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New Mexico Shop Owner Ordered to Pay Back Customers for Poor Repair Work Robert “Bobby” Mitchell, prior owner of A Reliable Engine Rebuilder in New Mexico, was ordered by the District Court of Albuquerque to pay
Robert “Bobby” Mitchell was ordered to pay back customers thousands of dollars for poor repair work
back customers thousands of dollars for poor repair work. The Consumer Affairs division of the Attorney General’s Office of New Mexico presented 58 affidavits from customers on June 30 claiming Mitchell took their money, but did not properly repair their cars, or sometimes never did any work at all, according to koat.com. Second Judicial District Judge Nan Nash gave Mitchell the opportunity to challenge the affidavits; however, he only challenged two. According to koat.com, Mitchell See Poor Repair Work, Page 12
Service King Has a Good Month With a String of Positive Announcements Service King Collision Repair Centers wrapped up the month of June with a string of positive announcements. Along with continued expansion across the country, the MSO was named the No. 1 Best Place to Work in the very large business category at both the Dallas and San Antonio ceremonies, held June 18 and June 25. This is the 10th consecutive year that Service King has appeared on the Dallas Business Journal Best Places to Work list and the third straight appearance on the San Antonio Business Journal list. “This is a wonderful recognition for the hard work and family culture that our teammates create on a daily basis,” said
Chris Abraham, Service King CEO. “We are extremely proud of the Service King culture and are humbled to represent the collision repair industry as one of the most rewarding career options in Texas. Service King has a rooted history in the San Antonio community, and it’s very special to be recognized in our hometown of Dallas.” Service King also unveiled a new recruiting and development effort with the launch of the Service King Apprentice Development Program on June 29. The program offers a 52-week training course developed to prepare incoming technicians for careers at ServSee Service King, Page 12
VOL. 33 ISSUE 8 AUGUST 2015
Arrest Made in Oklahoma City After Shots Fired in Body Shop Argument, Suspect Faces 6 Felony Counts A suspected shooter is in jail after allegedly firing into a southwest Oklahoma City, OK auto shop, according to koco.com. There were six people inside, including children, and no injuries were reported. Genaro Cuadros was arrested on June 1 and is facing six counts of shooting with intent to kill and is being held on a $128,000 bond, according to news9.com. The shop is located near Southwest 29th Street and Agnew Avenue. According to news9.com, the owner said he hired Cuadros to do odd jobs around his shop but then became the target of his rage. He does not want to be identified because he fears retaliation by Caudros and his family. Gary Knight from the Oklahoma City Police said that nobody
was hit by the gunfire. One man, who was hiding in the shop, described the shooting. He was asked to be known as Mike to protect his identity. Mike said that he shot the gun maybe three or four times, hid and shut the door. Police said the shooting was over Genaro Juarez a dispute about a Cuadros is facing car payment with six counts of shooting with one of the owner’s intent to kill of the auto body shop. Knight said that she had sold him the car and he had not been making the payments promised. According to the police report, See Arrest Made in Oklahoma, Page 6
NACE Moves From Detroit to Anaheim, August 2016
First Major Collision Trade Show in California in Well Over a Decade by Autobody News Staff
During the NACE-CARS expo in Detroit July 21–25, ASA executives confirmed that the next NACE expo will occur next August in Anaheim, CA. The announcement was greeted with relief by many in attendance. Despite a wellorganized expo, very well-attended MSO Symposium (700 attendees), a major connected car technology and telematics forum, and demonstrationrich expo floor complete with active spray booths and occasionally running vehicles, the show failed to attract many more than the approximately 6,200
See NACE Moves West, Page 17
Donny Seyfer (l), CARS Chair, and Dan Risley, ASA President, beside hockey goalie helmet painted by air-brush artist Ray Bishop. The helmet was auctioned to help to raise money for breast cancer fundraising and will be displayed at ASA headquarters
Additional NACE/CARS 2015 Coverage in this Issue...
NACE 2015 Entertains, Informs and Wows (photo montage) p. 20 ● MSO Symposium During NACE Include Claims Management Models, Future of DRPs and Financing Options p. 18 ● Jon Kosmoski from Valspar’s House of Kolor & TV Reality Star KC Mathieu Demo Kandy Painting p. 40 ● Behind-the-scenes Look at MI Factory Where Ford F-150 Is Manufactured p. 35 ● Chip Foose Demonstrates 3M’s New Accuspray Gun p. 39 ● More Coming in September
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COLUMNISTS Attanasio - Collision Repair Technicians United Goes Viral on Facebook. . . . . . . 38 Attanasio - Estimator During the Day, Rock Drummer at Night . . . . . . . . . . . . 36 Attanasio - Lead with Caution Whenever Contracting ANY Marketing Firm. . . . . . 30 Attanasio - What is Your Marketing Budget…Or Do You Have One? . . . . . . 24 Luehr - Make Your Month, Every Day! . . . 34 Sisk - CREF Urges the Collision Repair Industry to Donate to Improve the Industry’s Future . . . . . . . . . . . . . . . . . 32 Yoswick - Surveys show ‘who pays for what’ in terms of ‘not-included’ procedures . . . . . . . . . . . . . . . . . . . . . 32
NATIONAL 84-year-old South Milwaukee, WI Shop Owner Loses Fight to Prevent Demolition . . . . . . . . . . . . . . . . . . . . . . 22 ABAC Responds to Supreme Court Decision . 3 ABRA to Expand in Pacific Northwest. . . . 46 Altercation Over Car Repair Leads to Fatal Shooting in SC. . . . . . . . . . . . . . . 45 AMI Announces 2015-2016 Board of Trustees . . . . . . . . . . . . . . . . . . . . . 47 ASA Publishes Updated ‘Not-Included Operations’ Charts . . . . . . . . . . . . . . . 21 Assured Performance Announces Non-Profit Board . . . . . . . . . . . . . . . . . 45 AudaExplore VP Balances Work and Family Life . . . . . . . . . . . . . . . . . . . . . . 42 Behind-the-scenes Look at MI Factory Where Ford F-150 Is Manufactured . . . 35 Black Diamond Refinishing Launches Wipe on Clear Coat . . . . . . . . . . . . . . . 47 Caliber Collision donates $35,000 to CREF . 47 CARDONE Industries Joins ASA as Corporate Member. . . . . . . . . . . . . . . . 50 Car-O-Liner Supports Industry Through Sponsorships . . . . . . . . . . . . . . . . . . . . 9 CARSTAR Walt’s Helps Make Wish Come True for Topeka, KS Child. . . . . . . . . . . 25
Chief Adds Free Repair Training Resources to Website . . . . . . . . . . . . . . . . . . . . . . 45 Chip Foose Demonstrates 3M’s New Accuspray Gun at NACE . . . . . . . . . . . 39 CIF Announces Greg Horn as New Trustee . 47 CollisionFix.com Website Educates Public About Industry Issues and Unites Shops . 26 CREF and AkzoNobel Announce Winners of Sustainability Challenge Grant . . . . . 47 Dayton Body Shop Brings the Caped Crusader to the Community with a Batmobile . . . . . . . . . . . . . . . . . . . . . 22 Enterprise Recognizes Axalta Business Council Members With Best Length of Rental Awards . . . . . . . . . . . . . . . . . 46 GM Schedules MyPriceLink Initiative; Aims to Hit Market Before Winter . . . . . 21 Hyundai Launches Recognized Collision Repair Center Program. . . . . . . . . . . . . 49 I-CAR Launches “Production Management” Role to Increase Shop Efficiencies . . . . 36 I-CAR® Updates its Courses to Keep Shops Informed . . . . . . . . . . . . . . . . . . 49 Jacksonville Body Shop Owner Admits to Loaning Out Customer’s Truck and Crashing Another . . . . . . . . . . . . . . . . . 10 Jon Kosmoski from Valspar’s House of Kolor & TV Reality Star KC Mathieu Demo Kandy Painting . . . . . . . . . . . . . 40 LKQ Corporation to Acquire The Coast Distribution System . . . . . . . . . . . . . . . 48 Michigan Bill Would Prohibit Insurer-Mandated Parts Procurement from Specific Suppliers or Processes . . . . . . . . . . . . 31 Mitchell Releases Toyota Recommended Repair Procedures within Mitchell Estimating . . . . . . . . . . . . . . . . . . . . . . 46 Mobile Technology Enhancements from CCC . . . . . . . . . . . . . . . . . . . . . . 45 MSO Symposium During NACE Include Claims Management Models, Future of DRPs and Financing Options . . . . . . 18 NACE Moves From Detroit to Anaheim in August 2016 . . . . . . . . . . . . . . . . . . . 1 NACE 2015 Entertains, Informs and Wows (photo montage) . . . . . . . . . . . 44 New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 . . . . . . . . . . . . 14 New Nitrocell Nitrogen Plastic Welder by Urethane Supply . . . . . . . . . . . . . . . 39 New Source of Vehicles for NABC Recycled Rides . . . . . . . . . . . . . . . . . . 48 NHTSA Announces All VIN Numbers Under Takata Air Bag Recall in Search System . 49 NSF International is Latest to Launch Shop Certification Program, Four Certifications Offered . . . . . . . . . . . . . . . 8 OEConnection Announces Integration with PartsTrader or Bi-Directional Quotes and Orders. . . . . . . . . . . . . . . . . . . . . . . 9 Quality Collision in PA Credits Success to Employees & Focus on Good Customer Service . . . . . . . . . . . . . . . . . . . . . . . . 42 School: “No Shortage of Jobs for FTCC’s Repair and Refinishing Technology Grads”. . . . . . . . . . . . . . . . . . . . . . . . . 10 Solera To Invest $5M in Chinese Insurance Market. . . . . . . . . . . . . . . . . . . . . . . . . 49 State Farm® Refines Repair Facility Survey . 48 U.S. House Subcommittee Hearing on Connected Cars . . . . . . . . . . . . . . . . . . 48
The Auto Body Association of Connecticut is deeply disappointed with the recent Supreme Court decision in Artie’s Auto Body et al v. The Hartford. The decision marks a step backward for consumer safety, quality of repairs, and for the rights of independently operated auto repair shops. The decision may also have the unintended consequence of affording greater insurer interference in the repair process, which has historically resulted in demands for faster and cheaper repairs, often at the expense of quality and safety. Insurance companies such as The Hartford, have for years, secretly sought to control independently licensed appraisers to reduce their own claim costs. The jury and trial court both found that this kind of misconduct is wrong and constituted an unfair trade practice. Indeed, the trial judge ordered The Hartford to pay $20 million in punitive damages, which at the time reflected the highest punitive damage award in the history of this state. We believe that by reversing this verdict, the Supreme Court substituted its judgment for that of the community’s.
The Court’s decision in this case, while disappointing, does not give insurers the right to set labor rates or dictate repair decisions. The decision stands for a relatively limited proposition: That The Hartford’s conduct in utilizing its appraisers to negotiate labor rates does not violate the unfair trade practices law. It remains unlawful for insurers to artificially suppress market rates or to impose undue conditions on repairers or consumers. The fight over consumer safety and fair market rates remains very much alive. The Auto Body Association of Connecticut has been in this fight for over 50 years. We have made great advances in compelling greater transparency and accountability. Our resolve to serve as a watchdog and advocate for the industry and for consumer rights, safety and fair market conditions remains as strong as ever. Finally, the Association wishes to extend its deepest gratitude to our legal team for their years of exceptional work, diligence and counsel. This was a long and well fought battle. On behalf of the ABAC and the entire repair industry, we humbly say thank you.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Allen Samuels Chevrolet. . . . . . . . . 45 Axalta Coating Systems . . . . . . . . . 51 BMW Wholesale Parts Dealers . . . . 39 Bob Howard PDC . . . . . . . . . . . . . . 23 Car-Part.com . . . . . . . . . . . . . . . . . . 14 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 27 Chevyland . . . . . . . . . . . . . . . . . . . . 20 Classic Auto Group. . . . . . . . . . . . . 17 Classic BMW . . . . . . . . . . . . . . . . . . 13 Classifieds. . . . . . . . . . . . . . . . . . . . 50 Dallas Dodge . . . . . . . . . . . . . . . . . 52 Don Carlton Auto Group . . . . . . . . . . 6 Eco Repair Systems of North America, LLC . . . . . . . . . . . 9 Equalizer Industries, Inc . . . . . . . . . 30 Finnegan Chrysler-Jeep-Dodge . . . . 2 Ford Wholesale Parts Dealers . . . . 41 GM Wholesale Parts Dealers . . . . . 35 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . . 8 Huffines Hyundai Plano . . . . . . . . . 10 Hyundai Wholesale Parts Dealers . 43 Kia Motors Wholesale Parts Dealers. 37
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. ©2015 Adamantine Media LLC.
Autobody News
Southwest
REGIONAL $84M Settlement Reached in TX With Farmers Insurance . . . . . . . . . . . . . . . . . 6 AG “Buddy” Caldwell Warns of Vehicles with Flood Damage Making Their Way Into Louisiana . . . . . . . . . . . . . . . . . . . . 8 AkzoNobel Expands R&D Facility in Houston, TX. . . . . . . . . . . . . . . . . . . . . . 6 Arrest Made in Oklahoma City After Shots Fired in Body Shop Argument, Suspect Faces 6 Felony Counts. . . . . . . . . . . . . . 1 HABA Members to Participate in Labor Rates Survey . . . . . . . . . . . . . . . . . . . . . 6 NABR to Present Two Variable Rate System (VRS) July Workshops in Texas . . . . . . . 4 New Mexico Shop Owner Ordered to Pay Back Customers for Poor Repair Work . . 1 Owner of LA Auto Businesses Pleads Guilty for Role in Stolen Identity Refund Fraud Scheme . . . . . . . . . . . . . . 4 Police Officer Shoots, Kills Man at TX Body Shop. . . . . . . . . . . . . . . . . . . . . . . 6 RDA Spring Meeting in TX Features Former Nissan VP of Communications . . . . . . . . 4 Service King Has a Good Month With a String of Positive Announcements . . . . . 1 Thousands of Texas Vehicles Damaged from Floods, Some May Land in the Market . . 16
ABAC Responds to Supreme Court Decision
Indexof Advertisers
Contents
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Martech Service Company . . . . . . . 24 Mazda Wholesale Parts Dealers . . . 47 Mercedes-Benz . . . . . . . . . . . . . . . . 15 Mike Calvert Toyota. . . . . . . . . . . . . 38 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46 MOPAR Wholesale Parts Dealers . . 33 North Freeway Hyundai . . . . . . . . . 16 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Prime Supply, Inc . . . . . . . . . . . . . . . 4 Ray Huffines Chevrolet . . . . . . . . . . 25 SATA Spray Equipment . . . . . . . . . . 7 Scoggin-Dickey Buick . . . . . . . . . . 31 SEMA Trade Show . . . . . . . . . . . . . 19 South Pointe Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 12 Toyota of Fort Worth . . . . . . . . . . . . 42 Toyota of Laredo . . . . . . . . . . . . . . . 34 Toyota Wholesale Parts Dealers . . . 44 Urethane Supply Company . . . . . . 21 Valspar Automotive . . . . . . . . . . . . . 11 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 48 Volvo Wholesale Parts Dealers . . . . 49 Young Chevrolet . . . . . . . . . . . . . . . 43
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 3
NABR to Present Two Variable Rate System (VRS) July Workshops in Texas
National AutoBody Research announced its Variable Rate System (VRS) Workshop, “It’s Now or Never! Calculate and Collect MarketBased Labor Rates Using the Variable Rate System,” held July 15 in Austin and July 16 in San Antonio, TX. The workshops are sponsored by SherwinWilliams Automotive Finishes. Both workshops run from 6:30– 8:30 p.m. on the following dates: ● Wednesday, July 15: Hampton Inn Austin-North @ I-35 & Hwy 183, 7619 Interstate 35 Frontage Road, Austin, Texas 78752. ● Thursday, July 16: Crowne Plaza San Antonio Airport, 1111 Northeast Loop 410, San Antonio, Texas 78209 There is no charge to attend for qualified collision repair professionals and refreshments will be served. Reservations are required and space is limited. Register online: www.National AutoBodyResearch.com/Register.html. NABR CEO Richard Valenzuela and President Sam Valenzuela will present the VRS technology to the collision repair industry’s stagnant labor rate problem. Through the VRS 5-Step Solution, attendees will learn how to utilize the VRS online tools to properly set
labor rates for their individual shop, based on the competitive environment; their shop’s cost of doing business; the shop’s profit goals; and the shop’s level of training, certifications, and investment in equipment and technology. In short, shops will learn how the VRS helps them get paid what they’re worth and earn the profits they need. “We are overjoyed with the opportunity to bring the VRS Workshop to Texas,” said Valenzuela. “The urgency for shops to properly price their labor could not be greater than it is right now. The great news is that they can use the VRS today to make an immediate impact to their own rates and the overall prices in their markets.” “We’re very excited about the VRS because it is nothing like the traditional surveys we have seen in the past,” said Burl Richards, President of ABAT(Auto Body Association of Texas) and Owner, Burl’s Collision Center, Henderson, Texas. I would strongly recommend that collision shops look further into the Variable Rate System, sign up, and give it an opportunity to make a difference.” The workshop schedule is posted on the NABR website, www.National AutoBodyResearch.com.
Owner of LA Auto Businesses Pleads Guilty for Role in Stolen Identity Refund Fraud Scheme
A resident of Tangipahoa Parish, Louisiana, and the owner of two automotive businesses pleaded guilty on July 8 for his involvement in a stolen identity refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. Martin Jackson Sr., 48, pleaded guilty to one count of a triple object conspiracy to defraud the United States, to commit theft of public money and mail fraud. According to court documents, Jackson conspired with at least six other individuals to use stolen identities to file false federal income tax returns that fraudulently claimed tax refunds. Jackson owns Woodscale Automotive Sales LLC and Woodscale Autobody and Mec. LLC. He used the business bank accounts as part of the scheme. Some of the co-conspirators prepared and filed the false tax returns using the stolen identity information and requested that the Internal Revenue Service (IRS) mail the refund checks to addresses in Louisiana, including to post office boxes that were opened by co-
RDA Spring Meeting in TX Features Former Nissan VP of Communications
RDA held their Spring Membership Meeting May 12 and 13 at the Hyatt Regency River Walk in San Antonio, Texas. The two days included speakers, round table discussions and a trade show displaying the IMPACT Performance Products, which is RDA’s exclusive brand. Keynote Speaker Jason Vines gave a presentation on, “If You Think You’re Immune to a Crisis, You’re Nuts.” Vines is a well-known author and speaker and the former VP of Communications for Nissan North America, Ford Motor Company, and Chrysler. Also speaking to the group was David Roberts of Focus Automotive Services Group. Roberts spoke to the RDA members on Consolidation: “COPE, SURVIVE & THRIVE.” He co-founded Caliber Collision, the world’s first consolidator and now one of the “BIG Four” consolidators in the US. Executive Director Robert McKenzie Jr. said, “The objective of our meeting was to provide valuable information with the emphasis being placed on future changes in the PBE distribution model and how distributors can best be prepared for
such changes. We would like to thank all of our manufacturers who sponsored this event making it such a success.” RDA/IMPACT is the largest national group of refinish jobbers dedicated to providing quality services and products to their collision shops. RDA has 18 members, representing 188 locations. Members service over 3,800 collision centers throughout the United States. They represent a crosssection of all major refinish brands and do more than $455 million in sales as a group, comprising around 17% of the refinish business nationwide. Those interested in joining RDA/IMPACT should contact Robert McKenzie, Jr. directly at 731-2179081731-217-9081 or via email at robertemckenzie@me.com. For more information on RDA/ IMPACT, visit www.impactcollision solutions.com or contact Melisa Jolls at 908-251-5713908-251-5713 or email meljolls@earthlink.net.
4 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
conspirators. Jackson deposited refund checks into his business bank accounts and gave cash or checks to his co-conspirators, while retaining a portion of the proceeds for himself. Jackson is the final co-conspirator to plead guilty of the seven defendants indicted in this case. Previously, Angela Chaney, 43, Thaddeus Richardson, 50, Corey Lewis, aka Coco, 37, Craig Lewis, 40, Brad Lewis, aka Bird, 32, and Cedrick Mitchell, aka Skeet, 39, pleaded guilty. Their sentencings are scheduled in August and September. U.S. District Court Judge Jay Zainey of the Eastern District of Louisiana set sentencing for Jackson on Oct. 6. Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense and restitution.
