August 2018 Southwest Edition by Autobody News

36 YEARS

SOUTHWEST EDITIO N

AUTOBODY

Vol. 36 / Issue 8 / August 2018

AZ / AR / CO / LA / NM / OK / TX / UT

100,000+ Industry Jobs at Risk With Tariffs on Imported Auto Parts, Study Finds On June 29, the Auto Care Association urged the Trump administration to consider the severity of unintended consequences that may ensue by imposing tariffs on imported autos and auto parts, including the negative impact it would have on not only both the U.S. automotive industry and the jobs created by these imports, but also the U.S. economy at large. In comments submitted to the U.S. Department of Commerce regarding the Section 232 National Security Investigation of Imports of Automobiles, Including Cars, SUVs, Vans and Light Trucks, and Automo-

tive Parts, the association explained that the auto care industry’s “ability to source parts and components globally supports U.S. auto exports, provides U.S. consumers with a wider selection of vehicles and parts, and keeps vehicle repair and maintenance costs affordable for working families.” The association’s comments further explained that “the availability of affordable high-quality parts from foreign sources creates thousands of jobs that might be threatened should the Trump administration move forward with a tariff on vehicles and vehicle See 100K Jobs at Risk, Page 4

VW Exploding Sunroof Class-Action Lawsuit Is Partially Dismissed by David A. Wood, CarComplaints.com

A Volkswagen exploding sunroof class-action lawsuit is hanging on after the automaker filed a motion to dismiss the complaint. Plaintiff Rosaura Deras filed the lawsuit on behalf of consumers who purchased or leased in California any of the following vehicles equipped with factory-installed sunroofs: • 2005-2017 Volkswagen Jetta • 2015-2017 Volkswagen Golf

ASA President Resigns to Pursue Opportunity in Home State

The Automotive Service Association a consultant capacity until a new as(ASA) announced that ASA President sociation leader is named. and Executive Director Dan Risley ASA Chairman of the Board Roy will be resigning effective Schnepper, AAM, recently July 13. announced Risley’s resignaRisley has accepted a tion to the board. During the position with CCC Informatransition, Risley has named Beth Risch, its current CPA, tion Services Inc. in his home as interim chief operating state of Illinois. For the past officer. Risch will oversee five years, Risley was workday-to-day operations and ing remotely between his Dan Risley report directly to the ASA Chicago-area home and the North Texas area where ASA is based. Board of Directors beginning July 2. “I want to sincerely thank Dan To ensure a smooth transition See ASA President Resigns, Page 10 for the association, he will stay on in

INTRODUCING A NEW COLUMN!

Auto Body Attorney

• 2006-2015 Volkswagen GTI • 2009-2010 Volkswagen CC

• 2007-2016 Volkswagen Eos

• 2006-2009 Volkswagen Rabbit • 2012-2017 Volkswagen Passat

• 2004-2006 Volkswagen Touareg • 2011-2017 Volkswagen Touareg • 2008 Volkswagen R32

AUTOBODYNEWS.COM

with Bruce Roistacher

See page 22 in this issue.

Subaru Customers Now Get Virtual Visibility While Car Is in for Collision Repairs by Denis Flierl, Torque News

Subaru customers now have access to virtual visibility when they get their car repaired in a body shop. Here’s how Subaru’s new program benefits consumers.

See VW Exploding Sunroof, Page 4

2019 Subaru Forester

Subaru of America is the latest automaker to launch a certified collision repair program, working with its dealerships as well as select independent body shops, that will make

getting your car repaired after a collision easier. While Subaru vehicles like the 2019 Subaru Forester get new safety technology, customers will still be involved in accidents. According to a report by Automotive News, Subaru unveiled its new plan developed with Wadsworth International, a consultancy in suburban Philadelphia that will administer the program. Subaru isn’t the first automaker to do this, as Wadsworth also provides administrative support to Jaguar Land Rover’s collision certification program. Subaru plans to expand its pilot collision repair program into a national network this year, certifying 400 body shops by 2019. Subaru of America has 630 dealerships in the US. What are the benefits for SubSee Virtual Visibility, Page 4

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AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Take Part in This Year’s MSO Symposium in Atlanta

CONTENTS 2018 Texas Auto Body Trade Show Sept. 14–16 . . . . . . . . . . . . . . . . . . . . . . . . . 6 ABRA Auto Body Repair Expands With 8 Centers . . . . . . . . . . . . . . . . . . . . . . . . . . 59 ASA President Dan Risley Resigns to Pursue Opportunity in Home State . . . . . . . . . . . . . . 1 ASA-CO Event Focuses on Telephone Skills, How To Deal With Upset Customers. . . . . . . . 8 ASA-CO Members Learn to Manage Time, Technicians, Productivity . . . . . . . . . . . . . . . 12 Autonomous Shuttles Will Be Driving in Austin, TX, This Fall . . . . . . . . . . . . . . . . . . . . 6 CARSTAR CO Business Group Revs Up for Thunder on the Mountain . . . . . . . . . . . . 10 Dealers Offer Discounts on Dinged Vehicles in CO, But Is it Worth it? . . . . . . . . . . . . . . . 16 Hodges Collision Names Ryan Guinn as Rayford Road Location Manager in TX. . . . . . 6 Longtime Larry’s Auto Body Employee Retires in Fort Morgan, CO . . . . . . . . . . . . . . 9 PDR Experts in CO: Find a Reputable Shop, Avoid Fly-by-Night ‘Storm Chasers’. . . . . . . 12 TX Student Wins National Acclaim in Collision Repair Category at SkillsUSA. . . . . . . . . . . . 10

Have Not Billed for Seat Belt Inspections. . . 61 100,000+ Industry Jobs at Risk With Tariffs on Imported Auto Parts, Study Finds . . . . . . . 1 AAAS Hosts YANG Meet-Up With Annual Conference & Trade Show . . . . . . . . . . . . . . 60 Apple Car Project Evolves With Larger Test Fleet, New Hire . . . . . . . . . . . . . . . . . . 58 Auto Care Association Establishes Al Gaspar Memorial Fund . . . . . . . . . . . . . . . . . . . . . . 59 Auto Care Association Named Red Hot Association . . . . . . . . . . . . . . . . . . . . . . . . . 58 AutoInc. Seeks Submissions for Top 10 Websites Contest . . . . . . . . . . . . . . . . . . . . 55 Axalta Releases Spies Hecker Permacron Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 California’s AB 2825 ‘Will Force Body Shops to Become Debt Collectors’. . . . . . . . . . . . . 14 Car Prices Would Soar Under Trump’s Latest Tariff Plan . . . . . . . . . . . . . . . . . . . . . 34 CARCO Adds Windshield Damage Inspections To Fight Fraud in FL. . . . . . . . . . . . . . . . . . . 56 CARSTAR SL, Enterprise Rent-A-Car Fight Cause. . . . . . . . . . . . . . . . . . . . . . . . . 12 Center for Auto Safety Renews Call for Ford Recall . . . . . . . . . . . . . . . . . . . . . . . . . 54 Deadline Approaching for CREF, 3M Hire

COLUMNISTS Attanasio - Career Estimator Works for SF Giants in Security. . . . . . . . . . . . . . . . . . 20 Attanasio - Reward, Motivate Your Employees Without Breaking the Bank . . . . . . . . . . . . . 36 Ledoux - Oldest Body Shops In America: Bistagne Bros Body Shop . . . . . . . . . . . . . . 50 Ledoux - The 1940s – Part 2 – New Products, Higher Speeds . . . . . . . . . . . . . . . . . . . . . . 44 Phillips - Body Shop Owner Designs Quality Control App for Collision Repair Industry . . . 46 Phillips - How To Increase CSI, Encourage Repeat Business and Differentiate Your Shop . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Phillips - Robaina Direct Addresses Considerations for ‘Small and Medium Damage Repairs’. . . . . . . . . . . . . . 52 Roistacher - Ask the Auto Body Attorney: August 2018 . . . . . . . . . . . . . . . . . . . . . . . . 22 Sisk - ASA Hosts Road to Great Technicians Webinar With CARQUEST’s Chris Chesney . . 24 Sisk - ASA-AZ 2018 ATE Features Educational, Networking Opportunities . . . . . . . . . . . . . . 18 Yoswick - A Decade Ago, a Different National Association Sought to Replace its Executive Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Our Heroes Fundraiser . . . . . . . . . . . . . . . . 27 Deadline for CREF, 3M Hire Our Heroes . . . . . . 59 Kroger, Nuro Partner to Pilot Autonomous Delivery for Groceries . . . . . . . . . . . . . . . . . 15 Mazda Recalls 270,000 Vehicles With Airbag Explosion Risk . . . . . . . . . . . . . . . . . 43 PPG Posts Q3 Collision Refinish Training . . . . . . 8 RI General Assembly Passes Auto Body Shop Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 SCRS Welcomes Nissan as Newest Corporate Member . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Spanesi Americas Expands Training Team . . . . 47 Stacey Phillips Joins CIECA as Communications Specialist . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Subaru Customers Now Get Virtual Visibility While Car Is in for Collision Repairs . . . . . . . . 1 Take Part in This Year’s MSO Symposium in Atlanta . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 TechForce Report Reveals Severity of Vehicle Tech Supply Shortage . . . . . . . . . . . . . . . . . 56 U.S. Aftermarket To Grow at Annual Rate (CAGR) of 3.4% Through 2021 . . . . . . . . . . 61 Volkswagen Adds Another 2,564 Vehicles to Takata Recall List . . . . . . . . . . . . . . . . . . 48 VW Exploding Sunroof Class-Action Lawsuit Is Partially Dismissed . . . . . . . . . . . . . . . . . . 1 WD-40 Announces Partnership With

NATIONAL ‘Who Pays for What?’ Finds Half of Shops

Techforce . . . . . . . . . . . . . . . . . . . . . . . . . . 27

INDEX OF ADVERTISERS

REGIONAL

The MSO Symposium is led by highgrowth executives from the leading multi-shop operations within North America, including ABRA, Caliber, CARSTAR, Certified Collision Group, Fix Auto, Service King and several others. These highly experienced individuals gather annually at the MSO Symposium to deliver a program that speaks directly to their circumstances and provides relevant content to collision repair facilities in similar situations. With an expanded program for 2018, attendees will gain useful information on topics like: OEM Certification Programs—the Reasons “Why”; Pre-, Post- and In-Process Scanning; Talent Development; ADAS & its Impacts; and more. This year, MSO executives will be sharing guidance on what owners with prospective growth paths can do to prepare for expansion and will point out some things to avoid.

The MSO Symposium kicks off at 10 a.m. on Thursday, August 9. AkzoNobel will be providing attendees with a generous lunch, and PPG will bring attendees the opportunity to continue to discuss questions and answers during an evening reception, beginning at 6 p.m. The MSO Symposium’s program is directly relevant for owners of large yet independent collision repair facilities, OEM collision repair program managers, insurance professionals and members of multi-shop operators (MSOs). The event is exclusive and only open to people within the above categories. If you are a supplier of service or equipment to this industry, a limited number of prominent industry sponsorships are available as well. Be sure to register today, as seating is limited! The MSO Symposium is just one of the industry meetings set to take place in conjunction with the NACE Automechanika Show in Atlanta, GA.

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

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.

Audi South Austin . . . . . . . . . . . . . . . . . . 38 Audi Wholesale Parts Dealers . . . . . . . . . 53 AutobodyLaw.com. . . . . . . . . . . . . . . . . . 16 AutoNation Chevrolet. . . . . . . . . . . . . . . . 50 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . . . . . 24 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . . . 26 Axalta Coating Systems. . . . . . . . . . . . . . . 7 Berge Ford . . . . . . . . . . . . . . . . . . . . . . . 37 Big Mike Naughton Ford . . . . . . . . . . . . . 25 BMW Wholesale Parts Dealers . . . . . . . . . 55 Bob Howard PDC. . . . . . . . . . . . . . . . . . . 39 Certified Automotive Parts Association . . . . 9 Chapman Chevrolet. . . . . . . . . . . . . . . . . 48 Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 34 Christopher’s Dodge World . . . . . . . . . . . 25 Christopher’s Mitsubishi . . . . . . . . . . . . . 25 Classic BMW . . . . . . . . . . . . . . . . . . . . . . 43 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 62 Courtesy Chevrolet-Isuzu. . . . . . . . . . . . . 27 Covert-Chrysler-Dodge-Jeep-Ram. . . . . . . 8 Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . 64 Dent Magic Tools. . . . . . . . . . . . . . . . . . . . 6 Dominion Sure Seal. . . . . . . . . . . . . . . . . 21 Don Carlton Auto Group . . . . . . . . . . . . . . 46 ECS Automotive Concepts . . . . . . . . . . . . 30 Emich Chevrolet . . . . . . . . . . . . . . . . . . . 25 Emich Volkswagen . . . . . . . . . . . . . . . . . 25 EMS Automotive . . . . . . . . . . . . . . . . . . . 22 Equalizer Industries, Inc. . . . . . . . . . . . . . 31 Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2 Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 25 Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 25 Flatirons Subaru . . . . . . . . . . . . . . . . 11, 25 Ford Wholesale Parts Dealers . . . . . . . . . 49 GM Wholesale Parts Dealers . . . . . . . . . . 57

Greeley Subaru . . . . . . . . . . . . . . . . . . . . 36 GYS Welding USA . . . . . . . . . . . . . . . . . . 18 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers . . . . . . . 59 Ken Garff Mopar . . . . . . . . . . . . . . . . . . . 20 Kia Motors Wholesale Parts Dealers. . . . . 45 Larry H. Miller Chrysler-Jeep-DodgeRam/Sandy . . . . . . . . . . . . . . . . . . . . . 17 Launch Tech USA. . . . . . . . . . . . . . . . . . . 63 Mazda Wholesale Parts Dealers. . . . . . . . 60 Mercedes-Benz . . . . . . . . . . . . . . . . . 32-33 Mercedes-Benz of Littleton . . . . . . . . . . . 25 Mercedes-Benz Wholesale Parts Dealers . 61 Mitsubishi Wholesale Parts Dealers . . . . . 54 MOPAR Wholesale Parts Dealers . . . . . . . 35 North Freeway Hyundai . . . . . . . . . . . . . . 40 Part of the Club . . . . . . . . . . . . . . . . . . . . 25 Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 25 PPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Prestige Imports . . . . . . . . . . . . . . . . . . . 25 Ray Huffines Chevrolet . . . . . . . . . . . . . . 47 Rickenbaugh Volvo . . . . . . . . . . . . . . . . . 25 Robaina Industries, Inc . . . . . . . . . . . . . . 41 SATA Dan-Am Company . . . . . . . . . . . . . 19 SEMA Trade Show . . . . . . . . . . . . . . . . . . 23 Sherwin-Williams Automotive Finishes . . 13 South Pointe Chrysler-Jeep-Dodge . . . . . . 14 Spanesi Americas . . . . . . . . . . . . . . . . . . 15 Subaru of Little Rock . . . . . . . . . . . . . . . . 44 Subaru Wholesale Parts Dealers . . . . . . . 51 Symach. . . . . . . . . . . . . . . . . . . . . . . . . . 10 Toyota of Laredo . . . . . . . . . . . . . . . . . . . 12 Toyota Wholesale Parts Dealers . . . . . . . . 58 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . . 60 Young Chevrolet . . . . . . . . . . . . . . . . . . . 42

Autobody News Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Continued from Cover

VW Exploding Sunroof

• 2009-2017 Volkswagen Tiguan

According to Deras, she leased a 2013 Volkswagen Jetta in June 2013 and purchased the vehicle on June 3, 2016, at the end of her lease term. She claims that in 2017 while driving on the freeway, a loud “BOOM” like a gunshot went off in the car, followed by a hail of glass falling on her head and the interior of the Volkswagen. She said she saw a large hole in the center of her sunroof with the edges of the glass pointing upward, indicating the glass wasn’t broken from outside the vehicle. The plaintiff said VW has concealed defects in the sunroofs because since Dec. 14, 2009, 57 “owners and lessees of Class Vehicles have reported an incident of their sunroof shattering” to the National Highway Traffic Safety Administration (NHTSA). According to the plaintiff, VW further knew of the defect through its internal tracking systems and because the automaker issued a recall for its 2013—2015 Beetle. The recall was issued “relating to the shattering of sunroofs,” but “it has done nothing regarding the far more predominant problem relating to all regular and panoramic sunroof shatContinued from Cover

Virtual Visibility

aru customers? According to the reports, the intake process at the shop mirrors that of a dealership’s service drive. Estimators meet customers in the body shop’s service area to review collision damage. A key feature of Subaru’s new certified collision repair

Continued from Cover

100K Jobs at Risk

parts.” Included in the comments was a recent economic study completed for the Auto Care Association by John Dunham and Associates, which found that a 25 percent tariff 4

tering that affects potentially hundreds of thousands or more VW vehicles.” Volkswagen moved to dismiss the exploding sunroof class-action lawsuit, starting with implied warranty claims on the grounds they are barred by the four-year statute of limitations. The plaintiff does not dispute that she did not file the lawsuit within four years of the date on which she leased the vehicle. However, she argues that her claim was timely because her June 2016 purchase re-started the statute of limitations clock. The judge agreed. Deras also claims she can bring an implied warranty claim because Volkswagen sold her the vehicle, but VW argues the lawsuit never mentions where she actually purchased the vehicle. However, the judge ruled the assumption is the vehicle was purchased from the same dealership that leased it. However, according to the judge, VW won the argument about a claim of unjust enrichment by arguing the new vehicle warranty precludes the claim. Concerning the claim that Volkswagen knew about the sunroof problems because of internal monitoring and complaints made to NHTSA, VW says the allegations are not enough to state a claim in court, and the judge agreed. Deras alleges NHTSA received

57 complaints of shattering sunroofs between Dec. 14, 2009, and April 11, 2017, and that safety regulators monitored the complaints. Of those complaints, 45 were made before Deras purchased her vehicle on June 3, 2016. But according to the judge, “the Ninth Circuit has held that consumer complaints suffice to establish knowledge only where there were an unusual number of complaints, such that the manufacturer would be on notice of a specific problem.” The judge also found the plaintiff contends there are “potentially hundreds of thousands or more of VW vehicles with defective sunroofs, so 57 complaints out of hundreds of thousands of vehicles aren’t an unusual number of complaints.” “These complaints therefore do not show VW’s knowledge of the alleged defect,” said Judge Jon S. Tigar. As for the allegation that Volkswagen knew about the alleged shattering sunroofs because of a previous recall related to sunroofs, the judge ruled Deras has cited no authority, and the judge is aware of none, holding that prior recalls of similar products is enough to establish knowledge of a defect. Therefore, the judge dismissed claims of violations of California’s unfair competition law, California Consumer Legal Remedies Act and fraud by omission, but with leave to

amend the claims. Overall, the judge dismissed all the claims against Volkswagen except claims related to implied warranties. The Volkswagen exploding sunroof class-action lawsuit was filed in the U.S. District Court for the Northern District of California - Rosaura Deras, et. al., v. Volkswagen Group of America, Inc. The plaintiff is represented by the Law Office of Robert L. Starr, APC, and the Law Office of Stephen M. Harris, APC. CarComplaints.com has complaints about the models named in the lawsuit: • Volkswagen Jetta

program enables customers to use their mobile devices to get daily photos of their vehicle as it goes through the repair process. The software for the program is produced by Audatex, which developed a web portal for Subaru called AutoWatch, allowing customers to get updates by email or text message and to direct questions and feedback to the body shop. Roy Duplantier, vice presi-

dent of business development at Audatex, said, “You can get visibility into the shop virtually, as opposed to having to physically visit every shop.” Collision repair centers that use AutoWatch operate more transparently and tend to repair damaged vehicles faster, Duplantier said. At the same time, the collision repair program allows Subaru to monitor a shop’s repair practices and ensure it

is complying with the certified network’s standards. “We get collision center statistics with cycle time and everything else that they’re doing,” said John Lancaster, Subaru of America’s national wholesale parts manager. “We also get customer satisfaction information, and the customer gets great communication out of it.” We thank Torque News for reprint permission.

on imported auto parts could cause a reduction of 17,800 jobs in the auto parts manufacturing sector, resulting in $1.4 billion in lost wages. The study further predicts that 6,800 jobs would be lost by vehicle repair shops and an additional 85,200 jobs in the auto care wholesale and retail segment due to lower demand. These are mostly small family-owned busi-

nesses that would suffer severe economic harm should a 25 percent tariff be levied on autos and auto parts. Because the auto industry operates on a global platform, the reality is that goods are rarely designed, manufactured and consumed in one country. Technological efficiencies, lower trade costs and improved logistics have allowed companies to

tighten and optimize supply chains. Imports help companies lower costs and improve product quality, allowing them to remain competitive domestically and export globally. The study also found that imposing additional tariffs on auto parts and components would increase their price substantially, making it more

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

• Volkswagen Golf • Volkswagen GTI • Volkswagen CC

• Volkswagen Eos

• Volkswagen Rabbit • Volkswagen Passat

• Volkswagen Touareg • Volkswagen Tiguan

We thank CarComplaints.com for reprint permission.

