August 2020 Southwest Edition by Autobody News

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Shops Taking Action to Boost Business, Help Employees and Community by John Yoswick

Collision repairers around the country aren’t sitting still as business conditions continued to evolve as summer began. Here’s a cross-country tour of what’s happening as shops around the U.S. respond to the pandemic and its economic fallout. Helping employees and the community Shops continue to be generous in their efforts to help out their employees, their customers and their community.

Zach DeGroot, manager of Riverbend Body Shop in Grand Rapids, MI, said the shop covered some of the costs for police vehicle repairs after about a dozen such vehicles were damaged during rioting that followed a protest to denounce the death of George Floyd. DeGroot said the shop has always tried to do something extra on customers’ vehicles in for repairs, but is also trying to step that up, offering free detailing or “repairing unrelated damage on adjacent panels for customers so they do not have to pay out of pocket.” See Taking Action, Page 20

ABAT Cancels 2020 Texas Auto Body Trade Show Due to Vendor Discomfort Over COVID-19 by Chasidy Rae Sisk

The Auto Body Association of Texas (ABAT) recently announced the cancellation of its 2020 Texas Auto Body Trade Show, as a result of travel restrictions and general unease related to COVID-19. “The decision to cancel this year’s trade show was mostly based on travel restrictions, since many of our exhibitors come from out of state and are unable to travel right now,” said Jill Tuggle, executive director of ABAT. “Texas has also had a rise in COVID cases, so this made things

even more difficult. In consideration of those difficulties, we did not feel that we could host a successful trade show.” “This was a difficult decision to make,” ABAT President Burl Richards added. “We waited it out until the bitter end, holding onto hope that we could make it work, but with all factors considered, this is what’s best for everyone.” The 2020 Texas Auto Body Trade Show was scheduled for Sept. 18-19 in Irving, TX, but due to an increase in reported cases of See ABAT Cancels, Page 19

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AUTOBODYNEWS.COM Vol. 38 / Issue 8 / August 2020

Some Positive Trends for Collision Repairers Amid Pandemic Fallout by John Yoswick

Although the tough times shops are experiencing in some markets aren’t over, the summer has brought some sunnier trends for the industry. Here is a collection of some potential good news for collision repairers. Rebound in used vehicle values means fewer totals Given the link between used vehicle pricing and the percentage of collision-damaged vehicles declared total losses rather than repairable, collision repairers tracking the fluctuation in

second-hand vehicle values this year have to feel like they’ve been on a wild roller coaster ride. Vehicles are generally declared total losses when the cost of repairs exceeds some percentage of the vehicle’s value prior to the accident. When used vehicle prices drop, it takes less damage for repair costs to hit that total loss threshold. And drop they did this spring. Wholesale used vehicle prices in the first 15 days of April decreased 11.8% compared to a month earlier, according to Manheim. The used veSee Positive Trends, Page 32

Auto Dealer Parts Departments Continue to Serve Through Pandemic by Gary Ledoux

In the last few months, much has been written and discussed within the trade press about how body shops, insurance companies and car rental companies are faring with the business slowdown caused by the corona virus pandemic. Autobody News wanted to know how the auto dealer parts departments were faring. Between June 11 and June 15, Autobody News conducted a survey of car dealership parts departments. This included dealers of all makes from Ford, GM and FCA to Mini, Mitsubishi and Tesla, and everything in between. All responding dealers said they were involved in the wholesale collision business. All except one said they were involved in the wholesale mechanical business. Responding dealers leaned toward being either General Motors or Honda/Acura dealers. We asked the following questions and received the respective responses.

In March, April and May, was your wholesale collision business (primarily body parts sold to collision repair shops) up or down, and by what percentage? All except three dealers noted their wholesale collision business was down, some by as little as 15% and some by as much as 80%. The average was a decrease of 45% and consistent with the business losses experienced by collision shops. Of those that experienced an increase in wholesale collision sales, one dealer could not be reached for comment. Another, a GM dealer in Missouri, noted that a large hailstorm was the cause of the increase. The third dealer, Richmond Ford Lincoln of Richmond, VA, took a very aggressive and innovative approach to increase sales. “We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” said Parts Director See Serve Through Pandemic, Page 28

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CONTENTS Automated Driving Systems Initiative ............18

Tesla Battery Day Gets a Concrete Date ..............1

ABPA Joins New CAR Coalition ............................3

Christian Brothers Automotive Foundation

ASA Opposes ‘Cash for Clunkers’ ......................43

Helps Launch ACE Scholarships in Austin ......18 Gov. Edwards: Louisiana Not Ready to Loosen Restrictions Meant to Control COVID-19 ........11 LA Lawmakers Advance Lawsuit Bill, Tax Break Expansion .......................................8 New Arizona Law Results in Auto Insurance Premium Increase.........................................16 State Farm to Further Decrease Auto Insurance Rates in Louisiana ........................12 Tesla Cybertruck Factory: Tulsa’s Underdog Campaign Giving Austin’s Bid a Run for Its Money......................................................10 TX Governor Warns if Spread of COVID-19

Asbury Automotive Group Announces Acquisition of Park Place Dealerships in TX .............................................................16 Auto Dealer Parts Departments Continue

Autobody News Writer Recognized for ‘Solving the Tech Shortage’ Column ..............44 CAR Coalition Urges Data Control ......................19 CIECA Names New Technical Project Manager ..16 Diving Into the Fascinating World of Fasteners ..30 GM to Call Up Hundreds of Laid-Off Workers to Meet Production Demand at Key Truck Plants ....................................................4 I-CAR® Expands Audi Training ...........................18

to be a Lockdown’ ..........................................6

I-CAR® Names Peevy to New Role.....................40 Industry Legend Dick Schoonover Dies .............46

COLUMNISTS

Jerry Seiner Acquires 2 AZ Stores .....................12

Anderson - Making the Most of the ‘Parts’

Lucid to Open 20 Retail and Service Locations

Attanasio - Will COVID-19 Change Your Marketing and Advertising Plans Forever? .......................................................36 Chess - An Overview of Corrosion Protection Products: Part 1 of 2 .....................................22 Phillips - Industry Veterans Erick and Shelly Bickett Share Insight About Collision Industry ..........................................26

2020 SEMA Show Safety Announced ................16 3M Shows Support of Collision Repair Industry During Pandemic .............................38 9 Companies, 8 States Involved in U.S. DOT

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

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Accudraft Paint Booths.................................... 48

Fowler Honda ................................................... 8

American Icon Automotive Finishes ................. 16

GM Wholesale Parts Dealers ........................... 35

Audi South Austin ........................................... 33

Haldon Company ............................................ 37

Audi Wholesale Parts Dealers .......................... 45

Honda-Acura Wholesale Parts Dealers .......24-25

AutoMart Mitsubishi ........................................ 21

Hyundai Wholesale Parts Dealers .................... 43

AutoNation Chrysler-Jeep-Dodge-Ram

Innovative Tools & Technologies ...................... 31

of North Phoenix ......................................... 23

Kia Motors Wholesale Parts Dealers ................ 41

AutoNation Collision Parts ................................. 7

Mazda Wholesale Parts Dealers ...................... 44

Big Mike Naughton Ford.................................. 21

Mercedes-Benz Wholesale Parts Dealers ........ 42

Bill Luke Chrysler-Jeep-Dodge-Ram ................. 6

Mitsubishi Wholesale Parts ............................. 40

BMW of South Austin ...................................... 33

MOPAR Wholesale Parts Dealers ..................... 29

BMW Wholesale Parts Dealers ........................ 36

NOROO Paint & Coatings ................................. 13

Bob Howard PDC ............................................ 39

North Freeway Hyundai ................................... 28

Bob Utter Kia .................................................. 26

Part of the Club ............................................... 21

NABC Announces New Awards ............................3

Car-Part.com .................................................. 18

Peak Kia ......................................................... 21

NABC Recycled Rides® Program Presents

Certified Automotive Parts Association .............. 8

PPG Refinish ..................................................... 9

Chevyland....................................................... 32

RGI Spray Booth Company .............................. 10

Christopher’s Dodge World .............................. 21

Santa Fe Kia ..................................................... 6

Classic BMW................................................... 27

SATA Dan-Am Company .................................... 5

Classifieds ...................................................... 46

Schomp Mazda ................................................. 6

Eagle Abrasives, Inc ........................................ 17

Scoggin-Dickey Parts Center......................14-15

Eckler’s Automotive ........................................ 11

Spanesi Americas ........................................... 19

Emich Chevrolet.............................................. 21

Stevinson Toyota West .................................... 21

Equalizer Industries, Inc .................................. 20

Subaru Wholesale Parts Dealers...................... 38

Finnegan Chrysler-Jeep-Dodge ......................... 2

Symach .......................................................... 12

Spanesi Americas Launches New Website ........43

Fisher Acura.................................................... 21

Toyota of Laredo ............................................. 30

Tesla Battery Day Gets a Concrete Date ............44

Fisher Honda .................................................. 21

Toyota Wholesale Parts Dealers....................... 34

Flatirons Subaru ............................................. 21

Volkswagen Wholesale Parts Dealers .............. 42

Ford Wholesale Parts Dealers .......................... 47

Young Chevrolet .............................................. 22

in North America Through 2021 ....................43 Maaco Prepared to Service Customers Safely ...19 Most Expensive States for Car Insurance in 2020 .........................................................44

Two Vehicles to Deserving Recipients in Dallas .......................................................12 Shops Taking Action to Boost Business, Help Employees and Community .....................1

NATIONAL

The coalition will also work to build awareness of efforts by automotive companies/original equipment manufacturers (OEMs) to limit consumer choices in the post collision repair process. These include limiting consumer access to data, automotive design patent abuses and the use of steering techniques and first notice of loss from OEMs, which directs consumers to dealers first. These tactics limit repair choices and drive up costs for consumers. Source: ABPA

to Serve Through Pandemic ............................1

Doesn’t Slow, ‘the Next Step Would Have

Portion of Your Business................................34

The Automotive Body Parts Association (ABPA) is proud to announce it has joined the CAR (Consumer Access to Repair) Coalition, a group of independent automotive parts and repair companies, associations and insurers dedicated to preserving and protecting consumer choice, transparency and aﬀordability in the post collision repair market. The CAR Coalition will work to advance policy solutions that address the rising cost of automotive collision repair for consumers.

INDEX OF ADVERTISERS

REGIONAL

ABPA Joins New CAR Coalition

Some Positive Trends for Collision Repairers Amid Pandemic Fallout....................................1

autobodynews.com / AUGUST 2020 AUTOBODY NEWS 3

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GM to Call Up Hundreds of Laid-Off Workers to Meet Production Demand at Key Truck Plants by Jamie L. LaReau, Detroit Free Press

General Motors Co. has a problem with absenteeism at its vital truck plants just when it needs every single body it can get on the assembly line.GM is working feverishly to replenish supplies of the in-demand pickups and full-sized SUVs after idling its U.S. factories from lateMarch through mid-May amid the coronavirus pandemic. Take Fort Wayne Assembly in Indiana, where GM builds its Chevrolet Silverado and GMC Sierra fullsize light-duty pickups. The plant has about 4,100 hourly workers and nearly 1,000 of them are off for various reasons—as many as 200 workers are off for COVID-19 related reasons. So it is increasingly harder for GM to hit the daily build target of 1,290 pickups there. If you look down the assembly line, you’ll likely see something that should never be, said a person familiar with the plant, but who is not authorized to speak to the media and asked to not be named. “They’re at full schedule, but they have every single person on that assembly line, including management, and management is not supposed to be on the line,” said the person. “It’s all hands on deck, just to build trucks.” To alleviate the problem, GM told union leaders at Flint Assembly, Fort Wayne Assembly and Arlington Assembly in Texas it will be adding hundreds of permanent workers to the plants, some starting in early August. They will not be new hires, but rather GM workers laid off at other plants who will be given the chance to permanently transfer to one of the truck facilities. “It is ... no secret that we have people on layoff from Detroit-Hamtramck and upcoming at Spring Hill, so it makes sense to shore-up our workforce in the important truck and heavy-duty SUV plants,” said another person familiar with the situation but who asked to not be named because they are not authorized to share that with the media. A GM spokesman did not comment on managers helping build pickups, other than to say GM is doing everything to address the production challenges in the plants while

keeping workers safe during the pandemic. “We are operating our plants as efficiently as possible while accommodating team members who are not reporting to work due to concerns about COVID-19 in the community,” said GM spokesman David Barnas. By month end, GM will have access to a wider workforce. Effective July 31, GM has said it will cut the third shift at its Spring Hill Assembly plant in Spring Hill, TN. The move impacts 680 workers there, 525 of whom are production and skilled trade employees. The cuts are the result of slow sales of the Cadillac XT5, Cadillac XT6 and GMC Acadia SUVs made in Spring Hill. Likewise, GM still has 430 workers laid off from Detroit-Hamtramck Assembly after the last Chevrolet Impala sedan rolled off the line Feb. 27. GM was going to transfer many of those people to the Lansing Delta Township plant, where it builds the Buick Enclave and Chevrolet Traverse SUVs, but then GM decided to keep that plant at two shifts. GM declined to provide specific details on the number of employees it will transfer to the truck plants, but, Barnas said: “We will follow the provisions of the national agreement. But we believe our staffing plans will allow us to continue supporting three production shifts at Fort Wayne, Flint and Arlington to meet strong customer and dealer demand for our pickup trucks and full-sized SUVs.” The union’s contract allows laid-off workers first dibs to rehire at the plant that they were laid off from, then they can apply for a job at a plant within a 50-mile radius of their home plant. The region expands from there. If a worker declines a transfer, they typically remain laid off, according to the contract. “All of these transfers are being done in accordance with the agreement that was negotiated based on seniority and transfers,” said Brian Rothenberg, UAW spokesman. At Flint Assembly, where GM builds its full-size heavy-duty pickups, it is running at full capacity. Workers usually hit the daily production target, but sometimes they fall short by a dozen or so, said Eric Welter, UAW Local 598 shop chairman