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 5
HABA Members to Participate in Labor Rates Survey
Those who join the Houstin Auto Body Association in the near future will be offered an opportunity to participate in the association’s 2015 labor rate survey. According to HABA’s membership, “As the insurance industry tightens its belt by paying for fewer hours and operations, we are seeing an increase in labor, material, equipment and training cost. As a result, shops have increased the rates charged for their services.” In response to these increases, HABA will be commissioning surveys of the local collision repair market, to determine what the majority of the businesses are charging for their services. The association added, “Don’t believe when you’re told ‘you’re the only shop charging that’ because you’re not. Make your voice heard and let other shops know they are not alone. Start making a difference.” As always, all shop information is kept confidential. Only the overall results will be released. Membership price is $300. For those members who haven’t paid their dues, visit http://www.habaonline .org. Continued from Cover
Arrest Made in Oklahoma
she asked him multiple times to pay but he refused. “She arrived at her store where [Cuadros] was employed, and told him he needed to pay her or she was going to take custody of her vehicle,” stated the police report. “Before she took custody of her vehicle, [Cuadros] removed a silver handgun from the center console and stuffed it in his back waist band.” After allegedly making verbal threats, Cuadros pulled the silver handgun from his back waist band, pointed it in the direction of one of the victims and pulled the trigger. The bullet holes from the June 1 afternoon shooting are all around, wrote Adrianna Iwasinski, News 9. There are two in a trashcan and one in a car door. The owner said he hid in a nearby bathroom after ducking to avoid getting hit.
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AkzoNobel Expands R&D Facility in Houston, TX
AkzoNobel Performance Coatings is investing around $3.4 million to expand its research and development facilities in Houston, TX. The upgraded facility will support the company’s Protective Coatings, Marine Coatings and Specialty Coatings businesses. Completion is due in early 2016. “The expanded facility will provide a central, state-of-the-art technical resource for our businesses in the US, creating the critical mass for effective R&D to efficiently support our customers,” said Aidan Mernin, RD&I Director for Protective Coatings. The expanded facility will be able to house up to 35 laboratory staff, with 30 technologists employed initially. Key capabilities will include a dedicated area for experimental paint making, a modern paint application laboratory and environmentally-controlled drying areas for conditioning of test panels. Enhanced chemical resistance testing will also be available to support the Ceilcote and Enviroline linings ranges in North America. “This investment underlines our focus on technology and product innovation and providing technical support for our customers,” said Mauricio Bannwart, AkzoNobel’s Managing Director.
Police Officer Shoots, Kills Man at TX Body Shop
A man was shot and killed after refusing to stop for San Antonio, TX police, reported Mark D. Wilson, expressnews.com. Police noticed a suspicious looking SUV near John Jay High School, said SAPD Interim Chief Anthony Treviño. As the driver began pulling over at an auto body shop across the street from the school, he got out and ran. The car continued rolling and hit a parked truck. As the suspect jumped over an eight-foot fence to escape, a handgun fell out of his waistband, Treviño said. Wilson reported that the officer caught up with the man, pulled out his weapon and told him to surrender. Treviño said the suspect appeared to reach for the gun, and the officer fired three shots. The suspect, who was pronounced dead at the scene, was hit in the hand and chest. A witness said he saw the unidentified suspect reach for the weapon and adjust something in his waistband, police said. Treviño said two other people were inside the car at the time of the incident, reported Wilson.
6 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
$84M Settlement Reached in TX With Farmers Insurance Texas Attorney General Ken Paxton announced on July 6 the approval of a settlement with Farmers Insurance Group that will return $84.4 million to policyholders stemming from a 2002 case filed by the Texas Attorney General’s Office and the Texas Department of InTexas Atorney surance. General Ken Paxton “People in announced $84.4 Texas and across settlement the country need to have confidence in the companies they depend on to insure their homes, health and property,” said Attorney General Paxton. “Any company that overcharges and deceives its customers out of their hard-earned money must be held accountable, and I’m pleased that Texas consumers will finally have closure in this case.” In 2002, the Texas Attorney General’s Office filed a lawsuit against Farmers Insurance Group for violations to the Texas Deceptive Practices Act (DTPA), and on behalf of the Texas Department of Insurance, for violations to the Texas Insurance Code.
Don Carlton ACURA OF TULSA
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According to state investigators, for a period of five years Farmers deceived consumers and engaged in discriminatory practices. These were unlawful practices that in some cases had consumers paying excessive amounts for premiums while having their coverage reduced without their knowledge. Under the court order, a settlement administrator has been assigned to handle restitution to consumers. Notices about the settlement will be mailed within 60 days to people who may be eligible for a refund. To obtain a copy of the settlement and information for affected consumers, visit https://www.texas attorneygeneral.gov/files/epress/files /2015/Preliminary_Approval_Order .pdf To access the legal notice of agreement, visit https://www.texas attorneygeneral.gov/files/epress/files /2015/SF-Final.pdf
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 7
NSF International is Latest to Launch Shop Certification Program, Four Certifications Offered NSF International, a global organization with 70 years of certification and testing experience, has launched the NSF Automotive Collision Repair Shop Certification Program designed to provide independent, third-party evaluation of collision repair shops. The certification is designed to verify the shop’s ability to conduct high quality repairs. In accordance with American National Standards Institute (ANSI) procedures, collision repairers and a variety of industry experts worked with NSF International certification experts to develop the requirements for the program. The program is designed to assist vehicle owners and insurers in identifying collision shops that provide high-quality repairs. NSF International certified collision repair shops will be required to meet state, federal and local collision repair shop regulations and undergo biannual audits to verify continued compliance with the program’s requirements, which include: ► Performing high-quality, consistent repairs ► Using and maintaining proper equipment for the job ► Having qualified and trained personnel ► Using quality parts for repairs
► Responding promptly to complaints and consumer feedback ► Utilizing modern computer estimation systems ► Providing excellent customer service NSF International will offer four types of automotive collision repair shop certification: ● Cosmetic/non-structural repair: Covers repairs, refinishes and/or replacement of bolted on parts to restore a vehicle to its original state and shape. ● Structural repair: Covers non-aluminum repairs that require welding, rivet bonding and/or measuring and pulling in order to restore a vehicle to its original state and shape. ● Aluminum non-structural cosmetic repair: Covers cosmetic/non-structural repairs on a part comprised of aluminum. ● Aluminum structural repair certification: Covers structural repair on a part comprised of aluminum. Collision repair shops that meet all certification requirements can use the NSF International certification mark on their website and promotional materials indicating the appropriate certification type listed above. NSF International certified collision repair shops also will be included in NSF’s online certification listings and undergo ongoing quality systems inspections to maintain certification.
AG “Buddy” Caldwell Warns of Vehicles with Flood Damage Making Their Way Into Louisiana
Louisiana Attorney General James D. “Buddy” Caldwell warned on July 8 that flooding impacting parts of the country could affect car buyers within the state. “Flood-damaged vehicles often end up in other states to be sold to unsuspecting consumers, but fortunately, there are some important clues that can signal water damage and keep consumers from getting ripped off,” Attorney General Caldwell said. He urged consumers to keep the following tips in mind:
● Look for water stains, mildew, or sand under the carpet, floor mats, and dashboard, and in the wheel well where the spare tire is stored. Look for fogging inside the headlights and taillights.
● Smell the interior of the car. A heavy aroma of cleaners and disinfectants could be a sign that someone’s trying to mask a mold or odor problem.
● Feel and Listen for problems. Have your mechanic inspect the car’s mechanical and electrical components, and systems that contain fluids, for
water contamination. Notice if anything feels or sounds unusual.
● Know the difference between a “salvage title” and a “flood title.” A “salvage title” means the car was declared a total loss by an insurance company because of a serious accident or some other problems. A “flood title” means the car has damage from sitting in water deep enough to fill the engine compartment. The title status is part of a vehicle history report.
● Obtain a vehicle history report. The National Insurance Crime Bureau’s (NICB) free database includes flood damage and other information. If you suspect a dealer is knowingly selling a flood-damaged car or a salvaged vehicle as a good-condition, used car, contact your auto insurance company, local law enforcement agency, or the Attorney General Caldwell’s Consumer Protection Hotline at (800) 351-4889 FREE.
8 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
NSF International has entered into an agreement with AccuracyDriven4, Inc to provide the Audit Services required for NSF’s Automotive Collision Repair Shop Certification Program. AccuracyDriven4 provides an extensive audit process for collision repairers to identify areas of opportunity or gaps in the process. “The collision industry has struggled for years to adopt a standard for providing safe and accurate repairs to the consumer. It has been a long process and it makes sense for NSF International, a company recognized globally for testing and certification, to be the independent entity that brings collision repair certification to a reality. AccuracyDriven4 is pleased to be the exclusive provider of audit services for the NSF International Automotive Collision Repair Shop Certification Program,” said Douglas Irish, President and CEO AccuracyDriven4. “There are 33,000 to 35,000 collision repair shops in the U.S. today. With NSF International collision repair shop certification, qualifying shops now have a way to differentiate themselves from the competition in terms of providing higher quality, safer repairs and exceptional customer service,” said Dan Stander, Second Generation Operator, Fix Auto Highlands Ranch and one of the
collision repair experts who helped develop the NSF International protocol on which the certification program is based. The NSF program complements NSF’s Automotive Collision Replacement Parts Certification, which certifies that automotive aftermarket parts meet rigid quality, safety and performance standards in terms of form, fit and function, and NSF International’s Automotive Collision Parts Distributor Certification, which certifies distributors who sell aftermarket parts. NSF International certified parts come with a limited lifetime guarantee and are fit tested on vehicles to ensure they fit the first time, reducing time spent on repairs. “Consumers now have access to collision parts and repairs that have been independently certified at the manufacturing, distribution and now the body shop repair level. NSF International’s collision part replacement, distribution and body shop repair certification programs work together to provide customers peace of mind that each link in the collision part and repair supply chain is able to deliver the highest quality parts and service,” said Bob Frayer, Global Managing Director of Automotive Certification Programs at NSF International. Bob Frayer can be contacted at autocert@nsf.org.
OEConnection Announces Integration with PartsTrader for Bi-Directional Quotes and Orders
OEConnection® is the leading parts ecommerce technology provider for OEM distribution networks, serving over 60,000 dealership and repair customers. At the NACE-CARS event OEConnection announced an integration with PartsTrader, a web-based parts purchasing network, that will enable quote requests and orders originating from the PartsTrader application to be processed in the OEC dealer portal through the CollisionLink parts procurement solution. This bi-directional integration will allow dealer users of CollisionLink to process quote requests and orders originating in the PartsTrader platform, as well as other orders received from body shops using CollisionLink Shop or other third-party integrators. PartsTrader CEO, Rob Cooper said, “Integration with OEC complements PartsTrader’s mission to become the most comprehensive collision replacement parts sourcing and procurement platform for the industry by providing a seamless experience to users of both solutions. Thousands of collision repairers are now choosing to use PartsTrader as their parts sourcing solution. Without any phone calls or additional effort, repairers can receive
the most complete and accurate information to make the best buying decisions for their businesses.” “OEC has long viewed integrating with collision shop procurement applications a key part of our strategy in delivering incremental value to our dealer network. The order fulfillment API is designed to consolidate disparate ordering systems into one, easy workflow for the dealer, streamlining the order fulfillment process for the parts counter person. By extending our API to PartsTrader, we remove the need for the dealer to have an additional system to manage and support,” commented Bill Lopez, OEC VP, Collision & OEM Programs. “Integration with OEC advances our strategy of being the most open parts procurement platform in the market. It enables our dealer customers who use OEC to quote more efficiently and accurately to repairers using the platform,” commented Dale Sailer, PartsTrader VP, Business Development. The CollisionLink/PartsTrader integration is expected to be available to participating dealers and shops in early 2016. Dealers will have the option to maintain their current systems as is.
Car-O-Liner Supports Industry Through Sponsorships
Car-O-Liner® is backing the industry’s future leaders with participation at two major industry training events. First, CarO-Liner sponsored the Collision Repair Technology (CRT) competition at the 51st annual SkillsUSA® National Leadership and Skills Conference held June 22-26 in Louisville, KY. On August 11-16 Car-OLiner will be a global sponsor of the autobody repair skill at the 43rd WorldSkills Competition in São Paulo, Brazil. More than 6,000 students––all state contest winners ––competed hands-on in 100 different trade, technical and leadership fields during the SkillsUSA Championships. Car-O-Liner has supported the event for more than five years, providing frame alignment and measuring equipment for use at the competition. Car-O-Liner is also participating in the WorldSkills Competition, held in South America for the first time in history at Anhembi Parque, São Paulo, Brazil. The WorldSkills Competition occurs every two years and is the biggest vocational education and skills event in the world. Throughout its 65 year history, the competition brings together the best young people from around the world in their chosen profession as more than 1,000 competitors from over 50 countries and regions compete for medals in 46 professional skills. This is the fourth WorldSkills
Competition for which Car-O-Liner has been the global sponsor of the autobody repair skill. Participating in the autobody repair contest are 20 global competitors and the official vehicle body selected to be repaired is the Volkswagen Up. Car-OLiner will occupy approximately 20,000 square feet of space with 23 complete work bays containing repair equipment from Volkswagen/Audi/Skoda package VAS6528. Each work bay will contain a Quick 42 alignment bench, a Car-OTronic Vision2 X3 measuring system, EVO1, 2 & 3-1 anchoring and holding systems, a CTR12000 resistance spot welder, a CM273 Twin MIG/MAG welder as well as other diverse equipment needed to repair the body to the point where it can be painted. “The main purpose of this global sponsorship is for Car-O-Liner to emphasize the importance of vocational education for the younger generation in their quest for excellence within their chosen field of autobody repair,” said Jonas Gunnarsson, VP & BU Manager Automotive for Car-O-Liner Group AB. For information on Skills USA Competition: www.skillsusa.org. To learn about WorldSkills Competition: www .worldskillssaopaulo2015.com. Information is also available online www.car-oliner.com.
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 9
School: “No Shortage of Jobs for FTCC’s Repair and Refinishing Technology Grads” Students in a new program at Fayetteville Technical Community College are getting job offers even though they’re only halfway through school, according to Steve DeVane, writing in the Fayetteville Observer. The collision repair and refinishing technology program is training students for an industry where jobs are expected to be abundant. One company has said they could hire the school’s first 20,000 graduates, while another said it would take the first 10,000, said FTCC President Larry Keen, who told county commissioners about the program at a meeting in July. Students learn how to make cosmetic repairs on plastics, composites, steel and aluminum and receive training on multiple welding techniques, according to the FTCC website. They are taught refinishing procedures and work with aluminum specialists. Keen said professionalism is a major part of the program. The students use computer tablets with state of the art software being used in the industry now, he said. Program Director Paul Gage wouldn’t say which companies made
the statements about hiring, but he said the school has enough commitments from companies all over the country to provide jobs for the program’s graduates for the next 10 years and beyond. “Companies have discussed hiring large numbers of graduates even to the point of hiring entire graduating classes as teams,” he said. Some of the jobs will be local, but others will be in other parts of the state and country. “Some of our graduates will need to be willing to relocate to take advantage of those opportunities, and every opportunity hinges on successful completion of the program,” Gage said. “If people are willing to commit to the program in its entirety and work hard, we can place them in great jobs.” Some students already are working at internships and apprenticeships. Reed-Lallier Chevrolet in Fayetteville has three paid apprentices, said Neil Gallagher, the company’s fixed operations director. If the students work out, they’ll have a full-time job when they graduate, he said. “We’re training them to work
The Florida State Attorney’s Office is reviewing the case of a local auto body shop owner accused of loaning out one of his customers’ vehicles and crashing a second. Criminal charges could be filed. Action News reported June 23 on Oliver Pickett after a customer said Pickett loaned out his truck instead of doing requested repair work. The vehicle is now missing. Another man said June 24th that his Dodge Ram was not only loaned out, but that Pickett crashed it. The owner of the Dodge Ram came back June 25 to make sure work was getting done on his truck. Pickett admitted that he took it out for a ride and crashed it, damaging the front bumper. The owner of the Dodge Ram wouldn’t give his name, but he said he dropped off his truck three weeks ago to have work done. Action News was there the night of June 24th when Pickett brought it back damaged, with the work unfinished. There was more of the same on June 25.
“Are you happy with the agreement you guys reached?” Action News asked the truck owner. “I’ll be happy when I can pick my truck up and it’s fixed like he promised he would fix it,” the owner of the Dodge Ram said. William CarOliver Pickett, roll said Pickett owner of Pickett scammed him too. Brothers Body Shop Carroll said in Jacksonville going through the experience is “pure hell.” He said Pickett gave him a receipt for molding work on his car, slightly less than $945 for the parts and labor. Carroll said he wrote a $533 check for parts so Pickett could start the repairs. “I just want the damn money, that’s all I want,” Carroll said. More than a month later, Carroll says the work hasn’t been finished. He
Jacksonville Body Shop Owner Admits to Loaning Out Customer’s Truck and Crashing Another
See Missing Loaner, Page 14
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here,” he said. “We’re offering them an opportunity to begin their career here.” The students work side-by-side with body technicians at Reed-Lallier, Gallagher said. They get practice on working on cars in addition to what they learn in their classes, he said. “There’s a lot of technology built into vehicles today,” he said. Matthias Rappe, 18, of Fayetteville is one of the apprentices. “The people down here have built on my confidence that I can do good in this industry,” he said. Rappe said he enjoys repairing damaged vehicles. “I’ve always had a love for working on cars,” he said. Another apprentice, Matthew Conley, 29, was a mechanic in the Army before he started the program. “I was looking for something in the auto industry, but a different field,” he said. Conley, who is from Vermont but lives in Spring Lake, said the apprenticeship is a great opportunity. “I’m actually working at what I’m going to school for,” he said. Austin Beasley, 20, of Gray’s
Creek, started working in the auto body industry right out of high school. “There’s not really anything that I don’t like about it,” he said. “I’m glad I am where I am.” Gage said the collision repair industry is projected to have about 180,000 job openings over the next five years. “All those companies are looking for people who are well trained,” he said. FTCC is trying to meet that need. In addition to an associate degree in applied sciences, graduates from the two-year program will have earned 12 professional certifications and have options for 15 to 20 career paths, Gage said. The first graduates will finish in May. The program can admit up to 20 students every eight weeks, Gage said. The students collaborate on projects. “As they move through the program, they learn to work as their own body shop,” Gage said. “We put them in the exact same situations they’re going to go through working at a body shop.”
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 11
Continued from Cover
Poor Repair Work
now works as a lube tech earning $12 an hour and said he could only afford to pay $400 a month. Nash agreed to that amount and ordered him to pay it by the next hearing, scheduled August 3. The money will go into a court registry and payments will be dispersed by the Attorney General’s office once a year. In March, Judge Nash ordered the business closed after Mitchell failed to appear at a hearing where he was set to explain how he would comply with Continued from Cover
Service King
ice King. The Apprentice Development Program officially debuted Tuesday, June 30, in Houston with plans to expand to several markets across the country. The rollout plan features launches in Texas, California, Illinois, Georgia and more in 2015. “This has long been a vision of ours at Service King,” said Abraham. “We couldn’t be more proud to offi-
a 2013 court order requiring him to pay restitution to consumers, imposing civil penalties, and prohibiting unlawful business practices. The Office of the Attorney General worked with consumers affected by the order closing the business so they could get their vehicles and engines back. The current lawsuit involves nine consumers who were victimized by Mitchell. In April 2013, the Office of the Attorney General obtained a court order requiring Mitchell to pay those consumers a total of $21,000 in restitution and imposing $42,000 in civil penalties. The court also ordered Mitchell to complete repairs to the engines or, if
cially deploy the Apprentice Development Program. Through the leadership and knowledge of our supervisors and location managers, this program will be an invaluable resource for technicians entering the field or looking to rejuvenate their careers. It’s humbling for us as an organization to provide a clear pathway to rewarding careers in the collision repair industry.” Service King officially welcomed Houston’s inaugural class of apprentice technicians at an event Monday, June 22.
