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Northwest Louisiana Collision Repair Association Hosts ‘Industry Day’ of Sessions and Speakers
Industry Day Keynote Speaker Chuck Sulkala
The Northwest Louisiana Collision Repair Association sponsored a local
Industry Day on June 14 with Guest Speakers Chuck Sulkala, Mike Sprinkle with DuPont, along with Tri-State Coatings, Car-O-Liner, 3M, and Software Works Consulting. The group had a very diverse crowd in attendance. Shop owners shop managers, estimators, production foremen, body techs and a group of future technicians soon to enter the industry attended the event. Shops were represented from East Texas, SW Arkansas, and NW Louisiana. Everyone was welcomed by the See Industry Day, Page 6
State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns Some Success Stories For decades, shops in many states have taken concerns about auto insurer practices to insurance divisions only quite often to be told, in essence, that such regulators are there to address consumer complaints about insurers, not business-to-business issues. But even that mission isn’t being met well in some states. When John Doak took the helm of the Oklahoma Insurance Department earlier this year, he quickly announced he was reorganSee Insurance Commissioners, Page 20
P.O. BOX 1516, CARLSBAD, CA 92018
It’s a common complaint among collision repairers: It’s not worth contacting the state insurance commissioner’s office because they don’t do anything about our complaints. Yet in recent months, some state insurance commissioners have taken actions cheered by some shops, from radically changing their department’s focus, to issuing bulletins reminding insurers of state laws on steering or other shop-related activities. What has led to these changes, and does it mean now is a good time
for shops to reassess their interactions with state insurance regulators?
Change Service Requested
by John Yoswick
VOL. 29 ISSUE 10 OCTOBER 2011
Fmr. U.S. Sen. Fred D. Thompson and Other Lawyers Allege State Farm Court Fraud in Avery v. State Farm This month a group of lawyers filed a petition accusing State Farm Insurance of defrauding the Illinois Supreme Court by covering up its “extraordinary support of Justice (Lloyd) Karmeier’s campaign and to thwart State Supreme Justice Karmeier’s Court Justice disqualification” Lloyd Karmeier from the Avery v State Farm class-action case originally tried in 1999. Lloyd Karmeier was the successful 2004 Republican candidate
in the most expensive state judicial race in U.S. history, which was conducted during the appeal of Avery v State Farm. The petition is based on an investigation by former FBI agent Michael Reece. Reece stated in his affidavit accompanying the petition: “The bottom line of my investigation is that State Farm used the Illinois Civil Justice League to elect Judge Karmeier and Judge Karmeier knew it.” While there are no hard and fast rules as to when a Justice should recuse himself the U.S. Supreme Court said a WV appelate court judge should have See Avery v. State Farm, Page 30
Training Schedule for the NACE/CARS Expo Oct. 5–8 at the Orlando Convention Center The 29th Annual International Autobody Congress & Exposition (NACE) show will take place from October 5 through 8 at the Orange
Weds. October 5
Choose from 28 Training Classes Six Add-On Education Courses ASRW Industry Forum, 4:30 pm
Thurs. October 6
County Convention Center in Orlando, FL. The full schedule consists of 80+ courses/classes, with some repeats. See pages 22–23 and 39.
Fri. October 7
Choose from 25 new Training Classes Muscle Car Network of FL display I-CAR Tech Showcase continues
Sat. October 8
General Session—Chris Brogan, 8:30 Choose from 16 new Training Classes MSO Symposium ASRW Town Hall, Health Care, 3:00 pm Exhibits Open at 10:00 am Exhibits close at 3:00 pm ASRW Welcome Reception Choose from 14 new Training Classes See NACE Schedule, Page 22
Join Rich Evans, Chip Foose, and Charley Hutton (and many more) at the SEMA and AAPEX shows, November 14 in Las Vegas. Highlights: see page 15.
Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1
2 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Contents Released for New MSO Symposium
At NACE 2011 . . . . . . . . . . . . . . . . . . 12
Electric Cab Company Awaits Permit
in Austin . . . . . . . . . . . . . . . . . . . . . . . . 8
Houston Considers New Licensing
Regulations for Repair and Collision
Shops . . . . . . . . . . . . . . . . . . . . . . . . . 10
Insured Losses from TX Wildfires Could
Reach $250M . . . . . . . . . . . . . . . . . . . . 9
Northwest Louisiana Collision Repair
Association August Meeting Recap . . . . 4
Northwest Louisiana Collision Repair
Association Hosts ‘Industry Day’ of
Sessions and Speakers . . . . . . . . . . . . 1
Turns Out to be Not So Common . . . . . 27
Williams - What Happens When OEMs
Really Support Body Shops . . . . . . . . . 42
Yoswick - CIC Participants Tell Information
Providers to Take the Lead in Chicken-or-
Egg Dilemma . . . . . . . . . . . . . . . . . . . . 18
Yoswick - State Insurance Divisions Differ
From One Another in Terms of Addressing
Repairer Concerns . . . . . . . . . . . . . . . . . 1
Zurada - Independent Contractors in your Auto Body Shop—El Dorado or Fool’s
Gold? . . . . . . . . . . . . . . . . . . . . . . . . . 36
NATIONAL
American Automakers Using More
Aluminum in Vehicles. . . . . . . . . . . . . . 38
Oklahoma Cities Dominate Top 10 Hail
ASRW Continues Rotation; 2012 Location
Pflugerville, TX, to Get 12 Electric Car
BASF Names Vitor Margaronis Marketing
Prone Metro Areas . . . . . . . . . . . . . . . . 14 Charging Stations by End of Nov. 2011 . 4
Service King Donates Vehicle to Family
Devasted by TX Wildfires . . . . . . . . . . . 12
Service King Expands in TX With 5
Location Addition . . . . . . . . . . . . . . . . 12
Announced . . . . . . . . . . . . . . . . . . . . . 45 Director for North America Automotive
Refinish, OEM, and . . . . . . . . . . . . . . . 14
Fmr. U.S. Sen. Fred D. Thomson and
Other Lawyers Allege Court Fraud in
Avery v. State Farm . . . . . . . . . . . . . . . . 1
Service King to Hold 17th Annual Service
Ford Motor Company Issues Response
Texas Fires Destroy Classic Car Collection
Full Schedule for the NACE/CARS Expos;
King Golf Tournament . . . . . . . . . . . . . . 6 of 175 . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Texas Independent Automotive Association
Statement to ABPA Crash Test Videos . 32
Oct. 5–8 at the Orange County
Convention Center . . . . . . . . . . . . . . . . . 1
(TIAA) Holds September Meeting . . . . . 30
Kia Sorentos Recalled for Faulty Front
Texas Volunteer Fire Departments in
Knowledge is Power—Market Forces
Texas Insurance Agents Donate $200K to
Wake of Large Wildfires . . . . . . . . . . . . 10
Texas Raises Speed Limits on State
Highways to 75 mph . . . . . . . . . . . . . . . 9
Airbags . . . . . . . . . . . . . . . . . . . . . . . . 26 Control Total Loss Vehicle Valuations
but Shops Can Profit from the Right
Information . . . . . . . . . . . . . . . . . . . . . 43
TX Auto Recycler Named Most Influential . . 8
Nearly 311,000 Honda Pilots Recalled for
COLUMNISTS
OEMs Still Expanding Presence at ASRW
Attanasio - It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s
CollisionLink® . . . . . . . . . . . . . . . . . . . 33
Franklin - The Ethnic Factor in Marketing . 41
Front Seat Belts . . . . . . . . . . . . . . . . . . 26
in New Location. . . . . . . . . . . . . . . . . . 46
SEMA Serves Up Expanded Repairer Driven Education Sessions and
Celebrity Appearances for 2011 . . . . . . 15
I-CAR - Three-Dimensional Measuring
Subaru Legacy and Outback Recalled for
Insurance Insider - Let’s Get Some
Subaru/Saab Recalls Models for
Equipment–is it Really Necessary? . . . 40
Independent Testing to Move the Parts
Windshield Wipers . . . . . . . . . . . . . . . 26
Suspension Corrosion . . . . . . . . . . . . . 26
Battle away from Sandbox Bickering . . 16
Subarus Recalled Because Moonroof
Center—Family Buyout Continues Legacy. 44
VW Recalls Jettas With Too Long Tailpipes. 26
Schroeder - Carrillo and Sons Collision Weaver - When Something ‘Common’
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Can Detach . . . . . . . . . . . . . . . . . . . . . 26
Southwest
Educational Schedule, Structure
Indexof Advertisers
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.
Autobody News
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Allen Samuels Katy Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 18 Autoland Scientech. . . . . . . . . . . . . 27 BASF . . . . . . . . . . . . . . . . . . . . . . . . 21 BMW Wholesale Parts Dealers . . . . 37 CARS Cooperative . . . . . . . . . . . . . . 6 Cebotech/Tecna . . . . . . . . . . . . . . . 10 CertiFit. . . . . . . . . . . . . . . . . . . . . . . . 2 Chevyland . . . . . . . . . . . . . . . . . . . . 30 Chief Automotive. . . . . . . . . . . . . . . 19 Classic BMW . . . . . . . . . . . . . . . . . . 23 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid . . . . . . . . . . . . . . . . . 7 Equalizer Industries . . . . . . . . . . . . 32 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 31 Fowler I-240 Chrysler-Jeep-Dodge. 13 Garmat USA . . . . . . . . . . . . . . . . . . 12 Gene Messer Hyundai . . . . . . . . . . 39 Global Finishing Solutions . . . . . . . . 8 Global PDR Solutions . . . . . . . . . . . 20 GM Wholesale Parts Dealers . . . . . 45 Goliath Carts . . . . . . . . . . . . . . . . . . . 4 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25
Huffines Hyundai Plano . . . . . . . . . 38 Hyundai Wholesale Parts Dealers . 22 Kia Motors Wholesale Parts Dealers. 35 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Mark’s Casa Mitsubishi. . . . . . . . . . 36 Mattei. . . . . . . . . . . . . . . . . . . . . . . . 10 Mazda Wholesale Parts Dealers . . . 38 Mercedes-Benz of Oklahoma . . . . . 28 Mike Calvert Toyota. . . . . . . . . . . . . 16 Mitsubishi Wholesale Parts Dealers. 41 MOPAR Wholesale Parts Dealers . . 29 Price LeBlanc Toyota . . . . . . . . . . . 11 Ray Huffines Chevrolet . . . . . . . . . . . 5 Replica Plastics. . . . . . . . . . . . . . . . 41 Russell & Smith Ford-Mazda . . . . . 15 Safety Regulations Strategies. . . . . 32 SATA Spray Equipment . . . . . . . . . . 9 Scoggin-Dickey Buick . . . . . . . . . . 14 Shop-Pro Equipment . . . . . . . . . . . 17 Suzuki Wholesale Parts Dealers . . . 43 Toyota Wholesale Parts Dealers . . . 40 VIM Tools. . . . . . . . . . . . . . . . . . . . . 42 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44 Volvo Wholesale Parts Dealers . . . . 46 Young Chevrolet . . . . . . . . . . . . . . . 34
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 3
Northwest Louisiana Collision Repair Association August Meeting Recap August's monthly meeting for the Northwest Louisiana Collision Repair Association (NWLCRA) was held on August 2 in the Collision Repair Classroom at Louisiana Technical College. The meeting was brought to order by the NWLCRA's SecretaryTreasurer, Bill Burnside, by reading the anti-trust statement. August‘s Guest Speakers were Billy Montgomery and Stephanie Rogers. Billy Montgomery, a former State Representative, and always a friend of the Northwest Louisiana Collision Repair Association spoke first. He talked about how great it is to hear of the accomplishments of local organizations like NWLCRA, Louisiana Technical School, northwest LA local High Schools, CC&TC, and Bossier Parish Community College. He stressed the importance of education and trades. It’s great for someone to go on to a college or university for a degree, but the world needs craftsmen, he said. He discussed how much he was involved with all these organizations
when he was a Principal for Haughton High School and how he enjoyed being involved with the Collision Industry, both as a Principal, and Representative. He is currently the Chairperson for the BPCC 100, and announced the upcoming 3rd annual BPCC 100 at the meeting. For more information, you can see their web site at http://bpcc100.org. This event is sponsored by several local organizations by entering a race. All proceeds of this 2 Day Family event go to scholarships for Bossier Parish Community College and Louisiana Technical College. Ken Stephenson with Louisiana Glass and Mirror asked if more was going to be done at the High School level about training students for a trade while in High School during the meeting; he touched on the meeting where Richey Jackson, Director of the Truancy Assessment and Service Center for the Bossier Parish District Attorney's Office, came and talked to us about this very platform—Training students by offering Trade Schools.
Pflugerville, TX, to Get 12 Electric Car Charging Stations by End of November 2011
The city of Pflugerville will receive 12 Coulomb Technologies, Inc. electric vehicle charging stations in conjunction with the ChargePoint America Grant program, available to cities for the development of stations for public use. In return, the city is responsible for installation and maintenance, must allow usage of the charger by the general public and allow anonymous data to be collected by Coulumb Technologies, Inc. regarding usage trends. The grant requires the 12 stations all be installed by Nov. 30. ChargePoint America is a federal grant provided by the Department of Energy, funded through the American Recovery and Reinvestment Act . “This grant is an opportunity to bring charging station infrastructure to Pflugerville to support and contribute to the infrastructure for electric vehicles in our region,” said Trey Fletcher, managing director of operations. “Our proximity to State Highway 45 and State Highway 130 lends favorably for electric vehicles throughout the region, and we may see economic benefit from the installation as the stations increase accessibility to key Pflugerville locations.” While subject to change, the 12 proposed locations include two on
Main Street near City Hall, two on First Street, six at Stone Hill Town Center along public right-of-way and two at the Pflugerville Community Development Corporation’s Green Business Park. “The ChargePoint America grant provides infrastructure to support electric vehicles in Pflugerville,” Pflugerville Community Development Corporation interim director Floyd Akers said. “These stations also support two of Pflugerville’s recent green businesses, National Scooter Company and Community Cars, as starting in November their vehicles can plug into the stations located throughout the city.” There are already 38 EV stations in the Austin metro area to serve drivers of the Chevy Volt, Ford Transit Connect and Ford Focus partner vehicles which are already for sale in Austin, TX. According to ChargePoint, Austin was one of nine metropolitan regions in the country chosen to participate in the federal grant stimulus program.
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4 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Montgomery said that due to the current budget constraints of local and federal governments, he doesn’t know how it will turn out, but because of his life passions of education and politics, and his involvement in both, he is definitely going to stay on top of it and would keep the NWLCRA and it’s members updated. Stephanie Rogers is the Director of the BPCC Foundation, Inc. The BPCC 100 is one of the events the Foundation has as a fundraiser. She then told of us a story about providing a student with a scholarship and how great that made her feel, knowing that she and the Foundation have helped someone achieve a goal in their life. But just as that makes her happy, she becomes just as sad when she has to make the phone call or send out the letter telling countless others that there are no more scholarships available. That is why the BPCC 100 is important, as a fundraiser. Last year’s 2nd annual BPCC 100 raised $22,000. Every cent was used for scholarship money. The BPCC Foundation was able to spend
$50,000 total last year on scholarships for students attending Bossier Parish Community College or Louisiana Technical College. The upcoming BPCC 100 is going to be Friday, September 23 and Saturday, September 24, 2011. Local businesses pay an Entry Fee of $1,500 and buy a car for $1,300. The Foundation provides you the car for the exact price they have to pay, no mark up. This car can be used by the business for all types of advertisement. If your business has an event where your company sets up a booth, the car is a GREAT tool for getting attention to your booth. People will see it from far away and come see what your company provides. For an application to the BPCC 100, http://nwlcra.org/files/Download/2011_BPCC1 00_Application.pdf. She stated that for an Industry to survive, it must have a properly trained workforce. All the more reasons for local businesses to participate in this fundraiser. They are hoping to See NWLCRA Meeting, Page 6
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Continued from Front Page
Industry Day
Dean of Louisiana Technical CollegeShreveport/Bossier campus, Mrs.
