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36
YEARS
Other States Add More MSO Locations, but Alaska Tops in Percentage Growth by John Yoswick
The fact that shop consolidation has continued at a brisk pace over the last two years shouldn’t come as a surprise to anyone in the industry. However, the state with the fastest pace of MSO growth may be more surprising—Alaska. New research published in CRASH Network shows that the number of U.S. shop locations owned by multiple shop operators (MSOs) with 10 or more locations has increased by more than 40 percent since 2015. Caliber Collision has nearly dou-
bled in size over the past two years, for example, while other large MSOs (ABRA, Gerber and Service King) have also added between 50 and 100 locations each. In addition to this group of large consolidators, there are now more than 20 other regional MSOs that operate 10 or more locations (up from just 13 such chains two years ago). Combined, they add another 269 locations (up from 195 in 2015) to the total. While other states, particularly in the Western and Southern regions of the country, have added more MSO See Alaska Tops, Page 6
State Farm is Dropped from Suit Alleging Coerced Repair Temporarily, 3M Will Be Included When Refiled
See State Farm Lawsuit, Page 26
P.O. BOX 1516, CARLSBAD, CA 92018
John Eagle Collision Center in Dallas, TX, and State Farm were sued in two separate cases for $1 million for allegedly using only adhesive to attach a new roof panel to a Honda Fit rather than welding it, as required by Honda OEM procedures. Matthew and Marcia Seebachan have dismissed their cases against State Farm Mutual Automobile Company, which alleged the insurer influenced an auto repair that didn’t meet OEM specifications in order to increase its bottom line. The lawsuit against State Farm was dismissed only 13 days after being filed.
According to the plaintiffs’ attorney the couple dismissed their lawsuit without prejudice, meaning refiling is likely. The plaintiffs’ law firm has confirmed to Autobody News that the action is procedural because including State Farm in the suit would delay the action against John Eagle Collision Center, which is scheduled to go to trial in early September. The plaintiffs also state that 3M, the manufacturer of the adhesive, will become part of the suit when refiled. The original lawsuits allege that the faulty repair caused the car to crush 33-year-old Matthew Seebachan and his
Change Service Requested
by Ed Attanasio
VOL. 35 ISSUE 9 SEPTEMBER 2017
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CIC Panel Focuses on Legislative Requirements Related to Use of Non-OEM Parts
Manufacturers. “Some insurers will suggest that the consumer consented to their State legislation on disclosure and consumer consent policy when they signed it involving the use of nonoriginally, and they should OEM parts has been proknow what’s in there. We don’t posed – or challenged – in a think insurers do a very good job of explaining to consumers number of states this year. Wayne Weikel of the Alliance of what’s in there. So we think Panelists on both sides of the Automobile Manu[consent to the use of the parts issue squared off at the Colfacturers said lision Industry Conference consumers deserve at the time of the claim] is very important.” (CIC) held in Chicago this disclosure and the At its best, Weikel said, the summer. opportunity to give “Consent is very impor- consent for parts at consent process lays out in tant,” said Wayne Weikel, the time of the claim writing a good explanation to the consumer of what his or her options senior director of state government afSee CIC Panel, Page 24 fairs for the Alliance of Automobile by John Yoswick
Autobody News welcomes readers in Alaska where we are distributing our publication for the first time. If you’re reading this issue in another person’s shop contact us for a free subscription.
Car Guys Collision Repair in Agreement To Acquire Gunder’s Auto Repair In Lakeland, FL Dave Mitchell, the president of Car Guys Collision Repair said the deal will officially close on Sept. 15. In addition to another acquisition Mitchell made on Friday, this becomes Car Guys’ thirteenth location in central Florida. Mitchell said he and Gunder had been working on a deal over the past five months. Gunder’s Auto Repair made the deal public on Aug. 15 on its Facebook page. Mitchell said the deal is notable because Car Guys is very DRPheavy, while Gunder’s Auto Repair is openly anti-DRP. Ray Gunder, owner of the shop, had levied around 40 lawsuits against State Farm, All-
state, USAA, Travelers and GEICO back in 2013. “It’s an interesting story, with him getting out and us coming in,” said Mitchell. “We’re two different faces and models of collision repair.” “But there are also lots of similarities, because we want high quality and happy customers,” he continued. “What’s strange about that store is that most hops that are not DRP friendly, they don’t have much work. Insurance can strong-arm them—that didn’t work with Ray. Through his loyal customer base and service and attention to detail, customers have continued to come back regardless of insurance companies have said.”
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COLUMNISTS Antonelli - Techs of Tomorrow: SkillsUSA National Winner Talks Competition, Equipment and Preparation . . . . . . . . . 22 Attanasio - First Impressions: The Appearance of Your Facility Might Be a Liability . . . . 16 Attanasio - Industry Veteran Invents Useful Tools at Collision Edge . . . . . . . 34 Attanasio - Shop Owner David Ludwig Uses His Art to Give Back . . . . . . . . . . 48 Attanasio - Vehicles Abandoned at Body Shops Are Unwelcome Guests . . . . . . . 56 Phillips - Alaska Shop Owner Focuses on Company Culture and Customers . . 50 Phillips - Best Practices for Photo Documentation: 10 Tips on How to Capture Useful and Relevant Images . . 12 Phillips - Effective Estimating Can Help with Scheduling, Reduce Supplements, and Improve Bottom Line . . . . . . . . . . . . . . 38 Sisk - ALLDATA and Google Partner for Free Marketing Webinar . . . . . . . . . . . . 44 Yoswick - Insurers Discuss Scanning, OEM Position Statements, Automaker Influence of Shop Choice . . . . . . . . . . . 18 NATIONAL “Who Pays for What?” Survey Finds Improvements . . . . . . . . . . . . . . . . . . . . 3 18 Million Fewer Domestic Nameplates . . 52 AASP-Missouri Leadership & Management Summit . . . . . . . . . . . . . . . . . . . . . . . . 10 Auto Care Association Applauds Joint
Statement on Tax Reform. . . . . . . . . . . 53 Auto Care Association Appoints Sheila Andrews . . . . . . . . . . . . . . . . . . . . . . . . 6 Axalta to Acquire Plascoat Systems Limited . . . . . . . . . . . . . . . . . . . . . . . . 40 BASF Accepting Submissions for Glasurit® Best Paint Competition . . . . . 54 Car Guys Collision Repair in Agreement to Acquire Gunder’s Auto Repair In Lakeland, FL. . . . . . . . . . . . . . . . . . . . . . 1 Car-O-Liner® Supports Caliber Collision’s Changing Lanes Program. . . . . . . . . . . 63 Celphy Gets Schooled on Driving Etiquette. . 4 Charged with Stealing Tires, Rims, Attempting to Sell them Online . . . . . . . 42 Chief Introduces New Universal Uni-Clamp Anchoring System . . . . . . . . . . . . . . . . 59 CIC Panel Focuses on Legislative Requirements . . . . . . . . . . . . . . . . . . . . 1 Ford On Target - 2017 Volume 2. . . . . . . . 50 Host of Hit TV Show “Bitchin’ Rides” to Debut New Custom Color Line of Akzonobel Automotive Paints at SEMA . . 54 How to Add Three Stage Mitchell Paint Calculations. . . . . . . . . . . . . . . . . . . . . . 8 Kia Selects OEC for Collision Parts Ordering and Fulfillment . . . . . . . . . . . . 58 Long-Running Federal Circuit Results in Victory for Mitchell in IP Dispute with Audatex . . . . . . . . . . . . . . . . . . . . 58 Midwest Job Fair to be Held Sept. 29 in Madison, WI . . . . . . . . . . . . . . . . . . . 9 Motor Vehicle Deaths Modestly Lower than Last Year . . . . . . . . . . . . . . . . . . . 28 National Auto Body Council Opens Nominations for 2018 Board of Directors . 58 National Organization Promotes Independent Jobbers . . . . . . . . . . . . . . 14 New Chief® M30 Pro Alu Stud Welder Is Faster and Easier to Use. . . . . . . . . . 36 New Labor Rate Survey Website from NABR . . . . . . . . . . . . . . . . . . . . . 28 Nissan Agrees to $98 Million Settlement on Takata. . . . . . . . . . . . . . . . . . . . . . . 52 Other States Add More MSO Locations, but Alaska Tops in Percentage Growth . . 1 Seattle Family Special Guests at CARSTAR Event. . . . . . . . . . . . . . . . . . 61 Self-Driving Cars Must Learn Social Rules, Which are Key To Road Safety, Researcher Says . . . . . . . . . . . . . . . . . . 4 Service King Expands to 30 Shops in Southern California . . . . . . . . . . . . . . . 41 Service King’s Chicago Teammates Contribute $45,700 to Angels on Assignment . . . . . . . . . . . . . . . . . . . . . 28 U.S. House Panel Approves Broad Proposal On Self-Driving Cars, Mindful of Road Deaths Increasing . . . . . . . . . . . 4 WIA Summer Conference Receives Positive Responses . . . . . . . . . . . . . . . 42
duplication of OEM seam-sealer (up 6.6 percentage points). Newly released data from the “Who Pays for What?” body labor survey, completed this past April by a record 1,042 shops around the country, contained some other evidence indicating the surveys’ positive impact: Of the 20 “not-included” body labor operations covered in both the 2016 and 2017 surveys, 18 had a higher percentage of shops (compared to a year earlier) now negotiating to be paid for them. “If you don’t bill for it, you will never be paid for it, yet the biggest percentage of shops not billing for these procedures say they never thought of billing for them when they are required as part a repair,” Anderson said. “These surveys were designed to help raise that awareness.”
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy
Audi South Austin . . . . . . . . . . . . . . 30 Audi Wholesale Parts Dealers . . . . 37 AutoNation Chevrolet . . . . . . . . . . . 38 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . 18 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix. . . . . . . . . . 8 Axalta Coating Systems . . . . . . . . . . 5 Bill Luke Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 24 BMW Wholesale Parts Dealers . . . . 47 Bob Howard PDC . . . . . . . . . . . . . . 31 Car-Part.com . . . . . . . . . . . . . . . . . . 15 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 19 Chapman Chevrolet . . . . . . . . . . . . 48 ChemSpec USA, LLC . . . . . . . . . . . 12 Chevyland . . . . . . . . . . . . . . . . . . . . 42 Chief Automotive. . . . . . . . . . . . . . . 23 Classic BMW . . . . . . . . . . . . . . . . . . 41 Classifieds. . . . . . . . . . . . . . . . . . . . 62 Dallas Dodge . . . . . . . . . . . . . . . . . 64 Dent Magic Tools . . . . . . . . . . . . . . 10 Diamond Standard Parts, LLC . . . . 51 Dominion Sure Seal . . . . . . . . . . . . 27 Don Carlton Auto Group . . . . . . . . . 44 ECS Automotive Concepts . . . . . . . 28 Equalizer Industries, Inc . . . . . . . . . 34 Finnegan Chrysler-Jeep-Dodge . . . . 2 Flatirons Subaru . . . . . . . . . . . . . . . 49 Ford Wholesale Parts Dealers . . . . 57 GM Wholesale Parts Dealers . . . . . 61 Greeley Subaru . . . . . . . . . . . . . . . . 46 GYS Welding USA. . . . . . . . . . . . . . . 6 Herkules Equipment Corporation. . 22
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Southwest
REGIONAL ASA-CO to Host Extreme Communication on August 28. . . . . . . . . . . . . . . . . . . . 21 Automotive Education Event Supports Dallas Community Service Group. . . . . . 9 FADRA, Honda Pull Recalled Takata Airbags from Local Salvage Yards. . . . . . . . . . . 54 HABA Presents “Estimating Solutions for Profit” Seminar . . . . . . . . . . . . . . . . . . . 8 Sisk - ASA-AZ’s 2017 Automotive Training and Expo Featured More Than 60 Hours of Training . . . . . . . . . . . . . . . . . . . . . . 20 Snell Motors Adds Jaguar to Land Rover Dealership in Frisco, TX . . . . . . . . . . . . 10 State Farm Coerced Texas Shop to Glue Car Roof, Lawsuits Claimed, Suits Dropped but Refile Possible . . . . . . . . . . 1 Universal Technical Institute Expands Welding Technology Program to Avondale Campus . . . . . . . . . . . . . . . . 10 Vince’s Auto Body Expects to Open New SR 260 Location in Mid-September . . . . 6 Why Are Recalled Takata Airbags being Recycled? . . . . . . . . . . . . . . . . . . . . . . 46 World’s Painters to Display Unique Automotive Artwork at 3M Showcase in Royal Oak, MI . . . . . . . . . . . . . . . . . 42
“Who Pays for What?” Survey Finds Improvements
More shops are now being paid “always” or “most of the time” for nearly two dozen not-included body labor operations compared to a year earlier, according to the latest findings from the “Who Pays for What?” quarterly survey series. Mike Anderson of Collision Advice, creator of the surveys, said that that’s something he’s pleased about. “Though many of the increases are slight, and within the margin of error for the survey, there are a number of procedures that have seen significant jumps,” Anderson said. “Clean-up of airbag residue is a good example, rising 9 percentage points since 2016.” Other procedures for which more shops are now reporting being paid “always” or “most of the time” include clean-up of old urethane (up more than 6 percentage points compared to 2016), application of weld-thru primer (up more than 8 percentage points), and
Indexof Advertisers
Contents
Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers. . 54 Insta Finish Car Care . . . . . . . . . . . 25 Kia Motors America, Inc.. . . . . . . . . 17 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 55 Killer Tools & Equipment. . . . . . . . . 43 Lancer Insurance Company . . . . . . 26 Lusid Technologies . . . . . . . . . . . . . 11 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mazda Wholesale Parts Dealers . . . 59 Mike Calvert Toyota. . . . . . . . . . . . . 46 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 52 MOPAR Wholesale Parts Dealers . . 39 Nissan Wholesale Parts Dealers. . . 58 North Freeway Hyundai . . . . . . . . . 50 Ray Huffines Chevrolet . . . . . . . . . . 35 Robaina Industries, Inc . . . . . . . . . . 45 SATA Dan-Am Company . . . . . . . . 13 SEMA Trade Show . . . . . . . . . . . . . 29 Sorbothane . . . . . . . . . . . . . . . . . . . 16 South Pointe Chrysler-Jeep-Dodge. 14 Spanesi Americas . . . . . . . . . . . . . . 20 Subaru of Little Rock . . . . . . . . . . . 36 Subaru Wholesale Parts Dealers . . 40 Toyota of Laredo . . . . . . . . . . . . . . . 53 Toyota Wholesale Parts Dealers . . . 56 Valspar Refinish . . . . . . . . . . . . . . . . 7 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 60 Wizards Products . . . . . . . . . . . . . . 21 Young Chevrolet . . . . . . . . . . . . . . . 53
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 3
Self-Driving Cars Must Learn Social Rules, Which are Key To Road Safety, Researcher Says
In a presentation at the 2017 Management Briefing Seminars on Aug. 2, Melissa Cefkin, principal researcher of human-centered systems at Nissan’s Research Center in Silicon Valley, said autonomous vehicles need to understand learned social behaviors—such as assuming a pedestrian standing outside the left side of the car is about to get in and drive and not walk into the street — before manufacturers can safely deploy them. “We need to teach vehicles so they can move in a socially acceptable manner,” Cefkin said in an interview. While most human driving behaviors appear to be inherent, many—such as waving another car through an intersection—are actually learned through experience, she said. The challenge lies in programming these norms and behaviors into a self-driving car. It is an addressable obstacle, Cefkin said. “It’s not the death of the situation but rather an opportunity to advance it,” she said. When autonomous vehicles start appearing on public roads, most people will experience them from the outside, either sharing the road as a driver of another car, or as a biker or pedestrian.
Celphy Gets Schooled on Etiquette
Nissan is addressing this education challenge by analyzing human driving behavior to determine which reactions are natural and which are learned. Once these behaviors are differentiated, developers can teach the vehicle what to expect in situations that don’t adhere to natural assumptions, such as driving through a pedestrian-heavy college campus where people are less likely to abide by traffic signals. “What we’re trying to do is accelerate the ability to see those kinds of relationships that happen between different kinds of people in these situations,” Cefkin said. However, identifying such situations is incredibly complicated. In a four-way intersection alone, there are myriad right-of-way dilemmas that crop up, both between vehicles and between vehicles and pedestrians. How a car reacts to a situation also depends on time and place; traffic flows change by the hour, and each city has distinctive driving behaviors. Cefkin predicts it will take a few years before driverless vehicles can adapt to learned driving behavior in an acceptable way, and even then it will be an ongoing process.
U.S. House Panel Approves Broad Proposal On Self-Driving Cars, Mindful of Road Deaths Increasing
Automakers and tech companies are pushing a bill through Congress that would limit local governments’ ability to regulate self-driving vehicles on city streets. Designing autonomous vehicle systems to meet city needs could cut congestion, reduce traffic deaths and injuries, and free up scarce urban space for more pressing needs than car storage. Legislation is moving quickly through Congress. The House of Representatives held a June 27 subcommittee hearing on a package of 14 bills regulating self-driving cars, then consolidated them into a single bill, which a House subcommittee voted for 54-0. A U.S. House panel on Aug. 16 approved a sweeping proposal by voice vote to allow automakers to deploy up to 100,000 self-driving vehicles without meeting existing auto safety standards and bar states from imposing driverless car rules. Representative Robert Latta, a Republican who heads the Energy and Commerce Committee subcommittee overseeing consumer protection, said he would continue to consider changes before the full committee votes on the measure. The full U.S. House of Representatives will not take up the bill
until it reconvenes in September after the summer recess. The measure, which would be the first significant federal legislation aimed at speeding self-driving vehicles to market, would require automakers to submit safety assessment reports to U.S. regulators, but would not require pre-market approval of advanced vehicle technologies. Automakers would have to show self-driving cars “function as intended and contain fail safe features” to get exemptions from safety standards but the Transportation Department could not “condition deployment or testing of highly automated vehicles on review of safety assessment certifications,” the draft measure unveiled late Monday said. The issue has taken new urgency because of data showing road deaths in the United States rose 7.7 percent in 2015 over the previous year to 35,200, the highest annual jump since 1966. Traffic deaths climbed nearly 8 percent in the first nine months of 2016, government data showed. Current federal motor vehicle safety rules prevent the sale of selfdriving vehicles without human controls. Automakers must meet nearly 75 auto safety standards, many of which
4 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
were written with the assumption that a licensed driver will be in control of the vehicle. General Motors, Alphabet Inc., Ford Motor Co., Tesla Inc. and others have been lobbying Congress to preempt rules under consideration in California and other states that could limit self-driving vehicle deployment. States could still set rules on registration, licensing, liability, insurance and safety inspections, but could not set self-driving car performance standards, under the proposal. California state assemblyman Freddie Rodriguez questioned “why Washington would want us here in the states to not look at the safety standards—it should be up to every state.” Rep. Debbie Dingell, D-Mich., said the bill creates a “strong but flexible regulatory framework” that seeks to avoid “a patchwork” of different state rules. Auto dealers want the final bill to clarify that the measure would not preempt state dealer franchise laws that generally bar automakers from selling vehicles directly to consumers. Democrats praised the bipartisan proposal but said they want more changes before the full committee takes it up, including potentially adding other
auto safety measures. The Alliance of Automobile Manufacturers, a trade group, said it is “pleased that the legislation is moving forward, and expect to see areas finetuned in the legislation.” Consumers Union, a public advocacy group, said the bill needs more changes and must “ensure that automakers demonstrate automated vehicles’ safety and don’t put consumers at greater risk in a crash.” The group opposes “restricting states’ safety authority without strong federal safety standards in place.” The administration of former President Barack Obama last year unveiled voluntary guidelines on selfdriving cars that asked automakers to submit a 15-question safety assessment. President Donald Trump’s transportation secretary, Elaine Chao, said she plans to update those in the coming months. Separately, Sen. John Thune, RSD, who is working with Democrats, said he hopes to release a draft selfdriving car reform bill.
