Farm is requiring its Select Service shops in four markets to use (see related cover story). Denise Caspersen, the collision division manager for the Automotive Service Association (ASA), asked State Farm’s George Avery the same question the association first posed to the insurer formally five weeks earlier in a press release, namely, what benefit, financially or operationally, does required use of PartsTrader offer shops? “If State Farm is not able to
George Avery
clearly demonstrate the benefits of this pilot application to the repair community, then this application should not move forward,” ASA’s June 12
press release stated. While Avery skillfully addressed most of the questions and comments about PartsTrader during the CIC meeting in San Antonio, Texas, he acknowledged State Farm did not yet have an answer for Caspersen as the insurer is still evaluating feedback recently obtained from the 158 shops in the pilot program. See PartsTrader Defends, Page 43
PartsTrader Coverage Continues from Cover Stories See additional coverage of PartsTrader on pages 18, 19, 20 & 39
PartsTrader Draws Blistering Reaction at CIC, Shop Owners Line Up to Comment in Person by Autobody News Staff
A capacity crowd of more than 400 heard State Farm Claims Consultant George Avery and PartsTrader CEO Rob Cooper give an overview of the very controversial parts procurement system at the CIC in San Antonio. Avery, who is also the incoming Chairman of the CIC starting in January, has endured some harsh criticism since the details of the PartsTrader program were first announced. Avery and Cooper outlined the program for the few unaware of it, and explained State Farm foresees shops ordering all their parts (recycled, aftermarket and OEM) from a single provider, PartsTrader. Avery attempted some comic relief by joking that he had a button
made up saying, “I Love My Job, I Love My Job, I Love My Job,” but questions and comments from approximately 20 members of the audience made it clear that while Rob Cooper electronic parts ordering was understood and largely positive, there was significant apprehension about insurance companies intervening and/or controlling the process. Avery said misinformation about the program is widespread, and much of the concern is based on speculation and rumors from individuals who have not tried the product. See PartsTrader Pushback, Page 41
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COLUMNISTS Attanasio - Collision Repair is an Art Form at Uptown Body & Fender . . . . . . . . . . 32 Franklin - Capturing the Tough Ones . . . . . 34 Hey Toby! - Matrix Wand is a Game Changer— Part 2 . . . . . . . . . . . . . . . . . . . . . . . . . 38 Insider - With Estimates, Insurers See the Emperor’s Underwear . . . . . . . . . . . . . 46 Weaver - Problem on the IN-Side . . . . . . . 27 Yoswick - Non-OEM Parts Industry Meets to Discuss Patent Law Change. . . . . . . 30
NATIONAL ABRA Rewards 8 Students with CREF Tool Grants . . . . . . . . . . . . . . . . . . . . . 10 Adelmann Elected to CAPA Board. . . . . . . . 7 Advanced Car Technology Reduces Frequency of Crashes Says Study. . . . . . . . . . . . . 23 AkzoNobel’s Wanda Brand’s 2nd “Blue Suede Cruise” Event . . . . . . . . . . . . . . . 7 Brunori Elected to CREF Board. . . . . . . . . 12 CARSTAR Washed 1,000 Cars for Make-A-Wish. . . . . . . . . . . . . . . . . . . . 33 Charley Hutton Appears at PPG Show Truck Events . . . . . . . . . . . . . . . . . . . . 33 Clark Plucinski Named CREF Executive Director . . . . . . . . . . . . . . . . . . . . . . . 10 Former Rhode Island Auto Body Shop Owner Wins $3.27 Million Verdict Against Insurers. 42 Gunder Files Multiple Lawsuits for Short-Pays . . . . . . . . . . . . . . . . . . . . . . 3 NABC Needs Seven Directors. . . . . . . . . . 10 NHTSA Publishes Changes to Safety Guidelines . . . . . . . . . . . . . . . . . . . . . . 12 Part 2: Western Schools Prep the Future of Collision Repair . . . . . . . . . . . . . . . . 40 Rhode Island Gov. Chafee Vetoes Auto Body Bill for Insurers . . . . . . . . . . 28 SCRS Welcomes Matrix Electronic Measuring, Inc. . . . . . . . . . . . . . . . . . . 37 SCRS Says PartsTrader Has Sparked Four New Industry Associations: UT, ID, AL, TX. . . . . . . . . . . . . . . . . . . . 20 Service, Diagnostic and Mechanical News . 26 Supreme Court Won’t Hear Appeal on Kia Brakes Suit . . . . . . . . . . . . . . . . . . . . . 23 Win a Trip to SEMA as a Garmat Sharp Shooter . . . . . . . . . . . . . . . . . . . 10 WMABA Labor Rate Survey Complete . . . 39 Women’s Industry Network Launches New Website . . . . . . . . . . . . . . . . . . . . 34 YouTube is a Valuable Sales Tool for Body Shops. . . . . . . . . . . . . . . . . . . . . 36
Ray Gunder of Gunder’s Auto Center in Lakeland, FL, on behalf of his company’s customers, has filed multiple individual lawsuits against several insurers for their short pays of fair and reasonable charges. Gunder instructed his company’s legal counsel, Brent Geohagan, to file four separate lawsuits seeking recovery of the costs for various services and materials provided to his customers of which several insurers failed or refused to provide ample consideration. In each instance, the individual customer has authorized Ray Gunder to act in their behalf to seek recovery of the underpayments that each know are their personal financial obligation. They are as follows: Ms. Debra Koons: 2001 Suburban; Labor Rate Difference between $48.00 and $42.00 tendered by GEICO for a total demand of $231.50. Ms. Vivian Pierce: 2004 BMW X5: Feather-Prime and Block and related materials, and labor rate difference ($48.00 vs. $42.00) for $263.54 which State Farm failed to pay her. Ms. Juanita Langley: 07 Jeep Grand Cherokee; $2184.48 (23 different issues) plus car rental short-pay $87.09 of which Infinity Insurance
PartsTrader Coverage ASA-Michigan Members and Vendors Discuss State Farm’s PartsTrader Pilot Program . . 18 Industry Leaders Discuss State Farm’s Pilot Parts Program . . . . . . . . . . . . . . . 19 PartsTrader Announces 5-Year Deal with ‘One of the Largest U.S. Auto Insurers’; Adds 3 New Leaders . . . . . . . . . . . . . . 18 PartsTrader Draws Blistering Reaction at CIC, Shop Owners Line Up to Comment in Person . . . . . . . . . . . . . . . . . . . . . . . . 1 PartsTrader Forms Industry Advisory Council . . . . . . . . . . . . . . . . . . . . . . . . 39 State Farm and PartsTrader Defend Parts Program, Questioned about Benefits to Shops . . . . . . . . . . . . . . . . . . . . . . . . 1
Co. has failed to provide her. Ms. Lovenia Wiles: 098 Suzuki Impreza: The “Parts Return Fees” associated with the return of defective after-market parts in the amount of $237.54 of which Travelers Insurance refused to provide for. Mr. Hugh Coachman: 2010 Ford Explorer: The costs associated with Tint-color $48.00, Feather Prime and Block $63.00, PMC Logic P&M invoicing @ $479.93, color-sand & polish @ $52.80, and $364.80 in labor rate difference ($48.00 vs. $42.00) of which State Farm has refused to provide him. Ray Gunder stated, “It’s been a busy week or so for our attorney Brent Geohagan. While many insurers have paid such fees without so much as a whimper, I’m anxious to get these matters before a judge and jury to set a case precedence of which our customers can use in the future to be properly compensated. Hopefully these types of actions will not be necessary in the foreseeable future, but regardless, we’ll keep ‘Pounding the Rock’”!
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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Southwest
REGIONAL 2012 SkillsUSA Conference Held in June in Kansas City . . . . . . . . . . . . . . . . . . . . . 13 7 Time DUI Driver Hits Judge with Teens in Car . . . . . . . . . . . . . . . . . . . . . . . . . 12 AkzoNobel Hosts 2nd Annual Sustainability Event . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 America’s Top Auto Students Crowned at SkillsUSA Competition Held in Kansas City. 45 Auto Craft Collision Expands . . . . . . . . . . 12 Caliber Collision Acquires Boerne Mercedes Facility. . . . . . . . . . . . . . . . . . . . . . . . . . 6 Caliber Collision Expands into Oklahoma with Three New Shops in Metro Oklahoma City . . . . . . . . . . . . . . . . . . . . 1 CARSTAR Helps Student Auto Pros at SkillsUSA. . . . . . . . . . . . . . . . . . . . . . . 13 Custody of Carroll Shelby’s Body in Legal Limbo. . . . . . . . . . . . . . . . . . . . . . 7 English Color and Temple Color Join Forces. 6 Gerber Opens New Shop in FL . . . . . . . . . 12 Hail Storm Zeroes in on Car Lot, Denting 400 Vehicles . . . . . . . . . . . . . . . . . . . . . 4 Higher Rates for TX High Risk Car Insurance. 7 Hodges Collision Breaks Ground on Third Location . . . . . . . . . . . . . . . . . . . . . . . . 7 Houston Auto Body Association Presents to SCRS Board . . . . . . . . . . . . . . . . . . 20 LA Shop Gets Hit in Burglary Spree . . . . . 10 Mike Causey Wins Republican Nomination for North Carolina Insurance Commissioner . . . . . . . . . . . . . . . . . . . . 1 New Orleans Will Host 10th Annual Fix Auto Conference . . . . . . . . . . . . . . . . . . . . . 13 NWLCRA Meets August 7 . . . . . . . . . . . . 12 Rising Auto Theft Prompts ‘Watch Your Car’ Month . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Service King Acquires Bordelon Collision . . 6 Service King Collision Opens 49th Texas Location . . . . . . . . . . . . . . . . . . . . . . . 10 State Farm Donates Mazda to OK School . . 6 Texas Leads Hailstorm Damage, Costing $1.7 Billion . . . . . . . . . . . . . . . . . . . . . . 4 Texas’ Collision Repair Schools—No Lone Reason for Success. . . . . . . . . . . . . . . 14 TIAA Hosts SCRS Aaron Schulenberg at Meeting . . . . . . . . . . . . . . . . . . . . . . . . 45
Gunder Files Multiple Lawsuits for Short-Pays
Indexof Advertisers
Contents
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.
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Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Accudraft. . . . . . . . . . . . . . . . . . . . . 13 BMW Wholesale Parts Dealers . . . . 39 Chief Automotive. . . . . . . . . . . . . . . 23 Chevyland . . . . . . . . . . . . . . . . . . . . 32 Classic BMW . . . . . . . . . . . . . . . . . . . 6 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . . 2 Don Carlton Auto Group . . . . . . . . . 19 Equalizer Industries . . . . . . . . . . . . 27 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 29 Fowler I-240 Chrysler-Jeep-Dodge. 15 Garmat USA . . . . . . . . . . . . . . . . . . 28 Gene Messer Hyundai . . . . . . . . . . 16 GM Wholesale Parts Dealers . . . . . 38 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Hyundai Plano . . . . . . . . . 14 Hyundai Wholesale Parts Dealers . 37 Kia Motors Wholesale Parts Dealers. 31 Killer Tools . . . . . . . . . . . . . . . . . . . . . 4 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Malco. . . . . . . . . . . . . . . . . . . . . . . . 11
Mazda Wholesale Parts Dealers . . . 44 Mercedes-Benz of Oklahoma City . 20 Mike Calvert Toyota. . . . . . . . . . . . . 33 Mitsubishi Wholesale Parts Dealers. 43 MOPAR Wholesale Parts Dealers . . 21 NACE Trade Show . . . . . . . . . . . . . 17 North Freeway Hyundai . . . . . . . . . 35 OE Reman. . . . . . . . . . . . . . . . . . . . 22 Ray Huffines Chevrolet . . . . . . . . . . . 5 Reliable Automotive Equipment . . . . 7 Reliable Chevrolet. . . . . . . . . . . . . . 34 Replica Plastics. . . . . . . . . . . . . . . . 35 Safety Regulations Strategies. . . . . 33 Scoggin-Dickey Buick . . . . . . . . . . 12 SEMA Trade Show . . . . . . . . . . . . . . 8 Solution Finish . . . . . . . . . . . . . . . . 42 South Pointe Chrysler-Jeep-Dodge. . 9 Toyota of Fort Worth . . . . . . . . . . . . 30 Toyota of Laredo . . . . . . . . . . . . . . . 18 Toyota Wholesale Parts Dealers . . . 40 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36 Volvo Wholesale Parts Dealers . . . . 45 Young Chevrolet . . . . . . . . . . . . . . . 10
www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 3
AkzoNobel Hosts 2nd Annual Sustainability Event
AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) hosted the second annual Sustainability Leadership Symposium July 20 at the Hyatt Regency in San Antonio, Texas. The 2012 Sustainability Leadership Symposium followed a highly successful inaugural launch in 2011, wherein collision repair professionals representing key influencing sectors of the industry were invited to take part in a candid brainstorming discussion about their role in advancing and leading sustainable business practices that would help establish an industry-wide model. “We were more than encouraged last year to hear the level of concern, commitment and contribution that key industry leaders are willing to embrace toward making collision repair a more sustainable industry,” said AkzoNobel’s Mike Shesterkin, Director of Sustainability and New Business Innovations for A&AC Americas. “This year’s symposium included an even wider circle of professionals.” Shesterkin said discussions included how to identify actions to lead to a triple bottom line – people, planet and profit - value creation. Deborah M. Steketee, Ph.D., associate professor of sustainable business and executive director for the
Texas Leads Hailstorm Damage, Costing $1.7 Billion
Hailstorms cost U.S. insurers at least $1.7 billion in June, led by damage in Texas where vehicles were pummeled while stuck on the Dallas Central Expressway during an evening rush hour. The number of claims from the Texas storm has surpassed 100,000 and insured losses will exceed $1 billion, Aon Plc (AON) said in its June Global Catastrophe Recap. A separate hail event in Colorado and Wyoming caused more than $700 million in insured losses, according to the report from the London-based broker. “Damage occurred to a high volume of car windshields, roofs, golf courses, the marquee of the landmark Lakewood Theater and glass artwork at the Dallas Arboretum,” the Aon report said. Insured losses in April were almost $1 billion, including damage from tornadoes in Texas and Kansas, the broker said in a report. The costliest U.S. storm in May struck Oklahoma and caused about $400 million of losses in the state, Aon said. Costs from disasters reached $20.3 billion in 2011, one of the most expensive years on record.
Center of Sustainability at Aquinas College in Grand Rapids, Mich., moderated the symposium. Panelists included: •Lee Broughton – Enterprise Holdings, St. Louis, Mo. •Susanna Gotsch – CCC Information Services, Chicago, Ill. •Randy Hanson – Allstate, Chicago, Ill. •Michael LeVasseur – Keenan’s Auto Body, Clifton Heights, N.J. •Mary Mahoney – Enterprise Holdings, Inc., St. Louis, Mo. •Tom Melcher – dmStrategists, Grand Rapids, Mich. •Diana Rivenburgh – Strategic Imperatives, Atlanta, Ga. •Deborah Steketee, Ph.D. – Center for Sustainability at Aquinas College, Grand Rapids, Mich. •Carl Vincenti – Oka’s Auto Body, Waipahu, Hawaii. The Sustainable Leadership Symposium was preceded by AkzoNobel’s 2012 FIT Sustainability and Most Influential Women (MIW) Awards banquet held July 19. The “FIT” Award is the collision repair industry’s first recognition program dedicated to honoring corporate commitment, participation and leadership in advancing sustainability through three key areas — Focus, Innovation and Talent.
Hail Storm Zeroes in on Car Lot, Denting 400 Vehicles
Red River Chevrolet in Bossier City, LA has lots of hail damaged cars for sale after a June storm brought golf ball-sized hail that hit half of the dealership’s inventory. Dealership owner George Fritze estimated the hail pounded about $2,000 worth of damage into at least 400 cars on both their new and used lots. “It’s quite sizable.” “We had a hail storm that ‘centered’ on our dealership here,” Fritze said, adding that the damaged cars will be available for sale at a discount. “If a consumer doesn’t care about a few hail dents, they can save that much money on a new Chevrolet. And if they want to get them fixed, we’ve got our body shop here and we also have a team from out of town that’s in helping to knock out the dents with paintless dent repair.” Some customers, he said, are opting for partial repairs that remove the dents only where they’re visible. Repaired vehicles will also be returned to the lot for sale. “Being in this area of the country, we are susceptible to having hail storms from time to time. You could say disaster has struck again.”
4 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
Rising Auto Theft Prompts ‘Watch Your Car’ Month
During July, Texans observed an official “Watch Your Car” month. State officials encouraged citizens to use common sense to protect themselves from becoming a victim. The new statewide campaign was launched by the Auto Burglary and Theft Prevention Authority (ABTPA) to educate and equip Texas drivers. The ‘Think Like a Thief’ campaign launched during July. Auto thefts tend to spike during July and August. Although respondents to a recent poll indicated they were more concerned about identity theft and residential burglaries, statistics show that they are 123% more likely to become a victim of auto crime, according to the ABTPA. “Auto crime occurs every two minutes in Texas, and the Auto Burglary and Theft Prevention Authority is committed to helping drivers reduce the likelihood they will become a victim,” said Charles Caldwell, ABTPA director. Some of the common misperceptions regarding auto crime, according to the recent poll, include that most people view such offenses as an individual crime of opportunity, although statistics show it is most often an organized group effort. Also, 58% of poll respondents mistakenly stated
that auto crime most often occurs overnight. Some important insights about auto crime include: • Because of the heat, Texas drivers are more likely to leave vehicles running during the summer when making quick stops. However, vehicles can be stolen in as little as 15 seconds. • Auto criminals often work in pairs or groups, with a lookout who notifies team members when cars are left running, unlocked or with valuables in plain sight. • No driver is immune to auto crime. Drivers are vulnerable to auto crime no matter where they live, work, shop or socialize. • Hiding valuables, locking the car and taking the keys are the basic steps all drivers can easily follow in order to avoid to becoming a victim. • Auto crime often occurs during the day in large parking lots of popular public venues. • Auto crime is a gateway crime, often leading to other crimes such as home burglary, insurance fraud, identity theft, drug smuggling, robbery, terrorism and gang-related crimes. Since its inception in 1991, the ABTPA has funded and managed more than 500 grants, helping reduce motor vehicle theft by 70 percent.
