October 2018 Southwest Edition by Autobody News

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SOUTHWEST EDITIO N

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Vol. 36 / Issue 10 / October 2018

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

Retired Police Chief Returns to the Auto Body Business in CO

CO Body Shop Accused of Billing Insurance for Repairs That Weren’t Done

by Staff, Brush News-Tribune

by Eric Ross, KOAA News 5

Travis Anderson has used retirement as an opportunity to return to the family business. The former Brush, CO, police chief said he so enjoyed the people of Brush that upon retirement, he wanted to make Brush his home. He knew that if he had a job in retirement, he would still want it to be service-oriented. “My father started a body shop business in 1946 with my grandfather when he got out of World War II,” Anderson said. “I worked in that

Dennis Wooten took his car to Lustre Plus Paint and Body in Pueblo, CO, for repairs but claims the body shop didn’t do the work it promised and billed his insurance company for parts that were never replaced. The body shop said it offered to address the issues with Wooten when he came back to pick up his car. However, a manager claims she had to cut off communication when Wooten allegedly became angry and threatened to sue over unfinished work.

Travis Anderson, who retired in July as Brush, CO’s police chief, has taken an opportunity to rekindle a passion he has for auto work and serving the community. Credit: Brian Porter, Brush News-Tribune See Return to Autobody, Page 22

ASA’s Attorney Discusses Overtime Laws by Chasidy Rae Sisk

On Wednesday, August 22, the Automotive Service Association (ASA) hosted a webinar on “Making the Overtime Law Work for You” as part of its Webinar Wednesdays initiative. The presentation featured Brian Farrington, ASA’s wage and hour attorney and expert, who addressed federal overtime laws and the costly impact they have on non-compliant shops. ASA Vice President Tony Molla opened the webinar by welcoming attendees and introducing

Farrington. Farrington began by discussing the Fair Labor Standards Act of 1938 (FLSA), which is the basic wage and hour law in the United States and establishes standards in four areas: minimum wage, overtime, child labor and recordkeeping. As of July 24, 2009, the federal minimum wage is $7.25 per hour. Farrington emphasized that when state law varies from federal law, an employer must follow whichever standard most benefits the employee. For example, if the state’s minimum wage is higher than the federal minimum wage, but there is no state overSee Overtime Laws, Page 32

Manager Brandy Aragon said the company does quality repairs and takes good care of its customers, but a lengthy follow-up report that Wooten’s insurance adjuster typed up paints the company in a negative spotlight. “Pretty much everything they said they fixed is not fixed,” Wooten said. Wooten said he dropped his car off for repairs at the shop after he hit a deer. He says they were supposed to replace the front bumper, grille, See Wrongful Billing, Page 10

INTRODUCING A NEW COLUMN! From the Desk of Mike Anderson with Mike Anderson

See page 40 in this issue.

Like a Good Neighbor... State Farm Settles by Bruce L. Roistacher, Esq. NY, FL and DC Bar

A brief history of this very long case is in order. Back in 1999 in Avery v. State Farm, a class action lawsuit was filed claiming State Farm was using non-OEM parts. The class included more than 4 million State Farm policyholders. The jury found that the non-OEM parts were inferior to OEM and that State Farm breached its contract in failing to return the damaged vehicles to “pre-loss condition.” It also found that State Farm concealed known problems with the non-OEM parts. The jury returned a $1.2 billion judgment against State Farm. In 2001, State Farm appealed and an appellate court affirmed the decision but lowered that award to $1.05 billion. State Farm then filed an appeal to the Illinois Supreme Court.

This is where it gets really interesting. In 2004, Judge Lloyd Karmeier was elected to the Illinois Supreme Court. The Avery judgment was eventually overturned. The Illinois Supreme Court ruled that there was no breach of contract by State Farm, no damages were proven and that the “class” was not legally shown based on a legal technicality. The plaintiffs appealed to the U.S. Supreme Court and they denied hearing it. THE CASE SEEMED DEAD at this point. The plaintiffs continued to investigate and in 2012 filed a new lawsuit in federal court (Hale v. State Farm) claiming, among other issues, that they had newly discovered evidence that State Farm recruited Judge Karmeier as a judicial candidate and heavily financed his campaign that led to his election to the See State Farm Settles, Page 38

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CONTENTS Arlington, TX, To Introduce Drive.ai Project in Entertainment District . . . . . . . . . . . . . . . . 8 B & J Collision Owner Bobby Wayne Johnson Passes Away. . . . . . . . . . . . . . . . . . . . . . . . 18 Caliber Collision Academy Gives CO Soldiers Opportunity To Start Civilian Careers . . . . . . 11 CO Body Shop Accused of Billing Insurance for Repairs That Weren’t Done. . . . . . . . . . . . 1 CO CARSTAR Business Group Supports Cystic Fibrosis Research . . . . . . . . . . . . . . . 16 Collision Safety Consultants Opens 18th Location in CO . . . . . . . . . . . . . . . . . . 22 Donate Your Vehicle to Auto Collision Repair Students in Lewisville, TX. . . . . . . . . . 6 OK Convenes Autonomous Vehicle Task Force To Inform Future Legislation . . . . . . . . . . . . . 6 Retired Police Chief Returns to the Auto Body Business in CO . . . . . . . . . . . . . . . . . . . . . . . 1 Thieves Crash Stolen Car After Heist From Body Shop . . . . . . . . . . . . . . . . . . . . . 22 Thousands of Hail-Damaged Vehicles in CO To Be Auctioned Off . . . . . . . . . . . . . . 16

Chess - Plastic Bumper Repair Part 1: Adhesives . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Ledoux - Honda Collision Parts Program Sets New Standard . . . . . . . . . . . . . . . . . . . 52 Ledoux - Vision, Foresight Help Launch This PBE Jobber . . . . . . . . . . . . . . . . . . . . . 64 Phillips - Leadership Development, Process-Centered Environment Enable TX Shop’s Business to Grow . . . . . . . . . . . . 60 Phillips - Sherwin-Williams Study Reveals Primary Reason Body Shops Prefer Waterborne Coatings. . . . . . . . . . . . . . . . . . 54 Phillips - The Power of Peer Groups and Why to Join One . . . . . . . . . . . . . . . . . . . . . 30 Sisk - I-CAR Discusses Training, Recognition, Service Enhancements During SCRS Webinar . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Yoswick - ‘Who Pays for What?’ Surveys Illustrate Shops’, Insurers’ Practices for Scanning Vehicles . . . . . . . . . . . . . . . . . 28 Yoswick - 5 Years Ago at NACE, Keynote Speaker Said Industry Was Headed Toward Catastrophe . . . . . . . . . . . . . . . . . . 58

TN DOT Commissioner Talks Autonomous Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

NATIONAL ABAT, Greco Publishing Partner To Produce

COLUMNISTS Anderson - Are You Upgrading Your Shop’s

Texas Automotive Magazine . . . . . . . . . . . . 19 ACA’s Gabrielle Hopkins VP, Federal Affairs . . . . 3

Customer Service Experience? Or Losing

ASA’s Attorney Discusses Overtime Laws . . . . . 1

Out to Shops That Are? . . . . . . . . . . . . . . . . 40

AutoX Launches Autonomous Grocery

Attanasio - How To Squeeze Maximum Value Out of SEMA 2018 . . . . . . . . . . . . . . . 38 Attanasio - Monte Marrott Hits Sweet Chords With His Custom Guitars . . . . . . . . . 50 Attanasio - Who Should Be Your #1 Audience for Your Advertising and Marketing? . . . . . . 46

The Auto Care Association recently announced the addition of Gabrielle Hopkins as vice president, federal affairs. Hopkins joins the Auto Care Association’s government affairs department, where she will assist in the leadership of the department. The new role will task Hopkins with identifying legislative initiatives for the association to pursue and recommending advocacy efforts on both Capitol Hill and with federal agencies. Hopkins will represent the association’s policies and positions at appropriate leg-

Delivery in San Jose, CA . . . . . . . . . . . . . . . . 4 Like a Good Neighbor... State Farm Settles . . . . 1 When All Hail Breaks Loose, the Hustlers Get Busy . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Young Auto Care Network Group Meets Up in Denver . . . . . . . . . . . . . . . . . . . . . . . . . . 19

INDEX OF ADVERTISERS

REGIONAL

ACA’s Gabrielle Hopkins VP, Federal Affairs

islative and policy hearings and meetings and will monitor and inform staff and board members of legislative, regulatory and other issues of importance to the auto care industry by developing appropriate context and communication channels. She is a graduate of Clemson University and received both Juris Doctor and Master of Business Administration degrees from American University.

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

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

AMH CANADA LTD . . . . . . . . . . . . . . . . . . 31 Audi South Austin . . . . . . . . . . . . . . . . . . 48 Audi Wholesale Parts Dealers . . . . . . . . . 63 AUTEL Automotive Intelligence . . . . . . . . 29 AutobodyLaw.com. . . . . . . . . . . . . . . . . . 44 AutoNation Chevrolet. . . . . . . . . . . . . . . . 56 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . . . . . . 6 AutoNation Chrysler-Jeep-Dodge-Ram of North Phoenix . . . . . . . . . . . . . . . . . 10 AutoNation Collision Parts . . . . . . . . . . . . . 9 Axalta Coating Systems . . . . . . . . . . . . 5, 11 AZ Automotive Finishes . . . . . . . . . . . . . . . 8 BASF Automotive Refinish Coatings . . . . . 15 Berge Ford . . . . . . . . . . . . . . . . . . . . . . . 50 Big Mike Naughton Ford . . . . . . . . . . . . . 47 BMW of North America . . . . . . . . . . . . . . 49 BMW Wholesale Parts Dealers . . . . . . . . . 67 Bob Howard PDC. . . . . . . . . . . . . . . . . . . 57 Certified Automotive Parts Association . . . 19 Chapman Chevrolet. . . . . . . . . . . . . . . . . 54 Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 34 Chicago Pneumatic Compressors . . . . . . 20 Christopher’s Dodge World . . . . . . . . . . . 47 Christopher’s Mitsubishi . . . . . . . . . . . . . 47 Classic BMW . . . . . . . . . . . . . . . . . . . . . . 43 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 70 Courtesy Chevrolet-Isuzu. . . . . . . . . . . . . 51 Covert-Chrysler-Dodge-Jeep-Ram. . . . . . 18 Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . 72 Dent Magic Tools. . . . . . . . . . . . . . . . . . . 12 Diamond Standard Parts . . . . . . . . . . . . . 53 Don Carlton Auto Group . . . . . . . . . . . . . . 56 Dynabrade, Inc. . . . . . . . . . . . . . . . . . . . . 21 Eckler’s Automotive . . . . . . . . . . . . . . . . . 17 ECS Automotive Concepts . . . . . . . . . . . . 30 Emich Chevrolet . . . . . . . . . . . . . . . . . . . 47 Emich Volkswagen . . . . . . . . . . . . . . . . . 47 EMS Automotive . . . . . . . . . . . . . . . . . . . 22 Equalizer Industries, Inc. . . . . . . . . . . . . . 42 Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2 Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 47

Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 47 Flatirons Subaru . . . . . . . . . . . . . . . . . 7, 47 Ford Wholesale Parts Dealers . . . . . . . . . 65 GM Wholesale Parts Dealers . . . . . . . . . . 69 Greeley Subaru . . . . . . . . . . . . . . . . . . . . 62 Honda-Acura Wholesale Parts Dealers. 32-33 Hyundai Wholesale Parts Dealers . . . . . . . 66 Kia Motors Wholesale Parts Dealers. . . . . 61 Killer Tools & Equipment Corp.. . . . . . . . . 16 Larry H. Miller Chrysler-Jeep-DodgeRam/Sandy . . . . . . . . . . . . . . . . . . . . . 23 Launch Tech USA. . . . . . . . . . . . . . . . . . . 71 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Mercedes-Benz . . . . . . . . . . . . . . . . . 36-37 Mercedes-Benz of Littleton . . . . . . . . . . . 47 Mercedes-Benz Wholesale Parts Dealers . 68 Mitsubishi Wholesale Parts Dealers . . . . . 66 MOPAR Wholesale Parts Dealers . . . . . . . 39 Motor Guard Corp.. . . . . . . . . . . . . . . . . . 12 North Freeway Hyundai . . . . . . . . . . . . . . 46 Part of the Club . . . . . . . . . . . . . . . . . . . . 47 Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 47 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . 28 Rapid Tac . . . . . . . . . . . . . . . . . . . . . . . . 45 Ray Huffines Chevrolet . . . . . . . . . . . . . . 59 RBL Products . . . . . . . . . . . . . . . . . . . . . 35 Reliable Automotive Equipment . . . . . . . . 38 Rickenbaugh Volvo . . . . . . . . . . . . . . . . . 47 Robaina Industries, Inc . . . . . . . . . . . . . . 55 SATA Dan-Am Company . . . . . . . . . . . . . 25 Schmelz Countryside. . . . . . . . . . . . . . . . 47 Sherwin-Williams Automotive Finishes . . 13 Shop-Pro Equipment, Inc . . . . . . . . . . . . . 41 South Pointe Chrysler-Jeep-Dodge . . . . . . 26 Subaru of Little Rock . . . . . . . . . . . . . . . . 52 Subaru Wholesale Parts Dealers . . . . . . . 58 Symach. . . . . . . . . . . . . . . . . . . . . . . . . . 20 Toyota of Laredo . . . . . . . . . . . . . . . . . . . 14 Toyota Wholesale Parts Dealers . . . . . . . . 64 Volkswagen Wholesale Parts Dealers. . . . 68 Wedge Clamp Systems . . . . . . . . . . . . . . 24 Young Chevrolet . . . . . . . . . . . . . . . . . . . 60

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

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

AutoX Launches Autonomous Grocery Delivery in San Jose, CA AutoX is launching a grocery delivery and mobile store pilot in San Jose, CA, allowing public users to order and receive fresh produce and other goods delivered by AutoX selfdriving cars. Arriving in time for the autumn harvest produce season, the new amenity will be available to customers in geo-fenced areas throughout the city.

and is a testament to our cutting-edge AI and all its potential capabilities. We believe self-driving car technologies will fundamentally change people’s daily lives for the better.” AutoX’s featured partner on fresh produce is e-commerce company GrubMarket.com, which is one of the key partners fulfilling the grocery orders. GrubMarket sources organic and healthy food directly from

“We’re very excited to launch the first autonomous grocery delivery and mobile store service in the heart of Silicon Valley with self-driving vehicles on the road,” said AutoX Founder and CEO Jianxiong Xiao, who has a PhD from MIT Computer Science and Artificial Intelligence Lab and is a pioneer in the research field of 3D computer vision and robotics. “It’s the first step of our mission to democratize autonomy

producers and offers fresh food at the lowest cost to popular retail stores such as Whole Foods, Blue Apron, Hello Fresh and Chipotle. “AutoX is a true innovator in the autonomous driving industry, as evidenced by their pioneering self-driving delivery vehicle,” said GrubMarket CEO Mike Xu. “We are thrilled to combine the fresh and affordable grocery experience of GrubMarket with the ingenuity

“You can order goods from an app and get them delivered by a self-driving vehicle. Or, our self-driving car brings a shelf of goods to you, and you can select and purchase onsite in front of your house.” — Jewel Li

TN DOT Commissioner Talks Autonomous Vehicles by Matt Masters, Lebanon Democrat

Tennessee Department of Transportation Commissioner John Schroer spoke about the coming revolution of autonomous vehicles August 23 at the Lebanon-Wilson County Chamber of Commerce’s Lunch and Learn event at Five Oaks Golf & Country Club in Lebanon. Gov. Bill Haslam appointed Schroer the 29th TDOT commissioner. Schroer is also former mayor of Franklin. He spoke to a packed room of about 70 people with a presentation on the future of transportation and more specifically, the coming revolution of autonomous vehicles that will operate almost completely free of human operators with the goal of safer, cheaper and more efficient forms of transportation. “Those cars are going to be available in the next two or three years in our country,” Schroer said. “You’re not going to be able to go buy a Ford Escort or whatever they’re selling because those cars will be for their autonomous fleet. You won’t probably buy autonomous vehicles, and the reason being is because [of] 4

the way insurance is working and the way the national government is talking about autonomous vehicles. They’re making the car producers— the manufacturers—insure that vehi-

cle, so you won’t have to have [car] insurance. They’re going to make sure they maintain them, they’re in control of them and everything is working on them because ultimately it’s the technology that’s doing the driving. “So we’re going to belong to the services, the Ford service or the

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

from the L4 autonomous driving crowd is its emphasis on inexpensive but high-resolution cameras as the primary sensor, rather than expensive LiDAR laser arrays and other costly sensors. AutoX’s high resolution camera sensing enables the AI to safely detect small objects, such as kids and pets, and see farther ahead than other autonomous driving technologies that heavily rely on LiDAR. “Highest safety and lowest cost; this is where our key technology lies,” said Jianxiong. With a diverse team of research minds from the likes of MIT, Stanford, CMU and AutoX is launching a grocery delivery and mobile store Berkeley, along with engipilot in San Jose, CA. Credit: Business Wire neering talent from Google, “We are enabling two shopping Apple, Microsoft, Amazon, and Ford, experiences with self-driving cars,” AutoX is determined to make a mark explained AutoX COO Jewel Li. on the autonomous driving industry. AutoX’s grocery delivery and “You can order goods from an app and get them delivered by a self-dri- mobile store pilot will roll out in two ving vehicle. Or, our self-driving car phases: The first pilot is in San Jose, brings a shelf of goods to you, and and phase two will expand the pilot you can select and purchase onsite in west to Mountain View and Palo Alto with more delivery partners joining front of your house.” What sets AutoX’s system apart soon. and delivery capabilities of AutoX. We look forward to providing our customers with even more convenient delivery options.” When the AutoX car arrives, the window rolls down with AutoX’s selections for customers to pick.