at the plant. He declined to disclose the total number of pickups the plant targets to build each day. “We do need some help,” Welter told the Free Press. “We’re getting 100 people. They’re laid off anyways and they need the work. They’re coming from Detroit-Hamtramck, Spring Hill, Pontiac and Milford.” Welter said he learned of the 100 new permanent jobs July 13. Flint will start getting about 50 of them Aug. 10, the other on half Aug. 17, Welter said. The news hit him two days after the Free Press first reported GM will temporarily reduce its Wentzville Assembly plant, near St. Louis, MO, to two shifts starting July 20. Heavy absenteeism there among nervous workers as cases of coronavirus surge in the surrounding community was cited as a reason. When asked how long Wentzville’s third shift would be laid off and whether Wentzville would get transfers from other plants to help boost production of the midsize pickups and full-size vans it builds, GM’s Barnas said only, “We are working on a staffing plan at Wentzville that will allow us to return to three production shifts as soon as possible in order to meet strong customer and dealer demand for our mid-size trucks.” Welter said absenteeism is high at Flint Assembly, too. “It’s up there, roughly 600 people are on some sort of leave of absence, whether it’s sick leave and personal leave, and then we have people on vacation and an extra 100 on COVID leave,” Welter said. “It’s tough on the plants. But we’re running.” There are about 5,000 workers at Flint. Seven workers have tested positive for coronavirus since the plant restarted in mid-May, Welter said. The 100 workers on “COVID leave” are those who have an immune disorder and cannot work, or they are in quarantine due to exposure to someone who tested positive for the COVID-19, or they have to care for someone with the virus. “It’s a difficult environment to work in. My people are stepping up to get it done,” Welter said. “But it is hot wearing masks all day and doing the heavy work.” At Fort Wayne, GM will add 318

workers, according to a report sent to workers by shop chairman Rich LeTourneau. The report, obtained by the Free Press, is dated July 10 and says there are 737 members on family leave status, 268 members on sick leave and 157 members on leave for “something other than sick leave.” The workers will start arriving the first two weeks in August. The plant has nine confirmed COVID-19 cases, said the person familiar with the plant. By policy, GM does not release the number of COVID-19 cases in plants. LeTourneau’s letter reads: “At this point, GM has no intentions of shutting any plants down, we are being told. They do not see an end in sight as it relates to COVID-19 either.” When asked to comment on that point, GM’s Barnas said, “People on our team should not be concerned about coming to work. All of our sites are following multilayered safety protocols that are working very well to keep people safe by reducing the possibility that COVID-19 can enter the plant and preventing any spread within the plant.” Barnas said the same plant protocols can help keep people safe outside of work, especially social distancing and wearing masks. Local union leaders at Wentzville and Arlington have asked GM to shut down the plants as cases of coronavirus in their surrounding communities surged. But GM has keep both running. It’s not known how many workers Arlington will get because no one from Arlington replied to a request for comment. The UAW negotiated its current contract prior to the outbreak of coronavirus, so there is no clause to address how to handle it. The union and the automakers must stay in continual discussions on ways to address the changing situation. “I told the company a month ago this is only going to get worse, so you’ve got two choices here: You shut the plant down or you run two shifts,” said the person familiar with Fort Wayne. “They said we’ll play it when we get there. The two shifts are an option.” We thank the Detroit Free Press for reprint permission.

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TX Governor Warns if Spread of COVID-19 Doesn’t Slow, ‘the Next Step Would Have to be a Lockdown’ by Alex Samuels, The Texas Tribune

With Texas continuing to break records for new coronavirus deaths and hospitalizations last week, Gov. Greg Abbott reiterated July 10 that things will continue to get worse. And if people keep flouting his new statewide mask mandate, he said, the next step could be another economic lockdown. “Things will get worse, and let me explain why,” he told KLBK TV in Lubbock. “The deaths that we’re seeing announced today and yesterday―which are now over 100―those are people who likely contracted COVID-19 in late May. “The worst is yet to come as we work our way through that massive increase in people testing positive.” Texans will also likely see an increase in cases the coming week, Abbott said, and people abiding by his face mask requirement might be the only thing standing between businesses remaining open and another shutdown. “The public needs to understand this was a very tough deci-

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sion for me to make,” Abbott told KLBK of his face mask mandate. “I made clear that I made this tough decision for one reason: It was our last best effort to slow the spread of COVID-19. If we do not slow the spread of COVID-19… the next step would have to be a lockdown.” Abbott has pushed that message repeatedly in television interviews. But he emphasized July 10 that another shutdown was not imminent and he pointed to steps he has taken so far to scale back reopening in an effort to curb the spread of the coronavirus, including the mask order and a requirement that bars, once again, close their doors. He has also tightened restaurant capacity limits. Texas reported 100 more coronavirus deaths on July 9, another record. In three live television appearances July 10, Abbott acknowledged that his mask order―that Texans in counties with more than 20 cases wear masks in public—was neither popular nor convenient, but said it was important for everyone to join in the effort. His plea to Texans comes as nearly 80 Texas counties have opted out of the order

order, while others are refusing to enforce it. “It’s disappointing,” Abbott told CBS Tyler of government entities who defy his mandate. “I realize that a murderer or rapist or robber is far more serious to concentrate on. However, I know this also: If we do not all join together and unite in this one cause for a short period of time of adopting the masks, it will lead to the necessity of having to close Texas back down,” he said. “That should be the last thing that any government wants.” As of July 9, 2,918 Texans had died of COVID-19. The state also reported nearly another 10,000 new cases of the disease. Nearly 9,700 people were in Texas hospitals on July 9, too, the highest number since the pandemic began. With cases of the virus and related hospitalizations rising at alarming rates, Abbott expanded his ban on elective medical procedures July 9 to cover more than 100 counties across much of the state. On July 10, he also extended his

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disaster declaration for all Texas counties in response to COVID-19. “If we can get people across the state … to wear face masks, we will be able to keep the state open,” Abbott said in an interview with KSAT. “We will be able to reduce hospitalizations. But if this is not encouraged, if people do not adopt the best practice of wearing a face covering, it will lead to an increase in this rapid spread of COVID-19.” In a statement following Abbott’s interviews, the Texas Democratic Party said any further shutdowns would be Abbott’s fault. “By reopening Texas prematurely, Abbott put all of us at risk for rising cases and a second shutdown,” said spokesman Abhi Rahman. “That’s exactly what has happened so far. Abbott’s mismanagement of the coronavirus crisis has made Texas one of the most dangerous states to live in, completely tanked our economy, and shown the entire world just how incompetent Trump and Abbott are.” We thank The Texas Tribune for reprint permission.

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LA Lawmakers Advance Lawsuit Bill, Tax Break Expansion by David Jacobs, The Center Square

The Louisiana Senate on June 29 approved bipartisan legislation that would make sweeping changes to how the state’s legal system handles car insurance claims. Though other Republican-driven bills proposed during this year’s regular and special sessions make similar changes that supporters argue could lead to lower auto insurance rates, House Bill 66 by Mandeville Republican Rep. Richard Nelson is unique in attracting outspoken support from prominent Democrats. “I’m going to urge the governor to sign it, not that that means anything,” said Sen. Cleo Fields, a Baton Rouge Democrat. Gov. John Bel Edwards vetoed Senate Bill 418 from this year’s regular session, in part because it did not include a mandate to lower insurance rates. The bill called for a 10% reduction but allowed insurers to opt out if they can convince the insurance commissioner that they can’t afford to do so, which Democrats considered a huge loophole. The provisions in Nelson’s bill would expire if auto insurance rates don’t go down by at least 15%, which Fields cited in declaring his support. It also includes a ban on charging women more based on their gender, which many Democrats also favor. “God bless you, Sen. Fields,” said Sen. Heather Cloud, a Turkey Creek Republican. “We all give up a little bit [with this bill.]” House Bill 66 contains several provisions similar to those found in other bills considered this year. It extends the amount of time available to file a lawsuit over a

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motor vehicle claim from one year to two, which theoretically gives both parties time to reach an agreement without litigation. It allows plaintiffs to retain their right to sue an insurance company directly, which other Republican bills sought to end, though it restricts the jury’s ability to know whether the defendant had insurance. The idea here is that knowing the insurance company will pay and not the defendant might prejudice the jury. Like House Bill 57 by House Speaker Clay Schexnayder, House Bill 66 would lower the amount at stake to trigger the right to a jury trial to $10,000 from $50,000, by far the highest in the nation. The bill would bar plaintiffs from collecting damages if their percentage of fault is greater than the combined percentage of fault of all other persons found to have contributed to the alleged injury, death or loss, which is a defendant-friendly wrinkle not addressed in other bills. Senators voted 35-3 to send

HB 66 back to the House, where it is possible some of its provisions could be added to House Bill 57, lawmakers said. The speaker’s bill was in a conference committee June 29 to resolve differences between the House and Senate versions. Also on June 29, the state Senate voted 33-2 to approve House Bill 59, which would limit schools’ liability for potential lawsuits by students, teachers or other workers alleging exposure to COVID-19. An earlier version of the bill wouldhave included lawsuits over any infectious disease. The bill includes both public and private schools, including K-12 and higher education. Schools would not be protected if they fail to follow the policies set by the school and its governing body. Senators also approved House Bill 19 on a 28-9 vote and sent it back to the House. The bill would make retailers, restaurants and hotels with no more than 50 employees eligible for the state’s Quality

Jobs incentive program, which subsidizes creating new jobs. Senators amended the bill to specify that only retailers harmed by COVID-19 are eligible. Those types of business currently are not eligible for the program because they don’t drive economic growth, skeptical lawmakers said, adding that the current economic uncertainty made it unwise to commit to new tax breaks. But much like with other new tax cuts and incentives that a business task force is pushing for this year, supporters said the change would benefit struggling businesses and their workers, ultimately helping to support the state’s tax base. The special session must end by 6 p.m. June 30. Lawmakers were planning for a long day June 29, with the “must pass” state budget still to be finalized. We thank The Center Square for reprint permission.

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Tesla Cybertruck Factory: Tulsa’s Underdog Campaign Giving Austin’s Bid a Run for Its Money by Simon Alvarez, Teslarati

The site of Tesla’s Cybertruck Gigafactory has not been finalized yet, though reports suggest there are now only two cities under consideration: Austin, TX, and Tulsa, OK. Between the two cities, it initially appeared Austin may be a shoo-in for the electric car maker, considering Texas’ ties with SpaceX, CEO Elon Musk’s private space venture. But if there is something that has become evident in recent weeks, it is the fact Tulsa will not give up its shot to net Tesla’s next factory without a fight. The final decision about the site of Tesla’s next electric vehicle factory is expected to be relayed in a few weeks, perhaps during the company’s upcoming second quarter earnings call. As the days count down to the fateful date, the Tulsa vs. Austin race is heating up, with the underdog from Oklahoma seemingly gaining some momentum against Austin, which seems to be encountering some speed bumps in its efforts to secure the Cybertruck Gigafactory. Travis County, home to Austin,

is expected to vote this week on a portion of 10-year tax rebates that total more than $65 million. However, not everything is going smoothly. Similar to its experience in Gigafactory Berlin, Tesla’s impending arrival has received resistance from a number of local groups. During a hearing with the Travis County Commissioners Court last week, for example, representatives from local churches, workers groups and unions expressed concerns about the electric car maker and its proposed incentives. These issues, at least for now, do not seem to be present in Tulsa. As noted in a Reuters report, Oklahoma has signed a nondisclosure agreement about its incentives package for Tesla, though Commerce Secretary Sean Kouplen noted its bid is comparable and at parts even better than Austin’s. The bid includes business and personal tax breaks, and most of them are already guaranteed under state law. This means the approval of the incentives in Tulsa will not require the kinds of public votes that have already caused several delays in Austin. And this is just the tip of the

iceberg. Online, the city’s Big F*cking Field Twitter account is on high gear, and all over Tulsa, Tesla fever has pretty much set in. Tulsa’s famous Golden Driller statue has been fitted with a Tesla logo on its chest and a face that eerily resembles Musk. The city has also secured thousands of signatures from engineers who have pledged to move to Tulsa if Tesla decides to set up shop in the city. Local retailers have caught the Tesla bug as well. In a statement to the publication, Kouplen noted his children came home recently with a photo of a Tesla-themed snow cone, and a local pizzeria has pledged to give away free pizzas for the city’s would-be Tesla employees. “The response here continues to be overwhelming. In the time that we’re in, having something positive to hold on to or grab is really making a difference,” Kouplen said. Quite interestingly, Tesla appeared to have been set on Austin for the site of its Cybertruck Gigafactory. But following reports last month the company had purchased land in Texas, Musk clarified Tesla has not

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made a final decision yet. With this, Tulsa seemed to have put the pedal to the metal, culminating in Musk visiting the city earlier this month and being hosted by Oklahoma officials at a massive field that would be the potential site of the upcoming factory. Pictures of the meeting, which featured the CEO candidly speaking with officials, were shared online by Oklahoma Gov. Kevin Stitt. Oklahoma officials were scheduled to make their pitch to dozens of Tesla executives in a Zoom call on July 13. Regardless of the results of this, however, one cannot deny the admirable grassroots push Tulsa has made to make it this far in the race for the Cybertruck Gigafactory. In a previous comment, Kouplen noted that even if Tulsa loses to Austin this time around, it does not mean the city will never get a Tesla facility. “This won’t be the last factory they build or the last investment they make. We’re building a relationship with Tesla that will continue regardless of what happens this time,” Kouplen said. We thank Teslarati for reprint permission.