See 100K Jobs at Risk, Page 9

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Autonomous Shuttles Will Be Driving in Austin, TX, This Fall by Amy Denney, Community Impact Newspaper

It may not be the ‘Dillo shuttle many Austinites remember, but a new downtown circulator operated by autonomous vehicles will launch this fall in Austin. The autonomous, or self-driving, shuttles are part of a new technology-infused approach to transit that Capital Metro has been exploring over the past couple of years. “We just really want to start connecting the community closer together through technology and the services Capital Metro provides,” President and CEO Randy Clarke said. Capital Metro will operate the pilot shuttle program, which has yet to be named, for 12 months, and rides will be free during that period. The agency will also be seeking bids from autonomous vehicle manufacturers to lease six vehicles for the program. The 15-passenger shuttles, which will be accessible under the Americans with Disabilities Act requirements, will travel throughout downtown every five to seven minutes on a route that has not yet been determined. However, the shuttle will serve major destinations, such as Austin City Hall, the new Cen-

tral Library, Republic Square and the downtown MetroRail station, according to Capital Metro. “We think we could connect that whole east-west downtown connectivity piece that we know could be a little better than today,” Clarke said.

In 2017, Capital Metro and RATP Dev, one of its service providers, hosted a demonstration during SXSW of autonomous vehicles. Credit: Amy Denney, Community Impact Newspaper

Even though the shuttles will operate autonomously, an operator will be on board to assist customers and be on hand for any safety or security issues. Testing of the autonomous system will begin in July and take 60 days. The first phase will involve testing the technology without pas-

Hodges Collision Names Ryan Guinn as Rayford Road Location Manager in TX

Steve Guinn, president/CEO of Hodges Collision Center, announced that Ryan Guinn was named location manager of the

Ryan Guinn

Rayford Road location in Spring, TX. Ryan was raised in the business and remembers sweeping floors and cleaning up the shop when he was in high school. After serving in the Navy, he worked for several years at Caliber Collision before rejoining the team at Hodges Collision Center. “We are so pleased to have Ryan in a leadership position at 6

our Hodges Collision Center Rayford location,” Steve noted. “He brings valuable experience from the Navy as well as his experience at other shops, giving him a unique perspective of knowing what our Hodges customers expect. He will be instrumental in helping us grow that location as well as the company.” “My focus is on great customer service and we want to make it as smooth as possible for our clients to not only get the information they need, but to get accurate updates during the repair process,” Ryan said. Born and raised in Spring, TX, Ryan is an avid golfer and loves sports. He currently resides in Spring.

www.autobodynews.com

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

sengers on board and include assessing the battery life, how the vehicles dock to let passengers on and off, and safety concerns. The second phase would involve passengers on board, officials said. “This is not only a transportation project, but a tech project as well,” said Elaine Timbes, deputy chief operating officer of Capital Metro. “While it’s a proven tech, we still have some proving to do in the city of Austin.” In 2017, Capital Metro and RATP Dev, one of its service providers, hosted a demonstration of autonomous vehicles at The University of Texas during the South by Southwest Conferences and Festivals. Autonomous shuttles are also a part of other innovative mobility solutions the agency will explore under its Connections 2025 service plan adopted last year. “[Autonomous vehicles are] kind of in this migration period right now between fully autonomous in the future and the vehicle kind of learning,” Clarke said. “We think it’s going to be safe and efficient, and it’s spread out from a capacity and frequency point of view.” We thank Community Impact Newspaper for reprint permission.

2018 Texas Auto Body Trade Show Sept. 14–16

Registration is OPEN for the highly anticipated 2018 Texas Auto Body Trade Show! The show has reached new heights this year, boasting 47,000 square feet of exhibit space with concrete floors to showcase the latest tools and equipment. There will be celebrity appearances, cash and raffle prizes, the BIG 3M semi truck, nationally recognized speakers and so much more! When Friday, Sept.14, 2018 at 8 a.m. CDT -toSunday, Sept. 16, 2018 at 2 p.m. CDT Where Will Rogers Memorial Center 3401 W. Lancaster Ave Fort Worth, TX 76107

This year ABAT is expecting more than 600 in attendance, so register TODAY to secure your spot and hotel. Visit www.abat.us for more information.

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

PPG Posts Q3 Collision Refinish Training

PPG has released its schedule of collision refinish training classes for July, August and September. Classes cover key collision refinish subjects and are designed to ensure that paint technicians are up to date with PPG products, processes and technological advances. All classes are led by expert instructors, take one to two days and are held at PPG Business Development Centers and various field locations throughout the U.S. and Canada. PPG training is the most extensive in the refinish industry, offering a broad range of topics from product selection, equipment and color tools to surface preparation and paint application best practices. All PPG classes allow opportunities for informal discussions and Q&A sessions with the trainers. Participants receive classroom instruction and, when appropriate, hands-on experience in the spray booth.

ASA-CO Event Focuses on Telephone Skills, How To Deal With Upset Customers

role-playing, and the training seminars were packed with good inforOn June 5 and 6, ASA-CO hosted an- mation on taking the time to really other educational training opportunity listen to a customer and his/her confor its members at the Western Com- cerns.” The first evening focused on munity College in Grand Junction, CO. Greg Marchand of Service phone skills, using class discussion Sales Academy taught “Telephone and role playing to explore the Skills and Dealing with Upset Cus- subtleties of verbal communications. Some helpful tips included tomers.” smiling when answering the phone, being prepared to take good notes, keeping a phone log and rewarding customers for scheduling appointments. On the second night, attendees learned how to diffuse tense situations with upset customers by listening to the complaint, showing empathy and acting to ASA-CO’s training on June 5 and 6 attracted 13 attendees fix the problems. Marchand shared, dedicated to improving their businesses “Often, customers just want According to ASA-CO Board someone to listen. Don’t judge until Member Darrin Barney, “The event you know all of the facts. Don’t went great with lots of information blame.” The training seminars attracted on the correct ways to answer phone calls on the first night, and the sec- 13 attendees who desired to increase ond night was on how to deal with customer satisfaction and improve upset customers. There was lots of their businesses. by Chasidy Rae Sisk

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Greg Marchand of Service Sales Academy taught ASA-CO members about telephone skills and how to deal with upset customers

Barney noted, “Greg’s classes are always very insightful and worth the time investment. ASA-CO’s training opportunities help shop owners improve their business and build unity between shop owners. ASA is a wonderful organization that is designed to help the average shop owner become better.” For more information on the association and the training offered, visit asacolorado.org.

Continued from Page 4

100K Jobs at Risk

difficult for working Americans to afford a new car or the cost of repairing the vehicle they currently own. The study estimates that the cost of car ownership will increase by more than $700 per year per household should the tariffs be imposed. The Auto Care Association concluded its comments to the Department of Commerce by recommending that the Trump administration “refrain from trade restrictions that would undermine the auto industry, and instead seek solutions that protect U.S. investments, facilitate trade and create competitive value chains that benefit the global growth of our industry.” For more information about the Auto Care Association’s government affairs initiatives, please contact Aaron Lowe at aaron.lowe@ autocare.org.

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Longtime Larry’s Auto Body Employee Retires in Fort Morgan, CO by Staff, Fort Morgan Times

Wes McMullen has been in the business of repairing cars for more than 45 years. He recently announced his retirement from Larry’s Auto Body in Fort Morgan, CO, where he’s worked for three decades and fixed more than 7,400 cars. McMullen’s family members and co-workers held a surprise party at the Jaycee building on June 23 in Brush to celebrate his long and remarkable career. “I’ve worked for Larry for over 30 years, although I’ve been in the industry for 45 years,” he said. “I worked for another shop for a few years prior, but most of my career has been here with this company.” When asked about the highlights of his career, he explained that the feeling of rebuilding a car from start to finish is “secondto-none.” “The satisfaction of working on a car from start to finish is what excites me the most,” he said. “I never really felt like it was work. If you want to be good at something, you have to have a passion for that thing—you have to really enjoy it. I can tell you that there was never a day that I woke up and didn’t want to go to work.” McMullen resides in Brush, although

he’s originally from Geneva, NE. He attended college at Milford Technical College, now called Southeast Community College. After graduating, he worked on cars in Lincoln, NE, for a few years before making the move to

Wes McMullen, who has fixed more than 7,400 cars while working at Larry’s Auto Body over the course of three decades, is retiring. Credit: Zach Schwindt, Fort Morgan Times

Brush in 1976. He explained that one morning four decades ago, he was reading the Lincoln Journal Star when he came across an advertisement for a job opening at a Ford dealership in Brush. Although he didn’t know anything about the town at the time, he packed his bags to begin a new career. “I worked at the Ford dealership for less than a year, and their business trickled off to nothing,” he said. “At that time, I had a 6-month-old baby

to take care of, so I had to get up and do something to make ends meet.” Shortly after the Ford dealership closed, McMullen was hired by Al Mercer’s body shop in Fort Morgan, but Mercer’s body shop also closed within a year after he started. “In the meantime, I met Larry and we became friends, as he was into old cars and I was into old cars, so I went to work for him at his body shop and ended up staying for over 30 years,” he said. “He told me that as long as he had his shop open, I would have a place to work, and that really stayed with me. I couldn’t have asked for a better career.” Larry Harris, who owns and operates Larry’s Auto Body, gave McMillen a plaque that read “Wes, time to stop living at work and start working at living.” Harris said McMullen is an incredible asset to the auto body industry. McMullen said that although he’s entering retirement, his passion for cars will keep him busy with personal projects. “My passion for cars will never go away,” he said. McMullen and his wife, Sally, are the parents of four adult children and the grandparents of 10 grandchildren. We thank Fort Morgan Times for reprint permission.

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Continued from Cover

ASA President Resigns

for his strong leadership during a crucial time in the history of the association,” Schnepper said. “His natural leadership talents, his financial prowess and inexhaustible energy led him to govern ASA with success and achievement. I know the entire board joins me in thanking him for his service and commitment to ASA.” As president, Risley navigated ASA through an era of great change and transition. Among his accomplishments include: • Implementing sound financial practices and processes after the association endured employee fraud • Adding three new affiliates to the association • Expanding and growing the popular MSO Symposium • Founding the Advanced Technology Diagnostic Repair Forum, now rebranded the Technology & Telematics Forum • Implementing a Corporate Sponsorship Program, which is a strong revenue stream

• Partnering with Messe Frankfurt to combine Automechanika with NACE for NACE Automechanika “ASA has served the industry for more than 60 years, and I’m proud to say I was part of its rich history and success,” Risley said. “I look forward to staying engaged in ASA and contributing to its mission of serving its members. My family has always been my top priority, so it will be nice to be back in my home base of Chicago for the long term.” Over the next few months, ASA will be conducting a search to find a new executive director, seeking an individual with association management experience. “During this period of transition, it is our priority to find the best individual to lead while still maintaining a stable and effective organization,” Schnepper said. “Associations are undergoing enormous challenges due to generational shifts, social changes and technology. It’s crucial that we find the right leader who can address some of those challenges and give us a clear vision for our future.” The association will be sharing a job announcement soon.

TX Student Wins National Acclaim in Collision Repair Category at SkillsUSA by Christy Soto, KWTX 10

A Texas State Technical College Waco student turned a lifelong passion into skills that helped him bring home a medal at a national competition.

Juan Alcala grew up working alongside his father at their car shop. He was 6 years old when he developed his passion for cars. “It’s in my blood line—there is something about cars I can’t look away from,” Alcala said. Recently, he traveled to Kentucky with his classmates and competed in the SkillsUSA 54th Annual National Leadership and Skills Conference in the collision repair technology category. He won the bronze, beating student mechanics from across the nation. Alcala returned to TSTC Waco as the first person since the 1990s to place in his category. 10

“It was astonishing. [It] caught me off guard [that] I placed and made history; it’s kind of cool,” Alcala said. For Alcala, his biggest reward was not bringing home a medal, but making his mentors and his father proud. “To me, it was a very proud moment for myself. I had finally met his expectations,” Alcala said. “He was very proud of me. It was the first time we’d ever done something like this.” His instructor, Philip McKee, was not surprised Alcala placed at nationals. “Craftsmanship of Juan’s work is probably the top here at the school, obviously—the best in the state of Texas—and I wasn’t really surprised at all that he placed at nationals,” McKee said. Alcala said this is only the beginning of his journey. “Only one thing we can do, and it is to better ourselves as we go along,” Alcala said. We thank KWTX 10 for reprint permission.

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

CARSTAR CO Business Group Revs Up for Thunder on the Mountain

On Saturday, June 16, the CARSTAR Colorado Business Group put the pedal to the metal as the title sponsor for Thunder on the Mountain at Bandimere Speedway. It was

its fifth year sponsoring the popular drag racing event. This year, CARSTAR opened up the fun to the fans with the new CARSTAR Challenge Race. Eight people from the crowd were chosen to speed through a single elimination race on the quarter-mile drag strip in Bandimere Dodge Chal-

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lengers. Winner Andrew Hartmann was presented with the first CARSTAR Challenge Race trophy. Race fans stopped by the CARSTAR trailer throughout the day to not only sign up for the race, but also to compete in a Pit Stop Challenge. Changing tires is no easy feat, but some contestants nailed the competition with the winning time being just over 18 seconds! “We’ve had a long partnership with Bandimere Speedway, and the addition of the CARSTAR Challenge Race put it in high gear,” said Steve Rigsby, business development manager for the CARSTAR Colorado Business Group. “We had outstanding weather and incredible crowds, and it was the perfect venue to advertise our CARSTAR brand!”

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CARSTAR SL, Enterprise Rent-A-Car Fight Cause

In support of its ongoing exclusive partnership with the CARSTAR St. Louis Business Group, Enterprise Rent-A-Car, through its Enterprise Holdings Foundation, donated

$2,500 to CARSTAR’s charitable efforts to fund research, treatment and advocacy for cystic fibrosis. Enterprise presented the donation to the CARSTAR St. Louis Business Group and the Driven Brands Charitable Foundation. Cystic fibrosis is a chronic, progressive and frequently fatal genetic disease primarily affecting the lungs and digestive systems in children and young adults. The average life expectancy of someone living with CF is 40 years. There is no cure. With the help from the Enterprise Holdings Foundation, CARSTAR will continue its efforts to help support the mission to cure cystic fibrosis.

PDR Experts in CO: Find a Reputable Shop, Avoid Fly-by-Night ‘Storm Chasers’ by Russell Haythorn, The Denver Channel

Mother Nature has been unforgiving to Denver, CO, homes and cars this severe weather season. And in the aftermath of hail come the storm chasers—scammers who try to take advantage of you when you’re most vulnerable. So, Contact7 got under the hood of your car to uncover what you should know about paintless dent repair. “We’re the only happy people when it hails,” said Brandon Dunaway, director of operations for HailCo paintless dent repair. “I’ve got 22 years of experience doing this,” said Rick LeRoux, a certified paintless dent repair technician. “We get behind the damage and slowly massage the metal back up into its original place.” Unlike traditional body shops that sand down and repaint your car, this is paintless dent repair. “As long as your car wasn’t hit by softball-sized hail, typically it can be PDR’d, which is paintless dent repair,” Dunaway said. PDR can save you a ton of time and money.

“I don’t think anyone wants their car in a body shop for six to eight weeks,” Dunaway said. “Sometimes that can’t be avoided, but no one prefers that.” At HailCo, the turn-around time is about two weeks. In terms of savings, HailCo will often pay your deductible and offers free rental cars when that’s not part of your insurance plan. Colorado law prohibits roofing companies from paying your homeowners insurance deductible, but the same laws do not apply to auto insurance. There’s also a buyer beware here. Just like roofing scams, the Rocky Mountain Insurance Information Association says to beware of “fly-bynight paintless dent repair” shops that lack a physical address in Colorado. They’re called storm chasers, and they’re often in it for a quick buck. “The problem with it is those companies come to town and they don’t do the best job—and then their phones don’t work six months later,” Dunaway said. Experts offer these tips: Be skeptical of anyone calling from an out-of-state number; ask for what’s called a guarantee of work; and fi-

On the evenings of June 12 and 13, ASA-CO hosted Greg Marchand of Service Sales Academy for a presentation on “Managing Time, Technicians and Productivity” at Advance Auto Parts (CARQUEST) in Denver, CO.

According to Julie Massaro, executive director of ASA-CO, “The event was very well-attended and went well. Attendees enjoyed the event and found it very valuable, and it definitely exceeded my expectations.” During the training session,

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Marchand explained that time is the product sold in the automotive service industry, so it is important and has a very real cash value associated with it. The program focused on industry best practices for creating a production process in which technicians can excel at producing while delivering quality and maximum profits. Marchand said, “Your technicians and the productivity with which they work relates directly to how much money your shop can make.” “The purpose of the seminar was to provide members with the expertise of master trainer Greg Marchand in these discussion areas,” Massaro noted. “It is important for the association to give back to the community by offering these training classes.” For more information, visit www.asacolorado.org.

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AUGUST 2018 AUTOBODY NEWS / autobodynews.com

We thank The Denver Channel for reprint permission.

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ASA-CO Members Learn to Manage Time, Technicians, Productivity by Chasidy Rae Sisk

nally, check references and always coordinate with your insurance company. “Whether you fix it with us or someone else, check Google, check Yelp, check reviews,” Dunaway said. If the work is shoddy, it could ding your car’s resale value. “It takes years and years to develop the skill-set,” LeRoux said. Most of HailCo’s technicians are contract workers who come with their own tools and expertise, like LeRoux. Also at HailCo, insurance adjusters with some of the biggest companies like GEICO and State Farm work right onsite, providing car owners peace of mind. “All you have to do is call us,” Dunaway said. “And we handle everything from the very beginning to the very end. We do onsite evaluations at your home or your business. We handle everything with your rental cars and your insurance companies.” And here, there is a guarantee. “It’ll look like it did the day before the storm,” Dunaway said.

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California’s AB 2825 ‘Will Force Body Shops to Become Debt Collectors’ by Ed Attanasio

If Assembly Bill 2825 (authored by Assembly member Reginald Byron Jones-Sawyer, Sr., Los Angeles) passes, auto repair shops, including collision repairers, will turn into debt collectors—a job that they’re not suited for, according to Jack Molodanof, head lobbyist for the California Autobody Association. Originally written to deal with towing companies, AB 2825 was amended on June 18 to include any company that repairs vehicles. The Automotive Service Councils of California and the California Automotive Business Coalition also oppose the bill. Supporters include Consumers Union, the California Low-Income Consumer Coalition, the California Immigrant Policy Center, the East Bay Community Law Center, the Los Angeles chapter of the National Lawyers Guild and Legal Services for Prisoners with Children. According to a legislative analysis of AB 2825, debt tied to vehicle towing, repairs or storage had been

exempt from the Rosenthal Fair Debt Collection Practices Act. The bill applies similar restrictions to other creditors on how repairers and tow companies can pursue reimbursement. Molodanof described the 40page bill as extremely complicated and far-reaching, with serious problems. “In simple terms, auto repair businesses are not ‘debt collectors’; they are small businesses that service and repair vehicles for their customers,” he said. “We’re still trying to get our heads around this bill and can’t fathom why we were ever included in it at all.” One of CAA’s main concerns about AB 2825 is the fact that when a body shop becomes a debt collector, communication with customers will be highly restricted. “Generally, vehicle liens are created once the vehicle is repaired and ready for pickup,” Molodanof said. “If this bill passes, communications will be regulated and subject to the laws that govern debt collectors.