General Motors service or the Audi service, and that’s how we will go to and from work. We’ll probably own a car for a while. We’ll use it when we drive to the grocery store or go out on the weekend, but most of the time, we’ll use autonomous vehicles, and as we do that we will start saving lives, and that’s really what this is all about.” Schroer gave an example of New York City from 1900–1913, where the mode of transportation changed from horse and buggy to the automobile in a relatively short timeframe. Schroer said it’s currently in the first five years of a similar revolution that will take about the same amount of time, 13 years, to become fully integrated in society. Schroer cited several numbers and said the average cost to own a car in the United States is between $700– $800, coupled with the near 40,000 highway deaths per year, 94 percent of which are caused by human error. Schroer said the goal of TDOT is to make sure government investments are compatible with the future of autonomous vehicles. He said safety is the main concern with any efforts to which TDOT commits.

Schroer also promoted a hightechnology corridor between Murfreesboro and Nashville that will act as a pilot program to implement a variety of technologies to make travel safer and more efficient. “We’re putting every type of technology available to us in that corridor of I-24 and Murfreesboro Road, which will include [dedicated shortrange communications] units that will receive and transmit information from the cars and to the cars. We’ll have traffic-signal coordination on Murfreesboro Roads, dynamic message boards telling drivers what to do and where to go, what speed to drive in order to reduce congestion; so lots of new technology that’s going to be involved,” Schroer said. We thank Lebanon Democrat for reprint permission.

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OK Convenes Autonomous Vehicle Task Force To Inform Future Legislation by Ryan Johnston, StateScoop

Oklahoma is a bit behind in setting policies for autonomous vehicles, according to the state’s top transportation official, but he said a new task force will help it catch up. Mike Patterson, the state Department of Transportation director since 2013, told StateScoop that the task force’s primary objective is to coordinate connected-vehicle transportation through the I-40 corridor--leveling with neighbors such as Texas, Arkansas and Tennessee, who have all enacted legislation relating to autonomous vehicles. Oklahoma partnered with those states on trying to develop a regional corridor for connected trucks, “and we found that Oklahoma is the only state that doesn’t allow it, at least on I-40,” Patterson said. “We have a similar situation in Texas—there are trucks traveling out of the Dallas /Fort-Worth area that are connected, but you get to the border … We think we’re a little bit behind in that nature.” The task force—which includes Oklahoma officials from all levels of government, as well as representa-

a key factor in waiting to get stakeholders together. The state has virtually no regulation whatsoever over autonomous vehicles or trucks, and the primary federal action on the matter—the AV START Act moving through Congress—is a contentious piece of legislation at best. Therefore, Oklahoma is looking locally for its policy direction. State, city, county and municipal officials, including transportation, urban planning and infrastructure leaders, fill out the publicsector seats on the task force. Associations and shipping companies such as the Oklahoma Trucking Association, A stretch of Interstate 40 in Oklahoma. Credit: duggar11, AAA and UPS have been inFlickr vited to present or sit on the “What we want to accomplish is force as well. Their education on the that Oklahoma needs to be prepared burgeoning field of self-driving vehifor whatever the industry decides cles is coming from auto manufacturtransportation is going to look like,” ers such as Tesla, Uber and more as the he said. “We need to be prepared for year goes on. “The notion of the task force is whatever the public demands of the transportation system as this evolu- that we know that people are at different educated levels,” Patterson tion continues.” The idea was almost put into said, “so my first goal is to get everyplace year ago, but Patterson cited body about to the same level of edunatural “evolution” of the industry as cation of what’s going on outside of

tives of trucking and shipping industries—has convened once already and will continue to meet once a month. Patterson said the goal is to have a body of work presentable to the Oklahoma legislature by mid-December— two months before the 2019 session begins.

Donate Your Vehicle to Auto Collision Repair Students in Lewisville, TX by Staff, The Cross Timbers Gazette

Who doesn’t want to impart wisdom as they age? Let me let you in on a little-known secret. You can donate your aging cars and trucks to Lewisville Independent School District in Texas.

LISD students working on vehicles donated by community members. Credit: Travis Sutton, LISD instructor

Your car can then impart wisdom, through training, on many, many students for many years. The students in automotive technology and auto collision repair classes always need more cars. Teachers use donated cars as learning tools. Students diagnose and fix 6

issues in the car, only to have the teacher break something else and have them start again. Donated cars allow for increased training opportunities for our students to help them prepare for their future. After our teachers and students have used and abused these cars, LISD has an agreement with both the Lewisville and Flower Mound fire departments to use them as training vehicles to practice life-saving techniques. The firefighters use the Jaws of Life on them and even set them on fire and then put them out. And if that isn’t enough, when you donate your car, you get a tax write-off as a reward for your good deed! So, when you don’t want to sink any more money into your old car, let it impart wisdom on our students and then fire departments. Donate your car! It is the gift that keeps on giving. Contact Lewisville ISD today at www.lisd.net or 469-713-5200. We thank The Cross Timbers Gazette for reprint permission.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Oklahoma so that we can all start at the same point as we begin to develop policies, statutes and regulations.” The state isn’t the first to try to use a task force to focus policy efforts in the field. Indiana would have had a statewide task group to grant permits to companies that applied for AV testing in the state, but the bill failed to pass after a nasty dispute between lawmakers and auto lobbyists who wanted to wait for the federal government to create a regulatory environment before states offered their own solutions. Oklahoma hasn’t introduced policy yet, but Patterson is preparing the task force to inform potential legislation. “I don’t think that [a federal regulatory landscape created before state-level regulations] is going to work,” Patterson said. “I think the demands on the system at the local level are such that we’re going to have to react. Hopefully Congress can find time to work on this, but we may need to work a little ahead of schedule.” We thank StateScoop for reprint permission.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Arlington, TX, To Introduce Drive.ai Project in Entertainment District by Ken Costlow, Arlington Voice

Having already utilized an off-street autonomous vehicle to transport passengers in the Entertainment District, the city of Arlington, TX, is now on the brink of taking the next step in the independent mobility process. On August 21, the Arlington City Council approved a contract with Drive.ai for a one-year pilot program to run autonomous vehicles in a real-world environment. Beginning Oct. 19, the city and Drive.ai—a Mountain View, CAbased startup company—plan to roll out a fleet of three self-driving, threepassenger vans in the Entertainment District. The vans will travel alongside other vehicles in a pre-determined, geo-fenced area at speeds of up to 35 mph. Like Milo—the city’s first autonomous vehicle—safety operators will be onboard during the initial phase of the pilot program. The Milo program wrapped up earlier in August after operating safely for more than 100 special events over the past year. The initial project cost will total $434,952 for three vehicles. If mu-

“This forward-thinking, bustling city has unique transportation needs, and we plan to provide a last-mile transit solution within a vibrant entertainment district,” Chen said. “Together with the city, we aim to reshape the way people experience transportation in Arlington, Texas.” Drive.ai will be used for day-to-day mobility needs for residents, in addition to helping visitors get to and from remote parking lots at AT&T Stadium, Globe Life Park and Texas Live!. At the beginning of August, Drive.ai launched a pilot program in Frisco Starting Oct. 19, the city of Arlington and Drive.ai plan to using the city’s streets. Arroll out a fleet of three self-driving, three-passenger vans lington would be the secto provide unique transportation within the Entertainment ond city in Texas to feature District. Credit: Drive.ai the system. “The city is excited to continue the City. Funding for the Milo project that just ended will be transi- our exploration into new and innotioned into the new Drive.ai project. vative mobility solutions,” Arlington Conway Chen, vice president Mayor Jeff Williams said. “Early of business strategy at Drive.ai, said testing of these technologically adthe company is looking forward to vanced solutions will prepare the the opportunity to bring its innova- city to take advantage of unique and tive self-driving technology to Ar- efficient transportation options as they become available.” lington. tually agreed upon by the City and Drive.ai, the number could increase to five vehicles at a later date. A $343,000 federal grant will help support the project, with the remaining $91,952 being funded by

AZAUTOMOTIV

The Drive.ai vans will be featured in an upcoming transportation technology showcase called Texas Mobility Summit, to be held in Arlington from Oct. 28–30. In addition to the Drive.ai project, the city is also partnering with Marble—a San Francisco-based, last mile logistics robotics company— for an autonomous robotic delivery program. Engineers from Marble have already begun mapping Arlington sidewalks in preparation for paths along which the vehicles would travel. When the project begins later this year, Arlington will become the first city in Texas to utilize the Marble delivery service. We thank Arlington Voice for reprint permission.

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Continued from Cover

Wrongful Billing

hood, latch and some radiator parts but was disappointed when he went to pick up his car a few weeks later. “You can see the poor work she had done and everything,” Wooten said. “When I pointed it out to her, right away she is telling me to bring her to court.”

When Wooten showed News 5 his car, News 5 could clearly see the bumper wasn’t installed correctly. The hood, which was allegedly replaced, had scratches on it. The plastic molding on the bottom portion of the grille was still damaged. The second adjuster who came out and wrote a follow-up report concluded the car was “poorly put together,” as documented on page 5

of the second insurer adjuster’s report. On more than one occasion, the adjuster said the shop charged for repairs when no work was done. The adjuster also said the shop billed Wooten’s insurance company to replace parts that were never actually replaced. This data can be found on page 6 of the second insurer adjuster’s report. One part underneath the front bumper was held up with zip ties when Wooten brought the car up to the News 5 studio for an inspection. However, Aragon adamantly denied that her shop uses zip ties. According to Wooten, Lustre Plus Paint and Body received an estimated $5,000 from his insurance company, but claims Safeway Insurance can’t do much to help him now. “They told me that it’s between me and the body shop,” Wooten said. “Because I chose the body shop and it wasn’t a body shop they chose, I was told it’s between me and the shop.” Aragon said she initially offered to address Wooten’s issues and even waived his $500 deductible.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

“This customer was treated with care and understanding. Here is a photograph (pictured above) of me going over the issues he had,” Aragon told News 5 via email. “I did tell him I can take care of it.”

Aragon then alleged Wooten called to “cash out” and threatened legal action. She said Wooten kept calling the business and she eventually had to call the Pueblo County Sheriff’s Office to file a “harassment” report. The records division at the PCSO confirmed to News 5 that a case report was received but no action was taken. “She (Aragon) eventually does give me $410 back for some parts,” Wooten said. “After she gave me that

money back, she told me she’s not doing any more of the work on the car.” As part of a civil agreement Wooten signed with the body shop, Lustre Plus Paint and Body waived its responsibility for making any future repairs in exchange for the $400 “cash out” payment. It’s a mistake that’s left Wooten with an unrepaired car and no additional money to fix it. “I’d like to see the body work done or the money back so I can get it done somewhere else correctly,” Wooten said. “If I don’t get anything back, I just want to let other people know about this body shop.” Dealing With Auto Body Repair Shops Some insurance companies will require you to go to one of its designated repair facilities. However, if the insurance company allows you to choose your own repair shop, it is the customer’s responsibility to do their research and background-check the company prior to signing a repair contract. When signing a contract, make sure the repair company puts an es-

timated start and completion date for the work they are going to perform. If you have a dispute with the work performed, do not take the car back or sign any additional documents. Contact your insurance company and ask for a second adjuster to come out and document the issues or damage. Some repair shops will have you sign a “waiver of liability” form, forcing you to go to arbitration rather than court to settle a dispute. In Wooten’s case, he voluntarily surrendered any future repair obligations by the repair shop after accepting a $410 payment as a “refund.” While this wouldn’t prevent Wooten from suing in civil court, it could impact the outcome of the case. How do I report a business that I believe ripped me off? You can file a consumer complaint with the Better Business Bureau and contact the consumer protection division at the Colorado Attorney General’s Office. Transparency Report Lustre Plus Paint and Body disputes some of the claims in the adjuster’s

report. You can read the entire correspondence between Aragon and KOAA News 5 by going to https:// drive.google.com/file/d/1-ZZ mhkz5ozM6GyPRC8HiTdwadFS7f TxX/view. For a full copy of the second insurance adjuster’s report, go to https: //drive.google.com/file/d/1pHqJEU DAXETqed-SfrhCxq-M381I9u _z/view. The body shop alleges that Wooten’s insurance company said they were cleared of any wrongdoing. However, the shop didn’t have any documented emails or letters to back up those claims. We thank KOAA News 5 for reprint permission.

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Caliber Collision Academy Gives CO Soldiers Opportunity To Start Civilian Careers Caliber Collision recently announced the opening of its Changing Lanes Falcon Academy, an innovative training program for Ft. Carson soldiers in Colorado nearing the completion of their military service to learn skills for a successful new career in the fast-growing collision repair industry. The first cohort started August 28 with additional classes every seven weeks and 14 positions available in each. Participants in Changing Lanes receive free training, certification and employment opportunities prior to transitioning out of the U.S. Armed Forces. Upon successful completion of the 18-week program, which consists of a combination of class instruction and hands-on training, participants receive employment offers at Caliber locations throughout Colorado and the nation. Each graduate will also receive a $12,000 toolbox to jump-start their careers. Falcon Academy in Colorado Springs is the third Changing Lanes Academy launched by Caliber Collision over the past 18 months.

“We appreciate all of our community partners who work to help our transitioning soldiers,” said Mike Webb, Fort Carson director of human resources. “Industry knowledge and skills that can help bridge the gap greatly assist them in their transition to the civilian life.” “Changing Lanes is an absolute win-win for our military heroes and Caliber,” said Steve Grimshaw, Caliber Collision chief executive officer. “Transitioning soldiers gain valuable skills to jump-start a rewarding collision repair career. Caliber Collision benefits from bringing on board teammates whose military training and background mirror our core values and our commitment to provide complete satisfaction as we restore the rhythm of lives.” To date, more than 100 service members have graduated from Caliber Collision’s Changing Lanes programs at Ft. Bragg and Ft. Hood. The company’s overall goal is to train 300 soldiers per year with the addition of Fort Carson.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

When All Hail Breaks Loose, the Hustlers Get Busy by Ellen Marks, Albuquerque Journal

Here’s a group of people not to hail if they come to your front door: scammers who are trying to make a buck off of storm damage that hit New Mexico over the past month. They’re called storm chasers, and they have been fanning out across the state seeking people to pay for bogus hail damage repair, according to the Attorney General’s Office. They show up on street corners or at people’s doors, offering to fix hail damage done to home roofs or cars. “Using a scammer rather than a real repair person or shop can cause more damage than the hail did,” AG Hector Balderas warned in a news release. One thing to definitely not do: Don’t let a door-to-door sales person making a cold call climb onto your roof to inspect damage. The bogus repairers have been known to file claims for injuries from falls that didn’t actually occur, the AG said. Also, don’t sign anything: “… all too often the document signed allows the scammer to bill the consumer’s insurance and/or allows the

scammer to charge high dollars for repairs even if the work is shoddy or only partially done,” the news release said. The safest thing to do is to check with a homeowner insurance agent to get recommendations for reputable repair people. However, if you do consider hiring an unknown person, check with the state’s Construction

quently and could be gone before they complete a job. They also often don’t offer legitimate warranties. “When selecting businesses to do repair work, consumers should look to local, legitimate businesses who have a good reputation,” the AG’s Office said. “Know that many of these legitimate businesses may

Industries Division to make sure the person or business is licensed and has no pending complaints. You can do this online at public.psiexams.com /search.jsp. While state law doesn’t cover minimum requirements for dent repair on automobiles, you should still ask to see a business license before agreeing to sign a contract, the AG said. Mobile car repair units, which often advertise by posting signs on street corners, may offer low-cost services, but many move around fre-

have some backlog, and it may take a little while to get an appointment to get your car fixed. But the patience will pay off with an enforceable warranty and quality service.” A new nationwide tech support scam has reared its ugly head in New Mexico, the Better Business Bureau warned. One person who had lost $500 to a fake computer repair scam last year was victimized again by the latest scheme. This one involved someone who called to say the Better Business Bu-

“Using a scammer rather than a real repair person or shop can cause more damage than the hail did,” — Hector Balderas

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

reau was requiring a particular tech company to issue refunds to customers because it was going out of business. The caller said the person was owed a refund of $400 from the company. The scammer talked the woman into providing her bank account information for easy deposit. The woman did so. The scammers charged $1,100 to her account. It gets worse. The scammer called back to say the only way to process the refund was for the victim to purchase two prepaid cards so “the costs” could be covered. The woman did so, doling out more than $1,500 to comply with the scammer’s second request. The Better Business Bureau said it wants people to know that it would never ask a company that is going out of business to issue a refund to its customers for any services that were completed. The BBB added, “If a company is asking for any monetary exchange in the form of prepaid gift cards, then it is likely a scam.”

