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Crash Champions, a leading independent collision repair company, announced June 22 it has entered into an agreement with Signature Collision Centers, one of the largest family-owned, independent collision repair companies on the East Coast, by which Signature will join the Crash platform through a strategic transaction.
The newly combined company will operate under the Crash name and banner, creating a nationwide platform with 118 locations strategically located across 12 states and Washington, D.C.
Headquartered in Annapolis, MD, Signature operates 24 high-performing locations across states throughout the greater Mid-Atlantic and Southeast, including Pennsylvania, Maryland, North Carolina, Florida and Washington, D.C.
Following the transaction, Signature founder and CEO Charles “Chuck” Pipkin will retain an ownership stake in Crash and transition to a new role as an executive board member with the company, where he will work closely with Crash Champions founder and CEO Matt Ebert to continue growing the business at the national level.
“This partnership represents a collaboration between two of the leading names in the U.S. collision repair industry,” said Ebert. “Our growth strategy is rooted in identifying the right shops and owners who can be true partners and stewards of the Crash brand. This means not only creating near-term value when they join the company through a transaction, but creating long-term value through continued contributions as members of our leadership and ownership teams. Chuck and his team are the ideal partners, and we’re excited to welcome them to the Crash family and extend our brand to the East Coast.”
“This is a monumental moment for Signature, one that we’ve been working towards for a long time,” said Pipkin. “Since our founding in 2004, we have been committed to building this business with a very specific vision and set of values. As we looked to the future, it became clear that we needed to join forces with like-minded individuals in order to take our business to the next level and achieve the full value of our platform.
“Our search for that partner started and ended with Crash Champions, which not only has the team and resources to accelerate our growth, but shares the same operational ethos and commitment to excellence,” Pipkin said. “This is the next logical step for our business, an exciting new chapter and an ideal opportunity to continue building our legacy under a new powerful name and brand.”
This will be the 42nd successful transaction Crash Champions has completed since July 2019. Through these transactions, Crash has transformed itself from a regional player operating eight locations in the greater-Chicago area to one of the fastest growing collision repair companies in America, with what will be 118 locations across 12 states―California, Colorado, Florida, Illinois, Iowa, Kansas, Maryland, Missouri, North Carolina, Pennsylvania, Ohio and Wisconsin, as well as Washington, D.C.―at the closing of this transaction.
“We have enjoyed significant growth over the last two years by carefully planning and executing a national M&A strategy, including identifying the right targets, partnering with talented management teams and properly integrating each operation into our platform,” added Ebert. “Our pipeline for quality M&A remains strong, the Crash brand still has significant room to grow, and we look forward to continuing our marketplace expansion.”
Terms of the deal were not disclosed.
Source: Crash Champions
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16 State Attorneys General Asks EPA to Hold All States to Emissions Rules
The attorneys general of 16 states on July 6 urged the U.S. Environmental Protection Agency to refrain from reinstating California’s waiver under the Clean Air Act which gives that state, and only that state, the authority to regulate which cars the rest of the nation drives.
The attorneys general of Ohio, Alabama, Nebraska, Arkansas, Oklahoma, Georgia, Kansas, South Carolina, Indiana, South Dakota, Texas, Kentucky, Utah, Louisiana, West Virginia and Mississippi sent a letter July 6 to EPA Administrator Michael S. Regan urging the agency to continue the policy under the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule.
The letter argues the U.S. Constitution recognizes the states as equals, and does not give California special rights denied to every other state.
Under the Clean Air Act, the prior administration created national standards for vehicle carbon emissions for model years 2021 through 2026, treating all states as equal sovereigns subject to one federal rule.
Recently, the Biden Administration proposed California, and no other state, should be given a “waiver” from national carbon emissions standards and allowed to set its own standards.
The waiver, designed decades ago to allow California to manage its severe smog problem, has instead been used by California to target fuel efficiency and global warming.
The letter sent by the attorneys general makes clear any attempt to restore California’s waiver is unconstitutional and causes harm to non-Californians, needlessly driving up the costs of new vehicles and allowing California to exercise power denied to every other state.
“In this great union of sovereign states, the Golden State is not the golden child,” the attorneys general wrote.
A copy of the letter to the EPA can be found at https://bit.ly/3wmywrE
Source: Kansas Attorney General’s Office
The automotive specialty-equipment industry has largely weathered the pandemic, with many companies reporting sales growth over the past year and anticipating continued growth in the coming months, according to new SEMA Market Research.
Findings from the new “SEMA State of the Industry—Spring 2021” report indicate that the majority of businesses saw significant sales growth during the pandemic: 66% of manufacturers, 60% of distributors and 40% of retailers/installers reported increased sales compared to 12 months ago, and nearly threefourths of all manufacturers and distributors expect sales to increase over the coming year.
Filled with data on how the pandemic has impacted businesses in the automotive specialty-equipment industry, the 63-page market research report helps companies understand how the market is performing. Key findings from the report include:
The specialty-equipment industry saw minimal staffing disruption because of the pandemic, with most maintaining or growing staffing levels. Additionally, 83% of manufacturers, 77% of distributors and 63% of retailers/installers plan on hiring more staff over the coming year.
Many companies selling in the pickup, sports car and classic segments reported double-digit growth in the past 12 months.
Manufacturers saw sales increase across many channels, especially direct-to-consumer through their company website and at independent specialty retailers.
The industry saw growth across
a variety of product categories. Manufacturers and retailers saw significant sales growth in performance categories especially, including intake and suspension products.
According to the U.S. Census Bureau, retail sales at motor vehicle and parts dealers hit $139.5 billion--its highest level in U.S. history. Despite the pandemic, consumers continue to work on their cars.
According to a survey of Americansconducted by Hertz, more than 80% of Americans plan on taking a road trip this summer. This means a lot more driving, and potentially a lot more potential engagement with the specialty-equipment industry.
At a time when most countries, like Japan and the European Zone, are experiencing economic contractions, the U.S. is showing strong growth after the disruption from the pandemic. This strong growth is expected to continue through the rest of 2021, as the services part of the economy fully reopens.
To learn more about the current state of the specialty-equipment industry and outlook for the future, download the new “SEMA State of the Industry—Spring 2021” report today at www.sema.org/research.
Findings from the new “SEMA State of the Industry—Spring 2021” report indicate the majority of businesses in the automotive specialty-equipment industry saw significant sales growth during the pandemic�
Source: SEMA
Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices Stay Steady in Q2: Edmunds
Consumers seeking relief from new car prices in the used car market might be a bit dismayed by used car prices as well, according to the car shopping experts at Edmunds.
Edmunds data reveals the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly used ATP Edmunds has on record.
“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.”
Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020.
Edmunds experts note this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2
2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020.
“Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average transaction price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much
less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.”
Edmunds analysts note the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population.
“This is not a buying environment for people on the fringe of being able to afford new car ownership,” said Caldwell. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.”
Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $21,224 in June, marking a 75.6% increase compared to June 2020.
“In these unique market conditions, car shoppers must remember that they have the most negotiating power through their current vehicle,” said Ivan Drury, Edmunds’ senior manager of insights. “Although it’s important to do your research on available incentives, getting competitive quotes for your trade-in will be the smartest way to guarantee the biggest discount on your next vehicle.”
Source: Edmunds