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not repaired, to return the engines and refund the full amount the consumers paid for the repairs. “I am outraged that so many New Mexicans were taken advantage of by Bobby Mitchell, and I want to ensure that all consumers understand that they have rights which can be enforced under the UPA,” said Attorney General Hector Balderas. The Attorney General advised consumers who seek any type of repair services at an automotive repair shop that the New Mexico Unfair Trade Practices Act (UPA) requires the shop to post provisions of the shop’s warranty policy and its method of charging
As part of the program, technicians receive daily on-the-job oversight and training, participate in a detailed curriculum, and progress through a series of assessments and benchmarks. Technicians are consistently awarded throughout the program and tutored by an assigned apprentice supervisor. Service King also contributed to a local homeless shelter’s expansion on June 22. The MSO presented a donation in the amount of $30,000 to the Samaritan Inn at the groundbreaking of its Samaritan Inn Village project in
labor in a prominent and conspicuous location on site. UPA also requires a repair facility to provide a written estimate of repairs that will exceed $100, and if repairs exceed the estimate by the greater of 10 percent or $50, the repair shop must obtain authorization from the consumer for the repairs. Additionally, the shop must provide the consumer an invoice detailing all repairs completed, all parts and materials used in the repair or service, and whether any such parts were used, rebuilt or aftermarket crash parts. In most cases, consumers are entitled to retain the old parts if they so desire.
McKinney, TX. The Samaritan Inn in Collin County provides shelter and comprehensive programs that promote selfsufficiency and life skills to meet the needs of individuals and families. Construction on the new family-centered facility is scheduled to begin immediately with plans to open within a 12-month period. Service King’s gift will directly fund the community lounge area, which will be named the Service King Family Lounge upon Continued on Next Page
completion. McFadden presented the donation on behalf of Service King to Samaritan Inn Executive Director Lynne Sipiora, who was joined by U.S. Congressman Sam Johnson, city council members
munity and the business community all come together,” said Sipiora. “We salute Service King as a ‘corporation with conscience,’ actively working to make a difference in the world.” The Family Shelter building will
Pictured here during the groundbreaking ceremony of the new Samaritan Inn Village project: (l to r) Jeff McFadden, Service King; Bryan Moore, Architect; Pam Little, Board Member, The Samaritan Inn; Lynne Sipiora, Executive Director, The Samaritan Inn; Mark McAndrew, Board President, The Samaritan Inn; Rick Wells, Board Past President, The Samaritan Inn; Ben Whisenat, Board Member, The Samaritan Inn; Congressman Sam Johnson; John Festa, Board Member, The Samaritan Inn; Phil Maternowski, Board Treasurer, The Samaritan Inn; Laura Hamblin, Board Member, The Samaritan Inn
and Samaritan Inn staff along with members of the Collin County faith community. “Our program is only made possible when individuals, the faith com-
serve as a pivotal resource for the Samaritan Inn, which in 2014 was forced to turn away more than 3,600 qualified individuals due to overcrowding. According to the organiza-
tion, families are the fastest growing segment of the homeless population in Collin County. The initial phase of the project will include two buildings, a pavilion and residential building. The residential building will provide the organization the capability of immediately providing housing for 50 qualified families. The 50 units that make up the Samaritan Inn Village will contain one- and two bedroom layouts, private bath areas and a small study. Meanwhile, the pavilion will provide residents with classrooms, libraries, a community dining room, kitchen and intake room. Service King made another charitable effort for the month of July by collecting back-to-school supplies at 18 of their Houston locations. Houston residents are encouraged to drop off basic supplies prior to August 5. “This is an area we feel we can truly make a tangible and lasting impact within our community,” said Justin Regan, Service King Regional Vice President. “As the 2015-16 school year approaches, it’s vital that every student is provided the opportunity to begin that year with the essential supplies. With 18
locations across the Houston metro, our Service King teammates saw an opportunity to really make a difference. We hope through partnering with the Houston Area Women’s Center for the Backto-School Project, Service King is able to help make a lasting impact for students across the city this year.” Supplies and backpacks collected through the Back-to-School Project will be distributed to children on Aug. 14 and 15 at the Houston Area Women’s Center. Last year, nearly 1,100 new backpacks and school supplies were provided in advance of the school year through the efforts and generosity of supporters. Huntington Bank, which annually measures the trend, reported the average cost of sending children to K-12 school rose by 20 percent just last year. That jump marked one of the single largest year-over-year spikes during the eight-year history of what the organization calls its “Backpack Index.” Service King and the Houston Area Women’s Center aim to alleviate that cost for the families and children that struggle across the Houston metro. Complete lists of school supplies can be found at each Houston area Service King location.
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 13
New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 by Victoria Antonelli, Online Editor
over to the operation store side before taking over the role of vice president of stores. While serving as VP, Major was responsible for 900 stores across the country, and because of that, he said he spent a lot of time out in the field talking to both DIY and commercial B2B customers. “This position gave me a deep familiarity with the concerns and opportunities on the shop side of the business,” said Major. “When I started at ALLDATA, I began filling in the blanks on the software end.” Major said that since a lot of collision shops are still not using OEM information, the liability for shop owners continues to increase. “Many collision shops are small independents without the resources of national chains and aftermarket information fills that need,” he said. “OEs are certainly changing and adapting to the market place, including customers of ours, when it comes to pricing. It's an ‘adapt or die’ universe we live in, when it comes to the economy, and everyone is going to have to change and roll with the punches.” In order to prevent incorrect repairs, which could lead to consumer injuries or even death, Major said he and the rest of the product team make a point to speak with industry members to find new ways to make OEM data that much more compelling. “Typically, if you go to a shop and say, ‘My check engine light is on and I need to understand what's going on here,’ they’ll go out and write it down on a paper pad, then they’ll go in and key it into the computer, and it takes a lot of time,” said Major. “This creates a huge opportunity to streamline that whole process. Whether you’re mechanical or collision, you want to turn the bays; you want to get the cars in and out,” he
Continued from Page 10
The Dodge Ram owner said he’s known Pickett for 10 years and isn’t ready to press charges. In addition to the Dodge Ram, there are two other trucks at the auto body shop. Pickett said he’ll have all the work done by the morning of June 26. See related story adjacent to this one.
Over the past eight years, ALLDATA, a provider of OEM service and repair information since 1986, has expanded its predominantly mechanical focus to the collision repair sector with the addition of ALLDATA Collision. This new and improved program allows users to access a single source of up-to-date OE-direct repair information. The company’s database is available online and features information on more than 33,000 engine-specific vehicles from year 2000 to present. Featured OE procedures include sectioning and structural repairs, handling of new materials and panel removal and replacement. In March 2015, Mitchell Major, Mitchell Major president of became president of ALLDATA ALLDATA after holding various positions at ALLDATA’s parent company, AUTOZONE, for 10 years. Autobody News spoke with Major while he attended NACE CARS 2015 in Detroit, MI. “NACE has been a great opportunity to talk to people on the user side of the equation, such as associations and insurance carriers, and understand their thoughts about OEM information,” said Major. “My perspective is that I can’t imagine a world in which you would not want to be using OEM data repair information on the collision repair side, particularly if you walk the collision floor and see the complexity of the structure of vehicles.” Major said he began his career at AUTOZONE on the inventory supply chain side, where he ran replenishment for several years. He then moved
Missing Loaner
filed a complaint with the state. “There’s no problem,” Pickett told Action News. “He’s going to get his money back.” “But you do owe him money?” Action News asked. “Yeah, $533,” Pickett said. Carroll said he has not yet gone to the police, but he plans to do so.
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14 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
continued. “Most shops have two or three bays, which gives you limited physical space and limited technicians. ALLDATA Collision is available online, on either desktop computers or mobile devices, so it can be checked nearly anywhere in the shop. [Simplifying those steps] increases cycle time and productivity, which in turn increases profit.” Tanushree Sircar, marketing manager at ALLDATA, explained that their customers span a wide range of backgrounds and age groups. While the younger generations adapt to new techTanushree Sircar, nologies faster and marketing manager prefer using mobile for ALLDATA devices, some technicians are more comfortable with older technologies. “The convenience of accessing this information is what’s interesting to everybody,” said Sircar. “The ability to access quality OEM information through their desktop or Android or iOS device, making the repair process
much easier and faster, is what makes our customers willing to change and adapt to the new technology.” Instead of paying for classroom time to keep technicians up-to-date on the latest vehicle trends and models, “you can just turn on ALLDATA Collision, and the system will lead you through the process so you don'’ make an incorrect repair. Our product roadmap is all about a training-free solution. It’s as easy as making a purchase from eBay or Amazon,” added Major. Another tool ALLDATA has implemented to help make life easier for technicians is the online database Community. According to Sircar, Community allows technicians to log on and ask other technicians detailed questions about the OE repair process and specific issues. She added that the database has recently reached 70,000 users in just two years. ALLDATA is based in Elk Grove, CA. For more information on ALLDATA Collision, visit their website at http://www.alldata.com/collision or contact the company’s marketing manager, Tanushree Sircar, at tanushree.sircar @alldata.com / 800-829-8727.
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 15
Thousands of Texas Vehicles Damaged from Floods, Some May Land in the Market by Denise Marquez, Reprint Courtesy of Lubbock Avalanche-Journal
During the rainstorms in late May, many Texans braved the roads and drove their vehicles in flooded streets, but some may now be regretting that decision and have been left with waterdamaged automobiles. Many of those water-damaged vehicles have been condemned to salvage yards, but some experts say many can end up back in the market. The National Insurance Crime Bureau, insurance companies and local auto repair shops are warning those considering purchasing pre-owned vehicles to take a closer look into a vehicle’s history and have shared tips on how to identify vehicles potentially damaged by water.
Vehicle water damage in Texas According to the National Insurance Crime Bureau and estimates from Copart, about 7,000 to 10,000 insured vehicles in Texas sustained water damage. Copart is a company that works with insurance companies to handle vehicles damaged in catastrophes. Mark Hanna, Insurance Council of Texas spokesman, said having that many vehicles with water damage from rainstorm flooding is significant. “That’s quite a few compared to a hurricane like Katrina or Superstorm Sandy, which had tens of thousands of vehicles submerged; it doesn’t rank up there, but as far as just some thunderstorms producing a lot of rain and freshwater flooding, this is pretty substantial,” Hanna said. “This is hundreds of millions of dollars.” Chris Pilcic, State Farm spokesman, said auto damage claims from Texans rolled in by the thousands during the last weeks of May. “During the storm event with dates of customer loss between May 23 and May 30, State Farm received more than 6,500 auto claims with the majority of damage being flooded cars,” Pilcic said. “The hardest-hit areas include Houston, Austin, San Antonio, Corpus Christi and San Marcos. About 90 percent of its customers’ cars reported damaged were damaged so badly, they couldn’t be driven.” In May, Lubbock received 12.12 inches of rain, according to the National Weather Service in Lubbock, which caused flooded streets and some damage to vehicles.
Josh Page, Christian Brothers Automotive general manager, said during Lubbock’s flooding the auto repair shop, at 6207 82nd St., worked on about 40 vehicles that sustained water damage and had some that were declared totaled.
A car makes its way across a flooded roadway in Seagraves on Tuesday, May 5, 2015. Photo Credit: Shannon Wilson/AJ Media
“We typically move out of here every week between 120 to 140 vehicles, so that’s 40 added to our normal car count,” Page said. “It’s just a product of people being on the road and traveling at the time that it rains that much and with the drainage (system) here in Lubbock people get in a sticky situation pretty quickly.” Hud Huddleston, the owner Hud’s Auto Service at 8212 Valencia Ave., said about six water-damaged vehicles his staff worked on from the May flooding were also totaled. He said vehicles are declared totaled based on the “value of the vehicle versus the amount lost.” “Most of the ones we saw water was sucked up into the engine and that damaged the engine,” Huddleston said. “They were a higher cost to repair than what the vehicle is worth.”
The fate of water-damaged vehicles Most vehicles that are submerged in water are declared totaled by insurance companies, and in turn the insurers pay the owners who have comprehensive insurance coverage the actual cash value of the vehicle. The insurance companies then sell water-damaged vehicles to salvage companies. “They have contracts with these huge salvage facilities,” Hanna said. “At that point, the salvage company puts on the title of that vehicle that it has been totaled and normally it will explain how it was totaled. The salvage companies normally auction these vehicles off. Most of the people who are buying these vehicles with the salvage title now on this vehicle are auto parts companies.”
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Hanna said most vehicles that have been submerged in water typically have “perfectly normal” body parts that can be sold, but said sometimes water-damaged vehicles can slip through the cracks and wind up on a pre-owned car lot. “I’m sure there are people out there that can go throughout the entire vehicle and take all of the water out and make it look new,” he said. In Texas, it is illegal for used-car dealers to not tell potential buyers about a vehicle that has been declared totaled. “The used-car dealer has to tell their perspective buyer that this has a salvaged title on the vehicle,” he said. “You are buying a car that was once declared totaled. If you buy that car, you’re on your own. There is no telling what may be wrong with it.” Kristen Freis, Allstate Insurance spokeswoman, said most insurance companies discourage people from purchasing a vehicle with a salvaged title. “We want everyone to always be prepared and be aware because buying a flood-damaged car can cost a fortune
in repairs,” Freis said. “They can be really dangerous on the roads.”
How to avoid flood-damaged vehicles Hanna said there are many indicators to look for when a vehicle has waterdamage, and potential pre-owned automobile shoppers need to keep an eye out for them. “They should look inside for any type of possible rust, mold or mildew,” he said. “If any vehicle has been submerged there is going to be water in the engine, throughout the vehicle and upholstery and the electrical system — that’s why insurance companies total a vehicle.” Fries said shoppers for pre-owned vehicle should have a vehicle inspected by a mechanic before purchasing it, and said a vehicle’s history can be checked through services like the NICB VINCheck service (www. nicb.org/theft_and_fraud_awareness/ vincheck), which will show if a car has been damaged in a flood, stolen or declared as salvaged. “It’s critical that you know what to look for when you are buying a used car and how to check flood damage,”
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she said. “Allstate encourages Texans to always take a car in for a pre-purchase inspection by a trusted mechanic before buying a used vehicle and check on the vehicle’s history.” Page said Christian Brothers is always willing to inspect pre-owned vehicles for its customers. He said their shop hasn’t come across a pre-owned vehicle that was being sold with water-damages, but said he does warn customers about the indicators of a flood-damaged vehicle. “We do talk to customers and tell them what are some things to look for when buying a vehicle and what are some signs,” he said. “Water causes corrosion around electrical components so you can look for that green or turquoise color. If you open the door of a vehicle that has had water inside it’s going to smell like molded carpet so it has that musty smell inside if it’s never been cleaned.”
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NACE Moves West
show attendees of last year’s NACECARS. This despite the show adding 20% more floor space and exhibitors. The 2015 show required 54,500 square feet of exhibit space and hosted 6,496 attendees. In 2014 the show had roughly 46,500 square feet for exhibits and 6,253 attendees. Given the 40 percent growth in 2014 over 2013, more was expected. Attendance was a shadow on what was otherwise a remarkable show. ASA President Dan Risley said ASA had hoped for some 8,000 attendees, and Brian Nessen of Stone Fort Group, said that their metrics showed lower than expected repeat attendance from 2014 to 2015, meaning that the show expo had essentially a different audience, albeit less foot traffic on the show floor. There was also acknowledgement of the difficulty in scheduling events co-located with the show, such as the popular MSO symposium, so that they didn’t affect the foot traffic for the exhibits. Said Risley, “It’s modest growth. We expected growth, but we expected
a little more. From a forecasting perspective, I would tell you that we missed the mark for what we hoped for... I’m not overly enamored with 20 percent growth and I’m not overly enamored with [just] a couple hundred new people on the show floor.”
Under Secretary for [VA] Benefits, General Allison Hickey said that hiring more veterans could be the solution to a lack of qualified workers in the industry, noting roughly 250,000 technically adept service members are leaving the military each year
The reasons for subpar attendance are varied and many, with some attributing the turnout to ‘been there, done that’ for NACE in Detroit. Others blamed the proximity to Chicago’s Automechanika event in April and reluctance of midwest shops to attend both. Anaheim 2016 will provide an opportunity for the 37,000 plus shops in
the show organizer’s database to see a state of the art, OEM-heavy tradeshow in the heart of So. California. Risley said that additional international buyers from Pacific Rim countries were more realistic for the West Coast location. Nessen said that not only will next year’s show include new OEM presence, but also that current OEM exhibitors have also verbally committed to return. “The OEs are part of the backbone,” he said. By the time the opening session began on Thursday, July 23, the event had already seen a host of co-located organizations holding meetings including 1 Collision Network, ASE, CCIF, CIC, CIECA, CIIA, CREF, I-CAR, MERA, NABC, OERoundtable, SCRS, State Farm Advisory Council, and WIN. The General Session featured introductions of the keynote speakers by ASA President Dan Risley, broken into 3 sessions, which included a keynote given by General Allison Hickey, Under Secretary for Benefits, Veterans Benefits Administration, made a passionate argument for hiring more vets in collision repair. Other remarks were made by Donny Seyfer, ASA Chairman and a Executive of the Year presentation by Scott Shriber of Babcox Media.
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MSO Symposium During NACE Included Claims Management Models, Future of DRPs and Financing Options by Stacey Phillips, Assistant Editor
The MSO symposium held on Thursday, July 23 during the NACE show in Detroit brought together small, medium and large MSOs to learn about the state of the industry, upcoming trends and what to expect in the coming months and years ahead. Master of Ceremonies Mike LeVasseur, Market Vice President-Philadelphia of Keenan Auto Body, an ABRA Company, facilitated six individual seminars covering a wide range of topics: Claims Management Models; Insurer Panel on DRPs; Shortage of Qualified Employees, Developing Talent and Retention; The ABCs of Financing; and NPS & CSI. Vincent Romans, Founding Principal and Managing Partner of The Romans Group, kicked off the symposium by providing up-to-date information about the industry. “We continue to see the convergence of numerous and dynamic market influences impacting the collision repair industry today including things like a surge in technology, multimarket consolidation, corporate globalization and private equity’s impact funded by its available cash and inexpensive financing,” said Romans. “This, coupled with the high octane velocity of speed associated with change all around us, is driving the need for almost constant transformation, the kind that makes it difficult for all of us to deal with on a daily basis.” He said there is a debate going on within the collision repair industry on how fast this consolidation is taking place. “I suggest to you that it depends on which constituent group, which market segment you are in and the perspective that comes along with that.”
Claims Management Models This panel provided a global overview of what is occurring in the United States and abroad in terms of claims management models. Regarding new vehicles, such as the Ford F-150, Clint Marlow from Allstate Insurance Company talked about the importance of balancing customer choice with the ability to educate consumers. Although Marlowe said they will not direct consumers where to go to repair their vehicles, “We are going to have a discussion with them around the uniqueness of their vehicles, some special repair techniques that may apply
and some questions we feel strongly they need to ask their repair facility,” he said. When it comes to the data required to repair the vehicles, Mark Mandl, from Ford’s Customer Service Division, said it’s important to work
Master of Ceremonies Mike LeVasseur, Market Vice President-Philadelphia of Keenan Auto Body, an ABRA Company, facilitated six individual seminars covering a wide range of topics during the MSO Symposium
with insurers in terms of repairability. “Getting their feedback in repair does make a direct impact in terms of a vehicle coming out of the factory.” Ron Doerr from Assured Performance Network, stressed the importance of looking at data from the shop user’s perspective as well to ensure vehicles are fixed properly. “From the shop perspective, what I hear more and more is ‘it’s not just the information it’s the documentation that is valuable to us.’” Looking into the future, Marlowe said five years out he foresees leveraging data even more to understand customers’ needs. This includes looking at social media to learn their preferred communication path. “It’s a cultural change for us,” he said. Doerr said with more information available, “I think we’re going to see more transparency throughout the whole process. It can be seen so it will be seen.”
Insurer Panel on DRPs LeVasseur moderated an interactive discussion on the future of Direct Repair Programs. Attendees heard from several insurance companies and two MSOs first-hand some of the things that are working in the environment today and the challenges perceived. Insurers, which included Allstate, American Family Mutual, Progressive and State Farm, discussed what they are doing to ensure customers’ vehicles are being repaired at shops equipped and trained to perform the repair. “One of the challenges is getting the right mix of shops,” said Danny Henderson of American Family Mutual
18 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
Insurance Company. Henderson pointed out that everyone wants high volume; however, it’s important to have a mix of high volume that’s controllable. “You don’t want it too low, you don’t want it to be high; otherwise, it can have an impact on customer service.” He said another challenge they are aware of, in particular with DRP shops, is how to have the correct balance of insurer oversight and shop self-management. “That’s a challenge we continue to face and are working hard to figure out.”
