October 2020 Southwest Edition by Autobody News

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39 YEARS

AUTOBODYNEWS.COM Vol. 38 / Issue 10 / October 2020

Toby Chess: 40-Plus Years of Service to the Industry He Loves

Toby Chess Says SOPs, Industry Training & Networking are Key to Body Shops’ Future Success

by Ed Attanasio

by Stacey Phillips

If you’ve been in the world of body shops for more than a few years, you likely know the name Toby Chess. He’s the smiling bearded guy who brings gifts to people—and no, he’s not Santa Claus. His story all began in a salvage yard and has turned into a fantastic career of teaching, mentoring and helping the collision repair industry and other people on many levels. Chess, 75, has given his life to others through several channels and

Several weeks ago, a local body shop owner asked Toby Chess to help set up a welder to repair an aluminum deck lid on a Mercedes-Benz. When Chess arrived at the facility, he quickly realized the technician didn’t have an understanding of the process to repair the vehicle. As a result, Chess created a Standard Operating Procedure (SOP) for the shop, laying out the steps to get the job done. Since then, Chess has created more than 30 SOPs for the collision repair industry and has been

See Toby Chess, Page 14

Toby has been involved in First Responders’ auto body extraction for many years.

‣ See Nonprofit Finds, Matches Living Organ Donors , Page 37

Toby’s SCRS presentations are often hands -on and use attendees to push concepts.

sharing them with shops across the country. See Training & Networking, Page 18

• Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement, Page 51 • Toby Chess: Best Practice for Pre and Post Scans, Page 51

Expert Predicts Auto Industry Could Take 2 Years to Rebound to Pre-Pandemic Sales Levels

Luxury Vehicle Sales Expected to Rebound from Depression

by Dave Boucher, Detroit Free Press

by Kimberly Hurley, CBT News

It’s going to take at least two years for auto manufacturers to restore the sales and production numbers seen before the start of the coronavirus pandemic, an industry expert told Michigan lawmakers in Lansing on Sept. 2. Despite successful efforts from suppliers and manufacturers to keep their doors open and employees safe, staffing shortages and some overall drop in demand means the industry

The coronavirus pandemic has not been beneficial to most industries, and this definitely includes the auto industry. According to Cox Automotive, the Kelley Blue Book Brand Watch™ reported that for Q2 2020, luxury vehicle sales dropped 35% and hit their lowest level in the past two years. The past couple of years had already seen a decline in luxury sales, with just 34% of consumers considering one, down from 39% in Q3 2018. There are various reasons for this, but for starters, lower-priced non-luxury vehicles are starting to be manufactured with technology previously only featured in luxury vehicles. But the news isn’t grim. Luxury vehicle sales are expected to recover as the circumstances that caused the drop dissipate. One reason luxury brands were highly affected by the pandemic, according to Cox Automotive, is that

The automotive industry did not take as big of a hit as many predicted due to the coronavirus pandemic. But experts and analysts told Michigan lawmakers on Sept. 2 their future is still a bit tenuous. Credit: Eric Seals, Detroit Free Press See Pre-Pandemic Sales, Page 20

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New York City and Los Angeles are the two highest luxury markets in the country. Seeing as those cities have been plagued by coronavirus for months, it is no surprise demand sharply decreased and sales dropped. The good news is as these areas recover in terms of economy and health, sales should too. Dealerships will be open for business, and healthy consumers who are open to shopping again will begin to do so. Inventory levels have also been a struggle for luxury manufacturers due to the massive halt in supply chains that shut down factories for weeks or even months. As you might expect, the best-selling luxury vehicles are currently at the lowest inventory counts. Japanese and German automakers have lagged behind the most, including Mercedes Benz and BMW. This is expected to get a lot better now that factories are back up and running, albeit with a lot more social See Luxury Vehicle Sales, Page 26

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CONTENTS Expert Predicts Auto Industry Could Take 2 Years

‘It Could Have Been Far Worse’: Texas, Local Officials Express Relief After State Avoids Massive Damage ..........................................22 Arizona Drivers Have Another Year to Renew Licenses Under Latest Ducey Order ................8 Done Deal: Asbury Automotive Acquires Park Place Dealerships .................................12 Lithia Acquires Six More Houston-Area Dealerships...................................................16 NABC Recycled Ride Program, Farmers ®

Insurance®, DFW Collision Center of Arlington Donate Refurbished Vehicle to Veteran .....................................................16 NABC Recycled Ride Program, Farmers ®

Insurance®, Toyota of Richardson Donate Refurbished Vehicle to Veteran ........................8 Sherwin-Williams Automotive Finishes Collaborates with Collin College on New Automotive Technogoly Program ...........13 Two More Collision Repair Facilities Achieve

to Rebound to Pre-Pandemic Sales Levels ......1 Filterworks USA Becomes Autotality to

Equipment Industry .......................................48

GM Helping Uber Switch to Electric ...................37 Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

Accudraft Paint Booths.................................... 56

Innovative Tools & Technologies ...................... 35

American Icon Automotive Finishes ................. 14

Kia Motors Wholesale Parts Dealers ................ 45

Audi South Austin ........................................... 41

Malco ............................................................. 27

Audi Wholesale Parts Dealers .......................... 49

Mazda Wholesale Parts Dealers ...................... 50

AutoMart Mitsubishi ........................................ 39

Mirka USA, Inc ................................................ 20

AutoNation Collision Parts ............................... 15

Mitsubishi Wholesale Parts ............................. 47

Big Mike Naughton Ford.................................. 39

MOPAR Wholesale Parts Dealers ..................... 33

Material Pricing ............................................27

Bill Luke Chrysler-Jeep-Dodge-Ram ............... 26

NOROO Paint & Coatings ................................. 19

ProColor Collision to Enter U.S. Market ..............54

BMW of South Austin ...................................... 41

Network 1 Solutions Collision Equipment ........ 13

Restore Crashworthiness with Corrosion

BMW Wholesale Parts Dealers ........................ 46

North Freeway Hyundai ................................... 34

Protection—Keys to a Safe and Proper

Bob Utter Kia .................................................. 36

Part of the Club ............................................... 39

GM Tells Most Salaried Workers to Stay Home Till Next Summer ..........................................54 Honda Agrees to $84M Multistate Settlement for Defective Airbags.....................................52 Intoxicated Tesla Owners Leave Driver’s Seat Empty to Keep Drinking ................................50 Is Your Shop and Insurance Coverage Prepared for A Riot? ......................................42 KIA HECU Recall Issued Following Engine Fires .47 Luxury Vehicle Sales Expected to Rebound from Depression .............................................1 Mercedes GLB250 Recall Issued for Rear Spoilers That Detach .....................................26

P&C Trends in the Age of COVID-19.....................8 PPI: August Shows Upswing in Auto Glass

Attanasio - Are You Defending Your Good Name Online? ...............................................36 Phillips - Preparing & Training the Agents of Change in Future Technology ....................31 Sisk - AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID ........30 Yoswick - Committee Demonstrates How Same Part Can Be Described Differently .......44 Yoswick - Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler .......................34

A Look at Kidney Disease and Ways to Help Toby Chess .............................................6 As Hurricane Season Arrives, CARFAX Provides a Flood of Information .....................55 ASE Survey Finds Adaptions..............................55

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

Collision Repair .............................................40

Car-O-Liner..................................................... 25

Peak Kia ......................................................... 39

SafetyNest™ Helps Drivers Stay Insured ..........12

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

RGI Spray Booth Company .............................. 31

Searles Joins AMi as New President .................26

Chevyland....................................................... 30

Santa Fe Kia ................................................... 26

SEMA Data Co-op Acquires PartsHub ................48

Christopher’s Dodge World .............................. 39

SATA Dan-Am Company .............................. 7, 23

Speaker Highlights Common Challenges

Classic BMW................................................... 37

Schmelz Countryside ...................................... 39

Classifieds ...................................................... 54

Schomp Mazda ............................................... 24

Eagle Abrasives, Inc .......................................... 9

Scoggin-Dickey Parts Center......................10-11

Eckler’s Automotive ........................................ 12

Sherwin-Williams Automotive Finishes ...........4-5

Emich Chevrolet.............................................. 39

Southern Polyurethanes, Inc............................ 17

Equalizer Industries, Inc .................................. 21

Steck Manufacturing Company ....................... 18

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

Stevinson Toyota West .................................... 39

Fisher Acura.................................................... 39

Subaru Wholesale Parts Dealers...................... 40

Fisher Honda .................................................. 39

Symach ............................................................ 6

Flatirons Subaru ............................................. 39

Team PRP ....................................................... 16

Ford Wholesale Parts Dealers .......................... 53

Toyota of Laredo ............................................. 32

Fowler Honda ................................................. 26

Toyota Wholesale Parts Dealers....................... 42

Involved in ADAS Calibration .........................52 Toby Chess Says SOPs, Industry Training & Networking are Key to Body Shops’ Future Success ...............................................1 Toby Chess: 40-Plus Years of Service to the

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Back Quicker Than we Thought.....................48

Designation ..................................................24

Surveys Making a Difference ........................46

AUTOBODY

GM CEO Mary Barra: Demand is Coming

Nonprofit Finds, Matches Living Organ Donors ..37

Anderson - Five Years of Data Shows ‘Who Pays’

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Industry He Loves ...........................................1 Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement ........................51 Toby Chess: Best Practice for Pre and Post Scans....................................................51 Uber Plans to Have an All-Electric Fleet by

CCC AutoClaims Snapshot—August 2020.........55

2030 and a Zero-Emissions One by 2040 .....50

Commercial Fleet Sales Fall 16.8% in August....50

White Named to Women in Automotive Board....43

GM Wholesale Parts Dealers ........................... 43

Tsunami Compressed Air Solutions ................. 22

Will Burgeoning E-Commerce Hurt the Collision

Honda-Acura Wholesale Parts Dealers .......28-29

Volkswagen Wholesale Parts Dealers .............. 50

Hyundai Wholesale Parts Dealers .................... 51

Young Chevrolet .............................................. 38

CREF Supporting COVID Impacted Schools ........51 Daimler AG to Pay $1.5B for Emissions Cheating ..52

Repair Industry? ...........................................38

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A Look at Kidney Disease and Ways to Help Toby Chess by John Huetter, Repairer Driven News

Collision industry trainer, mentor and Hall of Eagles member Toby Chess is among the many Americans suffering severe kidney disease, undergoing dialysis and in need of an organ from a living or deceased donor. Colleagues have started a GoFundMe fundraiser to help Chess. “Toby Chess is known throughout our industry, not only as an amazing instructor with a plethora of technical knowledge, but for his willingness to give of himself, impart his knowledge to others and to ALWAYS do the right thing,” the GoFundMe campaign states. “Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule. “He has spent his life in service of others within our industry, and now has the opportunity to feel the reciprocal support from an industry that appreciates what he has done. Currently, Toby is undergoing dialysis three times a week, for four hours per treatment. This fund represents a way for an industry that is grateful, to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” Contributions can be made here. Chess’ high-profile example might leave collision repairers and other colleagues curious about kidney disease and organ donation as well. The Centers for Disease Control estimates about 15% of U.S. adults have some form of chronic kidney disease, with nearly all unaware they have it. Simple blood and urine tests will tip off doctors to the presence of the condition. The National Institute of Diabetes and Digestive and Kidney Disease said people with high blood pressure, diabetes, heart disease or a family history of kidney failure are demographics that particularly should get tested. The illness leaves excess waste

and water within the body—the damaged kidneys aren’t able to ﬁlter out the substances to the degree a healthy kidney would. Heart disease and stroke risks increase, and more speciﬁc illnesses like anemia or a weakened immune system can arise if the condition worsens.

Toby Chess, right, hugs his wife, Sheila, after winning one of many Society of Collision Repair Specialists honors. Credit: Provided by Aaron Schulenburg/SCRS

Some forms of kidney disease are manageable. However, Chess has Stage 5 chronic kidney disease, which is considered complete kidney failure. Ongoing dialysis is necessary to live. The dialysis process serves as a replacement for failed kidneys by artificially removing waste and water from the body, according to the National Kidney Foundation. Reaching a state of chronic or endstage kidney failure stage leaves a patient on dialysis permanently unless he or she can get a new kidney. According to the American Kidney Fund nonprofit, most patients have to wait three to five years before a kidney is available from someone who has died. Chess’s transplant facility, the University of California, Los Angeles, says the Los Angeles-area wait time is five to 10 years. However, living Americans are permitted to donate a single kidney or a piece of a liver to whomever they choose. “Kidney is much more common,” said Anne Paschke, spokesperson for the United Network for Organ Sharing, the organization that manages the national transplant list. Last year saw “nearly 7,000” kidney transplants related to living donors, she said. Prospective donors should contact the prospective recipient’s transplant center, which will evaluate whether the donor’s blood type

and antibodies are an appropriate match. Though it’s possible some of the preliminary testing can be done in the donor’s home area, prospective donors should still start the process by contacting the recipient’s local transplant center, Paschke said. For Chess, donors would visit www.uclakidneydonor.org and provide his name, Toby Chess, and date of birth, Aug. 6, 1945. About one in ﬁve donors are healthy enough to provide a kidney, according to UCLA. Assuming that threshold is met, blood type and antibody compatibility are the two main variables tested to determine a match, according to Paschke. A person with Type O blood can only receive a Type O person’s kidney. Someone with Type A blood needs either a Type A or Type O person’s kidney, and someone with Type B blood must have a Type B or Type O donor. However, Type AB blood means a recipient can use a kidney from any of the four blood types. Rh factor (the + or – associated

with a blood type) only matters “in some very rare cases,” Paschke said. It’s still possible for a donor to help their intended recipient even if both parties aren’t a match, Paschke said. A donor who isn’t a match for their intended recipient can be set up with a paired exchange. Here’s how it works. Let’s say Person A wants to donate to Person B and Person C wants to donate to Person D, but neither is a match for their recipient. But if A and D are compatible and B and C are compatible, then A donates to D and C donates to B. The two donors have still given a kidney, and the two intended patients received one, so it all works out. The transplant center would set up such a pair donation. The transplant center can sort all the willing donors and their desired recipients and see if a paired match would work. Paschke said some trades even involve more than two pairs of donors to obtain the required results. See Kidney Disease, Page 27

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NABC Recycled Ride® Program, Farmers Insurance®, Toyota of Richardson Donate Refurbished Vehicle to Veteran On Aug. 24, a deserving Dallas veteran experienced a life-changing event—the presentation of a vehicle to provide her independence and the ability to work and take care of her family—thanks to the National Auto Body Council Recycled Rides® program, along with car donor Farmers Insurance® and vehicle repair partner Toyota of Richardson, a Berkshire Hathaway Automotive company.

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The presentation was held at Toyota of Richardson in Richardson, TX, following all state and local safe-distancing and health policies.

NABC™, Farmers Insurance® and Toyota of Richardson presented a refurbished 2010 Toyota Camry to Alisia Dunning, a U.S. Marine Corps veteran. Due to family issues, she has been facing financial issues that have prevented her from replac-

To keep vulnerable seniors out of crowded lines, Gov. Doug Ducey has tacked on an additional year to Arizona drivers’ licenses that expire this year. The executive order signed Sept. 1 defers standard driver’s license renewals that expire between March 1 and Dec. 31, 2020, by one year from their initial expiration date. “Arizona continues to focus on proactive steps to protect the health of our communities and keep our state moving in the right direction,” Ducey said. “Today’s commonsense Executive Order extends the deadline for drivers to renew their licenses by one year, helping reduce the number of in-person MVD visits during the upcoming months and protecting our most vulnerable.” The state’s MVD centers have seen long lines in recent months, prompting the Department of Transportation to apologize for the delays and long response times. AZDOT said they’re currently servicing 13,000 customers via phone or on-

tive. “We thank Farmers Insurance®, our team at Toyota of Richardson and our other partners for making this possible. We hope that Alisia and her family enjoy this NABC Recycled Rides vehicle and the mobility it provides them.”

