Southwest Edition Texas Oklahoma Louisiana New Mexico
29
YEARS
SEMA-AAPEX
Chicago Pneumatic/Rich Evans exhibit at SEMA 2009
• SEMA to Host Broad Array of Sessions This Year
VOL. 28 ISSUE 11 NOVEMBER 2010
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. . . . . . . .p.
• SEMA to Award Hottest Vehicle
29
Honors . . . . . . . . . . . . . . .p. 29
• PPG Hosts Painters at SEMA p. 10 • SEMA asks IRS to Help Kill 1099
Report Mandate . . . . . . . .p. 32
• Cover Story, continued . . . . .p. 34
This year’s separation between ASA’s ASRW show, NACE-CARS (October), and AAIW’s SEMA-AAPEX (November), has divided the allegiances of the collision industry in ways not seen since the two events were first co-located in Las Vegas in 2004. The rift is likely to widen due to ASA “flexibility” about the location of the NACE-CARS event in future. While strongly defending the existence and independence of the show as one for service providers and repairers only, and guaranteeing that “there will be a show,” ASA President Ron Pyle has allowed that “there is a lot of flexibility in the decision” to hold the next NACE-CARS on its already announced dates of Oct. 16–19th next year in Las Vegas. ASA takes a targeted-marketing view, distinguishing automobile service-repair as a separate and distinct business model from specialtyaftermarket and OE distribution and manufacturing, and therefore deserving of its own event, saying “we’re not an extension of the aftermarket or the OE service market. We are unique and we have a specific value proposition for independent repairers.” Some repairers, however—notably members of the SCRS and CIC participants—actively seek the energy and creativity of the diverse specialty and aftermarket, and the significantly greater foot-traffic provided by SEMA-AAPEX. They believe this divergence is good for repairers. The sea-change that has resulted comes at an inopportune time for the industry as strong cross-currents from the OEM and Aftermarket parts interests, and pending right to repair and patent defense legislation, are further dividing repairers’ opinions. Many of the most engaging discussions at the NACE-CARS event were panel discussions held on the certification of Aftermarket parts at a time when the aftermarket is feeling significant pressure from an energized automaker and repairerdriven counterattack, each side positioning itself on the one issue that trumps all others, vehicle and consumer safety. continued on page 34
NACE-CARS
• NACE Continues as Collision Gathering Place . .p. 12 • Mitchell Interface with Sherwin-Williams . . . . .p. 14
• Women’s Industry Network Hosts Events . . . . .p. 24 • NABC’s Recycled Rides Gives to Needy . . . . . . .p. 28 • Karen Fierst on Aftermarket Parts . . . . . . . . . . .p. 38
• Cover Story, continued . . . . . . . . . . . . . . . . . . . .p. 34
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Contents
REGIONAL
Carfax QuickVIN • LKQ 2011 Calendar Contest. . . . . . . . 17
Book Store Gets N. Texas’ First Electric Car Charging Station •
Next Generation ALLDATA Collision . . . . . . . . . . . . . . . . . 21
ance Agency Creates Customer’s iPhone App . . . . . . . . . 4
Ford Issues Rare Recall for 7-plus-year-old Windstars •
Texas-Sized Trucks at Dallas Auto Show . . . . . . . . . . . . . 3
Craig’s Collision Center Opens in Burleson, TX • Texas Insur-
Alllstate Says Houston Auto Theft Up 16% , Austin Up 13% •
Inequities Exist in Texas Franchise Laws for Auto Repairers
85 Billion Mile Annual Shift & Specialists Service Growth 19
Women’s Industry Network Hosts Events . . . . . . . . . . . . 24 Hertz Corp. Continues Rapid Off-Airport Expansion • Mitchell’s AutoAdvise Growing • Two NJ Police Officers Charged with
•Killeen, TX, Sees Catalytic Converter Theft on the Rise •
Insurance Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Amarillo Gets New Nissan Location, Formerly L2 • Louisiana
$3M in Indiana Plant • Toyota Says Progress in Safety Fixes •
Texas Among Tax Havens Cited by Kiplinger’s Report . . . . 6 Start-up Changes Name, Gets New CEO • Mother’s Death
Impetus for Distracted Driving Campaign. . . . . . . . . . . . . . 7
OK Insurance Salesman Wanted for Burglaries . . . . . . . . 8
Houston PD Drafts an Auto Repair Ordinance . . . . . . . . . . 9
COLUMNS
Yoswick - NACE Continues as Collision Gathering Place . 12
Franklin - How One Impression Multiplies . . . . . . . . . . . . 16
Gonzo Weaver - Corvette’s Etched Glass Mystery . . . . . . 21 McGee, Webster - To Sublet or Not to Sublet
. . . . . . 22
Chess - A Reader Unpacks his Baggage on the Industry . 30
Espersen - Who needs OE repair information?. . . . . . . . . 36
NATIONAL
Tesla Recalls One-third of its Cars • TG Missouri Will Invest Toyota Sued by Allstate for $3M . . . . . . . . . . . . . . . . . . . 26 Big Retail Auto-Parts Chains See Strong Sales • GM to
Recall 2009–2010 Impalas • GM’s Volt Can Use IC Engine
Power at Highway Speeds . . . . . . . . . . . . . . . . . . . . . . . 27
Allstate will pay $10 million over Collosus Software • NABC’s Recycled Rides Program . . . . . . . . . . . . . . . . . . . . . . . . 28 SEMA 2010 to Host Array of Speakers • SEMA to Award
Hottest Vehicle Honors • Vacationing Couple Allow Bar Ac-
quaintance to Drive Rental . . . . . . . . . . . . . . . . . . . . . . . 29 Delaware VOC Law • Ford Says Tech Brings in 14% More •
Hialeah, FL, Insurance Adjusters Accused of Fraud • MI Ford
Dealer’s Shop Fire • Military Buys Into R2R • Mitchell’s New
iPhone App • Ohio Rep: GM Should Stop Dealer Terminations • Progressive Insurance Sees Lower Profit in Qtr. • SEMA
ASA may move NACE-CARS • Automakers Oppose New Fuel
asks IRS to Help Kill 1099 Report Mandate . . . . . . . . . . . 32
CEO Search Ongoing • I-CAR Education Foundation Renamed
Wins Magazine’s Breakthrough Award • Two Indicted in NJ for
Efficiency Grades Plan • Ford to Sell Mazda Stake • I-CAR
‘Collision Repair’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Mercedes-Benz iPhone App • Mopar Offers 60+ Custom
Mercedes-Benz USA Sells Survival Stories • Nissan’s Leaf
Alleged Insurance Fraud Scheme . . . . . . . . . . . . . . . . . . 33 I-CAR Advantage: The Importance of Quality Control. . . . 35
Grand Cherokee Parts • Pennsylvania Considers Doubling
San Diego and San Jose are Cities with the Most Drunk
Fun at ‘2011 Mediocrity’ Sedans • Zurich Alert: Safe Driving 8
Alleged Racial Slurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Mitchell Interfaces with Sherwin-Williams . . . . . . . . . . . . 14
Washes Run by Owners of High-End LA Restaurant • New
Auto Coverage • Silver Top Color Choice • Subaru Ads Poke PPG Hosts Celebrity Painters at SEMA . . . . . . . . . . . . . . 10
Automotive Management Institute Honors Class • NACE-CARS 2011 in Vegas? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Driving Violators • Federal Agency Sues NV Dealership Over
Karen Fierst Talks about Aftermarket Parts • CA AG Sues Car California Incentives Aim to Retire High Emission Cars . . 39
Southwest
Indexof Advertisers
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Editorial Assistant: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio Advertising Sales: Joe Momber, Christina Shubert (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.
Autobody News
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Aegis Tools . . . . . . . . . . . . . . . . . . . . . . 12 Allen Samuels Dodge Katy . . . . . . . . . . . 6 Auto Body Guru . . . . . . . . . . . . . . . . . . 15 Autoland Scientech. . . . . . . . . . . . . . . . 20 BMW Wholesale Parts Dealers . . . . . . . 24 Chacon Suzuki . . . . . . . . . . . . . . . . . . . 23 Chevyland . . . . . . . . . . . . . . . . . . . . . . . 25 Classifieds . . . . . . . . . . . . . . . . . . . . . . . 39 David McDavid . . . . . . . . . . . . . . . . . . . . 5 Ford Wholesale Parts Dealers TX, OK, LA, NM . . . . . . . . . . . . . . . . . 11 Fredy Kia . . . . . . . . . . . . . . . . . . . . . . . . 17 Gene Messer Hyundai . . . . . . . . . . . . . 17 Garmat USA . . . . . . . . . . . . . . . . . . . . . 16 GM Wholesale Parts Dealers . . . . . . . . 27 Goodson Honda West . . . . . . . . . . . . . 22 Honda/Acura Wholesale Parts Dealers 31 Huffines Hyundai Plano . . . . . . . . . . . . 28 Hyundai Wholesale Parts Dealers . . . . 26 Kia Motors Wholesale Parts Dealers . . . 18 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Mattei. . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Mazda Wholesale Parts Dealers . . . . . . 34 Mercedes-Benz of Oklahoma . . . . . . . . 27 Mike Calvert Toyota. . . . . . . . . . . . . . . . 25 Mitsubishi Wholesale Parts Dealers . . . 30 MOPAR Wholesale Parts Dealers . . . . . 13 Nissan/Infiniti Wholesale Parts Dealers . . . 33 Parkway Family Mazda . . . . . . . . . . . . . 16 Performance Radiator . . . . . . . . . . . . . . . 4 Pre Fab Ads. . . . . . . . . . . . . . . . . . . . . . 10 Ray Huffines Chevrolet . . . . . . . . . . . . . . 2 Replica Plastics . . . . . . . . . . . . . . . . . . . 29 SATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Scoggin-Dickey Buick. . . . . . . . . . . . . . . 7 SCA Appraisal Company . . . . . . . . . . . 14 Sherwin-Williams. . . . . . . . . . . . . . . . . . . 9 Suzuki Wholesale Parts Dealers . . . . . . 32 Toyota Wholesale Parts Dealers . . . . . . 38 VIM Tools. . . . . . . . . . . . . . . . . . . . . . . . 36 Volkswagen Wholesale Parts Dealers . . . 35 Volvo Wholesale Parts Dealers . . . . . . . 31 Young Chevrolet . . . . . . . . . . . . . . . . . . 23
Texas-Sized Trucks Take Spotlight at Dallas Auto Show The great State Fair of Texas opened Friday, Sept. 24, in Dallas with all the exciting exhibits and activities fairgoers have come to expect from this gigantic annual extravaganza. This year’s theme is Supersized Fun. While there has been a state fair since 1886, one of the biggest components of the fair—the auto show— obviously didn’t come along until after 1904. The auto show really skyrocketed after WWII. It has grown from 84,000 square feet to over 300,000 square feet of exhibits with two buildings and an outdoor truck area. Since Texans like to boast that everything is bigger and better at their state fair, it’s no surprise that the politically correct greener automobiles of the future such as Nissan’s 100 percent electric Nissan LEAF and Chevrolet’s 2011 Volt have to share space in the auto exhibits with giant gas-guzzling and proud-of-it SUVs and trucks. Making its official debut at the State Fair of Texas Auto Show, the new Ram Laramie Longhorn edition is loaded with over-the-top features. Also, Toyota is touting two made in Texas trucks, with the Tundra and the Tacoma both manufactured in San Antonio. Two new special edition Tundras have been developed especially for Texans: the Tundra T-Force
Limited Edition is for serious off-road enthusiasts who want to “make a statement” about their outdoor lifestyle. Only 500 were built for Gulf States area customers, and they include 20-inch wheels with all-terrain tires, body color pocketed fender flares, matte-black Predator Step tubes, special T-Force badges and other extras. The Tundra Texas Edition, offered only in the Lone Star State, has custom exterior badges, 20inch BBS alloy wheels and upgraded tires, and sparkles with chrome accessories. Chevrolet’s new Volt was another high-buzz vehicle, with its expanded range of 340 miles giving travellers the option of going further than most electric-only vehicles. Long lines of fairgoers were waiting for their opportunity to test drive the Volt. Initially available at dealerships in Texas, California, Connecticut, Michigan, New York, New Jersey and the D.C. area, starting price will be a little more than $41,000. However, purchasers get a $7,500 tax credit to bring the total cost down even before those inexpensive battery charges kick in. For updated information about the 2010 State Fair of Texas and the Auto Show, visit bigtex.com.
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 3
Book Store Gets N. Texas’ First Electric Car Charging Station Half Price Books installed North Texas’ first electric vehicle charging station on September 19 according to reports made by the Dallas Morning News. As the cars roll in to Texas later this year, drivers will be able to juice up their electric vehicles at the bookstore’s flagship location on Northwest Highway for free. The charger is relatively slow, and some cars will take hours to get a full charge. So the idea is to change consumer thinking about refueling, from waiting next to the vehicle to just leaving the car plugged in while shopping. “We’re thinking, lunch hour, when they come and shop anyway,” said Becky Gomez, promotions manager for Half Price Books. “We’ll give them a basket, too.” The charging station can send text messages to drivers about the charging status. Half Price will let customers use the stations for free until next September, when executives will decide whether to charge. Half Price buys renewable electricity from Green Mountain Energy. Gomez said the store location, at 5803 E. Northwest Highway, draws
customers who drive alternative-fuel vehicles, and she expects the chargers to get some use once the plug-in cars hit Texas. She added that Half Price Books executives wanted to have the first charging station in North Texas to compliment the company’s earthy image. The station isn’t a promotion by electric vehicle companies. Gomez found charging manufacturer Coulomb Technologies Inc. online, and Half Price Books paid for the station and installation itself. The station, with charging spots for two vehicles, costs about $10,000, including installation. Guy Mannino, president of charging station distributor Verdek LLC, said the station at Half Price is designed for customers to “top off the battery.” Public charging stations require a change in customer mindset, since refueling can take a lot longer than gasing up. “Park the car and go do something else,” Mannino said. Like shopping, watching a movie or eating out. Many car manufacturers plan vehicle displays at the State Fair of Texas.
A Texas-based independent insurance agency has proven they know what’s up with a new iPhone application that gives their customers access to important account information when they need it according to reports made by Insurance Journal. Recognizing that losses don’t always occur during business hours, Texas Associates Insurors (TAI) has developed an iPhone application that allows clients real time access to important documents—as well as to their agent—when claims happen, or even when they don’t. William Harrison Jr, president of Texas Associates, San Antonio, who spearheaded the development of TIA’s application, said he came up with the idea one day while in a client meeting. Recognizing, too, that many insurance companies now had iPhone apps for communicating with policyholders, Harrison figured that developing an app for TAI was a “natural next step” for the agency as method to communicate and provide services to its own customers. The company already has an online portal on its Web site through which clients can access account information. After writing out what he wanted to achieve with an application, Harrison met with his business partners, a
few clients and the application developer, to look “at a number of things we could do to help clients at the point of loss to gather necessary information to help them through the claims process.” In addition to access to information for claims purposes, Harrison thought it would helpful to be able to provide customers with access to things like their automobile insurance ID cards and health insurance ID cards. He credited his wife with the inspiration for that idea after she called him one day from the doctor’s office and asked that he fax a copy of their insurance card so she could get immunizations for their children. Harrison said while the iPhone app will be useful in communicating with the next generation of insurance customers it is really aimed at current clients, giving them the ability to access the agency on their own terms. TAI is letting those customers know about the availability of the application through e-mail releases and quarterly client visits. “We’re not using it at this time to provide quotes, just to reinforce the services that we offer,” he said. TAI has offices in Austin, San Antonio, and Smithville, and its affiliate NewFirst Insurors operates in El Campo and Rosenberg.
Texas Insurance Agency Creates Customer’s iPhone App
4 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Craig’s Collision Center Opens in Burleson, TX Craig’s Collision Center announces the Grand Opening of their newest ‘state-of-the-art’ auto collision center at 10836 South Freeway, Fort Worth, Texas 76140. The location opened for business mid September. It is staffed by experienced senior Customer Service Managers and the facility is managed by John Faulkner who has more than 23 years experience in auto collision repair. For more information visit www.CraigsCollision.com or follow us on Twitter and Facebook. This Craig’s Collision Center facility is a 21,000 square foot facility that is designed to be a ‘green’ community responsible facility from the interior lights and paperless (paperlite) internal operation, to the equipment used to repair our customer’s vehicles. Craig’s Collision Center is committed to their customers. “Craig’s Collision Center has been in the metroplex since 1979, we have a responsibility to our customers” Owner Craig Van Cleve affirmed. “There’s an old saying, if you do a good job for your customer, they tell three of their friends. If you do a bad job, they tell ten of their friends. We built our reputation on
taking care of each and every customer from the moment they call or stop by and follow up long after they pick up their repaired vehicle — we mean 100% Customer Satisfaction.” Van Cleve went on to say: “our office staff is completely professional from the customer service representatives to the customer service manager who works with you from start to finish. Our repair craftsmen are well trained at their respective skills and are required to undergo continuing education and certification on their job skills. At Craig’s Collision Center, every vehicle we repair is warranted for as long as you own your car. We make every effort to repair your car to its factory specifications before it’s returned to you.” As a convenience to our customers there is an Enterprise Rent-a Car on site. For additional information please contact Steve Morgan at 817/5532131 or smorgan@tachq.com. Euless, Texas based Craig’s Collision Centers has been family owned since 1979. There are five B&B Body and Paint in South Austin, North Austin San Marcos, Round Rock and Leander.