We thank Albuquerque Journal for reprint permission.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Cover

Overtime Laws

time law, an employee in that state will receive the state’s minimum wage while being paid overtime under federal provisions. Farrington stressed, “Employers must be familiar with the state laws in every jurisdiction where they operate.” Although overtime is often viewed as a reward for an employee who works a long week, Farrington explained, “It is actually a penalty on the employer for working an employee over 40 hours. Overtime is paid out at one and a half times the employee’s regular rate of pay for hours worked over 40 hours in a workweek. The primary purpose of overtime is to spread employment because the government wants you to work more people for fewer hours. It is meant to be punitive, cost you money and be difficult to comply with.” Clarifying that a fundamental principle of overtime is that “each workweek stands alone,” Farrington defined a workweek as a “fixed and recurring period” of seven consecutive 24-hour days that may not be altered unless it is being changed permanently. However, daily overtime is not required under FLSA, which means an employer can schedule employees within the workweek as they see fit, moving hours around to minimize overtime. Averaging workweeks is forbidden, even if the employer pays bi-weekly. For example, an employee who works 48 hours one week and 32 hours the next is still entitled to eight hours of overtime for that first week. Paid time off does not count toward overtime. If an employee utilizes eight hours of vacation, sick or holiday pay, they will be paid for 48 hours, but since only 40 hours were actually worked, there is no overtime due. “Overtime is based on time worked. Only hours that are actually worked beyond 40 hours count toward overtime,” Farrington said. Overtime must also be paid at an employee’s regular rate, which is the employee’s total remuneration for employment within the workweek divided by the total number of hours worked. This means that over14

time must be paid on the employee’s base rate and all compensation, including bonuses and commissions. Farrington explained how to calculate overtime on bonuses and commissions on a monthly or quarterly basis. Hours worked is defined as all time the employee is required to be on the employer’s premises, all time the employee is required to be at a prescribed work site and all time the employee spends in activities that benefit the employer. Because management has the total power to control, schedule and require the hours worked, it is therefore completely management’s responsibility to record and pay for hours worked, meaning an employer must pay for overtime even if it is unauthorized or unknown. “Make sure it’s a proactive management responsibility to see that employees record and are paid for hours worked,” Farrington stressed. Meals are not required by FLSA, but if they are given, they do not need to be paid as long as these three conditions are met: the break is long enough for the employee to consume a meal or use the time for their own purposes (typically 30 minutes), the break is uninterrupted and the employee is relieved from their duties during the break. It is important to note that many states have requirements pertaining to lunch breaks. While short 15-minute breaks are not required by FLSA, they must be treated as paid work time when given. Noting that there is an overtime exemption for most employees paid on flat rate hours, Farrington explained that overtime is not required for “salesmen, parts men and mechanics” employed by a “dealership,” which is defined as an establishment that derives over 50 percent of its gross revenue from the sales of automobiles, trucks or farm implements. Farrington continued to describe another applicable exemption for establishments that do not derive 50 percent of its revenue from selling vehicles. Employees are exempt from overtime if the following three conditions are met: They work for a retail establishment, their regular rate is more than 1.5 times the federal minimum wage, and they are paid primarily (more than 50 percent of their earnings) by commission. A retail establishment is consid-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

ered such under FLSA if 75 percent of its income is derived from retail sales and sales made to the general public. In a collision shop, this means individual customers, even when the insurance company is paying. The three common types of nonretail income are income from work on heavy trucks (16,001 pounds or more) or specialized equipment; income from fleet work, where work is done for a fleet customer pursuant to a contract or agreement and where the customer gets a fleet discount; and income from sales for resale, in which a dealer engages a shop to refurbish a used car that the dealership then sells, or a dealership farms out its body work to a body shop. In each case, income to the shop is non-retail. If these types of income constitute more than 25 percent of the business’s income, it is not eligible for the exemption. Farrington provided several examples of how these requirements can be analyzed. He also explained the benefits of drawing against commission. He warned, “The danger is if the draw is so high that the employee never gets commission. Then, the

courts will determine that is a salary, not a commission. For example, techs paid on commission of 40 percent of labor draw $700 per week. Commissions are settled at the end of the quarter. At the end of the first quarter, employees generated $25,000 in labor charges and have therefore earned $10,000 in commissions at 40 percent. The employee has drawn $9,100 ($700 x 13 weeks), so at the end of Quarter 1, the employees get another $900 in excess commissions above the draw. “Employers should ensure that regular payments to employees are not considered salary payments. The best way to do this is to carry forward any deficits (amounts by which draws exceed commission), and charge them against future commissions,” Farrington suggested. “For instance, say the commissions had been $9,000 for the quarter. There is a $100 deficit, so it gets carried forward to the next quarter and subtracted from Quarter 2’s commission. “Under this system, a fixed number of hours are attributed to a particular job, regardless of how long it See Overtime Laws, Page 18

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Thousands of Hail-Damaged Vehicles in CO To Be Auctioned Off by Alexis Dominguez, KRDO

When KRDO first used its Skytracker 13 drone to fly over the lot on Platte and Powers in Colorado Springs, CO, July 25, it noticed more than a thousand hail-pummeled cars and trucks damaged in June’s destructive hail storm. Today, that number continues to grow. Following August’s most recent storm, the number of totaled vehicles in the massive parking lot at the major intersection jumped from 2,000 to roughly 5,000. Numbers recorded by the Rocky Mountain Insurance Information Association show June and August’s storms produced a combined $342 million in insured losses. For people looking to purchase a vehicle, like Dennis Guerin, the lot is more like a playground. “We were just driving by and I noticed all the cars I know have hail damage. We’re all interested in a car every now and then,” Guerin said. If one takes a closer look, the damage here is mostly cosmetic; dents and broken windshields. Most

of them still run with no mechanical problems. “Some don’t look damaged at all, but then you look at some of these other ones, and they’re just beat to tar. So I guess it all depends on what you’re looking for,” Guerin said. So what happens to the cars when they leave this lot? Although no one was able to speak to KRDO on camera, the owner of the property said the cars get auctioned off to dealerships. Then, they are either repaired and sold to people at a lower price or stripped and used for parts. The cars aren’t auctioned off in Colorado Springs. Copart Incorporated, the auction company, is located in Denver with 190 other locations in 12 countries. That’s where these cars could be shipped. “Personally, I’m interested in campers,” said Guerin. While the public can come in and pick out a vehicle, you do have to register with the company to buy one. We thank KRDO for reprint permission.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

CO CARSTAR Business Group Supports Cystic Fibrosis Research The CARSTAR Business Group of Colorado recently hit the links with their franchise partners, insurance carriers, vendor partners, CARSTAR corporate team members and community members—all for a good cause. The event raised more than $15,000 for cystic fibrosis research, advocacy and care for Colorado families. The CARSTAR tournament, held at Meadow Hills Golf Course in Aurora, CO, on August 24, 2018, featured a four-person scramble with closest-to-the-pin, longest drive, longest putt and hole-in-one contests for the 100 golfers on the field. Sponsoring partners included FinishMaster, Single Source, Sherwin Williams, Enterprise Rent-ACar and Kent Automotive. Tynan’s Automotive provided a 2018 Nissan Rogue as the hole-in-one prize, but no one was able to claim that great prize. At the luncheon, members of the CARSTAR Colorado Business Group presented a check to cystic fibrosis representatives. Donations totaled $15,231 for the event. The CARSTAR Colorado Busi-

ness Group, just this summer, has donated a total of $28,500 to support cystic fibrosis research, care and advocacy through the golf event, annual CARSTAR Shine Month and the recent CARSTAR Conference. “The CARSTAR golf tournament was a great day of camaraderie with our colleagues and business partners,” said Steve Rigsby, business development manager for the CARSTAR Colorado Business Group. “More importantly, we all came together to support an important cause—helping fund research, care and advocacy for cystic fibrosis. We’re very thankful to all of our vendor partners who helped make this event and donation possible.” Colorado CARSTAR locations can be found in Arvada, Aurora, Centennial, Colorado Springs, Commerce City, Denver, Ft. Collins, Littleton and Northglenn.

For more information about CARSTAR and the CARSTAR Golf Tournament, please contact Steve Rigsby, Colorado CARSTAR Business Development Manager at tms6196@ comcast.net.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

B & J Collision Owner Bobby Wayne Johnson Passes Away Bobby Wayne Johnson of Wood- man for Metropolitan Life Insurance. Feeling the pull to be closer to lawn, TX, (aged 73) left this world on his parents, Carl and Bethel JohnSept. 1st, 2018. While on this earth, he lived and son, he returned to Woodlawn in loved fully—and will be missed by 1973. He and his wife opened up an auto collision business, B & J Collimany. Born in Carthage, TX, on June sion, which has been operating for 12, 1945 and raised in Jefferson, more than 40 years. In 1977, the famJohnson was an avid high school ath- ily was blessed with a second daughlete. He graduated Jefferson High ter. A gifted speaker and writer, JohnSchool in 1963. After briefly attending Stephen F. Austin State Univer- son combined his insurance and auto body business expertise and sity in Nacogdoches—and began writing regular artigoing to California with a cles for Hammer & Dolly, friend and his guitar to cut Motor Magazine and other a record—he decided to industry magazines. enlist in the United States He was invited to speak Army. He was selected by at conferences across the the Special Forces as a U.S. and authored a book Green Beret. about those experiences that While in medical trainBobby Wayne was titled “Taking Care of ing in San Antonio, he met Johnson Business.” He also won nuhis wife, and they married two weeks later. He served his country merous industry awards. Later in life, Johnson began a in the Vietnam conflict for two yearlong tours and was a Purple Heart re- part-time career as a police officer/investigator for the Marion County Discipient. Upon discharge, Johnson and his trict Attorney’s Office, where he wife lived in Norwood, MA, for six worked proudly for nearly a decade. Gregarious and generous, he was years, where they had a daughter. He studied and received his ACLU li- kind, sentimental and loved to laugh. cense and became a top-selling sales- And anyone that knew him knew he

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

loved his animals. He reveled in being the man who bought everyone lunch, and he mentored and helped many young employees and supported numerous groups and events in the Jefferson and Marshall area. A proud patriot, he supported and was active in many veteran organizations. Ever the athlete, Johnson also received his black belt in Taekwondo and proceeded to win in various senior level divisions. His happiest times were with family and friends at the beach in Galveston Island or working out at the gym or in his yard at home. He was a member of the congregation of Immanuel Baptist Church. He is survived by his loving wife of 53 years, Judith Ann Johnson of Woodlawn; his daughter Shannon; and son-in-law, Jeffrey Hiltner of Vermont. His beloved daughter Amanda Johnson Thompson; his grandson, Alexander Hiltner; and his parents predeceased him. The family would like to honor several individuals whom Johnson loved equally as family: Harry and Minda Thornton, Nancy Ponder, Rodney King, David Nelson and Ronnie Stanfield.

Continued from Page 14

Overtime Laws

actually takes to do the job. The customer pays for the number of hours to the shop at the labor rate, and the technician receives money so what they receive is a function of what the customer pays, and that’s a commission. A painter or mechanic may work for seven, eight or nine hours in a day and still receive credit for 10, 11 or 12 flat rate hours, depending on how much work is done and regardless of the actual time it takes to complete a certain job.” As his presentation came to a close, Farrington emphasized the importance of engaging legal counsel that is familiar with your specific state’s legal requirements. Molla stated, “Ignorance of the law is no excuse. Seek competent legal advice when in doubt.” For more information on ASA, visit asashop.org.

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Young Auto Care Network Group Meets Up in Denver by Chasidy Rae Sisk

On August 23, the Young Auto Care Network Group (YANG) held a Regional Meet-Up, hosted by Mansfield Oil, in conjunction with Mansfield’s D1 Expo.

The event took place at the Wells Fargo Center in Denver, CO. David Pinkham, YANG liaison, explained, “Mansfield had reached out about hosting this event as a way to engage local young people from the auto care industry and expose them to the energy business.” Topics of discussion during the meet-up included current market trends in energy and traditional aftermarket. David McCoy, DEF, after-

market sales manager for Mansfield Oil, shared, “Discussed were current market trends in energy and traditional aftermarket (more in generalities). One aha moment was described as (paraphrasing) ‘amazing how, every single day, in major ways, energy participates and contributes within the aftermarket, from fueling WD fleets to refining oil that ends up on retail shelves.’ So, what I heard from that is the Invisible Industry is becoming much less invisible to young energy leaders, which was my own little selfish goal (dots connected and drive felt to further engage in our aftermarket communities).” McCoy believes that the event was important because it provided “an experience for energy industry participants and traditional aftermarket young leaders to realize the strong connection and influence each have on one another’s daily activities—making the invisible, visible and the unknown, known.” For more information on YANG, visit autocare.org/YANG.

ABAT, Greco Publishing Partner To Produce Texas Automotive Magazine by Chasidy Rae Sisk

The Auto Body Association of Texas (ABAT) partnered with Thomas Greco Publishing Inc. to announce the upcoming production of Texas Automotive, a new monthly publication. According to ABAT President Burl Richards, “Our new relationship with Greco Publishing will open a lot of doors for ABAT and shops in our state. This gives us an avenue we have not had before to really show shops what’s going on in our industry and what our association has been able to do legislatively and behind the scenes with Todd Tracy’s crash tests. This will help us grow and keep shops informed of what is happening in Texas and across the nation.” Texas Automotive debuted its September 2018 edition at the Texas Auto Body Trade Show, which took place Sept.14–16 in Fort Worth, TX. A digital copy is available at grecopublishing.com. “We are excited to work with ABAT to bring their association

members and the automotive repair professionals throughout Texas quality and informative coverage of the latest trends and issues affecting the collision repair industry,” said Thomas Greco, owner and president of Thomas Greco Publishing. Serving the automotive repair industry for more than three decades in print, online and as an association liaison, Greco Publishing also publishes New Jersey Automotive, New England Automotive Report, Hammer & Dolly, AASP-MN News, Wisconsin Automotive News and the NORTHEAST Conference Journal, in addition to serving as event managers for the NORTHEAST® Automotive Services Show. For more information on ABAT, visit abat.us.

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Continued from Cover

State Farm Settles

Illinois Supreme Court. (A record $9 million was spent on the election that Judge Karmeier ultimately won.) Further, it was alleged that a State Farm attorney actually was the individual who recruited Karmeier and had discussions about the case with his campaign manager. This new evidence persuaded the federal judge to agree with the plaintiffs, and despite State Farm’s objection, the federal case was allowed to continue to a jury trial. The federal case included civil racketeering claims and claims of fraud. Essentially, plaintiffs alleged that State Farm recruited and funded Justice Karmeier’s 2004 campaign to be elected to the Illinois Supreme Court without revealing it. Further, the plaintiffs alleged that this was done for the purpose of getting a favorable ruling in favor of State Farm in the appeal of Avery. On August 5, 2013, the plaintiffs in Hale v. State Farm told the

federal judge that their “stated intention” was to ask Justice Karmeier to address the allegations in a deposition. The plaintiffs contended that State Farm violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, by using the U.S. Chamber of Commerce, the Illinois Republican Party and other entities or conduits to conceal its role in funding and operating the Justice’s campaign. RICO allows plaintiffs to sue persons or entities involved in a conspiracy to engage in improper activities such as bribery, fraud or violent crimes. State Farm’s motion to dismiss the above claims was denied and the federal court ruled that discovery and the case may continue. In 2016, the federal court certified the class, denied all motions to dismiss by State Farm and ultimately set a trial date for Sept. 4, 2018. State Farm denied the allegations and Judge Karmeier maintained that he didn’t know who or how much was given to his campaign. Indeed, prior recusal motions were all denied by Justice Karmeier. Moments before the case in fed-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

eral court was to begin, State Farm agreed to pay $250 million to settle the federal lawsuit (which now charged them with Civil RICO violations). The settlement will provide benefits to more than 4 million current and former State Farm policyholders who were members of the class in Avery. Obviously, the settlement saves State Farm from any further transparency and humiliation that would result from the case going to trial. Most importantly, it prevents further monetary damage being inflicted upon them. The Avery case demonstrates that insurance companies can and should be challenged if they engage in unfair, unethical or illegal conduct. A low and unfair estimate can be challenged in small claims, civil court or a higher court. Tortious interference with your business is an actionable tort under the law that can be the basis of a lawsuit. Defamation is also a serious allegation that can affect your livelihood and reputation within your community, and that, too, is action-

able in court. Remember that insurance companies are for-profit businesses, and like any business, they want to lower costs and make as much money as they can. When they intrude in any significant way on your livelihood, it’s time to act! In the very near future, I will be holding seminars in which you can address any unfair or potentially illegal issues that you have had with insurance companies. They may include: steering, low or unfair appraisals, unfair or no negotiations, declaring vehicles totaled when they are fixable, defamation against you, your shop or reputation, tortious interference with your business, denial of PainTex accounting or any other issue that has damaged your business that you can prove.