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English Color and Temple Color Join Forces
English Color and Supply says it is excited to team up with Temple Color Company, Ltd. in Temple, Texas. In the mid 1940s, two men, two hundred miles apart, entered the automotive industry selling batteries. It didn’t take long to convince either one of them that a pint of paint was not as heavy as a 6-volt battery. As they worked hard and became successful, their paths crossed, and they became good friends. In 1950, one of them, Elmo Hobbs, started Temple Color Company in Temple, Texas. His sons, Ken and Dave, joined him in the early 1970s. In 1975, Mike Kerlin joined the family business. Today, Temple Color Company joins the other man’s company, English Color and Supply. Together they bring 118 years of combined automotive refinish experience to the English family. English Color and Supply looks forward to continued successes for our customers, employees and suppliers.
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Service King Acquires Bordelon Collision
Service King Collision Repair Centers has purchased Bordelon Collision, which serves the northern San Antonio area in Texas. “We are very excited to join the Service King team,” said Max Bordelon, owner of Bordelon Collision. “I’m confident that Service King will take care of our employees and customers for years to come.” This is the ninth new collision center that Service King has purchased in the San Antonio market. The multi-shop operator has 49 collision centers throughout Texas, and has plans to acquire nine collision centers in Arizona this summer, according to a news release. “Texas continues to be a growing and thriving collision repair market, and we are proud to be the largest and fastest-growing independent multi-shop operator in the country,” said Cathy Bonner, CEO of Service King.
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Caliber Collision Acquires Boerne Mercedes Facility
Caliber Collision Centers announced July 9 that it has acquired the Boerne Mercedes body shop, an 18,000 square foot facility at 31445 W Interstate 10, Boerne, Texas. “Today’s opening in Boerne, Texas brings our total number of locations in the San Antonio area to 11 as we continue to execute our 2012 growth plans,” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “The addition of this new center improves Caliber Collision capacity across the San Antonio market as we continue to provide our insurance clients the customer focus, operational consistency and cost management they require in today’s competitive insurance market.” “Our newest San Antonio location provides yet another example of how we continue to grow across the Texas market as the collision repair provider of choice,” added Mark Sanders, Chief Operating Officer for Caliber Collision Centers. “Today’s opening brings the total number Caliber Collision Centers to 107 locations to better serve the needs of our customers across California, Texas, Nevada, and Arizona.”
State Farm Donates Mazda to Oklahoma School
Students at Oklahoma State University Institute of Technology have a new car to help them learn about the different parts of a car, how they’re assembled and how to properly identify them, thanks to State Farm Insurance Company from Tulsa. The company donated a car to the program, a 2008 Mazda 3. Instructor John Pemberton said, “This will be used in the students’ second semester classes and it will be very educational for them to learn the exact functions of each piece of the vehicle. It will allow students to know more about how to repair and assemble a car.” Pemberton said Brad Blackim, State Farm Team Manager, donated the car to OSUIT’s program and it is one of several cars the company has donated in recent years. “Mr. Blackim has been a great partner to our automotive collision program by donating three cars for our students’ use over the years,” said Pemberton. “The benefit of the donations to the collision industry is that our students will be properly trained in disassembling, repairing and re-assembling damaged cars, then go out to work in industry as highly skilled technicians.”
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Custody of Carroll Shelby’s Body in Legal Limbo
Since his death, the body of automotive icon Carroll Shelby sits in a Dallas County morgue as his children and widow fight over its custody. Shelby’s son Patrick issued a public plea to his stepmother, Cleo Shelby, to release the body so it can be properly taken care of. Shelby’s children, Patrick, Michael and Sharon, are asking a Dallas court for an expedited hearing to clear up the issue. Patrick Shelby says his father, who died May 10, at age 89, didn’t succumb to heart problems, contrary to popular reports. “I was with him when he died. He had been unconscious for three days,” Patrick said. “He started getting sick last fall. His organs were in very good shape. What happened is his ability to swallow left him.” Patrick says that while there have been several memorial services for his father, his family hasn’t had a proper service for their dad. Plans for a funeral at a local church in Leesburg, TX, and burial in the family plot are in limbo, he said. Patrick says Carroll signed a directive indicating he wanted to be cremated, with his remains split between his children and the family burial plot.
Higher Rates for Texas High Risk Car Insurance
Hodges Collision Breaks Ground on Third Location
Regulators announced in May that the Texas Automobile Insurance Plan Association (TAIPA), the state-run coverage program for high-risk motorists, would be increasing overall rates by 24.1 percent. The program offers private passenger auto policies for motorists who have been turned away by other insurers because of traffic violations or incidents on their driving record. Most of the increase is to bodily injury liability coverage, which increased by 31.9 percent overall. Overall rates for property damage liability coverage increased by 20 percent overall. The average base rate, depending on location, for a policy with minimum bodily injury and property damage liability is $578 under the new rate structure, with premiums varying between $289 and $2,459 depending on driver class and location. To qualify for TAIPA, the program requires a motorist to have been rejected by at least two other insurers. The program offers a maximum of $60,000 in bodily injury coverage per accident and $25,000 in property damage coverage. It also offers optional personal injury protection up to $2,500.
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Steve Guinn, owner of two Hodges Collision Centers, announced the company broke ground on their third location in Tomball, TX. The new Hodges Collision Center, located at 18711 Hwy. 249, will be the third location for the collision repair company. The 10,000-square-foot location will house an Enterprise Rent-A-Car business as well as insurance adjuster offices. It is scheduled to open in early 2013. “We are thrilled to be opening a location in the Tomball area,” said Guinn. “We’re excited to be contributing to the
economic growth in the area and begin serving new customers. Our team is definitely looking forward to living and working in the neighborhood and getting involved in the community.” Hodges Collision Center has two other South Montgomery County area locations at 130 Lane and 1002 Rayford Road. Hodges Collision Center is a new breed of independent body shops owned and operated by professionals who combine extensive automotive experience with successful methods of customer care and marketing borrowed from other service industries.
Adelmann Elected to CAPA Board
AkzoNobel’s Wanda Brand’s 2nd “Blue Suede Cruise” Event
CAPA has elected Tim Adelmann, executive vice president of business development at ABRA, Inc., to its board of directors. Adelmann was elected to the collision repairer position vacated by Mike West, who recently retired and closed his repair shop in Tukwila, WA. “Tim Adelmann is a long-standing and respected leader in the collision repair industry, and we’re excited to have him join CAPA’s efforts to insure that the market has truly high quality alternative parts,” said Jack Gillis, CAPA’s executive director.
AkzoNobel’s Wanda brand was the title sponsor of one of the largest Midwest street rod events of the year. “Blue Suede Cruise” took place July 20–22, 2012, at Summit Motorsports Park in Norwalk, OH. Thousands of car enthusiasts gathered at the 2012 Wanda Blue Suede Cruise event to view beautifully painted Hot Rods, Customs, Classics, Muscle Cars and Trick Trucks that were on display, along with concept and show cars painted in custom Wanda colors and finishes.
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LA Shop Gets Hit in Burglary Spree
A collision repair shop in Lake Charles, LA was one of many victims of a burglary spree by a young Texas man who started in his home state and was finally caught in Louisiana when he was stopped for a traffic violation. Kolby W. Quinn, 17, of Liberty, TX kept authorities busy on June 12. At approximately 3:30 a.m., Calcasieu Parish Sheriff’s Office deputies were dispatched to a gas station on Gulf Highway in Lake Charles, LA in reference to a burglary alarm that had been triggered. When deputies arrived, they discovered the back door of the store was open and had been damaged. After deputies checked for possible subjects inside the store, the store manager arrived and was able to access video surveillance footage. The video captured a man, later identified as Quinn, driving up to the store on a Harley Davidson motorcycle, which was later discovered stolen by Quinn from San Jacinto County, Texas. Quinn then entered through the back door of the store, stole several miscellaneous items and fled on the motorcycle. At 7:30 a.m., CPSO deputies responded to a report of a car being stolen from the parking lot of a collision repair shop on Gauthier Road in
Lake Charles. While conducting their investigation, deputies recovered the stolen Harley Davidson motorcycle Quinn had abandoned on the property. An investigation revealed after stealing the car from the collision repair shop in Lake Charles, Quinn traveled to a Sweetlake home where he abandoned the stolen car, then stole another car from a nearby home. At approximately 9:30 a.m., Quinn, who was driving the second stolen car, was stopped by a Cameron Parish Sheriff’s Office deputy for a traffic violation. When questioned by deputies, Quinn confirmed he stole the motorcycle, burglarized the gas station, stole the first car from the collision repair shop, and stole a second car from the home in Sweetlake, LA. Quinn was arrested and booked into the Cameron Parish Jail and charged with theft of a motor vehicle; theft; possession of marijuana; prohibited acts; max speed limit; and illegal possession of stolen things. He is currently awaiting extradition to Calcasieu Parish where he will be booked into CCC and charged with simple burglary; criminal damage to property; theft; possession of stolen items (motorcycle); and theft of vehicle. Judge David Ritchie has set his bond on these charges at $85,000.
Clark Plucinski Named CREF Executive Director
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The Collision Repair Education Foundation has announced that Clark Plucinski has been named its executive director, effective July 30, 2012. “We are pleased to have someone of this caliber lead the Collision Repair Education Foundation going forward,” said Chris Northup, chairman of the Board of Trustees. “Clark is a perfect fit for our organization to continue to grow and prosper in providing dollars and products to those who provide our future technicians and leaders.”
NABC Needs Seven Directors
The National Auto Body Council (NABC) is now accepting nominations for its 2012 board of directors. The NABC said it will fill seven vacant positions on its board. Board candidates must be members of the organization or designated representatives of member companies in order to be included on the voting ballot. Candidates can be nominated either by themselves, or by three other NABC members. Board nominations can be submitted by mail, email or fax by Aug. 11, 60 days prior to the election. Visit autobodycouncil.org for details to submit a nomination.
GARMAT USA has announced the return of the immensely popular Garmat Sharp Shooter contest for shop owners and paint techs. This contest is designed to recognize quality paint techs and shop owners that use Garmat equipment. The Garmat Sharp Shooter Contest will run through September 18. Paint techs and their managers will have the opportunity to tell their Garmat story, in either video testimonial or written statements. Judging is based on the shop owner and paint tech's dedication to providing quality paint jobs, superior customer service, attention to safety and overall equipment knowledge. Bonus questions include an inquiry on how Garmat can improve their Garmat experience with product improvements. The first 100 entrants will receive a custom Garmat Sharp Shooter Cap. First place prizes of two leather jackets (one for the contestant and one for the owner) will be awarded to five finalists, and the Grand Prize of a trip for two to Las Vegas will go to the contest winner. Contest rules and regulations can be found at www.garmat.com.
10 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
ABRA Rewards 8 Students with CREF Tool Grants
ABRA Auto Body & Glass awarded eight collision students each with $2,000 in tools through a spring tool grant opportunity with the Collision Repair Education Foundation. The tool grant was made available to select high school seniors and post-secondary students studying in collision repair programs. The winning students were able to select $2,000 (retail value) in tools and equipment from the NATEF tool list. The student winners of the 2012 ABRA Auto Body & Glass spring tool grant include: • Angel Cardenas (Maxwell High School of Technology, Lawrenceville, GA) • Joshua Castillo (Universal Technical Institute, Houston, TX) • Karl Liufau (Universal Technical Institute, Houston, TX) • Daniel Norlander (Dunwoody College of Technology, Minneapolis, MN) • Kolton Perschbacher (Warren Technical School, Lakewood, CO) • Kristopher Roof (Aims Community College, Windsor, CO.) • Christina Sepulveda (Nashville Auto Diesel College, Nashville, TN) • Luis Sotelo (Aims Community College, Windsor, CO)
Service King Collision Opens 49th Texas Location
Service King Collision Repair Centers, a Texas-based operator of collision repair facilities in the San Antonio, Austin, Houston, and Dallas-Ft. Worth markets, has agreed to purchase Bordelon Collision serving northern San Antonio and the Hill Country. This will be Service King’s 9th new collision center within the San Antonio marketplace and 49th throughout Texas. The 18,000-square-foot stateof-the-art facility was opened in 2010 by current owner, Max Bordelon. “We’re very excited to be joining the Service King team,” said Bordelon. “I’m confident that Service King will take care of our employees and customers for years to come.” The new facility has been outfitted with specialized equipment for waterborne/low-VOC paint. Service King was founded 36 years ago by Eddie Lennox with one location in Dallas, Texas. Now, they have 23 locations in Dallas-Ft. Worth, 12 in Houston, nine in San Antonio and five in Austin, Texas. They recently announced plans to acquire eight collision centers in Arizona in July 2012.
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7 Time DUI Driver Hits Judge with Teens in Car
A 54-year-old New Mexico resident was booked last month on his seventh drunk-driving charge after injuring a local judge who was a passenger in another car involved in the collision. Junior Yazzie had two teenager passengers in his car when he struck the judge’s car, and is also suspected of being involved in two hit-and-run accidents the evening before. The incident occurred June 30 outside a mall in Farmington, N.M. Yazzie refused to consent to a blood-alcohol test and reportedly had bloodshot eyes and smelled of alcohol. A nearly empty bottle of vodka and a case of beer were found in his vehicle. Yazzie’s charges included child abuse, providing alcohol to a minor, driving with a suspended or revoked license, driving with an open container, careless driving and refusing to submit to a blood-alcohol test, authorities said. Injured in the crash was local Magistrate Judge Carla VescoviDial, who presides over drunk driving cases. “Judge Dial is a tough lady. We expect her back reasonably soon,” a court official said.
Auto Craft Collision Expands
Auto Craft Collision Repair has already outgrown its site in Junction City, KS, about two years after opening and is one of five fully-functioning body shops the Wichita-based company operates. Work will start soon to increase the size of the Junction City site from 6,000 to 10,500 square feet. The expansion is expected to be completed this fall. Auto Craft opened its Junction City location as part of a larger expansion plan. The company will spend $400,000 to $500,000 on the project. No bank financing will be used.
NWLCRA Meets August 7
The Northwest Louisiana Collision Repair Association’s next meeting is set for Aug. 7 at noon. The meeting will be held at the Hilton Shreveport at the convention center. Lunch will cost $15 and begin at 11:30 a.m. Special guest will be Denise Caspersen, Collision Division Manager of Automotive Service Association (ASA). ASA is researching the State Farm pilot program currently being tested for electronic bidding of parts. Collision industry professionals and parts vendors will want to attend this meeting.
NHTSA Publishes Changes to Safety Guidelines
The National Highway Traffic Safety Administration (NHTSA) recently published amendments to the Highway Safety Program Guidelines for states. The proposed NHTSA Highway Safety Program Guidelines Amendments include recommendations for periodic motor vehicle inspection (PMVI). NHTSA’s proposal calls for every state to have a periodic vehicle inspection program and require vehicle owners to correct these conditions in order to reduce the number of accidents. According to the proposed guidelines, an inspection program would provide, at a minimum, that: Every vehicle registered in the state is inspected at the time of initial registration and on a periodic basis thereafter as determined by the state. The inspection is performed by competent personnel specifically trained to perform their duties and certified by the state. The inspection covers systems, subsystems and components having substantial relation to safe vehicle performance. Each inspection station maintains records in a form specified by the state.
Gerber Opens New Shop in FL
The Boyd Group Inc. has announced the opening of a new collision repair center in Orlando, FL. The Boyd Group now owns and operates 10 locations in Florida, which brings the total number of U.S. locations to 149. The new Orlando repair center previously operated as K & J Customs, and will now be operating under the Gerber Collision & Glass trade name. It is approximately 17,500 square feet. The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S.
Brunori Elected to CREF Board
Executive VP/GM, Dave Brunori has been elected to the Collision Repair Education Foundation Board of Trustees. The mission of the Collision Repair Education Foundation is to secure and distribute charitable donations to support endeavors that promote, qualify, and properly train employees entering the collision industry. Brunori brings over 29 years of experience in the Vehicle Refinish market and has been with Matrix System Automotive Finishes for 19 years.
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New Orleans Will Host 10th Annual Fix Auto Conference
Fix Auto has announced that the 2012 Fix Auto National Conference will be held in conjunction with the International Autobody Congress and Exposition (NACE), Oct. 7-9 2012 at the W New Orleans hotel. “The whirlwind of industry activity surrounding NACE includes presentations, training opportunities, exhibitions and other events that are of great value to our members,” said Fix Auto President and COO Paul Gange. “By scheduling the Fix Auto National Conference just prior to NACE, we can maximize professional opportunities for attendees without requiring they spend an extended time away from their businesses or book multiple plane tickets.” This year’s conference theme, “The Power of Now,” will be infused into the mix of programs, panels, breakouts and networking opportunities. Attendees will benefit from hearing some of the collision industry’s most knowledgeable and connected leaders who will share their domestic and global perspectives on the state of the industry and other trends. More than 150 attendees are expected at this milestone conference event.
2012 SkillsUSA Conference Held in June in Kansas City
SkillsUSA returned to Kansas City, MO on June 23-27, 2012 for the 48th Annual National Leadership and Skills Conference (NLSC), a showcase of career and technical education students. More than 15,000 people, including students, teachers and business partners, participated in the week-long event. The SkillsUSA Championships were held on June 26. Nearly 6,000 outstanding career and technical education students, all state contest winners, competed in 94 different hands-on trade, technical and leadership fields. Students worked against the clock and each other, proving their expertise in occupations like electronics, computer-aided drafting, precision machining, medical assisting and culinary arts. Contests were run with the help of industry, trade associations, and labor organizations, and test competencies were set by industry. The competitions were open to the public and free of charge. SkillsUSA serves more than 300,000 students and instructors annually. The organization has 13,000 school chapters in 54 state and territorial associations.