Shortage of Qualified Employees, Developing Talent and Retention During this discussion, panelists talked about some of the ways they are finding, developing and retaining new talent, which can be a challenge for shop owners facing an aging workforce. One of the things panelists said they do is to demonstrate how the job is often unlike the reality shows they see on t.v. This includes showing them that they are going to get dirty and be on the ground and many shop owners find that some of their new hires don’t like it and leave. It usually takes a couple of weeks to discover if a new employee has the right attitude, show up on time and are the right fit for the job. This gives shop owners the opportunity to find out before sinking in a lot of time and training. Participants recommended getting employees, especially students, engaged in the business as well as addressing how they are compensated. “We hear from school instructors that other technical trades are facing the same dilemma of having an aging workforce. They are paying significantly more in their fields at the entry level,” said Brandon Eckenrode from the Collision Repair Education Foundation. “If we want to keep them in this industry, I think this is something that needs to be reviewed in terms of making sure it is competitive with the other trades; otherwise, we’re going to lose those students.”
The ABCs of Financing Four experts in finance and MSO development helped the MSOs in attendance understand the financing alternatives available. They shared the steps involved from growing their businesses to achieving liquidity. Guest speakers included an advi-
sor who helps entrepreneurs, a lender who helps finance them, a consolidator who acquires them and the investment banker who manages the sale. Romans said MSOs have three basic choices. “They can grow and thrive, they can sell or grow to sell, or they can keep milking the cow,” he said. The discussion centered on the first two. David Roberts, Managing Director and leader of the Automotive Services Group for FOCUS investment Banking, reminded attendees about the high-risk nature of the business. He said the risks and rewards are not always balanced; therefore, it is important to get things balanced so shop owners aren’t taking too much risk for the reward they expect to gain. “They need strategies, plans, people, systems, knowledge, processes, capital and time,” said Roberts, who was also the co-founder of Caliber Collision in 1995. “Whatever direction you are going to go, whether you are going to grow and thrive or going to sell, those are the things you need.” Courty Gates, President of Vesper International, discussed financing for smaller shops. He said it’s important to remember four things while going through the process of raising money. “Be persistent, be realistic, be determined and tell a story.” The other two panelists included Steven Beckett, Partner of Peninsula Capital Partners and Ken Hanley, Senior Vice President of Business Development for Caliber Collision Centers. NPS & CSI As MSOs continue to grow their business, maintaining high NPS & CSI scores often can become challenging, especially with multiple locations. In this session, panelists talked about what they are doing to improve and maintain their scores. In addition, they shared information about how turnover impacts the results and what they are doing to combat it. Autobody News will provide more details of the MSO symposium in the September issue of our publication, as well as additional coverage of NACECARS events.
www.autobodynews.com C
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 19
NACE 2015 Entertains, Informs and Wows the Crowd
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GM Schedules MyPriceLink Initiative; Aims to Hit Market Before Winter according to Mayer. “Last November at SEMA we anGM hosted a panel discussion on its mar- nounced our MyPriceLink initiative, and ket focused collision parts initiative, we had an overwhelming amount of MyPriceLink, at the 2015 NACE show feedback from the insurance industry on Friday, July 24. ASA’s Dan Risley and the collision estimating systems that moderated the panel, which featured felt there were better ways to integrate,” GM’s Kris Mayer, Gary Gumushian Mayer continued. “So we listened, and of AudaExplore, Bill Lopez of OECon- we’ve been working in the background to integrate with all three of the collision estimating system to bring this initiative to the market.” Mayer said that GM began piloting MyPriceLink on Wednesday, July 23 in Denver. Five of the top 10 insurance carriers are aiding in the 90 day testing process. If all goes as expected and the stakeholders are confident, the initiaitve will MyPriceLink Panel (l to r): ASA’s Dan Risley, GM’s be available to the public before Kris Mayer, Gary Gumushian of AudaExplore, Bill the winter. When asked how Lopez of OEConnection, Jim Kinsherf of CCC Information the initiative will affect the inServices, Jesse Herrera of Mitchell International, and dustry workflow, Maher reGM’s John Eck sponded. “Let’s start with the body shops. nection, Jim Kinsherf of CCC Information Services, Jesse Herrera of Mitchell They’re the folks that are trying to repair the vehicle. They shouldn’t have to International, and GM’s John Eck. These key industry players dis- spend a lot of time administratively to cussed topics and questions from the try and get a price. Their core role market regarding the upcoming launch, should be bringing vehicle backs to which could be as early as October 2015, pre-accident condition before moving by Victoria Antonelli
onto the next one.” While MyPriceLink will decrease administrative tasks for body shop technicians, dealers may have the opposite experience. “Dealers will be taking on a little bit more of the workflow change than the shop,” explained Lopez. “Because there is no static price anymore, the dealer will have to go into the OEC portal and do a quote lookup.” Another question Risley directed at the panel concerned the handling of parts price changes. “We expect parts price changes to happen every so often, certainly that won’t go away,” said Lopez. “From a shop perspective, it’s the same; the shop will write the estimate, it will hit the dynamic pricing engine, and when it comes time to make the order from the dealer, the dealer will be able to do a quote lookup. Then they will see what the latest price is, and if there is a price change, they’ll decide whether or not they’ll honor the price on the estimate, or let the body shop know.” “The idea of real time quoting is growing in importance and value in our industry, and I think it’s a trend that will continue,” said Kinsherf. More questions on the MyPrice Link initiative? Visit http://marketing .oeconnection.com/mpl
ASA Publishes Updated ‘NotIncluded Operations’ Charts
The Automotive Service Association (ASA) released the latest update to its “Not-Included Operations” charts. The publication is available free to the industry and designed to ensure collision repairers consider all of the possible operations when they write an estimate. The title, “Reference Chart of Not-Included Operations When Installing New Replacement Parts,” is available on the ASA website and serves as a quick summary of general, not-included operations, and should be used in addition to procedure pages supplied by individual information providers. “ASA is committed to providing the industry with the tools and resources they need to seek reimbursement for the steps necessary to properly repair a vehicle,” said Dan Risley, ASA president. “The ASA Not-Included Charts are an easy to use guide that helps the estimator accurately document all the necessary labor operations for the three major estimating systems.” The publication is available in a PDF format for ASA member-shops and the industry at www.asashop.org under Free Industry Tools and Resources.
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 21
Dayton Body Shop Brings the Caped Crusader to the Community with a Batmobile by Zachary Berry, The News Wheel at thenewswheel.com
Carl’s Body Shop The sound of an engine echoes through the streets. Like thunder, the engine’s roar serves as a forerunner to the sight that soon appears. Whipping around the corner like a bat out of hell is the powerful and fearsome Batmobile. However, these aren’t the streets of Gotham City, and Batman is not behind the wheel. Instead, this Batmobile traverses through the streets of Dayton, Ohio, and its owner is Matt Miller, president of Carl’s Body Shop. Carl’s Body Shop is a full service
Batmobile Interior
mechanical and body shop located in downtown Dayton on 1120 Wayne Avenue. Founded in 1934, the shop is over 80 years old. Its longevity is accredited by its staff to its commitment to service. In the 1930s, brothers Carl and Al Hounshell moved to Dayton from Kentucky. They established an auto body shop of their own. Al went on to open his own business, called Al’s Auto Parts, while the eponymous Carl maintained the body shop. Carl Hounshell lived by a code of
customer commitment. He made sure that every customer was satisfied with their product. “Carl was a hands-on guy,” Miller says. “He was actually one of the body techs.” Carl led the business for over 50 years. Unfortunately, in the late 1980s, he was diagnosed with cancer. Carl Hounshell passed away in 1988. Hounshell’s family began searching for someone to lead the business. They soon found the body shop’s new owner in the form of a body technician and painter, Matt Miller. “One of my best friends I went to high school with was his [Carl Hounshell’s] grandson,” Miller says. “We got together and we talked about possibly, instead of working here, maybe I should purchase the business.” Miller decided to indeed purchase the body shop and has been the owner since 1989. As the president and owner of Carl’s Body Shop, Miller inspects every single vehicle that enters the shop. Over the years, several services have been added to the facility to make it a full body shop. Towing and mechanical services expanded the operations. Meanwhile, seeking a way to create a complete service for commercial vehicles that came in for repairs, Miller established a vinyl graphic service around 8 years ago. “Today, with digital printing, it’s just unbelievable,” Miller says. “You can take a picture of anything, and we can put it right on their vehicles.” Carl’s Body Shop has purchased several properties in the surrounding area to expand the shop itself. The body shop has ended up with more than 40 properties. Due to the trust that has de-
veloped between the body shop and its customers, Carl’s often sees exotic vehicles brought in for repairs. According to Miller, everything from classic show cars to Lamborghinis have been worked
Carl’s Body Shop president and owner Matt Miller with Batmobile
on by the staff. With the shop having been in Dayton for so long, Miller sought out another way to give back to the community. “I just felt like we should give back to the area,” Miller says. “The area’s been real good to us. We’ve been blessed as a business financially.” He found the answer in his childhood memories of his personal hero: Batman. “I was five years old when they came out with the 1966 series,” Miller says. “I couldn’t wait to get home from school and watch the show.” Miller decided a unique way to help the local Dayton area would be by creating his own Batmobile to promote different community events. In order to recreate Batman’s iconic car, Miller sought the help of a friend who created custom fiberglass exteriors. Once the fiberglass body for the 1966 Batmobile was created, the exterior was placed over a 1976 Lincoln town car. After that, the
different little Batman details had to be created. Overall, the project took about 24 months to complete. Miller and his staff transport the Batmobile to different charity events, community gatherings, and church festivals throughout the year. People also come down to the shop itself during field trips to see the car, which is housed in Miller’s own personal Batcave, a garage lined with Batman memorabilia.
Batcave “Batman had the cool car, and I’m a car guy,” Miller says. “Batman’s just always been an icon. I think he’s stronger than ever.” Since then, the shop has crafted even more custom Batman vehicles. In addition to the Adam West Batmobile, Miller has a Batcycle from the 1966 series and a custom “Jokermobile.” Miller is currently working on a replica of the Batmobile from Tim Burton’s 1989 Batman movie. While the Batman cars are interesting, Miller says it is the shop’s continued commitment to service that keeps people from all over the Miami Valley visiting Carl’s Body Shop to have their cars repaired. “The fact that Carl’s has kept that reputation is the reason why we’re always really busy and we never have to worry about running out of work,” Miller says. With its commitment to excellence and its involvement in the community, Carl’s Body Shop has become regarded by Dayton locals as the body shop that they deserve and the one they need.
Autobody News thanks The News Wheel for permission to reprint their article.
84-year-old South Milwaukee, WI Shop Owner Loses Fight to Prevent Demolition
by Tom Murray, TODAY’S TMJ4
Pete Sahagian said he built a business and building with his own two hands. “It’s my life,” he told TODAY’S TMJ4 reporter Tom Murray. Sahagian said Sahagian Auto Body has been at College and Packard in South Milwaukee since the 1960s. The owner, now 84 years old, could literally see it all come crumbling down. “I lost my business and my property,” he said. The City of South Milwaukee said roof repairs do not meet building codes and - in a rare move - the city began demolishing the building on July 21. It will take two days to clear. “The issue isn’t time,” said city
attorney Joseph Murphy. “It’s Mr. Sahagian’s finances.” Murphy said the government has been patient, but that Sahagian simply
Pete Sahagian, former owner of Sahaigan Auto Body, stands next to his shop a month before it was demolished by the City of South Milwaukee. Photo Credit: TODAY’S TMJ4
22 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
cannot come up with money he needs to adequately upgrade the building and cover thousands in unpaid taxes. The auto shop’s roof and electrical systems had failed inspections dating back to 2013, according to court documents. Sahagian, a Bronze Star medal recipient and fixture in the community for more than half a century, told the Milwaukee-Wisconsin Journal Sentinel that the roof had been damaged during a storm and he had trouble securing his insurance claim to fix the roof. “I believe he would like to fix the property,” the city attorney said. “He just doesn’t have the funds, hasn’t had the funds and, after two years, it’s become apparent he’s not going to have the funds to do it.”
Sahagian admitted he has had financial trouble, but hoped the auto body would survive for another generation. The shop owner did attempt to repair the roof himself for significantly less than building inspector Steve Petery estimated, but both Petery and an independent engineer said that the decking used was not suitable for the roof. On June 15, Judge David Borowski ruled that Sahagian had to vacate the building by July 15, reported the Milwaukee-Wisconsin Journal Sentinel. We would like to thank TODAY’S TMJ4 for permission to reprint this article.
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 23
Media and Publicity for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
What is Your Marketing Budget…Or Do You Have One? with Ed Attanasio
I often ask body shops, “What is your budget for marketing and advertising?” and they look at me like I just asked them to explain quantum physics (which I’ve learned is tougher than rocket science). You don’t need to come up with a complex algorithm to devise a budget, but once you see the numbers, you might not like them. The problem is that many body shop owners have had bad experiences with marketing or advertising and now they’re gun shy to say the least. In many cases, they made unwise decisions and now the word “marketing” turns their stomach. “Our Yellow Pages ad didn’t work,” one shop manager said. (Anyone could have told you it’s a dying medium) “We paid $200 for our web site and it doesn’t work.” (You get what you pay for) “I didn’t realize TV advertising was going to cost us so much.” Roger Henson, (Surprise—really?) owner of AdvertisHow does this reing Business Conlate to whether or sultants believes that every company not your shop has a of any size should marketing budget? have a marketing/ Because, in many advertising budget cases, shops that written into its inihave burned themtial business plan even before openselves making bad ing the doors decisions in the past about marketing aren’t really enthused about devising a marketing budget. Dino DiGuilio, the owner of Body Best in Sonoma, CA has been in the collision industry for roughly 25 years, but by learning as much as he can about marketing and advertising and through his involvement in Management Success, he knows more about these topics than most marketing managers at large corporations. DiGuilio has a marketing budget that fluctuates depending on the time of year and based on how many cars he has in his shop, but basically it stays the same, month after month, without interruption. “A marketing budget is like any other budget you have in other aspects of any business—operations, employee compensation, equipment acquisition, supplies, etc.,” he explained. “It’s money that is set aside and earmarked for marketing and that way we don’t have to
look around to find the funds when we want to do something, such as a door-todoor mailing, flyers, ads and the like.” Although several factors go into devising his marketing plan and its budget, DiGullio says that a simple equation can be used to determine any shop’s marketing budget. “The rule is 3 percent to 7 percent of your annual gross,” he said. “We never go below 5 percent no matter how busy we are, because I believe that anything less than that may affect the bottom line. During the slow season (October-January) we normally step it up to 7 percent and during the summer months when we’re jammed here, we will rein it in to 5 percent.” Some of DiGuilio’s marketing efforts are seasonal, but other things are year round. He said these are the staples of the business and never deviates from them. “For instance, customers always get either a t-shirt with our name on it or a grocery bag, whatever they choose. We use a handicapped workshop for the t-shirts, so that effort is definitely a winwin. It’s the perfect combination of philanthropy and promotion, so we never cut back on that. We also do a quarterly newsletter that we print rather than do it online, because we have a lot of older customers who still want something they can hold in their hands. Some of our younger clients like it too, because everything is online now and this is something tangible.” Roger Henson is the owner of Advertising Business Consultants in Silicon Valley. He believes that companies should devise a marketing and advertising budget that is flexible and ever-changing, based on a wide range of market conditions. “This is an ongoing conversation that I have with many of my clients, including automotive companies of all sizes,” Henson explained. “One old advertising veteran told me many years ago that when a business owner finds an advertising medium he is interested in, he finds a way to get it done. Clients who cry poverty will suddenly pony up the cash when they see an opportunity that they believe in. That works for a lot of businesses, but I don’t believe it’s the best way to do it.”
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Henson said that a marketing budget should be written into any company’s business plan even before they open their doors.
I’m going to spend 4 percent of my gross on advertising and marketing just doesn’t work for some companies, so their budgets are fluid and they can either expand them or rein them in, depending on what’s going on.” There are no hard and fast rules when it comes to budgeting anything and marketing is one of those situations, according to Henson, who has more than 40 years of experience in advertising and promotions. “I tell my clients to pick a number and try to stick with it, but you don’t have to be married to it. Make a plan and don’t freak out if you have to change it on the fly. Five to 7 percent is a good starting point, but life changes, businesses change and the market can alter dramatically, like it did in 2008, so bend and adapt and use your ear-marked funds as you need them. Some months may cost you more, but hopefully you can make adjustments during those other months when business is good.”
Dino DiGuilio, the owner of Body Best in Sonoma, CA (shown here with his family) has a marketing budget that fluctuates depending on the time of year and based on how many cars he has in his shop, but sticks to a 3% to 7% formula that works for him
“It should be a line on you overall cost of doing business, just like rent, insurance, equipment, etc. Savvy owners may not have a specific budget, but they know roughly how much they can spend in any given month and that works for them. To sit there and say—
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CARSTAR Walt’s Auto Body Helps Make Wish Come True for Topeka, KS, Child
Dean Koelzer, owner of CARSTAR Walt’s Auto Body in Topeka, has restored a lot of things on wheels, but his latest project was a dream come true, literally.
Through Make-A-Wish® Kansas, Koelzer learned about four-year-old Daniel, the youngest of Jeanette and Joe Wood’s six biological and five adopted children. He’s full of energy, loves being outside and lives with Duchenne muscular dystrophy. The degenerative condition will likely shorten his life to his 20s. The family said Danny blossoms most when he’s around trains. He has already visited more than 30 states, counting trains as they move along the highways. At home, toy train cars and tracks are never far from reach. When Make-A-Wish came up with the idea to give Danny his very own train in his backyard, Koelzer was all aboard to help. Dr. April Abernethy, President and CEO of Make-A-Wish Kansas,
said the process actively began in January. Through contacts she has made over the years, she found a man named Paul Neudecker, who runs an Illinoisbased company called Premier Works. He was selling a mini train and donated a large percentage of the cost to the project, even delivering it to Topeka at no charge. However, time had taken its toll and the train needed a lot of work. Make-A-Wish approached Lance
“It’s a way for us to give back to the community,” Koelzer said. “This community has been really good to us and there’s not a better organization than Make-A-Wish.” With the centerpiece on track, Davis Electric wired for the electrical work and Trusted Choice Insurance donated money to help buy replacement pieces. Make-A-Wish and Danny’s family led an army of volunteers—in-
Four-year-old Daniel Wood is the youngest of Jeanette and Joe Wood’s six biological and five adopted children
Daniel, who has muscular dystrophy, rides his train that CARSTAR Walt’s Auto Body in Topeka, KS repaired for him
Smith, whose son previously had a wish granted, to talk to his boss at CARSTAR Walt’s Auto Body for an unusual restoration challenge. Koelzer got his first look at the locomotive and wondered what they’d gotten themselves into! Still, he was willing to let his crew give it their best
shot.
cluding real Army soldiers from Fort Riley and KU’s Chi Omega-Lambda chapter—to lay the tracks, add a play area complete with fort, sand box and trampoline, and even build a depot. Lowe’s and International Mulch helped offset some of those costs. “We’ve had 15 businesses, clubs
and associations involved with this, hundreds and hundreds of volunteer hours,” Abernethy said. Danny, recovering from a recent hospital stay, had no idea what was happening in the backyard until a recent Saturday, when his parents walked him outside for a surprise. There stood a crowd of roughly 50 people, sounding whistles and singing, parting the way to reveal his very own train. While the noise of the crowd was initially overwhelming, it took just one lap for Danny to enthusiastically nod yes when asked if he wanted to take another lap. “It is an amazing opportunity to see the family come together with the community that they’re a part of and see the magic that a wish can bring,” Abernethy said. It was a moment that made the past six months come full circle for all involved. Smith and his son climbed aboard for a lap with Danny, and Ash Davis of Davis Electric proudly pushed the button to send the train on its inaugural run. “The smile on Daniel’s face was priceless,” Koelzer said. “It made all this worth it—all the hard work they put into this, to see the smile on that little boy’s face was truly amazing.”