Mitchell International, a leading provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries, on Sept. 15 released its third quarter Industry Trends Report for 2020. The report shares important data-driven trends impacting the property and casualty industry, along with expert insights, opinions and guidance that can help businesses navigate this year’s new environment. Throughout this quarter’s report, Mitchell experts share insights important to the industry, including new vehicle repair trends based on an analysis of diagnostic scanning data, complications introduced by automobiles with Advanced Driver Assistance Systems (ADAS), the challenges of the insurance industry workforce’s most experienced adjusters thinking about retirement and the impact of COVID-19 on health care employee workers’ compensation claims. Source: Mitchell

“It is an honor to be able to give back to our veterans who have served our country,” — Darren Huggins ing an aging car that needs repairs. The gift of a refurbished vehicle will allow her to take care of her four children as well as her father, who recently had a stroke. Additional partners in the NABC Recycled Rides® presentation include 1-800 Charity Cars, English Color, 3M, PPG and M2 Towing. “It is an honor to be able to give back to our veterans who have served our country,” said Darren Huggins, national collision director for Berkshire Hathaway Automo-

Arizona Drivers Have Another Year to Renew Licenses Under Latest Ducey Order by Cole Lauterbach, The Center Square

P&C Trends in the Age of COVID-19

line daily. The order gives validation to licenses that have expired since March 1 in the eyes of local law enforcement. Still, it’s unclear whether federal law enforcement at the U.S/ Mexico border or TSA would honor it. DHS officials weren’t available to comment on the extension. Drivers may order a new license with an updated expiration date at AZMVDNow.gov after the information is updated Sept. 2. The state charges $25 for license renewal. Licenses are valid for eight years in most cases. Ducey’s office didn’t respond to questions about how much the state would see delayed over the year. The order is the second extension Ducey has executed due to the pandemic. He signed an executive order in March extending licenses by six months to keep seniors and vulnerable residents from potentially exposing themselves to COVID-19. That moratorium was set to expire. We thank The Center Square for reprint permission.

NABC Recycled Rides® is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides® program in 2007, members of the National Auto Body Council have donated more than 2,500 vehicles valued at more than $36 million. Source: NABC

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SafetyNest™ Helps Drivers Stay Insured SafetyNest, a 501(c)(3) nonprofit organization created and funded exclusively by Branch Insurance, will be providing financial assistance to drivers who have suffered from reduced income or loss of work due to the pandemic. SafetyNest and Branch Insurance share the belief that by helping more people become insured, insurance can be more affordable for all. It’s with that belief that SafetyNest announces it intends to pay car insurance premiums, now through the end of 2020, up to $250 per approved application, to prevent the possible financial devastation that can result from being uninsured. The program will help those who are facing financial hardship to stay insured and be better protected from life’s uncertainties. Those affected can apply for financial assistance at safetynest. ourbranch.com if they have recently lost a job, are experiencing reduced income, or had their car insurance cancelled Source: SafetyNest

Done Deal: Asbury Automotive Acquires Park Place Dealerships by Josh Isley, CBT News

After delaying the deal earlier this year, Asbury Automotive Group has completed its acquisition of Park Place Dealerships. The auto retailer announced the move adds approximately $1.7 billion in annual revenue. The company announced the completion of the deal in a press release Aug. 24. “Park Place remains one of the best operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and long-term team members throughout the high growth Dallas/Fort Worth market,” said David Hult, Asbury’s president and CEO. “We are thankful to both the Asbury and Park Place employees who have worked tirelessly over the last few weeks to complete this transaction. The talent in both organizations and the resilience of the dealer model have put us in a position to become a stronger and more diversified company. I am pleased to welcome all our new teammates at Park Place.” Park Place brings several

award-winning luxury dealerships to Asbury in highly coveted locations. The Mercedes-Benz, Lexus, Porsche and Jaguar/Land Rover stores rank among the top 10 stores in the country amongst their franchises.

tailer also acquired the Park Place auction and two collision centers. Park Place Dealerships Founder Ken Schnitzer and CEO Neil Grossman have formed a new automotive group, Avondale Group, which is made up of the dealerships

“Park Place remains one of the best operators of luxury stores in the industry.” — David Hult The move expands the footprint of the Duluth, GA-based retailer with 28% of revenue now coming from the Texas market. It also gives Asbury a higher presence in luxury brands from 36% to around 49% of revenue derived from luxury vehicles. In the acquisition, Asbury will obtain operating assets which include 12 new vehicle franchises. All franchises reside within the Dallas/ Fort Worth market with three Mercedes-Benz, three Sprinter, two Lexus, one Jaguar, one Land Rover, one Porsche and one Volvo. The re-

that were not part of the Asbury deal. “We are proud of the organization we built and the culture we created at Park Place,” Grossman said in a statement to The Dallas Morning News. “Avondale is a new opportunity to build a brand with an experienced team in the best facilities. We will focus on serving clients, supporting the communities where we live and work and fostering our team to learn and grow.” We thank CBT News for reprint permission.

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Sherwin-Williams Automotive Finishes Collaborates with Collin College on New Automotive Technogoly Program Business services experts from the Automotive Finishes division of Sherwin-Williams® recently assisted a team from Collin College in Allen, TX, to build out the school’s new Automotive Technology program. The Sherwin-Williams team worked to design and layout the program’s spray booth, mix room and prep stations, and are supporting the curriculum’s launch by outfitting the facility with Sherwin-Williams Automotive Finishes industry-leading waterborne basecoat system, Ultra 9K™ and FASTLINE® collision repair products. Collin College’s Technical Campus consists of a three-story, 340,000-square foot complex offering up to 7,100 traditional, dual credit and continuing education students pursuing high-wage, high-demand careers in construction, health care, information technology, manufacturing and now automotive. Designed with workforce education as its core function, Collin College features classroom and lab space dedicated to training students in the latest techniques with

the newest industry-standard technology.

For the college’s new Automotive Technology program, Business Services Marketing Manager Judy Folk, National Account Manager Harvey Kulkin and Capital Equipment Sales Manager Tim Schmidt from Sherwin-Williams Automotive Finishes consulted early in the construction phase on the design of the various spaces required for student hands-on education and experience training. The Sherwin-Williams team provided specifications on the design and layout of the program’s spray booth, mix room and prep station and they facilitated the supply

of automotive paint and collision repair products through the local Sherwin-Williams Automotive Finishes sales team and branch location. The Automotive Technology program is designed to prepare students for high-skill, high-demand positions in the automotive industry. Students who complete the program will have the opportunity to gain employment in dealerships, large tire, lube and repair chains, as well as independent shops. In addition to earning stackable certificates, marketable skills and AAS degrees, students will also be prepared to earn industry recognized ASE certifications qualifying them for Maintenance and Light Repair (MLR) or Automotive Service Technician (AST) designation. “Whether it’s remodeling a current shop layout or designing a brand-new one, our highly experienced team of business consultants provide tailored solutions customized to each facility’s unique needs on interior design specifications,

operational and process flow improvements and capital equipment,” said Justin Binns, president and general manager of Sherwin-Williams Automotive Finishes. “We are pleased to be a part of this project as we are focused on supporting and sustaining automotive service and collision repair programs at the technical, vocational and postsecondary levels.” Moving forward, both Folk and Schmidt from Sherwin-Williams will serve on the school’s Technical Advisory Board. The college is hosting an open house event for the public from 9 a.m. to 3 p.m. Sept. 12, where visitors will have the opportunity to explore the facility and learn about select programs. Guided and self-directed tours will include the state-of-the-art learning labs. Per current guidelines, face masks are required, and guests should practice social distancing. Source: Sherwin-Williams

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Toby Chess has never slowed down. Heâ&#x20AC;&#x2122;s taught thousands of body technicians skills that are used every day to fix cars the right wayâ&#x20AC;&#x201D;Tobyâ&#x20AC;&#x2122;s way. Heâ&#x20AC;&#x2122;s been to almost every state in the union, teaching and imparting more useful information than most in this industry will ever know. Chess is well-known as an I-CAR program instructor, training specialist and renowned industry writer, but also for his work with first responders and advocacy for body shops and consumers as well. Now he has encountered another challenge with his battle against end-stage kidney disease. He has been undergoing dialysis for the past 30 months, but hasnâ&#x20AC;&#x2122;t slowed down for even a minute, and is still doing everything he can to continue on his path. Tobyâ&#x20AC;&#x2122;s passion for cars started back in the late 1960s, when he began working on old Porsches. His first project was a 1955 Speedster, and over the years, he became a Porsche expert, restoring several. In 1972, Toby and his father opened a salvage yard in Culver City, CA, specializing in Volkswagens. It had a good run until the Chess family stepped away from the business 21 years later. No longer working for his father, Toby took all her had learned about the collision repair industry and was eager to get out there and take on the world. During the next few decades, Toby worked in several capacities for independent shops and MSOs in the Los Angeles/Orange County area. He built a shop for a Honda dealership, was a regional manager for a chain of nine stores, and even worked for three years as a fraud investigator for an insurance company. In 2004, Toby started working toward becoing an instructor for I-CAR. One year later, he made a life-changing decision to take his classes on the road, when he bought a trailer and a truck and started traveling nationwide to conduct I-CAR welding instruction and testing. In his very first I-CAR welding class, Toby had 26 students, and half of them failed. So, he showed them

how to do it correctly, and realized he really enjoyed it. â&#x20AC;&#x153;I thought, I can take this on the road,â&#x20AC;? Chess said.â&#x20AC;? I could see that there was a real need for MIG and aluminum welding instruction, so I set up the road show, and it grew from there. â&#x20AC;&#x153;I hit Illinois, Indiana, Washington, Georgia, Colorado and all of California during those first years. I went where I was needed and stayed there until everyone knew how to weld. I stayed at a hotel in New Mexico for almost a month because they really needed me there. It started I-CARâ&#x20AC;&#x2122;s mobile programs, which were successful and got great reviews.â&#x20AC;? During the first 40 days of his road trip, Chess tested more than 100 technicians, a number that blew up to approximately 800 during that first year. To date, Chess estimates there are more than 20,000 collision professionals out there whoâ&#x20AC;&#x2122;ve taken his classes. Itâ&#x20AC;&#x2122;s been a busy schedule to say the least, because during much of the time, he has worked a regular job at Kent Automotive, as well as serving on the Society of Collision Repair Specialists board and acting as a featured speaker at Collision Industry Conference and SCRS events. Other impressive things on Tobyâ&#x20AC;&#x2122;s resume include his roles as co-chairman of the Write it Right Committee and an induction into the Hall of Eagles in 2003. Toby loves being able to teach someone and then watch him or her excel, he said. â&#x20AC;&#x153;It all comes down to how to make a good weld each and every time. I am still doing it today, and I never tire of it. I have a lot of good friends who passed one of my tests 10 years ago.â&#x20AC;? His teaching style has never changed, he said. â&#x20AC;&#x153;I learned how to simplify things so that people can absorb the information more easily, and I also try to make it fun. Early on, I could see that I was connecting with them because they could see that I really cared. After a while, I figured that I can teach someone how to weld in 20 minutes. I have a knack for this, plus I love it!â&#x20AC;? After visiting more than 5,000 shops and teaching more than 100,000 students, Toby now has former I-CAR students all over the country. â&#x20AC;&#x153;People come up to me all the

time and tell me that I taught them how to weld. Two weeks ago, a guy walked up to me at a Home Depot and said I trained him to weld many years ago. Yes, it is satisfying.â&#x20AC;? In addition to his teaching and mentoring, Toby is known for stepping up and helping others when in need. He helped an organization called Camp Make a Dream get a new bus, played a big role in three or four different toy drives at Camp Pendleton, and worked to establish a collision repair tech department at Belmont High School in Los Angeles. Known as a leading industry writer/columnist for more than two decades, Chess began writing for Autobody News in 2008, with his â&#x20AC;&#x153;Hey Toby!â&#x20AC;? series, and has written close to 100 articles for the publication since. He covers every aspect of the industry, with a focus on things like paint, parts and procedures. He has also written for Body Shop Business, ABRN and Tire Review, to name a few others. â&#x20AC;&#x153;I started writing in the late 1990s and I like it,â&#x20AC;? Chess said. â&#x20AC;&#x153;I write the way I talk and I try to find topics that

will provide information and tips that can be used in shops.â&#x20AC;? During every step of the way, Tobyâ&#x20AC;&#x2122;s employers have liked his managerial and organizational skills and his â&#x20AC;&#x153;can doâ&#x20AC;? attitude, and itâ&#x20AC;&#x2122;s conveyed succinctly in the text accompanying a recently established GoFundMe account. â&#x20AC;&#x153;Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule,â&#x20AC;? according to the GoFundMe page established to help him. â&#x20AC;&#x153;Toby is undergoing dialysis three times a week, for four hours per treatment. â&#x20AC;&#x153;This fund represents a way for an industry that is grateful to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.â&#x20AC;? As a lifelong giver, Toby was a See Toby Chess, Page 32

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NABC Recycled Ride® Program, Farmers Insurance®, DFW Collision Center of Arlington Donate Refurbished Vehicle to Veteran On Aug. 25, a deserving Dallas veteran experienced a life-changing event—the presentation of a vehicle to provide her independence and the ability to work and take care of her family—thanks to the National Auto Body Council Recycled Rides® program, along with car donor Farmers Insurance® and vehicle repair partner DFW Collision of Arlington, a Berkshire Hathaway Automotive company. The presentation was held at DFW Collision Center in Arlington, TX, following all state and local safe-distancing and health policies. NABC™, Farmers Insurance® and DFW Collision Center presented a refurbished 2016 Toyota Camry to Zita Foto, a U.S. Navy veteran and single mother. Foto joined the Navy as a firefighter to follow in her grandfather’s footsteps. Today, she faces challenges getting to work and taking care of her family due to the poor, unreliable condition of her vehicle. The gift of transportation will allow her to work and take care of her twin 3-year-old boys. “Today we were able to show

our gratitude to a deserving veteran and thank her for her service by presenting her with a refurbished vehicle,” said Darren Huggins, national collision director for Berkshire Hathaway Automotive. “We thank Farmers Insurance®, our team at DFW Collision Center and our other partners for making this possible.” Additional partners in the NABC Recycled Rides® presentation include 1-800 Charity Cars, English Color, 3M, PPG, M2 Towing, Vandergriff Acura, Vandergriff Toyota and Vandergriff Honda. NABC Recycled Rides® is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides® program in 2007, members of the National Auto Body Council have donated more than 2,500 vehicles valued at more than $36 million. Source: NABC

Lithia Acquires Six More Houston-Area Dealerships Lithia Motors, Inc. announced Sept. 1 the purchase of the remaining six John Eagle dealerships located in Houston, TX. The Houston locations are in addition to the John Eagle Dallas/ Austin purchase on Aug. 3. Combined, these 10 Texas dealerships add $1.1 billion in annualized revenues and bring Lithia’s network expansion to over $1.6 billion in revenue thus far in 2020. “The John Eagle acquisitions improve Lithia’s density in the South-Central region and expands our network with a dominant presence in four of the top five largest metropolitan markets in the United States,” said Bryan DeBoer, Lithia Motors president and CEO. Lithia Motors financed these acquisitions using free cash flows and existing on-balance sheet ca-

pacity. “The growth of our physical network expands our ability to provide consumers convenient and affordable new vehicle, used vehicle, service and parts solutions and brand impressions. Together, with our Driveway digital home channel, we are providing personal transportation solutions wherever, whenever and however consumers desire,” said DeBoer. These import franchises complement Lithia’s domestic footprint in Texas to provide a wide range of vehicles to consumers throughout the South-Central region. Lithia has the broadest coast-to-coast automotive retail network, reaching 92% of the U.S. Source: Lithia Motors, Inc.

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Training & Networking “SOPs help walk you through each step of the repair process,” said Chess. “Body shops are going to need more of this in the future.” I recently talked to Chess about his predictions for the industry as a result of COVID-19 and what shops will need to be successful in the future. What changes have you seen at shops since COVID-19 and how do you think this will affect their businesses? Although volume is down in many shops, the good news is that most shop owners I have talked to say their bottom line is better today than it was before. This is because they were forced to make adjustments in the current environment and look at incorporating “lean” practices at their companies. Shops are rethinking how they operated previously and changing their business practices to become more efficient. Afterward, they often say they’ll never go back to doing things the way they did before. The key is to set up a good foundation by creating SOPs throughout your shop, such as picture taking, blueprinting and parts handling. If you don’t have good processes to follow, it doesn’t do your business any good. How can SOPs help shops repair vehicles more effectively and efficiently? When I ask body shops what they do, they usually tell me, “We repair vehicles.” Think about the following: Does a body shop not give a guarantee that the car will behave in the same way as before the repair? Do they not guarantee the car is back to its original length, width and height dimensions? Do they not guarantee the paint for the life of the repairs? Do they not guarantee that it will have the same corrosion protection as the OEM provides? My contention is that’s not repairing a vehicle; it is remanufacturing one. There’s a difference. If you agree that it’s a remanufacturing process, you can look at what OEMs do during that process and put it to use at your shop. OEMs have an SOP for everything; body shops should have them too. When cars come to a facility, technicians ideally fix them the same

way every time. Obviously, each dent on a car is going to be different, yet the process used should be the same. If I were a shop owner, I would have an SOP for every process in the shop to ensure a quality and proper repair. Once those are in place, training becomes key. What will collision repair training look like in the future? It’s going to be a mixture of hands-on and in-person. Like many other training organizations, I-CAR has transitioned the majority of its classes online right now. Typically, shop owners haven’t learned techniques online and many of us aren’t big fans of learning this way, relying on hands-on instruction for most of our careers. We need to recognize that many companies will be offering virtual training in the future and shops will need to adapt. However, when it’s available, I find that hands-on training is extremely beneficial. With the tremendous need for good-quality training, new opportunities are being offered through organizations such as I-CAR, the Automotive Management Institute (AMi), VeriFacts Automotive and VECO Experts. I also think more and more OEM training will be required in the future. Auto manufacturers are starting to take an active role in saying how they want their cars repaired. Just look at the John Eagle case. The insurance company didn’t pay the difference to have the vehicle repaired the proper way and the shop acquiesced and didn’t follow the OEM procedure. Who should the shop have been working for? It’s critical to remember that shops always work for the customer. OEM certification programs continue to grow and are offered by most manufacturers, including Porsche, Audi, Mercedes-Benz and BMW, just to name a few. There is also the University of Toyota, which is called Toyoland. Although certification programs are being offered across the country, I find many shops aren’t taking advantage of these opportunities. If technicians don’t have proper training, they will not be able to repair vehicles based on the OEMs’ specifications. Shops usually find that once they receive training on a procedure, it makes all the difference in the world.