Angie Rymer. The college was very pleased to help host the event for the collision repair industry. Several departments worked very closely together to make the event a success. The NWLCRA would like to give special thanks again to Mrs. Rymer, Mr. Linser and staff for coordinating the facility site, Mrs. Lorna Drach, Culinary Arts, for allowing her students to prepare and present the lunch and snacks, and Mr. Chris Shepherd, Collision Repair Instructor, for preparing the classrooms and
labs for the lectures and hands-on learning. The event was made possible by the support of some very talented and informative speakers. The day included these four classes being taught in four breakout sessions. This enabled everyone to attend all four classes. A lot of great ideas were shared in each class and the group gave so many thanks go out to each of the instructors. Danny Wheeler, Software Works Consulting, taught classes about “Computers Today and Tomorrow?” Car-O-Liner had four instructors team teach a hands-on lab about “Measuring for Estimating” using the latest technology to diagnose, perform and verify repairs. 3M had two instructors teach two separate classes. “Performance Analysis Tool” was taught in the classroom while “Bumper Repair Process” was hands-on in the lab. The event’s Industry Speaker was Mike Sprinkle, Business Development Manager for DuPont. Mike taught two very informative General Session meetings for all to attend. The
Service King to Hold 17th Annual Service King Golf Tournament
Service King Collision Repair Centers will host their 17th Annual Service King Golf Tournament benefiting Interfaith Housing Coalition on Monday, October 3. Registration and breakfast will start at 9:00AM, followed by the shotgun start at 10:00AM. Awards, Lunch, Prizes, and a Live Auction will conclude the event at 3:00PM. The event will return to the beautiful grounds of the Dallas Athletic Club for this year’s tournament which is noted for Jack Nicklaus’ design of the blue course. The club’s address is 4111 La Prada Mesquite, TX 75150. For more information please call (972) 279-3671 or visit www.dallasathleticclub.org. Service King is proud to be supContinued from Page 4
NWLCRA Meeting
get 25 teams involved. At the time of the NWLCRA Meeting, they had 18 teams. Concessions will be provided by local area businesses and General Admission is free for all to come out
porting Interfaith Housing Coalition for the fourth year in a row as they continue to provide transitional housing and support services to homeless families so they may transform to self sufficiency. The group is excited to announce their new partnership with SafeHaven of Tarrant County. “The mission of SafeHaven of Tarrant County is to end domestic violence through safety, support, prevention and social change.” For more information on the tournament or to sign up please contact Christine Barry at 972-400-1545, Eddie Rice at 972-877-8793, Jeff Johnston at 972-670-9222, Laura Mitchel at 972-960-7595 x 2141 or visit www.serviceking.com/charity/index.html.
and watch the running of the 3rd annual BPCC 100. Also a reminder that the Northwest Louisiana Collision Repair Association’s 2011 Christmas Party will be December 3, 2011 at Fielder Paint & Body. For more information please visit www.nwlcra.org.
6 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
morning session was entitled, “Building Customer Pay” and the afternoon session was entitled, “Blueprinting”. Both sessions were very interactive as the audience and shops shared successes in their respective markets.
The event’s Keynote Speaker was Mr. Chuck Sulkala. Mr. Sulkala is a well-known speaker and activist for the collision repair industry. He has received numerous industry awards, currently serves on numerous boards, and for 40 plus years he has been involved in his family owned collision repair business. He is no stranger to
the problems and opportunities facing our industry. Chuck spoke on the direction ICAR is taking with the introduction of the Professional Development Program. He spoke about how all aspects of our industry saw a need to shape the future training of technicians based on job tasks for that technician and his/her role. The Professional Development Program is a very well thought out progression of training through the I-CAR programs. The role designations and levels of achievement will enable the technicians to reach new status of professionalism and the collision repair shops to reach a recognized status of Gold Class. For more information please visit www.nwlcra.org.
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www.davidmcdavid.com www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 7
TX Auto Recycler Named Most Influential
Norm Dulaney, president and owner of Dulaney Auto and Truck Parts in Amarillo, Texas, has been named one of the top “25 Most Influential Auto Recyclers of 2008” by Locator UpFront. Dulaney has been named as the top “Legend” in the automotive recycling industry. Every year Locator UpFront selects 25 of the most influential automotive recyclers from across the country. “The Locator recognizes that this industry is built on the enthusiasm and dedication of entrepreneurs who have put their heart and soul into their businesses. We want to acknowledge the accomplishments that they have made,” explained Charis Lloyd, Locator executive vice president / C.O.O. “This issue provides just a small glimpse at the esteemed men and women who have made an impact on our industry during this past year.” Locator UpFront, published quarterly by John Holmes Publishing, Whiting, Iowa, serves the automotive recycling industry by showcasing industry leaders, their businesses and ideas. Dulaney has been chosen among the best in the business to earn a spot on this list.
Texas Fires Destroy Classic Car Collection of 175
ing to Jalopnik. John Chapman, 70, was shuffling through the ash-covered remains of his collection spread through a garage and several pole barns shortly after the fire moved through, pushing burning embers off what had been left behind. Other vehicles lost included several Owner John Chapman surveys the pile of burnt metal that used to be mid-’50s Chevys, his classic car collection of 175 vehicles a 1947 Studebaker his family escaped uninjured. The pickup and a 1966 Pontiac GTO. bad news was what the fire took “You can either laugh or you instead—some 175 classic cars, can cry,” Chapman told the Housincluding a Shelby Cobra and ton Chronicle. “You might as well about a dozen Corvettes, accord- laugh.” The good news for one Texas man near the massive wildfires is that his home was merely singed, and
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8 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Electric Cab Company Awaits Permit in Austin
Austin has made additional efforts to encourage residents to buy electric cars, but an Austin cab company that utilizes only electric cars is having a problem getting a permit from the city to operate, according to KXAN News Austin. “We provide free rides to patrons of the downtown entertainment district,” said Chris Nielsen, president of Electric Cab of Austin.In the last three years, the city has given them more than 200 tickets. Nielsen said that despite requesting a permit on multiple occasions the city just won’t give them one. “We keep getting told it will take a couple of months,” said Nielsen. “I don’t know what Council’s definition of ‘month’ is, but it’s been 36 months.” “Taxi regulation is a tough thing, and it’s been a problem for a lot longer than three years,” said Austin City Councilman Chris Riley. Riley has been a supporter of the city using green transportation, but his first priority for electric cabs is regulation. Nielsen blames the holdup on the taxi lobby, which he believes doesn’t want more competition. Nielsen plans to keep giving rides and will use the new charging stations when they go online.
Texas Raises Speed Limits on State Highways to 75 mph Local motorists may find themselves able to get to destinations a little more efficiently in coming months, thanks to legislation increasing speed limits that goes into effect September 8, according to The Monitor. One bill passed by the Texas Legislature allows the Texas Department of Transportation to review 70 mph speed limits to see whether they should be raised to 75. A second bill eliminates separate speed limits for nighttime hours and trucks. Those limits will be raised to whatever the daytime limit is. TxDOT awarded maintenance contracts to take down nighttime and truck speed limits in August, according to a news release. Jesus Leal, director of transportation operations for TxDOT’s Pharr district, said it would be months before the signs were fully removed, but they cannot be enforced as of Sept. 1. Raising speed limits from 70 to 75 will be determined by traffic studies in the coming year. Limits in Texas are based on a method of study that records how fast cars are traveling on
a given road and sets the limit as the speed under which 85 percent of drivers are going. Rio Grande Valley highways— including U.S. 281, U.S. 77 and sections of U.S. 83—will undergo the traffic studies sometime between November and February, with a decision made about raising speeds by March. Consultants will then run studies on state highways and farm-to-market roads throughout 2012. Leal said higher speed limits could result in fewer accidents, because speeds are more uniform, but still urged caution. “Accidents are more a factor of the speed differentials between people, so if we raise speed limits, people are hopefully pretty much driving the same,” he said. “But with higher speeds, the severity (of accidents) is greater.” He said the same could be said of eliminating truck speed limits. “It eliminates the speed differential between vehicles,” Leal said. “But let’s not forget that the reason those differentials were put in place in the
first place was to compensate for differences between vehicles. It takes a lot longer for a big truck to stop than a passenger vehicle.” Roy Guzman, safety director for McAllen’s USA Dry Van Logistics, said he did not expect the change in laws to affect trucking businesses much because most set their own speed limits independently of the state. “Most of us govern our trucks,” he said. “We just recently increased the speed limit for our trucks to 65.” He said he did not intend to increase it further because of the legislation. The National Motorists Association, an organization which advocates for 85th percentile speed limits and motorists’ rights, issued a news release applauding the actions of both bills. It noted, however, skepticism that some speed limits would change, including environmentally based limits in the Houston area. “We believe these arbitrary distinctions are counterproductive,” activist Henry Stowe said in the release.
Leal urged drivers to be patient and obey posted signs as they begin to change across the state. He also warned that higher limits were not an invitation for speeders to drive even faster. “It may adjust it to what people are already driving at, but recognize that if we do raise it to that level, there is going to be zero tolerance,” he said.
Insured Losses from TX Wildfires Could Reach $250M
An industry group says insured losses from a week of Texas wildfires could reach $250 million, according to Insurance Journal. The Insurance Council of Texas offered the estimate for the more than 180 wildfires reported statewide since Labor Day weekend. The organization said insured losses from fires in Bastrop County alone could reach $150 million. A wildfires disaster recovery center, where residents can seek government assistance, opened September 13 in Bastrop in a mobile facility. Wildfire evacuees north of Houston also have more resources available.
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 9
Houston Considers New Licensing Regulations for Repair and Collision Shops The city of Houston’s proposed Automotive Repair and Collision Shop Licensing regulation in its current form would place a great deal of paperwork burden and liability on the shop owner, yet falls short in other requirements such as technician training and equipment. ASA opposes this proposed regulation in its current form. The proposed regulation is presently in the city’s legal department, and could be considered by the city council at any time. The Automotive Service Association (ASA) believes that many concerns could have been avoided if the city had included independent repairers in early stakeholder meetings. There are critical differences in the operations of collision and mechanical repair facilities. Other jurisdictions have addressed both professions in licensing laws and it can be done in Houston. The city’s current proposal does not adequately address the differences in
collision and mechanical repair facilities. Federal law has stringent equipment requirements and training guidelines for collision repair facilities. These provisions should be referenced in the regulation, specifically requiring the use of auto refinishing spray booths for collision repair facilities. ASA suggests that the city council continue to dialogue with ASA’s Houston leadership to make the final regulation the best possible for consumers and repairers. ASA calls on Houston independent automotive repairers to contact their city council members in opposition to the proposed Auto Repair and Collision Shop Licensing regulation in its current form. To view further information, including the full text of the proposed regulation, and to send a letter to the Houston City Council, visit ASA’s legislative website at www.TakingTheHill.com.
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10 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Texas Insurance Agents Donate $200K to Texas Volunteer Fire Departments in Wake of Large Wildfires Independent Insurance Agents of Texas (IIAT) and its Trusted Choice agents have donated a total of $200,000 to the State Firemen’s and Fire Marshals’ Association (SFFMA) to assist volunteer fire departments. The entire donation will go to a special fund created to purchase fire retardant clothing for volunteer firefighters who battle the numerous wildfires across the state. An original $100,000 donation in May on behalf of Texas Trusted Choice independent insurance agents was recently doubled in response to unmet needs for protective gear. The lightweight, fire retardant, protective suits are provided by the Texas Forest Service, but many departments can’t afford them. It costs approximately $8,400 to completely outfit one firefighter. “Now more than ever, our Texas firefighters deserve the best protection available,” said IIAT’s Executive Director David VanDelinder. “While the contribution is helpful, more is still needed to fulfill the requests for these lightweight suits.” More than 20,900 wildfires have
raged across Texas since Nov. 2010— the largest number in the state’s history according to SFFMA—and more than 3.6 million acres have been destroyed. Seventy to 80 percent of the state’s fire service is covered by volunteer fire departments. According to SFFMA, 86 percent of volunteer firefighters use their personal funds to meet the day-to-day equipment and supply needs of their fire departments. “The timing of such a great donation is perfect as we continue to see numerous volunteer fire departments fighting wild fires like the recent ones in Central Texas. IIAT’s donation will help many volunteer firefighters get much-needed equipment,” said Chris Barron, SFFMA’s executive director.
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Educational Schedule, Structure Released for New MSO Symposium At NACE 2011 Details surrounding the Multiple Shop Operator (MSO) Symposium—the newest event at Automotive Service & Repair Week (ASRW)—were released, including educational content, speakers and the full schedule. The MSO Symposium will take place Thursday, Oct. 6, featuring an all-day program consisting of education and networking specific to MSOs. Sponsors of this highly anticipated event include CCC Information Services, Toyota Wholesale Parts, DuPont Performance Coatings, The Romans Group LLC, Enterprise RentA-Car and UniCure Spray booths. The MSO Symposium is hosted by Matthew Ohrnstein, managing director of Symphony Advisors. The MSO Symposium will start with a networking breakfast, followed by a full day of panelists, keynote speakers, facilitated discussions, a CEO roundtable, Q&A sessions, and a concluding networking reception.
Schedule of Events: 7:30 am - 8:30 am: Networking Breakfast. 8:30 am - 10:00 am: General Session with Chris Brogan (social media guru) 10:20 am - 10:30 am: Welcome and Opening Comments. 10:30 am - 12:00 pm: Lessons Learned From The “Big 4”. Facilitated by: Matthew Ohrnstein, Symphony Advisors. Guest Panelists: Rollie Benjamin, ABRA Auto Body & Paint, CEO Cathy Bonner, Service King Collision Centers, President; Brock Bulbuck, The Boyd Group, CEO; Steve Grimshaw, Caliber Collision Centers, CEO. 12:00 pm - 1:30 pm: Networking Luncheon. Topic: “Money Talks: The Investor’s View of the State of the Financial Markets and What Does The Next Five Years Look Like For Owners of and Investors in Multiple Collision Repair Shop Operators”. Keynote Speaker: Rex Green, BB&T Capital Markets, Managing Director. 1:30 pm - 3:00 pm: Scale Matters: The Evolving Relationship Among Insurers, MSOs, Suppliers and Information Service Providers. Facilitated by: Vincent Romans, The Romans Group. Guest Panelists: Bill Brower, Liberty
Mutual Insurance, AVP & Manager, Auto Physical Damage; Jim Dickens, CCC Information Services, Senior Vice President; Terry Fortner, LKQ Keystone, Vice President; Jim Gadberry, Nationwide Insurance, Associate Vice President; Shawn Hezar, Apex Auto Body, CEO; David Smith, Enterprise Rent-a-Car, Vice President 3:00 pm - 3:30 pm: Networking Break 3:30 pm - 5:00 pm: The Art of the Deal - Acquiring and Developing New Locations. Facilitated by: Matthew Ohrnstein, Symphony Advisors Guest Speaker: John Walcher, Veritas Advisors. Guest Panelists: John Gagliano, Collex Collision Experts, CEO; Harry Hall, Dupont Performance Coatings, North America Sales Manager; Pat James, Auto Body America, CEO; Brandon Thomas, Collision Revision, President. 5:15 pm - 7:30 pm: Closing Networking Reception. “Attendees are going to get some unique content directed at multiple shop operators who are intending to continue their growth,” said Ron Pyle, ASA president. “There will be some financial perspective, acquisition perspectives, operational- and insurance relationship-specific content, and content on how to acquire and develop additional locations if you’re an expanding MSO. It won’t be just one static format, but a variety of dynamic presentations facilitated by some of the leaders who are well-known within the industry.” The MSO Symposium is produced by the Automotive Service Association (ASA), NACE and Symphony Advisors. “We had quite a bit of input from MSOs in the development of the content. Our current NACE chairman, Ron Nagy, is a multiple-shop operator in Ohio and this is a passion of his to get this information in the symposium,” continued Pyle. Registration to the all-day event is complimentary to qualified MSOs, but is limited to the first 100 registrants (limit of three people per company). Qualified MSOs who wish to register may call (972) 536-6318 or email shausler@hanleywood.com. Attendees are encouraged to register quickly as availability is limited.
12 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Service King Donates Vehicle to Family Devasted by TX Wildfires
On September 15 Service King Collision Repair Centers donated a vehicle to a Bastrop County, Texas family who lost their home in a devastating wildfire that hit the area recently. Travis and Meghan Shepherd and their two-and-half-month old son, Braxton, lost their home, all of their belongings and their car in the fire. Their house was a rental, so they won’t receive any replacement, and the car only had liability insurance, so it too will not be replaced. The vehicle the Shepherds will receive is a 2009 Camry. They’ll also receive gas cards, a baby seat, baby necessities and the cash to pay the $600 sales tax to transfer the title of the car to them. The delivery will take place at B & B Body and Paint in Austin, Texas; one of the business’s 5 locations Service King acquired this month. Service King heard about the Shepherds’ misfortune from friends of Service King President Cathy Bonner, who has lived and worked in Austin for over 40 years. The event was open to the public.
Service King Expands in TX With 5 Location Addition
Service King Collision Repair Centers on September 15 announced the company will acquire all B & B Body and Paint locations, a total of fiveshop locations operating in Texas. The transaction is expected to be complete by Oct. 28, according to Service King. “The acquisition of B & B Body and Paint allows us to start serving the people of South Austin, North Austin, San Marcos, Round Rock and Leander, Texas,” said Jeremy Lennox, vice president of the Austin market for Service King. “We look forward to adding B & B’s talented employees and skilled technicians to our base of over 1,200 Service King teammates throughout Texas.” Service King said the addition of B & B Body and Paint makes the company the largest independently and employee owned collision repair organization in the United States. Service King has 47 Texas locations throughout Austin, San Antonio, Dallas, Fort Worth and Houston. For more information please visit www.serviceking.com.