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www.davidmcdavid.com www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 5
Alllstate Says Houston Auto Theft Up 16% , Austin Up 13%
Austin car thefts increased about 13 percent last year from 2008, according to a report from Allstate Corp. The auto insurer reported thefts as whole decreasing about 2.5 percent in Texas last year, while a higher percent of stolen cars headed to South America and abroad. Houston experienced the highest increase in thefts, with 15.6 percent more cars stolen in 2009 than the year before. San Antonio saw the largest decrease, with 21.9 percent less vehicles stolen last year. The Dodge Ram Pick-up (2004) was the most stolen car, followed by the Ford F150 (1997) and the Honda Civic (2000). The Honda Accord (1994) was the fourth most stolen car followed by the Chevrolet Extended Cab pick-up (1997) and the Ford F250 (2004).
Texas Among Tax Havens Cited by Kiplinger’s Report
Texas has been listed as one of the top tax havens for retirees, Kiplinger said in a report. The publication cited the Lone Star State’s lack of a state personal income tax, and 6.25 percent sales tax rate (local taxes can raise that rate to 8.25 percent). Also, for homeowners 65 and older, $10,000 of the property’s assessed value is exempt from school taxes and $3,000 is exempt from other local taxes. That’s on top of the regular $15,000 homestead exemption for all homeowners. The state also excluded the inheritance tax and the estate tax is limited to federal estate-tax collections. Other states listed as retiree havens are Washington, Florida, Nevada, Colorado, South Dakota, Tennessee and New Hampshire.
Give us your opinion on matters affecting the industry.
write us! publisher@autobodynews.com
6 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Killeen, TX, Sees Catalytic Converter Theft on the Rise
Catalytic converter theft is on the rise in Killeen, TX. Tracey Williams, owner of Affordable Towing & Recovery in Killeen, told the Killeen Daily Herald that one of her impound yards was hit multiple times. “They’re just jumping fences and cutting catalytic converters off cars,” she said. “They are getting rid of them and selling copper.” Killeen Police Department spokeswoman Carroll Smith also confirmed there was an increase in catalytic converter theft. So far, Williams’ yard has been hit three times in the past week, including a theft of eight at once. Williams has filed reports with the police department, however, she is now running her own stakeout at night in order to catch the culprit. Williams said she’s having to spend about $600 extra a month for security measures to protect vehicles she was planning to sell. Teddy Mullins, co-owner of Bill’s Towing and B&T Salvage, said his business has been hit for about 25 to 30 catalytic converters over the past several years. Mullins said his company has been cutting converters off first thing.
Inequities Exist in Texas Franchise Laws for Auto Repairers
The Automotive Service Association (ASA) is concerned about inequities in the Texas Tax Code. Currently, in the Texas Franchise Tax Code, automotive repair and collision shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independently owned automotive repair businesses doing identical work. The tax code classifies dealership sales as "retail" and allows their service and repair business to be included under that banner. Texas independent repairers are seeking similar treatment. ASA is asking Texas repairers to contact their state legislators and urge them to help stop further audits of the automotive service industry until this issue is resolved. To view the letter or to easily send a letter to your Texas legislator, visit ASA's legislative website at www.TakingTheHill.com. Click on the "View Current Alerts" button. The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent auto service and repair professionals. Visit www.TakingTheHill.com for more information.
I-CAR CEO Search Ongoing
I-CAR Education Foundation Renamed ‘Collision Repair’
ASA may move NACE-CARS
Ford to Sell Mazda Stake
Automakers Oppose New Fuel Efficiency Grades Plan
Louisiana Start-up Changes its Name, Gets New CEO
I-CAR CEO and former Allstate executive, John Edelen has announced his retirement at the end of 2010. Speaking at the 2010 NACE-CARS event, Tom Moreland, chair of I-CAR's board of directors,said the organization is holding interviews over the next two weeks with candidates for the position of I-CAR CEO, saying that a search firm has told him that “there is a new CEO within the [existing] candidate pool.” Moreland said that I-CAR expects to be announcing a new CEO along December 1, 2010, timeline previously announced. Ford Motor has decided to sell the bulk of its 11% stake in Japan’s Mazda Motor and invest the money instead in emerging markets. Ford, which has been the top shareholder in the Hiroshima-based automaker since 1979, plans to slash its current equity stake of 11% to 3% or less. Ford has owned more than a third of Mazda, but started cutting its stake in 2008. The two companies have reached a basic agreement on the deal, Nikkei said. The Mazda shares held by Ford are worth a total of $515 million based on current stock prices.
At NACE-CARS 2010, the I-CAR Education began using its new name— the Collision Repair Education Foundation. The name and logo change is in keeping with the organization’s new mission and vision of supporting the future of the collision industry by enriching opportunities for collision repair students and schools. The overall goal is to support the pre-employment stage for students and the funding focus remains secondary and post-secondary career, technical school and college programs and their students.
The Alliance of Automobile Manufacturers—a trade group representing twelve major automakers—told EPA at a public hearing in Chicago Oct. 14 that it opposes a plan to set letter grades of “A+” to “D” for new vehicle fuel efficiency. “This letter grade format indirectly focuses attention on a single attribute (CO2) while ignoring other consumer needs like towing capacity, safety, comfort, cost and reliability,” the alliance said in prepared testimony. Auto dealers have also expressed concerns.
Amarillo Gets New Nissan Location, Formerly L2
ASA President Ron Pyle guaranteed that “there will be a show,” (announced as Oct. 17–19 in Las Vegas), during a Q&A session at the 2010 ASRW event. But Pyle suggested that “doesn't necessarily mean that will be what ultimately happens.” Pyle allowed that “because of the turn-out we had and the support we got from our vendors, we do have a lot of flexibility... more so than in the past six years [since NACE moved to Vegas].” Pyle said vendors have expressed interest in an East Coast show. “We’re going to take a real hard look at the show,” Pyle said, “considering all the options.”
McGavock Nissan is remodeling a vacant L2 Auto dealership at 4700 S. Soncy Road in Amarillo. L2 had a short history at the location, building the 29,212square-foot facility on 5 acres in 2007 and closing it a year later. McGavock Nissan will revamp the property so it can display about 100 cars in the front. The building will be renovated to fit the look of Nissan showrooms, General Sales Manager Jeff Irizarry said. McGavock Nissan’s service and parts department also will be moved from the dealership’s current location at 4401 S. Georgia St.
The start-up car company that wants to build its first manufacturing plant in Monroe, LA, has changed its name and appointed a new chief executive officer.V-Vehicle Co. is now called Next Autoworks Co. and will be headed by Kathleen Ligocki, previously CEO ofTowerAutomotive and GS Motors. She has led several global divisions of Ford. The San Diego-based company wants to produce a low-cost, fuel-efficient car at a 1,400-employee factory in Monroe but has been awaiting approval for loans through the Department of Energy’sAdvancedTechVehicle program.
Two years ago, Jennifer Smith’s mother died in an Oklahoma City car crash involving a young man who was so engrossed in a cell-phone call that he never saw the red light. His Ford Ranger pickup T-boned her RAV4 sport utility vehicle at the intersection, and Linda Doyle died at age 61. Now Smith is rapidly becoming the face of the movement against distracted driving. Smith left her job in Grapevine, TX, and founded a nonprofit advocacy group in Chicago called FocusDriven, which is spearheading the campaign against distracted driving.
Mother’s Death Impetus for Distracted Driving Campaign
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Silver Top Color Choice
Subaru Ads Poke Fun at ‘2011 Mediocrity’ Sedans
Mopar Offers 60+ Custom Grand Cherokee Parts
Mercedes-Benz iPhone App
OK Insurance Salesman Believed Responsible for Suburban OKC-Area Burglaries
For the 10th straight year, Silver is the top vehicle color, according to an annual report released by PPG Industries. Silver, along with gray and charcoal, was the color of choice for 31% of all new cars and trucks sold in North America. That’s up from 25% in 2009 and 20% in 2008. Black and white tied for second place with 18% in PPG’s annual color report. Red came in third with 11% and blue fourth, with 10%. Natural tones: brown, tan, golds, orange and yellow, rounded out the top five with 8%. Green was least popular, garnering only 4% of the color market, according to the company.
Subaru has launched a satirical TV ad campaign hawking the “2011 Mediocrity.” The obviously tounge-in-cheek fictional car comes in “medium crumb” or “stale biscuit” colors, and is designed to “get you from A to B without anybody noticing, and that’s a good thing.” On the web site, fake buyers can build their own boring sedan. However, the Facebook fan page for the 2011 Mediocrity includes comments from people who apparently don’t get the joke, such as “Sorry, but it’s horrid...” and “but it’s just UGLY.” No word on sales, yet.
Zurich has issued “Drive focused, drive safe,” a brief video presentation for businesses and individuals. The presentation can be viewed here: https://www.brainshark.com/zurich/DriveSafe. “It is senseless and tragic that lives are being lost for the sake of a phone call or a text, personal or business-related,” said Armand Fernandez, Chief Risk Engineering Officer, Zurich Services Corporation. “In the business world alone, there have been numerous vicarious liability cases that resulted in multi-million dollar settlements and caused reputational damage for the liable company.”
Mercedes-Benz USA has created an iPhone App to provide news, photos and event content. Users can access the app with their mbusa.com log-in and password to get Latest News - all the latest releases from Mercedes-Benz USA; Vehicle Info - browse photos, videos, technical data, pricing and other modelspecific data; Events - access all the news related to industry activities such as auto shows and lifestyle events including Mercedes-Benz Fashion Week; Contacts - reach out to MBUSA PR staff through the contacts page with phone number and email address listings.
Zurich Alert: Safe Driving
8 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Over 60 Mopar performance parts and accessories are available on the all-new 2011 Jeep Grand Cherokee: Wheels: Mopar offers five accessory wheels in a variety of sizes ranging from 17 to 20 inches. Chromed Parts: A variety of chromed parts give the 2011 Jeep Grand Cherokee a unique, customized appearance. Molded Splash Guards: Deluxe and flexible front and rear splash guards are molded to the Jeep Grand Cherokee’s contours for a custom fit. Skid Plates: Available for fuel tank, transfer case & engine. Complete list is viewable at www.mopar.com.
A door-to-door insurance salesman in Garfield County, Okla., is believed to be casing out homes while trying to sell insurance policies. Sheriff’s deputies told KFOR-TV in Oklahoma City that the salesman is employing high-pressure sales tactics, asking when a spouse might be home as a means to determining when the home might be unoccupied. So far he has visited nearly a dozen counties across Oklahoma, but officials in Garfield County noticed a trend when he
Pennsylvania Considers Doubling Auto Coverage
The Pennsylvania General Assembly is considering a bill to double the minimum coverage requirements for auto insurance in the state. The bill, introduced in September, would require at least $30,000 for the injury of one person in an accident, $60,000 for the injury of two or more people in one accident and $10,000 for property damage from one accident. The state’s requirements now are $15,000, $30,000, $5,000. Bills to increase minimum requirements have passed in Maryland and Wisconsin, which set its rates at $50,000/$100,000/$15,000.
visited after guns, laptops and televisions were suddenly reported missing. The burglaries, which started in late September, occurred at about the same time the salesman was marketing to more than 10 communities, according to the report. Investigators say they have identified the salesman and questioned him. They have also checked the out-of-state company he represents. So far, they have found no criminal or civil complaints against him or the company.
Houston PD Drafts an Auto Repair Record-Keeping Ordinance by Erica Schroeder
The Houston Police Department has been drafting a new city ordinance with the help of the Houston Auto Body Association (HABA) aiming to protect consumers from body shops overcharging or charging for work that hasn’t been done to vehicles. According to Sergeant Michael Provost, of Houston Police Department Vehicular Crimes Division, Houston has no regulations when it comes to automotive repair facilities and this has caused problems for consumers—especially those whose vehicles are coming directly from the accident scene while an owner is
taken to the hospital. Provost researched automotive repair facility record-keeping requirements in California, Michigan and Florida before drafting this city ordinance which he hopes will be successful enough in Houston to eventually be taken to the state level. “I think we’ve come up with a pretty good draft,” said Provost. Provost has been working on this bill since February of this year and has met with 70 to 80 companies and body shops. When asked by Autobody News how this bill would affect local body shops, Provost said, “It will probably slow down the process a little bit.”
Part of the bill requires body shops to have work orders signed by vehicle owners before any work can be performed, which could significantly slow down the cycle time for shops that have vehicles whose owners are hospitalized after a crash. Although this measure could gum up some things for body shops, Provost said it all came down to consumer protection in drafting this bill. “I don’t think it’s going to hurt business at all,” said Provost. The Houston ordinance, number 8-22, is titled “Automotive repair facility display and recordkeeping requirements” and also aims to erradicate confusion among body
shops when it comes to record-keeping requirements relating to estimates, customer consent to use aftermarket parts and to subcontract labor. Houston PD and HABA have their final draft of this ordinance done, and hope to have the final draft through HPD’s legal department in the coming weeks. Once the ordinance’s drafting is complete there will be a public hearing and the bill will go before the transportation committee for public comment before the full city council votes on it. The full text of the ordinance is as follows:
“8-22. Automotive repair facility display and recordkeeping requirements. (a) An automotive repair facility shall prominently display and have available for inspection the following documentation, in the common areas of its business premises: (1) A valid and current automotive repair facility license; (2) A valid certificate of occupancy; (3) A repair estimate form; (4) All labor and storage costs; (5) If applicable, a certificate of registration; and (6) If applicable, a storage lot license. (b) An automotive repair facility shall be required to maintain a record of each repair estimate and final invoice provided to a vehicle owner or authorized agent for two years following the date such estimate is provided to the vehicle owner or authorized agent. (c) If the repair work performed on a motor vehicle will exceed $100, the automotive repair facility shall obtain the vehicle owner’s or the authorized agent’s signature or a facsimile or electronic signature thereof on a repair estimate prior to initiating any repair on the motor vehicle. (d) A repair estimate, or attachments thereto, prepared pursuant to this section shall contain the following information: (1) The name, address and telephone number of the automotive repair facility; (2) The name, address and telephone number of the vehicle owner and of any authorized agent identified by the vehicle owner; (3) The date and time of the estimate;
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 9
(4) The year, make, model, odometer reading and license plate number of the motor vehicle; (5) The estimated number of days to complete the authorized repairs; (6) A description of the vehicle owner’s or authorized agent’s request for repairs to or concerns about the motor vehicle; (7) The estimated labor charges based on a flat rate, an hourly rate, or a combination of the two; (8) An itemized estimate of the repair costs; (9) Charges for shop supplies or for hazardous or other waste removal; (10) Charges for daily storage of the motor vehicle; (11) The terms of any parts and service guarantees; and (12) A space for an initialed notation indicating whether the vehicle owner or authorized agent requests the return of replacement parts. The automotive repair facility shall return replacement parts to the vehicle owner or authorized agent within a period of time not to exceed five business days from the date of a request made pursuant to this provision. (e) In the event that the cost of repairs exceeds the total amount of the estimate authorized by the vehicle owner or authorized agent pursuant to this section, then prior to completing
such repairs, the automotive repair facility shall obtain written approval (which may be in electronic or facsimile form) from the vehicle owner or an authorized agent. (f) It shall be unlawful for any automotive repair facility or employee thereof to: (1) Make repairs or charge for repairs that have not been expressly authorized in writing (which may be in electronic or facsimile form) by the vehicle owner or an authorized agent; (2) Misrepresent the condition of a motor vehicle; (3) Misrepresent that repairs have been made to a motor vehicle; (4) Misrepresent that certain parts and repairs are necessary to repair a motor vehicle; (5) Misrepresent that the motor vehicle being inspected or diagnosed is in a dangerous condition or that the vehicle owner’s continued use of the motor vehicle may be harmful or cause great damage to the motor vehicle; (6) Fraudulently alter any vehicle owner contract, estimate, invoice, or other document; (7) Fraudulently misuse any vehicle owner’s credit card or credit card information; (8) Make or authorize in any manner or by any means a written or oral statement which is untrue, deceptive or
PPG Hosts Celebrity and Custom Painters at SEMA 2010
PPG says it’s planning for an upbeat presence at the 2010 SEMA show in Las Vegas. PPG will have displays both inside—at booth #24813—and outside—in the Silver Lot #9. A retro 1950s theme and décor will set the tone for PPG’s participation in the four-day event. Celebrity painters, an expansive variety of custom vehicles, custom-painted guitars, industry classes, the new Vibrance Collection waterborne midcoat and more will be featured, the company says. Celebrity painters Gene Winfield, Charley Hutton and Dave and Jody Perewitz will be in attendance at the PPG indoor and outdoor exhibits. Winfield, regarded as a living legend, is one of the world’s premier custom car painters and builders. Hutton and Dave Perewitz are recognized for their spectacular custom paint schemes. Jody Perewitz, Dave’s daughter, is blazing her own distinctive custom paint path. All four will be on hand to sign autographs and discuss their techniques for painting with PPG Vibrance Collection custom finishes and Envirobase High Performance waterborne coatings. The PPG indoor booth will display two PPG-painted 1959 Cadil-
lac Coupe DeVille show cars—“WildCad,” a purple model customized by Gene Winfield and a custom restoration, this one yellow, by Todd Lewis of Xtreme Restorations, Slatersville, R.I. An exhibit of rock ‘n’ roll era guitars decorated by superstar painters of the custom car world will also be showcased. Artists include Mitch and Tom Kelly of Kelly & Son—the Crazy Painters; Charles Armstrong, Auto Art Studios; Dave Garcia, Dave Garcia Kustom; Keith Hanson, Hanson Custom Design; Charley Hutton, Charley Hutton’s Color Studio; Fred Sicoli, Killer Kreations; Dave Perewitz, Perewitz Cycle Fabrication; and PPG’s Paul Stoll, John Snyder and Chris Springer. Each has given his unique twist to these noteworthy instruments, PPG says. The new Vibrance Collection VWM5556 Waterborne Midcoat, specifically designed for use with PPG’s waterborne basecoat systems will be showcased with PPG representatives on hand to answer questions about it and other PPG products. In keeping with the '50s theme, PPG will also present several special events, spring a few surprises and distribute giveaways to attendees.