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UPDATED DAILY
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 5
Vince’s Auto Body Expects to Open New SR 260 Location in Mid-September by Bill Helm, Verde Valley Newspapers
Workers with Tierra Verde Builders and Stapp Drywall have one goal when it comes to the new Vince’s Auto Body location that fronts SR 260 in Camp Verde, AZ (but the official address is 1900 N. Moonrise.) Get ’er done in the next month. About 30 days from now, owner
Credit: Charles A. Bobb
Jim Bachler expects to open the doors of his new 9,600-square-foot auto and recreational vehicle collision repair facility just west of the Chevron station. And Bachler says that the “updated, easier-access” facility could “double or triple” the company’s RV business. Which is why Bachler says he is hoping to keep both locations, including the one at 573 N. Industrial Drive. Continued from Cover
Alaska Tops
shops throughout the past two years, Alaska’s relatively small shop population allowed its MSO growth, as a percentage of its total shop population, to outpace the rest the country. For example, Washington remains the most MSO-concentrated state in 2017, with 15.7 percent of its shop population (not including dealerowned facilities) operating under the banner of a national or regional consolidator. But that MSO concentration is up only 2 percentage points over what it was in 2015. By contrast, Fix Auto USA’s addition of seven locations in Alaska gave that state a whopping 14 per-
“When we pick up more RV work than we can handle, we’ll still have a place to do it,” Bachler says. “The landlord completely understands.” Owning his business is one thing. Owning the building where he does business is “tremendous,” Bachler says. “I’ve got people from Tucson calling to congratulate me about the new building,” he says. “The Camp
project superintendent for Tierra Verde Builders. “We’re right on schedule,” Lochmann says. One of the last projects before opening the new Vince’s is to pave the roughly half-acre parking lot. The new Vince’s on SR 260 will also be a Hertz Rental Car location, Bachler says.
Verde council and the Town were very helpful. My goodness, they made it easy. And the local people have latched onto the need for quality auto collision repair. They’re flocking back to Camp Verde.” In the next four weeks, construction crews will finish with drywall, then paint, install the flooring, put the bathrooms together and stucco the exterior walls, says Dave Lochmann,
About a month ago, Vince’s began providing rental vehicles through Hertz. The new Vince’s building will have about 10 rental vehicles of various designs, Bachler says. Though Vince’s will likely open its new building for business in midSeptember, Bachler is planning a grand opening for Oct. 28. We thank Verde Valley Newspapers for reprint permission.
centage point increase in MSO concentration since 2015. CRASH Network derived these numbers by combining the U.S. location counts of ABRA, Caliber, Gerber, Service King, CARSTAR, Fix Auto USA and other consolidators with 10 or more locations, then comparing that MSO count in each state to the state’s total independent repair facility population, as reported in the most recently published U.S. Census Bureau data. While Bureau data does not include dealership locations or oneman shop operations, it provides a level base from which to make stateby-state comparisons, as well as historic comparisons. Complete state-by-state data is available for subscribers on the CRASH Network website (CrashNetwork.com)
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6 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
Auto Care Association Appoints Sheila Andrews
The Auto Care Association has announced the appointment of Sheila Andrews as director, heavy duty programs. The new position was created to directly apply the Auto Care Association mission statement and strategic pillars to the independent heavy duty aftermarket. Andrews previously served as director, government affairs, Auto Care Association. Andrews will be responsible for developing programs that respond to immediate and future needs of the industry, as well as creating strategies to help make the industry more efficient and strengthen the competitiveness of the independent heavy duty aftermarket. “The heavy duty aftermarket has an identity that sets it apart from automotive in many ways, but all organizations in the independent aftermarket share similar threats,” said Andrews. “I look to leverage the full depth of resources from the association to benefit the heavy duty channel in addressing those threats and opportunities.” For more information, visit www.autocare.org.
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 7
How to Add Three Stage Mitchell Paint Calculations SCRS has issued a tip for three stage paint calculations in the Mitchell system. For the system to recognize and calculate three stage paint finish labor, user must write the estimate as normal with refinish/ blend operations labor added. Enter quick code 933014 in the upper right corner, and the system will add “Three Stage”. Once you calculate the estimate, a line will appear for Three Stage Instead of the clear coat line. First major panel or soft bumper/fascia cover: Add .7 per refinish hour (70%), after time has been added for jamb, jamb and interior, edge panel, and/or underside (when necessary). Additional panel(s) and/or other refinish area(s): Deduct overlap (if applicable); add .4 per refinish hour (40%), after time has been added for jamb, jamb and interior, edge panel, and/or underside (when necessary). Blend adjacent panel(s): Allow .7 per refinish hour (70%) for each panel(s)/refinish area(s) blended.
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HABA Presents “Estimating Solutions for Profit” Seminar by Chasidy Rae Sisk
On July 25, the Houston Auto Body Association (HABA) hosted an “Estimating Solutions for Profit” seminar at the Westin Houston Memorial City Hotel in conjunction with train-
ing provided by Sherwin-Williams, an HABA sponsor. The full-day seminar was taught by Sherwin-Williams Training Center Manager Michael Pellett. HABA President John Kopriva stated, “Our Board has made a commitment to providing more training and assistance to our members. The days of trading insurer ‘war stories’ and being told ‘You are the only one’ are over.” “Estimating Solutions for Prof-
8 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
its” focused on how to develop and improve the skills necessary to become more profitable in today’s highly competitive collision market. The seminar was designed to provide attendees with the necessary tools to write and negotiate more profitable estimates by getting paid for work performed, managing paint and materials for profit, utilizing real use of p-pages, effectively communicating with insurance appraisers, and creating a shop profit breakdown and analysis. The educational session was limited to just 40 owners, managers and estimators to allow for more interaction. According to Kopriva, “The day consisted of open exchanges of real, everyday issues involving getting paid for what shop technicians are required to do to meet manufacturer-required specifications and returning the vehicle back to its pre-loss condition.” As HABA strives to bring more value to its members and improve the collision repair industry in their state, they are working closely with the Auto Body Association of Texas (ABAT) to support the Texas Auto Body Association Trade Show on August 25-26 at the Hurst Conference Center.
Kopriva shared, “We are trying to make a definite change in our industry, and we’ve got a really strong relationship with ABAT. We plan on making headway in Texas and have a lot of good training coming along. We want to provide education for shops and try to bring smaller shops along, so they understand exactly how important it is to repair these cars correctly and adhere to manufacturers’ recommended procedures. “We are planning at least three more training events this year, one each month, and a planning workshop in December. We have big plans and are trying to be more active. Stay tuned because we have lots of exciting things going on in Texas!” For more information on HABA, visit habaonline.org.
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Automotive Education Event Supports Dallas Community Service Group The Marketplace Master Dealership Series will support Hope’s Door New Beginning Center with four car donations. Co-founders felt that in addition to providing an empowering education and training, the show could assist Hope’s Door and showcase the philanthropic efforts that dealers take on nationwide throughout the year. Whether it’s support for a high school sports team, hosting blood drives, or generating funds for community service organizations, automotive retailers across the country take action year-round. Marketplace Master Dealership Series Conference and EXPO cofounder Mike Jackson said when the suggestion that the show serve as means to assist a community group, it didn’t take long to find a worthy organization, nor did it take long for dealers to jump in and help. The Marketplace Master Dealership Series Conference and EXPO will be held Sept. 6–8, 2017, at the Hyatt Regency Dallas. The event will draw hundreds of dealers and sales and marketing staffers to the event, and scores of vendors will showcase their products and services to attendees during the event’s trade exposition.
“We were very aware of the good work that Hope’s Door does not only in Dallas, but throughout the region,” said Jackson, who is also board chairman of Auto Search Technologies, an international website development and search engine optimization firm. Hope’s Door offers intervention and prevention services to individuals and families affected by intimate partner and family violence. It also provides education programs that enhance the community’s capacity to respond. The organization opened in 1986 to address a growing need for services for victims of domestic violence in the community. Fellow event co-founder Beto Paredes said he believes that automotive retailers are among the most philanthropic groups of people in the country. “I can’t begin to count the number of times I’ve heard of dealers and their personnel step up to the plate to help families in trouble, donate uniforms for sports teams, or help governments by raising money for police and fire equipment,” Paredes said. “We want to get the message out to everyone that car dealers are good people, and there’s no better way than helping out Hope’s Door.” The three dealers from the region have donated four vehicles total to give
to families in crisis through Hope’s Door. The dealers include: Steve Grieg, owner of AutoMaxx, which has six locations, including three in Fort Worth, TX, and one in Arlington; Scott Alan, owner of AutoLand, in Fort Worth, TX; and Jeremy Williams, owner of Dallas Autos 4 Less in Fort Worth. Grieg has donated two vehicles. Jackson and Paredes worked with Jim Malatich, CEO, and Beth Robinson, director, both of Hope’s Door New Beginning Center to select the families in need. Jackson said it’s his hope that other area auto retailers will hear about the donations and offer further assistance to this organization. “The Hyatt Regency Dallas, the location of the three-day Marketplace Master Dealers Series, has stepped up and offered one free night’s stay for each of the four families chosen to receive the vehicles,” Jackson said. “I’m sure that once dealers hear about the good work that Hope’s Door performs in the community, other dealers will want to help as well.”
Contact Emily Bloomer at: emilybloomer@gmail.com to learn more the Marketplace Master Dealer Series’ philanthropic efforts.
Midwest Job Fair to be Held Sept. 29 in Madison, WI
The Automotive & Collision Industry Job Fair will be Friday, Sept. 29, at Gateway Motorsports Park, 700 Raceway Blvd., in Madison. The event is held by the St. Louis ICAR Committee, which has joined forces with NHRA and the U.S. Army Youth & Education Services (Y.E.S.) Program and is an opportunity to meet hundreds of potential employees from area technical schools. Students will attend the Y.E.S. Program and then move to the I-CAR Job Fair tent, where 30 to 40 employers will be ready to interview the students. By joining forces, the St. Louis I-CAR chapter anticipates between 800 and 1,200 students will attend both events, representing Automotive, Collision, Engineering, Science, and Math programs at 10 to 12 vocational programs in Missouri and Illinois high schools and colleges. Generated fees will be donated to the schools. The guest speaker will be NHRA driver Antron Brown. For more information, contact Gene or Doug Slattery at 636-343-8101, gene@automotivetechnology.com, or Shelly Jones at 314-601-2789, shelly@shaeferautobody.com.
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Universal Technical Institute Expands Welding Technology Program to Avondale Campus
Universal Technical Institute recently announced the expansion of its new Welding Technology program to the UTI-Avondale campus in the Phoenix, AZ, area. Student and employer interest in the program is high in anticipation of classes scheduled to begin in January 2018. “UTI-Avondale will be the second UTI campus to offer the Welding Technology program, and more will follow,” said Michael Romano, UTIAvondale campus president. “This is an expansion strategy that supports student enrollment growth, improves the utilization of our facilities and enables us to better meet the needs of employers. Skilled welders are in demand, so UTI is proud to provide yet another avenue for students to get the skills they need for a rewarding career.” In July, UTI-Rancho Cucamonga (CA) became the first UTI campus to launch the new welding program. The first class was filled to capacity, illustrative of strong student interest. Welders are increasingly sought in industries ranging from automotive fabrication and motorsports to aerospace, energy and virtually every kind
of manufacturing. Between 2014 and 2024, the industry will need to fill more than 128,000 new and replacement positions. Welders are particularly in demand for major infrastructure projects that keep our nation moving, including: vehicles, bridges, highways, office
buildings, schools, pipelines, power plants, refineries and even spacecraft. The UTI Welding Technology program prepares students for certification via the American Welding Society. The program includes hands-on training and instruction through a comprehensive curriculum developed in collaboration with Lincoln Electric, a global leader in the welding industry. “Lincoln Electric has a centurylong commitment to educating welders,”
said Jason Scales, Manager of Educational Services at Lincoln Electric. “With the critical shortage of welders today, we accelerated our efforts to provide educators at every level with skills and knowledge that employers demand. We are excited to expand our products, services and expertise to help the UTI team develop an outstanding welding education program.” The 36-week UTI Welding Technology program will train students as entrylevel welders and equip them with the knowledge and skills to work in the transportation, construction, structural, pipe and fabrication industries. Courses include Principles of Welding, Gas Metal and Shielded Metal Arc Welding, Pipe Welding, Safety, and more. The program is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC) and complements UTI’s core automotive, diesel, motorcycle, marine and collision repair programs across the nation.
Snell Motors Adds Jaguar to Land Rover Dealership in Frisco, TX
Dallas-based Snell Motor Companies was recently awarded the Jaguar Frisco franchise to add to its existing Land Rover Frisco dealership in Frisco, TX. The addition makes it the second
dual-brand location for Snell Motor Companies in the Dallas-Fort Worth area, with its Jaguar Land Rover Dallas dealership 20 miles south of Frisco. “This is an extraordinary milestone for the luxury automotive sector in Frisco,” said Mike Mykeloff, General Manager of Jaguar Land Rover Frisco. “The addition of the Jaguar brand to our existing Land Rover franchise will allow Jaguar Land Rover Frisco to offer this rapidly growing community our elite fleet of vehicles while delivering the superior customer experience our patrons have come to expect.” The Jaguar brand has received many accolades over the last year, including the Jaguar F-PACE being deemed World Car of the Year and Jaguar being designated as one of the fastest-growing automotive brands in 2017.
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AASP-Missouri Leadership & Management Summit
Join AASP-Missouri on Thursday, Oct. 12, 2017 at Syberg’s Dorsett for A Day with Richard Flint. Beginning at 2 p.m., Richard will be presenting two classes: 6 Steps to Embracing Change and From Great to Exceptional in Customer Service. Both of these classes are beneficial to Mechanical and Collision Businesses Management Teams, as well as to any vendor or supplier that has employees who provide service to its customers. The first class, 6 Steps to Embracing Change, will take place from 2 p.m. – 5 p.m. There will be a social from 5 p.m. – 6 p.m. with hors d’oeuvres, sponsored by Performance Auto Color & AkzoNobel Coatings . The second class, From Great To Exceptional In Customer Service, will be presented from 6 p.m. – 9 p.m. Attendees will be able to choose either class, or both. Attendees will save $50 by choosing both. Attendees can choose two classes for less than they would usually expect to pay for just one Richard Flint class. The first 40 people to register for each class will be included in a $100 cash drawing — one for each class.
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Tips for Busy Body Shops with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Best Practices for Photo Documentation: 10 Tips on How to Capture Useful and Relevant Images One of the many important steps in the claim handling process, according to Mike Cassata, owner of Hammer Insights, is proper photo and file documentation. During NACE Automechanika in July, Cassata explained how to capture useful and relevant photographs that show the vehicle damage or lack of damage. “Photos are a real and necessary part of the complete claim file,” said Cassata. “DRP managers will tell
3) If you can’t squat, find an alternative method that is comfortable for you.
4) Take the majority of photos from the height of the impact along the body of the vehicle whenever possible. A yard stick can be helpful to show the height of the impact.
5) Use sunlight and shop lighting to your advantage and remove excess snow from the vehicle. 6) Fill the entire frame with the vehicle.
7) Parking lot lines can help accentuate damages in the images.
8) Include worn or trashed interior photos
9) Take your time, and make sure you aren’t including the vehicle owner, family memMike Cassata, owner of Hammer Insights, during NACE bers, pets or your own reflecAutomechanika 2017 tion in the photos. Review the you that poor photos and documenta- photos prior to uploading them. tion can be a bigger problem than the quality of the repairs.” 10) Don’t upload excess photos and He shared insight with attendees carefully follow each carrier’s guideabout the correct process that the ma- lines. jority of carriers want to see, although the rules may vary from carrier to carRegardless of the extent of the damrier. age, Cassata said there are five angles While working through the inrequired for all front-end claims: the spection process, Cassata said there are front of the vehicle straight on, the two important photos to capture in adright-front corner, left-front corner, dition to a legible one of the license and both sides. Photos of the rear plate: the VIN sticker on the door and damage are captured in a similar way the dash instrument gauges with the and include the right rear, right center, car running. Not only will this idenleft rear and both rear sides. Side damtify any Malfunction Indicator Lamps age photos should be taken using a (MIL), but also other systems, mileage panoramic view with multiple angles and fuel level. from front to rear. After panorama and Cassata shared 10 tips for opti- prior damage photos are taken, Cassata mum photo documentation: said it is often necessary to take photos of specific damage. 1) Observe the direct and indirect In the event of a comprehensive damages and then walk around the veloss, also known as “other than collihicle once or twice before beginning sion” (OTC), there are additional photo take photos and writing the estimate. tos to take such as animal hair or remains in the event of an animal loss. 2) Use the catcher’s position to take If there was a fire, Cassata said to try photos and refrain from kneeling to and locate the origin and include your protect your knees. remarks in the comment section. “The
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cause of the fire is not covered, but the ensuring damage is,” he explained. In cases of vandalism or theft, Cassata said the damage is often random and not specific to one area of the vehicle. “Regardless of the damages, photograph both sides of the steering wheel and all possible points of entry such as door locks, door frames and glass,” he advised. “Remember, lack of damage in these areas can be just as important to the investigation as actual damages.” Photos are also required of the electronic equipment and console area. Cassata said to take time to note if the sound equipment was removed surgically or in a hurry, causing damage to the dash. He recommended taking a wider view of the front occupant compartment since it will often show additional damage to the dash, seats or removed parts left behind by those who vandalized the vehicle. For vehicles that have been in
floods, Cassata discussed fresh water losses as well as salt water losses. In terms of fresh water losses, he said to check with the carrier on its total loss guidelines. “Most will tell you that it’s usually up to the dash before they will total a vehicle,” said Cassata. In addition to removing the interior and trunk trim and carpets, he said to dry out the interior before mold and mildew appears. Salt water losses, according to Cassata, are usually deemed a total loss by a carrier if the water is over the rocker. “It’s much worse than a fresh water loss due to the corrosion,” he said. However, he said the water line could be higher than what shows on the interior on both salt water and fresh water losses. Many insurance carriers will ask for a total loss evaluation, and may even pay a DRP partner for this service. Cassata said to be thorough, accuSee Photo Documentation, Page 36
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National Organization Promotes Independent Jobbers
“It might not sound like a lot, but collectively our members represent Discounted purchasing power, indusmore than half a billion dollars in total try networking, business training, marsales across the markets,” said Robert keting support and an exclusive brand McKenzie, executive director of RDA. of collision repair products. “Our members have over 250 locations combined in 26 states.” RDA staff, which includes McKenzie, Marketing Director Melissa Jolls and Project Manager Georgia Thorson, receives direction from a board of directors consisting of RDA members. Additional members are involved in various committees and forums that provide insight and exRDA Member Gregg Schneider of Hi-Line Distributors pertise to the organization. Hawaii at 2017 Austin roundtable discussion “Our goal is to connect marThese are just some of the beneket leaders so they can pool resources, fits offered to members of the Refinish Distributors Alliance (RDA), a national membership organization of independent PBE (paint, body and equipment) distributors. RDA was founded in 2008 by seven members, and currently consists of 17 member distributors who represent a cross section of major refinish brands across the country. 2016 New Orleans RDA IPC product demo by Autobody News staff
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learn from one another and focus on “Our products are noted for their products and industry topics relevant to quality and consistency, and are field distributors,” said Jolls. tested by our group to ensure they perThorson said RDA is committed to form at a level exceeding customer exthe collision repair industry and strongly pectations,” said Jolls. shows its support through membership as well as participation with industry organizations and functions such as the AutoCare Association, CIC, CREF, I-CAR, NABC, SCRS, and SKillsUSA. “RDA realizes the importance of staying abreast of the latest information and trends, and supports organizations that Jay Devereux (center)of AccuTec presenting to RDA members during 2017 Austin IPC rodeo promote knowledge for industry professionals and safety for conIn addition, RDA’s IMPACT Elite sumers,” she said. Program provides business and marketRDA provides products, services, ing services that enable members to networking, and industry resources to offer competitive pricing on office tools members. It also works with major in- that body shops may use on a daily dustry manufacturers that sponsor the basis to better compete with national organization and supply leveraged chains. buying incentives to benefit members. “RDA programs help improve In addition, Jolls said RDA’s exclusive profitability, increase customer retenbrand, IMPACT Performance Prodtion, and attract new customers,” said ucts, provides a distinctive line of Jolls. quality products for members to offer Thorson said that one of the major shops. challenges facing the collision refinish
industry is consolidation, which is reshaping distribution in many ways. “The PBE aftermarket is affected by major players acquiring and taking body shop clients elsewhere for jobber services,” she said. “We even see consolidation within distribution, so RDA has become a place of refuge and resource for independent distributors to compete and succeed within their markets in a difficult and competitive environment.” “Why go through this alone when there is an opportunity to be part of an organization that supports the growth and success of independent distributors?” added McKenzie.