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

So, if you want to send the customer a friendly reminder for when the car is ready to be picked up, it’s now a whole different situation. If the customer does not respond and you send another email, text or phone call, for example, those could potentially be considered repetitive communications that might be construed as being unreasonable and a form of harassment. Before, collision repair shops were out of the loop when it came to these types of collection practices, but now they could easily be subject to strict liability, unnecessary fines, penalties and frivolous lawsuits.” Frequent communications and reminders (calling, texting, emailing, etc.) with the customer to pick up a vehicle when it’s ready may be considered “debt collection” and is prohibited under the bill. “Communications with the customer’s employer or family members to have the vehicle picked up is also prohibited, which will constrain and make the process even harder,” Molodanof said. “Auto shops need to be able to communicate with their

customers, and this bill will make all of that much more problematic.” Basic mechanics’ lien rights will also be jeopardized if AB 2825 passes, Molodanof said. “Auto repair shops may only be able to recover 50 percent of the amount owed for services and repair after a lien sale based on guidelines of what the car may be worth as opposed to its actual value. The bill fundamentally changes mechanics’ lien laws and we believe that it’s unconstitutional,” he said. The proposed bill can also lead to what Molodanof calls “unintended consequences.” “Since a repair business will not be able to recover all of the money owed for services and repairs, shops will have no choice but to start requiring customers to pay the entire amount upfront in order to begin repairs,” he said. “This will significantly impact consumers, especially low-income individuals and working families who depend on older vehicles.” Another provision in the bill

that will lead to further complications deals with what is known as “language access.” “There are five different languages, including Spanish, Chinese, Korean, Tagalog and Vietnamese, that will trigger this section of the bill,” he said. “So, you’ll now have to provide documentation in different languages for certain customers, including estimates and final invoices. The bill is complicating the process on so many

levels because all of the laws that apply to debt collectors in the traditional sense will now apply for mechanical and collision repair shops. It’s bad policy to treat auto repair businesses as traditional debt collectors because they are not debt collectors; they are small businesses that repair and service vehicles. The bill also exempts new car manufacturer dealerships that own and operate repair facilities, but fails to exempt in-

dependent auto repair businesses that perform the same services, which is patently unfair.” To fight this bill, Molodanof is instructing shops to call or contact their Senator and request that this bill also exempt independent automotive service and repair facilities—not just new car manufacturer dealerships. You can find your representative at http://findyourrep.legislature.ca.gov/ and write a simple letter or email.

Kroger, Nuro Partner to Pilot Autonomous Delivery for Groceries

The Kroger Co. and Nuro recently announced a new partnership to redefine the grocery customer experience for Americans by piloting an on-road, fully autonomous delivery experience. Together, Kroger, America’s largest supermarket retailer, and Nuro, maker of the world’s first fully unmanned road vehicle, are working to make the convenience of grocery delivery accessible and affordable for customers everywhere. Through this innovative partnership, customers can place same-day delivery orders through Kroger’s ClickList ordering system and Nuro’s

app.

During the test, orders will be delivered by Nuro’s fleet of autonomous vehicles. This is the first application

and deployment of Nuro’s hardware and software. The pilot market will be

announced soon and is expected to begin this fall. Krogerwill change the status quo of grocery delivery through convenience at a low price. This allows customers to get what they need, when they need it, wherever they are. “As part of Restock Kroger, we have already started to redefine the grocery customer experience and expand the coverage area for our anything, anytime and anywhere offering. Partnering with Nuro, a leading technology company, will create cus-

“Wondering what to say when you call or contact your representative?” he said. “Here is a script: ‘Hi, my name is_________. I am the owner of___________. I am calling to ask that Senator ___________vote “no” unless the bill is amended to exempt independent repair shops. Auto repair shops service and repair cars for their customers. We are not debt collectors. Please vote ‘no.’ Thank you.’” tomer value by providing Americans access to fast and convenient delivery at a fair price,” said Yael Cosset, Kroger’s chief digital officer. “Unmanned delivery will be a game-changer for local commerce, and together with Kroger, we’re thrilled to test this new delivery experience to bring grocery customers new levels of convenience and value,” said Dave Ferguson, cofounder, Nuro. “Our safe, reliable and affordable service, combined with Kroger’s ubiquitous brand, is a powerful first step in our mission to accelerate the benefits of robotics for everyday life.”

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Dealers Offer Discounts on Dinged Vehicles in CO, But Is it Worth it? by Pat Ferrier, Coloradoan

Pedersen Toyota General Manager Mike Croce calls hailstorms a rite of passage in Colorado. It seems at least once a year, the area is hammered by hail strong enough to dent vehicles, smash car windows and cut a swath of damage across dealerships. About 600 vehicles—98 percent of Croce’s inventory—were damaged during the May 23 hail storm. Although damage to individual vehicles was lighter than past storms, it still left Pedersen with a slew of pocked cars.

Loveland resident Sariah Hooper and her friend Jordan Lawson look through the inventory of new cars on Friday, June 29, 2018, at Pedersen Toyota on South College Avenue in Fort Collins, CO. Credit: Timothy Hurst, The Coloradoan

Now Pedersen and other Fort Collins, CO, dealerships are offering deep discounts to move their inventory. The dealerships have already collected the insurance on the damage and are passing the savings on to consumers. Pedersen is offering between $5,000 and $6,000 off, Croce said. “It’s a great time to consider a new vehicle,” he said. But is saving $7,000 on the manufacturer’s suggested price a good deal when it might cost that much to have the vehicle repaired? Or is it a wash? What Dealers Say

“It can be a great way to buy a brand new vehicle with the latest technology and get great savings,” said Eric Baumgart, general manager at Markley Motors. His dealership was mostly spared from the storm, but it is still offering discounts between $600 and $700 for lightly damaged cars, Baumgart said. Fort Collins Mitsubishi, 2712 S. College Ave., fared less well. Eighty to 90 percent of its inventory was dinged, Finance Manager Dante Dennis said. Between factory discounts and hail discounts, Mitsubishi is offering $7,000 off its best-selling Outlander and Outlander Sport, which retail for between $25,000 and $35,000.

What Body Shops Say But body shops caution buyers to beware. It might be less money upfront to buy a hail-damaged car, but fixing the dings could be costly. The Carriage Shoppe on Link Lane is writing about six estimates an hour for hail-damaged vehicles, Office Manager Lynn Mecham said. The average repair cost is ranging between $3,000 and $8,000. The more extensive the damage, the higher the repair costs, she said. “A lot of vehicles are able to be done with paintless dent repair, so those are on the lower end,” she said. If paintless dent repair cannot be used, be wary because the cost of fixing the dings could add up. Paintless dent repair generally means the dents are easily pushed out and don’t affect the paint. “The worst case is if it needs a new roof,” Mecham said. “That’s a pretty big job.” Unless you know someone—a reputable body repairer—who can fix the dings at a discount, Mecham recommends having a body shop look over the vehicle before purchase to

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get an estimate of what repairs might cost. Should You Repair It? It might be tempting to take the discounts and not get the damage repaired, but it can affect future claims and trade-in value. “If you have hail damage and you get hailed on again, it’s a more difficult claim to process,” Mecham said. “If you get damage on the hood and the insurance company has paid you for a hood, and then you hit a deer,” Mecham said, the claim “gets cross-contaminated.” She gets her car fixed, she said, “because I want the vehicle to hold its value and when I get ready to trade it in, it helps.” Markley’s Baumgart said hail damage does affect trade-in value. “Most people don’t make a big deal about hail, especially when they’re trading in a vehicle. But from our end, it’s an issue. Hail damage means a lower trade-in value,” he said.

Tips Here are some tips from Oklahomabased Dent Terminator to keep you from getting burned on a hail-damaged car purchase.

• Get an estimate upfront from a reputable paintless dent repair company.

• Remember that pictures don’t tell the true story of hail damage. Only the most severe dents will show up. If you see it in a photo, it’s much worse in person. • Be ready to walk away if you smell a rat. If your tummy is tingling, probably not a good deal.

• If you still want the car, make sure you have the cash on hand to fix it.

• Take what the salesperson told you the repairs would cost and multiply it by four. We thank Coloradoan for reprint permission.

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Southwest Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

ASA-AZ 2018 ATE Features Educational, Networking Opportunities ASA-AZ hosted its 2018 Automotive Training & Expo (ATE) at the WeKoPa Conference Center & Casino in Scottsdale from June 22— 24. The theme was “Don’t Get Left Behind.”

AZ also helps us continue to make a difference with legislation in the industry. We are working hard to meet all our Arizona shop owners to help each one continue to [expand] their business, provide more training to keep up with changing technology and offer benefits through our sponsors to help succeed in their shops every day.” The 2018 ATE began on Friday morning with a golfing networking event. On Friday afternoon, collision repairers enjoyed a three-hour clinic on “Advanced Safety Systems: Attendees enjoyed plenty of training opportunities during Collision Service and Repair” ASA-AZ’s 2018 Automotive Training & Expo with AutoNation. At the same According to Diana DeLeon, time, AutoNation offered a technical event coordinator for ASA-AZ, “It presentation on Duramax 6600 Diesel: was another great training and expo LB7, LLY, LBZ, LMM, while service event for the association. We had advisors and managers enjoyed the over 35 sponsors and exhibitors from opportunity to learn about “Confident the automotive and technology in- Selling” from Maylan Newton and dustries, and we have received a Preston Osborn. The educational great deal of positive feedback from portion of the day concluded with a trainers, sponsors and attendees. Our demonstration from Bolt On Techmembers and their teams spent Fri- nology, followed by a reception and day afternoon and all day Saturday expo. in various training and continued edOn Saturday morning, the day ucation classes learning more about began with breakfast and networknew technology, automotive repairs, ing. Saturday morning’s educational marketing and business planning. offerings included AutoNation’s “Having our industry suppliers “Hybrid Vehicle Maintenance Proand colleagues together for training, cedures,” “Lab Scope” presented by mentoring and networking helps Calvin Higgins, and “The Power of keep our members and their staff at the Phone” and “Marketing without the top of the industry. When spon- Price” discussed by Maylan Newton sors and suppliers are able to get to and Preston Osborn. Shop owners know shop owners outside of the also had an opportunity to attend a shops, it builds more trust and under- 20 Group open discussion seminar, standing of what each has to offer in facilitated by Jeremy O’Neal, which order to give the customer the best was held in three parts on Saturday and most knowledgeable service morning, Saturday afternoon and available. Being a member of ASA- Sunday afternoon.

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On Saturday, collision repairers learned about GM structural safety in a three-hour clinic presented by AutoNation. A marketing seminar on Google Ad Words was also presented by Patrick Egan. Additionally, AutoNation covered “Hybrid Electric Vehicles: Repair it Safely after Collision,” while Ken Waterbury talked to managers about “Fleet, Increase Car Count.” Maylan Newton and Preston Osborn presented “I Object!” for service advisors. AutoNation’s “Next Generation GM Diesel Engines” and “Advanced Driver Assist Systems,” sponsored by Advance Auto Parts, were also offered. Sunday morning featured an owners/manager roundtable. Saturday’s attendees and guests also had a chance to participate in a fun wine and painting event, and the evening ended with the expo and silent auction. The 2018 ATE sponsors

included Bolt On Technology, Federated Insurance, Auto Zone, Parts Authority, O’Reilly Auto Parts, Kukui Corporation, WORLDPAC, NAPA, AutoNation Parts Center, Reliable Risk Management, Factory Motor Parts, Jasper Engines & Transmissions and LKQ. Additional exhibitors at the expo included Cardconnect First Data, RO Writer and Klein & Fleming Insurance. “We were very pleased with the overall event and were able to get great feedback from attendees and sponsors in order to begin planning for 2019,” DeLeon concluded. “We are looking forward to some positive changes in the upcoming year to help meet the needs of our members, their staff and our sponsors. We look forward to getting a date on the calendar in the coming weeks.” For more information on ASAAZ, visit asaaz.org.

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Day Job/Night Job with Ed Attanasio

Career Estimator Works for SF Giants in Security When George Melendez isn’t writing estimates at Regal Collision in Vallejo, CA, he is working as a security specialist for the San Francisco Giants at AT&T Park. When he works at the shop, he is estimating the costs of repairing a damaged vehicle. When he performs his role for the Major League SF Giants, he is using similar skills, he said. “When I do an estimate, I’m thinking about potential issues with the car that may not be easy to find and make sure I look for everything,” Melendez said. “When I am working for the Giants, I am also looking for issues that might occur in different parts of the stadium. In both positions, I have to be thorough and detail-oriented, so my career in the collision repair industry has helped me be a better security specialist for the team.” A lifer in the collision repair in-

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

the Giants do,” Melendez said. “I get a lot of help from everyone here, and that’s why we succeed. Regal Collision is a top shop, and the Giants are a top team with three World Series titles within the last eight years, so I guess I surround myself with champions.” Melendez’s biggest champion is his father, who introduced him to the body shop business in 1983 even though his plans were not headed in that direction initially. “I was fresh out of the George Melendez is the head estimator at Regal Collision service and wanted to be a in Vallejo, CA, and also works for the San Francisco Giants San Francisco cop, but while as a security specialist I was waiting to enter the only estimator at this busy shop, but academy, my dad asked me to come works closely with Bill Hasma, the work with him at his body shop, G company’s blueprinter. and M Auto Restoration,” he said. “I “We work well as a team, like started liking it and decided that I dustry, Melendez has been the head estimator at Regal for the past five years, but has more than 35 years of experience in the industry. He is the

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

wanted to be an estimator, so I went to V-Tech, a school in Fresno, CA, to learn the trade. I noticed that most of the other students that were there were training to be insurance adjustors, so I learned about estimating and how their business worked as well. I learned how to estimate from the front bumper to the back bumper and everything in between, and the education I got there was invaluable.” After just one year on the job, Melendez was already running the shop, a position he held for the next 12 years. “I want to thank my father for giving me a career in this industry,” he said. “I have met so many great people over the years and I would not change it for the world.” A lifelong fan of the San Francisco Giants, Melendez started attending games at the team’s original

stadium, Candlestick Park, as a youngster. “Foremost Milk used to give away tickets to the game on the sides of their milk cartons,” he said. “We

sign that said the team was hiring people for different positions. “It had always been a dream of mine to somehow work for the team, so I applied and after a few interviews, I got hired. For my first four years, I was assigned to doing security in the bleachers, dealing with the drunks and rowdy fans.” By keeping his cool and using logic while placating obnoxious and often drunk fans rooting for both teams, Melendez has been able to keep the peace in most cases, he said. Melendez poses with two of the three championship trophies “Let’s say a Dodgers fan that the Giants have won since he took the security job with is causing trouble,” he said. the team in 2005 “I will talk to him and say, would drink all of the milk fast so ‘Look, you spent a lot of money to that we could use the tickets. At that buy a ticket and come up here from time, I lived only 1.5 miles from Can- LA. Why don’t you just play nice so dlestick Park, so we attended a lot of that I don’t have to kick you out?’ games in the 1970s and saw Hall of Usually they will listen, but if they Fame players like Willie McCovey, continue, I’m not afraid to get SFPD Juan Marichal and Gaylord Perry, to escort them out of the stadium. I for example.” also tell them that if they try to come In 2005, Melendez attended a back, they’ll be arrested.” Fanfest event at the Giants’ current For the past decade, Melendez stadium, AT&T Park, where he saw a has worked in the team’s camera

room, where he watches everything that goes on in the stadium and contacts security in the stands when needed. “We have 260 cameras, and we save all of our footage because at almost every game there will be at least one civil suit filed for some reason,” he said. “We can see every seat all the time and monitor each fan at the game, so it’s a valuable tool for anticipating what could possibly happen next.” The Giants and Dodgers fans are well-known for not liking each other, but one American League team has the most confrontational fans in the major leagues, Melendez said. “We don’t play the Red Sox every year, but when we do, we really have to be on our toes,” he said. “The Boston fans are loud and they show up in force and they think they own the stadium. So we sometimes have to remind them that this is our home and if you come here, you better act right.” Over the years, the team has had to step up its security, which is how AT&T Park provides a safe environment for its fans, he said.

“When I started, we had roughly 60 guards covering 40,000 fans, and now we have more than approximately 120 guards doing the job. I used to work probably 70 events every year, but now I watch the stadium when it’s empty and cover maybe 25 games annually. I watch the stadium when it’s empty, and you would be surprised by how many people try to sneak in there or climb the fences to just walk on the field or steal things.” With definite retirement plans ahead for Melendez, he wants to work at Regal Collision until he’s 67 and work for the Giants until he’s 75. “God willing, I want to do both of these jobs for a while and hopefully see a few more World Series games during that time,” he said.

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Auto Body Attorney with Bruce Roistacher

Ask the Auto Body Attorney: August 2018 I am excited to initiate this monthly column that will keep shop owners up-to-date regarding important legal cases, rules and regulations, and new operating procedures that affect our industry. I seek to do this in plain English and answer any questions that shop owners around the country may have regarding the above. Obviously, I cannot give any legal advice and this column will consist of my own opinions regarding legal issues.

The State Farm Case That Never Seems To End The State Farm non-OEM crash parts lawsuit has taken many winding turns. A trial on an important issue is scheduled to begin on Sept. 4, 2018. During the last court appearance, the Illinois Supreme Court indicated that it will be notifying consumers who were insured by State Farm and had non-OEM crash parts installed in their vehicles between July 28, 1987 and Feb. 24, 1998 that a class- action lawsuit may affect their rights. You may recall that there was a $1.05 billion damage award in favor of approximately 4.7 million State Farm policyholders regarding those non-OEM crash parts. The class-action lawsuit involves everyone who prevailed in the Avery, et al v. State Farm $1.05 billion lawsuit, which was subsequently overturned by the Illinois Supreme Court following the election of Chief Judge Lloyd Karmeier. According to the plaintiffs, Karmeier should have recused himself because (and get this) State Farm contributed more than $4.8 million to Karmeier’s election. Of course, both State Farm and the good Judge deny any wrongdoing. However, the lawsuit is seeking new damages of $7.6 billion for the entire class. I will keep you informed as to the status of this case, which is sounding more like a television series on Netflix. Litigation Across The Country Is On 22

The Rise Suing Insurance Companies For: •

Short Payments

•

Steering

• • •

Capping Of Labor Rates Totaling

Unfair Negotiations

In New York, Nick Orso’s Body Shop of Syracuse is suing for nearly $3 million from State Farm, Allstate and Adirondack Insurance Companies. The suit alleges capping and short payments from the use of PaintEx and other labor itemization methods. The lawsuit is similar to Leifs Auto Collision Centers of Oregon wherein Leif Hansen alleges that insurance companies are practicing “triple D” tactics, i.e., deny, delay and defend. The issue is usually about labor rates and insurance companies attempting any tactics that they can get away with to save money. In many of these cases, the issue of assignment from the insured to the body shop becomes a legal issue. Therefore, it is good practice to make certain that your assignment will pass legal requirements. I will keep you abreast of the outcome of those cases and include a sample assignment that I would use in New York. (Please consult an attorney in your state.) In Missouri, a shop, i.e., collision company, filed a lawsuit under an assignment of proceeds for his customer seeking monies from an alleged short payment by GEICO. The case involved a 2006 Chevrolet Cobalt rear-ending a 2016 Ford C-Max on Oct. 21, 2017. GEICO wrote an estimate for their policyholder of $3,850.22. Unfortunately for the shop, which disassembled the car and determined the damage was $13,409.66, the initial estimate was a “joke” according to the shop’s owner.

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Bruce Roistacher has tried in excess of 100 jury trials in federal and state courts. He is a former NYC prosecutor and has previously represented insurance companies, which can be a great advantage to his automotive clients. Bruce can be reached at Bruce@AutobodyAttorney.com or by phone at 866-Law-MANN.

GEICO upped the estimate to $6,338.36, which still was short and led to the lawsuit that demanded $10,415.49, i.e., the difference from GEICO. This case reflects the issue of body shops doing total disassembly in order to accurately determine the amount of damage. Insurance companies are generally opposed to that process and apparently would rather “guess” the amount of damage. In addition, GEICO and other insurance companies routinely question the hourly labor rate charge of the body shop. I will keep you posted on that lawsuit and others that are noteworthy around the country. Big Brother May Be Knocking At Your Door OSHA recently beefed up its outreach and made a list of the fol-

lowing problem areas for shops to watch:

• Respiratory protection is the most common area of OSHA’s issuance of penalties and fines. By the way, the average fine for OSHA violations is more than $4,500 per shop.