10 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue, deceptive or misleading; (9) Make false promises of a character likely to influence, persuade, or induce a vehicle owner to authorize the repair, service, or maintenance of a motor vehicle; (10) Substitute used, rebuilt, salvaged, or straightened parts for new replacement parts without notice to the vehicle owner and to the vehicle owner’s insurer if the cost of repair is to be paid pursuant to an insurance policy and the identity of the insurer or its claims adjuster is disclosed to the automotive repair facility; (11) Cause or allow a vehicle owner to sign any repair estimate that does not itemize the repairs requested by the vehicle owner or include the motor vehicle’s odometer reading at the time of repair; (12) Fail to provide a vehicle owner a copy of any document requiring the vehicle owner’s or authorized agent’s signature upon completion or cancellation of the repair work; (13) Subcontract repair work without the knowledge or consent of the ve-
hicle owner unless the automotive repair facility or employee thereof demonstrates that the vehicle owner could not reasonably have been notified; (14) Conduct the business of motor vehicle repair in a location other than that stated on the automotive repair facility license; or (15) Rebuild or restore a rebuilt motor vehicle without the knowledge of the vehicle owner in such a manner that it does not conform to the original motor vehicle manufacturer’s established repair procedures or specifications and allowable tolerances for the particular model and year, unless first obtaining a written acknowledgment and waiver of this requirement that is signed by the vehicle owner or an authorized agent. (g) It shall be unlawful for any authorized agent or employee thereof to commit any act prohibited by Section 1952.302 of the Texas Insurance Code in connection with the repair of damage to a motor vehicle covered under an automobile insurance policy. (h) Any record required to be maintained under this section shall be kept in written book form or in an electronic recordkeeping system.”
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Make us your one-stop shop today! www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 11
Industry Insight
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). He can be contacted by email at jyoswick@SpiritOne.com.
NACE Continues as Collision Gathering Place (Albeit Smaller) with John Yoswick
As it has for 28 years, the International Autobody Congress and Exposition (NACE) served as an annual meeting place for the collision repair industry when it was held in Las Vegas in mid-October. A bit smaller of a meeting place, given the continued sluggish economy in the United States, but still likely the largest gathering of the industry this year. Ron Pyle, president of the Automotive Service Association, which sponsors NACE, reminded about 1,000 attendees at the opening session that the event’s success enables ASA to provide key funding for a long list of industry organizations. Just since 2004, Pyle Ron Pyle said, NACE has provided 83,534 hours of training to 47,764 students. And NACE also has donated $2.5 million in booth and meeting space at the event to industry non-profits. The opening session has traditionally also included a type of “state of the industry” presentation by the shop owner who serves as chairman of the event, and a keynote speech by a well-known celebrity, sports or political figure, or motivational speaker. This year, however, Pyle said NACE organizers chose to kick off the event with a presentation that would give attendees something they could “go and put into practice in their business.” Marketing consultant Kelly McDonald offered advice on how shop owners can use the growing diversity of the population to improve their business. McDonald, for example, noted that for the first time in history, four generations of Americans are in the workforce, and each brings its own styles and expectations to the workplace. The youngest Kelly McDonald generation of workers, she pointed out, have grown up with new gaming
systems every year, so are very adaptable to new technology. They are accustomed to multitasking, she said, and indeed may excel when given many smaller tasks rather than one big project. This youngest generation (currently 19- to 32-years-old) is 70 million strong, second only to the Baby Boomer generation in size, and is also projected to be the wealthiest generation in American history. McDonald said marketing to this group shouldn’t include efforts to be “hip.” They instead want straight information, and want to work with businesses they view as being diverse, “green” and supportive of the community or charitable causes. She cited several examples within the collision repair industry of shops using diversity in the population to their advantage. Keenan Auto Body, which operates nine shops in Pennsylvania, reaches the growing Korean and Russian populations in its market by advertising in specialty newspapers aimed at those audiences. The company recruits new employees from within these communities, working with an immigration attorney as needed to help get these potential employees’ residency and work documents in order. By then having speakers of those languages on staff at its shops, McDonald said, Keenan attracts customers who like interacting with “someone like them” or who may have limited English skills.
A Look At Standards Another session at NACE focused on the value of certification or standards within the industry. Among those on the panel was Leslie Upham of Thatcham, who discussed that organization’s role in the implementaLeslie Upham tion of shop and repair standards in the United Kingdom. Upham said creating such standards should include input from all segments of the industry, but also should be done on a prescribed timeline.
12 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
“Take time to get consensus, but don’t take too long,” said Upham, adding that the process in the U.K. took about a year. She said the standards set guidelines for “man, machine, methods and materials,” and three levels of certification are available to allow for different types of shops (those doing only cosmetic repair, for example). Certified shops are allowed to use the “Kitemark” logo, which is a independent quality mark recognized by 80 percent of U.K. consumers. She said there are about 1,700 collision repair shops in the U.K. involved in insurer programs, and Thatcham’s initial goal is to get about 1,400 shops certified. It is about halfway to that goal, with about 700 certified shops, two-and-a-half years into the program. The number of shops in the U.K. has fallen from about 18,000 20 years
ago to about 4,500 today. The panel was asked if certification programs lead to shop closures. Jeff Patti, an insurance company executive who is leading one of the efforts to create standards in the United States, said he sees such standards more as a differentiator, to help consumers locate a shop with the appropriate equipJeff Patti ment and training. “It’s kind of a crap shoot right now for a consumer. When they take their car to a shop they have no idea of the qualifications of that repair facility,” Patti said. “And yes, unfortunately, some smaller shops may go out of business, but it is what it is. We have to be mindful of that, but we as an industry have to provide the consumer with a proper repair.”
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 13
Mitchell Announces Interface with Sherwin-Williams® at NACE Mitchell International, Inc., developer of workflow and performance management solutions to the collision repair industry, announced at the NACE expo on October 11, a seamless bi-directional integration between Mitchell RepairCenter™ and the SherwinWilliams® FormulaExpress® online color formula retrieval system. The integration helps collision facility customers save time and reduce errors
The FormulaExpress product is part of Sherwin-Williams Automotive Finishes’complete line of paint and coating systems for the automotive refinishing industry. Mitchell’s RepairCenter is the industry’s first Shop Workspace that enables collision repair facilities of any size to select the tools they want to manage the repair, the customer and the business the way that best meets their needs, and to add modules as their business grows. “The combining of the two is a very powerful tool for body shops,” said Jason Bertellotti, Vice President of Repair Solutions for Mitchell International. Bertellotti added, “RepairCenter offers shops the best in business management systems, repair information conSherwin-Williams’ Brian Shenk, IndyCar Driver Paul tent and customer satisfaction Tracy and Mitchell’s Jason Bertellotti announce services functionality. We are Mitchell and Sherwin-Williams’ partnership for Formuladelighted to partner with SherExpress on the NACE floor win-Williams to deliver a by eliminating the need for shop personvaluable new service to Mitchell’s innel to rekey vehicle and repair order industry-leading solutions for collision formation within FormulaExpress. repairers.”
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The seamless bi-directional integration of Sherwin-Williams® FormulaExpress® within Mitchell’s
Adam Chafe, Vice President of Marketing for Sherwin-Williams Automotive Finishes, said, “Our partnership
The route body shops used to have to take to integrate the information from RepairCenter with the information from FormulaExpress
RepairCenter improves the accuracy of overall job costing. Shops simply enter their information once and the system will automatically transfer accurate paint material costs from FormulaExpress back into RepairCenter. This helps shops manage their materials more efficiently, improves technician efficiency, and ensures that invoices sent to customers and insurance companies reflect the true list price of the paint used.
with Mitchell represents the first time that shops have access to more accurate overall job costing information. Instead of a ‘rule-of-thumb-based’ cost estimate, RepairCenter customers now have the ability to create accurate estimates using the true paint costs based on Sherwin-Williams’ list price.” For more information, please contact Mitchell at 800-238-9111 or Sherwin-Williams at 800-798-5872 or go to www.mitchell.com.
Automotive Management Institute Honors Class of 2010 at NACE
The Automotive Management Institute (AMI) honored its 17th class of Accredited Automotive Managers (AAMs) on Oct. 11, 2010. The graduating class of 2010 had 95 automotive service professionals who earned the Institute’s prestigious AAM designation by successfully completing AMI courses and accumulating a minimum of 120 credits. The continuing education offered by the Institute helps automotive service professionals improve their business management skills. In addition to providing business management classes, the Institute offers the AAM designation, the industry’s first business education accreditation.
AMI courses concentrate on five core areas of business management education: financial management, marketing and sales, operations and service, man-
AMI’s graduating class of 2010 at NACE
agement and administration, and personnel and human resource development. “It is my pleasure to recognize these individuals for their achieve-
ments,” said AMI Chairman Tony Passwater, AAM. “The character and dedication of these men and women make them an asset to our industry.” AMI Executive Director, Toni Slaton, AAM, added, “This elite group of automotive service professionals join the 1,486 before them who recognize continuing education has become vital to ensuring career and business success. I applaud their diligence to plan for the future.” The graduation took place during an awards luncheon held during Automotive Service Repair Week (ASRW) in Las Vegas. AMI was established to answer the demand for continuing educa-
tion tailored specifically for the business needs of the automotive service industry. The Institute offers the Accredited Automotive Manager (AAM) designation, the first business management accreditation exclusively for the automotive service professional. To date, AMI programs have attracted more than 195,000 enrollments throughout North America. AMI is a not-for-profit educational foundation to which tax deductible contributions can be made. For more information about the Institute, its curriculum, or EXCEL, please contact AMI at (800) 272-7467, ext. 241, or visit AMI Web site at http://www.amionline.org.
NACE-CARS 2011 in Vegas? by John Yoswick
Although NACE organizers earlier this fall had announced October 2011 dates for next year’s event in Las Vegas, don’t make your plane reservations just yet. Ron Pyle of the Automotive Service Association (ASA), the sponsor of NACE, hinted strongly at the conclusion of this year’s show that the event may return to some sort of rotation among several U.S. cities, perhaps starting even this coming year. “We’ve secured dates here (in Las Vegas). That doesn’t necessarily mean that will be what ultimately happens,” Pyle said at the conclusion of NACE last month. “Because of the turn-out we had and the support we got from our vendors, we do have a lot of flexibility, more so than we’ve had in the past six years.” Pyle said although NACE previously always had a boost in attendance when it was held in Las Vegas, there has been a “diminishing return” in holding the event there every year for the past six years, and vendors have expressed interest in “an East Coast show.” “We’re going to take a real hard look at the show the next few weeks and make some decisions,” Pyle said. “We’re seriously considering all the options, and they’re all open to us. I want to be very clear: If it’s here next year, it will be successful. And I will guarantee you this: There will be a show.”
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 15
On Creative Marketing
Tom Franklin has been a sales and marketing consultant for forty-five years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
How One Impression Multiplies with Thomas Franklin
A while back I made a sales call at a high-quality body shop in my area. There was no one at the front desk so I took a seat to wait. I didn’t mind waiting since I had something to gain from being there. A few minutes after I arrived, a potential customer pulled up out front and came up to the front desk. Ten minutes passed and no one came out. The customer began to pace around. Ten more minutes passed and still no one appeared to take his information. He turned around, walked out and drove away. Is the loss of just one potential customer any big deal? Another shop I visited this past week had just completed painting ground effects on a brand new Camaro. The new car owner was a local doctor who wrote a glowing letter of appreciation for the fine color match and the fast service. He also mentioned that he had first approached a competitor’s shop a short
distance away but had been treated rudely by the estimator he spoke to there. So he checked the Internet for an alternative shop. He was so pleased with this shop’s work that he planned to share his experience at the Camaro Club he belonged to. The loss of this one customer had a ripple effect. The loss was multiplied many times. A body shop isn’t much like a young ball player being sought by a scout for a major or minor league team. But there is always the possibility that an insurance company or other potential referral source has a scout, pretending to be a potential customer, checking out possible shops for a direct repair or referral relationship. And then there are also fraud investigation agents who might come around. A shop owner never knows if a potential customer might have some hidden motive for being there. It might be a wise decision to treat each
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customer as though he or she represents much more than meets the eye. So assuming you agree with me that every potential customer is important enough to warrant special attention, what can you do to ensure that the customer knows he or she is getting it? Like the guy I described who walked out of the shop after waiting twenty minutes, these days everyone hates to wait. Much of our society revolves around instant food, instant printing, instant photos and more. If you eat out a restaurant for the first time and have slow service or faulty food, do you go back? Not likely. Nevertheless, we all know there will be days when it seems everyone comes into the shop at once. It seems unavoidable to keep at least a couple of them waiting. How can you convey this “special attention” intent when you’re swamped with too many prospective customers?
During the many years I spent in sales and marketing, I attended many training programs. One of the best pieces of advice I received had to do with calling prospective customers to set appointments. The instructor said to avoid being brushed off when you make a call, always start by asking something like, “Am I interrupting you right now? Is this a bad time to speak to you?” Immediately the person you’re calling knows you respect his or her time and you may get a couple of minutes to set an appointment. I took this advice to heart and whenever I call anyone, I always ask if I’m calling at an inconvenient time. I’ve found that it’s always best to call someone when his or her attention isn’t focused on some more important issue. Perhaps a variation of this might work with collision repair customers waiting for an estimate. A minute or
two asking each person if they’re under some time pressure should yield enough answers to get the most impatient people to the front of the line. And you will definitely have created the “special attention” perception you wanted. Out of every six people, it’s not likely more than one or two will really be in a hurry, and if you take care of them quickly, they’ll remember the special service. Even those who are willing to wait a few minutes will be impressed by your concern for every customer. And one of those people may be the one that belongs to the Corvette Club or the Camaro Club and will spread the word that yours is the shop to go to.
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Carfax QuickVIN Connects Car’s License Number to VIN
Carfax QuickVIN is a new, free tool available to SMS providers that matches a car’s registered license plate to instantly return the vehicle identification number (VIN) as well as the year/make/model of your customers’ cars. It can avoid costly mistakes that can plague other shops. According to industry insiders, one out of every four automotive parts that service shops order is returned. Think about how many parts your store orders in a year. Now consider the extra costs you’re incurring to return overstocked or incorrect parts and the additional time it takes to receive new ones. Chances are those numbers are pretty significant across the board. Good service means business. Timely repairs, competitive rates and increased attention on customer service results in more repeat business and word-of-mouth advertising from satisfied customers. Carfax QuickVIN gives you the correct VIN to help ensure you order the right parts, operate more efficiently and ultimately increase your profit margin. For more information about Carfax QuickVIN, email quickvin@carfax.com.
ts? partts? Kia par o Kia for itin ng for ing wait o wa Tired of ck. k. quick you qui em’’ too you git’ em We We’ll git’ ts! partts! yourr par alll you foor all firsst for Cal Call uss firs
LKQ Announces Winners of 2011 Calendar Contest
LKQ’s Annual Calendar Contest drew over 300 entries from customers and automotive enthusiasts all over the U.S. and Canada. Entries ranged from hot rods and sports cars to trucks and classic vehicles, making it difficult to choose just twelve winning photos for the 2011 LKQ calendar. “Every year we get a great response to the Calendar Contest, and choosing the winners is always tough since we receive so many great submissions, “ says Laurie Garcia, LKQ Vice President. “We think everyone will really enjoy the vehicles we picked for the 2011 calendar. Each one shows hard work and attention to detail that we can all admire. Congratulations to each of our winners!” LKQ Calendars are popular for their coupons, great photos, and information about the featured vehicles. Coupons are for special offers otherwise not available. Get a free copy of the calendar by sending a request to CalendarContest@LKQCorp.com Find more information about Calendar Winners and their pictures on our Facebook and Flickr pages.
2011 Calendar Contest Winners: January: Mark Reeves (Woodstock, GA) - 1970 Buick Motion GSX February: Richard Valdez (Lodi, CA) - 1954 Chevy Belair Custom March: Keith Van Eyck (Marinette, WI) - 1931 Willys Knight Coupe April: Bill L. Schwindt (Black Forest, CO) - 1949 Dodge B-1-F 1-1/2 ton May: Fred Heckroth (Woodruff, SC) - 1967 Pontiac GTO June: Chuck Irwan (Knox, PA) Born Again Auto Body - 1969 Dodge Charger July: Paige Givens (Frederick, MD) - 1970 Pontiac Firebird August: Ronnie Rose (Grayson, KY) - 1969 Plymouth Roadrunner September: Chris Berns (Garnavillo, IA) Top Gun Customs - 1949 Chevy ½ Ton Truck October: Barry & Erin Dohrmann (Foley, MN) - 1929 Ford Model A November: Jason Eixenberger (Rapid City, SD) - 1965 Chevy Malibu SS December: Mick Kreszock (Boone, NC) - 1956 Chrysler 300B For more information please visit www.lkqcorp.com.