IMPACT display at RDA Member Sturdevant’s Refinish Supply Center in SD
RDA member Josh Byers, President of Automotive Color and Supply Corporation in Fort Wayne, IN, said RDA enables other like-minded dis-
tributors in the same circumstance to come together and create strategies and platforms that will position each individual distributor within the group at the top of their respective markets.
Team RDA (l to r) Melissa Jolls, Robert McKenzie and Georgia Thorson
“I enjoy the collaboration with my peers to solve problems, the costsavings to my business and to my customers, as well as the ability to offer national programs that would otherwise be unattainable to me as an individual business,” Byers said. RDA conducts sessions and events throughout the year that provide networking and various other opportunities for members and the shops they assist. “Training is the biggest and most important component we offer the shops,” said Jolls. “Over 1,000 companies have attended our live webinars
covering various business, regulatory and technical topics.” Thorson added that their 6H program for EPA & OSHA Painter Certification has trained, tested and certified hundreds of shops through the RDA platform. IMPACT Performance Conferences (IPC) are held twice a year by RDA and are well-attended by members, manufacturers and other guests. “We always incorporate training, pertinent industry information, and networking along with elements of team building, motivation and leadership,” said Thorson. “Attendance has doubled over the last three years due to the uniqueness and enhanced content of the events. We always try to make each meeting distinctive, and at least as good as the previous one.” Jolls said the meetings give members the opportunity to learn and meet high-profile industry speakers, and that
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they focus on topics relevant to distributors that help them become better at what they do. Thorson added, “McKenzie does a great job connecting all the elements of the meeting, and is a polished master of ceremonies.” Looking ahead, RDA’s major goal is to expand the organization. “RDA is always seeking new members, especially those who share commonalities with the group,” said McKenzie. “Our members find that independent distributors are stronger together and can influence the industry in ways that benefit individual members.” Visit the Refinish Distributors Alliance website http://rda-impact.com/. For more information about RDA membership and the organization’s upcoming IMPACT Performance Conference in Cleveland, OH, Oct. 16-18, contact Robert McKenzie at: robert emckenzie@me.com or 731-217-9081.
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Media and Publicity for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
First Impressions: The Appearance of Your Facility Might Be a Liability with Ed Attanasio
When I began writing on this industry, there were no DRPs and all of the cars still had carburetors in them (remember those good old days?). Over the years, I have seen body shops step up in almost every way. Today, the public has a better opinion of the collision repair industry as a whole. They can see it by the way their vehicles are repaired to OE standards and in many cases, are impressed by the overall customer experience, including the appearance of the
The owner of BumperDoc in Escondido, CA, spent $50,000 on his waiting area, and was money well spent
shops. The old days of greasy garages with old furniture and outdated magazines in their reception areas are no longer the norm. The collision industry has figured out that if you look like a professional operation, you’re already halfway there. I interviewed a body shop owner recently who had been rejected for an OE certification that he badly wanted. He was told the reason for this was that his facility didn’t look professional enough. His shop is I-CAR Gold certified, outfitted for aluminum repair and has some of the most cutting-edge equipment onsite, but he did not cut the mustard because his shop (mainly the waiting area) wasn’t up to par. He also mentioned that he has probably been knocked out of contention for several DRPs because of the state of his facility. About 20–25 years ago, we learned for the first time that most of the car dealerships in this country see a definite need to provide better facilities to compete. They beat most independent body shops to the punch by going over the top with their interior design and amenities. If you take a look at today’s new collision centers at car dealerships nationwide, you will
see things such as state-of-the-art architecture, multi-level parking, marble floors and restrooms that look like they should be at a Four Seasons Hotel. Customers are treated like royalty, with snacks, free water, juices and one of those coffee makers that offer you 6–8 different flavors from which to choose. They have hugescreen TVs and free Wi-Fi. One collision center in Northern California has an actual cafe on the premises, like its very own Starbucks, and—get this—a hair salon. It’s all about the old first impression, because in most cases it’s a lasting impression. It used to just be called customer service, but now it’s the “customer experience,” like it’s a ride at Epcot. It’s no longer just about doing a good job and getting a positive review as a result. No, now it’s about connecting with customers to retain them for the long run, or at least until the next time they get in an accident. If you could take your car to a really nice facility where you can be pampered, or to a shop that is old and beat-up, where would you go? You’re going to have to pony up your $500 deductible either way, so why not opt for the comfy collision center over the less attractive independent shop down the street? It’s not going to cost you any more for the repair, so it’s really an easy decision.
The reception area at Ramsey Paint & Body in Fort Lauderdale, FL, shows that you don’t need a lot of space to make it look good
Now obviously, you still need to do all of the right things to succeed, such as answering the phone promptly and correctly, greeting customers quickly and with enthusiasm, fixing the vehicle correctly the first time, delivering it to the customer on deadline and staying in contact with the customers throughout the entire repair, etc. But if you can do it all in a facility that impresses rather than depresses the customer, you’ve
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already set yourself up for victory. Ron Mercurio is the owner of the BumperDoc in Escondido, CA. It’s a franchise with 28 locations, the first of which he was able to buy in 2008. His
The waiting area at Uptown Body & Fender in Oakland, CA, gets 5-star reviews from its customers. It looks more like a cool cafe than a body shop
first goal was to make his facility look professional and clean, but with a warm and fuzzy feel. “We worked very hard on our reception area to make it engaging and to show our customers that we care about quality,” Mercurio said. “We spent
more than $50,000 on our lobby alone, because we knew we had to have the right image. We are located near Rancho Santa Fe, which is a very high-income area, so those people are used to nice facilities and expect top-notch customer service.” By taking the high road when it comes to his facility’s appearance, Mercurio’s business gets better every year. “We are always looking to improve our space, and that’s why we took out a rolling door and installed a large window where our customers can see our techs working on their cars,” he said. “It offers a whole new level of transparency, and our clients really appreciate it.” At Uptown Body & Fender in Oakland, CA, co-owner Giovanna Tanzillo has been increasing her business every year since she opened its doors with her partner, Lisandro Allende, in 1992. She See First Impressions, Page 22
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Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Insurers Discuss Scanning, OEM Position Statements, Automaker Influence of Shop Choice Representatives from four major instatements and repair procedures in customers know “where their car can mediate notification that a vehicle has surance companies weighed in on general? be fixed [correctly].” been damaged” in order to quickly scanning, automakers’ influence on “We don’t consider them Andreoli, like all the in- start helping the driver. Without that consumers’ choice of shops, and refergospel,” Hoffbauer said. “A surers on the panel, noted currently, he said, there are delays in ring drivers to OEM-certified shops at lot of them are pretty vague.” that customer shop choice is loss reporting, and vehicles may get the sixth annual MSO Symposium. He said there are some a key philosophy at his com- towed multiple times prior to repairs. The half-day symposium was held position statements “we basipany. He said one “If we could collaborate in July during NACE Automechanika cally disagree with” and “have of the “cycle time” with stakeholders to help that in Chicago. The event was open not our own philosophy on,” such measurements his process happen seamlessly only to multi-shop operators (MSOs), as OEM prohibitions on use company tracks is for the customer, [and] make Progressive’s but also to larger single-location shops of non-OEM parts or the re- Chris Andreoli said the length of time that notice immediately so (those with annual sales in excess of $3 pair of wheels. between the acciwe can be there to help them vehicle telematics could be used to million). “We try to study things. dent and getting the as quickly as possible, that more quickly get Panel moderator Marcie Tieger We try to talk to the OEMs vehicle to the shop, [would be] a real win for all USAA’s Kyle of Symphony Advisors asked the in- [to get more information or vehicles into shops so if vehicle telemthe stakeholders,” Lindorfer Thompson said after accidents surers if they anticipate issuing a forspecificity],” Hoffbauer said. atics helps “com- DRP shops should agreed. direct cars they mal position on vehicle scanning. “We have these ongoing conversapress that timeframe,” that is Tieger asked the panelists are not equipped Sandee Lindorfer, auto line tions.” a good thing. if a direct repair shop turns to repair to other management director for All“We’re aligned with Russ: Kyle Thompson, assisaway an assignment, saying shops state, said her company is It’s not gospel for us, too,” tant vice president of claims it is not equipped or trained working on such a statement, Lindorfer said. “I agree [that] for USAA, agreed that his company to fix that particular vehicle, whether though she did not provide a sometimes they just don’t wants to work with automakers to it would be viewed by the insurer “as timeline for it. make sense. So we try to “align our direct repair networks with not up to date” and thus jeopardize its “We evaluate each claim work with the OEMs when the offerings that they would [provide] status in the program. on a case-by-case basis. That we come across those to see at the time of loss,” and get that “imSee Insurers Discuss, Page 36 Allstate’s Sandee has always been how we’ve Lindorfer said her if we could do something to approached claims settlehelp communicate with them company reviews vehicle scanning ments,” Lindorfer said. “We and elevate that particular sitcontinue to look at pre-and charges on a “case- uation that may just not seem by-case basis.” post-scanning and continue to to make sense to us, or even learn. We leverage all our partners here, to repairers. Some statements make a as well as Tech-Cor, to give us feedlot of sense, and others we question back. And we engage with OEMs to and try to collaborate with the OEMs.” better understand their position stateAs the automakers move toward ments.” using vehicle telematics to automatiLindorfer said Allstate would like cally be notified of collisions, are the shops that conduct scans on insurers concerned about the vehicles that are part of Allpotential influence automakstate claims to include that ers may have on getting drivscan information with the ers to OEM-certified shops claim file. rather than an insurers’ direct Russ Hoffbauer, proprepair shop? erty and casualty claims di“First, I don’t think it’s rector for State Farm, also mutually exclusive because a Russ Hoffbauer of said scanning continues to be State Farm said his lot of shops that are on our “a learning process,” and that Select Service program are company doesn’t the company makes its deci- view OEM position certified,” Hoffbauer pointed statements “as sions on payment for scanning out. “I do think the OEMs gospel.” on a “case-by-case” basis relhave the technology advanative to the “nature of the damage and tage right now, having the technology what technology the vehicle has.” in their automobiles. So we’re defi“From our perspective, we’re nitely working with them, talking to kind of in the same place, just gatherthem, and trying to determine how this ing more information,” said Chris is going to work in the future and the Andreoli, corporate physical damage steps that we all should take.” process director for Progressive’s netHe said it basically should come work repairs. down to everyone involved—automakHow do they view OEM position ers, insurers and even shops— letting
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Southwest Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-AZ’s 2017 Automotive Training and Expo Featured More Than 60 Hours of Training with Chasidy Rae Sisk
ASA-AZ hosted its 2017 Automotive Training and Expo, “Don’t Get Left Behind,” from June 9-11 at the WeKoPa Resort and Conference Center in Scottsdale, AZ. “It was a huge success!” said ASAAZ Executive Director Luz Rubio. “This year, we delivered 60 hours of training to both collision and mechanical shops from all around the state of AZ, and several shops even closed for the weekend so that their owner, manager, service advisor and technicians had the opportunity to participate.” The only event of its kind in AZ, the 2017 Automotive Training and Expo featured some of the industry’s best trainers who shared valuable information with attendees. However, the event kicked off with ASA-AZ’s Golf Outing on Friday morning where “48 golfers enjoyed the views of the McDowell Mountains,” according to Rubio. From 1–4:30 p.m. on Friday af-
ternoon, a Collision I-CAR class on “Vehicle Technology Trends and Diagnostics Overview (VT117L01)” was taught by Dan Martinez, while GM’s Marlon Kunz provided a tech-
Attendees enjoyed networking opportunities at ASA-AZ’s 2017 Automotive Training and Expo
nical presentation on “GM Beyond the Four Strokes: What Do You Do When Nothing You See Is Wrong, But Something Is Broken?” Chris Chesney from
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Advance Auto Parts taught managers how to “Make Diagnostics a Profit Center,” and service advisors gained information about “Next Generation Telephone Skills for Optimized Repair Shop Profits” from AdvisorFix’s Jeremy O’Neal. Friday afternoon also included a 90-minute seminar on “Enforcement Trends and How to Handle an Audit How to Avoid the Top 5 Body Shop Citations” with Brandon Thomas of GMG EnviroSafe, as well as four 2hour options: “Tips on Interviewing, Discipline and Termination” by Attorney Thom Cope, “The State of OEM Certification Programs” with the Certified Collision Group’s Michael Quinn, ASE’s Walt Commans’ “The ROI of Having ASE Certification,” and “Show, Don’t Tell - Digital Inspections Sell,” a product demonstration by Bolt On Technologies’ Frank Dragoni. The expo was open from 4:30-7 p.m., running concurrent with the Wel-
come Reception, and providing attendees an opportunity to visit vendors and network with peers.
ASA-AZ offered valuable industry training
Rubio stated, “This year’s vendor showcase featured many of our local vendors that support the activities of ASA and the automotive industry as well as many new vendors such as Shop-Ware, APN Staffing, Auto Nation, GMG EnviroSafe and Snap Financial.”
On Saturday morning, the event resumed with breakfast and a welcome speech delivered by ASA National’s Executive Director Dan Risley. From 8:30-11:45 a.m., seven educational opportunities were available. I-CAR’s “Understanding the Cycle Time Process” was presented by Dan Martinez, while GM’s Marlon Kunz covered “Body Electrical Systems.” Managers chose between “How to Use Financial and Operational Data to Maximize Profits,” presented by Bob Ward of Wardden, LLC; and Bob Cooper of Elite Worldwide’s “The Employee Management Show.” In addition to two technical seminars for mechanical shops, Amy Mattinat of Auto Craftsmen, VT, delivered a marketing seminar titled “Ten CostEfficient Ways to Gain Customers and Grow Business.” During lunch, Ben Johnson of Mitchell 1 spoke about “What You Need to Know about Telematics and Emerging Vehicle Technology.” Designed to address what technologies shop owners, managers and technicians need to know, the discussion provided an overview of the automotive industry and related topics by exploring technologies being developed and
released across the globe. Saturday afternoon’s offerings included two mechanical sessions, two management seminars, and I-CAR’s “Hazardous Materials, Personal Safety and Refinish Safety (WKK01)” with
ASA-AZ is grateful for their sponsors’ support
Dan Martinez, as well as Jeremy O’Neal’s “Dominate Google Through Positive Online Reviews” for service advisors. The management sessions included Bob Cooper’s “Eight Steps to a More Profitable Shop” and Bob Ward’s “The Perpetual Business Succession by Design.” The expo and reception on Satur-
day evening featured a buffet and nohost bar, accompanied by music from The Last Territory. ASA-AZ hosted a Silent Auction to benefit the association’s Scholarship Fund, and prize drawings were also held. Following breakfast and the event’s closing announcements on Sunday, the 2017 Automotive Training and Expo concluded with two roundtables. Amy Mattinat facilitated the Owners and Managers Roundtable, while the Service Advisor Roundtable was facilitated by Jeremy O’Neal. More than 30 industry vendors sponsored ASA-AZ’s 2017 Automotive Training and Expo, including AutoZone, Bolt On Technologies, Federated Insurance, Parts Authority, O’Reilly Auto Parts, NAPA Auto Parts, Auto Nation Parts Centers, and Reliable Risk Management, among many others. The association expressed gratitude for the aid received from these companies. “Without the financial support of our sponsors, an event like this could not be possible,” Rubio said. ASA-AZ’s 2018 Automotive Training and Expo will be held at the same location from June 21–23, 2018. For more information about the association, visit www.asaaz.org.
ASA-CO to Host Extreme Communication on August 28 by Chasidy Rae Sisk
On August 28, ASA-CO will host “Extreme Communication,” the next course in the association’s 2017-18 Professional Business Series, at Kenz & Leslie BG Training Center in Wheat Ridge, CO. Julie Massaro, Executive Director of ASA-CO, shared, “Since communication is at the heart of every business deal and transaction, it is extremely important to communicate effectively with co-workers, customers and family members. We are bringing this seminar to our members to help them hone their communication skills.” Following dinner at 6 p.m., the seminar on “Extreme Communication” will be taught by ESI’s Maylan Newton from 6:30-9:30 p.m., and is designed for owners and managers. Newton will discuss how to have difficult conversations that many people prefer to avoid by providing new tools to deal with these dreadful discussions and by teaching attendees how to turn confrontations into conversations that improve the business, lower stress and develop better leaders. To register for this seminar or any of the upcoming sessions in the Professional Business Series, visit asacolorado.org.
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 21
Techs of Tomorrow: SkillsUSA National Winner Talks Competition, Equipment and Preparation According to a company press release, “AkzoNobel, a global paints and coatings company and the largest sponsor of the SkillsUSA competition, was instrumental in the creation of the 53-foot rig designed by Rick Farnan
by Victoria Antonelli
water College in Willmar, MN, in spring 2017 and now works full-time at Kruse Collision Center in Marshall, MN, as a combination technician. “I reached out to my instructors from Ridgewater, Jim Wallace and Joe Wambeke, to help me prepare as well,” he said. Ahmdt placed in the Minnesota state SkillsUSA competition before moving on to nationals. “During the national competition, we had to write an estimate one day, and then the Dylan Ahmdt (center), winner of the SkillsUSA competition next day there were multiple in June, with his instructors Joe Wambeke (l) and Jim stations. We had 45 minutes at Wallace (r) each one,” he explained. “The to advance the training offered at this first station I went to required fixing a year’s event. This is the second installscratch on a bumper that I had to ment of the spray technology, which feather out, prime and then block back was first created in 2012 by AkzoNobel out.” engineers.” At the second station, Ahmdt When asked what the competi- completed color ID and masking. tions consisted of, Ahmdt said it was a “At that one, we took a test on series of high-pressure situations in where the paint codes would be found, which the participants had to think on and then we had to mask up the side their feet. of a car as if it were being painted,” he “If we had let getting nervous affect us, we wouldn’t have been able to perform,” he explained. “The best thing I did was doing what I had been taught, at school and through my mentors, and not following what anyone else was doing during each test.” In order to prepare for the competitions, Ahmdt said he took the time to study different P-Pages, or estimating guides, so that he would know about the products he’d be spraying. “I also wanted to refresh my memory on what I had learned in school,” he said. Ahmdt graduated from Ridge-
Continued from Page 16
walls. Our customers hang out here and we don’t mind it, because we know that it’s all about the attitude we want here at Uptown Body & Fender.” So, if you’re thinking about sprucing up your shop, especially in those areas that are called “customer facing”—a business service feature experienced or seen by a customer—go for it. It will be money well-spent, because you can be one of the best shops in your area, but if it your facility looks like something out of “The Walking Dead” or “Sanford & Son,” you’ll never get the love and respect you deserve.
Twenty-year-old Dylan Ahmdt took home gold at the 53rd annual National Leadership and Skills Conference (SkillsUSA) in Louisville, KY, which took place from June 19-23. Winners of the Automotive Refinishing Technology competition received a snap-on tool box with tools and Carhartt clothing and accessories, as well as multiple training opportunities from different paint companies. “It was very fun competing in SkillsUSA once I was able to get over the nervousness,” said Ahmdt, a Danvers, MN, native. “It’s an incredible experience, but it’s tough.” He said the most unique part of the SkillsUSA competitions is the hands-on experience. “I chose collision repair over a traditional four-year degree because I enjoy working with my hands,” Ahmdt said. “I’ve always loved cars and learning how they work.” He said that this year, the competitors were able to use new mobile spray technology as part of their test. Ahmdt and 27 other participants were able to get firsthand experience in the AkzoNobel upgraded mobile spray booth during the six-hour challenge, which exposed them to new and emerging technology. “It helped our teams color-match paint perfectly in a matter of seconds,” Ahmdt said. “It was really interesting to get inside and work with new technologies emerging for our generation of auto aftermarket painters.” Ahmdt’s first-place win earned him an all-expenses-paid trip to visit AkzoNobel to extend his education and attend a paint manufacturing training session.