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Gov. Edwards: Louisiana Not Ready to Loosen Restrictions Meant to Control COVID-19 by David Jacobs, The Center Square

Louisiana is not ready to further loosen the restrictions placed on businesses meant to control the spread of COVID-19, Gov. John Bel Edwards said June 22. The decision comes amid a recent increase of cases that cannot be explained by an increase in the number of tests. The number of COVID-19 patients in hospitals also has been rising, and on June 22, the state reported its largest increase of hospitalizations since April. The rising number of patients in hospitals, which was 630 at last count, is particularly troubling, though there are still enough hospital beds in every region to treat the patients that are coming in, officials said. “It is a trend in the wrong direction,” Edwards said. Louisiana has recorded more than 3,000 deaths from COVID-19 and more than 50,000 total cases since the pandemic began. Officials believe almost 40,000 COVID-19 patients have recovered. Louisiana since June 5 has

been in “phase two” of the federal government’s road map to lifting restrictions. Under phase two, businesses and organizations in Louisiana have been limited to 50% of

their normal capacity, while bars that don’t serve food are supposed to restrict themselves to 25% of capacity. Workers who deal with the public are expected to wear masks and ensure customers can maintain distance between themselves and other patrons. People who are considered to be particularly vulnerable to

serious complications caused by COVID-19 because of their age or underlying health conditions are asked to stay home if possible, and everyone is asked to limit the number of trips they make outside the home. “We are disappointed that the state is not yet moving to phase three of our recovery and hope that we can get back on track as soon as possible,” Louisiana Association of Business and Industry President Stephen Waguespack said. “Since this pandemic started, the vast majority of Louisiana’s businesses have worked hard to follow health guidelines, but driving businesses and individuals into increasingly harmful economic conditions is a significant threat to everyone.” As in other states, the number of Louisianans filing for unemployment benefits has soared over the past three months because of coronavirus restrictions. More than 23,122 new claims

were filed in the state in the week ending June 13, and existing unemployment claims climbed to more than 306,358, according to the U.S. Department of Labor. The federal government suggests several factors for officials to consider when deciding whether their state is ready to let businesses operate more freely while still protecting public health. Those include decreasing reports of COVID-like illnesses, decreasing new case counts, decreases in the percentage of tests administered that come back positive and decreasing hospitalizations. Louisiana does not meet the federal guidelines for moving into the next phase of fully reopening its economy, Edwards said. He warned on June 18 that many residents were were not practicing the mitigation measures such as wearing masks and maintaining distance from people who are not part of their household. We thank The Center Square for reprint permission.

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NABC Recycled Rides® Program Presents Two Vehicles to Deserving Recipients in Dallas Recently, two deserving Dallas veterans experienced a life-changing event―the presentation of vehicles to provide them independence and the ability to work and take care of their families―thanks to the National Auto Body Council Recycled Rides® program, along with car donors State Farm and Allstate and collision repair partners Gerber and Service King. The presentations were originally scheduled as part of the NABC™ Pars for Cars Golf Fundraiser in Dallas, but were postponed in light of the pandemic. “As we return to our new normal way of life, we are excited to restart our scheduled presentations to deserving recipients around the country, albeit in a safe, socially distanced manner following all local requirements,” said Bill Garoutte, president and CEO of the National Auto Body Council®. “We oﬀer a ‘thank you’ to these veterans for their service, and congratulations on their new vehicles. We also oﬀer our sincere appreciation to our insurance and collision

repair partners on this project, as well as those around the country who have a number of NABC Recycled Rides® projects in queue. We are all ready to get back to our mission of changing and saving lives every day.”

Perzell Hudson Jr. received a 2013 Ford Fusion donated by Allstate and repaired by Service King at SK10 in North Richland Hills, TX. Axalta and Safelite also contributed to the repair. Hudson joined the U.S. Air Force in 1987, where he concentrated on the fields of HVAC and

graphics. While in uniform, he was deployed to UAE, Saudi Arabia, Jordan and Iraq. He retired after 21 years of honorable military service, and now he spends his time giving back to the homeless veterans in his community. This vehicle will allow him the freedom to provide support to his military family, visit his own beloved family in Mississippi and give him the reliable transportation he desired for future employment. Hudson was selected by Allies in Service. Tammy Wierl received a 2013 Hyundai Sonata that will provide reliable transportation to her new job. The vehicle was donated by State Farm and repaired by Gerber Collision, 8730 King George Drive, Dallas. Wierl, an Air Force veteran, had a prestigious military career with assignments in places like Las Vegas, Germany, Washington, D.C., and even Turkey. Wierl never thought she would spend more than four years in the military, but ended up making it a career. She earned a Top Secret security clear-

ance and even had the chance to meet Colin Powell. Wierl left the military to take care of ill family members, and found the transition to civilian life challenging. Through Allies in Service, which nominated her for the program, she was able to develop a resume and secure a position with a promising future. NABC Recycled Rides® is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides® program in 2007, members of the National Auto Body Council have donated more than 2,500 vehicles valued at more than $36 million. Additional partners in the NABC Recycled Rides® presentation included 1-800 Charity Cars. Source: NABC

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State Farm to Further Decrease Auto Insurance Rates in Louisiana State Farm Insurance Co. has been approved for an overall auto insurance rate decrease of 9.6% in Louisiana, the state insurance department reported. State Farm’s rate reduction most recently approved by Louisiana Insurance Commissioner Jim Donelon follows approved decreases of 4.5% in 2018, 6.5% in 2019 and 2.3% in March, which total a 23% decrease in the last two years. The effective date of State Farm’s current reduction is Aug. 24 for new and renewal policies. Louisiana’s private passenger auto insurers continue to return auto premiums to Louisiana driv-

ers in response to emergency declarations and stay at home orders in place throughout the U.S. and Louisiana as a result of the COVID-19 pandemic. Insurers are seeing significantly fewer miles driven, which has let to a reduction in the frequency of accidents and claims filing, as well as ultimate lawsuits being filed. Donelon said in a media release that auto insurers in his state have provided drivers with more than $202 million dollars in rebates or refunds during the COVID-19 pandemic. We thank the Insurance Journal for reprint permission.

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Asbury Automotive Group Announces Acquisition of Park Place Dealerships in TX Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., entered into a deďŹ nitive agreement to acquire certain assets of Park Place Dealerships, one of the countryâ&#x20AC;&#x2122;s largest and most prominent luxury dealer groups, for $685 million of goodwill and approximately $50 million for parts, ďŹ xed assets and leaseholds, excluding vehicle inventory.

â&#x20AC;&#x153;We are pleased our business model and performance allowed us to navigate the current environment and re-engage on a highly strategic acquisition that will make us an even stronger company,â&#x20AC;? said David Hult, Asburyâ&#x20AC;&#x2122;s president and CEO. â&#x20AC;&#x153;We have seen our new and used volume sequentially improve each week in May and June with higher proďŹ t per vehicle. We have also seen our parts and service business im-

prove in June as the economy gradually opens up. â&#x20AC;&#x153;Strong May and June performance, along with cost restructuring eďŹ&#x20AC;orts, have driven higher proďŹ tability and cash ďŹ&#x201A;ow, giving us convic-

enhance our total portfolio and add approximately $1.7 billion in expected annualized revenues.â&#x20AC;? â&#x20AC;&#x153;We are thankful to all of our employees who have worked so hard over the last few months to

manage through this pandemic. The talent in our organization and the resilience of the dealer model have put us in a position to acquire Park Place and become a more diversiďŹ ed company.â&#x20AC;? The operating assets to be acquired include 12 new vehicle franchises, all of which are located in the attractive Dallas/Fort Worth market: three Mercedes-Benz, three Sprinter, two Lexus and one each Jaguar Land Rover, Porsche and Volvo. The acquisition will also include the Park Place auto auction and two collision centers.

CIECA announced July 20 that Paulette Reed has been named its new business analyst/technical project manager, eďŹ&#x20AC;ective the same day. In her new role, Reed will be responsible for coordinating and managing the organizationâ&#x20AC;&#x2122;s committee meetings and activities, as well as the CIECA Standards for the collision repair industry. This includes providing and tracking all project documentation and activities for the organization. Reed will replace Charley Quirt, CIECAâ&#x20AC;&#x2122;s current technical project coordinator, who will be retiring soon. Quirt has assisted CIECA for more than 18 years. For the past 25 years, Reed was a member of the ARMSÂŽ technical team at Enterprise Rent-A-Car. Throughout her career, she has worked on projects that used the CIECA Standards.

Source: Asbury Automotive Group

Source: CIECA

â&#x20AC;&#x153;This acquisition will enhance our total portfolio and add approximatelyÂ $1.7 billionÂ in expected annualized revenues.â&#x20AC;? â&#x20AC;&#x201D; David Hult tion to move forward with a revised Park Place acquisition,â&#x20AC;? Hult continued. â&#x20AC;&#x153;In March, we had to step away from the transaction due to lack of visibility around COVID-19, but after seeing the rebound oďŹ&#x20AC; the April low, we can proceed with a more reďŹ ned deal under more ďŹ&#x201A;exible and favorable terms. â&#x20AC;&#x153;Park Place is highly regarded as one of the best and most efďŹ cient operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and long-tenured team members throughout the high growth Dallas/Fort Worth market,â&#x20AC;? Hult added. â&#x20AC;&#x153;This acquisition will

CIECA Names New Technical Project Manager

New Arizona Law Results in Auto Insurance Premium Increase People who live and drive in Arizona should brace themselves for higher auto insurance premiums. A new law is increasing the minimum amount of coverage required and this will result in higher rates for most drivers. JeďŹ&#x20AC; Arnold, author of â&#x20AC;&#x153;How to Beat Your Insurance Company,â&#x20AC;? has advice to help drivers avoid paying too much. The Arizona Department of Insurance announced that new auto insurance minimums will go into eďŹ&#x20AC;ect on July 1. Before July 1, drivers were required to carry $15,000/$30,000/$10,000 coverage. As of July 1, drivers will need to carry $25,000/$50,000/ $15,0000 coverage. Any new policies purchased on or after July 1 will have the higher limits. Additionally, drivers who currently have a policy with the lower limits will see their limits automatically increased when the policy renews. When this happens, premiums will likely increase as well. As the owner of an independent insurance agency and a policy-

holder himself, Arnold is passionate about insurance. After realizing heâ&#x20AC;&#x2122;d paid nearly half a million in life, home, auto, health and umbrella insurance premiums over about 20 years, he was inspired to write â&#x20AC;&#x153;How to Beat Your Insurance Company,â&#x20AC;? a book that delivers insightful tips and strategies to avoid overpaying for coverage. Considering Arizonaâ&#x20AC;&#x2122;s new requirements, drivers should contact their insurance agents immediately. If coverage has become unaďŹ&#x20AC;ordable, Arnold recommends discussing coverage options. Drivers may be able to bundle coverage or secure other discounts to help them save. Many people are driving less because of the pandemic, and this may also qualify them for savings. Arnold has more money saving tips to oďŹ&#x20AC;er insurance buyers and he is available for interviews and guest appearances with local media to speak on this topic. Learn more and connect with Arnold at https://jeďŹ&#x20AC;arnold.com/ Source: JeďŹ&#x20AC; Arnold

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I-CAR® Expands Audi Training I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced June 30 a collaborative partnership with Audi of America’s Collision Repair Network, in which I-CAR will deliver expanded training to all new network members as Audi seeks to augment the knowledge of technicians and shop management, thus bolstering customer care, amid a new era of vehicle sophistication and repair complexity. I-CAR Gold Class® certification has been a “foundational pre-requisite” for any member of Audi’s Collision Repair Network, prior to progressing to Audi-specific repair training, said Mark Allen, collision & equipment manager, Audi of America. Now, Audi is “deepening its knowledge and skills benchmark” for all new network members by expanding I-CAR training requirements to include approximately 93 online, virtual and live Professional Development Protocol (PDP) courses, effective July 1. Source: I-CAR

Christian Brothers Automotive Foundation Helps Launch ACE Scholarships in Austin Jonathan Carr, president of Christian Brothers Automotive Foundation, and his wife, Beth, are providing low-income families with equal access to education through their commitment to back the launch of ACE Scholarships Austin. “Creating educational opportunity for low-income families is as important now as it has ever been,” said Norton Rainey, president of ACE Scholarships. “I am incredibly grateful for Jonathan and his eﬀorts to increase the number of children we serve.” With Carr’s commitment to bring ACE Scholarships to Austin, the organization will have a presence in ﬁve major metropolitan areas across Texas, including Dallas, Fort Worth, Houston and San Antonio. The Carrs and Christian Brothers Automotive have a long history of serving the community. Each year, their franchises, with the help of local ministries and churches, give free services to people in need of oil changes and safety repairs. This year, they launched Hub Garage, a project that provides single

moms who lack transportation with reliable vehicles. In addition to his backing of ACE Scholarships Austin, Carr will join the ACE National Advisory Board, where he will work to provide children of low-income families with access to private schools in grades K-12. Since 2000, ACE Scholarships has awarded moe than 42,000 scholarships worth more than $102 million, giving children from low-income families across the nation the chance to succeed. “And succeed they have,” said John Oliver, ACE Scholarships chief programs oﬃcer. “Ninety percent of ACE students graduate high school. And most of our graduates go on to college.” In fact, ACE scholars graduate from college at a rate nearly double that of their peers, with 73% graduating with a bachelor’s degree or higher. In Texas, there are more than 3 million children of low-income families. And with the current COVID-19 crisis, these numbers are expected to rise.