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85 Billion Mile Annual Shift & Specialists Top Service Growth Autobody News
by Jim Lang, Lang Marketing
Between 2010 and 2013, more than 340 billion car and light truck miles will shift from vehicles five years and younger to a much older mix of vehicles. Vehicles in the U.S. five years and younger are typically driven approximately 40% more miles annually than the average older light vehicle. With the significant downturn in new car and light truck sales beginning in 2008, the number of vehicles five years and younger on U.S. roads by the end of 2010 will be nearly 17 million units less than it would have been had new sales continued at the annual level recorded from 1999 through 2007. By 2013, the total number of “lost” younger vehicles (five years and under) could top 26 million units. As a result of this historic reduction in vehicles five years and under, older cars and light trucks are being pressed into “harder” service as total miles by all types of light vehicles inched up over the past few years.
340 Billion Miles Shifting: 2010 - 2013 Lang Marketing estimates over 340 billion miles (one-third trillion) will be transferred from newer vehicles (five years and under) to older cars and light trucks on U.S. roads from 2010 to 2013.
Not All Miles Driven are Equal This means these 340 billion miles will generate more aftermarket product volume, since this wear-and-tear is accumulating on older vehicles between 2010 and 2013, rather than newer cars and light trucks (five years and younger). Miles on older vehicles result in greater repair and maintenance product use per mile traveled than the same miles driven by newer cars and light trucks. Record-Setting Accumulated Mileage Odometer readings of light vehicles in
November 2010
the U.S. (accumulated mileage) are setting new records. As older vehicles are being driven more annual miles than ever before, accumulated mileage on U.S. vehicles is reaching new heights. This means many aftermarket products are likely to gain an additional replacement cycle because older vehicles are accumulating record-high total mileage. Vehicle-Age “Sweet Spot” Getting Broader As a result of more mileage on older vehicles in the U.S., the upper-end of the vehicle-age “sweet spot” for aftermarket product use will migrate to higher vehicle age levels.
Strong Recipe for More Aftermarket Growth Over one-third trillion miles shifting from newer to older vehicles on U.S. roads and older vehicles being driven record-setting miles per year mean that aftermarket product use per miles traveled on U.S. roads for cars and light trucks continues to increase. This is a strong recipe for aftermarket product growth through 2013.
Specialists Top Service Market Growth Two types of car and light truck specialty outlets are generating over 60% of 2010 light vehicle Service (DIFM) market product growth. Repair Specialists (outlets offering a limited menu of vehicle repair and maintenance) and Foreign Specialists (outlets focusing on the repair and maintenance of foreign cars and light trucks) combined for a 3.6% average sales gain between 2004 and 2009, 80% faster than the growth pace of all other non-Dealer service outlets. Repair Specialists Outlets offering a limited menu of light vehicle repair and maintenance
(Repair Specialists) rank third in 2010 Service market product volume, installing nearly one-quarter of light vehicle aftermarket products. Over the past five years, Repair Specialists averaged 3.3% annual product growth, second among all service outlets, while posting the largest dollar gain in products installed on cars and light trucks at user-price.
Foreign Specialists Focusing on the repair of foreign cars and light trucks (imports and transplants), Foreign Specialists achieved the strongest annual product growth over the past five years, 4.1%. Concentrated on both coasts, as well as larger metropolitan areas, Foreign Specialists will generate nearly onefifth of total light vehicle aftermarket product expansion over the next five years.
Service Bay Shift Although Lang Marketing projects the number of car and light truck service bays in the U.S. will decline approximately 22,000 over the next five years (steadily increasing the average number of cars and light trucks per bay nationwide), Repair Specialists and Foreign Specialists will each expand their outlet count as well as their number of light vehicle service bays. Between 2009 and 2014, Lang Marketing projects Repair Specialists will climb from 18% to 20% of total light vehicle service bays in the U.S.; while Foreign Specialist bay share will increase from 6% to 7% during this five year span. Brand Implications Service market growth of Repair Specialists and Foreign Specialists has important implications for aftermarket product brands installed by nonDealer outlets.
Repair Specialists purchase a different mix of product brands than other types of independent service outlets (particularly Service Stations and Garages). Foreign Specialists also have specific brand preferences, with OE brands, OE-supplier brands, and Foreign brands accounting for most of their purchases.
Distribution Channel Impact Integrated distribution will benefit from the growth of Repair Specialists in Service market product repair over the next five years; while the Import channel will gain volume from the Service market share growth of Foreign Specialists.
Historic Aftermarket Product Channel Shift Over $11 billion in light vehicle products will change aftermarket distribution channels between 2008 and 2014, at user-price. Underway for more than 24 months, this will be the largest aftermarket sales percentage shift in over 40 years, and the greatest-ever dollar-volume transfer among channels.
Forces Driving Change Three forces are driving this historic shift in distribution channel volume: a reduction in Dealer strength, expanding integrated distributors, and the explosion of foreign vehicle (import and transplant) product sales.
Winners and Losers Three of the five major aftermarket distribution channels will expand their sales share, exceeding the average pace of aftermarket product growth between 2008 and 2014; while two channels will diminish in product share and are likely to recede in product volume during this six year span.
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 19
Integrated Distribution The Integrated channel will achieve the largest increase in aftermarket product share between 2008 and 2014, stretching its sales lead over all other distribution channels. Integrated distribution (characterized by products not changing ownership or franchise affiliation from the time they are purchased from Manufacturers to the point of sale to ultimate users or installers) will grow at a pace nearly 50% faster than the average rate of aftermarket expansion between 2008 and 2014. Integrated distribution is gaining strength in the commercial (wholesale) parts market as well as in the distribution of foreign vehicle products and across the DIY automotive sector.
Traditional Distribution The Traditional channel (aftermarket distribution involving traditional Warehouses and/or Jobbers) will increase its light vehicle product share nearly onetenth between 2008 and 2014. Longterm success of the Traditional channel will depend on its ability to substantially penetrate the fast-growing foreign vehicle DIFM market.
Specialized Distribution The Specialized channel (distribution involving a limited range of products or involvement in a specialized segment of the aftermarket) will decline approximately one-tenth in product share between 2008 and 2014. Much of this reduction will reflect the struggle of accessory sales, as well as growing competition from Integrated distribution. OE Distribution The OE channel will diminish in Service market product share between 2008 and 2014. The declining number of vehicles under six years of age (the primary vehicle mix repaired by Dealers) will reduce Dealer bay volume; while changing buying habits of installers and strong competition from independent distributors will significantly erode Dealer redistribution sales. OE channel aftermarket share will drop nearly one-fifth between 2008 and 2014. Import Channel The Import channel (distribution involving import Warehouses and/or Jobbers) will increase its aftermarket
20 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
product share more than one-fifth between 2008 and 2014, fueled by rapid growth of the foreign vehicle aftermarket as well as the emergence of strong and innovative foreign parts distributors with regional and national reach.
Rebounding Service Stations and Garages Revitalization of Service Station and Garage car and light truck Service market product share was triggered by the sharp drop in Dealer service work, resulting from widespread Dealer closings during the past 24 months and the conversion of many cancelled Dealers to used-vehicle outlets with bays. While Dealer attrition will continue over the next two years, Service Station and Garage repair market expansion will increasingly depend on their ability to penetrate the fast-growing foreign vehicle repair market.
Slowing Service Station and Garage Attrition While the number of Service Stations and Garages dropped at a 1.5% average annual rate between 1998 and
2008, Service Station and Garage closings slowed during the past 18 months to less than a 0.6% yearly pace.
Service Bay Share Although declining in population over the past ten years, Service Stations and Garages still operate the largest number of car and light truck service bays in the U.S. At mid-year 2010, Service Stations and Garages accounted for an estimated 340,000 bays nationwide, nearly 30% of all car and light truck service bays. As Dealers close, Service Stations and Garages, because of their large number, offer a convenient alternative to consumers seeking vehicle repair. Lang Annual in Digital Format For complete analysis of all major distribution channels over ten years, see the all-new 2011 Lang Annual, digitally published in conjunction with the AAIA Factbook.
From Aftermarket Insight™ by Jim Lang, President of Lang Marketing Resources, Inc., www.langmarketing.com.
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
Corvette’s Etched Glass Mystery, Was it the ‘Hand of Turin’? with Gonzo Weaver
A mid 90’s Corvette with a couple of problems to take care of came into my shop some time ago. The first problem was an intermittent start and the other problem was that the suspension warning light stayed on all the time. The first problem had been looked at many times by a dealer in Florida where the owner had a second home and where he stored the car for those times he would be there. The car sat around a lot and the owner was getting very upset that it wouldn’t start when he would show up at his vacation place to drive his car around. Apparently not much was solved but like most other electrical problems if it’s intermittent and you can’t duplicate, read a history code or at least see the problem… most anything you do is just a guess. The lucky guy to actually see the problem looks like the genius and in the customers mind all others that have tried have reached some level of stupidity… or worse. Someone tried a new starter, another battery, a little of this and some of that. None of which fixed the problem. Luckily for me, the Vette went through its death rolls right there in the shop for me. It turned out that the thin wires that make up the security system which are attached to the ignition switch tumbler had broken. As you turn the ignition switch the wires must twist with the switch and like anything else that moves, it will wear out—it did. I replaced the unit and all is well. The second problem
required a little more effort and a whole lot of waiting. The driver’s side shock had gone bad. On top of the shock is an electronic sensor that had broken its little gear and the shock had “locked-up” which is probably why the sensor failed. But, the only place that still had parts for it was in Florida. Imagine that. Drive the car halfway across the country to Oklahoma, to my shop, and find out the only replacement parts are right where you were to start with. Go figure. It was about a week or more before the replacement parts showed up. The car was finished and sent home with the owner. All parties are paid up, car is starting with no problem, and the suspension is working as it should. What could be wrong? A few days later my daughter Mandy got a phone call: “Yes, I remember the car…. really? I wonder how that happened. Are you sure about that? Hmmm, I’ll check with the shop. I can’t think of any way that could happen… OK, I’ll call you back when I know something. Thanks for letting me know, Good-bye.” I was standing nearby a little puzzled as to who and what the call was about. Mandy turned to me. “Dad, you’re not going to believe this. That Vette you just finished the other day. The guy’s wife insists that there is human hand print in the windshield. I don’t mean ‘on’ the windshield. She says it’s permanently “etched” into the glass.”
“You’re kidding,” I answered, wondering how this miraculous event could occur. “Nope, she’s dead serious. She told me that she took the car to a glass shop and they couldn’t get it out. They tried all kinds of chemical cleaners and it’s there as plain as day.” Mandy recounted. “Oh come on, this is ridiculous. Let me guess, it’s my hand print right? How in the world would I have done that? Anything that would carve a hand in a windshield would have carved whosever hand did it,” I said in a fit of confusing reactions. “Have her bring the car back and let me take a look at it,” I told Mandy. “Ok, but I don’t think that’s going to happen, they’re pretty upset with you.” Upset or not, to me there is only one way to resolve things like this. “Bring the car back to the shop that has done the work so they can see what’s going on, or I’m coming up to see it.” But, do you think that happened… nooooo. Not a chance. A few weeks later I ran into the husband at a meeting I was attending. It was a meeting of some of the top businesses in town, some of the largest but also some of the best. I wouldn’t think there was anybody in this room that would have any misunderstandings about any service work done for them since we all are basically in private business and deal with people, parts and things like this every day. I asked him why he didn’t
bring the car back to me to have it looked at. There again, I was surprised at the answer. “You obviously have no idea of the concern that my wife is having over this issue. The trauma caused her to go to a rehab in Denver for a nervous condition. I had to take the car into a glass shop and have the windshield replaced with a new one. That finally made things right with my wife. So I don’t think I’ll be bringing anymore work to you. She’s still very upset but, she is on medication for it now.” In all my years of working with the general public, nothing surprises me anymore. You think you’ve seen it all then some crackpot, off the wall lady like this comes along. I’m not the type of person who wants to think that I’ve done something wrong and caused someone to have to go to rehab, but then I’m thinking… You’ve got the time and money to go to rehab over a magical defect in a friggin’ windshield? The problem here ain’t the windshield. People and their emotional states can be the hardest automotive diagnostics you’ll ever run across and if they could be left out of the equation things would go a lot smoother. There’s one thing I can say about cars that I can’t say about their owners. Cars are never crazy, wacky, or just plain nuts in the need of counseling. They’re just a car. I’d like to have a ‘professional’ opinion on these people but, I’m no shrink. I’m only the mechanic. I’ll leave the emotional evaluations to a doctor.
ALLDATA Introduces the Next Generation of ALLDATA Collision
ALLDATA LLC, the leading provider of vehicle manufacturers’ service and repair information for professional repair shops, announces the release of ALLDATA Collision S3500, the high-performing next generation of the popular ALLDATA Collision repair product. At the core of ALLDATA Collision S3500 is an innovative search feature, which makes acquiring information much faster than previous generations. The intelligence behind the robust database allows information to be
located instantly. “Smart” filtering further speeds up finding relevant information by type or category. ‘The OE repair information at the heart of ALLDATA Collision is all still there,” said ALLDATA Senior Collision Program Manager, Dan Espersen. ‘But now, it’s easier than ever to locate the procedures and diagrams that a shop needs to efficiently repair a vehicle, whether it’s sectioning procedures, weld types, reset procedures or air bag information. It’s all still there in a new easier-
to-use package.’ Electronic estimate integration is enabled with NuGen IT, Inc.’s Collision Data Exchange (CDX) software, to automatically link and retrieve the exact OE repair information relevant to the repairs listed on an estimate. It is compatible with all the major collision estimating programs. Pinning is a feature unique to ALLDATA Collision S3500, which allows technicians to keep articles open for reference while they continue to gather the information neces-
sary for a proper repair. “Several articles can be opened and pinned so that technicians and estimators have all the information on a particular procedure at their fingertips,” says Espersen. “This can help a shop create accurate repair plans, reduce the need for supplements and streamline operations.” For more information on ALLDATA and ALLDATA Collision S3500, please visit: www.alldata.com/vegas10 or call 800697-2533.
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 21
ALL OEM Information with Tom McGee and Jeffrey Webster
Tom McGee is National Account Manager for ALLDATA Collision. He has had a long career with I-CAR, including as President & CEO. Tom is an ASE certified Master Collision Repair/Refinish Technician. He has also run his own collision facility and been a career and technical school instructor. He can be reached at Tom.McGee@alldata.com. For other Tom McGee articles in Autobody News, go to: http://www.autobodynews.com/tom-mcgee/index.php — JEFF WEBSTER is an ALLDATA Technical Writer.
To Sublet or Not to Sublet—That’s the Question. The Answer is OE Repair Information.
Here’s a scenario that may sound familiar. A few days after you repaired the collision damage to your customer’s 2010 pickup, a cold-front moved in, and an early winter seemed right around the corner. A week or so later, the pickup re-appeared at your shop, with the owner complaining of strange noises coming from the front end. Did you miss something? Is it related to the work you did? You quickly determine that the noise is suspension related. But can you really say it was not linked to your repair? So, do you just say, “Not our fault,” and send the customer on his way? There are two things wrong with this solution: 1. You probably just lost a repeat customer, along with any referrals she might send your way. 2. You just sent some possible revenue out the door.
Information is Power The answer to this dilemma is information… accurate information… OE information! Here’s how OE information can help in a situation like this one: 1. If you can give your customer a legitimate reason for the condition – a reason unrelated to your repair – you immediately defuse the situation. 2. If you have the procedures to actually fix the problem, you will cement your relations with the customer. 3. If the problem is unrelated to your prior repair, you could profit from this unexpected opportunity. At collision shops, mechanical work is traditionally sublet to other facilities – often due to limited information. Outsourcing work not only cuts off a source of revenue, it can also mean a loss of control over scheduling and, ultimately, delivery of the vehicle. With accurate manufacturers’ repair information, a collision shop can reduce unnecessary outsourcing. In addition to detailed repair procedures, manufacturers’ information includes technical service bulletins (TSBs), which describe known problems and solutions for specific vehicles. Many auto dealers and mechanical repair shops always check TSBs first. Here is a Tech Tip which was ex-
cerpted from a typical manufacturer’s TSB found in ALLDATA Collision. It concerns a suspension issue that was identified on the 2010 Chevrolet Silverado and several other General Motors trucks and SUVs.
Strut Noise on GM Vehicles Subject: Squeak/Creak/Rumble/Rattle Type Noise Coming from Front of Vehicle During Low Speed Maneuvers in Colder Ambient Temperatures (Enlarge Upper Inside Diameter (ID) of Strut Jounce Bumper)
Models: 2007-2010 Cadillac Escalade, Escalade ESV, Escalade EXT 2007-2010 Chevrolet Avalanche, Silverado LD, Suburban LD, Tahoe 2007-2010 GMC Sierra LD, Sierra Denali, Yukon, Yukon XL LD, Yukon Denali XL
Condition Some customers may comment on a squeak, creak, rumble or rattle-type noise coming from the front of the vehicle (may sound like it’s coming through front of dash) during low speed maneuvers. The noise may be most noticeable in colder temperatures (typically 0°C (32°F) or lower). This noise will most likely be heard during small to medium suspension travel such as in parking lot maneuvers, over small bumps, when stopping.
22 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Cause The front strut jounce bumper inside diameter to the piston rod of the strut may be experiencing a slip/stick condition during certain colder weather ambient conditions. Always refer to ALLDATA® CollisionSM for safety procedures, identification of material types, recommended refinish materials, and removal and installation procedures.Always refer to the vehicle manufacturer for questions relating to applicable or non-applicable warranty repair information.