How can shops learn more about the issues affecting the collision repair industry? They have to read! There is so much information offered by industry publications and other information available on the internet but often, people don’t take the time to look at it. Not only do they need to read about the industry, they also need to become part of the industry. I recommend that shop owners and managers get out and network. Industry events, such as the Collision Industry Conference (CIC), offer attendees the opportunity to interact with others and find someone who has a similar way of looking at things. It also allows you to learn new ideas. Many of today’s successful operators have realized the importance of getting out of their environments to see what is going on across the country. I highly encourage shops to join an industry association, such as the Society of Collision Repair Specialists (SCRS.) They offer so many helpful resources and are dedicated to supporting the industry. There is a lot of free information on their website and the membership fee is money well spent.

As a result of your involvement with the March Taylor Foundation and other initiatives to train technicians, what advice can you offer to find qualified workers? In the past, a technician could just open the hood and figure out how to repair the car. That’s no longer the case. As new technology is developed, shops will not only need the proper tools and sophisticated equipment, but they will also need to know how to use it properly to ensure the vehicle is brought back to the car manufacturer’s specifications. One of the biggest challenges shops are starting to have and will continue to have in the future is finding someone who can address the electronics on a car as well as Advanced Driver Assistance Systems (ADAS.) The need for calibration is going to be paramount in the industry and many dealers don’t have the ability to do it. I think mentoring is really important, but we don’t do it enough. Everyone talks about the need to find good talent and train people, but shop owners and managers need to step out of their comfort zone and take the initiative to make a change.

18 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Pre-Pandemic Sales needs to keep adapting and working collaboratively, said Carla Bailo, president and CEO of the Ann Arbor-based Center for Automotive Research. “Everyone is predicting this year about 13 million [vehicles sold], pre-COVID we were about 17 million. We expect it’s going to take another two years, but that’s predicated on a good recovery and continued recovery throughout this year,” Bailo said during a legislative hearing. “Should we have another hit in the fall, we’ll have to adjust those ﬁgures. So about two years to come back to where we were.” Bailo joined Michigan manufacturers and industry authorities in brieﬁng lawmakers on the pandemic’s impact on the automotive world. Every speaker agreed the auto industry’s ability to produce personal protective equipment helped save lives and jobs, but there are real and practical problems that operating

during a pandemic will present for the foreseeable future. The discussion comes as every industry tries to maintain a tenuous grasp on operating during a pandemic. Gov. Gretchen Whitmer is expected to soon allow movie theaters, gyms and similar businesses to start operating again on a limited basis. But she’s repeatedly warned she may need to institute another shutdown if coronavirus case rates spike again. Automotive manufacturing shut down like most industry in March, even as suppliers and large manufacturers looked for ways to produce vital health and safety equipment to fight COVID-19, the disease caused by the coronavirus. Any new halt in production, even a short one, would be crippling, said Brian O’Connell, General Motors regional director of state government relations. “The shutdown had a huge impact on our industry and our company. And we cannot afford a shutdown. We cannot afford a week shutdown,” O’Connell said. Demand for new and used vehi-

cles is down, but Bailo said the drop was not as much as some expected. Although overall vehicle sales were down 25%, sales of pickups are down only 10%. At the same time, there are 20,000 fewer jobs in the automotive industry compared to the second quarter of last year. Michigan’s jobs in the industry are down 18%. Bailo said that’s the lowest level since 2009, during the Great Recession. “There was a lot of doomsday forecasts early on, but the automotive industry has stayed resilient and most of the plants have been able to stay open,” Bailo said. Now GM, Ford Motor Co. and Fiat Chrysler Automobiles say they continue to follow strict testing and quarantine protocols for employees who may be sick or who came in contact with someone who has COVID-19. The UAW, which represents roughly 150,000 workers from the Detroit Three, repeatedly advocated for strict safety practices and heralded the manufacturer’s recent decision to continue testing employees even if they showed no symptoms of

the virus. Workers must be healthy and feel safe to keep production moving, noted John Walsh, president and CEO of the Michigan Manufacturers Association. Manufacturing in the state has rebounded since the start of the pandemic, but as of July there are roughly 69,000 fewer Michiganders employed in manufacturing than the 628,000 who had a job in the industry in July. While working from home or virtually may not substantially disrupt other industries, it’s essentially not an option for most manufacturers, Walsh said. Bailo and others agreed that ﬁnding and keeping an employee who can work on site while handling the daily rigors of life during a pandemic is diﬃcult. “This is going to continue to be an issue. It’s a strain on the manufacturing sustainability and keeping the production line running,” Bailo said. “You don’t have the option to work remotely when you’re on the line. And if you’re a single parent trying to educate children, that’s a

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significant problem.” Although Rep. Vanessa Guerra, D-Saginaw, agreed GM and other companies may have strong safety plans, she questioned whether they’re always followed. Without providing specifics, she said she’s heard from constituents saying some employees are not informed when colleagues are sick and companies are not doing enough to adequately clean sites where infected people may have worked. GM relies on the safety practices every day, requiring masks at all times while on site, O’Connell said. Echoing comments from other speakers, he said the company prioritizes employee health in a way that ensures operations can continue. “We cannot have an outbreak at our plants. It shuts us down. It shuts our suppliers down. The impact is tremendous on us,” O’Connell said. “We have not had a transmission at our plant where people are following safety protocols. Now, have we had employees who had it? Yes, but it was when they were home over the weekend and not working.” Shape Corp. President and

CEO Mark White said his company employees about 3,500 people worldwide, including approximately 1,000 on any given day in Grand Haven. The supplier, which designs and builds components that manage the forces that occur when a vehicle is in a crash, instituted temperature checks and socially distanced work sites for its facilities, White said. The company had 168 poten tial cases of the coronavirus among employees and 16 confirmed cases in Grand Haven, White said. Many were either prevented from entering a facility due to a potential fever or reported symptoms, or left work after reporting symptoms during a shift. White said his company is working with its employees to provide flexibility for those who do have child care and other needs. He also said they provided across the board raises. But he said concerns about child care, catching the coronavirus and “the financial security of the enhanced unemployment benefits” is causing unprecedented absenteeism and turnover. “Our government needs to de-

velop incentives to work, not incentives to stay on unemployment,” White said. “With respect, the incentives created to stay home go beyond physical well-being. They create a false sense of financial well-being, and keep people from coming to work at Shape and other good employers.” Hundreds of thousands of Michigan residents have filed for unemployment since March. Federal legislation provided an additional $600 per week for unemployment benefits in the first months of the pandemic, but those benefits are no longer available. The state recently received federal approval to provide $300 in extra unemployment benefits, but this funding is not expected to last very long. Lawmakers and industry leaders highlighted efforts by many companies to produce personal protective equipment. GM and Ford recently announced they provided the federal government with tens of thousands of ventilators, fulfilling the terms of their contracts to built the live-saving machines that

were in short supply. Ford delivered 50,000 ventilators in conjunction with a $336 million contract. The company also donated 1.5 million masks as part of a free mask initiative led by the governor. GM plans to donate 2 million masks to Michigan public schools. That’s in addition to the 30,000 ventilators it built as part of a $489 million federal contract. Moving forward, companies want to see lawmakers take action to provide some protection from lawsuits. This week, legislators took up bills that would make it harder to sue an employer or producer of protective equipment due to coronavirus concerns. The bills still require several votes before they could make it to the governor. We thank the Detroit Free Press for reprint permission.

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‘It Could Have Been Far Worse’: Texas, Local Officials Express Relief After State Avoids Massive Damage by Julian Aguilar and Cassandra Pollock, The Texas Tribune

Hurricane Laura was downgraded again to a tropical storm early the afternoon of Aug. 27, as Texas federal, state and local officials breathed a sigh of relief that they avoided a direct blow from the storm and offered support for parts of Louisiana dealing with the hurricane’s worst effects. As of early the afternoon of Aug. 27, the city of Orange appeared to be the hardest hit in Texas, Gov. Greg Abbott said during a news conference with the city’s mayor and the county judge. Abbott, U.S. Sens. John Cornyn and Ted Cruz, and Lt. Gov Dan Patrick toured the damage path via helicopter earlier in the day. “You saw more rooftops ripped off, you saw more shingles missing, you saw more trees down [in Orange],” Abbott said. “You saw some roads that were still inundated under water, impassible at this particular time.” Abbott said he anticipated reports of additional heavy damage as residents made their way back home but said Texans should consider themselves lucky that previous dire forecasts didn’t materialize. “As I asked everybody how they feel about working their way through this hurricane everyone pretty much had the same phrase, and that is: ‘We dodged a bullet,’” he said. “It could have been far worse, we were anticipating and it was prognosticated that there would be a storm surge that could very easily exceed 10 feet.” The surge was closer to 3 feet, Abbott said and praised local government leaders for their preparedness. “One thing that saved lives was evacuation orders that were made by local officials. And it was so important for local residents to heed those local warnings,” he said. But Abbott said there is still a considerable amount of work to do in the region in the storm’s aftermath. “While we are grateful that the damage of Hurricane Laura was far less severe than expected, many communities in Southeast Texas have experienced significant damage from this storm—and the State

of Texas is already initiating recovery efforts and ensuring these communities have the support they need to rebuild,” he said in a statement after the news conference. More than 100,000 Texans were out of power in the East Texas counties of Jefferson, Orange and Hardin, local media reported the morning of Aug. 27. Abbott later said that there were more than 160,000 power outages throughout the region by the afternoon. Nearly 8,500 people were provided temporary shelter throughout the state with more than 3,000 hotel rooms used for that purpose. “Those efforts will continue as long as needed,” Abbott said. He said a timeline on when local residents can return home will be determined by local officials. But some areas, including Beaumont and Galveston, lifted their evacuation orders as early as the morning of Aug. 27. The storm moved ashore in Cameron Parish, Louisiana—which borders Texas—around midnight Aug. 27 after almost strengthening into a Category 5 storm, according to the National Hurricane Center. Even before Abbott’s visit to the area, officials there were sounding optimistic that their corner of the state had escaped the worst of the hurricane’s impact. “I’m very pleased to report the damage to Southeast Texas was minimal. We really dodged a bullet,” state Rep. Dade Phelan, a Republican who represents part of Jefferson County and all of neighboring Orange County, tweeted the morning of Aug. 27. “Prayers for our friends in the Southwest Louisiana.” In Newton County, by the border with Louisiana, County Judge Kenneth Weeks said Hurricane Laura knocked down trees, blocking roads and major highways. Some areas received minor flooding and power is out in most of the county as of the morning of Aug. 27. Crews are working to clear the roads. “We got about what we expected and what we geared for,” Weeks said. “Our big push right now is to make sure that all of our citizens can get back to their properties safely and assess damage to their homes.”

Northwest from Newton, San Augustine County officials had been working on having their shelter ready for evacuees. Due to COVID-19, they had to lower the capacity from 250 people to 100. But, so far, they haven’t needed to use it. “Luckily I don’t have much to report. Those last two hours when the storm shifted east gave us a break,” said San Augustine County Judge Jeﬀ Boyd. “Now we are working to get the power on and assess any damage, but it seems that we are going to be fine.” Earlier in the day, Abbott warned Texans not to celebrate too much before officials have a chance to assess the storm’s full impact on the area. “Good news, which is really premature, is that we have no reports of any deaths,” he told Good Morning America the morning of Aug. 27. “The storm continues to sweep through Texas in an unprecedented fashion because it’s not just where the surge came in. [The storm] is

going up north to Jasper and Center, TX, all the way up to Marshall, TX, so in northeast Texas a hurricane is going through there for, as far as I know, the first time ever.” By early afternoon however, Abbott said there were no confirmed reports of fatalities in Texas, which he considered a “miracle.” “It shows that prayers were answered and so many people cared so much about their neighborhood, and that preparation paid off,” he said. After it was clear Harris County escaped widespread damage, County Judge Lina Hidalgo said federal lawmakers needed to act with a sense of urgency on infrastructure projects because next time, she said, the Houston area might not be so lucky. “It shouldn’t take a near miss of a catastrophic hurricane to force our national leaders to recognize the urgency of investing in flood infrastructure, including a coastal barrier for Galveston Bay,” she said See Far Worse, Page 32

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Two More Collision Repair Facilities Achieve VeriFacts Automotive Verified Quality Designation VeriFacts Automotive announced two new repair facilities have earned the Verified Quality (VQ) designation for their consistent performance to the highest of automotive repair standards. The VeriFacts Verified Quality (VQ) program ensures a repair facility has all the resources to achieve a safe and proper repair. The VeriFacts Automotive coaches not only teach and train, but also perform unannounced, on-site visits to verify technician repair skills, methodologies and overall quality processes. Collision repair facilities that achieve the VeriFacts Automotive VQ designation are recognized for their commitment to the highest standards in collision repair. “Ultimate Collision & RV and Tucker Auto Body & Towing have both worked very hard at producing the safest, highest-quality repairs for their customers and deliver excellent service,” said Bill Romaniello, vice president, operations for VeriFacts Automotive. “The VeriFacts Automotive VQ designation is testament to their commitment to excellence and continuous improvement.” Ultimate Collision & RV, Peoria, AZ Tino Escobedo started his shop with his father in 2014. Soon after, they decided to pursue Honda certification. That is when they called on VeriFacts Automotive to provide the training and coaching needed to earn it. “VeriFacts Automotive provides a valuable service to our team,” said Scott Amrine, director for Ultimate Collision and RV. “It’s a big benefit to have a third party provide the training and inspect our repairs for us. They can go a lot further than our production management team can go.” “VeriFacts Automotive has helped us create a weld testing process,” said Escobedo. “This ensures that every weld we make is done correctly and documented. They

have worked with our technicians on using the proper products for corrosion protection to meet each OEMs requirements and proper application techniques. Their coaches even inspect our paint quality. All of this makes our technicians the best that they can be, ensuring the safest, highest-quality repairs for our customers.”

Tino Escobedo, left, co-owner of Ultimate Collision & RV, and partner Sunny Singh, right, who manages the RV business.

Ultimate Collision & RV is Honda and Ford certified and is working on earning more OEM certifications. They achieved the VeriFacts VQ verified status this past June. This means that repeated, unannounced on-site examinations of their equipment, materials, information, procedures and hands-on repair skills have documented above average levels of repair quality. VeriFacts VQ repair facilities are among the most reputable in the collision repair industry. “We have been blessed that despite the COVID-19 situation, we have had plenty of repair work and have been able to keep our entire staff working,” said Amrine. “We have a great reputation in our market, which is so important for a family owned business. Our No. 1 goal is always that every customer leaves our shop totally satisfied.” Tucker Auto Body & Towing, Imperial, CA Jered Tucker’s father, Jerry, started his towing business in 1986 with two trucks. After a while, he thought “Since I am towing all these

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wrecked cars in, I might as well get in the business of fixing them.” Jered Tucker began helping around the shop as early as age 10 and began driving a tow truck at 16. After graduating from high school, Tucker and his father opened a second location in Imperial, their current location. “In 2019, we decided to become a Ford certified repair facility,” said Tucker. “And we wanted a second set of eyes and a different perspective on how repairs are performed, and that is why we decided to partner with VeriFacts Automotive. We always follow the OEM repair procedures, and sometimes those procedures need interpretation. The VeriFacts Automotive coaches and the VeriFacts Technical Support Team help with that. Our coach helped us create a weld destruction station to test and document our welds. “We do a lot of things right, but to stay true to returning vehicles to pre-loss state or better we must pay attention to the details,” said Tucker.