Bound by income, many Texas children are trapped in schools that are not the right ﬁt for them or their families. Yet, there are more than 10,000 open desks at ACE partner schools across Texas—schools eager to make a diﬀerence in a child’s life. ACE Scholarships works to put deserving students in these schools by covering part of a student’s tuition cost. The family typically pays for a portion of the tuition, and the school covers the rest. Through this model, everyone is invested in the child’s success. “We are excited to bring our history of success to the people of Austin,” said Shelley Rogers, president of ACE Scholarships Houston. “We are just starting to see the lasting impact COVID-19 will have on our education system. Families need programs like ACE now more than ever. I am incredibly grateful for Jonathan, Beth and Christian Brothers Automotive Foundation for advocating on behalf of children and education during this time of crisis.” Source: ACE Scholarships

18 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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Maaco Prepared to Service Customers Safely As the COVID-19 Pandemic hit the U.S. in March, Maaco Collision Repair and Auto Painting, part of the Driven Brands family of automotive brands, implemented a three-stage strategy for dealing with the crisis and helping its franchisees plan for the future. Maaco’s ﬁrst step was rallying around their franchisees and owners to help them navigate the uncertainty. The second stage of support was to prepare the centers to address the new operating procedures in a COVID-19 era, keeping customers and employees safe. Maaco named the program R.A.M.P., which included a six-week series of webinars on such topics as maintaining social distancing on the production line, implementing a touchless intake process, proper disinfecting procedures and proper use of personal protective equipment. The network of more than 400 locations is now in stage three, as all centers are open for business. Source: Maaco

Continued from Cover

ABAT Cancels COVID-19, Gov. Greg Abbott mandated face coverings and restricted indoor gatherings to a maximum of 10 people, with some exceptions. As of July 20, Texas has reported more than 338,000 cases of the novel coronavirus. In order to gauge the comfort level with a physical event, ABAT surveyed attendees and exhibitors, ﬁnding “the response was split down the middle,” according to Tuggle. “Many Texans are ready to venture out with proper precautions taken, but about 50% of the vendors were either unable to attend or didn’t feel comfortable attending,” Tuggle said. “The vendors who were uncomfortable attending were mostly from out of state, and with vendors also under tight budgets and corporate travel restrictions, a successful show is not possible this year.” Although ABAT “extensively explored virtual options” for transi-

tioning the trade show, “we weren’t going to go virtual unless we could do it right,” Tuggle said. “Unfortunately, going virtual at the scale we wanted was just too expensive, given the circumstances, but everyone was very understanding; since we were among the last to cancel, most of the shock over event cancellations had worn off,” Tuggle said. “The Texas Auto Body Trade Show is ABAT’s biggest fund raiser each year, and without it, we will have to work very hard to supplement those lost funds. Still, we felt that pouring our efforts into some regional fundraisers and a few educational meetings would be better for the association and its members.” ABAT will begin with a virtual training session at 1 p.m. CT July 22, focused on the financial aspect of operating a collision repair business. Registration is available here http://events.r20.constantcontact. com/register/event?llr=tm5ucq9ab&oeidk=a07eh6y2ah7a3fcfb50 The association also hopes to host a skeet shoot in Dallas and a golf tournament in Austin later this year, but plans are staying very fluid

for now. “We aren’t making ﬁrm plans until we know for sure that we will not have to cancel the event,” Tuggle said. Following a successful 2019 Texas Auto Body Trade Show, ABAT merged with the Houston Auto Body Association (HABA.) However, the merger was not fully completed until Feb. 1, only about a month before COVID-19 hit. “During this time, ABAT has been focused on being a valuable resource to all its members across the state, but we look forward to less chaotic times when we can really focus on each region, especially Houston,” Tuggle said. “We absolutely plan to grow our membership over this next year.” Next year’s Texas Auto Body Trade Show is scheduled for Sept. 17-18, 2021. “ABAT is already making plans for an exciting show, and we are looking forward to making 2021 our best year yet!” Tuggle said. For more information on ABAT, visit abat.us.

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Continued from Cover

Taking Action Christy Jones of R Jones Collision 1 in Des Moines, IA, offered a “pay it forward” campaign in which each of the shop’s customers in May and June received a $25 gift certificate to a local restaurant, and could designate a charity to receive a $50 donation from the shop.

getting supplements handled, “to keep cash flow up and make sure all the bills are paid and we still make money.” At Zara’s Collision Center, in Springfield, IL, “We are upholding our commitment to bringing new talent into our industry by hiring fulltime a recent high school graduate who had completed a semester-long internship during the pandemic,” shop owner Brad Zara said. “We have also brought on another recent graduate for a summer internship even though business is down.” Adam Reiter of Golden’s Paint & Body Shop in Hot Springs, AR, said the shop has continued to spend all reimbursement the shop has received for added “COVID-19 cleaning” of vehicles to buy gift cards for local businesses through a chamber of commerce program that also matches the funds to buy groceries for displaced workers. “Five thousand dollars has been raised by our shop,” Reiter said. “The gift cards will be used as prizes for customers and bonuses for employees.” Shifts in marketing Zara and Reiter are also among the shops reporting a variety of changes in their marketing efforts given what’s happening in their area. Reiter said he brought in a film crew to shoot a new television ad after the shop was “deeply cleaned and completely repainted.” “We have been utilizing clever messages on our Facebook page to let people know that we are continuing to safely serve them throughout the pandemic,” Zara said. Todd Doyle of Arrowhead Auto Body in Hermantown, MN, has taken a different approach. “We had changed our radio and TV ads to COVID-related topics, telling customers that we are open and how we are cleaning for their safety,” Doyle said. “But we have changed back all our advertising to our normal ads because I’m personally sick of all the ads talking about COVID.” John Naylor, an estimator and manager at Heritage Collision Center in Sherman, TX, said the shop has stepped up efforts to encourage and thank customers for posting online reviews.

Zara’s Collision Center, in Springfield, IL, is trying to use clever messages in its social media to let people know how the shop is continuing to safely serve them during the pandemic

“We’re offering employees later start times so they can help with family or household needs,” the owner of a Chicago area shop said. “We’re offering them four 10-hour days, if that helps, and with that, we’re actually seeing more customer volume in the evening hours.” Auto Craft Collision Center in Kewaskum, WI, extended through June a 10% discount, up to $250, it began offering customers earlier this spring. Carney Cataldo of Cataldo’s Collision in Dubois, PA, gave all employees a $1,000 bonus. A shop in the Pacific Northwest supplemented its painters’ wages to help ease the downturn in flat-rate hours, and an Arizona shop has given commission employees a guaranteed minimum salary equivalent to four days of work, and isn’t requiring them to work more than four days a week. A working manager at a shop in Iowa is letting the shop’s other technicians do more of the production work while he spends more time in the office

Josh Smith, operations manager at Collision Specialists in Jackson, TN, said although the shop doesn’t like photo-based estimates, it is doing some as a selling tool. One California shop owner said he is contacting more mechanical repair shops to exchange customer referrals. Another said she has made sure all her employees “have business cards and are encouraged to hand them out.” The direct repair coordinator at a two-shop collision repair business in Pennsylvania said he’s getting more involved with several community Facebook pages. “Believe it or not, it helps immensely,” he said. Mask policies vary Among more than 200 shops responding to a survey in June, about 30% were requiring customers to wear masks to enter the shop office. “The door is locked; people have to ring a bell before they come in—with a mask,” Bill McElroyofBillMcElroyAutoBodyinBensalem, PA, said. Many shops said they are leaving it up to the customer to decide. “Whatever they are comfort-

able with. Some do, some don’t,” said Candace Dietzen, owner of The Body Shop of Barrington in Lake Barrington, IL. “We have masks available for customers upon request,” said Tyler Perkins, collision center manager at Ford of Clermont in Florida. “My employees have to wear masks whenever a customer enters,” a Georgia shop owner said. But policies regarding masks appear to be in flux from shop to shop; several shops said they had been requiring customers to wear a mask earlier, but stopped at some point in June. A shop owner in Oregon said he hadn’t been requiring it, but would if state policy called for it—something that went into effect in late June. And the percentage requiring masks for customers is somewhat under-reported because at least 10% of those saying they don’t require a mask also said such a policy isn’t needed because customers aren’t being allowed inside. “No one enters our building. We meet them in the parking lot in full PPE gear,” said Mike Kime of Kime Collision in Standish, MI.

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Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

An Overview of Corrosion Protection Products: Part 1 of 2 Let’s start with a test on corrosion protection.

pany would not pay the extra $3,000 to weld the roof in place as outlined in the Honda repair procedures. 1. T or F: In Honda’s latest bulletin The Seebachans purchased the on corrosion, it states epoxy primer repaired vehicle and were involved in should only be sprayed to put down a front-end collision. The roof gave a light coat of epoxy primer. way and caused the quarter panels withMotors David 2. T or F: General nowMcClune al- to buckle inward, puncturing the gas lows the use of DTM sealers, which tank and causing the vehicle to catch have built-in corrosion protection fire. materials, on bare metal. Last February, at Verifax’s annu3. T or F: General Motors’ black al symposium, the Seebachens’ Honprimer is used on bare metal surfac- da Fit was on display. You can read es that will be bonded. all about it, but when you see the ve4. T or F: Toyota allows limited use hicle in person, it is a life-changing of weld boding on its vehicles. moment. 5. T or F: Toyota has a recommended weld through primer on its webwith John Yoswick site. 6. T or F: Fiat Chrysler does not recommend weld through primer on weld parts. 7. T or F: Honda, like Toyota, recommends a coat of epoxy primer on bare metal before applying body filler. 8. T or F: Honda recommends weld through primer when MIG welding and squeeze-type resistance weldwith Richard Steffen ing. 9. T or F: A new quarter panel has been installed. Painting the backside of the rear body panel is included in Fig. 1 the repair adjacent welded panel as per CCC guide. 10. T or F: Toyota considers adhesive as corrosion barrier. 11. When replacing a factory hood, which of the following items does Toyota say need to be applied? Mark with John Yoswick all that apply: seam sealer, cavity wax and/or chip resistance primer.

surance industries and suppliers did to these two individuals for $3,000. It is shameful. It all boils down to the fact OEM procedures were not followed in order to save a few dollars. The insurance company in this case said “it specifically denies that it coerced or forced John Eagle to perform substandard repairs” and “denies that it coerced or enticed any body shop to not follow vehicle manufacturer’s procedures, cut corners, take safety shortcuts or do anything that jeopardizes members of the motoring public.” What this means to the repair industry is you are all by yourself when something goes really wrong. I am going to take a look at one repair process, corrosion protection, and see if you are following OEM procedures when restoring a vehicle to its pre-loss condition.