CARSTAR Helps Student Auto Pros at SkillsUSA
CARSTAR Auto Body Repair Experts returned to the 48th Annual SkillsUSA National Leadership and Skills Conference in Kansas City, MO where they helped educate, guide and evaluate the next generation of auto body repair professionals. SkillsUSA is a national organization of students, teachers and industry working together to ensure America has a skilled work force. Quality career and technical education was the centerpiece of the SkillsUSA conference where more than 15,000 students, teachers, education leaders, and representatives from more than 1,100 national corporations, trade associations, businesses and labor unions participated in the event. Each year, the annual SkillsUSA Championships, the national-level competition for public high school and college/postsecondary technical students enrolled in career and technical education programs, visits Kansas City, MO, where CARSTAR is headquartered. Members of CARSTAR, including the corporate team and local store owners, were on hand to participate as technical directors and judges during the Championships. Bob Keith, Senior Director of Education and Training, is in his 10th
year of attending and participating in the conference. Keith is part of the National Technical Committee in the structural analysis segment of the Championships. He is a part of the team that establishes the competition standards, sets-up the competition segment, runs the competition and then takes down the segment once the competition is over. Keith believes the conference is an invaluable part of finding the future talent necessary to sustain the quality of the auto body repair industry. “SkillsUSA puts the need for properly trained and dedicated young men and women in the spotlight,” said Keith. “As CARSTAR depends on these highly skilled workers for its success, it is a natural fit for us to be involved not just on the national level but also on the local level.”
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Texas’ Collision Repair Schools—No Lone Reason for Success by David Brown
The National Automotive Technicians Education Foundation (NATEF) is a Leesburg, Va.-based regulatory body whose sole purpose is to ensure quality auto body training and education. NATEF continuously evaluates courses and subjects being taught in collision repair schools. In Texas, there are 11 NATEF-accredited programs, comprising seven high school and four post-secondary programs that serve students and industry in the Lone Star State, reports Trish Serratore, president of NATEF, Three of the secondary programs are at Trimble Tech, Pasadena and San
Credit: Texas State Technical College
Benito high schools. All use the ICAR curriculum. The Fort Worth Independent School District has its only Collision Repair Program at Trimble Tech High School, says its instructor, Roger Alfaro, ASE Master Certified in Collision Repair/Refinishing Technology and Estimating. Dr. Alma Charles directs all CTE programs at FWISD. Accredited by NATEF in NonStructural Analysis and Damage Repair (Body Components) Structural Analysis and Damage Repair, Trimble Tech has had a body-repair program since 1956 and participates annually in SkillsUSA, Alfaro says. Students begin in their freshman year, so a program graduate completes 721 hours of instruction including those first two components, 300 and 260 hours respectively, and 161 hours for Refinishing Technology, guest speakers, field trips and potential-job visits. “I actually took the Auto Body class and graduated from Trimble Tech in 1983,” he says. He then attended Tarrant County College, earning an associate degree in Applied Science in Auto Body. After working in a shop for about 6.5 years, he was hired as the Collision Repair instructor in January 1991. A 2011 graduate, Martin
Urbina, was an intern at Frank Kent Cadillac in Fort Worth. “I graduated from high school and work to support my family,” he says. “I’m still going strong by also going to college to further my education. I believe those ethics were instilled in me by having majored in Body Shop.” Outside of Houston, Pasadena High School uses the I-CAR training curriculum for a two-year course, articulated with nearby San Jacinto College South for five courses. In place since the 1960s, the program accepts about 20 juniors annually following intensive vetting, explains Chad Phillips, the program instructor, an ASE Master Collision/Refinishing technician. “A six-week-long safety program is followed by education in automobile construction and instruction on correctly disassembling and reassembling a variety of cars. Next, students learn to weld using ICAR standards and train on vehicles provided through donations from AYES, auto manufactures and San Jacinto College. This is followed by dent-repair practice on vehicles and donated panels from Toyota; then students prime and refinish their panels. “It’s a lot to complete in the first year along with the six ICAR modules, but we have to get them ready for potential internships,” Phillips says. Pasadena High School hosts three meetings a year for administrators, instructors and local auto dealerships to get together and evaluate the program and its current needs. Throughout the year, students work on portfolios preparing to interview in April as well as complete 24 hours of job shadowing. At this time, too, dealer/collision shop managers visit the school to interview qualified students for possible internship placement. Once placed, students will typically work a 40-hour week with a mentor during the summer between their junior and senior years. “When we return back to school, the intern, now a senior, goes to school a half of a day and then to work,” he says, noting that Pasadena places 5-7 students in collision internships annually. San Benito High School serves the San Benito community, adjacent to Mexico and separated by the Rio Grande River.
14 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
portation, Distribution and Logistics class (12th). On completion of coursework, students can then test in two NA3SA/ASE areas for certification after completing the two-and-a-half year program: Painting and Refinishing and Nonstructural Analysis and Damage Repair. The San Benito program has been NATEF/AYES certified since 2005. “By participating in NATEF, we were able to restructure to define the necessary tasks needed by our local businesses to assist in providing qualified entry-level employees,” Rendon explains. Similarly, through the AYES program, students can participate in a 400-hour paid internship during the summer of their junior years. Leslie Eaton grinding. Photo credit: Andrea Vasquez, When students complete San Jacinto College marketing department their internships, they may work full-time or continue their eduergy, Power & Transportation Systems (10th); Collision Repair and Refinish- cation at the respective dealer manuing (11th); Advanced Collision Repair facturer training centers or college. A and Refinishing (12th); and, for qual- tool scholarship valued at $3,200 is ified students, a practicum in Trans- made available at minimal cost.
In existence since 1978 at San Benito High, the school’s Collision Repair and Refinishing program prepares students as if they were already at a body shop or at the community college, says Hector M. Rendon, director of Career and Technical Education Programs. One teacher provides the instruction through three different classes for grades 10 through 12. Courses include Principles of Manufacturing (9th); En-
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“The one thing I liked about the job placement is that it is very different from the classroom environment,” says student Roberto Rodriguez. “You are always busy and on your toes. It is about production and profits.” Texas colleges, also using the ICAR curriculum, have equally robust programs. In operation since 1935, Kilgore College is in Kilgore, between Longview and Tyler in east Texas, two miles south of Interstate 20. The Automotive Program is a member of the Training Alliance with I-CAR. “We are a small but effective operation, allowing direct personal contact with each student,” says Joel Laws, the program director and primary instructor. In the 10-year-old Auto Body Program, he sees 20-25 students annually flowing through the new 40 credit-hour one-year curriculum for certificate seekers and the 71credit two-year curriculum for the Associate of Applied Science Degree. The classes are approximately 67 hours a day, five days a week for the duration of the specific program. Courses in the certificate program include Vehicle Trim and Hardware in the first semester and Structural Analysis & Damage Repair, I, II and III, in the second. For the two-year degree, students take courses such as Automotive Suspension and Steering Systems in the fall semester and Collision Repair Estimating and Collision Repair Shop Management in the spring. James Burns, an owner of a local used car dealership, attended the program to maximize profit. “With the information I have learned through the program, I can now make the proper repairs, turn a better profit and put a better-looking vehicle on the lot,” he says. Student Ramiro Aguilar began a career: “Starting with no knowledge or experience in the field, through the program I was able to complete my co-op time at a local body shop that I now work at full time!”. Automotive collision repair is taught at the North and South campuses of San Jacinto College in the Houston area. The Central campus teaches Automotive Mechanical repair. The San Jacinto College Automotive Collision Repair Technology Program began in the mid 70s and was one of the first programs in the Houston area to teach I-CAR classes. The
auto collision program has 186 students enrolled and places 75 percent of its graduates in jobs, says David Baisden, who started teaching at San Jacinto College as an adjunct instructor in 1978, and in 1981 became a fulltime instructor. All of the full-time auto collision instructors are I-CAR trained, members of the I-CAR Industry Training Alliance and certified through the National Institute for Automotive Service Excellence. “Being I-CAR Industry Training Alliance members also allows our students to be eligible for I-CAR Gold Points, which can be used for further certification with I-CAR after completion of the auto-collision program,” Baisden says. His associate Jake Stahl, teaches at the South campus, and Glen Kirkwood is the full-time instructor at the North Campus, with many adjunct instructors collegewide. Instructors also train in most major equipment and paint systems and take training courses to keep up with the latest industry standards, he says. Several degree and certificate options are offered: an Associate of Applied Science degree in four semesters, earning 62 college credits; a Certificate of Technology in three semesters, 42 college credits; or an Occupational Certificate completed in as little as one semester. Night and weekend classes are also available. “By incorporating industry professionals in curriculum planning, we ensure that our students have an advantage once they enter the job market after completion of the program,” he says, noting that they participate in activities such as the San Jac Auto Body Club, the Technical Honors Society and SkillsUSA. “It’s always been my dream to be in the auto body industry, and now I’m excited to learn more so I can get a job doing something I love,” says Pedro Chacon, 19, an auto collision student who works at a local tire shop, takes a full load of courses and works at his family’s restaurant on his days off. A former student, Leslie Eaton, 54, is a retired NASA associate engineer and enrolled in Baisden’s class in the early 90s after she discovered a gasket leak in her 1972 Toyota Corolla and wanted to save money on repairs and car maintenance by doing them herself. “I still do maintenance and repairs on my cars, and now when I’m
16 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
buying a used car, I can recognize if it’s had any prior damage, which gives me more bargaining room,” she says. In Waco, the Auto Collision and Management program at Texas State Technical College began in August 1969. The program offers four achievements: Refinish Certificate, 41 credit hours; Auto Body Certificate, 40 credit hours; Refinish & Auto body Combination Certificate, 61 credit hours; and an Auto Collision & Management Associate Degree, 70 credit hours. Each certificate requires a year, and the Associates Degree is a two-year program. The instructional staff includes seven instructors, all with Master status from ASE, one lab maintenance technician and one secretary. Facilities comprise three collision labs, two refinish labs and classroom space. In the fall semester 2011, 163 majors were enrolled, says Archie Watley, program chairman. Through the use of industry partnerships with major players, the program has kept equipment and training current. “The fact that our graduates have been prepared on vehicles with state-of-the-art design and electronics greatly assists them in moving smoothly and quickly into the work-
force,” he says. One result of this high level of training has been participation and success in SkillsUSA. In the mid 90s, Watley was assigned advisor to the local VICA organization (now SkillsUSA), and three of his students placed first, second and fourth in the state. That year, in June, at the finals in Kansas City, Mo., his first-place winner took first nationally. This year, students Rebekah Shadowens and Brandon Wennin, traveled to Kansas City to compete in SkillsUSA, she in Collision Repair Technology, he in Automotive Refinishing Technology. “While neither placed in the top three areas, their display of skills and competitiveness prepared them mentally and physically for their entrance in this field of study,” Watley says. “Now, we begin searching for new talent.” Note: The writer thanks Joe Thigpen and Ric Menard, AYES state managers for Texas. Employed by the Texas Auto Dealers Association, Thigpen manages the AYES schools in Texas except the AYES schools in the Houston area, managed by Menard, who is employed by the Houston Auto Dealers Association.
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PartsTrader Announces 5-Year Deal with ‘One of the Largest U.S. Auto Insurers’; Adds 3 New Managers
In a press statement released to media in New Zealand, PartsTrader announced that it has entered into a “locked-in five year agreement” with “one of the largest auto insurers in the U.S.” While the release did not name the insurer that it signed the contract with, the New Zealand based PartsTrader has been working with State Farm in the U.S. to test its online parts bidding system for several months now. In the statement, the company said that it has “just completed a four-state pilot of its online trading platform” in the U.S. A New Zealand news source reported PartsTrader winning a fiveyear contract with State Farm to introduce its online parts trading platform to U.S. collision repairers by early next year. The online news source said PartsTrader would add about 45 employees in New Zealand and the U.S. as a result of the deal and called the U.S. contract its “first big overseas break, though its value will depend on the volume of car parts ordered.” PartsTrader US LLC Chief Executive Rob Cooper said, “We have entered the U.S. market with a
locked-in five year agreement. If successful, the business will generate a healthy profit and most of it will flow back to our NZ investors,” Cooper said. PartsTrader said that it “fended off an international field of contenders” to win the contract in the U.S. which is “modeled on the platform [that] has operated in New Zealand since 2004.” The company said that last year in New Zealand alone, vehicle parts valued at more than $70 million were obtained through the PartsTrader platform, which is used by most of the major insurers and some 80 percent of collision repair shops in New Zealand. In late June, PartsTrader also announced it hired three industry leaders to its management team. Dale Sailer, David Merrell and Troy Holm will lead the company’s efforts in implementing the PartsTrader system in the collision repair and collision parts markets. Sailer will serve as the company’s Vice President of Business Development. Merrell joins the company as its National Account Director and Holm is its first Field Relations Manager.
ASA-Michigan Members and Vendors Discuss State Farm’s PartsTrader Pilot Program Automotive Service Association (ASA) members and related collision industry vendors in the Michigan area were recently invited recently by ASA-Michigan, an ASAaffiliated association, to attend a “facts to date” presentation and member discussion centering around the State Farm electronic parts ordering application. The pilot is currently taking place in Grand Rapids, MI.; Charlotte, N.C.; Birmingham, AL.; and Tucson, AZ. Organized by Ray Fisher, AAM, president of ASA-Michigan, the June 28 meeting was held in Lansing, MI., at the Lansing Community College. ASA-Michigan provided the forum to present the facts to date about the pilot, along with clear statements of concern from both repairers and suppliers in the Michigan area and around the United States. “Anytime there is a ‘gamechanging’ situation – as this pilot is for the industry – it is imperative that we inform the industry with factual information, allow time to digest that information and work together to provide solutions, on behalf of the membership and potential members. During these challenging economic
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times we must focus on helping repair facilities generate revenue,” said Fisher. During the four-hour meeting, Denise Caspersen, ASA collision division manager, spoke about the pilot with an audience of nearly 100 preregistered ASA members, vehicle manufacturers, staff representatives of the Michigan Auto Dealers Association and vendors. Audience members were encouraged to express their concerns, ask for clarifications to specific questions and provide additional questions to be supplied to State Farm and PartsTrader, the company providing the electronic parts ordering application. Main concerns continue to be how this application, as introduced by State Farm, will affect profitability, the unknown impacts on the relationships between shops and suppliers, and the overall current “climate” between repairers and insurers. “The opportunity for ASA to participate in a discussion with ASA members and vendors in the pilot area of Grand Rapids, MI. is invaluable in understanding the overall climate impression around the State Farm pilot,” said Caspersen.
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Industry Leaders Discuss State Farm’s Pilot Parts Program Three industry leaders recently released official statements or spoke out about State Farm’s PartsTrader pilot program involving an electronic parts ordering application. The pilot is being tested in Tuscon, AZ, Grand Rapids, MI, Charlotte, NC and in Birmingham, AL.
ASA On June 20, the Automotive Service Association (ASA) released a press release regarding volunteer leaders discussing State Farm’s pilot program with affiliated associations. The release stated: “During a conference call held June 12, ASA’s affiliated groups in the Tucson (ASA-Arizona) and Grand Rapids (ASA-Michigan) markets provided comments regarding the direct impact the pilot has had on its members. Other ASA-affiliated associations expressed concerns during the call, asked for clarifications and provided the ASA volunteer collision leadership and staff with recommendations for future actions as ASA continues to professionally advocate on behalf of collision repairers nationwide.”