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CollisionFix.com Website Educates Public About Industry Issues and Unites Shops When Ray Gunder from Lakeland, FL’s Gunder’s Auto Center discontinued his DRP relationships, he said that he wasn’t sure if his shop would survive. The DRP programs accounted for approximately 30 percent of his Florida-based business and he knew that he needed to do something. Then he met Jeff Roberts from Eagleville Marketing Group and together they developed a commercial for the local cable networks. Gunder said he received an instantaneous response and his second month of advertising on air was his best month in 45 years. “It has been incredible since day one. Every bay in our shop is full,” said Gunder. “Our body and repair shop is completely circled with work. We have more insurance work on premise than at any time when we had DRP relationships.” Gunder’s business is one of 20 collision repair shops listed on a new website, called CollisionFix.com, launched by the Eagleville Marketing Group in June. Roberts, owner of the Florida- and Tennessee-based advertising agency, said the mission of the site is to give a voice to the collision repair industry.
Ray Gunder (left) pictured with bodytech Lance Smith who has worked for Gunder’s Auto Center for approximately 35 years
Geared toward consumers, www .CollisionFix.com was created to educate the public about issues surrounding the industry, such as the difference between original quality, OEM and low-quality aftermarket parts and the use of junkyard parts. It also addresses consumers’ rights to choose a body shop, regardless where an insurance company suggests they go. Roberts said the site is for shops that want to take a stand against insurance companies “steering” their customers to other shops. “Not all insurance companies are
bad, just the ones that interfere in the consumers’ right to choose, and promote the use of substandard parts,” said Roberts. “Those that join Collision-
Fix.com are shops that believe in the consumer first and profit second because profit comes when you take care of the consumer. We feel that when shops strive for perfection and are good members of their community, the profit will come, and of course growth is inevitable.” Roberts said that many shops struggle to stay in business and don’t advertise at all. CollisionFix.com helps unite shops in a certain area, enabling them to combine their advertising dollars and be able to afford to advertise on air. “If you invest a part of your annual sales into marketing your message and do it in a way that’s professional and not hokey looking, you will grow,” said Roberts. “The bottom line is marketing with the correct message, on the right networks, at the right frequency. You do that consistently and there is no level you cannot advance to.” His goal is to spread the word about CollisionFix.com so when an accident does occur, consumers can check online for a shop nearby. Roberts said 90 percent of consumers choose a body shop that is fairly close to them. Gunder has been advertising on air for about a year. After starting out on his own, he teamed up with a couple of other shops that had heard about his success. “We were able to give a lot more exposure for the same amount of money,” he said. Now when customers enter Gunder’s Auto, he finds they mention the commercial and what they learned about the industry. “They know enough that they don’t want to use junk on their car,” said Gunder. “They want a quality repair and the ad educates them very well on that. When they get here then we educate them further.” Bobby Price of Price’s Collision Centers in Nashville, TN, said he has had a similar response.
26 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
The business owner started Price’s Collision Centers in 2000 in Brentwood, TN. Price currently operates nine shops and number 10 is scheduled to open in the fall of this year. It will be a dedicated aluminum-repair facility located next door to his flagship store in Brentwood. Price employs 155 collision repair professionals and earned just over $20 million in revenue in 2014. The company also operates an apprenticeship program out of their training center in the company’s Mt. Juliet location. Price started working with Roberts when he first opened his business. “We began to advertise Price’s as a repair center that focused on value retention and passenger safety as our number one goals,” said Price. “We built the brand around this philosophy and have set ourselves apart from the competition in delivering this message via radio, tv and print.” With an advertising budget exceeding $100,000, they are also corporate sponsors for the Tennessee Titans and Nashville Predators teams. “We work with the community and
cess has grown through the years through the use of their message to consumers. “They have the reputation of never taking a short cut to repair your car, or using a low quality aftermarket, and junkyard parts,” he said. Price has also invested in training, earning several high-end manufacture certifications. This has helped them stand apart from others. “Bobby Price has been a mentor to me and deserves a lot of credit to our agency’s success in helping other shops,” said Roberts. “His marketing message of anti-steering, using quality parts, and quality repairs has helped us understand the collision industry in a way no other agency can. Prices Collision has been a client of ours for over 14 years and that experience for us is immeasurable.” With a background in the automotive industry, Roberts worked as the general manager of a Ford store in Pennsylvania for nine years before coming to Nashville to work at another advertising agency. He opened his own agency, Eagleville Marketing, two years later, in 1998.
Price’s Collision Center in Brentwood, TN is one of Bobby’s Price’s nine locations
support charities that we feel benefit us locally,” said Price. “Co-branding with such notable partners has brought credibility and an immeasurable awareness to Price’s message.” He said that in respect to the advertising they have done, “It’s important to build your brand while separating your business from the competition. Your message will differentiate you from the rest.” His advice to other shops is to “be creative in your marketing and the message you deliver.” Roberts said much of Price’s suc-
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Although EaglevilleMarketing .com has many clients in other industries, Roberts said he has gravitated to the collision repair industry as more and more shops have asked for assistance. “If you’re just waiting for things to change you will lose the battle,” said Roberts. “By continuing fist quality work for your customers plus marketing and educating the public to these facts you will stand a cut above the others.” Visit www.CollisionFix .com for details.
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Please contact these dealers for your Honda or Acura Genuine parts needs. H O NDA T E X AS
TE XAS
LOU IS I AN A
TEXA S
Bankston Honda
Honda of Frisco
Rusty Wallis Honda
Le w i svi lle
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Dallas
H ar v e y
800-344-8611 972-219-0021
866-442-2711 972-731-3176
877-466-3272 214-328-3891
800-943-4227 504-368-5687
Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com
Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com
Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com
Dept. Hours: M-F 7-5:30 parts@superiorhonda.net
Benson Honda
Honda of San Marcos
Wholesale Parts Direct
Walker Honda
Sa n An to n i o
Sa n M a rco s
A us t i n
A l ex a n d r i a
800-727-8705 210-340-0831
866-392-1313 512-392-1313
800-234-4441 512-458-2910
318-448-8255 318-445-6677
Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com
Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com
Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com
Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com
Cleo Bay Honda
Howdy Honda
K il le e n
Au s t i n
877-253-6229 254-699-2478
877-941-6513 512-443-4300
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com
Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com
Fenton Honda of Longview
Kelly Grimsley Honda
Lon gv iew
800-228-1910 903-753-5921 Dept. Hours: M-F 7:30-6; Sat 8-4 victor.ortega@fentonmotors.com
Honda Cars of McKinney McK i nn e y
972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com
O de s s a
844-453-5594 432-334-6632 Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com
Russell & Smith Honda
OKLAHOM A
Superior Honda
N EW MEX I CO
Don Carlton Honda
Garcia Honda
Tu l s a
A l b u q u e rq u e
800-722-2379 918-622-9670
800-677-6632 505-260-5002
Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com
Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
Fowler Honda N o r ma n
888-715-3197 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com
H o us t o n
800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com
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Don Carlton Acura of Tulsa
Walker Acura
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800-359-8555 504-465-8555
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Mac Churchill Acura
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800-749-6227 713-371-4700
888-824-9634 817-806-0571
Dept. Hours: M-F 7-6; Sat 7-5 hoehns@autonation.com
Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com
David McDavid Acura
Sterling McCall Acura
A u stin
H o us t o n
800-575-3553 512-401-5976
713-596-2337 713-596-2338
Acura of Baton Rouge
Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com
Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com
866-733-2861 225-756-6166
David McDavid Acura Pl an o
888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
M e t a ir ie
Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com
LOU IS IANA
B at on Ro ug e
Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
972-964-6044 Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 29
Media and Publicity for Shops Lead with Caution Whenever Contracting ANY Marketing Firm with Ed Attanasio
Many body shops will use a piece of equipment, paint or other products in their shops on a trial basis before they decide to purchase them. They will use a computer management program to see if it truly works and if their staff is comfortable before integrating it into their day-to-day operations. But, why do some of these same body shops sign up and spend significant amounts of money with marketing companies before checking their references or even doing their basic due diligence? Body shops know what they know and what they’re good at — and that’s fixing cars, but what do they really know about marketing? Through training and classes, some shop owners and managers are savvy about press relations, direct mail marketing, online marketing, branding, collateral and even things like graphic design and blog creation. But in the end there is too much to know and most of this stuff is out of the average body shop owner’s area of expertise. Unfortunately, some marketing companies realized long ago that body shops don’t know much about marketing and for that reason unscrupulous people will take advantage of collision repairers and overcharge them for services and products, all the while under performing. We’ve seen it in one form or another more than a few times all over the country. For a long time, shops were getting phone calls from companies that said they could get their name at the #1 position on Google within just a few weeks. Body shop owners in competitive markets jumped on these offers. Without checking out the companies first, they simply took their word. In the end, some shops lost as much as $5,000-$8,000, especially the ones with multiple locations. Organic Search Engine Optimization (SEO) takes time and effort, and by just doing a minimum amount of research, the victimized shops would
have known that these fly-by-night virtual companies were giving shops an offer that was too good to be true. At first, the deal appeared to be solid. The shop owner looked at his web site and indeed saw that his shop was now #1 on Google. Obviously, they didn’t know what Black Hat SEO was or about the repercussions involved. Black Hat SEO is a practice that increases a page’s ranking in search engines through means that violate the company’s (Google in this case) terms of service. Implementing Black Hat SEO tactics and strategies can get your site banned from search engines, excluding you from the number one traffic referral source on the Internet, which is exactly what happened to these poor body shops. After paying the marketing company, they found out that Google was shutting their web site down without explanation (and good luck trying to get someone from Google on the phone). In this article, I’ve decided not to mention any company names, because hopefully if they read this, they will see the light and gravitate away from the dark side. All of the body shop owners and managers that I interviewed for this piece also did not want to talk on the record, primarily because they’re currently in court with some of these so-called marketing companies. Also, please note that most of the automotive marketing companies out there are 100 percent honest and do great work, but from what I’ve been hearing recently, a few bad apples have negatively impacted the others. It all comes down to what every company wants and expects from any vendor—authenticity, complete transparency and the absence of “hidden fees” and “blatant up-selling.” Here are some tips for not getting ripped off by an unscrupulous marketing or advertising company: ■ Check ALL their references.
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
The references that most companies provide are normally the ones they’ve cleared, so do some research and dig a little deeper. Call the local Chamber of Commerce and ask around. Also check out Yelp and Google them for possible consumer complaints. There’s also a great site called Rip-Off Report that can help you as you sort through the shady operators in the hopes of finding a good company. Another great way to sort out the fraudsters is to check the Secretary of State’s website to make certain that they are registered and even legal to do business in your state. Just like with body shops, any consumer should only work with a licensed marketing company for obvious reasons. ■ Let them prove themselves. One distributor of collision repair products told one marketing company that he wanted to work with them, but for at least the first project, full payment would come but only after the job was completed. You should let all your ven-
dors prove themselves first and especially with marketing companies. Once they get your money, they hold the reins, so don’t give it up until they’ve shown what they can do. One shop in northern California contracted with a marketing company and then suddenly the bills started coming in with ridiculous charges, including “invoicing charges.” That’s right—the company was charging them for sending them their bill! Then, when they tried to cancel the company’s services, they hit the shop with a bill close to $10,000 for “cancellation fees.” Now the shop’s owners have to travel to the Midwest to defend themselves in a small claims court, all because they didn’t carefully check out the company first. ■ Read all contracts carefully. One body shop owner foolishly signed multiple contracts with one marketing company thinking they were all copies, which turned out to be a major mistake, because each one was different. If any
company shows you more than one contract—beware. ■ Stay local. One body shop hired a company to do a new logo, unaware of the fact that they were located in India. They never got the logo after transferring the money through PayPal. When the deal fell apart, there was no one in this country to sue. Retain control by working with companies that are close enough geographically that if something goes sideways, you can go there and deal with it. And if a company does not have a physical location (listing only a PO Box, for example) that too is a red flag. ■ If it looks too good to be true, it probably is. If a marketing company claims that they will bring you a certain number of cars by using their services, be wary…very wary. One poor body shop manager was told by a shady company that they can double his business by signing up with them for a year. One year later, his business was down 30% due to the fact that three MSOs moved into his territory, despite all of their marketing efforts. If any marketing firm guarantees anything--stay away, because not even the most talented marketing minds in the world can assure you things like more
cars or more revenue. ■ Tell the world. If you’ve had a bad experience with any company, let your community know by Yelping them or at least telling your friends, associates and colleagues. Unscrupulous marketing companies use the old “turn and burn” technique, because they know there are a ton of businesses out there that they can scam. Don’t make it easy for them by keeping it your little secret because once they’ve wronged you, they’re likely just out there looking to do it to the next guy. Like I mentioned earlier, most marketing companies and ad agencies are honest, accountable and do amazing work, but there will always be that handful that are focused more on a quick buck than on quality. So beware and follow your instincts— but also do your research and check them out carefully before signing on the line that is dotted.
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Michigan Bill Would Prohibit Insurer-Mandated Parts Procurement from Specific Suppliers or Processes On July 1, Michigan State Sen. Joe Hune (R-22), chairman of the Senate Insurance Committee, introduced Senate Bill 430, a bill that amends the insurance code to prohibit insurers from requiring automotive repairers to use a specific vendor or process to procure parts and other materials. If enacted, this legislation would effectively end all such requirements in current directrepair program agreements for Michigan shops. This bill was introduced in response to the Automotive Service Association’s (ASA) advocacy efforts in the Michigan legislature. Ray Fisher, president of ASA-Michigan, said, “This bill would continue to allow repairers to choose their parts procurement systems and their parts vendors as they currently do with a majority of their customers’ insurance carriers. In turn, this will continue to increase efficiency for the automotive repair process by supporting local parts vendors and ensuring quality parts for consumers.” ASA President Dan Risley echoed Fisher’s remarks. “ASA has communicated our concerns with mandatory
parts procurement to the industry,” said Risley. “We believe that direct repair program mandates to utilize specific vendors to purchase parts and/or thirdparty software applications adversely impacts collision repairers and consumers. “When you allow repairers the freedom to choose the best means to efficiently operate and manage their business and the claim, it benefits all the stakeholders (insurer, repairer and the consumer). This bill will allow collision repairers to identify and select the best vendors to purchase and source parts. More importantly, it will foster healthy competition among parts vendors and third party software providers where the best product and service will prevail. A free and open marketplace always results in better product and service.” S.B. 430 is now before the Committee on Insurance for further consideration. If enacted, this bill will go into effect within 90 days. To review S.B. 430 and related issues, please go to ASA’s legislative website, www. TakingTheHill.com.
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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.
Surveys Show ‘Who Pays For What’ in Terms of ‘Not-Included’ Procedures with John Yoswick
Fully one-third of collision repair shops nationwide said they have never asked to be paid for “masking the engine compartment” when this “not-included” procedure has been necessary as part of a repair, yet another onethird of shops who do seek to be paid for it say they receive that payment “always” or “most of the time.” That finding is just one of hundreds revealed in a survey conducted recently by Collision Advice, which is also launching a new survey this month. “This confirms something I see as I work with shops around the country,” said Mike Anderson of Collision Advice. “On this one procedure alone, for every shop not including this necessary procedure on their estimate, another shop is getting paid for it most if not all of the time.” More than 980 shops around the country responded to the survey, which asked them to report how often
they are paid for 26 refinish-related procedures by the eight largest auto insurers. “With that level of response, I believe is the largest survey ever examining this subject,” Anderson said. He said it is clear from the results of this survey that whether or not a repair facility is reimbursed for a particular procedure depends, to some degree, simply on whether or not the shop negotiates for that operation. Though the survey found that reimbursement frequencies do vary by insurance company, DRP status and region of the country, it is clear that none of the procedures are universally rejected by insurers. Anderson said the quarterly surveys help raise awareness of not-included items and operations that shops may be doing but not itemizing on estimates. “The surveys will help shops understand what these operations are,
National Associations
and whether other shops seek and receive compensation for them – or if they truly are ‘the only one,’” Anderson said. The 62-page report of the first survey findings is now available by clicking on the “Who Pays For What?” logo on the Collision Advice website (www.CollisionAdvice.com). Shops can also use that link during the month of July to take the latest of the surveys, which covers structural/frame and mechanical-related operations. Anderson said each survey, which will take about 15-30 minutes, should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each individual shop location (whether a stand-alone business or part of a multi-shop operation) may submit one response to the survey.
Those who complete the survey (and provide optional contact information) receive the survey findings at no charge. Each shop’s individual responses are held in the strictest confidence and are not released in any way; only cumulative data is released.
For more information about the surveys and findings, or to take the current survey, click on the “Who Pays For What?” logo on the Collision Advice website (www.CollisionAdvice .com).
Collision Advice (www.CollisionAdvice .com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and one-on-one in the shop.
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
CREF Urges the Collision Repair Industry to Donate to Improve the Industry’s Future with Chasidy Rae Sisk
Across the country, collision repair industry training programs face jeopardy due to a lack of funding, and although it seems like summer just began, classes will be back in session in a blink of an eye. While students enjoy the beach and make memories in the sun, their instructors are already busy plotting how to provide the best possible technical education with limited budgets and resources. The Collision Repair Education Foundation (CREF) invites the industry to partner with their organization to ensure that the next generation of collision repair professionals graduate with the skills necessary to be useful to their future employers. Brandon Eckenrode, Director of Development for CREF, believes, “Together, we can make an impact on the fall semester and beyond!” Since 2009, CREF has collected over $35 million in donations from the
collision repair industry for use in local high school and college collision repair training programs. Eckenrode explained, “The vast majority of this sup-
Tech Uniforms Before and After
port has come in the form of in-kind product donations which have greatly assisted collision school instructors
32 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
across the country with needed help to supplement their limited budgets.” One of the largest challenges instructors face is training tomorrow’s professionals with yesterday’s tools. In this ever-evolving industry, outdated tools and equipment pose a problem for many collision repair programs that just cannot keep pace with the changes in technology. Shops can provide relief for these programs by donating used tools and equipment to local programs. Eckenrode points out, “If you have used tools and equipment that you plan to replace in the near future, these items might be greatly valued by a local school instructor who doesn’t have the budget
to afford them. Whether it’s equipment, supplies or the most basic items, you would be surprised what might be appreciated by a school if they knew it was available.” Because safety is always a concern, the CREF also invites the collision repair industry to sponsor safety kits for local students. The organization turns a $50 donation into a pair of work pants, a shirt, safety glasses, a disposable dust mask and ear plugs to help students learn the importance of professionalism. Companies that sponsor at least 100 safety kits will have their logo printed on the back of the students’ work shirts. Eckenrode urges, “Let us know how you’d like to get involved with your local high school or college collision training program by contacting the CREF at info@ed-foundation.org. We can even provide information on your local programs if you’d like to know which schools are located near you.”
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 33
Lean Operations
Make Your Month, Every Day! with David Luehr
Do you run your shop or does it run you? I spend many hours in collision repair businesses and unfortunately what I see is usually the latter. The collision repair businesses that are really getting it done these days take a systematic approach to success. Today’s article focuses on how successful shops own their days, their months, and financial future through the use of a simple daily system. Why is it that so many collision repairers wait until the last few days of the month to take notice of whether or not they are on track to reach their monthly sales goal? Usually they are way behind where they want to be, and out comes the bull whip! Guess who suffers now? That’s right, everybody! The employees have to work extra hours under pressure, and the customers often have to deal with the quality issues that ensue. Much of this nonsense can be alleviated by adopting a different mindset that focuses on what I like to call “WIN.” What’s Important Now? WIN gets the team to focus on making the right plays every day whether it’s July 1st or July 25th. The overarching idea is to design your future and purposefully go out and get it! A simple method I like to use involves 1. Knowing what you want 2. Making a game plan 3. Measuring the progress and making adjustments every day. When you follow these three steps you WIN!
Step One - Knowing what you want Set up an achievable budget or sales forecast for your company that will positively push your people but is still realistic. This step is crucial and sets the stage for you retaining control of your company. The way I like to do this is based on taking the daily sales capacity average and multiplying it by the number of working days in the month. I then do this for all the remaining months of the year. Monthly goal = Daily Sales Capacity (What my shop is capable of producing each day) X number of working days in the month. Ex. $5,000 X 21 days = $105,000 Monthly Sales
Step Two - Making a game plan
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
So based on our sample month, you are projecting $105,000 as your goal which means that EVERY DAY your crew needs to produce $5,000. I repeat, EVERY DAY, including the first day of the month, and the second day of the month and so on. Far too many shops close ROs and book sales for cars that are not delivered or in some cases aren’t even completed in order to “make the month.” This is a mistake and contributes to the problem of starting out the next month in the hole. Prior to the beginning of each month, you must think about how your month will play out just like you are making a game plan for a football game. You should ask yourself questions such as, “is anyone going to be on vacation this month?” When things like employee vacations are a factor, make plans in advance on how you will stay on track. You can’t possibly know how everything will play out in the future, but you can at least make a plan and do your best to stick to it.