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 13
Oklahoma Cities Dominate Top 10 Hail Prone Metro Areas
Metropolitan areas in Colorado and Oklahoma have the distinction of making up more than half the list of top 10 hail-prone areas in the U.S., according to a recently released study, according to Insurance Journal. The list, which was compiled by CDS Business Mapping, LLC., a Boston-based online hazard mapping firm, puts two Texas cities and three Oklahoma cities among the top in terms of risk of hail. It’s top 10 hail-prone metro areas (population 50,000 plus) is based on the RiskMeter Online’s Hail Model, which predicts the frequency of hail storms for any location in the Continental U.S. The top 10 hail-prone metro areas are: ●Amarillo, Texas ●Wichita, Kan. ●Tulsa, Okla. ●Oklahoma City, Okla. ●Midwest City, Okla. ●Aurora, Colo. ●Colorado Springs, Colo. ●Kansas City, Kan. ●Fort Worth, Texas ●Denver, Colo. Hail events are a constant threat to auto and property and casualty insurers. Even small hail stones have
been known to shatter windows, smash roofs and leave pockmarks in siding, according to the Insurance Information Institute. “In 2010 there were over 10,000 hail storms that caused hundreds of thousands of dollars in losses for insurers,” Daniel Munson, founder of RiskMeter Online said. The top areas are ranked category five. “To be category five, you get at least 15 storms a year,” Munson said. “Denver, for instance, might get 25 hailstorms a year.” List topper Amarillo gets 35-plus hailstorms per year, according to RiskMeter. Among the data is also hail size. “Some companies don’t worry about hail less than an inch and a half,” Munson said. Aside from insurance on residential and commercial properties, insurers of businesses exposed to the elements or insurers of those at greatest risk of being impacted from falling hail tend to use the program, Munson said. “Car dealers use our hail scores to figure out how risky the area is for hail,” he said, adding that greenhouses and those who insure such operations are also regular users.
BASF Names Vitor Margaronis Marketing Director for North America Automotive Refinish, OEM, and Industrial/Commercial Transport Systems Business BASF Automotive Refinish announced August 31 that it has named Vitor Margaronis as Marketing Director for BASF Coatings, North America. In his new role, Vitor is re-
year history that began at BASF in Canada. During his tenure, Vitor has held several management level positions with increasing responsibility in the areas of marketing, finance, logistics operations and project management. Vitor has a Bachelor of Commerce degree and an MBA in Marketing from McMaster University in Hamilton, Ontario. “With his deep understanding of BASF businesses, customers and markets, Vitor is an excellent addition to our team. His varied and diVitor Margaronis, BASF’s new Marketing Director verse experiences across sponsible for directing the marketing BASF position him well for continued activities of the BASF Automotive success,” said Juan Carlos Ordonez, Senior Vice President, BASF CoatRefinish, OEM, Industrial and Comings North America. mercial Transport Systems busiTo learn about BASF automotive nesses. refinish products, visit: Vitor comes to the BASF North America Coatings team after a 10- www.basfrefinish.com.
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SEMA Serves Up Expanded Repairer Driven Education Sessions and Celebrity Appearances for 2011 The Specialty Equipment Market Association (SEMA) Show will take place at the Las Vegas Convention Center from November 1 through 4. In gearing up for the upcoming show, the group has made several announcements regarding celebrity appearances and their expanded Repairer Driven Education (RDE) sessions provided by the Society of Collision Repair Specialists (SCRS). Charley Hutton, formerly body shop supervisor at Boyd Coddington’s La Habra shop and known for his appearances on the TV shows American Hot Rod, Rides, and Overhaulin’, is regarded as one of Charley Hutton the most popular painters in the custom car world. He will appear Wednesday, November 2, from 2:00–3:00 p.m. at the Collision Repair & Refinish Section Stage (North Hall #10873). Charley will do an onstage interview and a question and answer session.
Working out of his shop in Nampa, Idaho-Charley Hutton’s Color Studio-Hutton has produced an impressive number of automotive refinishing projects over his career, most recently through his work using PPG Automotive Refinish. He has garnered a number of prominent honors as a result. The Society of Collision Repair Specialists (SCRS) also added awardwinning painter, fabricator, television personality, and Autobody News Columnist Rich Evans to an already packed lineup of activities Rich Evans taking place this year in the north hall of the Show. Evans, owner of Huntington Beach Bodyworks and chief architect of Rich Evans Designs, is known nationally for his work on television shows such as TLC’s Junkyard Wars, Chop Cut Rebuild, and Car Warriors on the SPEED Channel; and for his distinctive custom painting techniques
that allow him to create some of the most striking vehicle graphics in the world, including his much heralded “Tattoos for Cars” series. While Evans has built his Chip Foose name on custom work and fabrication, he built his career on collision repair, and he will join SCRS at 10:00 a.m. on Wednesday, November 2, to speak about his career in the collision repair industry and the ever-changing landscape of the business and its technical side. SEMA attendees are invited to stop by the SCRS booth (North Hall # 10727) to take part in this live interview. Automotive designer and fabricator Chip Foose will also be available for a meet and greet at the BASF booth # 21458 on November 1 from 9 A.M. to 10:30 A.M. and November 2 from 3P.M. to 5P.M. at the MagnaFlow Exhaust products booth # 23543. Foose is best known for his appearances on TLC’s Overhaulin’ and his
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from two days of seminars in 2010 to all four days of the show in 2011. SCRS said the current YTD education pre-registration numbers for 2011 have eclipsed total participants in 2010 by more than 59 percent. “The increased participation in this section of the show and our RDE program is a huge indication of the industry’s excitement over being here in Las Vegas with us and the 120,000 other people who love the energy found only at the SEMA Show,” said See SEMA, Page 19
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Inside Insurance with The Insurance Insider
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Let’s Get Some Independent Testing to Move the Parts Battle away from Sandbox Bickering “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects his opinion and not necessarily that of Autobody News’ staff or contributors.
Since the arrival of the first non-OEM crash part from overseas a few decades ago, the debate has raged on over the value, safety and benefit of using these parts. It’s important to note that the rage hasn’t come from the consumer (you know, the person that actually has the parts installed on their vehicle). So if the consumer doesn’t seem to care, who does and why? The people who seem to care the most are the companies trying to sell parts. The reason is pretty simple:
money. So the next time you see a press release, a simulated crash or a reaction to test with a reciprocating saw involving crash parts, be advised that what you are witnessing is a demonstration of big business fighting for market share and profitability. I’m sure there are some safety concerns that need to be addressed. But if there were a significant enough problem, I would surmise that a lawsuit involving a few high-powered attorneys illustrating the faultiness of non-OEM crash parts and the resulting death of a vehicle’s occupants would have happened at least once in the past few decades. If you are aware of one, please send it to Auto.Insurance.Insider@gmail.com. Lacking
that, what we really have are two kids who can’t play in the same sandbox. The end result is a lot of propaganda, rife with chest-puffing, staged testing, wasted money, name-calling and an increased cost of parts to the consumer in order to offset the needless expenses—despite the car manufacturers trying to lead you to believe that it’s all in the name of safety. Hey, automakers, don’t waste any more money trying to convince us that the parts aren’t safe. Do everyone a favor: show us the lawsuits and scientific data illustrating the fatal consequences of using non-OEM crash parts. If you can’t, please spend your money some other way. Maybe donate it to a charity. Or here’s a suggestion: Consider reducing the price of your parts. The non-OEM parts market can be divided among the “certified” or “non-certified.” Some might argue that they are one in the same, but I can assure that they are different most of the time. I should clarify: Sometimes a certified part is placed in a non-certified box. Why? Because it’s probably more economical for the parts manufacturer to produce and stock one part as opposed to two. However this represents a very small proportion of parts. Unfortunately, certification doesn’t carry the high praise one might think. Most shops scoff at certification as nothing more than a way to charge more money. That isn’t the case. Certification provides a set of guidelines and a quality standard that the parts manufacturers must achieve. The certified non-OEM crash parts have improved as a direct result of certification. So I may have just told you everything you already knew about non-OEM parts. But here’s something maybe you haven’t thought of: Have you watched any of the recent car manufacturers’ crash tests involving non-OEM crash parts? Have you seen the now infamous reciprocating saw demonstration of a non-OEM bumper reinforcement being cut in half? Did
16 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
you find it odd that the parts being tested were never identified? Yes, they told us the year, make and model of the vehicle for which the parts were designed. But did they tell us what type of certified part was used? Was it Diamond Standard? CAPA? Platinum Plus? NSF? My guess is that we will never know. Why? Because they probably didn’t use certified parts for their tests. They used non-certified parts that are well-known throughout the industry as inferior. [Ed—See Toby Chess’ last column (Sept.) on clarifying the certification of parts tested.] Here’s another suggestion. An organization that is not connected to the parts industry should pay to have an independent company blind-test a series of parts. There should be one sample for each type of part (OEM, non-OEM, and certified non-OEM). If there is more than one certification
(CAPA and NSF, for example) for a given part, then each type of certified part should be represented. The parts should be tested by an accredited engineering company not associated with any of the OEMs, parts manufacturers or distributors. The tests should include static and dynamic testing. I would even recommend the ultra-scientific reciprocating saw test. Then we would finally be able to put an end this bickering between companies vying to discredit the other. We’d have test results that would be difficult to dispute. If you don’t support my idea, send me an e-mail telling me why. Otherwise, I will assume my throngs of devoted “Insider” followers are in full support, prepared to rally and take the hill. Charge! Got a comment or question for the Insurance Insider? Email him at: Auto.Insurance.Insider@gmail.com.
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Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
CIC Participants Tell Information Providers to Take the Lead in Chicken-or-Egg Dilemma with John Yoswick
What may have seemed to some at the most recent Collision Industry Conference (CIC) as a debate about esoteric computer jargon was actually a discussion about who gets access to all the information in a shop’s estimates. Speaking ahead of the meeting, Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said the way a shop’s estimating data currently flows through any of the current electronic connections in the industry—to the shop’s management system, to insurers, to parts suppliers, to rental car companies or CSI providers— Fred Iantorno can be compared to repairing a car without applying the needed corrosion protection. “You can’t see what’s inside of
these systems to see if the corrosion protection has been put there or not,” Iantorno said. “But over time, it’s like a time bomb waiting to happen. The rust will show up, because essentially the corrosion protection hasn’t been changed since 1999.” Iantorno, along with a number of collision repair trade associations and organizations, has been lobbying for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the news “BMS” standard. Understanding what those acronyms stand for is less important, he said, than understanding the key difference between the two. The EMS file includes every scrap of data included in an estimate: the customer’s information, the vehicle information, the parts and labor information. So if a shop, for example, orders parts electronically, the parts vendor receiving the parts list via the EMS file gets
18 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned. Because the newer BMS standard provides shops with more control over what data gets shared—thus making it easier to protect the privacy of data for customers, business partners and themselves—collision repair organizations have for years been calling for the information providers to enable shops to use BMS rather than EMS. And EMS was created a full decade before BMS, Iantorno points out, it’s based on older technology, making it akin, he said, to using a 1990s cell phone rather than one sold today. Asked again about BMS at the CIC meeting held this summer in Salt Lake City, Utah, Jack Rozint of CCC
Information Services said his company has implemented BMS in some limited instances. “There are some large collision groups that are using it to consolidate data, and there’s a couple paint company value-added programs that are using our implementation of BMS to get repairer data to support their 20 groups,” Rozint said. “To be frank, the majority of our customers are using applications on the other end—receiving the data from Jack Rozint the shop—that are still using EMS, so all our systems still support EMS.” But Aaron Schulenburg of the Society of Collision Repair Specialists was among those at CIC who pointed out that it’s a bit of a chicken-and-egg situation; those receiving data from
shops, he said, can’t switch from EMS to BMS until the information providers enable shops to use BMS. “Unless somebody turns the switch first, it will never happen,” Iantorno told Rozint. “Right now, the list of applications that are BMS-capable to receive that format is a very short one,” Rozint said. “So we need the people who have the applications that are going to take in the EMS to come to us and say, ‘We want BMS implemented to replace the EMS interface,’ and we need our customers to tell us that that application is important.” But Tony Passwater, chairman of CIC’s Data Privacy Committee said CCC, Mitchell International and Audatex just need to do what companies in other industries have done to push for a shift to new, better technologies. “They just need to say that as of a certain date, the EMS standard will be sunsetted,” Passwater said. “Starting on that date, only the BMS standard will be supported. Then the application developers aren’t going to have to make (their) systems import EMS files. And believe me, it’s a lot easier for them to use BMS. But you
have to tell the application developers you won’t use it anymore. That’s as simple as it is. It is a chicken-and-egg syndrome. The information providers have got to set that sunset.” Another CIC participant, speaking privately after the meeting, said he may hand out buttons for shop owners to wear at this fall’s trade shows saying, “No BMS now? No thanks.” In other news and discussion at CIC in Salt Lake City: ● Representatives of several of the paint companies say that testing of waterborne clearcoats continues, but that several challenges remain. “It looks odd when it goes on—almost white—but dries super-clear,” Bob Burgess of PPG said. “It looks really good, but it’s not as fast (as solvent-based clearcoats).” Paul Maiersperger of DuPont concurred based on his company’s development of waterborne clears. “The durability has always been an issue, and the productivity, because everyone wants faster and faster clears,” he said. “That’s something we need to address.” ● The CIC Definitions Committee said it is doing its regular review of CIC’s definition of a “Class A” collision repair facility, considering how
to address issues, for example, as whether or not a shop chooses to be equipped to do aluminum repairs. ● Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, was honored for her efforts earlier this year that helped prevent a teenage girl from jumping off an I-95 freeway overpass in a suicide attempt. Hendler called 91-1 as she approached the girl on the edge of the overpass, then kept talking to her, pleading with her not to jump. She kept talking to the girl as another by-passer approached from the other end of the overpass and was able to grab the girl and pull her back off the barrier she had climbed over. Hendler said it took both of them to hold the hysterical girl down until emergency responders arrived about four minutes after the call to 9-1-1.
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
Continued from Page 15
SEMA
SCRS Executive Director, Aaron Schulenburg. “A bigger, growing, thriving section, with a noticeable increase in the footprint of the collision industry in the Show means that we have done our part working with SEMA to make this an attractive environment for both exhibitors and attendees in our industry, ensuring that both have successful and inspirational shows.” Show attendees who identify Collision Repair and Refinish as their primary business interest has seen a 47 percent increase in show registration compared to the 2010 YTD figures. For more information, complete with full expo and education session schedule, please visit www.semashow.com.
www.autobodynews.com CHECK IT OUT!
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 19
Continued from Page Front Page
Insurance Commissioners
izing the department’s anti-fraud division to focus on investigating insurance company fraud against consumers, rather than the other way around. Doak fired six of the nine investigators of the anti-fraud unit, which had 142 open fraud cases, 120 of them involving complaints by insurance companies against policyholders. The anti-fraud division “had lost sight of its core mission,” Doak said, and it must now “focus on the white collar crime that threatens our policyholders.” “Investigating Steve Regan policyholders is not a function of the Insurance Department,” deputy insurance commissioner Randy Brogdon said. Steve Regan, chairman of the Collision Industry Conference (CIC) Governmental Committee, points out that insurers still have other ways to pursue the consumer fraud or other concerns they had brought to the Oklahoma Insurance Department. Regan said Doak was realigning a department that had essentially become an extension of insurance companies—without the authority to do so— rather than a regulator of insurers. Buoyed by the apparent change in focus, the Oklahoma Auto Body Association is reportedly trying to increases its interactions with Doak’s office. Meanwhile the Georgia Collision Industry Association helped develop a working relationship with Ralph Hudgens, that state’s insurance commissioner, by getting involved early in the election process last year. The association interviewed all the candidates for the office, both to understand their positions and to help make the candidates aware of the association and it’s members’ interests. When the commissioner’s office formed a property and casualty advisory board after Hugens’ election, GCIA had a seat on that board. Shop owner Bruce Halcro, president of the Montana Collision Repair Specialists, said “persistence” has been the key to his group’s working relationship with that state’s insurance division. The commissioner’s office, Halcro said, has been good about issuing bulletins to shops and insurers about new state laws the association has helped enact.