ASA’s research has included interviews with State Farm, PartsTrader and collision repairers - those who participate in direct repair program agreements (including some who are currently participating in the pilot of this application), and those who don’t participate in DRPs. Pilot program concerns presented by ASA: • Reduction in collision repair facility profits based on: > Reduction in manufacturer suggested retail price (MSRP) for parts > Increased administrative costs > Increased cycle time delays • Increased administrative time based on: > Suppliers on pilot report increased administrative time > Repairers on pilot report increased administrative time > Increased “re-keying” of estimates based on lack of system integration • Overall concern of the influence insurance agreements have on collision repair processes • Electronic application will have a negative impact on local repairer-sup-
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plier relationships • The “Price-Perfect” price listing of recycled parts continues to complicate the parts selection process and hinder the efficiency of the repair • Potential expansion of the “parts search” market beyond the local repairer-recommended suppliers • Potential expansion of this type of application being applied to other hard products necessary for a proper collision repair • Cost of the application to the supplier will be passed on to the repairer and the consume • Shops in pilot areas expressed a lack of training and understanding of the application • Pilot shops also found a lack of responsiveness from State Farm and PartsTrader to questions from repairers and suppliers participating in the pilot • Lack of information regarding how this will benefit the consumer • Concern of the overall legality of the program CARSTAR Dan Young, senior vice president of
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insurance for CARSTAR Auto Body Repair Experts, said it’s too early to quantify how the PartsTrader online parts bidding and ordering software will impact shops, according to media reports. CARSTAR has stores in two of the test markets. “We are in contact with them daily to monitor what’s going on with the new process, and we definitely understand the concerns. Those shop owners are telling us there are some pieces of the new process that are hurting certain efficiencies inside the shop, which need to be addressed. These same shops tell us State Farm and PartsTrader have been in the shops surveying the issues and working on resolutions. There is also an obvious concern out there right now about what this new parts supply process will do to the parts profits in the shop. We understand this concern and are watching it closely. But our shops are saying that it’s too early to tell what the exact impact on profitability will be,” said Young. “We’re talking about a process that has only been in place since April. See Industry Leaders, Page 22
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Houston Auto Body Association Presents to SCRS Board James Brown, President of the Houston Auto Body Association (HABA), made a special presentation to the Society of Collision Repair Specialists (SCRS) at their open board meeting held in San Antonio, TX on July 17. The meeting preceded the Collision Industry Conference. Brown gave a report on the association's recent efforts to address proposed changes to the Consumer Bill of Rights with the Texas Department of Insurance (TDI). HABA testified June 26 at a public hearing before the Texas Department of Insurance concerning HABA's recommended changes to the existing Consumer Bill of Rights. “We testified before the Deputy Commissioner as well as other representatives of TDI,” Brown said. “They were very courteous, and Larry Cernosek (HABA Board Member) and I were allowed to speak for about 20 minutes each. The Insurance Commissioner will review our concerns —the public hearing was recorded and they were taking notes during our testimony—and have yet to officially approve the proposed Consumer Bill of Rights.” Comments Brown and Cernosek made regarding the proposed changes to the Consumer Bill of Rights included: In regards to Item #27 in the Consumer Bill of Rights, which addresses Choice of Repair Shop and Replacement Parts. It currently reads: 27. CHOICE OF REPAIR SHOP AND REPLACEMENT PARTS. You have the right to choose the repair shop and replacement parts for your vehicle. An insurance company may not specify the brand, type, kind, age, vendor, supplier, or condition of parts
or products used to repair your automobile. According to HABA, “We believe that #27 of the Consumer Bill of Rights is incomplete because it does not define consumer rights as it relates to Section 5.501 of the TAC (Texas Administrative Code) concerning a clear definition of “reasonable amount.” We believe that reasonable amount for parts should be based of the suggested MSRP list pricing provided by vehicle manufacturers,” said Brown. The TAC is the current Insurance Code that governs insurers as it relates to auto claims. Section 5.501 of the TAC requires an insurer to provide a notice to the insured or third-party claimant who makes a claim regarding damage to a vehicle. The required notice specifies that a claimant has the right to select where a motor vehicle is repaired and the parts used for repairs. The notice also specifies that an insurer is not required to pay more than a reasonable amount for such repairs and parts. “It has been our experience that most consumers believe that when their vehicle is involved in an accident that OEM parts will be used in the repair process of their vehicle, especially if they are the claimant but also as the insured,” the HABA representatives testified the public hearing. “We acknowledge as the insured that they are limited to their policy agreement with individual insurers which may allow for salvage or non-OEM parts (Like Kind & Quality) to be used in the repair process. Some insurers do a poor job in communicating this issue. We suggest at the time a policy is sold or renewed that a separate signature line (bold print) should
SCRS Says PartsTrader Has Sparked Four New Industry Associations: UT, ID, AL, and TX
According to Aaron Schulenburg, president of the Society of Collision Repair Specialists, concern over State Farm’s parts bidding program has caused a spike in their membership and prompted the formation of at least four new auto body associations. New associations have popped up in Utah, Idaho, Alabama and Texas. Though the banding together of shops is primarily a defensive action against State Farm’s online parts bidding and ordering program through PartsTrader,
Schulenburg said it was good to see more unification in the industry. “For that, I thank both State Farm and PartsTrader,” Schulenburg quipped. “I can tell you that I’ve had the pleasure of talking to a lot more repair shops that I haven’t had the opportunity to speak with before.”
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be required to be signed by consumer that states that “in the event of an accident I acknowledge that the use of non-OEM parts will be used in the repair of my vehicle which may or may not affect my manufacturer’s transferrable vehicle warranty (check with your vehicle manufacturer), and as a result may decrease the value of my vehicle.” In a Commissioner's Bulletin (#B-0031-10), the Texas Department of Insurance said: “The Department is also concerned 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 the warranty on a vehicle. The majority of personal automobile insurance policies require insurers to pay the amount necessary to repair or replace the property with other(s) of like kind and quality. It is an unfair claim settlement practice for insurers to pay claimants an amount for the repair of the vehicle, including parts, that is not a reasonable amount for repairing or replacing the property with other of like, kind and quality or is not
sufficient enough to make the repairs necessary for the manufacturer to honor the vehicle warranty.” Brown said the second concern HABA has regarding proposed changes to the Consumer Bill of Rights concerns sourcing parts. “Some insurers are asking repairers to go outside of our local area (out of city and state) to source parts, OEM, salvage and non-OEM parts,” Brown testified. “They are listing the suppliers on the estimate with corresponding list prices for said parts. We have notified insurers of item #27 on the Consumer Bill of Rights and they have agreed with the mandate but also quoted section 5.501 of the TAC and are unwilling to pay the price difference for sourcing these parts locally, stating they are only required to pay “reasonable prices for parts.” This tactic used by some insurers prolongs the repair process and also results in underpayment of claims to claimants and the insured. Most auto policies sold in Texas have a 30-day limit on rental coverage, and in some cases, this causes additional expense to consumers.”
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ing to address whatever issues are presented,” Young added.
Continued from Page 19
Industry Leaders
SCRS The Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg responded to a open letter to the automotive services industry issued on June 18 by PartsTrader CEO Rob Cooper. (The PartsTrader letter can be viewed at autobodynews.com by searching “partstrader.”) In his “So Noted” column in the SCRS newsletter released in early July, Schulenburg commented: “The (PartsTrader) letter’s intent was to counter negative industry reactions to PartsTrader, as well as to assure collision repairers that they “are in control of the process” and PartsTrader “will not enter into any insurer relationship that prevents repairers from making their own decision about choosing a supplier.” The letter assured that they “are committed to repairers being in control.” According to the SCRS press release, “This proclamation is interesting given that the one most critical element to repairer control has already been seemingly compromised; the lack of
Through the first half of May, shops in the test markets were still figuring out how to use the tool; there is a learning curve here. We’re now in a period of trying to determine how and whether the program is impacting profits and efficiencies—and by how much. I just don’t think we know enough yet. We need to let the pilot process play out a bit longer. I think things might look much different down the road than it looks today,” Young said. “From talking to our shop owners in the test markets, State Farm and PartsTrader are very involved in trying to identify issues that are causing process delays for our shops. It’s my understanding representatives from both State Farm and PartsTrader have been in every participating store we have in the test markets figuring out what can be done to resolve the issues. They’re interviewing each storeowner, and conducting 25-question surveys to identify what’s working and what issues need attention. Both companies do appear to be very engaged in try-
choice over whether or not the repair facility will use PartsTrader to procure their parts on State Farm claims. “Is it not contradictory to PartsTrader’s stated rule to allow State Farm to exclusively mandate the use of their program, eliminating the repairer choice in how their internal parts location and ordering process work? If willing to bend on their repairer-choice rule for State Farm, are there other rules which were outlined by PartsTrader that they may be willing to bend for carriers in the future? “There is some degree of irony that PartsTrader believes all suppliers should have a “fair” chance to win a repairer’s business, while their company has entered the market in what some feel is an “unfair” or uncompetitive manner – through a mandate from the largest national property & casualty insurance carrier. Is this company not willing to compete with the traditional ordering process they claim to have a better solution for? Certainly, nothing is stopping PartsTrader or State Farm from coming to the industry with a value proposition for their parts procurement and ordering process, and demonstrating to suppliers and repair facilities why this process is more ben-
eficial than the traditional ordering process. This would allow suppliers and repair facilities to make their decision to participate based on the merits of the program, rather than being based on an ultimatum to use PartsTrader or no longer be welcomed to participate in their Select Service. “Feedback from both repair facilities and parts suppliers have indicated that the program has directly caused greater levels of inefficiency and increased concern over profitability. End users have indicated an opinion that the product was far from ready to go to market, failing to have adequate support to fix the myriad of challenges the program created for both buyers and sellers of collision replacement parts. In the meantime, both State Farm and PartsTrader have urged repairers not to make decisions without “fully understanding” or personally trying the system. But those who have used PartsTrader have shared comments that are very critical of the process. To read the entire SCRS response to the PartsTrader open letter, go to www.autobodynews.com, search in Industry News. See other PartsTrader news on pages 18, 20 and 39.
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Supreme Court Won’t Hear Appeal on Kia Brakes Suit
The Supreme Court refused to hear an appeal of a $5.6 million verdict against Kia Motors Inc. in a class-action suit over allegedly faulty brakes in Sephia sedans. The high court decision ends an 11-year legal battle. The Pennsylvania Supreme Court last December upheld a decision that awarded $600 — $5.6 million total — to 9,400 owners of 1997 to 2000 Kia Sephias in Pennsylvania that had brakes that allegedly wore out much faster than normal. Owners in other states have pursued separate claims. A jury in New Jersey found Kia Sephia owners could be reimbursed up to $750 for brake repairs. The Pennsylvania suit was first filed by a Kia owner that had gone to a dealer five times to get the brakes repaired on her 2001 Sephia between January and October 2000. Kia changed the brakes beginning in the 2001 model year.
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Advanced Car Technology Reduces Frequency of Crashes Says Study A new study shows advanced auto technologies such as forward-collision avoidance systems — especially those that brake automatically — result in sharp drops in car crashes. The Insurance Institute for Highway Safety said forward-collision systems and adaptive headlights, which shift direction as the driver steers, has the biggest impact in reducing accidents. The study by the industryfunded group also found that lane-departure warning systems appear to hurt, rather than help — though it’s not clear why. Other systems, such as blind-spot detection and park assist, aren’t showing clear impacts on crash patterns yet. “As more automakers offer advanced technologies on their vehicles, insurance data provide an early glimpse of how these features perform in the real world,” says Matt Moore, vice president of the Highway Loss Data Institute, an affiliate of IIHS. IIHS examined forward-collision systems offered on Honda Motor Co.’s Acura vehicles, Daimler AG’s Mercedes-Benz and Volvo vehicles. Property damage claims for Acura and Mercedes models were 14 percent lower when vehicles were
equipped with forward-collision warning with automatic braking than when they weren’t. Collision claims for vehicles with adaptive headlights fell as much as 10 percent. “These lights appear to help in more situations than we anticipated, though we don’t know why,” Moore said. Mercedes and Volvo also offer versions of forward-collision warning systems that don’t include automatic braking. These appeared to lower crash rates, too, but not to the same extent as versions that do include it. But a review of claims in General Motors’ Buicks and Mercedes vehicles for claims from lane-departure systems showed claims from vehicles with the systems actually increased, although in numbers so small as to be statistically insignificant. IIHS said drivers may be getting false alarms because of poor lane markings, which rely on cameras to track lanes. It takes a long time for advanced safety features — which typically begin on luxury cars — to reach all cars on the road. IIHS estimates it takes at least 30 years for a promising safety feature to spread to 95 percent of vehicles on the road.
The National Highway Traffic Safety Administration has been studying forward-collision warning systems since 2010. NHTSA said this week it is researching braking technologies that rely on “forward-looking sensors” to supplement driver braking or to engage automatic braking in response to an impending crash. The agency believes these technologies show promise for enhancing vehicle safety. NHTSA has mandated significant safety equipment including front, side and side curtain airbags, safety belts, electronic stability control, and tirepressure monitoring systems. The government is considering requiring rear-visibility cameras. Not all safety equipment is mandated or has shown safety benefits. Antilock brakes, for example, spread quickly through the U.S. fleet even though they’ve never been required. IIHS notes that despite promising results on test tracks, real-world crash data haven’t shown large benefits. But antilock brakes are essential for electronic stability control systems, which help prevent rollovers and other crashes.
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GM to Recall 413,418 Cruzes Made in 2011 and 2012 GM says it will recall a total of 413,418 Chevrolet Cruze cars in the U.S. from the 2011 and 2012 model years to fix a problem that could lead to an accumulation of automotive fluids in the engine compartment. It’s the car’s fifth recall in the past two years. The company said fires can break out during engine oil change procedures. Oil spilling or dripping onto hot parts of the engine, exhaust-system or the engine shield could cause the shield to ignite and fire could spread in the engine area. The company knows of 30 fires caused by the problem, but no injuries have been reported, spokesman Alan Adler said. Flames engulfed and destroyed cars in two cases reported to federal safety officials. GM said it will modify engine shields under the vehicles to prevent fluids from being trapped. GM is notifying owners about the repairs, which are free and should take about 30 minutes.
Isuzu Recalls Rodeo Sport, Amigo SUVs for Rust Risk
More than 11,000 Isuzu SUVs are being recalled because parts in the rear suspension can rust and break away from the frame. The recall affects Amigo SUVs from the 1998 to 2001 model years and Rodeo Sport SUVs sold as 2001 and 2002 models, the National Highway Traffic Safety Administration said in documents posted on its website. Isuzu said the rear suspension link brackets can rust and become detached from the frame. The problem can hurt the vehicle’s handling and cause a crash, but it was unclear if there have been any wrecks or injuries. The recall covers SUVs sold or registered in 21 states and Washington, D.C. Those are places where salt is used to clear the roads. Salt can cause metal to rust.
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Honda Recalls 172,200 US Vehicles for Faulty Doors
Honda is recalling 172,200 small SUVs and cars in the U.S. because the doors may not close. The recall affects 166,000 CRV SUVs from the 2012 model year and 6,200 Acura ILX small luxury cars from the 2013 model year. Honda says that if the inside driver or passenger door handles are used at the same time as the power or manual door locks, the inner door latch may not work. This means a door may not latch, or it could latch and open when the locks are used. The company says no crashes injuries have been reported because of the problem. Honda says dealers will inspect the cars and fix them if needed. Owners should get letters from the company starting in mid-August
Audi Recalls 13,000 Q5 Crossovers for Faulty Glass
Volkswagen, the corporate parent of Audi, will recall over 13,000 Q5 crossovers because the front glass panel on its panoramic sunroof may shatter in extremely cold temperatures. In a filing posted to the website of the National Highway Traffic Safety Administration, VW said it was made aware of the problem last winter by dealers who reported that the front glass panel on some Q5s had broken. Subsequent laboratory testing of the sunroof panels at temperatures as low as -40 indicated that the glass on some units might separate from the surrounding frame, potentially causing the glass to shatter. If the glass were to break with the vehicle in motion, the glass could injure passengers and cause a potentially hazardous distraction for the driver, the automaker said. On June 20, VW decided to conduct a recall. Andrew Lipman, an Audi spokesman, wrote in an e-mail that there were no known accidents or injuries attributable to the defect. VW said that beginning in early August, dealers would replace the front glass panel on the affected vehicles.
26 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
August 2012
Ford Recalls 2013 Escapes for Engine Fire Danger, Previously Carpet Potentially Interfering with Braking Ford Motor Co. is telling owners of one version of the brand-new Ford Escape not to drive the SUVs until dealers can fix fuel lines that can crack and spill gasoline, causing engine fires. The company issued the unusual warning on July 19 and said it is recalling 2013 Escapes equipped with 1.6-liter four-cylinder engines. Dealers will pick up the Escapes and drop off a loaner car that customers can use until the repairs are finished. The company is hoping to ship parts and get all the SUVs repaired in the next two weeks. Ford says it has three reports of fires: two at the factory and one while a customer was driving an Escape. No one has been injured. The recall affects 11,500 Escapes in the U.S. and Canada. Only 4,800 have been sold to customers. The rest are on dealer lots and will be fixed before they are sold, spokeswoman
Marcey Zwiebel said. “We are obviously taking very quick action in the interest of our customers’ safety,” she said. Escapes powered by other engines are not affected, nor are other Ford models with 1.6-liter engines, Zwiebel said. This is the second recall of the redesigned Escape, which went on sale in June. On July 14, the company said it would recall more than 10,000 Escapes to fix carpet padding that could interfere with braking. The new version of the SUV is among Ford’s top-selling vehicles. People bought 28,500 Escapes last month, up 28 percent from June 2011. Ford says owners should call dealers to get the problem fixed. If parts aren’t available, dealers will drop off loaner cars for use until the repairs can be made. Once the parts arrive, it will take less than an hour for technicians to replace the fuel lines, Zwiebel said.
Lexus is Latest in Toyota Pedal Entrapment Recall
The long, nagging problem of reports of unintended acceleration and sticky pedals just won’t go away for Toyota Motor Corp. The Japanese automaker expanded its 2009 recall of vehicles for pedal entrapment to include 154,000 model year 2010 RX 350 and RX 450h (hybrid) SUVs from its Lexus luxury line, the first new recall for the issue since early 2011. The automaker told National Highway Traffic Safety Administration that it is still seeking a fix for the Lexus vehicles. “We are aware of 12 reports of accidents and two reports of minor injuries that may have resulted from this condition,” Toyota spokesman Brian Lyons said. This is the third expansion of the recall. Toyota has now recalled more than 7 million vehicles to address the issue since November 2009, when it first recalled 4.5 million vehicles. In total, Toyota recalled more than 10 million vehicles to address trapped pedals and sticky accelerator pedals. NHTSA said it was urging “consumers impacted by the recall to immediately remove the floor mat and
have their vehicles serviced promptly.” The government safety agency said it approached Toyota regarding this most recent condition in May, “after the agency observed an increase in consumer complaints and other reports regarding pedal entrapment in these vehicles. When Toyota confirmed last week it had received a significant volume of complaints on the same issue, NHTSA asked the manufacturer to conduct a recall.” Toyota said, “The remedy plan is under development, but will involve modification or replacement of the accelerator pedal and replacement of any Toyota-designed all-weather floor mat not specified for the vehicle.” The 2009 recall initially covered 2004-10 models because the accelerator pedal can get stuck wide open by an unsecured or incompatible floor mat. That remedy was different than the November 2009 entrapment recall, so if both versions of pedal entrapment are counted, Toyota has recalled 7.8 million vehicles. The government already has imposed fines of nearly $49 million on Toyota for failing to conduct three separate recall campaigns in a timely manner.