First Impressions
credits much of her success to the look and feel of her shop. “We wanted to create a comforting atmosphere for our customers, because when they come here, they have a lot of things on their minds,” Tanzillo said. “They are stressed out, so we want to alleviate that as quickly as we can. That’s why we created a waiting room with an espresso and tea bar, classical music piped in and artwork all over the
22 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
explained. The third station focused on color tinting. “We were given one spray out that was marked as the car, and then one other spray out. We had to compare it to the car and determine what toner we would add to make it a match. Then we actually had to go in the booth and tint a color, and do a spray out,” Ahmdt explained. The last station tested their knowledge of spot repair. “They had a panel that they had sealed a corner of, and we had to prep the panel for paint and clear,” Ahmdt said. “Then we had to go and spray the color and blend it out, and then clear the entire panel.” Now that the national competition is behind him, Ahmdt said he is trying to figure out if he qualifies for the 2019 WorldSkills in Russia. “If I’m eligible, I’d like to compete,” he said. To learn more about Ridgewater College, visit: www.ridgewater.edu/ Pages/default.aspx. To learn more about AkzoNobel, visit: www.akzonobel.com.
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 23
Continued from Cover
CIC Panel
parts, Gillis said. “Consent is a really tricky issue for consumers and consumer advocates,” he said. “Because of course we believe in full disclosure. But when you have to sign for something, there’s an inherent bias built into that signature. Therein lays the problem.” But Weikel said efforts to eliminate any state-required disclosure and consent won’t happen “on our watch.” “They have been aggressively defeated every place they have been filed,” he said. “I don’t see why we don’t have a bill in every state requiring informed consent.”
are regarding the parts used in the repair of his or her vehicle. Just as the automakers’ view of parts disclosure and consent probably came as no surprise to CIC attendees, advocates for the use of non-OEM parts predictably voiced objection to some aspects of such state laws. “Disclosure is important,” Terry Fortner, vice president of corporate accounts at LKQ Corporation said. “Everybody should know how their car is being repaired. But written consent was developed not for the conFederal Patent Proposal sumer, but for private interest groups. The panel also briefly debated the merAt the end of the day, we beits of the “Promoting Automolieve in disclosure, but we are tive Repair, Trade and Sales not a supporter of written Act of 2017,” or the “PARTS consent.” Act,” proposed federal legisAaron Schulenburg, lation that would slash the executive director of the Sotime that automakers can use ciety of Collision Repair design patents to prevent other Specialists, said he sees some Terry Fortner of LKQ companies from producing reirony in proponents of nonplacement crash parts from 14 Corporation said OEM parts actively working traceability of parts years to just 30 months. The is more important to eliminate state laws rebill is designed to increase that certification quiring disclosure, consent or competition for OEM crash other restrictions on the use of such parts by shortening the period under parts. Speaking at an event earlier this which automakers can prevent the proyear, for example, a representative of duction and sale of non-OEM versions LKQ said his company worked to of patented parts. overturn an Arkansas law that limits Similar bills have been introduced the use of non-OEM parts without the during every Congress since 2007, and written consent of the vehicle owner Weikel said his organization doesn’t (the law was not overturned). “think it has any chance of going any“That sends a bit of a mixed mes- where” in this Congress either, in part sage in my opinion, especially when because it singles out only one industry you look at the variation in the [qual- – automaker replacement parts – for ity levels of the] parts that are avail- decreased patent protection. He said able in the marketplace,” Schulenburg patent law correctly protects those who said. “Why not safeguard the con- pour resources into the design of somesumer’s ability to choose that thing from those who simply on their vehicle?” copy that item “without actu“There’s a fundamental ally investing the money problem with consent—Why that’s necessary to develop do you need to consent to them.” something that is the same,” Allowing generic verJack Gillis of the Certified sions of prescription drugs Automotive Parts Association CAPA’s Jack Gillis without giving the developer (CAPA), responded. “There’s of a new drug time to recoup said requiring an inherent bias that the con- consumers’ consent its investment might lower to the use of nonsumer hears when you say, drug costs, Weikel said as an OEM parts can ‘We’ll get your car all fixed analogy, but “it’s not fair to bias their view up, but by the way we are the company that’s actually of such parts going to use these parts here, invested all that money on and you need to sign on the dotted the front-end.” line that you know we’re using these Gillis countered that someone parts.’” who buys a vehicle shouldn’t “be an Having to sign to consent to the use indentured customer” of the auof certain parts can unfairly lead con- tomaker, “having to buy all of my parts sumers to question the quality of those from that company.” He said the fed-
24 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
eral bill gives automakers 2.5 years of patent protection – “even though we think it should be zero years” – and prevents one automaker from copying the vehicle design of another. But Weikel said if non-OEM parts manufacturers want to make versions of parts covered by an OEM patent, they can do what LKQ has done in some cases: sign an agreement with the automaker that allows them to sell non-OEM versions of the parts in exchange for licensing fees paid to the OEM. “That’s what should happen,” Weikel said. “That’s what happens in other industries.”
Views on certification and tracking Panelists shared viewpoints on a variety of other issues related to non-OEM parts during the CIC discussion:
• Gillis said he thinks all non-OEM parts – including mechanical parts – should be certified as equivalent to OEM. “It’s far more important that steering mechanisms and brake pads and true safety devices being put on cars match [the OEM],” Gillis said. “It’s probably more important that a
brake pad meet the specifications that the original brake pad met than a fender does.”
• Fortner said he believes that traceability of parts is more important than certification of the parts. He said his company’s KeysIQ program allows a part the company sells to be traced from the manufacturer to the specific car on which it was installed. In the case of a recall—and Fortner said there have been two this year—“We’re able to trace that part all the way to the shop and to the car.”
• Weikel said among the concerns he has with non-OEM parts certifications is the lack of crash-testing conducted on such parts. He said CAPA —to its credit—decertifies parts when deemed necessary, but “what happens to the consumer that got that product the day before it was decertified?” He said shops also say they order certified parts only to have non-certified parts delivered.
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 25
Continued from Cover
State Farm Lawsuit
29-year-old wife, Marcia, who were trapped inside their used 2010 Honda Fit when the glued roof failed. It then created a domino effect that caused the vehicle’s safety cage to collapse, which led to the fuel tank located directly underneath the driver’s seat to rupture. During the Dec. 21, 2013 accident, the couple was trapped behind their steering wheel. Matthew Seebachan remained conscious as the fire burned his feet and lower legs before he was extracted from the wreckage by another driver. Another motorist then rescued Marcia Seebachan through the passenger window of the badly damaged vehicle. Neither was killed, but Matthew Seebachan’s burns took two full years to heal, according to their counsel. The couple is represented by vehicle safety lawyer Todd Tracy with the Tracy Law Firm in Dallas, who filed two civil cases—one against John Eagle Collision Center, and one against State Farm. The federal lawsuit claimed that several years ago, State Farm coerced John Eagle Collision Center into using
an untested 3M panel bonding adhesive in lieu of Honda-specified welding to replace the hail-damaged steel roof of the Honda Fit that the Seebachans had bought as a used vehicle. “The couple suffered crushing injuries... because John Eagle Collision Center allegedly cut insurance costs by using glue instead of welding the car’s metal structure together, according to a defective repair lawsuit against the Dallas auto body shop,” the Tracy Firm said in a press release. “John Eagle Collision Center, by covering up its arrogant repair of using glue rather than following the manufacturer’s body repair specifications and using welds just like Honda had done when they designed, developed, and tested the vehicle, created a time bomb that was waiting to explode,” Todd Tracy said. “This shop repairs almost 5,000 vehicles a year in Dallas alone, not counting their Houston Collision Center. It is a billion-dollar-a-year business that apparently is not following the manufacturer’s repair recommendations. In this case, the insurance company paid John Eagle $8,500 to make a repair that was not up to manufacturer standards. Is every vehicle that leaves a John Eagle Collision Center in Dallas or
26 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
Houston a ticking time bomb waiting to kill or maim? That’s a good question.” On July 7, the body shop director at John Eagle Collision Center, Boyce Willis, stated under oath that John Eagle intentionally violated Honda’s 20092013 Honda Fit body repair manual when it glued the new steel roof onto the 2010 Honda Fit with 3M 8115 adhesive. “State Farm dictated to John Eagle Collision Center about how the car was to be repaired, i.e., to use adhesive rather than spot welding,” Willis said. “Furthermore, State Farm can ‘trump’ the [OEM] specifications because the repair facility needs to get paid.” The suit alleged fraud instead of shoddy work or poor shop management, according to the lawsuit. “Defendant John Eagle unilaterally chose—on its own—to purposefully ignore Honda’s repair specifications,” it stated. “Defendant John Eagle made a conscious and deliberate decision to place unsuspecting people in a vehicle that it knew or should have known could cause serious injury or harm if involved in an accident, such as occurred in this case. Indeed, John Eagle knew that people could be killed or seriously injured, and deliberately chose to place the Seebachans in danger.”
The repair was done by the vehicle’s prior owner, and Matthew and Marcia Seebachan were unaware of it when they bought the car, according to Robert Riggs, a spokesman for Tracy Law Firm. A Carfax report allegedly did not contain the information, according to a report from Tracy Law Firm. “State Farm advertises that it is a good neighbor, but they are committing what is known as economic terrorism, and the body shops and the consumers are the victims,” Todd Tracy said. “The insurance company says, ‘Go ahead and do a subpar repair,’ and then they cover it up with a nice paint job and hand it over to the customer. Good shops know that they have a moral obligation to meet OE standards, but then they’re not getting paid for them by the insurance companies and losing millions. The insurance companies wear them down, and eventually something like this happens and people get hurt.” The consumer suffers in the end, Tracy said. “State Farm secretly and covertly plays Russian Roulette with its customers and the public by forcing body shops to choose their profits over the safety of the motoring public,” he said. “State Farm sells auto insurance, so they
are not in the business of designing vehicles, or testing vehicles, or repairing vehicles. And their adjusters are certainly not professional automotive engineers with an expertise in designing vehicles that provide crash-worthy protection to prevent serious injuries. No insurance company should ever dictate to a collision center how to repair a vehicle. Such coercion jeopardizes public safety on the nation’s highways. We know what the insurance companies have done to health insurance, so do we want them dictating what happens in the collision repair industry as well?” Tracy said that it ends up being a lose-lose situation for body shops. “If you’re a shop that worries about safety and quality, you really have only two viable options, because the insurance company has a gun to their head,” he said. “First, they can refuse the work, but that means they’ll go bankrupt. Or they can do the repairs to OE standards and then try to get paid by the insurer for a proper repair, but that ends up being just a slower form of bankruptcy.” John Eagle Collision was reportedly paid in excess of $8,500 by State Farm for a July 2012 hail repair, which entailed a complete roof replacement, according to the Tracy Law Firm.
Honda OEM repair procedures direct shops to use a tack-weld on the front and rear corner edges of the new roof, and then perform a series of two- and threeplate spot welds and MIG plug welds to achieve the repair. Willis also stated that 3M informed the shop that it was okay to use their adhesives on roofs, but then he also recognized that 3M documents stated that Honda prohibits that practice. In addition, Wills claimed in his deposition that utilizing structural adhesive was superior to welding, while admitting that he had no data to support the claim. “It’s cleaner [and] it’s less intrusive to the vehicle,” Willis stated, according to the court transcript. “Keep in mind, it’s a—it’s a panel. It’s not a structural piece—it’s a panel.” The lawsuit also accused State Farm of violating the Texas Deceptive Trade Practices Act. In addition, Texas Watch, a nonpartisan citizen advocacy organization dedicated to ensuring that insurance companies and other corporations are accountable to their customers, requested that the Texas Department of Insurance (TDI) investigate State Farm’s involvement in the allegedly non-OEM repairs. “For many years now, we’ve been
telling shops that something is going to happen and someone is going to die because we didn’t follow the procedures,” said Toby Chess, an I-CAR program instructor, training specialist, former salvage yard operator and regular writer for Autobody News. “Why isn’t the insurance company that the shop worked with on the line as well? Because we indemnified them, which means the burden is all on the body shop side while the insurance companies reap the benefits. “Honda says you weld that roof on, but the shop decided we’re going to glue it on. We have three things here— money, time and quality—which two do you want? The insurance companies want it cheap and fast, and what ends up going out the door is quality.” Aaron Schulenburg, the Executive Director of the Society of Collision Repair Specialists (SCRS) weighed in on the case. “Some things require a catalyst, but nobody ever wants a catastrophe like this one [in order] for it to happen,” he said. “It stresses the importance of doing OE repairs and creating a culture within your business that is focused on gaining access to the information that’s out there, on every job. As an industry, we
need to do a better job of recognizing those who perform the best, in accordance with OE procedures, and setting them as the example that others should be encouraged to follow. “There are documented repair procedures out there, and the industry needs to embrace utilizing them. This case, and others, is a prime example of why it is important that we as repairers make that a priority in all of our repairs. “In fact, in June of this year, SCRS issued a position statement on the matter. It documented that it remains our position that if an OEM documents a repair procedure as required, recommended, or otherwise necessary as a result of damage or repair, those published procedures would be the standard of repair until such time the documentation changes. Disregarding a documented procedure that is made available to the industry creates undue and avoidable liability on the repair facility performing the repair. “We will obviously have to wait and see how this plays out, but in the end, the obligation to repair these cars correctly is on you to use your professional experience and the tools that are available to perform the appropriate repair. The parties that make these deterSee State Farm Lawsuit, Page 41
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 27
Motor Vehicle Deaths Modestly Lower than Last Year Preliminary estimates from the National Safety Council indicate motor vehicle deaths in the first six months of 2017 are 1 percent lower than they were during the same six-month period in 2016. However, the country is fresh off the steepest estimated two-year increase in motor vehicle deaths since 1964, and it is too early to conclude whether the upward trend is over. The estimated deaths during the first six months of 2017 are still 8 percent higher than the 2015 six-month estimates, and the final six months of the calendar year—July
to December—tend to be deadlier than the first six. An estimated 18,680 people have been killed on U.S. roads since
New Labor Rate Survey Website from NABR National AutoBody Research (NABR) recently announced the launch of its new Labor Rate Survey website, LaborRateSurvey.com, making its VRS Labor Rate Surveys available to all collision repairers nationwide. LaborRateSurvey.com provides body shops easy access to NABR’s three surveys: VRS Standardized Labor Rate Survey, VRS Labor Rate Survey for Luxury & Special Vehicles, and the specialized Auto Body Labor Rate Survey for California, which is compliant with new survey regulations from the California Department of Insurance. The new site provides an immediate opportunity for
authorized collision repairers to further strengthen the industry’s largest independent labor rate data source, which combines labor rate prices, training, OEM certifications and equipment. All data is reported by the shops themselves and survey results are made available to both collision repairers and insurers. “With a simple, easy-to-remember website address like LaborRateSurvey.com, it could not be any easier for all shops in the industry to access and take the VRS Labor Rate Surveys,” said Sam Valenzuela, President of National AutoBody Research. “The VRS survey
Service King’s Chicago Teammates Contribute $45,700 to Angels on Assignment
Service King Collision Repair Centers®, with the help of its local Chicago teammates, recently presented a donation in the amount of $45,700 to Angels on Assignment as part of the company’s ongoing Service King Cares initiative. Angels on Assignment is a local non-
profit organization based in Crete, IL, supporting families facing serious medical issues by providing financial assistance, transportation and sponsoring “Fun Days” to provide emotional support. The donation was made possible through funds raised at Service King’s second annual Chicago Charity Golf Tournament, which attracted about 140 golfers from around the community. “Angels on Assignment is overwhelmed by the generosity of Service King,” said Cheryl Albrech, Angels on
Assignment President. “Their contribution will help at least nine families in our area. This will allow us to increase the number of families we help in a year.” Service King’s annual Chicago Charity Golf Tournament has now directly benefitted Angels on Assignment in back-to-back outings, totaling more than $70,000 in support of the organization. “The Service King family and Service King Cares initiative is driven to join hands with those in our local communities who truly make an impact,” said Randy Jenkins, Service King Market Director. “Angels on Assignment certainly touches the lives of those who need it most across the Chicagoland area. It’s our hope this small token of our appreciation continues to fuel Angels on Assignment and its inspiring mission.” Service King is one of the fastestgrowing automotive repair organizations in the country. Through its Service King Cares initiative, the organization contributed more than $750,000 to nearly 100 different nonprofit organizations in 2016.
28 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
January and 2.1 million were seriously injured. The total estimated cost of these deaths and injuries is $191 billion. “The price of our cultural complacency is more than a hundred fatalities each day,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Although the numbers may be leveling off, the Road to Zero deaths will require accelerating improvements in technology, engaging drivers and investing in our infrastructure.” The National Safety Council has tracked fatality trends and issued esti-
mates for nearly 100 years. Last winter, the Council estimated as many as 40,000 people were killed on the roads in 2016—a 6 percent rise over 2015 and the largest two-year percentage increase in deaths in 53 years. Those estimates—as well as the 2017 preliminary estimates— are subject to slight increases and decreases as the data matures. Factors impacting motor vehicle fatality trends include an improved economy and lower gas prices, both of which have helped fuel a 1.7 percent increase in miles driven from 2016 to 2017.
solves all of the key problems with surveys that this industry has faced and struggled with for decades.” NABR provides an independent and innovative solution that levels the playing field for everybody. Among many other features, the survey is open to all repairers and is easily accessible; is available online 24/7; is standardized, so all shops take the same survey; measures posted rates; the data is not changed or manipulated in any way; and through the Variable Rate System (VRS), all labor rate data is fully transparent equally to everybody—collision repairers, insurers, and consumers. In addition, all
surveys go through a multi-point verification and validation process to ensure only genuine auto collision repair shops are included in survey results and to verify that claimed certifications are real. Through its “Each 1, Tell 2” campaign, in which one shop takes the survey today and asks two others to take it tomorrow and do the same, LaborRateSurvey.com has the potential to reach the industry’s 33,000 body shops in only 15 days. But body shops must participate and help spread the word in order to help both themselves and insurers obtain the valuable labor rate data they need.