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Continued from Cover

Return to Autobody

auto shop as a kid.” He was led into law enforcement where he served for 30 years, retiring in July as Brush’s chief. “I wanted to get back into the body shop business,” Anderson said. “It is a passion of mine. But, I’m almost overwhelmed. It was so much different back when I worked with my dad. The business has changed so much.” His opportunity came through a relationship with Derek Hass, owner of J.D.’z Autobody & Paint at 115 Colorado Avenue. Anderson decided to begin A&A Auto Glass, short for Anderson & Anderson, with the encouragement of Hass. “Derek has helped me out a whole lot,” Anderson said. “I appreciate what he has done for me.” Hass agreed to allow Anderson to rent some shop space at the location where Hass has served Brush for the past 29 years. In police terms, Anderson said an officer is “in service,” or 10-8 in police code lingo,

when they are on patrol. He said that with his new auto shop business, he’s still “in service.” “We do chip repair with mobile installation and don’t charge a service fee,” Anderson said, adding that he also offers a public safety discount. “This is something I’ve wanted to do for the past 15 years—I just didn’t have that opportunity.”

“I wanted to get back into the body shop business,” Anderson said. “It is a passion of mine. But, I’m almost overwhelmed. It was so much different back when I worked with my dad. The business has changed so much.” — Travis Anderson

The opportunity he needed was provided by Hass, who was willing to allow the former police chief a chance to work in his shop. Glass repair is an area of the business where Hass didn’t have an interest in performing. “It works out really well,” Hass said. In August, Anderson was in the shop preparing for a service call as Hass was finishing a paint job on a

Thieves Crash Stolen Car After Heist From Body Shop by Staff, WBRZ

Thieves wrecked two stolen vehicles—one as they drove it from an auto body shop and car lot over the weekend of August 18 in Baton Rouge, LA. A security video shared with WBRZ shows thieves rummaging around the business on Florida Boulevard. Owners said the thieves—who appear young, perhaps in their late teens—stole keys to some cars on the lot and drove off with four of them in two nights. The video showed the driver crashing a white 2007 Mazda CX9 as he pulled out of the parking lot of the business early the morning of August 18. The driver pulled into the path of a truck, was hit and then jumped from the moving vehicle. The vehicle appeared to roll across traffic and possibly hit a second oncoming vehicle. Two more vehicles were stolen that night. One was a brown 2009 Buick Enclave, which is still missing. The other was a black 2008 BMW 750li, which a thief crashed into a nearby house, according to the business owners. The thieves returned the night 22

vehicle and a paintless dent crew was finishing work on a car with moderate to heavy hail damage. “This meshes well,” Hass said. “[Anderson] wants to offer the same type of high-quality service and keep prices low.” Anderson had a passion for people while serving in law enforcement. Now, he says he can continue to

of August 19 to steal a blue 2005 Jaguar S-Type. “This is an ongoing issue,” said Manager Razan Alsalameh. The business, Fares Motor Company on Florida near N. Foster, has been the target of thieves dozens of times in the past year. Alsalameh said people keep cutting holes in their fence to enter the property and have even stolen the surveillance cameras mounted on the building. Management stopped locking the doors on vehicles parked in their shop after thieves routinely smashed the windows to steal batteries and radios. “When the police come and it looks like nothing is going on, they write it up as a false alarm. We’ve already been billed thousands of dollars by the police department,” she said. Police are investigating the latest heist, which happened early that Saturday morning. Owners showed video of the burglary beginning at 2:30 a.m., and they said thieves rummaged around for as long as three hours. We thank WBRZ for reprint permission.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

serve through an auto glass business. He’s hopeful also to chip in where he’s able in the auto body shop, learning the modern trade while leaning on the experience of his family’s past. We thank Brush News-Tribune for reprint permission.

www.autobodynews.com

Collision Safety Consultants Opens 18th Location in CO Billy Walkowiak, founder and CEO of Collision Safety Consultants, recently announced the opening of the company’s 18th location.

Collision Safety Consultants of Denver will now serve the people of Colorado. The owner is Saul Reisman. “The company will follow our corporate mission,” said Walkowiak. “He will do diminished value reports, perform postcollision repair inspections and total loss vehicle valuations. Saul will be an advocate working with lawyers, body shops, vehicle owners and automotive dealerships. He will also help like-minded shops improve quality control by advising them, as well as helping them locate and preform proper repair procedures.”

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Hey Toby! with Toby Chess

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

Plastic Bumper Repair Part 1: Adhesives Check out this ‘57 Chevy Impala. Look at all that chrome. The bumper had to weight over 200 pounds. The hood weighed another 150 pounds, and who knows what the rest of all of that steel weighed.

Let’s move forward to the 2018 Chevy Impala, which is composed of plastic headlamps, a plastic bumper, plastic grills and an aluminum hood. I would venture to say that all these parts would weigh less than the bumper on the ‘57 Chevy. A couple of months ago, I was at a welding at an MSO in Southern

California. A large bumper recycler had delivered six recon bumpers.

The parts manager inspected each recon bumper and rejected three. He took his pictures, ordered three new covers and had the estimator reflect the change in the estimate. I asked when he thought the new covers would be delivered, and he stated that it would be between one and three days. Sounded familiar. At another collision center welding, I saw this Audi Q5 rear bumper on a cart with damage to the left cor-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

ner about the size of a basketball. I inquired why they didn’t repair the bumper. They said that it couldn’t be repaired and that they made more money on the new bumper. I asked them when they expected the new bumper. They didn’t know (the new bumper had been ordered six days earlier). The rear bumper was slightly under $400, and with their discount they would gross about $100. I told them they could have repaired the bumper and charged the carrier for five hours ($275 total sale and gross profit of $185), which would have translated to an additional gross profit of $125. Furthermore, the vehicle would have been in and out in two to three days instead of waiting for the new bumper. Granted, not every bumper can be repaired. I have a real hard time with the insurance appraisers, who attend a one-hour bumper class put

on by the equipment manufacturers, telling the shop how they can repair the cover. Let the shop professionals make the decision to replace or repair and compensate the shop fairly and not some arbitrary number they (insurance appraisers) pulled out of the air or even worse, a flat number of hours the insurance company will only pay. Let’s take a look at what a shop should do: repair or replace a bumper cover.

Here is a list you may want to look at prior to writing the estimate: • Repair cost vs. OEM new • Will repair allow from life time warranty? • Can the repairs be seen? • Will the repairs stand up to stress? • What does the OEM state about

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

repairing its bumpers? • What is the availability of another bumper? • Warpage or memory • Age of the vehicle • Damage in area of parking sensor • Bumper has been repaired before and/or repainted

We made the decision to repair the bumper. What is next? There are two ways to proceed. First, you can use adhesives for the repair, or second, you can use a plastic welder or even better, a Nitrogen welder. In this article, I will use adhesives, and in my next article, I will use a Nitrogen welder. When finish, I will provide you with the pro and

cons of each and look at a number of Nitrogen welders on the market. Pictured above are three different companies that supply bumper adhesive products that I am very familiar with. There are also a number of other fine adhesive manufacturers, but I will use one company’s products to demonstrate the repair process. I will add one major warning: Do not mix other companies’ products with

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

the one you are using because it may cause a chemical reaction that will lead to a failure. So let’s get started. First and foremost, you need to check manufacturers’ SDS for personal protection equipment or PPE. Section 8 of the SDS from Kent Automotive states, “If the exposure limits are exceeded, an NIOSH-approved respirator is recommended.” Since I was just filming, it was not necessary to use a respirator, but I would highly recommend that a respirator be worn when working with any chemicals in a body shop environment. Gloves are recommended for prolonged or repeated skin contact. Again, I did not have the tech put on gloves for the photos due to limited exposure. One final note: Kent Automotive does not use isocynates in its plastic chemistry.

and two-sided repair. You should use a grease-cutting soap such as Dawn, not car wash soap.

1. Wash the front and back with soap and water for both single-sided

3. Remove stressed plastic with heat. I would recommend the Revo

I am going to outline a number of steps that need to be done on any type of bumper repair. They are as follows:

2. De-grease the bumper repair area with Acrysol WB or any waterbased de-greaser (do not use a solvent-based de-greaser).

Hand-Held Short Wave IRT.

Note the slight low spot on the bumper. It can be filled with epoxy filler.

6. Clean again with wax and grease remover to remove mold release agent that has been exposed.

5. Remove paint on the outside of the bumper 80 grit DA at low speeds (high speeds will melt the plastic).

4. Push out the dent with a dolly and cool with water (sets the plastic).

7. Some manufacturers require a surface modifier (aka adhesion promoter) prior to applying the adhesive. Kent Automotive uses an epoxy adhesive with a surface modifier in its chemistry (step #7 is not needed with Kent Products).

8. Equalize the twin tubes for epoxy adhesive. Run a bead about 4 inches

before applying the adhesive to the bumper to make sure the repair is getting totally mixed material. 9. Apply adhesive to the bumper and

See Plastic Bumper Repair, Page 42

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

‘Who Pays for What?’ Surveys Illustrate Shops’, Insurers’ Practices for Scanning Vehicles Two recent “Who Pays for What?” surveys offer a glimpse into shops’ and insurers’ practices related to vehicle scanning. The most recent of the quarterly surveys found that of more than 500 shops that responded from across the country, 78 percent said they are paid “always” or “most of the time” to conduct post-repair “health scans” of vehicles by the country’s eighth-largest auto insurers. That’s up significantly from the 64 percent in the same survey a year earlier.

There was an even bigger jump in the percentage of shops reporting they are being paid regularly for prerepair vehicle scans. Though the per-

centage being paid regularly is a bit lower (71 percent) than those reporting being paid for post-repair scans, it is still up 20 percentage points over a year earlier. A “Who Pays for What?” survey earlier this past spring found that fewer than 3 percent of shops said they are not scanning vehicles at all. There are four “Who Pays for What?” surveys per year, each focusing on different aspects of the collision repair process. The surveys are conducted by CRASH Network and Mike Anderson of Collision Advice. The current survey, which asks shops about their billing practices—and insurer payment practices—related to aluminum repair and various shop supplies, is open throughout October. Shops can go to https://www.crash network.com/collisionadvice to take the current survey before Nov. 1. Last spring’s survey found that

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

more than half of shops say they conduct scanning in-house, using their own equipment. Of those, about 1 in 4 charge a flat fee, and just over 40 percent charge one labor hour (or less) at a mechanical labor rate. The remaining 35 percent of shops conducting scanning in-house were all

That particular “Who Pays” survey focused on “not-included” body repair operations. It found, for example, that compared to the same survey in 2016, more shops are seeking (and receiving) payment for the notincluded process of duplicating the OEM texture of seam-sealer.

About 60 percent of shops report being paid “always” or “most of the time” for “replace vapor barrier,” yet the “Who Pays for What?” survey also found that nearly one-third of shops say they’ve never billed for that procedure when it was necessary and completed

over the map—some charging up to two hours at a body labor rate, some charging more than one hour at mechanical labor rate, a few not charging at all and some saying the charges vary by vehicle.

“Although the labor to apply seam sealer on a welded-on or boltedon part may be included (depending on which estimating system you use), the additional labor required to match the OEM appearance is not included

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

and can be very time-consuming for the technician,” Anderson said. Two years ago, more than 50 percent of shops surveyed said they had never charged any of the eight largest national insurers for the additional labor time to match the OEM texture of seam-sealer. The same survey this year showed that number has dropped to about 43–46 percent, meaning more shops are charging for this procedure. Similarly, only 34 percent of shops two years ago said that when they did charge for the procedure, they were paid “always” or “most of the time,” but today, even with more shops billing for it, a higher percentage (40 percent) say they are paid “always” or “most of the time.”

for a collision technician to need to cut an access hole to remove components from a damaged door, for example, or to get the latch open when the hood is damaged.” Anderson believes more shops would seek to be compensated for this labor when it is necessary and performed if they knew, as the survey in April found, that 54 percent of shops that bill for this are paid for the procedure always or most of the time.

York confirmed this. “I was an insurance company staff adjuster for over 20 years, and as a staff adjuster you were instructed not to give if the shop doesn’t ask for it,” he commented with his survey responses.

pleted by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released.

• Clean up old urethane. When glass is removed, there’s often labor required to remove or level the old urethane left behind. The “Who Pays” survey found that more than one-third (37 percent) of shops who bill for it said they are paid always or most of

Of the eight insurers asked about in each “Who Pays for What?” survey, six are more likely to pay their DRP shops for the “replace vapor barrier” procedure, but Progressive and GEICO tend to more regularly pay shops outside their DRP for it

Most shops conduct vehicle scanning in-house, using their own equipment, according to a “Who Pays for What?” survey earlier this year; almost 30 percent use a remote scanning service, but less than 3 percent said they do not scan vehicles at all

“Educating collision repair professionals is a big part of what these surveys are about, and findings like this indicate to me that that’s happening,” Anderson said. Some of the other procedures asked about in the survey were:

• Replace vapor barrier. Anderson said it’s important for shop estimators or repair planners to check OEM procedures to determine whether the vapor barrier is designated as a one-time use part and must therefore be replaced. “This is common if there are airbag pressure sensors in the door,” he said. In either case, labor to R&I or replace vapor barriers is a not-included operation that 3 in 5 shops say they are regularly paid for when it is necessary. About one-third of shops, however, haven’t sought to be paid for this labor.