Gonzo’s Toolbox
Problem on the IN-Side with Gonzo Weaver
The tow truck came around the corner of my shop with a 2003 Focus strapped down on the bed. It’s Stacey’s daughter’s car. Stacey is the office manager at the body shop just down the street from my shop. Her daughter’s little Ford had called it quits at a stop sign for a trip on the back of a tow truck. Now it was up to me to find out what’s going on. The tow driver brought the keys in to Katie (my daughter and office manager), she had already talked to Stacey and had the work order filled out. Katie asked the tow driver, “Where did you drop it at? Stacey said it won’t start.” “It started great for me,” the tow driver said, “I put it along the side of the building for ya.” I found the car right where he left it and I’ll have to admit, it did start up, but I wouldn’t call it great. I made it into the service bay with it bucking, jerking, and coughing like
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.
crazy, along with a terrible rotten egg smell coming from each end of the car. The service light was on so I thought I would start with finding out what trouble codes were stored. P0300, P0301, P0302, P0303, P0304, and P0316 - all misfire codes. It’s a good thing it didn’t have any more cylinders because I’d bet it would have added them onto its list of trouble codes too. Rather than get into looking at the actual data logger section of the IDS, I figured I’ll open the hood and see what’s going on. The car has the 2.0 liter ZETEC engine under the hood. It’s a fairly easy engine to pull the spark plugs on so I thought I would at least take a look at them. The odometer shows 184,000 miles on the little pavement pounder, so I was thinking the worst, that many miles… hey, anything is possible. As I pulled the first sparkplug boot off, a splash of coolant
came out of the cavity. Well, that’s a little different, didn’t quite expect that. I pulled #2, same thing. Then the next one, again more coolant, and only the very tops of the spark plugs was sticking out. There were no signs of any kind of leaks anywhere on the engine, in fact, the reservoir was full and the engine showed no outward signs of overheating. It just didn’t make any sense how all this coolant could end up in there. I blew all the coolant out, dried all the plug wires off, and re-installed them. After giving the key a turn the little engine came back to life and purred like new. Amazing, simply amazing how well it ran considering how badly it came into the shop. But within 15 minutes or so the engine started to act up again. It coughed and chugged, shucked and stuttered, and then it finally died. Now it won’t restart, what the? What’s going on here? Time to check a little further… I pulled #1 spark plug. It was bone dry, actually “very dry” and “very hot.” Exhaust gasses, I’ll bet. I let the car sit for about another 15 minutes and tried it again. A quick turn of the key and it ran like new just as before, but this time I was ready for it. I had it hooked up to the scanner and checked out the O2 sensor readings. It was just as I suspected. The front O2 readings were a complete mess. There was no pretty oscillating wave going up and down on the screen, more like a jagged old saw blade with half its teeth missing. I watched the scope patterns for several minutes, soon the engine started to cough and die just as it did before. I checked the compression this time. Well over 200 PSI, yikes! Looks like all those misfires added up to a lot of raw gas going into the converter. With all the plugs firing now the converter was only getting even more cooked than before. I filled Katie in on everything I had found. She can handle it from here. I was expecting Katie to come out and tell me to order a converter, or send it to the exhaust shop, or drop what I’m doing because it was going to be more than she wanted to spend
on it… something like that, but that didn’t happen. Somehow the word “IN” had more meaning to it than originally intended. Before I knew it a call came from Stacey, she was going to have a new engine installed. Huh? I didn’t know I was putting a motor in. think I missed something here. So how in the world did a clogged converter turn into a new engine? It was the very first thing Katie had told Stacey. Katie said to her, “He found coolant in the spark plug area.” Even though she mentioned that I blew off all the coolant that was on the sparkplugs, somehow it got turned into a leaking head gasket. (I think the guys at the body shop were helping out with the diagnostics.) It took the better part of the afternoon to get the whole thing straightened out. Katie asked Stacey how the coolant ended up in the spark plug area. It was from a coolant hose that had split about two weeks earlier. Stacey’s daughter had someone change the hose for her, but they never thought about looking for any coolant getting trapped on top of the engine. My guess is it probably took a day or so before it ever started to miss. About then the service light would have come on and the real trouble would have started to build. I’ll bet she drove around with it misfiring for a week or so before she told her mom how bad it was. Katie explained the mix-up to me and how everyone had the wrong idea about the engine’s condition. I can’t blame anyone for all of this. In most cases, when someone hears there is coolant “in” the engine they assume it’s a bad deal and most likely in the combustion chamber causing major problems. Well, in this case, it was only “ON” the engine and not “IN” the engine. A new converter installed and everything is back “IN” great shape again. I’ve got to make a point of explaining things a little better next time. My bad, I made the assumption that everyone knew what I meant See The IN-Side, Page 33
www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 27
Rhode Island Gov. Chafee Vetoes Auto Body Bill for Insurers Rhode Island Governor Lincoln Chafee vetoed a bill that would have allowed auto body shops to sue insurers, citing the bill would have sent car insurance rates soaring in Rhode Island. The legislation called for setting standards for declaring a vehicle a total loss if the cost to repair the vehicle is less than 75 percent of the value of the vehicle; require an insurer to negotiate payment for auto body repairs in good faith; and allow private rights of action by auto body shops against insurance companies. Gov. Lincoln Chafee said in a news release, “No other state in the nation allows auto body shops to set repair prices outside of the marketplace, determine whether a vehicle should be totaled without the input of the consumer and the insurance company, or to be an outside third party now authorized to effect an existing insurance policy between a consumer and an insurance company.” He continued, “I believe this bill would hurt Rhode Island consumers by raising their auto insurance rates and impairing their existing contract agreements with their insurance companies.” Earlier in June, the proposal to allow auto body shops to sue insurance companies that do not pay them what they believe they should be compensated for repairs generated a fiery, hour-long debate on the floor of the state House of Representatives. The bill ultimately passed the 75-member chamber on a vote of 38 in favor and 20 against. However, Governor Chafee vetoed the controversial bill approved by lawmakers that would have given auto body shops the right to sue auto insurance companies if negotiations do not lead to an “agreed price.” Supporters, including Rep. Stephen Ucci, a Johnston Democrat and the bill’s sponsor, repeated the mantra that the bill would “level the playing field” between local auto body shops and auto insurance companies and ultimately be good for Rhode Island drivers. But other lawmakers voiced concern that the proposal would only lead to higher auto insurance rates in Rhode Island, which already has among the highest rates in the nation. Rep. Robert Watson, R-East Greenwich, called the proposal “special interest legislation” put together “on the fly.”
“This is why we deserve criticism,” he said. “Nonsense like this plays out in the final days of the session. This is wrong.” A statement released by the Auto Body Association of Rhode Island (ABARI) said, “Though [Chafee’s] veto message states that he is concerned about the consumer, he clearly put the consumer and small business’s interests aside and bowed to the pressure of the real ‘special interest group’ —the billion-dollar insurance companies. Over 200 auto body repair shops have gone out of business in the State of Rhode Island in just the last decade. We’re in a crisis that hurts the consumer. This veto is just another example of why Rhode Island is considered one of the least friendly to small businesses in the nation. “ABARI has fought to pass laws that protect consumers and small business from insurers who care only about their bottom line. H-7782A was no different. Insurers always claim that rates will go up, regardless of the legislation’s substance, because it’s the last scare tactic they have left. The truth is collision premiums have been declining in Rhode Island, the opposite of their certain predictions. “As we have for almost two decades, ABARI will be back next year to continue to expose the lies, reveal the truth, and fight to ensure that consumers receive a safe and quality repair, and that small businesses can thrive in the State of Rhode Island. We will continue to educate the consumer, the legislature and the Governor’s office on the unfair and deceptive practices used by insurers on a daily basis —practices that benefit only the insurers.” The Property Casualty Insurers Association of America (PCIAA) applauded the Governor’s decision, calling it a victory for consumers. “Governor Chafee’s veto of H7782A represents the triumph of everyday Rhode Island consumers over well-connected political insiders,” the PCIAA stated. “The governor carefully considered the legislation and rejected this latest attempt by a group of body shops to further increase their revenues at the expense of Rhode Island drivers. We applaud the governor for taking this important stand against special interest legislation and the politics-as-usual approach which fails to protect the
28 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
people’s interests. “Residents in Rhode Island already pay among the highest auto repair bills in the nation, and H-7782A could have driven costs even higher and possibly jeopardized driver safety by forcing vehicles that should have been totaled to be repaired. The bill would have ultimately provided a body shop a blank check to charge whatever it wanted and deprived insurers of the ability to negotiate a fair price by threat of litigation. No other state in America requires such a onesided arrangement, and in the end, the consumers would be the ones to lose out. “This legislation was a dramatic overreach by the body shops. We hope this veto sends a strong message that enough is enough. It is time to put an end to the body shops’ legislative agenda which has caused the average repair cost to accelerate at a rate more than twice the national average.” The American Insurance Association praised Gov. Chafee for vetoing “reckless auto body legislation.” Gary Henning, Northeast region vice president for the American Insurance As-
sociation (AIA), said: “AIA commends Gov. Chafee for vetoing H. 7782A, legislation which represented poor public policy that would have led to an explosion of litigation. No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third party payers under threat of litigation. Rhode Island is already one of the most expensive states in the nation for auto body repair and this bill would have made the problem even worse. “Governor Chafee stood with consumers by taking a stand against this bill. The governor’s veto protects policyholders from increased repair costs and increased litigation.”
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Make us your one-stop shop today! www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 29
Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Non-OEM Parts Industry Meets to Discuss Patent Law Change with John Yoswick
Non-OEM versions of many more vehicle parts could be manufactured and available much sooner after a new vehicle model is introduced if backers of proposed changes to federal patent laws are successful. An update on the legislation being pushed by the Quality Parts Coalition (QPC) was among the topics at the recent Automotive Body Parts Association (ABPA) convention, held in Vancouver, British Columbia. Eileen Sottile of the QPC urged the aftermarket part manufactures and distributors attending the conference to contact Congress to support the coalition’s legislation (HR 3889), which would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Sottile said the bill would reduce the patent protection from 14 years to just 2.5 years, and the 2.5-year clock would start ticking when the automaker introduces the car, even if that vehicle introduction is in another country months before it is introduced in the United States. Sottile said the QPC wanted to eliminate all design patent protection on the parts, as called for in earlier bills it introduced in Congress, but settled for a 2.5-year moratorium because Rep. Darrell Issa (R.-Calif.), who is sponsoring the bill in the U.S. House, “felt very strongly that we had to find a balance between protecting intellectual property and allowing competition.” She said a sponsor is being sought to introduce a similar bill in the Senate. Although one has not yet been announced, the QPC has recently announced that three more members of Congress have signed on as cosponsors of the House bill. Reps. Bill Cassidy (R-La.), Walter Jones (RN.C.) and Dennis Ross (R-Fla.) are now supporting the bill At the ABPA event, Sottile outlined how the QPC’s monthly lobbying and public relations budget of about $70,000 is being funded. LKQ Corporation has donated $3.7 million, she said. The ABPA has contributed $1.5 million, mostly through an optional $50 fee that some ABPA mem-
bers voluntarily contribute for each shipping container of non-OEM parts they ship or receive. Other major contributors include Nationwide and State Farm ($115,000 each), the Automotive Aftermarket Industry Association ($99,000), Allstate ($92,000) and AutoZone ($60,000).
Certification program update Also speaking at the ABPA event, Bob Frayer of NSF International, said his organization has certified about 1,800 non-OEM parts, and is adding about 100 parts a month to that list. Launched in 2010 with the backing of the ABPA, the NSF parts certification program is in part a response to unhappiness within the nonBob Frayer OEM parts industry with the time and expense involved with having parts certified through the 25-year-old Certified Automotive Parts Association (CAPA) program. Frayer acknowledged that most of the NSF-certified parts are bumper-related parts, the first category for which NSF offered certification, but he said NSF is now certifying non-OEM plastic, sheet metal and lighting parts as well. He said EMC Insurance, Farmers, Grange and USAA are among the insurers calling for the use of NSF-certified parts. “We’re continually talking to insurance companies, and hopefully as the program grows and we have more part in the program, you’ll see more insurers writing NSF parts,” Frayer said. Unlike the CAPA certification program, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility. But Frayer said NSF subsequently pulls 25 to 30 individual parts out of the distribution stream each month for testing at NSF. “We expect by the end of this year to have over 250 parts that we’ve ac-
30 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
tually tested at NSF,” Frayer said. “If we do see problems with parts, those testing numbers will increase. We’ll be testing more parts if we see any indication that there’s something less than what was (initially submitted and)certified and being supplied to the market.” Frayer was asked at the ABPA event how it develops the specifications that determine whether a part earns certification. “The basis for the certification is always the OE (original equipment) service part,” Frayer said. “The OE service part is the standard with which we use to measure the aftermarket part.” Frayer said a committee, which includes parts manufacturers, determines acceptable tolerances for deviations from the OEM service part. “Because we can measure the OE service part and find, for example, it has a yield strength of ‘x’ or an ten-
sile strength of ‘y,’” Frayer said. “The question is: What kind of tolerance would seem reasonable to put around those numbers. So the (non-OEM) manufacturers help provide the initial guidance with that. But I can tell you what happens is as we go forward, we start testing parts. We start seeing how much variation we see in the OE parts. And that gives us a pretty Eileen Sottile good indication of whether the tolerances that we initially applied (for non-OEM part certification) are appropriate or not. I can tell you without exception the tolerances that our manufacturers have given us and worked with us to develop up front are as tight or tighter than what we’re seeing in the OE service parts.” See Patent Law Change, Page 35
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Shop Showcase
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Collision Repair is an Art Form at Uptown Body & Fender with Ed Attanasio
When people see the facility at Uptown Body & Fender in Oakland, CA, for the very first time, they’re usually pleased, confused and definitely intrigued simultaneously. “This is a body shop?” they ask. “It looks like an
Co-Owners Lisandro Allendre (left) and Giovanna Tanzillo have owned and operated Uptown Body & Fender for two decades
as 12-15 per month, in some cases. Co-Owners Lisandro Allendre and Giovanna Tanzillo started Uptown Body & Fender to create a place where its customers could come and “forget why they are here,” according to Tanzillo. Both owners are servicefocused and well aware of the fact that the customer experience is just as vital as the repair, Allendre explained, but their connection to the community is just as important. “We’re very concerned about doing the highest quality of repairs we can, but in the end, we also value our role in this neighborhood,” Tanzillo said. “Over the years, we’ve been able to help so many people by loaning our facility to non-profits and by encouraging local artists to display their works here. As a result, we’ve become a part of the creative scene here in Oakland. We believe in doing more than repairing cars, because we want to be more than just a body shop and valuable to the community.” The Uptown district is a formerly depressed industrial area in Oakland that has recently undergone a lot of changes and today is a Mecca for new restaurants, cafes, performance spaces and art galleries. Right smack in the middle of it all, Uptown Body & Fender has become an integral part of this burgeoning scene, Tanzillo explained.
art gallery or a really nice coffee house!” they say. Some have called Uptown Body & Fender the “antibody shop” and one magazine understated it as “out of the ordinary.” All of the above are accurate descriptions of this amazing shop that pipes in classical music, features a chic interior design and has an espresso/tea bar for its customers and visitors. Since it opened its doors in 1992, Uptown Body & Fender has been fixing cars Uptown’s amazing blue and gold “Car-Beast” contains all and providing its facility to of the shop’s offices and has been lauded in several publilocal non-profit and arts cations for its sleek and unique look community organizations for fundraisers, showings, performances “It’s an exciting time for this area, and meetings. If you check Uptown’s because it’s going through changes monthly schedule by signing up for and in a good way. We have a place their email newsletter online at that stores classic cars right next to us www.uptownbody.com, you’ll find and nine art galleries around us. We events such as the First Friday Art love being here, because every day is Murmur, silent auctions, jazz perdifferent and the people we encounter formances and much more—as many are wonderful, vibrant and creative in-
32 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
dividuals and we feed on that type of energy.” The body shop’s sleek and original design was created by Oakland’s Ace Architects, and it’s been praised in publications such as World Architecture News and San Francisco Chronicle
piece of Uptown’s shop and surely a conversation starter for first-time customers coming through the door. Tanzillo started her career in collision as a bookkeeper for an auto body shop in downtown Oakland in 1978. Her late husband at the time was in the insurance business, so he helped her to get a job at a busy shop and find relief from their four teenage children, she said. After learning the business while working there, Tanzillo started Uptown Body & Fender with her business partner Lisandro Allendre 20 years ago. He is a body man with more The interior of the “Car-Beast” looks more like a high-end than 50 years of experience café than a body shop office and together they’re a formagazine. An enclosure that contains midable team. She runs the office, inall of the shop’s offices is called the teracting with customers and making “Car-Beast.” It’s a steel enclosure that them comfortable about the repair looks like a truck that married a tank. process, while he operates as the This amazing structure is the centerSee Uptown Body & Fender, Page 37
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Continued from Cover
Caliber Collision
resent our continued growth into important markets like Oklahoma to meet the needs of our clients and their customers,” added Mark Sanders, Chief Operating Officer for Caliber Collision Centers. “Today’s announcement brings the total number Caliber Collision Centers to 110 locations across California, Texas, Nevada, Arizona, and now Oklahoma.” Continued from Page 27
The IN-Side
when I said there was coolant in the spark plug area. (I should have said “On top of the engine.) Katie knew what I meant, but as the phone conversations went on, the word “IN” just kept pushing the coolant deeper and deeper inside this little Ford. Katie is a wonderful gal, I got to hand it to her; she did a great job of explaining things. I’m a lucky guy to be able to work with my daughter in a family business, and even luckier to have her as an asset “IN” the office, especially when she can explain things to a customer and get good old dad “OUT” of a jam.
CARSTAR Washed 1,000 Cars for Make-A-Wish
CARSTAR turned dirty cars into dreams come true for children in need with the annual Soaps It Up! Car Wash across North America, washing over 1,000 vehicles. Thousands of volunteers across the United States and Canada washed vehicles to raise funds to help MakeA-Wish® grant wishes in the U.S., and to help find a cure for cystic fibrosis in Canada. The Soaps It Up! Car Wash raised more than $120,000 in the U.S. and Canada. Tickets for the carwash at participating CARSTAR stores in the U.S. were $10, with 100 percent of the ticket purchase benefiting the selected charities. Last year, CARSTAR set the Guinness World Record for most cars washed in multiple locations during an eight-hour period by washing more than 4,300 vehicles. “Over the last three years, the Soaps It Up! Car Wash has been able to unite the CARSTAR family across North America to help thousands of children in need,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “We are excited to continue the tradition this year and bring even more support for Make-A-Wish in the U.S. and Cystic Fibrosis Canada in Canada.”