“VeriFacts Automotive helps ensure we attend to all the details. I always believed that to be the best, you should take advantage of coaching when you can get it, because no one knows everything. “We believe in constant improvement, and the training and coaching we receive from the VeriFacts Automotive coaches help us achieve that. The coaches bring a wealth of knowledge to our technicians from their industry experience, their work with the OEMs, as well as from the things they see and learn from the many other shops they visit. “Individualized training is a valuable benefit for our team, and they appreciate it because they know it keeps them on top of their game,” Tucker continued. “We have always had a philosophy that if we take care of our technicians, they will take care of our customers. As a result, our CSI rating has gone from 90 to 99.” Source: VeriFacts Automotive

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Continued from Cover

Luxury Vehicle Sales distancing and sanitary measures implemented since they reopened. It’s been quite understandable consumers have been putting off car buying due to other needs during the pandemic. Consumers are facing an unfortunately high unemployment rate, as well as increased financial anxiety and budgetary restrictions, which is impacting car sales all across the board. However, while concerns will remain for quite some time, it doesn’t all look terrible. Congress is working out another stimulus package, and Americans may see some additional cash in their accounts soon that undoubtedly could push some consumers who are on the luxury/non-luxury fence to splurge for a luxury vehicle. The job market is expected to bounce back as the pandemic tapers off, meaning people will get back to having a regular, reliable paycheck and extra cash in their pockets. Consumers may then start reconsidering more expensive vehicles as opposed

Searles Joins AMi as New President The Board of Trustees at the Automotive Management Institute, the industry’s leading provider of management education for automotive service and collision repair professionals, is pleased to announce Chuck Searles has been selected as the organization’s new president, effective immediately. Searles will succeed Jeff Peevy, who left to return to I-CAR as VP of technical products, programs and services in late July. His career began as a dealer service technician in 1992. During nine years as a service technician, Searles was employed by three different dealers in two states, Alaska and Arizona. This diversity helped expand his skillset and knowledge base, which eventually led to a technical service support position with Nissan North America in 2001. Over the last 19 years, he has served in four different Nissan training roles.

to basic, cost-eﬀective, non-luxury ones. Cox Automotive made sure to include that BMW continues to take the gold medal as the top luxury brand, continuing the trend since Q3 2018, with Audi and Lexus closely behind. Luxury SUVs are still at the forefront of shoppers’ minds, with 62% of people looking for an SUV as opposed to a sedan. As the market recovers and consumers have more money for spending, the hope is that demand will increase for luxury vehicles of all makes and models, which will make sales bounce back to pre-COVID levels and beyond.

Mercedes GLB250 Recall Issued for Rear Spoilers That Detach by David A. Wood, CarComplaints.com

A Mercedes-Benz GLB250 recall is necessary because the rear spoilers above the tailgates may not have been welded correctly and could allow parts of the spoilers to ﬂy oﬀ the SUVs.

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The 2020 Mercedes GLB250 recall includes 11,450 SUVs— 10,644 in the U.S. and 806 in Canada. The upper surface of the rear spoiler might not have been welded correctly or not welded at all to the base part. In the beginning of March, Mercedes launched investigations

based on a complaint describing how the rear spoiler detached from the SUV. The rear spoiler consists of an upper shell and a base part, with the upper surface welded to the base part. Mercedes found the weld connection between the upper surface and base part of the rear spoiler was missing. The supplier determined a production mistake couldn’t be ruled out that caused welding mistakes or missing welds. A driver may notice noise when opening the tailgate, scratches in the coating of the roof in the area of the tailgate or by seeing a spoiler that doesn’t look like it ﬁts correctly. Mercedes dealerships will inspect and if necessary replace the GLB250 rear spoilers once the recall begins Oct. 13. Model year 2020 GLB250 owners may contact Mercedes at 800-367-6372. We thank CarComplaints.com for reprint permission.

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Kidney Disease Even if a pairing scenario doesn’t work with the known donor-recipient pairs on the books, it’s possible that a new pair or even a single, nondirected donor—a person willing to donate a kidney to anyone—will arise to set oﬀ the chain. In the case of the latter, “they will start another link in the chain,” Paschke said. It’s even possible sometimes with certain medical techniques to achieve a transplant using an incompatible donor, but Paschke said “they are not common” at every location. Paschke called the need for donations “really grave.” There’s 110,000 people on the transplant list, and about 80% are waiting for a kidney, she said. As of late the morning of Sept. 2, 92,215 of the 109,215 people on the transplant list needed a kidney. Between January and July, 7,153 deceased and 3,110 living people donated at least one organ. A living organ donation isn’t

for everyone, but Paschke did encourage everyone to sign up to donate after death. “That’s something that we all should do,” she said. Those who didn’t register to be a deceased organ donor through their DMV could sign up through a link on her organization’s website. (It’s all the same database, but there’s no harm in signing up on both if you want—you won’t be double-counted, she said.) You might help more than one person after death. For example, though 7,153 people donated organs after death between January and July, physicians performed 19,013 transplants, according to the U.S. Organ Procurement and Transplantation Network. We thank Repairer Driven News for reprint permission.

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PPI: August Shows Upswing in Auto Glass Material Pricing by Emmariah Holcomb, glassBYTEs.com

Prices for materials used in the auto glass industry showed mostly increases in August, according to recently released Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS). The monthly PPI, which includes auto glass*, increased by 1.4% on a year-over-year basis. The PPI went down by 0.1% from July. According to the BLS, the commodity classiﬁcation “organizes products and services by similarity or material composition, regardless of the industry classiﬁcation of the producing establishment.” Prices for motor vehicle parts went down by 0.1% from August 2019, and in that index, in the commodity grouping, month-over-month prices remained the same. The PPI for molded rubber mechanical goods (automotive) remained the same when com-

pared to its reading last month, and also saw a decrease of 1.4% when compared to last year. Adhesives and sealants saw an increase of 0.2% when compared to last month and saw an increase of 1% from last year. Motor vehicle repair and maintenance, in the services grouping, went up by 0.1% on a month-over-month basis, as well as going up by 2.1% for the year. The cost of private passenger auto insurance services went down by 0.3% when compared to last month, which resulted in a 0.7% increase on a year-over-year basis. Commercial auto insurance went up by 0.4% on a month-over-month basis and was up 3.5% year over year. *This number is for the specialty glass category in August under the commodity category. We thank glassBYTEs.com for reprint permission.

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

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Historical Snapshot with John Yoswick

Associations Assembling 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@gmail.com.

AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID

Southeast News

Although in-person meetings are on sona (your brand) and be authentic. hiatus due to the threat of COVID-19, “With a wealth of experience the Automotivewith Women’s Alliance gained working for numerous ForChasidy Rae Sisk Foundation (AWAF) has not al- tune 500 companies—including her lowed the chaos of 2020 to prevent current role as a senior-level global them from inspiring and enlightening executive for a $4 billion corporamembers. tion, Linda shared some of the wis From increasing the number of dom she’s gained throughout her own virtual professional development of- career journey—including some very with Chasidyand Rae Sisk ferings to awarding scholarships personal early traumas that helped more, AWAF refuses to let any glob- shape the trajectory of her career,” al pandemic stop these motivated la- shared AWAF Professional Developdies from carrying out their mission. ment Committee Co-Chair Sherry Educational content has been Muir Irwin. coordinated with the current situa- Christina McKenna, founder tion in mind. with Chasidy Rae Sisk and president of Bluestone Execu “Faced with an invisible enemy tive Communications, shared advice and a temporarily diminished automo- related to “Power Presenting for the tive marketplace, working remotely or Virtual Presenter” on July 23. being furloughed can play havoc with According to Muir Irwin, “Chrisour daily lives, and eachChasidy programmed tina brought her knowledge, wisdom with Rae Sisk session has been specially selected to and wit to our members, emphasizing address stressors and ease transition that communication is more importto the ‘new normal’ brought on by ant now than ever—and with the inCOVID-19,” said AWAF Profession- creased emphasis on virtual platforms al Development Committee Co-Chair for communication, we must be intenCorinne Smereka. tional in projecting our professionalwith Chasidy Rae Sisk “Tapping into our talented mem- ism and purpose.” bership expertise and experience, McKenna shared “Seven SeAWAF has provided and will contin- crets to a Commanding Virtual Preue to provide a series of free, virtual, sentation”: one-hour sessions via Zoom technology. These sessions designed Rae to Sisk • Use the video option whenever poswithare Chasidy explore new perspectives, gain new sible. skills and promote networking op- • Know that while style matters, conportunities during these challenging tent is king (or queen). • Assume your audience is distracted times,” Smereka continued. The first session in AWAF’s and adjust. withwas Chasidy series, held in May, “Clarity Rae in Sisk • Frame the flattering shot. the Midst of a Crisis: How to Find • Leverage good lighting. Your New Normal” with Dr. Priscil- • Pay attention to audio. la Archangel, president of Archan- • If your event is recorded, scrap the gel and Associates, LLC, followed laptop. by “Difficult Conversations: Open with Chasidy Rae Sisk Heart, Open Mind,” presented June During “Diversity, Equity & In4 by Diane Morrison and Marian clusion 101” on Aug. 13, Cheryl Morlock, co-creators of Expanding Thompson, CEO and founder, and Leadership Capabilities. Margaret Baxter, executive direc On June 25, Linda Taliaferro, tor, of the Center for Automotive founder and CEO of The TEE—The Diversity, Inclusion & Advancement Extra Effort, LLC, discussed “Turn- (CADIA) shared important insights with Ed Attanasio ing Career Trauma into Career Tri- to “help attendees gain an underumph,” sharing six tips: find your standing of the diversity, inclusion voice and use it, know your worth, and equity (DEI) fundamentals rerelationships are everything, focus quired to value differences and be on being, establish your unique per- more inclusive in order to enhance

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personal and organizational contribution,” Muir Irwin said. AWAF is coordinating additional seminars for the remainder of the year and has scheduled a Virtual Annual Holiday Party for Dec. 2, when the association will be joined by Lisa Drake, Ford COO of North America and vice president of global purchasing, as they celebrate the second annual AWAF Awards. During the pandemic, AWAF also awarded seven scholarships. Danielle Didia, a junior at Kettering University in Flint, MI, received a $2,500 scholarship, provided by Warner Norcross + Judd LLP, while Kettering senior Kathryn Cesiel received $2,500 provided by Magna International. Christian Brothers Automotive provided two $2,500 scholarships, received by Eva Muller of Michigan Technological University and Kathryn Mueller from Wayne State Uni-

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versity. AWAF awarded a $2,500 scholarship, in honor of the Automotive Heritage Foundation, to Twanda Dixon, a freshman at Rochester Institute of Technology in New York. The association also sponsored a $2,500 scholarship to Jacqui van Zyl, a freshman at Georgia Institute of Technology in Atlanta, as well as a $2,500 scholarship to Jennifer Mazzola from Vanderbilt University. Additionally, AWAF has gotten creative with ideas to virtually advance and empower young women in STEM by introducing a contest for high school and college students to submit ideas for a STEM Kit to be offered to young women in middle school. For more information about AWAF, visit awafoundation.org.

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with Stacey Phillips

Techs of the Future with Stacey Phillips

Stacey Phillips is an award-winning 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.

Preparing & Training the Agents of Change in Future Technology A few years ago, when people talk- mechanical systems.” She recalls attending the SEMA ed about connected vehicles and self-driving, Elaina Farnsworth said Show in 2016 and listening to John it was perceived as a computer-based Waraniak, vice president of vehicle technology at SEMA. industry. The CEO of The NEXT Educa“He said that many years ago, tion said every person interested in we would be standing up on this stage saying, ‘I have the fastest, intelligent transportation and coolest and loudest car,’” mobility systems was expectsaid Farnsworth. “In the next ed to have computer science 10 years, we are going to be and engineering skills. saying, ‘I have the most conVery quickly, organinected car.’” zations realized the need Anticipating the changes for technicians to repair the infrastructure and technolo- Elaina Farnsworth ahead, Farnsworth set out to create a learning path for gy in these vehicles after a the next generation of workers intercollision. “It is no longer your dad’s auto- ested in being part of the automotive mobile,” said Farnsworth. “Cars are industry. “We need technicians to underevolving where most of all vehicles are built with sensor technology and stand the coolness around these vemove data. As a technician, you will hicles and we need the repairers to need to know a little about sensors, understand this is a very interesting technology, electrical systems and field that pays a lot of money,” she

said. “It doesn’t take a four-year degree.” Instead, she said technicians can learn the necessary skills through targeted education. Farnsworth has focused on certification, training and upskilling programs in intelligent transportation, connected and autonomous vehicles and new mobility systems for more than 20 years. In 2018, she established The NEXT Education, offering certification and credentialing programs related to connected transportation systems, autonomous vehicles and cybersecurity. This year, Farnsworth partnered with Regina Hopper, who has a background in transportation, communications, energy public policy, media and law, and serves as the chief strategy officer. “Our mission is simple: we want to create agents of change who will lead critical new mobility systems

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development and deployment,” explained Farnsworth. The program is based on what she refers to as “MicroTraX,” a hybrid education model that combines self-paced learning with instructor interaction. The online live training is presented by subject-matter experts who are leaders in their respective fields. Each seven- to 10-minute module is built to be a consumable piece of competency-based education to prepare organizations and individuals for the future. Since COVID-19, The NEXT Education has been focusing on online live instruction, but plans to return to in-person seminars in 2021. The learning is geared to a cross-section of the industry and is targeted to both new technicians entering the industry as well as those seeking professional development.

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Fixed Operations Director Recognizes Need for Training in Future Technology About a year ago, Jamie Powers, the fixed operations director at Lujack Auto Group, learned about The NEXT Education’s certification program in autonomous vehicles. He explored what the organization offered and whether it would be a good fit for his technicians at 20 stores in Michigan, Indiana and Iowa. With autonomous features becoming more prevalent in cars today, Powers recognizes the need to have all sensors on a vehicle correctly set when a customer leaves the shop. “We are under a new liability,” he said. “That started waking me up to learn the new processes

that are coming our way.” Four of his body technicians enrolled in two online courses from The NEXT Education, focused on the electronic components included in autonomous vehicles. They have been impressed with the instruction, and the ultimate goal is to earn a certiﬁcation in this area. Eventually, Powers plans to have all of his technicians participate in the educational learning. “There’s always an evolution in the car industry and I think autonomy is the next evolution,” he said. Powers said OEMs are slowly taking control

Farnsworth said students can learn the latest in 5G or satellite technology without being overwhelmed, because the information is presented “one bite at a time.” Content is continually added every quarter, so the information remains current and relevant. “My real passion has been getting the word out about the dire need we have today for technicians as well as what we are going to see in the future,” she said. Since COVID-19, The NEXT Education has experienced an increase in usage, especially due to the short training sessions offered. The team of 20 has found organizations

are reaching out to have technicians learn additional skills during the current downtime in their businesses. “Many have worked in the industry for years and are moving into a new position due to the unforeseen circumstances worldwide as a result of the pandemic,” said Farnsworth. With the collision repair industry evolving, new businesses have been established over the past few years related to predictive analysis and connectivity. Farnsworth said having highly skilled technicians in this new environment encourages workers to remain in the industry and allows shops to stand out from their competitors.

Continued from Page 22

raised bridge levels, increased water-detention capabilities and tightened development regulations, but called on Congress to do more. “We cannot do this alone. Congress should follow our lead in expediting flood projects and they must do everything in their power to fund a coastal barrier for Galveston Bay, now. Time is running out,” she said. Juan Pablo Garnham, Brandon Formby and Matthew Watkins contributed reporting. We thank The Texas Tribune for reprint permission.

Far Worse in a statement. “We’ve seen our vulnerability to flooding time and time again. And we are also vulnerable to storm surge. As the energy capital of the nation, a direct hit to Harris County would have enormous repercussions for our local and national economy and it would be an environmental catastrophe.” Hidalgo said Harris County is acting on the need and has so far

Continued from Page 14

Toby Chess little uncomfortable about the GoFundMe page at first, but now he has decided to accept it graciously. “My wife laid it out to me. Why

not let someone do something for you and not complain about it? I am so grateful for everyone who has donated, but to be honest—I hope I won’t need the money.” GoFundMe account link: https:// www.gofundme.com/f/payitforward -to-toby-chess

over what collision shops will be required to do to repair vehicles properly. A decade ago, customers could take their cars anywhere. Now, they need to be certified by a certain manufacturer. Autonomous vehicles are going to be part of that, according to Powers, and technicians will need to be certified. “If technicians aren’t certified on autonomous vehicles, insurance companies will not ok a customer to bring in an autonomous vehicle to any shop,” he said. “If we’re not on the leading edge of being certified on autonomous vehicles, that is going to be a big part of the business we’ll miss out on.”