Those laws include a prohibition on insurers requiring vehicle-owners to take their cars to a specific shop for an estimate or repairs, and a requirement that insurers establish criteria for participation in a direct repair program—and open the program to any shop meeting that criteria. This year, Halcro said, a new law was passed that prohibits an insurer from “unilaterally disregard(ing) a repair operation or cost identified by an estimating system” that the insurer and shop have agreed to use to determine the cost of repair. Halcro said the association will be meeting with Insurance Commissioner Monica Lindeen’s office “to find out how she will regulate that.” The California Department of Insurance last year issued a memo reminding insurers of the state’s regulation requiring that all non-OEM parts specified be equal to OEM in Carl Garcia terms of quality, safety, fit and performance, and carry permanent identification of their manufacturer. “It has come to the Department’s attention that certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit and performance,” the memo states. At the time, California Autobody Association Executive Director David McClune called the memo “a first step” toward the standardized parts traceability system the association said is necessary to enable a recall of parts found to be faulty or unsafe. Though it operates essentially independently of the state insurance commissioner’s office, the Massachusetts Auto Damage Appraiser Licensing Board (ADALB) helps shops in that state deal with concerns about insurers, said shop owner Carl Garcia, who serves on the board. The ADALB consists of two shop representatives and two insurance representatives, all appointed by the Governor, and a fifth member, appointed by the state insurance commissioner, who serves as the chairman. Garcia said one function the board serves is to oversee the licensing of all appraisers, both at shops and insurers. He said that process includes a written estimating test on the fundamentals of estimating. “If you don’t know how to use the manual and don’t understand the
20 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
concepts, you’re not getting licensed,” Garcia said. “It’s amazing how many people aren’t passing the test because they don’t understand how to correctly use the manuals.” Garcia said the ADALB and insurance division help enforce such regulations as a prohibition on running drive-in claims at a shop, and a requirement that insurers send an appraiser to a shop within three business days of a supplement request, returning the completed supplement within one more business day. Texas Among the Most Active Texas has had perhaps the most active insurance division in terms of addressing shop associations in recent years. For the second time within a year, the Texas Department of Insurance this past June issued a bulletin reminding insurers that a one-year-old state law prohibits them from “directly or indirectly” limiting auto insurance coverage by limiting policyholders from using a shop of their choice. The bulletin also states that while an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither that nor policy language suggests that the reasonable
amount for repairs or parts must be based on the amounts charged by DRP shops. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, said the bulletins were triggered in part by a survey of insurers the Department conducted with input from the Houston Auto Body Association. The Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers. “The Texas Department of Insurance, and not the association, said, ‘Hey, this is existing Texas code, and based on some of the survey answers we’re getting (from insurers), it may or may not be being followed,’” Schulenburg said. Elected vs. Appointed What do many of these states’ insurance commissioners have in common? Many are among the 11 such commissioners in the U.S. (including those in Kansas, Louisiana, North Carolina and North Dakota) who are See Insurance Commissioners, Page 28
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Continued from Cover
NACE Schedule
Note also the ASRW Industry Forum, Weds. 4:30-7:00 pm, to attend 1.Trends in Collision Repair: A Futurist Discussion (collision) and 1. The Changing Climate of Insurance Agreements (collision)
October 5
Wednesday / 8am–12pm
Title: Inspecting Repairs for Quality Control (QUA01) / Instructor: Bob Zelano / Code: IC01
Title: Steel Utilized Structures, Technologies & Repair (SPS07) / Instructor: I-CAR Instructor / Code: IC02
Title: Collision Repair for Toyota, Lexus, and Scion Vehicles (TOY01) / Instructor: I-CAR Instructor / Code: IC03
Wednesday / 8:30am-10am
Title: How to Build a Better You / Instructor: Bryan Dodge, Dodge Development / Code: WE01NC
Title: Marketing for a DRP - Acquiring the Business / Instructor: Hank Nunn, AutoNation / Code: WE02N
Title: Creating a Positive Work Environment / Instructor: Felicia Funchess, BASF / Code: WE03N Title: Post Repair Problems Related to Undercarriage Issues, TPMS and ESC Lights / Instructor: John Shewbridge, Hunter Engineering / Code: WE04N
Wednesday / 8:30am-11:30am
Title: Ignite the Internet! Internet Marketing for Auto Repair Professionals / Instructor: Danny Sanchez, Autoshop Solutions / Code: WE05C
Title: Creating Raving Fans for Your Business / Instructor: Chris Chesney, CARQUEST Technical Institute / Code: WE06NC Title: The Mechanics of Estimating / Instructor: Mike Anderson, Collision Advice / Code: WE07N Title: Sherlock Holmes Diagnosis / Instructor: Jim Morton, Morton’s Automotive Technical Services / Code: WE08C
Title: Hybrid Technology (Powered by CARQUEST Technical Institute) / Instructor: George Lesniak, CARQUEST Technical Institute / Code: WE09C
Wednesday / 10:30am-12pm
Title: What to Do When an Inspector Knocks on Your Door / Instructor: Eric
Schmitz, KPA / Code: WE10NC
Title: Give Me Your Keys Please / Instructor: Tony Nethery, Colormatch Automotive Refinish / Code: WE11NC Title: Why Lean Implementations Fail in the Collision Repair Industry (Repeated on Thursday-TH10N) / Instructor: Tony Passwater, AEII / Code: WE12N Title:Design-BasedRepairs(RepeatedonFriday-FR10N)/Instructor:Richard Perry,Chief Automotive Technologies / Code: WE13N
Wednesday / 1pm-5pm
Title: Collision Repair for Ford & Lincoln Vehicles (FOR05) / Instructor: ICAR Instructor / Code: IC04
Title: Overview of Cycle Time Improvement for the Collision Repair Process (CYC01) / Instructor: I-CAR Instructor / Code: IC05
Title: Hybrid Electric & Alternative Fuel Vehicles (ALT02) / Instructor: I-CAR Instructor / Code: IC06
Wednesday / 1pm-2:30pm
Title: Building a Team That Works Without You / Instructor: Bryan Dodge, Dodge Development / Code: WE14NC
Title: Game On: Engaging the Gen Y Customer / Instructor: Ryan Schneider,
Insomniac Games / Code: WE15NC
Title: Back to Basics - Body Shop Financials / Instructor: Hank Nunn, AutoNation / Code: WE16N
Title: Winning With a Professional Road Map / Instructor: Becky Glauser, ContactPoint / Code: WE17NC
Wednesday / 1pm-4pm
Title: Winning Women Customers / Instructor: Margie Seyfer, Impact Presentations / Code: WE18NC
Title: Lean 3.0 - Flow = A Practical Path to Using Lean to Improve Process Flow / Instructor: John Swiegart, The Body Shop @, and Steve Trapp, DuPont / Code: WE19N
Title: I Object! / Instructor: Maylan Newton, E.S.I. / Code: WE20C Title: Farming Your Indsutry / Instructor: Aaron Clements, C and C Automotive / Code: WE21C
Title: Variable Valve Timing System Diagnosis (Powered by CARQUEST Technical Institute) / Instructor: Glenn Young, CARQUEST Technical Institute / Code: WE22C
Wednesday / 3pm-4:30pm
Title: Creating a Business That Works FOR You, Not Just BECAUSE of You /
See these Hyundai dealers below for all your collision parts needs! TEXAS
Allen Samuels Hyundai
Gene Messer Hyundai
Automax Hyundai
NORTH RICHLA ND HILLS
LUBB OCK
800-888-2079 817-589-7882 Fax
888-786-8128 806-785-2238 Fax
866-619-6406 405-364-3307 405-364-6504 Fax
Mon-Fri 7am - 7pm Sat 7am - 4pm sgressley@asag.net
Mon-Fri 7am - 7pm Sat 8am - 6pm csides@genemesser.com www.genemesserhyundai.com
Mon-Fri 8am - 6pm Sat 8am - 1pm
Hub Hyundai
James Wood Hyundai
Don Carlton Hyundai of Tulsa
Hyundai Sonata 2011 HOU STO N
800-856-2212 281-955-2311 Fax
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
Mon-Fri 7:30am - 6pm Sat 8am - 3pm hubparts290@hubhouston.com www.hubhouston.com
Van Hyundai CARROLLTON
972-512-4200 972-512-4202 Fax Mon-Fri 7am - 7pm Sat 8am - 3pm ktaylor@vtaig.com www.vanhyundai.com 22 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
OKLAHOMA NORMAN
DECATUR
TULSA
940-627-4607 940-627-4653 Fax
800-627-0705 918-622-2843 Fax
Mon-Fri 7:30am - 5:30pm hyundaiparts@jameswood.com
Mon-Sat 7am - 6pm hyundaiparts@doncarlton.com www.doncarlton.com
Instructor: Robert Clements, E-Myth Benchmark / Code: WE23NC
Title: Positioning Your Shop for Success in the Internet Economy / Instructor: Maurice Sternemann, Demandforce, Inc. / Code: WE24NC
Title: GREEN - It Benefits People and Business (Panel) / Instructor: Trish Serratore (Moderator), ASE / Code: WE25NC
Title: Zeroing in on Profit Improvement Opportunities through Process Driven Repairs (Repeated on Friday - FR20N) / Instructor: Scott Peirce and John Spoto, 3M Company / Code: WE26N Title: The Changing I.T. Environment– The Clouds Are Rolling In / Instructor: Fred Iantoro, CIECA / Code: WE27N
Title: Stop Guessing and Start Knowing / Instructor: Tom McGee, ALLDATA / Code: WE28N
October 6
QUEST Technical Institute) / Instructor: Jim Cokonis, CARQUEST Technical Institute / Code:TH02C
Thursday / 2pm-5pm
Title: Introduction to Lean / Instructor:Bernie Blickenstaff, Pro FinishesPLUS / Code:TH03N
Title: Crash Course in Internet Marketing! Internet Marketing for the Collision Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code:TH13N
Title: Increasing Technician Efficiency–It’s a Team Effort / Instructor: Ryan Kooiman, Standard Motor Products / Code:TH04C Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 1 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd / Code:TH05C
Title: Essential Electronics (Powered by CARQUEST Technical Institute) / Instructor: Carl Schweikert, CARQUEST Technical Institute / Code:TH06C
Thursday / 12pm–1:30pm
Thursday / 3pm-4:30pm
Title: TPMS Update (Powered by CAR-
Title: Leading Change / Instructor: Felicia Funchess, BASF / Code:TH08N
Title: Accessory Belt Drive System Diagnosis / Instructor: Bobby Bassett, Gates Corporation / Code:TH01C
Title:Attitude is Everything! / Instructor: Maylan Newton, E.S.I. / Code:TH07NC
Title: Negotiation Skills–Key to Improved Profitability / Instructor: Hank Nunn, AutoNation / Code:TH08N
Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 2 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd. / Code: FR03C
Title: Why Lean Implementations Fail in the Collision Repair Industry / Instructor: Tony Passwater, AEII / Code:TH10N
Title: Gas Direct Injection (Powered by CARQUEST Technical Institute) / Instructor: Jason Virdin, CARQUEST Technical Institute / Code: FR04C
Title: Parts Procurement Tips for Estimators (Panel) / Instructor: Mike Anderson, Collision Advice and Ron Kuehn, Collision Business Solutions, Inc. / Code:TH11N
Title: Insurance and Collision Repair Issues 2012 / Instructor: Robert Passmore / Code: PCI01
Title: Leading and Succeeding: Cultivating Leadership Skills That Benefit You and Your Organization / Instructor: Marcy Tieger, Symphony Advisors, LLC/ Code:TH12NC
Friday / 8:30am-10am
Title: Communicating With People Who Drive Us Crazy / Instructor: Margie Seyfer, Impact Presentations / Code: FR05NC
Title:Electrical Troubleshooting for the Body Shop Tech / Instructor: Jim Morton, Morton’s Automotive Technical Services/ Code:TH14N
Title: Dismantle the Social Network! Social Media Marketing for the Automotive Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code: FR06NC
October 7
Title: Blueprinting Basics / Instructor: Bernie Blickenstaff, Pro FinishesPLUS / Code: FR07N
Friday / 7:30am–10:30am
Title: The Power of Change / Instructor: Richard Flint, Richard Flint International / Code: FR01NC
Title: Practical Uses for eLearning in Collision Repair / Instructor: Dick Elder and Steve Trapp, DuPont / Code: FR08N
Title: Simple Cycle Time Solutions / Instructor:Ron Kuehn, Collision Business Solutions, Inc. / Code: FR02N
Title: Understanding Continuous Improvement / Instructor: Mike Ander-
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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 23
速
+ 24 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Subscribers:
The Honda and Acura Dealers Listed Here are H O N DA TE X A S
TE XAS
Allen Honda
OKLAHOMA
Gillman Honda
LOU ISI A N A
Don Carlton Honda
Superior Honda
C o lleg e Sta tion
H o us t o n
Tu l s a
Harvey
866-680-2424 979-696-2424
800-999-8309 713-776-4834
800-722-2379 918-622-9670
800-943-4227 504-368-5687
Dept. Hours: M-F 7-6; Sat 8-3 parts@allenhonda.com
Dept. Hours: M-F 8-6; Sat 8-5 gduckworth@gillmanauto.com
Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com
Dept. Hours: M-F 7-5:30 parts@superiorhonda.net
Bankston Honda
Honda of Frisco
Joe Marina Honda
N EW M E X I C O
Lewisville
Frisco
Tu l s a
Garcia Honda
800-344-8611 972-219-0021
866-442-2711 972-731-3176
800-722-0520 918-491-0110
A l b u q u e rq u e
Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com
Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com
Dept. Hours: M-F 7:30-6; Sat 8-4 parts@joemarinahonda.com
Benson Honda
Russell & Smith Honda
LOU ISIANA
800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com
San An tonio
H o us t o n
Walker Honda
Santan Honda
800-727-8705 210-340-0831
800-833-0180 713-663-4266
A l ex a n d r i a
C h a n d l e r, A Z
Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com
Dept. Hours: M-F 8-6; Sat 7-4 rnarvaez@russellsmith.com
318-448-8255 318-445-6677
800-765-1353 480-285-2804
Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com
Dept. Hours: M-F 7-5:30; Sat 7-5 wholesaleparts@santanhonda.com
Cleo Bay Honda
Wholesale Parts Direct
Killeen
Austin
Patty Peck Honda
Showcase Honda
877-253-6229 254-699-2478
800-234-4441 512-458-2910
Ridgeland, MS
P h oe n i x , A Z
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@cleobay.com
Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com
800-748-8676 601-957-3400
800-537-8236 602-230-7306
Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com
Dept. Hours: M-F 7-7; Sat 8-5; Sun 9-4 dfoote@vtaig.com
ACU R A TE X A S
TE XAS
TEXAS
LOU ISI A N A
Champion Acura
David McDavid Acura
Sterling McCall Acura
Acura of Baton Rouge
G ulf Freeway
Plano
H o u s to n
Baton Rouge
800-749-6227 713-371-4700
972-964-6044
713-596-2337 713-596-2338
866-733-2861 225-756-6166
Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com
Dept. Hours: M-F 7:30-6; Sat 8-5 dlavigne@acurabr.com
Dept. Hours: M-F 7-6; Sat 7-5 championacuraparts@autonation.com
Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com
Mac Churchill Acura OKLAHOMA
David McDavid Acura
F o r t Wo r t h
Aus tin
888-824-9634 817-806-0571
Don Carlton Acura of Tulsa
Metairie
Tu l s a
Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com
888-550-7278 918-664-2300
800-359-8555 504-465-8555
800-575-3553 512-401-5976 Dept. Hours: M-F 7-7; Sat 8-5 jraygo@mcdavid.com
Walker Acura
Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com
Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 25
Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
www.autobodynews.com
Autobody News
Kia Sorentos Recalled for Faulty Front Airbags
The National Highway Traffic Safety Administration along with Kia Motors have announced a recall of more than 10,600 ‘07 and ‘08 Kia Sorento sport utility vehicles. The problem: Faulty programming may incorrectly deactivate the front passenger airbag for adult riders, according to Consumer Reports. The issue affects the Occupant Classification System (OCS) installed in 2007 and 2008 model year Sorento SUVs manufactured from June 2006 through September 2007. The OCS is designed to turn off the airbag if a child or a baby seat is in the front passenger seat. Faulty programming, however, will also prevent the passenger airbag from deploying during a collision if a heavier adult rider is occupying the front seat. (The "passenger airbag off" warning light on the Sorento’s dashboard, however, does alert drivers and occupants of the deactivation.) Kia is currently advising owners of affected Sorento vehicles to bring their SUVs into local dealerships where technicians will reprogram the OCS to operate correctly. For more information, consumers can contact Kia’s toll free customer service live (800-333-4542) or visit the NHTSA website: www.SaferCar.gov.