Step Three - Measure the progress and make adjustments Each day it is very important to know your numbers and share them with your team. You must know every day what your sales are compared to where they should be in order to hit the monthly goal. With our sample month, if it is the third day of the month and the actual sales are $10,000 and the goal for day three is $15,000 (3 days X $5,000) you now know you are tracking $5,000 below target. If the reason you are below your target is production related, you now will need to make adjustments to get caught up. The way I would approach this situation is by addressing the staff during the morning production meeting and asking the guys to put in a couple extra hours to get us back on track. If the problem is related to sales coming to the door, then you will obviously need to address the problem by figuring out how to get some more work coming in quickly. Either way, it is a lot easier to make small adjustments early in the month, than waiting until there are only a few days left to make your miraculous recovery!
34 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
Conclusion The important take-away here is that you have got to know your numbers every day in order to make the course corrections that will keep you on target towards success. If you are using a computer management system, keep-
ing track is very simple. You can run a vehicles delivered report every morning (be sure to not include sales tax.) If you would like free assistance creating a routine to keep you on track, please contact me. david.luehr@elite bodyshopsolution.com
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Behind-The-Scenes Look at MI Factory Where Ford F-150 Is Manufactured
by Stacey Phillips, Assistant Editor
Every 42 seconds a new 2015 Ford F150 truck is being ordered somewhere across the country. The Ford Rouge Factory, where the all-aluminum vehicle is built, is trying to keep up with this demand by producing 1,200 trucks a day.
The Ford Rouge Factory near Dearborn, MI
Autobody News toured the factory near Dearborn, Michigan while attending the NACE show in July. During the tour, participants learned the history of Ford Motor Company, got a close-up look at vintage Ford vehicles made there over the years and viewed the assembly line where the Ford F150 is constructed. A rooftop observa-
tion deck offers a panoramic view of the entire mile and a half site, which also includes a paint house and living laboratory. Inside the half-a-million square foot assembly plant, 2,000 workers build the Ford F-150 during two 10hour shifts. The factory was originally constructed in 1917 for $12 million and has been modernized over the years. Referred to by Ford as “the best selling vehicle in America,” the Ford F-150 is the only vehicle built at the Rouge plant. An elevated walkway above the assembly line allows viewers to watch the steps involved in constructing the trucks. It takes six hours to build an F150 and employees on the assembly line are allotted about 54 seconds to put on the new parts. Each truck is special ordered and pre-paid before even being built. There are over 500,000 different possibilities that can be ordered, including 14 colors, different engines, tires, suspensions and consoles. “There is a backlog because so many orders are coming in,” said one of the tour guides. “While they can build 600 of these in a 10-hour shift, there are 700 being ordered at the time they are
building the 600. It’s a good problem to have. There’s a lot of job security here.” Every single one is inspected and goes for a test run on the test track. After being been cleared, 60 percent are shipped by road and 40 percent by rail.
Ford participates in several environmental initiatives including using solar panels at the factory
It all started when Henry Ford began tinkering in a small shed behind number 58 Bagley Avenue in Michigan. Ford was the chief engineer at the local power plant and was determined to make a reliable car that everybody could afford. In 1903, he founded Ford Motor Company in a small factory. Five years later he introduced the Model T. Known as the “Tin Lizzy,” the au-
tomobile could handle the rough roads of the day and didn’t break down unlike other companies back then. It took a crew around 12 hours to assemble each one. Ford realized that he needed to find a way to manufacture more while maintaining quality. In Cincinnati, meat packers worked standing in line, each of them in charge of a specific job. Other factories, like textile plants, used simple conveyor systems. Studying these businesses, Ford experimented with the idea of using an assembly line at his own factory. “Instead of moving the man to the work, he brought the work to the man,” according to a video shown at the plant. “With his moving assembly line, Henry revolutionized the manufacturing process.” By 1915, the model T could be assembled in 93 minutes at Ford’s Highland Park plant. His workforce grew from 450 to 14,000. Today, Ford Motor Company manufacturers or distributes automobiles across six continents with about 187,000 employees and 62 plants worldwide. The company’s automotive brands include Ford and Lincoln. More information about the Ford tour is available online: http://www .thehenryford.org/rouge/index.aspx
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Day Job/Night Job Estimator During the Day, Rock Drummer at Night with Ed Attanasio
One of the great things about the collision industry is that so many people working at body shops have other talents and passions that they pursue when they’re not working as body techs, painters, estimators or front office personnel. I met a paint tech who is also a well-known tattoo artist and a parts guy who is also a professional ballroom dancer. A woman who runs the front office for a shop in northern California sings opera and the owner of a shop in the Southwest is a renowned muralist.
(l to r) Consisting of drummer/estimator Billy “The Kid’ Brady, vocalist/guitarist Gabriel Maciel, lead guitarist Bryan Aguirre and bassist David Ovlite, The Trims are a hot band on the verge of stardom
After meeting so many amazing people with great stories about what they do when they’re not working in the collision industry, I decided to write about them. This is the first in a series and it’s about an estimator who is also a drummer for a band that is on the rise. His name is Billy Brady and
he is an estimator at Anderson Behel in Santa Clara, CA. During the day he works with customers to return their cars back into pre-accident condition, but at night he hits the skins for The Trims, a hot band that is waiting for a record label deal that is looking more and more likely every day. The Trims from San Jose, CA already have a storied history in the whirlwind five years since their inception in 2010. They’ve been featured on MTV’s “The Real World,” played at the Converse flagship store in downtown San Francisco, recently played at Red Gorilla Fest in Austin, TX and also at Bottle Rock Napa in May. The band has recorded five CDs and won several band contests and also was selected to play at a concert during the America’s Cup held in San Francisco in 2013. Consisting of vocalist/guitarist Gabriel Maciel, lead guitarist Bryan Aguirre, bassist David Ovlite and of course Billy “The Kid’ Brady on the drums, the buzz is deafening for this post-punk, disco-laden act. The Trims are getting rave reviews from music critics throughout the Bay Area, including this one written by Steve Palpoli from Metro Magazine. “The first thing that jumps out with the Trims’ highly unique sound is the guitars. Their music embraces the spooky swirl of Siouxsie and the Banshees, the assault of Echo and the Bunnymen, the minor-chord crawling of the Cure and the propulsive progressions of New Order. Not to mention layers of effects
that would impress even the Edge himself. The Trims’ sound is backed up by a stark and solid post-punk rhythm section that grounds the often space-bound atmospherics, and topped by vocals that soar one minute and slow down to an intimate, direct tone the next.” Brady is a second-generation musician from a family that also rocked it at night while fixing cars during the day. “My dad had a body shop and I worked there during my vacations from school, so I grew up in the industry,” he said. “My father was a drummer and my mom was also in his band, so music has been in my veins from the David Mello is start.” Billy’s employer at Anderson Behl in Brady grew up Santa Clara, CA. in San Jose, atHe knows that tended San Jose when The Trims High School and make it big, he’ll is proud of it. He have to get a new estimator for knows the way to his crew San Jose and isn’t afraid to tell the world. “We’re one of the only bands out there who say— hey we’re from San Jose and proud of it. A lot of other bands claim that they’re from San Francisco, because they want to be cool. But, we love living here and being part of this music scene, so we tell critics and club owners that we’re from San Jose.” What are some skills that Billy uses as an estimator at a body shop that also
I-CAR Launches “Production Management” Role to Increase Shop Efficiencies I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced at the NACE | CARS Expo and Conference the launch of its new Production Management curriculum that provides end-to-end instruction designed to drive bottom-line improvements in productivity and profitability throughout the collision-repair process. Available beginning in August, Production Management will be part of I-CAR’s Professional Development Program™ (PDP), filling a curriculum placeholder that was planned when the PDP was launched in 2010. The new role and curriculum,
which goes beyond technical training, was developed using direct industry input, collaborating with production managers, shop owners and experts from the collision repair industry. It provides insight into critical issues and multiple areas of the shop floor, while enhancing critical-thinking and problem-solving skills, enabling participants to quickly address complex problems shop personnel face in collision-repair production. “The broad-based process focus designed into this new Production Management Role allows shops to empower all of their resources, finetune their KPI’s and realize maximum
36 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
ROI on shop-wide training investment,” said John Van Alstyne, CEO and President of I-CAR. “Effectively managing production is one of the key success factors seen in collision shops that are thriving in the midst of the ‘Technical Tsunami™’, rather than just surviving it. And ‘Learning Culture’ insights, a focus within the new role, will help shops further multiply the benefits of production best practices. In short, organizations with true Learning Cultures can achieve better and continuously improving levels of performance that can become a real competitive advantage.” Courses include:
help him in the tough world of rock ‘n roll? “I think we’ve gotten some good gigs by just being nice. Nice goes a long way—in any environment and we’ve always taken a friendly approach and I think it has paid off for us in many ways. I know for a fact that in my day job at Anderson Behel being nice is important. Our customers are not usually happy because their cars are damaged, so leading with kindness and compassion is the best way to go. I think that’s pretty much a good way to live in general, don’t you think?” Having a budding rock star as an integral part of his crew isn’t always convenient, but David Mello, Billy’s employer has made concessions— until now. “Yes, when he has a gig, we have to cover Billy and do his work,” Mello said. “But, he’s an excellent employee and a real team player, so we don’t want to lose him. We have some amazing people here and many of them have their own interests, so we let them do their thing and it makes for a better place to work. If they can do their jobs here and still pursue their passions, I will support them in any way I can.” What will Mello do when The Trims sign a major record deal and Brady’s musical career goes full-time? “When he hits big, we’ll probably lose him, but that comes with the territory when you hire musicians,” Mello said with a wry smile. “He does a great job here and we love him and hopefully he’ll let us back stage when he hits the big-time!” ● Learning Culture Overview ● Before the Repair Starts ● Matching the Repair to the Team ● Workflow Essentials ● Synchronizing Workflow through Team Communication ● Problem Solving for Workflow Changes ● Quality Is Your Business ● Optimizing Processes, Equipment and Compliance ● Developing the Team and the Business ● Refining the Team and the Businesses More information is available on www.icar.com.
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 37
Social Media for Shops Collision Repair Technicians United Goes Viral on Facebook with Ed Attanasio
It all started as a forum where painters, techs, estimators and anyone else working in the collision industry could vent, get advice, network and share ideas with each other on a national stage. Roughly six months ago, Marc Gabbard, owner of GSR Custom Collision Repair in Yakima, WA, was looking for a way to communicate with other technicians out there in the World Wide Web, so he decided to set up a Facebook page and named it Collision Repair Technicians United. He never imagined that it would go viral and become one of the mostused forms of social media in the collision industry, attracting big names and shop personnel from Hawaii to Alaska and everywhere in between. Gabbard’s shop fixes 4-5 cars weekly with a three-man crew. He started the business in 1998, doing a lot of street rods and custom restoration, but now he’s 100 percent collision repair all the time. “When I first began we were doing strictly hot rods and I pretty much had to do all of the work myself,” Gabbard said. “By 2008, we were officially in our current facility and that’s when things began to roll. At the beginning, I would jump in there and do most of the body work and painting. But now I’m becoming more of a full-time owner and getting away from the day-to-day production. I’m focusing on things like marketing and community outreach, so that we can grow and stay healthy.” To retain control on all of his repairs, Gabbard doesn’t have any DRPs and isn’t pursuing any in the near future either. He explained, “I don’t need them, because we’ve established a strong reputation for being fair and honest with every customer through the door. We earn all of our business by continually stressing customer service and quality.” Gabbard, 37, was already comfortable using social media to sell his business, network and communicate with friends and colleagues, so creating a page where technicians and other people in the collision industry can convene was a logical evolution, he said. “Facebook is a very fast way for us to connect to so many people eas-
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Many techs proudly show their By browsing through Gabbard’s Collision Repair Technicians United before and after pictures and in some Facebook page, you can see how collicases, other members will scold some sion professionals from different worlds technicians for cutting corners or percan use the site. I found topics such as: forming unsafe repairs. Other memWhat is the secret of fixing a door hanbers of the page ask about equipment dle on a 2013 Fusion? How does your and products and do comparisons onshop deal with warranty isline, such as: What’s better—SATA sues? Does anyone know anyguns or Iwata guns? Is waterborne one who has failed an I-CAR paint really better for the environment? test? How can I get paid by the Does PPG or Pro-Spray provide better insurance company on this recolor matches? Where can I get a good pair? Does anyone fix Entercar dolly? prise rental cars, because they “We’re educating ourselves with came by the shop just now? Is valuable information from the people it better to get all of the DRPs who are actually doing the repairs,” you can? Aftermarket parts vs. Gabbard said. “By breaking down the Marc Gabbard owns GSR Custom Collision Repair in Yakima, OE parts? Is aluminum really geographic limitations and sharing with WA and is the creator of Collision Repair Technicians United, the next hot thing? Other repeople all over the country, we can bea Facebook page that is quickly going popularity among pair chat threads dealing with come effective at things like getting the professionals from every aspect of the collision industry issues about things such as right parts, finding OE repair procelier this year. headliners, bumpers, headlights, blenddures and just doing a better job overall. “We got a few inquires here and ing panels, grit in the paint, sanding vs. We’re helping each other, but really the there and then the word got out and it over-sanding and other related themes consumers are getting the benefits of a started exploding. As of today, we appear every day on the forum. page like this.” have roughly 3,300 members and it hasn’t slowed down at all. With 150200 new members asking to be a part of this online forum every week, we should be near 4,000 soon.” Gabbard is the gatekeeper and moderator for this invitation-only page and in most cases people act appropriately while on the site. But when they www.mikecalverttoyota.com don’t, he’s not afraid to boot them without hesitation. • Overnight Delivery in Most Areas “We’ve had a few people who tried to push their political agendas on of TX & LA the page, so they had to go. Some came unts • Volume Discounts on here and tried to antagonize other members for whatever reason and so pping • One-Stop Shopping they had to go as well. In most cases, people are fine and I’ve only had a few Local issues, so the track record is pretty darn good.” (713) 558-8272 Gabbard is always happily surFax prised when he sees names he recognizes applying for membership on his (713) 558-8131 page. “We’ve got some major names from collision on this page and we’re Toll Free happy to have them here. Presidents of collision organizations chatting with rookie techs is a cool thing to see. If you work in the collision industry, you’re Download at www.CollisionLink.com welcome to join. We have a good mixture of people here and we screen folks, 2333 S. Loop West • Houston, TX 77054 but we do not discriminate.” ily. I can talk to a painter in Missouri one minute and a body tech in upstate New York the next. By sharing ideas, repair techniques and useful information, we can all be better at our jobs.” Gabbard said he was surprised when the page caught momentum ear-
38 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
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Chip Foose Demonstrates 3M’s New Accuspray Gun at NACE During the NACE show, Chip Foose demonstrated the spraying capabilities of 3M’s Accuspray gun, model HG14. Foose is the star of the reality TV series Overhaulin’ and owner of Foose Designs in Hungtington Beach, CA.
tips, which allows a painter to quickly change colors without replacing the gun. “One of the big reasons that the Accuspray gun exists is obviously cleaning and maintenance,” said Andy Boyd of 3M. ”One of the things we try to look at is helping the painter become more efficient.” The system was designed to im-
Reality star and hot rod shop owner Chip Foose sprayed base and clear with the 3M Accuspray gun
Foose’s demonstration showed how the Accuspray gun has the ability to change colors
by Stacey Phillips, Assistant Editor
He showed how the gun speeds up the painting process while reducing clean up and down time as well as the precision that can be achieved. The Accuspray gun can be used with any application that is designed for coatings requiring the use of a 1.4 mm atomizing head. Foose said one of his favorite things about the gun is the ability to change the
prove productivity and minimize clean up time, which can ultimately help shops improve their bottom line. The Accuspray system was introduced a couple of years ago and was used with primer applications with 1.8 mm. Since then, 3M has added the 1.4 option. Boyd said this system is even faster and easier to use, requiring no maintenance.
Boyd showed attendees some of the company’s other products such as the PPS Paint Preparation System and the Sun Gun II. Designed to be used with almost any spray gun at any angle, the PPS Paint Preparation System enables painters to mix less paint, reduce the amount of solvent used and speed up cleanup. The company said it can also improve operator efficiency by as much as 15 percent. PPS is available in five sizes: Large (28 fluid ounces), Standard (22 fluid ounces), Midi (13.5 fluid ounces), Mini (6 fluid ounces) and the 3 Ounce. Foose demonstrated the PPS Sun Gun II, which matches the color of natural daylight. The most important thing when it comes to matching color is daylight, said Boyd. “Ultimately if you want to get the right perception of how the color is going to adhere, natural daylight is going to give us the best indicator.” The Sun Gun II was designed to verify coverage, highlight damaged areas of the vehicle and identify preand post-paint defects. More information about the Accuspray Gun and 3M’s other products is available on online: http://3mcollision .com/accuspray-hg14-spray-gun16577.html
New Nitrocell Nitrogen Plastic Welder by Urethane Supply
Urethane Supply Company revealed its new 6066-CG Nitrocell Nitrogen Plastic Welder at the NACE/CARS Show. Urethane Supply introduced the first commercialized nitrogen plastic welder to the collision repair industry in 2006, and the new 6066CG Nitrocell is the most advanced generation of nitrogen welder yet. It’s designed to generate its own nitrogen gas from shop air and requires no onboard air compressor. “Repair shops want to minimize repair times and maximize profits, and we’ve designed the new 6066-CG Nitrocell Nitrogen Welder to help them do just that,” Kurt Lammon, president of Urethane Supply Company, said. “The new unit will help collision specialists reduce cycle times and increase their opportunities to do more profitable labor-based repair of plastic components.” The 6066-CG’s intuitive yet precise analog instrumentation features a control regulator combined with an output pressure gauge and a flow gauge to give the operator total control over the amount of gas used in the welding process. A low-pressure safety switch automatically cuts power to the heating element, protecting it from overheating if the flow drops too low. Original BMW Parts
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Jon Kosmoski from Valspar’s House of Kolor & TV Reality Star KC Mathieu Demonstrate Kandy Painting during NACE duced in the fall of 1982 and in 1997, House of Kolor became part of the Valspar Automotive Coatings DiviAt the Valspar booth during NACE, world-renowned painter, Jon Kossion. In addition to House of Kolor, moski of House of Kolor (HOK), and reality show Fast N’ Loud star KC Valspar’s brands include DeBeer ReMathieu, demonstrated the advanced finish, Valspar Refinish and newly actechnique of Urethane Kandy applicaquired brands, Prospray Automotive tion. Finishes, Matrix Automotive Finishes Kosmoski sprayed a black basecoat and U.S. Chemical & Plastics (USC). with Kandy Brandywine and Oriental In May of this year, Valspar anBlue topcoats, utilizing the House of nounced it had acquired the performKolor Shimrin2 system. Afterwards, KC ance coatings businesses from Quest Mathieu, owner of KC’s Paint Shop in Specialty Chemicals. These include Texas, added the House of Kolor USC01 automotive refinish brands Matrix, clear coat. Prospray and USC, and industrial “It takes some training,” said Koscoatings brands Patriot Paint, Raabe moski. “An average painter can’t pick and Precision Color brands. up a gun and be a kandy painter.” During NACE, Autobody News spoke with Laura Yerkey, Director of Marketing – Americas, for Valspar Automotive, about the company’s recent announcements. “The thing that really differentiates whether or not a refinish coatings company is going to be successful is the technology behind it—the color, the products and the tools, and the ability to deWorld renown painter Jon Kosmoski and KC Mathieu, velop the technologies that reality show star on Fast N’ Loud shops are going to need movHe said House of Kolors’ Kandies ing forward,” she explained. and clears are developed with a more DeBeer is Valspar Automotive’s advanced formulation. Whereas an avpremiere brand. “The color technolerage company uses 1 ½ percent UV ogy driving the DeBeer basecoat sysabsorbers, HOK’s products far exceed tem is world class,” said Yerkey. that amount, providing a longer-last“Already, OEM manufacturer’s Ford, ing, more beautiful finish for custom GM and Chrysler have approved the creations. Also, the newly revamped DeBeer 900+ Series. This line delivKandies and basecoats, with advanced ers optimal solutions to any large shop technology, are compliant in all areas or MSO with proven success.” and meet the most stringent VOC reProspray is the company’s other quirements. European refinish brand, made in the Kosmoski said kandy painting beUnited Kingdom. Basecoat technolocame popular in the early 1950s when gies are made in both solvent and wacustom car builder and painter Joe terborne. “The Prospray line is a Bailon debuted a candy-apple-red- beautifully simple and task-driven syspainted car. The name was coined after tem,” said Yerkey. “The all-liquid inthe transparent color of a candy apple. termix system can be mixed in various Bailon, who is now 92 years old, is solids levels, depending on need, and often referred to as “Candy Apple Joe” provides excellent match and coverand Kosmoski said he can still be seen age, especially with import vehicles. working in his shop. The clears and primers are streamlined Kosmoski founded House of and backed by universal activators and Kolor in 1956 and used to paint a car thinners.” The color system uses a a day while he owned his own shop. chromatic tool for color matching. He closed it in 1981 when his custom Matrix is the company’s Ameripaint took off and went into manufac- can paint brand, delivering productivturing. His Kosmic system was intro- ity, color and value. Matrix is more by Stacey Phillips, Assistant Editor
40 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
recently best-known for developing a true low VOC basecoat system, MPBLV. Every component on the Matrix MPB-LV system, from toner to binder, is low VOC compliant.