“It would be a huge competitive advantage for a small shop to be able to understand the technology changes that are coming both in sensor technology and data transmission,” she added. In addition to the core competencies every technician will still need to repair a vehicle, Farnsworth encourages shop owners and managers to determine where the majority of their business is coming from. “Instead of seeing this as so vast that you want to start over, take into

consideration the skillsets you have and then look at where you want to specialize,” she said. She encourages those in the industry, especially collision repairers, to realize how great the new world will be with these technologies and try to become part of it. “Talking about all of this technology sounds awesome and it is, but when you boil it down to what really makes it work is the people,” said Farnsworth.

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with Erica Schroeder

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler

Shop Showcase

There was activity recently in three its third version of the lawsuit, after legal battles involving body shops, the first two were dismissed. insurance companies, an auto recyPresnell granted GEICO’s mowith Ed Attanasio tion, noting Eaves’ firm failed to file cler and consumers. A U.S. District Court judge in an opposition to GEICO’s fee request. Florida this summer agreed that a law- But Presnell reduced the amount owed suit in which two Mississippi shops are suing Progressive Insurance for tortious interference should be returned to a federal courtEd in the shops’ with Attanasio state. The two shops were part of a larger federal antitrust lawsuit, originally brought against multiple insurers in 2014, consolidated to the Florida court with about two dozen similar suits involving shops in othwith Ed Attanasio er states. Mississippi attorney John Eaves Jr. began The Mississippi shops’ suit signing body shops on to antitrust lawsuits against insurers back in 2013 was largely dismissed earlier this year, but because AutoWorks Collision Specialists in Jackson, MI, and to $30,298—GEICO had sought just Walker Collision Center in Pica- over $40,000—and said only the atwith Ed Attanasio yune, MI, each pointed to a specific torneys, who he said pursued the matcustomer they said they lost because ter “unreasonably and vexatiously,” of steering tactics they say Progres- must pay those fees, not the shops. sive used, dismissal of their portion Another insurer, Nationwide, of the lawsuit was overturned on ap- also got a court victory in August. peal. The Pennsylvania Supreme Court Progressivewith arguedStacey the Florida announced it was deadlocked in its Phillips court should continue to oversee the review of a lower court’s decision lawsuit, but Judge Gregory Presnell that overturned a $21 million bad said it should return to the Mississip- faith verdict against Nationwide repi federal court where it was origi- lated to repairs made by one of the nally filed. In remanding the case to insurer’s “Blue Ribbon” direct reMississippi, however, pair shops. with Presnell StaceyindiPhillips cated that court might choose not to Because the six justices—a sevallow it to proceed because the fed- enth justice didn’t participate in the eral antitrust claims in the original case—were “divided in a fashion lawsuit have been dismissed. That which prevents a majority disposileaves Progressive facing only accu- tion,” the lower court’s decision to sations of violating Mississippi state throw out the 2014 verdict against Nawith Stacey Phillips anti-steering laws. tionwide stands. “Since no federal claims remain, The lawsuit arose after Daniel that court may decide that it is pru- and Sharon Berg took their coldent to decline to exercise jurisdic- lision-damaged 1996 Jeep Grand tion over the state law claims,” Pres- Cherokee to a Nationwide Blue Ribnell said. bon shop. An appraiser there recHe also ruled this summer on ommended the vehicle be declared with Stacey Phillips GEICO’s request that the other a total loss, but the Bergs alleged Mississippi shops—and their at- that Nationwide, without informtorneys—involved in the portion of ing them, had the vehicle moved to the lawsuit that was dismissed cover another Blue Ribbon shop where it GEICO’s legal fees fighting the case was repaired. The Bergs sued over since 2015. That’s when Mississippi the condition of the repaired vehicle, attorney John Eaves Jr.’s firm filed claiming Nationwide knowingly re-

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turned an unsafe vehicle to them as part of an effort to avoid totaling the vehicle. The couple won an $18 million verdict, plus $3 million in attorney fees, but a three-judge Superior Court panel in 2018 overturned that decision. The Bergs appealed to the state’s Supreme Court. Two of those justices issued an opinion in August saying they were in favor of reversing the lower court’s dismissal and reinstating the verdict, while two others said they believe the dismissal should be upheld; the views of the remaining two Pennsylvania Supreme Court justices is not known, but it would seem they were likely split in their views, giving neither side a majority. The justices arguing to reverse the Superior Court’s decision said such verdicts should be overturned only “in the most egregious of cases

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when the trial court has committed reversible error.” The justice’s arguing to uphold the reversal of the verdict said there was some question about the trial judge’s impartiality, pointing to that judge’s “protracted we-the-consumer discourse spanning six pages of the opinion,” in which he appeared to step beyond his “judicial role and align himself personally with the interests of insurance consumers.” In yet another legal matter that could provide a lesson for all employers, an auto recycler is being sued by the U.S. Equal Employment Opportunity Commission (EEOC), which says the company violated federal law by denying an employee’s requests for reasonable accommodations—and then fired her—while she was undergoing chemotherapy for cancer. See Latest in Lawsuits, Page 37

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34 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Are You Defending Your Good Name Online? Your reputation online is always im- spective websites. portant, but during the pandemic it’s You can have amazing empmore vital than ever. loyees, great DRPs and a lot of rewith Everyone can agreeStacey there willPhillips be peat customers, but in the end all fewer cars on the road moving for- you have is your reputation. Compeward, as more and more people will tition is healthy, but sometimes peocontinue to work virtually. ple’s passions make them do things With more competition fighting they wouldn’t normally even consifor less work, a shop’s reputation on- der. with Stacey Phillips line will carry more weight, and that’s In 2008, I began writing for when some shady operators might re- a growing company that provided sort to doing sketchy things, such as “digital privacy solutions.” Their posting fake reviews to disparage the approach was to create a deluge of shop down the street. positive content about an individual In one case, a disgruntled for- or company so any bad things online mer employee with wreaked havoc Phillips on- about them would be bumped down Stacey line for a shop. A body shop owner the ratings. The goal was to get the negative articles, reviews or blogs off Google’s first page, because 75% of all browsers never look past page one, according to Junto Research. During that same period of time, with Stacey Phillips I was also contacted by a company that wanted to pay me well to write fake negative reviews. They had established a ton of bogus emails and online profiles and were targeting companies identified by its clients. When I asked them if it was illegal, they said no, although they admitted it was at with Victoria Antonelli least immoral, so I opted out. Luke Middendorf at WSI Connect in Concord, Luke Middendorf at WSI ConCA, said the best way for a shop to manage its online reputation is to proactively request nect in Concord, CA, protects his positive reviews from its customers clients’ online reputations, including body shops. fired a tech, who had a couple sons “We’ve been implementing rewho were computer whiz kids, and putation-building campaigns for alwith Ed Attanasio they destroyed the owner’s online most all of our clients,” he said. “The reputation within months. It went best way for a business to manage from being just business to being its online reputation is to proactively personal, and the shop in question request positive reviews from its cuslost a significant amount of business tomers. Google and Facebook allow businesses to proactively solicit as a result. In another scenario, a body shop reviews and there are a lot of autowith Gary Ledoux that was producing subpar work hi- mated tools that make the process red a company to defend its reputa- easier to manage. It is against Yelp’s tion by creating a ton of fake reviews policies for businesses to request and posting positive things about the Yelp reviews of their business so it’s shop to push its bad reviews down much more difficult to work with.” the line. Middendorf said you can’t rely In yet another case that occur- on websites like Yelp to monitor rewith Stacey Phillips red recently, two shops in a small views or check for their authenticity. town started manufacturing false “All of the review sites do a negative reviews against each other, very poor job of combating fake but in the end Google black-hatted reviews. Most of the time they avoboth of them and took down their re- id getting involved in any disputes,”

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he said. “They will remove reviews that violate their policies which include personal attacks and explicit language. However, those need to be reported/flagged by someone so that they can be reviewed and considered for removal.” How can you continually monitor your online presence? It’s actually not that difficult. First, perform a search on your shop name in Google, Bing, Angie’s List, Yahoo and other search engines. Delete what you can, including all of your own social networking pages, where you can easily delete your own posts, photos, comments and videos. Ask people who have posted negative things about you to delete their comments, videos and photos. If they refuse to delete a photo, for example, you can usually untag yourself, so that the photo will not appear in any search including your name.

Shop Strategies

If there are news articles, blog posts, videos, photos or other mentions about your shop that are unflattering, you can always request the page’s publisher to remove them. Not everyone will cooperate, but try anyway. If that doesn’t work, or if you can’t get a hold of the people who posted it, push them down in search results by creating positive content. In many cases, the personal approach may be the best way to go. Quietly unfriend people who are apt to post negative things about you, as well as those who have their own damaged reputations to deal with. You don’t want to be linked to anyone with a questionable reputation, because one rotten blueberry can ruin the whole bunch. On a regular basis, check for any email jokes or other items people send to you or share with you onSee Defending Your Name, Page 46

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with Mike Anderson Southwest_Issue_1020.indd 36

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Continued from Page 34

Latest in Lawsuits According to the EEOC’s lawsuit, the employee immediately notified the owner of K&L Auto Crushers in Tyler, TX, when she was diagnosed, and told the company the estimated length of her chemotherapy treatment. Shortly after starting chemotherapy, the owner told the employee, who was K&L’s comptroller, the company had secured temporary help and that she should stay home until she was finished with her chemotherapy. The comptroller asked the owner if she could work from home, and later requested a modified work schedule, while she was undergoing chemotherapy, but K&L denied both

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requests. K&L fired her, but did not tell her she had been terminated until she finished chemotherapy. Such alleged conduct violates the Americans with Disabilities Act (ADA.) The EEOC, which filed suit after first attempting to reach a settlement with K&L, seeks back pay and compensatory and punitive damages, as well as an order barring K&L from engaging in discriminatory treatment in the future. “This comptroller was a hardworking, loyal employee who sought multiple avenues to continue working during her illness and chemotherapy treatment,” said Meaghan Kuelbs, senior trial attorney with the EEOC. “Employers should fairly consider an employee’s accommodation request and deny an accommodation only if it would create an undue hardship.”

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GM Helping Uber Switch to Electric

Nonprofit Finds, Matches Living Organ Donors

General Motors is teaming up with Uber to help accelerate the rideshare industry’s transition to an all-electric, zero-emissions future by offering drivers on Uber’s platform special pricing on the purchase of a new electric vehicle and charging accessories. For current eligible drivers on the Uber platform in the U.S. and Canada, GM will extend the same discount it offers its employees on the purchase of a new 2020 Chevrolet Bolt EV. U.S. drivers will also have access to 20% below MSRP on Bolt EV accessories, including athome charging equipment. Starting in Los Angeles and Denver, well-qualified drivers with Uber Diamond-tier status will also be eligible for special financing through a pilot program with GM Financial. GM data suggests rideshare drivers can experience significantly lower maintenance costs when using a Bolt EV compared to traditional gas-powered vehicles. Drivers also cite in-vehicle technology and the spacious interior as benefits. Source: GM

MatchingDonors is the nation’s largest living organ donor nonprofit organization finding and registering living organ donors for people needing organ transplants in the U.S. Twenty-two people die every day in the U.S. waiting for a kidney transplant, most waiting seven to nine years. The team at MatchingDonors.com is working hard to make sure that does not happen by finding altruistic living organ donors for people needing kidney transplants. Many patients get their transplant through MatchingDonors.com within only six months, or less. In conjunction with various health organizations, MatchingDonors has created a successful PSA campaign to help people realize they can save lives by being a living organ donor, to encourage them to register as an altruistic living organ donor, and to make them realize they can help save the lives of people needing organ transplants by donating other things. For more information. see MatchingDonors.com. Source: MatchingDonors

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Will Burgeoning E-Commerce Hurt the Collision Repair Industry? by Gary Ledoux

For many months prior to March, the collision repair industry had been preoccupied with ADAS systems and autonomous cars and trucks and their effect on the collision repair business. The systems are purported to greatly reduce accidents and mitigate the severity of accidents that do occur. Many in the industry were afraid this would have an ill effect on the collision industry—fewer accidents and less severity means less work for body shops. According to Frank Terlep, industry veteran and author of the recently released book, “Auto Industry Disruption,” only about 21% of the U.S. fleet currently has ADAS capability. If past history is any indication, it could be years before ADAS-equipped cars reach a crucial mass where accident prevention and severity mitigation have a profound impact on the number of cars requiring collision repair. For instance, hydraulic brakes for cars were patented in 1917. Ford would be the last auto manufacturer in the U.S. to adopt the hydraulic system in 1939. What might have a more immediate and long-lasting effect is the burgeoning concept of e-commerce, most lately exacerbated by the COVID-19 pandemic. COVID 19 Hits With the onslaught of the COVID-19 pandemic, people started working from home if their occupation allowed it, or many were furloughed if they couldn’t. Travel came almost to a standstill. Highways were empty, airplanes were empty, restaurants and hotels closed and American business was brought to its knees for weeks. With so many people no longer commuting and/or minimizing their trips, even locally, collision shops reported a decrease in business by 40% to 50% or more. Fortunately, American business is not only resilient but also innovative and resourceful. Despite many consumers staying home, American business is continuing to find new and innovative ways to reach and engage them through online

services and products. Granted, online purchasing is nothing new. It has been growing for years. But the past few months has seen some dramatic changes and increases. Online Shopping Goes Wild QuantuMetric, a digital consulting and intelligence company, estimates an increase of 146% in online retail orders from March through June. Neilsen, an independent consulting company in the UK, notes that in March, more than 600,000 people who had never used e-commerce before ordered some product online. Similar consulting companies listed similar results. One of the commodities most affected is weekly groceries and related products. According to Joshua Schall of J. Schall Consulting, an Austin, TX-based consultant for the consumer packaged goods industry, in 2015, only 15% of those consumers surveyed had bought groceries online. In March, that number had climbed to 55%. A survey conducted by Rakutan Super Logistics, a national leader in e-commerce order fulfillment and freight brokerage, shows a 250% increase in groceries sale volume for the month of March. Other products seeing a sizeable uptick were baby products, medical and cleaning products. Not surprisingly, there was a rise in online orders of alcoholic beverages. Again, this equates to fewer trips to the supermarket and related stores, fewer miles traveled and fewer traffic accidents. Lifting Stay-At-Home Orders May Do Little To Change Customer Behavior According to Rakutan, once stay-at-home orders are lifted, most consumers are more likely to stick to their newly-developed traits of buying products and services online. Those that stopped mall shopping, due to social distancing concerns, and used online shopping instead may opt to stay away from the malls completely. And speaking of malls, they have been dying for years. According to a study done by Credit Suisse and reported in Business Insider Magazine in November 2019, between 20% and

25% of America’s 116,000 shopping malls will be closed by 2022. Note this was announced prior to the pandemic. Experts note not the least of the reasons for the mall’s death-spiral is online purchasing exasperated by stores’ slow adaptation to changing consumer demographics and subsequent buying habits. Fewer malls, less reason to drive to them, fewer traffic accidents. Rakutan also notes “some consumers have invested in fitness equipment to use at home and may never return to a gym. Others have learned how to cut their kids’ hair and may never pay for a professional cut, for as long as their kids will allow it. Many organizations will have also noticed how cost-effective allowing employees to work from home can be. It won’t come as a surprise when the remote working population increases from the current 4.7 million to even double the figure. “The point is, once consumer behaviors change, it’s hard to get back to the old way of doing things. When

these changes in behavior become permanent, shoppers will stick to the e-commerce brands they discovered over the brick and mortar spots they once frequented.” PaySafe, a UK-based company similar to PayPal in the U.S., conducted a survey of more than 8,000 consumers in seven countries. When asked how their spending habits would be impacted in the future, 38% of all surveyed consumers said they plan to do more online shopping next year regardless of the end of social distancing. In the U.S., that number was 49%. Two-thirds (65%) of consumers that plan to shop online more following the conclusion of the pandemic are doing so because they find online more convenient, and 42% of consumers who plan to shop online more say it is more enjoyable. Of those people who said they would not increase or maintain a higher level of online shopping, it was because they already conduct the majority of their shopping online. See Burgeoning E-Commerce, Page 43

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Restore Crashworthiness with Corrosion Protection—Keys to a Safe and Proper Collision Repair by Chasidy Rae Sisk

“Today’s vehicles are highly engineered and not forgiving of imprecise repair processes. When it comes to crashworthiness after the repair, millimeters and milliseconds matter!” according to Scott Peirce, strategic account manager at 3M, during ASA’s Aug. 19 “Webinar Wednesday.”

simple repair, but the OEM procedures tell us the left rail has to be replaced and there are a lot of other major components that could be impacted by this collision. You have to take the rail apart, and it’s going to involve a lot of parts. It becomes a very intrusive repair, but that’s what it takes to correctly restore this vehicle to its pre-accident condition.”