TEXAS • OKLAHOMA • LOUISIANA • NEW MEXICO
Subarus Recalled Because Moonroof Can Detach Subaru is recalling 69,590 2011 Legacy and Outback vehicles because the moonroof glass can loosen and detach from the roof during driving, according to the National Highway Traffic Safety Administration. "The moonroof glass comes loose or off," said NHTSA in its recalls summary of the problem. "The amount and position of the adhesive between the glass and retainer was inadequately applied. The moonroof glass can loosen and detach from the vehicle during driving, resulting in a potential road hazard for other vehicles, increasing the risk of a crash." It is the second recall for the 2011 Legacy and Outback this week. Earlier, Subaru recalled 195,080 2010-'11 Legacy and Outbacks because components inside the wiper motor bottom cover may overheat and could lead to a fire, according to NHTSA. In other documentation filed with the federal government, Subaru said it has received one technical report of the moonroof defect in the U.S. Subaru dealers will inspect the glass adhesion condition and either apply additional adhesive or replace the moonroof glass. The recall is expected to begin in October. Owners can contact Subaru at 1-800-7822783.
Subaru Legacy and Outback Recalled for Windshield Wipers Subaru is recalling 195,080 Legacy and Outback vehicles from model year 2010 to 2011 because the bottom cover of the windshield wiper can overheat, causing the wiper to malfunction, according to Consumer Reports. If the wiper is inoperable, then it can reduce visibility and increase the likelihood of a crash, or the overheated wiper can cause a fire. The affected vehicles were manufactured from January 7 through May 20, 2011. The safety recall is expected to begin in November. Subaru will notify owners and dealers will replace the
front wiper motor bottom cover assembly for free. For more information owners can contact Subaru at 800-782-2783, or The National Highway Traffic Safety Administration’s Vehicle Safety Hotline at 888-327-4236 or visit Safercar.gov. The Subaru safety recall number is WVV-32.
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26 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
VW Recalls Jettas With Too Long Tailpipes
October 2011
Subaru/Saab Recalls Models for Suspension Corrosion
Volkswagen of America has a hot tip, literally, for owners of its latest Jetta cars. Be careful of your Jetta’s exhaust pipe, according to Consumer Reports. Last week, the German car company along with the National Highway Transportation Safety Administration issued a recall for certain 2011-2012 model year Jettas. The problem: stainless steel tips added to the end of exhaust pipes may extend the length of the factoryinstalled pipes beyond design specifications. This flaw may make it possible for a person to receive exhaust system burns—say, by inadvertently brushing an exposed leg against the exhaust pipe tips while unloading the trunk after a shopping trip. Approximately 30,300 Jetta models may have had these steel tips installed at shipping ports during the vehicles’ importation into America. Volkswagen says in November it will notify affected owners to bring their Jettas into local dealerships. Technicians will inspect the Jetta’s exhaust system and, if necessary, replace the tips to bring the pipes’ length back to design specifications. For more information, consumers can contact Volkswagen’s toll-free customer care line (800822-8987) or visit the NHTSA’s website: www.SaferCar.gov.
Subaru is recalling 295,123 2002 to 2007 Impreza, 2003 to 2008 Forester, and 2005 to 2006 Saab 92X vehicles due to corrosion, which could cause the front lower control arm in affected vehicles to break, according to Consumer Reports. The control arm could break at the hanger bracket if the bracket is exposed to salty and humid road environments, such as roadways covered in snow-melting agents. A broken control arm can cause a driver to lose control of the vehicle and increases the risk of a crash. Affected vehicles were sold in or are currently registered in the following states: Connecticut, Delaware, Iowa, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnisota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. Affected vehicles were manufactured between Sept. 5, 2000 and Nov. 26, 2007. Subaru dealers will inspect for corrosion and either rustproof or replace the front lower control arms for free, depending on how much corrosion damage has already occurred. Vehicle owners can call Subaru at 800-782-2783, or visit Safercar.gov.
The U.S. National Highway Traffic Safety Administration and American Honda have issued a recall of 20092011 model year Honda Pilot SUVs for concerns over the sport utility vehicles’ front seat belts, according to Consumer Reports. Both the NHTSA and Honda report that the stitching that holds the driver’s and front passenger’s seat belt to their respective anchor webbings may be missing or incomplete. Such flaws may allow the seat belt to detach from its anchor during a collision and increase the risk of injury. Nearly 311,000 examples of the
popular Honda SUV may have this default. Honda says it will begin to notify affected owners on or near October 3 and advise them to bring their Pilots in to local dealerships. Technicians there will inspect the front seat belts and, if necessary, will perform the repair for free. Pilot owners can obtain more information about the recall from American Honda (800-999-1009) and from the NHTSA’s website: www.SaferCar.gov.
Nearly 311,000 Honda Pilots Recalled for Front Seat Belts
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Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
When Something ‘Common’ Turns Out to be Not So Common with Gonzo Weaver
Ok, who out there knows everything about automotive repair? Who out there has seen it all, and wouldn’t be surprised if something so common to do now turns out to be not so common? Well, one thing is for sure—it ain’t me. I learn something new about this crazy car business every day. Especially when it comes to the electronics in today’s cars. Even though I’ve spent a lifetime repairing these electrical nightmares that come into my shop, it still has its surprises. These days it’s not only the wiring, but some of the results I see from the scanners that can be just as unexpected. My buddy Tom’s 2005 Cadillac Escalade EXT was having some problems. It’s a well kept, clean and in great shape ride. The suspension system was sending the driver its little notice across the dash message banner, “Suspension system service needed”.
“Sure, bring it in Tom. I’ll throw it on the scanner and see what’s going on,” I told my old pal. I grabbed the Tech 2 with the CAN unit hooked up to it and headed to the car. Only one code, C0660 was stored—“Level Control Exhaust Valve”. “Ouch Tom, that’s going to mean a new pump unit, because the valve isn’t something that is sold separately, as far as I know,” I told him, “But let’s run the diagnostic test and make sure.” Tom and I are old friends, and he gets a kick out of watching the technical wizardry of the scanners, and the processes we as technicians and mechanics go through to make the repairs on these cars. He’s known me for so long he knows I’m not one to skip or guess at the repair. I like to know that what I’m doing is correct and as precise as it can be. With Tom watching over my
shoulder (as he always does), I pulled up the diagnostics for the code on the shop PC. I printed a copy to carry out to the car, and Tom read step one of the diagnostics out loud. “Perform a Diagnostic System Check. What’s that?” he asked. “Read the codes, check for anything that looks out of place…stuff like that, and verify complaint,” I told him. “Well, what do ya think?” he wanted to know. “Let’s go to step 2,” I said. Tom reads on: “Step 2 : 1.Install a scan tool. 2.Turn On Ignition, with the engine Off. 3.With the scan tool, command the exhaust solenoid On and Off Does the exhaust solenoid valve turn ON and OFF with each command? Yes or No.” After several years using a scanner it’s not uncommon to activate a
solenoid or a component this way. A lot of times I use this same test to check transmission shift solenoids, or turn on a blower motor, maybe even activate the A/C compressor. There are so many components that can be activated this way, and it makes the job a lot easier once you get the hang of using the scanner. This was no different, or was it? I found the section on the scanner and hit the ON button; instead of a “click” or a constant OFF on the screen information I got an error message. “No communication with Suspension Module”. I tried it several times, same results every time. Tom looking a little puzzled, “It should have activated the solenoid or something right?” “What was the question on 2 again, Tom?” I asked, since he was holding the paper work. See Common, Page 28
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 27
Continued from Page 27
Common
“It wants to know if Yes, see Diagnostic Aids, If NO, go to step 3,”” Tom reads on, “But it doesn’t say what to do if there is no communication.” Normally, if I was activating a solenoid I would listen for that “click”, if I didn’t hear the “click” I would read the screen to see if the activation was accepted, and see if it had switched from ON to OFF, but I’ve never seen the scanner go from perfect communication to “no communication” as soon as I tried to activate a solenoid. Just to double check things, I wanted to activate the compressor from the scanner, since it was on the same page as the exhaust solenoid. I tried it, same thing, “No-Comm”. Ok, for all you techies out there— before you read the rest of this— what’s your first idea as to what’s going on with this vehicle? Is it a buss line problem, a suspension module problem, or is it merely the exhaust valve? No fair if you’ve already run across this, time to take your guess. Ok, now don’t change your answer. Continued from Page 20
Insurance Commissioners
elected to the position rather than appointed by a governor. “If you operate in one of those 11 states where you have elected insurance commissioners, it seems like inquiries from individual or organization may be addressed a little quicker,” Regan said. So is working toward making insurance commissioner an elected position a worthwhile endeavor for collision repairers hoping a state regulatory body more responsive to its needs? The last time such a change was made in a state was in 1988, when California voters passed sweeping insurance reform with Prop 103. Many long-time collision repairers in that state say the change to an elected insurance commissioner has been a positive one though hardly a cure-all.
Here we go with the rest of the story. I took a chance, since I had some sort of communication with the module. I thought I might as well look at the wiring diagram and see if I could activate the valve and the compressor directly at the module. On pin #B5— Dk. Blue—of the module was the ground signal from the module to the exhaust valve. I grounded the lead— “click” the valve worked, (and that was what the code was for) I then found the ground lead that activated the compressor relay; lead A10 – Lt. Blue—it too worked. “Now Tom, that doesn’t mean that it’s working back there at the compressor, just because I turned them on, is no guarantee its pumping air into the shocks. You know, I’m not a 100% sure what’s going on, let’s get a second opinion. I’m thinking, module, and if it is the module we’ll have to reprogram it. But before I condemn the module, I think we should get that second opinion.” Since I didn’t sound sure of myself, Tom said he would run over to the dealer and see what they said. I was concerned that my Tech 2 might be the problem. I couldn’t be sure Regan said elected or appointed, the key to getting an insurance commissioner attuned to the needs of the industry are tenacity and consistency. “The most important thing is you have to ask,” Regan said, noting that a state representative can sometimes provide a good entrée into a commissioner’s office for shops. “I hear it all the time: divisions of insurance do nothing. All that leads to really is people saying. ‘Why bother asking?’I’d like to flip that on its head. Let’s start asking. We’ve seen some success stories. If you don’t ask, you won’t get anything.”
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
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without finding someone else with the same equipment and do the same test. Not only was it for Tom’s Escalade, but also for my sake. I wanted to be sure my scanner was working OK. It wasn’t even an hour later, and he was back over to my shop. “They said it needs a compressor assembly and both shocks. Because they said the shocks are leaking.” “Leaking? Tom, has it ever dropped since the pump stopped working?” “No, never has” “I don’t think you need shocks, but I’ll have to lean towards the pump, but that doesn’t explain the “nocomm”, we both know the code said the exhaust solenoid was out—two different scanners same results there. I’m sure they’re more familiar with it than I am, sounds like we should start with a compressor. I’m not ruling out the module yet, and I’m very positive that you don’t need shocks. But, there might be some feedback signal that the test isn’t telling me about that might be the cause of the “No-comm”. Let’s change the compressor”. Got a new compressor assembly and put it into place. “Start it up Tom.”
As soon as he turned the key he knew it was fixed, the suspension message was gone, and the dash was back to normal. “Tom, let’s back it out of the way of the lift and try the scanner again.” We did just that, and wouldn’t ya know it, each and every time I activated the solenoid or the compressor it came on. The code was no longer current but was in the history file. I cleared the codes and ran thru the test again—all clear. Ok, what did you think it was? How many guessed that it wasn’t the exhaust valve that was bad, even thought that was the code. What it turned out to be was the pressure sensor mounted on the pump. When the info didn’t make it to the module, the module shuts down any and all operation— including, scanner capabilities. I wouldn’t have believed it myself, but I watched it happen right in front of me. So if you run across a suspension system on one of these Escalades, and the test asks to activate the exhaust solenoid, and the scanner says “NoComm”, check that pressure sensor for its reference return signal. You can bet I made a note about this one.
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Avery v. State Farm
recused himself in a case because he received $3 million in campaign contributions, then overturned a verdict against a contributor. The U.S. Supreme Court decided the judge should have recused himself because of the “serious risk of actual bias.” But the latest petition argues that State Farm attorney and lobbyist William Shepherd was on the executive committee of Illinois Civil Justice League (ICJL), which recruited Karmeier and donated (through its political action committee) $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, an affidavit in the case points out, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated over $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign In 1999, the landmark class action lawsuit Avery v State Farm rocked the collision industry with not only its staggering $1.8 billion dollar judgment but also its implications for the viability of the aftermarket industry. Louisiana resident Michael Avery and four other named plaintiffs brought the class action in Illinois against State Farm. The original circuit court jury found in favor of the plaintiffs, and awarded the $1.8 billion. This ruling was affirmed on appeal by the state appelate court, except that the judgment was reduced to $1.05 billion. It wasn’t until the case got to the Illinois Supreme Court that the judgment against State Farm was overturned. The Supreme Court found that, because of the various types of language used in State Farm’s different insurance policies, it was an error for the circuit court to certify a nationwide class as to the contract claims. The court also held that the plaintiffs had failed to establish any breach of contract on the part of State Farm, or that they had even established any contract damages. To completely twist the knife in the plaintiffs’ case, the Supreme Court further found that only one of the five named plaintiffs had his vehicle assessed and repaired in Illinois, and since he couldn’t prove he suffered damages, the class ac-
tion judgment was completely reversed. It seemed a slam dunk for State Farm. In 2006 the Illinois Supreme Court was petitioned to review the case on the grounds that then-circuit Judge Lloyd Karmeier, declined to recuse himself, and then ruled for one of his biggest campaign contributors, State Farm. Justice Karmeier, who received over $350,000 in direct contributions from State Farms employees, lawyers and others, and over $1 million more from groups of which State Farm was a member or to which it contributed, won both the fundraising battle and the election. Justice Karmeier then declined to recuse himself from Avery, which had been pending before the Illinois Supreme Court during the campaign. In the appeal, Justice Karmeier cast the decisive vote reversing a lower courts breach of contract verdict of over $450 million against State Farm. The Supreme Court denied the recusal petition and did not hear the case. This month the Supreme Court was again petitioned by a group of Avery attorneys—including former TV actor, U.S. senator—and briefly candidate for the GOP nominee for President—Fred Thompson allege State Farm lied and mislead the court, hiding its “extraordinary support of Justice Karmeier’s campaign and to thwart Justice Karmeier’s disqualification.” The petition asks the court to restore at least part of the billion-dollar judgment against State Farm on the grounds that months before siding with State Farm in the questioned August 2005 ruling, Karmeier refused calls that he recuse himself despite concerns that the hundreds of thousands of dollars he allegedly got directly from State Farm for his campaign could taint Fred Thompson his judgment. State Farm’s lawyers have insisted the company itself gave no money to Karmeier, who this month’s petition asserted was recruited by the company to run for the court as a “pro-business candidate” and actually got $2.5 million to $4 million in contributions through State Farm. Much of that money came through a political action committee (JUSTPAC) bankrolled by insurance companies and others who lobby for damage award caps, with Karmeier well aware of State Farm’s involvement in his camSee Avery v. State Farm, Page 34
30 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Texas Independent Automotive Association (TIAA) Holds September Meeting The Texas Independent Automotive Association (TIAA) held their Sep-
He talked about how answering the phone in a correct manner, and updating your voicemail, among other things, will improve customer relations. One member and shop owner also got up and spoke briefly about the Massachusetts Right to Repair bill aimed at the 2012 Massachusetts state ballot. The TIAA will hold Left to right: Gabe Mendez, TIAA Alamo Chapter President, Art Luna of Luna Automotive, Chris Graf of C&C Auto Clinic, Denise their October monthly and David LeMeilleur of LeMeilleur's RV truck and equipment remeeting on October 20 pair, and Hunter Hooge, TIAA Membership Director at 7pm at Pompeii Italtember members meeting on Septemian Grill in San Antonio. ber 15 at the Barn Door in San For more information please visit Antonio, TX. The meeting had 40 www.tiaa.net. members in attendance; the group has been able to nearly double their attenSearch: dance numbers over the past four months. Sid Hurlbert was the guest speaker and he talked about customer service.