• Labor to gain collision access. “It is very surprising to me that, in most regions of the country, 25 percent of shops have not sought to be paid for this,” Anderson said. “It has been my experience that it is not uncommon 30

the time for this procedure when it is necessary, yet more than half of shops have not sought payment for it. Four out of five shops that participated in the “Who Pays for What?” survey series reported that they have been able to use the surveys and the results to improve their business. Most (about 75 percent) said they use the surveys as a regular reminder of procedures that are “not-included” in the estimating systems and to train their staff about “not-included” procedures they could be charging for when they are required as part of the repair. About half of participating shops (46 percent) also said they have shared the survey results with insurance representatives, and more than 1 in 10 have occasionally shown the results to vehicle owners. Others have even shared the results with state regulators. The surveys, now in their fourth year, have consistently indicated that whether or not a shop gets paid for various procedures depends largely on whether the shop includes the item on estimates or invoices. One independent shop owner from New

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Shops can take the current “Who Pays for What?” survey (or sign up to be notified about future surveys) at www.crashnetwork.com /collisionadvice. The four different surveys, conducted at one per quarter, each take about 15–25 minutes, and Anderson said they should be com-

On the website, shops also can download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. non-DRP. The reports also include analyses and resources to help shops better understand and use the information presented.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

P HONDA ARIZONA

Chapman Honda Tucson

800-461-6744 520-202-5770 Dept. Hours: M-F 7-6; Sat 8-4 carlkeefe@chapmantucson.com

Earnhardt Honda Avondale

800-350-6537 623-463-4380 Dept. Hours: M-F 7-9; Sat 7-6 gluna@earnhardt.com COLORADO

Honda of Greeley Greeley

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

Mile High Honda Denver

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

Superior Honda Har vey

800-943-4227 504-368-5687

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

Acura of Peoria Peoria

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

Mile High Acura Denver

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

Pikes Peak Acura Colorado Springs

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

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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

TEXAS

Walker Honda

Bankston Honda

McDavid Honda Irving

Alexandria

Lewisville

Ir ving

Dallas

318-448-8255 318-445-6677

800-344-8611 972-219-0021

800-492-4464 972-790-6003

877-466-3272 214-328-3891

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

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

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

Fiesta Honda

Honda of San Marcos

Wholesale Parts Direct

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

Garcia Honda Albuquerque

800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com OKLAHOMA

Don Carlton Honda Tulsa

800-722-2379 918-622-9670 Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

Fowler Honda Nor man

San Antonio

800-727-8705 210-340-0831

Cleo Bay Honda

Howdy Honda

Honda Cars of McKinney

Kelly Grimsley Honda

McKinney

844-453-5594 432-334-6632

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

Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com

Honda of Frisco

Ardmore

580-226-1000 Dept. Hours: M-F 7:30-6; Sat 7:30-2 travis.pierce@fentonmotors.com

LOUISIANA

Frisco

866-442-2711 972-731-3176 Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com

Austin

Dept. Hours: M-F 7-7; Sat 7-3 partsmgr@howdyhonda.com

972-569-4276 972-569-4222

800-234-4441 512-458-2910

877-941-6513 512-443-4300

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

866-369-5376 405-573-5719

Fenton Honda of Ardmore

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

877-253-6229 254-699-2478

Austin

San Marcos

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

Killeen

Rusty Wallis Honda

Odessa

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

Russell & Smith Honda Houston

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

TEXAS

UTAH

Acura of Baton Rouge

Autonation Acura

David McDavid Acura

Baton Rouge

League C i t y

Plano

Salt Lake City

866-733-2861 225-756-6166

800-749-6227 713-371-4700

972-964-6044

800-234-0875 801-323-0492

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

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

Walker Acura

David McDavid Acura

Metairie

Aust i n

800-359-8555 504-465-8555

800-575-3553 512-401-5976

Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com

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

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

Sterling McCall Acura Houston

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

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

Mike Hale Acura Murray

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

OKLAHOMA

Don Carlton Acura of Tulsa Tu l s a

888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Tips for Busy Body Shops with Stacey Phillips

The Power of Peer Groups and Why to Join One Managing a collision repair facility Wikipedia defines a peer today requires an owner to wear many group as both a social group different hats and have a great deal of and a primary group of people who knowledge, according to Jim Keller, have similar interests (homophily) in CEO/president of 1Collision Network age, background or social status. The based in Milwaukee, WI. members of the group are likely to Those roles might include CEO, influence the person’s beliefs and COO, CFO, VP of marketing, VP of behavior. Peer groups also contain human resources, estimator, parts hierarchies and distinct patterns of manager, repair planner and behavior. customer service represenAccording to an article in tative. the New York Times, the av“Regardless of the size erage person knows 600 of the body shop, it’s very people. If only 50 of those difficult for one owner to individuals each influence be an expert in each one of 50 of their friends, that numthese fields,” said Keller Jim Keller, founder ber grows to be 2,500 people during his recent presenta- and CEO/president with whom you can potention for Dave Luehr’s Elite of 1Collision Network tially connect. If 50 of those Body Shop Academy. “We either people influence 50 of their friends, have to rely on people to fill those that number increases to 5,000. positions or we have to know all of With technology, the Internet this information ourselves, which I and social media, we can now conthink is a very daunting and difficult nect to people throughout the world task.” without having to go anywhere. The To address this challenge, espe- more people you know and posicially for a growing body shop, Keller tively influence, the more successful recommends that employees get in- you are likely to be. volved in organizations to build relaWhat is your personal experitionships and become the best they ence with peer groups? can be to help steer the business forward. The first individual who helped The industry veteran has held a me understand the peer group variety of industry jobs over the past 40 years, including paint technician, concept was Bob Goff of Goff’s Coldealer manager, entrepreneur, fran- lision Repair Centers in Wisconsin. chisee, consolidator and most recently, He is a real innovator. His body shop wasn’t far from founder of 1Collision Network. Established in 2012, 1Collision Net- mine, and one day he walked into my work is a network of independent and business and invited me to a body dealer collision repair businesses that shop association meeting. I didn’t rework with insurers and OEs to prop- ally understand the concept of a erly repair collision damaged vehi- body shop association at that time. I thought I was on my own and was cles. During Keller’s presentation going to run my business all by my“The Power of Peer Groups,” he self and make my own decisions. I thought it was really strange shared personal stories that were “game-changers” for him and helped that this guy came in and approached him operate his business more pro- me, but I went anyway. To me, it was fessionally and come up with strate- a little intimidating to go into a room gies to address any challenges that he full of my competitors without even faced. Keller said it all starts by join- knowing them. I remember going that Tuesday night and being in a ing a peer group(s). room full of body shop owners from What is a peer group and why around Wisconsin. They were great is it important to join one? guys and were friendly toward me

Q: A:

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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

and made me feel at home. We saw a great presentation by Blackhawk and learned what the future held for the unibody car. It was very much like our industry is today with all of the technology we are facing. It was a revolutionary time in the industry. From that point on, I didn’t miss a meeting. It was one of the most powerful things that had happened in my professional life. I went from a guy who thought he was going to fix wrecks to a guy who saw there was a much bigger world with a much bigger opportunity than there was within my four walls. Bob got me out of my shop and into seeing what is happening in the world. Over the years, I’ve been involved in many peer groups such as the Dale Carnegie Leadership Training, ARMS management workshop, the Collision Industry Conference

(CIC) Total Loss Committee, Coyote Vision Group and CARA Collision Group, to name a few. The peer groups I joined met regularly, and we learned from one another. We visited one another’s shops and were able to reach the next level by sharing strategic information, data tricks and secrets.

Q: A:

What is the advantage of being part of an association?

I can’t imagine any professional in any industry not being a member of a trade association. I think it’s critically important. We don’t always think of an association as a peer group, but it actually is. I think everyone who is in the industry should belong to a national and a local association. The Alliance of Automotive See Peer Groups, Page 48

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

SEMA Show Goes On

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

with Ed Attanasio

How To Squeeze Maximum Value Out of SEMA 2018 connections, see the latest trends and new products and learn new skills to Autobody News recently discussed help their businesses. It’s where the $43 billion spethe 2018 SEMA Show with SEMA Vice President, Communications and cialty aftermarket industry gathers every year to conduct business. There Events Peter MacGillivray. is no other trade show like His department organit. izes and produces the annual Over the last few years, SEMA Show in Las Vegas our attendance among the and several regional trade automotive repair category shows, international shows has increased significantly. and special events throughWe’ve learned that attenout the year. dees from this category are Peter MacGillivray finding unique value in the Why should a body shop owner/manager or even show via the widespread product a tech /estimator/painter, etc. attend offerings within their “home” category of collision repair, but also SEMA? among the nine other sections of As the world’s leading auto- the show. motive trade event, the SEMA What are some new and excitShow is the best place for automotive ing things that will be taking professionals to connect face-to-face with business partners, make new place at 2018 SEMA? by Ed Attanasio

Q: A:

As the industry changes, so, too, does the SEMA Show. In a lot of ways, a trade show like the SEMA Show is a reflection of the industry it serves. Our collision section includes more manufacturers than ever. This year, we have over 200 exhibitors in the collision repair section alone and more than 250 in related sections like tools and equipment. Overall, we expect more than 2,400 exhibitors at the 2018 SEMA Show. Among the new features at this year’s SEMA Show are features from Hoonigan, Polaris, Kia and Mahindra. We’re also expanding the Monday Vehicle Reveal, which debuted last year, to give media a sneak peek at some of the vehicles from the SEMA Show and an opportunity to hear from the builders. Additionally, the annual SEMA Awards, given to the top trending ve-

hicle models in five categories, will be presented during the SEMA Reveal on Monday. In addition to awards to the top car, truck, 4x4/SUV and sport compact, an award will be presented for the first time to recognize the Powersport Vehicle of the Year. Another big change for this year is the location of the after-party, known as SEMA Ignited, and the SEMA Cruise route. On Friday, after the show closes, all the vehicles from the SEMA Show exit the convention and make their way to SEMA Ignited. Because of construction at the Las Vegas Convention Center, the cruise will have a new route and the afterparty will take place at what is known as the Platinum Lot, which is on the east side of the convention center on Swenson Street, between Desert Inn road and Sierra Vista Drive. See SEMA 2018, Page 44

Start Fixing “The Right Way” IInvertaSpot Inv nvvertaSpot p GTT FFully llly Automatic Full SSpo Spot pot Welderr po D Developed De eveloped p d A According Acccording g to Carr M Manufacturers SSpecifications. p .

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

From the Desk of Mike Anderson with Mike Anderson

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

Are You Upgrading Your Shop’s Customer Service Experience? Or Losing Out to Shops That Are? First, just a quick note to say I appreciate Autobody News offering me an opportunity to share some of my thoughts, opinions and ideas with you here. I know many of you may have only an occasional chance to attend one of my presentations or classes, so this is a way for me to try to offer you some information every month. I’ve been thinking a lot lately about a term I first heard from Mark Fincher at CCC Information Services: “liquid expectations.” What it means, in a nutshell, is that your customers and potential customers aren’t comparing their experience interacting with your shop based solely (or even at all) on their experience with another body shop. They’re actually comparing it with their experience with other types of companies. Think about it: You can book a hotel room or airline ticket any time

of day or night. Order almost anything from Amazon (24/7) and it likely can be delivered in the next day or two—often with free shipping. You can use OpenTable to make a restaurant reservation in the middle or the night, and the large movie theater chains enable you to buy tickets in advance online. Have you picked up a rental car from an airport recently? You likely could walk straight from the plane right to a designated parking space where your car was waiting with the keys in it – with no stop at a rental counter. Are you offering any type of conveniences like this? I’ve been told as many as one-third of consumers want (or even expect) to be able to do business with you outside of business hours. Are you making that possible? Or are you at risk of losing those potential customers to shops that understand the customer experience they

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

want? Can your customers go online in the evening or on weekends and book an appointment for an estimate or to drop off their car? CCC’s “CarWise” is just one of the ways you can enable this. Customers can punch in their zip code to see a listing (and possibly reviews) of shops in their area. But go to the site and you’ll see only some shops have it set up to also allow a customer to click a “Schedule Appointment” button to see what appointment days and times are available and book online. A potential customer might not think to go to the CarWise site if they already know your business. So some of the shops I work with have the CarWise appointment scheduling system embedded right into their own shop website. Do your customers have to be at the shop to sign a paper document to

authorize repairs? Or do you offer them the option of providing an electronic signature remotely? As you walk around a vehicle to check for prior damage, are you still using pens to mark the damage on the car, or are you capturing that information electronically? I know there’s lots of controversy about photo estimating, and I absolutely agree that you can’t write an accurate complete estimate from photos. I also know estimating by photo is not legal in some states. But with those limitations in mind, does providing photo estimating offer you a way to start the process with a potential customer who doesn’t find it convenient to come in for that initial step? Another client of mine has a two-minute video on their shop’s website that walks the customer through the process of shooting See Service Experience, Page 68

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Continued from Page 27

Plastic Bumper Repair

spread the material over the repaired area. 10. Allow the adhesive to dry (15â&#x20AC;&#x201C; 25 minutes depending on the temperature). Sand with 220 grit DA sander.

11. Apply Kent High build primer (has flex added to it), apply a guide coat and fill any low spots.

like to adhere to burnt plastic. It will be necessary to remove the burnt plastic before moving on with the repair.

again with a water-based wax and grease remover.

Next, I will show a two-sided adhesive repair. Follow steps 1â&#x20AC;&#x201C;6 for a two-sided repair.

9A. A surface modifier would be applied at this time. Remember, Kent products have adhesion promoter in their chemistry; therefore, this step is eliminated.

10A. Apply aluminum tape to the 8A. Clean the front and back side 7A. Sand the front and backside of the damaged bumper with an 80 grit DA sander at low speeds. High speeds will melt the plastic (small, shiny black beads), and adhesives do not

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

tape). Make sure that pressure is applied when spreading the adhesive. You want the adhesive to be higher than the surrounding plastic, which will allow you to sand it down flush with the surrounding plastic (thus eliminating the need for additional adhesive). front side of the bumper using a spreader.

11A. After equalizing the twin tubes of epoxy adhesive, apply material to the hole (covered by the aluminum

15A. Apply a thin layer of epoxy finishing adhesive. Sand.

12A Cover the hole with reinforcing tape. I add an additional strip of reinforcing tape at a 45 degree angle to the first strip. This method gives the repair additional strength. Apply adhesive to the repaired area and spread out the material. 14A. Sand the front side of the repair with 220 grit DA and clean again with water-based wax and grease remover.

13A. Remove the aluminum tape from the front side after the adhesive has cured (20–30 minutes)

16A. Apply High Build Kent Primer. You can use the Revo light to cure the primer at this time. It takes about two minutes to fully cure the primer and be ready for final sanding. The bumper is now ready for the paint department. It should be noted that this whole repair, including the High Build Primer, was done in the body technician’s stall. Let’s look at the pros and cons of using adhesives. Pros: • Much easier to learn compared to Nitrogen welding See Plastic Bumper Repair, Page 51

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cial SEMA Show social media accounts.

Continued from Page 38

SEMA 2018

Q: A:

How can attendees get maximum value out of the show?

Don’t just show up; plan in advance. Reading this article is a good start, since it means you’re thinking about what you need to do and how to get around the show. We recommend that attendees attend all four days of the SEMA Show. One badge allows access to each day of the event, so it’s actually the most economical. Aside from not having to rush through the show floor, attending every day ensures that you won’t miss a single thing. Every day features new events, conferences and networking opportunities. The show provides attendees an overall experience that includes more than 100 educational sessions, most of which are free of charge. The complete list of events is on www.semashow.com. Also, visiting the No. 1 destination at the SEMA Show, the New Products Showcase, is essential because it is where an attendee can see the hottest products hitting the aftermarket. In addition, we have worldclass education (visit www.sema show.com/education) and networking events that attendees can benefit from. What are some tips on how to cover as much territory at the show as possible?

The online floorplan (www .semashow.com/floorplan) is a great tool that an attendee can use to identify where exhibitors and features are located in order create a plan to navigate the show. The official SEMA Show Mobile App enables you to create a schedule, gives you access to the floorplan and helps you locate exhibitors and browse educations session, networking events and conferences before and during the show. Attendees can also stay up to date with the latest SEMA Show happenings by reading SEMA eNews each week and by following the offi-

AUTOBODY

Q: A:

What are some tips for surviving the show?

With more than 1 million net square feet of booth space at the SEMA Show, a comfortable pair of shoes is essential, as is having liquids with you at all times to remain hydrated. Items like business cards, hand sanitizer, mints and a bag to carry them in will make networking a comfortable experience. We have sectionalized the show into 10 business categories. Work the section where you have the most interest first, and then move on to other areas. Also extremely essential is being familiar with the location of amenities such as food, restrooms and pickup locations for transportation services. Given the Gold Lot’s unavailability due to construction, parking at the 2018 SEMA Show will be even more scarce, so knowing where taxi drop-off spots are located will be valuable. Using the Las Vegas Monorail is another great option to travel to and from the show. The monorail is fast and makes multiple stops, many of which are within walking distance to most hotels. How can attendees follow up once they get back from the show and get even more value from the event?

One easy way to follow up with manufacturers of the hottest products to hit the market is to use the scanners at the New Products Showcase to create a list of all the products you’re interested in. The list, which will be provided to you when you return your scanner, will contain key information to contact those companies. Also, have exhibitors scan your badge when you visit their booth. This will generate a list of companies visited that will be sent via email to the attendee after the SEMA Show. The list will provide access to their personal list of exhibiting companies and their con-

www.autobodynews.com

UPDATED DAILY

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

tact information. Our technology keeps track of your visits and reminds you to follow up. Be sure to also visit the SEMA Association Center in the Grand Lobby to learn more about how you can connect with others in the industry. Face-to-face time is more valuable today than ever before. The SEMA Show is the time to connect with others in the industry quickly and easily. SEMA can help, whether it’s through council events or an association activity. Why is SEMA more valuable than other collision repair-related shows?

The SEMA Show is where the entire automotive aftermarket industry comes together to conduct business, so you’ll learn about crossmarketing opportunities and connect with more people than you will at any other trade show. The SEMA Show also partners with the Society of Collisions Repair Specialists, the leading organization for the collision industry. SCRS holds meetings at the SEMA Show, and

they organize collision-specific seminars and workshops. Their partnership really brings a lot of value for the collision industry. Most important, we don’t try to mimic any other collision repair show; we offer a unique value proposition for all our attendees.

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.?