California Autobody Association

Year in Quotes

Are you using the line item “replace corrosion protection”? Let’s have an understanding up front—“replace corrosion protection” is not a line item, it is a repair process. Depending on the repairs being performed, it might need one or two items to restore corrosion protection, but in the case of quarter panels being replaced, it uses upwards of 11 or 12. I know the insurance companies put that on their estimates, but the legal document is your signed repair order with your customer (and not the insurance company’s) and you need to list each item that goes into the repair of the damaged vehicle. The other legal aspect of using the term “replace corrosion protection” is you could be liable for any and all problems in the future related to corrosion. As with the Seebachens’ case, you are all alone if you need to See Corrosion Protection, Page 42

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How many of you watched the interview of Marcia and Matthew Seebachan at CIC (www.repairer Fig. 2 drivennews.com/2019/12/05/seethe-cic-interview-with-john-eagleThe couple sued the body shop plaintiffs-matthew-and-marcia- and was awarded $31.5 million. seebachan/)? The couple is totally disabled for If you are not familiar with the life, they cannot have children and with Karyn Hendricks case, John Eagle Collision had a Hon- Matthew is in constant pain and has da Fit come into the facility with hail some brain damage. damage to the roof. The shop made It is imperative you watch the the decision to replace the roof using video to get a better understanding adhesive, because the insurance com- of what the collision repair and in-

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

NEW MEXICO

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Mike Maroone Honda

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Honda of San Marcos

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Dept. Hours: M-F 7-6; Sat 7-5 rick.williams@mikemarooneauto.com

Mile High Honda Denver

800-548-4730 303-369-7800

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Albuquerque

Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com TEXAS

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

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800-943-4227 504-368-5687

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Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com

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Salt Lake City

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Sterling McCall Acura Houston

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 25

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with Stacey Phillips

Tips for Busy Body Shops

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.

with Stacey Phillips

Industry Veterans Erick and Shelly Bickett Share Insight About Collision Industry When industry veteran Erick Bick- in a body shop owned by a couple ett was growing up, he aspired to be of dealerships in Anaheim, CA, and an airline pilot like his dad. He real- eventually purchased the business, Stacey Phillips ized that a 9-to-5with job wasn’t for him. Auto Center Auto Body Inc. Erick always had an interest in We operated out of a 3,500cars and eventually opened a body square-foot facility behind a used shop with his partner, Shelly Bickett, car lot. Three years later, we built a who had a background in accounting. 30,000-square-foot state-of-the-art location at an auto mall where there were a number of dealers in one location. The business eventually bewith Victoria Antonelli came part of Fix Auto USA and grew to include 165 employees at nine locations, spanning over 200,000 square feet and bringing in more than $30 million in annual gross revenues.

My SEMA

Shop Strategies

Product Innovation

with Ed Attanasio Shelly: I never intended to be in the

body shop business. I went to school for accounting and was working at New York Life Insurance. When we Erick and Shelly Bickett bought into the business, I start That was more than 35 years ago. ed doing the accounting part time. Since then, Erick and Shelly have Eventually, I worked there full time founded a number of organizations in when we purchased the company. with Gary Ledoux the collision repair industry. These in- At the time, most body shop clude Caliber Collision, the Collision managers and owners had grown up Industry Electronic Commerce Asso- in the business and didn’t have financiation (CIECA), Cyncast, Fix Auto cial or accounting experience. Erick USA and the Collision Career Insti- is a great businessman and his finantute (CCI), which supports industry cial expertise helped us a lot and set apprenticeships. us apart from our competitors. with Stacey Phillips Autobody News recently talked to Erick and Shelly about their caHow did you both get started reer highlights as well as advice to How did your involvement in shops on how to be successful in the 20 Groups eventually lead to the forfuture in light of COVID-19 and in- mation of Caliber Collision? dustry changes. Shelly: When we started our first Mike Anderson How did with you both get started business, we became involved in a in the collision repair indus- 20 Group with other like-minded try? individuals. We’ve always found the networking to be very beneficial and Erick: While in college, I took a job it’s a great way to share knowledge driving a tow truck. I eventually and best practices. It also gives you managed the tow company and then the ability to have a bigger footprint transferred to the owner’s body shop. to work with insurance companies. Later, I managed a dealer group. I Otherwise, your body shop is like a also obtained my license to become lone ship on the ocean. an insurance agent. The shop owners would mea Early on, I realized I could be sure themselves against themselves, competitive in the body shop busi- and we soon realized that we needness. Shelly was a big influencer ed to compare ourselves with other in that decision. I was 28 years old shops nationwide. These measurewhen she convinced me to go out ments and numbers are now called on my own. In 1984, we invested Key Performance Indicators (KPIs.)

OE Shop Certification

Erick: The formation of the 20 Group started with a group of California shops coming together to talk about the challenges of software we were all using. At that meeting, we realized the benefit of having discussions about business development issues and this led to the formation of our 20 Group. The industry was going through a lot of change and having the association of great operators was really important. When you are all by yourself, you’re not exposed to different viewpoints and other ways of doing things. Through the 20 Group process, we learned that the best form of continuous improvement is posting results and comparing them among the group. We were all active nationally at that time and a group of six business owners decided to form Caliber Collision in 1991.

Product Innovation

What role have you played in creating technology for the industry?

Erick: It was that learning through the 20 Group that was an incentive to eventually start CynCast in 2000, a technology company serving thousands of collision repair shops that was later sold to Enterprise Rent-A-Car. We built technology predominantly to create transparency around shop performance. In a 20 Group, that’s fairly easy to do because everyone brings in their financials in a common format. Since there wasn’t anything already built for the industry in the late 1990s, we started the Collision Industry Electronic Commerce Association (CIECA), the only industry organization providing standard methods of electronic commerce. Having e-commerce is critically important. The way things are going now with APIs

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(app how pute integ the i tima data CIEC build all in mote Cust syste agem coul web shop

Shel is th Vehi es fr nicia to re look proc

(application program interfaces), and how software components and computers interact, it’s all becoming more integrated, leading to efficiencies for the industry. At Cyncast, we built the first Estimate Management Standard (EMS) data pump. EMS was created through CIECA and we used this standard to build the first EMS pump, replicating all information automatically from remote estimating systems. In the 1990s, we created the first Customer Satisfaction Index (CSI) system in the Collision Repair Management System (CRMS) so shops could share data. We also built many web-based claims tools to be used by shops. Shelly: Another concern for shops is the technology in vehicles today. Vehicles may have technical changes from one year to the next. Technicians may think they know how to repair them, but it’s essential they look up and be well-versed in OEM procedures.

What are some of the challenges and growth opportuni-

ties in the industry? Erick: Entrepreneurs are very proud, and at the same time, they are stubborn. In the late ‘80s and early ‘90s, we watched the transition from adjusted claims to DRPs. At that time, there were highly respected industry leaders who dug in their heels, telling other shop owners not to participate in a DRP. We, on the other hand, saw the value and opportunity and leveraged significant growth from these new relationships. Early on, we worked with insurers to help develop their DRP programs. I’m finding that a similar situation is happening right now in regard to OEM certifications. We’ve been talking about OEM certifications within our Fix Auto franchise network, and we strongly feel that shops have to be certified. At the same time, we see people digging their heels in, even at our own shops asking, “What is the ROI?” Shelly and I decided to move ahead with certification, knowing that it would pay off in the future. Some shop owners don’t think it’s important to be certified with all makes and models of vehicles, but what they

don’t understand is that the first level of change will be filters on First Notice of Loss (FNOL.) As an example, that means if you aren’t certified with Nissan, you aren’t going to be repairing Nissans. Shelly: Vehicle technology is advancing rapidly. First and foremost, we need to repair cars correctly according to OEM procedures and ensure we put people back in a safe vehicle. I hope and pray for and believe that OEMs, insurers and body shops will be completely aligned in the correct repairs of vehicles. We’re starting to see that now with insurers directing work to those shops that have OEM certifications; that’s a great thing.

What are some of the effects of COVID-19 on the collision repair industry? Shelly: I think reacting quickly to COVID-19 and making changes was really important. However, I think we’ll see shops go out of business, whether that’s consolidators deciding to close locations or independents who can’t make it through. Even if

they reacted quickly, we’re going through something very significant. In a very short period of time, some shop owners have lost 50% of their business in weeks. Erick: I think it’s all about how shops respond when coming back to the new market. No doubt, it’s going to be very different than what we experienced before. As a result of the pandemic, we took out the duplication in our business and created efficiencies, but unfortunately, we had to lay off 55% of staff. We learned how to do things differently out of necessity and shame on us if we don’t come back differently and go back to doing things the same way. Smart operators are going to take what they’ve learned from this situation and develop a different structure for their businesses. Those who don’t adjust to the business climate are not going to be competitive.

What do you think the future holds for collision repairers?

Erick: One of the things that our expeSee Erick and Shelly Bickett, Page 34

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Continued from Cover

Serve Through Pandemic Roland Chartier. “Then we extended credit from net 30 to net 60 for our large customers. “The only change we made to our delivery service was to give all drivers face masks, gloves and supplies to sanitize their vans. Customers were no longer required to sign for delivered parts. The drivers asked for names and noted them on the route/ delivery sheets. We had some of our larger accounts order large stock orders just in case the supply chain was interrupted,” Chartier continued. “When other dealers cut staff or service to customers, we would have our outside sales people work those areas extra hard calling shops and letting them know we were servicing the area. We were able to pick up a few new shops with this tactic. It was hard work and a little luck.” In March, April and May, was your wholesale mechanical business (primarily mechanical repair parts sold to tune-up shops, brake shops and general repair shops) up or down and by what percent? Once again, all except three dealers noted their wholesale mechanical business was down. The smallest decline was 5% and the largest 80%, with an average decline of 39%. One of the three “up” dealers was, again, Richmond Ford Lincoln. The other two were unavailable for comment. Have you had to furlough any parts department personnel and if so, who? Sixty-six percent of respondents said they had to furlough at least one person in their parts department. Some had to let multiple people go. This included 13% who furloughed road sales people and 31% who furloughed stock clerks. Those hit the hardest were delivery drivers, with a 47% furlough rate, and counter people, with a 53% furlough rate; 38% of respondents dismissed both a driver and a counter person. One parts manager noted they cut hours but kept the same number of drivers. Have you altered your parts delivery service and if so, how? This was fairly evenly divided, with 49% saying yes and 51% say-

ing no. Fortunately, for body shops, none of our respondents said they completely stopped delivering. Seventy-eight percent of those who made a change chose to limit the number of delivery runs made per day. A few chose to limit deliveries only to select accounts, one limited delivery by mileage and one limited delivery by dollar value of the order. One VW dealer in northern California noted, “We were allotted one

extra time? Parts department personnel have been using the time to clean up their physical department, check bin counts to ensure inventory accuracy, painting, erecting new shelves and general reorganizing. Some used the time for training. Some updated account information. And some parts managers said with furloughed employees, there was no free time—those that remained were just as busy as before.

“We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” — Roland Chartier driver and told to make do.” Several dealers said customers were picking up parts at the dealerships in lieu of a reduced delivery capacity. Some dealers used Uber or a taxi service. How have your customers responded to changes in delivery policies? Overall, respondents noted shops understood the situation and were very accepting that business changes were necessary at the dealer level. One Honda parts manager said that because the shops were operating at reduced capacity, they did not deliver after 2 p.m., and most shops seemed to be OK with that. A parts manager at a California Acura dealer said the shops were just happy the dealership was still open and they were able to pick up parts as needed. How much trouble have you had getting parts from your primary OE brand during the height of the pandemic? Respondents said those OEs with the best fill rate during this time were, in no particular order, Honda, Toyota, Nissan, Hyundai, Kia, Mercedes-Benz and BMW. However, the degree to which other OEs may have had trouble fulfilling dealer orders may or may not have been caused by the pandemic. Civil unrest or other factors outside the control of the OE may have played a factor. Also, parts manager answers may have been influenced by a particular order or two or a particular part or type of part that may have been temporarily unavailable. Assuming your business has been slow, how have you used the

Already, people have started driving again and business have started reopening. In view of the events of the past few months, how do you view the future of your parts dept? ▪ 33% said: “It will return to its pre-virus levels but will take several months. I expect to rehire my furloughed people eventually.” ▪ 27% said: “I plan to retain some of

the changes we made during the pandemic and there will be a ‘new normal.’” ▪ 22% said: “My parts business has changed little over the past few months. I expect to continue on business as usual.” ▪ 18% said: “It will return to its pre-virus levels in a fairly short amount of time. I expect to rehire my furloughed people fairly soon.” One GM dealer in Michigan said, “We are already back to normal. All employees have already returned.” Do you foresee any long-term negative effects from the pandemic and if so, what? Twenty-seven percent of respondents said yes, while 73% said no. Several of those that said yes said it will take a long time for people who have been out of work to recover. A parts manager at a West Coast Mercedes-Bens dealer noted, “I think this will be an ongoing, seasonal issue for a few seasons/years. The collision business will take on the majority of the decline each time.” An unidentified parts manager See Serve Through Pandemic, Page 34

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 29 7/9/20 11:17 AM

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Diving Into the Fascinating World of Fasteners by Ed Attanasio

How many bumper covers, fender liners and plastic shields are currently sitting in the middle of the road in this country? I would guess thousands, and why are they there? Undoubtedly one of the main reasons is that one or more retainers—aka fasteners, bolts, screws, clips and rivets—failed. Why? Due to fatigue, of course, but in many cases it’s because they were incorrectly installed or the wrong ones were used.