• Hazard communication was also an area of concern. Therefore, it is a good idea for your shop to have a written program advising employees on harmful substances with which they may come in contact and, of course, supplying adequate protection—for example, a sign requiring safety glasses where your employee might perform a potentially dangerous procedure that would affect his eyes. Also, be cognizant of chemicals that are used in various wheel cleaners and other See Auto Body Attorney, Page59

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

National Associations with Chasidy Rae Sisk

ASA Hosts Road to Great Technicians Webinar With CARQUEST’s Chris Chesney On June 20, the Automotive Service Association (ASA) hosted a webinar called “The Road to Great Technicians” with Chris Chesney, senior director of customer training for the CARQUEST Technical Institute. Attendees qualified for one credit from the Automotive Management Institute. After ASA Vice President Tony Molla introduced the webinar’s presenter, Chesney recounted his collaboration with the National Automotive Service Task Force (NASTF) to identify the Road to Great Technicians. They began in March 2016 when NASTF’s Spring General Meeting focused on the topic of building a road to great technicians. Chesney was asked to explain the current state of the aftermarket training industry. He defined the current state of aftermarket training as a lack of industry standards and a structured career path, unorganized training offerings, and disjointed efforts by industry organizations. However, he also identified many good building elements. Current problems in the industry include the inability to find new talent, graduates not performing to industry standards, an inability to afford techs and the amount of time is takes to replace a technician or advisor who leaves a company because companies do not build bench strength. Chesney stressed, “You have to invest in those new technicians, but many shops cannot find someone who can perform out of the gate, so we need to focus on growing our own and building our bench strength to overcome this problem. We have a need now for the next several years. Reports indicate that we need 80,000 technicians each year, but only 25,000 are being produced.” Chesney identified the aging workforce, oncoming tidal wave of technology and lack of a structured career path as reasons for the significant needs for technicians. Focusing on the influx of technology, he explored the unseemly amount of data that is transferred within modern vehicles. “It’s not the problem of educa-

tion,” he said. “It’s our problem, and we’re going to look into that.” Chesney presented a picture of the Technician Life Cycle, which included the following seven steps: secondary shadowing, post-secondary intern, entry-level apprentice, technician, senior technician, master technician and specialist; however, he noted

The Road to Great Technicians team’s vision for the future of automotive education culminates in the idea of the Automotive Institute of Science and Technology

that this does not include possible “off ramps” on the Road to Great Technicians. Occurring after an industry professional becomes an entry-level technician, these “off ramps” include in-service continuing education and higher education, which can offer technicians a variety of paths to pursue in their careers, ranging from master technician to shop foreman to shop owner or even becoming an engineer for an OEM. In a January 2018 meeting, the education team at NASTF identified a subcommittee of industry experts tasked with creating a framework of education around the life cycle of a technician and other job roles within the industry. This framework is intended for curriculum providers to use in order to offer a career pathway that means something to the industry and is transferrable throughout the industry. The group began with the vision that they would prescribe degrees of competencies at every skill level, focused on the safety and reliability of the ground vehicle fleet. This Road to Great Technicians team consists of NASTF Chair Mark Saxonberg, Toyota’s Jill Saunders, WTI’s Rob Morrell, CTI’s Chris Chesney, NACAT’s Bill Haas, of Diag.net’s Scott Brown, WTI’s Mark Warren, NASTF’s Donny Seyfer,

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

ASE’s Trish Serratore, S/P2’s Kyle Holt, DrewTech’s Bob Augustine and Cengage’s Erin Brennan. Exploring possible solutions to the industry’s problem, this group defined 13 solution elements, starting with new and enhanced communication with parents and influencers of peripheral students, early engagement with tactile students in middle and high school, support of STEM and development of a well-articulated career path with clear opportunities for advancement and growth that students and parents can see. The industry also needs to get involved with vocational education content to ensure these programs provide the right skills to students. Chesney explained, “They’re producing the wrong technicians because we aren’t involved. We have to be involved. We need to design a curriculum for schools and employers to

ensure that, regardless of where technicians work, they are uniformly trained for the skill level. We have to provide people with the opportunity to grow throughout their careers.” The team also believes that the industry needs to provide internship experience, develop programs to help in-service technicians become mentors, and ensure that testing and certification programs are uniform and tiered to provide milestones for achievement. Employers also must find ways to provide wages and benefits that are competitive with other industries attracting the same individuals. “As technicians progress through their career, it is imperative to communicate career options to ensure they don’t leave the industry,” Chesney elaborated. “Vehicle technology has accelerated to unprecedented levels, necessitating faster and more

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thorough technician skill development to ensure public safety. To add further credibility and value to the process, NASTF is encouraging practical examinations similar to other safety-related skills as a means to ver-

tery of skill and validation of a technician’s mastery and development of skills that are recognized and transferable. A competency-based education offers a variable class structure and the ability to test out of the subject matter at different levels, enabling students to finish as they are able. The Road to Great Technicians team defined a new NASTF Technician Life Cycle that includes seven steps: apprentice technician, maintenance technician, service technician, repair technician, The Road to Great Technicians team identified a roadmap diagnostic technician, masthat includes off ramps instead of a straight path in hopes of identifying a tangible career path for those entering the ter technician, and specialist automotive industry technician. ify requisite skill level attainment. According to Chesney, “Each Currently, this is not regulated and step would require a variety of rewe cannot keep up with the advanc- quirements as far as training and exing rates of technology, but we need perience. They would also require a way to prove our skills and be pre- mastery of competencies using curpared for what’s coming, not merely riculum provided by the industry, to what is on the road right now.” include mentoring, demonstrated The current state of industry ed- skills and self-paced curriculum. Fiucation is outcome-based and not suf- nally, technicians seeking to advance ficient to serve today’s technology. would prove their skills through oral The future of education must be com- and hands-on exams.” petency-based with a focus on masContinuing the work they have

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

started, the team plans to provide the industry with a white paper by the end of the year, but they encourage the industry to comment and opine. While the team will be limited in size in order to maximize effectiveness, they encourage industry professionals to join NASTF and the NASTF Education Team. The group’s vision for the future of automotive education culminates in the idea of the Automotive Institute of Science and Technology, which would include a pathway education in a project-based environment. In ninth and 10th grades, students would sample each pathway through projects designed to highlight the different aspects and career fields before choosing a specific pathway in 11th grade to focus on in their final two years of high school. Their choices would be automotive technology as a trade, business, or engineering. While obtaining their associates degree, students would enter the discipline of their choice, working in shops to gain practical experience while simultaneously acting as mentors to younger students. Chesney concluded the webinar with a question and answer session.

Gerber Collision & Glass Opens Location in IN

The Boyd Group Inc. recently announced the July 10, 2018 opening of a collision repair center in Elkhart, IN. The center previously operated as Duncan RV Repair. This location is uniquely equipped to provide Recreational Vehicle (RV) repairs and upgrades. This repair center’s specialized features, services and technicians, many of which are certified by the Recreational Vehicle Industry Association (RVIA), attract customers from across and outside of the state. “Adding specialized repair centers like this new Elkhart location have been an effective way for us to differentiate our offering in a region, attract a dedicated customer base and enhance our brand recognition,” said Tim O’Day, president and COO of the Boyd Group.

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Deadline Approaching for CREF, 3M Hire Our Heroes Fundraiser

There is still time to support veterans and their families preparing for a career in the collision industry. The 3M Automotive Aftermarket Division, along with the Collision Repair Education Foundation, launched its 2018 fundraiser in May with two ways to participate: • 3M Hire our Heroes 500, extended through Sunday, August 12, and • Show Your Support Campaign, running through August 31.

Donations help support programs to attract and support military veterans seeking a career in the collision repair industry. Since 2013, the 3M Hire Our Heroes program has generated more than $1,065,500 that was used toward scholarships and tool grants for military veterans and their family members pursuing a career in the collision repair industry. 3M Hire Our Heroes 500 You can be one of 24 donors of $5,000 or more to the Collision Repair Education Foundation for the 3M Hire Our Heroes campaign, and you can drive a real stock car from

the NASCAR Racing Experience in Las Vegas in the 3M Hire Our Heroes 500. Twenty-four drivers will compete against their peers for the fastest lap at Las Vegas Motor Speedway. As an additional bonus, the first 10 donors who donate $8,000 or more will drive a car wrapped in their own company branding. Donations to the 3M Hire Our Heroes 500 campaign can be made through August 12, 2018.

Show Your Support Campaign All donations of $200 or more made to the Collision Repair Education Foundation, earmarked for the “3M Hire Our Heroes fund” made before August 30, 2018 will receive a full-size 3M Hire Our Heroes flag designed by Chip Foose and be entered into a drawing for the following prizes: • 1st Prize- Authentic Racing Helmet, autographed by 40 Cup drivers from the 2017 season, including Dale Earnhardt Jr. and NASCAR legend Richard Petty! • 2nd Prize- Authentic Racing Helmet, autographed by 40 Cup drivers from the 2016 season, including Carl Edwards, Tony Stewart and

Jeff Gordon! • 3rd Prize- NASCAR® Racing Experience for four people at a track near you! • 4th Prize-NASCAR® Racing Experience for four people at a track near you! • 5th Prize- NASCAR® Racing Experience for four people at a track near you! • 6th Prize- Petty’s Garage Sign Autographed by “the King”, Richard Petty! • 7th Prize- Patriotic hood designed by Ryan “Ryno” Templeton!

More information about the programs, including a link to donate online, is available at: www.collisioneducationfoundation. org/hire-our-heroes/ Industry members interested in joining the Collision Repair Education Foundation’s roster of supporters to assist high school and post-secondary collision school programs and students should contact Director of Development Brandon Eckenrode: 847.463.5245 or Brandon. Eckenrode@ed-foundation.org

WD-40 Announces Partnership With Techforce

WD-40 Company and TechForce Foundation have teamed up to support TechForce Foundation’s FutureTech Success™ initiative, an industry-wide effort to help solve the technician shortage in America, champion the vehicle technician profession, and help young people with natural tactile intelligence become aware of, exposed to, and trained for a successful career path. The FutureTech Success campaign is a three-pronged approach to closing the skills gap and connecting young people to a technical career in the transportation industry, and includes awareness building, hands-on youth programs and directs the industry’s collective resources to enhance future techs’ workforce readiness. The initiative will provide hands-on opportunities for young men and women to experience the rewards of working and creating with their hands.

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Chapman Honda Tucson

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Earnhardt Honda Avondale

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Honda of Greeley Greeley

888-903-1101 970-506-2795 Dept. Hours: M-F 7:30-7; Sat 8-4:30 parts@hondaofgreeley.com

Mile High Honda Denver

800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net LOUISIANA

Superior Honda Har vey

800-943-4227 504-368-5687

Dept. Hours: M-F 7-5:30 parts@superiorhonda.net ACURA ARIZONA

Acura of Peoria Peoria

866-347-4507 623-792-2559 Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com COLORADO

Mile High Acura Denver

800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net

Pikes Peak Acura Colorado Springs

800-456-9568 719-955-1715 Dept. Hours: M-F 7-6; Sat 8-4 joe_benson@pikespeakacura.com

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. LOUISIANA

TEXAS

Walker Honda

Bankston Honda

McDavid Honda Irving

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Lewisville

Ir ving

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Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Dept. Hours: M-F 8-6 srichardson@mcdavid.com

Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com

Fiesta Honda

Honda of San Marcos

Wholesale Parts Direct

Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com NEW MEXICO

Garcia Honda Albuquerque

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Don Carlton Honda Tulsa

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Fowler Honda Nor man

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Honda Cars of McKinney

Kelly Grimsley Honda

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Austin

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972-569-4276 972-569-4222

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877-941-6513 512-443-4300

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Fenton Honda of Ardmore

866-392-1313 512-392-1313 Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com

877-253-6229 254-699-2478

Austin

San Marcos

Dept. Hours: M-F 8-5; Sat 8-5 hondaparts@safiestahonda.com

Killeen

Rusty Wallis Honda

Odessa

Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

Russell & Smith Honda Houston

800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com

TEXAS

UTAH

Acura of Baton Rouge

Autonation Acura

David McDavid Acura

Baton Rouge

League C i t y

Plano

Salt Lake City

866-733-2861 225-756-6166

800-749-6227 713-371-4700

972-964-6044

800-234-0875 801-323-0492

Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com

Dept. Hours: M-F 7-7; Sat 8-5 CarranzaB1@autonation.com

Walker Acura

David McDavid Acura

Metairie

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Dept. Hours: M-F 7-7; Sat 8-5 mkratky@mcdavid.com

Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

Sterling McCall Acura Houston

713-596-2337 713-596-2338 Dept. Hours: M-F 7:30-7; Sat 7:30-4 jlambert@sterlingmccallacura.com

Jody Wilkinson Acura Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com

Mike Hale Acura Murray

800-292-4595 801-263-0202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com

OKLAHOMA

Don Carlton Acura of Tulsa Tu l s a

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Historical Snapshot with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

A Decade Ago, a Different National Association Sought to Replace its Executive Director 20 Years Ago in the Collision Repair Industry (August 1998) GEICO Direct, one of the country’s fastest-growing auto insurers, reached a milestone when it recently added its 3 millionth policyholder. “Our national advertising campaign is helping drivers realize the savings from dealing directly with the company and the convenience of 24-hour service, seven days a week,” said Bob Miller, a GEICO regional vice president. “The company adds more than 10,000 new drivers each week.” GEICO grew by 10 percent in 1996 and 16 percent in 1997. Its growth reached 18.9 percent during the first quarter of 1998. It ensures more than 4.5 million automobiles. – As reported in The Golden Eagle. GEICO has continued to grow faster than most other auto insurers; by last year it insured more than 24

million vehicles owned by its more than 15 million policyholders. It passed Allstate in 2013 to become the second-largest auto insurer in the U.S. It still trails State Farm by 5.3 percentage points of market share, but if its current pace of growth continues, GEICO could surpass State Farm in less than a decade.

15 Years Ago in the Collision Repair Industry (August 2003) Aftermarket parts manufacturers and CAPA are likely vexed by the newly released “Crash Parts Certification Study” published by the California Bureau of Automotive Repair (BAR). The report blasts the parts certification process, concluding that “certification has no value to the customer … If there are problems with the certified product, the certifying entity does not stand behind their own certification process.”

SCRS Welcomes Nissan as Newest Corporate Member

The Society of Collision Repair Specialists (SCRS) proudly welcomes Nissan North America as the newest automobile manufacturer to join as a supportive member of the association. “Nissan has been a noticeable advocate of information to help collision repair businesses excel,” shared SCRS Treasurer Amber Alley. “Our business has really benefited from the relationship through the rebates and promotional and social media advertising resources that we get as a certified facility. Having their support of industry initiatives through involvement in SCRS just affirms that we are aligned with an automaker who understands the importance of supporting entities that help make repair businesses more successful.” “Nissan is honored to join SCRS,” shared Mark Zoba, Nissan Certified Collision growth manager. “We’ve shared a close relationship for years, and the membership is an extension of our recognition of the good work the association does to help develop resources and disseminate information that lifts the industry up. 30

OEMs have received a great deal of support from SCRS on initiatives that focus on increasing awareness of safe and proper repairs, and it’s important to us to be an active supporter of those types of forward-thinking organizations.” “The SCRS mission to educate, inform and represent is really parallel to so many things that Nissan is working on right now,” added SCRS Chairman Kye Yeung. “The privilege is all ours, to be able to have the meaningful interactions that we do with companies like theirs and to collaborate on ways that we can uplift an industry that plays such a critical role for the consumer. We are thrilled to have Nissan’s support, and more importantly, their active engagement in conversations and resource development for the collision repair industry.” For more information about SCRS or to join as a member, please visit www.scrs.com, call toll free 1-877-841-0660 or email info@scrs.com. To become Nissan Certified, visit getnissancertified.com.

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Legislation enacted in 2001 authorized $125,000 to be spent by the BAR, a sub-agency of the California Department of Consumer Affairs, to study the best process for certifying crash parts and to designate the agency to bear responsibility for overseeing crash parts certification. For two and a half years, the BAR held meetings with repairers, insurers, OEMs and aftermarket parts certifiers. It sent out surveys to auto body repair shops and conducted field tests on crash parts. In the end, the BAR reached several conclusions, most notably: • Elimination of non-certified aftermarket crash parts is not a viable option. Outlawing non-certified aftermarket parts (as suggested by CAPA) would make the market less competitive and leave a shortage of such parts.

• Certification does not protect consumers from poor quality parts … If the certifying entity warranted their certified parts, it would provide “added value” to the certified part and protect consumers against poor quality parts.

The study compared the CAPA Quality Seal with the well-known Good Housekeeping Seal of Approval. The Good Housekeeping seal carried a limited warranty stating that if any product bearing the seal proves to be defective within two years of the date of purchase, the product will be replaced or the purchase price refunded. “If CAPA or Global Validators feel their certification parts fit the criteria of their certification program, why don’t they stand behind their certified parts?” the BAR report asks. – As reported in Autobody News.

shop owner Patty McConnell. “So sad to see one of our best advocates going over to the ‘other side,’” McConnell said. “Our industry cannot compete with insurers in terms of pay plans, retirement plans and other benefits. Another sad day for this industry.” SCRS Chairman Gary Wano said Risley told the SCRS board his decision to accept the job was not an easy one but “would be best for him and his family.” Risley, who lives in the Chicago area not far from Allstate’s headquarters, is the second high-profile member of the industry to join Allstate this year, following Chad Sulkala, an SCRS and In 2008, Oklahoma shop owner Gary Wano served on the I-CAR board member who board of the Society of Collision Repair Specialists (SCRS) as left his family’s collision reit sought a new executive director following the resignation pair business in Boston for a of Dan Risley position at Allstate’s home Some critics of the association office. – As reported in CRASH Netsay they were not surprised to learn that Risley accepted a position with work (www.CrashNetwork.com), Allstate Insurance. But most inter- August 19, 2008. SCRS later in 2008 viewed about the announcement hired Aaron Schulenburg as its new echoed the comments of Oregon executive director, a position he still 10 Years Ago in the Collision Repair Industry (August 2008) The Society of Collision Repair Specialists (SCRS) has issued a call for applicants following the resignation last week of its executive director, Dan Risley, after almost eight years with SCRS.

holds. Risley spent five years as a project manager with Allstate, then in 2013 joined the Automotive Service Association as executive director. He left ASA this summer to take a position with CCC Information Services. Sulkala continues to work for Allstate. 5 Years Ago in the Collision Repair Industry (August 2013) In a 20-page report released last week, the Center for American Progress (CAP) says the alleged conflict of interest by an Illinois Supreme Court justice who voted in 2005 to overturn the $1.18 billion non-OEM parts verdict against State Farm raises troubling issues about the legitimacy of the judicial process. State Farm is accused in a lawsuit filed in 2011 of giving millions of dollars to third parties who then gave that money to the election campaign of Justice Lloyd Karmeier. Following his election to the Supreme Court, Karmeier was among the justices who voted to overturn the verdict against State Farm in a class action lawsuit (Avery v. State Farm) over the insurers’ use of non-OEM parts.

“The facts surrounding the Avery v. State Farm case prove that unlimited direct contributions to candidates have the potential to create conflicts of interest that cause the public to doubt the integrity of judges,” the CAP report concludes. “The current Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit can unearth the truth about State Farm’s actions.” Karmeier stands for re-election next year, and the plaintiffs in the current RICO lawsuit have told the judge in the case that it is their “stated intention” to question Karmeier under oath about the allegations in a deposition. – As reported in CRASH Network (www.CrashNetwork.com), August 19, 2013. The trial in the RICO case involving State Farm’s alleged role in Karmeier’s election is slated to begin in early September.