“The funds raised by the Soaps It Up! Car Wash program is a tremendous help to us in our effort to grant the wish of every eligible child,” said David A. Williams, president and chief executive officer of Make-AWish America. “The fourth annual event sponsored by CARSTAR fosters a collaborative community event that collectively helps make the broadest possible range of wishes come true.” CARSTAR stores in Canada have been conducting the “Soaps It Up!” Car Wash for the past eight years, and this is the fourth time the program has been done in the United States. The 2009 event was the first attempt for any organization to set the record for the largest car wash across multiple locations. For more information on the “Soaps It Up!” Car Wash, to find a participating location and for official contest rules, visit http://www.carstar.com/News/SoapsItUp.aspx.
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Charley Hutton Appears at PPG Show Truck Events
Charley Hutton, one of the custom car world’s most popular painters, will appear at the PPG Show Truck display at two major Goodguys Rod & Custom Association shows this summer. Hutton appeared at the 25th Pacific Northwest Nationals in Puyallup, WA, July 27-29, and also will be at the 11th Mid-Western Nationals in Kansas City, KS, August 31-September 2 to meet show visitors and sign autographs. Well known for his laid-back and affable manner, Hutton has received an array of prestigious honors for his dramatic color schemes for high-end street rods. Accolades include Ridler Awards, Street Rod of the Year and Custom Rod of the Year awards, as well as an America’s Most Beautiful Roadster award. Hutton is also a recognized television automotive personality. He has appeared on the Discovery Channel’s American Hot Rod show with legendary custom car builder Boyd Coddington and was featured on Hot Rod TV and The Learning Channel’s Overhaulin’. He does most of his work in the Charley Hutton Color Studio in Nampa, ID, and uses only PPG Automotive Refinish products.
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On Creative Marketing
Capturing the Tough Ones with Thomas Franklin
I was recently talking with an estimator at a relatively busy shop in my area. I asked what his biggest problem was these days. He said it was the people who came in for an estimate but wouldn’t leave the car. He said no matter how much he promised, he couldn’t close the deal on many of the tough customers. It occurred to me that he might be putting too much faith in the power of words. Some people simply have a distrust of sales pitches, phony promises and fancy words. Maybe they responded to one too many TV commercial promises or a phone solicitor or one of the many over-hyped ads for products that never live up to their promises. So what do you do when you run into one of these supreme word skeptics? I suddenly remembered a Caribbean black fellow who owned a small shop in an affluent white neighborhood and had an almost perfect
record for closing jobs and getting the keys. I asked him how he does it. He told me that because of his color, he had to work harder to win a prospective customer’s trust. He knew they might doubt what he said, so he used several tactics to hold onto a prospective job. He would often bring his top body man out to give a professional opinion on what needed to be done. He might also take a prospect into the shop and show him or her some jobs in progress and a couple of recently competed jobs. If that didn’t close the deal, he had one final strategy. He would have his body man come out and actually buff out a scratch or two or make some minor repair right on the spot. Then he’d have the customer touch a buffed out area to feel how smooth the surface had become. He said when a customer would see how serious he was about going the extra mile, they would almost always let his shop do the job.
Women’s Industry Network Launches New Website
The Women’s Industry Network has launched a new website focusing on one of the organization’s foundational goals: enabling networking among women in the collision industry. The redesign of WomensIndustryNetwork.com is a result of feedback from WIN members as well as cross-industry input. The new site offers significant enhancements to WIN’s efforts to deliver support, education and networking opportunities to its members as well as the industry at large. The new social media based website presents a user-friendly opportunity to get to know the organization, its mission and activities through traditional as well as multi-media content. Visitors will be able to learn more about the organization through news, videos, and photos, along with having the ability to apply for membership and scholarships directly from the site. WIN members will also be able to network through a “membersonly” section of the site, enabling quick and easy mutual support among colleagues across the country. “As an organization, we see this new website as an opportunity to spread the word about WIN and offer our members an easy way to reach out to other women in the collision industry,” said Ruth Weniger of Airbag
Solutions, Chair of the Web Site Task Force. “One of the best ways to empower women to achieve success is to give them a solid platform and sense of community. That is WIN’s mission and we are thrilled to be able to offer this new opportunity to learn and stay connected.” The efforts of WIN’s all-volunteer Website Task Force were critical to the development and launch of this new venture. The group includes Mia Bonthron (Enterprise Rent-A-Car), Melissa Miller (CARSTAR), Jennifer Justice Haley (former Body Shop manager) and Victoria Jankowski (State Farm). Working closely with Kristen Felder and Liz Blackman of Collision Hub, the organization’s web development partner, WIN developed this flexible site to meet the needs of the fast-growing organization. WIN gratefully acknowledges Collision Hub for the generous donation of development services to make this exciting launch possible. To learn more about WIN, please visit WomensIndustryNetwork.com or contact the organization at: info@WomensIndustryNetwork.com.
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Tom Franklin has been a shop sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
It occurred to me that another reason for his show-and-tell success with some of these people is the fact that nationally, about 28 million people have some sort of hearing loss. And there are probably another million or so who have English as a second language. And then there is the possibility that the prospective customer’s mind is distracted. Perhaps he or she is still emotionally tied up in recalling the accident. It’s possible that many estimators mistakenly think that their prospective customers have heard what they were saying. And even if they did hear it, how many might not have understood what they heard? My Caribbean friend’s show and tell – and possibly touch – approach to selling the job could have somehow bypassed these comprehension limitations and reached the prospective customer on a different level. There are several major ways people receive and process informa-
tion: the usual auditory method of listening, plus visual-verbal (reading words), visual non-verbal (simply seeing an object), and tactile (also called kinesthetic). Kinesthetic people mostly respond to real-life situations or objects they are able to touch and feel. These people perceive best by experiencing or doing things. It would seem some other industries make use of this information. Miller & Associates (Dallas, Texas) excels as a premier provider of sales, customer service, and support to the foodservice equipment industry. They say they view themselves as the customer’s best conduit for information. They say they take a tactile approach to sales by encouraging touching every channel in which equipment is supplied. Through this kind of education and after-the-sale service they say they thrive with end-users like schools, chains, and institutions.
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A visual and tactile approach has also been used to improve driving skills. Usually we steer a car using mainly visual information to perceive the road’s shape and bends. One professional driving school went beyond this usual approach and developed a driving simulator with visual and/or tactile information guides. These were used to virtually present the drivers’ lateral position and to enhance their steering performance. The tactile guide improved driving accuracy more than the visual guide, proving that the tactile information of the virtual position of a car is the more useful for assisting and improving a driver’s performance. The estimator doesn’t have to get into these technical details on why a prospective customer will respond better to a visual and/or tactile presentation than to a predominantly talking approach. Just knowing it is possible to have this alternative to the usual estimate delivery should improve closing results. And there should be some satisfaction in knowing the prospect won’t be turned off by distrust of what he or she thinks may just be exaggerated sales pitches and phony promises.
Continued from Page 30
Patent Law Change
OEM replacement part is the standard Frayer said NSF uses OEM replacement parts – rather than those originally sold on the vehicle – as the standard because it has found examples of variation between OEM replacement parts and the original parts. He cited an example of bumper absorbers for a Ford Mustang. “What we found was there was a huge difference between the OE part and the OE service part,” Frayer said. “It’s obviously a change made by the manufacturer. The vehicle was introduced with one set of requirements for the absorber, and then they changed to a different set (of requirements). Our thinking is that, generally speaking, the OE service part represents what the manufacturer’s latest thinking is as to what is needed for that vehicle.” Frayer said NSF has not received a single verified complaint about a certified part. “We’ve had three complaints to date that I’ve been made aware of,” Frayer said. “One complaint was due to some shipping damage. One was a part
that was actually shipped to the body shop as a certified part but as it turned out it was not a certified part. And the third one was a part that reportedly did not fit the application. We were not able to get the part back. But through some pictures that we received, we were able to verify the lot number of the part. We acquired another part from that same lot, put it on a vehicle and verified that it did fit. So we were not able to verify that there was a problem with that part.” Frayer said anyone with concerns about a NSF-certified part can notify him directly through NSF’s website (www.nsf.org), or “there should be some indication on the part or packaging itself who you would contact relative to a complaint.” Frayer said the problem of shops receiving a non-certified part when a certified part was ordered is something NSF’s parts distributor certification program is designed to address. Separate from the parts certification program, the distributor certification was launched last year. Three companies – LKQ Corporation, PartsChannel, and most recently Michigan-based Micro Platers and Paint – have earned the NSF distributor certification, and Frayer said about a half-dozen other
distributors are in “various stages of discussion with NSF regarding getting certified.” A certified distributor can sell any parts, whether those parts are certified (by NSF or CAPA) or not. A distributor can be certified, however, only if it (among other requirements) picks up return parts from customers within two business days (for customers serviced daily); has a system of tracking returned parts confirmed to be defective; evaluates on a case-by-case basis reimbursement of a shop for labor associated with the sale of a defective part; and has a tracking and recall procedure to support a manufacturer’s recall of safety-related parts (hoods, lights, radiator supports and bumper parts). One of the keys to the distributor certification program, Frayer said, is ensuring that distributors have a system in place to ensure that a non-certified part is not substituted when a certified part is ordered.
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YouTube is a Valuable Sales Tool for Body Shops by Ed Attanasio
Many body shop owners who have already embraced social media are reluctant to use YouTube to promote their businesses. They feel likes it’s too expensive to produce videos and many claim they don’t have anything to say to their customers. But, once they try it, body shops are reporting positive results via YouTube, with increased traffic to their websites, blogs and other social media sites. They’re tracking new customers from their YouTube videos and discovering the value in these short, informational clips—ranging in subjects from “How to Spray Waterborne” to “Online Estimates” and all the way to things such as humorous TV commercials and interviews with customers, painters, body men and even front desk people. The simple fact is that most successful YouTube videos aren’t professionally produced and involve just one person talking to a camera. They’re shot with inexpensive equipment, without special effects, high-tech sound or any lighting more than sunshine or the artificial light emanating from the light bulbs in your shop. Shop’s normally use employees and friends in their videos and usually the pay is: 1) Continued employment and/or 2) A free lunch. Here are five main things to consider when producing YouTube videos to promote your business: 1) Know the Market Spend a few minutes going through YouTube to see what other collision repairers, vendors and jobbers are doing on the site. You will find the videos that do the best are generally funny, upbeat and/or offer useful information. Think either comical or instructional or maybe even a combination of both. Find out what videos in your market have attracted the highest number of views, favorable ratings, most subscribers and best comments and try to figure out what they’re doing right. 2) Use Keywords Galore The easiest (and cheapest) way to direct potential customers to your videos on YouTube is by incorporating carefully selected keywords and inserting them in the title, description, and tags of your videos. To find new keywords, use the Google Keyword Tool to devise variations of your keywords for additional tags.
3) Create Your Own Channel and Make Playlists Prior to uploading your videos, setup your own YouTube Channel, including a profile and a graphic look you devise. Always include a link to your web site, blog, Facebook page and Tweeter hash tag. Playlists are a great way to get your videos watched by a lot of people. To assemble one, add your videos to a new playlist and incorporate other peoples’ videos dealing with the same topic. Then, select a catchy name that will help people to find them through a search. By assembling a library of videos, you can attract more people and hopefully keep them engaged longer. 4) Use Multiple Calls to Action If you don’t ask, you won’t get it. Sure, they like your video, but how can you get them to respond? Here are some calls to action that are all available on YouTube and can be used to get your visitors more involved: •Please rate this video. •Follow me on Twitter. •Find me on Facebook. •Subscribe to my videos. •Visit my blog for more great videos. •Embed this on your site. •Please post your comments. •Send this video to your friends. •Check out my channel. 5) Promote Your Videos Uploading videos to YouTube isn’t enough. You need to promote them. These are some ideas: •Ask people you know to share their lists and contacts. •Embed your videos in your blog. •Email your YouTube link to your friends and contacts. •Write an article about your video and post it to article directories and forums. •Post your video on LinkedIn, Facebook, Twitter and other social media forms. So, now you’ve done a few or all of these things and here is the million dollar question—will you get any results and most importantly, will you attract new customers? Well, rest assured, because the final answer is an emphatic yes. I recently sifted through a wide range of YouTube’s body shoprelated videos and was able to find several shops in different parts of the country that have garnered a ton of views and comments. But, have they
36 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
led to new business and increased revenues? “No doubt,” Rich Villaneuva, the marketing manager at Michael J’s Body Shop in San Jose, CA said without hesitation. “Doing things like Facebook and YouTube have taken us to a whole new level. We know we’re one of the only body shops in this valley that’s doing things like YouTube as intently as we are, and that’s why our organic search results put us right at the top of all the search engines’ rankings. And by polling all of our customers, we know that YouTube is working for us.” By hiring an outside company to help them, Michael J’s Body Shop has been able to attract a lot of direct, nonDRP work, Villaneuva explained. “We’ve been working with a company called Reach Local and they’ve been excellent in teaching us and pushing us in the right direction. Lots of shops get a few DRPs and get complacent, but by doing things like YouTube and linking them to our Facebook page, blog, Twitter, etc.—we’re able to get a fair share of direct business. We never want to put all of our eggs in one bas-
ket, so we’re always looking for that ideal combination of walk-in customers and DRP repairs.” Michael J’s Body Shop has produced four videos and is currently producing more, showing their repair techniques through a series of do-ityourself online tutorials. Villaneuva is pleased to report that making the videos is virtually free, he said. “I do it all myself with a Sony camera and some very simple software to do the editing. I narrate them and don’t let them go over three minutes in length. In today’s society we know that not all of our customers will embrace this form of social media, but we want to attract those who do.” Steve Kendrick Jr., 36, is the owner of Kendrick Paint and Body with three locations in the Atlanta, GA area. He has been doing social media since day one, he said, and doesn’t understand when he hears that most body shops see little or no value in it. “My grandfather started this business in 1952, and I think a lot of shops in this country are still operating with See YouTube, Page 43
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SCRS Welcomes Matrix Electronic Measuring, Inc. The Society of Collision Repair Specialists (SCRS) is pleased to introduce Matrix Electronic Measuring, Inc. as the Society’s most recent Corporate Member. Matrix Electronic Measuring, Inc. (Matrix) specializes in advanced measuring devices, including the Matrix Wand. The three-dimensional system exposes and quantifies vehicle damage allowing a repair to be accurately blueprinted in a fraction of the time it currently takes, thereby improving estimate accuracy and reducing cycle time and supplements. SCRS attracted the attention of Matrix Electronic Measuring, Inc. through its growth and constant championing of repairers’ needs. The measurement technology company came to understand that supporting SCRS would help strengthen the industry in which it did business. “Our company values are built on supporting the collision repair industry and the repairers within it,” stated Matrix Electronic Measuring, Inc. President and CEO Jan Srack. “SCRS is a great partner in that commitment, a true advocate on all fronts for body shops.” Additionally, Matrix believes that a partnership with SCRS will help
it hone in on the needs of its own customer base. “SCRS will be a valued resource vital in assuring we’re building products and processes that meet the real needs of repairers,” added Srack. “They are truly the voice of the collision repairer, and hearing your customer’s voice is critical for any business.” Matrix’ knack for innovation aligns it squarely with the Society’s own progressive mindset. “We know staying ahead of the curve and supporting innovation that benefits repairers plays a crucial role in the success of our industry,” said SCRS Executive Director Aaron Schulenburg. “The industry needs to partner with forward-looking companies advancing solutions that address the needs of the repairer,” said Schulenburg. Matrix is one such company, and we very much appreciate their valued participation and support of the Society’s work on behalf of its members and the collision repair industry.”
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Continued from Page 32
Uptown Body & Fender
in everything around us.” Karen Sternstein with the Oakland School for the Arts holds an annual fundraiser at Uptown Body & Fender. Without the shop’s facility, her organization’s event might not take place every year, she said. “Giovanna dropped out from heaven to help us. They saved us at least $1,500, which is huge for a non-profit operating on a small budget. I’ve also been to other events held at Uptown Body & Fender, and each time it’s a professionally run operation. These people are special, because they’re not just all about the money. It’s refreshing to know that folks like Giovanna and www.autobodynews.com Lisandro are here in Oakland to give, IT OUT! so many instead ofCHECK just taking—like companies do.”
shop’s production manager, overseeing the repair of approximately 200 cars monthly. “Lisandro and I met while working at Downtown Auto Body and that’s where I learned the business,” Tanzillo explained. “I started out writing estimates and pretty soon the customers thought I was one of the owners. When we left to start our own shop, people asked us, ‘Where are you going?’ I told them there’s only one place to go from Downtown and that’s Uptown!” The shop has received a ton of business by donating their beautiful facility to non-profit organizations, but that’s not why they do it, Tanzillo said. “By allowing non-profits, other community groups and the local art community access to our facility, it To advertise definitely creates goodwill and a lot of call Advertising Sales at: people who would never know about us your affecting the industry. our Give shop come here foropinion art showson andmatters 800-699-8251 fundraisers. We don’t even need to e-mail: advertising@autobodynews.com advertise anymore, because people find out about us through these events www.autobodynews.com publisher@autobodynews.com and through our ongoing involvement
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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 37
Hey Toby!
Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@yahoo.com
Matrix Wand is a Game Changer—Part 2 with Toby Chess
This month’s column is Part 2 of the Matrix Wand article that appeared in the July, 2012 issue. See summary of the Matrix Wand’s capabilities at the end of the article referencing photos. If you missed last month’s article, see it at www.autobodynews.com.
support and from the strut tower to 2 points on the bumper reinforcement. In the distance table of the photo, the left side of the bumper reinforcement was longer that the right side. Now, you could not see any damage to the reinforcement, but it was bent according to the measurements. I asked the cuswith David McClune tomer which part of the bumper got caught on the barrier and he stated it was the driver’s side. The shop ordered both the cover and reinforcement at the same time instead of buying the cover and finding out when it was to be installed that the rebar was also bent. It should be noted that parts come from Honolulu once a week. Think of the Figure 1 cycle time savings plus the extra paper A customerwith at Autobody JohnHawaii Yoswickwork and phone calls. Dale Matbrought in his 2009 BMW convertible sumoto, owner of Autobody Hawaii, told me that when they compared the with the front bumper on the passenger seat. It seems that he caught the new reinforcement to the damaged bumper on a concrete barrier in the one, it was very evident that the part parking lot as he was backing up and had sustained damage to the left end. A 2009 Nissan Xterra had been pulled it off. While he was waiting for an estimate, I photographed the car. estimated by an insurance adjuster. Damage was to the right fender, right What I found was amazing. I measured from the strut tower to the core suspension and front bumper cover.