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 29
NACE and Automechanika 2017
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H OND A TEX AS
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Fiesta Honda S a n A n t on io
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Honda Cars of McKinney M c K in n ey
972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com
Honda of Frisco F ri s c o
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32 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
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Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com
Dept. Hours: M-F 7-5:30 parts@superiorhonda.net
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Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com
Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com
Dept. Hours: M-F 7:30-7; Sat 8-4:30 parts@hondaofgreeley.com
San Ma rco s
866-392-1313 512-392-1313 Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com
Howdy Honda
O K LAHOM A
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A u stin
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877-941-6513 512-443-4300
Tu l s a
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Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com
Kelly Grimsley Honda Od ess a
844-453-5594 432-334-6632 Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com
Russell & Smith Honda
Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com
Fowler Honda No r m a n
866-369-5376 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com
Hou st on
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800-833-0180 713-663-4266
Ard m o re
580-226-1000
Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com
Dept. Hours: M-F 7:30-6; Sat 7:30-2 travis.pierce@fentonmotors.com
T E X AS
LO UIS IANA
Mac Churchill Acura
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Fo r t Wo r t h
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888-824-9634 817-806-0571
866-733-2861 225-756-6166
Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com
Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
Sterling McCall Acura
Walker Acura
Ho u st on
M e ta i r i e
713-596-2337 713-596-2338
800-359-8555 504-465-8555
Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com
Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com
OK LAHO MA
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CO LO RADO
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888-550-7278 918-664-2300
800-648-4488 303-442-1767
Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
Dept. Hours: M-F 7-6; Sat 8-5 parts@flatironsimports.com
Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
Fisher Honda
Mile High Honda D en v er
800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net
AR IZON A
Chapman Honda Tu cs o n
800-461-6744 520-202-5770 Dept. Hours: M-F 7-6; Sat 8-4 carlkeefe@chapmantucson.com
Earnhardt Honda Av on da l e
800-350-6537 623-463-4380 Dept. Hours: M-F 7-9; Sat 7-6 gluna@earnhardt.com
C OL OR AD O
U TAH
Mile High Acura D e nv e r
800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net
Pikes Peak Acura C ol o ra do S pr in gs
800-456-9568 719-955-1715 Dept. Hours: M-F 7-6; Sat 8-4 joe_benson@pikespeakacura.com
Jody Wilkinson Acura Salt Lake City
800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com
Mike Hale Acura Murray
800-292-4595 801-263-0202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com
AR IZON A
Acura of Peoria Pe o r i a
866-347-4507 623-792-2559 Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 33
Product Innovation Industry Veteran Invents Useful Tools at Collision Edge with Ed Attanasio
Tim Briggs, 44, and his wife, Ginger Briggs, are the owners of Collision Edge and the inventors of many products, including The Tape Thing, The Dent Viewer and The Estimating Kit. These tools are designed to simplify basic tasks and make technicians’ lives easier. Founded in 2014 and staffed full-time by Ginger and her sister, Pam Griswold, Collision Edge is located in the family barn in Chattahoochee Hill Country of South Atlanta. Tim Briggs entered the collision repair industry as a distributor/rep for Fowler Color Company in Atlanta, GA, in 1996 after working as a painter and airplane mechanic for many years. “I didn’t know anything about the industry. I focused on learning one new thing every day and asked a lot of questions” Briggs said. “After that, I got a job working as a territory manager and did regional business development for PPG for a decade. During
my last three years there, I managed their largest MSO account and there was a ton of travel involved. My young family needed a dad at home, so I decided to get back into distribution and went to work for a regional jobber to get off the road. My heart has always been in the shop, solving problems for customers.” Today, Briggs is the Director of Strategic Development for National Coatings & Supplies, Inc. (NCS), where he works on numerous internal and external projects. “NCS encourages employee innovation,” he said. “It’s such an awesome company.” Briggs is always looking for solutions. Many of the tools that he has created came about while he was looking for a better way of doing things when visiting shops. The first invention that Briggs developed was called the Estimating Kit, a simple invention that informs users how to precisely re-affix car emblems
34 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
and stickers after a repair. “We were doing disassembly back in 2014 and taking emblems off a truck, but when the time came to put them back on there, we basically had to guess,” he
Tim Briggs, owner of Collision Edge, is the inventor of the Tape Thing and The Dent Viewer, which are used in body shops all over the world
said. “Then, later when I was driving home, I passed one of the same types of vehicles on the road and I could see that I missed the right spot for the em-
blem by about six inches.” Briggs then started looking for a tool that he could use to avoid misplacing car emblems ever again. “My wife had a laser engraving business at that time, so I took one of her magnetic sheets to create the first prototype,” he said. “I went down in the basement that night and made the very first set of rulers. There are four different rulers in a set. They are designed to work in combination to locate the emblems and aid in photo documentation for justifying Blend Operations.” Briggs began giving the Estimating Kit to his customers for free, and soon bigger and better ideas started entering his inventive mind, which led to The Dent Viewer. “I spent a lot of time working with shops to improve processes,” he said. “I was at West Georgia Paint and Body one day, and my friend and owner [of the shop] Tim Wilkerson was trying to take a photo of a dent. He was mov-
ing the camera all around, and I was wondering what he was doing. He told me he was trying to get the ceiling grids in the picture, because the insurance company won’t pay for dents unless they see them in the photos. So I went home that night and started coming up with the idea of The Dent Viewer. It was originally a plain white board with black grid stripes on it, and it worked okay. I made about 50 of them and gave them to all of my customers because I knew it solved their [dent viewing] problem. I wasn’t in it to make money—I just wanted to help my customers and make their lives a little easier.” Like most great inventions, they evolve as users provide invaluable feedback to their creator over time. “One day, an estimator called me and said he couldn’t get a good photo of a car, so I drove down there and it turned out to be a white car,” Briggs said. “So at that point, we decided to paint the other side of the board in black with white lines so they could use the device with white vehicles.” After that, Briggs refined The Dent Viewer even further, adding a reflective film to the white side that illuminates grid onto the panel with the camera flash. He finally had his final
version to share with his customers. Today, The Dent Viewer comes in two sizes and is a big seller with shops and insurance companies alike, Briggs said. “The big four insurance companies really like The Dent Viewer, because they normally have big problems getting good photos of damage,” he said. “The field adjusters and shop estimators love it because they get fewer calls on photo quality from desk reviews, plus it’s a huge time saver to not have to retake photos after the estimator realizes his pictures aren’t detailed enough.” The inventions started accumulating in Briggs’ mind—every time he saw a problem in a shop, he immediately started looking for solutions. “With every repair, techs are taking nuts and bolts off the vehicles and throwing them on a work table,” he said. “So, I started working on a magnet that you can clip onto your pocket that would hold nuts and bolts [in order] to cut down on walking back and forth from the table to set them down or drop them on the floor, because it’s a waste of motion.” Briggs didn’t realize at the time that he was developing The Tape Thing
Caddy, even before he invented The Tape Thing. One day, he saw a technician doing a dance with a roll of tape. “He was using it, and then putting it under his armpit,” he said. “Then, he would use it a little more and then stick it under his other armpit and then his mouth! I realized he didn’t want to set it down because it would get dirty. At one point, he dropped the roll and it ran across the floor and fell into a puddle of water. I thought, ‘There has to be a better way of holding on to that tape.’” So the next day, Briggs found himself in the plumbing department of Home Depot with a roll of tape and purchased more than $150 worth of magnets, PVC fittings, epoxy and furniture skid pads. After tweaking the design and coming up with a way for the tape to spin in the user’s hand without burning it, Briggs knew he was on to something that might be big. He eventually ordered 2,500 units from a manufacturer in China, with most of the final assembly taking place in his living room, and sold them all. Briggs is a consummate tinkerer and isn’t happy until he gets his inventions right, so he has now redesigned The Tape Thing three times. However, he is finally delighted with
the finished product. “We improved the magnet strength and mounting, and made every change the voice of the customer’s request,” said Briggs. Briggs loved his final product and sold thousands more quickly, but all he could think about was the original idea that started him down this path. Enter, The Tape Thing Caddy. “It holds everything you need to prep a vehicle, including the razor blades, safely along with rags, scuff pads and sandpaper,” he said. “The goal is that when using The Tape Thing Caddy, preparers don’t ever have to set anything down, bend over to pick anything up, or walk away to find supplies.” Three years ago, Briggs and his wife took their inventions to their first SEMA Show to unveil the Tape Thing to the collision industry. “We met some cool people,” he said. “Tim Gerhard from TG Products let us put our products in his booth alongside his new product, The Rail Saver. We took 500 or so of The Tape Things with us to Las Vegas that first year and sold out. We threw estimating kits in the box and were surprised to see that they sold equally well.” See Useful Tools, Page 56
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Continued from Page 12
Photo Documentation
rate and include all of the options and relevant information. “Proper photo technique is necessary for the claim file,” he said. “You are the appraiser of record and the payment to the policy holder will be based on your report.” In addition to taking photos of the VIN, gauges, actual damages and corner views, Cassata said all total loss vehicles require additional images such as vehicle options and front and rear interior views. Supplement photos are often taken after vehicle disassembly. Since they can be difficult to decipher, Cassata recommended getting close enough to capture the damage but remain far enough away to provide some context as to the location of the damages. At least one photo of the license plate must be included as well as an undamaged part of the vehicle. Insurance carriers often have their own requirements on how to document air bag deployments. In general, Cassata said the procedure is to include your initials and the date on the air bag with a permanent Continued from Page 18
Insurers Discuss
“It’s actually quite the opposite. You shouldn’t look down on that. It points to strength in the relationship,” Andreoli said. He said if it was happening frequently, his company might talk to that shop about getting OEM-certified to fix those vehicles, but he said he recognizes that that can be “an expensive proposition.” Thompson agreed. “[If] someone is [saying the vehicle] really needs to go somewhere else, I’d be extremely disappointed if somebody in our organization looked down on that shop,” he said. “I think with tooling and training and everything else, the days when everybody can repair everything are getting further and further from the truth.” So are the insurers set up to identify OEM-certified shops on their networks? Hoffbauer said that’s not happening currently, but is something State Farm is studying. “We do have conversations with
marker before taking a photograph. “This practice will reduce fraud,” he said. The full claim file is discoverable in court, which means it could be utilized in a court proceeding or other legal matter as well as used heavily in the decision-making process of settling the claim. Cassata said that every comment, line note, entry on the estimate, photo and entry in the portal must be turned over to the court when there is litigation. He recommended maintaining a folder on every vehicle you repair as well as a chronological record of the activity and ensure all comments pertain to the file in case you are called upon to testify. “You are the eyes and ears of the carrier so be sure to give them every opportunity to settle the claim fairly and responsibly by doing your part to supply the best photos and written documentation possible,” said Cassata. This article was based on a presentation by Mike Cassata, Hammer Insights, during NACE Automechanika 2017. For more information, call (585) 794-0914 or email: hammerinsights @outlook.com. the insured, and if they ask, we can recommend or try to provide advice, but we believe in customer choice, and they can go wherever they’d like to,” he said. “But we would prefer they make an informed decision based on facts.” Similarly, Thompson said “capabilities-based assignments” are in the works at USAA. “It does me no good at all to send a vehicle to a shop that isn’t properly equipped to handle the repair,” he said. “It just creates delays in the overall process, which isn’t good for the member.” Lindorfer said Allstate has information available if a direct repair shop works on a particular type of vehicle, such as the aluminum Ford F-150, but the company’s systems will need to evolve before they can match that up with the customer’s vehicle at the first notice of loss. “But our adjusters do try to tell them when they are writing the estimate that if they have a vehicle that needs a special type of repair, they need to inquire with their shop to ensure that they are able to repair that type of vehicle,” she said.
36 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
New Chief M30 Pro Alu Stud Welder Is Faster and Easier to Use ®
Dent repair is faster and easier with less chance of ancillary damage when using the new Chief M30 Pro Alu Stud Welder. Grounding preparation is automatic, eliminating the need for
grounding cables, and through-material transfer of welding heat is minimized or eliminated. For collision damage repair, when a stud is spot welded to the outside surface, all too often some of the heat is transferred through to the backside of the material, causing unintended additional damage. The new Chief M30 Pro Alu Stud Welder incorporates technology that allows for a strong spot weld with minimal heat penetration, so little or no heat is transferred through the material to areas where it is not needed. Another productivity enhancement of the Chief M30 Pro Alu Stud Welder is a grounding mechanism built into the stud gun head. This eliminates the need to sand off
a piece of the panel material so that a ground can be attached to this bare metal area. Instead, when the M30 Pro Alu Stud Welder head is applied to the surface of the material where the stud is to be welded, grounding prongs automatically emerge and touch the surface, providing the necessary grounding to perform the stud welding. “The new Chief M30 Pro Aluminum stud welder is designed to improve technician performance and productivity,” says Mickey Swartz, vice president of global product management for Chief. “It dramatically reduces preparation time and minimizes the potential for causing additional damage due to heat transfer.” The M30 Pro Alu Stud Welder operates off of 115V power. It is available as part of the new Chief MultiTool Aluminum Dent Repair Station or separately. To learn more about the Chief M30 Pro Alu Stud Welder, visit www.chiefautomotive.com/welding /aluminum-welders/multispot-m30al/ , contact your local Chief distributor or call (800) 445-9262.
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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.
Tips for Busy Body Shops with Stacey Phillips
Effective Estimating Can Help with Scheduling, Reduce Supplements, and Improve Bottom Line Estimating is often said to be one of the most important components of running a successful body shop. According to John Shoemaker, business development manager for BASF Automotive Refinish Coatings, effective estimating can help with scheduling vehicles, reducing supplements and improving a business’s overall bottom line. “I teach shops the importance of documenting the repair process so everyone understands it,” said Shoemaker, who regularly meets with shops to help them grow and maximize their opportunities. “It’s a communications device. You’re communicating not only to the customer but to the insurance company, parts suppliers, technicians and various other people throughout the repair process.” Shoemaker said that proper documentation ensures all parties are on the same page and allows employees to perform at an optimal level. “The goal is to capture as much up front as possible before the repair process begins,” said Shoemaker. “By being thorough, it will help prevent complications later on.” It all starts with a proper vehicle inspection with the customer. Shoemaker advises shops to develop a mutual understanding of the vehicle condition, the areas being repaired and the pre-existing damage. “You want to make sure that you’re writing an estimate based on what the customer’s perception is because that’s going to follow through when you return that vehicle after the repair,” he said. “Overall, be thorough, itemize all repairs, be descriptive, make line notes, take photos and label them.” Shoemaker’s tips on how to be effective during the estimating process: Visual Assessment: Check for panel misalignment or deformity; loose joint and seam sealers; and chipped paint.
■ Verify the Vehicle Information: This includes the make, model, trim level decoding, mileage, production date, exterior color, interior trim color and other options.
■ Take Preliminary Photos: In addition to the four corners and the license
plate, Shoemaker said to photograph the instrument cluster, VIN plate and production date. The Collision Industry Conference Insurer-Insurance Relations Committee offers a set of best practice guidelines for digital imaging at ciclink.com.
■ Review the Repair Process: When becoming familiar with the damaged areas, be sure to check the P-pages, the HNotes and review the Society of Collision Repair Experts (SCRS) Guide to Complete Repair Planning listed on the SCRS homepage.
■ Inspect Lighting and Wiring: After inspecting all light bulbs and harnesses, document the wiring repair including the number of wires broken.
John Shoemaker, business development manager for BASF Automotive Refinish Coatings
■ Pre-Scan Diagnostics: A pre-scan of the vehicle is required by most vehicle manufacturers and allows the technician to find fault codes and verify the need for system recalibration.
■ Initial Damage Verification: While reviewing the damage on the vehicle, Shoemaker recommended starting at the end where there is the most damage and then work panel by panel to the opposite end of the vehicle.
■ Initial Structure Measurement: You must document the need for torque box and select point measurements. This will communicate the need for additional alignments based on damage and severity.
■ Evaluate Structural Damage: Shoemaker said to pay particular attention to crush zones when visually inspecting the vehicle. When reviewing the structure composition, he recommended checking OE, AllData and I-CAR to determine the steel type and reparability. Then, shops should itemize and document the repair by using line notes to describe individual structure repairs.
■ Identify Associated Damage: Determine the damage to the adjacent panels, which can include damage to flanges and inner panels. This damage is often repaired without compensation because of the lack of documentation.
■ Document Access Labor: Docu-
38 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
menting the additional labor to access damage can be added as a line item on the estimate. Shoemaker said to show the labor within an area being repaired and create a line note explaining the addition.
■ Identify Mechanical Repairs: Identifying mechanical components separately is important in defining the repairs required.
■ Interior Repairs: Shoemaker said to document damage from secondary impact and those related to restraint system activation.
■ Identify Paint Type and Refinish
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Processes: After locating the body plate, Shoemaker said to determine the color formulation using a website like Paintscratch.com. This helps shops verify and document the refinish process.
■ Identify and Document R&I Process: Determine R&Is for repair access such as headlamps, mounting brackets and windows as well as R&Is for paint access, including door handles, weather strips and fender liners. Then itemize the R&Is and use line notes for details. ■ Identify Stripe Requirements: Shoemaker said to first find out if the stripe is OEM or aftermarket, then document it on the estimate to ensure proper billing.
■ Fluid and Tire Requirements: Any fluids removed from the vehicle should be measured for proper billing and reusable fluids can be stored in a sealed See Effective Estimating, Page 40
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Continued from Page 38
Effective Estimating
container. Note the tire manufacturer, size and tread depth in the line note.
■ Take Final Photos: The estimate can be used as a checklist, use photos to clarify repairs and Shoemaker recommended taking the photos in the order of the estimate and then labeling them for clarification.
■ Validate Estimate: Make sure to validate all “Incl” labor. When in doubt, Shoemaker said to consult DEG. Then add miscellaneous charges such as a car cover and hazardous waste.
“Determining the vehicle value is the last step in estimating and is important to prevent starting repairs on a vehicle that might be close to being non-economical to repair,” said Shoemaker. He recommended researching the NADA website and indicate the exact make, model and trim of the car as well as the current mileage. After determining the value, shops can then decide on the reparability of the vehicle. Shoemaker said that esti-
mating systems often don’t accurately calculate the value of the vehicle. In many states, the total loss threshold is between 70-75 percent of the value on newer cars and he has found that estimates can be eight to 10 percent off. He recommended that shops manually calculate the value before beginning the repair to help determine if the vehicle is a total loss. He used the example of a vehicle that was calculated using an estimating system and the threshold showed 50 percent. “We used NADA figures and came up with 58 percent,” said Shoemaker. “If this vehicle was in a state where the total loss threshold was 70 percent, you’re a lot closer than you should be if you’ve already started the repairs.” On average, Shoemaker said a writer will write eight to 10 estimates per day. He said that by adding just one tenth increase in body labor per estimate, a shop can increase its sales by $3,660.80 per year based on writing eight estimates a day. A one-tenth increase in paint labor with an average of eight estimates per day will increase sales $6,156.80 per year. “We have to keep in mind that we are not finding “new” labor,” explained Shoemaker. “In most cases, technicians
are already performing these tasks but since the tasks are not identified, neither the technician nor the shop is being paid.” Shoemaker said that nothing happens without an estimate. “By being thorough and effective at the beginning allows you to be proactive throughout the repair process,” he said. “Identifying as much as possible up front helps you schedule properly, reduce secondary parts orders and properly determine the repair completion date.” He said shops struggle with all of these things daily. “Improve your estimate process and you will improve the quality of life in your facility,” said Shoemaker. “Test yourself. Pick a vehicle that is running late in your shop today. Then ask, ‘Why is it running late?’ to find the root cause.” In most cases, he said you’ll find the part or repair process you are waiting for approval on could have been identified during the estimating process. This article was based on a presentation by John Shoemaker, business development manager for BASF Automotive Refinish Coatings. For more information, email john.a.shoemaker@ basf.com. ARIZONA
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Axalta to Acquire Plascoat
Axalta Coating Systems announced that it has acquired Plascoat Systems Limited, a leading supplier of thermoplastic powder coatings, from its parent company, International Process Technologies (IPT) Ltd. Financial terms of the transaction were not disclosed. Established in 1952, Plascoat has pioneered the science behind the formulation, manufacturing, and application of thermoplastic polyolefin coatings. Plascoat’s industry-leading product portfolio includes Plascoat PPA 571, a flexible, tough and highly durable plastic coating used for a wide variety of outdoor applications, Talisman, a hard wearing, tough plastic coating used extensively in the dishwasher basket coating market, and Plascoat PPA 571 Aqua, a unique plastic coating for potable water pipes, in addition to many other high performing coatings designed to meet the highest industry standards.“Over the last 65 years, Plascoat has led the way in developing innovative, environmentally responsible coatings that meet the high corrosion resistance demands of customers around the globe,” said Michael Cash, Axalta Senior Vice President and President, Industrial Coatings. ARKANSAS
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Hudiburg Subaru Oklahoma City (800) 800-5963 (405) 739-0636 Fax Mon.-Fri. 7:30-6 parts@hudiburg.com www.hudiburg.com
Continued from Page 27
Service King Expands to 30 Shops in Southern California
After first expanding to Southern California in 2014, Richardson, Texasbased Service King Collision Repair Centers recently announced the organization eclipsed another milestone in the region with the opening of its 30th local auto body repair center.
The announcement comes as Service King finalized a deal to partner with Valley Motor Center Auto Body in the heart of the San Fernando Valley. As part of the deal, Valley Motor Center, located at 14954 Oxnard St. in Van Nuys, CA, will begin operating as Service King immediately. Service King, one of the fastest-growing automotive collision repair providers in the U.S., operates locations in 24 states across the U.S. “Valley Motor Center has a long, rich history of providing premier collision repair service to San Fernando Valley motorists,” said
Tim Cusic, Service King Market Vice President for Southern California. “We are thrilled to continue growing the Service King family across the Southern California community with best-in-class repair services all backed by the core Service King promise.” In three years, Service King has grown its footprint to 30 locations in the region and 42 total locations across The Golden State. The company focuses on providing consistently dependable service and working alongside all major insurance carriers to deliver a seamless repair experience. Service King repairs all vehicle makes and models while backing its work with a written lifetime guarantee. By partnering with Valley Motor Center, Service King adds one of the top repair shops in the community to its roster. The 22,000+ square feet of production space provides the capacity to repair more than 400 vehicles a month. “The Valley Motor Center family is proud of its history and commitment to serving the Los Angeles community,” said Cindy Cohen, Valley Motor President & CEO. “Joining hands with Service King provides
our customers and business partners the support and benefits of a premier industry leader. We look forward to a very bright future together under the Service King name.” Valley Motor Center Auto Body served the Los Angeles area with collision repair service since 1994. Throughout its 20-plus year history, the company earned a reputation for superior quality and providing outstanding customer service while earning the business of several leading insurance providers. As a Service King company, the location will extend the organization’s reach to the heart of the San Fernando Valley providing local motorists access to the company’s growing repair network. For more information on the organization, or to find a local Service King repair center, visit: Service King.com and follow the company on Facebook, Twitter and Instagram.