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Car Prices Would Soar Under Trump’s Latest Tariff Plan by Rick Newman, Yahoo! Finance

President Trump thinks a new tax on imported cars will boost American auto production and bring back thousands of jobs. He’s about the only one. As the Trump administration readies a report on imported cars that could be the pretext for new tariffs, economists and industry officials warn of soaring costs for car buyers, a drop in overall sales and a net loss of jobs. Trump said recently that if trading partners don’t agree to his demands, “I’m going to tax their cars coming into America, and that’s the big one.” Big blunder might be more likely. Trump’s idea is to impose a 20 percent tariff on imported cars to encourage more domestic auto production. Imports would become more expensive, so consumers, in theory, would buy more domestic models, and more automakers would build cars in America to escape the tariffs. In reality, the most certain outcome is that prices would shoot up as soon as the tariffs went into effect. Americans buy about 8 million imported cars each year, and a 20 percent tariff would add $5,000 to the cost of a $25,000 car. Manufacturers might not pass all of that onto consumers, but the cost of an import would still rise by more than $4,000, on average, according to the National Taxpayers Union. Many popular models would suddenly be more expensive. Here are a few examples, with the current starting price followed by the higher price including the entire 20 percent tariff: Cars made in America would suddenly have a big price advantage. But those prices would probably rise as well because the competition would now be more expensive. The National Taxpayers Union estimates

the price of an American-made car would swell by $1,262. With prices higher across the board, Americans would buy fewer cars. Taxing Car Parts This is a very simple analysis based solely on where a car is assembled. But Trump could go further and tax cars based on the amount of Ameri-

can-made content in the vehicle. This more complicated formula would impose some degree of tariff on virtually every vehicle sold in America, because just about every car includes some foreign components. The Ford (F) F-150 pickup, for instance, is one of the most “American” cars on the market—but its U.S./Canadian parts content is just 65 percent. (Manufacturers are required to disclose U.S. and Canadian content combined, but not to break out each country.) So Trump could put a 20 percent import tariff on 35 percent of the value of an F150. On an entry-level F-150 costing $27,705, that would be an added tax of $1,939. In the country-of-origin disclosures automakers are required to file with the government, a few models consist of more than 70 percent U.S./Canadian content. None is above 80 percent. Trump’s whole plan, of course, is to boost U.S. manufacturing employment. But a variety of studies show tariffs on auto imports would do the opposite. Why? Because higher

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prices would reduce overall car sales and automakers would have to downsize. The Peterson Institute for International Economics estimates that auto tariffs would kill 195,000 auto industry jobs. That would rise to 624,000 lost jobs if other countries retaliate with similar tariffs, which is likely. (The PIIE analysis is based on a 25 percent tariff on imported autos and parts, whereas Trump has said he’s considering a slightly lower 20 percent tariff.) General Motors (GM), the biggest domestic automaker, said in a recent regulatory filing that tariffs on imports would hurt, not help, the company and the broader industry. “The penalties we could incur from tariffs and increased costs could lead to negative consequences for our company and U.S. economic security,” the automaker said. GM added that “some of the vehicles that will be hardest hit by tariff-driven

price increases—in the thousands of dollars—are often purchased by customers who can least afford to absorb a higher vehicle price point.” Used vehicle prices would rise as well, since the overall supply of cars in the used market would decline, pushing prices up. On their own, tariffs on auto imports probably wouldn’t cause a recession. But they’d weaken a key industry and sap disposable income, leaving the economy more vulnerable to a downturn. Is Trump serious? Would he really damage the auto industry in order to save it? Nobody knows, but Trump wasn’t bluffing about the tariffs he imposed on steel and aluminum imports earlier this year or those going into effect now on $50 billion worth of imports from China. A saggy stock market, depressed by investors worried about trade wars, hasn’t changed his mind either. If you’re thinking of buying a new car, now may be the moment. We thank Yahoo! Finance for reprint permission.

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Shop Management

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

Reward, Motivate Your Employees Without Breaking the Bank I interviewed a body shop manager a few years ago who told me that he motivated his people through fear. Everyone who worked there was scared of the guy and as a result, productivity was high, but most of his crew eventually left after 1–2 years. I asked him why he managed his people this way, and he said that he tried be a mentor and a friend to his employees for a long time, but most of them took advantage of the situation and his business suffered. He realized that when people fear for their jobs, they will work harder with better results. He admitted it created a lousy environment, but at least he was getting his money’s worth out of everyone, he reasoned. Dr. Nancy Friedman works with huge automotive corporations to help them with their morale and often focuses on incentive programs that are designed to motivate and retain top employees. She has seen every form of employee management out there, so she knows what works and what does not. “Motivating through fear is normally from the old, old school and it seldom works,” she said. “It also creates a very unpleasant atmosphere and turnover. There are much better ways to get folks to do what you need done.” With a shortage of qualified people in this industry, managers can’t act like Attila the Hun anymore. A good tech or estimator is worth its weight in gold, so keeping your best people is more important than ever. Rewarding your employees for their outstanding performance is one way to keep your crew happy and engaged, but many managers think it will cost too much or require too much time. But in reality, you can reward your employees for their good work without it costing you an arm and a leg. So, here are some ways to motivate your employees that will cost you very little while creating a positive and productive working environment. Based on experience, happy employees don’t send out resumes and are less likely to get poached by

your competitors.

Make Work Fun Again! Why does everyone have to be so serious all the time? It’s easier to introduce some fun into your crew’s daily activities and lighten up the mood. Some shops encourage their employees to come into work early by offering them special treats and reward zero absenteeism, while others include games at lunch or during breaks to alleviate fatigue and encourage interaction within the crew. Dr. Friedman believes that this approach can work, but in moderation. “There’s an old saying: ‘Find a job you love, and you’ll never work a day in your life,’” Dr. Friedman said. “So no amount of games, activities, etc. can replace loving what you do, because if you do what you love, that’s the real fun. I have seen these incentives work at some shops, but in the end, the motivation needs to come from your employees themselves.” Keep Everything Positive Some shop managers call their employees out on the carpet whenever they do something wrong, but that won’t build morale. Everyone wants to do a good job, so when they fail, they don’t want to be embarrassed in front of their fellow employees. So always follow the classic management rule of ‘praise in public and criticize in private’. Conversely, if someone goes the extra mile to do an outstanding job, praise them in front of the crew and give them the kudos they deserve. “Even a good technician or estimator will make a mistake now and then, so don’t be too critical and overbearing when it happens,” Dr. Friedman said. “Stay positive, but don’t coddle them and communicate what you want to say behind closed doors if at all possible.” Talk to Your People Some bosses only communicate with their employees when they’re talking

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shop or assigning tasks. Getting to know your people is a key way to connect with them and retain them for the long run. Casual conversation and learning about your employees will foster stronger bonds and enable them to feel like they are members of your team. If you keep it impersonal, even your top employees can start to feel isolated and eventually look elsewhere for work. “Some shop managers think they don’t have enough time to talk to their employees, but it’s an important part of creating a positive climate, so finding the time is essential,” Dr. Friedman said. “Being nice to your people isn’t difficult, but you also have to know when to be direct, and that way you’ll gain their respect and keep them onboard.” Create a Wall of Fame

I have been to a few shops where they have photos of their employees on the wall in the reception area honoring them for their best work and other achievements, such as passing a training program. People appreciate being appreciated, and it’s something easy to do. Your customers can also then see that you value their work, which creates a sense of security in the consumers’ eyes. “This is a great idea because everyone wants credit for doing a good job,” Dr. Friedman said. “It might also be nice to let employees put up notes, emails and other things they get from happy customers. They are the ‘real’ fans. It makes employees feel good as well, seeing the accolades they created.” Special Days Off It may not sound like much, but allowing your employees to leave early

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on birthdays and anniversaries is a sure way to win hearts and thereby increase productivity. Also, many shop managers give their people “mental health” days off and will accommodate things such as doctor’s appointments, visits to the DMV and other tasks that require time off. Another solution that works at many shops is offering flexible hours, as long as it does not negatively impact their production. Some employees will take advantage of this system, so managers need to monitor this approach carefully. “Some shops have reported that closing an hour early is as important as a day off,” Dr. Friedman said. “That’s an easy one and your employees will appreciate it, especially if they have a long commute.” Keep Your Office Door Open Give your employees the confidence to walk up to you whenever they have a concern, and be as transparent as you can in this regard. Encourage them to come up with new ideas and solutions, and let the younger employees pitch to the crew without getting negative feedback from your veteran

employees. Some shops schedule semi-regular brainstorming sessions where your people can throw around ideas anonymously so that no one gets judged or marginalized for their enthusiasm. “This does not mean that you have to literally keep your office door open,” Dr. Friedman said. “But letting employees know that you will always have time for them is important. Not rushing them when they stop to talk is also key. In many cases, the best ideas will come from your employees during these open-door conversations.” You don’t always have to increase salaries or pass out hefty bonuses every time your crew is in the need for some motivation to work hard. Communicate with them, understand their cause for worry, add in some fun, make the work environment light and healthy, and you will retain your employees longer while improving their productivity.

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RI General Assembly Passes Auto Body Shop Bill by Staff, Insurance Journal

The Rhode Island General Assembly has passed H-8013/S-2679, which aims to effectively ban the use of aftermarket parts in the repair of vehicles. The bill is now awaiting Rhode Island Governor Gina Raimondo’s action. If signed, the legislation provides that insurance companies cannot mandate the use of aftermarket parts without the owner’s consent on motor vehicles less than 48 months beyond the manufacture date. Aftermarket parts are motor vehicle body replacement parts that are not original equipment manufacturer parts, or parts produced by the manufacturer of the motor vehicle being repaired, according to the proposed legislation. The legislation has faced opposition from some insurers, however, with The Property Casualty Insurers Association of America (PCI) encouraging Raimondo to veto the bill over concerns it could create pressure to raise auto insurance premiums and raise auto repair costs. “By passing extremely narrow interest legislation to ban the use of aftermarket parts, the General As-

sembly has unfortunately voted to raise auto repair costs for Rhode Island drivers who, as a result, could end up paying the highest auto insurance premiums in the U.S.,” said Frank O’Brien, vice president of state government relations for PCI, in a PCI press release. Since 2003, Rhode Island has passed several laws regarding auto body shops in Rhode Island, according to the press release. PCI stated in the release that it believes that overall, these laws have increased the amount paid for auto body repairs and have limited the role of auto insurers in the claims process, as well as reduced insurers’ ability to provide checks and balances on behalf of their customers. “Saturday’s vote benefits a small group of auto body shop owners at the expense of Rhode Island’s 700,000 licensed drivers,” said O’Brien in the release. “The more the auto body shop owners pad their profits... the greater the pressure to raise auto insurance premiums.” Source: The Property Casualty Insurers Association of America We thank Insurance Journal for reprint permission.

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Tips for Busy Body Shops with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

How To Increase CSI, Encourage Repeat Business and Differentiate Your Shop During a recent webinar, Nick Schoolcraft explored the three most common causes behind unfavorable customer interactions at collision repair facilities. He also shared tactics and tools to help attendees overcome these obstacles to enhance their businesses. With more than 15 years of customer experience and marketing consulting, Schoolcraft, president of Phoenix Solutions Group, said that by having a deeper understanding of your shops customer’s needs, above what is constituted as standard industry CSI, a shop can begin to develop a better overall experience for its customer. He said detailed research and a customer-first mindset should be the first thing a shop does when looking to improve satisfaction, increase sales and differentiate itself from the competition. “Shops that focus on the customer and exhibit empathy see an increase in repeat rates up to 30 percent,” said Schoolcraft during Dave Luehr’s Elite Body Shop Solutions webinar held in May, titled “What is Driving Poor Collision Experiences.” “Seventy percent of repeat customers choose a shop based on how they feel they were treated in the past; however, what’s more interesting is that nearly 65 percent of collision customers are lost because of indifference from the repair facility.” Eight years ago, Schoolcraft was hired by Accenture, a global consulting company, where he worked with major automotive brands, insurance companies and multinational brands to help them develop better customer and employee experiences. In 2017, he joined his father’s company, Phoenix Solutions Group, a marketing firm dedicated exclusively to the collision repair industry. Founded in 1988 by Steve Schoolcraft, the company focuses on developing data-driven marketing and customer experience strategies that help auto body shops grow collision sales while increasing their customer and employee satisfaction. The insights he shared during the webinar were based on research

gathered from 30 years of PSG research as well as his work at Accenture. “Most in the industry would agree that customer expectations are changing at a rapid pace,” he said. “Customer expectations have become less ‘siloed’ in that they no longer differentiate between you and the retail store down the street.” He said this is why it’s imperative that collision facilities focus on enhancing their overall experience, from accident to post-repair.

Q: A:

Why do body shops have these issues?

It’s important to understand that customers are stressed out when they are involved in an accident. When people are in stressful situations, they tend to glom on to experiences that are very comfortable and familiar to them while seeking out people they trust for advice. This is incredibly important because we’re facing an era where you aren’t just measured against your competition anymore; instead, you’re stacked up against brands that might not even be seen as a competitor. It has been shown that 87 percent of consumers measure all brands based on the interactions they have with companies like Amazon, Netflix and Starbucks. Therefore, it’s important to pay close attention to how these brands interact with their customers and make sure that every interaction you have mirrors those of these customer experience leaders, which are typically simple, effective and satisfying. A great example of how this is starting to impact our industry is with manufacturers looking to take control of the entire vehicle experience by introducing things like subscription leasing. Cadillac, Porsche, Mercedes and even Lincoln are using this subscription model to provide customers with flexibility in the type of vehicles they drive, simplified interactions by providing complete insurance coverage and other benefits

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like concierge services. Most importantly, they provide a personalized experience through a deep understanding of their customers’ needs. That is why it’s more critical today than ever before to truly understand your customers’ needs. The concern for a lot of people is how the collision industry measures customer interactions and satisfaction, which today is incomplete. Standard industry benchmarks don’t reveal how well you deliver on the customer’s expectations of the entire repair experience, which are more driven by emotion than simply your shop’s ability to meet the delivery date. Most shops are missing out on vital insights like how well the shop sets expectations, what would have improved the experience or why the customer chose them in the first place. Not having these details limits your shop’s ability to differentiate itself, resulting in stagnant sales

growth. In a survey conducted by Phoenix Solutions Group, it showed that 67 percent of customers mention average experiences as a reason for not returning to a shop; however, only one out of 26 customers complain about the experience, which inflates everyone’s CSI. This is why our research methods take a much more direct approach at answering the question: What does exceptional look like, and how do certain elements throughout the repair impact the overall perception? Having a really strong understanding of how everyone in your organization is interacting with customers, as well as where the experience falls short, will deliver better overall value for your shop—all of which are left out of today’s standard industry CSI. Our voice of customer research provides shops with a 360-degree

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view of how their customer feels about the overall experience and why they chose the shop, ultimately enabling us to align sales strategies that fit the customer needs better— resulting in greater customer retention and increased sales.

Q: A:

How can a collision repair business really grow?

It starts with understanding if your shop is exceptional or average. Do you know what is needed over and above the general expectations of the repair experience? It should start with understanding why people choose your shop, then developing your sales tactics and marketing to match that need. Align your shop’s value proposition with what the customer wants and accept that it isn’t just quality or a DRP that sells. Shops should recognize that marketing your shop should begin the moment a customer picks up their repaired vehicle. Sadly, the industry’s answer to this is to elicit online reviews followed by generic emails two or three months after the repair. It needs to be much more than that, and it should be centered around delivering a personalized message that is unique. Consumers live in an incredibly loud and fragmented world full of advertising messages. They receive thousands of messages every day from advertisers, mostly through digital platforms. Only about 2 percent of consumers view or take action on those. Think about how much smaller that percentage is for a niche product like collision repair. However, it’s not all doom and gloom. The messages that tend to rise to the top are the ones that are personalized, unique and relevant to the customer. The reason for this is because consumers are seeking out companies that connect with them on a deeper level than just trying to get them to buy something. The returns and benefits of personalized marketing tactics (letters, relevant social media posts, community events, etc.) typically outweigh the benefits of standard marketing (email, SEO, text messages, etc.) 10 to 1. This is because personalized marketing allows you to address what is often called the “emotional motivators” of the purchase decision. These motivators 40

are typically questions like: How simple will this shop make it for me? Will I be satisfied working with this shop versus the shop next door? Do they seem to care? Your customer wants to find somebody they can trust and who they believe has their best interests at heart. Again, this is an emotional event and not something they do often. Finding comfort is a critical part of their purchase decision. This is further validated by our research, which shows that when you align with your customers’ emotional motivators, you can remove the weight the customer puts on questions like ‘What happens if you are not on my insurance’s preferred list?’ or ‘Why is your estimate higher than the estimate from the other shop?’ The reason why connecting the emotional motivators is so critical is because everybody wants to buy from people they like. Understanding these motivators requires a shop to take a different approach than relying on standard industry CSI. Unfortunately, shops focus solely on things like online reviews to help solve this problem. What should be considered with this strategy is that online reviews become obsolete when everyone in the market has four stars or higher. While online reviews do play a part in the collision purchase journey, our research shows that less than 1 percent of collision customers use online reviews solely as the reason to choose a shop. Generally, we have found that people will consult a trusted resource first, then do research online and use Facebook or online reviews as a validating factor for their decision. This purchase behavior is why understanding what customers desire from the experience is so critical. These insights allow you to apply logic across your initiatives to make sure you are differentiating your shop and not wasting precious marketing dollars on perceived silver bullets.

What are the top customer issues in regard to the repair experience?

engaged employees.

How to break the “transactional” mindset:

Customers feel processed. Think about what a customer goes through after an accident; they talk to a police officer, then the insurance company and finally end up at a shop to get an estimate—all of which have their own processes. Body shops can be the biggest offenders of the process mindset, mostly because shop processes are typically defined by an insurance partner, not by the shop itself. These requirements become increasingly apparent with the lack of continuity shops exhibit with customers, followed by their overall poor communication scores. This alone puts shops in a tough situation of developing a deeper bond with the customer. The goal should always be to find a way to develop a seamless interaction throughout all four parts of the collision experience: collision, estimate, repair, and post-repair. When you do so, you can drive incremental gains for your business and be seen

more as a trusted partner rather than a service vendor. Some tactics that we offer our customers to overcome process are:

1) Make it easy for customers: Connect as frequently as possible to keep customers updated; help them understand the expectations up front and provide service options, such as better hours. Consider implementing technology to help triage their situation before they arrive at your shop. 2) Give customers control: Educate customers about what is about to occur throughout the process and validate their preferred method of communication. We often suggest incorporating visuals to help customers fully digest the repair experience. 3) Personalize the experience whenever possible: Ensure team members know what is going on with the repair; simulate other personal experiences the customer might have such as the checkin/check-out process at a hotel and

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From our research, there are three: customers feel their interactions are transactional, the delivery experience is rushed or transaction-focused and overall poor customer service driven by poorly

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understand their needs and incorporate them into every conversation you have with them. 4) Never automate support: Technology should complement human interaction, NOT replace it. It has been shown that 83 percent of consumers in the U.S. prefer dealing with a human when going through an emotional event. Automated support requires a deeper understanding of the customer to be effective. 5) Communicate with care: Be customer-first and communicate issues quickly; focus on the outcome, not the problem; be consistent and show compassion. Customers will be more emphatic toward the approach than the resolution if you communicate throughout the entire experience.

How to improve the delivery experience The second issue we often see is a poor delivery experience, which in PSG’s philosophy is the most critical part after the sale of the job because it is the last chance you have to make an impression on the customer. The delivery of the repaired vehicle is the shop’s last chance to solidify a relationship with them and/or to redeem yourself for any issues that happened during the experience. Unfortunately, most shops believe they have this locked down. What we have found is that the opposite is true. In a recent study of customers who had a repair six months prior, only 20 percent could remember the shop’s name. While that stat is scary, it further validates that most shops fall into the ‘average’ category and haven’t done anything to really differentiate themselves. This research is why we believe the delivery process is one of the most critical parts of the repair experience. Typically, a customer is greeted, the shop reviews the paperwork, asks for the deductible and after all of that they ask the customer if they want to see the repaired vehicle. The missing piece is shops don’t put the customer into a familiar experience that allows them to feel more at ease. Think about how you purchase most items; do you typically pay before you see the goods? Would you pay for a meal 42

before it was served? Your customer mindset is no different. Ignoring this is what can lead to low engagement and poor repeat and referral business. What PSG suggests is to resell the vehicle first and then finalize the transaction. Phoenix Solutions Groups’ tips for a better delivery experience:

1) Prepare: Be ready for the customer. Always quality-check the car to ensure it is clean, ensure staff is available and familiarize yourself with the customer file.