side best-selling competitive products, to test adhesion and overall strength,” said Yerkey. “We ran blind lap sheer tests to gauge ultimate stress (PSI) adhesion results and found performance was up to 48 percent better than the competition.” Growing up in the automotive refinish industry, Yerkey said her grandfather, Pete Peterson, founded Ohio- based Montana Products in 1976. Peterson taught his granddaughter about the various disciplines of the business and the importance of the ”voice of the cusJon Kosmoski said, “You learn by your mistakes. Don’t tomer.” Montana Products blame yourself. That’s the number one thing I tell painters. was later sold to ChemSpec. If something goes wrong, call your jobber store, call a Yerkey was hired at U.S. tech rep for the company and find out what went wrong.” Chemical & Plastics and “With Matrix low VOC basecoat, Prospray in 2003. In 2013, the brands compliance is a really seamless and an were acquired by Quest Specialty easy transition for the body shops,” Chemicals, consisting of three divisaid Yerkey. “You’re going to get the sions: automotive, industrial and consame amount of coverage and color struction. Yerkey became Quest match is going to be the same as with Automotive’s marketing director and a national rule product. There is no then was promoted to corporate, learning curve.” She said body shops Quest Specialty Chemicals, to head up aren’t sacrificing quality or ease when the marketing strategy and communithey use Matrix’s low VOC system. cations for the three divisions, as well “It’s going to perform for them.” as assist with mergers and acquisiAll Valspar paint brands are tions. Now as marketing director backed by warranties and deliver in- in the Americas for Valspar, she said field technical service and support. she plans to build out the optimal marU.S. Chemical & Plastics, estabketing organization that will focus on lished in 1950, was the original body needs-driven solutions for every segfiller manufacturer in the United States. ment in the collision repair industry as With the introduction of the aluwell as specialty industries where the minum Ford F-150, Yerkey said the products are a good fit. company has recently conducted extenYerkey said, “As a company with sive testing on the new product lineup all of our brands now, and the techin regards to the specific aluminum nology and talent we have from both alloy that Ford is using. “We ran extenteams, we [Valspar Automotive] are sive testing at the technical and research really poised to become that preferred facility on AG47 and Icing Lite, alongprovider in the industry.”
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www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 41
Quality Collision in PA Credits Success to Employees & Focus on Good Customer Service by Stacey Phillips, Assistant Editor
Steve Kaminstein, owner of Quality Collision Inc. in Pennsylvania, started his business out of a small garage in Noxen Township, PA in 1989. The business owner said he never could
He said one strategy he has found to be successful is to put the trust into his 50 employees to get the job done. “My philosophy has been hiring people smarter than me, when it comes to the day–to-day operations; credit goes to our managers, technicians, painters,
cars and ran with only one employee. While managing the shop he began painting scooters and jazzies for Pride Mobility, a manufacturer of Jazzy Powers Chairs, Pride Mobility Scooters, Go-Go Travel Mobility, Pride Life Chairs and Pride Lift & Ramps.
efforts to establish relationships with the insurance agents and DRPs, while ensuring he maintained good customer service. “I believe this contributed to our growth,” he said. Although he said it can be challenging to work with several different DRPs, overall it has been
Steve Kaminstein, Owner of Quality Collision, openend an industrial coatings division and a commercial truck and RV repair center in 2007
After starting construction in September 2014, Kaminstein recently finishing construction of a new facility for the company’s Muncy location
The company’s Dallas Township facility in PA
Quality Collision’s Kingston location opened in 2001
have imagined that since then, he has established three successful auto body repair centers, an industrial coatings division and a commercial truck and RV repair center. “I never dreamed I would have this growth” said Kaminstein. “I contribute my success to the men, women and co-op students who work with the company. I believe you need to treat people the way you want to be treated.”
administration, and maintenance personnel to get the job done.” Looking back, Kaminstein said he recalls always being interested in the auto repair industry. His first job was at a Chrysler Dealership starting in the wash bay department when he was 15 years old. At 25 years of age, Kaminstein started that small town garage and within two years opened a garage in Dallas, PA that could house up to eight
AudaExplore VP Balances Work and Family Life by Jessica Rob, Business Services Development Specialist, AkzoNobel Coatings
With 21 years of experience in the collision repair industry, Tanya Elkins has developed a wealth of knowledge she is eager to share with individuals in the industry. As VP, Valuation & Identification Solutions for AudaExplore, a Solera company, Elkins considers her greatest professional accomplishment the times she has been able to contribute to the growth and development of her colleagues. “By removing obstacles and providing opportunities that would challenge them, I’ve seen exceptional growth not only in the management team that I work with every day, but with the next generation of leadership who will one day be leading the organization,” Elkins explained. “Sustainability of this business as a trusted valuation provider is paramount to what we do here and I’m very pleased to see where it is today.” Based in Portland, Oregon, Elkins has seen many changes since she started in this industry, but she said none have impacted her as much as data and workflow automation. “When I started working for ADP in the early ‘90s, I didn’t even have a computer!” Elkins recounted. Now, she and her colleagues work to automate manual processes to create greater efficiencies and help carriers deliver a better claims ex-
perience to customers. Evidence of this is seen in her company’s valuation system, Autosource, which delivers more than 80% of valuations instantly and 95% in the same day. Elkins began her path in the industry at National Auto Data Service. When the company was acquired by ADP’s Claims Solutions Group, managers provided her with a flexible schedule. This allowed her to finish college while working and start a family with her husband Derrick. Elkins said “men and women both need flexibility at work if they value spending time with family, friends and participating in civic life” and credits her family and manager for helping her balance work and life successfully. She has been a member of WIN since 2014, which was also the year she attended her first WIN Educational Conference with several colleagues. For Elkins, being a member of WIN has provided her with a venue to not only support other successful women in the collision repair industry, but to learn from them as well. She volunteers for multiple committees within WIN, which has given her exposure to the knowledge and experience that exists within the WIN network. Elkins said, “What I most appreciate about WIN is the sincere commitment of women to promote excellence in our industry, not just for and by women, but really across the board.”
42 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
After finding that to be successful, in 1996 he built a 10,000 square foot facility in Dallas Township. Half of the building housed the industrial division for the scooters and jazzies and he ran his body shop from the other half. The facility experienced substantial growth and in 1999 Kaminstein moved the industrial division to a separate location and converted the Dallas Township facility to a larger body shop. In the meantime, he focused his
a very positive experience. In 2001, he was presented with a business opportunity in Kingston, about 10 miles away from his Dallas facility. The opportunity from a local Chevrolet Dealership came about to lease a building accommodating an auto body repair facility. His second collision shop opened in June 2001. He said it was a learning experience opening and operating multiple shops. With referrals from the dealer-
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ships and the DRPs he had already established in Dallas, he found that business was good. Two years later in 2003, Kaminstein opened another shop in Muncy, Lycoming County, Pennsylvania. After negotiating a similar agreement to the Chevrolet Dealership, Kaminstein leased the Twin Hills Dealership owned by Steve Kaiser. “The obstacles of running a business approximately 50 miles away from our home office in Dallas Township was challenging at times,” said Kaminstein. A significant change occurred in 2007. A major hail storm struck in Lycoming County, which brought a multitude of customers coming through the door. “Our reputation was increasing,” said Kamintein. “Since 2007, we’ve been experience at least 12 percent growth. Sometimes it takes a mixture of ingredients to get a great match!” Within this time period—early 2006—Kaminstein moved his industrial coatings to a larger facility in Courtdale, Pennsylvania approximately 15 miles from home office. Encouraged by fellow workers, Kaminstein was inspired to venture again into a new area. By end of 2007, Kaminstein opened a commercial truck and RV repair center
within this 20,000 square foot facility. The facility now houses the industrial coatings division and commercial truck RV repair Division. Kaminstein had also purchased a small shop in Weissport, Carbon County, Pennsylvania in 2005. He said the shop started off doing well in the beginning but unfortunately 80 percent of the work came from one insurance company and they discontinued their DRP program in 2010. His advice to other shops is to make sure to do the thorough research. “If they are purchasing a second I would suggest that they do their research as far as where the business is coming from and how they ran their business,” said Kaminstein. Their main competitor in that area has been there for years and Kaminstein said he found it was challenging to stay profitable. “It just got to the point where it was a better business decision to just close the shop than to try and keep putting our time and energy into it.” He said it was a hard business decision to close the shop in 2013 but they realized they could allocate their time and energy into running their other shops. “It ended up being the right decision, ab-
solutely” said Kaminstein. It was during this time he decided to build a new facility for his Muncy location. Kaminstein invested in land nearby and started construction in September 2014. The project took approximately 10 months to complete. The new facility, which is approximately 15,000 square feet, houses offices for insurance adjusters to write their drive-in estimates and also includes designated estimating bays for their staff. Over the years, Kaminstein said he has tried to incorporate new ideas to continually make his business more successful. Once a month there is a managers meeting held. By incorporating standard operating procedures across the company, Kaminstein said they are able to load-level work from shop to shop as well as share employees. The company also focuses its effort on environmental initiatives such as energy efficient lighting, a recycling program, solar panels and using waterborne basecoat. He has found that PPG’s MVP program and the resources available from Colours Inc. has been very beneficial to his business. One of the pro-
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grams they have found to be helpful is the TEAM approach learned after attending a MVP class sponsored by PPG and the guidance from Colours’s business development staff. Jeff Magagna, General Manager for Quality Collision, a main influence on the TEAM concept, said, “We are trying to get our processes leaned out, get more production out the door and increase our cycle time.” As with any changes Magagna said it can become very difficult. However, the original system of writing estimates to parts procedures and disassembly has been improved since they implemented this concept. By employing this process, he found touch time increased from 2.6 to 3.3. “The shops that can increase their cycle time by implementing the TEAM concept have a smoother process, which creates a constant flow so that repairs can be completed quicker with the same quality. This results in more work from the public and the insurance companies,” said Kaminstein. “I credit my success to my faith and I am very thankful, again, to all the men, women and co-op students who continue to strive for Quality,” he added.
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Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations by Victoria Antonelli, Online Editor
The presentation, held at NACE, began with an industry flashback to 40 plus years ago. Pulling and heat, mild steel, paper estimates, and a non-existent internet were just a few of the hang ups older generations can remember dealing with on a daily basis. Now, more than ever, time drives efficiency on the shop floor. Every new collision repair system is designed with decreasing cycle time as the top priority.
Car-O-Liner/AudaExplore PowerPoint
To ensure that other tasks don’t slip to the wayside while technicians are rushing to clear and refill the bays, Dave Scribner, Car-O-Liner techni-
ified entry-level technicians, while also showing changes concerning business operations and the collision repair technician workforce.” Tools that can aid in accomplishing the above goals include: ● Increasing the profit margin ● Driving CSI improvement ● Driving industry leading KPI’s ● Creating uniform and positive customer experience ● Expanding related add-on services
According to the business statistics side of the previously mentioned
survey, in the last six years “the industry has experienced a market size reduction of 3,047 shops (7%) to a current count of 40,488 shops.”
● “Triage” estimates ● Upper and lower measurements ● “Before” and “after” validation
● Increased complexity ● Semi-autonomous safety
The reps from Car-O-Liner then discussed how math data provides for a more complete damage analysis, and how insurance “robotics” can lead to a faster repair decision. Henderson then covered latest industry trends: Luxury Specs on High-End Vehicles: ● Computer-driven efficiency ● Collision avoidance tech ● Focus on infotainment
Due to the high percentage of accidents caused by human error (90 percent), the driver assist technology trend is becoming the most prominent. According to Henderson, OEMs are planning on reducing accidents by 80 percent through the implementation of these programs. AudaExplore data shows that by 2020, 80 percent of vehicles will be cognitive automated, bringing manual assistance down to 20 percent.
Car-O-Liner/AudaExplore PowerPoint
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cal director, Dan Trahey, manager of technical training at Car-O-Liner, and Gordon Henderson, vice president of collision repair services at AudaExplore, have some suggestions for body show owners: ● Increase insurance count ● Invest in employees ● Invest in training ● Attract, grow & retain the best technicians
Surveys conducted by the Collision Repair Education Foundation and I-CAR every three years “confirmed the need for a continual supply of qual-
Other significant points of change according to the Car-O-Liner and AudaExplore presentation include: ● Digital measuring & validation ● Body tolerances decreasing ● Much less pulling, more replacement ● HSS, aluminum, carbon fiber evolution ● Bonding and riveting ● Measuring, universal anchoring and “fixturing” required on more vehicles ● Increasing OEM certification programs ● OEMs driving more repair procedures ● Stand alone 3D measurement
44 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
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As recently as 2014, these statistics were reversed. So, what can be done to stay ahead of the game, or even just keep up with it? According to the PowerPoint presentation, use predictive analytics to: ● Leverage thousands of data points ● Provide guidance and support ● Increase operational consistency ● Every dollar that flows to the bottom line starts with the estimate
Improve the customer’s experience by: ● Provide automated, electronic updates on the status of repairs on their terms ● Increase kept informed and net promoter scores ● Reduce waste in phone-tag
Lastly, Scribner, Trahey and Henderson encourage shop owners to: ● Embrace change in order to thrive ● Invest in people, training, equipment certifications ● Change how we engage with consumers ● Mindset of operating a growing business ● Leverage software and technology
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Chief Adds Free Repair Training Resources to Website
Chief Automotive Technologies has added best practices guides, how-to videos and other educational materials to its website, chiefautomotive.com, to help collision repair professionals keep up with the evolving industry. “In the rapidly changing collision repair field, you have to continually educate yourself to stay ahead of the curve,” said Bob Holland, director of collision sales in North and South America for Chief parent company Vehicle Service Group (VSG). “Discovering new techniques or learning how to get the most out of your equipment can help make your shop more efficient. The educational materials we’ve added to chiefautomotive.com are available at any time for free, making it easier than ever to stay on top of the latest industry advancements.” Much of the new content focuses on aluminum repair. Other educational material was created to provide customers with a broader understanding of current vehicle design and the tools and techniques needed. More information is available on the “Collisionology” blog at blog.chiefautomotive.com, and videos are available on vimeo.com/groups/ Chief.
Altercation Over Car Repair Leads to Fatal Shooting in SC
The Richland County Coroner’s Office has identified the man who was shot and killed on June 19 during an altercation over car repair work. Gary Watts said 64-year-old Willie Lee Geter, of Columbia, was pronounced dead at a local hospital from complications of a gunshot wound to the upper body. Sheriff Leon Lott said sheriff’s deputies are still investigating the shooting. Lott said Geter was repairing the suspect’s vehicle in the 900 block of Fiske Street near North Main Street. When the suspect came to pick up his vehicle, he was not satisfied with the work Geter had done. Lott said a verbal altercation between the two individuals became physical before the suspect pulled out a handgun and fired several shots at Geter, hitting him in the upper body before fleeing the area. Winesses told investigators that the suspect fled the area in a late model Cadillac sedan. Lott said Geter was well known in the North Main Street community and was always willing to help others in the community no matter the situation, especially with mechanical problems. Anyone having information is urged to call Crime Stoppers at 1 (888)-CRIME-SC FREE.
Mobile Technology Enhancements from CCC
CCC Information Services Inc. (“CCC”) announced enhancements to its suite of consumer solutions, helping repair facilities provide a more streamlined experience to customers throughout the repair process. CCC ONE® UpdatePlus will now offer proactive text messaging that includes pertinent shop and estimate information. CCC ONE® Repair Workflow will now include digital signature capabilities, allowing customers to authorize repair work right at the vehicle using the CCC ONE® Touch application on a mobile device. “Consumers expect hassle free interactions with the companies they do business with,” said Mark Fincher, VP, Market Solutions, CCC Information Services Inc. “We’ve looked at our solutions to see how we could change them in order to create high-impact, lowtouch interactions that don’t require a phone call or sitting in a lobby waiting for paperwork. More information is available online: www.cccis.com or by calling 877-208-6155.
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Assured Performance Network is made up of three organizations: A non-profit consumer advocacy organization, a legal Cooperative (Co-Op), and a management company. Combined, they operate as a third-party administrator for consumer awareness, body shop Certification for several of the largest automakers including Ford, Nissan, FCA, GM, Hyundai and others, and various vendor rebate programs. Assured Performance Collision Care, Inc., a 501c-6 non-profit consumer advocacy organization, has announced their 2015 - 2017 Board of Directors. The board is made up of organizations participating in the effort to identify and promote collision repair providers that are able to meet the manufacturer’s specifications for tools, equipment, training and facility modifications required to properly and safely repair vehicles. The board includes the following individuals: ● Dave Arne, Ford Motor Company ● Mark Zoba, Nissan North America ● Mark Engelsdorfer, Fiat Chrysler Automobiles (FCA) ● Mark Mandl, Ford Motor Company ● Erica Schaefer, Fiat Chrysler Automobiles (FCA) ● Tiffany Stroupe, Hyundai Motor
America ● Steve Rust, Nissan North America ● Lien Nguyen, Hyundai Motor America ● Scott Biggs, Assured Performance (Chairman) ● Ron Doerr, Assured Performance (Vice Chair) ● Michael Quinn, Assured Performance (Secretary) Directors will help guide Assured Performance to set objective Certification requirements, drive consumer awareness programs, and ensure consistent communications and coordination within the group to identify, Certify, and promote body shops across North America. “We are proud that our Board is made up of these outstanding professionals representing their global organizations,” stated Scott Biggs, Chairman and CEO. “These professionals will provide steady guidance and wise direction as we move forward. Their participation comes at a perfect time, as we are experiencing rapid growth and launching numerous initiatives including ongoing and expanded advanced repair capabilities and Certification, consumer awareness campaigns, body shop and wholesale business development, and new co-op incentives.”
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 45
Enterprise Recognizes Axalta Business Council Members With Best Length of Rental Awards
ABRA to Expand in Pacific Northwest
ABRA Auto Body & Glass announced in June an agreement to acquire 23 Kadel’s Auto Body locations in Idaho, Oregon and Washington. Details of the agreement were not disclosed. Kadel’s Auto Body, an investment managed by KCB Private Equity of Pasadena, CA, is a regional provider in the Pacific Northwest. ABRA’s President and CEO, Duane Rouse, said the company is thrilled to acquire such a well-respected multishop operator. “Kadel’s Auto Body has been servicing insurance partners and community members for over 60 years. Their commitment to superior customer service and a quality repair echoes ABRA’s way of doing business.” “We’re pleased to align ourselves with such an established, well-respected national collision repair company like ABRA that shares the same culture of ethics, integrity, and teamwork,” said Don Braden, President and CEO of Kadel’s Auto Body. For franchise opportunities in major markets, contact Scott Gerling, sgerling@abraauto.com or 763-585-6210. For small and midsize markets, contact Mark Wahlin, mwahlin@abraauto.com or 763585-6315.
Enterprise Rent-A-Car recognized two collision repair centers with its 2014 Best Length of Rental (LOR) Awards. Presented during a joint meeting at Enterprise’s global headquarters in St. Louis, MO, both recipients are members of Axalta Business Councils, which promote an environment where collision repair professionals can share best practices and further develop their business management skills.