CEO Russ Ramsey is launching a website that will enable shops to make a profit on retainers and make it easy to find the correct hardware for each repair

Since 1988, the people at Blue Vista Data Systems (BVDS) in Las Vegas, NV, have created efficient systems to turn lost money into profits when it comes to clips and fasteners. Every auto body shop on the planet has a plethora of retainers with specific applications, and with more than 700 car models out there containing an average of 30 locations requiring them, it’s a big deal. The company recently launched a new website, bluevistadata.com, containing more than 28,000 retainers, broken down by location, OE designation and cost, complete with diagrams and specs for each. With seven programmers working day and night to get the site clicking like a new Tesla, BVDS launched it July 1. The site lists every retainer and its location, and is designed so anyone can use the system without changing their current distributor. For more than three decades, BVDS has been a pioneer in the development of many of the retainer-related inventory and invoicing systems used today. CEO Russ Ramsey explained retainers are small in size and often

forgotten, but their impact on a shop’s profits can be significant. Things like retainers and other smaller items are often not included in estimates. It’s the old Catch-22—f you invest in too many retainers and they never get used, that’s obviously problematic. But if you don’t have the right ones on hand, that can be even worse, possibly cutting into your cycle time. “We have been in this business for a long time and have helped a lot of shops to make money on retainers, by making it easier to find the right ones and invoicing them correctly,” Ramsey said. “Our website has tackled the problems associated with retainers because with this system, all of the information they need is right there, with photos and drawings and an easy way to track them. “It also enables your shop personnel to find out what they might need from the OE dealer prior to the repair.” Annually, the overall number of OE retainers spike because every time an OE gives a vehicle a facelift or re-engineers it, new fasteners hit the market. If you’re not on top of it, you might be lost, especially if you’re working on a 2021 car, for example. That’s why BVDS developed the most complete and comprehensive system out there to keep track some of the smallest, but most important, parts on any automobile. Kurtis Rosenborough is the owner of Certiﬁed Auto Body Center in Las Vegas. He has been purchasing retainers from Ramsey and BVDS for at least 20 years, he said, saving him tons of money and time. “I have used their products and their systems for a long time,” he said. “When cars changed big-time back during the mid-1990s with so much plastic all around, the game changed dramatically. We’re spending approximately $2,000 every month on clips and rivets and couldn’t get reimbursed by the insurance companies until we began using their system. “We never got paid and now we do because our invoices are iron clad, listing exactly what we used and how many of them we installed. It also saves our parts manager time, because he finds the vehicle and all of the retainers are listed. Even some

of our insurance adjustors have used Blue Vista to research all of the hardware required on a particular repair.” Rosenborough’s retainers went from being an expense to becoming a profitable small but important part of his business. “There are so many clips, fasteners and other retainers on the newer vehicles, it’s mind numbing,” he said. “Too many shops think that many retainers are ‘one size fits all’ but that’s not the case. They install a Christmas Tree retainer, which is not ideal for many O.E. and does not meet any of their standards. Why would you spend hours and hours doing a great repair on a vehicle and then install the wrong or poor-quality parts?” Body Shop Manager Mike Giovengo at Friendly Ford in Las Vegas has known Ramsey for decades, and praises him as “the Man” when it comes to the world of retainers. His shop ponies up more than $18,000 retainers annually, many of which are rivets for the aluminum F150s. Getting paid for them in

the past required a little dance with his insurance companies, but now Giovengo waltzes right through and gets paid. “When it comes to things like retainers, you won’t get reimbursed unless you ask for them up front,” he said. “A lot of shops don’t keep that in mind, so when they are rushing around to finish the repair, they realize they need a few clips or rivets, for example. They just want to get the car done, so they install the retainers and eat the cost. “The numbers really can add up. We fix roughly 1,200 vehicles every month, so if every car requires $8 to $40 in retainers, that equals between $9,600 to $48,000 annually. So, Russ and BVD have helped us to get them into our repairs more easily with specific and accurate information to document the cost.” For shops who want to subscribe and use the system, the cost is $40 to $55 monthly, and there are a series of short videos to train parts managers, technicians and estimators how to use it.

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Continued from Cover

Positive Trends hicle auction company reported its mid-month “Used Vehicle Value Index” fell to 125.2 points, a 9.6% decrease from the same period a year ago. The prior record for decline in any month was 5.5% in November 2008. Manheim also pointed out, however, that when its used vehicle value index fell 10.5% over two months in the fall of 2008 at the start of the Great Recession, the horizon looked bleak then as well, yet vehicle values fully recovered seven months later. Sure enough, this year there was a strong—nearly 9%—rebound in May, Manheim reported, bringing pricing to within 1.9% of what it was a year earlier. The index then jumped another 6.6% in the first half of June, erasing much of the spring decline and reaching a level that is actually 4% higher than last June. Admittedly, there are still factors that could lead to a lot of instability in used vehicle pricing in the coming months. Rental car companies continue to send significant numbers of used vehicles to the auctions as they reduce their fleets in response to the drop in travel. Repossessions are also picking up, and while automakers delayed some turn-back dates on leases this spring during the worst of the COVID-19 impact, more of those vehicles also are expected to join the parade of used vehicles hitting the market. Still, the fact that the large decline in the spring didn’t hold should come as welcome news to collision repairers. Traffic levels are getting closer to “normal” Traffic analyst firm INRIX at the end of June halted the weekly reports it was producing on traffic levels around the country given that by its system of measurement—a comparison to weekly traffic in February— personal vehicle traffic on a rolling seven-day national basis was back to 100% as of June 25. As July began, more than 34

states had traffic levels higher than in February, according to INRIX, and only three states had declines exceeding 10%: Hawaii (still down 43%), California (down 12%) and Arizona (down 11%). Forty-two of the 98 metropolitan areas INRIX tracks in the U.S. had traffic at or exceeding February levels.

Demand for gasoline, as measured by how much was being delivered to retail stations around the country, also has rebounded to close to “normal.” Back in April, according to the U.S. Energy Information Administration, gas deliveries had tumbled by 47% compared a year earlier. But by the last two weeks of June, the amount of gasoline being delivered was just 10% below what it was during the same period last year.

parts delays,” a shop in Northern California commented. But at least one in four shops said they could point to something helpful insurers were doing. Those included shops saying they were being paid for the added labor for “COVID-19 cleaning” of vehicles. Shops on Progressive’s direct repair program also said the company has followed through on its pledge in mid-April to share with those shops more than $2 million of the money the company was saving from the drop in claims Progressive and other insurers were experiencing. “Progressive gave us $1,000 to help with the reduction in work,” one Florida shop reported, a dollar figure that was confirmed by more than a half-dozen other Progressive direct repair shops. A shop owner in Hawaii said GEICO had increased shop labor rates, and shops on USAA’s direct repair program in Oregon and Illinois reported the insurer suspended the performance-based bottom line discount the shops are required to give that insurer.

Some shops point to help from insurers A poll of shops in the second half of June asked shops if they have been offered any assistance from Manheim’s used vehicle pricing index in June had rebounded insurance companies to significantly after a record-setting drop this spring, reaching help their business during levels higher than a year ago, which will help prevent more vehicles from being declared total losses the pandemic. A large majority said no. “Just the opposite. Most insurers That’s a fairly sharp recovery, given that in early April, traffic had are auditing more files and becomfallen to nearly half of what it had ing very nitpicky,” a shop owner in Hawaii said. been just six weeks earlier. It should be noted that the IN- “They just want you to cover RIX data paints a little brighter pic- rental even when the pandemic caused ture of traffic around the country than it would if it compared traffic in June to what it was a year earlier. Because traffic tends to rise in the spring and summer, reaching February levels in late June still represents about a 16% decline compared to a Toll Free: year earlier. 800-551-8189 But 16% off is significantly betParts Direct: 318-425-3417 ter than the 47% decline in April. And Fax: 318-425-1705 analysis of traffic camera data in some cities and states indicates even more of a full recovery in some markets. Using that measurement, statewide traffic in Florida and Indiana during the third week of June, for example, was down by just 4% or less compared to the same week in 2019, and Electronic Catalog Available Online! down by less than 10% in Arizona, • Fast, Next-Day Delivery Ohio and Michigan. • Millions in Inventory Looking at vehicle counts tracked • We also sell tires! on state highways in some cities also Your Best Source points to at least a near return to norfor Genuine GM 7500 Youree Drive mal in some cities. Traffic on I-465 in Shreveport, LA 71105 Parts, Powertrain Indianapolis in early July, for examchevyland.com Engines and ple, was actually 6% higher this year when measured against the same Transmissions with week last year. And traffic camera data for that week indicates just a 10% decline on state Route 315 in Columbus, OH, and only a 6% decline on I-85 in Charlotte, NC.

32 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Making the Most of the ‘Parts’ Portion of Your Business Parts consistently make up 40% of total repair order dollars, so it’s well worth it for shop owners to pay careful attention to the role parts play within their business. This month, I wanted to share the first of two columns outlaying some best practices related to parts I think could improve your shop’s operations and bottom line. Best Practice: Make sure you’re accurately tracking your parts profitability. As almost anyone who has attended one of my classes knows, I’m a big proponent of the value of detailed and dead-on accurate accounting practices and profit and loss statements. That’s where good P&L account and sub-account categories are needed. You shouldn’t just track labor income, for example. “Labor” is one account; the sub-accounts include “body

labor,” “paint labor,” “frame labor,” “mechanical labor,” etc. When it comes to your parts account, I believe you need sub-accounts for OEM parts, aftermarket or non-OEM parts—which may also include accessories—and salvage or

and cavity wax. These are not paint materials. They are parts you put on the vehicle. The old adage of “junk in, junk out” applies in terms of entering parts on estimates and in your shop management and accounting systems.

A “Who Pays for What?” survey last year found that 3 in 10 shops bill the insurer for added labor or materials when a non-OEM part turns out to be unsable

recycled parts. Some people break out remanufactured parts. But one often missed sub-account is “stock parts.” Stock parts include things like seam sealer, double-sided tape, weld-through primer

Continued from Page 27

Continued from Page 28

Erick and Shelly Bickett

Serve Through Pandemic

riences have resulted in is that we’ve been able to predict what’s going to happen. We are going through more dramatic change, danger and opportunity than ever seen in our industry before. I think the future of the entrepreneurial collision shop is going to be dictated by how repairers respond to the changes coming. Independent collision shops owners add a ton of value and can survive if they work together and take the necessary actions to respond to market needs. At the same time, they need to remain competitive and look for efficiencies while removing duplication and waste in their businesses. If independent shops don’t do these things, they’ll likely become extinct. The full article is available online and includes information from Erick and Shelly about what prompted them to sell ACAB Automotive Group and Fix Auto USA to Driven Brands.

from an East Coast Toyota dealership said, “We will see a new way of doing business; COD only—no charges.” Finally, an Acura parts manager said the last four months had really “put the icing on the cake.” He noted that paying for such computer programs such as CCC, Parts Trader and OPS Trax have added thousands of dollars per month to their operating costs. That, combined with other wholesale costs and a steep downturn in business, has simply made the wholesale business untenable. But rising wholesale business costs and declining profits for dealers has been an issue for 40 years or more. Fortunately for the collision and mechanical repair shops, auto dealers, being as creative and resilient as they are, always seem to find a way to mitigate these business issues and keep serving the automotive aftermarket repair industry.

You might list seam sealer as an aftermarket part on your estimate because there’s not a “stock part” option in that system. But when you transfer that estimate into your management and accounting systems, you need to

make sure the systems are mapped properly to reclassify that item into the proper sub-account. One of the other common accounting mistakes I see centers around parts price-matching, when you choose to use an OEM part in place of an aftermarket part, for example. When that happens, it’s important that whoever inputs your parts invoices understands how to properly change that to an OEM part within your management and accounting systems. If that doesn’t happen, the accounting system will presume you sold an aftermarket part, but the cost for that part goes into the OEM sub-account. That results in an overstatement of your profit on aftermarket parts, and understates your profit on OEM parts. Best Practice: Know your gross profit

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margins on different types of parts. Using your sub-accounts properly will help ensure you have accurate information on your parts profits by type. Most shops I see are making between 20% and 32% gross profit on OEM parts, for example. But keep in mind lots of factors can influence that. Your buying power can result in higher or lower discounts compared to other shops. Your mix of work can play a role; parts profits may be higher or lower depending on whether your repair a lot of domestic vehicles, or a lot of Asian or European import vehicles. Even what part of the country your shop is in can affect discounts and profits. Most shops are making between 30% to 45% gross profit on aftermarket parts. Again, buying power and discounts vary. Given that there aren’t list prices for recycled or salvage parts, most shops are marking up the cost of those parts. Don’t confuse mark-up with gross profit. When a shop marks up a part 20%, it is making a 17% gross profit; when it marks them up 25%, it is making a 20% gross profit.

Most shops find their margins on stock parts are similar to their margins on paint materials. Best Practice: Don’t make parts decisions based solely on gross profit margins. I’m not going to argue here about the merits of using OEM or aftermarket parts. But I will say you should take into consideration factors beyond just gross profit percentages. In some cases, for example, it may take a technician added time to install an aftermarket part. Given the average collision technician generates $100 in gross profits per hour, an added 30 minutes installing a part costs you $50, even aside from any impact on efficiency and cycle time. Can you get remunerated for that added labor? Perhaps. A “Who Pays for What?” survey last year found 29% of shops said they bill the insurer for this labor at the shop’s retail rate, and another 10% said they bill the parts vendor. But 21% said they only billed for this at a discounted labor rate, and another 22% said they most commonly didn’t bill for the labor in such situations.