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Ford Motor Company Issues Response Statement to ABPA Crash Test Videos Ford Motor Company said that the recent report published by the Automotive Body Parts Association (ABPA), claiming Ford service parts are inferior to its production parts, is based on incomplete facts and only highlights the aftermarket parts industry’s lack of understanding about some aspects of the auto manufacturing process. The carmaker has issued a complete explanation. See coverage in Sept. issues of Autobody News, or online at autobodynews.com. The ABPA report, published on September 9, cites engineering test results that show significant material differences between one Ford service part and the Ford production part it was designed to replace. Based on the result of that test, the ABPA concluded that Ford Genuine OEM Collision Replacement Parts are different than the original production components. The ABPA published the test results along with accusations that Ford was ‘grossly misrepresenting the truth’ when it claimed in a video that “Genuine Ford collision replacement parts are the same as those used
to manufacture the vehicle.” Ford, however—acknowledging that the parts tested by NSF were indeed different—said the conclusion drawn by the ABPA is based on incomplete facts and that the 2005-2009 Mustang front bumper isolators tested by ABPA (through NSF) were both used for vehicle manufacturing as well as service replacement. The carmaker said, “The parts referenced [by the ABPA] were used for both manufacturing and service replacement, and were thoroughly tested and proven to meet Ford’s specifications for the Mustang. The statements in Ford’s YouTube video are true and accurate and Ford stands behind all of them, including Ford’s claim that collision replacement parts are the same as those used to manufacture the vehicle. “ABPA’s accusations highlight the aftermarket’s lack of understanding and difficulty staying current with the frequent running changes made by automakers in their quest to constantly improve vehicles,” Ford
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noted. Here are the facts as presented by Ford: Many part materials are exhaustively analyzed and tested by Ford during the vehicle development process to meet internal and external requirements for safety, quality, fuel economy, cost-of-ownership and breakthrough technologies. At Job 1 (first production assembly of a new model) for the 2005–2009 Mustang, specifications called for single-density polypropylene front and rear bumper isolators. However, as the vehicle had been tested and certified using a double-density polypropylene front bumper isolator, Ford maintained the use of that material until the vehicle could again be thoroughly tested and certified using the singledensity polypropylene front bumper isolator. From Job 1 until January 18, 2007, the double-density polypropylene bumper isolator was used for both vehicle manufacturing and service replacement. Upon completing testing and proving the singledensity polypropylene front bumper
isolator met all requirements and specifications, it went into vehicle production and was used for both vehicle manufacturing and service replacement. As both double-and single-density bumper isolators were proven forward- and backward-compatible, both were available for service replacement until stock of the double-density isolators was exhausted. Ford said, “This chronology illustrates the lengths that Ford goes through to thoroughly test our Genuine Ford OEM Collision replacement parts as part of an entire system. These facts and Ford’s continuing concerns with the fit, finish, material composition and structural integrity of aftermarket collision parts reinforce Ford’s position that Genuine Ford Replacement Collision Parts are the right choice for consumers. The carmaker concluded, “As the NSF testing speaks to material differences, it would have been more complete and meaningful if the aftermarket polystyrene isolator had also See Ford Issues Response, Page 34
Company Connections
with Ed Attanasio
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s CollisionLink® Memorable partnerships make for great history: Hope and Crosby; Mantle and Maris; Jobs and Wozniak; Donny and Marie; Tom and Jerry—to name but a few. American Honda and OEConnection’s (OEC) CollisionLink® program can now be included on that renowned list of successful alliances. Since 2009, the automaker’s wholesale parts program, Collision Select, has connected a large number of body shops to their Honda and Acura dealerships’ parts departments via OEC’s CollisionBill Lopez Link parts procureis OEC’s Director ment system. of OEM Program Through Honda’s Management program, the carmaker enables its participating dealers to assist body shops in enhancing their cycle times, alleviating shop returns, and streamlining parts ordering, but most importantly for repairers and parts managers, it allows shops to incorporate more Honda and Acura Genuine parts into their repairs. To further support an already healthy working relationship, American Honda is providing additional support to its dealers, through an aggressive promotional campaign known as “A Perfect Pair,” designed to provide further exposure and ultimately sign up additional collision facilities nationwide. OEC’s Director of OEM Program Management, Bill Lopez, 47, has seen the collision industry from disparate perspectives over the past 22 years. After college he worked as a Claims Manager with Farmers Insurance, where he learned estimate writing, the importance of cycle times and the issues common to insurers, body shops and their customers. He also worked in business development with a paint manufacturer, an online estimating company and even joined an internet startup for a time in Silicon Valley. Lopez manages all of OEC’s OEM relationships which include alliances with major nameplates such as Ford, GM, Chrysler, Nissan/Infiniti, Volkswagen, Southeast Toyota and the aforementioned Honda/Acura. Of this group, Honda/Acura, Ford, Nissan/In-
finiti and Volkswagen have exclusive agreements with OEC, which means their original parts programs can only be featured on a site such as CollisionLink, according to Lopez. Lopez cites several major reasons why OEC has grown at a steady rate since it re-launched CollisionLink in 2006: “Since we have data access agreements with virtually all automakers, we’re able to scrub the parts to determine that in fact they’re the right parts for that damaged car Lopez explained. “CollisionLink is built on parts efficiency and order accuracy, which leads to fewer returns. And the end result is improved customer satisfaction, between the body shops and the dealerships. Those four things make up our core value proposition.” According to OEC statistics, approximately 4,500 to 5,000 body shops use CollisionLink on a daily basis. “There are somewhere between 35,000 to 40,000 body shops in the United States currently,” Lopez said. And we know that roughly 12,000 of them do the lion’s share of the business. So we work with almost half of these major players and continue to add more all the time.” Lopez knows the ongoing struggle that exists between insurers and body shops based on his extensive experience. That's why he says he knows the value of CollisionLink for companies like American Honda and their dealerships throughout the country. “One of the major metrics that insurance companies look at closely is parts utilization. A shop can either use an OEM part, a recycled part, an aftermarket part, or a re-manufactured part. When an estimate is written, a percentage is assigned to one of these categories. It’s called ‘part content’ and it’s one of the many metrics used by insurance carriers to rate their DRP’s performance. “If a shop has a 95% OEM parts content, an insurance company looks at that and says, ‘this shop is using a lot of OEM parts and it’s costing us money. They’re not doing a good job of managing their average repair costs, so I have to go in there and scold them.’ Of course insurance companies like to see more recycled, aftermarket, and remanufactured parts in their estimates, be-
cause the perception is that these parts are cheaper to purchase, but OEC’s CollisionLink is challenging that paradigm.” Says Lopez, “Body shops are now telling their insurers, ‘sure, I’m using a lot OE parts in my repairs, but I’m not costing you any more, because my costs are in line with my peers. So, don’t worry about my repairs, because CollisionLink helps take advantage of all these OE programs, where I can essentially buy original parts at aftermarket prices.” Educating insurance companies of CollisionLink’s core value proposition as well as its ability to administer OE discount programs is an important role for Lopez. “A large part of my job involves educating the insurance companies about CollisionLink... I tell them to take a look at our software, because
The parts crew at AutoWest Honda in Roseville, California uses OEC’s CollisionLink to get more Honda parts into their shop customers’ repairs. From left, Parts Technician Dave Slay, Parts Technician Scott Munsterman, Parts Manager Ron Shaw, Parts Technician Kevin Duell and Parts Technician Raymond Albright
they can get more OE parts on their customers’ vehicles, thereby increasing their policy holders’ satisfaction while managing their repair costs.” Getting dealerships to jump onboard is also a huge part of the equation. Says Lopez, “It’s contingent on the dealership relationship. If the dealer responds quickly, [CollisionLink] works well and the body shop will use it. The dealerships pay for it, but it’s free to the shops, so hopefully the dealer is continually touting it and educating them about it.” Once they take the time to look at CollisionLink and the OE programs it administers, body shops see the value and will at least consider it. “When the shops realize that they can use an OE part instead of an aftermarket part at the same price and retain the same margin,
now they’re listening and the light goes on,” Lopez said. Lopez is pleased to be working with American Honda for a wide range of reasons. “Honda is an awesome company to work with, because they’re very methodical and everything they do is carefully planned and strategically positioned. We’re very fortunate to be an exclusive partner with Honda, because they are definitely in a class by themselves when it comes to collaborating with us and innovating with them. They’re world-class and sincere in their efforts to provide optimum service to the marketplace that helps them to sell more parts, but in the end, everything they do is fair and well-thought out.” The data shows American Honda is number one when it comes to selling parts utilizing CollisionLink. “Their program parts are converted at a higher rate by more body shops using Collision Select via CollisionLink. Honda has a field service team that’s 100% dedicated exclusively to the success of their Collision Select Program and that’s why they hit great conversion numbers consistently.” One Honda Parts Manager who believes in the power of CollisionLink is Ron Shaw, 49, who has been with AutoWest Honda in Roseville, Calif. since 1991. He runs a department employing 19 people and sells approximately $7 million in parts annually. Although Shaw does not personally implement CollisionLink every day, he delegates those duties to a select group of his counter people. “I have key people I rely on to coordinate a lot of the computer duties around here and they’re very good at it,” Shaw said. “Yes, there’s no doubt that CollisionLink is a useful tool. Once our body shops decide to use it, they definitely like it, but there are a lot of smaller mom and pop shops in this area that aren’t completely onboard for anything involving the computer. We try to educate all of the customers we’ve got, to let them know that if they sign up for this program and use it, they’ll be able to use more original parts. I’m sure they’re all game for that, because they want to
See Perfect Pair, Page 34
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 33
Continued from Page 30
Avery v. State Farm
paign, the plaintiffs’ filing said. Such contributions “created a constitutionally unacceptable risk of bias such that (Karmeier’s) participation and vote to reverse the $1.05 billion judgment deprived (the) petitioners of their dueprocess rights,” according to the petition, which asks the state’s Supreme Court to rehear the case without Karmeier. Ironically perhaps, the plaintiffs also petitioned that Justice Karmeier not be allowed to participate in the decision as to whether or not he should be excluded. “In the final analysis, this evidence not only substantiates, but confirms, once and for all, that State Farm deliberately lied to and misled this court, and concealed information from this court in 2005,” reads the filing. State Farm said in a statement that “this case was resolved by the Illinois Supreme Court years ago, and (the) plaintiffs’ attempt to appeal to the U.S. Supreme Court was rejected.” State Farm responded to the charge of excessive support of Karmeier in 2005 by flatly denying “engineering contributions” to Karmeier’s campaign “for the purpose of impacting the outcome of this case [Avery].”
Background on Avery v State Farm The original complaint was filed in July 1997 in a breach of contract case in which the plaintiffs alleged that State Farm promised “to restore plaintiffs’vehicles to their pre-loss condition using parts of ‘like kind and quality,’” but, it was claimed, State Farm’s uniform practice was to specify the use of nonOEM crash parts to repair its policyholders’ cars in every instance in which such cheaper parts were available. Continued from Page 33
Perfect Pair
use OEM parts whenever they can, as a rule. It’s absolutely a benefit to them, especially since they don’t have to pay a dime to use it.” AutoWest Honda Roseville is adding more body shops to CollisionLink all the time. “We have something in the area of 30–40 shops that we’ve signed up. Traditionally, the big box body shop chains sign up and use it enthusiastically, while many of the smaller shops have resisted using the tool. We’re able to convert aftermar-
At the core of the case in the Supreme Court appeal was the meaning of the term “like kind and quality” as used in State Farm’s insurance contracts, and whether, as the plaintiffs argued, the term meant “like kind and quality to OEM parts”—or, as State Farm argued, it meant “sufficient to restore a vehicle to its preloss condition.” However, in the circuit court, the plaintiffs also alleged that the nonOEM parts at issue in this case were ‘categorically inferior’ to their OEM counterparts. In the plaintiffs view, non-OEM parts could never satisfy State Farm’s “like kind and quality” obligation. The plaintiffs argued: “As a practical matter, [State Farm’s] obligation could be met only by requiring the exclusive use in repairs of factoryauthorized or OEM parts.” The Illinois Supreme Court ultimately sided with State Farm as to the meaning of “like kind and quality,” noting that two main State Farm policy forms outlined the option to use non-OEM parts in the repair—or, required the insured to pay the cost of parts that resulted in “better than like kind and quality.” The inference was that better than must refer to OEM and therefore like kind and quality must not refer to OEM. Another key to the class action’s validity was whether or not State Farm’s contractual obligation was the same for all members of the class. State Farm argued repeatedly that it had many different contracts, and that certification of the class action should not be based on a uniform, singular contract with insureds. At circuit trial, the court and jury were charged with resolving the classwide question of whether State Farm, by requiring the uniform use of non-OEM ket or recycled parts to OE parts about 96% of the time,” Shaw said. How is Shaw able to get body shops to use CollisionLink, especially when they’re reluctant to try it? “Our outside sales person Suzie Troth is constantly visiting body shops to tell them how CollisionLink can benefit their business. Then it’s just a matter of them perceiving the value. We also try to educate them over the phone, stressing the ease-of-use and the fact that it takes all of the guesswork out of the process. It quantifies precisely what the parts are and what the prices are—so we can be sure we’re comparing apples and apples.”
34 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
crash parts, and through the course of conduct it designed to conceal the true import of this practice from its policyholders, breached its contractual obligations and committed consumer fraud. The court gave the jury instructions that State Farm’s contractual obligation was “exactly the same, whether State Farm promised to pay for crash parts of like kind and quality or promised to pay for crash parts which restore a vehicle to its pre-loss condition.” This disputed instruction became a key to the outcome of the Supreme Court’s reversal. The circuit court trial began on August 16, 1999, and lasted several days, involving hundreds of exhibits and testimony by dozens of witnesses. Each side presented the testimony of experts and body shop witnesses in support of their respective positions. The class-members were awarded $1.186 billion and State Farm immediately appealed the decision only to have the Appellate Court affirm the decision in 2001, albeit with an award reduced to just over $1 billion. In 2002, State Farm again appealed the case to the Illinois Supreme Court who eventually, in 2005, voted 4–2 to overturn the Appellate Court decision in favor of State Farm.
Continued from Page 32
Ford Issues Response
been tested and compared to the Genuine Ford polypropylene isolators.” The statement refers to the relatively small difference between the single-and double-density polypropylene isolators tested by the ABPA as opposed to the more extreme difference between the OEM high density polypropylene isolators and the substitute aftermarket isolators made from polystyrene—the white “styrofoam” that coffee cups are made from.
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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 35
Body Shop Law with Attorney Martin Zurada
Martin Zurada is a San Francisco-based attorney who regularly advises and litigates on behalf of California’s auto body repair businesses. Contact him at: m.zurada@sflawyer360.com
Independent Contractors in your Auto Body Shop—El Dorado or Fool’s Gold? Business owners who are struggling in a tight economy may be looking to shed some payroll costs by replacing employees with independent contractors. Some who pursue this strategy decide to lay off employees and hire independent contractors while others may rebrand some or all of their employees as independent contractors. This reclassification may result in lower payroll costs and more profitable workers, but is not without significant peril. State and federal governments have a strong incentive to make sure that businesses do not avoid taxes or circumvent employee protection laws by improperly labeling workers as independent contractors. Workers may also independently sue for misclassification. As a result, misclassification of any worker as an independent contractor may turn out to be much more costly than any benefits obtained through the misclassification. This article discusses the distinction between employees and independent contractors, the pitfalls associated with classifying auto body workers as independent contractors, and offers suggestions on how to set up a working relationship that is legal and beneficial to both the auto body shop and the worker. Hiring independent contractors may be advantageous to a business: Independent contractors may be cheaper, more efficient, and better motivated to work than employees due to the manner in which their compensation is structured. Independent contractors are paid based on the actual repairs they perform whereas employees are paid based on the number of hours they work. Independent contractors do not get paid overtime even when they work beyond a regular workday. Furthermore, if independent contractors fail to perform the repairs adequately they will not be paid, whereas employees must be paid for the hours they work but may be fired for poor performance. Payments made to independent contractors are ‘gross payments’, meaning that the independent contractor is responsible for paying all taxes, payroll deductions, workers’ compen-
sation, and benefits such as health insurance and vacation time out of his or her own pocket. The main disadvantage of independent contractors is that a business that hires them must relinquish control over their day-today operations and permit them to function as their own bosses. Being an independent contractor may be advantageous to a worker: Some workers like being independent contractors because they are their own boss and have an opportunity to make more money than employees. Independent contractors work any hours they want, hire other workers to help them complete jobs, have the right to refuse repair jobs they do not like, and can work for more than one business. Even though independent contractors do not get paid overtime, do not receive paid benefits, and pay their own taxes and workers’ compensation, they often earn significantly more than employees especially if they work efficiently and hire the right helpers. The main disadvantage of being an independent contractor is the economic risk of running one’s own business and the loss of legal protections that are afforded to employees. Hiring independent contractors is not without risk: Merely converting workers into independent contractors, or indiscriminately hiring independent contractors, can lead to problems. Independent contractors working for an auto body shop are likely to trigger a state or federal investigation or audit. In addition, independent contractors who have been terminated may file a lawsuit arguing that they were really employees who were misclassified as independent contractors and seek damages for failure to pay minimum wage and overtime as well as failure to provide rest and/or meal breaks. If administrative or civil proceedings demonstrate that the worker classified as an independent contractor was really an employee, the auto body shop will incur significant losses in the form of taxes, penalties, unpaid wages, interest, and attorneys’ fees. A number of factors differentiate employees from independent contractors: An auto body shop must understand the legal distinctions between
36 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
employees and independent contractors to avoid misclassifying employees as independent contractors. The distinction is often confusing because a line is being drawn in what may be a gray area. For example, everyone can tell the difference between a truck and a passenger car, but trying to conclusively determine whether an SUV is more like a truck or a passenger car is much more difficult. Governmental agencies and courts apply a broad test that examines every aspect of the work relationship to determine whether a particular worker is an employee or an independent contractor. The test consists of a number of interrelated factors that generally fall into three categories: behavioral, financial, and formal. The behavioral factors look into whether or not the auto body shop has the right to control the manner in which the worker does his or her job.