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.? It’s never too late to register and attend the SEMA Show, but you obviously want to do so early so that your travel and lodging options are vast. Through our partner onPeak, we’ve negotiated travel discounts and secured reduced-rate hotel rooms to make the trip to Las Vegas affordable. A list of available hotels and other travel services for SEMA’s official travel partner is available at www.semashow.com/travel-andlodging.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Media and Publicity for Shops with Ed Attanasio

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

Who Should Be Your #1 Audience for Your Advertising and Marketing? Depending on what part of the country you’re in, most body shops are highly dependent on their insurance partnerships (DRPs). Every once in a while, a shop owner or manager will ask me, “Why do we market to the consumer, when in the end we get most of our work through our DRPs?” It’s a logical question, so what is the answer? Should shops’ advertising and marketing efforts focus more on insurers than customers? Many of them must agree because some large shops are cutting back their marketing budgets and moving away from consumer advertising, such as broadcast, print, collateral, direct mail or various forms of online marketing. Is it a wise move or will it come back to hurt them down the road? Jim Keller, president of 1Collision Network, has heard the same question time and time again. His 45 locations nationwide are always aggressively marketing themselves to their DRPs under his organization’s direction. “We do a significant amount of marketing for our locations in addition to all of our many other programs and have seen positive results by developing unique programs catering to DRPs and agents,” he said. “Through marketing efforts that are specifically designed for both insurers and insurance agents, our shops are more likely to land a new DRP(s) when the opportunity presents itself, which can help drive revenue and the bottom line. Our performance system also enhances shop operations to gain more work from existing DRPs.” Pursuing and attaining OE certifications is another way to attract DRPs because it indicates to the insurer that a shop is committed to repairing vehicles properly and using OE procedures and recommended equipment. Keller said, “This is a huge opportunity for shops to get onboard because now we have four parties involved in the claim procedure: the shop, the customer, the insurance company and the OE car manufacturers. The certifications are becoming

recognized by the insurers, including those that have DRP programs. We make certain to promote our location’s OE certifications and I-CAR Gold Class status on their websites, social media, collateral advertising and other forms of marketing. A body shop with multiple certifications creates an added level of legitimacy and integrity, making that shop more at-

and bringing them donuts is not effective anymore,” Keller said. “We continue to have a strategy with the agents and make sure that we get enough touches per year with them because they’re the front line when it comes to the customers. We focus more on conveying a strong, relevant message through our marketing, and the results have been very positive. We stress

tractive to insurers, DRPs, agents and the consumer. We also believe certifications will aid in recruiting the better technicians to our shops because it ‘raises the bar’ within the industry.” An effective strategy for marketing to insurance agents is beneficial because in the end, a percentage of agencies will make referrals and often are connected to their clients. “At 1Collision Network, we have programs that we use to get in front of the agents and build relationships with them,” Keller said. “The biggest concern for any insurance agent is retaining their customers because they rely on those renewals, along with new customers, each year to grow their business. We believe marketing to agents is a necessary component to a solid marketing [strategy].” In the end, shops must address all parties involved—the consumer, the repairer, the insurer and the OE—when it comes to their marketing, public relations and advertising, Keller explained. “Yes, the OEs are becoming more important now, but the insurance companies aren’t going away. To be successful, we must cater to all parties involved, and to leave any of them out of the loop is short-sighted. Good companies adapt and change as the market changes and continually seek new methods and techniques to increase their visibility,” he said. Interacting with insurance agents remains an effective way to connect with them and harvest referrals, but that approach has changed as well. “Meeting with insurance agents

things like driving safety education, CE classes and the dangers of distracted driving programs, rather than social media messages about how to make the best cookies or what breed of dog is the best to buy. 1Collision has also developed a simple and effective policy retention program for agents that involves making the customer feel special, on behalf of the

“Meeting with insurance agents and bringing them donuts is not effective anymore,” — Jim Keller

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

agent, upon completion of the repairs at the point of delivery at the collision center. This has proved to increase agent loyalty and in turn, referrals.” When it comes to any effective form of marketing, Keller said that it all comes down to conveying your shop integrity and creating brand and name recognition. “When someone gets into an accident and contacts their insurance company, they will often ask about a shop that they’ve seen through the media or various forms of advertising,” he said. “If a shop has a positive, meaningful presence and continually leverages it, customers will inquire about that shop over others for obvious reasons. Having a strategic mixture of marketing and advertising will lend itself to strengthening the relationships with the DRPs. Being on their list is important, but that’s only the first step.”

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Page 34

Peer Groups

Service Providers (AASP), The Society of Collision Repair Specialists (SCRS) and the Automotive Service Association (ASA) are three of the primary national ones I recommend because they have the most events, education and publications available. Look at all three and determine the best fit with your culture. If you don’t have a strong local association in your area, then get involved in your state association or form one of your own. In the mid1980s I formed one in Milwaukee— the Milwaukee Collision Repair Association—because there wasn’t one where I lived. Talking to your peers locally can be really powerful. Now more than ever, I think associations need our support. With autonomous cars coming out, there are issues we are likely going to deal with, such as the legal challenges that will be the result of car accidents. We need to support those associations and organizations that support us. I understand that it can be challenging to make time to do that while running your business, but if you take the time to connect with people, you’ll learn from one another. Every time you go to a meeting outside of your shop, you’re probably going to meet more people in the industry, whether it’s two people or 500. It can be extremely eye-opening and informative.

Q: A:

What is a master mind group?

I think Napoleon Hill explained it best in his book “Think and Grow Rich.” He said a master mind is when one or two people come together in a spirit of harmony. It is believed that when they come together they will engage a third, greater mind that will allow ideas to come to them. Today, a master mind translates to a meeting or conference between two people, such as the way boards

of directors and senior staff get together to do business. The third mind represents the creative energy between two or more people who get together to improve something. A master mind could be two people coming together or a group of 20 trying to figure out the next steps for the group. The bigger the group, the more ideas and opinions you’ll have and the more sharing you’ll do. You’ll find things move faster, decisions get made more accurately and effectively and everyone feels involved in the process. Whether there are two people or 20, if they feel like part of the team, it creates a great synergy for success. The key is understanding that two heads are better than one and can be a really powerful collaboration.

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11) Show respect for the other person’s opinion. Never say, “You are wrong.” 12) If you are wrong, admit it quickly and emphatically. 13) Begin in a friendly manner. 14) Get the other person to say, “Yes, yes.”

Q: A:

How can a performance group be beneficial?

A good performance group will demonstrate how to achieve a higher level of success than you could most likely do by yourself. These types of groups often provide training and coaching and help develop standard operating procedures (SOPs) for your shop. Many performance groups will track data on each shop, whether it’s financial, performance or both. Sometimes they even track marketing as well. You can then learn from analyzing the numbers in the group. Data can be really powerful for business growth, especially when you are sharing the information. Performance groups also offer 20 group-type meetings, purchasing

programs and assist with insurance questions, I-CAR training and OEM certifications.

Q: A:

Are there other groups you recommend taking part in?

There are also non-industry networking groups/organizations such as your local church, the Chamber of Commerce, Rotary, Kiwanis and Business Network International (BNI). Even the school PTA and athletic booster clubs can be good for networking. Overall, I’ve found that the business community can help grow your business after you get integrated in these types of organizations. They are very valuable resources. For more information about 1Collision Network, email info@1collision .net or visit http://1collision.com/ body-shop-partners/.

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Day Job/Night Job

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

with Ed Attanasio

Monte Marrott Hits Sweet Chords With His Custom Guitars As a sales and service tech for the past 12 years at Martin Auto Color— a statewide PPG Platinum jobber with 21 locations—Monte Marrott knows that using the right tools is vital to doing a good job when it comes to painting a car or repairing a vehicle. If you’re using a sub-par piece of equipment, it does not matter how skilled you are. In the end, the finished product isn’t going to cut the mustard. Marrott knows this all too well, and that’s why he stresses quality and craftsmanship when he designs and builds his own line of custom-made electric guitars. Each one is a piece of art, just like a beautifully painted car, which is why Marrott enjoys living and working in both worlds. Marrott, 50, likes to say that he grew up in his family’s backyard shop in Mapleton, UT, and learned

collision repair by jumping in there and doing almost everything himself. “I was just 15 and had been working with my dad for a while when a family friend with a small body shop took me under his wing,” Marrott said. “I became a combo guy and began doing it all—the body work and the paint—which was popular back then before the distinct roles and production lines became more prevalent. I would fix a car from start to finish, and that’s why body shops hired me.” After working in Colorado, Southern California and throughout the Bay Area for body shops of all sizes, Marrott embraced a second career for several years to complement his collision work. “At that time, I was making decent money in construction working primarily on Army bases, but the work was sporadic,” he said. “So, when the

job was done and I was waiting for the next one, I would fill in at local shops and it worked out well. Colli-

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sion repair became my fallback job, and it was easy to get hired because I could do every aspect of the repair and enjoyed doing it.” After working in construction in the Presidio in San Francisco after the 1989 earthquake, Marrott decided to navigate away from being a combo tech and began focusing solely on painting cars. He became a head painter in 1995, and the experience re-ignited his passion for the industry. It eventually led to a job as a sales rep for a jobber in the Bay Area, but for the first few years, he was still painting cars. “I basically became a substitute painter who would step in to help a customer when one of his painters called in sick or was on vacation,” Marrott said. “I told them, ‘I’m your guy,’ and it worked out well because it often led to more sales down the road.”

Looking back at his 30-plus years of experience in different capacities within the automotive paint world, Marrott cites two major changes that have positively impacted the industry. “When waterborne paint came around and everyone started using it in 2007, that was good for everyone— the shops, the employees and the consumer—it was great all around. The

teach them some of our tricks of the trade,” he said. Marrott said that his musical career started even earlier than his years in the backyard body shop. “At 5 [years old], I was playing the piano, but six years later, I dropped it for the guitar,” he said. “When I was 13, I got in my first band called Spur, doing country cover songs. I also played with several other bands in the

technology has also made the process of painting cars easier with camera color-matching systems, sophisticated paint booths and better training overall,” he said. At Martin Auto Color, training painters is now Marrott’s primary role, he explained. “In some cases, I will take a prepper and help him become a painter or work with a veteran painter to learn about the products or refresh his skills. We stress new techniques that maybe they didn’t know about before and

‘90s, including Baxlash (an original rock band) and another cover band named Mr. Meanor that performed songs by Aerosmith, AC/DC, ZZ Top and Metallica, to name a few.” In the beginning, Marrott would purchase old used electric guitars, but it was just a hobby at that point, he said. “I would put a cool paint job on them and then gift them away,” he said. “Then, I met Doug Roomian in 2002 through his nephew, Jake Tropea, and things just took

“At 5 [years old], I was playing the piano, but six years later, I dropped it for the guitar,” — Monte Marrott

off from there. He had been building these incredible guitars since the ‘70s, and I learned a lot about the craft from Doug.” Marrott designed and manufactured more than 20 guitars under the Roomian name until 2005, when he began making them all on his own. Today, Marrott’s custom-made guitars sell for $1,500 to $5,000 and are coveted by top guitarists throughout the world. Johnny Gun, who has played with Eddie Money, Cold Blood and Tommy Castro; Peter Hayes with the Black Rebel Motorcycle Club; and several other local musicians own guitars made by Marrott Custom Guitars. Now receiving his share of accolades for his guitar designs, Marrott is excited about the business’s future, but isn’t thinking about doing it full-time quite yet. “I love making guitars and working at Martin Auto Color,” he said. “I work on them two nights a week. It can take six months to a year to complete one guitar, but it’s great therapy. I have a quiet spot where I can build them, and it’s my sanctuary, so I will be doing this [for] as long as I can.”

Continued from Page 43

Plastic Bumper Repair

• More than one tech can use materials at one time • No retraining if tech leaves • Faster than nitrogen welding • Start-up cost is considerably less than purchasing a Nitrogen Welder system • Materials are readily available • Faster cycle time • Charge out for materials Cons: • A greater chance of failure due to lack of training and not following manufacturers’ recommended procedures • Different material than the plastic • Repairs are very visible on the backside • Cannot repair small side brackets (hold bumper edge to fender and quarter panel • There are some limits to what can be repaired • Cannot charge out for materials Next time, I will show you how to use a plastic welder, hot stapler and a Nitrogen plastic welder.

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Honda Collision Parts Program Sets New Standard by Gary Ledoux

In the earliest days of the collision repair industry, when shop employees needed a replacement part they picked up the phone and called a supplier, quite often an OE dealer. Simple? Yes. Quick? Maybe. Efficient? Not necessarily if the shop needed multiple parts, some possibly hard to find, and had to keep calling until they were found. Starting in the early 1980s and still true today, the fax machine saved time and effort for both shops and parts suppliers. By around 2006, OEConnection was able to do something no one had done before—electronically connect OE dealers with body shops, allowing the two to communicate, the shop to order parts and the OE manufacturers to run a conquest or price-matching programs utilizing the OEC software. This was a win for everyone, including the shop, the dealer, the customer, the OE and the insurance company. Utilizing OEConnection’s CollisionLink® software, American Honda launched its Collision Select conquest program on July 1, 2009. The program ran very well for several years. The program reached its peak around 2016 when the number of transacting body shops reached a plateau and growth had ceased. So, in true Honda fashion, the Collision Marketing Group went “to the spot” to interview dealers and body shops all over the country to see what was going on. Here is what they heard:

• Shops and dealers said, “It is taking way too much time to conquest parts.” In other words, after the estimate had been written using either aftermarket or salvage parts, it then became incumbent upon the OE dealer, using the OEC software, to contact the shop to negotiate the price of certain key OE parts to see if the dealer could change the shop’s mind about what parts to use. Ultimately, this resulted in more parts sales for American Honda and those OEs who followed this model, but it was more work on the part of the dealer and the shop. Plus, dealers were not always consistent using the program, and the number of shops using CollisionLink® was somewhat limited compared to the size of the body shop network. 52

• Shop owners said, “Give me your best price up front and let me make the decision. If I am in the middle of writing an estimate, I will use the OE part if I can. If you have a conquest price, why should I have to wait for a dealer to get back to me when I am ultimately making the decision anyway?”

Now, 10 years later, technology has brought parts procurement to the next level. American Honda is again on the cutting edge as the first OE to use CCC One to promote parts ordering at the time the estimate is written, rather than after the fact, and offers an MSRP or promotional price that is consistent across all participating Honda or Acura dealers. They have also made the program’s execution easier, quicker and seamless. It is already changing the culture of many shops that use it. Here’s how it works: Shops using CCC One with the proper software engaged will be provided a list of parts suppliers for each part needed on an estimate. Depending on which parts suppliers have enrolled in the program and are using the software, the shop may see, for example, an aftermarket bumper cover, salvage bumper cover or an OE bumper cover from multiple OE dealers. In each case, the parts will have a price and availability listed. In the case of the OE part from Honda/Acura, each part number will show the MSRP price and a “Promotional Price” that will be the same no matter what Honda or Acura dealer is listed. Assuming the shop wants the OE part, it is then up to the shop to decide from which dealer to buy the part, depending on availability, the shop’s relationship with the dealer and the final price the shop will pay the dealer for that particular part. The program does not pit one Honda or Acura dealer against the other. The “Promotional Price” is what was referred to in past American Honda programs as the “conquest price,” or the price the shop would

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

charge the insurance company to compete with aftermarket or salvage parts. For example, assume a bumper cover is $400 MSRP and carries a “Promotional Price” of $325. Under Honda’s former conquest program, the dealer would negotiate the price with the shop, which could have been between $400 and $325. This led to inconsistencies, even within a single dealership, depending on the parts sales person dealing with the shop. With American Honda’s new “Collision Parts Promote” program, pricing will be consistent and require less work for all involved. Plus, “Promotional” parts, in most cases, are seen as an alt-OEM part. This helps shops trying to meet a parts-type objective as a DRP. And this business model eliminates the negotiation process, thereby saving both the shop and the dealer time and work. Once the shop has selected the parts they want from their vendor of choice, the order can be placed using a “shopping basket” similar to Amazon .com or other online services. For Honda and Acura dealers, a connection

exists between CCC One and the dealer’s Dealer Management System (DMS), so the order is placed with the dealer electronically. There is no rekeying. The dealer only needs to bill the parts, pull them and ship them— a real time-saver for all. On the backside, each dealer knows what they will pay American Honda for the parts and what their rebate amount will be from Honda for all parts sold in this manner. American Honda’s new “Collision Parts Promote” program was officially launched at the last SEMA show in November 2017. In a July 2018 phone interview, Kirk Adams, assistant national manager for American Honda’s Collision Group, noted, “We ran a pilot program for almost a year before we launched nationally last November, so we proved the concept and knew it would work well. In the intervening nine months, we have enrolled 900 Honda and Acura dealers for this program. That’s about 70 percent of our dealers. About 800 have ‘gone live’ and are currently acSee New Standard, Page 56