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minations about both the repairs and the associated costs are potentially going to end up being liable, and that’s an important consideration for a business. When it’s all said and done, everyone in this industry should focus on putting the consumers, their family and anybody else traveling around on the roadway safely back into a vehicle that is repaired to the way it was before the accident.” Attorney Jack Molodanof, the CAA’s lobbyist, said that the laws in California are clear. “Since this [was] pending litigation, I obviously can’t comment directly about the case, but as you know, auto body shops must follow accepted trade standards for good and workmanlike auto body and frame repairs,” Molodanof said. “This means that auto body shops in California must perform repair procedures, including sectioning of component parts, in accordance with OEM service specifications or nationally distributed and periodically updated service specifications, such as those offered by I-CAR, that are generally accepted by the auto body repair industry. It’s very clear.”
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 41
WIA Summer Conference Receives Positive Responses by Chasidy Rae Sisk
Women in Automotive (WIA) held its 2017 Summer Conference July 9 –11 at the Omni Orlando Resort in Championsgate, FL. According to WIA Founding Board Member Subi Ghosh, “The event was incredible! We had over 300 attendees from all over the country coming together to learn, share, network and grow. “We are happy that our attendees seem to have had a great response. People not only enjoyed the access to brilliant minds to network with, but also learned important and valuable nuggets to take back to their companies and implement to bring about change and progress. I personally brought some members of my team that were so inspired and took notes back to act on immediately. The concept that seemed to stick with most of them was to invest time and education into themselves to grow and become stronger leaders in order to develop strong leaders themselves.” Speakers at WIA’s 2017 Summer Conference included Lisa Copeland, Nicole Ashe of Cox Automotive, Shari Fitzpatrick, and FCA’s Ralph Gilles. The major topics covered were
leadership, dealership strategies and tactics, personal development, and selling, marketing and employment trends for women.
WIA’s mission is to accelerate the role of women in the automotive industry. They strive to educate, empower and connect women and men throughout the industry in an effort to move forward. Ghosh elaborated, “Each year’s events are designed to continue that mission, and growing to be able to include more people. We also want to attract and recruit women into the industry. “Every year, the event seems to get bigger and attract more influential names and roles within the industry than I expect. I personally believe this is a long overdue event and movement. Women have been somewhat ig-
World’s Painters to Display Unique Automotive Artwork at 3M Showcase in Royal Oak, MI
Join 3M Automotive Aftermarket Division in a celebration of classic car culture at the 2017 Woodward Dream Cruise with special guests Chip Foose, legendary automotive designer, and automotive painters from around the world. The 3M Demonstration and Education Mobile Operations (D.E.M.O.) trailer
will showcase the latest 3M solutions for automotive repair and maintenance with hands-on demonstrations for body repair, paint preparation, vehicle painting, paint finishing and vehicle appearance. As part of the celebration, 3M AAD has invited 10 leading painters from around the world to illustrate their vision of classic car culture on a hood, using the 3M™ PPS™ System and other 3M automotive products. The unique hoods will be
unveiled at the 2017 Woodward Dream Cruise and the painters will be available to discuss their creations. 3M Automotive Aftermarket Division, automotive design legend Chip Foose and 10 leading painters: Pablo Prado, KandynChrome, USA Jacob Miles, Milestone Paint & Body, USA Connie Manjavinos, PassionateInk, USA Clay Hoberecht, Best Body Shop, USA Justin Jimmo, Refinish Network, Canada Carl-André Giroux, Canada Danny Schramm, SchrammWerk, Germany Christian Wilke, Germany Carmine De Maria, C.A.D. Custom, Australia Shane Wanjon, Exclusive Image Paint and Body, USA
3M D.E.M.O. Trailer Pasquale’s parking lot 31555 Woodward Ave Royal Oak, MI 48073 Saturday, August 19 9 a.m. ET to 6 p.m. ET
42 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
nored as a population within the automotive industry and are hungry for opportunities to connect and learn. The movement of forcing the conversation is the most attractive component of our main annual event and all of the smaller events we have throughout the year. It is so incredibly exciting to be a part of something that is moving the industry forward in such a great way. The buzz within the industry, the impact we’re making with and for our attendees, and the results they are bringing back to us the following years, are all exceeding my expectations!” One important idea that WIA wants the industry to remember is that the association is not just for women. Ghosh explained, “Our content, agenda and overall feel of our events focus on broad concepts that fit anyone or any role within the industry. We believe we have grown year over year because of our focus on inclusivity. All walks of automotive, all vendors, all partners, all media sources, and even all competitors are welcome and included. WIA is for everyone, because only together can we make a real difference.” For more information on WIA, visit: WomenInAutomotive.com.
Charged with Stealing Tires, Rims, Selling them Online
by Alex Ceneviva, WTNH.com Staff
A Waterbury, CT, man was arrested after allegedly stealing tires and rims from a car at an auto body shop in Watertown, CT, then trying to sell them online. Police say on July 28th, a Subaru parked for service overnight at an auto body shop on New Wood Road had its rims and tires stolen and was left on blocks. Surveillance video from the shop showed a man removing the rims around 2 a.m., and then driving away in a two tone Ford Escape. Police say a few days later, the rims and tires were found on Offerup.com for sale. The owner had reported a distinctive mark on one of the rims, which was seen in the online photos. Watertown and Waterbury detectives then responded to the ad and arranged to buy the rims and tires at a parking lot in Waterbury. That’s when the seller arrived in the same two tone Ford Escape seen on the surveillance video. The rims and tires were found to also have that same distinctive mark. At that point, the seller, identified as 30-year-old Kristian Rivera, was arrested and charged with larceny. He was held on $5,000 bond and will appear in court August 15th. Thanks to wtnh.com for reprint permission.
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 43
National News
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ALLDATA and Google Partner for Free Marketing Webinar with Chasidy Rae Sisk
by Chasidy Rae Sisk
On Thursday, July 27, ALLDATA partnered with Google’s Automotive Marketing team to provide a free one-hour webinar on “Best Online Marketing Practices” for automotive shops, presented by Google Product Specialist Matt Krystofik. The material, relevant for both collision and mechanical shops, was very informative, and the interactive webinar attracted more than 200 automotive industry professionals. “Best Online Marketing Practices” discussed changing consumer and technology trends that shops need to know about, three ways to grow a business with Google tools, and resources to help shops keep up with changing digital behavior. Krystofik began by sharing his intent to help shops make their advertising “accountable, actionable and impactful using myriad tools.” After explaining Google’s goal of connecting users with information they care about, Krystofik indicated that consumer behavior is changing constantly with technological advances. With smartphones readily providing the ability to research and consider their options, customers’ expectations are steadily increasing. Consumers have limited time, expect transparency that builds trust, and are guided by technology’s ability to easily connect them with a business. Krystofik stressed, “Customers value interactions with little friction and where they can easily access the information they’re seeking at the moment they want it. Customers have more choices than ever, and if you don’t commit to speed, you’re losing customers.” It is imperative for businesses to be present whenever, however and wherever the customer chooses to shop. Google projects that 80 percent of the $49 billion automotive parts sales industry in 2017 will be digitally influenced, compared to 78 percent in 2016. Krystofik asked, “What are you doing today to future-proof your business? There’s never been a more important time to ensure you have a great digital storefront.” Over the past five years, there has been a 57 percent decline in visits to
brick and mortar stores, but each visit yields higher value because customers do their homework online and enter with a strong intent to make a purchase. “Google My Business lets you take charge of what people see when they do a local search for your shop, plus it allows you to update your listing and engage with customers from a phone, tablet or desktop,” Krystofik stated. “Just as important, it’s free to use.” Shop owners can update their Google My Business listing to adjust holiday hours, add a phone number or upload photos. These updates are made in real time, and the listing increases reach when customers search for that shop. Krystofik advised, “Ask happy customers to post a review on your listing, because 70 percent of people trust online reviews from other customers.” Google My Business also contains an Insights dashboard that reveals how customers interact with the shop’s listing, allowing the business to better target customers and attract new ones. Offering deals and providing updates on a listing is another key means of generating more sales and repeat customers. Because everyone constantly uses their smartphones to research information, it’s important for businesses to build a great mobile experience. Shops can also generate and personalize a website from the listing. According to Krystofik, “There are many powerful features available to drive business. Promote potential customers with a call to action, or employ the option for people to submit their contact information so you can call them at your convenience. Booking appointments online is not currently available, but will be coming soon.” Krystofik then emphasized the importance of ensuring company websites load at an appropriate rate of speed. Krystofik shared, “Fifty percent of people will leave a website if it takes more than three seconds to load, but on Insights, you can test your speed, see the number of customers being lost due to the slow load, and compare your site to industry competitors. “Google’s free tools help you un-
44 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
derstand what’s on your customers’ minds – think of Google as a data source for intent. Google Trends shows what people research, allowing you to see shifts in customer behavior and determine how to best meet their needs or desires. Recently, we’ve seen an increase in ‘near me’ searches.” Discussing how to recognize customers with a high intent to purchase, Krystofik recommended using Google Adwords, which includes a keyword planner to expand a shop’s reach, explore how keywords will perform, or help users choose optimal words for their Google advertising campaigns. Additionally, businesses only pay for the service when it results in people reaching out to them. The conversion tracking tool offers additional benefits by providing data based on ad clicks. Krystofik stated, “Google offers great free resources to make the digital ecosystem much less daunting,” and encouraged his audience to register
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their Google My Business listing, compare their site to others, and utilize Google’s free data trend tools. “Don’t lose potential customers before they walk in your door!” he said. After the presentation, Krystofik held a Q&A session, providing hints for taking ownership of listings, submitting feedback for updated photos and maps, and using Google’s customer support numbers for problems with various features. He also reemphasized the importance of reviews, the significance of making websites mobile, and discussed the value of a YouTube channel with good content as a marketing tool. Krystofik concluded with “one helpful hint – claim your Google My Business listing!” Presented by ALLDATA, the 35minute Google webinar, Best Practices for Marketing Your Shop Online, is currently available for on-demand viewing.
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 45
Why Are Recalled Takata Airbags Being Recycled? by Mike Holfeld - Investigative Reporter, Donovan Myrie - Special Projects Producer, KSAT
By now, you’ve probably heard the story: millions of airbags manufactured by Japanese auto parts supplier Takata have been recalled by auto manufacturers. Last year, the National Highway Traffic Safety Administration (NHTSA) figured out that long-term exposure to high humidity and high temperatures breaks down the propellant used to trigger tens of millions of Takata airbags. The result: faulty airbags can go off unexpectedly and with enough force to break apart components, sending shards of metal into the head, neck, and body of a driver or front seat passenger. And that’s exactly what happened to 18-year old Karina Dorado. In March, Dorado got into an accident in Las Vegas while driving her 2002 Honda Accord. The accident wasn’t severe, but the teen was almost killed. Metal from the Accord’s Takata airbag punctured her windpipe, causing her to almost bleed to death. What
makes this accident so troubling is that Dorado’s airbag had already been replaced once… with a recalled airbag from a 2001 Honda Accord. “The vehicle she was driving had a recalled Takata airbag,” Billie Marie Morrison, an attorney representing
salvage title. A salvage title allows someone to buy the “shell” of a car, fix it up, and then resell the car. Cars with salvage titles are considered total losses for the insurance company, but insurance adjustors believe there is money to be made at an auction, and,
the Dorado family, said. Morrison said the airbag was “not the one that came with her car.” Dorado’s story is an odd one, but highlights a loophole with Takata’s airbag recall. Recycled airbags not turned in to be replaced by manufacturers can instead end up in used cars, even though it’s illegal to do just that. In Dorado’s case, the story starts with an accident in Phoenix in 2014. A 2002 Honda Accord (that she would eventually end up owning) was considered “totaled” by the insurance company, but had what is known as a
with the right repairs, the car can be made road-worthy again. Part of the repair to Dorado’s Accord was to replace the steering wheel airbag that had deployed in the Phoenix accident. But instead of getting a new airbag, the seller used an airbag from a 2001 Honda Accord. That car was recalled by Honda to replace the airbag, but the car was never brought in. Dorado’s father bought her the 2002 Accord with a recalled 2001 Accord airbag car in 2015. Two years later, the teen was in the accident that almost killed her.
“It’s not uncommon for shops to use recycled airbags that were taken from vehicles on salvage yards, or sold online and put into vehicles where the airbags deployed in an accident.” — Chris Basso
Illegal or not? Illegal. According to the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act of 2000, it is illegal to sell a used automotive part (that has been the subject to a recall) that has not been fixed. So if you have a battery casing that has been recalled and fixed by the manufacturer, you can resell that part. But if you have never taken that same battery casing in for the recall, it’s illegal to sell it to someone else. Period. In fact, as part of the FAST Act signed by President Obama in late 2015, the maximum fine levied by the NHTSA for a single violation of selling recalled equipment was upped to $21,000, with the amount for civil penalties for a related series of violations topping out at $105 million. “We just don’t sell ‘em,” Tim McMillon said. McMillon has seen his fair share of Takata airbags. He owns M&K Used Auto Parts and has about 2,500 cars spread across 20 acres in Orange City. “We take these airbags and give them to the right people to get them off
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the streets, so nobody uses them,” he said. In McMillon’s case, he was contacted a few months ago by Honda. The company asked him to go through his records to see if he had any cars with recalled airbags sitting in the yard. McMillon’s team pulled the airbag and sent them to a contractor who was hired by Honda, who then got the airbags back to the Honda. The buyback program nets McMillon about $50 apiece. How many airbags has Honda America gotten back from salvage yards? More than 70,000. That number comes from Chris Martin, a company spokesperson. Martin said Honda is working with RAS (Rebuilders Automotive Supply) to recover airbag modulators from salvage yards that contain recalled Takata inflators. Once in-house, Honda stores the bags for eventually disposal. Martin told News 6 that Honda leads the industry in fixing Takata recalls (they’ve completed some 10 million inflators). But that’s only a bit more than 60 percent of the recalled inflators still out there, and they have a ways to go.
“Owners of recalled Honda and Acura vehicles should seek repair at an authorized dealer as soon as possible,” Martin said. “There is no reason to wait. The recall repairs are free, we have plenty of replacement parts for all affected Honda and Acura models, and, if they need it, we’ll even provide a free loaner car to the vehicle’s owner for the day of the recall repair.”
GETTING RESULTS: What to do if you suspect your car has a recalled airbag? Despite the best efforts of Honda, RAS, and salvage yard owners such as McMillon, there are still cars out there that have original equipment faulty airbags, or cars that have been taken in for the recall, fixed, but then had used faulty bags put in the vehicle. “More than 750,000 airbags are replaced every year,” Chris Basso with Carfax said. “It’s not uncommon for shops to use recycled airbags that were taken from vehicles on salvage yards, or sold online and put into vehicles where the airbags deployed in an accident.” Carfax is just one of many companies that track vehicle histories. Aside from used cars, the company
also tracks thousands of salvage title cars that are put back on the road each year. And although many of them are safe, Basso believes it’s a good idea for the buyer to be aware of the previous condition of the car. “Information is the first step to protection here.” According to the NHTSA, there are about 70 million driver side and passenger side airbags that have been recalled. And those airbags aren’t just limited to Hondas: 19 different manufacturers have issued recalls spanning across 139 different models. There are two steps you should take to see if you may (or may not) have a car included in the Takata recall. First, to see a full list of cars affected by the Takata airbag recall, go to https://www.nhtsa.gov/recall-spotlight /takata-air-bags. If your car is on this list, it’s time to dig a little deeper. Get your VIN number and see if your specific car has an open recall. You can plug in your VIN number at https:// vinrcl.safercar.gov/vin/. If you have an open recall on your car, contact the dealership to see when you can bring the car in for a replacement airbag. However, if you’re still not sure about the car and you want to
be absolutely positive you have a safe airbag, there are some extra steps you can take. Select a vehicle history search tool to run a background check on your car. Three of the biggest companies specializing in vehicle histories are AutoCheck, VinAudit, and the aforementioned Carfax. Prices, options, and features vary for all three; you can read up and decide which one is best for you in this article. Once you get a detailed report on your car, there’s still one more thing you can do to check your airbag: pull the airbag out of the car and look at the serial number. As the saying goes, DON’T TRY THIS AT HOME! Airbags are tricky pieces of equipment; leave it to a professional to get the airbag out, examine it, and follow up with the manufacturer. Basso said most shops charge about $60 for this. That’s not a bad price for peace of mind and ensuring the safety of you and your passengers.
We thank News 6 WKMG-TV in Orlando for reprint permission. News 6 is continuing to investigate this issue, so be sure to visit ClickOrlando.com /investigators to stay up to date.
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Day Job/Night Job Shop Owner David Ludwig Uses His Art to Give Back with Ed Attanasio
Dave Ludwig, 58, owns Prestige Auto Body in Manchester, NH, a shop he started with just one helper back in 1986. Today, he has 24 employees and is well-known for his quality repairs, but many people in the community also know him as someone who isn’t afraid to help others through his art. By creat-
Dave Ludwig and his daughter, Elizabeth, stand next to Ludwig’s first sculpture, a 9-foot pink ribbon that he designed with a local radio station to create awareness about breast cancer in New Hampshire
ing a series of incredible sculptures, Ludwig is building his philanthropy in a creative way that continually helps the charities he chooses again and again. Always willing to help, Ludwig determined many years ago that he could use his unique artistic ability to help causes and organizations. “It’s so much more meaningful to use my art to help these nonprofits, as opposed to just writing a check,” Ludwig said. “Anyone can give money and there is nothing wrong with that, but using your hands to make something that people will appreciate while raising money for the cause—how can it get any better than that?” Giving back to his hometown is a big deal for Ludwig, he said. “I was born and raised right here, so we donate to and support as many worthwhile organizations as we possibly can, including cancer associations, programs that support single homeless parents and local drug education and support groups,” he said. “These charitable efforts have allowed us to build a positive reputation and establish credibility as a business.”
Some call Ludwig’s creations sculptures or structures, but everyone agrees that they were created for a good cause, and surely qualify as art. “We do them for different community events to raise awareness, but we also do them to show people that good body techs are more than just wrench turners or guys who just slap bondo around,” he said. “Whether it’s their paint work or metal work, it’s amazing and these people are indeed artists.” Nearly a decade ago, a local radio station met with Ludwig and asked if he could be a sponsor for a big fundraising event. That’s when his artistic journey began. “They were looking to do something different, so I said, ‘Let’s brainstorm and see what we can come up with,” he said. “Our first piece was a large 9-foot pink ribbon made of aluminum that we did for a breast cancer nonprofit. When we unveiled the ribbon at the very first event, we saw the response, and it was pretty awesome. Since then, the ribbon has been to a lot of breast cancer-related events, and so many cancer survivors have signed it.” Ludwig and the radio station came up with the idea of having cancer survivors sign the sculpture, making it a piece of art that will continually help the charity by spreading its message.
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
bust wearing a pink bra that’s actually a bank. “It’s 8 feet tall and 7 feet wide, and surely our most ambitious project to date,” Ludwig said. “It has a clear glass door on the back so people can see how
One of Ludwig's most well-known pieces is called the “Bust Bank,” a sculpture of a woman’s bust that also acts as a bank where people can donate to fight breast cancer
much money is being donated.” Always looking for a new project, last year Ludwig created a 6-foot butterfly to help Hope for New Hampshire Recovery, a drug rehabilitation and awareness program. “The butterfly represents hope and is made out of foam core covered with aluminum,” he said. “The wings are removable, and the whole structure breaks down easily so they can travel with it to other events. I am currently working on another piece for them.” With an eye to possibly get out of the body shop business by age 65, Ludwig does not call it retirement, but rather a change of careers. “I have no desire to retire,” he said. “So when I step away from the shop, I will continue doing my creative endeavors, whether it’s making furniture or sculptures or even making high-end gold carts for people in Florida—who knows? I have to do something that stimulates me, and the art really does that.”