The adjuster wrote the estimate for an A/M fender and cover (Figure 1). The gap on the fender was 3mm larger with the AM fender than the
deed 3mm shorter. The adjustor wrote no frame time on the vehicle. The vehicle was put on a hoist and raised so that I could measure the bottom of the
California Autobody Association
Year in Quotes
Figure 4
original on the left side. I measured both fenders, and in the distance table, the length at the back of the part showed that the A/M fender was in-
Transition Planning Figure 2
with John Yoswick
See Matrix Wand Part 2, Page 44
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Collision Repair Association ofGMCA. Parts with Richard Steffen
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38 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
with David M. Brown
WMABA Labor Rate Survey Complete
The Washington Metropolitan Auto Body Association (WMABA) has announced that the results of its 2012 labor rate survey. The survey was conducted to determine a more equitable labor rate since, according to WMABA Executive Director Jordan Hendler, some areas around DC haven’t seen a rate increase in five-plus years. “So many of our members tell us that they’re very rarely, if ever, surveyed by any insurer,” says Hendler. “When they attempt to tell the carrier their new rates, they’re often stonewalled or referred to another manager. In many cases, the shop is told that their rates aren’t competitive, and [the insurer] will have to inform all of their customers not to go to that shop or risk paying the difference. This type of threat seems to be the unnecessary approach that most insurers take with any labor rate request or needed repair procedure.” Results for average body labor rate were: Baltimore: $43.64; Annapolis: $43.51; Hagerstown: $43.59; Washington DC: $43.35; Virginia Beach: $44.4; Charlottesville: $44.28; Richmond: $45.34; Roanoake: $43.34 In addition to showcasing posted labor rates throughout the WMABA
region, the project uncovered a surprisingly small number of shops that actually utilize paint and material (P&M) cost accounting programs. “I think mostly it’s a lack of understanding or going against the norm,” said WMABA President Barry Dorn. “I know that many insurers do not and will not recognize [a cost accounting program]. The old method of using a multiplier as a method of reimbursement is antiquated at best. Petroleum prices, and thus paint prices, continue to escalate; for some reason, the rates do not. The calculators take all arguments away from everyone. They’re accurate and something this industry needs to embrace.” According to WMABA, hundreds of shops participated in the labor rate survey process, although many didn’t, something that Dorn doesn’t understand. “I don’t understand the logic behind their decision,” Dorn says. “Without this survey, you’re forced to ‘go it alone,’ balance bill the customer or complain to anyone who will listen – none of which is a solution. I don’t remember the last time a carrier surveyed me. Your association did this to get a real, factual and third-party perspective rather than hearsay.”
PartsTrader Forms Industry Advisory Council PartsTrader LLC announced that it has formed an industry advisory council with the stated purpose of providing the platform’s two primary user groups (repairers and parts suppliers) with the “opportunity to provide timely and critical feedback on the platform in order to maximize the value created by the platform.” “Creating an industry advisory council is both necessary and appropriate” said Rob Cooper, PartsTrader Chief Executive Officer. “While we spoke with many collision repairers and parts suppliers during our first two years of research and initial building of our U.S. product offering, it is only through an ongoing, open engagement with our primary customer groups that we can ensure our product truly meets the needs of those using it.” The PartsTrader Advisory Council will consist of representatives from each user community. The initial group will include four to five repair facility advocates, with both multi-shop operators and single location operators being represented. Likewise, the group will include five to six supplier advocates, with OEM, aftermarket and recycled each being
represented. The inaugural group will include Michael Quinn, Collision Industry Conference (CIC) Chairman (Tucson, AZ); Steve Tomaszewski of Alpine Collision Centre (Grand Rapids, MI); Michael LeVasseur of Keenan Autobody (Clifton Heights, PA); Lou DiLisio of Automotive Industry Consulting (Mt. Kisco, NY); Amber Elenbaas of Pete’s Auto Parts (Jenison, MI), and Christopher Northup of General Distribution Consultants (Glendora, CA). All of these individuals are active in various industry associations and advocacy groups. “We were very careful in choosing who to invite to participate in this initial group,” said Dale Sailer, PartsTrader Vice President of Business Development. “It was critical that we assemble a group of individuals who will not be shy about expressing their opinions and are willing to hold us accountable for our stated commitments to the industry, while also being forward thinking and business savvy. We think we’ve put together a group that will be very demanding of PartsTrader on behalf of their peers, to the ultimate benefit of both user groups.”
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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 39
Part 2: Western Schools Prep the Future of Collision Repair by David M. Brown
Last month in Autobody News, I wrote about two schools in Arizona and California. This month, I highlight other educational programs in the West that are providing outstanding preparation for careers in the collision repair industry. In Arizona, a number of high school collision programs are working toward NATEF certification, explains Mike McAfee, director of Education for the Phoenix-based Arizona Auto Dealers Association (AADA). He is also state manager for Automotive Youth Education Systems (AYES). McAfee notes that AADA works with the Arizona Department of Education, specifically its Career and Technical Education (CTE) Department, providing job shadowing and internship opportunities for collision as well as mechanical automotive students. “The organization also sits on many automotive advisory boards at the secondary and post-secondary levels, serving as a business and industry representative and partnering with our educational institutions,” he says. Those high schools are Paradise Valley High School, Paradise Valley; Phoenix Metro Tech, Phoenix; Tucson High School and Sunnyside High School, both Tucson. “Most of the high schools I’m familiar with use the I-CAR curriculum for collision, which is continuously updated to include the latest industry standards,” says McAfee, noting that Yavapai College in Prescott, north of Phoenix, is also pursuing NATEF certification. Another post-secondary program in Phoenix is Maricopa Skill Center, a division of GateWay Community College, one of the 10 Maricopa Community Colleges. Maricopa County includes Phoenix, Scottsdale, Glendale and other municipalities. Celebrating its 50th year, MSC offers Auto Body Basic Metal Repair and/or Refinishing among 30 other vocational training certificates, said Kristina Scott, manager of marketing and recruitment services for the school. This year, two instructors teach 25 students in an open-entry/open-exit program, so students can enroll anytime during the year. “Due to the flexibility and our competency-based programs, students can also graduate at any point during the year once they demonstrate that they have the skills necessary for today’s workforce,” Scott says.
The Maricopa Skill Center is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. Successful completion of the program also ensures that graduates will leave with I-CAR points in six areas, in addition to their certificate of completion from Maricopa Skill Center. “Our instructional team works with advisory councils to determine what industry wants from their employees and ensures that our programs offer exactly what an employer is looking for,” she says. “The goal is to get students the training they need in a short period of time so that they can quickly get back into the workforce.” Students choose between Basic Metal Repair or Refinishing or do both. “Our students gain experience in welding, pushing out dents, repairing plastic bumpers, and removing and installing bolted-on parts,” she explains. All MSC programs are short-term certificatetraining programs that take about a year or less to complete. On average, a fulltime Auto Body Basic Metal Repair student will complete the program in 27 weeks. If a student is pursuing a certificate in Basic Metal Repair and Refinishing, the average time is 48 weeks, she says. In Nevada, the Carson City campus of Western Nevada College has two classes scheduled for the fall 2012 semester: Automotive Collision I and Automotive Refinishing I, says Edward Martin, chairman of the WNC Technology Division. Current NATEF certifications are in brakes, steering and suspension, electrical and engine performance. Also at the secondary and post-secondary level, the California Central County Occupational Center in San Jose is NATEF-and ASE-certified in Collision Repair and Refinishing. As a Career Technical Education Center, CCOC attracts both high school and adult students with approximately 3040 annual graduates of the two-year program. Students are not placed from the school but are often referred to job opportunities when available, explains Nathan Chukes, auto body refinishing instructor and the advisor for the AYES Program for collision repair. “We educate students with the intent that they will be prepared for entrylevel work in collision repair,” says Chukes.
40 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
“Our curriculum covers auto body industry standards that will give students the skills needed to keep up with the demand of a high-energy shop.” CCOC is the only school that offers collision repair in six school districts in the South Bay area, Chukes says, noting that the program has been offered for more than 35 years. In the last five years, CCOC students have won three gold medals and one silver for refinishing and two gold and one silver medal for repair at the SkillsUSA state championship competition. One of California’s recently started programs, Collision/Refinishing Technology, is offered at the Sacramento campus of WyoTech, which debuted the program in October 2006. Two other WyoTech campuses, Laramie, WY and Blairsville, PA, have the Collision/Refinishing Technology program, following the same structure. The program includes Collision I and II and Refinishing I and II. Students learn MIG welding, external sheet metal straightening, body filler usage and abrasives, bolt-on panel replacement and alignment as well as disassembly and reassembly processes.
In the mechanical repair section, students learn about basic electrical and vehicle electrical systems, supplemental restraint systems, engine cooling and HVAC systems and steering and suspension. Also covered are frame and unibody structural repair, including vehicle dimensioning utilizing both mechanical and computer measuring systems, vehicle straightening processes and procedures, welded panel replacement and resistant spot welding. The refinishing courses offer students the opportunity to learn about personal and environmental protection, how to work safely with paints and chemicals, spray booth operation, types of paint and paint chemistry, paint mixing and mixing room management, spray gun operation and paint application, surface preparation, masking techniques, paint surface detailing and care of finished surfaces, plastic parts repair, spot repairs, color match and blending, damage analysis and estimating. All WyoTech programs are accredited by the Accrediting Commission of Career Schools and Colleges, and WyoTech is a member of the I-CAR Training Alliance.
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Continued from Cover
PartsTrader Pushback
“We only have 158 stores on the pilot that are actually using the program,” Avery said. “So there’s a lot of people out there that are starving for information. That information comes from a variety of sources. It comes from your friends, it comes from associations, it comes from me, perhaps in the press, and of course press releases and blogs.” “We give [repair centers] $3 billion to purchase parts annually,” Avery said. “We handle 35,000 claims per day. We are a mutual company, which is owned by the policyholders. We have a moral and legal obligation to make sure that money is spent in a prudent manner. We are not interested in short-term gain for our customers. We are interested long term for our customers.” Avery said that State Farm did not expect a dramatic decrease in cost of repair or dramatic changes in cycle time, “but it probably will happen.” He said that State Farm is not a company that routinely asks repairers for discounts on repairs. “We did not expect open arms,” Avery said. “We know change causes ripples. We know we are getting into your business. However, in a previous test with OEConnection, we maintained the repair facilities’ parts margin. We know how important that is.” He added that “there is no standard platform for parts, and we think it will benefit the insured.” Avery said that after putting out a request for proposal and selecting PartsTrader, they spent over a year developing the format. “We asked repairers, dealers and suppliers to help us build this tool, and they did. We just concluded our feedback phase last week with repairers and are evaluating that now.” He also stressed what the insurer did not expect: • “We didn’t expect e-mails, calls and faxes with misleading information.” • “We didn’t expect press releases mentioning non-Select Service repairers who we didn’t have contact with.” • “We didn’t expect to lose 17 facilities in one pilot area who never tried [PartsTrader].” • “We didn’t expect statements from Select Service shops that never used [PartsTrader].” Avery emphasized that State Farm is still in pilot mode, concluded the
feedback phase from all the pilot shops during the week of July 9–13 and are now in an evaluation phase. Avery concluded his presentation by saying, “It boils down to trust. Those who repair cars make a decision about who they want to partner with. State Farm is driven by the customer. Those who fight to maintain the status quo will become irrelevant fast. I don’t think we were number one for 90 years by beating up our business partners.” “Good businessmen and women need to speculate,” Avery said at one point. “They need to look forward to determine what the next step is. What’s dangerous is to speculate on faulty information, or misinformation.” PartsTrader CEO Cooper followed Avery with a brief presentation showing how the program works. He said he understood the skepticism of the industry, but wanted to assure repairers that PartsTrader’s interests were in the right place. “We’re 100 percent committed to making this product the best for parts procurement, and making it a win for repairers,” said Cooper. Cooper then ran through a demonstration of the product and commented specifically that: • The suppliers in the system are in there because the repairer invited them to join. • They have integrated with the three information providers (CCC, Mitchell, Audatex). The files they get from them are EMS, but they convert them to BMS. Therefore, they’re not seeing any information that is not directly applicable to parts. “The two functions of PartsTrader are parts sourcing and ordering,” said Cooper. “You can do direct order now if you want, but if you do have time, the expectation is that you’ll get quotes. But it’s completely under the repairer’s control.” About 20 repairers, association leaders and consultants spent the next 90 minutes questioning and criticizing State Farm’s pilot program. None of them spoke in favor of the program. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, was the first person to address Avery and Cooper. He said other parts vendor companies chose to compete by providing a value proposition, and let the customers choose to use their service based on merits and value. He emphasized that the backlash against PartsTrader isn’t about the prod-
uct so much as it is how it entered the market. “SCRS and our members aren’t opposed to [PartsTrader] for the sake of opposition. We don’t have an issue with electronic parts ordering, [our members] already do that. We believe there are a large number of solutions out there that already incorporate electronic parts ordering. We don’t oppose efficiency and process improvement… we don’t oppose innovation.” “What we do stand in opposition [to is] when insurers mandate solutions that don’t bring solutions to anyone other than themselves and the benefit isn’t derived or understandable by anyone other than the person mandating it,” he said. “For a company who has promoted open platforms in other areas, who’s taken estimates from all three carriers, who’s worked hard to make sure the repairer had the opportunity to use whatever systems and processes and solutions they wanted, this is a step backwards for [State Farm]. “Companies here choose to compete: here’s our product and here’s what it does,” said Schulenburg. “The real issue here isn’t that PartsTrader has a solution; it’s about how it came to the market. The largest insurer hired [PartsTrader] to come up with a solution for them – that’s the problem. “We won’t refuse [the product] for the sake of refusing. We don’t oppose innovation. We have yet to see the benefit for repairers being forced to use it. When insurers mandate solutions where there is no tangible benefit for anyone but themselves, I think it’s a step back for State Farm. It appears you entered into the market knowing what you wanted to do regardless of repairer feedback. The need doesn’t seem to be there on the repairer side, but it does seem to be there for insurers.” Dave McBroom, president of the Florida Auto Body Collision Alliance and also representing the Florida Automobile Dealer Association, said bluntly that the program is a failure. “I’ve spent extensive time with shops and vendors, some involved with the pilot program and some not, that are trying to make a decision on what to do,” he said. “I’ve spoken to many who have said it is inefficient, cumbersome, creates additional work, and requires additional personnel at shops and at vendors. Most are losing gross profit dollars. Some refuse to participate in the bidding process. Used parts bidding is a total disaster. This is not good for this industry.”
Dan Hunsaker, owner of Dan’s Paint and Body in Tucson, AZ, introduced himself as a “Select Serviceaholic.” He said his shop was one of the first to pilot the program four months ago, and since then he has realized it doesn’t work. “I feel like the donkey that got dumped into the Kentucky Derby,” said Hunsaker. “It’s not efficient. How can I improve on a one-click efficiency? I currently electronically upload my parts order. I have my vendors. Everything is done instantaneously. Now I have to wait for an hour and monitor the program. My big problem is that my parts guy is on that [PartsTrader] screen six hours a day off and on. That represents $50,000 a year out of my pocket to administer that program.” Hunsaker concluded by saying, “It’s sad that this has happened. In our industry, [State Farm] was the one insurer we could count on. Now, we don’t trust State Farm like we did.” Ron Reichen, a Select Service shop in Beaverton, OR, drew applause when he told Avery, “ I don’t go down to State Farm and say I need to evaluate your underwriting department because I see a lot inefficiencies. The reality is: Leave us alone. You guys sell insurance. Let us repair cars.” Rick Starbard, president of the Alliance of Automotive Service Providers of Massachusetts (AASP/ MA), as well as president of AASP National and owner of a Boston area body shop, said “When insurers meddle in relationships between us and our customers, they cause irreparable harm to our industry. This product is redundant. We can do everything shown today through our own management systems. We survive on parts profits. What we get for labor is peanuts.” Stating that the new parts program would negatively impact repairers’ parts profit, Starbard continued, “In a state like mine, we survive on parts mark-up. I suggest repairers run this agreement up the flagpole with their accountants.” Tony Passwater, president and owner of AEII Consulting, said the program is not needed because the parts procurement model in the United States is efficient and repairers have trusted relationships with existing suppliers. He also said that although it is only a pilot now, it could evolve into a big problem for repairers, likening it to the evolution of the direct repair program model. See PartsTrader Pushback, Page 45
www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 41
Former Rhode Island Auto Body Shop Owner Wins $3.27 Million Verdict Against Insurers by Melanie Anderson
Ten years ago, former Cumberland, RI auto body shop owner David F. Miller was wrongly accused of insurance fraud, and after being handcuffed and arrested in front of customers and his children, and losing his license,
insurance fraud. However, all the charges against Miller were dismissed by the Office of Attorney General in 2005 when it became clear that AMICA and Met Life had helped instigate the charges, and had withheld documents that would have undermined the case against him.