Correction 1. Test drive the vehicle under the same type of weather conditions (typically 0°C (32°F) or lower) and low speed maneuvers mentioned by the customer in order to verify the concern. 2. Using Chassis Ears, verify that the noise is most noticeable at the
upper strut mount area. The concern may be on one or both sides of the vehicle. 3. By jouncing the vehicle, the noise or vibration can be isolated using a stethoscope, and may possibly be felt in the vicinity. 4. Raise and support the vehicle. 5. Remove the LH and RH strut assemblies from the vehicle. 6. Disassemble the coil spring and top mount assembly from each
strut. 7. Remove the jounce bumper (5)
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from the top mount assembly (3) (Figure 1).8. Secure the jounce bumper upright in a bench vise. Only clamp the lower portion of the bumper to
allow the upper portion of the ID to remain at rest.
Note A standard drill bit will not cut the ID of the jounce bumper. The jounce bumper will comply and stretch around the bit, then return after the drill is removed.
9. Prepare a single flute countersink bit or a bladed cutting bit, or equivalent, in a die grinder, Dremmel® Tool, or equivalent (Figure 2).
Note Do Not attempt to drill out the jounce bumper while attached to the strut top mount assembly. The bumper must be removed from the top mount assembly.
Note Do Not attempt to drill out the jounce bumper from the lower end toward the upper end, as this could affect characteristics of the jounce bumper. 10. Enlarge the Upper ID (1) from the top side of the jounce bumper to the following dimensions (Figure 3): • Diameter of enlarged ID: 16 mm • Depth of enlarged ID: 15 mm 11. Ensure that the ID of the jounce bumper is as smooth as possible and free of loose material. If necessary, an Exacto® knife, or equivalent, can be
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used to carefully trim the edge and remove any loose material. Figure 4 shows a jounce bumper with the enlarged upper ID (1) as compared to the original ID (2).
Note Ensure that the jounce bumper is fully seated to the top mount assembly. 12. Install the jounce bumper to the top mount assembly. Ensure that the jounce bumper is secure to the top mount. 13. Assemble the coil spring and top
mount to each strut. 14. Install the LH and RH strut assemblies to the vehicle. 15. Move the vehicle outdoors to allow it to return to ambient temperature. 16. Test drive the vehicle under the same conditions to verify the repair. For more information on OE repair information, please visit: www.alldata.com/promo/abn7tt/
NOTE: This Repair/Service Procedure is excerpted from a Technical Service Bulletin published by the vehicle manufacturer, and is intended for use by trained, professional technicians with the knowledge, tools and equipment to do the job properly and safely. It is recommended that this procedure not be performed by “do-ityourselfers.”
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www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 23
Women’s Industry Network Hosts Events and Sessions at NACE, Brings Information to Girl Scouts The number of women entering the collision repair industry has been quite substantial in recent years, and is fur-
expo floor. SkillsUSA automotive refinishing technology winner Kayla Toncik was on hand at the WIN booth to talk about her recent SkillsUSA win and her upcoming trip to WorldSkills in London in 2011. WIN is also sponsoring Kayla’s upcoming WorldSkill trip and presented her with $10,000 for the event on the NACE floor; Kayla was the first female to win a gold medal in automotive refinishing technology at SkillsUSA in 2009. SkillsUSA winner Kayla Toncik will go on to compete in WorldSkills automotive refinishing technology in London “Kayla is a talented young
in 2011 thanks to a donation from WIN
ther encouraged by events and sessions put on by the Women’s Industry Network (WIN) at the NACE expo this year. WIN sponsored the Women’s Professional Development Track which included a total of five sessions during the event, as well as having their own booth on the
woman who deserves this honor, and we are pleased to be able to assist in sending her to this world
WIN and SkillsUSA winner Kayla Toncik speaking to the girls about women’s opportunities in the collision repair industry
stage,” said Kim White, WIN’s Chair. Collision Hub, NABC, I-CAR and WIN also brought in the Girl Scouts of Southern Nevada to tour
the expo in the program called Tools for Success. “We hope girls realize this is a viable career track for women,” said Kristen Felder, CEO and founder of Collision Hub, “We need more women in this industry.” The Girl Scouts toured the expo, visiting sponsoring booths from WIN, CCC, Insurance Auto Auctions, Collision Hub (with Esurance), Car-O-Liner, Ford, 3M, Enterprise, NABC, PPG, ASA and AzkoNobel. The tour ended at the NABC booth where the girls were each given a 51-piece tool bag called the “tools for success.” For more information on WIN please visit: www.womensindustrynetwork.com.
Give us your opinion on matters affecting the industry. The Girl Scouts of Southern Nevada at the NABC Recycled Rides booth
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Hertz Corp. Continues Rapid Off-Airport Expansion in 2010
Hertz Corporation continues the expansion of its U.S. off-airport car rental business, with 60 new locations opening during the remainder of this year. By the end of December, Hertz will have opened more than 250 new locations in 2010. The openings are part of a Company-wide strategy to accelerate expansion in the off airport car rental market servicing the replacement, leisure and business customers in this segment. “Our revenues continue to expand at a double-digit rate in the off airport market, and we are increasing our investment to meet anticipated demand,” commented Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation. “Since the beginning of the year, we’ve opened 192 new locations and we’re committed to an additional 60 before year end. We are opening in the most cost-efficient manner possible, partnering with key local businesses which generate car rental demand. Hertz is primarily co-locating with body shops, hotels and repair facilities. Off-airport rentals have a longer average length of keep, which drives revenue per transaction.
Two NJ Police Officers Charged with Insurance Fraud
Insurance fraud charges were filed after two probationary police office serving Hackensack, NJ, who allegedly were involved in an effort to falsify police records and inaccurately portray an auto accident involving one of the officers. The Associated Press reported that Officer Jakub Szostak, while off-duty, crashed a non-police vehicle June 2 after leaving a Hackensack bar. Officer Eric Mark reached the scene a few minutes later and did not administer a field sobriety test, despite “indications” the other officer had been drinking. He also reported the accident as a hit-and-run, according to the AP report. Szostak then gave the false information to his insurance carrier, leading to his receipt of undisclosed amount for a damage claim, the report said. Szostak was charged with falsifying records and insurance fraud, while Mark was charged with falsifying records. Both Szostak, 24, and Mark, 30, have been on unpaid leave since July and now face administrative charges in Hackensack. Mark’s lawyer, Michael Mitzner, said his client “is absolutely not guilty,” according to his statement to the AP.
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Mitchell International, Inc. announced that AutoAdvise™—the online collision repair community recently rebranded from SceneExchange after Mitchell’s acquisition of SceneGenesis last year—is gaining momentum with its shop and insurance carrier participation levels. To date, over 2,000 collision repair facilities, including well-known body shop franchises such as MAACO and several major regional and national insurers have joined AutoAdvise. AutoAdvise is an online community that brings vehicle owners with a need for collision repair together with collision repair shops that have the capacity to perform repairs in an insurerbacked, web-based service solution. It allows insurers to submit claims, body shops to submit proposals for the work based on delivery date, and consumers to make their own selections. “Being a member of AutoAdvise has increased the amount of appraisal requests coming through our organization by 5%. AutoAdvise’s core value of giving shops the opportunity to bid for jobs based on cycle times, perfectly complements our commitment to quickly turn around high quality repairs for our customers,” said Ted James at CookWhitehead Ford, in Panama City, FL.
Ford Issues Rare Recall for 7-plus-year-old Windstars
Ford is recalling 975,000 1997–2003 Windstar minivans due to a rear axle which can fracture as a result of rust promoted by accumulated road salt. The vehicles affected are in 21 states where road salt is used to facilitate winter driving. The recall covers highmileage vehicles that have been on the road for a minimum of seven years. However, the problem has been evident to the automotive repair community, not because of its frequency, but for the severity of its consequences. Broken axles do not commonly happen over the lifetime of a vehicle. When they do, it is a rarity to the service facility that encounters one. The axle fractures (in this case at either end), the top of the wheel nearest to the break tilts in toward the vehicle, and, as the Ford recall letter states, “vehicle handling may be affected which could increase the risk of a crash.” NHTSA had received 234 complaints, including two accidents with no injuries. The recall letter states that if a vehicle fails an axle inspection, Ford will pay for a rental until “a remedy is available.” Ford plans to make repurchase offers to owners of Windstars “with cracked or perforated axles in lieu of replacing the axle.”
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Tesla Motors Recalls One-third of its Cars citing Fire Hazard
Tesla Motors has launched a voluntary safety recall on Roadster models 2.0 and 2.5. The recall involves the 12V low voltage auxiliary cable from a redundant back up system that provides power to various systems, including the headlamps, taillights, turn signals and hazard lights, and airbags in the unlikely event the primary 12V power fails or drops below a minimum threshold value. The recall affects 439 Roadsters out of the 1,300 electric sports cars it has sold so far. The Palo Alto, CA-based company said it made the decision after a “single customer incident.” Tesla blamed the smoke and “possible fire” on a low-voltage cable that chafed against a carbon fiber panel. This was part of the 12-volt auxiliary system, not the main battery pack that drives the vehicle. The company said it could fix the problem by installing a sleeve over the cable so it wouldn’t rub against the panel. Tesla was notifying customers via e-mail and regular mail. Tesla said its service employees, who it calls Tesla Service Rangers, would go to customers’ homes or offices to make the repair, which takes about an hour.
Toyota Says Progress in Safety Fixes Has Calmed Customers
Toyota says that the number of customers expressing concern over acceleration problems has dropped 80% since April. “Toyota has made significant progress in recent months to help ensure that our customers can have complete confidence in the quality, safety and reliability of their vehicles, and our latest initiatives build on those accomplishments,” said Steve St. Angelo, Toyota’s chief quality officer. He said that Toyota engineers, after examining 4,200 vehicles, were unable to find a single case in which an electronic throttle system glitch would lead to sudden unintended acceleration. Toyota said it has performed more than 5 million fixes for the three recalls announced in the past year, including 1.8 million to address sticky pedals, 3.1 million to take care of floor mats, and about 128,000 to update the antilock-brake systems in certain 2010 Prius and Lexus models. Consumers have turned on the brand in the wake of the recalls. Sales have underperformed competitors, with Toyota’s market share dropping to 15.2% so far this year from 16.6% through Sept. 2009.
Toyota Sued by Allstate for $3M in Acceleration-related Claims
Toyota is being sued by Allstate in Los Angeles Superior Court saying they have paid $3 million for accidents caused by sudden acceleration. Allstate said Oct. 1 in its complaint that “Toyota had full knowledge of the numerous complaints regarding its vehicles, that such vehicles were susceptible of sudden unintended acceleration, and thus that such vehicles posed a significant risk of property damage, as well as physical injury to vehicle occupants and other motorists.” Sudden acceleration has accounted for at least 725 accidents with 304 injuries and 18 fatalities, Allstate said, citing Safety Research and Strategies Inc. Undisclosed flaws in the electronic throttle have been linked to sudden acceleration, it said. It accused Toyota of negligence, product liability, breach of implied warranty and fraud. “While Toyota has not seen the complaint, based on reports, we believe the unfounded allegations in this suit have no basis,” Celeste Migliore, a spokeswoman for Toyota Motor Sales USA Inc. in Torrance, California, said in an e-mailed statement. The case is Allstate Insurance Co. v. Toyota Motor North America Inc., BC446704, Los Angeles County Superior Court.
TG Missouri Will Invest $3M in Indiana Plant Upgrades
TG Missouri Corp. is a Perryville, MObased automotive parts supplier known for high-quality plastic and urethane products, including consoles, steering wheels, airbags, side molding, interior and exterior plastic trim components for automobiles. The company has announced plans to invest more than $3 million to upgrade equipment at its plant in NewAlbany, IN, creating up to 30 new jobs by 2013. The company said the expansion follows a new contract to supply components for the new Toyota Camry model. Founded in 1986, TG Missouri is a unit of Nagoya, Japan-based Toyoda Gosei Co. Ltd. Toyoda opened the New Albany site in 2005. TG Missouri also has an injection molding site at its headquarters plant in Perryville, MO, where it employs about 1200 people. TG Missouri currently employs 90 in New Albany. The Indiana Economic Development Corp. offered TG Missouri up to $200,000 in performance-based tax credits based on the company’s job creation plans. The city of New Albany, just across the Kentucky state line, will consider an additional property tax abatement, according to a news release from the IEDC, which did not specify the amount of the abatement.
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GM’s Volt Can Use IC Engine Power at Highway Speeds, Contrary to Earlier Claims
GM to Recall 2009–2010 Impalas
GM has revealed that the Volt can, in some situations, use its small 84-hp 1.4 4-cylinder internal combustion engine to power the wheels at highway speeds in order to improve its efficiency, however, the Volt engine never drives the wheels all by itself like a conventional hybrid. Volt had previously been promoted as an extended range electric vehicle: an all electric car with a gas-powered generator on board which never powers the wheels directly. GM said it is just now revealing the full details due to a key patent that has been allowed by the US patent office. The 2011 Chevrolet Volt is powered by 16-kWh, “T”-shaped lithium-ion battery that powers the electric drive unit, which allows it to drive 40 miles on battery power alone. The Volt has been approved for the full $7,500 federal tax credit. The tax credit is for any vehicle that can “draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity.” Prices for the 2011 Chevrolet Volt start at $41,000, and with the full tax credit, will cost $33,500.
GM is recalling 322,409 Chevrolet Impalas from the 2009 and 2010 model years because of a possible defect associated with the seat belt. The automaker is searching for what it thinks is a small number of vehicles. The reason is the front seat belt webbing may not have been properly secured to the lap belt anchor pretensioner mounted to the side of the seat nearest the door. Officials believe vehicles with this condition may have an anchor that can separate in a crash. As a result, the belt may not meet the anchor strength requirements of the U.S. and Canadian Motor Vehicle Safety Standard that covers seat belt assembly anchorages. Dealers are being instructed to inspect both front seat belts for proper installation of anchors to pretensioners. If necessary, franchise service departments are being told to reinstall the anchors. “GM knows of no injuries or deaths related to this condition,” the automaker emphasized. The company also noted Impala owners are be notified on or around Oct. 25 by mail to bring their vehicles in free inspection. OEM officials added any repairs related to this condition are to be done free of charge.
Big Retail Auto-Parts Chains See Strong Sales, Rise in Stock Prices
The theory that weaker new car sales creates a boon for auto-parts sellers is gaining credibility. Big auto-parts chains have seen dramatic increase in their share prices due to strong sales recently. Shares of Advance Auto Parts (AAP), AutoZone (AZO) and O’Reilly Automotive (ORLY) are near 52-week highs. “People who are not buying new cars are hanging on to their old cars and repairing them,” says Michael Odell, CEO of the Pep Boys (PBY) chain, which has 600 stores, with plans to add 35 more. The average fleet age for all cars and trucks in the U.S. was 10.2 years in the latest R.L. Polk survey, up 21% in the past 14 years. In the year 2000, the auto industry was selling more than 16 million cars a year, vs. the 10 million-plus that sold last year, which is now a “the sweet spot” for auto parts retailers because they often need substantial repairs, says analyst Colin McGranahan of Bernstein Research. Auto-parts dealers have adapted by stocking more basic repair items, such as alternators, starters and brakes instead of the bling-bling accessories popular in better economic times. “People have realized their cars will last longer than five years,” says Judd Nystrom, senior vice president of Advance Auto Parts. Also driving the
parts industry: ● Driving more miles. Americans cut back on driving when gas prices rose a couple of years ago. Now, car mileage is starting to rise again, Federal Highway Administration figures show. The more miles driven, the more servicing that cars need. ● Fewer auto dealers. General Motors, Ford Motor (F) and Chrysler collectively closed hundreds of car dealers, creating fewer places for car owners to get their cars serviced. More have turned to independent mechanics, who often get their supplies from parts sellers. More auto-repair school graduates are getting jobs at independent garages instead of at auto dealerships, says John Frala, professor at Rio Hondo College in Whittier, CA. ● Higher used car values. Since fewer new cars are being sold, there are fewer trade-ins, which has caused used prices to rise in the past two years. Since used cars are worth more, owners are willing to spend more to keep their more valuable assets in good working order. ● Do-it-yourselfers. With more people out of work and short on cash, more are trying to fix cars themselves, McGranahan says.