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Sherwin-Williams Study Reveals Primary Reason Body Shops Prefer Waterborne Coatings finding is that the technology behind waterborne paint is so superior With the usage of waterborne coatings today that shops are changing for a on the rise, a recent study conducted completely different set of reasons by Sherwin-Williams Automotive Fin- other than because they are required ishes found that quality was the pri- to do so.” mary reason collision repairers favor As a result of the study, Shenk waterborne refinish coatings over tra- said they learned the five key conditional solvent systems. siderations from collision repairers The study was conducted in July, when choosing a new waterborne prior to the company launching its system for their facility. Color new Ultra 9K Waterborne Basecoat match was at the top of the list folSystem the following month. lowed closely by productivity and ease of system use. Price and OEM approvals were also factors in their decision-making process. The number one reason shops aren’t using waterborne coatings, according to the study, is the cost of new equipment. However, more than half of those who currently don’t utilize them said that they plan to do so or at least look into it over the next year. “There’s a reasonably big Courtesy of Sherwin-Williams Automotive Finishes contingent of underinformed “As we prepared to launch our shop owners who have misconcepnew product, we were interested in tions about waterborne systems,” said finding out general user opinions Shenk. about waterborne coatings and what Typically, he said those not using is driving the change to use them,” waterborne basecoats believe they are said Brian Shenk, marketing direc- significantly slower than solvents and tor for Sherwin-Williams Automo- not going to provide the same color tive Finishes. “The extensive market match or durability. They might have survey revealed a number of trends tried it years ago or heard mixed reand information regarding the use views. and increased acceptance of water“It surprises me that people borne systems.” make up their mind one way or anOut of the 250 survey respon- other about waterborne coatings and dents across the United States, the then don’t consider them again,” said majority classified themselves as Shenk. “Today’s products are vastly body shop owners or managers. Sev- different.” enty-seven percent work for or own Some of the recent innovations an independent body shop, and 60 introduced to the market include inpercent have annual revenue of $1.5 creased production, quality of paint million or less. matching, better application equipAccording to the survey, 64 per- ment and supplier training. cent of collision repair shops have “By today’s standards, all shops used waterborne paint within the last should be switching to water,” said year. Greg Weaver, co-owner of Acworth “When we first started manu- Collision in Acworth, GA. “Shops facturing waterborne coatings for need to forget the water-based horror the refinish market, we expected stories. Today’s systems provide betthat most people were going to want ter color match, better speed and are to use them because of changing equal to, or even less, in overall ex[VOC] legislation and wanting to be pense compared to solvent.” ahead of the curve in regard to com“We wanted to ensure our new pliance,” said Shenk. What we’re product could perform in really busy by Stacey Phillips

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

collision shops,” said Shenk. “This research tells us that we’re on the right track. We’ve received an unwavering positive response from our customers, and it gives us confidence that the product is what our customers want.” Sold exclusively through the Sherwin-Williams branch stores in North America, the Ultra 9K system is compact, requiring less than 70 toners and a single reducer. Shenk said the new line was created to provide precise and quick color match to help shops improve cycle time and maximize throughput. It utilizes intuitive Color Retrieval Software and spectrophotometer as well as a wet-on-wet application. It is compliant in national rule and VOCregulated areas and can be used in various climates in high or low humidity. Steve Raines, manager for Acworth Collision, in Acworth, GA, said the shop’s painters love to spray Ultra 9K. “It goes on wet-on-wet so it’s faster than other systems, the color

match is outstanding, and it’s really more production-friendly,” he said. “It even reacts well to humidity, which is something we struggled with using other systems.” “The new Ultra 9K system addresses what is most important to every collision center—productivity and efficiency,” said Rob Mowson, vice president of marketing for Sherwin-Williams Automotive Finishes. “It utilizes the finest speed primers, color basecoat and fast glamour-producing clearcoats. We wanted this system to be a true change for the industry. We re-thought everything to make sure that the entire shop experience is best-in-class.” Shenk said the bottom line is that there are two main considerations for a shop when considering a refinish system: color match and turnaround time, both of which Ultra 9K offers collision repairers. “We’ve been very pleased with our customers’ reaction to the new product,” said Shenk. “It’s fun to connect with customers and introduce a See Sherwin-Williams, Page 56

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Continued from Page 52

New Standard

tive with the program. On the shop side, CCC One is in about 24,000 shops, and most of those shops are connected to at least one Honda or Acura dealer. About 12,000 shops are currently transacting using this program. If a shop does not have CCC One, we have a manual process to help that particular shop participate.” When asked how this will work with Honda’s ProFirst program, Adams noted, “We currently have 1,350 ProFirst shops around the country. Only 41 of them do not use CCC One. That’s a 96 percent penetration rate. It doesn’t get much better than that.” The Tonkin Parts Center, part of the Ron Tonkin dealer group in Portland, OR, handles wholesale parts operations for the 15+ lines of cars sold by the Tonkin group, including Honda and Acura. The center consists of 125,000 square feet carrying $13 million to $15 million in inventory. American Honda chose the Tonkin Parts Center as one of three

pilot dealers for the program. Keith Burtram, senior manager for the center, said, “Honda is one of our fastest-growing lines, and we always take advantage of American Honda’s programs. The Collision Select program from 2009 was alright but not very efficient, so we used it very little. Plus, to make the program work, we had to ask our shops to check the competitors first, then come back to us. The entire transaction was done after the estimate was written and many decisions had been made. Using CCC One and Honda’s new “Collision Parts Promote” program, everything is more efficient for us and the shop. There is no re-keying on our side or the shop side. That saves a shop hours and money. The best part is the shops are using a tool (CCC One) that they are already familiar with, so the learning curve is real short. We have already seen an increase in Honda and Acura parts sales with this program and CCC One.” Jim Kinsherf, vice president of OEM Business Development for CCC, said, “This parts acquisition model started as ‘True Parts’ around 2014 and has morphed into the CCC

Parts Network. We are happy to help enable Honda’s Collision Parts Promote and other OEM programs on our platform.” When asked about the future of the CCC Parts Network and programs such as Honda’s, Kinsherf said, “This technology is very robust and presents many possibilities. A program using a promotional price like Honda’s could be applied geographically, by state for example. Or it could be applied by model year, based on a vehicle’s VIN number. For example, let’s say the same part number bumper cover fits four model years. Ordering that bumper cover for the latest model car may receive a promotional price that is different than a four-year-old vehicle. There are a wide range of possibilities.” Leigh Guarnieri, manager for American Honda’s Collision Group, said, “Due to the complexity of running two programs, we will be sunsetting the Collision Select program, started in July 2009, at the end of 2018. This will leave only the ‘Collision Parts Promote’ program … which is a win-win for everyone. It sets a new standard for the industry.”

Don Carlton ACURA OF TULSA 2118 South Padre Island Drive Corpus Christi, TX 78416

Continued from Page 54

Sherwin-Williams

product that is welcomed by those in the industry who need it. It’s really satisfying to have something so meaningful in the work lives of painters and people who run body shops.” Sherwin-Williams Automotive Finishes manufactures and distributes a complete line of advanced technology paint and coating systems for automotive and fleet refinishing industries. The Automotive Finishes division is part of The Sherwin-Williams Performance Coatings Group, which supplies a broad range of highly engineered solutions in more than 120 countries around the world. Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paints, coatings and related products to professional, industrial, commercial and retail customers.

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Historical Snapshot with John Yoswick

5 Years Ago at NACE, Keynote Speaker Said Industry Was Headed Toward Catastrophe 20 Years Ago in the Collision Repair Industry (October 1998) Jack Gillis of CAPA perhaps best summed up a demonstration of nonOEM parts at the Collision Industry Conference (CIC) in October when he said, “Not one of our better days.” The demonstration, arranged by the CIC Parts and Airbags Committee, involved installing several nonOEM parts, including a hood and fender that bore the CAPA-certified sticker, on an undamaged 1994 Toyota Camry. Fit and other problems with the parts were obvious, and after the demonstration, Gillis said neither of the parts would be listed as certified in the next Certified Automotive Parts Association (CAPA) directory. The fender, he said, had been decertified earlier in the week because of more than 20 complaints, including one the week of the CIC demonstration that was the second

complaint after the manufacturer had supposedly fixed earlier problems with the part.

- Test fits of parts continued at CIC meetings over the next two years; OEM parts generally were found to score higher in attendees’ evaluations of fit and finish, but occasionally non-OEM parts were rated as equal to—and in one case, better than—the OEM. Gillis retired from CAPA earlier this year. 15 Years Ago in the Collision Repair Industry (October 2003) In a special two-year study of the auto body repair industry, the California Department of Consumers Affairs’ Bureau of Automotive Repair (BAR) documented that in nearly half the transactions it studied, consumers were charged for parts and labor they didn’t receive.

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In 2003, Chuck Sulkala of the National Auto Body Council said a study of shop fraud by California regulators was skewed because of its methodology

were not actually supplied or performed. The average dollar amount of overbilling was $811.93. “We’re disturbed by the pattern of problems we found in some shops,” ARIZONA

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said BAR Chief Patrick Dorais.

– As reported in Autobody News. While the “42 percent” statistic received a lot of attention, the National Auto Body Council (NABC) noted (in the article) that the vehicles inspected were not randomly selected among all those repaired in California, but rather were vehicles brought to the BAR by owners concerned about possible fraud. “Considering the way the sample was skewed by the BAR’s methodology, it is more surprising that 57 percent of the repaired vehicles showed no problems at all,” Chuck Sulkala of the NABC said at the time. 10 Years Ago in the Collision Repair Industry (October 2008) The estimating system providers are being very responsive to questions posted on the Database Enhancement ARKANSAS

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Gateway (DEG), according to Aaron Schulenburg, the administrator of the system. The website (degweb.org) is designed to provide a single, simplified way to question labor times or missing or incorrect information in any of the major estimating systems. The DEG, which was created and is jointly operated by SCRS, ASA and AASP, posts and tracks the inquiries and responses. “The information providers are doing a great job of providing strong responses that are useful and informative,” Schulenburg said. “And they are doing it very quickly.” One example: Inquiry No. 713, a concern about the Audatex labor time for a right front side rail reinforcement on a 2007 Mercedes Benz SL 550. Two days after the DEG submitted the inquiry to Audatex, the labor time was increased by more than six hours. Schulenburg said 2–4-day responses by the system providers are not uncommon. But some in the industry have questioned whether such prompt responses will continue if competition

among the estimating system providers is reduced by the proposed merger of CCC Information Services and Mitchell International (CRASH 6/9/08). That’s an issue more than one source told CRASH Network they

In 2013, Mike Anderson offered a keynote address at NACE, warning that efforts to reduce cycle time and severity could push the industry toward a “catastrophe like the Space Shuttle Challenger.”

raised with the Federal Trade Commission (FTC) when the regulator spoke with them during its continuing review of the proposed CCC-Mitchell merger.

– As reported in CRASH Network (www.CrashNetwork.com), October 20, 2008. Schulenburg left the DEG just two months later to become ex-

ecutive director of SCRS. The DEG has now processed more than 12,000 inquiries. CCC and Mitchell called off their merger plans in March of 2009 after a federal district court judge granted a FTC request for a preliminary injunction to halt the merger pending a FTC’s administrative trial that was slated for later that month. 5 Years Ago in the Collision Repair Industry (October 2013) NACE organizers on Friday said it would be about a week before final attendance figures would be announced, and though the number would be down from 16,000 last year, it would meet their projections for this year’s event. The trade show, held in Las Vegas just three weeks before SEMA, included 170 exhibitors, down 28 percent from last year and the fewest since 1985. But the MSO Symposium continued to prove popular, attracting nearly 300 MSO representatives, and exhibitors said they appreciated that the welcome party and a dozen free informational sessions were held on the show floor. Also widely praised was the

opening keynote address by industry trainer and consultant Mike Anderson. Among his messages: A study following the 1986 Space Shuttle Challenger disaster found that a culture at NASA of “relaxing safety standards to meet financial and time constraints” set the stage for that failure. “If we continue to let certain things dictate our industry, we’re going to have a catastrophe like the Space Shuttle Challenger,” Anderson said. In some ways, he said, insurer pressures to cut cycle time have forced the industry to improve. “But if we keep focusing on cycle time and … severity because we’re afraid about the costs being too high, if we start focusing on the wrong things, we’re going to have a catastrophic event just like NASA did,” Anderson said. – As reported in CRASH Network (www.CrashNetwork.com), October 21, 2013. Since 2014, the trade show has been renamed NACE Automechanika and has been held in Detroit, Chicago, Anaheim and Atlanta. It is slated to return to Atlanta in 2019.

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Shop Strategies with Stacey Phillips

Leadership Development, Process-Centered Environment Enable TX Shop’s Business to Grow Courteous, professional and highquality—these are some of the words Leila Bates said customers have used to describe the work provided at Bates Collision Centers. This year, the business received the Baytown Sun Readers’ Choice Award for best body shop for the eighth year in a row. Leila said they were honored to receive the award

ing floors. His ultimate goal was to own a shop of his own. Meanwhile, I was going to college and working part-time when we got married in 1989. A year later, we decided to open our first location in Baytown. We experienced some good growth our first year, so we relocated to a larger facility in 1991, which we currently operate today. We also opened a second location in the neighboring community of Channelview, TX, in 2003.

ters?

Bates Collision Centers established the Community Give Back Program eight years ago

and will continue to work hard to fulfill their mission to be the collision center of choice for customers in the Bay area of Texas. Autobody News recently talked to Leila about Bates Collision Centers and learned about some of the unique ways the company gives back to the community. She also shared how they use a process-centered environment and leadership training to facilitate the business’s growth, retain employees and offer customers exceptional service. What prompted you and your husband, Lee, to open Bates Collision Centers 28 years ago?

Lee had a lot of wrecks while he was in high school; he was in double-digit accidents before he graduated. At some point, his dad told him that if he continued getting into accidents and wrecking his cars, he was going to have to fix them. He went off to college and was doing well, but decided he wanted to focus on something else. He always had an interest in cars and his dad encouraged him to get involved in the automotive industry. Lee ended up working at a dealership in his college town, San Marcos, TX, sweep-

What is your main role and focus at Bates Collision Cen-

My official title is vice president, although as in most small companies, you wear a lot of hats and have to address the different phases of your business. I also handle CFO responsibilities for Bates Collision Centers, and both my husband and I are very involved in marketing efforts and community involvement.

Q: A:

What type of marketing have you found to be beneficial?

When we opened our business, we were operating on a shoestring budget and had to find ways to create awareness about the services we offered. Although we have a pretty good Facebook presence now, we spent a lot of time over the years getting out into the community. I’m on the board of directors with the Baytown Chamber of Commerce, we’re both active in the Chambers of Commerce in the areas where we have our locations, Lee is a Rotarian and we’re big supporters of the Relay for Life. About 15,000 people attend that event every year to raise money for The American Cancer Society. Creating top-of-mind awareness with the local insurance agents has also been a longtime focus of ours, and we’ve done this with creative contests like an annual pumpkin carving contest, offering continuing education classes quarterly at our shops and other fun contests and visits to their offices.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

What are some of the unique ways you have given back to the community?

Baytown is where my husband and I grew up and went to school. All of our friends and family live here. After opening our business, we received sponsorship requests all the time. Eight years ago, we decided to put together a more structured program called the Community Give Back Program. Organizations can now contact us to give to their program year-round, and Bates Collision Centers donates 3 percent of a customer’s repair total to the local nonprofit organization of their choice. Whether the money goes to a school, church, the wetlands center or an upcoming event, the donation is made in the customer’s name. Since launching the program,

we’ve found that it has allowed us to get involved in the community and show our support in a more organized fashion rather than be reactive to every donation request we receive. We are dedicated to making a positive difference in the lives of others by supporting our community and the people who live here. We also give out a responsible parenting award as part of a benevolence program we set up in 1998. Bates Collision Centers presents “new” used vehicles to deserving families every holiday season. Our employees volunteer their time to refurbish a vehicle from each of our centers and fill it with gifts such as toys, gas cards, car seats and food for the family. The vehicles are then presented during a special awards ceremony and holiday reception held in their honor to recognize and reward parents for “responsible parenting.”

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

We feel this program focuses on a parent’s tireless efforts to parent “responsibly” while coping with the daily challenges and hardship of running a household without reliable transportation. The Bates team has refurbished and presented more than 30 vehicles since we first launched the program, and we have seen a real impact in the lives of these families through our gifts of transportation.

ment?

What procedures have you initiated at Bates Collision Centers to help run the business more efficiently?

We’re a direct repair center for a large number of insurance companies. Since we first launched Bates Collision Centers, our goal was to standardize our processes in a way that would allow us to perform well in those DRP programs while meeting the needs of our customers. We’ve spent a lot of time setting up standard operating procedures (SOPs) and developing processes to help organize our business and ensure success. Lee’s dad worked for Exxon and shared a lot of information from a corporate mindset. We began to see that we could put processes in place to help avoid some of the pitfalls in repairs. In the last 10 years, we’ve found that a lot of the things we were doing when we first started out are now buzzwords in the industry: lean thinking, the Toyota way, and adopting a 62

pecially when insurance companies have different processes. We now use checklists as a guide for our team to help keep them on track and hold them accountable for their work. We also use cartoon signage around the shop reminding the staff that their initials on each checklist item is their “promise” that their work has met the Bates standard.