2) Greet and review job: Don’t make customers wait for more than five minutes. The first thing should always be to walk them out to their vehicle and resell the job with enthusiasm while pointing out your craftsmanship! 3) Review paperwork and transact: Go over the warranty coverage and any additional paperwork before collecting the funds; ask if they have questions; thank them for their business and explain how the survey information will help your shop become better. 4) Stay in touch: Rather than relying on online reviews and digital communication, the more personalized the interaction is, the more connected the customers feel.

With 42 percent of customers returning to a shop based on the impact left on them, a better delivery process will not only help a customer remember your shop—it will also help with repeat and referral business. This should always be the focus of any shop because it is incredibly expensive to acquire new customers— five to 12 times more than it does to retain existing customers.

How to enhance your customer service through better employee engagement:

Money is a critical component to employment. Everyone works to get paid, but it’s not what drives great employee engagement. A recent study showed that appreciation for the work people do and good relationships with their colleagues are

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

critical elements to delivering great employee engagement. What this means is that it comes down to the shops’ culture. Culture is a defining factor of great organizations that deliver great customer experiences. According to John Hopkins University in 2015, 95 percent of employees value culture over salary. What’s important to note is there’s not just one thing that creates culture—it’s many things working together. You want to have people working with you who understand the industry, but also have a clear view of how their job affects the business as a whole. We’ve found that shops that centralize the employee with the customer will see higher productivity, higher profitability, an increase in collision sales and higher referral rates. We’ve also seen better employee engagement leading to better business metrics— like 17 percent higher productivity. Phoenix Solutions Groups’ tips to enhance your employee experience:

1) Empower your people: Ensure employees feel essential to what they are doing every day and inspire

them; employees need to feel trusted so they can come to you with questions and feedback. We work with shops to redefine their mission statements to incorporate the employee’s voice, as well as utilize customer comments and research to help empower the employee base. 2) Teach the “why,” not the how: Provide your team tools and solutions to help solve the issues they face by understanding what is occurring in your shop; invest in consistent coaching and training and lead rather than mandating actions to achieve a better outcome. Using an employee engagement survey like the one we use with our customers helps determine the needs of your employees, which is critical in developing a better strategy and training curriculum. 3) Reward and recognize regularity: Acknowledge employee contributions and utilize customer feedback to appreciate good work; ensure your team is unified to help them thrive; provide opportunities for fun during and after work; and

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support staff with tools and resources. Remember, recognition and rewards do not always have to be money—people like to be treated fairly and recognized by their peers.

4) Create a transparent world where you foster growth, collaboration and trust: Keep staff informed about the business and inspire collaboration; ensure they are aware of how their role aligns with goals of a body shop; and encourage them to be transparent to customers during the repair process. The more the customers are informed and the employees are aware of what’s happening, the more encouraged they are going to feel in their interactions with customers. This strategy can be easily implemented through the development of a more robust surveying and research solution.

How shops can make this repeatable and part of their organizations

It starts with understanding your customers and how your different segments are looking at your

business. Once that is done, you can then better address training challenges that are critically important to your shop, which will help you drive a seamless experience. Once you find a way to incorporate that into your daily operations, there is tremendous business value to be unlocked. You’ll drive greater retention, increase advocacy and most importantly you’ll enrich the lives of your employees because they are indeed the foundation of any successful business. The more you can improve their lives, the better your overall metrics will be—top line and bottom line. To watch a replay of this webinar, visit https://attendee.gotowebinar.com/ register/7978064457470349825.

For more information about Elite Body Shop Solutions and to sign up for the next monthly webinar, email info@elitebodyshopsolutions.com. For more information about Phoenix Solutions Group, contact Schoolcraft at 847-764-8079 or visit www.phoenix solutionsgroup.net/grow-sales.php

Mazda Recalls 270,000 Vehicles With Airbag Explosion Risk by Bailey Gallion, Springfield News-Sun

Mazda is recalling airbags in several models that have the potential to explode, causing serious injury to drivers and passengers.

Materials in the airbags degrade with exposure to humidity and heat and can explode with metal shrapnel in the event of a crash. The recall affects nearly 270,000 vehicles, includ-

Don’t Miss the Weekly Industry NEWS Your Shop Needs.

ing certain 2003–2008 Mazda6, 2006–2007 Mazdaspeed6 and 2004 MPV vehicles nationwide and 2005– 2006 MPV models in certain states, according to the Associated Press. Affected customers will be notified by mail. Customers can also check for recalls on the National Highway Traffic Safety Administration website using their vehicle identification number. Twenty-three deaths and more than 300 injuries worldwide are linked to Takata airbags, according to the National Highway Safety Administration. About 37 million vehicles are equipped with the defective airbags. We thank Springfield NewsSun for reprint permission.

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

In Reverse with Gary Ledoux

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

The 1940s – Part 2 – New Products, Higher Speeds By 1943, WWII was in full swing. There were no new cars; tires and gasoline were rationed, and the American public wasn’t driving very far ... or bothering to renew their auto insurance. Many drivers felt there was no point if you couldn’t drive. Sales of auto insurance policies were down 11 percent compared to the prior year for all mutual insurance companies, except State Farm—which was up considerably. In early 1939, State Farm Founder and President George Mecherle launched a sales campaign called A Million or More In ’44, an all-out initiative to have a million or more auto insurance policies in force by the first quarter of 1944. At the outset of the program, State Farm had 476,638 policies in force; it had taken the company 16 years to get there. Now, only five years after the start of the program, and despite a raging world war, State Farm had added another 524,001 polices for a total of 1,000,639. State Farm was now the single largest insurer of automobiles in the U.S. George Mecherle noted that people had come to appreciate the value of auto insurance. Driven by Mecherle, State Farm agents were very aggressive. Some early collision industryrelated companies were born during this time. Mill Supply Company of Cleveland, OH, provider of replacement body panels, was founded in 1942, and the Schofield Manufacturing Company was founded in 1943. Both manufactured steel replacement panels for popular model cars. These were designed primarily as rust replacements, but no doubt were used in some collision work. The Marson Company, best known for body fillers, was founded in 1948. Steck Manufacturing, known for its specialty body repair tools, was founded in 1949. New products were introduced as well. In 1946, DuPont introduced Duco Metalli-Chrome paint, a luminescent lacquer that seemed to

change color depending how light reflected off of it. They were only available in darker colors, however, such as dark gunmetal gray or dark brown. In 1948, Reynolds Aluminum introduced a metallic flake for use in automotive finishes. By the early 1950s, Reynolds, Alcoa and others had developed improved metallic flakes for automotive paint. This, together with improved paint resins, started the industry on a road to a vast array of colors and color effect. True body shops began to emerge after the war. Some shops began specializing in low-priced to medium-priced paint jobs and started attracting a lot of business—so much so that in some shops, two painters worked on the same car at the same time to increase the shop’s volume. A mid-priced paint job in the mid1940s was $49.95. Materials cost $8, and two painters working together could prep, paint and finish eight cars per day, or one each working hour. In 1947, the Equipment and Tool Institute (ETI) was founded as a nonprofit automotive industry trade group to help promote the proper use and upgrade of tools used in the automotive repair trade. The first PBE-only jobbers began to appear to service the burgeoning collision repair business. Prior to this time, the collision repair trade had been served by jobbers who typically served the mechanical repair market as a primary customer. During the war, American citizens had to observe 35 MPH as the “Victory Speed” to save gasoline for the war effort. After the war, the “Victory Speed” was no longer in force, and people “drove with wild abandon” across America. It became a free-for-all on America’s highways, and nobody knew this better than Mecherle. In 1944, during the height of the war, State Farm processed 293,045 loss claims for auto insurance. In 1946, State Farm processed 648,609 claims! State Farm had to immediately hire more help and

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

more office space. But it wasn’t easy. The war effort had called 951 State Farm employees to service, many of them key managers and trainers. It took until the end of 1948 to “right the ship” and bring things back to normal—but it would be a new “normal.” In the prior two years, State Farm had seen some of the worst losses ever, draining 40 percent of the reserve funds used to pay claims. For a few months in 1946, State Farm was hemorrhaging money at the rate of $1 million per month! Moving forward, the cost of claims had to be mitigated—but how? Soon, a plan developed. State Farm would no longer insure a car more than 8 years old. They would no longer insure anyone under 21 (unless the family already had a SF policy), nor would they insure anyone over 70 years of age. State Farm also took a different tact in their advertis-

ing. To educate consumers about the huge cost of claim losses, starting in 1946, State Farm’s message was to drive carefully, reduce speed and avoid accidents. They said that State Farm auto insurance was one of the best bargains available, but it would only stay that way if the accident rate stopped rising. The company began cooperating with the National Safety Council and International Association of Police Chiefs in running safety campaigns. Then in 1949, after 27 years in operation and becoming the largest insurer of automobiles in the nation, State Farm Insurance decided it was time to have its own network of fulltime agents at the local level that would handle policy sales as well as claims. Up to this point, everyone had been part-time or handled State Farm policies as a side job, not as a See The 1940s – Part 2, Page 51

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Body Shop Owner Designs Quality Control App for Collision Repair Industry by Stacey Phillips

On a typical day in a busy body shop, it’s not unusual for an estimator to write multiple complicated and lengthy repair estimates. More often than not, these are followed up with a supplement or two. Bob Caulfield experienced this first-hand while being employed as a writer at one of his brother David’s collision repair locations. Bob said that every line of an estimate requires a quality check prior to the final product handed to the customer. After working in the industry over the last decade, Bob found that the process to qualitychecking each repair line, one by one, had become quite challenging given the day-to-day interruptions, chasing the latest estimate revisions and lack of a proper qc pallet to work from. About three years ago, David Caulfield began working on a solution to this challenge. The goal was to take a complicated procedure and simplify it for the collision repair industry. The result was myQCiQ.com, which was introduced in late 2016 and designed to provide a standardized quality control process that any employee could use and that would work for every vehicle. The brothers refer to it as “a new approach to quality control.” “In the past, many industries lacked the technology solutions to verify and record the existence and quality of the products and services they sell,” said Bob, “the QC guy” and business development manager for myQCiQ.com. myQCiQ.com gathers the most current repair data from a body shop’s management system and categorizes the damage into the app. Bob said the first release of the app is designed for a post-repair audit and allows body shops to quickly view, verify, track and grade the quality of the products and services sold, line by line. “We are improving quality one look at a time,” he said. The app is targeted to any person in the shop who participates in the quality inspection of a vehicle. That might be the shop owner, writer, manager, technicians or other 46

quality control personnel. Bob said that customer care personnel are quickly adapting to the app as well. “We are providing an affordable, simple and easy-to-use quality control tool that standardizes the qc

information, shops can quickly determine where the failures are occurring in the shop and then work to resolve those issues. “If you don’t keep track of inferior and below-standard workman-

process, so every car is treated the same when it comes to checking for quality,” explained Bob. “I really believe it’s the modern way to qc a car,” said David, CEO and founder of the company. “myQCiQ.com was invented so we can actually have the repair order data come right from the management system into an application that shows you every single line on the estimate and breaks it down by the area of impact.” Bob said the myQCIQ.com user can subjectively mark each item as pass or fail. If he or she isn’t satisfied with the quality of the product or service provided and it potentially needs rework, it is deemed as “failed.” The app then sends a message to the technician or the responsible party in the shop to say why it failed, along with a photo. “Once everything has passed, the information can be forwarded to the insurance company and/or customer showing that to the best of your knowledge, these items are satisfactory to company standards and you’re signing off, so the vehicle can hit the streets safely and correctly,” said David. “The app holds the shop accountable and encourages people to think twice about passing a line item that may be questionable.” Bob said that by gathering this

ship, you don’t learn from them and you don’t realize the impact it’s having on your operation,” said Bob. “It really saves a lot of time and money

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

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for a shop.” Not only does the app help reduce cycle time, but Bob said it also improves quality throughout the repair facility and decreases the amount of materials and associated costs that are expended. The app offers detailed reporting, including the QC Scorecard, which gives a summary of the postrepair audit. Many shops utilize myQCiQ.com’s Customer Quality Certificate as a cover sheet with the final bill. “It’s a simple way to prove the product and services charged for were quality-checked and verified,” said Bob. “The whole point of this product is to make sure the shop verifies the existence and quality for the products and services they sell the customer and ultimately, the insurance company,” said David. In many cases, there is a quality control provision in an insurance company’s DRP agreement that requires shops to have a verifiable qc program.

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In addition to the information being available to customers, shops and insurance companies, vendors can be given access to the reporting, so they can proactively assist shops if necessary. The app follows CIECA data standards and allows data sharing through the shop’s management system, whether that’s CCC Secure Share through BMS; Mitchell Estimating, known as UltraMate, using data through EMS; or Mitchell RepairCenter through BMS. In addition to myQCiQ.com, David has developed other apps for the collision repair industry, including UpdatePromise.com, which is now known as CCC Update Plus, SmartShop and DataSpin. “David has always been on the cutting edge and a forward thinker,” said Bob. Frank Pinto, Jr., owner of Premier Autobody & Frame, Inc. in Santa Clarita, CA, has used the app since it was first introduced about a year ago. “It’s an awesome app,” said Pinto. “It forces you to look at every aspect of the repair going down each

line of the estimate to make sure you complete everything.” He said it also helps ensure his employees are being thorough. “You can’t miss anything on the estimates where it would put you in a situation where you could be liable for something that didn’t get done,” said Pinto. Mark Cipparone, owner of Rocco’s Collision, has also used myQCiQ.com at his six collision repair locations in New Jersey and Pennsylvania since the app was first launched. One of the biggest benefits he has found is accountability. “It’s pretty seamless that someone can quality-check a car and they don’t have to be the top person in the company with all of the knowledge of collision to make sure the procedures were done,” said Cipparone. “It brings

common sense into the scenario.” Rather than go line by line through an estimate, he said the app puts the information in a format that makes it really simple and almost “fool-proof” to verify the car has been repaired properly. “When it becomes standard in your company to view every item on the estimate before it leaves, and you’re accountable and tracked for each pass or fail you make, there’s an inherent increased sense of accountability that takes place,” David said. “It’s extremely important to understand that every vehicle that leaves your facility must be viewed as having a family of five sitting in that car, going 70 mph, and you have your name on it.” For more information, visit myQC iQ.com.

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Spanesi Americas Expands Training Team

Spanesi Americas is proud to announce the addition of Dan Dziuban in the role of technical trainer. Dziuban joins the Spanesi training team, which is tasked with creating curriculum and delivering all educational activities for Spanesi Americas’ customers, distributors and internal staff members across the United States and Canada. “I’m excited to join the team of Spanesi Americas,” Dziuban stated. “I’ve Dan Dziuban been looking forward to joining the team since I first used the Spanesi motorcycle lift in my repair facility. Spanesi builds excellent products and I’m looking forward to providing training for Spanesi’s customers and distributors.” Mr. Dziuban has over 20 years of experience in the automotive and industrial coatings industry. Recently, he owned and operated his own automotive repair facility.

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Volkswagen Adds Another 2,564 Vehicles to Takata Recall List by Marc Stern, Torque News

Though it seems as if the Takata airbag recall has disappeared from the headlines, it certainly hasn’t gone too far away. For instance, Volkswagen just added another 2,564 vehicles with potential exploding airbag housings. Airbags, while having proven to be beneficial in preventing road deaths, have also been a thorn in the side of the industry and regulators. The devices have been prone to blowing up during a standard deployment. As they explode, the airbag inflator housing shatters, flinging shrapnel throughout the passenger compartment. Let’s look at some background on this. The year 2015 was a big one for the auto industry. No, it wasn’t big as in “hooray, hooray,” as the National Highway Traffic Safety Administration (NHTSA) had once again found its authoritative ruling voice. It was a time when the NHTSA came down hard on General Motors as it tried to hide a key snafu on its compacts. The agency also didn’t pull any punches as it fined Honda and Fiat Chrysler Autos for their slow reporting. And, it was the year when the agency told Takata to recall four of its major airbag lines because they tended to blow up on deployment. Devices Do Their Jobs And Then Some You would have expected them to explode when they deployed because that was what they were designed to do. The devices were designed to sense accidents of more than five mph. If they did, they were to deploy. All of this took place in milliseconds, and the bags deflated by the time you knew what had happened. But, there was a problem with Takata airbags. On deployment, a number of them fired with too much pressure—the result of airbag propellant becoming contaminated with moisture. Over time, the amount of

deployment force grew a whole lot (researchers would call this almost exponentially). In all of this, though, there was a problem. A climate of good old boy cronyism and super-company protectionism had grown up, as well. In-

deed, many middle management types and senior engineers knew they had a problem with at least four of their lines of airbags. And they knew that the fuel they used was also problem-filled. Finally, there was a climate of secrecy—they would tell no one of the problems, even though people were being injured or killed. Ultimately, they were found out and the scion of the founder—a grandson—was forced out of the company. The company couldn’t take the strain of the constant recall, and they went bankrupt, only to be bought up by another firm. An Issue That Is Proving Troublesome To say that this issue is troublesome is putting it mildly. Beginning in 2008, Takata faced the first of many recalls. Indeed, a second recall that year was needed because the first recall was no good. And recalls continued into 2010, 2011, 2013, 2014 and so on. Each time, the body of cars grew by millions of vehicles. It is estimated, in fact, that by the time this recall has ended, some recalls will touch some 55 million cars. The number of airbag propellant containers and devices will likely be in the 70 to 90 million range. Some models, in fact, have had to be recalled two and three times before the replacements have had the desired effect.

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More important is the fact that there have been 20 deaths linked to exploding airbags to date. More than 185 drivers and occupants were seriously injured. There have been some mysterious clusters of the airbags as well with five people who died in Malaysia, as well as a bunch of early Honda Civics and Accords that had failure rates in the 55 percent range. No Manufacturer Is Immune No manufacturer has been immune. At the start, the recall involved only 11 automakers; however, by the time nearly two decades had passed with no resolution—now—it was up to 22 manufacturers. Manufacturers have increased the number of cars as well. For example, Volkswagen has added 2,564 2003 vehicles to its recall list. They include the: •

2003 Passat Sedan

•

2003 Golf

•

2003 Jetta and Jetta Wagon

•

2003 EuroVan

•

2003 EuroVan chassis

•

2003 EuroVan Caper Van

When the front driver’s airbag deploys, it is possible that the force of the deployment will cause the entire airbag enclosure to turn into shards. In turn, the shards scythe through the interior of the vehicle, harming the front seat passenger and the driver. The fix, according to the NHTSA, is replacing the airbag inflator unit. The repair will be free of charge. It is expected to begin August 12. For more information, owners can contact VW Customer Service at 800-893-5298. The VW internal number for this recall is 69X3. Or, owners can contact the NHTSA Vehicle Safety Hotline at 888-327-4236 or the agency. Source: NHTSA, self-research

We thank Torque News for reprint permission.