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NABC’s Recycled Rides Program Gives Refurbished Cars to Needy Las Vegas Families at NACE Rides Chair, Nick Notte, spoke on behalf of the organization and thanked the insurers, sponsors and repair shops that make this program possible. “This program not only shows the craftsmanship and expertise of this industry, it also shows the incredible generosity,” said Notte. Each of the five vehicles were donated by the three participating insurers: State Farm Insurance, Allstate and California State Automobile Association (CSAA), and the $2-3,000 in repairs required for each vehicle to be in reliable, working condition was donated by the three participating repair facilities: Sterling Auto Body Centers, 911 Collision and Gerber Collision & Glass. Families receiving cars were; the McCurdy family received an ‘05 Dodge Caravan, the Waller family received an ‘04 Ford Explorer, the Milton The Drake family stepped up to receive the keys to their family received an ‘07 Honda Recycled Ride from Allstate Insurance and Sterling Auto Pilot, the Drake famlily reBody Centers
The National Auto Body Council’s Recycled Rides Program gave five refurbished vehicles to families involved with the Family Promise of Las Vegas program which provides support to families in crisis on October 12 on the NACE show floor. The program partners with body shops and insurers to take donated vehicles considered to be total losses and refurbishes them into reliable transportation for families in need. NABC’s President, George Avery, and the 2010 Recycled
Allstate will pay $10 million over Improper Use of Collosus Software
Allstate Corp., the parent of Allstate Insurance Co., agreed to pay $10 million and institute new procedures after improperly using software for handling claims. The payment settles a multistate investigation, regulators said Oct. 19. The settlement by the Northbrook, Ill.-based company ends an 18-month National Association of Insurance Commissioners “market conduct examination” of the insurer’s practices for handling bodily injury claims after auto accidents. The targeted investigation, which was led by New York, Florida, Illinois and Iowa, focused on Allstate’s use of the Colossus claims handling software. Forty-one other states were also involved and signed on to the settlement. The company used Colossus to guide settlement offers in auto accident cases. But the probe found “inconsistencies” in how Allstate managed and oversaw the program, failing to modify or “tune” the program “in a uniform and consistent manner across its claims handling regions,” according to a news release from the New York State Department of Insurance. However, “it is important to note that we found no systemic underpayment of bodily injury claims,” New York Insurance Superintendent James
J. Wrynn said in the release. Under the agreement, Allstate will notify claimants that it may use the software in adjusting their claims. It agreed to better oversee the software to ensure that the company follows established criteria and rules for which claims are used to “tune” the software to reflect recently settled claims. It will also tighten internal auditing of both the software and its claims handling to adhere to written guidelines and procedures, and it will consolidate its claims handling practices into a single manual. And it will not require or encourage claims adjusters to base settlements only on Colossus’ recommendations. “The new processes ensure that claims will be handled consistently in different regions of the country, and consumers will have the right to get the information they need in order to understand how Allstate evaluates their claims and make sure they are fairly treated,” Wrynn said. The fine, which includes $1.2 million to New York, will be used to set up a regulatory fund that will be used by the 45 states to develop and train examiners to monitor how the industry uses software technology in handling claims.
28 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
One of the Recycled Rides given away on the NACE floor
ceived an ‘04 Chevy Venture and the Bryant family received an ‘04 Toyota RAV4. 1-800-Radiator donated all of the radiator and cooling parts needed for repairs, along with AutoZone and LKQ/Keystone pitching in for parts. Auto Data provided
VIN stickers and badging for all vehicles and Azko-Nobel provided all of the paint necessary to return these vehicles to prime condition. AutoZone also provided each family with a $200 gift certificate to their stores should the Recycled Rides need any parts or supplies in the future. For more information about NABC’s Recycled Rides program please visit: recycledrides.org.
Representatives from the collision repair shops that worked on the Recycled Rides received ‘thank you’ plaques from 2010 Chair Nick Notte
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SEMA 2010 to Host Broad Array of Sessions and Speakers The 2010 SEMA show, put on by the Specialty Equipment Market Association, will feature 5 days of diverse educational sessions and speakers along with hundreds of exhibitors on the expo show floor of the Las Vegas Hilton. The event will run from Monday, November 1 to Friday, November 5. Some highlights include the Monday morning keynote speech by eBay Motors titled “How the Internet Will Impact Your Business.” The keynote will run from 8 a.m. to 9 a.m. and is free with regular SEMA admission. SEMA will also host themed fullday events this year, including the Online Marketing Conference on Monday, November 1. This single-day conference will provide attendees with valuable tools to best optimize their company’s online messages and reach. It will provide sessions on search-engine optimization, searchengine marketing, landing-page optimization, local search, pay-per-click, keywords, social media, forums, blogs and video..
Wednesday, November 3 is “Dealer Day”, where a targeted program specifically for auto dealers will take place from 8:30 a.m. to 1:45 p.m. The program marks the third consecutive year that the “Dealer Day Conference” will be held at the annual trade show. Taking into consideration feedback from previous years, organizers have developed a program for the upcoming show that focuses on the three key components of successful accessory programs. From integration and the sales process to profit generation, the program provides dealers with practical information and resources that will serve as a catalyst in their daily operations. Also featured will be an operations panel consisting of a dealer principal or general manager, a service manager, a parts manager, a new- and used-car sales manager, an office manager and a finance manager. Participants will receive tools, resources and best practices for starting a successful accessories program, as well as for enhancing an existing program.
“Dealer Day” is sponsored by the National Automobile Dealers Association (NADA) and the National Independent Automobile Dealers Association (NIADA), the 2010 Dealer Day is open to vehicle dealers only. To register please visit www.semashow.com/dealerday. On Tuesday, November 2, the Vehicle Technology Keynote will feature Jim Campbell, Vice President, GM Performance Vehicles and Motorsports. From 9:00 a.m. to 11:30 a.m. Campbell will discuss “driving green performance” in the industry. Campbell is responsible for integrating the engineering and marketing of performance versions of current production models, as well as all motorsports activities for GM. During Campbell’s keynote address, showgoers will learn how GM’s transformation is leading the reinvention of the automobile and how advanced technologies are impacting the performance industry today and creating new business opportunities for SEMA members. Following Campbell’s presenta-
tion will be a panel discussion with industry leaders, including Peter Diamandis from the X PRIZE Foundation, Scott Atherton from the American Le Mans Series, Azhar Hussain from TTXGP eGrandPrix, Imtiaz Haque from Clemson University CU-ICAR, Patrick Reininger from R. L. Polk, Bryan Krulikowski from Morpace as well as rock icon and performance enthusiast Neil Young, leader of the LincVolt team. I-CAR and SCRS will offer several different training courses during the week. I-CAR will provide collision repair training on November 2 and November 3 and SCRS on November 4 and 5. The training organization will also provide their TechPro World Tour on the expo floor throughout the event. The TechPro World Tour is a new live welding event that provides attendees with the most current “howto” information on today’s welding processes. For a full schedule please visit semashow.com.
SEMA to Award Hottest Vehicle Honors to Car, Truck and SUV
Vacationing Couple Allow Bar Acquaintance to Drive Rental
The SEMA Award will be presented to the hottest car, hottest truck and hottest 4x4-SUV during a special media luncheon on November 2. The awards will reveal which trend-setting vehicle models SEMA Show exhibitors are choosing to trick-out, modify and display most often in their booths. The award winners, chosen by exhibitors, will help guide consumers to the most accessoryfriendly vehicles. Industry experts have identified 21 vehicles as those most likely to be named a SEMA Award winner, based on factors such as early registration numbers, the collaboration automakers have had with exhibitors, the buzz surrounding the vehicles. Contenders for the 2010 SEMA Award are: Car •Audi A4 •Chevrolet Camaro •Dodge Challenger •Ford Fiesta •Ford Mustang •Honda CR-Z •Hyundai Sonata •Kia Soul •Lexus IS •Mazda 2 •Scion tC •Subaru Impreza Truck •Chevrolet Silverado •Ram Truck •Ford F-Series •Toyota Tundra Hottest 4x4-SUV •Ford Explorer •Jeep Grand Cherokee •Jeep Wrangler •Subaru Outback •Toyota FJ Cruiser See www.sema.org/challenge
John Settles, who lives in Pacific Beach, San Diego, saw a $50,000 Corvette parked in the breaking surf on Oct. 14 and told CBS News, “Brandnew Corvette in the water. I saw a wave go over the hood, over the wind-shield and into the convertible.” Turns out the car, rented from Hertz had been driven by a bar acquaintance of the couple who rented it, who had talked them into letting him take the wheel and had bolted the scene. “They originally denied any knowledge or association with the car or how it got in the water,” said San Diego police Lt. Andra Brown. “They eventually admitted that, yeah, they were in the car, passengers in the car.” Witnesses reported seeing the bright yellow sports car doing doughnuts and spin-outs on the sand before getting stranded in the surf. The man and his wife were detained and questioned before being sent to a local detox facility to sober up.
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 29
Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
A Reader Unpacks his Baggage on the Industry with Toby Chess
Hey Toby—I have never written a letter to a magazine or newspaper until now. I’ve read many of your columns and I want to thank you for the work that you do for the collision industry. I am a second generation shop owner and I am so frustrated that I don’t know what to do. My father taught me the business. The first thing he instilled on me is to give the customer the best job possible. He taught me honesty and integrity and when a person dropped off his or her car, they would get the best repairs possible. We repaired cars and we were very successful. In the mid 90’s we got caught up in the DRP movement. We were told that the insurance company would send us work in exchange for some minor concessions. We gave them a discount on labor and parts. We still gave our customers the repairs that they deserved. My dad retired from the business in the early 2000’s and by the time he left, I was giving more and more concessions. Everything that I used to charge for was now included. Free storage was next. More threats if I did not follow the rules. I had to hire extra people in the front office to cover all of the new administrative tasks. I asked for a raise in the door rate, but that never happened. I begged for more cars, but they added more shops. More concessions. They said maybe their DRP program was not for me. I have lost my ability to sell my shop’s service and its quality (all my fault) repairs. More concessions. I was told that my repair-toreplace ratio was out of whack. I started to repair everything, even though I knew that it was not the best for my customers. Then they started to cut my times on the repairs. No prime and featheredge was allowed. I showed them in the procedure pages that it was a nonincluded item. I was told that no one else was asking for it. More concessions. To add insult to injury, my rental car company wanted data on my customers. Next thing I know they are telling me how to manage my com-
pany. More concessions. I now have to use a different CSI company, which is more money with less service. More concessions. I was told my alternative parts usage was too low. Listen to this one. I needed a right quarter panel for a Dodge Caravan. I got 2½ hours (another concession) for cut and trim. Where in God’s creation did they get that number from? To add insult, the wrecking yard sent me the entire van (it had major front end damage). How was I going to get rid of the donor van when I was finished with it (I don’t have a fork lift)? I refused the part, bought a new one and ate the difference. I also purchased a front clip (I need the core support, hood, fenders, lights and bumper). The part arrived at the shop a couple of days later. Every part was aftermarket except the core support. I sent it back. I could have ordered my own aftermarket parts. The wrecking company told me not to call anymore because I was too picky. Give me a break. Talking about aftermarket parts, I was told to use CAPA only A/M parts, but there are only a limited amount of CAPA-certified parts. My coordinator told me to use any aftermarket parts, certified or not. I asked him to put it in writing to protect my shop, but he looked at me and I realized I was in big trouble. I made a joke of it, but I came real close to getting kicked off the program. Next my new “consultant” (my DRP adjuster’s new title) tells me that I need to look at going lean. How can he call himself a consultant and tell me how to run my business? He has never worked in a body shop. Where does he get off at telling me how I should run my business? Oh, I forgot, he works for an insurance company that controls my business. I will admit that once we as a company embraced lean, things at the shop are better, but again, it should be my decision and mine alone. Just the other day, my insurance consultant insinuated that I need to send everyone at the shop to the new I-CAR quality-control class. An-
30 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
other worthless I-CAR class that I have to take. Even if I go to the class, will the insurance company pay for the additional time that is needed for the better quality repairs? Hell no. More concessions, or I am off the program. I am really tired of the crap. I am really considering closing the shop and getting a job at WalMart as a greeter or TSA inspector. You know what? If I get at job with TSA, I can order people around and be rude and all anyone can say is ‘thank you.’ WOW. The TSA and adjusters sound like the same type of people. Maybe a requirement to become a TSA inspector is to work as adjuster for an insurance company? Thanks for listening to me ramble on. —Frustrated Hey Frustrated—I really feel your pain. I see and hear repairers’ frustra-
tions on a daily basis. Times are tough for everyone. I would hate to see you give up. When you decided to look at the lean process, did you not see an improvement in your shop’s performance? Just maybe the insurance company did you a favor and you didn’t even know it. Lean can make you and your company more profitable. I realize that you place all of the blame on the insurance company, but you—like many other owners—took the easy way out. You mentioned that you built your business on quality and customer loyalty, but you got away from your core business and the skills to drive that core business. I hear your frustrations and I totally understand how you fell under the DRP myth. I had the same belief as you, and countless other shop owners, and I would probably have made
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the same decisions, but the fact of the nothing, nothing will ever change. matter is that there is hope. Lastly, your comments on I-CAR. You need to work with your state I am an I-CAR instructor for live and national organizations. Gentlemen classes as well as all of the welding qualification tests. For the last 5½ like Lee Amaradio of Faith Quality years I have taught over 13,000 stuCollision and Allen Wood of the Collision Repair Association of Califordents and I think I can speak with a litnia did not give up on California SB tle bit of authority about I-CAR. It is 427. They worked to get the governor not a perfect organization by a long of California to veto the bill and he shot. There are excellent, above-averdid. The badly-worded bill would age and average classes. I don’t care have put aftermarket parts, used parts, what class that you or your people atOEM parts and rebuilt parts under one tend, you will always come away with category ‘crashon parts,’ and theaffecting more knowledge than you started with. Give us yourcalled opinion matters the industry. governor decided most of it was duVehicles have changed drastically plicative of existing law. the last 5 years and the repairs have Embrace the lean concepts and followed suit. There is no way you can become publisher@autobodynews.com more efficient in the repair keep up with the changes without process. If you can get out more vehitraining and I-CAR is one of a few cles through efficiency in the same sources that can give you the knowltime period and with less personnel, edge to repair today’s vehicles. wouldn’t it be a whole lot better? When I-CAR went to the repair Have you ever made an inquiry to industry to find out what was needed, the DEG (www.degweb.org)? We all only a few people stepped forward to To opinions. advertise The source timely assume that thefor times provided by the voice their Everyone likes to call Joe Momber at:only a few information providers are accurate, but bitch about it, but again, information that every 800-699-8251 guess theyneeds! are not. The DEG restood up to be counted. I am always bodywhat, shop searches all our inquires and gets recomplaining about things I see wrong e-mail: jmomber@autobodynews.com sults (increase times). If something is with I-CAR and I have sometimes CALL 800-699-8251 not right let them know. If you and been branded as a malcontent. I wear www.autobodynews.com Start FREE everyoneYour else in the repair industry do that as badge of honor because that is
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only way I can effect change. I-CAR I hear from shops all the time is a vital part of the repair industry and about how great their cycle time is, you and the rest of the industry need but what they consider a quality repair to get involved (through your local and what I consider a quality repair committees). Let them hear what you can be completely different. think is wrong and what is right. What we need is quality repairs Lastly, I would like to comment on and that only comes from a higher your statement about the Quality Conprice than what is being paid for by trol Class. the insurance industry. If the insurance The QUA 01 class was just reindustry is so concerned about quality leased and I have taught it five times and not just a repair that gets by, they to date. You need to realize that it is need to work with repairers and set an overview of the entire collision standards and reimburse the repairers process and demonstrates where accordingly. Want to Contribute to this Southwest Edition? things can go wrong. Our world is changing and both The lean process is about elimisides need to come together to give nating waste. If you need to redo a rethe consumer the best possible repair publisher@autobodynews.com pair, think about the cost and the that pay for and deserve. waste. Redos happen through the enHang in there. It will get better. tire process and after a vehicle has been delivered. Having the advance Promote your business with Promote your business with knowledge of where a glitch can an exclusive article featuring an exclusive article featuring occur, you can take steps to reduce or evenyour eliminate that potential problem. your products or services. products or services. That saves time and money and reduces waste. We as an industry can deliver three things: time, price and quality. CALL: Joe Momber for details! Call for details! The insurance industry wants a cheap price in the shortest amount of time, 800-699-8251 without 800-699-8251 loss of quality.
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volvo Genuine parts www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 31
Delaware VOC Law Goes into Effect Oct. 11, 2010
SEMA asks IRS to Help Kill 1099 Report Mandate
In May, Delaware’s Department of Natural Resources and Environmental Control proposed language known as DE 2601. The language revises rules to mandate lower volatile organic compound (VOC) content of both cleaning and coating solvents used to refinish automobiles. Developed by the Ozone Transport Commission (OTC), the proposed new section includes language from the U.S. Environmental Protection Agency’s auto refinishing regulation. DE 2601 became effective Oct. 11, 2010.
SEMA his submitted comments to the IRS opposing a requirement that businesses issue 1099 reporting forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. The mandate was included in the health-care law as a revenue-raising provision. SEMA said that it will fail in its mission to collect much under-reported income, but it will succeed in punishing small-business taxpayers who already comply with U.S. tax law. The 1099 provision was imposed upon the IRS which required to implement the law.
The American Military Society (AMS) requests that Congress support passage of the Motor Vehicle Owners Right to Repair Act (S 3181/HR 2057) on behalf of its membership which includes active, reserve, National Guard, retired and veterans of the uniformed services, their families and survivors. “Military personnel and their families are often stationed in remote locations far from any dealerships, relying on independent repair shops to service their vehicles,” said Charles C. Partridge, Col, USA (Ret) of AMS, adding “As cars become more complicated, the problem becomes more acute.”
A fire in the body shop at Borgman Ford in Grandview, MI, on Oct. 7 damaged at least four cars after an engine fire began in one of the vehicles. The vehicle caught fire around 6:30 p.m. and was “totally destroyed,” and three or four others were damaged by smoke inside the facility at 3150 28th St. SW, Grandville Fire Chief Harvey Veldhouse said. No one was injured and the fire was contained to the body shop area, he said. Four employees were working when cleaning crews alerted them to the fire, said worker Jeremy Christian. “Smoke was coming in by the body shop,” he said.