The focus is on the day-to-day interaction between the auto body shop and the worker, the type and degree of instruction being given, the manner in which the worker is evaluated, and any training that is being provided. A worker is an employee when the business has the right to direct or control the worker, and the worker is an independent contractor when such control is absent. The more the evaluations are based on how work is performed rather than end result and the more training is provided to the worker, the more likely that the worker is an employee rather than an independent contractor. The financial factors focus on whether or not the business has the right to control the economic aspects of the worker’s job. The test focuses on the investment made by the worker in the equipment used to perform the job, the extent to which the worker’s
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expenses are reimbursed, the worker’s ability to make or lose money, the worker’s ability to work for others, advertise, and maintain a visible business location, and the method of payment. If a worker uses the employer’s equipment, gets his or her expenses reimbursed, is insulated by the auto body shop from risk of loss or from opportunity to profit, works only for one particular business, and gets paid by the hour rather than on a commission basis, then the worker is more likely to be an employee. The relationship factors look at how the worker and the auto body shop perceive their work relationship. The factors include written contracts, employee benefits, permanency of the relationship, and the extent to which services being provided by the worker are a key activity of the business. A written contract stating that the worker is an employee, payment of employment benefits (insurance, pension, vacation or sick days), expectation that the relationship will be indefinite in duration rather than based on a project or time period, and activities performed by the worker being a key component of a business, will make it
more likely that the worker is an employee. Auto body workers are presumed to be employees: What the multi-factored test is getting at is whether, from a functional, economic, and formal point of view, the worker is running his or her own business or merely functioning as a small cog in the workings of an auto body shop. Even though auto body workers have some independent contractor attributes, they are very likely to be classified as employees unless the owner makes an honest, continuing and determined effort to make the workers be their own bosses. This strategy includes, but is not limited to, giving the worker a choice between being an independent contractor or an employee, giving up control over the worker’s day-to-day operations, leaving the worker free to work for other businesses and to hire his or her own employees, paying the worker based on the jobs finished (which may result in a much higher income than would be earned as an employee), and scrupulously documenting and monitoring the relationship. Categorizing auto body workers as independent contractors can be
very beneficial but is also risky and requires regular consultations with attorneys as well as a tremendous amount of discipline and legal planning. Furthermore, an auto body shop should not attempt to hire independent contractors unless it is a win-win situation for both the business and the worker. The label of independent contractor should not be used as a pretext to get rid of employment regulations but to create a genuine opportunity for a more profitable relationship between the business and the worker. Unless an auto body shop is prepared to fully accept all of the drawbacks inherent in a decentralized working environment and is ready to scrupulously document and adhere to making workers truly independent, it should not attempt to classify any workers as independent contractors. Employees can be incentivized to perform like independent contractors: Fortunately, workers can be classified as employees but paid a mixture of hourly pay and a bonus that encourages them to perform more efficiently because they receive incentives similar to those of inde-
pendent contractors. Most auto body employees would be considered to be “non-exempt,” meaning that they cannot be paid a salary and must be paid on an hourly basis. However, written employment agreements with employees can guarantee payment of a lower hourly wage (at least minimum wage), appropriate overtime pay, and meal and rest breaks, while also paying a bonus based on jobs completed to the extent that the bonus owed exceeds the employees’ hourly pay. As a result, the employee would always be entitled to his or her hourly wages (including overtime) and the bonus would be calculated based on a percentage of money actually received from insurance companies for the jobs completed by the employee less the hourly wages due to the employee. For example, if an employee was promised a 30% bonus and produced $10,000 in income for the auto body shop based on jobs the employee completed in a particular month, and the employee was paid $2,000 in wages for the specific hours worked during that month, then the employee would See Independent Contractors, Page 39
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American Automakers Using More Aluminum in Vehicles A survey conducted by Ducker Worldwide has found North American automakers are using more aluminum in their automobiles. Vehicles made with more aluminum should the weight of vehicles and increase fuel economy. Aluminum in 2012 North American Light Vehicles, conducted for The Aluminum Association, estimates North American automakers will increase their use of aluminum from 327 pounds per vehicle in 2009 to 550 pounds per vehicle in 2025. The survey shows continued growth in overall use of aluminum reaching an all-time high of 343 pounds per vehicle in 2012—up five percent from 327 pounds per vehicle in 2009. The report predicts aluminum is expected to double its share of the average automotive materials mix to 16 percent by 2025, with future cars and light trucks reaching an expected average of 550 pounds per vehicle of automotive aluminum. Randall Scheps, chairman of the
Aluminum Association’s Aluminum Transportation Group and marketing director at Alcoa Inc., says, “We are fast-entering a transition stage to more holistic vehicle design approaches premised on greater use of lighter, stronger and more crash-absorbent aluminum alloys replacing less efficient iron and steel. Vehicles with their
size maintained but down weighted with aluminum are inherently more efficient than heavier ones.” According to survey findings, body, bumper and closure content grew by 58 percent between 2009 and 2012, with 30 percent of all hoods on 2012 vehicles being aluminum. By
2012, the survey expects 20 percent of all bumpers will be aluminum. “New, stringent federal fuel economy regulations, coupled with consumer angst about high and unstable gas prices, is leading automakers to move quickly with a total rethinking of vehicle design as they also push ahead with alternate power trains, new technologies and advanced materials. In terms of boosting fuel economy and cutting tailpipe emissions, aluminum offers automakers the fastest, safest, most environmentally-friendly and cost-effective way to get the job done. Low-density aluminum is a game-changer and automakers are moving quickly to take full advantage of all the consumer benefits it provides,” Scheps says. Other Highlights from the Report include: The average increase in aluminum content since 1975 has been seven pounds per year per light vehicle. Automakers will, on average, seek to lower the weight of cars and light
trucks by at least 10 percent by 2025. Market factors already in place are projected to push aluminum content to 400 pounds per vehicle in 2015/2016.
Aluminum is gaining market share at the expense of both traditional and high strength steels, which are declining as a percentage of vehicle makeup. Advanced High Strength Steels (AHSS) also are growing at the expense of inferior steels, but gauge reduction with AHSS provides limited weight savings potential compared to using lower density aluminum. Pound for pound, aluminum replaces more than twice as much weight as AHSS.
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Title: Design-Based Repairs / Instructor: Richard Perry, Chief Automotive Technologies / Code: FR10N
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Title: Reality Repair Shop–What Would You Do? (Panel) / Instructor: T.J. Reilly, Same Day Auto Service / Code: FR12C Title: Immobilizer Service Opportunities (Powered by CARQUEST Technical Institute) / Instructor: Mark Olinger, CARQUEST Technical Institute / Code: FR13C
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Title: Wanted: Leaders That Lead! / Instructor: Richard Flint, Richard Flint International / Code: SA01NC
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Title: Waterborne Products, Systems & Application (REF07) / Instructor: I-CAR Instructor / Code: IC09 Continued from Page 37
Independent Contractors
be owed a $1,000 bonus ($10,000 multiplied by 30% less $2,000). The employee would receive the $1,000 bonus on top of the $2,000 owed to him or her in wages for that particular month. If the employee was less productive, and produced only $5,000 in income for the auto body shop, then they would only receive wages and no bonus would be due. Thus, the employee would be guaranteed a minimum amount of pay based on the hours worked but his or her actual production would be the principal factor in how much an employee earned. This would cause the interests of the employees and owners to be more closely aligned without the risks associated with classifying workers as independent contractors. Consult an attorney to stay out of trouble: It is always a good idea to talk to an attorney to make sure that workers are not being misclassified as independent contractors and that those
Saturday / 8:30am-10am
Title: Strength Training–Meeting the Current & Future Demands of Your Business / Instructor: Larry Baker, LVB & Associates / Code: SA05N
Title: How to Build Bulletproof Estimates / Instructor: Peter Kennedy, Collex Collision Experts, Inc. / Code: SA06N
Title: Pre-Production Processes to Increase Sales and Improve CSI and Cycle Time / Instructor: Robert Ricj, Gates Business Solutions / Code: SA07N Title: Accessory Belt Drive System Diagnosis / Instructor: Bobby Bassett, Gates Corporation / Code: SA08C
Title: CEO From the Inside Out / Instructor: Ruth Weniger, Powerful Business Strategies, LLC / Code: SA09NC
Title: Simple Front Office Staffing Solutions / Instructor: Ron Keuhn, Collision Business Solutions, Inc. / Code: SA10NM
Saturday / 1pm-5pm
Title: Hail, Theft, Vandalism Damage Analysis (DAM09) / Instructor: I-CAR Instructor / Code: IC10
Title: Corrosion Protection (CSP01) / Instructor: I-CAR Instructor / Code: IC11
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workers who are employees have a compensation structure and working conditions that comply with state and federal employment laws. It is always best to seek help in the planning stages or before a problem arises but it is never too late to try to address employment and independent contractor issues. Martin Zurada regularly advises and litigates on behalf of California auto body repair businesses, including independent contractor and employment issues. Contact him at: Zurada Law Group 785 Market Street, 16th Floor San Francisco, CA 94103 (415) 637-8483 www.SFLawyer360.com m.zurada@sflawyer360.com
This article only provides general legal information but not legal advice. You should consult a lawyer who will provide you with legal advice by applying the specific laws in your state to your specific factual circumstances.
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 39
I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
Three-Dimensional Measuring Equipment–is it Really Necessary? I-CAR has been emphasizing the importance of three-dimensional measuring since its founding in 1979, but is it really required to repair a vehicle? After all, three-dimensional measuring systems are considerably more expensive compared to the much more affordable tape measure or tram gauge (see Figure 1).
Figure 1 - Tape measures and tram gauges (top) are used for point-to-point measuring while computerized measuring systems (bottom) provide three-dimensional measurements
A Real Life Experience Recently, our friend Sam (not his real name, but his story is), found himself having to get estimates for his collision damaged car. The first collision repair facility was chosen, and the vehicle was brought in for an estimate. During the estimating process, Sam asked what type of three-dimensional measuring system the facility used. The estimator promptly replied “none.” Interesting. The car didn’t look structurally damaged, I’m sure the estimator was wondering why Sam even cared. So, it was on to the next repair facility. While talking to the estimator, Sam inquired again, “What type of threedimensional measuring do you use?” In a too familiar response, the estimator replied, “We don’t really have one.” The next stop was the last repair facility scheduled to write an estimate. Sam watches the estimate being written and asks the question, but this time, the answer is different, “We have a computerized measuring system.” The quest was over. Sam knows who’s going to be repairing his vehicle. The question is, why is it so important for Sam to have a shop that can perform three-dimensional measurements? The answer is simple. Three-dimensional measuring provides an accurate assessment of damage. This al-
lows collision repair technicians to document vehicle measurements before and after the straightening process, ensuring Sam that his vehicle was fixed properly. In Sam’s case, it turned out that his vehicle’s front rails were up 20 mm from specification. This wasn’t found until the vehicle was placed on a threedimensional measuring system for repair. If a repair facility was using a tram gauge or tape measure during the repair, would this have been caught? The vehicle looked within specification, and there were no obvious panel gap misalignments or other visual indicators that provided the estimator with clues to the structural damage.
Making the Investment Even in the best economic times, a three-dimensional measuring system is a substantial investment for one piece of equipment. Is it worth it? Joe Blanton from Car-O-Liner was essentially asked this question. Is cost an issue to shop owners when deciding to make a purchase? Joe states that the value of time savings and increased productivity eventually offset the initial investment. Another reason to invest in a three-dimensional measuring system is the assurance that the vehicle has been restored to the proper specifications. Then there’s keeping up with changing vehicle technology. With advancements in vehicle design and increased use of high-strength steel,
have a tighter tolerance, requiring greater emphasis on restoring the original vehicle specifications for proper vehicle performance. Therefore, threedimensional measuring can be a huge benefit in identifying any misalignment. Some vehicle makers make specific recommendations regarding the use of three-dimensional measuring equipment for vehicle repairs. General Motors, for example, states in their part-specific collision repair procedures to “use three-dimensional measuring equipment.” Chrysler states that when restoring a collision damaged vehicle, that “all structural distortion has been identified and corrected using appropriate structural straightening equipment (“frame rack”) and a three-dimensional measuring system.” Other advantages of three-dimensional measuring include accuracy, reduced time to make the measurements, and the ability to re-
peat and verify specific measurements so they can be documented both before and after repairs are complete.
Figure 3 - Point-to-point measurements are often used during damage analysis to identify potential structural damage
Three-dimensional measuring is also ideal for damage analysis. Providing printed out measurements with the damage estimate to the technician helps with ordering parts and calculating repair times, reducing supplements. According to Richard Perry of Chief Automotive Technologies, when See Three-Dimensional, Page 45
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Figure 2 - A fixture system, such as this Celette bench, is used to perform three-dimensional measuring
collision energy is following a different load path. The load path is essentially the route collision energy travels through the vehicle. This new path means that collision energy is traveling into areas not commonly seen before, deeper into the vehicle. Additionally, these vehicles often
40 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
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On Creative Marketing The Ethnic Factor in Marketing with Thomas Franklin
It’s no secret that large numbers of recent manager. For several years this comimmigrants now live in many areas in bination served him well. His Chinese personnel changed a few times, but he the United States. Most gather themselves into close-knit communities always kept some at his shop and enwhere their native language predomijoyed a significant number of jobs from the Chinese community. nates. Fortunately, for quality collision With an economic downturn, shop owners, few of these immigrant when one Chinese employee left, he communities have a quality body shop in their own ethnic area. If there is a didn’t replace her immediately. Gradwith Dick Strom shop, chances are it’s rather primitive ually, as the economy continued to decline, he lost all of his Chinese and not up to insurance claim quality. This opens the door for an astute shop employees. He intended to replace one owner nearby who will put someone on or two but it didn’t happen and little the payroll who speaks their language by little his Chinese community busiand can help market the shop to that ness fell away. Employees are a shop’s community. biggest expense. It’s understandable I’m familiar with a shop that that adding any new employee is opened in a community that had large costly, but I’m certain that a careful numbers of Chinese families in the analysis of the situation would reveal that the benefits of reaching the Chisurrounding area. The shop owner hired an attractive Chinese lady who nese community would have more with and LeeCantonese Amaradiothan Jr.paid for a Chinese speaking emspoke fluent Mandarin for the front desk and he also hired a ployee for this shop owner. Is there any alternative to hiring an Chinese-speaking estimator and parts
Opinions Count
Action Counts
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
estimator or front desk person who speaks the language of a local ethic group? Perhaps one economical solution would be to hire a technician who speaks the local language. I know of more than one shop where most of the technicians are Hispanic but where one is also used to handle phone communications with Hispanic speaking callers. Would this work for other ethnic minorities? Had the shop owner who had a Chinese parts manager used that person to also handle Chinese-speaking callers, he might have continued to pick up business from that community. Assuming a shop owner decides to take advantage of potential business from an ethnic community near his or her shop, and is willing to employ someone who can speak the language, what is the next step? Fortunately, marketing to an ethnic group is often easier than marketing to the general public. If there is an ethnic newspaper or other
local publication, many people in that community will actually read it (as opposed to an increasing non-readership of general newspapers today). Ethnic readers are more likely to look at ads in the publication and respond to them. They will particularly respond to an ad or article that has a quote by someone in their community who says the body shop did an excellent job on their car and they were very satisfied. These days many ethnic communities also have radio stations and even a TV station broadcasting in their own language. Once again, this is a captive audience that is more inclined to respond to ads and messages than the general public. Ethnic minorities also tend to be very cost conscious and likely to respond to discount or coupon offers. Ad spots and program opportunities may also be less expensive. Once a shop owner has decided to pursue See The Ethnic Factor, Page 45
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Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com
What Happens When OEMs Really Support Body Shops I have written about two dealerships when OE parts have possible discount ers can now supply quality parts at This site is currently being viewed opportunities from theand dealership.Announcements competitive prices to their customers. more than 6000 times a month! Referrecently, the Lasher Auto Group, and Automaker Actions with Larry Williams
Acura of Westchester, and their com- ■ See Parts Price Increases (PPIs) beJeremy Hayhurst mon ground towith success. They both tween estimate and MSRP on Collihave a positive attitude. They take sionLink orders. pride in their work, and enjoy taking ■ Automatically detects and creates good care of their customers. They de- fax orders for dealers not accepting liver their service along with the parts. online orders. Their customers know that their busiIf you need more than features to with Jeremy Hayhurst ness is valued, and become loyal partbe convinced that CollisionLink can ners of the dealership. Everyone is help your bottom line, consider this making money and staying happy! online comment from Mike “Smitty” This commitment to customer Smith, Shop Supervisor at Fox and service would be impossible, how- Fox Body Shop and Service in Ft. ever, without support from the manu- Wayne Indiana. Smitty said: “Using facturer. In this case the manufacturer CollisionLink we’re definitely fixing is Honda/Acura, and the support is cars faster for several reasons. One, awesome. Once there was a time our parts returns have gone down, bewhen manufacturer’s parts reps con- cause CollisionLink parts orders are sidered the dealers as their customers; more accurate, so we have the right looking no further for more business. parts when we need them. Two, using But times have changed. Now, CollisionLink our dealers price-match Honda/Acura has a division, with OE parts against aftermarket, and fourteen field representatives, actively everyone knows that OE parts fit bethelping their dealers service their col- ter and install faster. Three, the parts lision customers. ordering process is much faster and American Honda’s Collision Se- streamlined, freeing me up to stop polect Program is a wholesale support tential problems. I now spend more initiative, available to both Honda and time in the shop with the technicians with Lee Amaradio Jr. them stay on track to repair Acura dealers, and supported by OE- helping Connection’s CollisionLink product, cars that have short delivery dates. So, which is OEConnection’s online parts in all, I’m spending less time on parts procurement and management tool. management, our shop is pushing car CollisionLink is supported by GM, repairs through faster, were building Ford, Chrysler, Nissan, Toyota, In- customer loyalty, and that’s all infiniti, Lexus, Honda and Acura parts creasing revenue for the shop.” That’s orders. Some of the major benefits of CollisionLink. CollisionLink are: Through the Collision Select pro■ Online OE parts ordering for every gram, Honda says participating dealmake and model, for any dealership ers are able to help independent body selling OE crash parts. shops improve vehicle repair cycle ■ Parts are automatically VIN validated time, reduce shop returns and adminor highlighted for dealers if wrong istrative times, improve parts procure■ Up to the minute order tracking, conment work flow, and give shops an firmations and status on one screen. opportunity to use more Honda and ■ Process parts orders using all the Acura Genuine parts. major business management and estiThis division is still young (it mating systems. launched two years ago), still grow■ No more wondering if a fax was re- ing, but has already made an impact ceived. And less on hold phone wait on the collision repair industry. It time. started out by asking what was needed ■ Faster processing by dealerships and how they could help. Usually cormeans faster turnaround and cycle time. porate information retrieval results in ■ Send and receive photos and a mountain of reports, and little else. with Dan Espersen schematics. But, this time the end result was ac■ Gives dealers the chance to offer OE tion! Whole-hearted participation in parts at competitive pricing – they see the CollisionLink program helps non OE parts on orders. Plus, you see every one of their dealers. These deal-
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42 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
“Quality parts” is the key phrase which results in a quality repair. A quality repair results when the parts and workmanship combine with pride of craftsmanship to create a finished product which is indistinguishable from the original. In this context, I would use the word remanufactured; rather than repaired. As close as possible, the damage is erased; as if it never happened. The vehicle owner receives exactly what they expect, and more. This theme, customer service, guarantees return business and referrals. Speaking of referrals, both Honda.com and Acura.com have a body shop referral system on the internet. American Honda Motor Co.’s Body Shop Recognition program has reached 500 participants in 40 states, the company announced this spring.