Can you tell us about your company’s new focus on employee development?

Why are these types of programs so important to imple-

First, we truly feel it’s the right thing to do in a community that has supported us for so many years. Second, it’s part of being a good business citizen in the community and doing your part. Third, there is no doubt that it has impacted Bates Collision Centers in a huge way by helping us grow our business and letting the community know that we’re not just a business looking out for ourselves, but one that gets involved and cares. We’ve also found that it has afforded our staff a unique way for them to put the skills they use every day into putting a family back on the road—not just a car back on the road.

process-centered environment (PCE). We were utilizing a lot of those concepts not really knowing what the technical terms were, but we were doing it out of necessity. We’ve also always measured cycle time. We realized early on how it would help us improve customer service, deliver what we say and do

We have a lot of great policies and procedures in place and maintain a rigorous standard of training for employees, but over the last several years we realized we also needed to work on the people side of the business. If employees don’t buy in and believe in our culture and who we are as a company, we’re not going to succeed. We haven’t abandoned the concept of a process-centered environment, but we realize it won’t work on its own. Our new direction over the past five to six years has been to focus more time on leadership and

This is the eighth year in a row that Bates Collision Centers has received the Baytown Sun Readers’ Choice Award for best body shop

it on time. As a grassroots business, we needed every customer who left us to feel like it was what we call “a legendary service experience.” We want our customers to tell family, friends, co-workers and others about our exceptional service and recognize that it’s the only way we will continue to grow our business. We’ve also participated in performance groups over the years through our paint provider, AkzoNobel, as well as a PCE group through the company. Both have been very beneficial.

How has setting up and utilizing these processes been helpful to your business overall?

employee development—what I like to call the “inside-out approach.” As a result, we’ve seen a lot greater success.

How do you stay up-to-date with new concepts at your locations?

We’ve worked with a company for the last several years now called LeadersWay, and that’s what has guided our path through this employee-centered focus and leadership development. We’ve adopted a lot of their timelines and strategies. We have monthly webinars with the owner, Kevin Wolfe, as well as live workshops and training with him and his staff. It has been really helpful! No doubt it takes extra time for staff members to do these things. At first, we didn’t know what the reaction would be from our staff, but they quickly started seeing positive results. One of the concepts we’re currently working on is that your customer’s satisfaction can never be

See Leadership Development, Page 68

If you are a DRP shop performing well on your KPIs and have a good relationship with the insurance companies, that is critical to your long-term success. However, many of the KPIs that are required are a win-win overall regarding cycle time, customer satisfaction and a low supplement rate. All of those have such a positive impact on the customer experience and therefore, a positive impact on the business. We recognized early on that we have humans working for us in a very complex environment in terms of the procedures and guidelines to meet the billing requirements of the insurance companies. We had to develop ways to help our staff with the guidelines, policies and procedures in the industry. There’s a lot to remember and it’s easy to forget some of the steps, es-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Vision, Foresight Help Launch This PBE Jobber by Gary Ledoux

It was the mid-1940s. GIs were home from the war, the U.S. economy was booming and shiny new cars were filling America’s highways—cars that needed gasoline and service work. Only a few blocks from the downtown area in a primarily residential part of Nashua, NH, Vic Chaput opened Vic’s Garage, a Gulf station that also performed service, repairs and provided machine shop service. In typical fashion, the one work stall featured a drive-on pit to facilitate oil changes and other chassis work. Business was good. But in 1951, Vic had a vision that the parts business was the future, and so, being located on Pine Street, Pine Motor Parts was born. For his new business, Vic needed more enclosed business space and less open lot. That meant erecting a new addition to his building. But a customer and friend had a better idea. A local manufacturing company was diversifying and didn’t need all of their building space, which was located only a few blocks away. Parts of that company’s building were physically moved down Pine Street— bricks, mortar, large wooden beams and all—and became the new Pine Motor Parts building. At the time there were only three, and a few years later, four other auto parts jobbers in the entire city—all of them fairly small, family-run operations. All had their customer base, and all co-existed in relative harmony. It was also in 1951 that Vic’s son, Roger Chaput, joined the business and began working the front counter and helping out in the very busy machine shop. Through the 1950s and 1960s, the parts business was good … as was the machine shop business. But by the end of the ‘60s, Roger could sense change in the air. Inevitably, cars would be built better and not consume so many parts at the blistering rate seen in the earlier ‘60s. There was talk in the industry of large, vertically integrated auto parts jobber chains taking over. Large companies were remanufacturing carburetors, starters and alternators faster and cheaper than could be done in their machine shop. Engines were 64

better-built, so engine rebuilding and valve jobs would soon be a thing of the past. Roger looked around the industry, saw how well a local competitor was doing with paint and body supplies, saw a steady increase in the number of body shops in and around town and decided that was the direction his company should take.

There was just one problem. Roger’s father, Vic Chaput, saw no reason to get into the PBE business. He had made his money in the mechanical field, parts business and machine shop business, and he was determined that his son would carry on that tradition. In time, Vic retired, Roger bought his share of the business, and in 1976 Pine Motor Parts got into the PBE business with the Acme line of paint. Traditionally, auto parts jobbers had been selling paint and related products since the 1930s. By the 1970s, PBE jobbers would start to emerge. In fact, for the first time, in 1972 the Automotive Service Industry Association (ASIA) recognized PBE jobbers as a valid entity for the industry. Roger knew he was headed in the right direction. Also in 1976, Roger’s son, Dan Chaput, was fresh out of high school and had taken an interest in the paint side of the business. In fact, he had been hanging around a local body shop where the shop owner was also involved in auto racing. Young Dan was in his element there, fast cars and the smell of paint thinner. The shop owner showed Dan how to lay on a fresh, shiny coat of paint. There was a certain satisfaction that came with a well-painted car, and Dan wanted to learn all he could about body work. Soon, Roger and Dan had “the talk” that many dads and sons have when the dad owns a business. Roger asked Dan if he would get more involved in the business if they went deeper into the PBE business. It seemed like a match made in heaven. In the winter of 1977, Dan (better

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

known as “Mud” because of his propensity to race motorcycles through unpaved fields) took a larger role in his father’s business. They took on the RM paint line, found sources for other related products, abrasives, hand tools and the like, and Pine Motor Parts began a 30-year metamorphosis into a PBE jobber. In a telephone interview, Dan remembered those early days. “At first we were small—not able to buy products direct,” he said. “So, several times a week, I would leave my house early in the morning and drive to the AMREP warehouse in the Boston area, about a 120-mile round trip. I would get back just in time to open the store at 8 a.m. It made for some very long days.” When asked about the difference between the parts business and PBE business, Dan replied, “In many ways, the PBE business has way more potential because we can stretch our business area much wider. In the parts business, shops are calling for parts that need to be installed in a customer’s car within hours. Most repair

customers want to pick up their car at the end of the day. So the geographic space you can cover is limited. However, many PBE products will be purchased today, delivered tomorrow or the next day and consumed maybe days after that. In the parts business, we had to stay in maybe a 10-mile radius of our store. Now we can go south into Massachusetts, east as far as the Atlantic coast of New Hampshire and Massachusetts, north into New Hampshire’s Lakes region and west into New Hampshire’s Monadnock region. We have gone from about a 10-mile radius to about 100 miles. That’s a lot more customers and a lot more business.” As Roger had predicted in the mid-1970s, the auto parts business landscape changed dramatically. Many of Pine’s long-time customers eventually went out of business due to retirements, family issues, etc. The sources for a small mom-and-pop parts store to acquire parts inventory was drying up, and the “big boys” of the industry—Auto Zone, Pep Boys See PBE Jobber, Page 68

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

National Associations with Chasidy Rae Sisk

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

I-CAR Discusses Training, Recognition, Service Enhancements During SCRS Webinar On Wednesday, August 22, the Society of Collision Repair Specialists (SCRS) hosted I-CAR’s Nick Notte for a webinar titled “The ‘Even Better’ I-CAR.” After thanking SCRS and its executive director, Aaron Schulenberg, for the platform and assistance in arranging the webinar, Notte explained that I-CAR’s “true north” is complete, safe and quality repairs, and the reason for the upcoming enhancements is related to the current technical tsunami in the industry. “Complexity of vehicles and the skills bar are rising, but 65 percent of shops are not training. I-CAR’s vision is for EVERY person in the collision repair industry to have the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer,” Notte said. These goals have driven the ex-

pansion of I-CAR’s products and services over the years, enhancing the technical curriculum offered. Notte expressed gratitude to the industry segment advisory councils who have contributed to I-CAR’s goal to continuously improve and be more relevant.

“Independent industry feedback has provided direction to I-CAR’s strategy and program enhancements, and we’ve enjoyed very active industry engagement over the past four years and continuing,” he said. “We’ve had a lot of people weigh in on this, especially collision repair folks.”

He emphasized that I-CAR’s innovations have been driven by industry feedback. “We’ve engaged industry leaders and other people who really understand the industry,” he said. “We’ve also partnered with OEMs to look at the benchmarking they use in their programs, such as how long they certify, the benefits of certification, how many certified technicians they require … The OEMs were very forthcoming. We also talked a lot about how people like to learn and what works. After nearly five years of collecting data, we took that data to our subject matter experts at I-CAR to turn it into something the industry could use that would be meaningful as a standard for collision repair training.” Some of the most common complaints that this research yielded were compiled and addressed in Notte’s

presentation. Complaints on core training included the relevancy of content, redundancy, virtual/online courses being too long and a desire for more hands-on/skills training. Industry professionals also expressed a desire for I-CAR to recognize knowledge and then train to close the gaps instead of defaulting to training. Additional complaints included that the level of training was too low and one person should not hold all the roles. Participants saw a need to simplify the training alliance, include shop equipment training, reduce the complexity of the subscription model and support the overall vision. Looking at I-CAR’s industry knowledge and skills protocol, Notte explained that their program lists the foundational knowledge and skills for every role in the shop for them to be able to do their jobs. “We put a document together that

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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lists all the industry training available for those knowledge and skills, including I-CAR courses as well as OEM, supplier and other courses. This is not an I-CAR document but an industry document, and it’s available on our website,” he said. Notte brought it all together by explaining that a shop wanting to reach Gold Class status begins by recognizing any training that has already been taken (I-CAR, OEM, supplier through alliance). An in-shop knowledge assessment is performed through ProLevel 1, and then training is applied to close the gaps in knowledge. I-CAR will also be doing hands-on skills classes, mostly in the shops, but these can be taken through I-CAR or through a qualified training alliance supplier. Next, an I-CAR assessor will visit the shop annually to conduct an in-shop assessment. The first year, all of the shop’s technicians will be assessed, and in subsequent years, new hires will receive assessments. This annual assessment allows a shop to maintain its Gold Class status. In 2019, I-CAR will launch skills verification, knowledge and

skills protocol and recognition requirements, as well as offer classes in Spanish. Notte shared, “We are raising the bar on training. Platinum Class goes from ProLevel 1 to ProLevel 3, while Gold Class will go from ProLevel 1 to ProLevel 2. To achieve ProLevel 2, 100 percent of structural technicians must be ProLevel 2 as well as 50 percent of the remaining roles, and one person can only hold up to two roles. The renewal dates will kick off with in-shop assessments, and there will be a new shop level requirement for electrical/diagnostics and mechanical courses. The turnover rules will be eliminated, and annual training will be required.” For I-CAR welding training and certification, renewal will be required every three years and can be assessed at the shop to count towards the renewal certification. An aluminum (structural) recognition option will be available for Gold Class. The Road to Gold will end when 2018 concludes. According to Notte, “It wasn’t a destination—t was a means to get to I-CAR Gold Class, and although it

was designed as a 12-month journey, some shops were taking years. That’s unfair to the shops that are committed to training. Those on the Road to Gold only have until the end of this year to finish and achieve Gold Class status.” Notte’s presentation continued with an exploration of how Gold Class status looks now compared to how it will look in 2019 and a discussion of the amount of training needed. “A lot more classes will need to be taken to get to Gold Class in the future, but they will be shorter in duration,” he said. Explaining how I-CAR’s subscription will work, Notte noted that the subscription includes the annual in-shop assessment and unlimited training, as well as turnover protection. However, the turnover protection could be voided if all of the shop’s technicians turned over in one year. The subscription is available for a monthly shop fee of $229 plus $35 per month per technician. Aluminum designation is also available for a small annual fee. Fees are based on each location, meaning multiple shop operators would pay per shop.

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According to Notte, “Gold Class shops will be grandfathered in, but you need to keep training and close gaps to meet the new protocol. Gold Class shops will have 12 months after their in-shop assessment to get to ProLevel 2 in shop. If you aren’t already Gold Class, you need to get to ProLevel 1 to get the Gold Class designation, effective January 2019. Shops in progress should keep training; if you reach Gold Class by the end of 2018, you won’t lose the designation. Notte also shared that I-CAR has more in the works to make things easier for shops, including a new LMS that promises user ease and a better training experience and a sustaining partner program to encourage better engagement of OEMs, insurers and suppliers in recognition of the value they derive from I-CAR’s work. He thanked the many industry supporters that have provided positive feedback on I-CAR’s initiatives, and he encouraged shops interested in becoming Gold Class to call the customer care line to set up an in-shop assessment. Notte’s presentation concluded with a question-and-answer session.

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

Continued from Page 40

Continued from Page 64

and submitting photos for an estimate using a cell phone app that they can download there at the shop’s website. Other shops offer a concierge service that sends an estimator to the customer’s home or work to prepare an estimate, perhaps even outside of traditional work hours. I know shops that use independent appraisers to provide this service on behalf of their shop. The bottom line: We have to provide a much more modern customer service experience, particularly if we don’t want to risk losing the estimated 1-in-3 customers looking to interact with us outside of typical shop hours.

and O’ Reilly’s—were taking over. In July 2017, Pine Motor Parts sent out a letter to all its existing wholesale parts accounts announcing that, after 61 years, Pine Motor Parts would cease the auto parts business and be a full-blown PBE jobber. “It was a no-brainer,” said Dan’s brother, Dave Chaput. “Our accountant showed us how much money we were making on parts and how much on paint products, and there was no question in my mind where to go.” Dan and Dave exacted something their grandfather never wanted to do—turn his Gulf station into a paint store. One of the auto parts products that consumed a lot of space and had a rapidly dwindling sales volume was exhaust pipes and mufflers. Once the exhaust inventory was gone, there was enough space to reconfigure the store, add another line of paint products and create a showroom. Dave assumed the task of managing the store on a day-to-day basis while Dan made the rounds calling on

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shops using new business practices or repair methods. In fact, we really don’t see a lot of change at all. I think for that [the] next five years or so, things will remain pretty much the same. My only worry is where new technicians will come from to carry the industry. One of our local voctech schools had to cancel their collision repair curriculum last semester for lack of students. That’s sad.” Today, more than 70 years after Vic’s Garage first hung out its shingle on Nashua’s Pine Street, thanks to the vision and foresight of the Chaputs, the family business has morphed several times—each time bringing success with a new business model. Today, it is known as Pine Motor Parts / PBE Specialists. The drive-on pit that once ran down the center of Vic’s work bay is still there, filled in with dirt and covered with a concrete floor holding displays of primer, paint guns and sandpaper. Hopefully, Vic Chaput is looking down on the success of his grandsons with a smile.

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higher than your employee’s satisfaction. As a result, we’re looking at ways to engage all of our employees and help them understand their role and how their job impacts other people as well as making sure they feel valued. A couple of books that have helped us recently include “Whale Done” and “The Ideal Team Player.” They are short reads and I recommend both. New chapters have brought different seasons and challenges, but we’ve been very blessed for sure. People ask me all the time how Lee and I work together so well. We don’t know anything different because we started out that way in the early years of our marriage and made it work. We’re a very good team.

body shops. Pine still maintains a fleet of five delivery trucks running routes on a weekly basis. When asked about his present competition now that they have made the commitment to the PBE business, Dan said, “There is really nobody else in Nashua that goes after the business like we do. There are some jobber salesmen that come into NH from MA, but since our major local competitor sold their store a couple of years ago, we have been doing pretty well.” When asked if Finish Master, one of the largest PBE chains in the country, was a competitor, Dan replied, “They don’t have a brick and mortar store in NH …yet … but we can feel their presence.” Given the current state of the collision industry with so much consolidation and with smaller shops going out of business, Dan was asked how he saw the future for his business. He replied, “We don’t see the large MSOs coming to New England and gobbling up smaller shops. We don’t see smaller shops going out of business around here. We don’t see small shops trying to act like big

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