Hialeah, FL, Police have arrested five insurance adjusters accused of fraud. Investigators said the suspects were caught on camera taking money from an informant from a Hialeah body shop. According to Hialeah Police, three of the suspects are Allstate adjusters and the other two work for State Farm. Authorities said these men would help tamper and further damage cars and write up more expensive claims. Then, the suspects would allegedly split the money amongst themselves. “They, in many ways, betrayed their employers, betrayed the colleagues they worked with, they betrayed the people for whom they were filing these claims for and then of course ultimately all of us — you the consumer,” said Miami-Dade State Attorney Katherine FernandezRundle. Thursday, the Miami-Dade State Attorney’s Office talked about Operation Crash & Bash for Cash and released undercover video. For more than a year, prosecutors, police, an insurance industry agent and an informant have been working to crack the $5 million case. Investigators used undercover video
to show how people would allegedly fake car accidents and injuries, take their cars to auto body shops that would make the wreckage seem worse. “We are going to be coming after you,” said Hialeah Police Chief Mark Overton. “We are not going to allow you to continue to impact the citizens of our communities, financially the way that they’ve been doing it.” The insurance industry has inside investigators to impede schemes similar to this one. “Ultimately, the money that we save on fraudulent claims, we can give back to our customers and help protect those lawabiding drivers,” said Amy Moore of Allstate Insurance. In all, 40 people have been arrested, as a result of 23 alleged staged car wrecks. All of them were either car owners or body shop workers until these recent arrests. Investigators said they are simply working up the foodchain. The five men accused of racketeering and several grand theft charges are identified as Jeremazine Kirkland, Roman A. Hernandez, Julio Manuel Ravelo, Eduardo Javier Quinonez and Roy Joseph Stella.
Military Buys Into R2R
MI Ford Dealer’s Shop Fire
Hialeah, FL, Insurance Adjusters Accused of Fraud
32 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Progressive Insurance Sees Lower Profit in Qtr.
Ohio Rep: GM Should Stop Dealer Terminations
Mitchell’s New iPhone App
Ford Says Tech Brings in 14% More Revenue
Progressive Corp. reported a decline in profit for the month of September as well as the third quarter, despite higher net premiums. The Ohio-based holding company reported that net income for the month of September dropped 18% to $81.9 million from $100.0 million last year, and earnings per share were down 17% to $0.12 from $0.15 a year ago. The latest monthly results included pretax net realized gains on securities of $19.9 million, higher than $7.4 million last year. Monthly revenues were $1.18 billion and net premiums written were $1.15 billion.
Mitchell International, Inc., announced the launch of RepairCenter™ for the Apple® iPad™ to enable wireless shop management. The RepairCenter shop Workspace is now fully compatible with both the iPad and iPhone™ and is designed to enhance workflow by allowing collision repairers to stay connected to the shop and keep jobs moving—even when they are not on-site. Application provides access tocustomer and job tracking, task management, and vehicle repair status. Estimates can be written quickly and accurately in the field-from either the iPad or the iPhone.
The Obama administration should ask GM to suspend the 500 dealership terminations it plans Oct. 31 until a federal investigation of dealer cuts is completed, Rep. Steven LaTourette, R-Ohio, said. tThe investigative findings of the Special Inspector General for the U.S. Troubled Asset Relief Program could come too late for the GM dealerships scheduled to be closed. The inspector general’s office, headed by former federal prosecutor Neil Barofsky, has not said when it would complete its investigation of dealer cuts by GM and Chrysler.
Ford’s growing reputation as a technology-driven brand is helping the company make more money on every car it sells, the automaker’s vice president of product development, Derrick Kuzak, said Oct 19. During a speech to an auto electronics show, Kuzak said Ford’s average revenue per vehicle jumped 14% from 2008 to 2009, to $26,100. He attributed roughly one-third of the increase to new technologies such as the Sync in-car communication system, which operates the hands-free media system.
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Mercedes-Benz USA Sells Survival Stories The web site for Mercedes-Benz USA (MBUSA) features seven life-changing collision stories which appeared October 5 as short films on MBUSA.com. The unscripted accounts told by real customers are the byproduct of a collaboration between MBUSA’s marketing agencies to creatively express one of the key features that sets MercedesBenz apart in the minds of many of its customers: the ability of a MercedesBenz to protect its occupants when they are most vulnerable. The common threads running through all the stories are phrases like: “I can’t believe we walked away” “The fireman told me ‘if you can live through that then I want my wife driving that car’” “I truly believe I owe that car my life and (my daughter’s) life.” “I decided I would never drive another car unless it was a Mercedes. The police told me I would have been dead in any other car.” “The car absorbed all the force. It saved our lives.” “I feel so strongly about it—it’s not just a pretty car—it will save your life.” “Everyone told me that it was our car that saved us - both insurance
companies, the police, the people in the ambulance. That specific car is the reason we walked away.” “We’ve always been very loyal Mercedes customers, and after this accident we will never ever buy another brand of car.” Steve Cannon, vice president of marketing for MBUSA says, “We literally have hundreds and hundreds of these experiences sent to us by our customers and we all agreed that we had to find a way to bring these experiences to life and share the stories of survival and perspective. We wanted the stories to be powerful but also authentic and, most of all, we wanted them to share the perspective that these people walked away with.” The campaign, known as “Impact,” can be accessed from the MBUSA.com home page or directly at (www.MBUSA.com/Impact) beginning Oct 5.
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Two Indicted in NJ for Alleged Insurance Fraud Scheme
Two Hudson County, NJ, men were without the knowledge or authorizaindicted for their alleged role in insur- tion of the victim, authorities said. The ance fraud and identity theft, accord- insurance fraud was allegedly coming to a report by IFAwebnews.com. mitted by Gomez and Collado workRemny Gomez, 23, of West New ing together to insure vehicles in the York, was charged Aug. 27 with sec- name of an innocent victim. The alond-degree theft of identity, as well as leged fraud was discovered when the trafficking in personal identifying in- victim received insurance documents formation, insurance fraud, attempted in the mail concerning a vehicle she theft by deception, receiving stolen had never purchased or insured and reproperty, and two counts of theft by ported the incident to the police. deception (all in the third degree). The grand jury indictment alleges The indictment alleges that that Gomez fraudulently used other Gomez fraudulently possessed a New people’s personal identifying informaJersey driver’s license of another per- tion to commit insurance fraud and to son. Gomez allegedly used this per- make credit card purchases without sonal identifying information to obtain their authorization. Gomez was arautomobile insurance in Pennsylvania rested on March 13, 2008, while alfor a stolen 2003 BMW 745 with the legedly attempting to use a $100 gift Infinity Insurance Group of Dallas, card to purchase an $850 computer in Texas, and in New Jersey for a 1998 a Walmart in Secaucus, NJ. AuthoriLexus GS300 with the IFA Insurance ties credit a “vigilant check-out clerk” Agency in Clark, NJ, according to the for noticing that the account numbers New Jersey Attorney General’s Office. on the check-out slip did not match the William Collado, 27, also of West numbers on the gift card. Further inNew York, was charged with third-de- vestigation revealed that Gomez algree insurance fraud for allegedly as- legedly possessed a number of credit sisting in using the personal cards that had been GiveGomez us your opinion on matters affecting the“re-encoded,” industry. identifying information of another in whereby another account number has an electronic application for the pur- been stolen and then used to overwrite pose of obtaining automobile insur- the information on the magnetic strip ance in New Jersey for the 1998 Lexus on the back of the card using a comGS300 with the IFApublisher@autobodynews.com Insurance Agency puter. Gomez allegedly also possessed in Clark. That information included a stolen BMW 745, valued in excess the other person’s driver’s license of $30,000, which he fraudulently innumber, date of birth and address, sured.
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Nissan’s Leaf Wins Magazine’s Breakthrough Award
Nissan The Northsource America,forInc. antimely nounced that the Nissan LEAF reevery ceived information a Popular that Mechanics 800-699-8251 Breakthrough Award at an Oct. 5 cerbody shop needs! e-mail: emony at the Hearst Tower in New advertising@autobodynews.com York City. CALL 800-699-8251 The Nissan LEAF was chosen as www.autobodynews.com one of theStart year’s 10Your most transformaFREE tive products by a panel of experts in Mail Subscription. addition to members of the Popular 2010 Altima Coup Mechanics’ editorial board of advisGenuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted ers. Popular Mechanics says of the to strict quality standards. The following dealers proudly stock genuine Nissan LEAF: “It’s not the first pure See the NEW parts. Call your local distributor today! EV, but the Nissan LEAF hits the mainstream like none of its predecesOKLAHOMA MISSISSIPPI sors. Powered by a 24-kilowatt-hour battery pack, the LEAF provides a www.autobodynews.com 100-mile range, enough for most Bob Moore Gray Daniels commuters, for the price of an averInfiniti Nissan South age vehicle—and with a much lower operating cost than gasoline-powered OKLAHOMA CITY BRANDON vehicles.” 800-999-1447 800-530-7989 “Nissan is honored to receive 405-748-6091 Fax 601-948-3050 this highly prestigious award for the Mon. - Fri. 7:30 - 6 all-electric Nissan LEAF,” said Larry 601-985-3753 Fax Dominique, vice president, Product ipaparts@bobmoore.com Mon. - Fri. 7:30 - 5:30 Planning, NNA. “Popular Mechanics www.bobmoore.com Sat. 8 - 2 recognizes the transformative powers of electric-vehicle technology, and Nissan is proud to lead the way in bringing the Nissan LEAF, the world’s first affordable, all-electric
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advertise vehicle, to the massTo market.” The awards, theirMomber sixth year,at: callinJoe are designed to heighten awareness of 800-699-8251 the advancements and innovations that are transforming, e-mail: enhancing and jmomber@autobodynews.com improving lives. Winners are chosen with the help of an expert advisory www.autobodynews.com panel of prominent thought leaders. Twenty awards are given out each year—10 products available to consumers, and 10 innovations that have potential to change lives. The Nissan LEAF appears in the November Your issue Ema Register of Popular Mechanics, on newsstands Oct. 12, and at www.popularmechanics.com/breakthrough10. In North America, Nissan’s operat www.autobodyn ations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program 2010 and has been recognized as a 2010 ENERGY STAR® Partner of the Year by the U.S. Environmental Protection Agency. More information on Nissan in North America, the Nissan LEAF and zero emissions can be found at www.nissanusa.com.
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www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 33
Continued from Page 1
Cover Story
In what may yet turn into an East vs. West location strategy, ASA has suggested that NACE-CARS may not be in Las Vegas in the future, citing interest from the true decision makers— the exhibitors—in an East Coast venue for future shows. Saying “Las Vegas is not the draw it used to be,” implying that Vegas-fatigue may be an impetus for holding the ASRW event elsewhere, Pyle expressed confidence in the exhibitors. “Our folks will come regardless of where the show is located.” Pyle also noted that discussions with major exhibitors were leading him to conclude that “traditional marketing methods are less effective than in the past.” Suggestions for an every-second year show, based on what many see as a slowing in the rate of innovation of new products, are overruled by the majority of vendors, who want an every-year show, said Pyle. There seems to be no prospect of re-uniting the events as a single Industry week. NACE-CARS put on a brave showing with 270 exhibiting companies, 1115 full conference attendees, and about 75,000 sq. ft. of exhibit space, adding 10,000 sq. ft. to each of its OEM Pavillion and on-floor education and demonstration space, but the continued decline in foot traffic has exhibitors wondering and worried. It cannot be good that estimates of attendance at NACE were no higher than 16,000, down from an already depleted 21,000 last year and a small fraction of the expected attendance at SEMA, which is likely to exceed 100,000—most of which are not a proven audience for collision-related product, however. Exhibitors on tight budgets must now gauge whether the targeted NACE audience is a better bet than the much larger, but more diffuse, group of specialty market shoppers. Bigger and better capitalized companies are having less trouble saying ‘yes’ to both shows, seeing opportunity in both, but start-ups and single product exhibitors are finding the separation of the events much more problematic. Larger and International exhibitors have simply stored bulky items in Las Vegas between the shows and swapped out personnel, but most small exhibitors who used
to rely on the exhibit floor for sales are hurting. Exceptions exist of course. Some vendors reported more orders on the first day of this year’s NACE-CARS show than the whole of last year’s, which may be a harbinger of the generally improving economy as well as the specificity of their products. As SEMA-AAPEX open this week, the Paint, Body & Equipment has become the fastest-growing section, with 128% more exhibitors confirmed for 2010. In addition, there are hundreds of other companies throughout the SEMA Show this year that will be able to showcase Barry Dorn their products to the paint and body market, including such long-standing exhibitors as House of Kolor, PPG, SherwinWilliams, 3M, and more. Collision repairers are encouraged to attend SEMA by SCRS’ Repairer Driven Education program and the Collision Industry Conference, which narrowly voted in favor of colocation with SEMA 2010 instead of NACE-CARS. These seminars and programs provide more rationale for collision repairers to attend SEMA —that is, if they are unable to attend both shows. SCRS Chair Barry Dorn observed, “We listen to what our membership says and we wanted to give them something different. There are so many different things that SEMA offers, such as alternate sources of revenue, and different perspectives Peter MacGillivray to think about. Add that to what we’re doing in grass-roots training, and what better place to do that than at SEMA?” Said CIC Chair and SCRS Events Administrator Jeff Hendler, “We’re not trying to polarize the industry, we’re offering choice... it’s really important that we give repairers these opportunities.” Hendler pointed out that the organizers of SEMA, Peter MacGillivray and Chuck and Susan Schwarz put their cell phone numbers on the back of the registration badges. Access to the organizers is more than a symbolic gesture, said Hendler.
34 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Hendler was also instrumental in engaging Charles A. Coonradt, to be the “keynote instructor” at the RDE event. Coonradt is author of the Game of Work, which presents, among other concepts, an “if you can’t measure it, you can’t manage it,” message. Hendler says collision shows need to eschew the “rah, rah” of Hollywood or Policital keynote speakers, in favor of a “keynote instructor” so that reJeff Hendler pairers can get back to basics and take the message back to their shops—the theme of repairer driven education. SEMA vice president of communications and events, Peter MacGillivray, said “The paint and body market has increasingly become an important market. That’s why the PBE section of the show was expanded in just its second year of existence. That’s also why we are partnering with industry experts to provide this audience with quality education and networking opportunities.”
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I-CAR Tech
The Importance Of Quality Control
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
Quality repairs are essential for Initial checklist items if complete or mark N/A if “Not Applicable” customer safety and satisfaction, not to mention the time saved preventing rework and comebacks. Ensuring quality repairs are completed on each and every vehicle requires a commitment from the entire team. However, the manager is primarily responsible for making sure everyone is aware of with Amaradio Jr. the level of quality that isLee expected and verifying only high-quality repairs are being completed. This will require knowing how to identify high quality repairs and ensuring that poor repairs are corrected before the vehicle is returned to the customer, or before the vehicle is moved to the next phase of the repair process.
spect each and every repair on each and every vehicle. However, it’s important to monitor technician performance on a regular basis. This can be done by recording data from inspection checklists for periodic review. One way to monitor technician performance is to review inspection checklists on a weekly basis and record any occurrences, which are repairs where corrective action is necessary. Patterns in performance will help identify strengths in technician performance and may help determine where training may be helpful.
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Inspection Checklists Inspection checklists can be used by both the technicians and man-
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agers to monitor and document the quality of the repairs on each vehicle. A checklist will provide the technician some guidance, or structure, to ensure each step necessary for a quality repair is completed. The manager, or designated quality control technician, can verify the tasks on the checklist were completed and mark the checklist accordingly. It’s a good idea to use a checklist www.autobodynews.com that’s designed to be IT signed off by a CHECK OUT! manager or quality control technician before the vehicle is moved to the next department. This type of checklist may have an area to describe any quality issues identified during an inspection and an area to verify the issues were advertise corrected (seeTo Figure 1). This will help Advertising Sales reducecall compounding rework. Forat: example, coatings may require removal 800-699-8251 and reapplication if quality issues are e-mail: not advertising@autobodynews.com identified before the coatings are applied in the first place.
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Monitoring Technician Performance Most managers don’t have time to in-
Documentation Taking photos of the repair areas may be another option to monitor and document technician performance. Some repairs may only be monitored by reviewing specification sheets, such as for measuring, wheel alignment, and welding equipment. However, this may also require some in-process monitoring to ensure the technician is using the equipment properly.
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Conclusion Monitoring technician performance is essential for ensuring quality repairs are being made on all vehicles. Toolspublisher@auto that can be used to assist with this task may include checklists and spreadsheet formulas designed to record inspection data and display the information on an easy-to-read chart. I-CAR’s Inspecting Repairs for Quality Control (QUA01) course will explain how to identify quality The source forissues timely throughout the repair process and after information that every the vehicle is delivered to the customer. shopin needs! This course willbody be available a classroom setting. Visit www.i-car.com to 800-699-8251 learn moreCALL about classes in your area. For comments or suggestions on Start Your FREE the Advantage Online, please contact Mail Subscription. I-CAR at advantage@i-car.com.
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with Janet Chaney
www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 35
ALL OEM Information
with Dan Espersen and Jeffrey Webster
Who needs OE repair information?
Based on this definition, I would have Shops, insurers and consumers all to ask myself: How should things be? benefit when vehicles are repaired to with Dan Espersen What are the rules, principles and manufacturers’ standards! Every day, collision shops are faced measures? And, perhaps most imporwith a multitude of challenges and tantly, Who is the Authority? decisions about repairing vehicles and satisfying the expectations of Answer: The Manufacturer (OE) valued customers. One of a repair They design it, develop it, test it and professional’s most important queswith Mike Causey deliver it. Vehicle manufacturers set tions should be, “How do I ensure the standard for correct repair inforproper repairs based on the quality mation, procedures and practices. Traand quantity of repair information ditional information gathering available.” With today’s fast-moving techniques are chaotic, time consumtechnology, procedures that were up- ing, costly and confusing. Ask yourwith Mike Causey self, when faced with a technical to-date yesterday can be out-of-date tomorrow. problem, “What would the manufacThe complexity of today’s vehicles, turer say about this?” Ready access to with sophisticated electronics and OE information could positively imsafety systems, new high-strength ma- pact your entire operation. terials, and alternative power Janet systems, makes with easy access to Chaney correct information an absolute must. In the absence of a single source for accurate, current and detailed repair procedures, how can anyone repair a damwith Tom McGee aged vehicle to a high, exacting and consistent standard?