The recipients were determined based on Enterprise’s Automated Rental Management System (ARMS®) data, which tracks how long a replacement vehicle is rented to collision (l to r) Mike Anderson, Kris and Becky Goodrich, Frank center customers and is con- LaViola, Cary Bikowski sidered a proxy for vehicle repair time. cantly helps collision repair centers Daren Pierse and John Bock from Ax- maintain growth for the long-term,” said alta Business Council member Arizona Frank LaViola, Assistant VP of colliCollision Specialists LLC re- sion industry relations at Enterprise ceived the first award, earn- Rent-A-Car and an advising member of ing the lowest LOR among Axalta Business Councils. “Arizona multi-shop operators. The Collision Specialists and Goodrich Auto second award went to Kris Works have demonstrated an outstandand Becky Goodrich of ing commitment to expediting the vehiGoodrich Auto Works for the cle repair process, which has helped lowest LOR among Axalta them build strong relationships with Business Council single- customers and insurance partners alike.” To learn more about Enterprise shop operators. “When you can get a Rent-A-Car, visit http://www.enterprise customer into their repaired .com. To learn more about the ARMS vehicle faster, this helps Automotive Suite, visit www.armsauto (l to r) Mike Anderson, Daren Pierse, John Bock, Frank gain their trust and signifi- suite.com LaViola, Cary Bikowsky
Mitchell Releases Toyota Recommended Repair Procedures within Mitchell Estimating
Mitchell International released on June 18 Toyota’s Recommended Repair Procedures within their desktop solution, Mitchell Estimating, also known as UltraMate. The Toyota Recommended Repair Procedures offer two key benefits. First, estimators can reduce the time required to write a collision estimate by offering the ability to access a preconfigured list of all the parts and labor associated with a repair, allowing them to keep the information that applies and omit what does not. Second, users can access all Service and Collision Repair Information Bulletins associated with the repair directly from Toyota’s Technical Information System (TIS) during the estimating process, eliminating the need to reference multiple sources thereby speeding the process of restoring a Toyota vehicle to pre-accident condition. “We are committed to bringing innovations to the market that create efficiency in the overall repair process for both repairers and insurers,” said Sunil Nayak, Senior Director of Product Management. “With Toyota Recommended Repair Procedures, users of Mitchell Esti-
mating can instantly access all the Toyota repair procedures, parts and labor, and technical information, enabling them to quickly write an estimate and repair the vehicle using up-to-date information directly from the manufacturer. This eliminates the need to search out information and helps ensure that the shop has everything they need to repair a Toyota vehicle.” “The partnership with Mitchell reinforces our goal to ensure consumer confidence,” said Rick Leos, Collision Program Developer, Toyota Motor Sales, U.S.A., Inc. “Mitchell’s expertise in estimating, coupled with Toyota’s quality repair procedures, makes data easily accessible, which benefits customers, repair experts and insurance companies alike.” Mitchell Estimating combines industry-leading databases with software technology for appraisers writing estimates on passenger vehicles, as well as light, medium and heavy trucks, motorcycles, recreational vehicles and boats. To learn more about Toyota Recommended Repair Procedures, visit www.mitchell.com/toyota
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CIF Announces Greg Horn as New Trustee
The Collision Industry Foundation (CIF) recently elected Greg Horn with Mitchell International to the Board of Trustees to carry on the Foundation’s initiatives. Horn has regularly presented at major insurer, vehicle manufacturer and collision Greg Horn, repair conferences. recently named a At Mitchell, Horn CIF Trustee, has provides guidance more than 20 years to Mitchell’s Prodof automobile uct Management and insurance and Business Anaexperience lytics teams, playing a role in shaping Mitchell’s solution portfolio. Horn serves as primary author and editor in chief of Mitchell’s Industry Trends Report. “It’s a great honor to have Greg join the CIF as a Trustee,” said Chairman William Shaw. “With his experience and industry relationships, he will be a key contributor in advancing the mission of the CIF.” To donate or learn about CIF’s current projects, visit: www.collisionindustryfoundation .org
Caliber Collision donates $35,000 to CREF
Caliber Collision donated $35,000 to the Collision Repair Education Foundation (CREF). This donation will support several specific initiatives for collision school programs in the Atlanta, GA, and Houston and Dallas, Texas markets. Caliber is also donating $5,000 to the Education Foundation’s Collision Repair Education Campaign fund which allows the organization to offer grants and scholarships to career and technical schools and colleges. “Caliber’s support of the CREF is one of the many ways that we’re investing in our collision repair future today,” said Mark Sanders, Caliber Collision President and COO. CREF Executive Director Clark Plucinski noted, “I would like to thank Caliber Collision for their continued support of CREF. As we work towards providing support to local collision school programs and their graduating collision students having the proper, entry-level skill sets, Caliber’s donation allows us to help provide the needed tools and equipment for the programs to be successful.” For information, contact Director of Development Brandon Eckenrode at 847-463-5245 or Brandon.Eckenrode @ed-foundation.org.
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AMI Announces 2015-2016 Board of Trustees
The Automotive Management Institute (AMI) announced the members of its 2015-2016 Board of Trustees. Sheri Hamilton, AAM, ASA-Midwest, Kansas City, MO, was elected as chair; Darrell Amberson, AAM, LaMettry’s Collision Inc., Minneapolis, MN, elected as vice chair; Bob Keith, AAM, CARSTAR, Leawood, KS, re-elected as treasurer; and Gary Keyes, AAM, E&M Motors Inc., Stuart, FL, elected as secretary. Other board members include Tony Passwater, AAM, AEII, Indianapolis, IN; Terry Wynter, AAM, Terry Wynter Auto Service Center, Fort Myers, FL, and Dan Risley, president, Automotive Service Association, North Richland Hills, Texas. “I look forward to working with this group of trustees, who represent such a diverse range of industry experience and backgrounds. This will be important as we work to ensure Automotive Management Institute’s future success,” stated AMI President Jeff Peevy. For more information about the institute, its curriculum, or EXCEL, contact AMI at (817) 514-2900 ext. 129, or visit the AMI website at www .AMIonline.org
Black Diamond Refinishing Launches Wipe on Clear Coat
Black Diamond Refinishing, a company specializing in paint repair alternatives, announced a new product in its line, a Wipe on Clear Coat. It was created to produce a fast drying, easily applied clear coat to repair surface damage of a vehicle quickly and with durability. “Back Diamond Clear offers exceptional coverage to repair heavy surface damage,” said Michael Nelms, the company’s founder. “Its unique formula allows for a smooth, streak-free and glossy finish that produces excellent results.” Depending on the damage, he said results may vary. Developed in 2008, Nelms said he used the product as a service to automotive dealerships and received such positive feedback from his customers, he was compelled to market it. Wipe On Clear repairs scratches and bug damage, improves water spots and peeling and restores panels. It removes bumper scuffs and heavy scratches, and restores dull hoods, bumpers and spoilers. “Black Diamond Wipe on Clear is one of our most successful products and delivers an exceptional result,” said Nelms. For information, visit www.jandbsales.com, email burtonjandbsales@comcast.net or phone/fax (888) 270-1033.
CREF and AkzoNobel Announce Winners of Sustainability Challenge Grant
The Collision Repair Education Foundation (CREF) in collaboration with AkzoNobel Vehicle Refinishes North America recognized schools for their efforts to advance sustainability within their respective automotive and collision repair programs. As a result of combined student teams and faculty derived submittals, each school will receive funds from the Sustainability Education Challenge Grant to implement their proposals and report on the success of their project. Schools from around the country submitted applications. Applications were evaluated by the CREF Selection Committee on the ability to expand awareness of sustainability, advance continuous improvement, and create a positive impact within the local community where the schools are located.
The recipients include: ● Applied Technology Center (Rock Hill, SC) ● Central Nine Career Center (Greenwood, IN) ● Freedom High School (Freedom, WI) ● Norwalk High School (Norwalk, CA) ● Olathe Advanced Technical Center (Olathe, KS) ● Springfield Clark Career Center
(Springfield, OH) ● Thomas Edison CTE High School (Jamaica, NY) ● Walla Walla Community College (Walla Walla, WA)
The program, initiated by AkzoNobel in an effort to support one of the core principles of the global corporation, was introduced in 2014. The goal was to create awareness and educate students, with intentions of seeking careers within the collision repair industry, on the growing global imperative of sustainability and its ability to make a positive impact in all facets of life today and more importantly for the future. “We are proud to be aligned with AkzoNobel for a second year on the topic of sustainability.” said Clark Plucinski, CREF Executive Director. “This topic, while growing nationally and internationally, is not necessarily one that is routinely thought about in our industry by students and instructors. However, the grant application process encourages both to thinking outside the box and moving the school forward. The ultimate goal is to create awareness within an emerging workforce and the business where they will be employed.”
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 47
New Source of Vehicles for NABC Recycled Rides
Thanks to SCA Appraisal Company, a nationwide provider of appraisal services, the National Auto Body Council will have a new source of vehicle donations for its Recycled RidesTM program. According to SCA President Tim Davis, as SCA acquires vehicles throughout the year, it will launch an effort to identify and donate those that may be a good fit for the National
Auto Body Council’s Recycled Rides program. An added bonus is that most of these will be newer, already roadworthy cars that are practically ready to be gifted to deserving individuals or nonprofit organizations in need. “Recycled Rides is a tremendous program that our collision industry
State Farm® Refines Repair Facility Survey
State Farm Insurance announced market refinements to its repair facility survey. The surveys allow eligible auto body repair facilities to help identify prevailing competitive prices (PCP) and paint and materials pricing levels. Information provided by repairers through the survey process is used to help identify appropriate pricing for State Farm staff-prepared estimates. The State Farm Auto Repair Facility Survey has been in place for several years with periodic updates taking place when business needs arise. State Farm spokesman Justin Tomczak said, “We are refining market boundaries used to determine prevailing competitive prices to serve our customers and to better align with government defined market areas.” Updates may result in PCP adjustments in some areas in addition to the periodic changes in PCP relating to updated repairer pricing and capacity information. State Farm said repairers can voluntarily update their repair capacity and pricing information at any time on their b2b website. The insurance company added that it will continue to remind repairers of the survey process.
has rallied to support because of the significant impact it makes in the lives of so many individuals nationwide,” said Davis. SCA’s first vehicle donation, a 2013 Hyundai Elantra, will be presented later this summer in partnership with Fix Auto in Pasadena, CA to Lee Ann Smith, a Gold Star, single mother who lost her son in the service. “Fix Auto’s participation in Recycled Rides provides an opportunity for our locations to give back to the communities they serve in a meaningful way,” said Fix Auto USA President and COO Paul Gange. “We encourage our owner-operators to participate in events and opportunities such as Recycled Rides to do just that.” According to Chuck Sulkala, Executive Director of the NABC, with the success and growth of the Recycled Rides program over the past several years, the NABC is fielding more requests from individuals and charities, as well as repairers and parts vendors eager and willing to donate their services and materials if more vehicles are available. “We are grateful to the many insurance, rental car and salvage companies whose vehicle donations have been and continue to be the backbone of our Recycled Rides program since its inception,” said Sulkala.
U.S. House Subcommittee Hearing on Connected Cars
On June 24, the U.S. House Subcommittee on Commerce, Manufacturing, and Trade under the Energy and Commerce Committee held a hearing entitled, “Vehicle to Vehicle Communications and Connected Roadways of the Future.” Members addressed issues associated with emerging telematics, vehicle-to-vehicle communication (V2V), and vehicle-to-infrastructure communication (V2I). The witness panel featured leaders in vehicle technology development including Nathaniel Beuse, associate administrator of Vehicle Safety Research for the National Highway Transportation Safety Administration (NHTSA), and Dr. Peter Sweatman, Director of the University of Michigan Transportation Research Institute. Witness testimony focused on the lifesaving potential of V2V technologies, national and international standards, future congressional rulemaking, and the timeline for implementation. Beuse will make a presentation at the Automotive Service Association’s NACE|CARS Show in Detroit on July 23. Panelist Harry Lightsey, Executive Director, Global Connected Customer Experience for General Motors LLC, said, “NHTSA has estimated that V2V could by itself impact more than 80 percent of the over four million an-
nual unimpaired light vehicle crashes, saving lives and reducing $871 billion in costs to our nation’s economy each year.” Subcommittee members expressed optimism about the benefits of V2V technologies, but remained wary of potential threats from hacking, connectivity lapses, and modified driver behavior. Rep. Frank Pallone, ranking member, D-NJ, stated his concerns in his opening statement; “While the progress and potential of this technology are clear, we in Congress must continue to ensure proper oversight as NHTSA moves aggressively toward its goal of finalizing its V2V rulemaking by the end of this year. While pushing for V2V-enabled cars, NHTSA must also ensure drivers have the most beneficial crash avoidance and crashworthiness technologies in all cars, not just those supported by V2V communications.” At the conclusion of the hearing, members expressed their intent to follow this issue closely, with special attention to NHTSA’s rulemaking process. NHTSA is currently working to deliver a Notice of Proposed Rulemaking on V2V communications by 2016. For information about ASA, visit www.ASAshop.org, or ASA’s legislative website at www.TakingTheHill .com
LKQ Corporation to Acquire The Coast Distribution System
LKQ Corporation and The Coast Distribution System, Inc. signed a definitive agreement for LKQ to acquire Coast for $5.50 per share in cash. Coast is a leading distributor of replacement parts, supplies and accessories for recreational vehicles (RVs) primarily to retail parts and supplies stores, service and repair establishments, and new and used RV dealers in North America. The acquisition is currently expected to close in the third quarter of 2015. Coast’s board of directors has unanimously recommended that Coast stockholders accept the offer and tender their shares. Total cash consideration payable for Coast’s outstanding shares is approximately $29 million. As of June 30, Coast had $19.5 million outstanding under its long-term revolving bank line of credit. “The combination of Coast with our specialty segment and RV business presents tremendous distribution and logistics synergies with our existing network, and expands our RV business with the addition of unique product offerings and brands,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.
48 AUGUST 2015 AUTOBODY NEWS | www.autobodynews.com
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NHTSA Announces All VIN Numbers Under Takata Air Bag Recall in Search System The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced that all vehicle identification numbers affected by the massive Takata air bag recall are loaded into the agency’s search system. The recall involves 11 auto manufacturers and roughly 34 million vehicles. “An informed consumer is one of our strongest allies in ensuring recalled vehicles are repaired, said U.S. Transportation Secretary Anthony Foxx. “NHTSA’s VIN search tool at safercar.gov makes it easy for consumers to check if their vehicle is affected by the recall, and to take action in getting the air bags replaced.” In May, Takata announced a national recall of certain types of driver and passenger side air bag inflators. These inflators were made with a propellant that can degrade over time and has led to ruptures that have been blamed for seven deaths and more than 100 injuries worldwide. The recall is one of the largest and most complex product recalls in history. “As this recall progresses, NHTSA will organize and prioritize the replacement of the defec-
tive air bag inflators to ensure that defective inflators are replaced with safe ones as quickly as possible,” said NHTSA Administrator Mark Rosekind. The agency has established a new website, SaferCar.gov/Recalls Spotlight, to provide regular updates on the status of this and other recalls of high interest. Below are additional tools and tips from the nation’s auto safety agency:
● Register Your Cars, Tires and Car Seats: Receive NHTSA email notifications when the manufacturer files the recall with the federal government. There is no way to locate or notify individual owners of car seats or tires if the product is not registered with the manufacturer or NHTSA. ● Receive recall alerts on Apple devices, Android devices, or Email.
● Check NHTSA’s New Car Assessment Program (NCAP) 5-Star Ratings System when considering purchasing a new or used vehicle.
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Hyundai Launches Recognized Collision Repair Center Program
On July 14, Hyundai Motor America launched its all-new Hyundai Recognized Collision Repair Center program. This program ensures both independent and Hyundai dealership-owned collision repair centers have the training, tools, equipment, and facilities needed to properly repair Hyundai vehicles after they have been involved in a collision. “Hyundai owners benefit from this program through the assurance that centers will ensure the fit, finish, durability, safety and value of the vehicles being repaired,” said Frank Ferrara, Executive VP, customer satisfaction, Hyundai Motor America. “Having a network of recognized shops is critical to make sure our cars are repaired properly.” Hyundai has teamed up with Assured Performance Network (APN) on this program. APN is a non-profit consumer advocacy organization that will guarantee both Hyundai dealershipowned and independent collision repair centers meet the program’s specified capability requirements, and pass an annual onsite audit and inspection. APN will also manage enrollment, online support systems, proof of compliance documentation and marketing. For details on Hyundai Assurance, visit www.HyundaiAssurance.com.
Solera To Invest $5M in Chinese Insurance Market
Solera Holdings Inc. will invest $5 million to advance the rapidly growing Chinese automobile insurance market with the creation of the country’s first Solera Technology Center (STC) research facility. The STC was created as a joint venture in 2011 between Solera and leading global insurer MAPFRE to help modernize the insurance ecosystems of growing and emerging countries throughout the world with data-based science, predictive software and technology-focused education and training for the P&C industry. The STC has already provided comprehensive technical training for nearly 2,000 Chinese professionals who work within the vehicle insurance, repair and appraisal industries. In October of this year, it will officially open a Beijing research facility designed to collect and analyze critical automotive data that advances vehicle safety, improves insurance claims efficiency and balances underwriting economics. The facility will enable the collection of technical car and repair data, the creation of traffic accident reconstruction reports, the development of car ratings for the insurance industry, training for insurers and repairers and certification for repair shops.
I-CAR® Updates its Courses to Keep Shops Informed I-CAR will be updating its courses on aluminum welding, Toyota vehicle repair and custom painting techniques. As part of the I-CAR Professional Development Program™ (PDP), the updated training courses are designed to keep collision repair shops and staff on the cutting edge of a rapidly changing industry. I-CAR’s hands-on, in-shop Welding Training & Certification™: Aluminum GMA (MIG) Welding (WCA03) takes into consideration the many differences between steel and aluminum welding. Updates to the course support the most current aluminum repairs, providing knowledge to prepare for the growing number of aluminum-body vehicles on the road. Featuring an in-shop welding capability and readiness assessment and one-onone personalized coaching, I-CAR’s comprehensive welding training contributes to overall shop productivity and weld quality on aluminum vehicles. Collision Repair for Toyota, Lexus, and Scion Vehicles (TOY01) offers updated OEM-specific repair procedures and recommendations for Toyota-specific vehicles, as well as enhanced graphics and videos to better equip technicians in making OEMapproved repair decisions for these
vehicles. Introduction to Custom Painting (ISP01e) and Custom Painting (ISP02e) provide technicians with fundamental as well as more advanced custom painting skills, offering an avenue for facility owners to add a new source of revenue for the business and additional value to consumers. Both online courses include refreshed graphics and updated technical content to help guide Refinish Technicians through this specialized service. “The courses that I-CAR has updated this quarter have all been done so with relevance as the key driver,” explained Josh McFarlin, I-CAR Director of Curriculum & Product Development. “We have worked to ensure that we’re providing the most up-to-date information to the industry, enhanced with improved graphics and videos. We believe these updates will maximize student knowledge retention to help collision industry professionals perform complete, safe, and quality repairs for the ultimate benefit of the consumer. I-CAR is pleased to add these updates to our already strong catalog offering.” Course updates are available on www.i-car.com/newcourses.
www.autobodynews.com | AUGUST 2015 AUTOBODY NEWS 49
CARDONE Industries Joins ASA as Corporate Member
The Automotive Service Association (ASA) announced one of its latest corporate members: CARDONE Industries. Corporate membership provides an opportunity for companies to expand their relationships with ASA and its leaders in the collision repair segment of the industry.
George Zauflik, Senior Vice President of Compliance/Government Relations with CARDONE, said, “We’re excited about this opportunity as it represents a part of our continuing growth strategy, allowing CARDONE to align itself with technicians to receive valuable industry feedback.”
Dan Risley, ASA President/Executive Director, commented about the new partnership, “CARDONE has been a longtime supporter of ASA and our members. Its commitment to further support ASA as a corporate member will allow the relationship to grow to the next level.
Working more closely with CARDONE will benefit all of the stakeholders: ASA, CARDONE, service repair shops, technicians and the customer.” To learn more about ASA’s corporate membership program, contact Dan Risley, ASA president, at danr@asashop.org.
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