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Ludwig created this beautiful butterfly sculpture for the New Hampshire Breast Cancer Coalition
“At that first event, I was able to meet so many survivors and hear their stories as they signed the ribbon with their names and their years of remission,” he said. “It was an amazing experience—one I will never forget.” Ludwig’s second project gained significant attention for its creativity and “Bust Bank,” which is a white
48 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 49
Shop Strategies with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Alaska Shop Owner Focuses on Company Culture & Customers While Dealing with Repair Challenges in the Last Frontier In Anchorage, AK, body shop owner Ryan Cropper often tells customers that Able Body Shop is where strong values merge with quality work. Cropper currently operates two locations in The Last Frontier and said he has built his business on relationships and trust—one customer at a time. Autobody News spoke to Cropper about how he and his team go the extra mile to provide excellent customer service while dealing with collision repair challenges in Alaska.
How has your background enQ: abled you to run two successful body shops?
A:
From an early age, I learned the benefits of hard work and found that true commitment and dedication carry value. I have always had an entrepreneurial spirit. When I was 10 years old, I began mowing lawns in Alaska and
owner wanted to retire. I felt it was the perfect fit, so I purchased the shop in 2002. I was 22 years old and ready for a new adventure!
Ryan Cropper and his family after receiving the award for Community Service for small business in 2015
I used money from small loans to expand the company and in 2004, I purchased Total Truck Accessory Center. We opened Able Body Shop Downtown two years later. In 2016, we added another building that used to be a body
itive one. We have found that having a culture that we are proud of is one of the most important components of having a successful business. Number two would be the team atmosphere. We are still a flat rate shop, but we truly run in teams. Every team member in our company is paid 100 percent commission except two—our maintenance man and bookkeeper. We also only spend marketing dollars on things that directly benefit our community. Our management style is democratic and borders close to the guidelines of mentorship. We encourage informal communication of knowledge and experience. We support dialogue that builds positive relationships, and we give our employees a reputation to live up to. I am proud to be able to contribute to the growth and success of my 50 employees’ careers and personal lives.
What are some of the current Q: challenges collision repairers are experiencing in Alaska? Finding great team members in A: our market is very difficult. We also have a problem with parts avail-
ability. Parts can take over a week to arrive in most cases. Another challenge we have operating a collision repair business in Alaska is the drastic difference we can experience in workloads, depending on the season. When the snow is on the ground from October to April, it really changes the game!
Q: Is your shop part of any DRPs? We have most national DRPs A: as our business partners. Over the years, we have had great success See Alaska Shop Owner, Page 53
North Freeway Hyundai
The right part makes the difference.
Since starting the nonprofit organization Empowering Destinations, Cropper said they have given away nine cars to families in need
started my own summer business called RC Lawns. By the time I was in high school, I had renamed my company Aurora Landscaping and hired many of my classmates as employees. However, my true passion was auto body work. I worked on my family’s and friends’ vehicles and attended auto repair classes in Oregon to learn more. When I was a tech in college, I found out that Able Body Shop Midtown was for sale in my hometown. It had been established in 1969, and the
shop, and we are currently working on an additional facility that will open this winter.
What are some of the things Q: that set your body shop apart from others in the industry?
We tend to be very different A: than the average body shop in the United States. The number one difference is the culture of our company and the steps we take to make it a pos-
50 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 51
18 Million Fewer Domestic Nameplates by Jim Lang, Lang Marketing
While the car and light truck population on U.S. roads climbed by 19 million between 2006 and 2016, the number of domestic nameplates moved in the opposite direction. The domestic nameplate light vehicle population fell by 18 million over this 10-year span. This plunge in the number of domestic nameplate light vehicles caused a significant change in the mix of domestic and foreign nameplates on U.S. roads. The domestic nameplate share of vehicles in operation (VIO) fell nearly one-fifth, with dramatic implications for the car and light truck aftermarket in the U.S.
Light Vehicle Population Growth The number of vehicles in operation (VIO) climbed from 248 million at mid-year 2006 to over 267 million cars and light trucks by the middle of 2016. This 19 million increase in VIO occurred despite a significant downturn in new vehicle sales for several years following the Great Recession of 2008.
Nameplate Contribution to VIO Growth Domestic and foreign nameplates did not contribute equally to the 19-million-increase in the car and light truck VIO between 2006 and 2016. In fact, the entire gain was generated by foreign nameplate cars and light trucks, while the number of domestic nameplate light vehicles plunged over this 10-year span.
Domestic Light Vehicles Domestic nameplate cars and light trucks decreased by 18 million be-
tween 2006 and the middle of 2016. Such a decline in the domestic nameplate population had never before occurred in the U.S. There were just over 168 million domestic nameplate light vehicles in the U.S. in 2006, with that number falling to approximately 150 million by mid2016.
Domestic Nameplate Cars and Light Trucks All of the reduction in domestic nameplates was suffered by domestic cars. Their population fell from nearly 70 million to 49 million between 2006 and 2016. Domestic nameplate light trucks recorded a modest 2.5 million increase during this 10-year span. Plunge in Domestic Nameplate VIO Share Domestic nameplate cars and light trucks fell from two-thirds of all light vehicles in operation during 2006 to just over 56% at mid-year 2016. Domestic nameplate cars and light trucks both suffered losses in VIO share. Domestic nameplates accounted for 56% of passenger cars during 2006, with their share falling to 40% 10 years later. The domestic nameplate light truck share also declined, from 80% to 69% between 2006 and 2016.
Repair-Age Sweet-Spot Domestic nameplates suffered a significant decline among vehicles in the so-called repair-age sweet-spot (those 6 to 10 years of age), which generally average the highest rates of aftermarket use for many different products. This has led to a steady decline in aftermarket product share generated by domestic nameplates. Future Domestic Nameplate Decline This trend of weakening domestic nameplate aftermarket performance will continue as the number of domestic nameplate light vehicles declines over the next five years, the result of weak domestic nameplate share of new car and light truck sales coupled with domestic nameplates accounting for a disproportionate share of light vehicles scrapped each year.
Six Major Takeaways • Total vehicles in operation (VIO) climbed 19 million between 2006 and 2016.
• Domestic and foreign nameplates did not contribute equally to the increase in car and light truck VIO over the past 10 years.
• Domestic nameplates fell from twothirds of all light vehicles in operation during 2006 to just over 56% by midyear 2016. The share loss among domestic nameplates was suffered by both cars and light trucks. • Domestic nameplate light vehicles plunged 18 million between 2006 and the middle of 2016.
• Domestic nameplates recorded a significant decline among vehicles in the repair-age sweet-spot (those 6 to 10 years of age).
• The decline in domestic nameplates has occurred at a historic rate over the past 10 years. This trend will continue for the foreseeable future.
Parts You Need. People You Trust.
Aftermarket Impact This historic decline of domestic nameplates and their share of cars and light trucks on U.S. roads have significant aftermarket implications. The reduction of domestic nameplates was greatest among newer vehi-
Nissan Agrees to $98 Million Settlement on Takata
Nissan Motor Co. agreed to a $97.7 million settlement to resolve class-action consumer economic loss claims in the United States tied to the recall of 4.4 million vehicles with Takata airbag inflators, court records show. The settlement is similar to others reached with major automakers. In June, a federal judge in Miami granted preliminary approval to settlements with Toyota Motor Corp., Subaru Corp., BMW AG and Mazda
cles, particularly those 6 years and younger, while domestic nameplates accounted for a growing number of older vehicles, especially those ages 12 years and up.
Motor Corp., totaling $553 million and affecting 15.8 million vehicles with Takata inflators. In other Nissan news, workers at Nissan’s Canton, MS, assembly plant have rejected unionization. By a margin of 2,244 to 1,307, workers voted against UAW representation, giving the union yet another blow in its decades-long quest to organize foreign automakers’ assembly plants in the South.
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Continued from Page 50
Alaska Shop Owner
with those partnerships and continue to value what it brings to us. The challenge is they often expect the same re-
talented high school students from the local auto body program and have had fantastic results with this over the years. The students start out working for free, just getting school credit. Once they are somewhat up to speed, we put them on payroll and assign them to a team. Many even stay with us for a full auto body career.
As an advocate of eduQ: cation, how do you ensure you are advancing your
technicians’ skills and what is the importance of doing so? Ryan Cropper currently operates two locations in The Last Frontier
sults you see in the continental 48 states, which can sometimes be difficult to achieve.
Can you tell us about the shop’s Q: internship program with the King Career Center?
We have been sponsoring a A: successful internship program with the King Career Center for over
10 years. We hire a couple of the most
Alaska requires auto A: body repair technicians to have a creative mind
and patience while honing an attention to detail that ensures a high level of quality on every job. They have years of practical body shop experience and hands-on exposure to high technology equipment. Currently, we are concentrating on I-CAR training for our staff as well as OEM certifications. We spend over $30k a year with I-CAR training. We do whatever it takes to get our staff the training needed, even if it means flying out of
state for it. I am also extremely involved in 20 groups with Axalta, which is where I find out what is upand-coming in the industry.
Q:
What initiatives have you taken to support the community in Alaska?
We are big on sponsoring local A: organizations that are making a difference or helping the people of
Alaska. That is where we came up with Empowering Destinations. We started the nonprofit with the intention of giving a reliable vehicle to a deserving community member who needs a helping hand. To date, we have given away nine cars to families in need. For the past three years, thanks to the help of other community businesses, we were successful enough to give two vehicles per year. We are strong advocates of community involvement and I’m an active member of the Anchorage Chamber of Commerce. A couple of years ago, we received an award called the “Gold Pan Award” for Distinguished Community Service by a small business, given to us by the Chamber of Commerce. That was a huge deal for us!
Auto Care Association Applauds Joint Statement on Tax Reform
The Auto Care Association is pleased and relieved to see that the tax reform framework negotiated by House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-TX), announced today, has removed the border adjustment tax (BAT) from consideration. “I want to thank those members who tackled this issue headon by scheduling meetings with their legislators, writing letters and making phone calls. Their time commitment and dedication to the cause was phenomenal and they should all be proud of their efforts. We are grateful that we now have the opportunity to work with Congress and the administration to reform the outmoded tax code that is a burden to all of us.”
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www.toyotaoflaredo.com www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 53
BASF Accepting Submissions for Glasurit® Best Paint Competition
BASF is accepting submissions for the third annual Glasurit® Best Paint Award. Photos submitted must be of a Glasurit-painted vehicle, and the vehicle must be on display at the up-
2016 Glasurit Best Paint Award winner: a 1969 Mustang, owned by Tim Spencer, painted by Jonathan Goolsby of Goolsby Customs
coming 2017 SEMA show. The vehicle must also utilize Glasurit 22, 55 or 90 Line products, including primer, basecoat and clearcoat. BASF and Glasurit will honor the winner’s outstanding excellence in painting at SEMA 2017 with Chip Foose presenting. The legendary restoration expert and long-time Glasurit advocate will judge the vehicles based on fit and finish, quality of preparation and final presentation. Photo submissions of Glasuritpainted vehicles will be accepted now through October 27, 2017 on the BASF refinish web site.: http://www .refinish.basf.us/ For more information on Glasurit, visit the BASF booth #20353 at SEMA 2017.
FADRA, Honda Pull Recalled Takata Airbags from Local Salvage Yards by Mike Holfeld - Investigative Reporter, News 6 WKMG-TV in Orlando
The mangled white 2003 Honda Accord parked in the front of the M&K Used Auto Parts yard in Orange City is the latest vehicle confirmed to have recalled passenger-and driver-side Takata airbags that have been pulled from the local auto recycling market. Tom McMillon, owner and president of the used auto parts yard, told News 6 he had already collected 30 Takata airbag modules from Honda vehicles in the last two weeks—modules that, ironically, weren’t on the original recall list. “It’s the right thing to do,” McMillon told WKMG-TV News 6. “Let’s get them off the street.” McMillon is a member of FADRA, the Florida Auto Dismantlers & Recyclers Association , a group that is working with Honda as part of a national effort to track and pull “airbag modules that contain recalled Takata inflators” from every Honda model between 2002 and 2012. Chris Martin, spokesman for American Honda Motor Co., Inc., told News 6 that Honda has already “recovered over 70,000 airbag modules from salvage yards in the U.S.”
Host of Hit TV Show “Bitchin’ Rides” to Debut New Custom Color Line of Akzonobel Automotive Paints at Sema AkzoNobel and Dave Kindig, host of the popular cable TV show “Bitchin’ Rides,” have been working together to jointly develop a new custom color line of automotive paints. The new custom colors will make their debut at SEMA 2017.
“AkzoNobel is proud to join forces with Dave Kindig, a true automotive artist, who is known throughout North America for his exceptional quality, workmanship and style,” said Jennifer Solcz, North American Marketing Manager for AkzoNobel Vehicle Refinishes. “AkzoNobel is in the business of color, and we are dedicated to color innovation through product development and dynamic strategic partnerships.” Kindig is the owner and Chief Designer of the custom fabrication
automotive shop, Kindig-It Design, in Salt Lake City, Utah. It is a stateof-the-art, one-stop custom shop where automobiles are rendered, designed, built and restored into works of art. The shop, which Kindig operates with his wife Charity, was so well recognized and respected, that the Velocity channel gave Kindig and his crew their own television show in 2014, “Bitchin’ Rides.” The show follows the everyday work of the crew at Kindig-It Design. “I’m thrilled to be working with AkzoNobel on developing this brand new custom color line,” said Kindig. “Since I started spraying Sikkens Autowave, my projects have never looked better. So, it is very exciting to me that I will be able to combine my style and quality and mix it with AkzoNobel’s exciting product line in order to come up with some pretty sick colors.” For more information on AkzoNobel, visit www.akzonobel.com.
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54 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
According to Martin, the recalled devices are shipped to a secure storage location “for eventual disposal.” McMillon told News 6 he first received the call from Honda officials two months ago. McMillon said the airbag modules found in any vehicles (19 manufacturers are impacted) are pulled and tossed into a cardboard box until they are “collected” by a representative of Rebuilders Automotive Supply (RAS). According to Martin, RAS buys back recalled Takata airbags and then makes sure “they get to Honda, effectively taking them out of the open marketplace.” “(In) our industry, we’re not supposed to recycle these airbags— they’re supposed to go to the people to get rid of them for us,” McMillon told News 6. “There’s a lot of them out there. That’s what worries me.” Martin told News 6 there is no reason to delay getting the airbags replaced if you see your vehicle identification number (VIN) is on the recall list. “Owners should seek repair at an authorized dealer as soon as possible,” Martin said. “… The recall repairs are free, we have plenty of replacement parts for all affected Honda and Acura
models and, if they need it, we’ll even provide a free loaner car to the vehicle’s owner for the day of the recall repair.” Using the VIN, it is easy to determine if a vehicle has contained a recalled but unrepaired Takata airbag inflator by visiting recalls.honda.com or recalls.acura.com. There are 19 automobile manufacturers impacted by the Takata air bag recall effort. For a full list of cars affected by the Takata airbag recall, go to https:// www.nhtsa.gov/recall-spotlight/ takata-air-bags. If you want to know if your car has an open recall, go to https://www .nhtsa.gov/recall-spotlight/takata-airbags or https://vinrcl.safercar.gov/vin/ We thank News 6 WKMG-TV in Orlando for reprint permission. News 6 is continuing to investigate this issue, so be sure to visit: ClickOrlando.com /investigators to stay up to date.”
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 55
Vehicles Abandoned at Body Shops Are Unwelcomed Guests
Greg LaPoint is the owner of GBI Title in Denver, CO, and for the Has this ever happened to you? past 20 years has been helping both mechanical and collision shops in ColA customer brings in a vehicle and says orado and Nevada when customers they don’t want to run it through their abandon vehicles at their facilities. For insurance. You give them an estimate, even the most detail-oriented people, they sign it and you begin the obtaining the titles of these work. When the job is comcars isn’t a do-it-yourself job plete, all of a sudden you that any body shop owner or can’t reach the customer. You manager wants to get incall every day for about a volved in, LaPoint said. week and suddenly, you real“In Colorado, they call ize that no one is going to call them ‘lien sales’ and in Neyou back. Hopefully you got Greg LaPoint is the vada they’re ‘bonded titles,’ a deposit, but either way owner of GBI Title but either way, they’re not you’re now in limbo, and it’s in Denver, CO. For something most people will the past 20 years, going to cost you. be able to understand,” he If you have a shop where he has been helping said. “It’s a complex procemechanical and your space is limited and parkdure and until you’ve done a collision shops in ing is scarce, an abandoned car lot of them, you’re likely to Colorado and is like a squatter in your house. make mistakes. It involves Nevada when You can’t just kick it to the customers abandon sending a lot of certified devehicles at their curb, because the law protects mand letters and documenting facilities them. So now it’s your probevery step of the way. If you lem, even though you were just trying miss one little detail, you’re in trouble.” to do your job. Some states have made the process At some point, uncomfortable even more difficult—Colorado being thoughts start entering your mind, inone of them, according to LaPoint. cluding all of the money you’re going “They have so many rules and to lose over this abandoned vehicle. procedures now in Colorado. It makes Your first instinct is to wheel it out to it that much harder to get a title on the street and act like you’ve never these abandoned vehicles,” he said. seen it before, but that can lead to “In Nevada, the cars get sold at lien problems down the road. If the owner sales and the buyer gets the title in the of the vehicle (or his divorced wife mail while the shop gets paid. But in who has the title) suddenly reappears, Colorado, they send the title to the you could be stuck in court for months. shop and then they have to sell the veby Ed Attanasio
Continued from Page 35
Useful Tools
Yes, Collision Edge has done very well, but it does not mean that Briggs is going to quit his day job or think about early retirement. “We were devastated by the 2008 downturn,” he said. “Our kids’ college funds didn’t amount to much and wasn’t going to get them far. After a lot of prayers, we swallowed hard and pulled the trigger sourcing molds and buying inventory to go to work on our American Dream. Our kids work in the busi-
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ness, attending all the trade shows they can, packing orders and assembling product. This is the legacy I leave to them. The lessons this business has taught them and me are irreplaceable. I tell everyone that I have a full-time day job and I don’t draw a salary from Collision Edge–zero. Every dime Collision Edge makes is either put back in the business, given to charity or poured into our kids’ futures. We’re going to keep solving problems as long as our customers reward our efforts with their continued business and moral support. I love the body shop industry; it’s such a great community.”
hicle and store it until then. They sure don’t make it easy for the shops.” In Colorado, the state employs VIN Inspectors through their State Patrol offices, so before any abandoned vehicle can be sold, it must go through their system in order to ensure the car isn’t stolen. LaPoint realizes that it’s a necessary step, but also a little illogical. “From my experience, car thieves don’t take stolen vehicles to shops for repairs,” he said. “I have never seen it happen, nor have I ever heard of it happening, but I guess it is what it is.” In Colorado, LaPoint’s clients have to transport the abandoned vehicle to a State Patrol office, which means they have to tow it there—which is another hassle. “It’s another cost and in some cases, the car will sit for 6-8 weeks until we can get the VIN inspection,” he said. “How hard is to find a VIN number and run the vehicle to see if it is stolen or not? It’s crazy. Colorado’s ‘bonded title’ procedure is two or three times more difficult than it even needs to be in my opinion. It is hobbled by red tape.”
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When it comes to abandoned cars at shops, LaPoint gets philosophical on the topic. “If you’re in the business of fixing people’s cars, you are going to run into it, but it’s not the end of the world,” he said. “Why do people just walk away from their cars? I tell them about the three D’s—departed, deported or divorced—and usually one of those three is the reason. Also, people figure out that their vehicle is a piece of junk and they don’t want to pay the deductible.” One of the main problems that LaPoint’s customers encounter is not acting quickly once they realize that a vehicle has been dumped on them, he said. “In some cases, they don’t do anything for two years and the whole time the car is sitting in their back lot while its value diminishes,” he said. “Once they do start the process, they’re not even recouping the costs of the repairs. So, I would suggest that as soon as you know that a certain vehicle isn’t going anywhere, contact someone like me to expedite the bonded title. The longer you wait, the more it costs you.”