“The responsibility to restore crashworthiness lies with you, your business and your technicians,” — Scott Peirce “The responsibility to restore crashworthiness lies with you, your business and your technicians,” Peirce said. “Many products and processes combine together to restore the initial condition of the vehicle so it’s capable of handling a subsequent collision.” Peirce explained corrosion protection is vital to restoring a vehicle’s crashworthiness. Corrosion can impact airbag timing, and fatalities are more likely due to rust. “If you can effectively access the area with a traditional paint spray gun, corrosion protection is best achieved by applying a direct to metal primer, followed by the vehicle’s color and clearcoat to achieve recommended dry film thicknesses, if and as required, per the specific paint company and vehicle manufacturer’s guidelines,” he said. “If you cannot effectively access the area with a traditional spray gun, that is when materials like weldthrough primer and cavity wax may be the most appropriate solution to help restore corrosion protection,” he continued. “A vehicle’s ability to resist corrosion could be significantly compromised if the vehicle manufacturer’s corrosion protection is not restored. This could also lead to future issues with safety and/or resale value.” 3M Business Development Manager Mark Algie joined in to look at a case study of a damaged bumper and examine the requirements related to 1500 MPA high strength steel frame rails. “OEM repair procedures need to be reviewed to determine repairability,” Algie said. “It looks like a

Moving on to welding, Peirce said six different weld conditions are required just for the front stiffener, and this part cannot be removed and reinstalled because of the spot welding conditions. “There are a number of manual weld settings that need to be adjusted to properly perform this repair,” Peirce said. “You can’t just move forward with replacement using automatic settings on welders. You need to stop, identify the different weld settings and adjust to get the proper welds.” After Peirce finished discussing weld-through primer recommendations, Algie shared information on several OEMs’ requirements related to bonding adhesive selection. “You always need to refer to the OEM repair procedures because they’re constantly being changed and updated,” he stressed. Bare metal seam sealers can help with corrosion protection and are designed for rapid production, but 3M recommends priming before seam sealing. “The market demands it because it’s good for production and speed,” Peirce said. “Bare metal seam sealers can be acceptable, but you have to ensure that all bare metal is covered. Any seam sealer is only effective if it is coated properly, but bare metal sealers are especially vulnerable if the coatings are too thin or do not achieve full coverage.” “Refinish technicians must be especially thorough while refinishing and be sure to paint from both directions to ensure full coverage of the ‘shadow side’ of the bead profile,” he added.

Identifying the most difficult areas to achieve full paint coverage as the door hem flanges, wheel openings, lower rockers flanges and any flange sealed near a tight corner, Peirce cautioned, “These also happen to be the most corrosion vulnerable areas of the car, so caution should be exercised.” Epoxy seam sealers provides better coverage then aerosol seam sealers, and it’s imperative to research OEM position statements and repair procedures in order to duplicate the original appearance and function of the seams. Next, Algie discussed cavity wax OEM requirements, emphasizing, “Cavity wax must be applied to all interior cavities, weld flanges, hem flanges as well as any area affected by the repair, especially where any type of welding was performed.” According to Peirce, a lack of corrosion protection inside cavities and on the back side of the welds is the most common problem found by post-repair inspection companies. He also discussed some of the qual-

ity control tools that shops should invest in, such as a borescope and a mil gauge, in order to perform their own post-repair inspections. “Post-repair inspections are more common than many of us want to admit due to a more educated public— the educated consumer is much more aware,” Algie said. “We ALL have a responsibility to restore crashworthiness, and that can only be achieved by researching and documented that you’ve followed the OEM repair instructions,” Peirce said in conclusion. “You need documentation to prove that you followed the instructions, and you have to follow those recommendations; don’t choose equivalents because it’s definitely not worth a little bit of savings. Conduct your own post-repair inspection, and protect your shop.” The webinar ended with a Q&A session. For more information on ASA and future educational webinars, visit www.asashop.org/asa-webinars/. www.autobodynews.com

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Is Your Shop and Insurance Coverage Prepared for A Riot? by Gary Ledoux

We have all heard about the rioting going on across the country. For months, at least a dozen cities experienced businesses being burned, looted and extensively damaged. Government instituted curfews closed off whole sections of cities and shortened business hours causing businesses to lose income. It’s unnerving for everyone. Fortunately, it would appear collision shops have dodged the bullet, so far. Industry leader Brandon Eckenrode, of the Collision Industry Foundation, indicated no shops have requested financial help from the organization due to riot damage.

Any business owner can’t help but wonder if the mayhem will stop, or if it will expand into their area of the city. This must be especially perplexing for body shop owners who, besides worrying about their own property and equipment, are entrusted with customers’ vehicles, which must not only be repaired, but kept safe in the meantime. To find out how collision shop owners can help protect themselves if faced with civil unrest, we contacted several insurance company representatives to ask their advice. Generally speaking, they were very helpful and we are grateful for their contribution, but they preferred not to have their name or company mentioned publicly. Here are some of their major points: Coverage for Civil Commotion The riot (civil commotion) insurance coverage you may have, or may not have, is predicated on the state in which you operate your business, the

insurance carrier and how your policy is written. Check with your own insurance agent and see exactly what is covered, and, equally important, what is excluded. One representative noted, “In general terms, basic property insurance won’t be enough, but the shop owner can purchase a business operations policy and a garage keepers policy, which would usually extend coverage for damage done by rioting, fire and civil commotion.” Having Enough Coverage When talking with your insurance agent, consider not only what is covered (building, contents, equipment, company vehicles, customer cars) but also the amount of coverage in terms of dollar amount. One insurance representative noted it is not uncommon for small business owners to request the barest minimum of insurance coverage; for example, just enough to meet a standard set by the local municipality so they can get their business license or meet some other prerequisite. Business Interruption Business interruption coverage can be rather complex and beyond the scope of this article. This coverage can include loss of business hours due to official curfews and complete closure of the business due to riot damage. Policies may require a waiting period of 72 hours before claims can be made, and may be limited to a certain number of weeks of closure. Documentation of all facets of the loss are critical. Damage Mitigation Shop owners should take reasonable steps to minimize damages. This may mean boarding up windows or moving customers’ cars to another safer location. The cost of such actions, such as hiring people to board up shop windows or move cars to another location, may be reimbursable under the insurance policy, or not. Shop owners need to check with their agents.

Vehicle Accesories If you are working on accessorized vehicles, especially those with expensive items like high-end stereo equipment, custom tires and wheels, or light bars and lift kits, check with the vehicle owner to see if their insurance will cover those items if they are lost due to civil commotion. Chances are, the shop’s insurance will only cover standard accessories that came with the vehicle from the vehicle manufacturer and not something that was added after the fact. The vehicle owner’s insurance may only do the same unless they purchased some sort of rider policy. Building and Rubble Removal If your building becomes a total loss, you may be required under a city ordinance to remove the rubble of your building. It may sound morbid, but, before this becomes necessary, check to see how much it would ordinarily cost to remove and dispose of a building of your size. If your building is wrecked, chances are many

others are as well. Building removal experts may see this as an opportunity to charge premium rates. Make sure you have enough coverage. Terrorists and Vandals So far, those committing the many acts of civil commotion have been largely deemed “protesters.” However, insurers may assert they are not protesters, but terrorists, and thereby the damage is not covered. Also, if your building is left unattended for a certain amount of time, your insurer may invoke a vacancy exclusion deeming damage inflicted by vandals rather than rioters, which may not be covered. Again, and this cannot be stressed enough, check with your own agent to see if you have the correct coverage, in large enough amounts.

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Continued from Page 38

White Named to Women in Automotive Board

Burgeoning E-Commerce

Dana W. White, chief communications officer, Hyundai Motor North America, has been named to the Women in Automotive board. In this role, White will be a resource and advocate for the organization’s mission to empower and develop women in the automotive industry as thought-leaders, industry executives and mentors for other women seeking career advancement and growth opportunities. The Women in Automotive organization currently has 20 executive-level board representatives from a variety of automotive technology, supplier, media outlets and dealerships. In her role as CCO at Hyundai, she is responsible for leading all regional communications and public relations strategy for HMNA, HMA, Genesis Motor America and Hyundai Motor Manufacturing Alabama in coordination with other affiliates, including the Hyundai Washington, D.C., office.

Again, all this online buying could mean fewer cars on the road, fewer miles traveled, fewer accidents and less collision repair work. Change In Shopper Preferences Eventually COVID-19 will be beaten but, according to Rakutan, but what will remain is a “permanent change in shopper preference.” Many people will become more germ conscious. Many shoppers will prefer no-touch deliveries, while social businesses and outlets like communal buffets may suffer a loss in popularity. Consumers may also be less attracted to using public keypads, something which will force retailers to switch to no-touch technology with more focus on general hygiene. Body shops may need to be “sanitizing” customer cars for some time to come. Fighting Fire With Fire It’s more important now than ever, especially since so many people are online, for businesses, including body

Source: Women in Automotive, Hyundai.

shops, to have a prominent e-commerce presence so customers can find them. Business owners should look at their website and Facebook or other social media presence, or better yet, have a disinterested friend look at it. How does it compare, not necessarily against other shops, but the presence of other businesses? I will expand on this in a subsequent article. Looking To The Future Rakutan suggests “consumer views on shopping in a new ‘socially distant era’ will likely remain beyond the pandemic.” Consumers must now deal with what is becoming a “longterm side effect” of the pandemic and a “new normal.” The pandemic acted as a catalyst for consumers’ swift transition to digital commerce and it will likely remain. Rakutan says the post-pandemic situation is similar to the effect of the 2003 SARS epidemic in China. Like the COVID-19 pandemic in the U.S., SARS caused the closure of shops, schools and factories, but opened the gates for e-commerce merchants. Alibaba, the Chinese

equivalent of Amazon, received a huge boost. According to GlobalData, a UK-based data analytics and consulting company, “COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most skeptical consumers forced to abandon physical stores in response to restrictions on movement.” According to PaySafe, “winning in this new e-commerce environment means an even greater focus on consumer experience. To win and keep these new customers that want to shop online more frequently, merchants must offer a seamless product via both browser and smartphone app.” For body shops, this means they must make it easy for customers to reach them via the e-commerce experience.

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with Erica Schroeder

Industry Insight with John Yoswick

Committee Demonstrates How Same Part Can Be Described Differently by John Yoswick

Shop Showcase flowcharts that demonstrate how all

The committee showed several

who manufacture parts for automakers. But that’s a parts category none of the parts platforms or estimating systems currently use. So that part might be identified as “OE discount” in one parts platform and estimating system, but as “aftermarket” in another parts platform and estimating system, resulting in the same part being labeled differently on estimates.

highest possible scenario they can,” Weiss said. “This is where specific terms with specific definitions benefit the industry, rather than leaving things open to supplier interpretation or decision,” Schulenburg said. “We need to be doing our best to be as transparent as possible. There’s a big difference in someone looking at something called an ‘OE surplus’ part and assuming that’s an OEM part, versus the impression of what a ‘recycled’ part is. I think we need to do everything in our power to make sure we are distinguishing parts appropriately.” The committee, however, has had difficulty reaching a consensus on what definitions and names for the parts types should be. The committee had been so polarized on the issue that Weiss and Schulenburg decided to break it into two “more like-minded” work groups to each form a proposal on how to most clearly describe parts available in the

The Collision Industry Conference these variations in parts categories Ed Attanasio (CIC) Parts andwith Materials Commit- can result in the exact same part betee is continuing to push for more ing described two different ways on consistency in how parts are defined estimates. and described within the industry. In the first (Figure 1), a vendor During the virtual CIC this sum- selling OEM parts outside of the aumer, the committee showed how the thorized OEM channel enters those list of parts categories varies among parts into a platform that uses the with Ed Attanasio parts platforms and estimating systems. CCC ONE has six parts type categories, for example, while Audatex and Mitchell have seven. Audatex has an “OE surplus” category, while CCC has “optional OEM” and Mitchell has with Ed Attanasio “OE discount.” The parts platforms that feed into the estimating solutions have their own categories. APU Solutions, for example, segments out “surplus OEM” from with Ed Attanasio “recovered OEM,” two categories not even found—by those names—in the estimating systems. APU’s Eric Mar- Figure 1. A CIC committee used a flowchart to show how a part the suppliers describes as “OEM rello said “surplus OEM” parts are surplus” can end up with one of three different labels on estimates. new OEM parts in OEM packaging, whereas “recovered OEM” are take- “OEM surplus” category for such parts. That platform feeds into an with Stacey Phillips estimating system that uses the “optional OEM” label for those parts. California regulators, however, prohibit the use of the “opt-OEM” label. “So while that part can go into with Stacey Phillips the estimating platform as ‘opt-OEM,’ the end-user is required to choose what they are going to call it on the Ken Weiss said some parts suppliers are estimate,” said Aaron Schulenburg, genuinely unclear as to how to identify their who co-chairs the CIC committee. parts in electronic parts platforms or estimat“You then have a situation where a ing systems, while others mayStacey be trying to Phillips with shop repair plan, and an insurance Figure 2. If a parts supplier describes its part using a term – like “Tier 1 replacement”—not used by “game” the system either the electronic parts platforms or estimating systems, how it appears on an estimate may vary company estimate, may each potenoff parts, OEM parts that may have tially choose different nomenclature In a third example, the commit- marketplace for those making parts been temporarily installed or painted for the exact same part. One may iden- tee showed where an “OEM take-off” decisions. and then removed. tify that as an aftermarket part, and part can end up categorized on an es- Weiss said his work group came “We hope longer term that the one may identify it as an OEM part, timate as “recycled” or “OE surplus.” up with six different categories of industry will move in Stacey the direction and you have an estimating platform Ken Weiss, who co-chairs the new parts, whereas Schulenburg’s with Phillips to break those two part types out,” that allows for that choice.” CIC committee, said parts suppliers work group simply defined four attriMarrello said. “Certainly we need In another example the commit- may be genuinely unclear as to how butes of an OEM part, and said any to agree upon those definitions. But tee showed (Figure 2), a parts sup- to identify parts they are putting into new part not having all four of those we saw five or seven years ago that plier may choose to refer to a part as the parts platforms, or directly into attribute were “non-OEM.” those really aren’t the same part cat- a “Tier 1 replacement” part because the estimating systems. “That’s the struggle we got hung “But there are others who delib- up on last year,” Weiss said at CIC egory. They need to have a different it is manufactured and sold by Tier 1 suppliers, such as Denso and Bosch, erately will elevate their part to the this summer. segmentation.”

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Tips for Busy Body Shops My SEMA

Shop Strategies with Victoria Antonelli

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ed by vary

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UTAH Findlay Kia

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference It’s been five years since I launched the first of our quarterly “Who Pays for What?” surveys, and I’ve been excited to see some of the changes in the industry I believe can be traced back to the industry’s participation. In the very first “Who Pays” survey back in 2015, for example, less than half of shops reported being reimbursed on behalf of the consumer on a regular basis by the eight largest insurers for tinting color. That has crept up gradually ever since, with 58% of shops this year saying they are reimbursed on behalf of the consumer from insurers for that procedure all or most of the time. Five years ago, about four out of five shops said they would bill for the labor to denib a vehicle if that procedure was necessary for the job—which it is on half or more of refinished vehicles, according to more than 75% of shops. But also

Continued from Page 36

Defending Your Name line. We all have that one buddy or associate who sends silly videos all the time, but think twice before you share them with anyone else. You don’t want to share anything that is sexist, ageist, racist or political because you never know who might see it and be offended. Just delete them if you’re not sure, and avoid sharing inappropriate content. If the situation gets really bad for any reason, it might be time to lock down your pages. Change all of your privacy settings on all your websites so that only certain people can see what you post and respond. Another smart move is to limit what others can post about you. For example, in Facebook’s privacy settings, you can easily block other people from tagging you in photos without your permission. They can still tag you, but it won’t be public until you approve it. When none of these techniques

five years ago, fewer than one-third of shops said they were regularly reimbursed from insurers on behalf of the consumer for the denib operation by the eight largest insurers. In fact,

on behalf of the consumer by the largest insurers for the “not-included” denib procedure, but the situation has certainly improved. In a “Who Pays” survey this year, just 22% of

A “Who Pays for What?” survey earlier this year found more shops were being paid regularly for the “denib” procedure

44% of the shops that billed for it said those insurers “never” reimbursed them for it. Now five years later, shops are still not getting regularly reimbursed

work, start drowning out the bad content with new positive content. One of the best methods out there is to advertise the fact that you help the community, mentor local auto tech students, give cars to deserving people, etc. You worked hard to earn fivestar Yelp reviews or positive comments on Facebook, so why not take the time to protect them? As more and more people go online to search for a body shop, your reputation is more vital, because just one negative review can affect you in many ways and none of them are good.

shops said the eight largest insurers never reimburse them on behalf of the consumer when denib was necessary, exactly half of the percentage in 2015.