On the other hand, some could argue the higher profit margin on a less expensive alternative part makes sense if an older vehicle has discontinued parts or is close to being an economic total loss. As you read through some of my other parts best practices, you’ll see other factors—such as the availability of the part, vendor performance and parts ordering efficiency—can play a role in making the best parts decision. Price or discount should not be the only considerations. Best Practice: Consider all the costs associated with ordering of parts. Those of you who have studied and worked to implement “lean principles” within your business know lean is all about eliminating waste. Waste includes the time we spend on things we do for free. I don’t know any shop including a line item on estimates or invoices for “order parts.” That’s work shops do “for free.” So if you’re not getting paid to order parts, would you rather do that two or three or even four times per job—or just once? Making that a reality starts with

100% disassembly of the vehicle to identify every broken, damaged or one-time-use part needed for that job. (I’ll discuss one-time-use parts more in next month’s column.) I also believe shops need to be using an electronic parts ordering solution. It saves time—no one should be waiting on-hold to place a parts order—and improves parts ordering accuracy. It ensures the parts vendor has the VIN, vehicle production date and other information to help them validate the parts ordered match the vehicle being repaired. Some electronic parts ordering systems automatically do this scrub of the parts order and tell you if a part doesn’t match the VIN. That’s a great feature for shops. Next month’s column will offer more best practices related to parts.

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Will COVID-19 Change Your Marketing and Advertising Plans Forever? A friend of mine who owns a body the marketing machine rolling along shop always swore marketing and began tailoring their advertising to advertising were a waste of time accommodate these indeterminate withhe’s Stacey and money, but now singingPhillips the several months. With fewer people blues. in their vehicles, some shops decided When things are going well and to nix things like radio advertising— the cars are coming through the doors, both satellite and terrestrial—outdoor many shop owners never even think advertising—billboards, bus boards about marketing and advertising—unStacey Phillips til now. If you’rewith currently doing half your normal volume and walking around in a haze, I could say “I told you so,” but that’s not how I roll. With most shops reporting a 50% drop in business since mid-March, shops that neverwith thought marketing Stacey Phillips was essential are sitting around scared and unprepared. This is why I’ve always said marketing is not a “start and stop” thing. It should always be idling in and other signage—and some mobile the background and tailored based on apps that target drivers in their cars. car counts and the timeStacey of the year, with Phillips Shops are now heavily pushing but to do zero marketing is a mistake things like pickup/drop-off services, that is even more evident now. free car washes for customers and We all know by now the CO- photo estimates, as well as safety VID-19 global pandemic is going to protocols for customers and their change our lives forever, and the way employees. body shops operate as well. It is alreaOne thing that has changed drady causing body shops to reevaluate matically during stay-in-place orders with Victoria Antonelli their thinking about current and future is companies have realized letting advertising and marketing campaigns their employees work at home is not to accommodate social distancing and a bad thing. In fact, many businesses work-from-home protocols initiated have found out people working virto combat COVID-19. tually are even more productive. How does the future look for Some large high-tech companies body shops post-pandemic? Who will such as Oracle, Facebook and Apple with Ed Attanasio survive, thrive or meet their demise in have asked their employees to work a new world of market adjustments, virtually with no immediate plans to stronger competition and an ever-in- change the plan. So, how do body creasing demand for marketing that shops get their marketing messages will address and comfort consumers to those people who are in their hoduring these uncertain times? mes 90% of the day? Some shops have already rediIndustry author, speaker and with Gary Ledoux rected their marketing efforts, while consultant John Stuef has held liteothers have just eliminated them al- rally every position in a body shop. together. They didn’t do it because He entered the industry as a painter’s they’re anti-marketing—to survive helper and then became a painter, a as their car counts dropped and they body man, manager and then owner. were forced to furlough people. For many years, he owned several “If it comes down to making my successful shops, and currently he’s with Stacey Phillips payroll versus maintaining our social a regional manager for a large MSO. media or email marketing, it’s a pretTwo things Stuef has been doty easy decision,” one shop manager ing since he bought his first shop intold me recently. volve getting out there in the public Shops that could afford to keep and hitting the streets for business.

Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

“There will obviously be a lot less business out there until this thing is definitively over, which won’t truly happen until we have a vaccine that actually works,” he said. “Advertising isn’t going to get you what you need fast enough, plus it’s too expensive, especially when your marketing budget is temporarily limited.” So, Stuef is suggesting a few things to do that might bring you some faster results. The old adage is advertising is buying exposure while marketing is earning it. “Tapping into proven sources of revenue is the best way to operate during these unprecedented times, especially when time and money are limited,” he said. “Whenever we wanted to create some new business, we went back to what always wor-

ked, like visiting dealerships and insurance offices. “There is no silver bullet, but actually getting in front of people and interaction have always been effective for us. You can’t imagine the power of free pens and doughnuts.” Stuef and many other shop owners, managers and marketing people are looking at how COVID-19 will affect consumer buying habits and the collision repair industry. “It’s all about short term decision-making right now and those shops that will be able to pivot quickly will have a distinct advantage,” Stuef said. “With so many uncertainties out there to deal with in both our professional and personal lives, a shop’s marketing should stress safety, comfort and trust more than ever.” Angel Iraola at Net Business Consulting and Solutions in Oakland, See Advertising Plans, Page 43

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36 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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3M Shows Support of Collision Repair Industry During Pandemic by Stacey Phillips

When reports were first coming from China in early January regarding the coronavirus, Dave Gunderson, vice president of 3M’s Automotive Aftermarket Division (AAD), said the company saw the writing on the wall. Having been through previous pandemics, such as SARs, 3M executives realized the need to take action. “Every day at 3M, we think about improving lives,” said Gunderson. “Those of us working in the automotive aftermarket have been thinking about ways to support collision repairers during the pandemic.” Operating in more than 240 countries, the company manufactures and sells 52,000 different products and has more than 96,000 employees. Autobody News recently talked to Gunderson about the state of the industry during COVID-19 and what 3M has been doing over these past few months to show its support. “We realized that we needed a new operating rhythm and it had to be simple, yet effective,” said Gunderson. “It came down to three overarching guidelines: people, prioritization and rebound.”

How has 3M protected people during the COVID-19 restrictions?

First and foremost, the top priority is to make sure that our teams and customers are staying safe. We have stay informed about the guidelines from the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). We took action to limit any exposure and ensure our teams have the right measures in place. We also converted all of our support to be handled remotely. Customer support is key for us, but we need to do it in the safest possible way. Since June 4, we started bringing 3M employees back to the 3M Center campus who aren’t able to physically do their jobs from home. We also created new rules and training for employees. For anyone who travels and meets with customers, we’re going through

another level of training to ensure em- the industry and we have more than ployees know how to properly use a 25 on-demand classes for techs. We respirator or face covering. It’s called also host one-hour “how-to” webifit testing. Sometimes, you see peo- nars multiple times per week and ple with a face covering over their post them on YouTube. The sessions mouths but not their noses. focus on a deeper underThat’s not effective or the standing of body shop proproper way to wear a face cesses and procedures. covering. If you wear a resI don’t think we’ll ever pirator, it’s essential that it replace the need for physical training at our internal cenfits correctly. If you have a beard, a respirator will not ters, but we’ve found that fit properly because the air Dave Gunderson, you can do a lot of training vice president of can come around the sides. online. 3M’s Automotive In our industry, it’s not just We also launched an appliAftermarket Division important during COVID-19. cation, “Ask Me Anything,” (AAD) If you are working with any where technicians can reach industrial application, certain respi- out to 3M on the fly and have a comrators are required. We are reinforc- pany representative answer questions ing that with employees. in a timely manner. From a customer standpoint, What are some of the most we’re learning how to reengage and significant changes you’ve “ask before going.” In the past, 3M representatives stopped by multiple seen over the last few months? body shops on their regular routes. As the economy is openThat has changed since COVID-19. ing back up across the U.S., Now, we call first and ask how the shop owners and managers want to we’re seeing the return of miles be served. We’re finding that some driven faster than we were expectrequest training over the phone while others prefer someone to come in Think Genuine person. Rather than showing up and Subaru Parts. assuming that’s OK, we are asking their preference. Our customers are very appreciative of this.

In terms of prioritization, what prompted 3M to focus on training, and what training is available?

Early on, we confronted the reality that we can’t do it all. Purposeful prioritization is more important than ever before and has been based on customer needs. We heard from the market about the need for training and have worked very hard to accelerate hands-on training. With the COVID-19 situation, we pivoted our strategy and amplified and stepped up our education, especially in the area of virtual training. In the past, technicians typically went online at night after work. Our goal is to help technicians sharpen their skills and support shop owners while they prepare for an economic rebound. We launched our 3M online platform in 2018. In March, we introduced a webinar series for

ing. People are getting out and starting to drive. I think that’s good news and an encouraging sign for our industry. Depending on the part of country, miles driven are about 75% to 85% of what they were pre-COVID and are continuing to increase. The RV industry is also recovering quite well, and sales are up. If you think about how people are using their cars, that’s changing. We’re still going to birthday parties, but we have drive-by birthday parties. We’re going to church, but staying in our cars. In the 1950s, people looked forward to going to a drive-in movie or restaurant. Using the car was passion-driven. Today, and especially with the COVID-19 situation, cars are becoming our safe haven. Recent surveys show that people are going to be driving more after the pandemic and avoiding the use of mass transit and shared mobility due to hygiene concerns. When we think about getting into someone else’s car, we’re not sure if it has been sanitized. The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!

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38 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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However, we have comfort in knowing that our cars have been cleaned. Another reason is due to congestion. For many years, there was a big push to use mass transit to reduce consumption. But now the question is becoming: do you want to be safe or worry about causing congestion? All of this is positive for the collision repair industry. We need to continue watching these trends closely and prepare for the future. I understand that sometimes it feels like it is going to take forever. But if you look back in history, I think the auto aftermarket recovers much faster than other sectors. Peo-

ple don’t need to buy anything; they just get back in their cars and begin to drive.

How is 3M supporting the industry as it gets ready to ramp up again?

It is important for us to track the market and be ready for the rebound. We want to make sure that we have the right products available and the support the industry needs to service customers. Prior to COVID-19, 3M was always committed to balanced distribution of respirators to our existing industrial, retail and health care customers. In this unprecedented crisis, 3M is directing a substantial majority of the respirators we produce to our heroic and courageous health care workers and first responders, followed by critical national infrastructure during the pandemic. 3M is also going to be 3M is directing a majority of respirators produced to health launching two new prodcare workers and first responders, followed by critical national infrastructure ucts for sanitization over the

I-CAR® Names Peevy to New Role

WIN Announces Award Winners

I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced July 15 the addition of renowned collision repair industry veteran Jeff Peevy to its executive leadership team as vice president of technical products, programs and services. In this new role, which becomes effective at the end of July, Peevy will spearhead the strategic development and growth of all I-CAR curriculum and technical relations efforts while leveraging his 20-plus years of executive management experience in the industry. Most recently, Peevy served as president of the Automotive Management Institute (AMI) since 2015, and as the 2019-20 chairman of the Collision Industry Conference (CIC.) He also shares a long and successful history with I-CAR, where he served as senior director of field operations and led I-CAR’s collision repair segment team before his AMI post. Source: I-CAR

Women’s Industry Network (WIN) presents the Cornerstone Award to those who’s actions and contributions demonstrate outstanding commitment to WIN’s mission and vision. They also set a high example for others to follow. This year, WIN Chair Cheryl Boswell awarded two board members with the Cornerstone Award, Michelle Sullivan and Jenny Anderson. Sullivan has been a mentor to so many women. During the last year, she worked to redefine sponsor opportunities and benefits. She served on the WIN executive committee in various roles and served in a leadership capacity on many committees, including membership and sponsorship.Anderson, vice chair on the WIN executive committee, served a key role in selecting and implementing a new WIN membership database and website. She too has served in many roles on the executive committee, co-chairs the marketing committee and is involved on the Most Influential Woman (MIW) award committee. Source: WIN

If we can help assure customers that their cars will come back safe, clean and sanitized, then consumer confidence will help drive additional repairs. We’re a trusted leader in this industry and work hard to serve the needs of customers. For the automotive aftermarket division, our strategy and vision are to create the future of care and repair with our customers and industry partners. We’re in the industry for the long-term and want everyone to know that we’re in this together. 3M’s global headquarters is located in Saint Paul, MN next couple of months. They have been thoroughly tested to ensure they are safe to use on automotive interiors. When developing the products, we took into account efficiency and productivity in the shop because we

understand that every minute counts during a repair and want to create the most value for our market. Since safety and sanitization is top of mind right now, we have detailed information on our website showing examples of how to use sanitizer on a vehicle based on information from the CDC. You would think it’s intuitive, but for some of these chemicals to work, they have to saturate or stay wet for a certain amount of time.

For more information about 3M’s training resources, visit: https:// www.3m.com/3M/en_US/learningmarketplace/automotive-academy/ collision-repair/.