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Oldest Body Shops In America: Bistagne Bros Body Shop looked promising. And then it all came to an abrupt end when Uncle From November 2017 to February Sam “requested” their services. Eventually WWII ended. Tom 2018, Autobody News ran an ad looking for the oldest, continuously oper- emerged a captain and George as a ated body shops in America. The first lieutenant. They tried to pick up oldest was George V. Arth and Son in where they had left off in the cusOakland, CA founded in 1877—and tomizing business. But after several still going strong. However, we re- years of war, rationing and just plain ceived information from a number of doing without a lot of things, the marother long-running businesses sev- ket just wasn’t there anymore. Busieral of which will be featured in this ness was “spotty” and not enough to column over the next few months. earn a living. So they decided to drop If any body shop in America can what was not profitable and “specialbe called the quintessential post-war ize.” Heavy engine work was dropped, body shop, it’s Bistagne Bros Body as was customizing. Maybe they were Shop in Glendale, CA. Just out of school, and before that visionaries and saw the future of indevastating December morning in creased post-war car sales and inHawaii, Tom and George Bistagne creased miles traveled now that were already getting their feet wet in gasoline was no longer rationed. Or, the automotive industry. In the back- maybe it was just instinctive to the yard of their Glendale home, the two brothers. But they decided to concenbrothers began customizing cars, trate on body repair and automotive painting. In 1946, the Bistagne Brothers Body Shop was founded in a rented, 400square-foot shop on the northeast corner of Chevy Chase and Verdugo in Glendale, CA. The two brothers and a single hired helper now had a clear vision of where they were going and how they were going to get Tom Bistagne (in truck) and George Bistagne circa 1950 there. working on the engines and chassis. In 1948, the business expanded They were what one might call a pair and a plot of their own real estate, on of “pioneers” in the California car the southeast corner of the same intercraze later made famous in movies and section, was purchased. A purposemusic by such artists as The Beach built garage building was erected on Boys and Jan and Dean. the site into which the brothers moved An article about the brothers in in 1949. As of January 2018, they the August 1955 edition of the West- were at the same site. ern Automotive Journal reported that A 1955 magazine article notes, the brothers, “…had a free hand in “All operations on the 5,000-squareoperations, but not too much finan- foot lot are under direct Bistagne cial resources. They turned out some control except two which are sublet. pretty smart rebuilt Fords of which Vic’s Top Shop is conducted by Victhey justly were proud.” tor Roehner, an old Pierce-Arrow Friends saw their work, liked it craftsman from Buffalo where qualand wanted the brothers to work their ity workmanship was a creed. The charm on their own cars. Before they other sub-tenant is Russell Thomas, knew it, they had a small business who runs a frame and alignment opgoing, customizing cars for friends, eration in a 40 X 30 foot shop. He has neighbors—anyone who saw or ap- a $5,000 investment in the latest Bear preciated their work. They worked equipment for frame and front end days … they worked nights … they work on which he specializes. worked on weekends just to keep up. “Mobile equipment of the A career in automotive customizing Bistagne plant consists of two pickby Gary Ledoux

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

up trucks and a tow car for bringing in wrecks. The firm maintains a fleet of 10 loan cars for the convenience of customers whose vehicles are tied up for service. There is no charge to

Mitchell and Audatex, they had no idea what to charge for a repair to ensure that their costs were covered and a fair profit was realized. But eventually they figured it out, and “diplomatically declined” those jobs that were not profitable. In June of 1955, the shop performed the following work: 148 customer-pay jobs for which they collected a cash payment, 114 insurance jobs and 48 miscellaneous jobs. During this period, the shop was part of one of the earliest forerunners of the DRP concept: The Bistagne Bros shop in 1949. It looks very similar today the Available Garage Plan, which gave them “preferred listings” customers for use of a loan car.” By 1955, Tom and George em- with insurance companies bringing ployed “eight metal men, four painters them “prestige and business from the for spot and complete jobs, one glaze carriers.” Only a few years after its foundand polish man, one frame specialist ing, Bistagne Bros. began to get recand one tow truck operator.” By their own admission, some ognized for its superior repair work of their early days in the collision and custom paint jobs. At that time, repair business were rough-going it used Acme refinish paint exclufinancially. In the days before CCC, sively. As was the tradition in the

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mid-1950s, paint companies put out their own “newsletters” to promote their products and highlight those shops that used their product. In the mid-‘50s, Acme paint dedicated an entire issue to the Bistagne brothers’ work and their use of Acme paint. The cover of the periodical featured the brothers and a freshly painted bright red Jaguar, with the lovely Miss Glendale at the wheel. The Bistagnes’ head painter at that time was Dean Avery, a man with 16 years’ experience who used the “Acme Color Eye,” resulting in “excellent color matches.” Avery liked the ability of the shop to create and tint its own paint instead of ordering the “factory-packaged paint” from the local jobbers. The 1970s saw the second generation of Bistagne brothers (Tom Bistagne’s sons) enter into the office and become part of the family business: Bob Bistagne in 1975 and Chuck Bistagne in 1977. Over the years, the automotive repair business flourished under the family ownership and management, and expansion was sought yet again. In 1999, an adjacent gas station was

purchased and construction was started on expanding the business to encompass the entire southeast corner of the intersection. The new office headquarters opened in 2000. Over the years, the Bistagne family has been involved in various industry initiatives, including the California Autobody Association, and local civic groups like Rotary. In 2003, Bistagne Brothers saw its third generation, Robert Bistagne (Bob’s son), enter into shop management. In 1946, one or both Bistagne brothers welcomed each and every customer that stepped on the lot. Today, almost 75 years and three generations later, a member of the Bistagne family continues that same tradition.

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Continued from Page 44

The 1940s – Part 2

full-time profession. It was decided, “The ideal agent was to be a man with at least a high school education, but preferably a college man. He was to be a man of integrity and standing in his community. Once he joined State Farm, he was to be educated in the techniques of insurance as well as trained in the skills of selling it, so he would be thoroughly aware of the nature of the product he was offering the public. He was to know the intricacies of life insurance, a field where policies are far more complex than auto insurance. And he was to know about fire insurance.” Finally, a story about the formation of the collision repair industry in the 1940s would not be complete without mention of Glenn Mitchell—a parts counterman at a

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San Diego Chrysler-Plymouth-DeSoto dealer who founded Mitchell Manuals in his garage in 1946 by creating an easily used parts catalog for collision repair estimating. Mitchell had the idea of arranging collision parts by the quadrant of the car rather than by component groups, as in manufacturer catalogs. Eventually, aided by Duke Norman in 1958, he added labor and paint times, which enabled a body shop or insurance company to do a repair estimate and generate a bill of materials and work orders. Prior to this time, a body man would “guesstimate” labor by dollar amounts—as in $25 to hang the fender and $20 to paint it. They would then call the vehicle dealer for the parts prices. It was a laborious process, and the shop never really knew if they were making any money on the repair or not. But Mitchell’s idea, born in his garage in 1946, changed an entire industry.

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Robaina Direct Addresses Considerations for 'Small and Medium Damage Repairs' by Stacey Phillips

During a recent Guild 21 podcast sponsored by VeriFacts, Bryan Robaina asked attendees if it’s best to replace parts with new ones during a repair to maintain the vehicle’s OEM / Certified Pre-Owned (CPO) status. Half of those listening to the presentation replied “yes”; the remainder answered “no” or were unsure. Robaina, founder of Eco Repair Systems of North America, the first company approved by BMW for its panel repair tools and equipment, and Robaina Direct LLC, said that in an ideal (repairable) situation, it may be advantageous to repair parts rather than replace them. Doing so can also help reduce severity when conditions permit. In fact, he said, many vehicle manufacturer programs will confirm that the best thing to do to maintain CPO status is to not replace a part. “Every OEM has its own constraints about what allows repairers to go the route of replacement and some with regards to repair,” said Robaina. “This is something that you need to confirm with the OEM documentation work instructions and then make a judgment call.” When looking at repairs in general, according to Robaina, the main question is: “Does the part need to be replaced or repaired?” In most cases, Robaina said it is not recommended that technicians replace a structural panel that is rivet bonded or welded to the vehicle if the damage by OEM standard does not require replacement. Robaina’s presentation on small /medium dent repairs on outer sheet metal and aluminum panels was part of Guild 21’s three-part series on repair versus replace. The earlier segments included Kurt Lammon, president of Polyvance, and Scott McKernan, president of #1 Vinyl & Leather Repair, discussing plastic repair and interior parts, and Ryan Hampton, Bill Park and Tony Frasher, owners of The 300 Advantage, sharing opportunities for Paintless Dent Repair (PDR) in collision repair. Robaina Direct specializes in creating, supplying and co-develop52

ing solutions for small- and mediumdamage repairs for OEM collision repair programs and MSOs. The company’s mission is to drive down the severity of repairs based on OEMapproved and well-balanced DRP-ap-

Bryan Robaina, founder of Eco Repair Systems of North America

proved repair processes that result in better cycle times, more touch time hours and better gross profit (GP). In his presentation, Robaina spoke about important considerations when deciding whether to repair or replace on larger repairs. This included paying close attention to OEM repair requirements. “In this OEM DRP world, everyone has a long list of requests that you have to do to be on one program or another,” he said. “We need to make sure that in every single repair that is done that there is some reference to documentation.” If necessary, he recommended contacting the OEM to confirm the information. Other important considerations he mentioned included being familiar with insurance DRP program guidelines, looking at how the decision will affect cycle time, overall profitability and what is best for the vehicle. “A lot of that relates to CPO status and what translates to resell value,” said Robaina. Robaina reminded listeners to consider disclosures, diminished value and the fact that Carfax reports certain things about a vehicle, especially with intrusive repairs. When making a decision about whether to repair or replace the part,

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

Robaina recommended that technicians first look over the vehicle carefully. In many cases, the only way to determine if the damage is repairable is through a physical inspection. “Today, we’re steering away a lot of technicians from ‘checking’ with their hands to determine if the repair is good enough based on touch,” he said. “Instead, we want them to look at a panel and use their eyesight with contrast lighting as their primary sense to accomplish this. After all, when a customer picks up a vehicle, they see the repair, not feel for correctness.” After assessing the damage, he advised listeners to read through the vehicle manufacturer’s work instructions. He said it’s critical to take into account the value of the part, its availability and the amount of time it will take to do the repair, as well as what may be hidden behind the skin of the exterior body panel. “The last thing you want to do is start de-trimming a vehicle that you’re not entirely familiar with,” he said. “You don’t want to be married to a job that you just started and then find out it’s getting complicated (beyond your level of knowledge or ability to access OEM information).” After a decision has been made to go down the route of repair, Robaina said there are specific tools that can be used. He walked podcast attendees through the steps of PDR when repairing steel parts. Some of the tooling he mentioned included EcoRepairSystem.com’s PDR rods, very precise tooling that requires backside access, as well as small and large glue tabs. When a technician is undecided about whether to repair or replace during a certain job, Robaina said attempting to repair with the company’s proprietary glue pull system can be very telling of whether or not the repair is possible. He also talked about the fine point welding electrode squeeze type lifter, which is attached to EcoRepairSystem.com’s dent repair system, and the steel key welding / pulling system. After discussing repairs related to steel, Robaina addressed aluminum repair opportunities. He asked attendees if it is faster to repair dents on

aluminum because there’s less “spring back” in the material. Less than 10 percent answered yes and more than 60 percent said no; the remainder were unsure. “It’s not faster to repair dents on aluminum in general because it doesn’t have that spring back,” explained Robaina. “The spring back and memory that we are used to finding in steel makes steel repair faster and easier.” Using an example of a quarter panel, Robaina said the process of aluminum panel repair requires a technician to weld MWMtools.com’s aluminum studs, which requires a different process than steel and usually takes additional time. Although some of the tooling is the same as with steel, a separate aluminum stud welding / pull system may be required as well as an aluminum clean room to avoid contamination per OEM requirements. Robaina also addressed how a vehicle’s corrosion protection is best maintained during a repair. “Whenever you remove a factory part, you are disturbing that factory seam,” explained Robaina. “It’s very difficult to replicate it in its entirety because of the inability to access backside points where the panels are joined. By repairing a panel, for example, you are not disturbing the factory seams; therefore, the original corrosion protection will be maintained.” He then asked attendees what method of collision repair they believe provides the fastest cycle time opportunity overall; nearly 70 percent responded that doing the repair is by far the fastest. Robaina concurred and said that in most cases, repairing a part is the fastest cycle time opportunity. “We all know that it’s much easier to get an authorization from an insurance carrier for repair rather than it is for replace,” said Robaina. If a shop takes into account the additional effort required to obtain approval to order a part and receive it, especially if it’s on back order, the decision to repair (while meeting OEM requirements to do so) can increase a shop’s gross profit. This is primarily due to the fewer See Damage Repairs, Page 55

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autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Center for Auto Safety Renews Call for Ford Recall According to a press release from The Center for Auto Safety, on July 2, the second anniversary of NHTSA’s opening an investigation into occupant exposure to exhaust and carbon monoxide in 1.3 million Ford Explorers, NHTSA failed to complete its investigation and Ford failed to fix the problem. Based on the extraordinary danger posed by prolonged exposure to exhaust fumes and the repeated complaints from consumers who, despite receiving the repair, are still being exposed, the Center for Auto Safety sent a letter to Ford Motor Company CEO Jim Hackett asking for a recall before tragedy strikes. In the nine months since Ford’s Customer Satisfaction Program (CSP17N03) was released stating that the vehicles were “safe,” Ford has continued to refuse to acknowledge that there is any danger relating to exhaust fumes being regularly inhaled in the interior of these vehicles, stating that carbon monoxide levels do not “exceed what people are exposed to every day.” Yet for “peace of mind,” Ford offered a no-cost service reducing the potential for exposure for MY 2011-2017 Explorers. However, it appears many Ford owners are far from “satisfied.” Ford owners continue to file complaints with NHTSA about exposure to exhaust and carbon monoxide in their Explorers. Scores of consumers, even after receiving their “peace of mind” fix, continue to report experiencing the same symptoms as before their visit to the Ford dealership. “With all due respect to the efforts undertaken by Ford, and NHTSA, over these last two years, the continued complaints and corresponding reports of incidents and injuries demonstrate that the problem of carbon monoxide exposure inside Ford Explorers has not been resolved,” said Jason Levine, executive director of the Center for Auto Safety. “Based on the number of new complaints NHTSA has received, the problem seems to continue in MY 2018 Explorers, suggesting that the issue apparently has not been designed out of the vehicle. We urge NHTSA and Ford, on behalf of Ford’s customers, and everyone with whom they share the road, to act before

tragedy strikes.” According to the Centers for Disease Control, excess exposure to CO is responsible for more than 400 deaths annually in the U.S. Carbon monoxide poisoning is often referred to as a “silent killer” because, unless mixed with other gases, it is odorless. What makes the exposure so dangerous is that the symptoms (loss of consciousness, nausea, headaches or light-headedness) mimic flu-like symptoms and therefore delay accurate diagnosis of the root cause of the injury—elevated levels of CO in the victim’s blood. Further, as the victim is often unaware of the immediate cause of their injury, CO exposure can be an unsuspected culprit when no expected source is recognizable, leading to underreporting of incidents. It is easy to imagine a roadside crash caused by CO exposure resulting in a serious injury or fatality being written off as “drowsy driving.” Appropriately, the Ford Explorer owner’s manual contains the following warning: “Do not drive your vehicle if you smell exhaust fumes. Carbon monoxide is present in exhaust fumes. Take precautions to avoid its dangerous effects.” Yet, in response to reports of exactly this circumstance since at least 2012, Ford refuses to properly protect its customers. In July 2017, NHTSA indicated that the most likely culprit for the exposure of Ford consumers to potentially lethal amounts of carbon monoxide was cracked exhaust manifolds. Nonetheless, Ford issued a customer service program (CSP17N03) focused on less expensive and potentially less effective repairs such as reapplying weather sealant and reprogramming the climate control in order to give customers “peace of mind,” but stated the “vehicles are safe.” The CSP did not vary dramatically from previous technical bulletins Ford has quietly been issuing since 2012 to address the same issue. (See: TSB 14-0130, and TSB 16-016.) In the intervening months, the Center for Auto Safety has continued to be contacted by Ford customers experiencing symptoms related to CO exposure in their Explorers. Some had brought their Explorers in to dealerships to receive repairs prior

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

to the issuance of CSP-17N03. Others brought their Explorers in afterwards. In some instances, consumers report they are being charged for repairs related to this hazard. Recall repairs must be free under federal law. Below are samples of five complaints from consumers after they received the Ford “fix” for this problem. In total, NHTSA has received more than 1,500 complaints regarding exhaust fumes leaking into 2011–2018 Explorers:

• Ford customer in Jenison, MI, owns a 2012 Explorer. After experiencing an odor and feeling nauseous and dizzy, the consumer brought the vehicle to the dealer “on three separate occasions to have the voluntary Ford exhaust campaign completed.” The consumer is still experiencing the exhaust odors and medical symptoms associated with elevated CO exposure. • Ford customer in Las Cruces, NM, owns a 2013 Explorer. The vehi-

cle has been serviced for CO entering the cabin under Ford’s CSP-17N03 on two separate occasions. Still, the consumer smells exhaust in the cabin and his/her personal CO monitor is picking up unsafe levels of CO in the vehicle. Additionally, the consumer will not place his/her 1-year-old child in the car for fear of CO exposure.

• Ford customer in Windsor, MD, owns a 2015 Explorer. Two months after having the vehicle serviced at a Ford dealership for CO, the customer again began experiencing strong CO odors in the cabin and suffering headaches. When the customer called the dealership to schedule another repair, the dealership informed the customer that they would charge $138 for a diagnostic evaluation. • Ford customer in Porter, TX, owns a 2014 Explorer. After receiving a letter from Ford concerning CO in the cabin, the consumer brought the vehicle to a Ford dealership to repair the issue. The consumer states See Ford Recall, Page 60

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Continued from Page 52

AutoInc. Seeks Submissions for Top 10 Websites Contest

The Automotive Service Association (ASA) and its official publication, AutoInc. magazine, are inviting all current ASA members to enter the

magazine’s annual Top 10 Websites Contest. Member shops can show off their hard-working sites to peers, letting them see how online marketing prowess can attract more consumers and boost profitability. The competition always has been tough, so winning will give ASA shops and employees the recognition they deserve. ASA will publish reviews of the Top 10 sites in the November/December issue of AutoInc., and we’ll send the winners extra copies of the magazine to place strategically around their waiting rooms so customers can see the outstanding sites. Now more than ever, a shop’s website is its best business tool to

attract and retain customers—aside, of course, from the consistent quality of its service. “ASA member shops have always been ahead of the pack in ensuring that their websites help motorists make the most educated decision possible in choosing their shops over others. They understand the importance of a sophisticated website in a mobile age and want to be recognized for their efforts,” said Leona Dalavai Scott, marketing and communications director. To access the entry form and contest guidelines, ASA member shops can visit https://www.autoinc .org/top-10-websites/. Our carefully selected panel of judges has lengthy experience in showcasing and promoting content on the web. They’ll provide a uniform evaluation of each site’s specific features, including: • •

Mobile-friendly and mobileready

properly

•

Clear call-to-action

•

Good first impression/visual design

•

• • •

Conveys shop’s credibility

Social media presence

Clearly communicated objective/purpose Consumer friendliness

Members, along with the rest of the industry, have always looked to ASA’s winning websites as a benchmark for how to successfully promote automotive service and collision repair facilities to current and potential customers. They also help educate the motoring public about the importance of car care. The deadline for this year’s contest is August 1, 2018.

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number of days a vehicle sits on the premises waiting for a new part to arrive. On the other hand, by doing the repair, Robaina said it not only improves cycle time, but CPO status is maintained according to the manufacturer’s program. There is also a lower length of rental time and CSI (Customer Satisfaction Index) is improved. For more information about Robaina Direct, visit the website at www.CollisionRepairTools.com, contact Bryan Robaina at bryan@ robainadirect.com or call 949-9452163. For training information, email sales @robainadirect.com.