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And just 12% of the more than 750 shops that participated in the survey said they never bill for the procedure when required, a 40% reduction over five years in the number of shops that had been doing the procedure “for free.” This is a measurable change on a very common repair procedure. I’m not the only one who thinks the surveys are having an impact. Among the shops that took our most recent survey, 88% said participating in the surveys has helped them improve their business. About twothirds said participating in the surveys offer a good reminder about “not-included” procedures they are doing but for which they may not be itemizing and billing. And more than three-quarters said they use the survey to train and remind their staff about such procedures. September is your next oppor-

Dallas 800-245-7269 972-241-3953 Fax

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Tulsa 800-331-3996 918-665-1360 Fax

46 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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tunity to participate in a survey. It can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. We do not share information or individual responses with anyone. Visit this website to start: https:// www.crashnetwork.com/collision advice

Here’s a bit more of what the surveys have shown us this year. About 57% of shops that bill for the time it takes to mask internal areas for refinish or cut-in are reimbursed by the eight largest insurers on behalf of the consumer “always” or “most of the time,” yet nearly one in three shops (32%) never get paid for it. That’s because half of them (16%) acknowledge having never thought to charge for it, and the other half (16%) be-

lieve—presumably based on experience—the insurers never pay for it. The situation also has at least improved over time; in 2015, only 32% of shops reported being paid regularly for this procedure, and more than 40% of shops—twice the percentage as of today—believed the insurers “never” paid for it on behalf of the consumer. The surveys have also shown that some insurers are much more likely than the eight largest to reimburse shops on behalf of the consumers for “not-included” procedures when they need to be done. When asked how often they are paid to spend the extra time it takes to match the OEM paint texture on a repaired area, for example, shops said they are almost twice as likely to be reimbursed for that procedure by insurers like PURE or Chubb than they are by some larger insurers. Of the shops that negotiate to be paid for matching OEM texture, 74% said they are reimbursed on behalf of consumers “always” or “most of the time” by Chubb, compared to just 41% who said that one large insurer did.

Even more mainstream insurers like Erie Insurance (No. 12 in terms of market share) pay shops for these same “not-included” procedures much more frequently than the eight largest insurers. Shops taking the survey reported the payment frequency for five additional insurers (Acuity, Amica, Chubb, Erie and PURE) on four different repair procedures (denib; feather, prime and block; mask for prime; and match OEM texture.) Across all four procedures, Chubb had the highest payment frequency, with, on average, 76% of shops that negotiate for the procedures reporting they are paid “always” or “most of the time” by Chubb on behalf of the consumer. PURE, which like Chubb, targets more aﬄuent customers, had the second-best payment frequency, with 74% of shops, on average, saying they are paid “always” or “most of the time” for the four procedures. The three other insurers—Acuity, Erie and Amica (No. 22 in terms of market share)—were not far behind, with averages of 70%, 72% and 68%, respectively.

These averages are all far above the percentage of shops reporting the eight largest insurers reimburse them for these procedures on behalf of the consumer. For each survey you complete, you receive a free 65-page report with all the findings, and resources and ideas to help you put them to use in your business. You can also use the link for the survey above to download previous survey reports for free. So if you’ve taken the surveys in the past but it’s been a while, make this the month you get back to it. It takes just a few minutes of your time, four times a year. If you’ve not participated, consider this my personal invitation to check it out. I truly believe it can help your business, which helps the industry as a whole. As I like to say, “Don’t delay. Do it today!”

SUBSCRIBE TO OUR YOUTUBE CHANEL: Autobody News

KIA HECU Recall Issued Following Engine Fires by David A. Wood, CarComplaints.com

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A KIA HECU (hydraulic electronic control unit) recall has been issued for more than 440,000 Optima and Sorento vehicles in the U.S. after eight fire-related complaints. In Canada, KIA is recalling 1,243 model year 2019 Stingers due to problems with the HECUs. The 2013-2015 KIA Optima and 2014-2015 KIA Sorento vehicles have HECU components that may leak brake fluid internally and cause an electrical short-circuit, starting fires in the engine compartments. In February, KIA received a complaint about a 2015 Sorento that concerned electrical failures. The dealership found the HECU had melted and it was later learned the HECU connector and circuit board near the connector suffered heat damage. KIA worked with the supplier and determined the HECU had internal damage caused by brake fluid. Two more incident reports

were filed and more fire and heat damage reports arrived about KIA Optima and Sorento vehicles. The supplier also discovered the same HECU component used in the KIA vehicles was also causing problems in Hyundai vehicles, which today recalled more than 151,000 Santa Fe Sports following 15 engine compartment fires. KIA owners may notice burning odors, smoke from the engine compartments or illuminated warning lights. KIA dealers will inspect the HECUs for leaking brake fluid and replace the HECUs if needed. The HECU recall begins Oct. 15, but concerned Optima and Sorento owners may contact KIA at 800-333-4542 and refer to recall number SC197. We thank CarComplaints.com for reprint permission.

AUTOBODY

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Filterworks USA Becomes Autotality to Reflect Expansion Within Automotive Equipment Industry Filterworks USA, a leading equipment distributor within the automotive repair industry and part of Inc. Magazine’s list of Fastest-Growing Companies in the United States four years in a row, on Oct. 1 announced a rebrand to its title and visual identity. The new company name is Autotality, reflecting recent accelerated growth within the automotive repair equipment space stemming from Filterworks USA’s acquisitions of Carolina Collision, Moore Equipment, Trans-Star and Seifert Equipment Company. The new title demonstrates the company’s full spectrum of automotive equipment services to provide quality support for premier manufacturers across the automotive industry, and captures the company’s 360-degree roster of services for automotive service departments and collision repair centers. The new tagline, “Design. Equipment. Service.” clearly conveys the centralized mission of the brand to provide customers with unparalleled facility design, industry-leading equipment and unrivaled service.

Autotality’s growing fleet of vehicles to serve customers throughout the southeast U.S. will incorporate the new logo and tagline.

departments and collision centers, and our new, modern identity will drive continued advancement and growth within the space.”

“Our new brand, Autotality, brings together five of the leading automotive collision equipment distributors in the country with decades of combined experience,” said Gregg Strandberg, founder and CEO of Filterworks USA and president of Autotality. “Autotality is rooted in a passion for top-tier automotive facilities and a commitment to providing customers with industry-leading equipment. “Our new brand name better reflects our growing scope and capabilities as a world-class provider of equipment for automotive service

Autotality’s current market area includes the entire southeast: Florida, Georgia, Tennessee, South Carolina, Alabama, Virginia and North Carolina. Autotality is a licensed general contractor in Florida, Georgia and North Carolina, with additional states likely to be added soon. Autotality’s concrete and general contractor capabilities, collision expertise, new dealer experience and network of equipment manufacturers and dealer relationships will complement continued growth across the automotive space for years to come.

GM CEO Mary Barra: Demand is Coming Back Quicker Than we Thought by Brian Sozzi, Yahoo Finance

The race by car on the part of households to decamp to suburbia from congested cities amidst the COVID-19 pandemic appears to be a tailwind for at least one U.S. auto giant. “Actually, you know it varies across the globe,” General Motors Chairman and CEO Mary Barra told Yahoo Finance’s The First Trade on current demand trends. “We’re seeing the China market come back as well as the United States and North America in general, a little faster than we thought. I would say we’re cautiously optimistic. There’s a lot that we need to see start going in the right direction. But right now we’re seeing especially retail demand come back more quickly than we expected.” Barra’s comments come on the heels of GM shelling out $2 billion for an 11% stake in electric truck maker Nikola this week. The deal will make GM the lead manufacturer of Nikola’s 906-horsepower Badger pickup truck and supplier of batteries for the upstart’s semi-trucks.

To be sure, the latest data on the broader U.S. auto market is a little bit more mixed than the trends GM is seeing at the moment. Toyota reported earlier this month that sales in August plunged 23%, marking its fifth straight monthly decline. Sales at Hyundai

loss and an uncertain presidential election. “Our initial take on August: The market recovery remains on track. There are headwinds holding back sales—limited inventories, fewer cash incentives---and those likely suppressed some activity as

“But right now we’re seeing especially retail demand come back more quickly than we expected.” — Mary Barra tanked 8.4%. Even Subaru—which has been riding high on the back of interest in its Outback and Forrester—saw sales fall 17.4%. The saving grace for automakers, as Yahoo Finance sister publication AutoBlog points out, is that transaction prices for new vehicles are up as they pull back on incentives. That should help offset weaker volumes in the near-term. Nonetheless, the auto industry is likely to have a challenging fall as dealers battle with low inventories, caused by plant shutdowns at the height of the pandemic, and cautious consumers dealing with financial

potential buyers could not find what they wanted,” said Cox Automotive Senior Economist Charlie Chesbrough. “The industry is also wrestling with a shortage of MY2021 vehicles, which normally the OEMs would be rolling out at this time of year. The lack of fresh product likely kept some buyers on the sidelines. The inventory situation is going to take some time to improve, and when coupled with an ongoing pandemic and weak economy, vehicle sales could face a difficult period this fall.” We thank Yahoo Finance for reprint permission.

Acquisition Details Filterworks USA is an authorized distributor for leading equipment manufacturers in the collision and automotive repair industry, inducing Garmat USA, Car-O-Liner, Hunter Engineering, Rotary Lifts and more. Founded by Strandberg in 1988, Filterworks USA offers complete design, permitting, installation, training and services solutions for automotive collision centers and service departments, all in-house. In 2019, Filterworks acquired Trans-Star Automotive, Seifert Equipment and Carolina Collision Equipment. In 2020, Filterworks initiated its partnership with Moore Equipment Sales. Jim Seifert will continue to run and grow the Seifert division of Autotality. Larry and Lori Brolsma, the previous owners of Carolina Collision Equipment, remain in key leadership positions within Filterworks, continuing to run the CCE business. Mickey Moore, the previous owner of Moore Equipment Sales, continues to run the MES business for Filterworks. Source: Autotality

SEMA Data Co-op Acquires PartsHub

The SEMA Data Co-op (SDC) has acquired PartsHub, a comprehensive catalog management solution that will enhance a participating manufacturer’s ability to create and update industry standardized product information, regardless of their product data knowledge or expertise. The SDC is the leading product data service in the specialty equipment aftermarket. Using PartsHub’s expanded product information management (PIM) software, SDC manufacturers will be able to easily organize their data, reach more resellers and sell more products. Integrating PartsHub’s interface with the SDC product information management system makes it easy for manufacturers to organize and update their data for industry resellers. The updated interface also allows possible datasets that can easily be exported in formats that meet reseller needs. Source: SDC

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Audi Part Professionals are experts on collision parts, replacement components and mechanical items.

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Intoxicated Tesla Owners Leave Driver’s Seat Empty to Keep Drinking by Loukia Papadopoulos, Interesting Engineering

Social media is all about attention-seeking and very often it goes too far. Such is the case with a bunch of irresponsible guys who decide to continue drinking and singing off-key to Justin Bieber’s 2010 hit “Baby” while letting the Autopilot in their Tesla Model S drive by itself. You might be wondering how we know that this event actually happened. Well, because these smartypants actually posted video evidence of their many crimes, including drunk driving and having open fluid containers in their car, to TikTok. According to The Drive, the singing friends were going down a highway at 65 mph with the driver’s seat completely empty and just Autopilot to guide the speeding car. If you would like to see the video, but don’t want to reward bad behavior with more views, you can watch the clip on TMZ. The media outlets refer to

these dangerous boys as clowns, morons and idiots, and explain how Tesla’s Autopilot is not meant to be used as a designated driver, despite Elon Musk’s attempts at making the software completely autonomous. A Tesla on Autopilot always requires a driver behind the wheel particularly to avoid accidents, which these young men seem to be heading straight for. In fact, even with a driver behind the wheel, Teslas on Autopilot have seen their fair share of crashes that have killed at least four people so far. This is something many followers on Tik Tok pointed out to the video’s poster, blurr.tv, but something he clearly ignored as the clip is still online and gathering ever more likes and views. Needless to say, it is dangerous and irresponsible, to give attention to such behavior that’s why we declined to embed the video here. Here’s hoping more people will not seek to emulate blurr.tv’s actions. We thank Interesting Engineering for reprint permission.

Uber Plans to Have an All-Electric Fleet by 2030 and a Zero-Emissions One by 2040 by Loukia Papadopoulos, Interesting Engineering

COVID-19 was hard on all of us but it did have some positive sides. As the world slowed down nearly to a stop, pollution also faded. This trend caused some changes in people everywhere who became ever more eco-conscious. This has caused a desire for more and more companies to go green. One such company is Uber. Let’s face it, the pandemic could not have been good for the ride-sharing firm. As people sought to avoid others at all costs, they opted to choose locations they could either walk or bike to or took their own cars. Can you think of any time recently where you used an Uber? This could be why Sept. 8, Uber CEO Dara Khosrowshahi released a blog where he spoke of his company going green during the pandemic recovery. “The pandemic has caused many cities to rethink their infrastructure, transforming parking into parks and creating more space for

Commercial Fleet Sales Fall 16.8% in August Commercial fleet sales from nine manufacturers totaled 57,571 in August, representing a 16.8% overall decrease compared to the same time last year, following a 6.3% drop from the previous month. Total fleet sales for the month—which is comprised of commercial, rental and government sales—came in at 101,159, which represented a 51% drop from the same time last year. The declines seen in the rental market continue to contribute to these significant drops, as have a 19.6% drop in commercial truck and SUV sales and a 17.5% decline in government car sales. However, commercial car sales are up 18.7% in August, though sedans represent the smallest segment volume for commercial fleets. This growth reflected the second month of consecutive growth for this segment since COVID-19 was declared a pandemic. The rental fleet segment has continued to maintain its low numbers, and saw an overall 83% decline in August, close to the 84.5% drop in July.

Through August, rental fleet car sales fell by a drastic 88.9%, totaling 4,673 units. Truck and SUV segment sales decreased 79.8% at 15,074 units. Combined, rental fleet sales totaled 19,747 for the month of August. Meanwhile, the government fleet continued its overall recovery in August, despite the decline in car sales. There were 2,065 cars sold to government fleets, representing the 17.5% decline. However, this was offset by a 17.7% increase in truck and SUV sales. Combined, truck, SUV and car vehicle sales for government fleets amounted to 23,841 units, which reflected a 13.5% increase. Year-to-date, as of August, overall fleet sales from nine manufacturers total 1,129,531, 44% less on a year-over-year basis, indicating there is still a long road to recovery for 2020. So far car sales are down 59.3% year-to-date and truck and SUV segment sales are down 38% year-to-date, impacted heavily by the declines of the rental market. We thank Auto Rental News for reprint permission.

walkers and cyclists. We’ve had a glimpse of what life could be like with less traffic and cleaner air—in cities built for people, not for cars,” wrote the executive. Khosrowshahi revealed his firm would not be going back to business as usual. Instead, it will seek to reduce its environmental impact. “It’s our responsibility as the largest mobility platform in the world to more aggressively tackle the challenge of climate change. We want to do our part to build back better and drive a green recovery in our cities,” he added. This will be no easy task as Uber has very ambitious plans. The company is committed to developing a fully zero-emission platform by 2040. Uber plans to have 100% of rides taking place in zero-emission vehicles by 2040 and 100% of rides take place in electric vehicles (EVs) in the U.S., Canada and Europe by 2030. Can this lofty goal be achieved? Only time will tell. We thank Interesting Engineering for reprint permission.