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Continued from Page 22

Corrosion Protection

Let’s see what some of the OEMs state about the use of weld through primers. Toyota wants zinc-rich weld

defend yourself in a court of law. Going forward, list each item you used in the repair process. If you do not want to list each item, use a line that states “for all corrosion protection products used in the repair, please see attached invoice.” See Fig. 3 for example of an invoice for a quarter panel replacement using the PROS program from Kent Automotive.

applied to all bare metal surfaces before body filler, adhesives, urethane primers and seal sealers are put on. Honda says that the EP can be applied with a spray gun, roller, foam brush or a dobber. (Fig. 7) Nissan, Ford, GM, Audi and Mercedes-Benz recommend the use of epoxy primer to all bonding surfaces prior to the application of adhesives.

body fillers and seam sealers. The next sets of primers are colored self-etching primers (Fig. 8b). These primers are used on interior sheet metals that are different colors

Fig. 5, Weld Through Primers

through primers on all mating surface. Honda states you will use weld through primer on all mating surfaces that will be spot welded, but no WTP when MIG plug welding. Fiat Chrysler states it does not want weld through primer used on its vehicles.

Fig. 3

I think we need do a tutorial on the many corrosion protection items used in the repair process and what the OEMs state in their repair manuals. Fig. 4. You can see a number of items on the Kent Automotive corrosion protection cart. There are several fine companies that make these products, but I am most familiar with the Kent line.

2K Direct to Metal Primer This primer is a two-part direct to metal system. It is the closet product to factory applied electrodeposition primer. It can be used as a bare metal primer, high build primer and/or a primer surfacer. (Fig. 6)

Fig. 8b

Fig. 8a

Self-etching primers (Fig. 8a) are used on bare metals. The primer contains phosphoric acid and should not be used where glass adhesives are applied. If the acid is not totally cured or a seal coat is not applied, an adhesion failure will most likely occur. The same scenario applies to

than the exterior of the vehicle. The same rules that are applied to regular self-etching primers pertains to these primers. Cavity wax (Fig 9) is a semi hardening or a hardening material that will “creep” into seams, folds and hems to seal off the parts from moisture and air. This product is applied after the vehicle has been painted because paint will not stick to it. Toyota says in CRIB 1997 it will be applied to the inside of new doors,

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Fig. 6, 2K Direct to Metal Primer

Let’s look at what the OEMs state about epoxy primer. Toyota and Honda want a coat of epoxy primer

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Fig. 4

Weld Through Primers These primers are used between mating surfaces. You can use copper-based (with zinc) or zinc-based. (Fig. 5)

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Fig. 7

Contact your local Volkswagen dealer or visit Wholesale.VWServiceandParts.com to place your Genuine VW Collision Parts order today. “ Volkswagen” and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.

42 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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hinges, quarter panels, rails, front hood hems and rear deck lid hems.

acts as a sound deadener. You may have to make a test panel (non-in-

Lucid to Open 20 Retail and Service Locations in North America Through 2021 by Brad Anderson, CarScoops

Fig. 9

Fig. 11

Fig. 10

Undercoatings (Fig 10) are applied to the underside of a vehicle to provide protection from the various road hazards, such as rocks. It also

cluded item) to determine the number of coats of material needed to match existing undercoatings. Stone guard or chip guard is applied to areas such as the bottom of door skins, rocker panels and quarter panels prior to reﬁnishing. Honda and Toyota state in the repair manuals the collision repair facility needs to make sure the application will be the same texture as the OEM applied materials. In other words, you will need to make test panels and that is a non-included operation. We will discuss more corrosion protection products next month.

The RIGHT

COLLISION PARTS

Lucid Motors has revealed it will open 20 retail locations and service centers across North America by the end of 2021. The electric vehicle manufacturer will refer to these outlets as Lucid Studios. Facilities set to open ﬁrst will include a studio at Lucid’s headquarters in Newark, CA, a Los Angeles Studio and Los Angeles Service Center in Beverly Hills at the same site previously leased by McLaren Beverly Hills, a San Jose Studio, Miami Studio, West Palm Beach Studio, New York City Studio, and a DC Metro Studio in Tysons, VA. Lucid will adopt a direct-to-consumer model much like Tesla and oﬀer “a digitally enhanced luxury experience tailored to each customer’s purchase and ownership preferences.” Customers will be able to visit a studio in person, make their inquiries entirely online or any combination of the two. Lucid says it selected locations with relatively small

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footprints in high-traffic areas. “Just as the Lucid Air is meticulously designed and engineered to be a new benchmark in the luxury electric car segment, we designed Lucid Studios to be engaging, to start conversations and to help educate people about the performance and efficiency benchmarks possible in an electric vehicle,” CEO and CTO of Lucid Motors Peter Rawlinson said. “A Lucid Studio is a place for people to learn about our unique brand while supporting every facet of the customer journey.” The long-awaited Lucid Air will premiere on Sept. 9. We will have to wait until then to get finalized specifications, but understand the Air will be able to cover more than 400 miles (644 km) on a single charge while being able to sprint to 60 mph (96 km/h) in roughly 2.5 seconds and, in all likelihood, hit a top speed of more than 200 mph (322 km/h.)

Highlights include a complete range of products available in North America, the debut of

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Continued from Page 36

Advertising Plans CA, is currently performing marketing triage for a wide range of small businesses during the pandemic. “With the economy taking a major hit, consumer behavior is likely to change dramatically through the end of the year and well into the ﬁrst quarter of 2021,” he said. “For those with less disposable income, or considering retirement, this eco-

nomic slump might result in a sharp decline to their spending habits. “Right now, consumers are wisely taking a ‘wait and see’ approach, so body shops should consider their target audience and how their lives will change as a result of the current economic climate. It’s a whole new ballgame and only those who will adapt quickly will survive.”

AUTOBODY

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Autobody News Writer Recognized for ‘Solving the Tech Shortage’ Column Congratulations to Stacey Phillips, freelance writer at Autobody News, for receiving an award for her column, “Solving the Tech Shortage.” Phillips received a 2020 APEX Award for Publication Excellence from Communications Concepts in July. “I’m honored to have received this award,” said Phillips. “I am greatly appreciative of all the individuals I interviewed over the past year who have shared ways to hire and retain technicians for the future.” Phillips is a freelance writer for the automotive industry based in Southern California and owns Radiant Writing & Communications. As the prior assistant editor of Autobody News, Phillips has written for the publication since 2014. Her regular columns include “Best Body Shops’ Tips,” “Shop Strategies” and “Solving the Tech Shortage.” In addition, she assists the Collision Industry Electronic Commerce Association (CIECA) with marketing and communications and has co-authored two books, including “The Secrets of America’s

Greatest Body Shops.” Phillips initiated the column in January 2019 after talking to Jeff Smith, a collision repair instructor at the Northeast Arkansas Career and Technical Center, about the overwhelming shortage of technicians. “At the time, collision repair shop owners and managers faced a shared challenge: how and where to find new technicians,” said Phillips. “My intent on starting this column was to come up ways for the industry to share ideas on how to solve this problem.” Since then, Phillips has profiled a variety of individuals and organizations about the ways they are approaching the problem, including the Collision Career Institute (CCI), the Collision Repair Education Foundation (CREF), the Inter-Industry Conference on Auto Collision Repair (I-CAR), the March Taylor Memorial Foundation, in-prison automotive program instructors and technical schoolteachers. Her column can be found online at www.autobodynews.com.

Most Expensive States for Car Insurance in 2020 by Denny Jacob, PropertyCasualty360

In a country as large and diverse as the U.S., each state offers a range of pros and cons across a number of aspects. Whether it’s the cost of being a homeowner, the proximity to nature or their state and local tax rates, there is something for everyone. While it might not be the first factor someone might tout when talking about their state, the cost of car insurance is an important quality for many. An analysis by Insure.com found that the average cost of car insurance in 16 states is more than $100 above the national average, which came in at $1,517 this year. What state an insured lives in is a significant factor when determining the cost of car insurance, but insurers also consider gender, age, the vehicle and credit score. State-specific factors like insurance laws, claim and crime rates, and the number of uninsured drivers can influence the premium as well.

Tesla Battery Day Gets a Concrete Date by Simon Alvarez, Teslarati

It turns out the long wait for Tesla’s highly-anticipated Battery Day event will be a bit longer, but it will certainly be well worth the wait. In a recent announcement on Twitter, Tesla CEO Elon Musk stated the tentative date for Battery Day will be Sept. 15. But that’s not all, as the event will be held along with the Annual Shareholder Meeting. Musk posted the announcement this weekend, later adding the event will be held in Fremont, CA. Musk noted Battery Day will include a tour of Tesla’s cell production system, among other things. Considering the location of the event, it appears Tesla may be bringing investors to its secret and rumored skunkworks lab located at the company’s Kato Road facility, just a few minutes away from the Fremont plant. Speculations are abounding about what Tesla would reveal in its Battery Day event. The last time Tesla held a similar event was Autonomy Day in April 2019, and that included a deep dive and discussion

of the company’s custom Hardware 3 chip. Everything about HW3, from its design to its performance, was discussed intensively. This same amount of attention to detail is expected for Battery Day.

In classic Elon Musk fashion, Battery Day has experienced some delays, a lot of it due to the coronavirus pandemic. If Musk’s recent Twitter announcement is any indication, this delay is due, at least in part, to the fact the company seems determined to show its shareholders what its battery cell technology is like firsthand. And considering how impressive Tesla’s batteries already are today, it’s pretty exciting to see what the company has in store for the future. Previous reports point to Tesla

discussing its next-generation battery cells at Battery Day. These cells are rumored to be capable of lasting a million miles if used in electric vehicles, and decades if deployed as battery storage devices. If Tesla does discuss cells that match these speculations, then the entire electric vehicle industry—and the shift to sustainability as a whole—will likely change forever. Among the remaining roadblocks for widespread EV adoption are the limitations of the current generations of batteries. Batteries today are capable in their own right, but they are still more expensive compared to a traditional internal combustion engine. Tesla’s rumored million-mile batteries are expected to reach, and perhaps even go beyond, price parity with gas-powered cars. By doing so, Tesla would be able to accelerate the EV transition even more.

Whether you live in an expensive state or a cheap state, Insure.com says to shop at least three insurers and “always make sure you’re comparing apples to apples when it comes to coverage levels and deductibles.” And when buying a new car, it’s always wise to shop for insurance as you look for the car so the premium won’t tear through your budget. Insure.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. It averaged rates in each state for the cheapest-to-insure 2020 model-year versions of America’s 20 best-selling vehicles as of January and ranked each state by that average. With this in mind, explore the slideshow to see Insure.com’s list of the most expensive states for car insurance in 2020. We thank PropertyCasualty360 for reprint permission.

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We thank Teslarati for reprint permission.

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Industry Legend Dick Schoonover Dies Dick Schoonover, of Woodbury, Little Lakes-Little League and MN, who grew his family auto body Lake Region Youth Hockey. He was a student of the game shop into a nationally-recognized company while helping to advance and he shared his competitive spirthe collision repair indusit with all who played for try as a whole, died July 9, him. 2020. He was 84. In addition to his love for family, Dick loved the Dick graduated from family business. In 1973, Murray High School in he moved Schoonover 1955, where he had played Auto Rebuild to Shorevfootball, basketball and baseball, earning a letter iew. Dick was an innovain all three sports over four Dick Schoonover tor and was always two years. That was also where steps ahead of the comhe met the love of his life, Beryl. petition. He set the bar high for Dick and Beryl were married customer service and quality and in 1956 and started their family in made sure his employees had the St. Paul, MN. Dick went to work best tools, equipment and training for his dad, Chuck, at the family available. During his leadership, business, Schoonover Auto Re- he grew the company to a nationbuild. Dick took it over in the mid ally recognized repair facility. ‘60s after Chuck’s early passing. Dick was involved in the Dick and Beryl built a home collision repair industry, serving in Shoreview, MN, and raised on many boards and committees their three sons. Dick balanced at the state and national level for small business ownership with ASA, ASC, I-CAR and others. family time. He encouraged the Dick helped develop legislation, boys to be active in sports and rules and procedures granting helped them develop a love of the rights to consumers and leveling game, especially hockey. Over the the playing field with auto insuryears, Dick coached Legion ball, ers.

In his spare time, Dick gave back to the community that meant so much to him. Besides coaching youth sports, he served on the Northwest YMCA board, was a Roseville Rotarian and sponsored many youth teams year after year. He and Beryl enjoyed golfing and were members of Midland Hills and Indian Hills Golf clubs. He was an avid reader and would read anything related to news, politics and business. He also loved cars and shared that love with his sons. Dick was a man of many talents: businessman, entrepreneur, visionary, mentor, coach. Most importantly, he was a loving man who would do anything for his family. His drive for excellence, integrity, hard work and dedication proved anything could be achieved, and any obstacle could be overcome. He often used the phrase “tough mustang” to encourage family members. With Beryl, his wife of 64 years, at his side, Dick passed away at home. In addition to his wife, Dick is survived by sons Jeff (London Savant), Scott and Mike (Gayle); grandchildren Alyssa, Lindsay

(Ben), Courtney, Abby (Drew), Anna and Matthew; great-grandchildren Jaxon, Maddox, Keegan and Josie; sister Jodie Roche (Michael) and nephew Ronan (Rebecca). He was preceded in death by grandson Patrick. The Schoonover family would like to thank the caregivers from St. Therese and CareAparent, who provided comfort, care, companionship and support while Dick was in hospice. A memorial services will be held at a later date. Memorials preferred to Patrick Schoonover Heart Foundation, www.playforpatrick.org, or King of Kings Lutheran Church, Woodbury, www.kingofkingswoodbury. org. Source: Tribute Archive

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