rals from the manufacturer! How about that for actively supporting the collision industry The collaborative program involves OEConnection, DuPont Performance Coatings, PPG, BASF, Sherwin-Williams and AkzoNobel, which work together to create a supporting initiative for American Honda’s wholesale program, Collision Select. Both dealer-owned and independent shops are eligible for the recognition program, but a Honda or Acura dealer participating in Collision Select has to sponsor them. Shops also have to participate in their paint company’s performance enhancement program and adopt CollisionLink. Participating shops receive a plaque and have their contact inforSee What Happens, Page 45
Knowledge is Power—Market Forces Control Total Loss Vehicle Valuations but Shops Can Profit from the Right Information by Greg Horn, Vice President of Industry Relations, Mitchell International
In my recent Industry Trends feature article, Timing is Everything: Total Loss Values and Gas Prices, I explored the impact of rising fuel prices on resale values. This phenomenon initially interested me because I had traded in my
record levels for the second time in recent history. What we witnessed in this recent rise was, in large part, due to a group of futures investors. These speculators bet on the rise of fuel prices, and their investment actions in turn caused prices to remain inflated even when the price of the crude oil had fallen and produc-
strategic oil supply onto the market to ease the spiraling price at the pumps, at least temporarily. There are a few important questions we need to answer to fully understand this chain of events and how the industry can learn from it: 1. What is the relationship between fuel prices and resale values? 2. What can collision repairers do about
the vehicle and hope for a return to more moderate gas pricing. A similar picture of a lag relationship between higher fuel prices and Toyota Corolla values (our fuel efficient representative) appears as well. Some may question why we used two vehicles from the same manufacturer, but because they have been top sellers in
Chevrolet Suburban for a more fuel efficient vehicle just before fuel prices reached above $2.40 per gallon. Not too soon after, fuel prices rose to near
tion was not an issue. In early May, the situation with gasoline futures became so intense the Obama Administration released some
the total loss decision process that is primarily in insurance companies’ hands?
their class for a number of years and represent stable body styles (meaning that the launch of newly restyled cars that would lower value during the test period did not take place), the Corolla is a good indicator of market forces.
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First things first—the findings We selected representative vehicles from our Total Loss Valuation Data Warehouse that would epitomize the hybrid, fuel efficient and gas guzzler categories—the Toyota Prius and Corolla and the Ford Expedition. Looking at the relationship between fuel price spikes and values showed an obvious trend that has been verified by other evaluation and market sources— fuel efficient cars rose in value recently. However, a second factor should be noted. There is a market reaction time, a delay between the rise in fuel prices and the rise in value of the most fuel efficient vehicle, the hybrid. You’ll note in the Prius vs. Gas Price chart that our total loss average value for the Prius still shows an upward trajectory despite a lowering of fuel prices. That illustrates a market lag of approximately three weeks. If you were to visualize moving the total loss values over one column to the left, you would see a tighter correlation between the two chart figures. On the opposite end, there is a similar lag pattern with gas guzzlers, albeit with more volatility in the average total loss value price. Gas guzzler values are traditionally more volatile during fuel price fluctuations, depicting a “wait and see” mode for many owners that, unless faced with a total loss or urgent need to sell the vehicle, may elect to hold on to
What can we conclude from this data? A few important facts come to mind: 1. Fuel efficient vehicles tend to rise more quickly and reliably in value during periods of high prices than gas guzzlers fall in value. 2. During fuel price volatility, the reaction time in total loss values is less than a month, which points to the importance of the accuracy of a true market survey method for evaluating a total loss. In the traditional book value approach, the lag time for gathering the data from the gathering sources, calculating and then publishing the data can take longer than the short value lag time we see present in the charts shown above. What does this mean for collision repairers? While many shop owners and managers reading this article may think there is nothing they can do about the total loss decision process, there are two areas you can concentrate on. First, in dealing with insurers, you know the damage to the vehicle better than they do and what it will take to properly fix the car. A few questions you definitely want to start asking the insurance company are: See Knowledge is Power, Page 46
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 43
Shop Showcase
Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251
Carrillo and Sons Collision Center—Family Buyout Continues Legacy with Erica Schroeder
Carrillo and Sons Collision Center, a nesses now that they are adults. 15,000 square-foot collision repair Maria officially took over the shop in San Diego, CA, is all about business in July of 2010 and her three customer satisfaction and family with John Yoswicksons have been there every step of the legacy. way, ensuring that Carrillo and Sons continues to be a family-run business centered on quality and customer service. “The first few with Ed Attanasio months were very good,” said Maria, “Then I started noticing a drop in sales.” Maria lost two major Owner Maria Carrillo started DRPs in the business split and was left the business in 1981 with her then- dealing with an unexpected 30–40 perwith Ed Attanasiocent drop in incoming vehicles. husband Tony at a small location off Adams Avenue in San Diego. Maria Maria said since taking full ownworked mostly in the office part of the ership of the business she has really business and the couple raised three tried to get out and learn more about sons in that shop; Tony Jr., David and business in general and the collision Daniel, who quickly became interrepair industry in particular. ested in the business. Maria is a Women’s Industry “When I was working in the of- Network (WIN) member and also atfice the kids were with me a lot of the tends the California Autobody Assotime,” said Maria. ciation (CAA) meetings in San Diego. In 2000 the Carrillos opened a She also meets with a group of local second, larger location on Old Cliffs business women in her area. Road in San Diego where Maria “I seek advice from other busistarted spending most of her time. ness women,” said Maria. The Old Cliffs location is able to Carrillo and Sons business is censee about 115 to 150 cars per month tered around customer satisfaction. with 13 employees. Maria says what sets them apart is their patience, willingness to go to all lengths to make their customers happy, and working on a job until it is right. They track CSI by surveying customers to ensure complete satisfaction with their work. “Our customer service really sets us apart,” said Maria. Carrillo and Sons’s focus has always and will continue to be taking care of their customers. “We take care of our customers, Customers that need a shuttle home or to work after dropping their car off at the shop and it shows, referrals and repeat cuscan choose to be driven in a ‘reliable’ Toyota tomers are our biggest source of busiCamry or this vintage Lincoln Continental. ness,” said Maria. Then, as Maria says, “Life hapCarrillo and Sons uses Blowtherm pened.” In 2008 Maria and Tony de- and Garmat spray booths as well as a cided to get a divorce. Chief E-Z Liner computerized frame “I never wanted to divide the measuring system and PPG paints. business, but that was the only option,” They also offer a lifetime limited said Maria. Maria decided to buy her warranty on work done at their shop, now ex-husband out for the Old Cliffs including; a lifetime warranty on paint Rd location, chiefly due to her chiland metal work, a 6 month warranty dren’s interest in continuing the busion mechanical work, and they are also
Industry Insight
willing to help customers with any parts issues by contacting suppliers.
nitely a good way of keeping customers coming back,” said Maria.
Shop Showcase
Social Media for Shops
44 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
Daniel, Tony Jr., Maria and David Carrillo
They also offer lifetime detailing four times per year for any customer who has more than $5,000 in repairs done on a standard passenger vehicle for as long as they own the vehicle. “Our detailing services are defi-
“My goal is to eventually have my boys running the shop,” said Maria. Her chief reason for buying her ex-husband out, for one of the locations, was so that her sons could See Carrillo and Sons, Page 45
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Continued from Page 42
What Happens
mation placed on a corporate American Honda website in a searchable database accessible by Honda and Acura owners. I just read an article in the Los Angeles Times saying that the repair industry has, in some cases, benefited from the recession. No, that doesn’t mean generous insurance settlements for older cars, but rather that people are still fixing their old vehicles rather than replacing them. The average car in the U.S. is approaching ten years old! This has caused some shops to
see an increase in their customer pay business. Once again, customer service is key. Shops that keep their customers happy are always the ones that survive and grow, no matter what the economy dictates. Once again, I congratulate the Lasher Auto Group, Acura of Westchester, and the support group at Honda/Acura Motor Company, for their success in these troubled times. I invite any others who also have a story of success to contact me, and join the Distinctive Dealerships Group here at Autobody News. For more information go to the http://oeconnection.com site and check it out. Also honda.com and acura.com.
ASRW Continues Rotation; 2012 Location Announced In a continuing effort to respond to consistent participant feedback, Automotive Service & Repair Week (ASRW) is announce on September 7 its 2012 event—featuring the milestone 30th annual NACE event—will take place Oct. 11-13 at the New Orleans Morial Convention Center in New Orleans, La. The 2012 event will again follow a Thursday through Saturday day pat-
tern, with education beginning Wednesday, Oct. 10. Based on attendance trends leading up to the 2011 event, the move to New Orleans is expected to draw a significant population of new attendees, as a new region of the United States has access to this international event. NACE was last held in New Orleans in 1995; CARS in the late 1980s.
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asked what message he would like to communicate to the collision repair industry about three-dimensional measuring, he stated, “Moving forward, measuring the vehicle with structural damage during the estimate should become as common as getting the VIN. This will reduce the need for supplements and reduce the cycle time for the vehicle’s repair.” Making three-dimensional measurements requires understanding that all measuring points are based on length, width, and height. If using a computerized measuring system, these planes are electronically formulated using the measurements of the center section, and all the other measurements that are taken are relative to those planes. Mechanical systems, or fixture systems, perform a similar function, but use the tip of the measuring pin and a vehicle reference hole to determine alignment (see Figure 2). Point-to-point measurements are very good during damage analysis to identify potential structural damage (see Figure 3). For more information please visit www.i-car.com.
business from an ethnic community, he or she may find some amazing marketing bargains. But once again, it will usually be essential to hire that key employee who speaks the language and is familiar with the customs, likes and dislikes of people in this community. One more concern. People in ethnic minority groups are often cautious about whether an offer is genuine. A shop owner has to be prepared to run an ad or make a promotional effort for a longer period of time. There is also the “rule of three.” If you see an ad or announcement or article in three different places, you are also more likely to respond. Immigrants often view the purchase of a new vehicle as a longterm investment. The ones that buy new have great pride of ownership and will probably tend to get small dents, scrapes and scratches fixed. And that is very good news for a collision shop owner who has spent the time and money needed to get a solid foot in the door of a local ethnic community. If it’s done right, it’s certain to pay off.
Three-Dimensional
Continued from Page 44
Carrillo and Sons
continue to work in the shop and have the business as their own one day. Sons Tony and Daniel are able to do most everything around the shop while David mainly specializes in estimating. Maria has also found community involvement to be a big help in local marketing efforts. The business donates to the Children’s Miracle Network, the Boys and Girls’ Club of San Diego, the Salvation Army, and sponsors local little leagues.
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The detailing area adjacent to the shop
They also have partnered with John’s Automotive Care, which is down the street from their location, to do body work for free for some of the local charitable car giveaways. Most recently the business was able to raise over $1300 for the Rady Children’s Hospital in San Diego
The Ethnic Factor
through Carrillo’s Facebook page. All their hard work didn’t go unnoticed by Triple A, which is one of their DRPs; Triple A awarded Carrillo and Sons their Outstanding Performance for quality repairs, cycle time and customer service in 2010. Only 9 shops are honored with this award annually.
The shop floor reminds workers of the shop’s “Commitment to Excellence”
Customer satisfaction remains number one at Carrillo and Sons, evident from their work, to their dedication, right down to the homemade cookies in their waiting area. True to the team spirit: “Everybody takes turns baking cookies for the reception area,” said Maria. Carrillo and Sons Collision Center 4680 Old Cliffs Rd San Diego, CA 92120 (619) 287-7200 www.carrilloandsonsonline.com
www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 45
Continued from Page 43
Knowledge is Power
1. How are you basing your total loss decision? 2. Are you using the book value or true market value of the vehicle? 3. How are you calculating the salvage return? 4. Are you using the “net value” of what you will receive? They will spend in the neighborhood of $175 to process the vehicle to sell at a salvage auction and may owe you for storage if the vehicle totals. These dollars add up and may tip the vehicle to the repair column. Secondly, you may be dealing with personnel in the claims department that handle multiple states and may not know your state’s total loss regulations. I strongly encourage shop personnel to become experts on the
total loss and titling regulations in your state. Once you read the regulations, you will find that our cars have become more complex but our total loss regulations haven’t changed. The folks at the Nevada Collision Industry Association realized this and successfully changed the total loss regulation to simply “back out” the cost of the electronic components when calculating the total loss equation. The revision aims to put more cars back in the owner’s garage. An interesting side benefit (and a major reason I believe the bill passed) is that repairing cars is good for a state’s economy. Early calculations indicate that the annual impact of sales taxes in Nevada paid on these higher dollar amount estimates that end up being repaired will be in excess of $800,000. Not to mention, the workforce implication of selling more parts and repairing more cars is extremely positive.
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OEMs Still Expanding Presence at ASRW in New Location Toyota Wholesale Parts and Nissan Collision Repair Network will each have an expanded presence at Automotive Service & Repair Week (ASRW), including show floor presence and innovative, interactive support programs. In addition to exhibiting, Toyota Wholesale Parts (booth #N1343) will sponsor the networking reception concluding the ASRW Industry Forum Wednesday, Oct. 5. New for this year, they will also
sponsor a NASCAR simulator located near Toyota’s booth. Attendees can “drive” the NASCAR simulator and compete in a fastest lap competition. Said a spokesman, “For many years, Toyota has been proud to support CARS and NACE. We are also excited about this year’s new location in Orlando. It gives Toyota the expanded opportunity to showcase the support that we provide to our business partners.”
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800-699-8251 kmangum@autobodynews.com Trust your order to the collision parts specialists at these fine Dealers 46 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com
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