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50 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Best Practice for Pre and Post Scans • Discuss diagnostics, scanning and ADAS functions and calibrations with vehicle owner if possible • Make sure that an authorization for repairs has been singed • Move Vehicle to scanning stall • Note vehicle VIN, Miles, RO# and MIL illuminations • Inspect vehicle for ADA components and controls such as cameras, radar sensors, lane departure/blind spot indicators and steering wheel/ dash controls • Print out documented OE procedures for vehicle being scanned • Hook up battery charger to maintain voltage • Hook up scan tool and put vehicle in proper state for scanning • Perform all system DTC scan • Review individual system data values with scan tool related to codes retrieved and/or required data revised such as air bag deployment history steering angle, seat weight, camera or radar angle values • Note 3 case scenarios 1. No accident related codes 2. accident codes 3. Accident related and non accident codes • Research codes and data values

to determine repair options (OE procedures OEM pertinent data • Determine ADAS options (See Airpro Data Retrieval) that will require calibrations with or without DTC”s or Data faults • Blue print vehicle and pay particular attention to the ADAS components • Repair Vehicle back to its preloss condition. On reassembly, check OE data to determine if an assembly needs to be removed for calibration. • Document Initialization, Programing and module set up using procedures from OEM documentation • Perform Post Scan after vehicle assembly and determine New as well as Old DTCs • Clear all possible DTC and correct faults codes that shop equipment will handle and document. Even with all codes that have been cleared, it still may be necessary to send the vehicle for calibration as per OEM ADAS service information • Scenario 1—All codes have cleared and no calibration is necessary, all OEM procedures have

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followed and documented, vehicle goes to the next step in the repair process. Scenario 2 vehicle codes have cleared, all OEM procedures have followed and documented, vehicle needs certain system calibrated, vehicle goes to in house calibration center, an outside vendor or OEM dealership. It is highly recommended that another post scan be performed and documented. Scenario 3, vehicle accident codes have not be cleared, an outside vendor is requested and/or vehicle is sent to OEM dealership to clear the codes and perform any calibrations that are required by OEM procedures. Also documentation is essential. Scenario 4, all accident codes have cleared, calibrations performed if necessary, but non accident codes have not been cleared. Customer needs to be notified and a release signed before vehicle is released. • Final step is to determine by the OEM procedures if a road test needs to be performed. Test drive procedures will be outline in the OEM data. A final test drive documentation needs to be filled out and added to the repair order jacket

CREF Supporting COVID Impacted Schools The Collision Repair Education Foundation (CREF) wants to publicly thank the insurance industry for rallying behind it during a time when raising funds is extremely difficult. Six extremely generous insurance organizations have stepped in to offer their support, donating funds that can help CREF make good on its mission of connecting the next generation of collision repairers with education and resources to help further advance the industry at large. Donations to CREF are down nearly 50% due to COVID-19, putting critical programs, including school grants and support, in jeopardy for 2020 and beyond. CREF would like to thank the following insurers for their generous 2020 donations: Allstate, Erie Insurance, Farmers Insurance, GEICO, Liberty Mutual Insurance, Nationwide, State Farm and USAA. Source: CREF

Best Practice for Air Conditioning Repair, R&I and Replacement Before starting the A/C process, make sure all technicians are EPA approved with 609 certification https://www.epa.gov/mvac/ section-609-technician-training -and-certification-programs • Determine if vehicle is R12, R134A or R1234YF (possible sublet) • Get proper equipment ready for evacuation • Check for Refrigerant or Evacuate the system at teardown • Print out OEM data on A/C • Note amount of refrigerant removed* on estimate/repair order • Remove receiver drier and seal • Remove A/C condenser and seal if necessary • Seal off all A/C lines • Assemble A/C system using all new “O” rings with correct lubricant • Replace refrigerant • Any additional refrigerant needs to be added to the estimate/repair order • Add PAG oil to system if necessary and charge as necessary (Check

OE for specific oil and warranty) • Hybrids and EV vehicles may need a different oil (check OE data) • Check for leaks • Note temperature at center vent on dash and note on repair order (best practice would be to take a picture • Check A/C equipment for scheduled filtration service * Note—If there is no refrigerant in the system due to the accident, the descant in the receiver drier is compromised and the part should be replaced. Always refer to OEM procedures when an A/C has been opened. Lines Highlighted in red are non-included items

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Honda Agrees to $84M Multistate Settlement for Defective Airbags Kentucky Attorney General Daniel Cameron announced Aug. 25 a more than $84 million multistate settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively “Honda”), over allegations Honda concealed safety issues related to defects in the frontal airbag systems installed in certain Honda and Acura vehicles sold in the U.S. The systems were designed and manufactured by Takata Corporation, a longtime Honda supplier, and were first installed in Honda vehicles in the 2001 model year. The settlement, reached between the attorneys general of 48 states, territories and the District of Columbia and Honda, concludes a multistate investigation into Honda’s alleged failure to inform regulators and consumers that the frontal airbags posed a significant risk of rupture, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the U.S. alone. “Our Consumer Protection Division represents the interest of Kentuckians and fights on their behalf when there is a widespread product

Daimler AG to Pay $1.5B for Emissions Cheating The U.S. Department of Justice, Environmental Protection Agency (EPA) and California Air Resources Board (CARB) announced Sept. 14 a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC, resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. Under the proposed settlement, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the U.S. between 2009 and 2016 and pay $875 million in civil penalties and roughly $70.3 million in other penalties. The recall program and federal mitigation project are expected to cost the company about $4.36 million. The company will pay another $1.1 million to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion. Source: U.S. Dept. of Justice

safety concern, like we’ve seen with the defective airbags in these vehicles,” said Cameron. “This multistate settlement ensures that product safety standards are strengthened going forward.” Anyone who owns a Honda or Acura vehicle is urged to visit the airbag recall website at https://hondaairbaginfo.com to learn more. The states have alleged Honda engineers suspected the airbags’ propellant, ammonium nitrate, could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009. Further, Honda continued to represent to consumers that its vehicles, including its airbags, were safe. Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with the suspect inflators. The states have alleged Honda’s actions, or perhaps more accurately its failures to act, as well as its misrepresentations about the safety of its vehicles, were unfair and deceptive, and that Honda’s conduct violated state consumer protection laws. Under the terms of the consent judgment, which will be filed in Frank-

lin Circuit Court, Honda has agreed to strong injunctive relief, which, among other things, require it: To take steps to ensure that future airbag designs include “fail-safe” features to protect passengers in the event the inflator ruptures. To adopt changes to its procurement process for new frontal airbags, to ensure that its suppliers have the appropriate industry certifications and satisfy key industry performance standards, as well as improve record-keeping and parts tracking. To implement recurrence prevention procedures such as requiring that Honda approve all new frontal airbag designs before the company will consider them for use in new Honda vehicles. To abide by prohibitions on misleading advertisements and point of sale representations regarding the safety of Honda’s vehicles, including the airbags. To make improvements in critical areas such as risk management, quality control, supplier oversight, training and certifications, and implementing mandatory whistleblower protections. Honda also agreed to pay the participating attorneys general a total of $84,151,210.15. Consumers who own a Honda or

Acura vehicle are strongly encouraged to visit Honda’s airbag recall website at https://hondaairbaginfo.com, or call its Customer Service toll-free number at (888) 234-2138, to see if their vehicle is subject to a recall. Consumers may also check for open recalls by going to Safercar.gov. All safety recall repairs are free at authorized Honda dealers. Consumers in Kentucky can also contact the Attorney General’s Consumer Protection Division at (502) 696-5389 with any questions about this settlement. In addition to Kentucky, the multistate group includes Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Guam, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Source: Kentucky.gov

Speaker Highlights Common Challenges Involved in ADAS Calibration “If you’re a shop and you have a brand new tire on the right rear, but Speaking at August’s Collision In- the other three are at the 70% or 80% dustry Conference (CIC), Bob Pat- worn level, what’s the decision? Is tengale, technical systems manager the insurance company going to pay for Opus Intelligent Vehicle Support, for all four new tires? Or just the discussed some of the challenges one? That’s something the industry collision repairers face in calibrating needs to answer. Technically you various advanced driver assistance should have a matching set of tires.” Using the Honda procedures systems. to calibrate the blind spot monitoring system on a late-model Accord as another example, Pattengale noted proper calibration requires a full tank of gas. Sandbags could be used to simulate the weight of the gas—about 5 lbs. per gallon—in a vehicle withIf sandbags are used to simulate the weight of a full tank out a full tank, he said, but of gas while calibrating a vehicle’s ADAS, they may need they need to be placed in to placed in particular parts of the vehicle, based on the portion of the vehicle where the tank is located just above the fuel tank. On Pattengale cited as an example the Accord, that means some weight a vehicle that had one or two tires on both the left and right sides of the vehicle, because it has a saddle fuel damaged in an accident. “Typically we’re looking to tank. “We need to try to be as accumake sure the vehicle has the same wear patterns on the tires all the way rate as we possibly can to mirroring around the vehicle,” Pattengale said. a full tank of fuel,” he said. by John Yoswick

Pattengale, who prior to last year spent more than a dozen years with Bosch, said he realized early on in his current position he needed to think differently about calibrations in a body shop versus a mechanical facility. On one of the first vehicles he calibrated in a body shop, he found the Allen screw used to adjust a radar unit was seized up, a common problem depending on vehicle age and geographical area, he said. “The area in that shop being used for calibrations happened to be in the paint prep area,” Pattengale said. “I’m thinking that since this thing is locked up, I’ll spray a little WD-40 on it. I had to take my mechanical hat off and think about that that spray could definitely create an issue with paint.” In some cases, he said, such ADAS units may need to be replaced because they cannot physically be adjusted. “The physical radar itself is not bad, but the bracket that holds it, or the device that adjusts it, is not functioning or in the proper position,” he said. “That can be an unexpected item [during repairs.]”

52 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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GM Tells Most Salaried Workers to Stay Home Till Next Summer by Mark Phelan and Jamie L. LaReau, Detroit Free Press

General Motors salaried workers in the U.S. have been told to plan on continuing to work from home until at least June 30, 2021, according to an internal document provided to the Free Press. “In coming weeks, you will receive instructions from your site leader regarding the process to retrieve personal belongings and any equipment necessary to work remotely,” according to an email signed by GM Global Human Resources Chief Kim Brycz and GM Chief Sustainability Officer Dane Parker. Hundreds of GM salaried employees are already working at factories, tech centers and other facilities, but the vast majority have been working remotely since the gravity of the COVID-19 pandemic became clear in March. “Our current outlook is to continue operating as we are today until June 30, 2021,” the memo said, adding GM is working to create “a more flexible work culture” after the

pandemic. The memo concluded with a reminder for all employees to practice good safety protocols: “Wear a mask, wash your hands frequently, physically distance whenever possible and get a flu shot when they become available this fall.” GM had been considering bringing some employees back later this year. The revised schedule is the latest sign U.S. business leaders think we’re a long way from having the pandemic under control with treatments or a widely available vaccine. “Every company is struggling with when and how to bring employees back into corporate offices, particularly since mass availability of a vaccine remains months away,” Cox Automotive Senior Analyst Michelle Krebs said. “Configuration of workplaces and common areas, like the cafeteria and restrooms, have to be contemplated. Ventilation is a consideration. “Getting people to and from

their offices using elevators is a conundrum. Sure, you can try to limit the number of people in an elevator, but then how do you manage people gathering to wait for the elevator.” Separately, employees at Wards Communications cleared out their offices in Southfield, MI, this week at the company that has covered the auto industry for nearly a century. Ward’s employees will work remotely, using a portion of their previous workspace for supplies, occasional meetings and a video studio. “Employers have discovered that their workforce has been surprisingly productive working from home, albeit not ideal especially for parents with children being schooled at home,” Krebs said. “And no company—like schools and colleges— wants to get people back into the office only to suffer a virus outbreak and send everyone home.” We thank the Detroit Free Press for reprint permission.

ProColor Collision to Enter U.S. Market Mondofix (Fix Network World) has announced plans to launch the ProColor Collision brand in the U.S. “There is tremendous potential for the continued growth of the automotive aftermarket space in the United States, in particular the collision business,” said Steve Leal, president and CEO of Fix Network World. “We look forward to growing the ProColor Collision brand by directly pursuing aggressive new strategies that leverage our global track record and benefit industry partners and customers in the U.S.” Fix Network World acquired ProColor Collision in September 2019 with a vision to expand the valuable brand outside Quebec. The first ProColor Collision location in Ontario, Canada, opened in July of this year, with another 14 locations expected to launch across Canada by December. In the U.S., ProColor Collision will initially focus on building its network in California, Florida, Georgia and the Carolinas. Source: ProColor Collision

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As Hurricane Season Arrives, CARFAX Provides a Flood of Information by Auto Remarketing staff

A musty odor in the interior. Damp carpets. Rust around doors. With the arrival of hurricane season and more waterlogged vehicles showing up around the country, CARFAX is releasing information on various aspects of the situation, such as telltale signs of vehicle flooding.

CARFAX is also highlighting statistics such as the fact that 446,836 flood-damaged cars are on the roads in 2020. That is according to annual CARFAX data, and the company says that number could rise in the wake of Hurricane Laura. CARFAX says Laura damaged as many as 5,000 vehicles.

“This nationwide surge can put unsuspecting buyers at risk,” CARFAX wrote in a news release. The company also released a list of the top 10 states with the most vehicles reported as flood damaged by entities such as departments of motor vehicles and insurance companies. Although Texas leads the nation in flood-damaged cars, vehicles with flood damage show up in states where flooding might not be at the top of car-shoppers’ minds, according to CARFAX research. CARFAX general manager of data Faisal Hasan said car shoppers should do their homework, and Hasan reiterated that “flood-damaged cars surface in every corner of the country.” “Con men can quickly clean up these cars up, move them and then resell them,” Hasan said. “Once a car has been waterlogged, it will never be the same. These cars literally rot from the inside out, and the mechanical, electrical or safety systems can fail at any time.”

California motorist Carole Ross can relate. She was driving her vehicle home from the dealership and owned it for less than two hours before it broke down. “We ran a CARFAX Report while we were on the side of the road waiting for a tow truck, and that’s when we saw the car had been in a flood in Louisiana a few years ago.” To help consumers avoid such situations, CARFAX has released its list of the seven telltale signs of flooding. Those include: • A musty odor in the interior, which sellers sometimes try to cover with a strong air-freshener • Upholstery or carpeting that may be loose, new, stained or doesn’t seem to match the rest of the interior • Damp carpets • Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches • Mud or silt in the glove compartment or under the seats • Brittle wires under the dashboard • Fog or moisture beads in the interior lights, exterior lights or instrument panel

CCC AutoClaims Snapshot—August 2020 Overall repairable appraisal counts for the industry were down 14.9% in August 2020 versus August 2019. Severe weather in the Northeast from Hurricane Isaias, significant hail in South Dakota and Minnesota and dangerous derecho event in Iowa and Illinois led to an increase in comprehensive losses in the first half of the month. For example, comprehensive losses in Iowa accounted for 70% of all total loss valuations and 66% of all repairable appraisals. This underscores both the severity of the storms and the fact that non-comprehensive losses overall remain down. Losses from the wildfires in California and Hurricane Laura in Louisiana and Texas also continue to come in. Increases in comprehensive losses overall will help offset the decline in non-comprehensive losses and if September weather is as volatile, could result in claim counts for the year down only about 5%. Excluding comprehensive losses, counts also remained down over 25% year-to-date, although August 2020 non-comprehensive counts were down only 20.5% versus down

24.7% in July 2020. Areas hit hardest by the wave of COVID-19 infections in California and Texas have slowed claim

count recovery in late July and early August, with areas such as San Francisco, Los Angeles, Dallas, Houston and El Paso still seeing non-compre-

hensive appraisals down between 27% and 30%, while volume in other areas such as NYC, Chicago, Atlanta, Denver and others is down between 15% and 20%. Government data from early August reveals interstate miles are still down most among all road types, and this is consistent with data from other sources showing rush hour traffic is still below average in many cities. The primary factor most highly correlated to accident frequency is vehicles per road mile—i.e. how many vehicles on a given road at any given point. This is also typically referred to as “congestion,” which right now in most areas still seems to be below normal. With the number of COVID-19 cases rising again as many return to school, and the approach of normal flu season, many companies plan to keep at least part of their staff remote through the remainder of the year. This will likely mean non-comprehensive may remain down 10% to 15% for full year 2020. Source: CCC

CARFAX offers a free Flood Check tool at carfax.com/flood to help protect consumers. The tool includes a national map showing where flood cars have washed up, and a flood damage checklist consumers can perform. The following states have the most flood-damaged vehicles, and all of them have seen an increase since 2019: Texas: 98,400, +13% Florida: 31,300, +8% Kentucky: 26,400, +6% Pennsylvania: 23,400, +18% North Carolina: 19,300, +3% Illinois: 17,800, +14% New Jersey: 14,500, +15% Louisiana: 14,000, +22% California: 12,400, +10% South Carolina: 12,000, +10% The CARFAX information also included a list of the top 10 cities with flooded cars. Houston, New York, Philadelphia and Miami-Fort Lauderdale lead the way. We thank Auto Remarketing for reprint permission.

ASE Survey Finds Adaptions ASE conducted a comprehensive survey to understand the impact of the COVID-19 pandemic on the automotive service industry. While 19% of those surveyed have seen an increase in business since the start of the pandemic, 56% reported a decrease. The survey found that 34% of service facilities have reduced business hours, and the effect on technicians has come in the form of reduction of hours (34%), temporary furloughs (14%) and terminations (8%). Results show nearly 70% of those surveyed are using protective equipment, while 63% have implemented social distancing measures and 62% have added supplemental sanitizing measures. More than 65% said they have done some type of selfstudy or enhanced training, while 46% participated in a webinar or online training course.More than 42% of respondents said they have increased their usage of social media somewhat or significantly, with Facebook and YouTube named as the top platforms used. Source: ASE

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