ALL OEM Information
The Right Cause The Right Cause
Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 17 years of experience in the collision industry and 17 years of experience in the automotive industry.
and repair processes, Who benefits? Everyone, the repair facility, the insurer and, ultimately, the vehicle owner. Let’s break it down:
The benefits of OE Information to estimating 1. With OE information at hand, proper repair methodology will be reflected on the estimate. 2. Correct OE recommended parts will be ordered. 3. Correct replacement procedures will be followed, including, among others: full or partial outer/inner panel replacements, full or partial frame components, recommended adhesives, sealants and coatings, to name a few. 4. Unnecessary, time-wasting questions and discussions may be reduced or eliminated due to the availability of OE repair procedures. 5. Correct documentation will now
Automaker Actions and Announcements
ALL OEM Information
Question: Who sets the standard? Webster’s Dictionary with defines Tom McGee “standard” as: “A means of determining what a thing should be. Standard applies to any definite rule, principle, or measure established by authority.”
ALL OEM Information
Shop Showcase with Ed Attanasio
OE information and the insurer The dilemma of proper repairs reaches beyond the staff of a collision repair facility. With the potential to grow the collision repair business, many shops have turned to insurance direct repair programs (DRPs), to enhance or drive revenue to their doors. As more people – and more opinions – directly impact repair decisions, the issue of accurate repair information becomes even more critical. OE repair information helps remove the guesswork and the opinions from the estimating
Shop Showcase with Ed Attanasio
Say What?! Say What?!
36 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
be recorded and made available to the insurer to substantiate repair decisions and the thought behind them. 6. Supplements may decrease, as correct repair procedures can be determined upfront at the time of the estimate rather than during repairs. 7. Unrelated existing conditions may be discovered in OE technical service bulletins (TSBs) or recall notices prior to repairs and estimates 8. Correct mechanical operations and labor times will be reflected on the estimate. (Current information may not be available in the shop’s/insurer’s estimating systems.) The benefits of OE Information to production 1. Correct OEM repair documentation will be available to the technician prior to beginning the repair. 2. OEM repair data will be accessible at the time of teardown, allowing
correct procedures to be estimated, documented and filed. 3. Technicians can access correct, up-to-date OE procedures, helping them to make repairs to current standards with fewer mistakes. 4. Fewer damaged or broken parts will result from the technician having OE disassembly and assembly procedures for components that they have never worked on before. 5. OE information can help facilitate constructive negotiations and discussions between the insurer and the technician/production manager. 6. Proper repair practices on the estimate can now be verified by the production team.
Cycle time 1. By having OE repair information available, correct parts are ordered upfront, resulting in fewer parts returns, more efficient sourcing and less down time. 2. Vehicles will not stop in production due to broken parts, subletting, authorizations, additional/ unnecessary supplements or improper repairs. 3. Questions affecting production can now be answered: • Does this vehicle need frame replacement or sectioning? Is the damaged area within the OE tolerance/dimension and can it be straightened? • Do I have to sublet this repair, or can I save time by repairing it in the shop with detailed OE instructions? • Do I have the correct tools and equipment to repair the vehicle properly?
Efficiencies / Productivity 1. Having OE repair procedures prior to production can streamline a technician’s repair practices and help prevent mistakes. 2. With accurate procedures and diagrams, the technician can spend more time working on the vehicle instead wasting time gathering repair information. 3. OE information opens the Give us your opinion on matters affecting the doorindustry. to performing repairs in the shop instead of continuing to outsource work, such as: publisher@autobodynews.com• Suspension and steering op7. Technical service bulletins erations (TSBs) can be accessed for existing • Electrical systems (possibly unrelated) conditions on the • Hybrid technology vehicle. • Air bags 8. Training for certain repair opera• Collision avoidance systems tions on specific vehicles can be reTo advertise The source for timely Overall Average Severity or cost of duced. call Joe Momber at: 9. Correct identification information that everyand repair repair 800-699-8251 methods can beneeds! performed and sub- This category is what I like to call body shop stantiated on various types of steels. the balance scale. On one side is the e-mail: jmomber@autobodynews.com insurer who wants to keep claim CALL 800-699-8251 severity under control, letting them The benefits of OE Information to your www.autobodynews.com Start Your FREE pass on the savings to the conbusiness KPI’s
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sumer. On the other side is the collision repairer, whose main goal is to capitalize on gross margins and profitability by cultivating as many sales as possible. The scale balances when both the insurer and collision facility negotiate an agreeable, cost effective, correct solution that benefits everyone, including the vehicle owner. Here’s how OE repair procedures help balance the scale: 1. OE Information reduces timely and costly sublet operations and keeps the vehicle in the repair facility. (“Now, I have the instructions to repair this system.”) 2. It lowers rental costs by reducing cycle times. (“I don’t have to stop this vehicle in production and extend rental days, because I have a proper repair plan. I can keep the vehicle moving.”) 3. Accurate information ensures correct billable repairs. (“I can produce proper OE repair steps, charges and documentation, which are not available in other systems.”) 4. Proper step-by-step procedures help increase efficiencies and overall productivity. (“I can now keep my hands on the vehicle more, because I have the proper instructions right from the
repair by having OEM repair instructions.”) “I have established or enhanced my professional credibility with an insurer
and my customer by providing OE guidelines and repair procedures.” “We conform to OE repair standards, allowing me to manage liabilities and provide accurate documentation.” The Benefits of referencing OE information first The greatest benefit of OE repair information will be realized when a vehicle first enters the shop. With procedures and diagrams in hand at the start, estimators can build proper repair plans, the correct parts can be ordered, and technicians can repair the vehicle faster and more efficiently. As a result, quality will increase and the overall time that a vehicle is spent in the shop will decrease. Give it a try! For more information on OE repair information, please visit: www.alldata.com/promo/abn6tt/
©2010 ALLDATA LLC. All rights reserved. All technical information, images andEdition? specifications are from Want to Contribute to this Southwest ALLDATA Collision. ALLDATA is a start of the repair.”) registered trademark and ALLDATA Customer satisfaction (CSI) Collision is a mark of ALLDATA publisher@autobodynews.com OE collision repair information enLLC. All other marks are the property hances customer satisfaction: of their respective holders. “I can explain to my valued customer that we are repairing the vehicle to OE Promote your business with Promote your business with standards.” article featuring an exclusive article featuring “Ian canexclusive show my customer OE repair your products or services. your products or services. documentation, technical service bulletins and recall information that may help them with other areas of concern on their vehicles.” “I can deliver the vehicle to my cusCALL:inJoe Momber for promised details! Call for details! tomer a more accurate, time frame because I have reduced the 800-699-8251 800-699-8251 mistakes made during the course of
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San Diego and San Jose are Cities with the Most Drunk Driving Violators Insurance.com ranked the top 20 biggest cities according to drunk driving violators. The large cities with the most drunk driving offenders are, in order: San Diego, CA; San Jose, CA; Charlotte, NC; Phoenix, AZ; Columbus, Ohio; Indianapolis, IN; Los Angeles, CA; San Francisco, CA; Austin, TX; Jacksonville, FL; San Antonio, TX; Dallas, TX; Houston, TX; Fort Worth, TX; Memphis, TN; Philadelphia, PA; New York, NY; Baltimore, MD; Chicago, IL; Detroit, MI. According to Insurance.com data, San Diego has the largest percentage of drivers with alcohol-related driving convictions among the largest cities in the country. San Jose comes in at No. 2, followed by several other California cities in the top ten. What pushes one city to the top over another? A city’s record for drunk driving convictions could have many reasons: more drinkers and partiers in general, less public transportation, so more bar-hoppers are driving home and better enforcement of DUI laws, so more convictions. California has long been the epi-
center for drunk driving, and the movement to stop it: In 1980, a drunk driver hit and killed 13-year-old Cari Lightner as she was walking to a school carnival in suburban Fair Oaks, CA. She landed 125 feet from the scene of the accident. The driver, who already had four drunk-driving convictions, escaped in his car. But his wife later turned him over to the police when she grew suspicious of his efforts to hide their badly damaged vehicle, according to Mothers Against Drunk Driving (MADD). As Cari Lightner’s mother, Candy, worked to get justice for her daughter, she also convinced others around the country to address the problem. San Diego most likely tops the list because its police departments are aggressive in making DUI arrests, says Mark McCullough, a San Diego police department spokesperson specializing in DUI issues. A sergeant and five specialized officers in San Diego spend 40 hours a week just stopping and arresting DUI offenders. In addition, McCollough writes applications for grants to
Federal Agency Sues NV Dealership Over Alleged Racial Slurs
The U.S. Equal Employment Opportunity Commission on September 29 sued a Nevada auto dealership after a black employee claimed he was subjected to racial slurs and was humiliated when his boss told him to get on his knees and beg for his job, according to reports by the Las Vegas Sun. The EEOC lawsuit filed in federal court in Las Vegas names as defendants Shack-Findlay Automotive LLC doing business as Findlay Honda; and Findlay Automotive Group. An attorney for Shack-Findlay denied the EEOC’s allegations and said a company investigation found the racial harassment as alleged never happened. The EEOC said it was suing under the Civil Rights Acts of 1964 and 1991 “to correct unlawful employment practices on the basis of race (black) and retaliation and to provide appropriate relief to Sydney Robinson, Jason Grinstead and similarly-situated employees who were adversely affected by such practices.” Robinson, in a lawsuit filed in Clark County District Court in January, alleged he was discriminated against while working as a driver for ShackFindlay Automotive at its dealership on Auto Show Drive in Henderson. Robinson said in the lawsuit he was a driver for the dealership from
July 2003 through January 2008 and that beginning in June 2007 his supervisor Michael Austin repeatedly addressed him with an “racial slur.” Robinson alleged he and another black driver had been told they would be fired if they received two customer complaints and that this rule didn’t apply to employees of other races. After receiving a customer complaint, Austin told Robinson the complaint would “go away” if Robinson got on his knees and begged for his job in an open area visible to co-workers, the lawsuit alleged. This alleged begging incident is not mentioned in the EEOC lawsuit. Robinson in the January lawsuit said he had a knee condition and it was painful for him to kneel on a hard surface, but Austin said he was not joking so Robinson “relented, kneeled and begged defendant Austin for his job.” In answering the lawsuit, attorneys for Austin and the dealership said “While such a request may be insulting and an indignity, it is not ‘beyond all possible bounds of decency,’ ‘atrocious’ or `utterly intolerable’ and therefore falls short of the extreme and outrageous conduct necessary to establish a claim for intentional infliction of emotional distress.”
38 NOVEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
fund around 20 sobriety checkpoints a year, plus special “saturation patrols”: Trained officers watch traffic for telltale drivers’ errors — not just obvious signs like weaving, but subtler indications like stopping too long at an intersection. “The arrests are directly proportionate to the amount of grant money we get,” he says. “It’s a sad state of affairs but it’s true.” “We do have a high incidence of DUIs,” reports Officer Jose Garcia, San Jose Police Department spokesperson. “That’s not to say that smaller departments don’t have it, but I don’t think they have the resources to detect it.” San Jose’s downtown entertainment district is a magnet for partiers. The clubs, restaurants, theaters and a big sports arena draw from rural communities to the south, surrounding suburbs and San Francisco, 45 miles north. The city’s drunk-driving problem is probably at least partly due to its concentration of schools. Young people are the most likely to drive drunk, according to the Insurance Institute
for Highway Safety. San Jose State University is downtown and Santa Clara University is nearby, as are dozens of other technical schools and colleges. While San Jose’s No. 2 rank reflects problems, it also shows leadership. The city is extremely aggressive in getting state and federal funds to help train police officers to detect drunk drivers, run sobriety checkpoints and deploy a mobile DUI “command center” to catch and process DUI suspects. Santa Clara County Supervisor Liz Kniss. The county, straining from the cost of jailing all the drunk drivers, recently asked San Jose to make sure its police weren’t going overboard. Fourteen states already require “ignition interlocks” (on-board breathalyzers) for anyone convicted of drunk driving. Other states allow convicted drivers to have their licenses reinstated if they install the devices. A driver must blow into the breathalyzer before starting the car, and any sign of alcohol prevents the engine from starting.
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CA AG Sues Car Washes Run by Owners of High-End LA Restaurant Attorney General Edmund G. Brown has filed a $6.6 million lawsuit against eight car washes owned by the Sikder family —proprietors of the Hollywood restaurant named Koi —after an investigation revealed a “widespread pattern of worker exploitation,” unpaid wages and illegal business practices. “While Koi served up yellowtail tartare and Kobe beef carpaccio to Hollywood celebrities, the restaurant’s owners routinely denied wages, breaks and overtime pay to workers at their unlicensed car washes,” Brown said. “Today’s lawsuit seeks to end this widespread pattern of worker exploitation.” Brown’s lawsuit caps a five-month investigation of eight Sikder-owned car washes in Fair Oaks, Folsom, Irvine, Laguna Hills, Laguna Niguel, Santa Monica, San Ramon and Venice. Investigators interviewed more than 80 workers and found the car washes routinely denied workers minimum wage and overtime, failed to pay wages owed to those who quit or
were terminated, denied rest and meal breaks, and created false records of time worked. The car washes required employees to report to work hours early and be available, unpaid, until business picked up. When workers were paid, many received paychecks that could not be cashed because of insufficient company funds. Also, the car washes operated for years without licenses from the Labor Commissioner, which are required under California law. Brown’s lawsuit, which alleges that defendants violated California Business & Professions Code section 17200 and Labor Code sections 203 and 203.1, seeks $6.6 million to pay back lost wages and civil penalties, and an injunction to prevent the defendants from committing similar violations in the future. The car washes also owe more than $1.8 million, according to recorded liens. The lawsuit follows another suit filed late last year by the Attorney General against Auto Spa Express Car Wash.
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Karen Fierst Gives Her Take on the Competition in Aftermarket Parts Karen Fierst, previously associated with the Taiwan Auto Body Parts Association (TABPA), spoke at several aftermarket parts sessions during the NACE 2010 expo. After 11 and a half years Fierst is no longer representing TABPA and is pursuing other opportunities. Her work within the aftermarket parts industry led Autobody News to ask her for a quick overview of the current aftermarket parts industry. Fierst made a distinction about what she works with within the aftermarket parts industry; her background is with external, sometimes called ‘cosmetic,’ aftermarket parts. Although she did acknowledge the current issues going on within the industry concerning structural aftermarKaren Fierst ket parts, she admitted that that arena isn’t really on her radar. Fierst also supports the current CAPA standard, saying it was “strong and viable.” But she did acknowledge that there are prevalent issues within her sector of the aftermarket parts industry, particularly when it comes to their demand in the marketplace. “Aftermarket parts have become a commodity; people don’t realize that there are different levels of quality,” said Fierst. She sees the aftermarket parts market as very dysfunctional, and that to create any sort of change all facts of the industry; manufacturers, insurance companies and body shops all have to be in agreement. “We need quality competition,” said Fierst. She also went on to say that because insurance companies are less
involved with body shops’ usage of aftermarket hard parts (non-crash parts), that the usage of those parts goes through less politics. “Because CAPA has not been widely accepted by repairers, a niche has opened up for competition in the standard arena,” said Fierst. She believes this will be a good thing for the industry because through multiple trials and options at the beginning of a national parts certification standard, the U.S. will be able to come out with a better product. Fierst also mentioned that within the collision industry there is not a normal supply-demand chain from manufacturers to body shops because insurers get involved as a third party. According to Fierst, the quality issue would have been solved long ago through this natural supply-demand process if the insurance companies had not gotten involved in a body shops’ parts choice. When it came to legislation that is supposed to help curb issues within the aftermarket parts industry, Fierst felt that although most of the legislation had good intentions that “often it’s not well thought through and viable.” “It’s unfortunate that we can’t resolve this in-house,” said Fierst. Although she does not agree with the current signed consent to use aftermarket parts notifications for consumers because it singles out aftermarket parts, she does feel that consumers should be informed and have a choice. “Consumers should know what is being put on their cars,” she says with conviction. She is currently exploring other options in the industry. Contact her at kfierst @kerenorconsultans.com, or phone: 301-681-4383
New California Incentives Aim to Retire High Emission Cars
A new California program will provide financial incentives for motorists to repair, retire or replace thousands of highpolluting vehicles, potentially removing more than 500 tons of pollutants from California’s airways by 2013. The program, called Vehicle Repair, Retirement and Replacement for Motorists or “VRRRM,” supplements already-existing vehicle emissions reduction programs in an effort to add momentum to the fight for clean air while increasing the number of California motorists eligible for such benefits. California motorists can visit www.vrrrm.org for eligibil-
ity guidelines and a formal application. Those who qualify can then visit one of more than 200 participating Gold Shield Stations for a certified smog test. Those who fail the emissions portion of their smog inspection, and do not qualify for or have exhausted benefits from other existing vehicle repair or replacement programs, may receive up to $800 for approved emissions-related repairs. Some motorists may be eligible to retire high-polluting vehicles with up to $3,500 toward the purchase of a newer model, more energy-efficient replacement vehicle.
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www.autobodynews.com | NOVEMBER 2010 AUTOBODY NEWS 39