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www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 57
National Auto Body Council Opens Nominations for 2018 Board of Directors
The National Auto Body Council (NABC) announced it is now accepting nominations for seven open seats for its Board of Directors. Deadline for nominations is Friday, Sept. 1. To qualify, the nominee must be either an individual member of the National Auto Body Council or the designated representative of a company member. Board members are elected for three-year terms. All nominations must be submitted in writing. The election will take place at NABC’s upcoming Annual Meeting on Wednesday, Nov. 1 at the SEMA Conference in Las Vegas. Per NABC Bylaws, proxy voting and nominations from the floor are not allowed. Current NABC Board members whose terms are ending this year may also seek re-election. They include: • Greg Clark, Caliber Collision Centers • Michael Jordan, Manchester Collision Center • Keith Egan, Colours, Inc. • Joe Lacy, formerly of GEICO • Elizabeth Stein, Assured Performance
• Kerry Angers, Enterprise Rent-a-Car • Arlo Johnson, Driven Brands “NABC has already made a tremendous impact to help improve the lives of thousands of individuals through our community service programs. We have the opportunity to change and save even more lives, and welcome nominations for all segments of the collision industry for leaders who are passionate and committed to these same goals,” said Chuck Sulkala, NABC Executive Director. NABC initiatives include the successful and popular Recycled RidesTM program as well as First Responder Emergency Extrication (FREETM), and the Distracted Driving Initiative. Nominations for NABC board seats must be submitted in writing: Info@NationalAutoBodyCouncil.org or Executive Director Chuck Sulkala at chucksulkala@msn.com. Fax NABC administrative office at (414) 768-8001 Mail to: National Auto Body Council, 7044 S. 13th St Oak Creek, Wisconsin 53154 For more information, please contact Chuck Sulkala directly.
Long-Running Federal Circuit Results in Victory for Mitchell in IP Dispute with Audatex The U.S. Court of Appeals for the Federal Circuit affirmed the Patent Trial and Appeal Board’s (PTAB) February 2016 decision invalidating all three patents in Audatex’s patent infringement lawsuit asserted against Mitchell, agreeing that the Audatex patents are abstract and not inventive. Audatex sued Mitchell in February 2012, alleging that Mitchell’s WorkCenter software infringed three Audatex patents. The Audatex patents detailed a business process for using the internet to process insurance claims, including total loss valuations. Before the PTAB, Mitchell asserted that the Audatex patents simply use well-known technology to generate valuation reports for damaged cars, and are not intended to improve a computer’s functionality. In February 2016, the PTAB sided with Mitchell and invalidated all three Audatex patents as abstract under the U.S. Supreme Court’s Alice Corp. decision, in which the high court ruled that abstract ideas implemented using a computer are not patent eligible. The PTAB also decided each of the claims in all three Audatex patents were both anticipated and obvious.
Audatex appealed portions of the PTAB’s decision to the Federal Circuit. After receiving briefing and hearing oral arguments, on July 27 the Federal Circuit affirmed the PTAB’s invalidation of all three Audatex patents. In its written decision, the Federal Circuit fully backed Mitchell’s arguments and rejected all of the appeal issues raised by Audatex: “The proposed claims recite nothing more than the collection of information to generate a valuation report for a damaged vehicle with the aid of well-known technology,” the opinion reads. “They embody an abstract idea that merely uses a computer and generic components as tools to collect these data and generate reports.” “To see the Federal Circuit affirm the PTAB’s decisions so quickly after oral argument is welcome news for Mitchell,” said Stephanie Kroon, senior vice president, general counsel and secretary at Mitchell. “We believed from early in the case that Audatex’s claims against Mitchell had no merit and the Federal Circuit has confirmed our position. This decision is a complete victory for Mitchell.”
Kia Selects OEC for Collision Parts Ordering and Fulfillment
OEConnection LLC (OEC), the leading automotive technology provider for original equipment manufacturers’ (OEM) distribution
networks, announced that Kia Motors America has added CollisionLink to its collision parts marketing program. The CollisionLink parts ordering and fulfillment solution will allow Kia’s dealer network to access competitive pricing on eligible OE parts and expand its market penetration in the U.S. Kia is the 23rd automotive dealer network in North America to use CollisionLink to facilitate its parts marketing program. With the addition of Kia, virtually 100 percent of all consumer vehicles on the
road in the U.S. are now supported by CollisionLink. “We are excited to bring Kia on board and to assist with its collision parts program,” said Bill Lopez, OEC Vice President & General Manager, Collision. “With our CollisionLink solution, Kia dealers can compete more effectively and increase their OE part sales while also improving order processing efficiency and customer satisfaction.” “Selecting CollisionLink will provide our retailers with competitively priced OE parts,” said Greg Silvestri, Executive Director, Service Operations. “We chose CollisionLink because it has become a standard operating procedure among body shops that prefer to use OE parts at competitive prices. CollisionLink also streamlines the dealers’ workflow when processing orders to better serve its customers.” By the fourth quarter of 2017, all Kia dealers will have access to their collision parts marketing program via CollisionLink.
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Updated OEM Scan Chart now includes SUBARU Subaru’s position statement explains the reasoning behind and beneSubaru recently released its position fits of pre- and post-repair scanning, statement on pre- and post-repair much in line with what we have heard scanning for 2004-model-year-andfrom other automakers and industry newer vehicles involved in a collision. pundits before. From the July 2017 reThe “OEM Diagnostic Scanning Po- lease: sitions Quick Reference Chart,” first “In the event of a collision, these components could incur damage, which may trigger diagnostic trouble codes (DTC), but may not be evident via a warning light on the instrument cluster. It is imperative that these components be evaluated after a collision to ensure the vehicle is completely repaired. If these components are not evaluated, it could have a direct effect on vehicle operation and safety. For Subaru vehicles from Gene Bilobram asks, “Are you ready for the vehicles of the model year 2004 and forward future? The scan on this ETV revealed fault code V290017 involved in a collision, Sub– Malfunctioning Mercury Vortex Thruster Module. Geez, aru collision repair procedure just last month we replaced the Flux Capacitor.” recommends that pre-repair introduced to the collision repair in- scanning be performed. Pre-scanning dustry by Autobody News in March will reveal DTCs for items that are 2017, has been updated to include not functioning properly in the vehicle. It allows a shop to identify any Subaru. by Gene Bilobram
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issues early in the estimate process, allowing a more complete estimate and encompassing repair process. Additionally, Subaru collision repair procedure also recommends that post-repair scanning be performed on these vehicles. Post scanning is critical in ensuring the malfunctioning items have been repaired and there are no remaining DTCs. It may also assist in assuring the appropriate calibrations and reinitializations have been performed.” Visit www.oempositions.com for the full Subaru July 2017 release and updated OEM scan chart. In both cases of pre- and post-repair scanning, Subaru has chosen the seemingly softer language of “recommends” in the statement. This is sure to create some controversy between repairers and insurers. Some insurers are presently honoring the position statements with the stronger language of “required” or “necessary” while shrugging off procedures that are “recommended,” especially with the pre-repair scan. When dealing with minced words and the hair splitting often inherent in
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See Updated OEM, Page 63
Chief Introduces New Universal Uni-Clamp Anchoring System
Chief’s new Universal Uni-Clamp Anchoring System is now standard on all Chief frame racks. The anchor stand features a replaceable crosshatch section that works like 180
TEXAS
the negotiation process with insurers, there is an art and a science to presenting the OEM documentation, educating the appraiser and making a cohesive argument that leads to the proper allowances. This is a topic worthy of its own article. For now, if an insurer will not honor scanning on a Subaru (or any vehicle) because it is only recommended, shops still have the ability to hold sway. Repairers and insurers should read the Subaru position in its entirety to understand that the automakers are deeming post-collision scans necessary from their point of view. Words such as “imperative” and “critical” are included in the document. For instance: “It is imperative that these components be evaluated after a collision to ensure the vehicle is completely repaired. If these components are not evaluated, it could have a direct effect on vehicle operation and safety.” The above excerpt is referring to the sensors, cameras, control units and other components that make up the safety and assist technologies present
Chief Universal Uni-Clamp Anchoring System
teeth on both jaws and the anchoring stand to provide superior gripping power on the high-strength steel pinch welds common on modern vehicles. The bolt pattern on each jaw has been lowered 25 millimeters so technicians can easily tighten the fastening bolts from the outside, without
removing the lower ground effect trim panels found on many cars. “We have redesigned the Universal Uni-Clamp Anchoring System to increase anchoring speed and overall shop productivity,” said Richard Perry, OEM and strategic account sales manager for Chief parent company Vehicle Service Group (VSG). “The system provides better holding power as well as easier, faster attachment to the high-strength steel pinch welds hidden by the OEM appearance trend of lower trim panels.” The new crosshatch sections of the Chief Universal Uni-Clamp Anchoring System are also economical. When worn, they can simply be unbolted and replaced with a fresh set, without the need to replace the jaws themselves, or the anchoring stand. The system is compatible with all Chief specialty anchoring products, and can be retrofitted onto existing Chief Universal anchoring stands. To learn more about the Chief Universal Uni-Clamp Anchoring System, visit: chiefautomotive.com/Partsand-Accessories/Anchoring-Systems/ , contact your local Chief distributor or call (800) 445-9262.
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 59
Ford On Target—2017 Volume 2 Volume 2 of the Ford 2017 On Target publication is now available, according to I-CAR. Features of this volume include repair procedures, future technologies and replacement parts availability.
The first article talks about replacing the front apron tube (upper rail) on the aluminum F-150 and Super Duty. They compare the aluminum procedure to the procedure done on the previous steel bodied FSeries. The new procedure is less invasive than the previous generation, and does not require removing the instrument panel. According to the article, both the F-150 and the Super Duty have many similarities. However, the upper rail replacement procedures have many differences. One of the biggest differences is that the F-150 utilized a hydroformed aluminum upper rail, while the Super Duty uses a hydroformed HSLA-350 steel rail. Gerry Bonanni, Ford Sen-
ior Damageability Engineer, states in the article, “Repairers are strongly advised to research the repair. That is probably the single strongest piece of advice I can give.” Ford also talks about current and future advanced driver-assistance systems (ADAS). They touch on a current system, Pedestrian Detection, which is featured on several different Ford/Lincoln models, such as the 2017 Ford Fusion. This system utilizes a bumper-mounted radar and a windshield-mounted camera to detect pedestrians while driving. They also talk about future systems, such as Evasive Steering Assist and Wrong-Way alert. These systems are expected to start being utilized within the next two years. Finally, they announce that you can get replacement boxes and cabs for the F-150. To read the entire issue go to https://rts.i-car.com/ collision-repair-news/ford-on-target -2017-volume-2.html. You can also go to the Ford OEM Information or Lincoln OEM Information on the RTS website to easily access this publication.
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Seattle Family Special Guests at CARSTAR Event
The CARSTAR Puget Sound Business Group hosted another hugely successful charity event, upping its total raised to more than $77,000 for the Seattle Children’s Hospital over the past two years, including some $37,000 during its recent 12th Annual CARSTAR Charity Golf Tournament at The Golf Club at Newcastle in Newcastle, WA. On hand at the event was a very special family, Lee’or and Wendy Rutenberg, parents of young Sadie Rutenberg, who underwent life-saving surgery for a congenital heart defect discovered before she was even born. Sadie was the first child in the United States to receive a pediatric heart valve as part of the Halo U.S IDE Trial. “When you find out that your child has a disease like Sadie has, you begin to wonder if anybody can help.
Seattle Children’s doesn’t just provide medical care, but also the hope that a family clings to as they navigate their child’s illness,” said Wendy Rutenberg. “Like so many of the other families we met during our stay at Children’s, we are able to sleep at night knowing that regardless of our ability to pay we will also be able to turn to this amazing organization for help. Thank you.” The charity event was a collaboration involving all of the 25 Puget Sound CARSTAR locations, who worked together on this important charitable initiative. A group of 144 golfers got to enjoy the tournament and the many related activities, including a silent auction and an appearance by the CARSTAR Miss Rock hydroplane. A good time was had by all.
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Dale Earnhardt Jr.’s Last NASCAR Cup Series Car Revealed by Axalta On Wednesday, August 2, Dale Earnhardt Jr., driver of the No. 88 Axalta Chevrolet SS for Hendrick Motorsports, and Craig Stephens, Director of Collision Services at AutoNation, appeared on QVC.
on November 19. The show also featured an assortment of die-cast model cars, apparel and other licensed collectibles. Axalta will partner with and feature AutoNation on the car for the
Dale Earnhardt Jr.’s Last NASCAR Cup Series Car Revealed Live on QVC from Axalta’s Customer Experience Center
The appearance was during the “Dale Earnhardt Jr. Appreci88ion Tour” broadcast, live from the Axalta Coating Systems Customer Experience Center in Concord, North Carolina, to reveal the paint scheme that will be featured on the No. 88 Axalta Chevrolet SS for Earnhardt’s final start as a full-time NASCAR® Cup Series driver at Homestead-Miami Speedway
final race. The special-edition paint scheme is a tribute to the No. 8 Chevrolet that NASCAR’s 14-time most popular driver drove in his first Cup races in 1999. The car is adorned with the Axalta emblem on the hood and the AutoNation logo on the roof and rear panels. “We enjoy our partnership with Axalta and were grateful to be included in such a momentous event in
60 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com
racing,” said Mike Jackson, AutoNation Chairman, CEO, and President. Axalta Coating Systems is a leading global supplier of liquid and powder coatings. The Customer Experience Center is a state-of-the-art, 36,000 square feet training and conference complex designed to serve Axalta’s refinish, transportation OEM, and industrial customers, in person and remotely, and is located on the Hendrick Motorsports campus adjacent to some of the finest automotive technology and expertise in the world. “Axalta’s Customer Experience Center is a world class facility outfitted with the latest technology that is designed to boost our customers’ productivity and efficiency. It served as an excellent venue for QVC,” said Mike Carr, Axalta President, Americas. “We wish Dale every success at Homestead and are excited to associate the paint and other coatings that we supply with the technology that underpins racing. It is also thrilling to share this moment of racing history with our customer, AutoNation.” Items from the “Dale Earnhardt Jr. Appreci88ion Tour” broadcast are available, while supplies last, through QVC.com, the QVC apps or by calling 800-345-1515.
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Updated OEM
in Subaru vehicles. The word “imperative” is synonymous with “necessary” and “required,” according to MerriamWebster and other thesaurus providers. Scan tool diagnostics is crucial to evaluating the components that the automaker has deemed imperative or required by definition. When Toyota Motor Sales USA came out with its position statement a year ago, I had the pleasure of a healthy debate with Eric Mendoza of Toyota’s Collision Repair and Refinish (CR&R) Training regarding Toyota’s choice of the word “recommends” in its July 2016 CRIB #191. In contrast to Subaru, Toyota does include the word “requires” with regard to a “Health Check” diagnostic scan when a vehicle is involved in a “collision that may affect electrical systems.” Toyota “strongly recommends” scanning before and after all repairs. The result of my exchange with Eric was the conclusion that regardless of the language used, the repairer has been instructed by the automaker on the proper course of action. Toyota is a proponent of pre- and post-repair scanning on all its vehicles that are involved in a collision. A repairer or insurer that chooses to omit the procedures will do so against the recommendation of the manufacturer. Any negative outcome could place the customer in harm’s way much the same as ignoring a so-called “required” procedure would. A responsible repairer or insurer would not willingly choose this position. As noted, a full read of the Subaru position statement is essential rather than focusing on one word. When an insurer states they won’t pay because it is only a recommendation, a shop could come back with, “Yes, Subaru recommends scanning because it is necessary!” The Subaru post-repair scan recommendation states that “post-scanning
is critical to ensuring the malfunctioning items have been repaired and there are no remaining DTCs.” The word “critical” in its adjective form is akin to necessary or required, perhaps with an even higher degree of importance. I’ve seen definitions of critical stated as “urgently needed” or “absolutely necessary.” By substituting the word “critical” with interchangeable terms, the statement becomes, “Post scanning is absolutely necessary…” and any remaining insurer objection is instantly eviscerated. The simple truth of the matter is that all OEM Scan position statements, even those with the stronger language of “required” or “necessary,” are essentially recommendations. The automakers have no real authority to mandate, monitor and enforce these things outside of their certified shop network. Unless you count the radio scanners used for communication by law enforcement, there are no Scan Police. We are still several decades away from Chief John Anderton’s, Tom Cruise’s character in the film “Minority Report,” Pre-Crime officers’ rappel crashing through the front window when a collision repairer contemplates skipping a scan or calibration procedure. Although, it might not hurt to keep this image in mind the next time a shop even thinks about letting a vehicle go without a post-repair scan. While stopping short of a written law or statute, OEM position statements provide a liability-shifting mechanism for the automaker, to be ignored at the repair shop’s peril. As a type of liability disclaimer, the OEM position statement may be better known as Exhibit (A) to the defense attorneys of the ignorant. In all fairness, scan-resistant insurance companies are becoming the minority. I have seen and heard examples of insurance companies paying the cost of pre- and post-repair scanning at times without a dashboard light or automaker position statement. The scan-friendly insurers
provide a good example to those that remain resistant. Collision repairers should provide examples of the good insurers to those bad actors out there still stuck on decades-old methodologies, which have no place in the exponentially advancing techno-world of today. So, if an insurer attempts to deny post-collision scanning based upon the word “recommends,” the repair shop should kindly “recommend” that the insurance company thoroughly reads the document again. Recommend that the insurer explains their stance to the vehicle owner who will be directly impacted by the decision. Want a gamechanger? Involve the customer in the process and request any insurer denials in writing. See how quickly the negotiation environment improves. Subaru’s July 2017 position statement goes beyond scanning with its strong recommendation supporting the use of genuine Subaru replacement parts while cautioning against the use of aftermarket or substitute parts. Subaru further tells repairers to always refer to the appropriate Subaru Service Manual, Technical Service Bulletin (TSB), or Body Repair Manual for the most up-to-date information on repair procedures. On a particularly interesting note within the Subaru position statement, there are some recommendations regarding choice of scan tools. Like most automakers, Subaru recommends its own factory scan tool. A generic scan tool may be used, but the automaker cannot the content or guarantee the accuracy of generic or aftermarket scan tools. Nothing new here. What is noteworthy, however, is that Subaru recommends the asTech™ remote diagnostic solution as an acceptable substitute for the Subaru SSM4 diagnostic tool, making it the second major automaker to endorse asTech™ behind FCA (aka Chrysler) a little more than one year ago. “If a Subaru SSM4 diagnostic tool is not available, Subaru recommends the use of an asTech™ device.
Car-O-Liner® Supports Caliber Collision’s Changing Lanes Program
Car-O-Liner, a leading global provider of high-quality, technologically advanced collision repair solutions for the automotive aftermarket, announced a program to provide equipment and training support for Caliber Collision’s
“Changing Lanes” program providing transitioning soldiers with collision repair career opportunities. Car-O-Liner will provide structural frame repair machines, measuring systems and welders to the Caliber training centers
in Fayetteville, NC, and Killeen, TX. In addition, Car-O-Liner distributors have agreed to volunteer their time to conduct training seminars on a regular basis. Peter Richardson, Director of National Accounts for
The asTech™ device performs a diagnostic scan remotely using a genuine Subaru scan tool.” Subaru’s position statement adds to the growing stockpile of ammunition outlined in “The Pre- and PostScan Revolution” featured in the May 2017 edition of Autobody News. The war chest of resources keeps building toward the day when the industry will no longer need my OEM Scan Chart or stacks of position statements to justify diagnostic scanning and calibrations—it will be line item number one, recognized as standard operating procedure in the automobile collision repair process. As safety and assist technologies continue to become more pervasive with every new model year, the day of the 100 percent vehicle scan standard may be here sooner than we think. Forward-thinking, safety-conscious shops are already pressing toward the 100 percent mark by insisting on scanning almost every vehicle and getting paid in many situations without a dashboard light or an OEM position statement. These shops live by the words expressed in the second to last paragraph of Subaru’s July 2017 position statement: “The safety of our customers is our number one priority.” Gene Bilobram has been an automobile physical damage appraiser for over 25 years. His company, Lacey Appraisal Service, Inc. is a physical damage appraisal, training, consultancy and manufacturers’ rep firm serving the collision repair and insurance industries. He may be reached at (609) 384-8093 or at laceyappraisal@aol.com to discuss the latest shop tools and solutions in the pre- and post- scan revolution. His company is Manufacturer’s Representative for the leaders in post-collision remote vehicle diagnostics and systems calibrations. The opinions expressed are that of the author and not necessarily the opinion of any of the companies, individuals or organizations mentioned herein or of this publication.
Car-O-Liner, stated, “Car-O-Liner is proud to partner with Caliber Collision to assist our military veterans learn valuable skills in order to successfully transition into the collision repair industry.”
www.autobodynews.com | SEPTEMBER 2017 AUTOBODY NEWS 63
64 SEPTEMBER 2017 AUTOBODY NEWS | www.autobodynews.com