David Miller in front of his body shop that his children now own and operate
business and home, all charges against him were later dropped. In an ensuing six-year legal battle to clear his name, Miller finally found justice on May 29 when a Superior Court jury in Providence, RI returned a verdict against two of the country’s largest automobile insurance providers, finding that Metropolitan Property and Casualty Insurance Company (Met Life) and AMICA Mutual Insurance had acted with “malice” and “bad faith.” In finding Met Life and AMICA liable for abuse of legal process, the jury awarded Miller $3.27 million, which includes interest, compensatory damages, emotional distress, legal fees and punitive damages. Miller is now 60 years old and battling a rare form of cancer. According Miller’s attorney, Michael Kelly of the Law Offices of Michael A. Kelly, post-trial motions are scheduled for the end of July “and then we’ll see whether there is an appeal.” On May 29, the jury concluded that the auto insurers acted with “wickedness” when the companies instigated the filing of criminal charges brought against Miller by the Rhode Island State Police in 2002. At the time, Miller was charged with obtaining monies under false pretenses and
Miller’s suit contended that Metropolitan and AMICA abused the legal process by withholding certain information critical in the case from the State Police and the Attorney General. The jury returned a verdict which found that Metropolitan and AMICA had both intentionally withheld vital information during the course of Miller’s criminal prosecution and that the companies were liable for an abuse of process. “The jury found that the insurance companies withheld from the state police and the Attorney General’s Office the fact that cars were not required to be fixed in accordance with their estimate, and number two, that their appraisers were cost-shifting,” said Kelly. “The testimony from the appraisers from both companies was that they would write for newer parts when they knew it wasn’t going to be replaced they wrote for that part to increase the overall estimate to compensate for the low labor rates. Labor rates were fixed by the insurance company. Of course, they wouldn’t negotiate, and since they have an anti-trust exemption, they can just fix the rates, and they all had the same rates and they were all artificially low to try to either force customers to go to preferred shops and/or to try to
42 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com
get independent shops to become preferred shops,” Kelly continued. “The jury specifically found that insurance companies didn’t tell the state troopers about the cost-shifting or about the fact that the cars weren’t fixed in accordance to the estimate because body shops weren’t required to. And they didn’t tell that Mr. Miller was sending documents to the insurance companies indicating he wasn’t fixing the cars in accordance to the estimate because the labor rates were too low,” Kelly said. “The jury agreed with us that had the state troopers and the Attorney General’s Office been informed of these facts, the troopers on the stand said they would have handled the case completely different.” As far back as 20 years ago, Miller had been outspoken about what he considered unfair practices by the insurance industry. The testimony and evidence presented during the threeweek trial established that Miller had been a leading advocate in the state legislature for fair reimbursement to auto body shops by insurance companies for many years. Evidence in the case proved that Miller’s advocacy led
to an extremely adversarial relationship with Met Life and AMICA over several issues, including fixed labor rates paid to auto body shops in Rhode Island by insurance companies. “I think that it is clear here that the insurance companies, Met and AMICA, went after Mr. Miller because he was pushing to change the labor rate in the legislature, and they couldn’t find anything that he was doing wrong, so they went to the state police and made scurrilous allegations that weren’t true to get the state police to do their dirty work,” Kelly said. “Unfortunately, because of the withholding of information, the state police went with their suggestion of a sting, and it is truly a tragedy for Mr. Miller. He lost everything. He lost his business, his license, his house, and everything else he owned, cars, everything. He had to transfer his auto body license to his son. His business went down approximately 70% immediately after the arrest.” In its decision, the jury found that AMICA and Met life had acted “with such willfulness, wickedness, or recklessness that amounts to criminality, which for the good of society and
warning to the defendant, ought to be punished.” In awarding punitive damages, Kelly said it’s always unusual in the state of Rhode Island for a jury assesses punitive damages because the jury has to find conduct that is malicious, wicked and which rose to the level of criminality. “I hope that the jury’s decision will give more individuals and small business owners who have been wronged by corporate behemoths like AMICA or Met Life the courage to keep fighting against their corrupt tactics,” said Miller after the decision. “It may have taken me years to defend my reputation, rebuild my business and prove that I did no wrong, but this verdict vindicates me. The jury’s verdict brings the real wrong-doers in this case - Met Life and AMICA - to justice,” he added. Looking back over the past 10 years about a case that has consumed his life, Miller said he is relieved it’s finally over. “My life was in limbo. I got cancer, I went broke. I can’t count the ways it affected my life,” he said. “I want to pick up the pieces and get on with my life.” Today, Miller’s Auto Body is run by Miller’s children, Candace and David.
Continued from Page 36
Continued from Cover
that ‘50s mentality. In the past, if you worked hard and did quality repairs, you’d succeed. But now, with all the competition and technology out there, it’s a different world. If you’re not into social media, computerized systems that help your business and things like YouTube, you’re already a step behind the competition.” By producing 16 videos, Hendrick Jr. is dominating YouTube, especially in Georgia. “When people search through YouTube for a body shop in Georgia or Atlanta, they’re going to find us first and that’s so important. We hired a person on a part-time basis to handle all of these things, from Facebook to Twitter and creating a YouTube Channel and it’s paid for itself many times over.”
“I don’t know the best way to answer that yet because I don’t believe we have all (the shop feedback),” Avery said. “And we are implementing changes in the pilot that now puts me in a position of needing to go back and ask, ‘Now after that change, what are your results?’ So it’s sort of a fluid process. I’m not sure how to answer your question yet, although we will respond when I have an answer. But at this point I don’t have much.” Avery and PartsTrader CEO Rob Cooper each spent about 15 minutes at CIC explaining the reasoning behind the program and offering a demonstration of how it works. Avery said his company was surprised that 17 Select Service shops in the Memphis, Tenn., market dropped the program without trying PartsTrader, a decision he felt could be have been based on some of the inaccurate or misleading information he’s seen in press releases and blogs. Cooper reiterated that shops control which vendors have an opportunity to offer price quotes, and that shops can even use the system to order parts directly, bypassing the quote process. He said now that vendors in some of the test markets are becoming familiar with the system, the minimum bid time will be reduced from one hour to 30 minutes. He said that—along with improvements in integration with the estimating and management systems—will improve the efficiency of using the PartsTrader system.
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PartsTrader Defends
George Avery to chair CIC George Avery was named as the next chairman of the conference. He becomes the 16th person to chair the quarterly gatherings of shops, insurers, automakers and vendors, since its inception in 1984. His first meeting as chairman will be next January 23–25 in Palm Springs, Calif. In explaining the choice of Avery, which is made by those who have previously chaired CIC, Jeff Hendler said he and the other past chairs look for someone who has the skills, experience and CIC involvement to “direct CIC in the fashion it needs to be directed.” He said such qualifications are more critical than the candidate’s employer as that can (and has, at times) changed during a chairman’s 2-year term.
“We’re not choosing companies. We’re choosing people. And I think we’ve chosen a great one,” Hendler, who serves as the CIC administrator but was also its chairman in the late 1980s. Avery acknowledged the timing of the announcement at the same meeting at which he faced strong criticism for his company’s pilot test of PartsTrader made it somewhat of “an awkward day.” But he asked CIC attendees to keep in mind his reputation of being approachable and an active CIC participants. “I know we don’t all agree, but I’ll leave you with this: You can’t shake hands over the phone. And CIC is an opportunity where those with whom we disagree have a chance to shake hands. We have some spirited discourse, of course, which I think is healthy, but it’s something we work through together, and I hope you see and will support my desire to move CIC forward as a place that everyone can come together and express their opinion and make the industry better.” Avery is not the first insurance company representative to chair CIC. Joe Landolfi holds that distinction, chairing the conference in 1995 and 1996 at which time he was an executive with Kemper Insurance. Roger Wright was working for CARSTAR when he began his term as CIC chairman in 2003, but joined AIG Insurance several months into his term. Avery will succeed Mike Quinn, who also had an employment change during his term, joining Caliber Collision Centers this year after selling the consolidator his chain of Arizonabased shops. Quinn will reside over his final CIC meeting as chairman on October 31 and November 1 in Las Vegas. John Yoswick, is based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
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Continued from Page 38
Matrix Wand Part 2
all of the new parts still had a negative caster. I found that the right side was back at the lower control arm mount-
ized the supplement. The car was pulled and realigned that Friday and was delivered the following week. The insurance company had to pay for an additional eight days of car rental and all of this could have been
hooked up to the office thru the Internet. Rob began looking at my picture and noticed that I used the fender
Figure 8
the vehicle and determined that the right rail was down by 10mm. The problem was there was no damage to the rail. I proceeded to call Rob Bailey (the matrix guru) about this inaccuracy. The Matrix computer can be
Figure 5
Figure 9
Figure 10
holes on the passenger side (fender was already removed), but the top of the bolts on the driver’s side. He said that computer was picking up the difference between the depth of the hole and the top of the bolt. He told me to either remove the bolts or install the bolts and take another photo and remeasure. I installed the fender bolts on the passenger’s side and rechecked the measurement and this time there was no sag in the right rail. By the way, I measured the bolt head and sure enough it was 10mm high.
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Figure 6
RX-8 2012
TEXAS Figure 7
ing brackets by 10mm. I proceeded to measure the under hood and bumper reinforcement. The photo showed that the vehicle was 10 mm short on the right rail. The adjustor was called on a Wednesday, and we sent him the data for additional frame labor and another alignment. He called back and author-
avoided with a Matrix photo. I left the Big Island on a Thursday morning. The next day I went to Island Fender and met with Van Takamoto, the owner of the shop. We photographed a 2008 Toyota Prius, which was in the shop for a fender replacement only. I measured
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Here are some of the types of measurements that can be performed with the Matrix Wand: • Measure width, length and heigth. (Figure 2) • Point-to-point measurements and compare with Mitchell Data Inc. (Figure 3) • Measure under hood, bottom of vehicle to determine damage. (Figure 4) • Measure under hood damage and compare to factory specs. (Figure 5) • Measure door openings and “B” pillar positions. (Figure 6) • Measure engine cradle for damage. (Figure 7) • Measure strut, knuckle, spindle and lower control arm for damage and also determine what parts are bad without guessing. (Figure 8). • Measure if a sub frame has shifted, and this procedure could be added to the estimate at the time of tear down and not when it goes to the alignment shop. (Figure 9 and 10)
The only way that you can appreciate this revolutionary piece of equipment is to see it in operation at your shop. Either call me at 310-995-7909 or email me at tcspeedster@yahoo.com and I will set up a demo for you.
America’s Top Auto Students Crowned at SkillsUSA Competition Held in Kansas City Hundreds of automotive students gathered in Kansas City, MO for a showdown for gold. Armed with their tool boxes and spray guns, they represented the top collision repair and automotive refinishing students from around the country. SkillsUSA returned to Kansas City on June 23-27, 2012 for its 48th annual National Leadership and Skills Conference, a showcase of career and technical education students. Quality career and technical education was the centerpiece of the conference. More than 15,000 students, teachers, education leaders, and representatives from more than 1,100 national corporations, trade associations, businesses and labor unions participated in the event with 94 hands-on skill and leadership competitions. SkillsUSA organizes this event, and it is considered the single greatest day of industry volunteerism in America every year at an estimated cost of more than $35 million. Each SkillsUSA Championships contestant is a state-level gold medalist. When the dust cleared, four students claimed the gold medals, taking home the country’s top honors in their competitions, along with scholarships, prize money and new tools.
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Automotive Refinishing Technology The automotive refinishing technology competition included surface preparation, spray gun operation, paint mixing, matching and applying, solving paint applications problems, determining finish defects, causes and cures, and utilizing safety precautions. The winners were: Spencer Cook (Gold) - High School, Mid-Coast School of Technology, Rockland, ME Derek Meehl (Gold) - Postsecondary, Saint Cloud Technical College, Saint Cloud, MN James Chesser (Silver) - High School, Lewis & Clark Career Center, Saint Charles, MO Aaron Dressler (Silver) - Postsecondary, Penn College of TechWilliamsport, PA Nathan Aguiar (Bronze) - High School, Diman RVTHS, Fall River, MA Jessica Crowley (Bronze) - Postsecondary, College of Western Idaho, Nampa, ID “I plan to initially work on street cars, but would really like to get into custom refinishing,” said Meehl. “I’d like to be like Chip Foose.” Collision Repair Technology In the collision repair competition, stu-
Continued from Page 41
PartsTrader Pushback
John Mosley, who wrote a personal letter to Avery in May to express his concerns over the parts program and thank him for unifying collision repairers over their opposition to it, was at the CIC meeting representing Alabama repairers. He said he had continued confusion over the program details even after Avery and Cooper’s talk. “I’m still as uninformed and confused as when I got here,” said Mosley. “Is this something that we’re going to have in all states? Have you already signed a contract?” Avery responded, “To me, there’s a difference between a test and a pilot. You test something to see if it will work; you drill a pilot hole before you’re going to drill. So a pilot does suggest that your intent is to continue to move, but you have to make sure that pilot hole is in the right place and is right. We’re going to continue to work the pilot in the four pilot areas and fix these things that are clearly deficiencies, and then we will evaluate whether that will be something company-wide for Select Service repairers.”
dents were tasked with straightening, welding, repairing a plastic bumper and conducting a structural analysis. There also was a written test on estimating and structural analysis, plus an ASE exam. The winners were: Jason Lucius (Gold) - High School, Vanguard-Sentinel Career & Tech Ctr - Sentinel, Tiffin, OH John Stanton (Gold) – Postsecondary, Kaskaskia College, Centralia, IL Jackson T Winslett (Silver) - High School, Alvin High School, Alvin, TX Michael Annis (Silver) – Postsecondary, Washburn Tech, Topeka, KS James Johnson (Bronze) - High School, Center of Applied Tech North, Severn, MD Owen Boyle (Bronze) - Postsecondary Penn College of Tech, Williamsport, PA Begun in 1967, the SkillsUSA Championships has grown from 54 competitors in three contests to more than 5,600 competitors in 94 handson skill and leadership contests this year. SkillsUSA adds contests to the SkillsUSA Championships to meet the demands of new and expanding occupations. SkillsUSA affiliated instructional programs represent 130 different occupational areas.
TIAA Hosts SCRS Aaron Schulenberg at Meeting
On July 18, the Texas Independent Automotive Association held its monthly meeting, featuring executive director Aaron Schulenburg of the Society of Collision Repair Specialists. Schulenburg spoke to approximately 40 members in attendance about the Collision Industry Conference that occurred earlier in the week and focused on the issues surrounding State Farm's PartsTrader program. “Aaron updated the shops on all the comments being made by other shop owners. The important point is what this move means to the collision industry, and that other insurance companies can potentially start producing a similar program,” said Hunter Hooge, TIAA Membership Director. In other matters, the shop owners discussed how important collaboration is between associations and other shops as well. “Aaron made the point that if shops make each other better it makes the industry as a whole, stronger. This leads to the ultimate objective of giving customers satisfaction,” Hooge said.
www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 45
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
With Estimates, Insurers See the Emperor’s Underwear with The Insurance Insider
Emperors and underwear? Referencoften say, “The damage is the daming royalty’s skivvies in an article age,” “The estimate is the estimate,” about body shops? Everyone in the “The cost to repair is the cost to rekingdom thinks with that theChasidy shops repreRae pair.” Sisk I say that the royal underwear is sent the peasants, while insurers are in need of cleaning. the heirs to the throne. Rumor has it The customer dictates the cost to that a CEO from one of the top three repair. It’s conceivable that we could insurance carriers in the U.S. is a sec- have a dozen different estimates from ond-cousin to the Queen of England. the same shop with different bottom lines to repair the with Chasidy Rae Sisk same car. Sadly, you know that I’m right. I also know that Santa Claus isn’t real and the Wizard of Oz is a phony. I looked behind the curtain. I’ve seen. We’ve seen. We all know. Here’s why you know I’m right. If the shop participates in a direct repair proIf that’s true, as royalty, there are gram, the labor rate is going to be $x privileges that we insurers are entitled in accordance with the contract. The to that quite frankly shops aren’t. shop writes x hours to repair a given What is it exactly that us royals get panel, x to cover the car, and x to that most of my readers don’t? I’m not blend the adjacent panel. talking about “money,” although I If the shop isn’t on a direct repair suppose there may be some merit in program, the labor rate, labor hours, that response. cover car, blend time and P-pages will What insurers get is tons and tons all be inserted into the estimate at a to this Southwest Edition? of data. If we don’t have it, we can get different amount, say, x + y. it. Just like that gentleman in the red If the shop is working with an insuit who is recognized by his “Ho, ho dependent appraiser and it’s someone ho,” we know if you’ve been naughty they know, it may be x + y + z. autobodynews.com or nice. We also know who writes a If the shop is doing work for a good estimate and who doesn’t. fleet account, such as rental car comWe also see the Emperor’s Un- pany, it will be x – y – y - y. nessderwear. with That’s Promote your with right, we see business your If the customer is paying for the BVDs, Fruit of Looms, orarticle what- featuring work out of their own pocket and the featuring anthe exclusive ever your brandyour of choice is. Weor seeservices. shop is slow, it’s going to be x – y. If services. products and know what you don’t want us to the shop is busy and doesn’t need the know. We know that the customer work, it’s back to x. matters—and I’m not referring to cusIf the customer happens to be a tomer service. I am referring to the neighbor or friend, it’s going to be x – fact that the customer matters when y – z. or details! Call for details! you write an estimate. And if the customer is your is the one mother-in-law, it’s going to be x + y – 251 I know that the estimate 800-699-8251 thing that shops claim is more holy z, plus a free detail. and pure than the Pope himself. Shops I could continue, but the point is
Northeast News Shop Showcase
made. The customer matters. But in case it’s still not clear, let me drive it home faster than a body man priming a 10-hour repair on a quarter panel after the shop has been notified that an adjuster is coming out to see the vehicle. That “8-hour repair” on a quarter panel becomes five hours for the rental car company, two hours for you mother-in-law, six hours to your friend, nine hours if an independent appraiser comes to your shop, 10 hours if the insurance company is reducing the refinish time on a repaired panel, 11 hours if you know the reinspector from the insurance company is going to hack the estimate, and seven hours if it’s a customer-pay job.
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How do we know this? Data, and lots of it. Almost every decision you make when writing an estimate is decided by who is paying the bill. This is the sad reality of the business. The damage is never just the damage. That’s the “Emperor’s Underwear” in this industry that nobody is supposed to see. And the actual cost to repair that vehicle? “Well, it all depends.”
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
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