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Albuquerque 800-642-2697 505-217-0289 Fax autobodynews.com / AUGUST 2018 AUTOBODY NEWS

TechForce Report Reveals Severity of Vehicle Tech Supply Shortage TechForce Foundation recently released “Transportation Technician Supply Report,” a new report that reveals the growing severity of the vehicle technician supply shortage. Based on an analysis of National Center for Education Statistics’ (NCES) 2011–2016 data, TechForce found that the supply of postsecondary new entrant vehicle technicians has not kept up with the spike in demand. Although the shortage has been ongoing, it became more severe in 2013, and the gap between supply and demand has continued to increase through the present. New entrant technicians are those needed to fill the growth in new positions in the occupation as well as replace those who leave the occupation. They are distinguished from experienced technicians who may move between employers, but don’t add to the overall trained workforce in the occupation. The report reveals that auto tech postsecondary completions have been declining since 2013. The supply of postsecondary auto graduates decreased by 1,829 completions in 2016 from 2012. There were an estimated 38,829 graduates for 2016 in contrast to the projected Bureau of Labor Statistics (BLS) new entrant demand of 75,900. Private sector institutions have experienced the greatest decline while public two-year institutions (primarily community colleges) have increased substantially. The supply of collision technicians has been steadily declining over the past six years. Conversely, total postsecondary completions for diesel programs have increased over

the same period. The projected BLS new entrant demand for diesel technicians is 28,300 annually against a supply of 11,966 in 2016. For the collision market, the projected BLS

annual new entrant demand is 17,200 technicians compared to supply of 5,791 completions in 2016. As to what can be done to alleviate the supply shortage, Jennifer Maher, CEO/executive director of TechForce said, “Our country and education system have divested in high school auto shops and stigmatized trade school education, which is killing the trades. A big part of the problem is the outdated image of the ‘grease monkey’ mechanic that students and their parents, teachers and counselors may have. Today’s techs are well-paid, highly skilled, handson problem solvers who are not burdened by massive school debt like their four-year school counterparts. As we change this image, we can get more students interested in becoming technicians.” Doug Young, co-author of the report and managing director of Wilcap L.L.C, said, “Changing perceptions will require building a pipeline into the industry—before parents and students have committed to ‘college for all,’ before students have decided that they aren’t interested in STEM subjects in high school and before the old percep-

Axalta Releases Spies Hecker Permacron Line

Axalta is excited to launch Spies Hecker® Permacron 257 Single Stage line, a new refinish high gloss top coat that is formulated for excellent resistance to weathering and chemicals. Permacron eliminates steps in the painting process for ease of application and to increase bodyshop productivity with reduced energy and materials demands. It can be mixed with either Permacron MS hardeners or Permasolid HS hardeners. “At Axalta we’re continuously 56

working to create innovative products that help our customers boost productivity and their bottom line. Our Permacron line is designed to deliver savings in time and materials, while also offering the functional benefits of the Spies Hecker premium refinish system,” said Luis Espericueta, Refinish Director for Axalta Mexico and Central America.

www.autobodynews.com

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

tions eliminate any interest among parents and career counselors in learning more about the opportunities in the transportation technician occupations.” Greg Settle, the other co-author of the report and TechForce’s director of national initiatives, said, “With only a small percentage of students interested in going into a skilled trade versus seeking a college degree, the competition among all the skilled trades for those students is fierce. If you look at auto technicians, they can make a very solid, middle-class income. However, starting wages for auto technicians are among the lowest across the skilled trades, and that is often what young and men and women will focus on when making a career decision. Add to that the fact that entry-level technicians are expected to arrive at their first job with their own tools and it does not make the career very attractive, compared with other choices.” According to Maher, “Without some form of focused, collective action, the transportation industry will

continue to suffer from inadequately financed, fragmented efforts to solve these problems. A solution requires pooling resources and consistent public messaging to change perceptions and build a talent pipeline. TechForce Foundation is dedicated to providing the collective source of action to solve the root causes of the problem.” This report, along with last year’s demand report, are examples of how TechForce works to create awareness of the problem, provide credible data to support the industry’s claims and, with even greater industry participation, improve the range and quality of these services. Funding for the report was provided by TechForce donors, including Advance Auto Parts, Autoshop Solutions, AutoZone, Babcox Media, Bridgestone Retail Operations, Cengage, General Motors, George Arrants Enterprises, Interstate Batteries, Nissan North America, Manheim, Shell Lubricants, Snap-on, S/P2, Sunstate Equipment, Toyota Foundation, Universal Technical Institute, Valvoline, WD-40 and 10 Missions Media.

CARCO Adds Windshield Damage Inspections To Fight Fraud in FL by Emmariah Holcomb, glassBYTEs.com

CARCO is adding windshield damage inspection to its Florida Site Network. The goal is to identify and prevent fraudulent windshield damage claims from being filed with insurance companies. The new addition aims to help both insured Floridians and insurance companies by authenticating filed claims. “This should help ensure the safety of the insureds while stopping fraud,” said Will Pagan, senior vice president and general manager of CARCO’s Fraud Prevention Services and Technology Platforms division. By using its existing site network, leveraging mobile technology can help keep

Don’t Miss the Weekly Industry NEWS Your Shop Needs.

costs down. “The program helps insurance carriers as it validates windshield damage and tracks the fraud prevention process through a mobileenabled network, saving time and money,” CARCO said in a press release. The group said its number of completed inspection transactions in Florida and other states is in the millions, according to the release. “We are confident that our 40 years of experience fighting fraud with innovative technology solutions will help alleviate the flood of lawsuits that have crept up to over 20,000 in the past year alone,” Pagan said. We thank glassBYTEs.com for reprint permission.

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Apple Car Project Evolves With Larger Test Fleet, New Hire ing the number of veterans in the field, such as Waymo. The growth of Apple’s self-driving fleet in California has been nothing less than astounding. According to a MacRumors report, information obtained from the California Department of Motor Vehicles has revealed that Apple started with a fleet of 27 autonomous vehicles in January. By March, there were 45 self-driving vehicles operated by the tech giant. By mid-May, the company had 55 vehicles and 83 drivers in its fleet. Just two weeks after that, Apple’s fleet of self-driving cars grew to 62 vehicles and 87 drivers. In comparison, Waymo has 51 autonomous vehicles testing on CA roads. Apple’s self-driving cars are characterized by their rather hefty roofs, which include an array of cameras and advanced LiDAR equipment. The vehicles are running Apple’s in-development autonomous driving software. Just like some of Google’s fleet, Apple has selected Lexus to be its car manufacturer of choice, with the company using Lexus RX450h SUVs as its test vehicles. Each of Apple’s self-driving cars is deployed with a safety driver,

by Simon Alvarez, Teslarati

Apple’s long-rumored “Project Titan,” also known as the Apple Car initiative, has gone through several changes over the years. While the Cupertino, CA-based tech giant initially appeared to be focused on manufacturing its own vehicle, the company has since opted

to focus on developing self-driving technologies instead. Apple CEO Tim Cook, for one, stated back in June 2017 that Apple was “very focused on autonomous systems.” Since then, the iPhone-maker has gone all-in on the self-driving race. Today, the company commands the largest fleet of autonomous vehicles on California’s roads, even surpass-

as the company’s permit currently does not allow fully driverless operations yet.

Apart from growing its fleet, Apple is also growing its talent pool for its self-driving initiatives. Just recently, the company hired senior selfdriving car engineer Jaime Waydo, who has previous experience as an engineer from NASA’s Jet Propulsion Laboratory. What is particularly notable from Waydo’s work experience, however, is that she worked for Waymo before joining Apple’s selfdriving car project. The former NASA engineer oversaw systems engineering at Waymo while also aiding the self-driving car Google subsidiary in making pivotal decisions about the driverless operations of its test fleet in Arizona. Apple’s self-driving car project

is among the company’s largest, most ambitious initiatives to date, with Cook dubbing it as the “mother of all AI projects.” In a way, Cook’s statement rings true, considering that Apple has made its name and established its reputation in consumer technology, not in automotive engineering. While the company does have experience with artificial intelligence and machine learning thanks to products like the iPhone and voice-activated assistants like Siri, a self-driving car system is an entirely different challenge. It is, after all, one that Google is still trying to master despite being in the industry since 2009, and one that Tesla is still seeking to learn despite having more than 150,000 vehicles on its fleet gathering data every day. We thank Teslarati for reprint permission.

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Auto Care Association Named Red Hot Association

The Auto Care Association was recognized as a “Red Hot Association” by DCA Live at the first an-

● ● ● ●

nual DCA Live 2018 Red Hot Not Profits and Associations event in Arlington, VA. The event honored Washington, D.C.-based organizations that demonstrated performance as a high-growth or innovative nonprofit or association. The list of 2018 Red Hot Associations included: ● ● ● ● ● ●

Auto Care Association Conference of State Bank Supervisors Infectious Diseases Society of America Association of Corporate Counsel Association for Career and Technical Education American Society for Engineering Education

● ● ● ● ● ● ● ●

American Psychiatric Association National Federation of Independent Business International Sign Association Military Officers Association of America American Association of Airport Executives American Medical Writers Association National Association of School Nurses Architectural Woodwork Institute Association of Governing Boards National Grocers Association National Association of Criminal Defense Lawyers Future Business Leaders of America

“We’re honored to be recognized alongside these outstanding associations making a positive impact on our community here in our nation’s capital and throughout the United States,” said Bill Hanvey, president and CEO, Auto Care Association.

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

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Auto Care Association Establishes Al Gaspar Memorial Fund

tomotive Parts and Accessories Association (APAA) for five years prior to joining AAIA. He also held a variety of roles at aftermarket companies, including: executive vice president at McKay Chemical Company (a division of Blue Coral); vice president, consumer sales for Wynn Oil Company; and vice president, sales and marketing worldwide operations for Bardahl Manufacturing. Gaspar received numerous honors throughout his career and served on a number of boards and committees. “Al Gaspar was committed to industry education as evidenced by his time at AAIA, so it is fitting that donations made in his name will help ed-

ucate the next generation of aftermarket leaders,” said Bob Egan, MAAP, chairman, University of the Aftermarket Foundation. “We thank the Auto Care Association for launching this fund and encourage others to follow their lead by making a donation in memory of Al Gaspar.” To make a donation to the University of the Aftermarket Foundation in memory of Al Gaspar, visit www.UofAFoundation.com to donate online or send a check made payable to the University of the Aftermarket Foundation to 7101 Wisconsin Ave., Suite 1300, Bethesda, MD 20814 and indicate that the donation is in Gaspar’s memory.

ABRA Auto Body Repair Expands With 8 Centers

plus employees to our Abra family to continue that reputation.” Abra has a long history in Utah, starting with the opening of the Murray, UT, location in 1998. These newly acquired centers expand Abra’s operations into southern and northern Utah and complement nine existing centers in the greater Salt Lake City

area. In Indiana, Abra completed the acquisition of all six Church Brothers Collision Repair locations on June 29. Details of the acquisition were previously announced. Altogether, Abra has added 16 locations in 2018 and now has 354 repair centers in 27 states across the nation.

In recognition of its former president and CEO, Al Gaspar, the Auto Care Association has established a memorial fund in his honor. Donations made to the University of the Aftermarket Foundation in Gaspar’s memory will be used to fund scholarships and industry educational initiatives. “We couldn’t imagine a better way to honor the legacy of a leader who meant so much not only to the history of our association, but also our industry,” said Bill Hanvey, president and CEO, Auto Care Association. “Al’s vision has progressed our industry in countless ways and we have all benefited from his passion and fore-

Abra Auto Body Repair of America is continuing its national growth with the addition of eight centers in June. In Utah, Abra acquired Centric Collision, located at 1545 State St. in Provo, UT. The 16-employee, 32,000square-foot shop opened on June 4. In a separate transaction, Abra Logan, located at 1240 South Hwy 89 in Logan,

sight of what our association and industry can be.” Gaspar, who passed away in November at the age of 79, served as president and CEO of the Automotive Aftermarket Industry Association (AAIA), the precursor to the Auto Care Association, from 2000 until 2004. Two of his biggest accomplishments during his tenure at AAIA included overseeing a fundraising effort to build the Aftermarket Education Center at Northwood University and directing the effort to raise funds for the research that led to the creation of the Car Care Council. Gaspar spent more than 40 years in the auto care industry, serving as president of the Au-

UT, opened on June 25. The 21,000square-foot shop has seven employees. Each shop is the first Abra location in these communities. “We’ve already got a great team, and we’re proud of the reputation for quality we’ve built in Utah,” said Jim Kessler, Abra chief operating officer. “We’re excited to welcome these 20-

Continued from Page 22

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• WHAT DID YOU SAY? Believe it or not, OSHA is concerned about noise levels, i.e., repeated uses of air hammers or grinders. Therefore, you might test the decibel level and offer annual audiograms to employees. • Don’t get excited, but paint strippers are another area where OSHA is looking. These chemicals may have substances that could put your employees’ health at risk.

• Watch out for unsafe stairs or storage areas that present a danger.

• Finally, lifts can be fatal if they are not inspected on a regular basis,

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so make absolutely sure that your lifts are safe for your employees.

In the coming months, I will discuss the issues of shops around the country becoming a victim of insurance company steering (their use of shops that may have cut “sweetheart deals”), the issue of totaling, capping (the insurance company’s policy of capping of labor rates), insurance companies’ unfair appraisal or refusal to negotiate an appraisal, and the issue of what the law calls tortious interference with your business. My goal is to alert shop owners of the issues presented in everyday business in dealing with the insurance companies, and if indeed you feel victimized, what recourse you may have. Feel free to send any questions, comments, or concerns to The Auto Body Attorney c/o Autobody News.

www.autobodynews.com

UPDATED DAILY

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

Continued from Page 54

Ford Recall

that the issue is now worse, and that the two CO detectors in the vehicle indicate unsafe levels of CO within minutes of driving. Additionally, when the consumer and his/her family ride in the vehicle, they suffer headaches. • Ford customer in Westminster, MD, owns a 2016 Explorer. Two months after having the vehicle serviced under the CSP-17N03, symptoms of CO exposure persisted. Upon bringing the vehicle back to the service center, two additional leaks were found. Ford initially refused to cover the cost of the repair, and only after five days of hassle did Ford agree to pay 80 percent.

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Stacey Phillips Joins CIECA as Communications Specialist

The Collision Industry Electronic “It is used for the exchange of colliCommerce Association (CIECA) sion industry messages and data across multiple organizarecently announced that tions and networks and alStacey Phillips will be lows organizations to joining the national organtransmit only the data reization as the marketing quired for the application and communications cowithout transmitting ‘unordinator, effective immeneeded data.’ On behalf of diately. CIECA’s Board, we wel“In her new role, come Stacey and look forStacey will be instrumental Stacey Phillips ward to having her help as CIECA continues to promote the adoption of BMS (Busi- engage the industry with information ness Message Suite) standards,” said and educational opportunities.” Phillips has more than 20 years Fred Iantorno, executive director of CIECA. “Her expertise in market- of experience helping companies ing and communication strategies will help CIECA communicate its mission to develop and promote electronic communication standards that allow the collision industry to be more efficient.” The BMS (Business Message Suite) is CIECA’s comprehensive set of electronic communication standards for the collision industry. “BMS provides the industry with a greater ability to protect the customers’ personally identifiable communicate their vision. She has information,” said Clint Marlow, worked for a wide range of busiCIECA’s chairman of the board and nesses and fields, including techniclaim innovation director at Allstate. cal industries such as automotive,

AAAS Hosts YANG Meet-Up With Annual Conference & Trade Show by Chasidy Rae Sisk

On June 6, the Automotive Aftermarket Association of the Southeast (AAAS) hosted a Regional Meet-Up for the Young Auto Care Network Group (YANG) in conjunction with the 2018 AAAS Conference and Trade Show held at the Sandestin Golf and Beach Resort in Miramar Beach, FL. YANG members who attended the Meet-Up received an invitation to attend the rest of the conference at no charge. Matt Ward, director of government relations, shared, “By combining the YANG Meet-Up with the annual conference, YANG members were able to connect with other YANG members as well as industry leaders that were in attendance. Just like every other YANG Meet-Up, attendees enjoyed their time spent connecting with peers in the industry and meeting new people. The relationships built and maintained at these events are extremely beneficial both for the individual and the in60

dustry as a whole.” Ward is also a member of YANG, which includes young industry professionals under the age of 40. He noted, “The aftermarket is a people-driven industry, and YANG has given me a great avenue to network with and meet other industry peers, many of which I consider to already be leaders in the aftermarket. It is fun to be in a room full of YANG members that are excited about what they do and the industry they work for. You cannot attend a YANG event and not be optimistic about the future of the automotive aftermarket. “All Meet-Ups are different and can range from networking receptions to educational seminars, with previous events being held at many different types of venues. The focus always remains the same, which is good old-fashioned networking. Make sure to be on the lookout for a YANG event in your area. You do not want to miss it!”

AUGUST 2018 AUTOBODY NEWS / autobodynews.com

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engineering and oil and gas, as well as consumer-focused magazines, newspapers and websites. She is the prior assistant editor at Autobody News magazine and continues to write articles for the collision repair industry. The award-winning writer is a graduate of the University of Southern California with a double major in journalism and political science and earned an honors thesis in environmental politics. She has co-authored two books, including “The Secrets of America’s Greatest Body Shops,” which was released in 2017. “As e-commerce has become a bigger part of our daily lives, the flow of data among trading partners has expanded as part of the repair process,” said Phillips. “The next few years will present an amazing opportunity to help unite the industry in a common cause—the adoption of standards. I’m excited to be part of this challenge and help build a solid foundation to achieve great results for this industry.

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‘Who Pays for What?’ Finds Half of Shops Have Not Billed for Seat Belt Inspections

“Some even go so far as to state The quarterly “Who Pays for What?” survey conducted this past spring seat belts must be replaced if they found that just over 30 percent of were in use during a collision,” he shops that seek to be paid for inspec- said. “Some OEMs also state that the tion of seat belts when it is necessary inspection process includes using a scan tool.” as part of the repair process Anderson said the resaid they are paid “always” sponse to the survey quesor “most of the time” for it. tion “is very concerning in Fifty percent of shops have that it indicates to me that not asked for payment for too few shops are researchthis important process. ing OEM repair procedures “Of the nearly 100 and are thus not aware” of procedures and items we ask about over the course Mike Anderson of what the automakers call for. of four surveys each year, Collision Advice “As an industry, we this is the one that most keeps me awake at night,” said must accept responsibility for reMike Anderson of Collision Ad- searching and following the requirevice, who conducts the surveys with ments for this on every vehicle,” Anderson said. CRASH Network. The survey, to which more than He said the latest of the four 2018 “Who Pays for What?” sur- 1,000 shops responded, did offer veys, which focuses on not-included some indication that the industry is frame and mechanical labor opera- becoming more aware of the need for tions, is open now through the end of inspection of seat belts during colliJuly at https://www.surveymonkey sion repair. The same survey two years earlier found that fewer than .com/r/TN8RY72. The findings related to seat belt one in four shops (24 percent) said inspection are troubling, Anderson they were paid regularly for the prosaid, because every automaker has cedure. That had climbed to 31 pera very specific procedure for the cent this year. The percentage of shops that said they’d never sought to process.

Finish it like a Masterpiece

be paid for the procedure had fallen somewhat from about 62 percent in 2016 to about 59 percent this year. In addition to asking shops about their billing practices—and insurers’ payment practices—regard-

ing about two dozen not-included body labor operations, the April survey asked about shops’ scanning practices, estimating and electronic parts systems usage, and body labor and storage rates. The current survey focuses on frame and mechanical labor procedures and includes some all-new questions to offer the industry even more helpful information; shops can

take the survey before the end of July by visiting: https://www.survey monkey.com/r/TN8RY72 Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented. Anderson said the 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 shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online (https://www .crashnetwork.com/collisionadvice).

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U.S. Aftermarket To Grow at Annual Rate (CAGR) of 3.4% Through 2021

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The U.S. automotive aftermarket is expected to grow at a compound annual growth rate (CAGR) of 3.4 percent through 2021, according to the “2018 Joint Channel Forecast Model” produced jointly by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. The 2018 Joint Channel Forecast Model also predicts that the total aftermarket sales will grow from $286 billion in 2017 to $327 billion in 2021, an increase of nearly $41 billion over the four-year period. “The Joint Channel Forecast shows the continued strength of key aftermarket drivers and the impact of the confident consumers, buoyed by a strong job market and lower personal tax rates and shows influences driving evolution in the aftermarket: new and emerging technologies, changes in the distribution model and changes in consumers’ expectations for mobility. We are an industry facing a lot of change, but we believe we have the people in the independent aftermarket with the leadership, vision and entrepreneurial spirit to enable us to

grow and thrive in our pending era of change and opportunity,” said Bill Long, president and chief operating officer, AASA. “The sustained growth projected in the forecast is not only a result of key economic upswings, but also technology that is creating opportunities for new products, services and solutions across our market,” said Bill Hanvey, president and chief executive officer, Auto Care Association. “These new technologies continue to widen the reach and scope of our industry as well as enable opportunities to add to the 4.6 million job powerhouse that we are.” The market sizing and forecast is conducted on behalf of AASA and the Auto Care Association by IHS Markit, the world-renowned economic and market information firm. The forecast is based on the U.S. Census Bureau’s Economic Census, IMR and Polk data, and proprietary IHS Markit’s economic analysis and forecasting models. Visit www.aftermarketsuppliers.org and www.autocare.org.

autobodynews.com / AUGUST 2018 AUTOBODY NEWS

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